Mcb-30306
Lecture 1:
Market strategies:
- Market segmentation
- Product differentiation
- Product development/ innovation
- Competitive strategy
With 4 marketing mix elements (4 p’s )
- Product
- Place
- Price
- Promotion
Intrinsic cues: product characteristics that are intrinsic to the product and cannot be changed
without altering the product. (flavour and aroma cues) (organic production) (examples, colour, size,
smell, taste, texture)
Extrinsic cues: other marketing efforts (price and brand cues) attached to the product (e.g. Fairtrade)
can be changed/removed without changing the product (examples logo, brand, label)
Consumer behaviour, understanding and predicting interlinkages between consumers, products,
services and behaviours
- Theories
- Research methods
Consumer decision making:
1. Need recognition (attention, interest, desire)
a. Utilitarian and hedonic motivations
2. Information search (internal search, external search)
a. Leads to perception about marketing stimuli/ information
b. Includes cognitive (knowledge) and affective factors (feelings/emotions)
c. Interpretation ≠ intention
3. Alternative evaluation (cognitive, emotional)
a. Alternatives are evaluated on a limited number of choice criteria (taste, health price)
b. Each of the criteria has a weight attached to it reflecting its relative importance in the
overall evaluative judgements.
4. Choice (product, brand)
a. Purchase intention and unanticipated circumstances (out-of-stock)
b. Satisfaction = reinforcement of choice
c. Dissatisfaction leads to changes in the decision process
5. Evaluation (satisfaction, post-purchase dissonance)
1-3, prepurchase stage
4, consumption stage
5, post purchase evaluation stage
,Consumers do not always go through an extensive and elaborative process of DM
ELM, for persuasive communication by Petty and Cacioppo
- High involvement situation, info is processed through central route
o Content of message is evaluated extensively
- Low involvement situation, info is processed through peripheral route
o Attitudes are formed on basis of simple cues in message/ context
Determinants of consumer behaviour
- Consumer characteristics
- Product characteristics
- Situation characteristics
All techniques are product driven
Products are cues to start off
elicitation of consumer needs
- Technique provides a restricted
view on consumer needs
o Insights limited by the particular product included in the study
+ reactions to existing products are relatively predictable
o Results can easily be translated into product requirements
All techniques use multiple products (vs. single product)
Category appraisal (i.e. Compositional Perceptual Mapping)
- Obtaining a visual representation of positions that products hold in the consumers’ mind
- Results show structure of markets as perceived/preferred by consumers
- Involve a consumer evaluation of a set of competitive products
Conjoint analysis
- Explicitly looks at the trade-offs consumers make in their choices between products
- Goal is to find out which attribute and attribute levels consumers prefer and how much they
value the attributes
- Ranking or choosing product profiles
Kelly’s repertory grid
- Interview technique focusing on identifying key constructs underlying product perception
- Kelly’s triadic sorting technique: triads of products drawn from a large set and asking which
two products are alike and different from a third
- Aim is to generate aspects on which people differentiate between products
- Give respondent three stimuli at a time, drawn from total pool of stimuli
- Ask which two products are alike and different from a third
- Repeat until the attributes of the respondent are exhausted
Classic rep-test
S: emergent pole
C: implicit pole
Elements: products
,Laddering
- Interviewing technique to understand consumers’ knowledge structure regarding a particular
product (category)
- Applied after Kelly’s triadic sorting technique
- Results give information about the specific linkages between product characteristics and
consumers’ value orientations
Lecture 3:
Reality:
- Scientific objectivity
- Product characteristics
- Based on facts
Perception:
- Human subjectivity
- Consumer perception preference choice behavior
- Consumer perception of cues in the environment
Marketing, the art of ‘making consumers perceive value’
- Consumers act on what they perceive, not on what is
Perception, the process by which stimuli from the environment are selected, organized and
interpreted
- Receive external stimuli through 5 senses
Valid perception requires observational reliability
- Inter-observer reliability (between people)
- Intra-observer reliability (over time)
Over time perceived similar probably the same thing
Observational reliability is no guarantee for valid perception
- Even physical objects can be happily misperceived
Perception (involves)
- External stimuli
- Sensory receptors
- Mental processes
- Reactions to stimuli
, Brunswik’s lens model of probabilistic functional perception
Ecological validity
- Some proximal cues are “better” indicators than others (higher validity)
- Cue ambiguity reduces ecological validity
o Intrinsic cues are loosely related to the attribute
- Credence attributes are extremely ambiguous
o Extrinsic cues are needed
Cue utilisation
Pragmatic perception follows a probabilistic strategy
- Making the most likely inference about the object
- Using some weighting according to assumed cue validity
- Being flexible to update the inference to changes in cues
- Mostly ‘recognition-based’ selection of cue
Perception is a process of ‘inferential DM’
- True state, is inferred from selected sensory cues (thus not observed)
- Hypothesised reality, is tested against further cues
Functional validity
- To what degree does the perceptual response match the distal variable? (what is the match
between what really is and what is observed)
Lecture 1:
Market strategies:
- Market segmentation
- Product differentiation
- Product development/ innovation
- Competitive strategy
With 4 marketing mix elements (4 p’s )
- Product
- Place
- Price
- Promotion
Intrinsic cues: product characteristics that are intrinsic to the product and cannot be changed
without altering the product. (flavour and aroma cues) (organic production) (examples, colour, size,
smell, taste, texture)
Extrinsic cues: other marketing efforts (price and brand cues) attached to the product (e.g. Fairtrade)
can be changed/removed without changing the product (examples logo, brand, label)
Consumer behaviour, understanding and predicting interlinkages between consumers, products,
services and behaviours
- Theories
- Research methods
Consumer decision making:
1. Need recognition (attention, interest, desire)
a. Utilitarian and hedonic motivations
2. Information search (internal search, external search)
a. Leads to perception about marketing stimuli/ information
b. Includes cognitive (knowledge) and affective factors (feelings/emotions)
c. Interpretation ≠ intention
3. Alternative evaluation (cognitive, emotional)
a. Alternatives are evaluated on a limited number of choice criteria (taste, health price)
b. Each of the criteria has a weight attached to it reflecting its relative importance in the
overall evaluative judgements.
4. Choice (product, brand)
a. Purchase intention and unanticipated circumstances (out-of-stock)
b. Satisfaction = reinforcement of choice
c. Dissatisfaction leads to changes in the decision process
5. Evaluation (satisfaction, post-purchase dissonance)
1-3, prepurchase stage
4, consumption stage
5, post purchase evaluation stage
,Consumers do not always go through an extensive and elaborative process of DM
ELM, for persuasive communication by Petty and Cacioppo
- High involvement situation, info is processed through central route
o Content of message is evaluated extensively
- Low involvement situation, info is processed through peripheral route
o Attitudes are formed on basis of simple cues in message/ context
Determinants of consumer behaviour
- Consumer characteristics
- Product characteristics
- Situation characteristics
All techniques are product driven
Products are cues to start off
elicitation of consumer needs
- Technique provides a restricted
view on consumer needs
o Insights limited by the particular product included in the study
+ reactions to existing products are relatively predictable
o Results can easily be translated into product requirements
All techniques use multiple products (vs. single product)
Category appraisal (i.e. Compositional Perceptual Mapping)
- Obtaining a visual representation of positions that products hold in the consumers’ mind
- Results show structure of markets as perceived/preferred by consumers
- Involve a consumer evaluation of a set of competitive products
Conjoint analysis
- Explicitly looks at the trade-offs consumers make in their choices between products
- Goal is to find out which attribute and attribute levels consumers prefer and how much they
value the attributes
- Ranking or choosing product profiles
Kelly’s repertory grid
- Interview technique focusing on identifying key constructs underlying product perception
- Kelly’s triadic sorting technique: triads of products drawn from a large set and asking which
two products are alike and different from a third
- Aim is to generate aspects on which people differentiate between products
- Give respondent three stimuli at a time, drawn from total pool of stimuli
- Ask which two products are alike and different from a third
- Repeat until the attributes of the respondent are exhausted
Classic rep-test
S: emergent pole
C: implicit pole
Elements: products
,Laddering
- Interviewing technique to understand consumers’ knowledge structure regarding a particular
product (category)
- Applied after Kelly’s triadic sorting technique
- Results give information about the specific linkages between product characteristics and
consumers’ value orientations
Lecture 3:
Reality:
- Scientific objectivity
- Product characteristics
- Based on facts
Perception:
- Human subjectivity
- Consumer perception preference choice behavior
- Consumer perception of cues in the environment
Marketing, the art of ‘making consumers perceive value’
- Consumers act on what they perceive, not on what is
Perception, the process by which stimuli from the environment are selected, organized and
interpreted
- Receive external stimuli through 5 senses
Valid perception requires observational reliability
- Inter-observer reliability (between people)
- Intra-observer reliability (over time)
Over time perceived similar probably the same thing
Observational reliability is no guarantee for valid perception
- Even physical objects can be happily misperceived
Perception (involves)
- External stimuli
- Sensory receptors
- Mental processes
- Reactions to stimuli
, Brunswik’s lens model of probabilistic functional perception
Ecological validity
- Some proximal cues are “better” indicators than others (higher validity)
- Cue ambiguity reduces ecological validity
o Intrinsic cues are loosely related to the attribute
- Credence attributes are extremely ambiguous
o Extrinsic cues are needed
Cue utilisation
Pragmatic perception follows a probabilistic strategy
- Making the most likely inference about the object
- Using some weighting according to assumed cue validity
- Being flexible to update the inference to changes in cues
- Mostly ‘recognition-based’ selection of cue
Perception is a process of ‘inferential DM’
- True state, is inferred from selected sensory cues (thus not observed)
- Hypothesised reality, is tested against further cues
Functional validity
- To what degree does the perceptual response match the distal variable? (what is the match
between what really is and what is observed)
