Consumer Research

Types of Research Methods

1. Quantitative 2. Qualitative

Quantitative Research
Descriptive in nature. Enables marketers to predict consumer behavior. Research methods include experiments, survey techniques, and observation. Findings are descriptive, empirical and generalizable.

Qualitative Research
Consists of in-depth interviews, focus groups, metaphor analysis, collage research, and projective techniques Administered by highly trained intervieweranalysts Findings tend to be subjective Small sample sizes

Positivism
A consumer behavior research approach that regards consumer behavior discipline as an applied marketing science. Based on predicting consumer actions Uses Quantitative methodology

Interpretivism
A postmodernist approach to the study of consumer behavior that focuses on the act of consuming rather than on the act of buying. Based on understanding consumption practices Uses Quantitative methodology

ASSUMPTIONS
Positivism Rationality; consumers make decisions after weighing alternatives The causes and effects of behavior can be identified Individuals are problem solvers A single reality exists Events can be objectively measured Interpretivism No single, objective truth Reality is subjective Cause and effect cannot be isolated Each consumption experience is unique Researcher/respondent interactions affect research findings

Steps Consumer Research Process

1. 2. 3. 4. 5. 6. 7. Define Research objectives Collect & Evaluate Secondary data Design a Primary research study Collect primary data Analyze data Prepare a Report on the findings Conclusions & Suggestion of future course of action

The Consumer Research Process

Develop Objectives Collect Secondary Data Design Qualitative Research Method Screener questionnaire Discussion guide Conduct Research (Using highly trained interviewers) Analyze Data (Subjective) Prepare Report Design Quantitative Research Method Sample design Data collection instrument Collect Primary Data (Usually by field staff) Exploratory Study Analyze Data (Objective) Prepare report

Developing Research Objectives

Defining purposes and objectives helps ensure an appropriate research design. A statement of objectives helps to define the type and level of information needed.

Research Methods
1. Secondary: use of existing research already done
Government Consulting firms Newspaper and magazine articles

2. Primary: creation of specific studies to answer specific questions

Secondary Versus Primary Data

Secondary data: data that has been collected for reasons other than the specific research project at hand Primary data: data collected by the researcher for the purpose of meeting specific objectives

Major Sources of Secondary Data

Government Publications Internal Sources

Periodicals & Books

Commercial Data

Primary Data Collection Methods

Observation

Experimentation

Surveys

Observational Research
Helps marketers gain an in-depth understanding of the relationship between people and products by watching them buying and using products. Helps researchers gain a better understanding of what the product symbolizes. Widely used by interpretivist researchers.

Experimentation
Can be used to test the relative sales appeal of many types of variables. Only one variable is manipulated at a time, keeping other elements constant. Can be conducted in laboratories or in the field.

Survey Data Collection Methods

Personal Interview Mail

Telephone
Online

Comparative Advantages
MAIL Cost Speed Response rate Geographic flexibility Interviewer bias Interviewer supervision Quality of response Low Slow Low Excellent N/A N/A Limited TELEPHONE Moderate Immediate Moderate Good Moderate Easy Limited PERSONAL INTERVIEW High Slow High Difficult Problematic Difficult Excellent ONLINE Low Fast Selfselection Excellent N/A N/A Excellent

Validity

The degree to which a measurement instrument accurately reflects what it is designed to measure.

Reliability

The degree to which a measurement instrument is consistent in what it measures.

Attitude Scales
Likert scales: easy for researchers to prepare and interpret, and simple for consumers to answer. Semantic differential scales: relatively easy to construct and administer. Rank-order scales: subjects rank items in order of preference in terms of some criteria.

Example of a Likert Scale

Please place the number that best indicates how strongly you agree or disagree with each of the following statements about shopping online in the space to the left of the statement. 1 = Agree Strongly 2 = Agree 3 = Neither Agree or Disagree 4 = Disagree 5 = Disagree Strongly _____ a. It is fun to shop online. _____ b. Products often cost more online. _____ c. It is a good way to find out about new products.

Primary Qualitative Data Collection Methods

In-depth Interviews Focus Groups

Projective Techniques

Metaphor Analysis

Primary Research Methods

Surveys Experimentation Focus groups In-depth interviews Projective techniques Physiological Measures

Surveys
Planned questions
Open-ended Closed-ended

Forms
Mail Telephone Mall Intercept Computer/Internet

Sample size and inferences

Biases
Wording Response Interviewer

Computer/Online surveys
Getting people to follow instructions Opportunities for branching (contingent questions) Sampling frame and response Possible emerging opportunities Correlating data on which not all respondents have answered the same questions

Experimentation
Real world relevance vs. control (internal vs. external validity) Treatments and factorial designs Sample sizes and inferences

Focus Groups
Groups of 8-12 consumers assemble Unstructured group interview about a product or service concept. Gradually focus in on actual product

In-depth interviews
Structured vs. unstructured interviews Generalizing to other consumers Biases

Selected Portions of a Discussion Guide

1. Why did you decide to use your current cellular

company? (Probe) 2. How long have you used you current cellular company? (Probe) 3. Have you ever switched services? When? What caused the change? (Probe) 4. What do you think of the overall quality of your current service? (Probe) 5. What are the important criteria in electing a cellular service? (Probe)

Projective Techniques
Measurement of attitudes consumers are unwilling to express Research procedures designed to identify consumers subconscious feelings and motivations Consumer discusses what other consumer might think, feel, or do

Observation
Consumer is observed, preferably unobtrusively while:
Examining products prior to making a purchase Using a product Engaging in behavior where the product may be useful

Physiological Measures
Devices attached to the consumer to measure
Arousal Eye movement

Consumer feedback
Lever pulled to positive or negative positions Squeeze on ball

Scanner Data
Panel members in test communities agree to
Swipe a card prior to each purchase Have purchases matched to
demographic profiles media/coupon exposure promotional status of competing brands past purchases

Problems:
Aggregation over household Aggregation bias--averages of disparate segments obscure!

Metaphor Analysis
Based on belief that metaphors are the most basic method of thought and communication. Zaltman Metaphor Elicitation Technique (ZMET) combines collage research and metaphor analysis to bring to the surface the mental models and the major themes or constructs that drive consumer thinking and behavior.

Customer Satisfaction Data Collection Instruments

Customer Satisfaction Surveys Gap Analysis of Expectations versus Experience Mystery Shoppers Critical Incident Technique Customer Complaint Analysis Analysis of Customer Defections

Sampling Plan Decisions

Whom to survey?

How many?
How to select them?

Probability Sampling Designs

Simple random sample Systematic random sample Every member of the population has a known and equal chance of being selected. A member of the population is selected at random and then every nth person is selected.

Stratified random sample

Cluster (area) sample

The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.
The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.

Nonprobability Sampling Designs

Convenience sample Judgment sample The researcher selects the most accessible population members from whom to obtain information (e.g., students in a classroom) The researcher uses his or her judgment to select population members who are good sources for accurate information (e.g., experts in the relevant field of study). The researcher interviews a prescribed number of people in each of several categories (e.g., 50 men and 5 women).

Quota sample

Issues in Primary Research

Social desirability/ willingness to stand out - need to adjust data Willingness to criticize products Familiarity with being surveyed New technologies like scanner data --usually less well developed as compared to U.S.A Reachability of respondents Selection of appropriate respondent