MKT 310 Topic 2 Exam (Ch 8, 9 and Research)
MKT 310 Topic 2 Exam (Ch 8, 9 and Research) MKT 310
Popular in Consumer Behavior
Popular in Marketing
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
This 8 page Study Guide was uploaded by Andrea Lopez on Tuesday October 27, 2015. The Study Guide belongs to MKT 310 at University of Miami taught by Juliano Laran in Fall 2015. Since its upload, it has received 30 views. For similar materials see Consumer Behavior in Marketing at University of Miami.
Reviews for MKT 310 Topic 2 Exam (Ch 8, 9 and Research)
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/27/15
CONSUMER BEHAVIOR AND MARKETING STRATEGY These are just some of the suggested study questions for Exam 2 This covers the majority of what we discussed in class over the past few weeks Keep in mind that this does not cover absolutely every detail of every class that is what your slides are for You are responsible for any material related to topic 2 including slides and the material in the assigned readings in the textbook You should also know some of the key studies we discussed in these topic areas Lastly you should be able to relate these topics to marketing issues we discussed in class In summary m Textbook Chapter 1 120 2934 HI Textbook Chapter 8 294327 HI Textbook Chapter 9 354360 Notes Good luck studying MARKETING RESEARCH 1 2 What are the steps of the marketing research process 0 Identi cation of research problem 0 Choice of research method 0 Sample 0 Data collection 0 Data analysis 0 Report the research results and provide managerial recommendations Followup What are some advantages and disadvantages of primarysecondary data 0 Primary Data 0 Advantages Target issues are addressed Data interpretation is better Recency of Data Proprietary Issues 0 Disadvantages High Cost Time Consuming Inaccurate FeedBacks More Number of Resources Are Required 0 Secondary Data 0 Advantages Cheaper Already available quicker Extensiveness of Data Basis Of Primary Research 0 Disadvantages Data De nitions Inaccuracy of Data Time Lag Issues May Not Be Speci c Proprietary Issues Research methods observation focus groups surveys indepth interviews correlational research and experiments When would you use each 0 Observation observe people in their quotnatural habitatsquot home work shopping 0 Focus Groups a group gathers led by a trained moderator to discuss your product or your ad etc 0 Can be done over the phone or online Frees you from location constraints and gives people more freedom to disagree with the group But may lose some data eg body language nonverbal reactions Surveys InDepth Interviews oneonone by mail by phone by computer 0 0 Might ask Quantitative questions like quotHave you tried my product How often How long ago Qualitative questions like What do you think of my product my ad my company Danger of Interviews surveys and focus groups Introspective cannot always tell us quotWhyquot An example Nisbett amp Wilson 1977 a Four identical pairs of stockings displayed left or right b Stocking on the right was preferred 4x as often as stocking on left c NO ONE mentioned position as having an effect d People weren t able to explain their choices Memory is errorprone Subtle changes in question wording can in uence reporting of behaviors Loftus 1975 e How many other products have you tied 1 510 1 2 3 0 Correlation and Experiments see how changes along a selected dimension independent variable are associated with changes in behavior dependent variable 0 0 In correlational studies you measure the independent variable eg ad dollars over time and look for a relationship with the dependent variable eg sales or behavior Correlation research useful but correlation is not causation Ex TV violence and aggression You would use each 0 0 What are consumers needs and desires Survey interview focus group What are the market segments Wanna know what the differences are Survey interview How should I position my new product Focus groups experiment What features should my new product have Focus group Did my advertising campaign have an affect Panel data field experiment What are TV habits of my consumers Panel data How should I price my product Database marketing experiment observation 4 What is an independent variable A dependent variable 0 Independent Variable a variable whose variation doesn t depend on that of another Dependent Variable a variable whose value depends on that of another 5 What are some important marketing questions and which methods can we use to study each 0 What are consumer s needs and desires What are the market segments 0 How should I position my new product 0 What features should my new product have 0 Did my advertising campaign have an effect c What are the TV habits of my consumers How should I price my product 0 Methods we can use 0 Observation focus groups surveys and interviews correlations and experiments DECISION MAKING STAGES 1 What are the stages that a person might go through when making a decision How do certain factors in uence whether we go through all of those stages Stages 0 Problem Recognition 0 Information Search 0 Evaluation of Alternatives 0 Product Choice Outcomes More than one alternative product in the market Consumers need to make choices among alternatives Factors Multiple variables may in uence their choices eg time constraint information availability motivationneeds affective states environmental cues etc 0 2 What happens in the problem recognitionquot stage How might marketers encourage people to recognize that they have a problem that needs to be solved What is the difference between stimulating primary and secondary demand Occurs when consumer recognizes gap between current state and some desired or ideal state A problem arises in one of two ways The person who runs out of gas experiences a decline in the quality of his actual state need recognition The person who craves a newer ashier car moves his ideal state upward opportunity recognition Difference between stimulation primary and secondary demand is Secondary focuses on selective problem recognition eg I want Publix Organic Milk Primary focuses on generic problem recognition 3 What factors impact whether your product will be retrieved in internal search What factors increase external search Describe the quotsetsquot that emerge after a search When a purchase decision confronts us we may engage in internal search as we scan our own memory banks to assemble information about different product alternatives High involvement means you will search more so external search Results of Searching 0 Evoked consideration set actively considered during the choice process 0 lnept Set aware of but considered unacceptable gt eliminate these options 0 Inert Set Indifferent towards no advantage may not be aware of EVALUATION AND CHOICE 1 What is the normative theory of choice Is the normative theory an accurate description of decisionmaking Why or why not Normative theory focus on nding rules that lead to the best decision in a given situation How should consumers choose Primarily used by economists Not an accurate description because it talks about what people should do but that s not how they behave in real life what they really do 2 What is a heuristic Explain and give examples of the representativeness heuristic the availability heuristic and the anchoring and adjustment heuristic Heuristic are sued to simplifyjudgments and decisions Usually helpful but can be overapplied and mislead us 0 Representative Heuristic judge the probability that an item is a member of a class by the degree to which the item is representative of resembles the class Ex things that are expensive are better quality 0 Anchoring and Adjustment start with initial evaluation anchor and adjust with additional information Adjustment is usually insuf cient ie too close to the anchor Ex car salesman shows the most expensive car rst 0 Availability focus on the ease with which instances can be brought to mind More types of events are more available because of press coverage or vividness Ex 911 3 What is the asymmetric dominance effect Why are reference points important Asymmetric Dominance Effect in uences people s perceptions Reference points can be strategically determined and displayed to in uence the consumer behavior 4 According to prospect theory how do we perceive gains and losses How do our attitudes toward risk change as choices shift from gains to losses LOSSES LOOM LARGER THAN GAINS We are risk averse when choosing among two gains that have equal expected value c We are riskseeking when choosing among two losses that have equal expected value 5 Be able to explain and give examples of framing effects mental accounting effects and the effects of sunk costs Why are these effects in general not consistent with the normative theory of choice 0 Framing Effects the way a problem is posed to consumers especially in terms of gains or losses in uences the decision they make FRAMING EFFECTS AND RISKY39 CHOICE We are riskseeking when Itthng amnng two losses that have equal expected value vi Lose 5M for sure 0 Get v 5El in 53 chance at Ileang BELIZE 53 chance at losing 0 0 Have a 50 chance Inf getting VIEnlD 5D of getting WEE F 531211 Value I I EffSSH f1 quotvimum Mental Accounting Effects Cognitive processes through which consumers organize evaluate and keep track of nancial activities 0 Ex Mr A decided to see a play The admission was 50 a ticket He hadn t bought the ticket yet As he entered the theater he discovered that he had lost a 50 bill However she still had money on hisher wallet Mr B decided to see a play and bought the admission price of 50 a ticket As he entered the theater he discovered that he had lost the ticket However she still had money on hisher wallet Mr A is more likely to pay the 50 because it comes from the same mental account I m paying 100 for this play Sunk Cost Fallacy if we ve paid for something we re more reluctant to waste it 0 Ex The more you invest the more likely you are to stick with it 6 Do people prefer to segregate or integrate losses How about gains How can marketers use these preferences 0 People prefer both Segregate Gains separate the positive attributes associated with product purchase andor consumption 0 Ex Mr A was given tickets to lotteries involving the World Series He won 50 in one lottery and 25 in the other Mr B was given a ticket to a single larger World Series lottery He won 75 Who was happier Mr A Integrate Losses integrate the negative attributes associated with the product purchase consumption andor disposal 0 Ex Mr A received a letter from the IRS saying that he made a minor arithmetical mistake on his tax return and owed 100 He received a similar letter the same day from his state income tax authority saying he owed 50 Mr B received a letter from the IRS saying that he made a minor arithmetical mistake on his tax return and owed 150 Who was more upset Mr A Marketers can use this by separating the positive attributes associated with product purchase and integrate the negative attributes 7 How do considerations of fairness affect people in ways not predicted by standard economic theories 0 The example of the apartment in Charleston 0 If my bene t is the same as someone else s my cost should be the same 0 If my costs are equal to someone else s our bene ts should also be the same 0 Punish people rms that don t act fairly 8 What are various decision rules that a person could use Give examples of each Compensatory combine across attributes because quotI want the best option overallquot o All salient attributes are compared and an overall evaluation is used to make a choice 0 High level of cognitive effort and search is needed 0 Tends to be used for high importance products 0 Types Simple additive choose the one with the largest number of positive attributes Weighted additive assign weights to the attributes and sum across attributes to choose the overall best option Noncompensatory are rules in which having a bad value on a particular attribute will eliminate the brand from consideration regardless of the brand s positive qualities 0 Lexicographic rule select brand with best value for most important attribute If a tie occurs go to the next most important attribute Continue until one brand is left 0 Elimination by Aspects EBA rule apply a cutoff on the most important attribute reject all brands worse than the cutoff For those brands passing apply a cutoff on the second most important attribute Continue until one brand is left 0 Conjunctive rule set cutoffs on each attribute If a brand meets all cutoffs buy If no brad meets all cutoffs relax cutoffs or delay purchase 9 What are the advantages and disadvantages of a verbal protocols b information display boards and Mouse lab and c eyetracking Verbal Protocols 0 Advantage ask people to verbalize their thoughts about the decision either as it unfolds or after the task 0 Disadvantage assumes people have insight into their decisions 0 Information Display and Mouse Lab 0 Advantage measures transitions and timing delay thought to indicate processing 0 Disadvantage may create an unnatural task in which people use a different strategy Eyetracking o Advantage attempts to measure unobtrusively by tracking the path of the participant s eyes 0 Disadvantage observation still may interfere with the process POSTDECISION PROCESSES 1 Know the de nition of wordofmouth cognitive dissonance and regret WordOf Mouth information that travels through the opinions and stories of others experiences ls easy to spread especially online In uences twothirds of all sales of goods WOM is particularity powerful when we are unfamiliar with product category 0 Cognitive Dissonance the state of having inconsistent thoughts beliefs or attitudes especially as relating to behavioral decisions and attitude change Regret when consumers perceive an unfavorable comparison between chosen alternative and unchosen alternatives 2 What are the three factors in uencing the attributions consumers make about productservice failures 0 Stability o Locus Controllability 3 How do people respond when they re dissatis ed What factors increase the likelihood of a voiced response 0 Voice Response you can appeal directly to the retailer for redress eg a refund 0 Private Response you can express your dissatisfaction to friends and boycott the product or the store where you bought it ThirdParty Response like the pantless judge you can take legal action against the merchant register a complaint with the Better Business Bureau or write a letter to the newspaper 0 People want to know who to blame 4 What are the basic premises of Equity Theory 0 We want fair exchanges Inputs should equal outputs Costs should equal bene ts 5 How are perceptions of quality related to expectancies From what factors do consumers form expectations about a given product According to the Expectancy Discon rmation Model what happens when expectancies are con rmed when they are discon rmed Depends on your expectations the higher expectations of product performance 6 What are someone s options when they want to dispose of your product Why might you care about disposal Recycle second hand markets Ebay ea markets student markets donate to charities selfstorage They care because they need to understand reasons for product replacement and marketers may want to shape product lifespan Sample Questions You already know the style of my questions thus I will not post an extensive list of examples this time Questions will follow the same format as that of the rst exam is the process by which the consumer surveys his or her environment for appropriate data to make a reasonable decision Problem recognition Evaluation of alternatives Product choice This time however in addition to the shortanswer and the multiplechoice questions we will have truefalse questions Cedric runs out of gas He thinks to himself Howstupdam Cedric has just experienced a form of problem recognition that is being dominated by a downward movement in his actual state False Hirosi ordered the expensive quotheart attack specialquot at his local pub It came with a full pound of hamburger and a full bucket of fries Halfway through the meal Hirosi was not feeling well Yet according to the sunkcost fallacy Hirosi will continue until he has nished the quotspecialquot False
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'