MKTG 367 Week 1 Notes
MKTG 367 Week 1 Notes MKTG 367
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This 7 page Class Notes was uploaded by Savannah Baron on Saturday February 13, 2016. The Class Notes belongs to MKTG 367 at University of Mississippi taught by Lifeng Yang in Spring 2016. Since its upload, it has received 33 views. For similar materials see Consumer Behavior in Marketing at University of Mississippi.
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Date Created: 02/13/16
Week 1.2 Notes Methods to Study Consumer Behavior I. Today’s topic Research your consumers: 1. Why would you conduct research? Know what you can do better in delivering to consumer, knowing your consumers’ needs/wants, knowing your target consumer 2. How would you conduct research? Survey, interviews, focus groups, observe shoppers, gather data through the store, always give consumer opportunity to say something 3. What are the methods you can use to conduct research? II. What is research anyway? Find your answers using multiple methods; research is more than just searching for things: o Every method has drawbacks o Every procedure has loopholes o Every researchers has limitations o Findings need to be tested, retested, in one setting, multiple settings, in order to be reliable You must have diversity in the demographics of consumers you are researching to understand when things are true for each set of consumers III. That means… Examine the proposal of the research critically—falsifiable: capable of being tested by studies o Is the question you’re asking worth the effort of being researched? (Should not be intuitive/obvious unless you have an interesting alternative to the topic you are studying) o Falsifiable = can be proven wrong o Ex) if you can prove that reducing the price of your product can cause consumers to desire it less, this is researchable because it going against intuition (common for luxury products) Examine the method of research critically—reasonable o Ex) must use the language of a foreign land when conducting business there Examine the procedure of the research critically—controlled o You should have something to compare to, separate consumers into 2 groups with a control o Ex) to determine whether a commercial is successful, you need to have a group that has seen a commercial and a group that has not. If the group that has seen the commercial uses the product more than the control group, commercial is successful Examine the interpretation of the research findings critically— reliability + validity o Test research in multiple settings to see if result is valid everywhere or just in one region IV. Conduct Consumer Research a. Form the Clear Objectives To understand consumers o Test whether or not they like products/brand o Test marketing strategies/products To help consumers understand themselves Create consumer welfare o Ex) how people mindlessly eat when bowls are bigger To help the company gain in the marketplace b. What do you need? Data o Primary- collected for original purpose Conducting your own surveys, focus groups, etc. o Secondary- collected for some other purpose that’s subsequently used in a research project Gathering data from a census, or research that was done for a purpose other than your own Research Tools o Observation o Focus groups o Depth interviews o Storytelling You can get a lot more insight from hearing a consumer tell a story o Photos, collages o Diaries Publicized information with online social media o Surveys o Field studies Where natural consumption event happens, ex) grocery store o Lab experiments o Conjoint analysis o Panel data Data that is constantly input to the system to be examined, ex) Kroger card reports what all you buy Can see how the same customer reacts with different sales (i.e., buy one get one free vs. buy one get one ½ off) to make selling strategy more effective Kroger can sell records of how a specific customer shops to other companies o Database marketing Will sometimes use panel data, but can other times use information from a census (or something similar) and using your basic knowledge on these demographics to draw your conclusions about how these people act as consumers V. Steps of thinking 4 steps of thinking: 1. What’s the procedure of the method? 2. What are the advantages of the method? 3. What are the disadvantages of the method? 4. When will this method be the best/worst option to be used? VI. Consumer Research Methods Observation o In-home: examine how and when consumer use or consume products in their households Many researchers believe this is the best way to observe how people use/consume because after some time, people becoming immune to the cameras o Shadowing: following and observing consumers in shopping and consumption processes Researcher may ask about reasons for behavior, but consumer often doesn’t think about why or why not they do something (just acts on impulses) and gives made up answers o Physiological Methods: techniques borrowed from medicine, psychology, and other sciences including using camera to measure eye movement, skin response, etc. Often used when researching more sensitive topics because people may lie about something they know they should/shouldn’t like regardless of their actual opinion Interviews and Surveys o Surveys: efficient method to gather information from a large sample of consumers by asking questions and recording responses (phone & internet surveys, mall intercepts, and mail questionnaires) o Focus group: group discussion led by a moderator skilled in persuading consumers to thoroughly discuss a topic of interest People may be more inclined to impress someone in the group, or want to be a part of the group opinion (peer pressure) instead of expressing their own opinion o Longitudinal Studies: repeated measure of activities over time to determine changes in opinions, buying, and consumption behaviors Ex) Studying children over years to see how something will affect their development or health Experimentation o Attempts to understand cause-and-effect relationships by carefully manipulating independent variables to determine how these changes affect dependent variables Independent: the cause variable you want to test Dependent: the effect variable you want to measure o Experiments are conducted in a lab to ensure that nothing is interfering with the consumer’s focus on the subject Ex) in a market, a consumer may get distracted by the smell of a bakery, etc. VII. To Collect Primary Data a. Methods/Tools i. Qualitative Pros: Captures detailed information beyond numbers Flexible in terms of questions being used Cons: Effortful Findings are not for generalization purposes Observation Focus Groups In-Depth Interviews Storytelling Diaries Open-ended surveys ii. Quantitative Pros: Numerical data, good for statistical calculation and generalization More objective Cons: Numerical data, could be interpreted in a biased way Numerical data, lacking non-numerical details Experiments Conjoint Analysis o A research technique to determine the relative importance and appeal of different levels of an offering’s attributes Purchase Panels Database Marketing b. Overview How do you set up the study? Method: qualitative v. quantitative Individuals: research assistants; subjects Setting: in a lab? In the field? Materials: product samples? Measures/sets of questions to be used, etc. Incentives: coupon, reward, promise to make the product/service better? What research method(s) should we use then? 3 Principles: o Early-and-Often Principle o Multi-Method Principle o Always-Research Principle Week 1.1 I. What is consumer behavior? How do consumers react to different things? Walmart- some people like low prices, others thing you “live better” by owning things that cost more Tiger Woods as spokesperson for Nike- some people are more confident wearing a brand represented by Tiger Woods, others don’t want to support something based on Woods’ morals Why would a person believe something strongly but not live that way? (ie, exercise) Consumer behavior is the totality of consumers’ decisions with respect to the acquisition, consumption, and dispositions of goods, services, ideas by human decision making units Studying consumer behavior includes the study of activities people undertake when acquiring, using, and disposing products and services II. Why study consumer behavior? Educate people about a crisis o Plastic bags at the market, human behavior can be changed when we educate the consumer on how wasteful throwing the plastic bags away are Learn what we need to do to control ourselves o Calories in the food we eat; restaurants post the calories of the food they sell Help administrators form policies o China’s plastic bag ban saves 37 million barrels of oil every year Predicting social changes that follow the economic plans o How IRS gives refunds (lump sum vs. monthly payments); monthly payments can prevent luxury spending III. Studying Consumer Behavior can Help the Company Achieve Product Differention Product Innovation Market Segmentation Increase Consumer Satisfaction IV. Consumer Behavior Dynamic Process o Consumers think about what they want, how they’ll fit in, etc. Can involve many people/decisions Involves many copings, feelings, etc. DUE NEXT CLASS: register for SONA, complete bio sheet, send in a self portrait (most updated) to firstname.lastname@example.org with First and Last name
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