Consumer Research

Consumer Research Paradigms

Quantitative Research Qualitative Research

Quantitative Research
Enables marketers to predict consumer behavior. This research approach is known as Positivism Research methods include experiments, survey techniques, and observation. Findings are descriptive, empirical and generalizable.

Positivism

A consumer behavior research approach that regards the consumer behavior discipline as an applied marketing science. Its main focus is on consumer decision making.

Eg. Test-marketing of Instant curd

Qualitative Research
Consists of depth interviews, focus groups, metaphor analysis, and projective techniques. Also called Interpretivism. Administered by highly trained intervieweranalysts. Findings tend to be subjective. Findings not usually generalizable Small sample sizes.

Interpretivism

A postmodernist approach to the study of consumer behavior that focuses on the act of consuming rather than on the act of buying. Eg. Focus-group interviews of mothers for some baby food/cereal

Depth Interviews

A lengthy and relatively unstructured interview designed to uncover a consumers underlying attitudes and/or motivations.

Table 2.1 Comparisons between Positivism and Interpretivism

PURPOSE

Positivism
Prediction of consumer actions METHODOLOGY Positivism Quantitative

Interpretivism
Understanding consumption practices

Interpretivism Qualitative

Combining Qualitative and Quantitative Research Findings

The research paradigms are complementary in nature. Produce a richer and more robust profile of consumer behavior than either research approach used alone.

The Consumer Research Process

The six major steps in the consumer research process are:
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

Figure 2.2 The Consumer Research Process

Develop Objectives Collect Secondary Data Design Qualitative Research Method Screener questionnaire Discussion guide Conduct Research (Using highly trained interviewers) Analyze Data (Subjective) Prepare Report Design Quantitative Research Method Sample design Data collection instrument Collect Primary Data (Usually by field staff) Exploratory Study Analyze Data (Objective) Prepare report

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.

Secondary Data

Data that has been collected for reasons other than the specific research project at hand.

Collecting Secondary Data

Secondary information is any data originally generated for some purpose other than the present research objectives. Provides clues and direction for the design of primary research.

Primary Research

Original research undertaken by individual researchers or organizations to meet specific objectives. Collected information is called Primary Data.

Designing Primary Research

Quantitative studies more likely for collecting descriptive information. Qualitative studies may be used to get new ideas.

Quantitative Research Designs

Method
Sample Design

Data Collection Instrument

Data Collection Methods

Observation

Experimentation

Surveys

Observational Research
Helps marketers gain an in-depth understanding of the relationship between people and products by watching them buying and using products.

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.

Surveys Personal Interview Mail

Telephone
Online

Table 2.3 Comparative Advantages of Mail, Telephone, and Personal Interview Surveys
MAIL TELEPHONE PERSONAL ON-LINE INTERVIEW High Low Slow Fast SelfHigh selection Difficult Problematic Difficult Excellent Excellent N/A N/A Good

Cost Speed Response rate Geographic flexibility Interviewer bias Interviewer supervision Quality of response

Low Slow
Low Excellent N/A N/A Limited

Moderate Immediate
Moderate Good Moderate Easy Limited

Data Collection Instruments

Questionnaires

Personal Inventories

Attitude Scales

Discussion Guides

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.

Questionnaires
Used primarily for quantitative research. Can be sent in the mail, or administered by interviewers in person or by telephone. Can be disguised or undisguised as to its true purpose. Questions can be open-ended or closed-ended.

Personal Inventories
Presents a series of statements to which respondents indicate their degree of agreement or disagreement. An inventory presents a list of statements, while a questionnaire asks a series of questions.

Attitude Scales
The three most frequently used scales are:
Likert scales: easy for researchers to prepare and interpret, and simple for consumers to answer. Semantic differential scales: relatively easy to construct and administer. Rank-order scales: subjects rank items in order of preference in terms of some criteria.

Figure 2.3 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 on-line 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 on-line than they are worth. _____ c. It is a good way to find out about new products. _____ d. Im afraid to give out my credit card number on -line. _____ e. I can shop whenever I want--even at 2 oclock in the morning. _____ f. Some Web sites really encourage you to browse. _____ g. Its easy to compare different makes and models of products on -line.

SEMANTIC-DIFFERENTIAL SCALE BK School has

Extremely Neither Extremely

Bright students

Dull students

Good infrastructure

Poor infrastructure

Premier Image

Worst Image

SEMANTIC-DIFFERENTIAL SCALE The Times of India

Extremely Neither Extremely

Not Trustworthy

Trustworthy

Well Written

Poorly Written

Relevant News

Irrelevant News

Fun to Read

Boring to Read

Snake Diagram
TOI Vs Business Standard
Extremely Neither Extremely

Not Trustworthy Well Written Relevant Enjoyable to Read TOI

Trustworthy

Poorly Written
Irrelevant Boring to Read

: :

: :

: :

: :

: :

: :

Business Standard

Figure 2.5 Rank-Order Scales

A. Please rank the following brands of Television by placing a 1 in front of the brand you think is best, a 2 alongside the second best, and continuing until you have ranked all six brands. _____ LG _____ Samsung _____ Sony _____ Onida _____ Panasonic _____ Sansui

Qualitative Data Collection Methods

Depth Interviews

Focus Groups

Projective Techniques

Metaphor Analysis

Depth Interviews
A lengthy non structured interview between a respondent and a highly trained interviewer. Interviewer minimizes his or her own participation after establishing the general subject matter. Can provide marketers with valuable ideas about product design and provide insights for positioning or repositioning the product.

Focus Group

A qualitative research method in which about eight to ten persons participate in an unstructured group interview about a product or service concept.

Focus Groups
Consists of 8 to 10 respondents who meet with a moderator-analyst for a focused group discussion. Respondents encouraged to discuss their interests, attitudes, reactions, motives, lifestyles, feelings about the product or product category, usage experience, etc. Respondents recruited on the basis of consumer profiles, based on specifications defined by marketing management.

Focus Groups
When: Concept testing
Product use/meaning Pre-Survey development Exploring complaints

Limitations: Dominant participants must be managed

Risk of ineffective moderator Cannot make generalizations/inferences

Tips: Hire a well-trained facilitator

Recruit participants based on key similarities
Conduct at least two groups, 8-10 members each Dont pay until finished!

Figure 2.6 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 selecting a cellular service? (Probe)

Examples of Probe questions: a. Tell me more about that... b. Share your thinking on this c. Does anyone see it differently...

Projective Techniques

Research procedures designed to identify consumers subconscious feelings and motivations. These tests often require consumers to interpret ambiguous stimuli such as incomplete sentences, cartoons, or inkblots.

Projective Techniques
Consist of a variety of disguised tests that contain ambiguous stimuli. Sometimes administered as part of a focus group, but usually used with depth interviews.

Word Association
Which cigarette brand comes to your mind when you hear the following words? Mild----Strong----

Sentence completion
A person who shops at Pantaloons is.
Coca-cola is most liked by _________________________

When I think of shopping in a department store, I ________

Picture Test
Big Bazaar

Lets see if we can pick up some house wares at Big Bazaar

TAT

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 that drive consumer thinking and behavior.

Sampling Plan Decisions

Whom to survey?

How many?
How to select them?

Table 2.4 Probability and Nonprobability Sampling Designs

PROBABILITY SAMPLES
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.

Table 2.4 continued

NONPROBABILITY SAMPLES
Convenience 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).

Judgment sample

Quota sample

Analysis
Qualitative Research: Moderator or test administrator usually analyzes responses. Quantitative Research: Researcher supervises the analysis.
Open-ended responses are coded and quantified Responses are tabulated and analyzed

Conducting A Research Study

Researchers often adapt the research process to the special needs of the study. Together with the marketing manager, the researcher specifies the parameters of the population to be studied. A qualitative study might be undertaken first to gather information about the target population's attitudes and concerns about certain items. Then a quantitative study may be conducted to confirm and attach hard numbers to the findings.

Customer satisfaction measurement

Customer satisfaction surveys Mystery shoppers Complaint analysis Suggestion systems

Ethics in Consumer Research

Biased samples Biased questions Predetermined conclusion Manipulating statistical analyses Ignoring relevant information Mistreating respondents Sales pitches from telemarketers Not maintaining confidentiality

Exercise 1
A manufacturer of a new product for whitening teeth would like to investigate the effects of package design and label information on consumers perceptions of the product and their intentions to buy it. Would you advise the manufacturer to use observational research, experimentation or survey? Explain your choice.

Exercise 2
A consumer who rarely listens to music played on a portable device has purchased , on impulse and for Rs. 5000/- , a pair of sunglasses with built-in earphones and the capability of playing MP3 files. Would the positivist or interpretivist research paradigm be a more appropriate way to study consumer behaviour? Explain your answer.