Consumer Research

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Prof. Aparna Kanchan
 Quantitative Research

• Descriptive in nature.
• Enables marketers to “predict” consumer
behavior.
• Research methods include experiments,
survey techniques, and observation.
• Findings are descriptive, empirical and
generalizable.
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 Positivism

A consumer behavior research approach

that regards the consumer behavior
discipline as an applied marketing
science.

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 Qualitative Research

• Consists of depth interviews, focus groups,

metaphor analysis, collage research, and
projective techniques.
• Administered by highly trained interviewer-
analysts.
• Findings tend to be subjective.
• Small sample sizes.

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 Interpretivism

A postmodernist approach to the study of

consumer behavior that focuses on the act
of consuming rather than on the act of
buying.

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 Comparisons between Positivism and
Interpretivism
PURPOSE
Positivism Interpretivism

Prediction of consumer Understanding consumption

actions practices
METHODOLOGY
Positivism Interpretivism

Quantitative Qualitative

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 continued
ASSUMPTIONS
Positivism
•Rationality; consumers make
decisions after weighing
alternatives
•The causes and effects of
behavior can be identified
•Individuals are problem
solvers
•A single reality exists
•Events can be objectively
measured
Interpretivism
•No single, objective truth
•Reality is subjective
•Cause and effect cannot be
isolated
•Each consumption experience
is unique
•Researcher/respondent
interactions affect research
findings
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 The Consumer Research Process

• Six steps
– defining the objectives of the research
– collecting and evaluating secondary data
– designing a primary research study
– collecting primary data
– analyzing the data
– preparing a report on the findings

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 The Consumer Research Process

Develop Objectives

Collect Secondary Data

Design Qualitative Research Design Quantitative Research

• Method • Method
• Screener questionnaire • Sample design
• Discussion guide • Data collection instrument

Conduct Research
Collect Primary Data
(Using highly trained
(Usually by field staff)
interviewers) Exploratory
Study
Analyze Data Analyze Data
(Subjective) (Objective)

Prepare Report Prepare report

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 Developing Research Objectives

• 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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 Secondary Versus Primary Data

• Secondary data: • Primary data: data

data that has been collected by the
collected for researcher for the
reasons other than purpose of meeting
the specific specific objectives
research project at
hand

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Major Sources of Secondary Data

Periodicals
Government
&
Publications
Books
Internal Commercial
Sources Data

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 Data Collection Methods

Observation

Experimentation

Surveys
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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.
• Widely used by interpretivist
researchers.

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 Observational Research
• Mechanical Observation – Uses a Mechanical or
electronic device to record customer behaviour or
response to a particular marketing stimulus

• Physiological Observation – Uses devices that

monitor respondents pattern of information
processing

• Eg: Electronic eye camera electronic sensors placed on

subjects heads

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 Experimentation

• Can be used to test the relative sales appeal of

many types of variables.
• Only one variable is manipulated at a time,
keeping other elements constant.
• Can be conducted in laboratories (Controlled
Experimentation) or
• In the field (test marketing)

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 Survey Data Collection Methods

Personal Interview

Mail

Telephone

Online

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 Personal Interview
• Most often take place in the home or in
retail shopping areas- Mall Intercepts
• Mall Intercepts advantage- Useful to
interview not-at-home working women &
the reluctance of many people today to
allow strangers at home

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 Telephone Surveys
• Used to collect consumer data- however
evenings & weekends are often the only
times to reach telephone respondents
– Less Responsive
– Hostile
• Difficulty of reaching people with unlisted
numbers

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 Mail Surveys
• Conducted by sending questionnaires directly to
individuals at their homes
• Disadvantage
– Low response rates
• Researchers have developed new techniques for
higher return rate
– Stamped Self-addressed envelope
– Provocative questionnaire
– Pre-notification as well as follow-up letters

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 Online Surveys
• Conducted on the internet
• Sample’s respondents are self-elected – hence
results cannot be projected to a large population
• Researchers have mixed feeling about the method
– Wide reach, affordable
– Internet encourages to be more forthright
– Data collected may be a suspect

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 Comparative Advantages
PERSONAL
MAIL TELEPHONE ONLINE
INTERVIEW
Cost Low Moderate High Low
Speed Slow Immediate Slow Fast
Response Self-
Low Moderate High
rate selection
Geographic
Excellent Good Difficult Excellent
flexibility
Interviewer
N/A Moderate Problematic N/A
bias
Interviewer
N/A Easy Difficult N/A
supervision
Quality of
Limited Limited Excellent Excellent
response

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Quantitative Research Data Collection

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 Data Collection Instruments
• Include questionnaires, personal inventories &
attitude scales

• DC instruments usually pretested & “ debugged”

to ensure the validity and the reliability of the
research study

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 The degree to which
a measurement
instrument
Validity
accurately reflects
what it is designed to
measure.

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 The degree to which a
measurement
Reliability instrument is
consistent in what it
measures.

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 Questionnaires
• Guidelines for wording questions
– Avoid Leading questions
• Eg: Do you often shop at such cost saving stores as Hypercity?
– Avoid two questions in one
• Eg: In your view did you save money and receive good service
when you last visited D Mart?
– Questions must be clear
• Eg: Where do you usually shop for your home supplies?
– Use words that consumers routinely use
• Rectify or Correct
– Respondents must be able to answer the question
• Eg: How many newspaper or TV ads of Hypercity did you see
in this month?
– Respondents must be willing to answer the question
• Eg: Questions about money, health issues, personal hygiene or
sexual preferences can embarrass respondents
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 Attitude Scales
• Likert scales: Most popular, easy for researchers
to prepare and interpret, and simple for consumers
to answer.
• Semantic differential scales: relatively easy to
construct and administer, bipolar adjectives
( good/bad, expensive/inexpensive etc.)
• Behaviour Intention Scale: Measures the
likelihood that the consumers will act in a certain
way in the future
• Rank-order scales: subjects rank items in order of
preference in terms of some criteria.
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 Example of a Likert Scale
Please place the number that best indicates how strongly you
agree or disagree with each of the following statements about
shopping online in the space to the left of the statement.

1 = Agree Strongly
2 = Agree
3 = Neither Agree or Disagree
4 = Disagree
5 = Disagree Strongly

_____ a. It is fun to shop online.

_____ b. Products often cost more online.
_____ c. It is a good way to find out about new products.

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 Rank-Order Scales

Rank the following computer manufacturers in

terms of hotline help by placing a 1 next to the one
who provides the best telephone help, a 2 next to
the second best, until you have ranked all six.

_____ IBM _____Hewlett Packard

_____ Dell _____ Gateway
_____ Compaq _____ NEC

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Qualitative Data Collection Methods

Depth Focus
Interviews Groups

Projective Metaphor
Techniques Analysis
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 •Structured vs.
unstructured interviews
•Generalizing to other
Depth
consumers
Interviews •Biases
•Subtle, inadvertent
feedback

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 A qualitative research
method in which eight
to ten persons
participate in an
Focus Group
unstructured group
interview about a
product or service
concept.

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 Selected Portions of a Discussion
Guide
1. Why did you decide to use your current cellular
company? (Probe)
2. How long have you used you current cellular
company? (Probe)
3. Have you ever switched services? When? What
caused the change? (Probe)
4. What do you think of the overall quality of your
current service? (Probe)
5. What are the important criteria in electing a cellular
service? (Probe)

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 •Research procedures
designed to identify
consumers’ subconscious
feelings and motivations.
Projective •Disguised tests that
Techniques contain ambiguous stimuli
–incomplete sentences,
untitled pictures or cartoons,
ink blots, word- association
tests, & other person
characterization

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 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.
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Customer Satisfaction Data Collection
Instruments
• Customer Satisfaction Surveys
• Gap Analysis of Expectations versus
Experience
• Mystery Shoppers
• Critical Incident Technique
• Customer Complaint Analysis
• Analysis of Customer Defections
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 Sampling Plan Decisions

Whom to
survey?

How many?

How to
select them?
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 Probability Sampling Designs

Simple random Every member of the population has a known and

sample equal chance of being selected.
Systematic random A member of the population is selected at random
sample and then every “nth” person is selected.
Stratified random The population is divided into mutually exclusive
sample groups (such as age groups), and random samples
are drawn from each group.
Cluster (area) The population is divided into mutually exclusive
sample groups (such as blocks), and the researcher draws a
sample of the groups to interview.

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 Nonprobability Sampling Designs

Convenience The researcher selects the most accessible

sample population members from whom to obtain
information (e.g., students in a classroom)
Judgment sample The researcher uses his or her judgment to select
population members who are good sources for
accurate information (e.g., experts in the relevant
field of study).
Quota sample The researcher interviews a prescribed number of
people in each of several categories (e.g., 50 men
and 5 women).

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 Data Analysis
• Appropriate analytical tools must be used to interpret data
• Most elementary method is the arithmetic analysis using percentile and
ratios
• Statistical analysis like mean, median, mode, percentages, standard
deviation and coefficient & correlation should be used wherever
applicable
• Advanced statistical tools like tests of significance, factor analysis,
discriminant analysis, regression analysis, cluster analysis, conjoint
analysis & multidimensional scaling techniques can also be used
• Increasing use of MDSS ( Marketing decision support system) to help
managers make better decision
• MDSS is a system that consists of data collection & tools & techniques
for analysis with supporting software & hardware

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 Report & Presentation
• It is important that the report has a summary- executive summary
, giving a birds eye view of the research and the major
recommendation
• The report should be structured and pages chronologically
numbered
• Structure of a good report :
– Intro to problem, the environment context, objectives, sample size,
stratification, sampling procedure adopted , tools for data collection,
sources of data, and data analysis tools
– Presentation of marketing research findings and survey findings
– Interpretation of Research findings
– Policy Implication

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THANK- YOU

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