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

1. Effect of Mood on
Consumer Behavior
Agenda Question Design Analysis/Results Implications Limitations Q&A

2. Agenda
1. Research Question
2. Experimental Design/Hypothesis
3. Statistical Analysis
4. Marketing Implications
5. Limitations
6. Q&A
Agenda Question Design Analysis/Results Implications Limitations Q&A

3. 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

4. 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

5. Experimental Design
Between Subjects
Design
Two Independent Dependant Sample Size: n=15
Variables Variable (per Treatment)
Phone A vs.
Mood: Discount:
Phone B
Happy vs. Sad 10% vs. 40%
Agenda Question Design Analysis/Results Implications Limitations Q&A

6. Experimental Design
2 (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. Procedure
15 surveys per treatment
were administered
1. Mood manipulation
2. Choice between phones
3. Rating mood
4. Unrelated questions
Agenda Question Design Analysis/Results Implications Limitations Q&A

8. Experimental Design
X11
Y11
X21
X11
Comparisons
Y12
X22
X12
Y21
X21
X12
Y22
X22
Agenda Question Design Analysis/Results Implications Limitations Q&A

9. Statistical Analysis
Raw Data Direct Comparison
1=Phone A, 2=Phone B
Happy – 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. Statistical Analysis
• 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
Agenda Question Design Analysis/Results Implications Limitations Q&A

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. 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

13. 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

14. Marketing Implications
Applications:
• 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. 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. Q&A
Agenda Question Design Analysis/Results Implications Limitations Q&A