Lecture 1: Consumer behavior and making choices
● Consumer behavior: the process of selecting, buying, using or disposing of
products/services/ideas/experiences to satisfy needs and wants.
- We study consumer behavior to understand and predict consumers
● False consensus effect: Not everybody is like you, overestimate that your beliefs are also
the beliefs of others → Projection bias: The idea that people project their own attitudes and
beliefs onto others.
● Intuition trap (overconfidence): When people trust their intuition over logical reasoning or
evidence → We focus on conforming instances (=confirmation bias)
● Selective thinking/one-sided thinking: when people only focus on information that supports
their existing opinions and ignore contrasting information
3 factors that are affecting consumer behavior:
- Affect: How do we feel about it? like/dislike?
- Cognition: How do we think about it?
- Behavior: How do we act?
Obtaining Consuming Disposing
Decision to Purchase How to use How you get rid of Remaining
Decide where to buy How the Product Compares to product
Decide between.. Expectations Recycle/Resell/Throw away
Why we study consumer behavior:
- Market Organizations: To understand consumer needs and tailor offerings.
- Marketing Strategy: To deliver what consumers want.
- Public Policy: To regulate behavior and create rules (e.g., how can we make people stop
smoking?).
- Governments: To shape consumer behavior through regulations.
→ Making choices:
- Consumers not always know what they want, they don't know what is possible and
consumers preferences are flexible
● Malleability of preferences: Idea that people’s choice and preferences are not fixed or
pre-existing but are often constructed on the spot, based on context, comparisons, and how it
is presented. (=kneedbaarheid van voorkeur)
- Consumers make trade-offs between quality and price. Willingness to pay is the result of
evaluating the object. And the value depends on the set of alternatives:
● Compromise effect: cognitive bias effect in decision making where people tend to choose
the middle option in a set of options. This happens because the middle option feels like a
“safe” or balanced option. → Avoiding the extreme option.
● Reference dependence: People evaluate options relative to a reference point rather than in
absolute terms (e.g., $100 discount on a $500 phone is big, but not on a $50.000 car.
1
, ● Choice overload: Happens when people have too many options making it harder to decide
and sometimes leading to no decision at all → Freedom of choice becomes tyranny of choice
→ Hyperchoice: when people face to many decisions in daily life
● Endowment effect: Principles:
1. Owners assign a greater value to a product than non-owners
2. People overvalue what they own
3. People will pay more to keep something they own than buy new
4. Even when there is no emotional attachment
E.g., free trial: once consumers start using the service, they feel like it's theirs. Don't want to
lose it,
Lecture 2: Research strategies and validity
● Research strategies: Refer to the general approach and goals of a research study
1. Descriptive: describes characteristics, without relationships
2. Correlational: describes relationship between variables
3. Experimental: tests cause and effects; independent/dependent variables
- Elements: Manipulation, measurement, comparison, control
4. Quasi-experimental: study looks at cause-and-effect relationships but lacks full
control over variables. Unlike true experiments, participants aren't randomly assigned,
making it harder to establish clear causality.
5. Non-experimental: Observe and compare, but it doesn’t manipulate variables. It
focus on the differences between groups
● Causation means one variable directly causes the change in another. (e.g., Smoking causes
lung cancer. Smoking directly leads to the development of lung cancer)
● Correlation means two variables are related, but it doesn't imply one causes the other. (e.g.,
Ice cream sales and drowning incidents increase in summer. They are related, but one
doesn't cause the other) Just because two things happens together doesn't mean one causes
the other → third-variable problem/confounding variable
● Spurious correlations: happens when two variables seem te be related to each other but in
reality they aren't directly connected. Instead their relationship is caused by the third factor →
creating a false impression or link.
● Regression: statical process for using one variable to predict the other variable
● Multiple regression: provide opportunity to examine relationship between two variables,
controlling for a third (potentially confounding variable)
→ The goal of a researcher is to maximize internal and external validity.
● External validity: the extent to which the results of a study can be generalized to
● Internal validity: How well an experiment can show an effect between two variables. It's
about whether the results of the study are caused by the factors you’re testing, or if something
else might be influencing the outcome = Interpretation of the research
→ The purpose of the study helps you to decide which type of validity is most important. Being aware
of threats to validity can help you critically evaluate a research study.
Lectures 3: Scientific research
● The scientific method: is a way to gain knowledge by asking specific questions and finding
answers through a systematic process. Uses various methods to investigate and test ideas →
1. Observe: what do we notice
2. Question: develop a research question
3. Hypotheses: an educated guess, a state that explains or describes a relationship. (had to be
testable, justifiable, predict a relationship)
2
, 4. Method: How did you test your hypothesis
5. Results/conclusion: was your hypothesis right or wrong?
● Variables: are characteristics or factors that can vary among individuals or groups. They can
take on different values, such as age, income, or preferences, and may change over time or
under different conditions.
● Independent variable (IV): variable that is manipulated
● Levels: different values (options) of the IV (=variations)
● Dependent variable (DV): variable that is observed for changes
● Extraneous variables: all other variables in the study other dan the IV’s and DV’s.
● Confounding variable: is an outside factor that affects both the independent and dependent
variables, potentially distorting the true relationship between them.
→ An extraneous variable becomes a confounding variable only if it influences the DV.
Something totally unrelated to DV is not a thread.
- Techniques for controlling extraneous variables:
1. Holding variables constant
2. Matching variables across treatment condition
3. Control randomization
● Condition: a situation or environment (=set-up)
● Conceptual framework: structured way for organizing ideas, theories and concepts that
guide a study or project.
● Theory: viewpoint or ways of perceiving. To explain or predict a phoneme.
● Null hypothesis (H0): No effect, can be rejected or not = except alternative hypoth.
● Empirical: knowledge that is gained through direct observation or experimentation, rather
than speculations or personal opinion.
- It must be structured or systematic.
- It provides clear support for or against hypothesis.
→ Scientific findings should be public so others can evaluate and verify them; replication is key
because it ensure that findings ar en ot just due to chance or errors.
● Significant: the difference in a hypothesis test is large and consistent enough to rule out
chance as a plausible explanation (=theory based on available evidence, even if it’s not
proven).
Survey answers may not be accurate because of:
- People don't know what the cause of their behavior is
- Memories are inaccurate
- People are not good in predicting behavior
- People don't always tell you everything
→ That's why experiments are an excellent way to study actual behavior
3
● Consumer behavior: the process of selecting, buying, using or disposing of
products/services/ideas/experiences to satisfy needs and wants.
- We study consumer behavior to understand and predict consumers
● False consensus effect: Not everybody is like you, overestimate that your beliefs are also
the beliefs of others → Projection bias: The idea that people project their own attitudes and
beliefs onto others.
● Intuition trap (overconfidence): When people trust their intuition over logical reasoning or
evidence → We focus on conforming instances (=confirmation bias)
● Selective thinking/one-sided thinking: when people only focus on information that supports
their existing opinions and ignore contrasting information
3 factors that are affecting consumer behavior:
- Affect: How do we feel about it? like/dislike?
- Cognition: How do we think about it?
- Behavior: How do we act?
Obtaining Consuming Disposing
Decision to Purchase How to use How you get rid of Remaining
Decide where to buy How the Product Compares to product
Decide between.. Expectations Recycle/Resell/Throw away
Why we study consumer behavior:
- Market Organizations: To understand consumer needs and tailor offerings.
- Marketing Strategy: To deliver what consumers want.
- Public Policy: To regulate behavior and create rules (e.g., how can we make people stop
smoking?).
- Governments: To shape consumer behavior through regulations.
→ Making choices:
- Consumers not always know what they want, they don't know what is possible and
consumers preferences are flexible
● Malleability of preferences: Idea that people’s choice and preferences are not fixed or
pre-existing but are often constructed on the spot, based on context, comparisons, and how it
is presented. (=kneedbaarheid van voorkeur)
- Consumers make trade-offs between quality and price. Willingness to pay is the result of
evaluating the object. And the value depends on the set of alternatives:
● Compromise effect: cognitive bias effect in decision making where people tend to choose
the middle option in a set of options. This happens because the middle option feels like a
“safe” or balanced option. → Avoiding the extreme option.
● Reference dependence: People evaluate options relative to a reference point rather than in
absolute terms (e.g., $100 discount on a $500 phone is big, but not on a $50.000 car.
1
, ● Choice overload: Happens when people have too many options making it harder to decide
and sometimes leading to no decision at all → Freedom of choice becomes tyranny of choice
→ Hyperchoice: when people face to many decisions in daily life
● Endowment effect: Principles:
1. Owners assign a greater value to a product than non-owners
2. People overvalue what they own
3. People will pay more to keep something they own than buy new
4. Even when there is no emotional attachment
E.g., free trial: once consumers start using the service, they feel like it's theirs. Don't want to
lose it,
Lecture 2: Research strategies and validity
● Research strategies: Refer to the general approach and goals of a research study
1. Descriptive: describes characteristics, without relationships
2. Correlational: describes relationship between variables
3. Experimental: tests cause and effects; independent/dependent variables
- Elements: Manipulation, measurement, comparison, control
4. Quasi-experimental: study looks at cause-and-effect relationships but lacks full
control over variables. Unlike true experiments, participants aren't randomly assigned,
making it harder to establish clear causality.
5. Non-experimental: Observe and compare, but it doesn’t manipulate variables. It
focus on the differences between groups
● Causation means one variable directly causes the change in another. (e.g., Smoking causes
lung cancer. Smoking directly leads to the development of lung cancer)
● Correlation means two variables are related, but it doesn't imply one causes the other. (e.g.,
Ice cream sales and drowning incidents increase in summer. They are related, but one
doesn't cause the other) Just because two things happens together doesn't mean one causes
the other → third-variable problem/confounding variable
● Spurious correlations: happens when two variables seem te be related to each other but in
reality they aren't directly connected. Instead their relationship is caused by the third factor →
creating a false impression or link.
● Regression: statical process for using one variable to predict the other variable
● Multiple regression: provide opportunity to examine relationship between two variables,
controlling for a third (potentially confounding variable)
→ The goal of a researcher is to maximize internal and external validity.
● External validity: the extent to which the results of a study can be generalized to
● Internal validity: How well an experiment can show an effect between two variables. It's
about whether the results of the study are caused by the factors you’re testing, or if something
else might be influencing the outcome = Interpretation of the research
→ The purpose of the study helps you to decide which type of validity is most important. Being aware
of threats to validity can help you critically evaluate a research study.
Lectures 3: Scientific research
● The scientific method: is a way to gain knowledge by asking specific questions and finding
answers through a systematic process. Uses various methods to investigate and test ideas →
1. Observe: what do we notice
2. Question: develop a research question
3. Hypotheses: an educated guess, a state that explains or describes a relationship. (had to be
testable, justifiable, predict a relationship)
2
, 4. Method: How did you test your hypothesis
5. Results/conclusion: was your hypothesis right or wrong?
● Variables: are characteristics or factors that can vary among individuals or groups. They can
take on different values, such as age, income, or preferences, and may change over time or
under different conditions.
● Independent variable (IV): variable that is manipulated
● Levels: different values (options) of the IV (=variations)
● Dependent variable (DV): variable that is observed for changes
● Extraneous variables: all other variables in the study other dan the IV’s and DV’s.
● Confounding variable: is an outside factor that affects both the independent and dependent
variables, potentially distorting the true relationship between them.
→ An extraneous variable becomes a confounding variable only if it influences the DV.
Something totally unrelated to DV is not a thread.
- Techniques for controlling extraneous variables:
1. Holding variables constant
2. Matching variables across treatment condition
3. Control randomization
● Condition: a situation or environment (=set-up)
● Conceptual framework: structured way for organizing ideas, theories and concepts that
guide a study or project.
● Theory: viewpoint or ways of perceiving. To explain or predict a phoneme.
● Null hypothesis (H0): No effect, can be rejected or not = except alternative hypoth.
● Empirical: knowledge that is gained through direct observation or experimentation, rather
than speculations or personal opinion.
- It must be structured or systematic.
- It provides clear support for or against hypothesis.
→ Scientific findings should be public so others can evaluate and verify them; replication is key
because it ensure that findings ar en ot just due to chance or errors.
● Significant: the difference in a hypothesis test is large and consistent enough to rule out
chance as a plausible explanation (=theory based on available evidence, even if it’s not
proven).
Survey answers may not be accurate because of:
- People don't know what the cause of their behavior is
- Memories are inaccurate
- People are not good in predicting behavior
- People don't always tell you everything
→ That's why experiments are an excellent way to study actual behavior
3
