Modul E2: Role of Research in Understanding Consumer Behaviour

Modul
e2
Role of Research in
understanding
Consumer Behaviour
Consumer Research
It is a Part of market research in which

the preferences, motivations, and
buying behavior of the targeted
customer are identified through direct
observation, mail surveys, telephone
or face to face interviews, and from
published sources (such as
demographic data & others).
05/01/15
CB- SCHIFFMAN & KANUK
Importance of Consumer
research
Consumer Research enables marketers to predict how consumers

will react to promotional messages and to understand why they
make the purchase decisions
Marketers realize that the more they know about their target
consumers decision making process, the more likely they are to
design marketing strategies and promotional messages that will
favorably influence these consumers
Consumer Research enables marketers to study and understand

consumers needs and wants ,and how they make consumption
decisions.
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Quantitative Research
Descriptive in nature.
Enables marketers to predict consumer
behavior.
Research methods include experiments,
survey techniques, and observation.
Findings are descriptive, empirical and
generalizable.
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Qualitative Research
Consists of depth interviews, focus groups,
metaphor analysis, and projective
techniques.
Administered by highly trained
interviewer-analysts.
Findings tend to be subjective.
Small sample sizes.
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Comparison between Quantitative and

Qualitative research
1.
2.
Study purpose: Studies designed to provide
insights about new product ideas and
positioning strategies. Ideas uncovered
should be tested via quantitative studies.
Type of questions and data collection

methods: Open-ended ,unstructured
questions and further probing by the
interviewer. Projective techniques include
disguised questions where the respondents
do not know the true purpose of the
questions and are asked to freely respond to
stimuli such as words or pictures. Depth
interviews and focus groups are used
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1.
2.
Quantitative research
Studies aimed at describing a target market its
characteristics and possible reactions of various
segments to the elements of the marketing mix.
Results are used for making strategic marketing
decisions
Closed ended questions with predefined

possible responses and open ended questions
that have to be coded numerically. Most
questionnaires include attitude scales and,
generally the questions are not disguised.
Questionnaires are used in surveys conducted in
person, by phone or mail, or online.
Observation of respondents is also used.
Comparison between Quantitative and

3.
4.
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Sampling methods: Small,

nonprobability samples; the
findings are generally not
representative of the universe
under study
Data analysis: Data collected are

analyzed by the researchers who have
collected it and who have expertise in
the behavioral sciences
3.
Large ,probability samples. Providing that

the data collection instruments are valid and
reliable, the results can be viewed as
representative of the universe.
4.
The data is collected by a field force

retained by the researcher, and then
coded ,tabulated, and entered into the
database. The researcher analyses the
data by using objective, standardised
statistical methods consisting mainly of
comparisons of averages among the
predefined variables and significance
tests that estimate the extent to which
the results represent the universe.
The Consumer Research

Process
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
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Figure 2.1 The Consumer Research Process

Develop Objectives
Collect Secondary Data
Design Qualitative Research
Method
Screener questionnaire
Discussion guide
Design Quantitative Research

Method
Sample design
Data collection instrument
Conduct Research
(Using highly trained
interviewers)
Collect Primary Data

(Usually by field staff)
Analyze Data
(Subjective)
Exploratory
Study
Prepare Report
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Analyze Data
(Objective)
Prepare report
1.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.
E.g.- If the purpose of the study is too come up with new ideas for products or
promotional campaigns, then a qualitative study is usually undertaken, in
which respondents spend a significant amount of time face-to-face with a
highly trained professional interviewer-analyst who also does the analysis.
If the purpose is to find out how many people in the population use certain
products & how frequently they use them, then a quantitative study that is
undertaken.
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10
2.collecting and evaluating

secondary data
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Secondary data: data that has been

collected for reasons other than the
specific research project at hand
11
Table 2.2 Major Sources of

Secondary Data
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Government
Publications
Periodicals
&
Books
Internal
Sources
Commercial
Data
12
3.Designing primary research
Primary data: data collected by the researcher for the

purpose of meeting specific objectives
The selection of a research design depends on the

purposes of the study. If a marketer needs descriptive
information, then a quantitative research study is called
for, but if the purpose is to generate new ideas, then a
qualitative study is appropriate.
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Quantitative research design

Data Collection Methods
Observation
Experimentation
Surveys
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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.
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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.
E.g.- To determine whether the size of a magazine ad effects readers

attention, the size of the ad might be changed, keeping the other
variables such as message/appeal & the colour of the ad constant so
that they would not influence the results.
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16
Survey Data Collection

Methods
Personal Interview
Mail
Telephone
Online
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Table 2.4 Comparative Advantages

Cost
Speed
Response
rate
Geographic
flexibility
Interviewer
bias
Interviewer
supervision
Quality of
response
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MAIL
TELEPHONE
Low
Slow
Moderate
Immediate
PERSONAL
INTERVIEW
High
Slow
Low
Moderate
High
Excellent
Good
Difficult
Excellent
N/A
Moderate
Problematic
N/A
N/A
Easy
Difficult
N/A
Limited
Limited
Excellent
Excellent
ONLINE
Low
Fast
Selfselection
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Data collection instrument should have
Validity
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The degree to which

a measurement
instrument
accurately reflects
what it is designed to
measure.
19
Reliability
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The degree to which a

measurement
instrument is
consistent in what it
measures.
20
Quantitative research data

collection instrument
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21
Attitude Scales
Likert scales: easy for researchers to prepare and

interpret, and simple for consumers to answer.
Semantic differential scales: relatively easy to

construct and administer . It consists of a pair of bipolar
pair adjectives (such as good/bad, like/dislike) or antonym
phrases at both ends of the scale with response options
spaced in between five or seven points
Rank-order scales: subjects rank items in order of

preference in terms of some criteria.
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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.
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Excellent
Neutral
Poor
Figure 2.4 Semantic Differential Profiles

of Three Pay-Per-Movie Services
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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
_____ Dell
_____ Compaq
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_____Hewlett Packard
_____ Gateway
_____ NEC
25
Qualitative Data Collection

Methods
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Depth
Interviews
Focus
Groups
Projective
Techniques
Metaphor
Analysis
26
Focus Group
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A qualitative research
method in which eight
to ten persons
participate in an
unstructured group
interview about a
product or service
concept.
27
Figure 2.5 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 electing a cellular
service? (Probe)
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Projective
Techniques
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Research procedures
designed to identify
consumers
subconscious feelings
and motivations.
They consists of
variety of test that
contains ambiguous
stimuli, such as
incomplete sentences,
word-association tests
etc.
29
Metaphor Analysis
The use of one form of expression to describe or

represent feelings about another is called metaphor
Based on belief that metaphors are the most basic
method of thought and communication.
Zaltman Metaphor Elicitation Technique (ZMET)
combines collage research (the respondents are provided with

scissors,paper,paste and magazines and are asked to make a
collage representing themselves and their relationship with the
product or service under study) metaphor analysis to bring to the
surface the mental models and the major themes or constructs
that drive consumer thinking and behavior.
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30
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31
Customer Satisfaction Data
Collection
Instruments
Customer Satisfaction
Surveys
Gap Analysis of Expectations versus
(Table 2.5)
Experience
Mystery Shoppers
Customer Complaint Analysis
Analysis of Customer Defections (analyzing
why customers leave the company)
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Sampling Design
Whom to
survey?
How many?
How to
select them?
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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.
Stratified random
sample
The population is divided into mutually exclusive

groups (such as age groups), and random samples
are drawn from each group.
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.
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Table 2.6 Nonprobability Sampling

Designs
Convenience
sample
Judgment sample
Quota sample
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The researcher selects the most accessible

population members from whom to obtain
information (e.g., students in a classroom)
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).
The researcher interviews a prescribed number of
people in each of several categories (e.g., 50 men
and 5 women).
35
4.Collecting Primary data
Quantitative study generally employs a

field staff to collect the data.
In qualitative study data is collected by

using highly trained interviewers
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36
5.Analysing the data
The last-but-one step in the research process is to extract

relevant findings from the collected data.
In qualitative research the moderator/analyst

analyses the respondents responses.
The researcher supervises the data analysis in quantitative

research.
The responses are converted into numerical scores then

tabulated and analysed with the help of computers using
sophisticated analytical techniques.
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usually
37
6.Report Preparation
The researcher prepares a report of her/his findings to be presented to the

relevant parties.
It may or may not include any recommendations for action depending on
the requirements of the management.
The report includes a description of the methodology used, as well as
tables and graphics to support the research findings.
The researcher should present major findings that are relevant to decisions
facing management and avoid detailing numbers and fancy jargon such as
multivariate analysis of variance.
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Levels of Consumer Decision making

Extensive Problem
Solving
Limited Problem
Solving
Routine Response
Behavior
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Complex Decision Making

or Extensive Problem
Solving Models:
When consumers have not established criteria for evaluating a

product category or specific brands in that category, then they
will consider to a small, manageable subset, their decision
making efforts can be classified as extensive problem solving
At this level, the consumer needs a great deal of information to

establish a set of criteria on which to judge specific brands and a
correspondingly large amount of information concerning each
of the brands to be considered.
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Low Involvement Decision

Making or Limited Problem
Solving Model
At this level of problem solving ,consumers already have
established the basic criteria for evaluating the product
category and the various brands in that category. However,
they have not fully established preferences concerning a
select group of brands.
Their search for additional information is more like fine-
tuning'; they must gather additional brand information to

discriminate among various brands.
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Routinised Response
Behavior
At this level Consumers have experience with the product
category and a well established set of criteria with which

to evaluate the brands they are considering.
In some situations ,they may search for a small amount of
additional information; in others, they simply review what

they already know.
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42
Four Views of Consumer

decision making
An Economic view
A Passive view
A Cognitive view
An Emotional view
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An Economic view
The Consumer has often been
characterized as making rational

decisions
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44
The Economic view

Rational Customers Have To
Be aware of all available
product alternatives
Be capable of correctly ranking
each alternative in terms of its

benefits and disadvantages
Be able to identify the best
alternatives
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Why is the Classical

Economic Model
People are limited by Unrealistic?

their
Considered
existing skills, habits
People are limited to the
extent of their knowledge
A Passive View
Here Consumers are perceived as impulsive and irrational
purchasers, ready to yield to the aims and into the arms of

marketers
Limitation: The passive model fails to recognize that the
consumer plays an equal role in many buying decisionssometimes by seeking information about product
alternatives and selecting the product that appears to offer
the greatest satisfaction and other times by impulsively
selecting a product that satisfies the mood or emotion of
the moment
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A Cognitive View
This portrays the consumer as a thinking problem solver.
Consumers are picturised as either receptive to or actively searching
for products and services that fulfill their needs and enrich their lives
The cognitive model focuses on the processes by which consumers
seek and evaluate information about selected brands and retail outlets.
The Consumers are viewed as information processors. Information
processing leads to the formation of preferences and ultimately to

purchase intentions.
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An emotional view
When a consumer makes an emotional purchase decision, less
emphasis is placed on the search for pre-purchase information.

Instead, more emphasis is placed on current mood and feelings
Emotional View is related to perceive consumers decision making
based on their emotional association or feeling about some products

and services.
For instance, A person who miss a favourite fountain pen might go to

great lengths look for it.
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The nature of Situational

Influences
Situational influences are temporary
environmental conditions that exist at a

specific time and place and which
influence consumer behaviour
Marketers must understand:

The types of situations and how they
influence behaviour
How different situations affect consumers
How strong the situational influence is
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CB- DEL HAWKINS, ROJER BEST
50
Outcomes of Post purchase

Evaluation
Actual Performance Matches
Expectations
Actual Performance Exceeds
Expectations
Performance is Below Expectations
Types of Situations
Different types of situations that affect
your purchasing decisions include:
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1.
The message communication situation
1.
The purchase situation
1.
The consumption situation or usage

situation
1.
Disposition Situation
52
The Communication
Situation
The communication situation refers to the setting in which

consumers are exposed to information ,which will have
impact on their behavior.
The exposure situation: Whether the consumer is alone or in a

group, in a good or bad mood ,in a hurry or relaxed may determine
the degree to which the consumer will and retain the information.
The Context of the communication: Communication situation

focuses on answering whether it would be better to advertise on a
happy or sad TV programme,or a calm and exciting programme.
(coco cola has a policy of not advertising during sad programme.)
Happy programmes lead consumers to have more positive thoughts

during exposure to the commercial and a higher level of ad recall
than sad programmes.
The consumers mood while exposure to communication

occurs: Pleasant mood tends to positively influence processing and
recall of brand related information
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Purchase Situation
1.
. Three factors particularly influence marketing strategy

with regard to purchase situation:
In-store purchase Situation.
(dcor,sounds,aroma,lighting,dress and behavior of sales personnel,

product availability, displays and physical space are important
factors.)
1.
Purchase situation relates to gift giving.
(Consumers are likely to be more involved while purchasing a

gift than purchasing the same item for personal consumption)
1.
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Unanticipated Purchase situation: Sometimes
,purchase situations occur which are not anticipated. A

common situation is when unexpected guests arrive and
consumers have to rush for special shopping.
54
The consumption situation

or usage situation
The consumption situation refers to the
occasion of consumers product use.

For e.g. People use different dresses to
wear at home and at work.
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Disposition Situation
Some Consumers consider ease of
disposition as an important product

attribute
These people may purchase only items
that can be easily recycled
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The Situational
characteristics and
consumption
behaviour
Physical Surroundings
Social surroundings
Temporal Perspectives
Task definition
Antecedent states
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Physical Surroundings
Physical Surroundings is the sum of
all the physical features of a retail

environment.
1.Colors
2.Aromas
3.Music
4.Crowding
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Social surroundings
Social surroundings
Deal with other persons present who could have an impact on the individual
consumer's behavior; the effects of other people on a consumer in a
consumer activity
We act differently amongst different people e.g. family vs friends
The people you shop with can influence your behaviour
You are in a store looking at personal care products. a classmate sees you
and stops to chat. Would this encounter affect what brand you choose?
Would you delay the purchase?
You are walking through the mall and something in the store looks
interesting. Would you stop to further investigate if you are with your best
friend? If you are with your mother?
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Temporal Perspectives
Temporal perspectives deal with the effect of time on
consumer behavior.
Limited purchase time often limits search
Internet shopping is growing rapidly as a result
of the time pressures felt by consumers.
You have a job interview lined up for next day and need an interview
outfit
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Task definition
Reflects the purpose or reason for engaging in the
buying or consumption behaviour
shopping for a birthday gift
shopping for bread and milk
shopping for an interview outfit
using a computer at home
using a computer at work
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Antecedent States:
ANTECEDENT STATES
Features of the individual person that are not lasting or
relatively enduring characteristics
ANTECEDENT STATES are momentary conditions such as
shopping when in a bad mood, tired or anxious or buying on
impulse
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A Model of Consumer
Decision Making
INPUT
PROCESS
OUTPUT
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63
Figure 16.2 A Simple Model of Consumer Decision

Making
External Influences
Input
Firms Marketing Efforts

1. Product
2. Promotion
3. Price
4. Channels of distribution
Consumer Decision Making
Need Recognition
Process
Prepurchase Search
Evaluation of Alternatives
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial sources
4. Social class
5. Subculture and culture
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
Postdecision Behavior
Output
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Purchase
1. Trial
2. Repeat purchase
Postpurchase Evaluation
64
Input Stage
Input Stage: Influences the consumers recognition of a product

need .
It consists of two major sources of information:

The firms marketing efforts (the product itself , its price, its
promotion, and where it is sold)
The External sociological influences on the consumer
(family,friends,neighbours,other informal and noncommercial
sources, social class, and cultural and sub cultural membership)
1.
2.
The cumulative impact of each firms marketing efforts, the influence

of family,friends,and neighbors and societys existing code of
behavior are all inputs that are likely to affect what consumers
purchase and how they use what they buy.
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Process Stage
Process Stage: It focuses on how consumers make
decisions.
The psychological factors inherent in each
individual(motivation,perception,learning,
personality, and attitudes) affect consumer
decision making process. (what they need or want
,their awareness of various product choices, their
information gathering activities, and their
evaluation of alternatives)
The Experience gained through evaluation of
alternatives ,in turn,affect the consumers existing

psychological attributes
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Three Stages of Consumer

Decision Making
Need Recognition
Prepurchase Search
Evaluation of Alternatives
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CB- SCHIFFMAN & KANuk
67
Need
Recognition
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The realization by the

consumer that there is a
difference between what is
and what should be.
68
Prepurchase
Search
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A stage in the consumer

decision-making process in
which the consumer
perceives a need and
actively seeks out
information concerning
products that will help
satisfy that need.
69
Evaluation of
alternatives
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A stage in the consumer

decision-making process in
which the consumer
appraises the benefits to be
derived from each of the
product alternatives being
considered.
70
CONCLUSION
Gone are the days of producing the products according
to the manufacturer/Companys preference
Its is the time where everything starts with the
Customer. To be competitive & survive in the market,
every company should continuously go for Consumer
research & update its product features.
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Modul

It is a Part of market research in which

CB- SCHIFFMAN & KANUK

Consumer Research enables marketers to predict how consumers

Consumer Research enables marketers to study and understand

CB- SCHIFFMAN & KANUK

CB- SCHIFFMAN & KANUK

CB- SCHIFFMAN & KANUK

Comparison between Quantitative and

Type of questions and data collection

Closed ended questions with predefined

CB- SCHIFFMAN & KANUK

Comparison between Quantitative and

Sampling methods: Small,

Data analysis: Data collected are

Large ,probability samples. Providing that

The data is collected by a field force

CB- SCHIFFMAN & KANUK

The Consumer Research

CB- SCHIFFMAN & KANUK

Figure 2.1 The Consumer Research Process

Design Quantitative Research

Collect Primary Data

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Defining purposes and objectives helps ensure an appropriate research

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2.collecting and evaluating

Secondary data: data that has been

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Table 2.2 Major Sources of

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3.Designing primary research

Primary data: data collected by the researcher for the

The selection of a research design depends on the

CB- SCHIFFMAN & KANUK

Quantitative research design

CB- SCHIFFMAN & KANUK

marketers gain an in-depth

CB- SCHIFFMAN & KANUK

E.g.- To determine whether the size of a magazine ad effects readers

CB- SCHIFFMAN & KANUK

Survey Data Collection

CB- SCHIFFMAN & KANUK

Table 2.4 Comparative Advantages

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Data collection instrument should have

The degree to which

The degree to which a

CB- SCHIFFMAN & KANUK

Quantitative research data

CB- SCHIFFMAN & KANUK

Likert scales: easy for researchers to prepare and

Semantic differential scales: relatively easy to

Rank-order scales: subjects rank items in order of

CB- SCHIFFMAN & KANUK

Figure 2.4 Example of a Likert Scale

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Figure 2.4 Semantic Differential Profiles

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Figure 2.5 Rank-Order Scales

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Qualitative Data Collection

Figure 2.5 Selected Portions of a