Summary of Marketing Mix Management - Consumer Behavior (Y05129)
13 views 0 purchase
Course
Marketing Mix Management (Y05129)
Institution
Katholieke Universiteit Leuven (KU Leuven)
Summary of the part 'Consumer behavior towards the marketing mix' in the course Marketing Mix Management (Prof Tine De Bock). This course has code Y05129 and is taught in the Master in Commercial Sciences (Master handelswetenschappen, KU Leuven Carolus Antwerp) as a compulsory or elective course. T...
Contents
Marketing Mix Management – Consumer Behavior ...................................................................................... 1
Module 1. Introduction to consumer behavior towards the MM ..................................................................... 3
1. Conceptual framework .......................................................................................................................... 3
2. Consumer behavior: positioning in the marketing mix + examples ........................................................ 6
2.1 Consumer behavior positioned in the marketing mix ........................................................................ 6
2.2 Example 1: Netflix ............................................................................................................................ 6
2.3 Example 2: IKEA effect .................................................................................................................... 7
3. Experiments: An exercise...................................................................................................................... 7
3.1 Task ................................................................................................................................................ 7
3.2 Solution ........................................................................................................................................... 8
4. Core concepts ..................................................................................................................................... 11
Module 2: Metacognitive experience........................................................................................................... 11
1. Paper: When colors backfire: The impact of color cues on moral jugement ......................................... 11
1.1 Colors & prevention/promotion campaigns .................................................................................... 11
1.2 Theoretical background & Hypotheses .......................................................................................... 12
1.3 Experimental study 1 ..................................................................................................................... 14
1.4 Experimental study 2 ..................................................................................................................... 17
1.5 Great British Spring Clean ............................................................................................................. 20
2. Discussion .......................................................................................................................................... 20
3. General overall observations ............................................................................................................... 22
4. Core concepts ..................................................................................................................................... 22
Module 3: Risk & customer decision making ............................................................................................... 24
1. In theory – How should people think about risk? ................................................................................. 24
1.1 Expected utility theory.................................................................................................................... 24
2. Reality – How do people think about risk in reality? ............................................................................. 25
2.1 Expected utility theory and the framing effect ................................................................................ 25
2.2 Positive and negative frame – Example ......................................................................................... 27
2.3 Preference reversal ....................................................................................................................... 28
2.4 The framing effect and marketing decisions ................................................................................... 28
3. Prospect theory ................................................................................................................................... 29
4. Endownment effect, sunk cost effect & choice deferral ....................................................................... 30
4.1 Endownment effect ........................................................................................................................ 30
4.2 Sunk cost effect ............................................................................................................................. 31
4.3 Choice deferral .............................................................................................................................. 31
4.4 Price bundling ................................................................................................................................ 32
4.5 Pennies-a-day approach................................................................................................................ 32
5. Sample exam questions ...................................................................................................................... 32
6. Core concepts ..................................................................................................................................... 33
Module 4: Numbers & consumer decision making ...................................................................................... 33
, 2
1. Podcast with Prof. Dr. Christophe Lembregts ...................................................................................... 33
1.1 Testing numerical cognition ...................................................................................................... 34
1.2 Making decisions about numbers in the marketing mix .................................................................. 35
2. Evaluation mode and the unit effect .................................................................................................... 36
3. Default unit effect ................................................................................................................................ 36
4. Discretizing unit effect ......................................................................................................................... 39
5. Recap ................................................................................................................................................. 41
6. Core concepts ..................................................................................................................................... 41
7. Sample exam questions ...................................................................................................................... 43
Module 5: Culture & consumer behaviour ................................................................................................... 43
1. Important bits of the article .................................................................................................................. 44
2. Conclusion in the paper....................................................................................................................... 45
6. Sample exam questions ...................................................................................................................... 45
Module 6: Placebo effect of marketing actions ............................................................................................ 46
1. Introduction ......................................................................................................................................... 46
2. Limitations preliminary study ............................................................................................................... 48
3. Theoretical background ....................................................................................................................... 48
4. General conclusions............................................................................................................................ 49
5. Reading: Three experimental follow-up studies ................................................................................... 50
Module 7: Online vs offline shopping .......................................................................................................... 50
1. Introduction ......................................................................................................................................... 50
2. Theory and hypotheses ....................................................................................................................... 52
2.1 Theoretical background ................................................................................................................. 52
2.2 Hypotheses ................................................................................................................................... 54
2.3 Limitations ..................................................................................................................................... 55
3. Study 1................................................................................................................................................ 55
4. Study 2................................................................................................................................................ 55
4.1 Procedure ...................................................................................................................................... 56
4.2 Results .......................................................................................................................................... 57
5. Study 3................................................................................................................................................ 57
6. Study 4................................................................................................................................................ 58
6.1 Procedure ...................................................................................................................................... 58
6.2 Results .......................................................................................................................................... 59
7. Discussion .......................................................................................................................................... 59
8. Sample exam questions ...................................................................................................................... 60
Possible exam questions ............................................................................................................................ 60
1. Question 1 .......................................................................................................................................... 60
2. Question 2 .......................................................................................................................................... 61
, 3
Module 1. Introduction to consumer behavior towards the MM
1. Conceptual framework
Marketing = the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return (Philip Kotler)
Marketing is about creating value by identifying, anticipating and satisfying customers’ needs and wants,
whether customers are individual consumers, businesses or stakeholders
The marketing process: this is how businesses create value
• Marketing process with 4 steps
• In each step, organisations need to take decisions and
actions to create value for customers, and in return
value for themselves
• Analysis: Research about what customers want and
need. Different models to use here are five forces model
of Porter, SWOT-analysis and competitor analysis.
• Strategy: In step 2 you define the target audience, think
about how to position your organisation or brand and think about the marketing goals you want to
put forward.
• Tactics: How to brand the product, how much is the price, where is the production, how is the
product distributed, how you will promote the product, …
• Implementation & evaluation: implement the process and evaluate if you reached your goals
Marketing mix
• = the third step of marketing process
Marketing mix – Product
• What does the client want from the product?
• How will the customer use the product?
• Where will the client use the product?
• What features must the product have to meet the client’s needs?
• What’s the name of the product?
• What are the sizes or colors available?
• How is the product different from the products of your competitors?
• …
Marketing mix – Price
• How much did it cost you to produce the product?
• What is the customers’ perceived product value?
• Do you think that the slight price decrease could significantly increase your market share?
• Can the current price of the product keep up with the price of the product’s competitors?
• …
, 4
Marketing mix – Place
• Where do your clients look for your service or product?
• What kind of stores do potential clients go to? Do they shop in a mall, in a regular brick and mortar
store, in the supermarket, or online?
• How do you access the different distribution channels?
• How is your distribution strategy different from your competitors?
• Do you need a strong sales force?
Marketing mix – Promotion
• How can you send marketing messages to your potential buyers?
• When is the best time to promote your product?
• Will you reach your potential audience and buyers through television ads?
• Is it best to use the social media in promoting the product?
• What is the promotion strategy of your competitors?
4 P’s to 4 C’s
• P’s are to much focus on the company, and to little focus on the customer. This is why they made
the P’s to C’s.
• Product → customer needs & wants
• Price → Cost
• Place → Convenience
• Promotion → Communication
Big impact of digitalization on the marketing mix
• Product: Customer have sometimes the possibility to change the design of the product itself when
ordering it online, for example the customized Nike shoes. Firms can get more information about
consumer behavior online than offline, how many times does a consumer look up this product.
• Price: Customers can easily compare prices, they can look up the prices of other competitors while
they are in a particular store or even buy from another store. When a customer looks up a product
several times, this can effect the online price. This is called 'dynamic pricing'.
• Place: because of the digitalization there are more and more 'places’ to get in touch with your target
group. You can no longer focus only on your brick-and-mortar store. For example, you can also
reach them on their smartphone. Because of the digitalization, customers now have many more
places to buy a product (Online/Offline, other countries, ...)
• Promotion: There are more ways to lure customers back to your online store, if a customer visited
your website, you can approach them with a promotion on their social media to try to get them come
back. When you walk around in public you pass a lot of billboards, in the online world this is also the
case. But online you get a lot of advertising on products you have looked up before. Offline you get
in touch with 'new' products compared to online.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StudentAtAntwerp. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.00. You're not tied to anything after your purchase.
