Consumer Marketing
Summary
Table of Contents
Session 1 – Introduction ........................................................................................... 3
Jobs to be done ..............................................................................................................3
Duhigg (2012): „How companies learn your secrets “ .........................................................4
Session 2 – Understanding Consumers ..................................................................... 5
Decision making process (DMP).......................................................................................6
Cross Model ..................................................................................................................6
Segmentation ................................................................................................................7
Bitterly et al. (2014): „Want Should Conflict” .....................................................................8
Tutorial 1: Identifying and understanding consumers .................................................. 9
Types of Interview-Questions...........................................................................................9
Laddering Technique .................................................................................................... 10
Session 3 – Consumer Attention, Perception and Memory ........................................ 11
Elsen, Pieters and Wedel (2016): Thin slices Impressions: How Advertising Evaluation
Depends on Exposure Duration ...................................................................................... 11
Session 4 - Consumer Behavior .............................................................................. 17
Verhellen et al. (2016): The short and long-term impact of brand placement in an advertiser-
funded TV-Program on the viewers attitudes .................................................................... 17
Anik, Hauser, and Gibson (2020): “To Understand Consumer Behavior, Think Like a
Marketplace Scientist”.................................................................................................. 20
Tutorial 2: Consumer Persona ................................................................................ 22
Session 5 – The Art of Choosing .............................................................................. 22
Choice mindset............................................................................................................ 23
Inducing a choice mindset ............................................................................................ 23
Effects of the Choice Mindset ........................................................................................ 23
Assortments ................................................................................................................ 24
Construal Level Theory (CLT) ......................................................................................... 27
Madan et al. (2015): The Paradoxical Consequences of Choice ......................................... 28
Chernev et al. (2015): Choice overload ........................................................................... 28
Session 6 – Guest Lecture Albert Heijn .................................................................... 30
Session 7 – Price Promotions ................................................................................. 31
1
,Consumer Marketing
Pricing methods and strategies ...................................................................................... 31
The psycology of pricing ................................................................................................ 33
Zero as a special price .................................................................................................. 34
Shampanier et al. (2007): Zero as a special price ............................................................. 34
Price Anchors .............................................................................................................. 37
Palmeira & Srivastava (2013): Free Offer ≠ Cheap Product ................................................ 38
Session 8 – Influence and Persuasion...................................................................... 39
Two routes to Persuation ............................................................................................... 39
Elaboration Likelyhood ................................................................................................. 40
The 6 Principles of persuasion ....................................................................................... 41
Influence is your Superpower ........................................................................................ 42
Levav and Argo (2010): Physical Contact and Financial Risk Taking .................................... 43
McFerran et al. (2010): Effects of Social Influence and Body Type on Food Choices of Others
................................................................................................................................... 45
Session 9 – Marketing Ethics................................................................................... 47
Price Gauging vs. Price Discrimination............................................................................ 47
Algorithmic bias ........................................................................................................... 49
Session 10 – Customer Loyalty and Sustainability .................................................... 50
Definition of loyalty ....................................................................................................... 50
Stages and Dimensions of customer loyalty .................................................................... 50
Eelen et al. (2017): The differential impact of brand loyalty on traditional and online word of
mouth ......................................................................................................................... 52
Watson et al. (2015): Building, measuring, and profiting from customer loyalty ................... 56
Lecture 11: Consumer Happiness........................................................................... 59
What is Happiness? ...................................................................................................... 59
Measuring Happiness ................................................................................................... 59
6 Principles on how to (happily) spend money ............................................................ 61
Barasch et al. (2018): How the intention to share can undermine enjoyment ...................... 62
Baumeister et al. (2013): Key Differences Between a Happy Life and a Meaningful Life ........ 64
Practice Exam Questions ....................................................................................... 66
2
,Consumer Marketing
Session 1 – Introduction
Monday, 02.09.2024
Mini Case: What do we have to think about when it comes to lowered demand in a Milkshake seller?
- Competitors – alternatives - Product variability
- Customer satisfied - Product quality
- Seasonality - Trends (e.g. health)
- Previous communication and ads - Branding
- Product availability
→ Important: the consumers perspective
Tools: Interviews, open ended Interview, observations, break it down with a focus group (without
assumptions), SWOT Analysis
“Somewhere between 75 and 85 percent of all new products launched into the market don't succeed
financially.” “The reason is they don't target a job that people are trying to get done.” – Clay
Christensen
Aim: Understanding the Customer’s needs, wants and desires
Jobs to be done
A product needs a “JOB TO BE DONE” (JTBD) to be successful
- what an individual really seeks to accomplish in a given circumstance
- Progress that a person is trying to make in a particular circumstance
- People hire a product for help or a solution until this job is done
- Product or product category does not play a role in completing the customer job. Customers
judge solutions by how well they get the job done and switch products over time
- Circumstances are more important than customer characteristics or product attributes
- Jobs have powerful social and emotional dimensions and are not only about the product
features
E.g. Milkshake - Consumer observation:
- Milkshakes sold before 8 am
- By car, alone
- Milkshake is the only product bought
- Asking customers about why they buy a milkshake while driving:
deciding between less good alternatives (banana, bagel, snicker bar,
…) and the milkshake
- Results: Sticky hands want to be avoided, people seek occupation,
taste plays a role
What to do as seller:
3
, Consumer Marketing
- Promotions around the time they buy
- Increase the size
- Decrease the size of the straw
→ keeps the customer occupied longer and provides solution for boredom in the car in the morning
Purchase decisions are driven by desires, fears, dreams, etc. that customers are mostly not even aware
of. Therefor it is crucial to get in the mind of the customers.
E.g. Axe Bodywash:
- Functional needs: Clean
- Emotional Need: feeling good about yourself
- Social Needs: being popular and being viewed as amazing
→ Combination of needs is being covered
Advantages of the JTBD Logic for customer needs
- It shifts the perspective to the customer
- It frees the view on the other competitors
- Is has a predictive power since it is solution free
Questions to ask:
1. What progress / need is the person trying to achieve? What are the functional, social and
emotional dimensions of this progress?
2. What are the circumstances and the struggle? Who when where and while doing what?
3. What obstacles are getting in the way of the person?
4. Are consumers compensating their unfulfilled
needs with imperfect solutions? Why would they
change to your product?
5. How would they define what quality means for a
better solution and what trade-offs are they
willing to make?
6. What role does the product play in their lives?
Takeaways:
- Jobs-to-be-Done is a simple framework that puts
emphasis on the “why” behind what a customer is doing. It focuses on identifying enduring
consumer needs to develop products that have a lasting impact.
- It gives a unit of focus — the job the customer is looking to do — to build measurable ways of
looking at success that do not change over time. The products need to meet the metrics
important to the customers.
- You are not trying to just solve a consumer problem. You are first trying to figure out what the
right problem is.
- Good products do not sell themselves.
Duhigg (2012): „How companies learn your secrets “
Research Question: How can companies use consumer data and habit analysis to predict and influence
purchasing behavior without causing ethical concerns or consumer discomfort?
Pregnancy Prediction at Target:
4
Summary
Table of Contents
Session 1 – Introduction ........................................................................................... 3
Jobs to be done ..............................................................................................................3
Duhigg (2012): „How companies learn your secrets “ .........................................................4
Session 2 – Understanding Consumers ..................................................................... 5
Decision making process (DMP).......................................................................................6
Cross Model ..................................................................................................................6
Segmentation ................................................................................................................7
Bitterly et al. (2014): „Want Should Conflict” .....................................................................8
Tutorial 1: Identifying and understanding consumers .................................................. 9
Types of Interview-Questions...........................................................................................9
Laddering Technique .................................................................................................... 10
Session 3 – Consumer Attention, Perception and Memory ........................................ 11
Elsen, Pieters and Wedel (2016): Thin slices Impressions: How Advertising Evaluation
Depends on Exposure Duration ...................................................................................... 11
Session 4 - Consumer Behavior .............................................................................. 17
Verhellen et al. (2016): The short and long-term impact of brand placement in an advertiser-
funded TV-Program on the viewers attitudes .................................................................... 17
Anik, Hauser, and Gibson (2020): “To Understand Consumer Behavior, Think Like a
Marketplace Scientist”.................................................................................................. 20
Tutorial 2: Consumer Persona ................................................................................ 22
Session 5 – The Art of Choosing .............................................................................. 22
Choice mindset............................................................................................................ 23
Inducing a choice mindset ............................................................................................ 23
Effects of the Choice Mindset ........................................................................................ 23
Assortments ................................................................................................................ 24
Construal Level Theory (CLT) ......................................................................................... 27
Madan et al. (2015): The Paradoxical Consequences of Choice ......................................... 28
Chernev et al. (2015): Choice overload ........................................................................... 28
Session 6 – Guest Lecture Albert Heijn .................................................................... 30
Session 7 – Price Promotions ................................................................................. 31
1
,Consumer Marketing
Pricing methods and strategies ...................................................................................... 31
The psycology of pricing ................................................................................................ 33
Zero as a special price .................................................................................................. 34
Shampanier et al. (2007): Zero as a special price ............................................................. 34
Price Anchors .............................................................................................................. 37
Palmeira & Srivastava (2013): Free Offer ≠ Cheap Product ................................................ 38
Session 8 – Influence and Persuasion...................................................................... 39
Two routes to Persuation ............................................................................................... 39
Elaboration Likelyhood ................................................................................................. 40
The 6 Principles of persuasion ....................................................................................... 41
Influence is your Superpower ........................................................................................ 42
Levav and Argo (2010): Physical Contact and Financial Risk Taking .................................... 43
McFerran et al. (2010): Effects of Social Influence and Body Type on Food Choices of Others
................................................................................................................................... 45
Session 9 – Marketing Ethics................................................................................... 47
Price Gauging vs. Price Discrimination............................................................................ 47
Algorithmic bias ........................................................................................................... 49
Session 10 – Customer Loyalty and Sustainability .................................................... 50
Definition of loyalty ....................................................................................................... 50
Stages and Dimensions of customer loyalty .................................................................... 50
Eelen et al. (2017): The differential impact of brand loyalty on traditional and online word of
mouth ......................................................................................................................... 52
Watson et al. (2015): Building, measuring, and profiting from customer loyalty ................... 56
Lecture 11: Consumer Happiness........................................................................... 59
What is Happiness? ...................................................................................................... 59
Measuring Happiness ................................................................................................... 59
6 Principles on how to (happily) spend money ............................................................ 61
Barasch et al. (2018): How the intention to share can undermine enjoyment ...................... 62
Baumeister et al. (2013): Key Differences Between a Happy Life and a Meaningful Life ........ 64
Practice Exam Questions ....................................................................................... 66
2
,Consumer Marketing
Session 1 – Introduction
Monday, 02.09.2024
Mini Case: What do we have to think about when it comes to lowered demand in a Milkshake seller?
- Competitors – alternatives - Product variability
- Customer satisfied - Product quality
- Seasonality - Trends (e.g. health)
- Previous communication and ads - Branding
- Product availability
→ Important: the consumers perspective
Tools: Interviews, open ended Interview, observations, break it down with a focus group (without
assumptions), SWOT Analysis
“Somewhere between 75 and 85 percent of all new products launched into the market don't succeed
financially.” “The reason is they don't target a job that people are trying to get done.” – Clay
Christensen
Aim: Understanding the Customer’s needs, wants and desires
Jobs to be done
A product needs a “JOB TO BE DONE” (JTBD) to be successful
- what an individual really seeks to accomplish in a given circumstance
- Progress that a person is trying to make in a particular circumstance
- People hire a product for help or a solution until this job is done
- Product or product category does not play a role in completing the customer job. Customers
judge solutions by how well they get the job done and switch products over time
- Circumstances are more important than customer characteristics or product attributes
- Jobs have powerful social and emotional dimensions and are not only about the product
features
E.g. Milkshake - Consumer observation:
- Milkshakes sold before 8 am
- By car, alone
- Milkshake is the only product bought
- Asking customers about why they buy a milkshake while driving:
deciding between less good alternatives (banana, bagel, snicker bar,
…) and the milkshake
- Results: Sticky hands want to be avoided, people seek occupation,
taste plays a role
What to do as seller:
3
, Consumer Marketing
- Promotions around the time they buy
- Increase the size
- Decrease the size of the straw
→ keeps the customer occupied longer and provides solution for boredom in the car in the morning
Purchase decisions are driven by desires, fears, dreams, etc. that customers are mostly not even aware
of. Therefor it is crucial to get in the mind of the customers.
E.g. Axe Bodywash:
- Functional needs: Clean
- Emotional Need: feeling good about yourself
- Social Needs: being popular and being viewed as amazing
→ Combination of needs is being covered
Advantages of the JTBD Logic for customer needs
- It shifts the perspective to the customer
- It frees the view on the other competitors
- Is has a predictive power since it is solution free
Questions to ask:
1. What progress / need is the person trying to achieve? What are the functional, social and
emotional dimensions of this progress?
2. What are the circumstances and the struggle? Who when where and while doing what?
3. What obstacles are getting in the way of the person?
4. Are consumers compensating their unfulfilled
needs with imperfect solutions? Why would they
change to your product?
5. How would they define what quality means for a
better solution and what trade-offs are they
willing to make?
6. What role does the product play in their lives?
Takeaways:
- Jobs-to-be-Done is a simple framework that puts
emphasis on the “why” behind what a customer is doing. It focuses on identifying enduring
consumer needs to develop products that have a lasting impact.
- It gives a unit of focus — the job the customer is looking to do — to build measurable ways of
looking at success that do not change over time. The products need to meet the metrics
important to the customers.
- You are not trying to just solve a consumer problem. You are first trying to figure out what the
right problem is.
- Good products do not sell themselves.
Duhigg (2012): „How companies learn your secrets “
Research Question: How can companies use consumer data and habit analysis to predict and influence
purchasing behavior without causing ethical concerns or consumer discomfort?
Pregnancy Prediction at Target:
4
