Ethics Rules of conduct that guide actions in the marketplace
Consumer A person who identies a need or desire, makes a purchase, and/or disposes of the product
Segmentation Identifying similarities and dierences in potential consumers
rimary !ata !ata collected specically for current purpose, could "e internal or e#ternal
Secondary !ata Collected for some other purpose, E#ternal $census, %allop poll, etc&', Internal $company records, data'
(ypes (ypes of rimary rimary !ata !ata E#periments, (est )arkets, *ocus %roups, +"seration Studies, Interiews
-iterature Reiew A comprehensie e#amination of any aaila"le information that is related to your research topic
Independent .aria"le A characteristic that inuences or e#plains the dependent aria"le either in a positie or negatie way, e#& demographics often e#plain attitudes, opinions, "ehaiors
!ependent .aria"le (he aria"le aria"le that you you are trying trying to understand understand or predict, predict, e#& satisfaction, loyalty, sales, shopping fre0uency
Random Assignment Assigning su"1ects to dierent treatments
E#perimental Controls A population or set of o"1ects that is statistically similar to the set "eing tested, on which no changes are implemented
Control %roup
2o treatment is gien to this group, doesn3t receie the factor under study
(reatment %roup Receies the factor under study
Confounds Can adersely aect the relationship "etween independent aria"le and dependent aria"le& )ay cause the researcher to analy4e the results incorrectly&
*ocus %roup A form of in5depth interiew inoling 6 to 78 consumers led "y moderator who asks participants to discuss a product, concept, or other marketing stimulus
Interiew a formal interiew process in which a well5trained interiewer asks su"1ect set of semi5structured 0uestions in face5to5face setting
+"seration Research A techni0ue in which researchers o"sere how consumers "ehae in real world surroundings
Ethnography researcher o"seres society from the point of iew of the su"1ect
(est )arkets Studies the eectieness of one or more elements of the marketing mi# ealuating sales of the product $e#& a specic city'
9ypothesis an empirically testa"le statement of a relationship deeloped to e#plain phenomena, often "ased on theory&
2on5directional hypothesis Signicant dierences e#ist "etween aria"les
2egatie !irectional hypothesis E#& Students with high %As consume less alcohol than students with lower %As, Indiiduals with higher
technology discomfort are less likely to adopt new technological innoations 5 high to low
ositie !irectional hypothesis e#& )ore eectie study ha"its are related to a higher %A& As amount of alcohol consumed during %asparilla increases, so does the likelihood of "eing arrested 5 goes up together
9ow do companies ac0uire data: %ol"eck 5 personal information we put on social networking sites, users are the product& redictie Analysis "ased on products we "uy in store&
Conditions for proing causality regnant teenage girl5 watch product purchases closely, do not oend customers "y sending coupons for only "a"y products
E#posure (he process "y which the consumer comes in to physical contact with a stimulus 5 we hae the possi"ility of noticing the information
;ays to inuence e#posure ositioning within a medium, roduct distri"ution and shelf placement, selectie e#posure
Attention (he e#tent to which processing actiity is deoted to a particular stimulus
Attention s& E#posure E#posure 5 we hae the possi"ility of noticing the information, Attention 5 the information has "een recorded in some way, you notice the information
9ow to get attention rominence $si4e' Color osition 2oelty $surprising, une#pected' -oud
2atie adertising
form of online adertising that matches the form and function of the platform on which it appears
erception rocess "y which sensations are selected, organi4ed, and interpreted& rocess of deeloping an interpretation of a stimulus
Constructie 2ature people construct interpretations on the y "ased on the actual stimulus or eent and prior e#pectations
;hat kinds of marketing changes can inuence perception: .odka 5 there is no dierence in aor, "ut when it is la"eled
erceptual (hresholds Can we tell the dierence if the product si4e "ecomes smaller or ingredients change:
9ow do "eliefs inuence perception: +rigins matter 5 people are sno"s
dene Recognition the e#tent to which consumers say they are familiar with an ad the researcher shows them
dene Recall the process of retrieing information from memory
Sensory )emory Information that comes in through our senses, Information is stored in it3s sensory form, ery short5lied, 7/=58 seconds& If not processed, we lose it&
Echoic )emory .ery "rief memory for things that we hear
Iconic )emory .ery "rief memory for things that we see
Short5(erm )emory
ortion of memory where incoming information is encoded and interpreted, limited capacity, short5lied duration, info can "e held for 7>5?@ seconds&
;orking )emory Short5term memory
-ong5(erm )emory ermanently stored knowledge, ery large storage capacity, Information is neer lost "ut sometimes can3t "e found& e#& Auto"iographical $episodic' memory, semantic memory
Episodic )emory e#perienced eents
!eclaratie )emory *acts, nowledge
rocedural )emory Skills, )otor/Cognitie
!ispositions Conditioning
9ow "ig is your short5term memory: )iller3s magic num"er B /5 8
2eural 2etworks organi4ed systems of related information in our memory
Retrieal process where"y we recoer information from long5term memory
Implications for )arketers eople may not remem"er their products, "ut sometimes memories decay or get replaced through interference
Simple s& Comple# message eople remem"er simple messages or ery interactie, creatie adertisements
-oftus .ideo
Studied crime scenes 5 ;e remem"er things that didn3t happen& )emory is constructie, reconstructie&
Constructie nature of memory )emory updates, Accentuate/Eliminate things, add things, all done consistent with e#isting ideas
)isinformation false or inaccurate information esp& that which is deli"erately intended to deceie
2odes and -inks Concepts, feeling, and eents are stored in nodes& Associatie links of arying strengths connect nodes&
*orgetting 5 decay the structural changes that learning produces in the "rain simply goes away
*orgetting 5 interference As we learn additional information, it displaces the earlier information
State !ependent Retrieal we are "etter a"le to access information if our internal state is the same at the time of recall as when we learned the information
Recall
Cued Recall <ll in the "lanks< reconstruct from cues, hints
Recognition <)ultiple choice test< Identify stimulus we hae seen "efore, more diDcult
Retrieal ;i4ards can remem"er small details from any point in their life
ahneman .ideo
<ehaior Economics< 5 what people should do s& what they do, remem"ering selfF long term, recall 5 marketers care what decisions people make, E#periencing self 5 sensory, short term memory
9a"ituation if too familiar, lose attention getting a"ility
Recirculation remem"er it "ecause you encounter it a lot& 6G 5 rule of thum" for remem"ering& *amiliarity H -ikea"ility&
Ela"oration information can "e transferred into long5term memory if it is processed at deeper leels
9ow can marketers improe memory: Simple )essage Repetition Rehearsal Ela"oration se imagery
Sleeper Eect Source decays faster than message, forget source, message remains& consumer person who identies a need or desire, makes a purchase, then disposes of the product
consumer "ehaior study of processes inoled with indiiduals or groups who select, purchase, or use products, serices and ideas to satisfy needs and desires
primary data specically for a current purpose, internal/e#ternal 5e#F e#periments, test markets, focus groups
secondary data collected for some other purpose& 5e#ternal $census, %allup' 5internal $company records, data' JJtakes less time and in cheaperK
types of primary date $?'
5e#periments $la" studies' 50uasi5e#periments $test markets' 5non5e#perimental $focus groups, o"serations'
e#periments 5control s& treatment group $eay study' 5eect of independent on dependent aria"les
confound aria"le something else dierent "etween situation "esides independent aria"le, a ?rd factor
0uasi5e#periments 5test markets 5studies eectieness of one or more elements of the marketing mi# ealuation sales of the product in the market 5crystal epsi 5most accurate method for future sales 5tends to "e e#pensie
non5e#perimental data 5focus groups 5in depth interiewing inoling 6 to 78 consumers led "y a moderator who asks participants to discuss a product, concepts, or other stimuli
o"serational research where researches o"sere how consumers "ehae in real5 world surroundings 5e#F fe"ree4e 5reduced a"ility to draw generali4ed conclusions
correlation relationship "etween two aria"les
causation one aria"le producing an eect in another aria"le
factors necessary for causation $?' 5correlation $storks L "a"ies in same house' 5temporal antecedence $storks 55M "a"ies' 5no third factor driing "oth
= 3s of consumer "ehaior research
how does a company design&&& 5products 5promotions 5prices 5place $distri"ution' to satisfy the customers wants and needs
Sensory stimuli $N' 5sights $eyes' 5sounds $ears' 5smells $nose' 5taste $mouth' 5te#tures $skin'
e#posure process where consumers come into contact with a stimulus 5the possi"ility of noticing the information JJwhen a stimulus comes in range of someoneOs sensory receptors $we can choose not to "e e#posed to some marketing messages'
inuence e#posure positioning within a medium 5"ack coer of a maga4ine 5"eginning/end of commercial "reak 5location within a store
selectie e#posure marketers control when consumers encounter the "rand 5e#F %ucci only sell/adertise in certain places
attention e#tent to which processing actiity is deoted to a particular stimulus 5the information is recorded in some way, you notice 5competition for our attention 5"reaking through the clutter 5e#F "asket"all, white shirts, gorilla L SimonOs door ideo
stimulus selection factors $N' 5prominence $si4e' 5color 5position
5noelty $surprising, une#pected' 5loud
marketing implications $=' 5make stimuli personally releant 5make stimuli pleasant $music, humor' 5make stimuli surprising/noel 5make stimuli easy to process
ha"ituation if too familiar, you loose attention5getting a"ility& 5e#F oer5played commercials, am"ulances passing "y
natie adertising online adertising method where true adertiser tried to gain attention "y proiding content familiar to the user 5match the form and function of the user e#perience
perception multi5sensory perception 5process "y which sensations are selected, organi4ed and interpreted 5deciding what a stimulus means
9appy )oney "uy e#periences 5material things proide less happiness than e#perimental purchases $trips, concerts' make it a treat 5limiting access to the things we like "est& when we look forward to it we tend to appreciate it more "uy time 5how will your purchase change the way you use your time pay now, consume later 5"y paying up front and delaying consumption $usually in cash' you can "uy more happiness& $s& using a credit card' inest in others 5spending money on others proides a "igger happiness than spending money on yourself $warren "uet, Clinton'
a"solute threshold
stimuli must "e at a leel that we can detect them 5e#F "ill"oard te#t
testing our thresholds downsi4ing 5raft macaroni ingredient changes 5)c-ean $)c!onaldOs "urger'
types of memory $?' 5sensory memory 5short term memory 5long term memory
sensory memory infer that comes in through our senses 5echoic memory $things we hear' 5iconic memory $things we see' 5ery short lied, @&8N58 sec& 5if not processed, we lose it
short5term memory $S()' portion of memory where incoming info is encoded and interpreted 5working memory 5limited capacity 5short liedF 7>5?@ seconds 5miller3s magic num"erF B /5 8 piece of information
primacy eect in short term memory 5a"le to remem"er the "eginning or rst piece of a se0uence
recency eect in short term memory 5a"le to remem"er the last piece or end of a se0uence
how to improe S() 5rehearsal 5chunking 5dual encoding 5reducing interference 5state dependent learning
patient 9)
could hae successful motor memory, "ut could not deelop meaningful long term memories
hippocampus conerts short term memories to long term memories
long term memory $-()' permanently stored knowledge 5auto"iographical $episodic' memory 5semantic memory 5large storage capacity 5info isn3t lost, "ut sometimes cannot "e found
types of -() e#plicit 5episodic $e#perienced eents' 5declaratie/semantic $facts, knowledge' implicit 5procedural $skills, motor/cognitie' 5dispositions $conditioningF classical L operant'
ways to improe -() recirculation 5remem"ering things from encountering them a lot $around 6 times' ela"oration 5info can "e transferred into -() if it is processed at deeper leels $Ikea, %eico'
neural $associatie/semantic' network model 5large spider we" 5concepts, feelings and eents are stored in nodes 5associatie links connect nodes 5stronger links are easier to retriee JJcreated through e#perience and knowledge
memory is like a forest the more you follow the same path, the easier it is to get there& JJsame goes with nodes and memory
2udge *allacies anchoring 5relying too heaily on one trait or piece of information
aaila"ility heuristic 5when people predict the fre0uency of an eent "ased on how easy an e#ample can come to mind representatie heuristic 5when people 1udge something "ased on resem"lance of data status 0uo "ias 5doing something "ecause it is the norm herd mentality 5inuenced "y actions of others
li"ertarian paternalism people should "e free to do what they want/like, and to opt out of undesira"le arrangements 5it is legitimate for choice architects to try and inuence peoples "ehaior in order to inuence their life in a positie way
choice architects way in which decisions may "e inuenced "y how choices are presented 5e#F dr& prescri"ing alternate treatments
homo economicus iew of humans such as, each of us think and choose unfailingly well 55 way normal economists think
homo sapiens make predica"le mistakes "ecause of the way humans are inuenced "y their social interactions 55 way nudge thinks
sleeper eect source for message decays much faster than message itself
how is the memory constructie: 5accentuate some things $after persons death' 5eliminate some things $after a "reakup' 5addition of some things $court testimony3s' JJall done with consistent e#isting ideas and schemas
retrieing infoF recall
retrieing infoF cued recall <ll in the "lanks< 5reconstruct from cues
retrieing infoF recognition
retrieal failures forgetting 5decayF the weakening of nodes or links oer time 5interferenceF causes us not to remem"er which features goes with which "rand or concept due to semantic networks "eing too closely aligned
how in retrieal enhanced: redundant cues 5memory in enhanced when the info items go together naturally retrieal cues 5stimulus that facilitates a nodes actiation of memory $"rand name, or sym"ol' ? types of primary data E#periment, 0uasi e#periment, non e#perimental
E#periment -a" studies& control s treatment group&
Puasi e#periments (est markets& most accurate, e#pensie and e#poses to competition& $crystal epsi'
2on e#perimental *ocus group& In depth group interiew with 6578 people&
Confound aria"le ?rd aria"le, something wasn3t set up correctly& $lue "ackground on target ad& Randomi4ation reduces this'
Correlation relationship "etween two aria"les
Causation one aria"le producing an eect in another aria"le
? factors necessary for causation correlation 5 storks and "a"ies in same house temporal antecedence 5 storks 5M "a"ies no third factor driing "oth 5 houses with pregnant women, warmer and cause storks to come to house
Spurious correlation articial/fake, not really related
E#posure consumers come in physical contact with a stimulus& +SSII-I(Q of noticing the information
Attention 5 ? types selectie 5 hearing your name across the room at a party diided 5 talk on phone and doing dishes limited 5 turn down radio when looking for address
)ulti sensory perception ru""er hand illusion
A"solute threshold stimuli must "e at such a leel that we can detect them
!ierential threshold noticing dierence or change in stimuli
rocess of memory Sensory, short term, long term
Sensory memory information that comes in through our senses, ery short lied 758 seconds
Short term memory encoded and interpreted, limited capacity, short lied 7>5 ?@ seconds
-ong term memory ermanently stored, ery large capacity
rimacy Remem"ering the "eginning
Recency remem"ering the end
)illers )agic 2um"er Short term memory we can remem"er B items, gie or take 8
atient 9) Remem"ered eerything "efore surgery& 2o long term after surgery& 9ippocampus remoed, connecting long and short term memory&
2odes and links 2odes are pieces of information links connect them together& Spreading actiation are links and nodes spreading and connecting&
Recall Essay test, reconstruct memory with no cues
Cued recall *ill in the "lanks, reconstruct from some cues
Recognition )ultiple choice, identify stimulus we hae seen "efore
9appy money N principles "uy e#periences, make it a treat, "uy time, pay now consume later, inest in others
2!%ES Incenties, understand mapping, defaults, gie feed"ack, e#pect error, structure comple# errors
