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Consumer Behavior
Main textbook: Solomon Michael R.(2015), Consumer behavior: buying, having, and
being, Harlow : Pearson, 11th edition
Exam
Types of questions MCQ Open questions
Material to study
Velib business case + main ideas of the article on misbehavior by Fisk et al. (2010)
To bring on the day of the examination 2 pens(blue and/or black) Tipp-ex (roller
type)
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
INDEX
Exam ................................................................................................................................................ 1
Introduction to Consumer Behavior ............................................................................................ 3
Social marketing............................................................................................................................. 8
Key Success Factors in Social Marketing .................................................................................. 18
Understanding the consumer: Theoretical Models of Behavior Change ............................. 21
Politics and consumer behaviour .............................................................................................. 28
Exercise: Consumer Misbehaviour at VELIB ............................................................................. 30
Guest speaker: Haystack - finding needles .............................................................................. 32
Guest speaker : Anas Grtry Thats embarrassing: Effects of Brand
Anthropomorphism on Consumer Disclosure ........................................................................... 46
Guest speaker: Customer retention .......................................................................................... 58
Guest speaker : David Hachez - Emolytics .............................................................................. 64
Guest speaker: Simon Haze Contamination in ABS ........................................................... 73
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Subjects:
- Binge drinking
- Menu optimization
- Wear a tie
Not
- Why in certain countries you have special indication important
-
- Tupperware
- Loral : why beautiful women and very specific/technical names
- Anthropomorphism (giving human-like characteristics to an object)
- Better understand why beautiful women next to beautiful cars
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What is a Nudge ?
A subtle change in the person environment that results in a change of behavior.
(Solomon, 2015)
Examples of Nudges :
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Cornelissen, G., Pandelaere, M., Warlop, L., & Dewitte, S. (2008). Positive cueing:
Promotingsustainable consumer behaviorby cueing commonenvironmental behaviorsas
environmental. International Journal of Researchin Marketing,25(1), 4655.
Giebelhausen, M., Chun, H. H., Cronin Jr, J. J., & Hult, G. T. M. (2016). Adjusting the
Warm-Glow Thermostat: How Incentivizing Participation in Voluntary Green Programs
Moderates Their Impact on Service Satisfaction. Journal of Marketing, 80, 56-71,
Goldstein, N. J., Cialdini, R. B., & Griskevicius, V. (2008). A room with a viewpoint: Using
social norms to motivate environmental conservation in hotels.Journal of Consumer
Research,35(3), 472-482.
Oceja, L., & Berenguer, J. (2009). Putting text in context: The conflict between
proecological messages and anti-ecological descriptive norms.The Spanish Journal of
Psychology,12(02), 657-666.
Schultz, W. P., Khazian, A. M., & Zaleski, A. C. (2008). Using normative social influence to
promote conservation among hotel guests. Social Influence,3(1), 4-23.
Schultz, P. W., Nolan, J. M., Cialdini, R. B., Goldstein, N. J., & Griskevicius, V. (2007). The
constructive, destructive, and reconstructive power of social norms.Psychological
Science,18(5), 429-434.
Behavior change
Using a social norm is showing that many others or similar others, ... are doing the same as
you (should do)
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Towel example
Goldstein et al. (2008)
Experimentation 1: INDUSTRY STANDARD VERSUS SOCIAL NORMS
Participants: 1,058 instances of potentialtowel reusein 190 rooms
Materials: Two different messages:
1. Industry standard: HELP SAVE THE ENVIRONMENT. You can show
your respect for nature and help save the environment by reusing your
towels during your stay
2. Social norm: JOIN YOUR FELLOW GUESTS IN HELPING TO SAVE THE
ENVIRONMENT. Almost 75% of guests who are asked to participate in our
new resource savings program do help by using their towels more than
once. You can join your fellow guests in this program to help save the
environment by reusing your towels during your stay.
Each of the 190 hotel rooms was randomlyassigned to one of the two
different messages.
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Social marketing
Definition
Social marketing is the use of marketing principles and techniques to influence a target
audience to voluntarily accept, reject, modify, or abandon a behavior for the benefit of
individual, groups, or society as a whole (Kotler et al. 2002, p.5)
And NOT
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For instance, why in some cases are we too lazy to go to the gym?
Energy cost
Time cost
Postposed results
Organisational costs (babysitting, )
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One could also try to classify the perceived costs the following way:
Psychological costs
Fear of finding cancer
Recognize that you get older
Wait costs
Having to wait for an appointment, tests, results
Physiological costs
Cold metal surfaces
Painful pressure
Monetary costs
Fees
Paying for child care
Transportation + parking
Energy and time costs
No time available
Arranging child care
Going to the hospital
Take a day off at work (+/- embarrassing explanation --> psychological costs)
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But also:
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Give up an addictive behavior (smoke, drink alcohol, eat fat, watch TV all
evening)
Change a comfortable lifestyle, reduce pleasure (leave the car, take shorter
showers, wash with energy/effort )
Resist peer pressure (not start smoking, use condoms, propose tap water, not drive
when drunk, no binge drinking)
Be uncomfortable, embarrassed (mammography, colorectal exam, scoop the
poop, protect skin with sun cream )
Establish new habits (eat 5 vegetables & fruits, exercise 30 minutes per day, sort
trash) Spend more money (buy green products/services, install solar panels)
Give up leisure time (volunteer, create a garden,)
Spend more time (take the train/bus instead of the car)
Give up looking good (do not wash car so often, let the grass becomes brown
during the summer time, do not use cleaning products such as bleach, buy
second-hand clothes, buy recycled paper, protect skin with sun cream)
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Incentives (Bonus)
Subsidies for low-emissions vehicles, solar panels
Legal/Political/Policy Making
Ex: 0.08% blood alcohol when driving, no smoke inside public buildings, special
baby seats for cars,
It is crucial for Social Marketing to identify those other tools to check how they are
complementary!
Examples
How can we know whether ads about a specific social cause in buses are a good
idea if we dont know who the target is and if this target takes the bus on a
regular basis?
How can we know how to position our desired behavior (e.g., drink tap water) if
we dont know what our audience perceives as the benefit and costs of the
current behavior (e.g., drink bottled water) compared to the behaviour we are
promoting?
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Boomerang effect
= a situation in which something has the opposite effect from the one you intended
(Macmillan)
So, in the case of tap water versus bottled water, one can ask ourselves:
HOWEVER
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Why a sustainable choice (such as tap water) is apparently losing market shares
compared to a NON sustainable choice (such as bottled water) in an increasingly
environment-conscious society willing to change behaviors? (SPF Economie)
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Service Quality
Price Cost
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o The study tries to scare me, the sample was not big enough, it was on
another continent this is bullshit : the people try to rationalize, smoking
a few cigarette a day is not a big deal
In summary
Not simple to promote sustainable (social) choices!
#2: Take advantage of what is known and has been done before
#3: Start with targets that are (most) ready for action
#4: Consider incorporating and promoting a tangible object or service to support the
target behaviour
#8: Use appropriate media and watch for exploit opportunities for audience
participation
#9: Provide response mechanisms that make it easy and convenient for audiences to
act on recommended behaviour
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You have to manage to express the behaviour in an easy understandable way, for
instance by using the S.U.C.C.E.S method (from the book Made to Stick why some
ideas survive and others die)
S.U.C.C.E.S:
- Simple
o Not so easy to be simple (eg. Singer)
o Example: repositioning of Philips
- Unexpected
o Try to catch up the intention by creating surprises
o Who is the most dangerous? Bambi or a shark?
- Concrete
o Try to give/show the nudge, dont talk about the experience but show it, so
its easy to understand what was done
o Example: The Nature Conservancy
We have saved and protect 1million hectare (abstract)
Versus
We have to save and protect Hautes-Fagnest (concrete)
o Experiment:
Find 10 white things
Versus
Find 10 white things in the fridge
- Credible
o External credibility
Experts (You need to demonstrate that you made an experiment in
a scientific way)
Stars
Real individuals having the problem (testimonials)
o Internal credibility
Facts & figures
- Emotional
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Implication/In
Adhesion Will to act
volvement
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Different models
Health belief Model
Social learning theory
Theory of reasoned action
Theory of trying
Cognitive dissonance
Theory of interpersonal behaviour
Behavior modification
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HBM is very useful to understand social issues (even the ones non-related to health issues)
Why do old people do not install smoke alarms- considering that costs are low
and the potential benefits are very high?
Researchers used HBM as a guide to:
1. Discover whether old people perceived themselves to be susceptible to fire
2. Learn what the perceived severity/seriousness of a fire would be for this group
Researchers found that
o Old people did NOT think they were susceptible to fire
o Old people considered consequences to be severe/serious
Considering the results need for improving perceptions of personal
susceptibility
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Obstacles
External obstacles
o Effective impossibility
No public transportation available
No garden available no compost,
o Possibility BUT prohibitive global cost compared to a classic alternative (NB:
costs: time, energy, effort, money, )
Owned car versus public transport
Personal factors
o Lack of resources
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Money
Time, space, competencies, knowledge
o Personality factors/psychological factors
Cognitive dissonance
People who restore cognitive consonance by rejecting the
truth
Locus of control (=Locus of control refers to the extent to which
people feel that they have control over the events that influence
their lives - A locus of control orientation is a belief about whether
the outcomes of our actions are contingent on what we do
(internal control orientation) or on events outside our personal
control (external control orientation))
Internal (=If you believe that you have control over what
happens, then you have what psychologists refer to as an
internal locus of control.) attribute the mistake to yourself
External (=If you believe that you have no control over what
happens and that external variables are to blame, then you
have what is known as an external locus of control.)
attribute to context or others the reasons of failure
Perceived behavioural control
o Lack of motivation
Value system of an individual
Egocentric
Pro-social
Biospheric
Role of consumption
o Consumption is
Functional
Hedonic
Symbolic
o Consumption contributes to
People identity (eg. Apple)
To be recognized as part of a group (eg. Harley Davidson)
Be different from others (eg. Customization)
I buy, I own, I consume, so I am
Social influence
o Importance of being part of a group and to seduce that group
Habits and past behaviors
o Many behaviors are not questioned anymore as they are routine behaviors
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2) Change Models
Introduction
Those models have an interest in change in people beliefs, attitudes and acts over time
Different models
Transtheoretical stages of change
Stages of change for public opinion
Diffusion theory
1- Precontemplation
2- Contemplation
3- Preparation
4- Action
5- Maintenance
6- Termination
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In a double bind, whatever the option, you will lose because the person puts you in a
(stupid) situation
Heuristics
=Mental operations that are employed in judgment under uncertainty to facilitate the
evaluation process.
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With heuristics, we will be quite sure that the packaging on the right will be about 10%-
30% cheaper than the packaging on the left side. Why do we believe this?
Donald Trump however, captured the emotions, which could be defined as follows
- Frustrations
- Rage
HC: Targeted the DT: Targeted the
- Anger / haine
reason considered emotion
- Revenge
citizens as rational considered citizens
- Humour
as irrational
- Provocation
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This poster prohibits the wrong behaviour instead of promoting the right behaviour
Red frame: Create a community us, we, our is best than yours
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Green frame: You should not talk about this high social norm (means that destroying and
stealing is normal). It means also that there is no penalty for those who break. You should
rather highlight the successes, the positive figures.
Val Benot
Once you have one broken window, if you dont repair it, it will legitimize the fact that
you can break the others, and it will generate a domino effect of vandalism.
If you want to slow down the effect of vandalism, you have to tackle the issue of repair
Infrabel example
On the 2nd August 2016, the railway managing operator (INFRABEL) decided to not
communicate statistics of suicides of individuals on railways, this in order to prevent other
suicides. They found out previous to this that by giving the figures about suicide it was
increasing the attempts of suicide on the railway.
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This is why you need to do market research and care about it, in order to be as
sure as possible to launch a good product
In market research
o Things you can ask
o Things you can measure
Perception is reality
During this fake experiment, the interviewer was putting the smartphone of the
respondents into a new hull, but assuring that it was the brand new iPhone. And it
worked, as people were convinced that their phone was lighter, or that it worked faster
or that the colours were brighter.
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Weird translation can also have impact on the perception of the shopping experience.
The first idea of the book is that most of the decisions are done through an
emotional channel, rather unconsciously.
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The second aspect shows how the decisions are made whether they come from
the rational or emotional system.
How brands grow , Byron Sharp
Consumer persona : you develop the perfect consumer (takes a lot of time and energy)
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Sample description
Expert panels N = 3
QUALI N = 3 focus group of 8 in each country
QUANTI N=150 in each country (UK & US China)
o Two separate sessions (2 x 8 samples) in order to avoid taste saturation
Chocolate lovers (min 1x/week) Non-rejecters of milk, dark or white chocolate
o Different life stages
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Outcome
Recharging
having chocolate because you need a boost
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Conclusion
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Outcome
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b. Research set up
i. 80 Neuro tests
1. 8 different types of print advertisements (rotated)
ii. 20 qual interviews
1. Male moderator for the male respondents/ female
moderator for the female respondents
c. The main tested ads
d. Comparison
Men Women
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When consumer disclose personal informaion they tend to have higher purchase
behaviour, and have better relationships with the brands
2 Disclosure : divulgation
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Anthropomorphized brands = social actors having their own humanlike mind and
mental capabilities
o Capable of forming impressions and evaluating others
The concern of being judged (embarrassment) is a major barrier to self-disclosure
!! Intimate information !!
With Anthropomorphism you will see the brand as capable of judging you
Hypothesis
Hypothesis 1 (H1)
H1: Brand anthropomorphism negatively influences consumers disclosure of intimate
information
Indirect Questioning
= a projective technique that asks respondents to answer questions from the perspective
of another person
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Results
As we can see, with anthropomorphized brands, the respondent tend to respond less to
the intimate questions.
Study 2
Here we are testing the interaction effect of brand anthropomorphism and questioning
method on consumer intimate self-disclosure (testing hypothesis 2).
MTurk, N=159 (US residents, females=63, males =94, unspecified =2; M Age=33 years)
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Results
Study 3
Here we are testing whether embarrassment mediates the interaction effect of brand
anthropomorphism and questioning method (direct vs indirect) on consumer intimate
self-disclosure (testing hypothesis 3).
Cover story: Survey about romantic relationship for a new advertising campaign
(clothing brand)
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Results
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Intimacy coding
- Two independent judges (5-point scale, interrater reliability= .97)
Self-disclosure
Intimacy of disclosure
DV : Intimate Disclosure
Most common way to measure self-disclosure: quantity of information disclosed
The more words someone uses to communicate, the more effort he or she is
investing in being understood, indicating higher motivation to open the self to the
other
Total number of words in a given participants responses to the brand questions
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New Study 2
Replicating negative effect of anthropomorphism on intimate self-disclosure (H1)
in another context)
Showing that embarrassment mediates this effect
Including post-measures about the consumer-brand relationship
MTurk, N= 184 (US residents; women only; Mage =33years)
Design
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Results
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Conclusion
Brand anthropomorphism negatively influences consumers self-disclosure for
intimate topics
The negative effect of brand anthropomorphism on consumer self-disclosure
o Can be mitigated by indirect questioning (typical other)
o Is mediated by embarrassment
o No differences when the brand is not anthropomorphized
Theoretical contributions
Extend the recent line of research that shows adverse effect of brand
anthropomorphization in diverse domains, such as product wrongdoings, price
fairness, and risk perception
Prior studies focused on consumers assessment of a brand (eg brand attitudes) or
brands actions (eg. Price fairness)
o Contrasting perspective: How brand anthropomorphism affects the extent
to which consumers perceive a brand as evaluating them
Mechanism underlying the negative effect of brand anthropomorphism on
disclosure of intimate information
o Brand anthropomorphism decreases disclosure because of a higher level
of embarrassment
Managerial implications
It is not uncommon for brands to ask consumers to engage in intimate self-disclosure.
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Internal External
Pushy sales Competition called me
Product/service not up to expectations Better offer of competition
After sales did not solve my problem Better quality
Wrong billing Smaller price
Wrong info Bad experience
No more contract
Recommendations from friends
Image
An existing customer, you could increase his value by a special action, but you might not
see the results immediately.
Make sure that your customer is at the center of everything you do.
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Renewal you arrive at the end of a contract and you are contacted to sign a new
one,
Or
Renewal you are not satisfied with the product you have and you are contacted to
see if you may change it for a more suitable one
= Churn rate when applied to a customer base, refers to the proportion of contractual
customers or subscribers who leave a supplier during a given period. It is a possible
indicator of customer dissatisfaction, cheaper and/or better offers from the competition,
more successful sales and/or marketing by the competition, or reasons having to do with
the customer life cycle.
#
=
#
20000
= 20%
100000
This also mean that the lifetime of your customer is 5 years.
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If you managed to decrease the people who are leaving your company, you may save
money.
Your new customer stays less than the average of the customer base, meaning
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NPS
Loyalty
Its easy, but its
Behavior a matter of
interpretation
inside the
Behavioral company to
evaluate what
Intention you think about
it
Attitudes towards the
Brand
Brand Awareness
The commission is (usually) 4times higher for a new customer than for an old customer
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orange decided to
launch a campaign that thanks the faithful customer (building relationship) rather than
being guided by attracting new customer.
Marketeer role is to be the link between the customer needs and the company as an
organisation
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If your alarm clock doesnt ring, chances are high that the rest of your day will be bad.
The reasons for not ringing are various, but may all results of bad product design
Thats why a bad morning experience results in a bad user experience which
encompasses all aspects of the end-users interaction with the company, its services and
products
Another definition of user experience is a persons perceptions and responses that result
from the use or anticipated use of a product, system or service () user experience
includes all the users emotions, beliefs, preferences, perceptions, physical and
psychological responses, behaviors and accomplishments that occur before, during and
after use.
Product
Technology --> features
Experience
"I couldn't live without it"
For instance, Americans tend to prefer to sell you an experience, a story rather than to
focus on the product.
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Experience = Value
User experience is a continuous process, for instance, how we treat customers before
and after they by the products
A point of friction problem is something that customers feel during the purchase
experience.
KPIs are metric system, there is a need to think about it, and there is an issue to take care
of cultural differences.
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Delivery gaps
The question asked to the customer will be: To what extend are you likely to recommend
our brand to your friends/family?
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Here we really have to take into consideration the limits of the metric system, as in several
countries, a 7 wont mean the same thing and be evaluated the same way.
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Websites (tracking)
Training events
In store
On product
Mailing
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Emotions however,
are spontaneous, and are measured on 2 criteria:
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Pop-up on website
o How do you feel about this website? easy to express, followed by
other questions like
o Why do you feel so?
Webiste feels that Im irritated (by seeing where your mouse is moving)
adaptation of interface of website
Website adaptation to emotional state of consumer
Companys Challenge
Question: How to capture qualitative customer feedback in quantity rapidly in a world
suffering from attention deficit disorder?
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Customers Expectations
Answer: Make it easy for your customers to participate in simple, engaging surveys that
deliver insights in multiple contexts.
Business Performance
Results: Continuously monitor a scientifically validates KPI correlated to loyalty, purchase
intent and recommendation with automated market research
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The importance of physical products lies not so much in owning them as in obtaining
the services they render (Kotlet,1977)
As a whole, the sharing economys worth is estimated at more than US$100billion and is
expected to rise rapidly as consumers and firms seek to maximize efficiency in volatile
economic conditions (Sacks, 2011)
Sharing economy has become a topic in everybodys mouth, from common press,
professional press to more scientific ones.
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Definition
= market-mediated transactions that provide customers temporally limited access to
goods in return for an access fee, while the legal ownership remains with the service
provider
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Positive statements
Negative statements
not able to produce a sufficient level of demand - Positive attitude about it but still
reluctant to use it
But those services can also meet resistance. As a manager you should remember that
customer are first
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Communication Channels
In fact, the reasons to be for something differ from the reasons against. Its not just
the exact opposite.
This is why it is important to look at the reasons that make us decide against ABS, in
order to implement a strategy which will overcome the barriers against rather than
promoting the reasons for.
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This graph gives the different reasons that can lead to the rejection towards ABS. One of
these reasons is contamination. It is the aspect on which we will focus for the rest of the
presentation.
Contamination
= refers to all the actual physical contacts or imagined physical contacts that a person
may imagine when thinking about ABS
Contamination :
- Just knowing that someone else used to can raise contamination barrier
- Not only about dirtiness
Examples of bad experiences in ABS, linked to contamination (here dirtiness) with the
provider Zipcar:
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The first story is about a person who rented the same car for the 3rd time and who
observed the same dirty blotches on the back seat as well as general dirtiness (sand
everywhere). Even though the person reported it, nothing was undertaken to tackle the
issue, leading to them switching to another operator.
The second story is about a mom who found a condom whipper in one of the backseats
while driving with her 5-years old child.
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
Prior research
Law of contagion = when a source and a target come into direct or indirect
contact, the source transfers some or all of its properties to the target.
Negative and positive customer responses to touched objects impact
evaluation of to-be-owned products
Contamination is weak in contexts where contacts are expected
Source Target
The source is the customer and the target the needed object
Ones they come into contact there is a transfer between the two (transfer of
essence or germs)
Prior research suggest that contamination may be weaker where contacts
between source and target is expected.
o Counterfactual3 aspect
Studies: An overview
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Consumer Behavior 2016-2017 (M2)
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
Results
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
Neuroti
cism
Conscie
Openne
ntiousn
ss
ess
Big five
taxonomy
Extraver Agreeab
sion leness
Hypothesis: Customers personal characteristics (Big Five Taxonomy and Gender) are
related to contamination concerns about ABS
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
Car-sharing why?
Contamination concerns are the lowest with car (study 1)
If we find results in the lowest example it may be significant for all
the other access based services
Results
o Multiple regression analysis: which dependant variable explains the
independent variable
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
Agreeableness is associated
If you look at the Beta youll see if there is a positive or negative
relationship between the dependant and independent variables
Study 3a
Survey in the car-sharing context, MTurk American adults sample (n =
123; 38.2% females; Minage= 18, Maxage= 65, Meanage = 32)
Measures:
o Intention to use the service ( = .87)
o Attitude towards the service ( = .96)
o Concerns about product contamination ( = .95)
o Gender
Results of multiple regression analysis
o Attitudes ( = -.381, p < .001)
o Usage intention ( = -.307, p = .001)
Limitations?
Study 3b
Two-group between subjects experiment (goal prime: disease
avoidance vs. neutral) in the car-sharing context
Priming method: scrambling task
Sample: MTurk American adults sample (n = 112; 47% females;
Meanage = 35)
Measures
o Intention to use the service ( = .86)
o Attitude towards the service ( = .97)
o Gender
Results
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
Note: To test for causal relationship you use experimentation and not survey
Because car-sharing and car-ownership are closed in the way to use it, you will make a
comparison
You may believe that you are more resistant to your germs and those of your family and
friends, rather than an unknown person.
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
Results
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DELHAYE Marie (s154262)
Consumer Behavior 2016-2017 (M2)
General discussion
Managerial implications
Understanding customers perceived barriers is crucial for service providers
Limitations
Differences across product categories?
Differences across (and beyond) access contexts?
o Contamination effects more/less salient in P2P vs B2C?
Role of cultural orientation, education, and socioeconomic status?
o Cultural factor depending on your cultural beliefs you may feel different
about contamination
How to reduce contamination concerns?
o Perceived similarity between customers?
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