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Short Summary - MCB30306

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This document contains a brief summary of the MCB30306 course. Note: this summary contains the most important and difficult concepts. It is particularly useful to use shortly in advance or in time. My account has a bundle where you get this short summary for free with the long summary.

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  • December 15, 2022
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  • 2021/2022
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Hedonic vs utilitarian consumption
ELM  High involvement: central route
Low involvement: peripheral route
Perception involves (1) external stimuli, (2) sensory
receptors, (3) mental processes, and (4) reactions to stimuli
o Inter-observer reliability: between people
o Intra-observer reliability: over time
Brunswik’s Lens Model
 Ecological validity: ambiguity
o Distal variables <-> proximal cues
o Cue predictive validity
 Cue utilisation: combination of cues
o Proximal cues <-> perceptual response
o Cue confidence value
 Functional validity
o Distal variable <-> perceptual response
Value based quality consist of: (Steenkamp)
 Evaluative judgement (1)
o Quality cues: intrinsic (colour, size) & extrinsic (price, brand, label)
o Quality attribute: intrinsic (organic production) & extrinsic (Fair Trade)
 On subject – object interaction (2)
o Comparative: brand A vs B (if other products are very good, this one is worse)
o Personal: differs among subjects (involvement, prior knowledge, perceived risk)
o Situational: depends on context (usage goal, time pressure)
 In a consumption context (3)
Formation of (quality) attributes can be based on:
 Descriptive belief formation: based on what you see and feel
 Informational belief formation: based on outside sources (friends, ads)
 Inferential belief formation: based on previous experiences
Search attributes: can be determined before purchase (colour, weight, brand)
Experience attributes: can be discerned only after purchase (vacations, taste)
Credence attributes: hard to evaluate even after purchase (medical diagnosis, auto repair)
Deterministic choice rule: winner gets all
 Max-utility (first-choice) rule AND High involvement, durables, expensive, one-time buy
Probabilistic choice rules: winner gets most, but not all:
 BTL rule: Logit rule:

Criteria for selection of attributes:
 Differentiate between products
 Important to consumers (qualitative research)
 Communicable the more vividly presented, the more important an attribute will seem to be
 Objective
 Actionable: relevant for company’s decision making
Criteria for selection of levels:
 Mutually exclusive
 Preferably an equal number of levels per attribute (the more levels the more important)
 Range of levels somewhat outside existing range

, Issues with categorisation
 Cross-categorisation: objects can belong to single taxonomic category only but can belong to
multiple goal derived categories.
 Functional categorisation: limit your options, as you don’t look outside that category
 Consideration set formation: situational goal triggers relevant functional category.
Unfamiliar goal triggers more cross-category.

Most abstract Values Personal goal derived

Abstract Situational context Consequences Situational goal derived

Concrete Situational characteristics Attributes Taxonomic feature based

PCA assumptions: independent observations, sufficient number of large correlations, KMO>.8,
Barlett’s test significant
How many factors? A priori, eigenvalue > 1, scree plot, cumulative VAF > 60%, <50% residual
correlations >.5, interpretability

Orthogonal (varimax): more stable estimates
Non-orthogonal (oblimin): loadings unclear otherwise

Homogeneous evaluations consumer & heterogeneous evaluations products
Heterogeneous evaluations consumer & homogeneous evaluations products
Heterogeneous evaluations across different subgroups of products

Correlation vs covariation matrix
Compositional vs Decompositional mapping

 Object classification
o Concrete singular object: One object, commonly known (regular Coca Cola)
o Abstract collective object: Heterogeneous objects that form a category (Soft Drinks)
o Abstract formed object: Object that is composed of different, possibly unrelated,
components. People have different interpretations. (Marketing)
 Attribute classification
o Concrete attribute: Simple measurement by a single item. Only needs 1 question.
(colour, price perception)
o Eliciting / reflective attribute: Set of items measuring a sample of concrete attributes.
1 dimensional scale (need for cognition, attitude)
o Formed attribute: The attribute is defined by the dimensions that you measure.
Multi-dimensional scale (IQ, Social Class, Income, Job, Education, Speed)
 Rater or Respondent identification
o Individual rater: Self reports that are analysed for classification and for individual
differences (most common in surveys / experiments)
o Group raters: Representative sample for a population and analysed for population
scores (opinion-type research)
o Expert raters: Trained and used for classifying of objects (professional taste testers)

Service quality is: (ServQual) Responsiveness Assurance Tangibles Empathy Reliability

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