Consumer Behavior Price Recall Hypothesis Testing

1. What's the Price? Sajjad Raza

2. Agenda!

3. Statistical Tools : SPSS v17 Hypothesis Testing Bivariate Correlation Matrix Distributions Analysis

4. Hypotheses Definition Gender Age Income Level Branded/Generic Intended Product Card/Cash Freq. of Rebuy Stress (Cognitive Load) Pick Sequence Visible Catchy Label Discount Offer Price Recall Error %

5. Hypotheses Definition Null Hypothesis: Ho = No significant relationship exists between the Price Recall Error % and Hypothesized Variable X Alternative Hypothesis: H1 = Statistically significant relationship exists between the Price Recall Error % and Hypothesized Variable X

6. Procedure Total Surveys = 45 (202 Records) Categories: Under Cognitive Load (Stress) No Stress Location: Migros (KocUni) Carrefour

7. Procedure – Without Stress

8. Procedure – Under Stress

9. Survey Distribution

10. Price Recall Error % Price Recall Error %: Overestimation - Underestimation + Absoluteof Price Recall Error %

11. Femalesare Smarter than Males!! Price Recall For Sure!!

14. Hypotheses Testing Under Stress Non-Occupied recall better than Pre-Occupied Pre-Occupied people underestimate Distraction: catchy screens, music, shop assistants

15. Hypotheses Testing Branded/Generic Better recall for branded products than generic? No!! Branded overestimate & Generic underestimate!

16. Hypotheses Testing – Intended Better recall for intend-to-buy products In both cases underestimation Encourage non-intended products purchases Tools: coupons, discounts, POP’s etc.

17. Hypotheses Testing – Freq of Rebuy Recall becomes better after more frequent purchases Underestimation; after 5 times overestimation Loyal customers: consistent pricing strategy

18. Hypotheses Testing – Cash/Card Recall is better when paid by credit card! Overestimation by credit card & underestimation by cash!

19. Hypotheses Testing Income Level Lower income people overestimate, higher underestimate People with income between 300 - 900 TL and then 4000-8000 TL recall better You can charge more to your higher income target

20. Survey Limitations Limitation < 30 Records

21. Thanks! Q&A