MKTG 371 SDSU Sharma Final

what is a need?

a discrepancy between someones actual state and their ideal or desired state

What are the 5 properties of needs?

1. dynamic

2. exist in hierarchy

3. can conflict

4. can be internally or externally aroused

5. can be influenced

What do marketers care about needs?

1. that they can be identified or discovered

2. that they can be influenced and triggered

What factors affect need awareness?

1. internal influences

2. external influences

3. social influences

Maslow's Hierarchy of Needs

-physiological

-safety

-love/belonging

-esteem

-self-actualization

Motivation Definition:

inner state of arousal directed toward achieving a goal; may vary in strength

What do motives affect?

- attention, information search, perception

- attitudes

- behaviors

Core Social Motives (BUCKET)

B: belonging

U: understanding

C: control

K: -

E: self-enhancement

T: trust

What is the fundamental motive that drives behavior?

The need to belong

Values Definition

enduring beliefs that guide what behavior or outcomes are desirable or good

What is the main tool we use for values?

VALS - psychographic tool that measures demographics, values, attitudes, and lifestyle variables

-used to identify potential target markets and learn to communicate with them more effectively

- based on customers resources and self orientations

techniques to gather info about needs, motives, and values

- observational research

- laddering

- surveys

- experiments

- many others

What are the key dimensions in the VALS framework?

1. tendency to consumer primary motivation

2. ideals, achievement, self-expression

What phase are interviews good for?

exploratory research phase

What phase are surveys good for?

Descriptive Data

How can marketers "create" or "trigger" needs?

moving up perceived desired state or moving down perceived actual state

Influencing perceived needs: Pain vs. Pleasure

- gain pleasure: link product/brand with desired end result

- avoid pain: your product/brand as the weapon to prevent undesirable states

Qualitative work:

provides rich thought and feelings

Quantitative work:

allows for testable hypothesis and percriptions

T or F: Qualitative comes BEFORE quantitative

True

How do marketers create triggers?

by focusing on benefits or pain aversion

How do people evaluate options?

1. Rational Agent neo-classical economics

2. Bounded rationality behavioral decision theory

what is the rational Agent model of neo-classical economics? (Thorstein Veblen)

- know what they want

- time consistent

- NO capacity restraints

- They MAXIMIZE

- choose product that best matches their (stable) preferences

What is the Behavioral Decision theory? (Herbert Simon)

- capacity restraints

- not always consistent

- operating within bounds

- these people SATISFICE

- inconsistent, ineffective, and often require help to make decisions

Rational agent model- Neoclassical

People will maximize—always choose the product that best matches their (stable) preferences

bounded rationality - behavioral decision theory

people will satisfice - they are inconsistent, ineffective, and often require help making choices

(evaluation of options stage) "evoked set" or "considered set"

AKA consideration set (top of mind) small relative to the total number of options available

(evaluation of options stage) "extended problem solving"

- higher involvement

- generally used when getting infrequently purchased, expensive, high risk or new goods or services

"routine problem solving"

- low involvement

- inexpensive and has limited risk if purchased

We search and evaluate based on:

- internal searches (memory, knowledge, personal experiences)

- social/external searches: word of mouth, public sources

Homo economics:

- infinitely sensitive, incredibly smart

- maximizes across all decisions

asocial and greedy, pursues wealth

homo sapiens:

- limited processing capacity: memory, attention, will

- satisfices: aims for "acceptable" performance

- has social concerns, positive and negative

Reflective System (system 2)

- slow, effortful

- rule-governed

- serial, needs to be learned

- deliberately controlled

- easy to modify

Reflexive System (system 1)

- fast

- automatic

- effortless

- associative

- difficult to modify

How do the two brain systems interact ?

there is a part of the mind or brain that takes the quick, instinctive thoughts generated by System 1 and processes or edits them before they become fully formed actions or decisions.

Heuristics:

Rules of Thumb (short cuts) to simplify judgements and decisions

Biases:

when judgements deviate systematically from what is considered optimal or appropriate

representativeness hieristic:

When we judge the probability that an object or event A belongs to class B by looking at the degree to which A resembles B (CORRELATION DOESN'T EQUAL CAUSATION)

availability heuristic

top of mind or things that come to mind first from past experiences

form level:

exact substitute for the product

ex: Apple iPhone, android smartphone

category level:

same category of product

ex: dominos pizza - to any fast food or other pizza place

need level:

satisfies basic need

ex: car - need of transportation

Market Analysis 3Cs

- customer

- company

- competition

strategic: STP

- segmentation

- targeting

- positioning

Tactical decisions (action plan ) 4Ps

- product

- promotion

- price

- place

WISE framework for consumer behavior

internal, social and external factors at the decision making stage

information processing includes

cognitive vs. emotions

product categories are

higher vs. lower involvement

decision strategy includes

optimizing vs. satisfying

Decision strategy 2

compensatory vs. non compensatory

compensatory

think tradeoffs - okay fine ill pay more for better quality

non compensatory

not willing to make any tradeoffs or substitutes

secondary data

- lower cost, available immediately

- hidden assumptions/agendas

- may answer slightly different questions

- no competitive advantage

primary data

1. exploratory research

2. descriptive research

3. experiments

what order should you conduct primary research?

1. Exploratory research

2. Descriptive research

3. Experimental research

Primary data: exploratory

explore broad, early stage objective and questions (uses small sample size)

Primary data: descriptive

investigate more precise better defined questions

Primary data: experiments

establish cause and effect relationships

leading question: why do you like Wendy's fresh meat better than those of competitors

what's wrong: customer is led to make statements already favoring Wendy's burgers

ambiguous question: do you eat fast food restaurants regularly? Yes? No?

what's wrong: what is meant by the word regularly? once a day, month, year?

unanswerable question: what was the occasion for you eating your first hamburger?

what's wrong: who can remember the answer? assume that they have even tried a burger before

two questions in one example: do you eat Wendy's hamburgers and chili? Yes? No?

how do you answer you eat their burgers but not their chili

non exhaustive question example: where do you live? Dorm? at home?

what's wrong: what do you check if you live in an apartment or other type of living?

non mutually exclusive answers example: what is your age? Under 20? 20-40? 40 and over?

what's wrong: what answer does a 40 year old check?

WISE FRAMEWORK

- watch

- internal

- social

- external

What do we need to do to understand consumer need recognition?

- understand consumer motives

- understand consumer values

- then you may "create needs"

T or F: humans are social beings; all motives are social motives

True

Is this true of values?: values can change, but tend to be more stable than motives

True

what ways can we measure Values?

- laddering

- interviews

- social groups

- VALS obvi

tips to increase contagiousness

- controversy

- social currency

- triggers

- emotions

- social proof

- stories

Paradox of pricing:

there is a pain of paying, but consumers who use pai for products tend to buy again

(post consumption stage) economic value:

when a product offers tangible monetary savings ate point of purchase or over the long term use

(post consumption stage) functional value:

(most common when consumers think of value) when a product offers useful features

(post consumption stage) psychological value

when a product offers "intangible" or perceived benefits

- Experiential value

- Social value

descriptive norm:

The perception of what most people do in a given situation.

injunctive norm:

a norm that defines what behaviors are typically approved or disapproved