Lecture 2 - Consumer Behaviour

UNDERSTANDING
CONSUMER BEHAVIOUR
2020-2021
Dr. Stephan GERSCHEWSKI U3

stephan.gerschewsk22@em-normandie.fr OXFORD
LECTURE 2 – Marketing Research
Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI

1) Marketing 2) Personal 3) The buying 4) Environmental
Introduction
Research Influences decision process Influences
Case Study: New Coke
Coca Cola Dance Advertisement 1980s
https://www.youtube.com/watch?v=ZUEEBOSUiSc
Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 3

Introduction
Case Study: New Coke (cont’d)
1. The launch of New Coke turned out to be a nightmare for

Coca-Cola. Discuss the marketing implications of
introducing New Coke.
2. Was it necessary to re-formulate New Coke?
3. Where did market research fail in this case? What would

you do if you were a market researcher?
4. Was New Coke a tactical manoeuvre or a mistake?
Please read the Case Study on Smart Ecole and discuss the
questions in your Zoom Breakout Rooms for 30 minutes
• Coca Cola - Dance Advert 1980s

• Michael Jackson Pepsi Generation:
https://www.youtube.com/watch?v=po0jY4WvCIc
• Pepsi Challenge 1981
• "New Coke" Coca-Cola Commercial – 1985
• The 1985 launch of New Coke:

• https://www.youtube.com/watch?v=W6t7deaplgY
• Early 1980s, Coca-Cola loses market share to Pepsi

• New Product research is carried out
• $4 million cost
• 200,000 taste tests
• 60% of consumers preferred it in blind tests
What went wrong?

Research was narrowly defined

 Considered taste only (not
emotions, not brand value…)
 Dropping Old Coke not mentioned
U.S. reaction to old Coke’s return
Political Senator David Prior of Arkansas on the Senate Floor:

“A very meaningful moment in the history of America, this
shows that some national institutions cannot be changed”
Media ABC interrupted its soap opera, General Hospital on
Wednesday afternoon to break the news
Economic Coca Cola’s share price rose to its highest level in 12 years
Introduction
 To practice marketing, to implement the

marketing concepts, to implement marketing
strategy, managers must make decisions.
 Many decisions require additional information

and therefore marketing research is needed in
order to supply that information.

Introduction
https://www.prdaily.com/coca-cola-embraces-
past-failure-with-new-coke-relaunch/
Coca-Cola embraces past failure with New

Coke ‘relaunch’
The product, which flopped in the ‘80s,

will be offered for a limited time to
promote Netflix’s third season of
‘Stranger Things.’

Introduction
Coca Cola Christmas Advertisement 2020:
https://www.youtube.com/watch?v=yg4Mq5EAEzw

Introduction
Definitions: Marketing Research
Marketing research is the process of

designing, gathering, analyzing, and
reporting information that may be used
to solve a specific marketing problem.
Burns, Veeck and Bush (2019)

Introduction
Example
In China, PepsiCo was initially unsuccessful in
introducing its Frito-Lay brand of potato chips
into the market. Sales were particularly low in
summer months.
Research revealed that Chinese shoppers

associated fried foods with yang, believed to
generate body heat in summer months
(Fowler and Setoodeh, 2004).
As a result, Lay’s introduced a ‘cool lemon’

variety in pastel-colored packaging to reflect
yin, a cool feeling. The product subsequently
became Lay’s most successful in China.

Introduction
Marketing
UNDERSTANDING
THE MARKET STUDY
DEVISING THE
MARKETING STRATEGY
CONTROLING STRATEGY
IMPLEMENTING
THANKS TO THE TACTICS
MARKETING MIX
Introduction
Parlin: ’Father’ of Marketing Research

 Charles Coolidge Parlin (1872-1942) worked for Curtis Publishing
Company, a successful and influential American publishing
company of the early 20th century.
 Curtis Publishing made a principle-driven choice to ban
medical, cosmetic, financial, and cigarette
advertisements—and thus their accompanying
revenue—from its magazines.
 They created the Division of Commercial
Research (1911) to better serve its clients and help
them do better advertisements.
 For instance, Parlin calculated the strong influence that women had over
family automobile purchases and foresaw that the automobile industry
needed to reduce the number of models offered. Insights such as these
eventually led to increased—and smarter—advertising.
Source: https://blog.cmbinfo.com/bid/105602/The-Origins-of-Marketing-Research
Introduction
Examples
 Identify marketing opportunities and problems:
Segmentation, SWOT analysis
 Generate and evaluate potential marketing actions: New

product prototype testing, advertising pretesting…
 Monitor marketing performance: Customer satisfaction,

brand image analysis…
 Improving marketing as a process:

 How does background music affect product perceptions ?
 How does pre shopping information affects product returns ?
 …
Introduction
Marketing Research Process

Research question and objectives definition
Research design and strategy
Data collection
Data analysis and interpretation
Results presentation

Introduction
More detailed…
Source: Burns, Veeck and

Bush (2019)

Introduction

Step 1: Establish the Need for
Marketing Research
 Is there a real need for marketing research?

 Research takes time and costs money.
 Marketing research is not always needed.

Introduction

Step 1: Establish the Need for
Marketing Research
 When is marketing research not needed?
 The information is already available.
 Decisions must be made now.
 We can’t afford research.
 Costs outweigh the value of marketing
research.
Introduction

Step 2: Define the problem
 What is the marketing issue?
 If the problem is incorrectly defined, all else
is wasted effort.
Step 3: Establish Objectives
 Research objectives, when achieved, provide
the information necessary to solve the
marketing problem identified.
Introduction

A study will never tell you what you should do, it
will on the other hand give you the information
you need to make a management decision.
 Specify the information needed to solve

management problem
 Look for the information you can obtain in a
reliable way.

Introduction

Problem Research questions
Step 2 Step 3
Should I go skiing next weekend ? How much snow is there currently
at the ski resort?
What is the forecast for next week?
Are they accomodations available
in the resort?
…
The information provided by the marketing research will

help the manager to take his/her decision. It will not
decide.
Introduction

Marketing problem Research questions
Step 2 Step 3
How can we increase customer loyalty • Which are the key moments of truth for
at the American Cinema Festival? someone attending a film festival
(How can we make people come • What are the customers needs and
again?) expectations ?
• What are the strengths and the
weaknesses of the ACF compared to
competitors?
• …
GROUPWORK
Marketing problem
Step 2
How to increase the
effectiveness of an
advertisement?
Research questions
Step 3
What should be the

main research
questions?
GROUPWORK
Marketing problem
Step 2
How to increase the
effectiveness of an
advertisement?
Research questions
Step 3
What is the existing body of

knowledge?
DO NOT FORGET SECONDARY
DATA ANALYSIS
Introduction
Research GROUPWORK
Influences decision process Influences
ADVERTISEMENT EFFECTIVENESS
Source: Lewis (1903), Catch-Line and Argument, The Book-Keeper, Vol. 15, p. 124.
Introduction
Research GROUPWORK
Influences decision process Influences
ADVERTISEMENT EFFECTIVENESS

Introduction

 If the manager requesting your study is

completely certain of answers for some given
research questions there is no need for research.
 For uncertain answers, research will eliminate
the manager’s uncertainty and therefore aid in
decision making.

Introduction

Step 4: Determine Research Design
 Research design is the overall plan of the

methods and procedures chosen for
collecting and analyzing the needed
information (the marketing research
objectives).

Introduction

 There are three basic marketing
research designs that can be
successfully matched to given
problems and research objectives:
 Exploratory
 Descriptive
 Causal
Introduction


Introduction
Exploratory Research
 A variety of methods are available to
conduct exploratory research.
 Secondary Data Analysis
 Experience Surveys
 Case Analysis
 Focus Groups
 Projective Techniques
…
Introduction
Descriptive research
 Descriptive research is undertaken to

describe answers to questions of who,
what, where, when, and how.
 Descriptive research is desirable when
we wish to project a study’s findings
to a larger population, if the study’s
sample is representative.

Introduction
Descriptive research
 Two basic classifications:
 Cross-sectional studies
 Longitudinal studies
 Cross-sectional studies measure units from a sample of the population
at only one point in time. They take “snapshots” of the population at a
point in time. Marketing of use surveys.
 Longitudinal studies repeatedly measure the same sample units of a

population over time. They often make use of a panel which represents
sample units who have agreed to answer questions at periodic intervals.

Introduction
Causal research
 Causality may be thought of as understanding a

phenomenon in terms of conditional statements of
the form “If x, then y.”
 Causal studies are conducted through the use of
experiments.
 An experiment is defined as manipulating an
“independent” variable (the researcher has control over) to
see how it affects a “dependent” variable (we have a
strong interest in), while also controlling the effects of
additional extraneous variables.
Introduction
Causal research
 Pre-test refers to the measurement of
the dependent variable taken prior to
changing the independent variable.
 Post-test refers to measuring the
dependent variable after changing the
independent variable.

Introduction
Causal research
 A control group is a group whose

subjects have not been exposed to the
change in the independent variable.
 An experimental group is a group that
has been exposed to a change in the
experimental variable.

Introduction
Qualitative or Quantitative methods?
 Qualitative: unfamiliar subject; search for meanings;

deep understanding of a phenomenon, a situation, an
event, a behaviour involving human beings
 Quantitative: familiar and clear subject; search for a

numeric description in terms of measurement;
comparative basis
 Qualitative is often used in exploratory research.

Introduction
Qualitative or Quantitative methods?

« Everything than can be counted does not necessarily count; everything that
counts cannot necessarily be counted. » Albert Einstein
Method Objectives Characteristics

Qualitative  Uncover and  Small number of cases
understand  Unstructured data
thoughts and collection
opinions  Data analysis through
interpretative tools
Quantitative  Measure and  Large number of cases

predict  Structured data
collection
 Data analysis through
statistical tools
Introduction
Types Objectives Examples of methods
Exploratory Obtain initial insights and Secondary data research

develop hypothesis (desk research)
Understand the nature of a In-depth interviewing
problem Focus groups
Observation
Descriptive Test specific hypothesis Surveys
Describe phenomena Observation
Estimate proportions Panels
Causal Discover the effect that a Experiments

variable (s) has on another (or Laboratory or field
others) research

RESEARCH DESIGN
What type of research design is used:

Exploratory, Descriptive, or Causal?
Qualitative or Quantitative?
Which method?
https://www.youtube.com/watch?v=Hatmm84sqm0
Introduction
Thought of the Day

Lecture 2 - Consumer Behaviour

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lecture 2 - Consumer Behaviour

Uploaded by

Copyright:

Available Formats

UNDERSTANDING

Dr. Stephan GERSCHEWSKI U3

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI

Case Study: New Coke

Coca Cola Dance Advertisement 1980s

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 3

Case Study: New Coke (cont’d)

1. The launch of New Coke turned out to be a nightmare for

2. Was it necessary to re-formulate New Coke?

3. Where did market research fail in this case? What would

4. Was New Coke a tactical manoeuvre or a mistake?

• Coca Cola - Dance Advert 1980s

• The 1985 launch of New Coke:

• Early 1980s, Coca-Cola loses market share to Pepsi

What went wrong?

Research was narrowly defined

U.S. reaction to old Coke’s return

Political Senator David Prior of Arkansas on the Senate Floor:

Case Study: New Coke (cont’d)

 To practice marketing, to implement the

 Many decisions require additional information

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 7

Case Study: New Coke (cont’d)

Coca-Cola embraces past failure with New

The product, which flopped in the ‘80s,

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 8

Case Study: New Coke (cont’d)

Coca Cola Christmas Advertisement 2020:

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 9

Definitions: Marketing Research

Marketing research is the process of

Burns, Veeck and Bush (2019)

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 10

Research revealed that Chinese shoppers

As a result, Lay’s introduced a ‘cool lemon’

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 11

Parlin: ’Father’ of Marketing Research

 Generate and evaluate potential marketing actions: New

 Monitor marketing performance: Customer satisfaction,

 Improving marketing as a process:

Marketing Research Process

Research design and strategy

Data analysis and interpretation

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 15

Marketing Research Process

Source: Burns, Veeck and

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 16

Marketing Research Process

 Is there a real need for marketing research?

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 17

Marketing Research Process

Marketing Research Process

Marketing Research Process

 Specify the information needed to solve

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 20

Marketing Research Process

The information provided by the marketing research will

Marketing Research Process

What should be the

What is the existing body of

Consumer Behaviour - U3 2020/2021 – Stephan GERSCHEWSKI 26

Marketing Research Process

 If the manager requesting your study is