MKTG 302 Test 2

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Steps in the market research process
Define/Formulate problem Determine research design Determine data collection method Design data collection forms Design sample and collect data Analyze and interpret the data Prepare the research report Make decision
Research Problem
A restatement of the decision problem in research terms, from the researcher’s perspective.
the Research Problem - questions to ask when defining it
What decision do you need to make? What information do you need to know to make that decision? What is the best way to get that information?
Qualitative Research Techniques
These techniques rely on subjective data that reports opinions rather than exact historical data.
Quantitative Research Techniques
This method uses statistical computations such as trend extensions, computer simulations, and economic models.
Individual Interviewing
Pros: Highly flexible method that can gather a great deal of data from a respondent. Good control of sample, speed of data collection, and response rate. Cons: High cost per respondent. Highly subject to interviewer bias and related interviewer effects.
Telephone Surveying
Pros: Gathers information fast Greater flexibility than mail surveys Interviewers can explain or skip questions Better response rates than mail surveys Cons: Higher costs than mail Interviewer may bias results Limited quantity of data can be collected Low response rate and bias
Mail Survey
Pros: Can collect large amounts of information at a relatively low cost per respondent Generates more truthful responses than phone interviews Cons: Not flexible; study takes longer to finish Low response rate Little control over sample
Steps in the information-processing model and when they occur
Exposure: when stimulus come within range of sensory receptor nerves (vision) Attention: when stimulus is “seen” Interpretation: the assignment of meaning to received sensations Memory: short term use of the meaning for immediate decision making or the longer term retention of the meaning. Purchase & consumption decisions
Short term memory
portion of the total memory that is currently activated or in use Short lived, limited capacity, elaborative activities (analysis, categorization, interpretation)
Long term memory
portion of total memory devoted to permanent information storage (semantic & episodic)
Semantic memory
The basic knowledge and feelings an individual has about a concept
Episodic memory
the memory of a sequence of events in which a person participated
Organizing individual items into groups of related items that can be processed as a single unit
Maintenance rehearsal
the continual repetition of a piece of information in order to hold it in current memory for use in problem solving or transferal to LTM
Operant conditioning
rewarding desirable behaviors such as brand purchases with a positive outcome that serves to reinforce the behavior
Classical conditioning
using an established relationship between one stimulus (music) and response (pleasant feelings) to bring about the learning of the same response (pleasant feelings) to a different stimulus
Strength of learning is determined by
Importance Message Involvement Mood Reinforcement Repetition Dual Coding
Stimulus factors (physical characteristics of the ad) that influence attention
Size Intensity Attractive visuals Color Movement Format Contrast and expectations Interestingness Information quantity Position Isolation
Brand equity
the ability to benefit form a brand image
Brand image
what people think of and feel when they hear or see a brand name.
Brand personality
a set of human characteristics that become associated with a brand and are a particular type of image that some brands acquire.
Perceptual mapping
consumers’ perceptions of how similar various brands or products are to each other and relates these perceptions to product attributes
Brand Position
how a brand is different from competitors and where/how it sits in the minds of the target market.
the reason for behavior. Consumers do not buy products; instead they buy motive satisfaction or problem solutions
individual’s characteristic response tendencies across similar situations; personality of the consumer guides the behavior chosen to accomplish goals in different situations.
strong, relatively uncontrolled feelings that affect behavior. Strongly linked to needs, motivation, and personality. (Pleasure, arousal, dominance)
an enduring organization of motivational, emotional, perceptual, and cognitive processes with respect to some aspect of our environment.
Manifest motives
motives that are known and freely admitted.
Latent motives
either unknown to the consumer or they are reluctant to admit them.
Components of attitude
Affective: feelings Cognitive: beliefs Behavioral: response tendencies
How to change attitudes, ad strategies (fear, humor, etc)
Change attitudes by changing cognitive component – shift beliefs – or by changing affective component – classical conditioning or by changing behavioral component through operant conditioning
the totality of the individual's thoughts and feelings about themselves
actual self-concept
how I actually see myself, how others actually see me
ideal self-concept
how I would like to see myself & how I would like others to see me
obedient, sociocentric, holistic, connected, and relation oriented
individualistic, egocentric, autonomous, self-reliant & self contained
extended self
self + possessions (ppl define themselves in part w their possessions)
disposition situation
Disposal can create significant social problems as well as opportunities for marketers. Some consumers consider ease of disposition an important product attribute.
expanded usage situation
expanded usage situation strategies can produce major sales gains. (ex: baking soda)
ritual situations
a socially defined occasion that triggers specific behaviors that often have symbolic meaning. Ex: Christmas, Graduation, March Madness, Weddings
physical surroundings
colors, aromas, music, crowding
social surrounding
tend to comply w social expectation, especially when behavior is visible
temporal perspective
effect of time on consumer behavior (ex: pressure for time has made people turn towards online shopping more)
task definition
the reason the consumption activity is occurring. Self vs. gift social expectations ritualized situations to elicit return favors
antecedent states
states are features of the individual person that are not lasting characteristics Moods: feeling states that are generally not tied to a specific event of object. Momentary Conditions: Temporary states of being (tired, ill, having extra money, etc.)
Stages of the consumer decision process, what affects the intensity of the process
Nominal decision making
habitual decision making, involves basically no decision. (bralind loyal purchases & repeat purchases)
limited decision making
internal and limited external search, few alternatives, simple decision rules on a few attributes, and little post-purchase evaluation
Extended decision making
extensive internal and external search followed by a complex evaluation of multiple alternatives.
How Information Search is done by consumers (internal and external searches)
What alternatives exits to evaluate What are the criteria to help evaluate the alternatives How does each alternative perform on each criteria
Awareness set
alternatives the customer is aware of
Evoked set
alternatives given consideration
Inert set
backup alternatives
Inept set
avoided alternatives
Maintenance marketing strategy
If the brand is purchased habitually (nominal) by the target market, the marketer’s strategy is to maintain that behavior. This requires consistent attention to product quality, distribution, and a reinforcement advertising strategy.
Disrupt marketing strategy
If the brand is not part of the evoked set and the target market engages in nominal decision making, the marketer’s first task is to disrupt the existing decision pattern. Tactics: free samples, coupons, striking package designs, comparative advertising.
Capture marketing strategy
Limited decision making generally involves a few brands evaluated on only a few criteria. Brand is in evoked set. Search occurs mainly at the point-of-purchase or in readily available media. Objective is to capture as large a share as practical.
Intercept marketing strategy
If limited decision making and brand is not part of evoked set, objective will be to intercept the consumer during search. Emphasis will be on local media, point-of-purchase displays, shelf space, package design, etc. Coupons can also be effective.
preference marketing strategy
Extended decision making with the brand in the evoked set requires a preference strategy. marketer needs to structure information so brand stays preferred by target market.
acceptance marketing strategy
Similar to preference strategy, but complicated by fact that target market is not seeking information about the brand. Beyond preference strategy, marketer must attract consumer attention or motivate brand learning. Incentives to try product, long-term advertising to enhance low-involvement learning and use of the Internet are useful for gaining acceptance.
Rational choice theory
Rational choice theory assumes the consumer has sufficient skills to calculate which option will maximize his/her value and will choose on this basis. The task is to identify the one optimal choice.
Bounded rationality and Metagoals in Decision Making:
Maximize accuracy of decision by providing all the info available Minimize cognitive effort (don’t think just do it) Minimize experience of negative emotion by eliminating conflict and stress Maximize the ease of justifying the decision by keeping people happy (choose iBM)
Affective Choice
tend to be more holistic. Product is not broken down into distinct components for separate evaluation. Evaluations generally focus on how they will make the user feel as they are used.
Attitude-Based Choice
Involves the use of general attitudes, summary impressions, intuitions, no attribute-by-attribute comparisons are made at the time of choice.
Attribute-Based Choice
Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands.
Perceptual Mapping
researcher uses judgment to determine dimensions underlying consumer evaluations of brand similarity
What is a Surrogate indicator?
Consumers can have difficulty judging competing brands on complex criteria such as quality or durability. So, often a Surrogate indicator is used to indicate another attribute. For example, consumers often use the following factors as surrogate indicators of quality (a.k.a. quality signals): price advertising intensity warranties brand country of origin
Decision Rules for Attribute-Based Choices
Conjunctive decision rules
Establishes minimum required performance for each evaluative criterion.
Disjunctive decision rules
Establishes a minimum required performance for each important attribute (often a high level). All brands that meet or exceed the performance level for any key attribute are acceptable.
Elimination decision rules
First, evaluative criteria ranked in terms of importance. Second, cutoff point for each criterion is established. Finally (in order of attribute importance) brands are eliminated if they fail to meet or exceed the cutoff.
Lexicography decision rule
Consumer ranks the criteria in order of importance. Then selects brand that performs best on the most important attribute. If two or more brands tie, they are evaluated on the second most important attribute.
Compensatory Rules
the brand that rates highest on the sum of the consumer’s judgments of the relevant evaluative criteria will be chosen
What is churn and why do companies what to minimize it?
Churn is a term used to refer to turnover in a firm’s customer base. Companies want to minimize churn because it typically costs more to obtain a new customer than to retain an existing one.
Describe Relationship marketing
An attempt to develop an ongoing, expanding exchange relationship with a firm’s customers.
a special self-regulatory unit created by the Advertising Division of the Better Business Bureau to review advertising aimed at children.
CARU rules
Communicate in truthful manner using understandable language Address advertising to positive social behaviors Present positive role models Contribute positively to the parent-child relationship Avoid marketing inappropriate products directly to children
Two major issues relating to comprehension in reference to marketing:
Research suggests younger children have difficulty understanding the selling intent of commercials Some words and phrases difficult for children to understand
Health and safety advertising rules
Cannot include children participating in dangerous activities Products advertised as “keep out of reach of children” not aired during children's programming Be aware that advertising not directed at children can have potentially harmful consequences
CARU is active against...
Including characters on packaged boxes to promote “fun” Ideal body types portrayed leading to eating disorders More revealing clothing being promoted to children
Online privacy relates to collection and use of information from websites (up to age 13) Prior parental consent Collection of personal info Parents access to info FTC issued Children’s Online Privacy Protection Rule in 1999