Day 4
Implications for Marketing and Marketing Research
Selfactualization
Social
Needs
Physiological
Needs (food,
water)
Ego
Needs
Independence needs
Belonging needs
Safety and
Security Needs
Survival needs
Source: Maslow, A., Motivation and Personality (New York: Grossman Publishers, 1970)
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
. . . provides positive
consumer responses . . .
A good brand . . .
Product, Price, Communication,
Community, and Distribution
Programs
Brand Awareness
. . . and benefits both target
customers and the firm
Customer Benefits

Depth

Confidence

Breadth

Loyalty

Satisfaction
Wrap-Arounds
Brand Associations
Core Product
/ Service

Strength
Firm Benefits
– Relevant
– Consistent

Reduced
marketing costs

Valence

Increased margins

Uniqueness

Opportunity for
brand extensions
– 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 CocaCola 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