Consumer Behaviour Post Midterm Flashcards
What are the type of research by objectives, define
Descriptive: Size & characteristics of target market
Exploratory: gather insights formulate hypothesis
Causal: test hypothesis, response to marketing mix changes
Types of Market Research bu source & method?
By Source: Primary (new data collection) & Secondary (previous data collection)
By method: Qualitative: Interviews, observations, focus groups etc. & Quantitative: Panel data (secondary) & Surveys (primary)
Correlation
Two variables share some kind of relationship
Causation
One Variable causes something to happen in another variable
How can correlation be explained? Give examples
- One-Way Causality: X is the cause of Y, or reverse causality when Y is the cause of X **EX: Score on test & minutes spent studying
- Two-Way Causality: Both variables may be the cause of each other **EX: Watching too much TV causes back pain
- Confound: A third variable may be the cause of the correlation (Z impacts X & Y separately) ** EX Forest fires & Ice Cream Sales
- Spurious correlation: A mathematical relationship in which two events or variables have no causal connection **EX Nicholas Cage and Drownings
Regression towards the mean
If a sample point of a random variable is extreme (nearly an outlier) a future point will be closer to the mean or average on further measurements
What is a moderator
A second independent variable which changes the effect of your manipulated variable on the dependent variable (IE demographic, or psychographic variable segmentation)
In order to establish causality how do we do it?
Control/manipulate one thing at a time, while holding other x variables constant.
Randomly assign participants to different levels of X.
Balanced placebo design & example
2 variables are manipulated and 4 groups are created
Given placebo Y/N & Given expectations Y/N
Between-subject study design
Different participants test each condition so that each is only exposed to a single condition
Within-subject study design
The same participants tests all the conditions, presented in random order.
What are the pros & cons of within subject design?
Pros: 1 Lower costs. 2) smaller sample size required, 3) “noise” control (individual differences across samples are less likely to influence results)
Cons: 1. Hypothesis guessing, 2.Being exposed to one level of the factor can influence participants perception of the other level (contamination
Pros and cons of between subject designs
Pros: Avoids contamination, minimizes hypothesis guessing
Cons: Larger sample size required, more “noise” if randomization fails to eliminate individual differences across samples.
What is prospect theory and how does it relate to experimental design?
Within-Subject design deflates the effect of prospect theory which suggests that people value their perceived gains more than their perceived losses. Participants are risk adverse for gains and risk seeking for losses.
How does the effect of price on quality perception change depending on the experimental design?
Within subject design will inflate the effect, so the higher the price the higher the quality perception
What are the three types of validity?
Internal: The findings are due to the independent variable
External: The findings can be generalized to another group or context
Ecological: The findings mimic what would happen in real life.
Name 5 testable features and measurable outcomes from experimental ads
X: Animations, Target audience, placement on webpage, tag line
Y: CTR, likes/comments, time on site, sales/subscriptions, white paper downloads
Social Emotional Contagion
People in more positivity-enhanced group posted more positive posts and the same goes the other way
What are ethical considerations for research?
- Obtain informed consent:
- 1.A. Information: Were participants provided sufficient info?
- 1.B. Comprehension: Did the participants fully understand the study & have an opportunity to ask questions?
- 1.C. Voluntariness: Were participants free to decline or withdraw? - Protect vulnerable populations
What kind of validity for each:
- We can randomly assign different marketing messages to online users
- We can have access to very diverse populations (e.g. 2.8 billion active users on Facebook!)
- We can measure «real» clicking or purchase behaviour
internal, external & ecological
What is persuasion?
An active attempt to change/influence attitudes
- Attitudes: Cognition, Affect & Behaviour
How to influence attitudes?
Sales techniques that rely on principles of commitment and consistency (foot in the door, low-ball, door in the face)
Normative Influence
Reciprocity
The Elaboration Likelihood model
Persuasion depends on consumers level of product involvement
Involvement
A person’s perceived relevance of the product based on their inherent needs, values and interest