Everything you need to know End Term Marketing
Topic 1 - Introduction
Marketing is the social and managerial process by which individuals and groups obtain what
they need and want through creating and exchanging products and value with others.
Consumer behavior reflects the totality of consumers’ decisions with respect to the acquisition,
consumption, and disposition of goods, services, time, and ideas by (human) decision making
[over time].
Process consumer behavior:
Stimulus (S) ; input Organism (O) Response (R) ; output
Marketing stimuli: e.g., Understanding Success measures: e.g.,
product, price, promotion, Consumer Behavior: sales, customer loyalty,
place thinking, feeling, doing review valence
Consumer Insight
Knowledge versus Understanding
An understanding is a mental construct, an abstraction made by the human mind to make sense
of many different pieces of knowledge.
Knowledge Understanding
The facts The meaning of the facts
A body of coherent facts The “theory” that provides coherence and
meaning to those facts
Verifiable claims Fallible, in-process theories
Right or wrong A matter of degree or sophistication
I know something to be true I understand why this is, what makes it
knowledge
I respond on cue with what I know I judge when to and when not to use what I
know
Correlation versus causality
Correlation Causality
A statistical way to measure the A specific correlation where the dependent
relationship between two sets of data variable is the result of the independent
variable
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, Does not automatically mean that the change Means that one thing will cause the other
in one variable is the cause of the change in
another variable
Means that both things are observed at the To demonstrate causation, you need to show
same time a directional relationship with no
alternative explanations.
Causal research has two main objectives:
● Identifying which variables are the “cause” and which variables are the “effect”.
● Understanding the nature of the relationship between the cause variables and the effect
variables.
As causal research is experimental in nature, it must have clearly outlined parameters and
objectives. Without a research plan and clearly defined objectives, the findings of your study can
become unreliable and can potentially have a lot of researcher bias. Additionally, controlled
experiments allow you to eliminate the influence of third variables by employing the use of
control groups or random assignment.
Observation = single points
Inference= points are connected
Topic 2 - motivation
MAO (Motivation, Drivers Example: Elderly; a
Ability and growing market for Internet
Opportunity) Services
Motivation ● Personal Relevance Motivation to learn about
● Consistency with the self, values, Social Media and avoiding
needs, goals, emotions Social Exclusion
● Moderate inconsistency with ● Observation that
attitudes social interaction
● Perceived Risk between people is
changing
● Want to avoid social
segregation, feel
younger
● See themself as
responsible (taking
care of yourself)
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, Ability ● Product Knowledge and Ability to work with Personal
Experience Computers and Mobile
● Cognitive Style Devices
● Intelligence, Education, and Age ● People are more
● Money educated than the
generation before
them
● Elderly prefer visual
aids
Opportunity ● Time Opportunity to take
● Distraction advantage of Digital
● Information Innovations
○ Amount
● Development of apps
○ Complexity
○ Repetition and simplification of
devices
● Availability of services
targeted at them
Example ability driver; cognitive style: When people think and reason, they sometimes have a
vested interest in the outcome of their thinking and reasoning. For example, people engage in
wishful thinking about whether or not their favorite sports team will win, or whether a relative will
survive a risky surgical procedure.
Motivation
Definition motivation:
● The force within the individual that account for the (1) direction, (2) intensity, and (3)
persistence of effort expended
● The biological, rational, emotional, and/or social force that initiates and directs behavior
● The inferred process within an individual that causes that organism to move towards a
goal
● The internal process leading to behavior to satisfy needs
Effect on customer behavior
● Highly motivated consumers are willing to spend more time on information search; i.e. it
evokes a psychological state called involvement
● Motivated consumers are more eager to learn about more alternatives
● When motivation to process brand information is low, attention is voluntarily allocated to
stimuli other than the brand or ad
● Motivation to enhance attention is possible by appealing to intrinsic hedonic needs,
using novel stimuli or enhancing curiosity
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, ● Consumers who give gifts from a sense of obligations are more likely to select utilitarian
gifts as compared to those why give gifts from a voluntary motive; they buy more
hedonic gifts
● Consumers attribute higher levels of pro-environmental behavior and motivation,but
lower levels of ability, to themselves than to other societal actors.
Challenge of understanding motivation
● Reasons underlying consumer motivation (drivers) are not always “obvious”
● People don’t always want to disclose reasons for their actions
● People don’t always know why they do what they do – unconscious motivation
● Motivations change over time
Dimensions of motivation
Directs Behavior (direction) Energizes Behavior Sustains Behavior
(intensity) (persistence)
Goals Drives Maintaining motivation
Organization of Effort Compulsions Ability to change course
Reaching Equilibrium Deprivation/Disequilibrium Importance of Feedback
Types of motivation
Types (A) Positive/approach Negative/avoidance
Motivation a driving force toward some a driving force away from
object or condition some object or condition
Goal a positive goal toward which a negative goal from which
behavior is directed behavior is directed away
Types (B) Intrinsic Extrinsic
Motivation comes from within a person comes from external forces or
to do a task or achieve a parameters to do a task or
particular goal for achieve a particular goal for
oneself some other to earn external
rewards or avoid punishment.
Driven by motives like eating motives like
food, desires to achieve financial bonus, rewards,
goals, biological needs etc appreciation, promotion,
punishment, demotion etc.
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