CONSUMER

RESEARCH
 CUSTOMER PROFILE AND
ANALYSIS

 Consumer research helps a retailer in defining

the customer segment he can and should serve
and how he can serve them more effectively
and profitably.
 INFORMATION COLLECTED
THROUGH CONSUMER
RESEARCH
 When do customers like to shop?
 How do customers like to pay?
 What quality of merchandise do customers
usually prefer?
 What type of store has the maximum appeal
for my customers?
 How do customers handle servicing of the
mechanical products purchased by them?
 Who does most of the buying in the homes of my
customers?
 What is the income level of my average
customer?
 What is the age profile of my average customer?
 What is the general attitude of my customer
towards his community?
 How does my customer react to new and different
merchandise or promotional activities?
 What major changes has my customer made in
the last two years?
 USES OF CONSUMER
RESEARCH DATA
 Helps in serving the needs of the target
market.
 Tailoring the advertisement to appeal to the
target market.
 Selection of the local media channels.
 Understanding of the lifestyle, loyalty and
spending habits of target market.
 Deciding on the pricing strategy.
 MARKET SEGMENTATION
 It is a process of dividing the heterogeneous
total market into small groups of customers
who share a similar set of wants. Each of these
smaller groups possesses somewhat
homogenous characteristics.
 Marketers usually identify niches by dividing a
segment into sub-segments.
 BENEFITS OF MARKET
SEGMENTATION
 DEVELOPMENT OF MARKETING MIX
 STORE LOCATION DECISIONS
 UNDERSTAND CUSTOMER BEHAVIOUR
 MERCHANDISING DECISION
 PROMOTIONAL CAMPAIGNS
 POSITIONING
 CRITERIA FOR EVALUATING
MARKET SEGMENTS
 Homogeneous within- similar needs & wants can be
addressed through a uniform marketing programme.
 Heterogeneous between- differences in bet.
Segments will help a retailer to focus its efforts on its
identified segments.
 Substantial- target market should in large enough
and should have sufficient spend able income.
 Actionable- outlet should be accessible to its target
customers.
 APPROACHES FOR
SEGMENTING MARKETS
 SEX- M/F
 AGE- Pre-school, pre- teens, teenage etc.
 MARITAL STATUS
 INCOME
 OCCUPATION
 EDUCATION
 TYPE OF FAMILY
 FAMILY SIZE
 FAMILY LIFE CYCLE
 RELIGION
 SOCIAL CLASS
 HOUSING
 GEOGRAPHIC
 APPROACHS contd.
 PSYCHOGRAPHIC SEGMENTATION:
~ customers are segmented on the basis of their
lifestyle,personality,or values.
coffee homes Vs. barista
UCB
VALS SEGMENTATION APPLIED
TO INDIA
 THE SELF DRIVEN MATERIALIST:-
ambitious & practical. want to achieve
materialistic success. on responsive to sales &
discounts.14.8% of population of SEC A and
SEC B fall in this category. A majority of
people are from the service class. 90% of the
population is above 25 years of age, often
graduates.
 INDIAN VALS contd.
 THE INDEPENDENT EXPLORER:-Fiercely
independent people, not materialistic in nature,
not influenced by family or friends, look for
job satisfaction from their careers, go for value
based brands, 24% of population lies in this
group, 58% of this group fall in the age group
of 18-24 and 42% falls in age group 25-34,
mostly PG.
 INDIAN VALS contd.
 THE PASSIVE TRADITIONALIST:-
Epitome of tradition and conservatism, prefer
job security, family oriented, averse to risk,
prefer Indian brands, influence of family is the
most, planed purchases, 10% of SEC A and
SEC B lie in this group. Majority are in the
age group of 35-49 and are often grad.
 INDIAN VALS contd.
 THE ENTHUSIASTIC EXPERIMENTERS:
Ardent followers of fashion, trends, and fad.
Ever ready to try out new brands and prefer
newer formats of retail to do shopping.
purchase heavily during festive season and are
attracted by sales & offers.14.1% of the
population falls in this category. Majority of
the group fall in the age group of 18-24.
 INDIAN VALS contd.
 THE OPINIONATED REALISTS:- Self
centered people, not ready to experiment
much, don't accept new ideas, brands or retail
formats so easily.21% of the population fall in
this category and fall in the age group of 18-
49.
 INDIAN VALS contd.
 THE MATURE SENSIBLES:- Polite, well
mannered people who prefer a formal work
environment. Family oriented, non
experimentive. very cautious and logical in
approach. Not easily influenced by retailers
and their offers.14.1% population falls in this
group. Evenly spread across ages. mostly grad.
 MARKETING RESEARCH
 Marketing research is the systematic and continuing
study and evaluation of all factors bearing on any
business operation, which involves the transfer of
goods from producer to consumer.
 As per AMA, marketing research acts as a function
which links the consumer, customer and public to the
marketer through information- information used to
identify and define marketing opportunities and
problems, refine and evaluate marketing actions,
monitor marketing performance and improve
understanding of marketing as a process.
 STEPS IN MARKETING
RESEARCH
 Identifying the Marketing Problem
 Developing Marketing Research Plan
 Designing Marketing Research strategy
Type of research
Data sources
Research approach
Research instrument
Type of questionnaire
Type of questions
Sampling plan
Contact method
Mode of data collection
Data processing
 RESEARCH PROCESS contd.
 Collection of Data
 Analysis of collected data
 Preparation of research report
 TYPES OF MARKETING
RESEARCH/RESEARCH
DESIGNS
 On the basis of objectives of the marketing
research, the research can be classified into: I)
Exploratory research
II) Conclusive research
 On the basis of character of data MR is often
classified into: a) Quantitative research b)
Qualitative research
 EXPLORATORY RESEARCH
 Lack of structure and flexibility. it is generally
used for the development of hypothesis
regarding potential problems and
opportunities. It is further subdivided into:
~ search of secondary data
~ case study
~ survey of experts
 CONCLUSIVE RESEARCH
 Is used to provide information for the
evaluation of alternative courses of action. It is
used to describe the marketing phenomena
while trying to determine the association
among variables. It also seeks to predict future
marketing phenomena. It can be further
classified into:
~ Descriptive research
~ Casual or experimental research
 EXPLORATORY RESEARCH
DESIGN
 Aim of the research is to investigate, to find
new hypotheses.
 Flexibility and creativity.
 No formal design, much is left to the
imagination of market researcher.
 Market researcher exercise their individual
initiative in spotting and following leads in an
organized manner.
 EXPLORATORY RESEARCH
USING SECONDARY SOURCES
OF INFORMATION
 Market researcher can use data available from
various companies, internet, public libraries,
newspapers, government reports, trade
journals, general books, etc.
 There is the problem of information overload
and applicability of the data to the current
scenario.
 EXPLORATORY RESEARCH
USING EXPERT OPINIONS
 Experts give valuable insights into a marketing
problem because of their experience with problem at
hand, ability to act as an observer and an ability to
express ideas unlike any other individual.
 Various types of qualitative techniques are used to
unearth consumers’ beliefs, values, attitudes, feelings
that influence consumer behaviour.
~ Depth interviews
~ Focus group interviews
~Projective techniques
~Case analysis
 CONCLUSIVE RESEARCH
 Has to select one course of action among a
number of alternatives, conclusive research
provides information so as to evaluate various
alternatives and select among them a course of
action. This type of research provides rational
basis for decisions. Conclusive research design
is characterized by formal research procedures.
 DESCRIPTIVE RESEARCH
 Generally describe the characteristics of
consumer segment viz. demographic,
socioeconomic, geographic, psychographic and
benefits sought.
 Displays buyers’ perception about brands.

Sources of data collection:

~ Interrogation of respondents
~ Secondary data
~ Simulation
EXPERIMENTAL RESEARCH
 Establishes a cause and effect relationship.
 The objective of this research is to identify
casual relationships and to measure the effect
of exploratory variables or independent
variables on a dependent variable, while
controlling for other variables that might
confuse one’s ability to make casual
inferences.
 DATA SOURCES
 PRIMARY DATA: Data directly collected by
the researcher is called primary data. The
methods for data collection are:
a) survey
b) observation
 PRIMARY DATA

CHARACTERISTICS SURVEY OBSERVATION

Type of information Awareness/ Current Behaviour

sought attitude & results

Control over data Relatively high Relatively low

gathering
Data accuracy Relatively low Relatively high

Time factor Relatively high Relatively low

 SOURCES OF PRIMARY
DATA
 INTERVIEW METHODS:
~ Depth interview
~ Mail interview
~ Telephone interview
 Delphi technique
 Projective technique
 Focus group interview
 Questionnaire methods
 INTERVIEW METHOD
ADVANTAGES DISADVANTAGES
Accurate information Cost: interviews are more
Additional information, if expensive then other
needed. techniques.
Flexibility in information Difficulty in sampling
collection. control.
Ease in communication. Time consuming.
Ease in obtaining personal Possibility in getting
information. fictitious information.
 DELPHI TECHNIQUE
ADVANTAGES DISADVANTAGES
Expert information, gets A trained moderator is
many insights. mandatory.
Various aspects of the Success of this method
problem are covered. depends on choice of
experts.
 PROJECTIVE TECHNIQUE
ADVANTAGES DISADVANTAGES
Indirect technique of Imagery is used.
collecting information. Clarity of thought at the
Helpful in exploring the part of interpreter is
‘whys’ of market and desired.
consumer Behaviour. Respondents tend to lose
Only technique projecting the main focus of the
Behaviour of others. research.
Useful in situations where
data cannot be collected
directly.
FOCUS GROUP INTERVIEWS
ADVANTAGES DISADVANTAGES
It provides complex and Difficulty in sample
varied data, because the selection.
discussions covers Samples are small.
different groups. Responses may be
It saves time as well as influenced by what others
cost. have to say.
Difficulty in analyzing the
results.
 SECONDARY DATA
 Not originally collected for use in the current research
.
 SOURCES:

~ INTERNAL SOURCES- Sales records, Credit

records, Internal reports.
~ EXTERNAL SOURCES- Published:- Directories,
Periodicals, Financial records, Statistical sources.
Commercial:- Demographic data, Store audit data,
Diary panel data, Advertising data.
SOURCES AT MACRO LEVEL
 CENSUS DATA
 NATIONAL SAMPLE SURVEY
 SAMPLE REGISTRATION SYSTEM
 PUBLICATIONS
 RESEARCH INSTITUTES
 GOVT. OF INDIA DEPARTMENTS
 TRADE ASSOSIATIONS
 SECONDARY DATA
ADVANTAGES
Economy, low cost.
Speed of collection of data.
Deficiencies can be
identified and primary data
can be collected
accordingly.
Very useful in exploratory
research.
Basis of comparison after
the primary data is
collected.
DISADVANTAGES
Available data may not be
suitable for the current
scenario.
Obsolete information.
Unknown methodology
used.
Conflicting data.
Accuracy of the data may
be questionable.
 QUESTIONNAIRE DESIGN
 Gives structure to an interview.
 Questionnaires help to recognize the tastes,
preferences, and perceptions of various people.
 Three basic conditions to insure sincere response:

~ Respondents must be able to understand the questions.

~ They must be able to provide the information
requested.
~ They must be willing to provide the information.
 QUESTIONNAIRE SHOULD BE
BASED ON THE FOLLOWING
ASPECTS:
 How many interviews will there be ?
 Who will be interviewed ?
 How will the interview be carried out ?
 Who will be administering the interview ?
 QUESTIONNAIRE DESIGN
 ISSUES TO BE CONSIDERED:-
~ Information needed
~ Method of data collection
~ Sampling method and sample size
QUESTIONNAIRE DESIGN contd.
STEPS :
 Construction of questionnaire and its design.
 Decide on the content of individual questions.
 Types of questions.
 Wording of the questions.
 Sequence of the questions
 Layout of the questionnaire
 Pretest of the questionnaire
 Final revised questionnaire
TYPES OF QUESTIONNAIRES
 Structure of a questionnaire refers to the degree to
which the questions and possible responses are
formed and standardized:
~ Structured: Consistently and repeatedly follow the
same pattern. Handy in large quantitative surveys.
~ Semi- structured: Mixture of questions with predicted
as well as open answers.
~ Unstructured: General questions directed at the
research topic allowing great deal of freedom to the
interviewer in formulating specific questions.
CRITERIA FOR SELECTING THE
TYPE OF QUESTIONNAIRE
 The nature of information sought.
 The number of people who will be interviewed.
 The survey research mode
 The nature of the respondents who are expected
to provide the information required.
 The type of interviewers who will be
administering the questions.
 TYPES OF SCALES USED IN
MEASURING ATTITUDES
 Scaling refers to the process of measuring of attitudes. Choice
of scale depends upon the type of attitude being measured.
NON COMPARITIVE SCALES
1. NOMINAL SCALE- These scales are comprised of numbers
that are used to categorize objects or events. A nominally
scaled number serves only as a label for a class or category. It
is the procedure of assigning facts/choice to various
alternative categories which as usually exhaustive as well as
mutually exclusive.
EXAMPLE:
How do you keep the books at present in the library?
( ) Subject wise ( ) Department wise
( ) Alphabetically ( ) Author wise
2. ORDINAL SCALE- These scales represent numbers, letters
or other symbols used to rank items. It can be classified not
only on the basis of whether they share some characteristic
with another item but also whether they have more or less of
this characteristic than some other object. The ranking of
certain attributes/benefits as deemed important by the
respondent is obtained through this scale.
EXAMPLE
Rank the following attributes on a scale of 1-5 according to
their importance to a washing machine.
a) Company image
b) Functions
c) Price
d) Comfort
e) Design
3. INTERVAL SCALE- This scale represent numbers
used to rank items such that numerically equal
distances on the scale represent equal distances in
the property being measured. It involves qualities
description of number of respects of a product or
traits of a person. EXAMPLE:
A. Product design
Poor 1 2 3 4 5 Good
B. Brand name
Lesser known 1 2 3 4 5 Well known
C. Price
Low 1 2 3 4 5 High
 RATIO SCALE- This scale consists of
numbers that rank items such that numerically
equal distances on the scale represent equal
distances in the property being measured and
have a meaningful zero. All descriptive
measures and inferential techniques are
applicable to ratio scaled data. EXAMPLE:
Same as previous but the scale used
-1 -2 -3 0 1 2 3
 COMPARITIVE SCALES
 The respondents directly compare two or more
objects and may choose among them.
~ PAIRED COMPARISION SCALE- In this
scale respondents are asked to choose from
among the alternatives. Attributes to be tested
as well as every possible pair combination are
listed out in the questionnaire and from each
pair of alternatives the respondent makes his
choice.
 THE TURSTONE SCALE- This scale is also called
‘the method of equally appearing intervals’. The
researcher first assembles a large number of
statements, say 150 to 200 statements, about the
attitude under study. Several judges are then asked to
classify these statements independently into 5 piles,
ranging from extremely negative to extremely
positive. The sixth pile is to represent the neutral
point. A final selection of 20-25 items is made based
on those statements. These statements are finally
presented to respondents who are asked to check
those statements they agree with.
 THE LIKERT SCALE- This scale is also
called ‘the method of summated ratings’ is a 5-
point scale ranging from ‘strong agreement’ to
‘strong disagreement’. In this method, a
judging group is not involved. The respondent
is given a statement about a topic and he
records the degree of his agreement or
disagreement with the statement.
 THE SEMANTIC DIFFERENTIAL- This
scale associates probes into the intensity and
content of a respondent’s attitude towards, say,
a company’s image or a brand’s image. The
evaluation is made using a scale of adjectives
which are polar opposites, ranging from one
extreme position to the opposite extreme,
separated by seven equal intervals.
 MULTI- DIMENSINAL SCALING- This is a
complicated scale but can be used to scale
objects, individuals with minimum
information. It is characterized by a set of
procedures for portraying perceptual or
effective dimensions of substantive interest. It
is used when all the variables in a study are to
be analyzed simultaneously and all such
variables happen to be independent.