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Session 3

Consumer Research

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Chapter Outline

• Introduction to Quantitative and Qualitative

Research

• Overview of the Consumer Decision Process

• Quantitative Research

• Qualitative Research

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The Consumer Research Process

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Developing Research Objectives

• First & most difficult step in CRP is to define

Objective

• Defining purposes and objectives helps ensure an

appropriate research design.

• A statement of objectives helps to define the type

and level of information needed.

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Quantitative Research

• How many consumers are there in population who

use Santoor soap?

• Enables marketers to “predict” consumer behavior.

• Research methods include experiments, survey

techniques, and observation.

• Findings are descriptive and can be generalized to

larger populations.

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Qualitative Research

• Study come up with new ideas for product extension

or concept for future promotion

• Consists of depth interviews, focus groups,

metaphor analysis, collage research, and projective

techniques.

• Administered by highly trained interviewer-analysts.

• Findings tend to be subjective.

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Discussion Questions

Assume you are planning to open a new

Chinese restaurant near your campus.

• What might be three objectives of a research

plan for your new business?

• How could you gather these data?

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Secondary Data

• It is already existing information that was

originally gathered for research purpose other

than the present research.

• Includes internal and external data

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Types of Secondary Data

Internal Data

• Data generated in-house

• May include analysis of

customer files

• Useful for calculating

Customer lifetime value

which include customer

acquisition cost , profit

generated from individual

sale

External Data

• Data collected by an outside

organization

• Includes government,

newspapers, books, search

engines

• Commercial data is also

available from market

research firms

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U.S. Census Data

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Discussion QuestionPersonal Privacy

Many people do not like the fact that their personal

data are used for marketing.

• How can marketer’s justify their need for data?

• How can they acquire data and maintain customer

privacy?

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Designing Primary Research

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Depth Interview

• Usually duration of 20 to 60 Minutes between single

respondent and highly trained researcher

• Establish atmosphere that encourages the

consumer respondent

• It provide marketers with valuable idea about

product design or re design

• Listen to words as well as observe “body language”

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Focus Group

• 8-10 participants who meet research analyst to

focus on

• Take about 2 hours to complete

• Greater number of new ideas come about than

depth interview

• Often held in front of two-way mirrors

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Online Focus Groups Are Gaining in Popularity

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Discussion Guide

It is kind of agenda of topics and issues that need to be covered over the

course of depth interview and focus group.

1. Why did you decide to use your current cellular company?

2. How long have you used your current cellular company?

3. Have you ever switched services? When? What caused the change?

4. What are the important criteria in selecting a cellular service?

Ex. Creating vegetable Soups (Book Example)

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Projective Techniques• Research procedures designed to identify consumers’ subconscious

feelings and motivations

• Consist of a variety of hidden “tests”.

• It is design to make it easier for consumer to express themselves.

– Word Association

– Sentence completion

– Photo / visual for story telling

– Role play

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Research Uses a Variety of Projective Techniques

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Metaphor Analysis

• It is important to use a set of engaging tasks

and exercises to get consumer participants to

get in touch with their own feelings.

• Based on belief that metaphors are the most

basic method of thought and communication

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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

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Mechanical Observational Research

• Uses mechanical or electronic device to record

consumer behavior or response

• Consumers’ increased use of highly convenient

technologies will create more records for marketers

• Product audits which monitor sales are heavily used

by companies

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Foxwoods Casino Uses Mechanical Observational

Research

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Mechanical Observation

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Experimentation (Student Presentation)

• Can be used to test the relative sales appeal of

many types of variables

• An experiment is usually controlled with only some

variables manipulated at a time while the others are

constant

• Can be conducted in laboratories or in the field

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Surveys Research

Personal Interview

Mail

Telephone

Online

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Online Surveys Are Growing in Popularity

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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

Table 2.2 Comparative Advantages

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Validity and Reliability

• If a study has validity it collects the appropriate data

for the study.

• A study has reliability if the same questions, asked

of a similar sample, produce the same findings.

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Quantitative Research Data Collection Instrument

I. Questionnaires

II. Attitude Scale

III. Customer Satisfaction Measurement

IV. Sampling and Data Collection

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Questionnaires

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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

• Behavior intention scales: also easy to construct

and administer

• Rank-order scales: subjects rank items in order of

preference in terms of some criteria

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Customer Satisfaction Survey

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Sampling and Data Collection

• Samples are a subset of the population used to

estimate characteristics of the entire population.

• A sampling plan addresses:

– Whom to survey

– How many to survey

– How to select them

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Data Analysis and Reporting Findings

• Open-ended questions are coded and quantified.

• All responses are tabulated and analyzed.

• Final report includes executive summary, body,

tables, and graphs.

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End of Session

“In order to succeed, we must first believe that

we can.”