CB Notes Chapter 2-The consumer research process PDF

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The consumer research process...

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CHAPTER 2 The Consumer Research Process

LEARNING OBJECTIVES After studying this chapter students should be able to understand: 1. The importance of consumer research for firms and their brands, as well as consumers. 2. The steps in the consumer research process. 3. The importance of establishing specific research objectives as the first step in the design of a consumer research project. 4. The purposes and types of secondary consumer research that is available for making decisions or planning future consumer research. 5. Specific features and applications of different research methods to be carried out in consumer research studies. 6. Where data analysis and reporting of findings fit in the research process. 7. How each element of the consumer research process adds to the overall outcome of the research study.

CHAPTER SUMMARY The field of consumer research developed in part as an extension of the applied field of marketing research and as part of the scholarly interests of academicians pursuing a more basis understanding of consumers. In both cases, the goals have been to enlarge the understanding of consumers. However, there are differences in motivation carrying out consumer research. Specifically, marketing practitioners have concentrated on the practical application of predicting how consumers will react in the marketplace, and to understand the reasons that drive consumers to make the purchase decisions they do. In contrast, academic consumer researchers tend to be more concerned with advancing the basic knowledge and principles that are associated with consumers’ behaviors. Consumer research can also be divided in terms of a qualitative or quantitative perspective. In this chapter we have considered both, because in reality there is a great amount of both qualitative and quantitative consumer research being conducted by both practitioners and academic consumer researchers. This chapter was guided by the consumer research process (set out in Figure 2.2 )—whether quantitative or qualitative in approach—it consisted of six steps: defining objectives, collecting secondary data, developing a research design, collecting primary data, analyzing the data, and preparing a report of the findings. The research objectives should be formulated jointly by the marketer and the person or company that will conduct the actual research. Findings from secondary data and exploratory research are used to refine the research objectives. The collection dary data includes both internal and external sources. Qualitative research design he use of focus groups and depth interviews. A variety of different tools in preparing

for qualitative research, including screener questionnaires and discussion guides, were described and illustrated. So were various specialized qualitative methodologies—most notably, metaphor analysis, in particular the Zaltman Metaphor Elicitation Techniques (ZMET), and the looking-in method, one of a series of methodologies for obtaining valuable research from readily available online investigations. Alternatively, quantitative research designs consist of observation, experimentation, or surveys, and, for the most part, questionnaires (that often include attitude scales) are used to collect the data. Again, we illustrated the application of quantitative consumer studies. In particular, we considered the selection and design of the sample, and why it is crucial (since the type of sample used determines the degree to which the results of the study are representative of the population). Following the data collection, the results are analyzed and specific analytic techniques applied respectively to qualitative or quantitative data. Consumer researchers must also observe specific ethical guidelines to ensure the integrity of their studies and the privacy of respondents.

CHAPTER OUTLINE INTRODUCTION 1. The preparation, use, and wide scale availability of large amounts of consumer research is a critical force in advancing the discipline of consumer behavior. 2. The discipline is dedicated to building a body of knowledge and understanding as to what makes consumer tick, and how marketers can better satisfy consumers’ needs and wants. 3. Consumer carry-out many different kinds of consumer research projects such as depth interviews, focus groups, telephone surveys or mall intercepts. 4. Research is used to develop marketing messages or to establish which product features are most important to consumers. 5. This chapter is dedicated to setting out the methodological research issues for planning and carrying out consumer research studies.

IMPERATIVE TO CONDUCT CONSUMER RESEARCH    

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The field of consumer research, in part, has developed as an extension of the field of marketing research. It has been impacted by the academicians and research practitioners of psychology, sociology, and anthropology. Studying consumer behavior enables marketers to predict or anticipate how marketers might meet consumer needs through products and messages. Marketing practitioners also realise that the more they know about their target consumers’ decisionmaking process, they more likely they are to design marketing strategies and promotionaly messages that will be atractive and favouraby influence their target consumers. There is in increasing challenge of knowing and satisfying needs as companies become more global RVIEW OF THE CONSUMER RESEARCH PROCESS

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This chapter examines the major steps in the consumer research process. Explored will be: a. Secondary information. b. Primary research. c. Qualitative research. d. Quantitative research . The discussion of the research process is organized into six steps: a. Defining the objectives of the research. b. Collecting and evaluating secondary data. c. Designing a primary research study. d. Collecting primary data. e. Analyzing the data. f. Preparing a report of the findings.

DEVELOPING RESEARCH OBJECTIVES   

The first and most difficult step in the consumer research process is to accurately define the objectives of the research. A carefully thought-out,written statement of research objectives helps to insure that the information needed is secured and costly errors avoided. Often before a quantitative study is conducted, researcher conduct a small-scale exploratory study.

COLLECTING SECONDARY DATA  

The second step in the consumer research process is to search for secondary data. Secondary data is already existing information that was originally gathered for a research purpose other than the present research.

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The rationale for secondary data searches is simply that it makes good sense to investigate whether currently available data information will answer, in part or in full, the research question at hand. Secondary consumer-related data can be searched from either internal sources within the organization or from external sources.

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Secondary Data ernal secondary could consist of previously collected in-house information that was ginally used for some other purpose.  Increasingly, companies use internal secondary data to compute customer lifetime value profiles for various customer segments. a. These profiles include customer acquisition costs, the profits generated from individual sales to each customer, the costs of handling customers and their orders, and the expected duration of the relationship. External Secondary Data

This type of secondary data comes from sources outside of the firm or organization. This data can take many different forms. Some are free and can be found in a public library, other information is available for only a nominal fee, whereas still other data or information is quite expensive to secure.  Following is a brief discussion of some specific types of consumer behavior secondary information available from outside of the firm: a) Public and Government Secondary Data. i) This data is generally made available for a nominal cost. ii) The federal government publishes information collected by scores of government agencies about the economy, business, and demographics of the U.S. population. iii) State and local government also provide consumer research. b) Periodicals and Articles Available from Online Search Services. i) Business-relevant secondary data from periodicals, newspapers, and books are readily accessible via a variety of online search engines such as ProQuest and LexisNexis. c) Syndicated Commercial Marketing and Media Research Services. i) Marketing research companies sell data to subscribing marketers. ii) Secondary data is also provided by companies that routinely monitor a particular consumption-related behavior, and sell their data to marketing companies who use the insights to make more informed strategic decision. iii) New technologies provide opportunities for far more sophisticated monitoring techniques. iv) Some companies are seeking out technology that might provide an advancement or possible breakthrough in terms of portable metering devices. v) Monitoring the media exposure of almost all consumers via digital cable set-top boxes is a new technology. vi) The digital boxes can easily record all the programs that consumers are turned into including channel surfing, attempts at avoiding commercial breaks, and recordings for later viewing. vii) The influence of new technologies will increasingly enable marketers to study consumers’ media exposure much more precisely and collect data that will allow them to better customize or narrowcast their promotional messages, thus spending their advertising dollars more effectively.  

ird Party Panels. For many years, marketers have purchased data from secondary data providers who collected consumer behavior data from household or family consumer panels. ii) Members of these panels are paid for recording their purchases and/or media viewing habits in diaries that are then combined with thousands of households and analyzed by the data providers. iii) Today, online technology enables panel research companies to increasingly collect sophisticated data from respondents. iv) Obtaining secondary data before engaging in primary research offers the advantages of providing a solution to the research problem and eliminating the need for primary research altogether. v) Secondary research has some limitations.

DESIGNING PRIMARY RESEARCH   

If the purpose of research is to get new ideas, then a qualitative study is often undertaken. If descriptive and quantitative information is sought, then some form of quantitative study is usually performed. The approach for each differs in terms of methods of data collection, sample design, and type of data collection instruments.

Designing and Conducting Qualitative Research 

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Current qualitative research grew out of the rejection of the belief that consumer marketing was simply applied economics, that consumers were rational decision makers who objectively evaluated the good s and services available to them and selected those that gave them the highest utility (satisfaction) at the lowest cost. Most forms of qualitative research questioning have their roots in open-ended and freeresponse types of questioning. The key types of interviews conducted for qualitative studies are depth interviews and/or focus group sessions.

 In-Depth Interviews.  A depth interview, also referred to as a “one-on-one” interview is a somewhat

lengthy nonstructured interview (20-60 minutes) between a single respondent and a highly trained researcher.     

The interviewer minimises his or her own talking, giving the consumer time to express thoughts and behaviors and to respond to verbal and visual materials. The research must establish an atmosphere to encourage the consumer to open up in order to provide valuable insights. The role of the researcher is to probes for responses by encouraging the person to talk freely about the products category and/or brand under study. Audiotapes, videotapes, or transcriptions provide a means for the researcher and the clients to have a permanent recording of each interview. Depth interview studies provide marketers with ideas about product design or redesign, and provide insights for positioning or repositioning products.

 Focus groups.  A “discussion group” or focus group often consists of 8 to 10 participants who meet   

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with a moderator-researcher-analyst to explore a particular product or product category. Participants are encouraged to discuss their reactions to product and service concepts, or new advertising or marketing communications campaigns. Respondents are recruited on the basis of a carefully drawn consumer profile that is prepared in the form of a questionnaire called a screener questionnaire. The purpose of the “screener” is to ensure that the appropriate individuals are invited to participate in the research study, and those who are not the target market are not invited. Some marketers prefer focus groups because they feel that the dynamic interaction

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between participants that takes place in focus groups tends to yield a greater number of new ideas and insights than depth interview. It takes less time to complete a series of focus groups than a project of individual depth interviews. (Lasts about 2 hours) Always taped or video-taped to assist analysis. Often in froNt of 1 way mirrors that enable marketers to observe the sessions without disrupting or inhibiting the responses.

 Discussion Guides 

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A discussion guide is a step-by-step outline that sets out the line of questioning that the researcher needs to cover with the respondent in a depth interview, or a group of respondents in the case of a focus group session. Some researchers prefer to closely follow the guide while others “go with the flow.” Some researchers will finish with often more information than anticipated. The experise is in the ability to improvise depending on the circumstances of the interview.

 Projective Techniques  Projective techniques are a useful tool, adapted for studying the unconscious

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associations of consumers who may be concealing or suppressing some of their thoughts or reactions. Projective exercises consist of a variety of disguised “test that contain ambiguous stimuli.

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Some of the well established exercise used to “tease-out” true consumer-related feelings and reflections are: (1) Word associations. (2) Sentence completions. (3) Photo/visuals for storytelling. (4) Role playing.

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They are all designed to make it easier for consumers to express themselves and reveal their motivations

 Metaphor Analysis.  The use of one form of expression to describe or represent feelings about another is  

called a metaphor. A number of consumer theorists have come to believe that people use metaphors as the most basic method of thought and communication. The Zaltman Metaphor Elicitation Technique (ZMET) – the first patented marketing research tool in the United states-relies on images to assess consumer’s deep and subconscious thoughts about products, services, and marketing strategies.

 Looking-In’ (Online) Research.  A recently proposed approach to qualitative research called looking-in, describes and

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illustrates the uses of a methodology designed to capture consumers’ experiences, opinions, forecasts, and most important, these involved consumers’ “wish list” of sought-out features that they are hoping will be included in new models of products. To conduct looking-in research, researchers perform a key phrase search of the stored threads and related internet postings.

Designing And Conducting Quantitative Research 1. The broad category of quantitative research includes experimentation, survey techniques and observation. 2. The findings are descriptive, empirical, and, if collected randomly, can be generalized to larger populations. a) Observational research is an important research tool because marketers recognize that often the best way to gain an in-depth understanding of the relationship between people and products is by watching them in the process of buying and/or using the products. i) Observing consumers in action enables researcher to comprehend what the product symbolizes to a consumer and provides greater insight into the bond between people and products that is the essence of brand loyalty. ii) It is also important in uncovering issues or problems with a product. iii) Consumers are generally either watched by researchers or mechanical or electronic devices such as counting or video recording devices are used to capture customers’ behaviors or responses to a particular marketing stimulus. iv) Marketers also use physiological observation devices that monitor respondents’ patterns of information processing.

b) Experimentation. i) There are a variety of different experimental designs that a researcher needs to select from in formulating a particular consumer-related experiment. ii) In the simplest form of experiments (causal research), only one variable is manipulated (called the independent variable) while all other elements are kept constant. iii) A controlled experiment of this type ensures that any difference in the outcome (the dependent variable) is due to different treatments of the variable under study and not to extraneous factors. iv) A major application of causal research is test marketing, a logical next step after conducting depth interviews, focus groups, and survey research and prior to committing to a full-scale marketing rollout. V) Experimenation can be conducted in laboratories or in the field

c) Survey Research. i) Following is a list of types of survey research. Table 2.2 lists advantages and disadvantages of each. (1) Personal interview. (2) Telephone interview. (3) Mail surveys. (4) E-mail surveys. (a) There has been a rapid increase in the number of consumers who are interested in participating in online or Internet-based surveys.

60 Quantitative Research Data Collection Instruments 1. Data collection instruments are developed as part of a study’s total research design to systematize the collection of data and to ensure that all respondents are asked the same questions in the same order. 2. Data collection instruments include questionnaires, personal inventories, and attitude scales. 3. A study is said to have validity if it does, in fact, collect the appropriate data needed to answer the questions or objectives stated in the first stage of the research process. 4. A study is said to have reliability if the same questions, asked of a similar sample, produce the same findings.

a) Questionnaires are the primary data collection instrument for q research. i) The questionnaire can be sent through the mail or online to selected respondents for self-administration or can be administered by field interviewers in person or by telephone. ii) The questionnaire can be disguised or undisguised as to its true purpose. iii) Questions can be open-ended or closed-ended. iv) Wording the questions represents the biggest challenge in constructing questionnaires. v) One form of consumer survey is a magazine readership survey. (1) A standard use of data secured from this type of survey is preparation of a profile of a publication’s readers so that potential advertisers can determine whether the publication delivers the audience that is most likely to positively respond to their advertising.

b) Attitude scales are often used to capture evaluative data. i) Researchers often present respondents with a list of products or product attributes for which they are asked to indicate their relative feelings or evaluations. ii) The most frequently used attitude scales are Likert scales, semantic differential scales, behavior intention scales, and rank-order scales. (1) The Likert scale is the most popular form of ...