· figure 2.1 the consumer research process develop objectives collect secondary data design...

The Consumer Research Process

CHAPTERTWO

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Learning Objectives

1. To Understand the Importance of Consumer Research for Firms and Their Brands, as Well as Consumers.

2. To Understand the Steps in the Consumer Research Process.

3. To Understand the Importance of Establishing Specific Research Objectives as the First Step in the Design of a Consumer Research Project.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 2Chapter Two Slide

Learning Objectives (continued)

4. To Understand the Purposes and Types of Secondary Consumer Research That Is Available for Making Decisions or Planning Future Consumer Research.

5. To Understand Specific Features and Applications of Different Research Methods to Be Carried Out in Consumer Research Studies.

6. To Understand Where Data Analysis and Reporting of Findings Fit in the Research Process.

7. To Understand How Each Element of the Consumer Research Process Adds to the Overall Outcome of the Research Study.


Outline

• Overview of consumer research process

• Design Secondary research study

Why Do Marketers Regularly Test Print Ads Like This One Before They Are Placed in the Media?

5Chapter Two Slide

To Test the Impact of the Message Before Spending Large Amounts of Money

6Chapter Two Slide

The Importance of the Consumer Research Process

• Marketers must understand customers to design effective:

– marketing strategies

– products

– promotional messages


How Consumer Research Helps Real Business

• Iams, a Procter & Gamble brand that makes pet food, noticed that some consumers were supplementing dry pet food with some form of treat, particularly to get older pets with dental problems to eat it. Iams then conducted quantitative research to determine if this practice was common among consumers. The research indicated that 40% of pet owners use such methods. In response, Iams launched Savory Sauce, a more convenient alternative to table scraps. The product has been so successful that Iams has since extended this line to include eight varieties, including sauces for use with puppies.


• Six steps

– defining the objectives of the research

– collecting and evaluating secondary data

– designing a primary research study

– collecting primary data

– analyzing the data

– preparing a report on the findings

The Consumer Research ProcessFigure 2.2

10Chapter Two Slide

Figure 2.1 The Consumer Research Process

Develop Objectives

Collect Secondary

DataDesign Qualitative

Research

• Method

• Screener questionnaire

• Discussion guide

Prepare Report

Analyze Data

(Subjective)

Conduct Research

(Using highly trained

interviewers) Exploratory

Study

Prepare report

Analyze Data

(Objective)

Collect Primary Data

(Usually by field staff)

Design Quantitative

Research

• Method

• Sample design

• Data collection

instrument


• Secondary research

• Primary research

– Qualitative

– Quantitative

12Chapter Two Slide

Developing Research Objectives

• Defining purposes and objectives helps ensure an appropriate research design.

• A written statement of objectives helps to define the type and level of information needed.


Example of research objectives

• Management Problem: Why are store revenues so low?

• Possible research objective:

– Investigate current customer satisfaction

– Assess target market perceptions of store and competitors

– Determine target market awareness

Discussion Questions

• Assume you are planning to open a new pizza restaurant near your campus.

– What might be three objectives of a research plan for your new business?

– How could you gather these data?


Secondary Data

• Data that has been collected for reasons other than the specific research project at hand

• Includes internal and external data


Types of Secondary Data

Internal Data• Data generated in-house

• May include analysis of customer files

• Useful for calculating customer lifetime value

External Data• Data collected by an outside

organization

• Includes federal government, periodicals, newspapers, books, search engines

• Commercial data is also available from market research firms


http://www.census.gov/

Demographic profile

Area x U.S

Population 151,552

18 years and over 68% 75.4%

Median family income 51,793 62,363

Language other than English spoken at home

66.5% 19.6%

Average household size 3.85 2.60

Video Discussion: AC Nielson

• What technique does AC Nielson use to help profile consumers?

Quality of Secondary Data

• Who sponsored the research?

– Advocacy research, or research conducted to support a position rather than to find the truth about an issue, is blatantly unethical

• What is the ability of the researchers?

– Experience is an important consideration for assessing quality

• Process of data collection

– Bias-free access to respondents is an important consideration for assessing quality

Pros and Cons of Secondary Data

• Advantages of Secondary Data

– Time savings

– Cost savings

• Disadvantages of Secondary Data

– Problems of fit

– Problems of accuracy

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

http://www.marketresearch.com/

Outline

• Primary research

– Qualitative study

– Quantitative study:

• Data collection methods

• Test market

• Concept of Measurements

– Reliability and Validity

– Measurements Common in Consumer Behavior

Designing Primary Research

Qualitative Research

• Depth Interviews

• Focus Groups

• Projective Techniques

• Metaphor Analysis


Qualitative Collection MethodDepth Interview

• Also called one-on-one interview

• Usually 20 minutes to 1 hour

• Nonstructured

• Interviewer will often probe to get more feedback (see following slide for probing)

• Session is usually recorded


Qualitative Collection Method Focus Group

• 8-10 participants

• Respondents are recruited through a screener questionnaire

• Lasts about 2 hours

• Always taped or videotaped to assist analysis

• Often held in front of two-way mirrors

• Online focus groups are growing


Discussion Guides for Research

• Step-by-step outline for depth interviews and focus groups

• Interviewers will often “improvise” and go beyond the discussion guide


Focus Group Discussion Guide - Figure 2.4


Qualitative Collection Method Projective Techniques

• Research procedures designed to identify consumers’ subconscious feelings and underlying motivations

• Consist of a variety of disguised “tests”

29Chapter Two Slide

Common Projective ExercisesTable 2.1 (excerpt)

Description

Word Associations

The researcher has a list of words, some of them to be studied and some just as “filler.” The researcher asks the respondent(s) to react, one-at-a time, to each word by stating or (in a focus group setting) writing on a pad the first word that comes to mind, and to explain the link.

SentenceCompletion

The researcher has a series of incomplete sentences that the respondent(s) needs to complete with a word or phrase.

Photo/Visual for Storytelling

The researcher creates/selects a series of photos of consumers, different brands or products, range of print ads, etc., to serve as stimuli. The respondents are asked to discuss or tell a story based on their response to a photo or some other visual stimulus.

Role Playing Is quite similar to storytelling; however, instead of telling a story, the participant(s) will be given a situation and asked to “act out” the role(s), often with regard to a product or brand, or particular selling situation.


Example of Word Association

• What comes to your mind when you think of “Coca-Cola”

– Responses frequency

– Response time

Example of Sentence Completion

• Complete the following sentences:

– People who are concerned about ecology ______.

– A person who does not use lour lakes for creation is ______

Compare the Differences

• People who are concerned about ecology care about the future.

• A person who does not use our lakes for recreation is being thoughtful about the ecosystem.

• People who are concerned about ecology are just tree-hugger who want to run up my taxes.

• A person who does not use our lakes for recreation is a person who doesn’t enjoy water sports.

Qualitative Collection Method 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.


Qualitative Collection Method “Looking-In”

• Look at information from threads and postings on social media, including blogs and discussion forums

• Methodology to capture consumers’ experiences, opinions, forecasts, needs, and interests


http://www.converseon.com/conversation-mining.html

Part Two

• Design primary research

Designing Primary Research

Quantitative Research

• Observation

• Experimentation

• Survey questionnaires

37Chapter Two Slide

Data Collection MethodsObservational 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

38Chapter Two Slide

Data Collection Methods Mechanical Observational Research

• Uses mechanical or electronic device to record consumer behavior or response

• Consumers’ increased use of highly convenient technologies will create more records for marketers

• Audits are a type of mechanical observation which monitor sales


Data Collection MethodsTable 2.2

Mail Telephone Personal Interview

Online

Cost Low Moderate High Low

Speed Slow Immediate Slow Fast

Response rate Low Moderate High Self-selected

Geographic flexibility

Excellent Good Difficult Excellent

Interviewer bias

N/A Moderate Problematic N/A

Interviewer Supervision

N/A Easy Difficult N/A

40Chapter Two Slide

http://www.surveymonkey.com/

Increase Mail Response Rate

• Include stamped and self-addressed envelop

• Multiple waves of reminders

• Use consumer panels

Increase Mail Response Rate

• If you were a marketing manager planning a mail survey to find out consumers’ attitude towards your products. Traditionally, mail survey is associated with low response rate of 1%. What suggestion would you give to increase respondent rate?

Example of Test Market

• New Coke Lesson

• A controlled experiment done in a limited but carefully selected sector of the marketplace.

• McDonald’s used test markets to determine that a market existed for McDonald’s own higher-end coffee drink.

Best and Worst Test Markets

• Rochester, N.Y

• Wichita, Kansas

• Eugene-Springfield, Oreg

© 2010 South-Western/CengageChurchill Brown Suter/Basic Marketing

Research

Honolulu, Hawaii

San Francisco, Cali

New York, N.Y

Misfires in Market Testing

• Frito-Lay test-marketed it Max Potato, corn and tortilla chips containing the Olestra fat substitutes in Grand Junction, Colorado; A TV crew sampled the chips and succumbed to diarrhea, and then broadcast a report about it, creating lots of bad publicity for the chips

• Campbell Soup spent 18 months developing a blended fruit juice called “Juiceworks”. By the time the product reached the market, three competing brands were already on store shelves. Campbell dropped its product.

© 2010 South-Western/CengageChurchill Brown Suter/Basic Marketing

Research

Validity and Reliability

• If a study has validity, it collects the appropriate data for the study.

• A study has reliability if the same questions, asked of a similar sample, produce the same findings.


Examples of Validly

• GMAT Test

– Correlation between GMAT score and students’ performance in business school

• Test spelling ability with: “words” catcher, shortstop, foul, strike, walk, pitcher, outfielder”

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

Table 2.4 Comparative Advantages

MAIL TELEPHONEPERSONAL

INTERVIEWONLINE

Cost Low Moderate High Low

Speed Slow Immediate Slow Fast

Response

rateLow Moderate High

Self-

selectionGeographi

c flexibilityExcellent Good Difficult Excellent

Interviewe

r biasN/A Moderate Problematic N/A

Interviewe

r

supervisio

n

N/A Easy Difficult N/A

Quality of

responseLimited Limited Excellent 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.

Table 2.6 Probability Sampling

Designs

Simple random

sample

Every member of the population has a known

and equal chance of being selected.

Systematic

random sample

A member of the population is selected at

random and then every “nth” person is

selected.

Cluster (area)

sample

The population is divided into mutually

exclusive groups (such as blocks), and the

researcher draws a sample of the groups to

interview.

Stratified random

sample

The population is divided into mutually

exclusive groups (such as age groups), and

random samples are drawn from each group.

Table 2.6 Nonprobability

Sampling Designs

Convenience

sample

The researcher selects the most accessible

population members from whom to obtain

information (e.g., students in a classroom)

Judgment sample 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).

Quota sample The researcher interviews a prescribed

number of people in each of several

categories (e.g., 50 men and 5 women).

Measurements in Consumer Behavior

Attitude Scales

58Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

• Asked to agree or disagree with a statement

• Easy to prepare & interpret

• Simple for consumersLikert scales

• Includes bipolar adjectives

• Relatively easy to construct and administer

Semantic differential scales

• Measures likelihood consumers will act a certain way

• Easy to construct and administer

Behavior intention scales

• Items ranked in order of preference in terms of some criteriaRank-order scales

Chapter Two Slide

Likert Scale

• Respondents indicate their degree of agreement or disagreement with each of a number of statements.

• Five to nine categories work well

•

Churchill Brown Suter/Basic Marketing Research

Strongly

Disagree Disagree Agree

Neither

Agree nor

Disagree

Strongly

Agree

The celebrity endorser is trustworthy.

The celebrity endorser is unattractive.

The celebrity endorser is an expert on the product.

The celebrity endorser is not knowledgeable about the product.

Example of Likert Scale

(c) 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied

or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 2.4 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.

Qualitative Data Collection Methods

Depth

Interviews

Projective

Techniques

Focus

Groups

Metaphor

Analysis

Focus Group

A qualitative

research method in

which eight to ten

persons participate

in an unstructured

group interview

about a product or

service concept.

Figure 2.5 Selected Portions of a

Discussion Guide1. 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

Research

procedures

designed to identify

consumers’

subconscious

feelings and

motivations.

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 (Table 2.5)

• 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?

Semantic-differential Scale

– Anchored by a set of bipolar adjectives or phrases

– Particularly useful in corporate, brand and product-image studies.

Churchill Brown Suter/Basic Marketing Research

CELEBRITY ENDORSER

Knowledgeable

Not

Knowledgeable: : : : : :

Not ExpertExpert : : : : : :

Attractive Unattractive: : : : : :

Not

TrustworthyTrustworthy : : : : : :

Example of an Itemized Rating Scale: Semantic-Differential Scale

(c) 2010 Cengage Learning. All Rights Reserved. May not be

scanned, copied or duplicated, or posted to a publicly

accessible website, in whole or in part.

Figure 2.4 Semantic Differential Profiles

of Three Pay-Per-Movie Services

1

2

3

4

5

Co

st

Avail

ab

ilit

y

Nu

mb

er

of

Tit

les

Ease o

f

Access

Cla

rity

of

Pic

ture

DVD

Digital

CableDIVX

Ex

ce

lle

nt

Neu

tral

Po

or

Behavioral Intention Scale

• Measures the likelihood that consumers will act in a certain way in the future

• Example:

– How likely are you going to continue using Bank X’s online banking for the next six months? (7 as most likely, and 1 as least likely)

Rank Order Scale

• Subjects are asked to rank items such as products in order of preference.

• We rank the following beverage brand in terms of your preference

– Coca Cola

– Pepsi Cola

– Sprite

– Dr. pepper

Figure 2.5 Rank-Order Scales

Rank the following computer manufacturers in terms of hotline

help by placing a 1 next to the one who provides the best telephone

help, a 2 next to the second best, until you have ranked all six.

_____ IBM _____Hewlett Packard

_____ Dell _____ Gateway

_____ Compaq _____ NEC

Customer Satisfaction Measurement

• Customer Satisfaction Surveys– Analysis of

Expectations versus Experience

• Mystery Shoppers

• Customer Complaint Analysis


Sampling and Data Collection

• Samples are a subset of the population used to estimate characteristics of the entire population.

• A sampling plan addresses:– Whom to survey

– How many to survey

– How to select them

• Researcher must choose probability or nonprobabililty sample.

Chapter Two SlideCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 76

Data Analysis and Reporting Findings

• Open-ended questions are coded and quantified.

• All responses are tabulated and analyzed.

• Final report includes executive summary, body, tables, and graphs.


The Consumer Research ProcessFigure 2.2


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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

79

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Chapter Seven Slide

· figure 2.1 the consumer research process develop objectives collect secondary data design...

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