Day 4 Implications for Marketing and Marketing Research

Self- actualization Social Needs Ego Needs Physiological Needs (food, water) Safety and Security Needs Source: Maslow, A., Motivation and Personality (New York: Grossman Publishers, 1970) Survival needs Belonging needs Independence needs 2

 It is hard for consumers to identify their decision processes, as most are subconscious  It is also hard for them to separate needs versus wants  One method to map out their decision processes is a hierarchical value map 3

 Map the linkages between product attributes, use consequences, and consumer goal-values  This can be used to transform either ZMET or MEC (ACV) brand laddering interviews into a probabilistic form  The joint probability for each chain can be viewed as a dependent variable 4

 Product  Price  Promotion  Place 5

 Understanding the biases inherent in existing research tools like focus groups and surveys  Understanding the limitations of direct questioning to understand and predict consumer behavior  Do we need new methodologies or can we adapt existing ones? 6

7

 Oliver, 1993  Satisfaction incorporates significant affect  Satisfaction is based on three pillars  How satisfied the consumer is with the product  Whether or not they would repurchase again  Whether or not they would recommend  Ego involvement in all three pillars 8

 Oliver, 1999  Satisfaction and Loyalty are asymmetric  Whereas loyal customers are typically satisfied, satisfied customers don’t necessarily translate into loyal customers  After loyalty is established, the satisfaction imperative is diminished 9

 Loyalty is strongly impacted by reputation and trust  Brand promises are not just empty phrases – consumers understand what is being communicated by the company and make choices accordingly 10

 Simonson, 1989  Attraction effect – asymmetric dominance when one alternative is better than the other  Compromise effect – alternative tends to gain market share when it is the compromise or middle option in a set – this is opposite of the similarity effect  Marketers can provide a lesser comparison to gain share 11

Product, Price, Communication, Community, and Distribution Programs Wrap-Arounds Core Product / Service... provides positive consumer responses... A good brand... Customer Benefits Confidence Loyalty Satisfaction Customer Benefits Confidence Loyalty Satisfaction Firm Benefits Reduced marketing costs Increased margins Opportunity for brand extensions Firm Benefits Reduced marketing costs Increased margins Opportunity for brand extensions... and benefits both target customers and the firm Brand Awareness Depth Breadth Brand Awareness Depth Breadth Brand Associations Strength –Relevant –Consistent Valence Uniqueness –Memorable –Distinctive Brand Associations Strength –Relevant –Consistent Valence Uniqueness –Memorable –Distinctive Source: David Aaker (1996), “Building Strong Brands,” (New York, NY: Free Press) 12

 It is critical for management to protect a firm’s brand identity and resulting brand equity  Brand equity of large global brands like Coca- Cola can be more than half of the market capitalization for the company  Firms must have:  A brand orientation mindset  Internal branding capabilities  Consistent delivery of the brand 13

14

 Current and emerging means to find out what is going on in the brain  Galvanic Skin Response  Eye-tracking  fMRI 15

 Differences in Baby Boomers versus Echo Boomers  Attention span  Comfort with technology  Comfort with pace of change  Multi-tasking  Socially connected  Emotionally remote 16

 The rate of change will continue to increase  This implies faster decisions, and implies more reliance on heuristics and affect than ever before  This implies the potential for falling prey to our own decision biases 17

 Knowing how to manipulate purchase decisions carries a great responsibility  What is the line between competing for consumer dollars and loyalty versus manipulating unknowing and unprotected individuals? 18