consumer research

Module 2

Role of Research in understanding

Consumer Behaviour

Consumer Research

It is a Part of market research in which the preferences, motivations, and buying behavior of the targeted customer are identified through direct observation, mail surveys, telephone or face to face interviews, and from published sources (such as demographic data & others).

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Importance of Consumer research Consumer Research enables marketers to predict how consumers

will react to promotional messages and to understand why they make the purchase decisions

Marketers realize that the more they know about their target consumers’ decision making process, the more likely they are to design marketing strategies and promotional messages that will favorably influence these consumers

Consumer Research enables marketers to study and understand consumers’ needs and wants ,and how they make consumption decisions.


Quantitative Research Descriptive in nature. Enables marketers to “predict” consumer

behavior. Research methods include experiments,

survey techniques, and observation. Findings are descriptive, empirical and

generalizable.


Qualitative Research Consists of depth interviews, focus groups,

metaphor analysis, and projective techniques.

Administered by highly trained interviewer-analysts.

Findings tend to be subjective. Small sample sizes.


Comparison between Quantitative and Qualitative research

Qualitative researchQualitative research1.1. Study purpose: Study purpose: Studies designed to provide Studies designed to provide

insights about new product ideas and insights about new product ideas and positioning strategies. Ideas uncovered positioning strategies. Ideas uncovered should be tested via quantitative studies. should be tested via quantitative studies.

2.2. Type of questions and data collection Type of questions and data collection methods: methods: Open-ended ,unstructured Open-ended ,unstructured questions and further probing by the questions and further probing by the interviewer. Projective techniques include interviewer. Projective techniques include disguised questions where the respondents disguised questions where the respondents do not know the true purpose of the do not know the true purpose of the questions and are asked to freely respond to questions and are asked to freely respond to stimuli such as words or pictures. Depth stimuli such as words or pictures. Depth interviews and focus groups are usedinterviews and focus groups are used

Quantitative researchQuantitative research1.1. Studies aimed at describing a target market –its Studies aimed at describing a target market –its

characteristics and possible reactions of various characteristics and possible reactions of various segments to the elements of the marketing mix. segments to the elements of the marketing mix. Results are used for making strategic marketing Results are used for making strategic marketing decisionsdecisions

2.2. Closed ended questions with predefined Closed ended questions with predefined possible responses and open –ended questions possible responses and open –ended questions that have to be coded numerically. Most that have to be coded numerically. Most questionnaires include attitude scales and, questionnaires include attitude scales and, generally the questions are not disguised. generally the questions are not disguised. Questionnaires are used in surveys conducted in Questionnaires are used in surveys conducted in person, by phone or mail, or online. person, by phone or mail, or online. Observation of respondents is also used. Observation of respondents is also used.


Comparison between Quantitative and Qualitative research

4.4. Data analysis: Data analysis: Data collected are Data collected are analyzed by the researchers who have analyzed by the researchers who have collected it and who have expertise in collected it and who have expertise in the behavioral sciencesthe behavioral sciences

4.4. The data is collected by a field force The data is collected by a field force retained by the researcher, and then retained by the researcher, and then coded ,tabulated, and entered into the coded ,tabulated, and entered into the database. The researcher analyses the database. The researcher analyses the data by using objective, standardised data by using objective, standardised statistical methods consisting mainly of statistical methods consisting mainly of comparisons of averages among the comparisons of averages among the predefined variables and significance predefined variables and significance tests that estimate the extent to which tests that estimate the extent to which the results represent the universe.the results represent the universe.

3.3. Sampling methods: Sampling methods: Small, Small, nonprobability samples; the nonprobability samples; the findings are generally not findings are generally not representative of the universe representative of the universe under studyunder study

3.3. Large ,probability samples. Large ,probability samples. Providing that Providing that the data collection instruments are valid and the data collection instruments are valid and reliable, the results can be viewed as reliable, the results can be viewed as representative of the universe.representative of the universe.


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


Figure 2.1 The Consumer Research Process

Develop Objectives

Collect Secondary Data

Design Qualitative Research• Method• Screener questionnaire• Discussion guide

Prepare Report

Analyze Data(Subjective)

Conduct Research(Using highly trained

interviewers) Exploratory Study

Prepare report

Analyze Data(Objective)

Collect Primary Data(Usually by field staff)

Design Quantitative Research• Method• Sample design• Data collection instrument


1.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.

E.g.- If the purpose of the study is too come up with new ideas for products or promotional campaigns, then a qualitative study is usually undertaken, in which respondents spend a significant amount of time face-to-face with a highly trained professional interviewer-analyst who also does the analysis.

If the purpose is to find out how many people in the population use certain products & how frequently they use them, then a quantitative study that is undertaken.


2.collecting and evaluating secondary data

Secondary data: data that has been collected for reasons other than the specific research project at hand


Table 2.2 Major Sources of Secondary Data

Government Publications

Internal Sources

Periodicals &

Books

Commercial Data


3.Designing primary research

• Primary data: data collected by the researcher for the

purpose of meeting specific objectives

• The selection of a research design depends on the

purposes of the study. If a marketer needs descriptive

information, then a quantitative research study is called

for, but if the purpose is to generate new ideas, then a

qualitative study is appropriate.


Quantitative research designData 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.

Helps researchers gain a better understanding of what the product symbolizes.


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.

E.g.- To determine whether the size of a magazine ad effects readers’ attention, the size of the ad might be changed, keeping the other variables such as message/appeal & the colour of the ad constant so that they would not influence the results.


Survey Data Collection Methods

Personal Interview

Mail

Telephone

Online


Table 2.4 Comparative Advantages

MAIL TELEPHONEPERSONAL INTERVIEW

ONLINE

Cost Low Moderate High LowSpeed Slow Immediate Slow FastResponse rate

Low Moderate HighSelf-

selectionGeographic flexibility

Excellent Good Difficult Excellent

Interviewer bias

N/A Moderate Problematic N/A

Interviewer supervision

N/A Easy Difficult N/A

Quality of response

Limited Limited Excellent Excellent


ValidityValidity

The degree to which a measurement

instrument accurately reflects

what it is designed to measure.

Data collection instrument should have


ReliabilityReliability

The degree to which a measurement instrument is

consistent in what it measures.


Quantitative research data collection instrument


Attitude Scales Likert scales: easy for researchers to prepare and

interpret, and simple for consumers to answer.

Semantic differential scales: relatively easy to construct and administer . It consists of a pair of bipolar pair adjectives (such as good/bad, like/dislike) or antonym phrases at both ends of the scale with response options spaced in between five or seven points

Rank-order scales: subjects rank items in order of preference in terms of some criteria.


Figure 2.4 Example of a Likert ScalePlease 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 Strongly2 = Agree3 = Neither Agree or Disagree4 = Disagree5 = 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.


Figure 2.4 Semantic Differential Profiles of Three Pay-Per-Movie Services

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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 _____Hewlett Packard_____ Dell _____ Gateway_____ Compaq _____ NEC


Qualitative Data Collection Methods

Depth Depth InterviewsInterviews

Projective Projective TechniquesTechniques

FocusFocusGroupsGroups

Metaphor Metaphor AnalysisAnalysis


Focus GroupFocus Group

A qualitative research method in which eight

to ten persons participate in an

unstructured group interview about a product or service

concept.


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)


Projective Projective TechniquesTechniques

Research procedures designed to identify

consumers’ subconscious feelings

and motivations. They consists of

variety of “test” that contains ambiguous

stimuli, such as incomplete sentences, word-association tests

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Metaphor Analysis The use of one form of expression to describe or

represent feelings about another is called metaphor Based on belief that metaphors are the most basic

method of thought and communication.

Zaltman Metaphor Elicitation Technique (ZMET) combines collage research (the respondents are provided with scissors,paper,paste and magazines and are asked to make a collage representing themselves and their relationship with the product or service under study) metaphor analysis to bring to the surface the mental models and the major themes or constructs

that drive consumer thinking and behavior.



Customer Satisfaction Data Collection Instruments (Table 2.5)

Customer Satisfaction Surveys Gap Analysis of Expectations versus

Experience Mystery Shoppers Customer Complaint Analysis Analysis of Customer Defections (analyzing

why customers leave the company)


Sampling Design

Whom to survey?

Whom to survey?

How many?How many?

How toselect them?

How toselect them?


Table 2.6 Probability Sampling Designs

Simple random sample

Every member of the population has a known and equal chance of being selected.

Systematic random sample

A member of the population is selected at random and then every “nth” person is selected.

Cluster (area) sample

The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.

Stratified random sample

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


Table 2.6 Nonprobability Sampling Designs

Convenience sample

The researcher selects the most accessible population members from whom to obtain information (e.g., students in a classroom)

Judgment sample 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).

Quota sample The researcher interviews a prescribed number of people in each of several categories (e.g., 50 men and 5 women).


4.Collecting Primary data Quantitative study generally employs a

field staff to collect the data.

In qualitative study data is collected by using highly trained interviewers


5.Analysing the data• The last-but-one step in the research process is to extract

relevant findings from the collected data.

• In qualitative research the moderator/analyst usually analyses the respondents’ responses.

• The researcher supervises the data analysis in quantitative research.

• The responses are converted into numerical scores then tabulated and analysed with the help of computers using sophisticated analytical techniques.


6.Report Preparation

The researcher prepares a report of her/his findings to be presented to the relevant parties.

It may or may not include any recommendations for action depending on the requirements of the management.

The report includes a description of the methodology used, as well as tables and graphics to support the research findings.

The researcher should present major findings that are relevant to decisions facing management and avoid detailing numbers and fancy jargon such as “multivariate analysis of variance.”


Levels of Consumer Decision making

Extensive Problem Solving

Limited Problem Solving

Routine Response Behavior


Complex Decision Making or Extensive Problem Solving Models:

When consumers have not established criteria for evaluating a product category or specific brands in that category, then they will consider to a small, manageable subset, their decision making efforts can be classified as extensive problem solving

At this level, the consumer needs a great deal of information to establish a set of criteria on which to judge specific brands and a correspondingly large amount of information concerning each of the brands to be considered.


Low Involvement Decision Making or Limited Problem Solving Model

At this level of problem solving ,consumers already have established the basic criteria for evaluating the product category and the various brands in that category. However, they have not fully established preferences concerning a select group of brands.

Their search for additional information is more like ‘fine-tuning'; they must gather additional brand information to discriminate among various brands.


Routinised Response Behavior At this level Consumers have experience with the product

category and a well established set of criteria with which to evaluate the brands they are considering.

In some situations ,they may search for a small amount of additional information; in others, they simply review what they already know.


Four Views of Consumer decision making

An Economic view

A Passive view

A Cognitive view

An Emotional view


An Economic view

The Consumer has often been characterized as making rational decisions


The Economic view

Rational Customers Have To … Be aware of all available

product alternatives

Be capable of correctly ranking each alternative in terms of its benefits and disadvantages

Be able to identify the best alternatives


Why is the Classical Economic Model Considered Unrealistic? People are limited by their

existing skills, habits

People are limited to the extent of their knowledge

A Passive View

Here Consumers are perceived as impulsive and irrational purchasers, ready to yield to the aims and into the arms of marketers

Limitation: The passive model fails to recognize that the consumer plays an equal role in many buying decisions-sometimes by seeking information about product alternatives and selecting the product that appears to offer the greatest satisfaction and other times by impulsively selecting a product that satisfies the mood or emotion of the moment


A Cognitive View This portrays the consumer as a thinking problem solver.

Consumers are picturised as either receptive to or actively searching for products and services that fulfill their needs and enrich their lives

The cognitive model focuses on the processes by which consumers seek and evaluate information about selected brands and retail outlets.

The Consumers are viewed as information processors. Information processing leads to the formation of preferences and ultimately to purchase intentions.


An emotional view When a consumer makes an emotional purchase decision, less

emphasis is placed on the search for pre-purchase information. Instead, more emphasis is placed on current mood and feelings

‘ Emotional View’ is related to perceive consumer’s decision making based on their emotional association or feeling about some products and services.

For instance, A person who miss a favourite fountain pen might go to great lengths look for it.


The nature of Situational Influences Situational influences are temporary

environmental conditions that exist at a specific time and place and which influence consumer behaviour

Marketers must understand: The types of situations and how they

influence behaviour How different situations affect consumers How strong the situational influence is

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Outcomes of Post purchase Evaluation Actual Performance Matches

Expectations

Actual Performance Exceeds Expectations

Performance is Below Expectations

Types of Situations Different types of situations that affect

your purchasing decisions include:

1. The message communication situation

1. The purchase situation

1. The consumption situation or usage situation

1. Disposition Situation


The Communication Situation

The communication situation refers to the setting in which consumers are exposed to information ,which will have impact on their behavior.

The exposure situation: Whether the consumer is alone or in a group, in a good or bad mood ,in a hurry or relaxed may determine the degree to which the consumer will and retain the information.

The Context of the communication: Communication situation focuses on answering whether it would be better to advertise on a happy or sad TV programme,or a calm and exciting programme. (coco cola has a policy of not advertising during sad programme.)

Happy programmes lead consumers to have more positive thoughts during exposure to the commercial and a higher level of ad recall than sad programmes.

The consumer’s mood while exposure to communication occurs: Pleasant mood tends to positively influence processing and recall of brand related information


Purchase Situation . Three factors particularly influence marketing

strategy with regard to purchase situation:

1. In-store purchase Situation.(décor,sounds,aroma,lighting,dress and behavior of sales personnel, product availability, displays and physical space are important factors.)

1. Purchase situation relates to gift giving. (Consumers are likely to be more involved while purchasing a gift than purchasing the same item for personal consumption)

1. Unanticipated Purchase situation: Sometimes ,purchase situations occur which are not anticipated. A common situation is when unexpected guests arrive and consumers have to rush for special shopping.


The consumption situation or usage situation The consumption situation refers to the

occasion of consumers’ product use. For e.g. People use different dresses to

wear at home and at work.


Disposition Situation Some Consumers consider ease of

disposition as an important product attribute

These people may purchase only items that can be easily recycled


The Situational characteristics and consumption behaviour

Physical Surroundings

Social surroundings

Temporal Perspectives

Task definition

Antecedent states04/08/23 57CB- DEL HAWKINS, ROJER BEST

Physical Surroundings Physical Surroundings is the sum of

all the physical features of a retail environment.

1.Colors 2.Aromas 3.Music 4.Crowding


Social surroundings

Social surroundingsDeal with other persons present who could have an impact on the individual

consumer's behavior; the effects of other people on a consumer in a consumer activity

We act differently amongst different people – e.g. family vs friends

The people you shop with can influence your behaviour

You are in a store looking at personal care products. a classmate sees you and stops to chat. Would this encounter affect what brand you choose? Would you delay the purchase?

You are walking through the mall and something in the store looks interesting. Would you stop to further investigate if you are with your best friend? If you are with your mother?


Temporal Perspectives Temporal perspectives deal with the effect of time on

consumer behavior.

Limited purchase time often limits search

Internet shopping is growing rapidly as a result of the time pressures felt by consumers.

You have a job interview lined up for next day and need an interview outfit


Reflects the purpose or reason for engaging in the buying or consumption behaviour

shopping for a birthday gift

shopping for bread and milk

shopping for an interview outfit

using a computer at home

using a computer at work

Task definition


Antecedent States:

ANTECEDENT STATES Features of the individual person that are not lasting or relatively enduring characteristics

ANTECEDENT STATES are momentary conditions such as shopping when in a bad mood, tired or anxious or buying on impulse


A Model of Consumer Decision Making

INPUT

PROCESS

OUTPUT


Figure 16.2 A Simple Model of Consumer Decision Making

Firm’s Marketing Efforts1. Product2. Promotion3. Price4. Channels of distribution

Sociocultural Environment1. Family2. Informal sources3. Other noncommercial sources4. Social class5. Subculture and culture

Need Recognition

Prepurchase Search

Evaluation of Alternatives

Psychological Field1. Motivation2. Perception3. Learning4. Personality5. Attitudes

Experience

Purchase1. Trial2. Repeat purchase

Postpurchase EvaluationOutput

Process

Input

External Influences

Consumer Decision Making

Postdecision Behavior

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Input Stage: Influences the consumer’s recognition of a product need .

It consists of two major sources of information: 1. The firm’s marketing efforts (the product itself , its price, its

promotion, and where it is sold)2. The External sociological influences on the consumer

(family,friends,neighbours,other informal and noncommercial sources, social class, and cultural and sub cultural membership)

The cumulative impact of each firm’s marketing efforts, the influence of family,friends,and neighbors and society’s existing code of behavior are all inputs that are likely to affect what consumers purchase and how they use what they buy.

Input Stage


Process Stage Process Stage: It focuses on how consumers make

decisions.

The psychological factors inherent in each individual(motivation,perception,learning,

personality, and attitudes) affect consumer decision making process. (what they need or want ,their awareness of various product choices, their information –gathering activities, and their evaluation of alternatives)

The Experience gained through evaluation of alternatives ,in turn,affect the consumer’s existing psychological attributes


Three Stages of Consumer Decision Making

Need Recognition Prepurchase Search Evaluation of Alternatives

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Need Need RecognitionRecognition

The realization by the consumer that there is a

difference between “what is” and “what should be.”


Prepurchase Prepurchase SearchSearch

A stage in the consumer decision-making process in

which the consumer perceives a need and

actively seeks out information concerning products that will help

satisfy that need.


Evaluation of Evaluation of alternativesalternatives

A stage in the consumer decision-making process in

which the consumer appraises the benefits to be

derived from each of the product alternatives being

considered.


CONCLUSIONGone are the days of producing the products according

to the manufacturer/Company’s preference

Its is the time where everything starts with the Customer. To be competitive & survive in the market, every company should continuously go for Consumer research & update its product features.

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consumer research

Documents

research objectives

research methods

secondary data secondary

primary data

data analysis

market research

consumers consumer research

data objective