Transcription

1 CHAPTER TWO The Consumer Research Process

2 Learning Objectives 1. To Understand the Importance of Consumer Research for Firms and Their Brands, as Well as Consumers. 2. To Understand the Steps in the Consumer Research Process. 3. To Understand the Importance of Establishing Specific Research Objectives as the First Step in the Design of a Consumer Research Project. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 2

3 Learning Objectives (continued) 4. To Understand the Purposes and Types of Secondary Consumer Research That Is Available for Making Decisions or Planning Future Consumer Research. 5. To Understand Specific Features and Applications of Different Research Methods to Be Carried Out in Consumer Research Studies. 6. To Understand Where Data Analysis and Reporting of Findings Fit in the Research Process. 7. To Understand How Each Element of the Consumer Research Process Adds to the Overall Outcome of the Research Study. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 3

4 Outline Overview of consumer research process Design Secondary research study

5 Why Do Marketers Regularly Test Print Ads Like This One Before They Are Placed in the Media? Chapter Two Slide 5

6 To Test the Impact of the Message Before Spending Large Amounts of Money Chapter Two Slide 6

7 The Importance of the Consumer Research Process Marketers must understand customers to design effective: marketing strategies products promotional messages Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 7

8 How Consumer Research Helps Real Business Iams, a Procter & Gamble brand that makes pet food, noticed that some consumers were supplementing dry pet food with some form of treat, particularly to get older pets with dental problems to eat it. Iams then conducted quantitative research to determine if this practice was common among consumers. The research indicated that 40% of pet owners use such methods. In response, Iams launched Savory Sauce, a more convenient alternative to table scraps. The product has been so successful that Iams has since extended this line to include eight varieties, including sauces for use with puppies.

9 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

10 The Consumer Research Process Figure 2.2 Chapter Two Slide 10

11 Figure 2.1 The Consumer Research Process Design Qualitative Research Method Screener questionnaire Discussion guide Develop Objectives Collect Secondary Data Design Quantitative Research Method Sample design Data collection instrument Conduct Research (Using highly trained interviewers) Analyze Data (Subjective) Prepare Report Exploratory Study Collect Primary Data (Usually by field staff) Analyze Data (Objective) Prepare report

12 The Consumer Research Process Secondary research Primary research Qualitative Quantitative Chapter Two Slide 12

13 Developing Research Objectives Defining purposes and objectives helps ensure an appropriate research design. A written statement of objectives helps to define the type and level of information needed. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 13

14 Example of research objectives Management Problem: Why are store revenues so low? Possible research objective: Investigate current customer satisfaction Assess target market perceptions of store and competitors Determine target market awareness

15 Discussion Questions Assume you are planning to open a new pizza restaurant near your campus. What might be three objectives of a research plan for your new business? How could you gather these data? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 15

16 Secondary Data Data that has been collected for reasons other than the specific research project at hand Includes internal and external data Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 16

17 Types of Secondary Data Internal Data Data generated in-house May include analysis of customer files Useful for calculating customer lifetime value External Data Data collected by an outside organization Includes federal government, periodicals, newspapers, books, search engines Commercial data is also available from market research firms Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 17

18 Demographic profile Area x U.S Population 151, years and over 68% 75.4% Median family income 51,793 62,363 Language other than English spoken at home 66.5% 19.6% Average household size

19 Video Discussion: AC Nielson What technique does AC Nielson use to help profile consumers?

20 Quality of Secondary Data Who sponsored the research? Advocacy research, or research conducted to support a position rather than to find the truth about an issue, is blatantly unethical What is the ability of the researchers? Experience is an important consideration for assessing quality Process of data collection Bias-free access to respondents is an important consideration for assessing quality

21 Pros and Cons of Secondary Data Advantages of Secondary Data Time savings Cost savings Disadvantages of Secondary Data Problems of fit Problems of accuracy

22 Secondary Versus Primary Data Secondary data: data that has been collected for reasons other than the specific research project at hand Primary data: data collected by the researcher for the purpose of meeting specific objectives

23 Outline Primary research Qualitative study Quantitative study: Data collection methods Test market Concept of Measurements Reliability and Validity Measurements Common in Consumer Behavior

24 Designing Primary Research Qualitative Research Depth Interviews Focus Groups Projective Techniques Metaphor Analysis Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 24

25 Qualitative Collection Method Depth Interview Also called one-on-one interview Usually 20 minutes to 1 hour Nonstructured Interviewer will often probe to get more feedback (see following slide for probing) Session is usually recorded Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 25

26 Qualitative Collection Method 8-10 participants Focus Group Respondents are recruited through a screener questionnaire Lasts about 2 hours Always taped or videotaped to assist analysis Often held in front of two-way mirrors Online focus groups are growing Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 26

27 Discussion Guides for Research Step-by-step outline for depth interviews and focus groups Interviewers will often improvise and go beyond the discussion guide Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 27

28 Focus Group Discussion Guide - Figure 2.4 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 28

29 Qualitative Collection Method Projective Techniques Research procedures designed to identify consumers subconscious feelings and underlying motivations Consist of a variety of disguised tests Chapter Two Slide 29

30 Common Projective Exercises Table 2.1 (excerpt) Word Associations Sentence Completion Description The researcher has a list of words, some of them to be studied and some just as filler. The researcher asks the respondent(s) to react, one-at-a time, to each word by stating or (in a focus group setting) writing on a pad the first word that comes to mind, and to explain the link. The researcher has a series of incomplete sentences that the respondent(s) needs to complete with a word or phrase. Photo/Visual for Storytelling Role Playing The researcher creates/selects a series of photos of consumers, different brands or products, range of print ads, etc., to serve as stimuli. The respondents are asked to discuss or tell a story based on their response to a photo or some other visual stimulus. Is quite similar to storytelling; however, instead of telling a story, the participant(s) will be given a situation and asked to act out the role(s), often with regard to a product or brand, or particular selling situation. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 30

31 Example of Word Association What comes to your mind when you think of Coca-Cola Responses frequency Response time

32 Example of Sentence Completion Complete the following sentences: People who are concerned about ecology. A person who does not use lour lakes for creation is

33 Compare the Differences People who are concerned about ecology care about the future. A person who does not use our lakes for recreation is being thoughtful about the ecosystem. People who are concerned about ecology are just treehugger who want to run up my taxes. A person who does not use our lakes for recreation is a person who doesn t enjoy water sports.

34 Qualitative Collection Method 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 34

35 Qualitative Collection Method Looking-In Look at information from threads and postings on social media, including blogs and discussion forums Methodology to capture consumers experiences, opinions, forecasts, needs, and interests Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 35

36 Part Two Design primary research

37 Designing Primary Research Quantitative Research Observation Experimentation Survey questionnaires Chapter Two Slide 37

38 Data Collection Methods 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 Chapter Two Slide 38

39 Data Collection Methods Mechanical Observational Research Uses mechanical or electronic device to record consumer behavior or response Consumers increased use of highly convenient technologies will create more records for marketers Audits are a type of mechanical observation which monitor sales Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 39

40 Data Collection Methods Table 2.2 Mail Telephone Personal Interview Online Cost Low Moderate High Low Speed Slow Immediate Slow Fast Response rate Low Moderate High Self-selected Geographic flexibility Interviewer bias Interviewer Supervision Excellent Good Difficult Excellent N/A Moderate Problematic N/A N/A Easy Difficult N/A Chapter Two Slide 40

41 Increase Mail Response Rate Include stamped and self-addressed envelop Multiple waves of reminders Use consumer panels

42 Increase Mail Response Rate If you were a marketing manager planning a mail survey to find out consumers attitude towards your products. Traditionally, mail survey is associated with low response rate of 1%. What suggestion would you give to increase respondent rate?

43 Example of Test Market New Coke Lesson A controlled experiment done in a limited but carefully selected sector of the marketplace. McDonald s used test markets to determine that a market existed for McDonald s own higher-end coffee drink.

44 Best and Worst Test Markets Rochester, N.Y Wichita, Kansas Eugene-Springfield, Oreg Honolulu, Hawaii San Francisco, Cali New York, N.Y 2010 South-Western/Cengage Churchill Brown Suter/Basic Marketing Research

45 Misfires in Market Testing Frito-Lay test-marketed it Max Potato, corn and tortilla chips containing the Olestra fat substitutes in Grand Junction, Colorado; A TV crew sampled the chips and succumbed to diarrhea, and then broadcast a report about it, creating lots of bad publicity for the chips Campbell Soup spent 18 months developing a blended fruit juice called Juiceworks. By the time the product reached the market, three competing brands were already on store shelves. Campbell dropped its product South-Western/Cengage Churchill Brown Suter/Basic Marketing Research

46 Validity and Reliability If a study has validity, it collects the appropriate data for the study. A study has reliability if the same questions, asked of a similar sample, produce the same findings. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 46

47 Examples of Validly GMAT Test Correlation between GMAT score and students performance in business school Test spelling ability with: words catcher, shortstop, foul, strike, walk, pitcher, outfielder

48 Data Collection Methods Observation Experimentation Surveys

49 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.

50 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 or in the field.

51 Survey Data Collection Methods Personal Interview Mail Telephone Online

52 Table 2.4 Comparative Advantages MAIL TELEPHONE PERSONAL INTERVIEW ONLINE Cost Low Moderate High Low Speed Slow Immediate Slow Fast Response Selfselection Low Moderate High rate Geographi c flexibility Excellent Good Difficult Excellent Interviewe r Interviewe bias N/A Moderate Problematic N/A r supervisio N/A Easy Difficult N/A nquality of response Limited Limited Excellent Excellent

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

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

55 Table 2.6 Probability Sampling Designs 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.

56 Table 2.6 Nonprobability Sampling Designs Convenience sample Judgment sample Quota sample The researcher selects the most accessible population members from whom to obtain information (e.g., students in a classroom) 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). The researcher interviews a prescribed number of people in each of several categories (e.g., 50 men and 5 women).

57 Measurements in Consumer Behavior

58 Attitude Scales Likert scales Asked to agree or disagree with a statement Easy to prepare & interpret Simple for consumers Semantic differential scales Includes bipolar adjectives Relatively easy to construct and administer Behavior intention scales Measures likelihood consumers will act a certain way Easy to construct and administer Rank-order scales Items ranked in order of preference in terms of some criteria Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 58

59 Likert Scale Respondents indicate their degree of agreement or disagreement with each of a number of statements. Five to nine categories work well

60 Example of Likert Scale Neither Strongly Agree nor Disagree Disagree Disagree Agree The celebrity endorser is trustworthy. The celebrity endorser is unattractive. The celebrity endorser is an expert on the product. The celebrity endorser is not knowledgeable about the product. Strongly Agree (c) 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Churchill Brown Suter/Basic Marketing Research

61 Figure 2.4 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.

62 Qualitative Data Collection Methods Depth Interviews Focus Groups Projective Techniques Metaphor Analysis

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

64 Figure 2.5 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)

65 Projective Techniques Research procedures designed to identify consumers subconscious feelings and motivations.

66 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.

67 Customer Satisfaction Data Collection Instruments (Table 2.5) Customer Satisfaction Surveys Gap Analysis of Expectations versus Experience Mystery Shoppers Critical Incident Technique Customer Complaint Analysis Analysis of Customer Defections

68 Sampling Plan Decisions Whom to survey? How many? How to select them?

69 Semantic-differential Scale Anchored by a set of bipolar adjectives or phrases Particularly useful in corporate, brand and product-image studies.

70 Example of an Itemized Rating Scale: Semantic- Differential Scale CELEBRITY ENDORSER Trustworthy : : : : : : Not Trustworthy Attractive : : : : : : Unattractive Knowledgeable Expert : : : : : : : : : : : : Not Expert Not Knowledgeable (c) 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Churchill Brown Suter/Basic Marketing Research

71 Cost Availability Number of Titles Ease of Access Clarity of Picture Figure 2.4 Semantic Differential Profiles of Three Pay-Per-Movie Services Excellent Neutral Poor DVD Digital Cable DIVX 1

72 Behavioral Intention Scale Measures the likelihood that consumers will act in a certain way in the future Example: How likely are you going to continue using Bank X s online banking for the next six months? (7 as most likely, and 1 as least likely)

73 Rank Order Scale Subjects are asked to rank items such as products in order of preference. We rank the following beverage brand in terms of your preference Coca Cola Pepsi Cola Sprite Dr. pepper

74 Figure 2.5 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 Dell Compaq Hewlett Packard Gateway NEC

75 Customer Satisfaction Measurement Customer Satisfaction Surveys Analysis of Expectations versus Experience Mystery Shoppers Customer Complaint Analysis Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 75

76 Sampling and Data Collection Samples are a subset of the population used to estimate characteristics of the entire population. A sampling plan addresses: Whom to survey How many to survey How to select them Researcher must choose probability or nonprobabililty sample. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 76

77 Data Analysis and Reporting Findings Open-ended questions are coded and quantified. All responses are tabulated and analyzed. Final report includes executive summary, body, tables, and graphs. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 77

78 The Consumer Research Process Figure 2.2 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Slide 78

79 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 79