consumer behavior project (spring 2008)
DESCRIPTION
Consumer research project studying the effects of mood on purchasing behavior. Final group PowerPoint. Consumer Behavior at UC Berkeley, Spring 2008.TRANSCRIPT
Effect of Mood onConsumer Behavior
Agenda Question Design Analysis/Results Implications Limitations Q&A
1. Research Question2. Experimental Design/Hypothesis3. Statistical Analysis4. Marketing Implications5. Limitations6. Q&A
Agenda
Agenda Question Design Analysis/Results Implications Limitations Q&A
Research Question
How does a person’s mood affect their reaction to price discounts?
Will a person in a sad mood need a larger discount to purchase a product compared to a person in a happy mood?
Agenda Question Design Analysis/Results Implications Limitations Q&A
Hypothesis
People given the “happy” treatment are more likely to purchase the product with 10% discount than people given the “sad” treatment
People in a sad mood will require a greater discount to be persuaded to purchase the same discounted (10%) product.
People will choose phone with small discount (10%) over non-discounted phone
Overall people will choose heavily discounted (40%) more often
Agenda Question Design Analysis/Results Implications Limitations Q&A
Experimental Design
Agenda Question Design Analysis/Results Implications Limitations Q&A
Experimental Design
2 (mood, between) by 2 (discount %, between)
Agenda Question Design Analysis/Results Implications Limitations Q&A
Procedure
Agenda Question Design Analysis/Results Implications Limitations Q&A
15 surveys per treatment were administered
1. Mood manipulation2. Choice between
phones3. Rating mood4. Unrelated
questions
Experimental Design
Y11
Y21
Y22
Y12
X11
X11
X21
X22
X12
X12
X21
X22
Compa
rison
s
Agenda Question Design Analysis/Results Implications Limitations Q&A
Statistical Analysis
Agenda Question Design Analysis/Results Implications Limitations Q&A
Raw Data Direct Comparison
Statistical Analysis
Agenda Question Design Analysis/Results Implications Limitations Q&A
• In both “happy” groups, subjects more likely to choose A over B
• Z test not statistically significant
• Subjects in “happy” condition more likely to choose A
• Subjects in “sad” condition more likely to choose B
• Z test marginally significant
• z = -1.89434
Statistical Analysis
Agenda Question Design Analysis/Results Implications Limitations Q&A
• 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
Statistical Analysis
Happy 10% Happy 40% Sad 10% Sad 40%
Phone A 12 11 7 13
Phone B 3 4 8 2
Prop Choice 1 0.8 0.73 0.467 0.867
z-test results: pooled estimate pooled SE z
Happy_10 vs. Happy_40 0.766667 0.15444 -0.43167
Happy_10 vs. Sad_10 0.633333 0.175963 -1.89434
Sad_10 vs. Sad_40 0.666667 0.172133 2.32379
Happy_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
Marketing Implications
Conclusions:
• 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
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
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
Q & A
Agenda Question Design Analysis/Results Implications Limitations Q&A