MARKETING RESEARCH & CONSUMER BEHAVIOUR

Marketing research can be defined as: the collection, collation

and analysis of data relating to the marketing and consumption of goods
and services (The Business Dictionary, No Date). Marketing research
became prominent in the 1950s, when marketers began to realise that
they could sell more products, if they produced goods they had already
determined consumers would buy. Market-orientated firms eventually
found it much easier to produce products/services they had already
established customers actually desired. This consumer-orientated
marketing approach soon became known as the marketing concept
(Schiffman, Kanuk, & Hansen, 2012; Schiffman, Kanuk, & Hansen, 2012).
The need for strong and relevant market information derives from the
adoption of this concept, the strategic tools used to implement the
marketing concept, include segmentation, positioning, targeting, and the
understanding of the marketing mix (Schiffman, Kanuk, & Hansen, 2012).
Although there are many definitions of marketing research, the basic
concept is that of concern for customer wants and needs, as without this
consideration, the organisation in question would find it difficult to
succeed, and ultimately survive (Wilson, 2012). Marketing research is the
methodology used to analyse and study consumer behaviour. It is present
during every stage of the consumption process: before, during, and after
the purchasing decision.

Marketing research is a fundamental discipline required for all

consumer-orientated activities. In order to understand consumers, we
must first carry out marketing research. Two of the main methods of
primary marketing research that can be carried out, are quantitative and
qualitative research. These two research types both produce very different
types of data; they can be carried out separately or in conjunction with
one another, to provide a well-rounded, reliable result (Wilson, 2012).
These methods of research are vital in allowing an organisation to attempt
to understand consumer behaviour, in order to then begin researching the
market.

In the past, quantitative research was formerly thought to be

the most practical, valid, and effective method of marketing research. Due
to the fact it uses numerical data, logic, statistics, models, and operates
using large sample sizes (Wright, 2006). Quantitative data can take the
form of face-to-face interviews, over the telephone, or postal surveys. It is
structured and uses predefined, close-ended questions that are
consistently used with all respondents (Wilson, 2012). However, as
researching and the need of understanding consumers progressed and
became a more complex process, more subtle research methods were
required. This came in the form of qualitative research. In this instance,
researchers use techniques including depth interviews, and focus groups
(Wright, 2006). Compared to quantitative research, qualitative data
gathering is very unstructured, it is flexible, and promotes free-flowing,

Emily Clark 1 Understanding Consumers and Markets

open discussion. The researcher obtains deeper and more penetrating
insights into topics than would not be obtained from a structured approach
(Wilson, 2012). They operate using small numbers of individuals, and are
primarily concerned with getting a feel for the research topic, and not
statistical data (Wright, 2006).

A prime example of quantitative research is postal surveys.

These are a form of self-administered survey. This means the
questionnaire must be aptly designed, and clearly express the questions
properly in order to allow a straightforward response from the participant,
as no interviewer is present (Wilson, 2012). Postal surveys are mailed to a
pre-selected group of respondents along with a return envelope, and
possibly an incentive. The survey will include simple tick the box type
questions, such as a likert scale. The respondents complete and return the
questionnaire. Postal surveys are attractive as they pose a relatively low
cost in comparison to interviews, however, this must be balanced against
a notoriously low response rate. Response rates normally depend of an
individuals interest in the topic being surveyed, the relationship between
individual and firm, and the incentive being offered. It is not uncommon
for response rate of a postal survey to fall below 20 percent in large
sample sizes (Wilson, 2012).

Benefits to carrying out a postal survey include, national and

international coverage, the survey can be dispersed anywhere. They are
inexpensive to produce and execute, no interviewer bias is present, and it
is convenient for participants to respond. Drawbacks of this method of
quantitative research include, the previously mentioned low response rate,
biased response as those who respond most often than not have strong
opinions on the subject lack of control of respondent, and questioning,
many may be left blank. There are limited open-ended questions; most
questions will simply involve ticking a box (Wilson, 2012).

In contrast, a key example of gathering qualitative research is

through a focus group. A focus group can be defined as a depth interview
undertaken with a small group of respondents. Focus groups share many
of the same features as an unstructured interview; however, the main
difference is that interaction between respondents is encouraged. The
group comprises of six to twelve people and is led by a moderator, who
directs, chronicles, and accounts for the discussion (British Dental Journal,
2008). Focus groups can be used for gathering information on united
views, and the connotations behind those views, respondents are urged to
discuss their concerns, attitudes, responses, feedback, and opinions
regarding the product (Schiffman, Kanuk, & Hansen, 2012).

There are, however benefits and drawbacks of this method.

An advantage is the ease at which customer views can be heard and
discussed, which can help with identifying improvement areas for the
business (Writing, No Date). The researcher can also examine non-verbal

Emily Clark 2 Understanding Consumers and Markets

responses such as body language, and facial expressions (Temkin, No
Date). This method can also be cheaper than depth interviews, as a larger
mass of respondents are being questioned at the one time, which also is
less time-consuming (Schiffman, Kanuk, & Hansen, 2012). Disadvantages
of this method include, that it is not as in-depth. Quieter individuals may
not be heard over louder people, and peoples views may not be explored
as in detail as they would be in a one-to-one interview. Moderator bias can
also greatly affect the outcome of a focus group, as they may
unconsciously inject their own personal opinion into respondents
discussion, therefore producing unreliable results (Writing, No Date).

Once an organisation has carried out the appropriate market research, and
is satisfied with the results, they can then focus on understanding the
individual consumer segment they aim to target. The consumer behaviour
discipline is, the what, why, when, where, and how of consumer
purchasing. The practice of consumer behaviour was a fresh, never before
seen concept, pioneered in the mid to late 1960s, due to the
innovativeness of this research area, marketing theorists were influenced
heavily by concepts already present in other scientific disciplines, most
notably: sociology, social policy, anthropology, economics, and psychology
(Schiffman, Kanuk, & Havard, 2012). Sociology is the study of groups,
institutions, and structures in society, it attempts to explain why societies
develop the way they do, and predict future patterns. This can help
forecast future consumer tastes and trends. Social policy is the study of
how our thoughts, feelings, and attitudes are influenced by the presence
of individuals and groups; this is heavily used in attempting to understand
consumer behaviour. Anthropology is the study of specific groups of
people, examining, difference races, ethnic groups, and tribes; there is
hope that looking at the simple way of living will help us understand more
complex consumer behaviour. Economics is the study of the relationship
between distribution, and consumption of wealth in a country, economists
tend to describe consumers as rational beings. Lastly, psychology is
viewed as a relatively new concept. It concerns itself with all the subject
areas identified above, including mental processes, and how consumers
think and behave. It is perhaps the most integral element of
understanding consumer behaviour (Wright, 2006). These five components
are considered to be the fundamentals of consumer purchasing decisions.

Early researchers into consumer behaviour and marketing

research gave very little consideration on the impact of emotional motives
in purchasing decisions, such as: family, friends, advertisements, feelings
and mood. Research believed marketing was a form of applied economics,
and that consumers only selected goods that gave them the highest
satisfaction, at the lowest monetary cost, this is known as a rational
motive. Researchers soon realised that, in order to reach their purchasing
decisions, consumers were not always consciously aware of why they
made the decisions they did (Schiffman, Kanuk, & Hansen, 2012)

Emily Clark 3 Understanding Consumers and Markets

 However, in contemporary society, researchers have
realised the importance of perception, this is the process wherein an
individual selects, organises, and interprets stimuli into a comprehensible
vision, it can be simplified as how we see the world around us (Schiffman,
Kanuk, & Hansen, 2012). Perception includes elements such as absolute
threshold, the lowest level at which an individual can experience a
sensation or feeling. This is an important consideration for marketing
stimuli, for example: a billboard having too small text for passing motorists
to read it, this would be a wasted effort, as we as humans, cannot
experience the sensation at even the lowest level. Differential threshold,
also known as Just Noticeable Difference (JND), is the ability of the sensory
system to detect changes or differences between two similar stimuli. The
stronger the initial stimulus, the greater the change must be for it to be
noticed. Marketers may want some decisions to be noticed, e.g. when
merchandise is offered discounted; in some cases, they may want changes
to go unnoticed to consumers e.g. small price increases or product size
decreases. This theory was christened Webers Law, by Dr Ernest Weber,
in the nineteenth century (Solomon, Bamossy, Askegaard, & Hogg,
Consumer Behaviour: A European Perspective, 2010). Values such as
vision, hearing, taste, smell, and touch are all factors that can effect the
decision making process of consumers, and how individuals make
purchasing decisions (Schiffman, Kanuk, & Hansen, 2012).

Another aspect of consumer behaviour we must attempt to

understand is consumer needs. Needs of the consumer come from the
concept of motivation, this is the driving force behind an individual that
inspires them to take action. This highly complex aspect of behaviour is
always under development and change in relation to a shift in an
individuals physical condition, environment, interaction and experiences
with others (Schiffman, Kanuk, & Hansen, 2012). Marketers do not create
needs, however, they can make consumers aware of unknown needs,
successful marketers define their markets in relation to the needs they
presume they must satisfy, and not in terms of products they sell, this
relates back to a consumer-orientated approach, rather than a product-
orientated one. As individuals achieve their needs, they will acquire new
ones, the consumer is never fully satisfied for long, as new needs emerge
as older needs are met (Schiffman, Kanuk, & Hansen, 2012).

There are two types of basic consumer needs; innate, and

acquired. Innate needs are psychologically based; they include the need
for food, water, air, and shelter. They can be considered primary needs,
and are required for basic human function. Acquired needs on the other
spectrum are needs we acquire in response to our culture and
surroundings. These include self-esteem, affection, and power, these are
considered to be secondary needs (Schiffman, Kanuk, & Hansen, 2012).
Most of the time, these needs are dormant, wherein the need operates
below a conscious level. The consumers needs can be aroused by a
number of stimuli, at any given moment in time. The arousal of motives

Emily Clark 4 Understanding Consumers and Markets

can be the result of physiological factors, e.g. a decrease in temperature
will induce shivering, which makes the individual aware they need warmth.
Needs can also be induced emotionally, e.g. daydreaming can make a
person imagine themselves in desirable situations with desirable
possessions, making them believe they need them. Furthermore, needs
can be aroused cognitively, e.g. an advertisement providing connotations
of home can trigger someone to want to talk to their parents (Schiffman,
Kanuk, & Hansen, 2012). Lastly, environmental factors, such as it being
the weekend, may fuel the desire for an individual to consume alcohol.

Dr Abraham Maslow, a notable psychologist, formulated a

widely popular and accepted theory of motivation based on a hierarchy of
needs. Maslows theory is based on five basic forms of human needs,
which are included in a pyramid, and placed from low-level, to high-level.
The theory states that low-level needs need to be satisfied in order for
high-level needs to emerge (Schiffman, Kanuk, & Hansen, 2012). At the
bottom of the pyramid, are psychological needs, next are safety needs,
then social needs, egotistical needs, and finally at the top is self-
actualisation. Marketers have embodied this approach, as it indirectly
specifies specific types of products consumers may desire, in accordance
to the position of their development and/or environmental conditions. At
each level, different priorities exist in terms of what the consumer is
looking for, in theory, an individual cannot progresses to the top of the
pyramid until they reach their ultimate goal, unfortunately, more often
than not, this state is very difficult to achieve (Solomon, Bamossy,
Askegaard, & Margaret, 2010).

Marketing research and the consumer behaviour discipline

has developed and changed so dramatically in the past decades, as has
our ability to research and understand the interrelationship between the
two concepts (Schiffman, Kanuk, & Hansen, 2012). As previously stated,
the widespread adoption of the marketing concept has provided the
groundwork for the study of consumer behaviour, the focus of the
marketing concept is fundamentally, understanding the complexity, and
intricate nature of consumer behaviour (Schiffman, Kanuk, & Hansen,
2012).

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Emily Clark 5 Understanding Consumers and Markets

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Emily Clark 6 Understanding Consumers and Markets