How To Study Consumers: Focusing on the Methods

Learning Objectives
Why should marketers study consumers? What are the key methods used in the study of consumers? What are the key strengths and limitations of the methods?

Why Study Consumers?

Provides marketers with a thorough understanding of consumers. Enables marketers to make more informed predictions. Enables marketers to anticipate how they can better meet consumer needs. Increases success in the development of marketing strategies.
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A Classification of Consumer Research Data

Consumer Research Data

Secondary Data

Primary Data

Qualitative Data

Quantitative Data

Qualitative Vs. Quantitative Research

Qualitative Research
Objective To gain a qualitative understanding of the underlying reasons and motivations Small number of nonrepresentative cases Unstructured Non-statistical Develop an initial understanding

Quantitative Research
To quantify the data and generalize the results from the sample to the population of interest Large number of representative cases Structured Statistical Recommend a final course of action

Sample

Data Collection Data Analysis Outcome

Qualitative Methods
Focus Groups Interviews Projective Techniques

Focus Groups: are unstructured and direct way of obtaining information from a group of people.
Group Size
Group Composition

8-10/12 participants
Homogeneous, respondents, prescreened Relaxed, informal atmosphere 1-3 hours

Physical Setting Time Duration

Recording

Use of audiocassettes and videotapes

Observational, interpersonal, and communication skills of the moderator

Moderator

Benefits and Problems of Focus Groups

Benefits:
allow interaction among participants. Peer influence can support disclosure. Are flexible Allow respondents to be spontaneous.

Problems
Peer influence can suppress some unpopular attitudes. Dominant participants may affect opinions.

Interview
direct way of obtaining information on a one to one basis (face to face basis).
It can be
unstructured (depth), semi-structured or structured. provide rich data (allows for probing). Good for sensitive topics

But can be time consuming and costly.

Projective Techniques
An unstructured, indirect form of questioning that encourages respondents to project their underlying motivations, beliefs, attitudes or feelings.
Word-association tests Sentence completion tests Pictures/Cartoon construction tests

Example of A Cartoon Test

Sears

Lets see if we can pick up some house wares at Sears.

Examples of Uses of Qualitative Research Market Segmentation

Why does one segment use our product more than another? Who are our customers and how do they use our products?

New Product Development

What would our current market think of a proposed product idea. How will consumers embrace a new technology within their homes.

Quantitative Data Methods

Surveys Observation Experiments

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Surveys
Methods of collecting data based on questioning a respondents usually in the form of a structured questionnaire.
ask consumers about their purchase preferences in person, by mail, by telephone or online. Can be used to collect data from a large sample. Each survey method has advantages and disadvantages.

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A Comparative Evaluation of Survey Methods

SURVEY METHODS

CRITERIA
1. TASK FACTORS Diversity of questions and flexibility Use of Physical Stimuli Control of Sample Quantity of Data Response Rate 2. SITUATIONAL FACTORS Control of Data collection Environment Control of Field Force Potential for Interviewer Bias Speed Costs 3, RESPONDENTS FACTORS Perceived Anonymity of the Respondent Social Desirability Obtaining Sensitive Information

Telephone

In Home Interviews

Mall Intercept

Mail surveys

Emails/ Internet

Low to moderate Low

High Moderate to High

High High

Moderate Moderate

Moderate to high Low to Moderate

Moderate to High
Low Moderate Moderate Moderate Moderate High Moderate Moderate Moderate High High Low to moderate

Potentially High
High High Moderate to high Low High Moderate High Low High Low Low Low

Moderate
Moderate High High Moderate High Moderate to high Moderate to high Low High Low Low Low

Low
Moderate Low Low High None Low Low High Low High Moderate High

Low to Moderate
Moderate Very low to low Low High None High to very high Low Moderate to High Low to Moderate Moderate to High Moderate to High Moderate to high

Low incidence rate

Respondent control

Observation
Observational Researchinvolves recording the behavioural patterns of people, objects, and events in a systematic manner to obtain information about the subject of interest. E.g., consumers are watched during the process of buying and using products.
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Classification of Observation Methods

Structured vs. unstructured observation Disguised vs. undisguised observation Natural vs. Contrived Observation Personal vs. Mechanical observation
Marketers can disguise themselves as shoppers and determine in person how consumers make purchase decisions.

Advantages and Disadvantages of Observation

Advantages:
they focus on actual behavior rather than reports of preferred behavior. there is limited reporting bias. May be relatively cheaper and faster.

Disadvantages
It is often difficult to observe certain forms of behavior. Little is known about the underlying motives, beliefs, attitudes, and preferences. Bias in the researcher's perception. May be unethical.

Experimentation
Experimentation involves manipulating one or more independent variables and measuring their effect on the dependent variables while controlling the extraneous factors.
Relationships among variables. Types: One group vs. two groups; Randomization

Time consuming, difficult to administer & Costly.

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Conclusion
Studying consumers is critical but can be very complicated. A researcher has to evaluate various methods.

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