Ch 2- Consumer Research

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Chapter 2

Consumer Behavior,Consumer Behavior,Eighth EditionEighth Edition

SCHIFFMAN & KANUK

Consumer Research

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Consumer behavior

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Today’s Topics

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Marketing Research (cont..)

Consumer Market-understanding the consumer

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Research Instruments

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– Questionnaires

• Include open-ended and closed-ended questions

• Phrasing and question order are key

– Mechanical instrument

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Contact Methods

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Mail questionnaires

Telephonic Interview

Personal interview

Group interview…Focus group interview

Online Research

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Step-3Implementing the Research

Plan

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Collecting the Data

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Analyzing the Data

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After the data have been collected, the next

step in the research process is data analysis.

The purpose of data analysis is to interpret

and draw conclusions from the data that

has been collected.

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Is the sample representative?Is the sample representative?

Is the data reliable?Is the data reliable?

Is the data valid?Is the data valid?

KeyIssuesKey

Issues

Are the statistical techniquesappropriate?Are the statistical techniquesappropriate?

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Step-4 Interpretation and

Reporting of Findings

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After data analysis is completed,

the researcher must prepare the

report and communicate the conclusions

and recommendations to management.

The research will ordinarily be required

to present both written and oral reports

on the project.

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Research Is Useful If:

We put thought into it before we do it

We do the right kind of research

We use judgment in interpreting and using the results

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Consumer Market

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All individuals and households

who buy or acquire goods and

services for

personal consumption

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Firm needs to know– Who buys?

– How they buy?

– When and where they buy??

– Why they buy?

– How they respond to marketing stimuli?

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Why do you think marketers know these

things?

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?

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What is Consumer Behavior about?

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How, why, where and when consumers make

purchase decisions?

Considers who influences the decisions?

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How are purchases made?

What information is needed for those decisions?

What factors affect these decisions?

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Why is it Important?

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Consumers determine the sales and profits of

a firm by their purchase decisions, thus the economic viability of the firm.

In late 1990, US consumers were spending

enough dollar bills to stretch from the Earth

to the Sun and back, with enough left over for over 600 lines to the moon!

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Customer vs. Consumer Behavior

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Customer behavior Includes both individual consumers who buy

goods and services for their own use and

organizational buyers who purchase business products.

Consumer behavior Is the process through which the ultimate buyer

makes purchase decisions.

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Consumer Behavior Defined

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The study of the processes involved when individuals or groups select, purchase, use,

or dispose of products, services, ideas, or experiences to satisfy needs and desires (Solomon, 1996).

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Those actions directly involved in

obtaining, consuming and disposing of products and services, including the

decision processes that precede and follow those actions (Engel et al. 1995).

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Examines mental and emotional processes in addition to the physical activities (Wilkie 1990).

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Because they study consumer behavior (CB)

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Actions in Purchasing and Using Products

Including Behavior and Thought Processes

Consumer Behavior Deals With …

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The buying behavior of final consumers-individuals and

households who buy goods and services for personal consumption.

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Marketing Applications

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Positioning

Segmentation

Product development

Market development

International marketing

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Consumer Spending Patterns

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Disposable income Discretionary income Family life cycle:

Young Teens Empty nesters Senior citizens

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Model of Consumer Behavior

“Stimulus-Response”

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Marketing andOther Stimuli

Marketing andOther Stimuli

Buyer’s Black Box”what” & “how”

Buyer’s Black Box”what” & “how”

Buyer’s ResponseBuyer’s Response

ProductPricePlacePromotion

EconomicTechnologicalPoliticalCultural

Buyer characteristics affecting consumer behavior

Buyer’s decision process

Product choiceBrand choiceDealer choice

Purchase timingPurchase quantity

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Marketingstimuli

ProductPricePlacePromotion

Otherstimuli

EconomicTechnologicalPoliticalCultural

Buyer’s decisions

Product choiceBrand choiceDealer choicePurchase timingPurchase amount

Buyer’scharacteristics

CulturalSocialPersonalPsychological

Buyer’s decisionprocess

Problem recognitionInformation searchEvaluationDecisionPost-purchase behavior

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Stimulus Response Model

– Marketing and other stimuli enter the buyer’s “black box” and produce certain choice/purchase responses.

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– Marketers must figure out what is inside of the buyer’s “black box” and how stimuli are changed to responses.

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Enough for today. . .