marketing research methods

MarketingResearchLecture3MarketingManagement[722G86]

HugoGuyader,PhDCandidateinMarketingDepartmentofManagement&Engineering(IEI)

DivisionofBusinessAdministration(FEK)

2016-11-05

HugoGuyader—722G86Lecture3

HugoGuyader๏ PhD student in Marketing since 2013. ๏ Multi-method approach to research:

experiments, surveys, interviews, (n)etnography, etc.

๏ Research focus on collaborative consumption and P2P exchanges through online platforms.

๏ Teaching in Marketing, ConsumerBehavior, ServiceMarketing, AdvancedConsumerMarketing, Leadership&Strategy.

@experienceetc

[email protected]

https://twitter.com/experienceetc

mailto:[email protected]?subject=

Applied marketing research

The research process

Quantitative methods

Qualitative methods

Today


WhyMarketingResearch?• All marketing strategy and tactic decisions require

information about customer, markets, competitors, partners, technologies, etc.

• The primary goal of gathering, structuring and analysing marketing information is to gain customer insights and improve marketing decisions.

• Understanding customers and the marketplace becomes the basis for creating customer value and relationships.


TheCoca-ColaCompany-Year1985

• Taste was the most important cause of Coca Cola’s decline in market share in the 70’s and early 80’s

• Research: blind product taste tests were conducted, and more than 50% participants favoured “New Coke” over both the original formula and Pepsi.

• In 1985, Coca Cola introduced “New Coke”: a sweeter beverage than the original-formula, which was withdrawn from the market.


https://youtu.be/o4YvmN1hvNA

https://youtu.be/o4YvmN1hvNA


PitfallsCoca Cola lost many many consumers. ‣ First, they assumed that taste was the

deciding factor in consumer purchase behavior. But study participants were not told that only one product would be marketed — not asked whether they would give up “Coke Classic”.

‣ Second, they did not realise the symbolic value and emotional involvement consumers had with the original taste, which was reintroduced immediately and boosted sales.

‣ “New Coke” is withdrawn in 2002.

Market share went up!


TheInternetAge

Increased Internet access in the last 20 years has made research

available at a much lower cost and, therefore, more accessible to

organisations of all sizes.

As a result, the research field has exploded with new opportunities

and methodologies, and organisations have more

information at their disposal than ever before.

• Social media yields unfiltered feedback

• Data collection improvements (e.g. better targeting, engagement measures)

• Enhanced data analysis • Creation of new research roles • Big Data informs

research


MarketingInformationSystem(MIS)

People and procedures for - assessing information needs, - developing the needed information, and - helping decision makers to use the information to generate and validate actionable customer and market insights.

Coursebook-Figure4.1


CustomerRelationshipManagement• CRM systems: capturing and using customer data from all sources

to manage customer interactions and build customer relationships. e.g. identifying and managing customer touch points

• CRM builds on data from different sources. For instance, ICA’s CRM system is based on information provided when customers purchase and swipe their ICA cards.Through this method, loyal card customers get customised offers based on purchase history.

• CRM alone can hardly create customer relationships – it’s just one tool that must be integrated in the company’s overall marketing.


A man walked into a Target outside Minneapolis and demanded to see the manager. He was clutching coupons that had been sent to his daughter, and he was angry, according to an employee who participated in the conversation.

“My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?”

The manager didn’t have any idea what the man was talking about. He looked at the mailer. Sure enough, it was addressed to the man’s daughter and contained advertisements for maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and then called a few days later to apologize again.

On the phone, though, the father was somewhat abashed. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my house I haven’t been completely aware of. She’s due in August. I owe you an apology.”


“HowTargetFiguredOutATeenGirlWasPregnantBeforeHerFatherDid”

๏ Customer Guest ID number tied with a lot of information ๏ Purchase data from ladies who signed-up to

Target baby registries (25 products) ๏ pregnant women on the registry buy more

unscented lotion around their second trimester;

๏ hand sanitizers and washcloths when close to their delivery date.

๏ Estimate due date to within a small window, and send coupons timed to very specific stages of her pregnancy. Forbes(2012)

TheNewYorkTimes(2012)

http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/print/

http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=1&_r=2&hp


MarketingResearchinSMEsandNGOsNeed to understand what stakeholders need (i.e. external as well as internal stakeholders, such as staff and volunteers). Small and medium-sized enterprises (SMEs) and non-government organisations (NGOs) can use marketing research techniques in a less formal manner and at little expense.

Conducting informal surveys using small convenience samples. Students can be hired to keep costs down. A lot of information might be collected on the internet at little or low cost.


InternationalMarketingResearchSourcing secondary data may be difficult

Cultural differences: watch your language!

Varying attitudes towards marketing research

Despite the problems, global companies, which are increasing in numbers and range, have little choice but to conduct international marketing research

Coca Cola: do you prefer drinking ‘Diet Coke’ or ‘Coke Light’?


Internationalmarketinggonewrong• "Nothing sucks like an Electrolux." (US) • Proctor & Gamble - Pampers diapers (Japan)

Image of a stork delivering a baby on the packaging. Customers were concerned and confused by the image of a stork on the packaging, since the stories of storks bringing babies to parents isn't a part of Japanese folklore. There, the story goes that giant floating peaches bring babies to their parents.

• Coors beer slogan “Turn it loose” into Spanish was read as “Suffer from diarrhea”.


FARTFULL-marketingcoup?- Not for sale. - Going, Speed (“Fart”)

in Swedish. - Travel (“Fährt”) in

German - FARTFULL is being

used here to suggest mobility, given the desk's wheels and design.

- Good press!


ResearchEthics• Consumer privacy issues • Integrity issues

A substantial amount of consumers mistrust marketing research, such as increasing consumer resentment has become a major problem.

➡Lower survey response rates reduces the power of marketing research, in a time when it’s more important than ever.

FOCAL POINTS (Hammersley & Atkinson, 2007): • Informed consent or passive deception • Privacy • Do no harm • Exploitation • Consequences for future research

Vetenskapsrådet


SourcesofMarketingInformation✓ Internal data: existing collections of consumer/market

information based on internal sources. Cheap, but often old, incomplete, and collected for other purposes.

e.g. customer demographics, sales numbers, customer satisfaction

✓ Marketing intelligence: systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace.

e.g. monitoring Internet buzz, snooping on competitors annual reports or press releases, online databases/panels

✓ Marketing research: systematic design, collection, analysis and reporting of data relevant to a specific marketing situation.


PizzaHut-VeryIntoPizza(V.I.P.)Internal database on 40 million households Customer retention program 1 free pizza for every two pizzas bought Membership fee: $14.95 Personalised reminders are sent to customers


MarketingResearchProcess

Defineproblemand

objectives

Developresearchplan

Implementresearchplan

Interpretandreportfindings

‣ Exploratoryresearch

‣ Descriptiveresearch

‣ Causalresearch

‣ Primarydatasources

‣ Secondarydatasources

‣ Sampling‣ Datacollection

‣ Analysis

Exploratory Descriptive Causal• Goal:gatherpreliminary

information,defineproblem,suggesthypotheses

• Usuallybasedonqualitativeapproach

• Example:whatkindofservicescouldweprovidearoundourproduct?

• Goal:describingindetailproblems,situations,markets,andcustomers

• Bothqualitativeandquantitativeapproachescanbeused

• Example:whatagegroupbuysourproducts?

• Goal:testhypothesesaboutcause-and-effectrelationships

• Usuallybasedquantitativesurveyorexperimentationdata

• Example:howdocustomersreacttochangeinprice?

FlexibledesignBroadscopeFuzzyresults

RigiddesignNarrowscopeClearresults

ResearchDesign

Defineproblem and

objectives

Developresearchplan


Interpret andreportfindings


PrimaryData SecondaryData

• Informationcollectedforaspecificpurpose/researchquestion

• Informationalreadyavailableinternallyorexternally

• Collectedforanotherpurpose• Costsless!

Defineproblem and

objectives

Developresearchplan




SecondaryData

• Nielsen Company • Qualtrics • ClickZ • Ipsos • Forrester • Experian

Consumer Research

• Symphony IRI Group

• IMS Health

• Arbitron Radio and Television Reports

• J.D. Power and Associates

• Erdos & Morgan • Standard Rate and

Data Service (SRDS)

• Dun & Bradstreet • comScore • Thomson Dialog

• LexisNexis • Mediamark

Research • Factive • Audit Bureau of

Circulations • Hoover’s • Federal Trade

Commission • U.S. Census • U.S. Patent and

Trademark Office

Defineproblem and

objectives

Developresearchplan



External sources


SecondaryDataInternal sources

• CRM (Customer Relationship Management) system • ERP (Enterprise Resource Planning) system • PoS (Point of Sales) data • Loyalty programs (e.g. ICA) • Use data (e.g. mobile operators) • Promotion campaign

Defineproblem and

objectives

Developresearchplan




SecondaryInformation✓ Relevant

-> fits research project needs

✓ Accurate -> reliably collected and reported

✓ Current -> up-to-date for current decisions

✓ Impartial -> objectively collected and reported

Defineproblem and

objectives

Developresearchplan




PrimaryDataCollection• Different approaches

Observation Survey

Experiment • Different methods

Mail Telephone Personal Online

• Different sampling Sampling unit

Sample size Sampling procedure

• Different instruments Questionnaire

Mechanical Instruments

Defineproblem and

objectives

Developresearchplan




Sampling“asegmentofthepopulationselectedformarketingresearchtorepresentthepopulationasawhole”

¿ Who is to be surveyed? sampling unit

¿ How many people should be surveyed? sample size

¿ How should the people in the sample be chosen? sampling procedure

Defineproblem and

objectives

Developresearchplan




Sampling✴ Probability sampling

- Every member of the population has a known nonzero probability of selection. - Random refers to the procedure for selecting the sample; it does not describe the data in the sample. - Randomness characterises a procedure whose outcome cannot be predicted because it depends on chance.

✴ Non-Probability sampling - Units of the sample are selected on the basis of personal judgment or convenience - The probability of any particular member of the population being chosen is unknown.

Defineproblem and

objectives

Developresearchplan




ProbabilitySampling• Simple random sampling: Every member of the population has a known

and equal chance of selection. Only one stage of selection. • Systematic sampling: starting point selected by a random process and then

every nth number on the list is selected. The problem of periodicity occurs if a list has a systematic pattern (not random).

• Stratified sampling: simple random subsamples are drawn from within each stratum of the population. First, a variable is identified for stratification (e.g. age). Second, for each separate subgroup/stratum (e.g. 16-25, 26-40, 41-55), a list of population elements must be obtained.

• Cluster (area) sampling: the primary sampling unit is no longer the individual element in the population (e.g. grocery store) but a larger cluster of elements located in proximity to one another (e.g. cities).

• Multistage area sampling: a combination of two or more probability sampling techniques. Progressively smaller areas/units are selected in each stage (e.g. City -> Neighbourhood -> Age group -> occupation, …).

Defineproblem and

objectives

Developresearchplan




Non-ProbabilitySampling• Convenience sampling: people that are most conveniently

available (e.g. selecting all visitors to a website). Produces a large number of responses quickly and at a low cost, but induces a self-selection bias.

• Judgment (purposive) sampling: based on personal judgment about some appropriate characteristic, to achieve specific objective.

• Quote sampling: various population subgroups are represented on pertinent characteristics to the extent that the researcher desires.

• Snowball sampling: initial respondents are selected by probability methods and additional respondents are obtained from information provided by the initial respondents.

Defineproblem and

objectives

Developresearchplan




AnalyseandReport

Data seldom speaks for itself. Proper data analysis is needed if a study is to have any value.

Analysis techniques vary and their effectiveness depends on the types of information you are collecting, and the type of measurements you are using. Because they are dependent on the data collection, analysis techniques should be decided before this step.

Defineproblem and

objectives

Developresearchplan




AnalyseandReport

Communicate results effectively (in a way that they can be understood and used). • Reports must tell the user what information is

relevant, and how it is relevant to the issues at hand.

• The research process culminates with the research report including an accurate description of the research process, the results, conclusions, and recommended courses of action.

Defineproblem and

objectives

Developresearchplan




QualitativeQuantitative

Methods

vs.


QualitativeQuantitative• Depends on the research question…

– What do I want to know? – When? In which historical context? – Why is it important? – Who needs this knowledge? - politicians, corporate owners, managers, producers, sales persons, consumers, old people, young women, foreign citizens...etc.

• …and on the ontological and epistemological perspectives of the researcher.


QualitativeApproachInterpretativism • Antipositivists hold that researchers should focus on

understanding the interpretations that social actions have for the people being studied.

“Socialrealityhasaspecificmeaningandrelevancestructureforthebeingsliving,acting,andthinkingwithinit”

– Schutz, 1962, p.59 • The meaning of social action • Weber’s Verstehen • The actor’s perspective: subjective reality • The social realm may not be subject to the same methods of

investigation as the natural world.


QuantitativeApproachPositivism • Application of natural science methods to social

science research: • Empiricist knowledge via the senses • Deductivist theory testing • Inductivist theory building • Objective value-free researcher • Scientific versus normative statements. • There is a reality out there to be studied, captured,

and understood.


Qualitative Research Quantitative• quality• what,why,how Focus • quantify

• howmany

• hermeneutics Philosophy • positivism

• fieldwork• interviews• meaning• subjectivity

Keywords

• surveys• facts• statistics• objectivity

• understandingorexploringchange

Aim

• explanation• control• prediction• proof• hypothesis

• intuitive(researcherasatraveller) How • structured,predetermined

(researcherasaminer)


Qualitative Research Quantitative• Discoverideas• Usedinexploratoryresearch

withgeneralresearchobjectsPurpose • Testhypothesesorspecific

researchquestions

• Observe&Interprete Approach • Measure&Test

• Unstructured• Free-Form Datacollection • Structuredresponsecategories

provided

• Intimatelyinvolved• Subjectiveresults

Researcherindependence

• Uninvolved• Observer• Objectiveresults

• Smallsamples• Naturalsettings Samples • Largesamplestoproduce

generalisableresults

• Exploratoryresearchdesign Mostoftenused • Descriptiveresearchdesign• Causalresearchdesign


Exploratoryresearch

Confirmatoryresearch

QualitativeData❖ textual❖ visual❖ oral➡ focusonstories,portrayals,meaningfulcharacterisations,interpretations,expressivedescriptions

QuantitativeData

❖ numbers➡ focusonassigningnumberstorepresentphenomenainanorderedmanner


MarketingResearchMethods


Observations• Recorded notes describing observed events • Search for variation & exceptions

- What is regular and what is unusual activity? - What happens and why?

• Participant observations • Provides — Many different types of, Naturally

occurring, In depth, Contextualised data • Facilitates — Preparation of interview or survey

studies; Interpretation of results


MysteryShopping

‣ Mystery shoppers are sent to make a purchase, and then fill-out a detailed evaluation sheet.

‣ Often used to evaluate staff, in natural settings. ‣ Provides feedback to front-line employees. ‣ Visits can also be video-recorded and used

in training. ‣ Mystery shopping may raise ethical issues

(staff is unaware that they are being studied)


EthnographyWhat is Ethnography? Researcher is part of social setting for a prolonged period Content = both method and written product of the research Method (participant) Observations, with other methods (Open or Biographical or Focus group interviews, Document analysis) ObjectiveUnderstanding a culture, norms and values, social environment of a group


EthnographyHow meaning is created and ways thinking are conducted How symbols are working in the social and societal context How behaviors emanate and are appearing to be

While embarking on an ethnographic study the researcher should be aware of pre-understanding (ontology, epistemology, method, techniques and theory) and how it effects data collection and analysis.


EthnographyInformation is gathered while embedded in the context through observation, field notes, interviews, audiovisual recordings, polls, surveys, tests, experiments.. The ethnographer is a storyteller too — tales of others. The closer, the better a reader of an ethnography understands the “native’s” point of view, the better the story and science can be said to be.


TheConsumerOdyssey• Founding from the Marketing Science Institute in 1986, to buy

for a large van in which The Consumer Odyssey could travel to explore a wide variety of consumer venues from East to West coast.

• Russell Belk, Melanie Wallendorf and other social scientists stayed with the project for its duration, whereas the other members joined for different parts of the trip: swap meets, art shows, private homes, hospitals, homeless shelters, hotels, riverboat cruises, and many more.

• The researchers entered these environments with open eyes, making the "familiar strange" and employing methods that few researchers had used previously in the discipline.


Netnography

1 Holistic marketplace descriptions 2 Communicative and cultural comprehension 3 Embedded understanding of consumer choice 4 Naturalistic views of brand meaning 5 Discovery of consumer innovation 6 Mappings of sociocultural online space


Netnography➡ 6 steps (Kozinets 2015)

1 Research Planning 2 Entrée 3 Data Collection 4 Interpretation 5 Ensuring ethical standards 6 Research representation


Interviews“AConversationwithapurpose”

Obtain as much, as specific, and as useful information as possible. • Forms of interview: individual, face-to-face, verbal

exchange; face-to-face group interchange; mailed questionnaires; self-administered questionnaires; telephone surveys; …

‣ structured, semi-structured or unstructured ‣ a one-time brief event, or multiple lengthy

sessions at times spanning days


Interviews• Interview as a tunnel: focus on events, facts, ideas,

emotions, experiences, attitudes, stories and the world of the interviewee; in a way that is as direct, as neutral, as reliable and as valid as possible.

• Interview as a topic: focus on observing the interview. Data is used as an indirect source (Interviewee’s talk is analysed as behaviour) and as an interaction (The interview is analysed as a social event).

• Active interview = Interview as a tunnel and topic: “Meaning is not constantly formulated anew, but reflects relatively enduring local conditions.”


StructuredInterviews• Formal questionnaire • Ordered questions, asked in a uniform manner • Collect descriptive information • Easy to use • Questions need to be worded properly to get

unbiased and complete answers • No room for variation (except if open-ended

questions are used, which is rare) • Responses are recorded according to coding

scheme


UnstructuredInterviews• Open-ended, informal • No a priori categorisation • Interviewers only have general instructions

(only what needs to be gathered, not how) • Collects more exploratory data • Vocabulary is adjusted during the interview • But it needs to be “natural”, which influences the

quality (completeness, objectivity, bias) of the data • Coding the transcripts might be challenging


Semi-structuredInterviews• Between structured and unstructured interviews • Open interviews, but around a specific theme • Discussion points/topics of interests are prepared to

keep the interview on track, but questions can be different from one respondent to another

• List of questions can even be given to respondents before interview


AmountofControlType A B C D

InterviewsConver-sations

Unstruc-tured

Semi-structured

Structured

Topic

Question formulation

Question Sequence

Interviewer-behaviour

AMOUNT OF CONTROL

free fixed fixed fixed

free free free/fixed fixed




FocusGroupsSmall group interviews/discussions led by a trained moderator, who poses very specific questions about a topic (after having already completed considerable research)

ADVANTAGES DISADVANTAGES

• Can be done quickly • Gain multiple perspectives • Flexibility • Rich, cumulative, and elaborative

data • Stimulating respondents (aiding

recall)

• Results dependent on moderator • No generalisation • Difficult to use for sensitive topics • Emerging group culture may

interfere with individual expression, or the group may be dominated by one person

• 'groupthink' is a possible outcome


ONLINEFocusGroupsAdvantages 1. Groups can have tremendous geographic diversity. 2. Travel costs can be virtually eliminated. 3. Recruitment is easier because you do not ask a respondent to spend an evening traveling to, sitting in, and returning from a facility. 4. Mixed groups (on any dimension) are not a problem. 5. Bad weather generally has no effect on a group session. 6. The information recorded is clean, concise, and to the point. 7. Overbearing respondents can be “handled” without disrupting the rest of the group. 8. Concept testing is easy.


CaseStudies✓ Extensive and detailed examination of the unique features of a

case (organisation, location, person, event, phenomenon) ➡ idiographic approach

✓ A systematic process of collecting and analysing information from a limited phenomenon

❖ Case studies deal with: • Questions in contemporary settings, What, How and Why • When the investigator has little control over events • Both quantitative and qualitative methods can be used

✓ Qual. & Quant. methods can be combined. qualitative -> inductive approachquantitative -> deductive approach


CaseStudiesMethods associated: participant observations, unstructured interviews, document analysis, … Generalisability claimed to a certain degree. Types of case

• critical: a clearly specified hypothesis is tested • unique and extreme • revelatory: study of a phenomenon previously inaccessible to

research • representative or typical • longitudinal: over time changes

Multiple case study: extension of the case study design, allowing researchers to compare and contrast the findings from each case. The emphasis is on the unique contexts of the cases.


CaseStudies‣ Not a methodological choice; but a choice

of what is to be studied (interests in individual cases).

‣ Thick description. ‣ Case selection: better study an atypical

case for greater opportunities to learn. ‣ A case has a purpose, can be simple or

complex, and short or long. ‣ The case is singular, but it as

subsections (e.g. production, marketing), groups (e.g. students, parents), occasions (e.g. workdays, holidays), …

‣ The case is a specific, unique "bounded system”: a representation of something.

‣ Both the process of inquiry about the case (the case itself is of interest) and the product of that inquiry (= "case record").

‣ Issues are complex, situated, problematic relationships.

‣ Storytelling: different presentation styles (realistic, impressionistic, confessional, critical, formal, literary or jointly told). The whole story cannot be told, it exceeds anyone's knowing, anyone's telling.

‣ Triangulation reduces the likelihood of misinterpretation: redundancy of data gathering and challenges to explanations.


Surveys➡ A method of collecting primary from a representative

sample of individuals. Snapshot at a given point in time.

• Used to identify characteristics of target markets, measure customer attitudes, describe consumer purchase patterns, determine an organisation's commitment to the environment, etc.

Descriptive research. Quantitative findings. Quick, inexpensive, accurate, flexible.


Surveyexamples

• MARKET DESCRIPTION: Determine the size and relative market share of the market. Provide key information about market growth, competitive positioning and share of market.

• MARKET PROFILING-SEGMENTATION: Identify customers and non-customers, and why they are or are not your customers. Often a descriptive market segmentation and market share analysis.

• STAGE IN THE PURCHASE PROCESS / TRACKING: Where is the customer in the adoption process? Shows market Awareness – Knowledge – Intention – Trial – Purchase – Repurchase of the product.

• CUSTOMER INTENTION - PURCHASE ANALYSIS: Customer motivation to move from interest in the product to actual purchase. Key to understanding customer conversion, commitment and loyalty.

• CUSTOMER ATTITUDES AND EXPECTATIONS: Does the product meet customer expectations? Attitudes formed about the product and/or company. Improve ads, customer conversion, commitment and loyalty.

• CUSTOMER TRUST - LOYALTY – RETENTION ANALYSIS: Depth of consumer attitudes formed about the product and/or company. Especially for high priced consumer goods with long decision and purchase processes.

• NEW PRODUCT CONCEPT ANALYSIS: Appropriate in the initial screening of new product concepts. Likes and dislikes, acceptability and likelihood of purchase are especially useful measures.

• NEW PRODUCT ACCEPTANCE AND DEMAND (CONJOINT ANALYSIS): Estimating demand for new product descriptions, graphics, or prototypes. Yields market share estimates for alternative concept configurations.

• HABITS AND USES: Understanding usage situations, including how, when and where the product is used. May include a real or virtual pantry audit.

• PRODUCT FULFILMENT: Evaluation of promised attribute and feature benefits (both tangible and intangible). Are expectations produced by advertising, packaging, and product appearance fulfilled?

• COMPETITIVE PRODUCT AND MARKET POSITIONING: “Best Practices” study of “How does the market view us relative to the competition?” Compares attributes and benefits of the product.

Source:Qualtrics.com

http://www.qualtrics.com/university/researchsuite/survey-types/market-surveys/market-survey-types


• BRAND EQUITY: What is psychological value that a brand holds in the marketplace? A composite of brand awareness, brand quality, brand associations and brand loyalty measures.

• ADVERTISING VALUE IDENTIFICATION AND ANALYSIS: Mapping the hierarchical attributes, benefits and values associated with and portrayed by an advertisement. Means-end analysis is often part of this type of study.

• ADVERTISING MEDIA AND MESSAGE EFFECTIVENESS: Identifies the impressions, feelings, and effectiveness in moving the respondent to a desired goal (increased awareness, product information, trial, repeat purchase).

• SALES FORCE EFFECTIVENESS: Sales activities, performance and effectiveness in producing the desired and measurable effect or goal. Often measured in a 360 degree survey completed by the sales person, the client (evaluating the sales call) and the supervisor responsible for evaluating the sales person.

• SALES LEAD GENERATION: (1) Timely use and follow-up of sales leads, (2) Qualifying sales leads (thereby saving valuable sales force time) and (3) Providing more effective tracking of sales leads.

• CUSTOMER SERVICE: Focus in detail on the actual customer service that was received, the process involved in receiving that service and the evaluation of the participants in the service process.

• CUSTOMER SERVICE REPRESENTATIVE (CSR) ATTITUDES: Customer Service Representatives hold attitudes that reflect on their job related activities including (1) the allocation of time; (2) solutions to customer needs; (3) how to improve their job; (4) best practices; (5) how well internal departments help customers. Focuses on reducing costs and increasing the quality of customer relationships.

• SALES FORECASTING AND MARKET TRACKING: Expert estimates of the market, judgmental bootstrapping (expert based rules describing how to use available secondary market information), conjoint analysis (estimation of consumer choice preferences), and self-reported intentions to make future purchases.

• PRICE SETTING AND ELASTICITY OF DEMAND ANALYSIS: Estimates of demand elasticity, optimal price points, and prices too low or too high. Estimates for different product-service segments, or usage situations.

Source:Qualtrics.com

Surveyexamples

http://www.qualtrics.com/university/researchsuite/survey-types/market-surveys/market-survey-types


Surveys“Measurewhatismeasurable,

andmakemeasurablewhatisnot.”—Galileo• Measurement: the process of describing some property or a

phenomenon of interest, usually by assigning numbers in a reliable and valid way. The numbers convey information about the property being measured. All measurements contain errors. Researchers must make sure that the measures used, if not perfect, are accurate enough to yield correct conclusions.

• Construct: term used to refer to concepts measured with multiple variables.

• Scales: a device providing a range of values that correspond to different values in a concept being measured.


Surveys• Nominal scales: values are

assigned to an object for identification or classification purposes only (e.g. gender).

• Ordinal scales: rank order allowing things to be arranged based on how much of some concept they possess (grade).

• Interval scales: capture info about differences in quantities of a concept form one observation to the next (IQ).

• Ratio scales: represent absolute quantities; characterized by a meaningful absolute zero (age).


Surveys• Reliability: indicator of a measure's internal consistency. Different attempts

at measuring something should converge on the same result. • Validity: the accuracy of a measure of the extent to which a score truthfully

represents a concept. Basically how a measure assesses the intended concept. • Face validity: a scale's content logically appears to reflect what was

intended to be measured (according to 'experts'). • Content validity: a measure covers the breadth of the domain of interest.

• Criterion validity: the ability of a measure to correlate with other standard measures of similar constructs or established criteria.

• Construct validity: exists when a measure truthfully represents a unique concept.

• Convergent validity: concepts that should be related to one another are in fact related.

• Discriminant validity: uniqueness or distinctiveness of a measure. A scale should not correlate too highly with a measure of a different construct.


Surveys Reliability

Valid

ity


SurveyErrorsRandom sampling error: statistical fluctuation that occurs because of chance variation in the elements selected for a sample. Unavoidable without very large population (> 400). Non-sampling error or bias: caused by the research design, when the results of a sample show a persistent tendency to deviate from the true value of the population parameter.

A. Respondent error: sample bias resulting from some respondents’ action or inaction.

• Nonresponse error: difference between a survey that includes only those who responded, and a perfect survey that would also include those who failed to respond; such as the self-selection bias (only people who are interested by a subject will respond).

• Response bias: respondents (un)consciously answer questions with a certain slant that misrepresents the truth. - Acquiescence bias: (dis)agreeing with questions - Extremity bias: choose only 1 or 10 on a 10-point scale - Interviewer bias: respondents influenced by interviewer's presence - Social desirability bias: caused by respondents' desire to gain

prestige or appear in a different social role


SurveyErrorsB. Administrative error: error caused by the improper administration or

execution of the research task (e.g. confusion, carelessness, neglect, omission). • data-processing error: incorrect data entry or computer

programming, or other procedural errors during the data analysis. • sample selection error: failure to select a representative sample

caused by improper sample design or sampling procedure execution. • interview error: failures (by interviewers) to record responses

correctly. • interviewer cheating (“curb-stoning"): falsification of

questionnaires. ❖ Mere-measurement effect: answering a question about intentions will

increase the likelihood of the underlying behavior—if the behavior is seen as socially desirable (if not: answering the question will decrease the likelihood of the behavior).


SurveystudiesA cross-sectional study samples and collect data from various segments of a population at a single moment in time. Allows investigation of relationships among variables by cross-tabulation. A longitudinal study surveys respondents at multiple points in time to examine continuity of response and to observe changes that occur over time (like a movie). A tracking study uses successive samples to compare trends and identify changes in variables (e.g. consumer satisfaction, brand image). A consumer panel is a survey of the same sample of individuals to record their attitudes, behavior of purchasing habits over time. Total Quality Management (TQM): business philosophy that emphasises market-driven quality as a top organisational priority. Quality conforms to consumers' requirements (not the organisation's).


Door-to-Door&MallIntercept Telephone Mail Internet

Speed Fast Veryfast Slow Instantaneous

Dataquantity Excellent Moderate Good Good

Flexibility Excellent Moderate Poor GoodRespondentcooperation ModeratetoExcellent Good Moderate

(lowifpoordesign) High(forpanels)

Length Long Moderate Varies(dependingonincentive)

Moderate(customizedbasedonanswers)

Non-responserate Low Medium High Canbenone.

Possibilityofmis-

understandingLow Average

High(nointerviewerpresentforclarification)

High

Interviewer’sinfluence High Moderate None None

Anonymity Low Moderate High Eitheror

Follow-up Difficult Easy Easy(buttimely) Difficult(unlessemailknown)

Cost Highest Moderate Low Lowest

Specialfeatures

Visualmaterialscanbeshownorproductstested;extendedprobingpossible

Fieldworksimplified;adaptabletocomputer

technology

Respondentsansweratownconvenience (=timetoreflect)

Possibletoshowmedia;useofgraphics

andanimations


Facebook• cheap! • W.E.I.R.D. • younger and more educated than general population • snowball sampling can reach many respondents • profile data can be captured


Experiments๏ Natural: only intervene to measure results

– keep it as organic as possible. ๏ Controlled: manipulate at least one causal variable, and randomly

assign subjects to control groups and experimental groups to measure the effects of the manipulation. – Laboratory experiment: greater influence over arrangements; more

straightforward to replicate (less difficult to reproduce specific settings); but external and ecological validity are difficult to establish.

– Quasi-experiments: certain characteristics of experimental designs but do not fulfil all internal validity requirements; no control group; no artificial interventions in social life; strong ecological validity.

Online • Enhancing survey content: graphics, audio, video and interactive experiences • Dynamic questions through “piping”, skip logic, branching, looping, control, etc.


ExperimentsResearch question: not exploratory.Clear, simple, few hypotheses.Few variables involved in each hypothesis.

• Independent Variables (or factors, conditions, treatments) Manipulated and administered to participants (categorical) Measured (continuous)—correlational studies or quasi- experiments

• Dependent Variables (or response variables) Measure participants’ responses after the treatment administration (categorical, continuous, thought-protocols, behavioural, physiological)

• Extraneous Variables (or undesirable variables) Not manipulated in the study, but can still have an effect.


Experiments- Internal validity: the control group eliminates threats of testing (the

'experimenter effect'), history (control of occurring events), maturation (people's change), selection (random process: no difference between groups), and ambiguity about the direction of causal influence.

- Threats to external validity are the interactions of selection (social and psychological groups) and treatment (e.g. men and leadership); setting and treatment (e.g. geographical settings); history and treatment (past and future generalisation); interaction effects of pre-testing (sensitiveness to the exp. treatment); and reactive effects of experimental arrangements (awareness of being part of an experiment).

- Environmental validity is better ensured when conducting field experiments (compared with lab. exp.).

- Replicability threats lay in the data collection procedure and the methods of analysis.


You can't buy what you can't see: Retailer practices to increase thegreen premium

Hugo Guyader n, Mikael Ottosson, Lars WitellDivision of Business Administration, Department of Management and Engineering, Linköping University, SE-581 83 Linköping, Sweden

a r t i c l e i n f o

Article history:Received 16 November 2014Received in revised form16 October 2015Accepted 10 May 2016

Keywords:Eye-trackingGreen marketingIn-store marketingShopping behaviorVisual attention

a b s t r a c t

Retailers are the gatekeepers between consumers and eco-friendly products. As such, they can influencegreen shopping behavior. The results of an eye-tracking experiment show that retailers can attractconsumers’ visual attention and increase the green premium through various practices such as providingrelevant information, orienting consumers inside the store, and offering an eco-friendly product as-sortment. Managerial implications are to use green-colored price tags to signal eco-friendly products,while avoiding greenwashing practices that can distract consumers from finding the eco-friendly pro-ducts they look for.

& 2016 Elsevier Ltd. All rights reserved.

1. Introduction

Today, a growing share of consumers wish to reward businessesthat are sustainable (Goldstein et al., 2008; Griskevicius et al.,2010; Tsarenko et al., 2013). These consumers are conscious of theconsequences of their consumption, and if they can, they will buyeco-friendly or fair-trade groceries. That is, consumers signal anddemonstrate green attitudes through their shopping behavior:They are willing to pay more for eco-friendly products (Kotler,2011; Laroche et al., 2001; Nielsen, 2011). These eco-friendlyproducts may be organic or manufactured from fewer natural re-sources and with social and ethical respect towards the labor force,requiring less energy during usage, and may be recycled. As a re-sult, eco-friendly products are often more expensive for con-sumers. But from a value-based pricing perspective, such productsalso can be premium-priced “[…] because they have added valueby being green, that is, it is not simply the added costs” (Simms,1992, p. 39).

The “green premium,” the price difference between classic andeco-friendly products, represents potential revenue for retailers(Luehr, 1992), and 77 percent of consumers state they are willingto pay such a premium (European Commission, 2013). However,eco-friendly products account for less than 4 percent of marketshare worldwide, especially in food retailing (Chkanikova et al.,2013). Indeed, consumers perceive eco-friendly products as

ineffective (Luchs et al., 2010), judge the environmental attributesas not central to the product function (Gershoff and Frels, 2015), orsimply place a stronger emphasis on the product price than onsustainability (Meise et al., 2014). Some consumers also do nottrust these environmental attributes to be true (Gleim et al., 2013).

Retailers play a key role in sustainability initiatives because oftheir proximity to the consumers, who make 82 percent of theirpurchase decisions inside the store (POPAI, 2014). Retailers act asgatekeepers who have power to introduce sustainability into thevalue chain (Chkanikova et al., 2013). Since Walmart introduced itssustainability index throughout its supply chain in 2008, otherretailers have adopted some of its best practices. For instance,retailers can add brands that are eco-friendly to the product as-sortment. By increasing the market share of eco-friendly products,retailers can achieve significant economies of scale and leverageincremental profits (RILA, 2012). Consumers generally trust theperformance of well-known brands, which is why such brands canbe used to successfully introduce eco-friendly products (Pickett-Baker and Ozaki, 2008). Research also has shown that retailers caninfluence consumers' green shopping behavior by informing con-sumers inside the store through point-of-purchase (PoP) in-formation displays and other components in the physical storeenvironment (Gleim et al., 2013; Laroche et al., 2001; Lin andHuang, 2012; Litvine and Wüstenhagen, 2011; Mejri et al., 2012;Meise et al., 2014; Tsarenko et al., 2013). In this paper, we arguethat retailers play a key role in influencing consumers to buy eco-friendly products, and inducing them to pay a higher greenpremium.

Contents lists available at ScienceDirect

journal homepage: www.elsevier.com/locate/jretconser

Journal of Retailing and Consumer Services

http://dx.doi.org/10.1016/j.jretconser.2016.07.0080969-6989/& 2016 Elsevier Ltd. All rights reserved.

n Corresponding author.E-mail address: [email protected] (H. Guyader).

Please cite this article as: Guyader, H., et al., You can't buy what you can't see: Retailer practices to increase the green premium. Journalof Retailing and Consumer Services (2016), http://dx.doi.org/10.1016/j.jretconser.2016.07.008i

Journal of Retailing and Consumer Services ∎ (∎∎∎∎) ∎∎∎–∎∎∎

http://dx.doi.org/10.1016/j.jretconser.2016.07.008

Guyader, Ottosson, & Witell (JRCS 2016)

http://dx.doi.org/10.1016/j.jretconser.2016.07.008


EyeTrackingExperimentConvenience supermarket mock-up.5 shelves: tomato sauce, kidney beans, coffee and softeners. 3 product alternatives: classic, ecological, or fair-trade. Different variables: brand, price, packaging colors, labels, information displays, décor, etc.


PurposeStudy the impact of in-store information, green price tags and greenwashing product assortment on the shopping behaviour of supermarket customers. Objective: offer a normal shopping experience, but with a green servicescape (= items evoking countryside/agriculture were displayed around the shelves). 2 experimental conditions: - control group (46%)- treatment group (54%) — “The person you do the shopping for is actually sustainable-oriented and prefer to eat organic food” (= representative of “deep green” consumers who genuinely search for green products).


http://youtu.be/Mm0g8mVHffE

control group primed group

Fixation Time Average [ms]

0 20001000

Heat Maps

Results-GreenPriceTags

control group primed group

Fixation Time Average [ms]

0 20001000

Results-Greenwashing

Heat Maps


Findings✓ Retailers are the gatekeepers between consumers and eco-

friendly products. They can influence green consumer behavior.

➡ Retailers can attract consumers’ visual attention and increase the sales of eco-friendly products through various practices: ✤ influencing consumers’ intentions to make green purchases, ✤ providing relevant information, ✤ orienting consumers inside the store, and ✤ offering an eco-friendly product assortment.

Managerial implications: ✤ use green price tags to signal eco-friendly products to consumers, ✤ avoid greenwashing practices (such as display of products with

misleading packaging) that can distract consumers from finding the eco-friendly products they look for.


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Emailmeyourquestionsaboutthelecture!

Hugo [email protected]

Creditimages:TheNounProject