Customer Analysis I - MIT OpenCourseWare

[Pages:27]Customer Analysis I

Session 3 Marketing Management

Prof. Natalie Mizik

Outline

How do you think about customers? How do customers think?

Overview of approaches. Focus on behavioral economics.

Useful in understanding many marketing phenomena.

Alternative to `rational' and `motivational' approaches.

2 Prof. Natalie Mizik ? 2010 MIT 15.810

The Consumer Quiz

Asked you to estimate common marketing statistics

Measured your confidence in these estimates

Results?

3 Prof. Natalie Mizik ? 2010 MIT 15.810

Key Learning

You are not alone: Executives, MBA students in other schools make similar errors.

Why do people make these "mistakes"? False consensus: believe that the others

are more like yourself than they really are

Overconfidence: people believe that they

are right more often than they really are

4 Prof. Natalie Mizik ? 2010 MIT 15.810

How do you prevent this?

7 Prof. Natalie Mizik ? 2010 MIT 15.810

Implications for Marketing:

You are a member of (at most) one segment

Possible Solution:

Customers must

provide the data, do not rely just on your intuitions Globally, mktg research is essential

Overconfidence keeps

you from seeing this

Possible Solution: Diverse teams and involving customer inputs at every stage

8 Prof. Natalie Mizik ? 2010 MIT 15.810

How Customers Think

A continuum of views:

Rational Approaches

Standard Economic Theory

Bounded Rationality

Behavioral Economics and Behavioral Decision Theory

Prof. Natalie Mizik ? 2010 MIT 15.810

Motivational Approaches

Freudian and Anthropological Approaches

9

The Standard Economic

Theory

Utility

Customers assess options relative to their net worth

q1

Pick the best option

to maximize utility

q*1

subject to budget

constraint

q*2

Prof. Natalie Mizik ? 2010 MIT 15.810

Wealth

q2

10

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download