MKT 450 PRIMARY CONSUMER RESEARCH METHODS Lars Perner, Instructor 1 PRIMARY CONSUMER MARKET RESEARCH METHODS Primary research methods techniques –Advantages

MKT 450 PRIMARY CONSUMER RESEARCH METHODS Lars Perner, Instructor 1

PRIMARY CONSUMER MARKET RESEARCH METHODS

• Primary research methods techniques– Advantages and

disadvantages


Learning Objectives

• Appreciate the costs and benefits of research

• Appreciate the uses of both primary and secondary market research

• Appreciate the respective advantages and disadvantages of different primary research methods

• Develop an understanding of research method problems that can lead to misleading or incorrect conclusions.

• Understand the proper sequence of research activities.


Data Mining

• Processing of vast amounts of data to find relationships between variables—e.g.,– Items frequently purchased together

“strategic adjacencies” (items placed together in retail setting)

– Seasonal patterns in sales– Customer segments


Doing Research from Secondary Data

• Items bought together (e.g., Amazon.com recommendations)

• Scanner data

• Direct mail experimentation (“split catalog” mailings) with varied– Prices– Design (e.g., colors)– Messages (ad copy)


Some Primary Research Methods

• Surveys• Experimentation• Observation• Participant observation• Focus groups• In-depth interviews• Projective techniques• Physiological Measures• Online research• Scanner data• Conjoint analysis• Hybrid Methods


Primary Research Methods

• Exploratory Methods– Observation (can be

more definitive with larger sample sizes and focus on specific behavior)

– In-depth interviews– Focus groups– Projective techniques

• Precision Methods – Experiments– Surveys– Panel– Scanner data


Choosing a Primary Research Method

Does the question involve OPINIONS or

BEHAVIOR?

Can the respondent answer accurately?

(What someone consciously believes may

differ from “deeper” opinions; beliefs about

hypothetical products may not be well developed.)

OPINIONS

EXPLORATORY or PRECISION research?

YES

FOCUS GROUPS

INDIVIDUAL INTERVIEWS

SURVEYS

EXPLORATORY PRECISION

BEHAVIOR

NO

PROJECTIVEMETHODS

SCANNER DATA (e.g., brand choice, impact of advertising,

previous purchases, competing brands, demographics)

EXPERIMENTATION (determine causality—e.g., impact of product design,

advertising message)

PHYSIOLOGICAL (e.g., determine reactions, attention,

arousal)

OBSERVATION (e.g., how long does the shopper spend? What does he or she look at? Is

anyone else involved?)

Can the relevant behavior be

observed in the customer’s natural

environment?

NOYES


Surveys

• Forms– Mail (self-administered, single

time)

– Mail panel (self-administered, multiple surveys administered over time)

– Telephone (from central location)

– Mall Intercept

– Computer/Internet

• Planned questions– Open-ended

– Closed-ended

• Need large sample sizes for precise conclusions

SURVEY COSTS:USUALLY LOW


Continuum Questions

• Questions rating the degree of a characteristic (e.g., agreement or product usage) tend to be more effective than binary “Yes/No” questions

• E.g.,

5 4 3 2 1Strongly Neither Strongly Agree Agree Agree Nor Disagree Disagree

Disagree


Some Areas Suited for Continuum Ratings

• Interest• Purchase

likelihood• Satisfaction/

Dissatisfaction• Brand loyalty• Price sensitivity• Knowledge• Experience

• Involvement• Decision control• Frequency or level of

use• Awareness• Information search• Personality traits• Variety seeking


Experimentation

• Subjects in different groups treated differently– E.g., for some, “target”

product is given better shelf space

– E.g., some get coupon

• Can help isolate causes• Subject is not biased by

questions—does not know how others are treated

EXPERIMENT COSTS:HIGH


My Simulated Store…

A shopper in the everyday low price condition…


Ash’s Instant Coffee Study

GROCERY SHOPPING LIST

Ground beefPotatoesApplesFlourSugarLaundry detergentInstant coffee6 cups of yogurtPaper towelsBananas

GROCERY SHOPPING LIST

Ground beefPotatoesApplesFlourSugarLaundry detergentGround coffee6 cups of yogurtPaper towelsBananas

Respondents were asked to describe their impressions of a housewife based only on her shopping list. These shopping lists differ only on one item.


The Color Study

• Subjects were shown a photo of one of eight combinations (2x2x2x2)– Hue (red or blue)– Chroma (intensity) (high, low)– Value (lightness) (high, low)– Advertising copy (relaxing,

exciting)

• Everything else was kept constant


Car Study, Part 2

• Respondents reported– How they felt (manipulation check)

• Excitement

– Evaluation of the Suzuki Esteem


Definition

• Confound: The tendency of some phenomenon to be caused at least in part by some variable other than the one of interest.

• E.g., does having more toys cause children to be more intelligent?


Confounds

• What is cause, what is effect, and what is coincidence?

• Correlation is not necessarily cause• “Lurking” factors may be real cause

of – Does sitting in front of the room cause

higher grades?– Do fish-heavy diets cause stomach

cancer?– Does fraternity/sorority membership

cause higher grades?


Observation

• Looking at consumes in the field—e.g.,– Searching for product category area– Number of products inspected and time

spent on each– Apparent scrutiny of labels or other

information– Involvement of others– Behavior under limiting circumstances

(e.g., time constraints)

OBSERVATION COSTS:LOW TO HIGH

(DEPENDING ON CODING AND ANALYSIS NEEDED)


Taste Tests

• Not experiments unless– Two or more groups of people are treated differently (e.g.,

get different food version) or– The same person is being treated differently at separate

times (e.g., half the participants receive new formulation, then current; half the participants receive in the opposite order)

• “Triangle” Measure– Each respondent is given three items: One current, one

new, and one duplicate of either old or new– Asked to identify the one that is different and explain why


Focus Groups

• Groups of 8-12 consumers assembled

• Start out talking generally about context of product

• Gradually “focus” in on actual product

Usually NOT the best

approach. Should

NOT be chosen as

default research

method!

MOST APPROPRIATE

AS EARLYSTAGE METHOD

FOCUS GROUP COSTS:HIGH

(ESPECIALLY FOR THE AMOUNT OF INFORMATION COLLECTED)


REMINDER

• Focus groups are most useful for identifying issues that should be studied in more detail with more precise methods

• Due to the small sample size and social influence on individual responses, it is difficult to generalize much from focus groups


In-depth interviews

• Structured vs. unstructured interviews

• Generalizing to other consumers

• Biases– Subtle, inadvertent

feedback

IN-DEPTH INTERVIEW COSTS:

HIGH


Projective Techniques

• Getting at motivations that may not be consciously known— “Tell a story about this picture.”

• Measurement of attitudes consumers are unwilling to express– It is easier to admit something embarrassing

about someone else

• Consumer discusses what other consumer might think, feel, or do

PROJECTIVE METHODS COSTS:USUALLY HIGH IF PERSONAL INTERVIEWS OR

EXTENSIVEINTERPRETATION IS NEEDED


Projective Examples

“Please tell me a story of what is going on in this picture.”





More Projective Examples


Projective Techniques--Examples


Physiological Measures

• Consumer bodily responses are watched at various phases of advertisement or other marketing exposure

• Tracking of– Eye movements

• For areas of focus• For attention, involvement

– Heart rate– Skin conductivity– Brain waves

• State of mind• Attention

PHYSIOLOGICAL METHODS COSTS:

HIGH


Online Research—Analysis of Customer Search Queries

• Unmet demand—search for product not found on site

• Consumer vocabulary

ONLINE SURVEY COSTS:USUALLY LOW


Online Surveys

• Conditional branching—direct skip to relevant question

• Quality of response– Time pressures– Willingness to write out answers or respond to

multiple closed-ended questions– Willingness to read and follow instructions is

limited

• Reliability and browser compatibility issues


Conditional Branching

• Traditional surveys: Have you bought a new car during the last six months? If not, please skip to Question 11.

• Conditional branching: Respondent will be taken to the appropriate question according to answer

• Customization of questions– E.g., consumer lists three brands subsequent

questions ask about these specific brands by name


Other Online Tools

• “Click Stream Analysis:” Analysis of “clicking” path—how does the consumer get to a desired page or product?

• Shopping cart analysis

COSTS: HIGH START-UP COSTS;LOW VARIABLE COSTS

POSSIBLE WITH DEVELOPEDALGORITHMS

USUALLY LOW



USUALLY LOW


Searching for Reports of Personal Experience• Sources

– Blogs (blogsearch.google.com)

– Photos (e.g., Flickr, Webshots, Picasaweb, Google image search)

– Video (e.g., Youtube)

• Cautions– May be “staged” or

sensationalized

– May represent what the writer or photographer wants to show

– May be limited entries on certain “mundane” tasks such as dishwashing

• Some issues– Joy, enjoyment

– Decisions

– Anxiety

– Social setting and influence


Electronic Interpretation of Blogs and Other Content

• Technology has been developed to “estimate”– Demographics of an

individual (e.g., based on word choice) of a blogger

– Overall positive or negative evaluation


Online Market Research Concerns

• Representativeness of – Population—are relevant groups

reached in desired proportions?

– Sample—even if the desired population is reached, do respondents respond in desired proportions?

• Willingness of participants to follow instructions

• Timing of survey participation requests

• Panel recruitment• Privacy


Conjoint Analysis

• Consumers rate several “profiles” (combinations of features)

• Statistical analysis is used to “decompose” ratings into preferences


Example

Car #1Gas mileage: 30 mpgPrice: $18,200Safety record: AveragePerformance HighReliability Poor

How would you rate car #1 overallon a scale from 1 (Very poor) to7 (Excellent?)

1 2 3 4 5 6 7

Car #2Gas mileage: 20 mpgPrice: $15,200Safety record: ExcellentPerformance PoorReliability Excellent

How would you rate car #2 overallon a scale from 1 (Very poor) to7 (Excellent?)

1 2 3 4 5 6 7

Each subject will evaluate several combinations. A statisticaltechnique determines the importance of each feature.


Conjoint Analysis: Advantages

• Reveals ultimate preferences of consumers when competing influences exist

• Able to predict desirability of combinations not actually explored

• Can estimate contribution of each factor and assess its cost effectiveness– Will consumers pay $500.00 to

reduce the weight of a laptop computer by 2 lbs?


Conjoint Analysis: Disadvantages

• May be difficult for subjects to rate many combinations

• May need a large number of subjects for accurate measurement/sufficient precision

• Must identify relevant attributes and levels in advance

• Subject must know about product category (attributes must be meaningful)


Scanner Data

• Panel members in test communities agree to– Swipe a card prior to each purchase– Have purchases matched to

• Demographic profiles• Media/coupon exposure• Promotional status of competing brands• Past purchases

• Problems:– Aggregation over household– Aggregation bias--averages of

disparate segments obscure!– Only available for grocery and

some drugstore products



USUALLY LOW


Scanner Data Research

TELEVISIONEXPOSURE

DEMOGRAPHICINFORMATION

ANALYSIS

RECORDEDPURCHASES

HOUSEHOLDFILE

Purchase on occasion: Yes, noTime since previous purchasePrevious purchasesCurrent pricePrevious priceCurrent promotional statusPrevious promotional statusCurrent display statusPrevious display statusDisplay status of competing brandsPromotional status of competing brandsCoupon used: Yes, noCoupon available: Yes, noCoupon available for other brands? Yes, noAmount of couponFamily size

OccupationFamily sizeIncomeHome ownership

No. of ads seen by shopperAds seen for competing brands“Split cable”


Choosing a Primary Research Method

Does the question involve OPINIONS or

BEHAVIOR?

Can the respondent answer accurately?

(What someone consciously believes may

differ from “deeper” opinions; beliefs about

hypothetical products may not be well developed.)

OPINIONS

EXPLORATORY or PRECISION research?

YES

FOCUS GROUPS

INDIVIDUAL INTERVIEWS

SURVEYS

EXPLORATORY PRECISION

BEHAVIOR

NO

PROJECTIVEMETHODS

SCANNER DATA (e.g., brand choice, impact of advertising,

previous purchases, competing brands, demographics)

EXPERIMENTATION (determine causality—e.g., impact of product design,

advertising message)

PHYSIOLOGICAL (e.g., determine reactions, attention,

arousal)

OBSERVATION (e.g., how long does the shopper spend? What does he or she look at? Is

anyone else involved?)

Can the relevant behavior be

observed in the customer’s natural

environment?

NOYES

Documents

MKT 450 PRIMARY CONSUMER RESEARCH METHODS Lars Perner, Instructor 1 PRIMARY CONSUMER MARKET RESEARCH METHODS Primary research methods techniques –Advantages