Consumer Research: Information

Gathering, Collation, Analysis and

Evaluation

Relevance of Consumer Research in CRM?

Difference between Marketing Research and
Consumer Research?

Ways of Collecting Data from Consumers?

Consumer Research Process?

Target market
Product and services
Price
Distribution
Promotion

Consumers make decisions and process

information about products and services in
different ways depending upon various
factors. Sometimes they go through a tedious
but systematic, step-by-step process. They
experience a need, consider alternatives to fill
that need, evaluate each alternative, and then
select one of the considered alternatives.

Need recognition
Information search
Evaluation of alternatives
Service Purchase and Consumption
Post Purchase Evaluation

Physiological needs
Safety and security needs
Social needs
Ego needs
Self-actualisation needs

The consumer uses various tactics for going

through this step. He uses the personal
resources for this like friends and experts
and at times uses the non-personal sources.
Non-personal sources are mass and selective
media.

It has been experienced that set of

alternatives is smaller for service in
comparison of goods. The group of products
a consumer considers acceptable options in a
given product category is termed as evoked
set.
The evoked set is smaller for services as
compared to the goods.

Transition in consumers mood from time to

time determines the effectiveness of service
encounter.
The mood of employees also affects the
quality of experience of consumer.

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Post purchase behaviour in case of service is

different from goods. The experience of the
consumer depends on various aspects of
service delivery. It also depends on the
involvement of the consumer.

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The foundation of good customer service is

good understanding of customer
expectations. An organization, which does
not do any research on customers
expectation will not be able to understand
their requirements and will not be able to
satisfy the customers and thereby grow their
business.

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To determine a customer expectation for a new service.

To identify the dissatisfied customers so that service
recovery can be attempted.
To monitor the service performance and customer
satisfaction level.
To identify the gaps in service expectations and customer
perception.
To understand the effectiveness of the service delivery.
To understand the level of service delivery and appreciate
the team performance and reward the various teams for
their customer focus and deliveries.
To understand the changing customer expectations.
To monitor the changing customer requirement in the
industry.

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A service research is not problem

oriented.
It provides a plethora of
information
which
may
not
be
actionable.
Researchers are too involved in the
techniques. They do not focus on the
problems.
Research is vague and may not be right
indication of customer requirements
and satisfaction.
Researchers do not talk in management
language.
The research may colour the report as
per managements perception.
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A service research programme is the

summation of various initiatives adopted by
an organisation to find the customer voice
and feeling about organisations products
and services.

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Complaint solicitation
Requirement research
Critical incidence research
Trailer calls
Mystery shopping
Customer panel
Lost customer research
Satisfaction survey

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Objective

Sample

Data
collection

Qualitative Research

Quantitative Research

To gain a qualitative
understanding of the
underlying reasons and
motivation

To quantify the data and

generalise the results
from the sample of the
population of interest
Large number of representative
cases

Small number of nonrepresentative cases

Unstructured

Structured

Data analysis Non statistical

Statistical

Outcome

Recommend a final course of

action

Develop an initial
understanding

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E-focus groups
E-surveys
Depth interview
Industrial interviews

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What is the purpose of this study? What are

the objectives of the research? The key focus
of the management at the first step of
initiating the research is to define the
research objectives. If these questions are not
answered at the outset, the study is likely to
be misdirected and to pursue vague or
obscure goals. The probable result will be
that collected data will not be as valid and
reliable as desired.

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After a satisfactory statement of the studys

purpose and objectives has been established,
it is necessary to prepare a list of the
information needed to attain the objectives.
The content of such a list will be determined
by the objectives of the research and
situation leading to the research request.

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After the research objectives have been

specified and list of needed information has
been prepared, the researcher should
determine whether such information is
already available, either in company records
or in outside sources. Certainly, the
researchers should not collect data from the
field until the appropriate secondary data has
been reviewed.

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Criteria

Issue

Remarks

Specification
methodology

Data should be reliable, valid, and that can be

Data collection method, Response rate
Quality of data, Sampling technique, Sample generalizable to the problem at hand
Size, Questionnaire design,
Field work Data analysis

Error/Accuracy
Examine errors in approach, Research
Assess accuracy by comparing data from
design, Sampling, data collection, reporting different resources
Currency
Time lag between collection and publication Census data is periodically updated by
frequency of Updates
syndicated firms
Objective
nature

The objectives will determine the relevance

Why were the data collected? Definition of
of the data to the problem at hand
key variables, units of measurement
Categories used- Relationships examined

Dependability

Expertise, creditability, reputation and trustworthiness of the source

Data should be obtained from the original
source rather than an acquired source
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After all interviews and observations have

been made, the completed data collection
forms need to be processed in a way that will
yield the information the project was
designed to obtain.
The responses are usually tabulated and
analysed on a computer.

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Correlation Analysis
Regression Analysis
Factor Analysis
Cluster Analysis
Conjoint Analysis

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Customer satisfaction is important for

business growth and its survival. It is
therefore self evident that companies should
try to satisfy their customers. Satisfied
customers usually
1. return and buy more,
2. they
tell other people about their
experiences
3.
they may well pay a premium for the
privilege of doing business with a supplier
they trust.

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Who should be interviewed?

What should be measured?
How should the interview be carried out?
How should satisfaction be measured?
What do the measurements mean?
How to use customer satisfaction surveys to
greatest effect?

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There are many decision influencers

identifying the right respondent is the key
The lost customers and potential customers
should be given due diligence
The quality of sample frame influences the
accuracy of the outcome

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8 to 10 Market Leader, excellent service

7 to 8 out of 10 Adequate but needs
attention
7 out of 10 Serious cause for concern
The Service Profit Chain Heskett, Sasser and
Schlesinger Loyalty Vs Satisfaction Score

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High Level or Specific Level

Product

Delivery

Product Performance

Companys Staff

Price
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SPOT THE GAP

MEASUREMENT &
IMPROVEMENT

CREATE AN
ACTION PLAN

Customer
Satisfaction
& Loyalty

CHALLENGE &
REDEFINE THE
SEGMENT ACTION

CHALLENGE &
REDEFINE THE CVP

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a customer value proposition (CVP) consists

of the sum total of benefits which a
vendor promises a customer will receive in
return for the customer's associated payment
(or other value-transfer).

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Any Questions?

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