Consumer Research

Consumer Research

Consumer Research Paradigms

Quantitative Research

Qualitative Research

Quantitative Research

• Enables marketers to “predict” consumer behavior.

• This research approach is known as - Positivism

• Research methods include experiments, survey techniques, and observation.

• Findings are descriptive, empirical and generalizable.

PositivismPositivism

A consumer behavior research approach that regards the consumer

behavior discipline as an applied marketing science.

Its main focus is on consumer decision making.

Eg. Test-marketing of Instant curd

Qualitative Research

• Consists of depth interviews, focus groups, metaphor analysis, and projective techniques.

• Also called – ‘Interpretivism’.• Administered by highly trained interviewer-

analysts.• Findings tend to be subjective.• Findings not usually generalizable• Small sample sizes.

InterpretivismInterpretivism

A postmodernist approach to the study of consumer

behavior that focuses on the act of consuming rather than

on the act of buying.

Eg. Focus-group interviews of mothers for some baby

food/cereal

Depth Depth InterviewsInterviews

A lengthy and relatively unstructured interview designed to uncover a consumer’s underlying

attitudes and/or motivations.

Table 2.1 Comparisons between Positivism and Interpretivism

PURPOSE

METHODOLOGY

PositivismPositivism

Prediction of consumer actions

InterpretivismInterpretivism

Understanding consumption practices

PositivismPositivism

Quantitative

InterpretivismInterpretivism

Qualitative

Combining Qualitative and Quantitative Research Findings

• The research paradigms are complementary in nature.

• Produce a richer and more robust profile of consumer behavior than either research approach used alone.

The Consumer Research Process

• The six major steps in the consumer research process are:– 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

Figure 2.2 The Consumer Research Process

Develop Objectives

Collect Secondary Data

Design 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

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.

Secondary Secondary DataData

Data that has been collected for reasons other than the

specific research project at hand.

Collecting Secondary Data

• Secondary information is any data originally generated for some purpose other than the present research objectives.

• Provides clues and direction for the design of primary research.

Primary Primary ResearchResearch

Original research undertaken by individual researchers or

organizations to meet specific objectives.

Collected information is called Primary Data.

Designing Primary Research

• Quantitative studies more likely for collecting descriptive information.

• Qualitative studies may be used to get new ideas.

Quantitative Research Designs

Method

Sample Design

Data Collection Instrument

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.

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.

Surveys

Personal Interview

Mail

Telephone

Online

Table 2.3 Comparative Advantages of Mail, Telephone, and Personal Interview Surveys

MAIL TELEPHONE PERSONAL INTERVIEW ON-LINE

Cost Low Moderate High LowSpeed Slow Immediate Slow FastResponse rate Low Moderate High Self-

selectionGeographic flexibility Excellent Good Difficult Excellent

Interviewer bias N/A Moderate Problematic N/A

Interviewer supervision N/A Easy Difficult N/A

Quality of response Limited Limited Excellent Good

Data Collection Instruments

Questionnaires

Attitude Scales

Personal Inventories

Discussion Guides

ValidityValidity

The degree to which a measurement instrument

accurately reflects what it is designed to measure.

ReliabilityReliability

The degree to which a measurement instrument is

consistent in what it measures.

Questionnaires

• Used primarily for quantitative research.• Can be sent in the mail, or administered by

interviewers in person or by telephone.• Can be disguised or undisguised as to its true

purpose.• Questions can be open-ended or closed-ended.

Personal Inventories

• Presents a series of statements to which respondents indicate their degree of agreement or disagreement.

• An inventory presents a list of statements, while a questionnaire asks a series of questions.

Attitude Scales

• The three most frequently used scales are: – 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.

Figure 2.3 Example of a Likert ScalePlease place the number that best indicates how strongly you agree or disagree with each of the following statements about shopping on-line in the space to the left of the statement.

1 = Agree Strongly2 = Agree3 = Neither Agree or Disagree4 = Disagree5 = Disagree Strongly

_____ a. It is fun to shop online._____ b. Products often cost more on-line than they are worth._____ c. It is a good way to find out about new products._____ d. I’m afraid to give out my credit card number on-line._____ e. I can shop whenever I want--even at 2 o’clock in the morning._____ f. Some Web sites really encourage you to browse._____ g. It’s easy to compare different makes and models of products on-line.

Neither

Good infrastructure

Premier Image

BK School has…

: : : : : :

: : : : : :

Bright students : : : : : :

Extremely Extremely

Dull students

Poor infrastructure

Worst Image

SEMANTIC-DIFFERENTIAL SCALE

Neither

Not Trustworthy

Relevant News

Fun to Read

The Times of India…

: : : : : :

: : : : : :

Well Written : : : : : :

: : : : : :

Extremely Extremely

Trustworthy

Poorly Written

Irrelevant News

Boring to Read

SEMANTIC-DIFFERENTIAL SCALE

Neither

Not Trustworthy

Relevant

Enjoyable to Read

TOI Vs Business Standard

: : : : : :

: : : : : :

Well Written : : : : : :

: : : : : :

Extremely Extremely

Trustworthy

Poorly Written

Irrelevant

Boring to Read

Snake Diagram

TOI Business Standard

Figure 2.5 Rank-Order Scales

A. Please rank the following brands of Television by placing a 1 in front of the brand you think is best, a 2 alongside the second best, and continuing until you have ranked all six brands.

_____ LG _____ Onida_____ Samsung _____ Panasonic_____ Sony _____ Sansui

Qualitative Data Collection Methods

Depth Depth InterviewsInterviews

Projective Projective TechniquesTechniques

FocusFocusGroupsGroups

Metaphor Metaphor AnalysisAnalysis

Depth Interviews

• A lengthy non structured interview between a respondent and a highly trained interviewer.

• Interviewer minimizes his or her own participation after establishing the general subject matter.

• Can provide marketers with valuable ideas about product design and provide insights for positioning or repositioning the product.

Focus GroupFocus Group

A qualitative research method in which about eight to ten persons participate in

an unstructured group interview about a product or

service concept.

Focus Groups

• Consists of 8 to 10 respondents who meet with a moderator-analyst for a focused group discussion.

• Respondents encouraged to discuss their interests, attitudes, reactions, motives, lifestyles, feelings about the product or product category, usage experience, etc.

• Respondents recruited on the basis of consumer profiles, based on specifications defined by marketing management.

Focus Groups

Concept testing Product use/meaning Pre-Survey development Exploring complaints

When:

Limitations:

Tips:

Dominant participants must be “managed” Risk of ineffective moderator Cannot make generalizations/inferences

Hire a well-trained facilitator Recruit participants based on key similarities Conduct at least two groups, 8-10 members each Don’t pay until finished!

Figure 2.6 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 selecting a cellular service? (Probe)

Examples of Probe questions:a. Tell me more about that...b. Share your thinking on this…c. Does anyone see it differently...

Projective Projective TechniquesTechniques

Research procedures designed to identify

consumers’ subconscious feelings and motivations. These tests often require consumers to interpret

ambiguous stimuli such as incomplete sentences, cartoons, or inkblots.

Projective Techniques

• Consist of a variety of disguised “tests” that contain ambiguous stimuli.

• Sometimes administered as part of a focus group, but usually used with depth interviews.

Word Association

• Which cigarette brand comes to your mind when you hear the following words?

Mild-----Strong----

Sentence completion

A person who shops at Pantaloons is….

Coca-cola is most liked by_________________________ 

When I think of shopping in a department store, I ________

Picture Test

Let’s see if we can pick up some house wares at Big

Bazaar

Big BazaarBig Bazaar

TAT

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 that drive consumer thinking and behavior.

Sampling Plan Decisions

Whom to survey?

How many?

How toselect them?

Table 2.4 Probability and Nonprobability Sampling Designs

PROBABILITY SAMPLESPROBABILITY SAMPLES

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 2.4 continued

NONPROBABILITY SAMPLESNONPROBABILITY SAMPLES

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).

Analysis

• Qualitative Research: Moderator or test administrator usually analyzes responses.

• Quantitative Research: Researcher supervises the analysis.– Open-ended responses are coded and

quantified– Responses are tabulated and analyzed

Conducting A Research Study

• Researchers often adapt the research process to the special needs of the study.

• Together with the marketing manager, the researcher specifies the parameters of the population to be studied.

• A qualitative study might be undertaken first to gather information about the target population's attitudes and concerns about certain items.

• Then a quantitative study may be conducted to confirm and attach “hard” numbers to the findings.

Customer satisfaction measurement

• Customer satisfaction surveys• Mystery shoppers• Complaint analysis• Suggestion systems

Ethics in Consumer Research

• Biased samples• Biased questions• Predetermined conclusion• Manipulating statistical analyses• Ignoring relevant information• Mistreating respondents• Sales pitches from telemarketers• Not maintaining confidentiality

Exercise 1

• A manufacturer of a new product for whitening teeth would like to investigate the effects of package design and label information on consumers’ perceptions of the product and their intentions to buy it.

Would you advise the manufacturer to use observational research, experimentation or survey? Explain your choice.

Exercise 2

• A consumer who rarely listens to music played on a portable device has purchased , on impulse and for Rs. 5000/- , a pair of sunglasses with built-in earphones and the capability of playing MP3 files.

Would the positivist or interpretivist research paradigm be a more appropriate way to study consumer behaviour? Explain your answer.