Summary
summary Consumer Behaviour
- Course
- Institution
everything you need to know to complete the quizzes
[Show more]
Seller
Followelinelarcier
Reviews received
Content preview
LES 1 CONSUMER BEHAVIOURWHY STUDY CONSUMERS?
What is marketing ?
= Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and
exchanging offerings that have value for customers, clients, partners, and society at large.
“Build a better mousetrap, and the world will beat a path to your door.”
“If a man has good corn or wood, or boards, or pigs, to sell, or can make better chairs or knives,
crucibles or church organs, than anybody else, you will find a broad hard-beaten road to his
house, though it be in the woods.”
4P’s !!
Offerings that have value = f(product & quality)
Question: “Is it true that products with a good value will get to the top?”
Personal story about car seat
Decision 2003: brand name, price, salesperson
Decision now: reviews on amazon (4.5/ 5) one of the most important sources of
product quality information
more people would buy it
BUT why?? -> personal, emotional, concrete text, ostensibly objective, widely available
BUT scientificly there is not enough data be carefull trusting individual opinions
consumer report (testaankoop) said totally other car seat was better
Correlation (rating amazon, performance test consumer report)= 0.15
the average star rating has surprisingly low correspondence to established quality
metrics
enkel in 57% van de gevallen geeft consumer report een hogere score als amazon star
rating hogere score krijgt (flipping a coin)
Correlation (price, qualtity product)= 0.3
Have the one with higher rating also higher quality said by consumer report??
!! not always if people like it, that consumer report likes it.. other things play a role in
consumer reviews: price
Bv. Wine example things extrinsic to the product plays a role
Liking without price (zonder dat ze de prijs weten vinden ze de goedkopere
wijnen beter)
Liking with price (more expensive wines are said to be better)
holding quality constant, more expensive products and brands with
better reputations gets better ratings.
Problems with user ratings:
Statistical: reviews from subset of product users VS all product users
! based on insufficient sample sizes
Sampling issues: only the ones with extreme opinion are posting a review
Evaluation issues: objectively evaluating requires a scientific approach.. ->
heavily biased
, Example about songs
Created 48 new songs (nobody ever heard them) make them available in different
markets
o Independent market A: 1000 consumers who can listen CANNOT INTERACT
o Independent market B: andere 1000 en die kunnen ook luisteren CANNOT
INTERACT
o Social market A: 1000 consumer BUT the can like the songs INTERACTION (I
see that you liked it)
o Social market B: 1000 consumers en also interact with each other
INTERACTION
correlation rank of songs in independent market A and rank of songs in independent
market B
correlation rank of songs in social market A and rank of songs in social market B
In which market will the correlation be higher? (“will demand be more predictable in
independent markets or in social markets?”)
!! independent market: popularity can only be a function of intrinsic aspect of the song
(not influenced by other people)
!! in social markets: intrinsic aspects of the song + influence from other people
popular in social market A can be diff in market B (bv. Different song first? -> path
dependence)
value of a product not only defined by intrinsic things of the product (bv. Also what
other people thing)
DUSSSS uiteindelijk antwoord: correlation higher in independent markets !!! (demand is
less predictable when there is social influence)
waar zal de meest popu song het meest popu zijn? social: creates larger block
buster hits
What is a good customer?
, cheap to acquire, loyal (customer retention), spends money (customer marging)
two sides of customer value
Marketing actions: promotion, price, place, promotion to care for acquisition, retention and
customer margin (!! you need behavioural science for this)
WHAT IS THE SECRET TO SUCCES?
What is the modern marketer’s most important ability?
Intellectual curiosity motivated to challenge and revise your opinions and to learn new
things
BUT barrier: you think you already know (illusion of kwowledge)
Overconfidence effect (we tend to believe that we know more then we do) -> illusion of
knowledge (is a real enemy of knowledge)
I have no clue: trust it
I am sure: don’t trust it
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
“Education is the path from cocky ignorance to miserable uncertainty.”
We love precision
Bv. trumps twitter : he uses precision to persuade
Bv. Round price VS precise price less sells for round price
Bv. seller on ebay : round price -> low offer VS precise price -> more offer
Wrap up
“Value” depends not only on the intrisic ingredients of a product. It is multiply determined, also
by extrinsic marketing actions, such as price, promotion, place, packaging. “Value” is not
objective, but subjective. It depends on how consumers interpretet marketing actions.
, “Value provided to consumers” is only one part of the equation. Firms ultimately care about
“value captured from consumers.” Creating value for customers is a means to creating value for
firms.
Consumers and markets are messy. The world desperately needs people with an ability to
cleverly combine insights and methods from the behavioural sciences to solve business and
societal problems.
The fuel to your success is intellectual curiosity.
LES 2 CONSUMER BEHAVIOUR
HOW MUCH ARE BRAND WORTH?
Value of a brand: how much do they want to pay if they know which brand it is
Bv. Apple, amazon, Microsoft
! als je zoekt vindt je verschillende rankings hangt af naar welke elementen je kijkt
! GREAT EQUATION: different formulas + we don’t can’t really approcimate how big “B” is..
How do you know what the value of a brand is?
WHY DO BRANDS HAVE VALUE?
In stead of putting number on brand value asks ourselfes why they do have value
Positive brand equity= if consumers react more favorably to the product, price, promotion, or
distribution of the brand than they do to the same marketing mix element when it is attributed to a
fictitiously named or unnamed version of the product or service
Bv. sweater and sweater with brand on it how much are consumers prepared to pay more
Bv. coca cola and fake coca cola: same prices more chance to buy the real coca cola
associative memory
Information nodes are stored in memory and connected by links
Activation spreads through the network based on the strength of links
Information nodes with highest activation are most likely to influence behavior
Bv. Colgate brand extension
extend with frozen meals unsuccesfull?
! when you think of thootpaste -> you get taste in your mind -> you don’t want to eat
frozen meals because activation of brain is not with food association
BUT genious: wouldn’t it be great if people got colgate in more rooms of the house
bv. I eat this meal of colgate -> I want to brush my thoot
extend with dental floss better than frozen meals
BUTadditional finger/ fantom hand attention is limited (dental floss you look at the
mouth)
SO difficult for brands to build associations in people that have those limited attention
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller elinelarcier. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.11. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72349 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now