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CHAPTER

TWO
The Consumer
Research Process
Learning Objectives

1. To Understand the Importance of Consumer


Research for Firms and Their Brands, as Well as
Consumers.
2. To Understand the Steps in the Consumer
Research Process.
3. To Understand the Importance of Establishing
Specific Research Objectives as the First Step in
the Design of a Consumer Research Project.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 2
Learning Objectives (continued)
4. To Understand the Purposes and Types of Secondary
Consumer Research That Is Available for Making
Decisions or Planning Future Consumer Research.
5. To Understand Specific Features and Applications of
Different Research Methods to Be Carried Out in
Consumer Research Studies.
6. To Understand Where Data Analysis and Reporting of
Findings Fit in the Research Process.
7. To Understand How Each Element of the Consumer
Research Process Adds to the Overall Outcome of the
Research Study.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 3
The Importance of the Consumer
Research Process
• Marketers must understand customers
to design effective:
– marketing strategies
– products
– promotional messages

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 4
The Consumer Research Process

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 5
The Consumer Research Process

• Secondary research
• Primary research
– Qualitative
– Quantitative

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 6
Developing Research Objectives

• Defining purposes and objectives helps ensure


an appropriate research design.
• A written statement of objectives helps to
define the type and level of information
needed.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 7
Discussion Questions

• Assume you are planning to open a new pizza


restaurant near your campus.
– What might be three objectives of a research plan
for your new business?
– How could you gather these data?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 8
Secondary Data

• Data that has been


collected for reasons
other than the specific
research project at hand
• Includes internal and
external data

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 9
Types of Secondary Data

Internal Data External Data


• Data generated in-house • Data collected by an outside
• May include analysis of organization
customer files • Includes federal
• Useful for calculating government, periodicals,
customer lifetime value newspapers, books, search
engines
• Commercial data is also
available from market
research firms

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 10
Discussion Questions
Personal Privacy
• Many people do not like the fact that their
personal data are used for marketing.
• How can marketers justify their need for data?

• How can they acquire data and maintain


customer privacy?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 11
Designing Primary Research

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 12
Qualitative Collection Method
Depth Interview
• Also called one-on-one interview
• Usually 20 minutes to 1 hour
• Nonstructured
• Interviewer will often probe to get more
feedback (see following slide for probing)
• Session is usually recorded

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 13
Probing Options for Interviews

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 14
Qualitative Collection Method
Focus Group
• 8-10 participants
• Respondents are recruited through a screener
questionnaire
• Lasts about 2 hours
• Always taped or videotaped to assist analysis
• Often held in front of two-way mirrors
• Online focus groups are growing

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 15
Discussion Guides for Research

• Step-by-step outline
for depth interviews
and focus groups
• Interviewers will
often “improvise”
and go beyond the
discussion guide

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 16
Focus Group Discussion Guide

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 17
Qualitative Collection Method
Projective Techniques
• Research procedures designed to identify
consumers’ subconscious feelings and
underlying motivations
• Consist of a variety of disguised “tests”

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 18
Common Projective Exercises

Description
Word The researcher has a list of words, some of them to be studied and some
Associations just as “filler.” The researcher asks the respondent(s) to react, one-at-a
time, to each word by stating or (in a focus group setting) writing on a
pad the first word that comes to mind, and to explain the link.
Sentence The researcher has a series of incomplete sentences that the
Completion respondent(s) needs to complete with a word or phrase.

Photo/Visual The researcher creates/selects a series of photos of consumers, different


for brands or products, range of print ads, etc., to serve as stimuli. The
Storytelling respondents are asked to discuss or tell a story based on their response
to a photo or some other visual stimulus.
Role Playing Is quite similar to storytelling; however, instead of telling a story, the
participant(s) will be given a situation and asked to “act out” the role(s),
often with regard to a product or brand, or particular selling situation.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 19
Qualitative Collection Method
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 or
constructs that drive consumer thinking and
behavior.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 20
Qualitative Collection Method
“Looking-In”
• Look at information from threads and postings
on social media, including blogs and
discussion forums
• Methodology to capture consumers’
experiences, opinions, forecasts, needs, and
interests

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 21
Designing Primary Research

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 22
Data Collection Methods
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

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 23
Data Collection Methods
Mechanical Observational Research
• Uses mechanical or electronic device to record
consumer behavior or response
• Consumers’ increased use of highly
convenient technologies will create more
records for marketers
• Audits are a type of mechanical observation
which monitor sales

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 24
Data Collection Methods
Experimentation
• Can be used to test the relative sales appeal of
many types of variables
• An experiment is usually controlled with only
some variables manipulated at a time while
the others are constant
• Test markets are conducted on a single market
area
• Experimentation can be conducted in
laboratories or in the field
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 25
Discussion Questions

• What might direct marketers test in


experiments?
• How can they use the results?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 26
Data Collection Methods

Mail Telephone Personal Online


Interview
Cost Low Moderate High Low
Speed Slow Immediate Slow Fast

Response rate Low Moderate High Self-selected


Geographic Excellent Good Difficult Excellent
flexibility
Interviewer N/A Moderate Problematic N/A
bias
Interviewer N/A Easy Difficult N/A
Supervision

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 27
Validity and Reliability

• If a study has validity, it collects the


appropriate data for the study.
• A study has reliability if the same questions,
asked of a similar sample, produce the same
findings.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 28
Attitude Scales

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 29
Types of Attitude Scales :
1)Single item Scale
2)Multi-item Scales
Single item scales are those with which only one item
is measured. The following are the important single item
scales:
1) Itemised Category Scales:
Are those in which respondents have to select an
answer from a limited number of ordered categories.
Eg. A hotel customer is asked to indicate the level of
satisfaction for the service provided

Highly Considerably Reasonably Unsatisfied Highly


Satisfied Satisfied Satisfied Unsatisfied
2) Rank Order Scales :
They are comparative scales where
respondents were asked to rate an item in
comparison with another item or a group of items
on a common criterion.

Example:
Rank order scale for analysing Motor Cycles
Brand Affordable Cost High Mileage Stylish Great Pick up
Hero Honda
TVS
Bajaj

Rank the brands with 1 being the brand that best meets the
characteristics , 7 being the worst of the characteristics
3) Comparative Scales :
The Researcher provides a point of comparison for
respondents to provide answers. Therefore, all
respondents will have a uniform point of comparison for
selecting answers.

Example:
Respondent is asked to rate the sweet shop ‘X’ in
comparison to sweet shop ‘Y’ in Kochi:

Excellent Very Good Good Both are same Poor Very poor
Multi-item Scales :

These are applied when it is difficult to measure


people’s attitude based on only one attribute.
Eg. Ask a person whether he/she is satisfied with
Indian Railway.
‘Overall I am satisfied’. ‘But there are many
factors with which I am dissatisfied.’
In such cases it is impossible to capture the
complete picture with one overall question.
A number of scales have to be developed that can
measure a respondent’s attitude towards several
issues
From most favourable to most unfavourable.
1) Semantic Differential Scale :
It is used to describe a set of beliefs that underline a
person’s attitude towards an object.

This scale is based on the principle that individuals think


dichotomously or in terms of polar opposites such as
reliable-unreliable, modern-old fashioned etc.

Eg. Comparing four brands of car :


Mitsubishi(L) ; Hyundai(E) ; Skoda(O) ; Honda

Fast -- -- -- -- -- -- --
Slow
Large -- -- -- -- -- -- -- Small
Plain -- -- -- -- -- -- -- Stylish
In-
Expensive -- -- -- -- -- -- -- Expensive
2) Staple Scales :

It is an attitude measure that places a single


adjective or an attitude describing an object in the centre
of an even number of numerical values. Generally it is
constructed on a scale of 10 ranging from -5 to +5,
without a neutral point ( zero ). It is similar to Semantic
Scale, except for it is single polar.

This scale is useful for the Researchers to


understand the positive and negative intensity of
attitudes of respondents.
Staple Scale Example - Measuring the attitude of
Flight Passengers:

+5 +5 +5
+4 +4 +4
+3 +3 +3
+2 +2 +2
+1 +1 +1

Friendly Cabin Comfortable Accurate Timings


Crew Interiors

-1 -1 -1
-2 -2 -2
-3 -3 -3
-4 -4 -4
-5 -5 -5
3) Likert Scale :

This scale consists of a series of statements where


the respondent provides answers in the form of
agreement or disagreement.

The respondent selects a numerical score for each


statement to indicate the degree of agreement or
otherwise.

Each such score is finally added up to measure the


respondents attitude.
Eg. of Likert Scale for evaluating the attitude of customers who have not used
Vacuum cleaner, but who have aware of its existence:

Strongly Agree Neutral Disagree Strongly


Agree disagree
The Product 1 2 3 4 5
is costlier
I don’t find 1 2 3 4 5
time to use it
Advt. is not 1 2 3 4 5
convincing
Never use a 1 2 3 4 5
VC
I am satisfied 1 2 3 4 5
with the
present way
of cleaning

Its use is 1 2 3 4 5
cumbersome
Customer Satisfaction Measurement

• Customer
Satisfaction
Surveys
– Analysis of
Expectations
versus Experience
• Mystery Shoppers
• Customer
Complaint Analysis

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 39
Sampling

Whom to survey?

How many?

How to
select them?
Sampling
• Sampling may be defined as the selection of some part of an aggregate or totality
of the basis of which a judgment or inference about the aggregate or totality is
made.
• Obtaining information about an entire population by examining only a part of it
Objectives:-
• Reduce operational cost
• Reduce analytical & computing requirements
• Sampling is required to satisfy the decision maker’s reliability requirements
• Sufficient accuracy in the sample is possible for stable results
• Sampling is unavoidable. Sampling can reduce
• Sampling is required for high standards
• Appropriate sampling is needed for fresh & recent data
• Large samples or complex sampling may be avoided because they require too
much time & data
Basis of Sampling

• Characteristics of respondents
• Sample value (population value)
Advantages of Sampling
• Cheaper
• Expeditions
• Collection of detailed information
• Better quality
Disadvantages of Sampling

• Inflexible
• May mislead results
• Unreliable
• Sampling experts required
• Complicated sampling is time consuming
• Own limitations
• Additional problems of Sampling
Techniques of Sampling

Methods of Sampling
•Probability
•Non-probability
•Probability sampling:- simple random sampling
•Every item of the universe has an equal chance
of including in the sample
•If N is the size of the population and “n” units
are to be drawn in the sample
Sampling and Data Collection

• Samples are a subset of the population used


to estimate characteristics of the entire
population.
• A sampling plan addresses:
– Whom to survey
– How many to survey
– How to select them
• Researcher must choose probability or
nonprobabililty sample.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 45
Data Analysis and Reporting Findings

• Open-ended questions are coded and


quantified.
• All responses are tabulated and analyzed.
• Final report includes executive summary,
body, tables, and graphs.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 46
Report

• Communication of
Research
•What should be the
contents?

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