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The Consumer Research Process CHAPTER TWO. Learning Objectives 1.To Understand the Importance of Consumer Research for Firms and Their Brands, as Well.

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Presentation on theme: "The Consumer Research Process CHAPTER TWO. Learning Objectives 1.To Understand the Importance of Consumer Research for Firms and Their Brands, as Well."— Presentation transcript:

1 The Consumer Research Process CHAPTER TWO

2 Learning Objectives 1.To Understand the Importance of Consumer Research for Firms and Their Brands, as Well as Consumers. 2.To Understand the Steps in the Consumer Research Process. 3.To Understand the Importance of Establishing Specific Research Objectives as the First Step in the Design of a Consumer Research Project. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall2Chapter Two Slide

3 Learning Objectives (continued) 4.To Understand the Purposes and Types of Secondary Consumer Research That Is Available for Making Decisions or Planning Future Consumer Research. 5.To Understand Specific Features and Applications of Different Research Methods to Be Carried Out in Consumer Research Studies. 6.To Understand Where Data Analysis and Reporting of Findings Fit in the Research Process. 7.To Understand How Each Element of the Consumer Research Process Adds to the Overall Outcome of the Research Study. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall3Chapter Two Slide

4 Outline Overview of consumer research process Design Secondary research study

5 Why Do Marketers Regularly Test Print Ads Like This One Before They Are Placed in the Media? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall5Chapter Two Slide

6 To Test the Impact of the Message Before Spending Large Amounts of Money Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall6Chapter Two Slide

7 The Importance of the Consumer Research Process Marketers must understand customers to design effective: – marketing strategies – products – promotional messages Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall7Chapter Two Slide

8 How Consumer Research Helps Real Business Iams, a Procter & Gamble brand that makes pet food, noticed that some consumers were supplementing dry pet food with some form of treat, particularly to get older pets with dental problems to eat it. Iams then conducted quantitative research to determine if this practice was common among consumers. The research indicated that 40% of pet owners use such methods. In response, Iams launched Savory Sauce, a more convenient alternative to table scraps. The product has been so successful that Iams has since extended this line to include eight varieties, including sauces for use with puppies.

9 The Consumer Research Process Figure 2.2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall9Chapter Two Slide

10 The Consumer Research Process Secondary research Primary research – Qualitative – Quantitative Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall10Chapter Two Slide

11 Developing Research Objectives Defining purposes and objectives helps ensure an appropriate research design. A written statement of objectives helps to define the type and level of information needed. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall11Chapter Two Slide

12 Example of research objectives Management Problem: Why are store revenues so low? Possible research objective: – Investigate current customer satisfaction – Assess target market perceptions of store and competitors – Determine target market awareness

13 Discussion Questions Assume you are planning to open a new pizza restaurant near your campus. – What might be three objectives of a research plan for your new business? – How could you gather these data? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 13Chapter Two Slide

14 Secondary Data Data that has been collected for reasons other than the specific research project at hand Includes internal and external data Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall14Chapter Two Slide

15 Types of Secondary Data Internal Data Data generated in-house May include analysis of customer files Useful for calculating customer lifetime value External Data Data collected by an outside organization Includes federal government, periodicals, newspapers, books, search engines Commercial data is also available from market research firms Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall15Chapter Two Slide

16 Demographic profile Area xU.S Population151, years and over68%75.4% Median family income51,79362,363 Language other than English spoken at home 66.5%19.6% Average household size

17 Video Discussion: AC Nielson What technique does AC Nielson use to help profile consumers?

18 Quality of Secondary Data Who sponsored the research? – Advocacy research, or research conducted to support a position rather than to find the truth about an issue, is blatantly unethical What is the ability of the researchers? – Experience is an important consideration for assessing quality Process of data collection – Bias-free access to respondents is an important consideration for assessing quality

19 Pros and Cons of Secondary Data Advantages of Secondary Data – Time savings – Cost savings Disadvantages of Secondary Data – Problems of fit – Problems of accuracy

20 Outline Primary research – Qualitative study – Quantitative study: Data collection methods Test market Concept of Measurements – Reliability and Validity – Measurements Common in Consumer Behavior

21 Designing Primary Research Qualitative Research Depth Interviews Focus Groups Projective Techniques Metaphor Analysis Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall21Chapter Two Slide

22 Qualitative Collection Method Depth Interview Also called one-on-one interview Usually 20 minutes to 1 hour Nonstructured Interviewer will often probe to get more feedback (see following slide for probing) Session is usually recorded Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall22Chapter Two Slide

23 Qualitative Collection Method Focus Group 8-10 participants Respondents are recruited through a screener questionnaire Lasts about 2 hours Always taped or videotaped to assist analysis Often held in front of two-way mirrors Online focus groups are growing Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 23Chapter Two Slide

24 Discussion Guides for Research Step-by-step outline for depth interviews and focus groups Interviewers will often “improvise” and go beyond the discussion guide Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall24Chapter Two Slide

25 Focus Group Discussion Guide - Figure 2.4 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall25Chapter Two Slide

26 Qualitative Collection Method Projective Techniques Research procedures designed to identify consumers’ subconscious feelings and underlying motivations Consist of a variety of disguised “tests” Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall26Chapter Two Slide

27 Common Projective Exercises Table 2.1 (excerpt) Description Word Associations The researcher has a list of words, some of them to be studied and some just as “filler.” The researcher asks the respondent(s) to react, one-at-a time, to each word by stating or (in a focus group setting) writing on a pad the first word that comes to mind, and to explain the link. Sentence Completion The researcher has a series of incomplete sentences that the respondent(s) needs to complete with a word or phrase. Photo/Visual for Storytelling The researcher creates/selects a series of photos of consumers, different brands or products, range of print ads, etc., to serve as stimuli. The respondents are asked to discuss or tell a story based on their response to a photo or some other visual stimulus. Role PlayingIs quite similar to storytelling; however, instead of telling a story, the participant(s) will be given a situation and asked to “act out” the role(s), often with regard to a product or brand, or particular selling situation. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall27Chapter Two Slide

28 Example of Word Association What comes to your mind when you think of “Coca-Cola” – Responses frequency – Response time

29 Example of Sentence Completion Complete the following sentences: – People who are concerned about ecology ______. – A person who does not use lour lakes for creation is ______

30 Compare the Differences People who are concerned about ecology care about the future. A person who does not use our lakes for recreation is being thoughtful about the ecosystem. People who are concerned about ecology are just tree- hugger who want to run up my taxes. A person who does not use our lakes for recreation is a person who doesn’t enjoy water sports.

31 Qualitative Collection Method Metaphor Analysis Based on belief that metaphors are the most basic method of thought and communication Zaltman Metaphor Elicitation Technique (ZMET) combines collage research and metaphor analysis to bring to the surface the mental models and the major themes or constructs that drive consumer thinking and behavior. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall31Chapter Two Slide

32 Qualitative Collection Method “Looking-In” Look at information from threads and postings on social media, including blogs and discussion forums Methodology to capture consumers’ experiences, opinions, forecasts, needs, and interests Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall32Chapter Two Slide

33 Part Two Design primary research

34 Designing Primary Research Quantitative Research Observation Experimentation Survey questionnaires Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall34Chapter Two Slide

35 Data Collection Methods 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall35Chapter Two Slide

36 Data Collection Methods 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 Audits are a type of mechanical observation which monitor sales Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall36Chapter Two Slide

37 Data Collection Methods Table 2.2 MailTelephonePersonal Interview Online CostLowModerateHighLow SpeedSlowImmediateSlowFast Response rateLowModerateHighSelf-selected Geographic flexibility ExcellentGoodDifficultExcellent Interviewer bias N/AModerateProblematicN/A Interviewer Supervision N/AEasyDifficultN/A Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall37Chapter Two Slide

38 Increase Mail Response Rate Include stamped and self-addressed envelop Multiple waves of reminders Use consumer panels

39 Increase Mail Response Rate If you were a marketing manager planning a mail survey to find out consumers’ attitude towards your products. Traditionally, mail survey is associated with low response rate of 1%. What suggestion would you give to increase respondent rate?

40 Example of Test Market New Coke Lesson A controlled experiment done in a limited but carefully selected sector of the marketplace. McDonald’s used test markets to determine that a market existed for McDonald’s own higher-end coffee drink.

41 Best and Worst Test Markets Rochester, N.Y Wichita, Kansas Eugene-Springfield, Oreg © 2010 South- Western/Cengage Churchill Brown Suter/Basic Marketing Research  Honolulu, Hawaii  San Francisco, Cali  New York, N.Y

42 Misfires in Market Testing Frito-Lay test-marketed it Max Potato, corn and tortilla chips containing the Olestra fat substitutes in Grand Junction, Colorado; A TV crew sampled the chips and succumbed to diarrhea, and then broadcast a report about it, creating lots of bad publicity for the chips Campbell Soup spent 18 months developing a blended fruit juice called “Juiceworks”. By the time the product reached the market, three competing brands were already on store shelves. Campbell dropped its product. © 2010 South- Western/Cengage Churchill Brown Suter/Basic Marketing Research

43 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 43Chapter Two Slide

44 Examples of Validly GMAT Test – Correlation between GMAT score and students’ performance in business school Test spelling ability with: “words” catcher, shortstop, foul, strike, walk, pitcher, outfielder”

45 Measurements in Consumer Behavior

46 Attitude Scales 46Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Asked to agree or disagree with a statement Easy to prepare & interpret Simple for consumers Likert scales Includes bipolar adjectives Relatively easy to construct and administer Semantic differential scales Measures likelihood consumers will act a certain way Easy to construct and administer Behavior intention scales Items ranked in order of preference in terms of some criteria Rank-order scales Chapter Two Slide

47 Likert Scale Respondents indicate their degree of agreement or disagreement with each of a number of statements. Five to nine categories work well

48 Churchill Brown Suter/Basic Marketing Research Strongly Disagree Agree Neither Agree nor Disagree Strongly Agree The celebrity endorser is trustworthy. The celebrity endorser is unattractive. The celebrity endorser is an expert on the product. The celebrity endorser is not knowledgeable about the product. Example of Likert Scale (c) 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

49 Semantic-differential Scale – Anchored by a set of bipolar adjectives or phrases – Particularly useful in corporate, brand and product-image studies.

50 Churchill Brown Suter/Basic Marketing Research CELEBRITY ENDORSER Knowledgeable Not Knowledgeable : : : : :: Not ExpertExpert :::::: Attractive Unattractive :::::: Not Trustworthy :::::: Example of an Itemized Rating Scale: Semantic- Differential Scale (c) 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

51 Behavioral Intention Scale Measures the likelihood that consumers will act in a certain way in the future Example: – How likely are you going to continue using Bank X’s online banking for the next six months? (7 as most likely, and 1 as least likely)

52 Rank Order Scale Subjects are asked to rank items such as products in order of preference. We rank the following beverage brand in terms of your preference – Coca Cola – Pepsi Cola – Sprite – Dr. pepper

53 Customer Satisfaction Measurement Customer Satisfaction Surveys – Analysis of Expectations versus Experience Mystery Shoppers Customer Complaint Analysis Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall53Chapter Two Slide

54 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 Researcher must choose probability or nonprobabililty sample. Chapter Two Slide Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 54

55 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall55Chapter Two Slide

56 The Consumer Research Process Figure 2.2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall56Chapter Two Slide

57 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 57Copyright 2010 Pearson Education, Inc. Publishing as Prentice HallChapter Seven Slide


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