Consumer Behaviour

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Chapter 2: Consumer Research

Consumer Research Paradigms

Earlier consumer researchers gave no thought to impact of mood,emotion or situation on consumer decision making. The belief was that the consumer was rational and logical only.Yet consumer could not explain behaviour or decisions and were not always conscious of why they made decisions In 1939 a Viennese psychoanalyst named Ernest Dichter began to use Freudian psychoanalytic techniques to uncover hidden motivations of consumers.

Two types of Research Methodology

Quantitative and Qualitative

Quantitative Research
Descriptive in nature.

EX: Used to understand the effects of various promotional inputs on the consumer Enables marketers to predict consumer behavior. Research methods include experiments, survey techniques, and observation. Findings are descriptive, empirical and generalizable. Lends itself to sophisticated statistical analysis

Positivism
A consumer behavior research approach that regards the consumer behavior discipline as an applied marketing science. Also known as modernism, logical empiricism, operationalism and objectivism

Qualitative Research
Consists of depth interviews, focus groups, metaphor analysis, collage research, and projective techniques. Administered by highly trained intervieweranalysts. Findings tend to be subjective. Small sample sizes. Used primarily to obtain new ideas for promotional campaigns
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Interpretivism
A postmodernist approach to the study of consumer behavior that focuses on the act of consuming rather than on the act of buying. Also called postmodernist,naturalism,humanism,post positivism Research methodologies used Ethnography(researcher places himself in the society understudy),semiotics(symbols and meanings),depth interviews
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Table 2.2 Comparisons between Positivism and Interpretivism

PURPOSE

Positivism
Prediction of consumer actions METHODOLOGY Positivism Quantitative

Interpretivism
Understanding consumption practices Interpretivism Qualitative

Table 2.2 continued

ASSUMPTIONS

Positivism Rationality; consumers make decisions after weighing alternatives The causes and effects of behavior can be identified Individuals are problem solvers A single reality exists Events can be objectively measured

Interpretivism No single, objective truth Reality is subjective Cause and effect cannot be isolated Each consumption experience is unique Researcher/respondent interactions affect research findings

Table 2-1
Qualitative Research Study Purpose Quantitative Research Provide insights Describe target about ideas market Exploratory research Results for before quantitative strategic study marketing decisions

Types of Questions
Data Collection Methods

Open-ended Unstructured Projective techniques Depth interviews Focus groups

Close-ended Attitude scales Observation Experimentation Questionnaires

Table 2-1 (continued)

Qualitative Research Sampling Methods Small Nonprobability samples Quantitative Research Large Probability samples

Data Analysis

Analyzed by Coded, tabulated, researchers who and entered into collected data database Look for key words Use of statistical methods Subjective

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 Data Collection Method Screener questionnaire Discussion guide Conduct Research (Using highly trained interviewers) Analyze Data (Subjective) Prepare Report Design Quantitative Research Data Collection Method Sample design Data collection instrument Collect Primary Data (Usually by field staff) Exploratory Study Analyze Data (Objective) Prepare report
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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. EX Quantitative To find out attitudes about online shopping To determine percentage of households using email Qualitative To come up with new ideas for products or promotional campaign

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Secondary Versus Primary Data

Secondary data: data that has been collected for reasons other than the specific research project at hand Includes: data generated for in house for earlier studies and customer information collected by the firms sales or credit dept

Primary data: data collected by the researcher for the purpose of meeting specific objectives

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Secondary vs Primary Research

Most often provides clues

and direction for the need of primary research or sometimes eliminates need for research
Govt agencies,pvt population data firms,MR companies and advertising agencies

If detailed information on

purchasing patterns or product usage is needed if psychological or sociocultural consumer information is sought then primary data is collected

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Table 2.2 Major Sources of Secondary Data

Government Periodicals Publications & Statistical outlines Books Census

Internal Sources Commercial P and L BalanceData sheets,inventoryBy MR ,sales record

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Designing Primary Research

Quantitative Research Designs
Include research design, data collection methods, instruments to be used, and the sample design

Qualitative Research Designs

Include depth interviews, focus groups, projective techniques, and metaphor analysis

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Designing Primary research

Design Quantitative Research Data Collection Method ( Observation, experimentation, survey Sample design((Probability vs Non probability) Data collection instrument

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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. Use of Video tapes to record consumers in their settings home, mall Helps researchers gain a better understanding of what the product symbolizes. Widely used by interpretivist researchers.
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Observational research is often used to design products to meet needs.

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 Product audits which monitor sales are heavily used by companies

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Arbitron Mechanical Observation

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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 Can be conducted in laboratories or in the field

Copyright 2007 by Prentice Hall

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. Ex: Sales appeal of monochrome cells vs Colour display cells( other variables kept constant price, consumer and type of promotional appeal).Place in same type of stores in terms of size, appearance,type of neighbourhod.

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Survey Data Collection Methods Personal Interview Mail

Telephone
Online
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Table 2.4 Comparative Advantages

MAIL Cost Speed Response rate Geographic flexibility Interviewer bias Interviewer supervision Quality of response Low Slow Low Excellent N/A N/A Limited TELEPHONE Moderate Immediate Moderate Good Moderate Easy Limited PERSONAL INTERVIEW High Slow High Difficult Problematic Difficult Excellent ONLINE Low Fast Selfselection Excellent N/A N/A Excellent

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DATA COLLECTION INSTRUMENTS

Questionaires Personal Inventories Attiude Scales and Discussion Guides( Qualitative Res) Instruments are debugged for validity and reliabilty

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

Reliability The degree to which a measurement instrument is consistent in what it measures.

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Questionnaires
Substantive questions relevant to the purpose of the study and pertinent demographic questions Open ended or multiple choice Logical flow Demographic classification questions should be paced at the end

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Attitude Scales
Likert scales: Easy for researchers to prepare and interpret, and simple for consumers to answer. Researchers present products for evaluation or product attributes. From Strongly agree to Strongly disagree Likert is most popular.

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Semantic differential scales: relatively easy to construct and administer. Consist of bipolar adjectives that are anchored at the ends of an odd numbered continuum( 5 or 7). Respondents are asked to evaluate a concept or product or company by checking a point on the continuum which reflects their feeling or beliefs. Sometime even numbered continuum used to eliminate option of neutral

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Rank-order scales: subjects rank items in order of preference in terms of some criteria. Such as quality or value.

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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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Poor

Normal

Excellent

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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 _____Hewlett Packard _____ Gateway _____ NEC

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Qualitative Data Collection Methods

Depth Interviews

Focus Groups

Projective Techniques

Metaphor Analysis
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A depth interview is a lengthy and structured interview between a respondent and a trained interviewer who minimises his own participation in the discussion after establishing the general subject to be discussed. Respondents are encouraged to talk freely about their interests,activities,attitudes in addition to the brand under study.Transcripts, audiotapes,videotapes are carefully studied together with report of respondents moods and gestures. Provide ideas about product design,redesign and insights for positioning or repostioning.

Qualitative Data Collection Methods DEPTH INTERVIEW

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Qualitative Data Collection Methods Focus Group A qualitative research method in which eight to ten persons participate in an unstructured group interview about a product or service concept. Respondents are encouraged to discuss their interests,attitudes,reactions,motives,lifest yles,feelings about product or category,usage experience
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Qualitative Collection Method Focus Group

8-10 participants

Lasts about 2 hours

Always taped or videotaped to assist analysis Often held in front of two-way mirrors

Copyright 2007 by Prentice Hall

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 Research procedures designed to identify consumers subconscious feelings and motivations. Use a sentence completion,untitled picture or cartoons ,ink blot,word association and other person characterisation WORD ASSOCAITION What is the first word that comes to your mind when I say. SENTENCE COMPLETION When I go to a ball game I...

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Metaphor Analysis

Most Communication is nonverbaland people do not think in words but in images.If thought processes consists of images or pictures then it is likely that thy will not be able to express their feelings and attitudes in words alone 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

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Customer Satisfaction Data Collection Instruments (Table 2.5)

Customer Satisfaction Surveys Gap Analysis of Expectations versus Experience Mystery Shoppers Critical Incident Technique Customer Complaint Analysis Analysis of Customer Defections
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Customer Satisfaction Survey

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Sampling Plan Decisions

Whom to survey?

How many?
How to select them?
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Whom to survey sample unit Explicit definition of the universe or boundaries of the market from which data is sought so that an appropriate sample can be selected.Interviewing the target market is basic to the validity of the study How many to survey Size of the sample is dependent both on the size of the budget and on the degree of confidence that marketers want to place on the findings

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Table 2.6 Probability Sampling Designs

Simple random sample Systematic random sample Every member of the population has a known and equal chance of being selected. A member of the population is selected at random and then every nth person is selected.

Stratified random sample

Cluster (area) sample

The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.
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 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).

Quota sample

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DATA COLLECTION Require highly trained social scientists to collect qualitative data.A quantitative study generally uses a field staff that is recruited and trained directly by the researchers. ANALYSIS In qualitative research the moderator or test administrator usually analyses the responses received.In quantitiative research the researcher supervises the analyses.Open ended are coded and quantified.Then all responses are tabulated
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