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Consumer Behavior.pptx

  1. 1. The Consumer Research Process Prepared By, Anabella Mok
  2. 2. The Importance of the Consumer Research Process Largely Influenced by Psychology, sociology, and anthropology • Marketers must understand customers effective: to design – – – marketing strategies products promotional messages Chapter Two Slide 7
  3. 3. The Consumer Research Process
  4. 4. The Consumer Research Process • • Secondary research Primary research – Qualitative research includes focus groups and in‐depth interviews – Quantitative research observational research, experimentation, and survey Chapter Two Slide 9
  5. 5. 6 steps in Research 1 Define the problem and research ‐ not too broad or narrow Develop the research plan Collect the information Analyze the information Present the findings Make the decision objectives 2 3 4 5 6
  6. 6. 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.
  7. 7.  Whatever the key research question, it is important for the marketing manager and research manager to agree at the outset as to the specific purposes and objectives of the proposed consumer study.  Objective is to come up with new ideas for product ◦ Qualitative study – focus group and/or one-on-one depth interviews  Objective is to find out how many target consumers who use a particular product ◦ Quantitative study
  8. 8. • • Secondary Data Data that has been collected for reasons other than the specific research hand project at Includes external internal data and
  9. 9. Types of Secondary Data Internal Data Data generated in‐house May include analysis of customer files Useful for calculating customer lifetime value which include customer acquisition cost , profit generated from individual sale 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 • • • • • •
  11. 11. Designing Primary Research
  12. 12.  Also called one‐on‐one interview  Usually 20 minutes to 1 hour  Non‐structured  Establish atmosphere that encourages the consumer respondent  It provide marketers with valuable idea about product design or re design  Listen to words as well as observe “body language”  Session is usually recorded  Interpreted by trained researcher
  13. 13. Examine Options for Interviews
  14. 14. Qualitative Collection Method Focus Group • • 8‐10 participants Respondents are recruited through questionnaire Lasts about 2 hours a screener • • • Always taped or videotaped to assist analysis Online focus groups are growing
  15. 15. Focus Group Discussion Guide Chapter Two Slide 22
  16. 16. Qualitative Collection Method Projective Techniques • Research procedures designed to identify consumers’ subconscious feelings and underlying motivations – Done one on one & in closed settings • Consist of a variety of “tests”
  17. 17. Common Projective Exercises Table 2.1 people cannot easily locate and verbalize their true feelings toward a product category or brand. Description Word Associations 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. Sentence Completion The researcher has a series of incomplete sentences that the respondent (s) needs to complete with a word or phrase. Photo/Visual for Storytelling 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. Role Playing 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.
  18. 18. Qualitative Collection Method Metaphor Analysis • Based on belief that metaphors are the most basic method of thought and communication – much of communication is nonverbal and that people do not think as much in words as they do in images • 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. – Respondents are asked to find pictures that describe their thoughts, feelings, and beliefs about products, companies, and brands. – The results are then combined to see if there are common themes or constructs that consumers mention in their results Chapter Two Slide 25
  19. 19. Qualitative Collection Method “Looking‐In” • Look at information from threads and postings on social media, including blogs and discussion forums – Emerging field of consumer research that works to interpret online conversations • Methodology to capture consumers’ experiences, opinions, forecasts, needs, and interests – Growth in social marketing, there are increasing conversations and comments online regarding products and brands
  20. 20. Designing Primary Research
  21. 21.  The objective of quantitative research is to develop mathematical models, theories and/or hypotheses phenomena.  Quantitative methods can be used to verify which of such hypotheses are true.  Qualitative research, on the other hand, asks broad questions and collects data from participants.
  22. 22. 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
  23. 23. Data Collection Methods Mechanical Observational Research • Uses mechanical or electronic device to record consumer behavior or response – electronic traffic counters, video technology • Consumers’ increased use of highly convenient technologies will create more records for marketers – frequent shopper cards / smart cards‐freq • Audits are a type of mechanical observation which monitor sales
  24. 24. Data Collection Methods Experimentation • Can be used to test the relative sales appeal of many types of variables • An experiment is usually controlled with only some variables manipulated at a time while the others are constant • Test markets are conducted on a single market area • Experimentation can be conducted in laboratories or in the field
  25. 25. Discussion Questions • What might direct marketers test in experiments? • How can they use the results? Chapter Two Slide 31
  26. 26. Personal Interview Mail Telephone Online
  27. 27. MAIL TELEPHONE PERSONAL INTERVIEW ONLINE Cost Low Moderate High Low Response rate Low Moderate High Self- selection Geographic flexibility Excellent Good Difficult Excellent Interviewer bias N/A Moderate Problematic N/A Interviewer supervision N/A Easy Difficult N/A Quality of response Limited Limited Excellent Excellent
  28. 28. Validity and Reliability • If a study has validity, it collects the appropriate data for the study. – Validity asks the question of whether the data is really applying to the objectives you have set • A study has reliability if the same questions, asked of a similar sample, produce the same findings. – Reliability tells you, the researcher, if the results would be repeated if conducted on a similar group at the same time.
  29. 29. I. Questionnaires II. Attitude Scale III. Customer Satisfaction Measurement IV. Sampling and Data Collection
  30. 30.  Primary data collection instrument for quantitative research  Interesting, objective, unambiguous, easy to complete and generally not burdensome.  Disguised or undisguised  Open ended or closed ended
  31. 31.  Avoid leading questions  Avoid two questions in one  Questions must be clear  Use words that consumers routinely use  Respondents must be able to answer the question  Respondents must be willing to answer the question
  32. 32.  Researchers often present respondents with a list of products or product attributes for which they are asked to indicate their relative feelings or evaluations.
  33. 33. Attitude Scales *Semantic differential is a type of a rating scale designed to measure objects, events, and concepts.
  34. 34. It is a measure of how products and services supplied by a company meet customer expectation. It is defined as "the number of customers whose reported experience with a firm, its products, or its services exceeds specified satisfaction goals.“ In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed
  35. 35.  Customer retention refers to the ability of a company or product to retain its customers over some specified period.  Successful customer retention involves more than giving the customer what they expect. Generating loyalty of the brand might mean exceeding customer expectations.  Customer retention has a direct impact on profitability.  It is the measure of how well the customer STAYS and STAYS ENGAGED with the organization OR with specific products and services
  36. 36. Customer Satisfaction Measurement • Customer Satisfaction Surveys – Analysis of Expectations versus Experience Mystery Shoppers Customer Complaint Analysis • •
  37. 37. Sampling and Data Collection • Samples are a subset of the population used to estimate characteristics entire population. of the • A sampling plan addresses: – – – Whom to survey How many to survey How to select them • Researcher must choose non‐probabililty sample. probability or
  38. 38. Copyright 2007 by Prentice Hall Table 2.4 Probability Sampling Designs Simple random sample Every member of the population has a known and equal chance of being selected. Systematic random sample A member of the population is selected at random and then every “nth” person is selected. Cluster (area) sample The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview. Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.
  39. 39. Copyright 2007 by Prentice Hall Table 2.4 Nonprobability Sampling Designs Convenience Sample The researcher selects the most accessible 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 50 women).
  40. 40. 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. Chapter Two Slide 37
  41. 41. Secondary Research vs. Primary Research Advantages Disadvantages Secondary research e.g census • Inexpensive • Easy to access • Immediate • Often outdated • Potentially unreliable • May not be relevant Primary research • Applicable & useable • Accurate & reliable • Up-to-date • Expensive • Not available immediately • Not always readily accessible
  42. 42. Thank You…!!!