Consumer Behavior MKTG 302-PSYC 335 Consumer Research Prof. Dr. Zeynep Gürhan-Canlı

Learning About Customers Primary research Secondary research (Literature Review) Existing databases from library ABI Inform Complete Business Source Complete PsycARTICLES Using search engines like Google

For your group project... Literature review is NOT cut and paste from selected articles After you choose relevant articles Read them (at least their introduction and conclusions). Summarize them not article by article but topic by topic. Your literature review section should read like a short paper by itself.

Primary Research Quantitative vs. Qualitative Data Collection Quantitative Data Collection = Numbers Qualitative Data Collection = Words Quantitative vs. Qualitative Data Analysis Qualitative analysis. What do the interviews mean? What insights can we deduce from what was said that are important to our goals. Qualitative data can also be turned into numbers and analyzed quantitatively. Code and count

Surveys: Levels of Quantification Nominal data: Yes or no? Check all of the features that you would be willing to pay extra for a new dishwasher. Ordinal data: Greater than or lesser than? Below you see two prototypes for a dishwasher, which one would you prefer? Interval and ratio data: How much? On a scale of 1 to 5, where 1 = strongly disagree and 5 = strongly agree, how much do you agree with the following statements? How much would you pay for this dishwasher?

As We Move from Nominal to Ratio Data . . . We gain more information. Which lets us use more powerful statistical techniques. But . . . Consumers have a harder time answering our questions. Sometimes they don’t answer them at all. Sometimes their answers are unreliable.

Levels of Qualitative Data Shallow: Short answer Example: What features would you be willing to pay for if we were to add them to the next model of our Toastmaster 2000? Example: “Other” boxes. Deep: Surfacing thoughts and feelings the consumer was probably not overtly aware of before the interview. Developed through an ongoing series of questions and probes.

As We Move from Shallow to Deeper Qualitative Data . . . The level of insight into underlying consumer needs and wants increases. Empathic understanding for the customer (“consumer insight”) increases. But, the cost to gather the data also increases. As does the amount of time, emotional energy, and self disclosure that is required of the consumer. Quantification of the data becomes harder.

Validity of Research External validity refers to the extent to which findings can be generalized to the target population. Internal validity refers to the extent to which responses to the questions are free from bias. Researchers, order and type of questions, and contextual factors can be sources of bias.

Primary Research Quantitative Research Qualitative Research Surveys Experiments Some observational techniques Qualitative Research Focus groups Depth interviews Observation (Ethnographic research) Projective techniques Metaphor analysis (e.g., ZMET)

Experimental Design In an experimental design, researchers are interested in finding out cause-effect relationship. Independent variables (e.g., pricing, packaging, etc.) are manipulated and their effects on the dependent variables (e.g., attitudes, choice) are observed. “Confounding variables” affect internal validity of experimental research (in addition to the effects of contextual factors, order and types of questions, and interviewer-related factors).

Focus Groups A focus group is a planned, focused discussion involving similar people designed to obtain qualitative data regarding the perceptions, feelings and manner of thinking about products, services, or opportunities. In a good group, the participants talk to each other, and the moderator listens in. However, the moderator stays subtly in control. NOT a method of conducting several interviews at once. Each focus group is a single unit of analysis.

Advantages of Focus Groups Similar strangers allow for open, non-judgmental discussion. Probing into problems and feelings. Useful for idea generation. They are low(ish)-cost and timely. Are less likely than individual interviews to generate idiosyncratic comments.

Disadvantages of Focus Groups Sometime idiosyncratic information can be useful, if the researcher can make the abstract connections to more general themes. Best-suited to products people are used to talking about, i.e. socially oriented and/or consumed products and services. Recruiting focus groups can be difficult.