Consumer decision making process
1. Need reconnection
1. Search
2. Evaluation
3. Purchase
4. Post-purchase
Ex Question: Jason is buying a car, considering Toyota/Honda what type of decision making
position is he in -> Step 3 (Evaluation)
External factors that influence consumer behavior
● Social Norms
● Time
● Purchase Reason
● Situational Factors
Personal Factors that Influence Consumer Behavior
● Gender, Age, Stage of life
● Lifestyle, Activities, Interests
● Mood
● Personality and self-concept
○ Big 5 Personality traits: Extraversion, openness,
Psychological Factors that influence Consumer Behavior
● Motivation
● Perception
● Learning
● Attitude
Societal Factors that Influence Consumer Behavior
● Culture
● Subculture
● Social Class
● Ref. Groups and Opinion leaders
● Family
Ex. Imagine you are purchasing a new laptop:
External: Price
Personal: Tech capabilities, School, Personality (Openness -> willing to try new products)
Psychological:
Societal: culture (cool to buy this product, MacBook), Family, Social class (high disposable
income)
EXAM Q: Alex bought a new laptop, he decided to buy a new mac book b/c his whole family has
one, which consumer behavior?
-> societal
● You want to conduct market research for a new fitness app. Describe the
process you would use?
○ Marketing Research
1. Define the problem (or opportunity)
2. Design the research
3. Design the data collection form
4. Specify the sample
5. Collect the data
6. Analyze the data
7. Write the research report and present its findings
Types of Data -> LOTS OF QUESTIONS ABOUT THIS
Primary Data: Collected by you/your company specifically
1. Qualitative Research (open ended question)
○ Depth interview, focus group, ethnography
2. Quantitative (Descriptive research)
○ Surveys
3. Casual Research (Cause and effect research)
○ Experiment, test market
Secondary Data:
○ Gov. Sources, academic articles, marketing intelligence, data collected by
someone in your company
Metric 3
Market share
● Percentage of a market accounted for by a specific entity
Types of market shares:
○ Unit market share: units sold by entity as a % of total market unit sales
○ Revenure market share...
Formulas:
● Unit market share % = Units sold by company a/ units sold by all companies x 100
● …
● …
¾ Firm concentration ratio: reveals the level of competition in the market
● How to calculate: Sum the market shares held by the leading three (four)
competitors in the market
Herfindahl index: Reveals the level of competition in the market
● How to calculate: sum the squares of the individual market...
Ex. Table 1: Canada Mobile Phones: Sales volume & Value 2004 – 2009
Q1. What is the annual 2009 rev of the top 4 mobile phone companies?
1. Samsung, L.G, Motorola, Kyocera
2. Rev all companies = $9.2 billion
Samsung = 24.4%
LG = 20.5%
Motorola = 15.4%
Kyocera = 10.9%
● Rev market share % = Rec of company A/Rev of all companies x 100
● Rev of company A = (Rec market share) x (Rev of all companies)
1. Samsung: Rev = 24.4 x 9.2 = 0.244 x 9.2 = 2.2448 Billion
2. LG: Rev = 20.5 x 9.2 = 0.205 x 9.2 = 1.886 billion
3. Motorola: rev = 15.4 x 9.2 ….
4. Kyocera: rev = 10.9 x 9.3 ….
Total Rev = 2.2448 + .... + …. + …. = 6.5504 Billion
-> The annual 2009...
Question 2.
In 2009, was the Canada...
Step 1: Identify your variables
● Samsung market share % 2009 = 24.4
● Lg MS = 20.5
● …
● …
● …
Step 2: Solve the three firm concentration ration
24.4 + 20.5 + 15.4 = 60.3%
-> 60% means it is a moderately CONCENTRATED market
Step 3: Solve the Herfindahl index
Sum([market share]^2) = Sum(o.244^2 + 0.205^2 + 0.109^2....) = 0.1441
Question 3.
Large retail chains form a leading distribution channel in the Canadian phone market,
accounting for 26% of the total value in 2009. In comparison, wireless service provided account
for 22%, independent retailers
Step1: Identify variables
● Rev all companies = 9.2
● Large retail chain MS = 26%
● Wireless Service = 22%
● Indept = 16%
● Other MS = 36%
Step 2:
Step 3:
Large retail chains: Rev = 26% x 9.2 = 0.26 x 9.2 = 2.392 billion
Wireless services: rev = 22 x 9.2 = 0.22 x 9.2 = 2.024 billion
Idep: rev = 16