Consumer Behavior MKTG 3113 Summer 2016

The class has a website where everything is kept: www.business.uni.edu/clayson/cb

Some Issues:

Most of you are interested in grades… Some Issues: Grades Most of you are interested in grades… generally, I’m not!

Grades may or may not measure what a student knows!

Grades may not measure what a student actually knows, and even less of what a student understands! In this class, we are interested in what you understand. We have almost no interest in your ability to memorize.

The research has shown that: 1. Students who miss classes get lower grades.

The research has shown that: 2. Students who text in class get lower grades.

The research has shown that: 3. Students who take notes on laptops get lower grades.

It is possible to get an F even if you complete every assignment, and test.

Some students seem very surprised by this, but statistics show that about 1 in 6 people in this class will get an F.

CB is a lecture class…

It is important to keep up, CB is essentially 6 theories per day!

And the ideas build on each other and on previous ideas.

So, we are not going to hold hands and sit on the lawn.

Or get in touch with our inner beauty.

It is important, however, to ask questions and make comments in class. If you don’t know something… ask. Don’t assume that you will just memorize it later.

Welcome to So… let’s start!

Some background information

The study of consumer behavior is really interesting!

For example, when you finish, you should be able to de-construct an ad.

Logic and Research

Logic and Research In consumer behavior we will be discussing some issues which are very sensitive to some people, but businesses must know what is actually there to be successful.

And this makes some people very nervous… We will be talking about differences in: Gender Race Appearance Social Class Intelligence Yes… there really are differences on these factors, and the differences are important! And this makes some people very nervous…

For you, many of these ideas will be neutral… but some of them will be opposed to what you believe or what people want you to believe.

Because a teacher talks about race, does NOT make the teacher a racist. Because an instructor talks about gender, does NOT make the instructor a sexist. Because a teacher talks about a theory, does NOT mean that the teacher believes the theory.

“An educated person can hold two contradictive ideas in their mind at the same time and not necessarily believe either one.” “If you allow people to think that they are thinking, they will love you.” “If you actually make them think, they will hate you.”

So it becomes important to know the differences between:

So it becomes important to know the differences between: Opinions

So it becomes important to know the differences between: Opinions Hypotheses

Opinions Hypotheses Statistics So it becomes important to know the differences between: Opinions Hypotheses Statistics

Opinions Hypotheses Statistics Research findings So it becomes important to know the differences between: Opinions Hypotheses Statistics Research findings

Opinions Hypotheses Statistics Research findings Facts So it becomes important to know the differences between: Opinions Hypotheses Statistics Research findings Facts

Logic and Research Opinion = Belief, or = Guess

Logic and Research Are all opinions equal? Opinion = Belief, or = Guess Are all opinions equal?

Yes! In that everyone can have them.

No! In that every opinion has to be based on something.

Opinions about my car needing repair are not equal.

Some person’s opinion about the stock market are more valuable than others!!

Logic and Research Opinion = Belief = Guess Hypothesis = Opinion that can be tested

Logic and Research Opinion = Belief = Guess Hypothesis = Opinion that can be tested Statistic = Characteristic of a sample

Statistic: Education majors have the lowest average standardized scores (ACT, Iowa Basic, etc.) of any majors on campus.

What is wrong with this logic? Statistic: Education majors have the lowest average standardized scores (ACT, Iowa Basic, etc.) of any majors on campus. An education major says, “That can’t be true. Both my friend and I had the highest ACT scores in my high school and we are both education majors. I am highly offended by your slur.” What is wrong with this logic?

a group. A statistic is a characteristic of It tells you nothing about an individual except for a probability.

On average, men are about a half foot taller than women.

If Pat was 5’5, would you bet that Pat was woman or a man? If Pat was 5’10, would you bet that Pat was man or a woman?

This would be a good bet even if many men are not tall.

Logic and Research Opinion = Belief = Guess Hypothesis = Opinion that can be tested Statistic = Characteristic of a sample Research findings = Results of controlled research procedures

Logic and Research Opinion = Belief = Guess Hypothesis = Opinion that can be tested Statistic = Characteristic of a sample Research findings = Results of controlled research procedures Fact = Reality

Poverty rate of children:

Having a child without a husband is a one-way ticket to poverty! What is this statement? Is it hate speech? Is it an opinion? Is it a statistic? Is it a fact?

Having a child without a husband is a one-way ticket to poverty! This is based on statistics! If you can find successful people that counter this statement, are the statistics then incorrect?

Poverty rate of children: Married parents 9% Divorced mother 32% Never married mother 54%

Poverty rate of children: Married parents 9% Divorced mother 32% Never married mother 54% At 2X poverty rate… Never married mother 80% What are these statements?

Even if a woman has a job, married women make more: Median income of working women: Married $41,100 Divorced $37,400 Never married $30,200

Families median income with children…. Married $85,100 Female headed $30,200

Having a child without a husband is a one-way ticket to poverty!

Which child is living in poverty?

If you had to wager, what would you want to know?

Scientific Method Observation Hypothesis Test

Scientific Method Observation Hypothesis Test 1. Observation

Scientific Method Observation Hypothesis Test 1. Observation

Global Warming

Sometimes even research can be contradictive. https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=does+global+warming+exist

1,122 Record Cold Temps in the U.S. in one week July in the USA ends on a frigid note as record cold outpaces warmth nearly 10 to 1 71% Of The US Below Normal Temperature in 2013 South America in massive deep freeze July 30, 2013

California Rainfall Nearly Back To Normal In 2014 California in worst draught in a thousand years Kerry: Climate Change ‘Enormous Cloud Hanging Over All of Us’ Dem Sen. Coons Claims Americans Prefer a Carbon Tax to the Keystone Pipeline ‘Rules For Climate Radicals’: ‘Any cold location is weather. Any warm location is climate’ Jan. 11, 2015

Holiday Blizzard Traps Antarctic Research Ship

Co2 Temp Sun Spot Number