Session 3: Why Study CB

Question 1

What are the three stages of consumer journey?

Answer 1

1. Pre-consumption
2. Acquisition & Consumption
3. Post-consumption

Question 2

Acquisition

Answer 2

1. When to buy
2. For whom to buy
3. How to pay

Question 3

Consumption

Answer 3

1. How you use the product
2. How much you consume
3. When you use the product

Question 4

Which of the four stages would best represent companies’ most recent shift of focus to gain deeper consumer insights for new ideas?

Answer 4

Pre-consumption stage

Question 5

Which of the following statements is incorrect?

A. Consumers tend to use up high-convenience products (e.g., juice, granola bar) quicker when there is more stock.
B. Consumers tend to seek more variety when they buy things for immediate use (vs. buy things for multiple future usages).
C. Consumers do not always consume the best option first.
D. All are correct!

Answer 5

D

Question 6

Ariely’s book relies mainly on the insights from which discipline?
A. Economics
B. Psychology
C. Behavioral Economics
D. Statistics

Answer 6

C

Question 7

When Williams-Sonoma first introduced a home bread bakery machine (for $275) (the only available option), it wasn’t selling well because it was too cheap for its target consumers.
A. True.
B. False

Answer 7

A

Question 8

Why don’t we just ask people?

Answer 8

1. Don’t really know what is possible
2. Don’t always know/realize their needs
3. Don’t ant to tell you what they do.
4. Don’t know why they do what they do
5. Sometimes asking them changes their behavior

Question 9

Social Desirability Bias

Answer 9

1. Over-claiming positive behaviors:
   - Do you have a library card for XX public library?
   10-20% more people say yes than have a card
   
   • How long do you brush your teeth?
2. Under-claiming negative behaviors:
   50% of a sample of known drunk driver offenders denied being charged with this

Question 10

How Do You Get To Know Consumers?

Answer 10

1. Exploratory Research
2. Descriptive Research
3. Causal Research

Question 11

Exploratory Research

Answer 11

Gathers preliminary information that will help define the problem and suggest hypotheses.

Observational research, focus groups, in-depth interviews, etc.

Question 12

What are examples of Exploratory Research?

Answer 12

Observational research, focus groups, in-depth interviews, etc.

Question 13

Descriptive Research

Answer 13

Describes such things as the
consumers’ demographics,
attitudes, and behaviors.

Question 14

What are examples of Descriptive Research?

Answer 14

Surveys, scanner data

Question 15

Causal Research

Answer 15

Test hypotheses about cause-

and-effect relationships.

Question 16

What are examples of Causal Research?

Answer 16

Simulated test

markets

Question 17

Neuromarketing

Answer 17

Understanding consumer behavior by looking at brain wave activity using fMRI or brain signals using EEG tests

Question 18

Which of the four stages would best represent companies’ most recent shift of focus to gain deeper consumer insights for new ideas?
A. Pre-consumption stage
B. Acquisition/purchase stage
C. Consumption stage
D. Post-consumption stage

Answer 18

C