CONSUMER BEHAVIOR

CHAPTER:2 CONSUMER RESEARCH

Consumer research is the extension of the field of marketing research. Marketing Research: It is the systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing. Positivism: A consumer behavior research approach that regards the consumer behavior discipline as an applied marketing science. (Quantitative) Interpretivism: A postmodernist approach to the study of consumer behavior that focuses on the act of consuming rather than on the act of buying. (Qualitative)

Comparisons between Positivism and Interpretivism: PURPOSE

Positivism Positivism Prediction of consumer actions Prediction of consumer actions Interpretivism Interpretivism Understanding consumption practices Understanding consumption practices

METHODOLOGY
Quantitative Quantitative Positivism Positivism Qualitative Qualitative Interpretivism Interpretivism

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

THE MARKETING/CONSUMER RESEARCH PROCESS: 1.Problem Definition 2.Development of an approach to the problem 3.Research design formulation 4.Field work or Data collection 5.Data preparation and analysis 6.Report preparation and presentation

Classification of Marketing Research: Problem Identification Research Research that is undertaken to identify the problems that are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Example: Market Potential Research, Market Share Research, Image Research etc,. Problem-Solving Research Research undertaken to help solve specific marketing problems. Example: Segmentation Research, Product Research, Pricing Research etc,.

The Consumer Research Process

Develop Objectives Collect Secondary Data Design Qualitative Research Method Screener questionnaire Discussion guide

Design Quantitative Research Method Sample design Data collection instrument Exploratory Study

Conduct Research (Using highly trained interviewers)

Collect Primary Data (Usually by field staff)

Analyze Data (Subjective) Prepare Report

Analyze Data (Objective) Prepare Report

Problem Definition:
A broad statement of the general problem and identification of the specific components of the marketing research problem. How is problem defined: 1.Discussion with decision maker 2.Interviews with experts 3.Secondary data analysis 4.Qualitative Research Environmental Context of the problem Problem Definition: 1.Management Decision Problem (Should a new product be introduced?) 2. Marketing Research Problem (To determine consumer preferences and purchase intentions for the proposed new product.)

Defining Marketing Research Problem

Broad Statement

To determine the relative strengths and weaknesses of Central, vis--vis other major competitors, with respect to factors that influence store patronage. 1. What criteria do customers use when selecting mall? 2. How do customers evaluate central and competing malls in terms of the choice criteria identified in question 1? 3. Which malls are patronized when shopping for specific product categories?

Specific Components

Defining Objective of the Research: Defining purposes and objectives helps ensure an appropriate research design. A statement of objectives helps to define the type and level of information needed. Research questions (RQs) are refined statements of the specific components of the problem. RQ: Do the customers of central exhibit store loyalty? Hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question. H1: Customers who are store loyal are less knowledgeable about the shopping environment.

RESEARCH DESIGN:
Exploratory Research: which as its primary objective has the provision of insight into and comprehension of the problem situation confronting the research. Conclusive Research: helps in determining, evaluating and selecting the best course of action to take in a given situation. Descriptive Research: A type of conclusive research that has as its major objective the description of something usually market characteristics or functions. Cross-Sectional Design: A type of research design involving the collection of information from any given sample of population element only once. Single Cross-Sectional Design: A cross-sectional design in which one sample of respondent is drawn from the target population and information is obtained from this sample once.

Multiple Cross-Sectional Design: A cross-sectional design in which there are two or more samples of respondents and information from each sample is obtained only once. Cohort analysis: A multiple cross-sectional design consisting of a series of surveys conducted at appropriate time intervals. The cohort refers to the group of respondents who experiences the same event within the same time interval. Longitudinal design: A type of research design involving a fixed sample of population element that is measured repeatedly on the same variable. Thus the sample remains same over time, thus providing a series of picture which viewed together, potray a vivid illustration of the situation and the changes that are taking place over time. Panels: The type of research in which the respondent agrees to provide the information over the period of time. Causal Research: used to obtain the evidence regarding cause-and-effect relationship. (Experiment)

Exploratory Research Design: Primary Data: Data generated by researcher for the specific purpose of addressing the research problem. Secondary Data: Data collected for some purpose other than the problem on hand. 1.Internal Ready to use, Requires further processing 2.External Published material, Computerized databases, Syndicated services.

MR Data

Secondary Data

Primary Data

Qualitative

Quantitative

Descriptive

Causal Experimental Data

Survey

Observational & other

Qualitative Research Procedures

Direct (Nondisguised)

Direct (Disguised)

Focus Groups Association Technique

Depth Interview Completion Technique

Projective Technique

Construction Technique

Expressive Technique

Focus Group: A qualitative research method in which eight to ten persons participate in an unstructured group interview about a product or service concept. Depth Interview: A lengthy nonstructured interview between the respondent and a highly trained interviewer, who minimizes his or her own participation in the discussion after establishing the general subject to be discussed.

Projective Techniques: Research procedures designed to identify consumers subconscious feelings and motivations. Word Association In this, respondents are presented with a list of words, one at a time and asked to respond to each with the first word that comes to mind. The words of interest, called test words, are interspersed throughout the list which also contains some neutral, or filler words to disguise the purpose of the study. Completion Technique: In Sentence/Story completion, respondents are given incomplete sentences/story and asked to complete them. Generally, they are asked to use the first word or phrase that comes to mind. Construction Technique: With a picture response, the respondents are asked to describe a series of pictures of ordinary as well as unusual events. The respondent's interpretation of the pictures gives indications of that individual's personality. 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. In expressive techniques, respondents are presented with a verbal or visual situation and asked to relate the feelings and attitudes of other people to the situation. Role Play, third person technique. Descriptive Research Design Survey Method: With the help of structured questionnaire (set of formal questionnaire that presents questions in a prearranged order). Fixed-Alternative Questions: Questionnaire having a set of predetermined answers.

Survey Methods

Telephone

Personal

Mail

Electronic

In-Home

Mall Intercept

Computer-Assisted Personal Interviewing Mail Interview

E-mail

Internet

Traditional Telephone

Computer-Assisted Telephone Interviewing

Mail Panel

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

Observation Methods: Structured (e.g., an auditor performing inventory analysis in a store.) Unstructured (e.g., observing children playing with new toys.) Disguised (mirrors, hidden cameras, or inconspicuous mechanical devices.) Undisguised Natural (one could observe the behavior of respondents eating fast food in McDonald.) Contrived (artificial environment, such as a test kitchen.) Observation Methods Classified by Mode of Administration: 1. Personal Observation 2. Mechanical Observation (psycho galvanometer, galvanic skin response, voice pitch analysis and response latency) 3. Audit 4. Content Analysis 5. Trace Analysis 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.

Validity: The degree to which a measurement instrument accurately reflects what it is designed to measure. Reliability: The degree to which a measurement instrument is consistent in what it measures. Attitude Scales: Scaling involves creating a continuum upon which measured objects are located. Likert scales: easy for researchers to prepare and interpret, and simple for consumers to answer. 1 = Agree Strongly 2 = Agree 3 = Neither Agree or Disagree 4 = Disagree 5 = Disagree Strongly Semantic differential scales: relatively easy to construct and administer. 1) Rugged 2) Excitable :---:---:---:---:---:---:---: Delicate :---:---:---:---:---:---:---: Calm

Rank-order scales: subjects rank items in order of preference in terms of some criteria.

Scale Nominal

Numbers Assigned to Runners Rank Order of Winners

Third place

Finish
7 8 3

Ordinal

Finish Second place 9.1 First place 9.6

Interval

Performance Rating on a 0 to 10 Scale

8.2

Ratio

Time to Finish, in Seconds

15.2

14.1

13.4

Nominal Scale
months No. Store

Ordinal Scale
Preference

Interval Scale

Ratio Scale
$ spent last 3

1. Lord & Taylor 2. Macys 3. Kmart 4. Richs 5. J.C. Penney 6. Neiman Marcus 7. Target 8. Saks Fifth Avenue 9. Sears 10.Wal-Mart

Preference Ratings 1-7 Rankings 11-17

7 2 8 3 1 5 9 6 4 10

79 25 82 30 10 53 95 61 45 115

5 7 4 6 7 5 4 5 6 2

15 17 14 16 17 15 14 15 16 12

0 200 0 100 250 35 0 100 0 10

Questionnaire: A questionnaire is a formalized set of questions for obtaining information from respondents. It must translate the information needed into a set of specific questions that the respondents can and will answer. A questionnaire must uplift, motivate, and encourage the respondent to become involved in the interview, to cooperate, and to complete the interview. A questionnaire should minimize response error.

Questionnaire Design Process

Specify the Information Needed Specify the Type of Interviewing Method Determine the Content of Individual Questions Design the Question to Overcome the Respondents Inability and Unwillingness to Answer Decide the Question Structure Determine the Question Wording Arrange the Questions in Proper Order Identify the Form and Layout Reproduce the Questionnaire Eliminate Bugs by Pre-testing

Customer Satisfaction Measurement: 1.Customer Satisfaction Surveys 2.Gap Analysis of Expectations versus Experience 3.Mystery Shoppers 4.Critical Incident Technique 5.Customer Complaint Analysis 6.Analysis of Customer Defections Sampling and Data Collection: Whom to survey (the sampling unit) How many to survey (the sample size) How to select them (the sampling procedure/technique)

Probability Sampling Design:

Simple random sample Systematic random sample Stratified random sample Cluster (area) sample

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

Nonprobability Sampling Designs