CHAPTER 2CONSUMER RESEARCHBMAKT3101CONSUMER BEHAVIOR

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Chapter OutlineIntroduction to Quantitative and Qualitative ResearchOverview of the Consumer Decision ProcessQuantitative ResearchQualitative ResearchBMAKT3101CONSUMER BEHAVIOR

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Quantitative ResearchDescriptive in nature.Enables marketers to predict consumer behavior (positivism).Research methods include experiments, survey techniques, and observation.Findings are descriptive, empirical, and can be generalized to larger populations.BMAKT3101CONSUMER BEHAVIOR

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Qualitative ResearchConsists 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.BMAKT3101CONSUMER BEHAVIOR

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Burke Research Uses a Variety of Projective TechniquesBMAKT3101CONSUMER BEHAVIORweblink

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CONSUMER BEHAVIORTable 2-1

Qualitative ResearchQuantitative ResearchStudy PurposeProvide insights about ideasExploratory research before quantitative studyDescribe target marketResults for strategic marketing decisionsTypes of QuestionsOpen-endedUnstructuredClose-endedAttitude scalesData Collection MethodsProjective techniquesDepth interviewsFocus groupsObservationExperimentationQuestionnaires

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CONSUMER BEHAVIORTable 2-1 (continued)

Qualitative ResearchQuantitative ResearchSampling MethodsSmallNonprobability samplesLargeProbability samplesData AnalysisAnalyzed by researchers who collected dataLook for key wordsSubjectiveCoded, tabulated, and entered into databaseUse of statistical methods

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The Consumer Research ProcessFigure 2.1BMAKT3101CONSUMER BEHAVIOR

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Developing Research ObjectivesDefining purposes and objectives helps ensure an appropriate research design.A statement of objectives helps to define the type and level of information needed.BMAKT3101CONSUMER BEHAVIOR

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Discussion QuestionsAssume 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?BMAKT3101CONSUMER BEHAVIOR

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Secondary DataData that has been collected for reasons other than the specific research project at handIncludes internal and external dataBMAKT3101CONSUMER BEHAVIOR

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Types of Secondary DataInternal DataData generated in-houseMay include analysis of customer filesUseful for calculating customer lifetime valueExternal DataData collected by an outside organizationIncludes federal government, periodicals, newspapers, books, search enginesCommercial data is also available from market research firmsBMAKT3101CONSUMER BEHAVIOR

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Discussion QuestionPersonal PrivacyMany people do not like the fact that their personal data are used for marketing.How can marketers justify their need for data? How can they acquire data and maintain customer privacy?BMAKT3101CONSUMER BEHAVIOR

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Designing Primary ResearchQuantitative Research DesignsInclude research design, data collection methods, instruments to be used, and the sample designQualitative Research DesignsInclude depth interviews, focus groups, projective techniques, and metaphor analysis

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Data Collection MethodsObservational ResearchHelps marketers gain an in-depth understanding of the relationship between people and products by watching them buying and using productsHelps researchers gain a better understanding of what the product symbolizesBMAKT3101CONSUMER BEHAVIOR

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Data Collection Methods Mechanical Observational ResearchUses mechanical or electronic device to record consumer behavior or responseConsumers increased use of highly convenient technologies will create more records for marketersProduct audits which monitor sales are heavily used by companiesBMAKT3101CONSUMER BEHAVIOR

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Data Collection Methods ExperimentationCan be used to test the relative sales appeal of many types of variablesAn experiment is usually controlled with only some variables manipulated at a time while the others are constantCan be conducted in laboratories or in the fieldBMAKT3101CONSUMER BEHAVIOR

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Surveys Data Collection MethodsBMAKT3101CONSUMER BEHAVIORPersonal InterviewMailTelephoneOnline

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Online Surveys Are Growing in PopularityBMAKT3101CONSUMER BEHAVIORweblink

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MAILTELEPHONEPERSONAL INTERVIEWONLINECostLowModerateHighLowSpeedSlowImmediateSlowFastResponse rateLowModerateHighSelf-selectionGeographic flexibilityExcellentGoodDifficultExcellentInterviewer biasN/AModerateProblematicN/AInterviewer supervisionN/AEasyDifficultN/AQuality of responseLimitedLimitedExcellentExcellentTable 2.2 Comparative AdvantagesBMAKT3101CONSUMER BEHAVIOR

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Validity and ReliabilityIf 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. BMAKT3101CONSUMER BEHAVIOR

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Qualitative Collection MethodDepth InterviewUsually 30 minutes to 1 hourNonstructuredInterpreted by trained researcherListen to words as well as body language

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Qualitative Collection Method Focus Group8-10 participantsLasts about 2 hoursAlways taped or videotaped to assist analysisOften held in front of two-way mirrors

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Online Focus Groups Are Gaining in PopularityBMAKT3101CONSUMER BEHAVIOR

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Figure 2.4Focus Group Discussion GuideCONSUMER BEHAVIOR1. Why did you decide to use your current cellular company? 2. How long have you used your current cellular company? 3. Have you ever switched services? When? What caused the change? 4. What do you think of the overall quality of your current service? 5. What are the important criteria in selecting a cellular service? Examples of Probe questions:a. Tell me more about that . . .b. Share your thinking on this . . .c. Does anyone see it differently . . .

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Qualitative Collection Method Projective TechniquesResearch procedures designed to identify consumers subconscious feelings and motivations Consist of a variety of disguised tests

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Qualitative Collection Method Metaphor AnalysisBased on belief that metaphors are the most basic method of thought and communicationZaltman 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.BMAKT3101CONSUMER BEHAVIOR

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Customer Satisfaction MeasurementCustomer Satisfaction SurveysGap Analysis of Expectations versus ExperienceMystery ShoppersCustomer Complaint AnalysisAnalysis of Customer DefectionsBMAKT3101CONSUMER BEHAVIOR

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Customer Satisfaction SurveyBMAKT3101CONSUMER BEHAVIOR

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Sampling and Data CollectionSamples are a subset of the population used to estimate characteristics of the entire population.A sampling plan addresses:Whom to surveyHow many to surveyHow to select themResearcher must choose probability or nonprobability sample.BMAKT3101CONSUMER BEHAVIOR

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Probability SamplingProbability sampling, or random sampling, is a sampling technique in which the probability of getting any particular sample may be calculated.Nonprobability SamplingNon-probability sampling is a sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

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WHEN TO USE NON-PROBABILITY SAMPLINGThis type of sampling can be used when demonstrating that a particular trait exists in the population.It can also be used when the researcher aims to do a qualitative, pilot or exploratory study.It can be used when randomization is impossible like when the population is almost limitless.It can be used when the research does not aim to generate results that will be used to create generalizations pertaining to the entire population.It is also useful when the researcher has limited budget, time and workforce.This technique can also be used in an initial study which will be carried out again using a randomized, probability sampling.BMAKT3101CONSUMER BEHAVIOR

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Table 2.4 Probability Sampling Designs

Simple random sampleEvery member of the population has a known and equal chance of being selected.Systematic random sampleA member of the population is selected at random and then every nth person is selected.Cluster (area) sampleThe population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.Stratified random sampleThe population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.BMAKT3101CONSUMER BEHAVIOR

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Data Analysis and Reporting FindingsOpen-ended questions are coded and quantified.All responses are tabulated and analyzed.Final report includes executive summary, body, tables, and graphs.BMAKT3101CONSUMER BEHAVIOR

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ReferencesThese slides are taken from Kotler and Keller. Marketing Management, 13th ed.

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Defection against loyalty, when the customer leaves...*