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Consumer Behavior Project (Spring 2008)

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Consumer research project studying the effects of mood on purchasing behavior. Final group PowerPoint. Consumer Behavior at UC Berkeley, Spring 2008.

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Consumer Behavior Project (Spring 2008)

  1. 1. Effect of Mood onConsumer Behavior Agenda Question Design Analysis/Results Implications Limitations Q&A
  2. 2. Agenda1. Research Question2. Experimental Design/Hypothesis3. Statistical Analysis4. Marketing Implications5. Limitations6. Q&A Agenda Question Design Analysis/Results Implications Limitations Q&A
  3. 3. Research QuestionHow does a person’s mood affect their reaction toprice discounts?Will a person in a sad mood need a larger discountto purchase a product compared to a person in ahappy mood? Agenda Question Design Analysis/Results Implications Limitations Q&A
  4. 4. HypothesisPeople given the “happy” treatment are more likely to purchase theproduct with 10% discount than people given the “sad” treatmentPeople in a sad mood will require a greater discount to bepersuaded to purchase the same discounted (10%) product.People will choose phone with small discount (10%) over non-discounted phoneOverall people will choose heavily discounted (40%) more often Agenda Question Design Analysis/Results Implications Limitations Q&A
  5. 5. Experimental Design Between Subjects Design Two Independent Dependant Sample Size: n=15 Variables Variable (per Treatment) Phone A vs.Mood: Discount: Phone BHappy vs. Sad 10% vs. 40% Agenda Question Design Analysis/Results Implications Limitations Q&A
  6. 6. Experimental Design2 (mood, between) by 2 (discount %, between) Discount Percent Phone Preference 10% 40% Mood Happy Y11 Y12 Sad Y21 Y22 Agenda Question Design Analysis/Results Implications Limitations Q&A
  7. 7. Procedure15 surveys per treatment were administered1. Mood manipulation2. Choice between phones3. Rating mood4. Unrelated questions Agenda Question Design Analysis/Results Implications Limitations Q&A
  8. 8. Experimental Design X11 Y11 X21 X11Comparisons Y12 X22 X12 Y21 X21 X12 Y22 X22 Agenda Question Design Analysis/Results Implications Limitations Q&A
  9. 9. Statistical Analysis Raw Data Direct Comparison1=Phone A, 2=Phone BHappy – 10% Happy – 40% Sad – 10% Sad – 40% 1 1 1 1 1 1 2 1 1 1 2 2 1 1 1 1 2 2 1 1 1 1 1 1 1 1 2 1 2 1 2 1 1 1 2 1 1 1 2 1 1 1 2 1 1 2 1 1 1 1 2 2 2 2 1 1 1 2 1 1 Agenda Question Design Analysis/Results Implications Limitations Q&A
  10. 10. Statistical Analysis • In both “happy” groups, subjects more likely to choose A over B • Z test not statistically significant• Subjects in “happy” conditionmore likely to choose A• Subjects in “sad” condition morelikely to choose B• Z test marginally significant• z = -1.89434 Agenda Question Design Analysis/Results Implications Limitations Q&A
  11. 11. Statistical Analysis • When given the choice of 40% discount, subjects chose A • Z test significant; z = 2.32379 • Subjects in “sad” treatment equally likely to choose A when given 40%• Subjects overwhelmingly chose A• Z test not statistically significant• 40% dominated consumer choice,regardless of mood Agenda Question Design Analysis/Results Implications Limitations Q&A
  12. 12. Statistical Analysis Happy 10% Happy 40% Sad 10% Sad 40%Phone A 12 11 7 13Phone B 3 4 8 2Prop Choice 1 0.8 0.73 0.467 0.867z-test results: pooled estimate pooled SE zHappy_10 vs. Happy_40 0.766667 0.15444 -0.43167Happy_10 vs. Sad_10 0.633333 0.175963 -1.89434Sad_10 vs. Sad_40 0.666667 0.172133 2.32379Happy_40 vs. Sad_40 0.8 0.146059 0.912871 SIGNIFICANCE if then if then sig marginally sig.two-tail test z >+-1.96 p < .05 z >+-1.64 p < .10 Agenda Question Design Analysis/Results Implications Limitations Q&A
  13. 13. Marketing ImplicationsConclusions:• People in a happier mood will be content with a smaller discount• People in a sad mood will require larger discount• Emotions and mood have significant impact on consumer choice Agenda Question Design Analysis/Results Implications Limitations Q&A
  14. 14. Marketing ImplicationsApplications:• Retail stores – Color schemes – Customer Service – Upbeat music• Television ads• Create maintain a lasting connection between customer and product• Less discounting = higher profit margins Agenda Question Design Analysis/Results Implications Limitations Q&A
  15. 15. Limitations• Sample size too small• Limited pool of subjects• Mood manipulation not always effective• Writing may affect emotion and not mood• Direct mood manipulation may not have external validity• Differences in image on survey – prior experience with phone• Process of choosing a phone (or product) is greatly simplified Agenda Question Design Analysis/Results Implications Limitations Q&A
  16. 16. Q&AAgenda Question Design Analysis/Results Implications Limitations Q&A

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