This summary of the course “consumer behavior” given by Bart De Langhe includes everything discussed from his lessons. This includes the powerpoint but also additional information that he has told. It's just over 60 pages long and doesn't contain any unnecessary information.
This summary of ...
Famous people in champagnes.........................................................................................................6
study with wine, Plassman et al. (2008) ..............................................................................................6
Study with ice cream ........................................................................................................................6
Study with songs ..............................................................................................................................7
what is a good costumer? ............................................................................................................. 7
thinkin trap 1: what is the secret to success................................................................................... 8
Brand value ......................................................................................................................................8
HOW MUCH ARE BRAND WORTH? .................................................................................................8
WHY DO BRANDS HAVE VALUE? ....................................................................................................8
Are vaccines effective? ................................................................................................................... 15
Pfizer’s press release on November 9, 2020 .................................................................................. 15
Moderna’s press release on November 16, 2020 ........................................................................... 15
1
,CONSUMER BEHAVIOUR
2024 nobel in economics .............................................................................................................17
What can we learn from RCT’s on digital advertising platforms? ....................................................17
Divergent algorithmic targeting in ‘lift tests’ ...................................................................................... 18
Is the pink K ad more effective than the blue K ad? ............................................................................ 18
Is it possible to approximate true causal effects with non-experimental approaches? ........................ 19
What Is multi-attribute utility theory.............................................................................................19
Why should the rich get richer, and the poor get poorer? ................................................................... 20
The theory ...................................................................................................................................... 21
Multi-attribute utility ....................................................................................................................... 21
Multi-attribute view ..................................................................................................................... 21
conjoint analysis ......................................................................................................................... 22
More alternatives is better? ......................................................................................................... 22
Independence of alternatives ...................................................................................................... 23
3 alternatives .............................................................................................................................. 24
Should our professor buy travel cancellation insurance? ..............................................................26
nobel price of economics : kahneman ............................................................................................. 26
Prospect theory’s probability weighting function ...................................................................... 26
Its also emotional: availability heuristic...................................................................................... 27
Prospect theory of Kahneman (similar to bernouilli) ..................................................................... 28
Can we have a marshmallow? ......................................................................................................29
What do you want for DESSERT? ...................................................................................................... 29
What do you PREFER? .................................................................................................................... 29
RIchard H. THALER: nobel price winner economics .......................................................................... 30
Lead by example..........................................................................................................................61
Inspire to act ...............................................................................................................................61
Elaboration on brand knowledge: strength of brand association & uniqueness of brand assotiations
...................................................................................................................................................63
How do customers differ? ............................................................................................................64
Unobservable & general .................................................................................................................. 65
Ground truth: wea dked 300 men ..................................................................................................... 66
Product specific observable ............................................................................................................ 67
4
,CONSUMER BEHAVIOUR
SESSION 1
WHY STUDY CONSUMERS?
WHAT IS MARKETING?
= Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering and exchanging offerings that have value for
customers, clients, partners, and society at large.
- Rocket science
o Strong correlation between the quality of the process and the quality of the outcome
o Good process → good outcome
o Bad process → bad outcome
- Behavioral science (probabilistic)
o No correlation
o You can follow a good process, but it won’t guaranty a good outcome
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and
exchanging offerings that have value for customers, clients, partners, and society at large”
REVIEWS
Influence decisions
- Many reviews don’t compare other products
- There is a difference between the quality reviews on amazon or reviews of professionals
5
,CONSUMER BEHAVIOUR
How often will you find that the product with the higher user ratings of amazon score performs better in
consumer reports quality score? → correlation is 0.15: so there is a correlation but it’s weak
If two products differ by less than 0.4 stars, there’s only a 50%
chance that the other one with the higher rating is also the one
that performs better in consumer reports tests
FAMOUS PEOPLE IN CHAMPAGNES
Old world → people wouldn’t buy it because they think they would be manipulated
New world → people are influenced faster because they believe the ‘opinion’ of celebrities
STUDY WITH WINE, PLASSMAN ET AL. (2008)
Study where you need to taste wine and they test the oxygen in your
brain when you taste them
5 wines, but in reality: wine AB are same (wine1), CD are the same
(wine2) and then you have E (wine3)
Liking without price
- Results 1>2>3
Liking with price (tester know the price of the wines, but they aren’t true)
- They like the more expensive wines more than the cheaper ones
- Their brain registers a more enjoyable feeling
STUDY WITH ICE CREAM
Ice cream vendor: for each server she asks how much are you willing to pay for a cup that’s
- Bigger but not filled to the top
- Smaller but filled above the top
Results: they want to pay more for the smaller one
6
, CONSUMER BEHAVIOUR
STUDY WITH SONGS
List of unknown songs → we made this available to markets and see which songs will be listened to the
most
- Independent market A: they can’t interact with each other
- Independent market B:
- Social market A: they see the number of listeners of each song
- Social market B:
Results:
- Correlation (rank market A, rank market B) highest?→ independent market
o people will be much more influenced in the social market bcs you see with song are
more popular so you will listen to that one more
o the difference can be much higher in 2 markets than in the independent market when
they only will be influenced by the songs itself
independent: value = f(product) → consistent/predictable
social: value = f(place) → inconsistent/unpredictable demand
WHAT IS A GOOD COSTUMER?
Value TO consumers
value = f(marketing mix)
- place - Costumer acquisition
- product - Cosumer development
- price - Customer retention
- promotion
value OF consumers
Firm value → happy with product?
7
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