Summary Consumer Behavior
(HC1 – H1 Kardes)
What is consumer behavior?
Definition: Processes involved in selecting, buying, using or disposing of products services,
ideas and experiences to satisfy needs and wants (Solomon)
THUS:
1. Obtaining products & services – How
2. Consuming products & services - Using
3. Disposing of products & services – reselling, disposing.
All factors that influence whether we buy, are to be divided in two categories:
- Consumer factors have to do with the consumer themselves:
o Age, gender, feelings, motivations, values, motivations, social environment, attitudes,
knowledge.
- Marketing factors have to do with the product characteristics:
o Brand names and reputations, WOM, advertising, promotions, price, service,
packaging, store atmosphere
Levels of consumer responses (think, feel, act – a,b,c):
- Affect – how they feel, fear: campaign about quiting smoking – hoe maakt de reclama
de consumetn voelen
- Behavior – Hoe reageren ze, gaan ze kopen of niet, how do they act on it.
- Cognition – How consumers think – what they think, thoughts, believes, what weet ik
van dit merk.
Intuition Trap (beware of common sense):
Problems with common sense:
- Projection bias: the idea that people project their own attitudes and beliefs onto
others.
- False consensus effect: overestimate that your own beliefs are also the beliefs of
others.
We focus on confirming instances:
- Confirmation bias – ignore what goes against our believes, dat wat ik ken is zo.
- Cognitive component: focused attention
- Motivational component: we are resistant to changing our prior beliefs – we don’t
want or like to be wrong.
Compromise effect:
- The share of a product increases when it is the intermediate option but decreases
when it is an extreme option.
Endowment effect
- Owners assign greater value to a product than non-owners.
,Malleability of preferences
- Every evaluation is relative
o “Reference dependence” (dingen die niks met elkaar te maken hebben
kunnen elkaar toch beinvloeden)
- People don’t know what they want until they see it in context
o “Context dependence” (vergelijking, de middelste optie kiezen)
- Preferences change depending on how the alternatives are presented to them
o “Description dependence” (owner of not – endownment!)
Research strategies:
1. Descriptive
2. Correlational
3. Experimental
4. Quasi-experimental
5. Nonexperimental
1. Descriptive: Describes individual variables.
>> Think about opinion polls, facts and figures in newspapers
2. Correlational: Measures two variables for each individual.
Correlation vs causation > Niet altijd het geval.
- Je moet er zeker van zijn dat wanneer je sales toeneemt – dat dit ook alleen komt
door meer adverteren. Anders kun je dat niet (causaal) aan elkaar wijden.
(independant variable en dependant variable)
- Experiments only prove causation!
Correlation coefficient: A correlation coefficient measures and describes the relationship
between two variables
- It describes:
o Direction (positive/negative)
o Consistency or strength
§ The sign (1/–) indicates the direction of the relationship (positive/negative)
§ The numerical value (0.0 to 1.0) indicates the strength or consistency of the
relationship
§ The type of correlation (Pearson = linear or Spearman = monotonic) indicates the
form of the relationship
Applications of the correlational strategy
- Demonstrates a relationship between two variables
o Predictor variable: the first variable
o Criterion variable: the second variable (being explained or predicted)
,3. Experimental research strategy
- Answers cause-and-effect questions about the relationship between two variables.
- Random assignment of people, anders kun je nooit 1 oorzaak aanwijzen.
4. Quasi-experimental research strategy
- Almost, but not quite, experiments - can never produce an unambiguous explanation.
- People self-assign to the experiment, they have a pre excisting motivation to join the
experiment. Self-selected, not random.
5. Nonexperimental research strategy
- Demonstrates a relationship between variables - does not attempt to explain it. No
manipulation, measure two groups of people, only measure one variable for each
individual.
External Validity:
- The extent to which the results of a research study can be generalized (waar je het
onderzoek ook doet, het moet hetzelfde zijn in alle landen en settings)
- Different kinds of generalization can involve threats to external validity:
o Generalization from a sample to the general population
o Generalization from one research study to another
o Generalization from a research study to a real-world situation
Internal Validity:
- Concerned with factors in the research study that raise doubts or questions about the
interpretation of the results (are the conclusions are only explainable by one answer)
(nothing else can explain better what we have found in the research)
- A research study with internal validity
o Produces a single, unambiguous explanation for the relationship between two
variables
- Threat to internal validity
o Any factor that allows an alternative explanation for the results
Threats to (internal/external) validity:
- Artifact: an external factor that may influence or distort measurements
o Experimenter bias: als de onderzoeker al bevooroordeeld is – of het
gunstigste antwoord kiezen.
o Demand characteristics – als de deelnemers van de test het doel al weten,
dan gaan ze hun antwoorden daarop aanpassen. Study goals must not be
obvious.
- Exaggerated variables
o Researcher should be cautious about generalizing the result of a study with
exaggerated variables – uit verband trekken.
§ VB: verschil tussen twee opties of 100 opties, maar dan ga je ervan uit dat hetzelfde
antwoord geld voor een test tussen 5 en 70.
, Confounder variable:
(Internal validity) there may be another variable causing the effect. Goals is: A causes B, but
what if there is another explanation for the cause? Maybe there is a third variable that makes
it look like A causes B, but actually it is the confounder. (Eig de sneaky misleidende factor)
Experimental research is the only research that demonstrates cause-and-effect relationships
between variables.
Correlational: demonstrates the existence of a relationship between variables.
Differential/non-experimental: Focusses on the difference of the two tested scores of
groups.
Strengths & weaknesses of correlation strategies:
- Strengths
o Describes relationships between variables
o Nonintrusive—natural behaviors
o High external validity
- Weaknesses
o Cannot assess causality
o Third-variable problem
o Directionality problem (zorgt A voor B of B voor A)
o Low internal validity (alle bovenstaande)
Spurious correlations: random correlation, geen betekenis
- VB: Warmer weer > meer moorden.
The directionality problem: does A cause B or does B cause A?
- VB: kids die sexual content zien op jonge leeftijd hebben eerder seks, of kijken ze
sexual content omdat ze al geïnteresseerd zijn en hebben daarom eerder (behoefte
aan) seks?
(HC3 – H7 Gravetter)
The Scientific Methode:
1. Observe
2. Question
3. Hypothesis
4. Method
5. Result/conclusion
Science is empircal and public:
- Empirical: answers are obtained by making structured or systematic observations
o Results will provide clear support for the hypothesis or will clearly refute the
hypothesis
- Public: observations are available for evaluation by others
o Replication is key to the scientific method
- Objective: outcome is not skewed by bias – je eigen ideeen op zij zetten, de data
bepaald.
(HC1 – H1 Kardes)
What is consumer behavior?
Definition: Processes involved in selecting, buying, using or disposing of products services,
ideas and experiences to satisfy needs and wants (Solomon)
THUS:
1. Obtaining products & services – How
2. Consuming products & services - Using
3. Disposing of products & services – reselling, disposing.
All factors that influence whether we buy, are to be divided in two categories:
- Consumer factors have to do with the consumer themselves:
o Age, gender, feelings, motivations, values, motivations, social environment, attitudes,
knowledge.
- Marketing factors have to do with the product characteristics:
o Brand names and reputations, WOM, advertising, promotions, price, service,
packaging, store atmosphere
Levels of consumer responses (think, feel, act – a,b,c):
- Affect – how they feel, fear: campaign about quiting smoking – hoe maakt de reclama
de consumetn voelen
- Behavior – Hoe reageren ze, gaan ze kopen of niet, how do they act on it.
- Cognition – How consumers think – what they think, thoughts, believes, what weet ik
van dit merk.
Intuition Trap (beware of common sense):
Problems with common sense:
- Projection bias: the idea that people project their own attitudes and beliefs onto
others.
- False consensus effect: overestimate that your own beliefs are also the beliefs of
others.
We focus on confirming instances:
- Confirmation bias – ignore what goes against our believes, dat wat ik ken is zo.
- Cognitive component: focused attention
- Motivational component: we are resistant to changing our prior beliefs – we don’t
want or like to be wrong.
Compromise effect:
- The share of a product increases when it is the intermediate option but decreases
when it is an extreme option.
Endowment effect
- Owners assign greater value to a product than non-owners.
,Malleability of preferences
- Every evaluation is relative
o “Reference dependence” (dingen die niks met elkaar te maken hebben
kunnen elkaar toch beinvloeden)
- People don’t know what they want until they see it in context
o “Context dependence” (vergelijking, de middelste optie kiezen)
- Preferences change depending on how the alternatives are presented to them
o “Description dependence” (owner of not – endownment!)
Research strategies:
1. Descriptive
2. Correlational
3. Experimental
4. Quasi-experimental
5. Nonexperimental
1. Descriptive: Describes individual variables.
>> Think about opinion polls, facts and figures in newspapers
2. Correlational: Measures two variables for each individual.
Correlation vs causation > Niet altijd het geval.
- Je moet er zeker van zijn dat wanneer je sales toeneemt – dat dit ook alleen komt
door meer adverteren. Anders kun je dat niet (causaal) aan elkaar wijden.
(independant variable en dependant variable)
- Experiments only prove causation!
Correlation coefficient: A correlation coefficient measures and describes the relationship
between two variables
- It describes:
o Direction (positive/negative)
o Consistency or strength
§ The sign (1/–) indicates the direction of the relationship (positive/negative)
§ The numerical value (0.0 to 1.0) indicates the strength or consistency of the
relationship
§ The type of correlation (Pearson = linear or Spearman = monotonic) indicates the
form of the relationship
Applications of the correlational strategy
- Demonstrates a relationship between two variables
o Predictor variable: the first variable
o Criterion variable: the second variable (being explained or predicted)
,3. Experimental research strategy
- Answers cause-and-effect questions about the relationship between two variables.
- Random assignment of people, anders kun je nooit 1 oorzaak aanwijzen.
4. Quasi-experimental research strategy
- Almost, but not quite, experiments - can never produce an unambiguous explanation.
- People self-assign to the experiment, they have a pre excisting motivation to join the
experiment. Self-selected, not random.
5. Nonexperimental research strategy
- Demonstrates a relationship between variables - does not attempt to explain it. No
manipulation, measure two groups of people, only measure one variable for each
individual.
External Validity:
- The extent to which the results of a research study can be generalized (waar je het
onderzoek ook doet, het moet hetzelfde zijn in alle landen en settings)
- Different kinds of generalization can involve threats to external validity:
o Generalization from a sample to the general population
o Generalization from one research study to another
o Generalization from a research study to a real-world situation
Internal Validity:
- Concerned with factors in the research study that raise doubts or questions about the
interpretation of the results (are the conclusions are only explainable by one answer)
(nothing else can explain better what we have found in the research)
- A research study with internal validity
o Produces a single, unambiguous explanation for the relationship between two
variables
- Threat to internal validity
o Any factor that allows an alternative explanation for the results
Threats to (internal/external) validity:
- Artifact: an external factor that may influence or distort measurements
o Experimenter bias: als de onderzoeker al bevooroordeeld is – of het
gunstigste antwoord kiezen.
o Demand characteristics – als de deelnemers van de test het doel al weten,
dan gaan ze hun antwoorden daarop aanpassen. Study goals must not be
obvious.
- Exaggerated variables
o Researcher should be cautious about generalizing the result of a study with
exaggerated variables – uit verband trekken.
§ VB: verschil tussen twee opties of 100 opties, maar dan ga je ervan uit dat hetzelfde
antwoord geld voor een test tussen 5 en 70.
, Confounder variable:
(Internal validity) there may be another variable causing the effect. Goals is: A causes B, but
what if there is another explanation for the cause? Maybe there is a third variable that makes
it look like A causes B, but actually it is the confounder. (Eig de sneaky misleidende factor)
Experimental research is the only research that demonstrates cause-and-effect relationships
between variables.
Correlational: demonstrates the existence of a relationship between variables.
Differential/non-experimental: Focusses on the difference of the two tested scores of
groups.
Strengths & weaknesses of correlation strategies:
- Strengths
o Describes relationships between variables
o Nonintrusive—natural behaviors
o High external validity
- Weaknesses
o Cannot assess causality
o Third-variable problem
o Directionality problem (zorgt A voor B of B voor A)
o Low internal validity (alle bovenstaande)
Spurious correlations: random correlation, geen betekenis
- VB: Warmer weer > meer moorden.
The directionality problem: does A cause B or does B cause A?
- VB: kids die sexual content zien op jonge leeftijd hebben eerder seks, of kijken ze
sexual content omdat ze al geïnteresseerd zijn en hebben daarom eerder (behoefte
aan) seks?
(HC3 – H7 Gravetter)
The Scientific Methode:
1. Observe
2. Question
3. Hypothesis
4. Method
5. Result/conclusion
Science is empircal and public:
- Empirical: answers are obtained by making structured or systematic observations
o Results will provide clear support for the hypothesis or will clearly refute the
hypothesis
- Public: observations are available for evaluation by others
o Replication is key to the scientific method
- Objective: outcome is not skewed by bias – je eigen ideeen op zij zetten, de data
bepaald.
