100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary of the Consumer Behavior lectures 2023 CA$10.74   Add to cart
Quickly navigate to
Preview
  2.  
  3. Vrije Universiteit Amsterdam (VU)
  4.  
  5. Consumer Behavior (E_EBE3_CBEH)

Class notes

Summary of the Consumer Behavior lectures 2023

2 reviews
 144 views  29 purchases
  • Course
  • Consumer Behavior (E_EBE3_CBEH)
  • Institution
  • Vrije Universiteit Amsterdam (VU)

Exam grade: 8,4 This summary contains all the discussed information of the lectures Consumer Behavior, including notes of the example exam questions and important information of the mandatory articles

Preview 4 out of 53  pages

Document information

  • March 20, 2023
  • 53
  • 2022/2023
  • Class notes
  • Michail kokkoris
  • All classes

Subjects

  • consumer
  • behavior
  • consumer behavior
  • specialization
  • articles
  • lectures
  • pavlov
  • prospect theor
  • vu
  • vrije universiteit amsterdam
  • iba
  • bk
  • international business administration
  • notes
  • cognitive dissonace theory

Written for

  • Vrije Universiteit Amsterdam (VU)
  • Business Administration: Marketing
  • Consumer Behavior (E_EBE3_CBEH)
All documents for this subject (3)

2  reviews

review-writer-avatar

By: chadi_voetballer • 4 months ago

review-writer-avatar

By: joepfellinger • 4 months ago

Seller

avatar-seller
juliawestra

Reviews received

Content preview

Lecture 1: Introduction of Consumer Behavior
 Consumer behavior: obtaining, consuming and disposing of products/services
o Understanding and explaining why consumers behave that way, conscious and
unconscious decisions, external influences, customer segments, delivery options,
returns
 Consumer & marketing factors are underlying factors that influence factors of obtaining,
consuming, disposing




  Consumer: individual/group/organization  ABC (affect, behavior, cognition
responses)
o Affect: how consumers feel (emotions)
o Behavior: how consumers act
o Cognition: how consumers think (thoughts, opinions)

 Why study consumer behavior?  advertising, understand consumers (needs, decisions,
emotions), predict reaction to marketing strategies (product/price changes, change
positioning)

But..
 Problem with understanding: not everyone likes you (false consensus)
o False consensus effect: overestimate that you own beliefs are also beliefs of
others
 Problem with predicting: you often don’t even know (biases)
o What you would do (affective forecasting: how something makes you feel)
o Why you do what you do

Intuition trap: problems with common sense
 We are often wrong
o Projection bias: idea that people project their own attitudes/beliefs onto others
 We focus on confirming instances: confirmation bias, cognitive component (focused
attention), motivational component (resistant to changing our prior beliefs)
 Our preferences are not representative: projection bias/false consensus bias, people
overestimate extent to which their beliefs are typical of those of others

, Make decisions based on few observations
 Infer causality from correlation
 Overconfidence
 Intuitive ideas are: easy, more vivid, appealing, well-remembered, generic
 Scientific ideas are: complex, careful, situational




Marketing organizations
 Find out what they care about and provide that (Crest toothpaste)
o  Do consumers know what they want?  no (preferences flexible, don’t know
what they prefer, don’t know what is possible)

Public policy
 Regulate behavior: how will consumers react to regulations?
- Assumption: if people know how bad something is, they will not do it
- Does it work?  sometimes they still do it
- How will consumers react to regulations (cigarette warning labels) and to
market changes (recession, tax cuts)?
 Change behavior: social marketing
- Encourage/discourage activities
- Effect of advertising on society

Consumer research
 Problems interviews/survey: self-selection, self-reports, sensitivity to wording/order
 Qualitative: exploratory
 Quantitive: test, generalize


Lecture 2: Irrationality
Consumer assumption
 Preferences are clear and accessible in consumers’ minds
 Consumers make trade-offs between quality and price
 Each product is judged on its merits alone
 Willingness to pay is the result of evaluating the object we are interested in
 Market research instruments accurately tell us what consumers really prefer and how
much they would pay

,Value depends on irrelevant anchors
 Willingness to pay increased, when digits of SSN are higher

Value depends on set of alternatives
 Compromise effect: share of product increases when it is intermediate option but
decreases when it is extreme option

Value changes with ownership
 Endowment effect: owners assign greater value to a product than non-owners

Malleability of preferences
 Preferences are typically constructed, not revealed
o Every evaluation is relative  reference dependence (toaster)
o People don’t know what they want until they see it in context  context
dependence (lamp)
o Preferences change depending on how alternatives are presented to them 
description dependence (cup)

Rational consumers:
 People take into account the pleasure they obtain from consuming something
 Price they pay for it
 Consumers want value for money

 Free products: consumers prefer this, gives a high trigger to consumers!!

 Large assortments & wide product selection: consumers prefer this (desirable)
o More options: more attention + more difficult to make buying decision (choice
overload: demotivating)

 Choice overload / hyperchoice: Freedom of choice becomes tyranny of choice  more
options, is more difficult, frustrating (fear of making wrong choice, FOMO), lower
satisfaction, lower choice
- Why choice might make us unhappy:
 regret and anticipated regret
 opportunity costs: the value of the next best choice that one gives
up when making a decision
 escalation of expectation
- Example: Jam experiment; consumers had to possibility to taste 6 or 30
types of jam. The result -> people were much more likely to buy a jam
when they had to chose between 6 jams (compared to 30 flavors)

Descriptive research strategy (opinion polls, facts, figures)
 Describes individual variables
 Obtains snapshot of specific characteristics of specific group of individuals
 Data is in form of averages/percentages

,  The independent variable causes the effect to a dependent variable, and NEVER the
other way around

Correlational research strategy
 Measures 2 variables for each individual
 Relationship between advertising expenditures and sales




Form of relationships: Linear and Monotonic:




Correlation vs. causation
 Not everything is caused by each other, but can be related
 Independent variables (cause), dependent variable (effect)

Correlation coefficient
 Measures and describes relationship between 2 variables
 Describes direction + consistency or strength

 Both variables are non-numerical: chi-square test

Correlational strategy
 Predictor variable: 1st variable (simple, well defined)
 Criterion variable: 2nd variable (being explained/predicted) (complex, unknown)
 Regression: statistical process for using 1 variable to predict the other
o Goal: to find equation that produces most accurate prediction of Y (criterion) for
each value of X (predictor)

Experimental research strategy: answers cause-and-effect questions about relationship
between 2 variables (random assignment)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 juliawestra. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$10.74. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

77764 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$10.74  29x  sold
  • (2)
  Add to cart