Consumer Research

History of Consumer Research

• The Modernist Era (1939)Researchers who endorse the assumptions upon which modernism is based are called positivists.

– The Development of Motivational Research• Motivational research methods consist of

– Projective techniques– Depth interviews

• It is considered to be qualitative research.

– Combining Quantitative & Qualitative Research for Strategic Marketing Decisions

• Postmodernism– Interpretivist Research

• Ethnography• Semiotics – Study of

symbols & meanings they convey

• Depth interviews

• Combining Positivists & Interpretivist Research Findings

Nonverbal Symbolism Enhances the Message

Comparisons between Positivism & Interpretivism

Purpose

Positivism Prediction of consumer actions

Interpretivism Understanding consumption practices

Methodology

Positivism Quantitative

Interpretivism Qualitative

Contd…

Positivism •Rationality : consumers make decisions after weighing alternatives.•Causes & effects of behavior can be identified & isolated•Individuals are problem solvers who engage in information processing•A single reality exists•Events can be objectively measured•Causes of behavior can be identified; by manipulating causes, marketer can influence behavior•Findings can be generalized to larger populations

Interpretivism •There is no single objective, truth•Reality is subjective•Cause & effect cannot be isolated•Each consumpton experience is unique•Researcher / respondent interactions affect research findings•Findings are often not generalized to larger populations

Assumptions

The Consumer Research Process

Develop objectives

Collect secondary data

Exploratorystudy

Design qualitative research•Method•Screener questionnaire•Discussion guide

Design quantitative research•Method•Sample design•Data collection instrument

Conduct research(using highly trained

interviewers)

Analyze data(subjective)

Preparereport

Preparereport

Analyze data(objective)

Collect primary Data (usually by

Field staff)

Projective techniques

• Designed to tap the underlying motives of individuals despite their unconscious rationalizations or efforts at conscious concealment.

• The basic assumption is that respondents are unaware that they are exposing their own feelings.

• Example of a Thematic Apperception Test

Examples of Projective techniques

• Word Association

• Sentence Completion

• The Third-Person Technique

• Thematic Apperception Test

Comparative Advantages of Mail, Telephone, & Personal Interview Surveys

Mail Telephone PersonalInterview

Cost Low Moderate High

Speed Slow Immediate Slow

Response rate Low Moderate High

Geographic flexibility

Excellent Good Difficult

Interview bias N/A Moderate Problematic

Interviewer supervision

N/A Easy Difficult

Quality of responses

Limited Limited Excellent

Likert ScaleSelect the option which best indicates your opinion for statements given at the bottom

1. Agree Strongly2. Agree3. Neither Agree nor Disagree4. Disagree5. Disagree strongly

a) It is fun to shop at a flea market.b) Products often cost more than they are worth.c) It is a good place to meet friends & neighbors.d) Many of the sellers are rude & aggressive.e) There is no waiting for delivery.f) There are no taxes to be paid.g) Most flea markets are difficult to reach.

Semantic Differential Scales

Very Moderat-ely

Slightly Neither one nor other

Slightly Moderat-ely

Very

Courteous salespeople

Helpful salespeople

Comfortable dressing rooms

Good selection

Competitive prices

High quality products

Attractive decor

Discourteous salespeople

Unhelpful salespeople

Uncomfortable dressing rooms

Poor selection

Noncompeti-tive prices

Low quality products

Unattractive decor

Retailer A Retailer CRetailer B

Rank-Order Scales

A. Rank the following six brands of candy bars from 1 to 6

☻ Hershey Chocolate bar☻ Snickers☻ Three Musketeers☻ M & Ms☻ Mounds☻ Twix

B. Rank electric razors from 1 to 6 in terms of closeness of shave

Remington Norelco Schick Braun Panasonic Ronson

Primary Research Methods for Selected Consumer Behavior Variables

Experimentation Observation & Inference

Self Reports

Projective Tests

Focus Groups

Motivation

Personality

Segmentation

Perception

Attitudes

Communication

Family decisions

Social Class

Culture & Subculture

Opinion leadership

Types of Research tools used in Consumer Research Studies

Experimentation

Observation & Influence

Self Reports(Surveys)

Projective Tests

Focus Groups /

Depth Interviews

•Copy pretests•Split cable•Tachistoscopes

•Cameras•Camcorders•Recorders•Product scanners•People meters•Content analysis•Ethnography

•Questionnaires•Inventories•Attitude scales

–Likert scales–Semantic differential scales–Rank order scales

•Value survey instruments

•Word association•Sentence completion•Figure drawings•Picture sorting•Ink blots•Cartoons (TAT)•Other person characterizations

•Screener questionnaires•Discussion guides

MARKET SEGMENTATION & MARKETING

RESEARCH

THE MARKETING RESEARCH PROCESS

Defining the problem and the research objectives :-

What is to be researched (the content,the scope)??

Why is it to be researched (the decisions that are to be made)??

TYPES OF QUESTIONSClosed end questions

Name Description ExampleDichotomous A question with two

possible answers.In arranging this trip, did you personally phone Jet Airways? Yes No

Multiple Choice A question with three or more answers.

With whom are you traveling on this flight? No one Spouse Spouse and children Business associates/friends .

Rating scale A scale that rates some attribute from “poor” to “excellent.”

Jet Airways food service isExcellentVery goodGoodFair

Name Description Example

Completely unstructured

A question that respondents can answer in an almost unlimited number of ways.

What is your opinion for Jet Airways?

Sentence completion

An incomplete sentence is presented and respondents complete the sentence.

When I choose an airline, the most important consideration in my decision is________

Open-end Questions

CONTACT METHODS

• Mail Questionnaire

• Telephone interview

• Personal interview

• Online interview

MARKET SEGMENTATION

NICHE MARKETING A niche is a narrowly defined customer group seeking a

distinctive mix of benefits.

LOCAL MARKETING - If you charge for stuff, then you are in commodity

business. - If you charge for tangible things, then you are in the

goods business. - If you charge for the activities you perform, then you

are in the service business. - If you charge for the time customers spend with you,

then & only are you in the experience business.

SEGMENTING CONSUMER MARKETS

CONSUMERMARKETS

GEOGRAPHIC DEMOGRAPHIC PSYCHOGRAPHIC BEHAV IORAL

Geographic segmentation• Region• City• Rural & semi-urban areas

Demographic segmentation

• Age• Family size• Gender• Income• Occupation • Education• Socio-economic classifiation

Psychographic segmentation• Lifestyle• PersonalityThe major tendencies of 4 groups with higher

resources Innovators Thinkers Achievers ExperiencersThe major tendencies of 4 groups with lower

resources Believers Strivers Makers Survivors

Behavioral segmentationDecision rolesBehavioral variables• Occasions• Benefits• User status• Usage rate• Loyalty status• Readiness stage• Attitude towards product

EVALUATING & SELECTING THE MARKET SEGMENTS

M1 M2 M3

P1

P2

P3

M1 M2 M3

P1

P2

P3

SINGLE SEGMENT

CONCENTRATION

SELECTIVE SPECIALIZATION

P=PRODUCT M=MARKET

M1 M2 M3 M1 M2 M3

M1 M2 M3

P1

P2

P3

P1

P2

P3

P1

P2

P3

FULL MARKET COVERAGE

PRODUCT SPECIALIZATION

MARKET SPECIALIZATIO

N