Schiffman Consumer Behavior Chap 02

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The Consumer Research Process

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The Consumer Research Process:

The Consumer Research Process CHAPTER TWO

Learning Objectives:

Learning Objectives To Understand the Importance of Consumer Research for Firms and Their Brands, as Well as Consumers. To Understand the Steps in the Consumer Research Process. 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 2 Chapter Two Slide

Learning Objectives (continued):

Learning Objectives (continued) To Understand the Purposes and Types of Secondary Consumer Research That Is Available for Making Decisions or Planning Future Consumer Research. To Understand Specific Features and Applications of Different Research Methods to Be Carried Out in Consumer Research Studies. To Understand Where Data Analysis and Reporting of Findings Fit in the Research Process. 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 3 Chapter Two Slide

Why Do Marketers Regularly Test Print Ads Like This One Before They Are Placed in the Media?:

To Test the Impact of the Message Before Spending Large Amounts of Money:

The Importance of the Consumer Research Process:

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 6 Chapter Two Slide

The Consumer Research Process Figure 2.2:

The Consumer Research Process:

Developing Research Objectives:

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 9 Chapter Two Slide

The Consumer Research Process In Class Exercise:

The Consumer Research Process In Class Exercise Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 10 Chapter Two Slide Break into groups of 3 or 4 Select a product category everyone uses. Develop Objectives for a research on the product category. Do an Exploratory Study to find out what questions to ask. [see Exploratory Focus Group Discussion Guide next]

Secondary Data:

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 11 Chapter Two Slide

Types of Secondary Data:

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 12 Chapter Two Slide

Designing Primary Research:

Qualitative Collection Method Depth Interview:

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 14 Chapter Two Slide

Probing Options for Interviews Figure 2.3 :

Qualitative Collection Method Focus Group:

Qualitative Collection Method Focus Group 8-10 participants 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 16 Chapter Two Slide

Focus Group Discussion Guide - Figure 2.4 :

Focus Group Discussion Guide In Class Exercise:

Focus Group Discussion Guide In Class Exercise Use the focus group discussion guide for soup as guideline. As a group create a focus group discussion guide with these subject areas: Background Consumption Decision Making Process Capture the data Analyze the data as a group Present your finding in brief in class presentation Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 18 Chapter Two Slide

Qualitative Collection Method Projective Techniques:

Qualitative Collection Method Projective Techniques Research procedures designed to identify consumers’ subconscious feelings and underlying motivations Consist of a variety of disguised “tests” Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 19 Chapter Two Slide

Common Projective Exercises Table 2.1 (excerpt):

Common Projective Exercises Table 2.1 (excerpt) 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 20 Chapter Two Slide

Qualitative Collection Method Metaphor Analysis:

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 21 Chapter Two Slide

Qualitative Collection Method “Looking-In”:

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 22 Chapter Two Slide

Looking-In At Home Assignment:

Looking-In At Home Assignment Go to the Google Adwords Keyword Tool https:// adwords . google .com/select/ KeywordTool External FYI - What is Competition with the Google Adwords Tool? Place into the search box phrases that are relevant to the product category selected Select a phrase with a moderate Global Monthly Search and Competition Click on the phrase you select Check out the web sites related to that phrase What do the websites (or blogs))related to the phrase tell you about Consumer Decision Making – the Process (see Figure 1.4 Pg 18) Place the information in the Google Docs by clicking on the link “ mkt3510 Looking-In OnLine Research ” Note - hit “save now” if this button appears in order to save your data.

Designing Primary Research:

Data Collection Methods Observational Research:

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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 25 Chapter Two Slide

Data Collection Methods Mechanical Observational Research:

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 26 Chapter Two Slide

Observational Research At Home Assignment:

Observational Research At Home Assignment Observe people in a shopping or dining surrounding for approximately 60 – 120 minutes. Write down what you observe in : The Relationship of people to products Make a judgment from you observations as to: What does product symbolize to consumer Put your findings into Google Docs by clicking on the link “ mkt3510 Observational Research Table ”. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 27 Chapter Two Slide

Data Collection Methods Experimentation:

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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 28 Chapter Two Slide

Data Collection Methods Table 2.2:

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 Excellent Good Difficult Excellent Interviewer bias N/A Moderate Problematic N/A Interviewer Supervision N/A Easy Difficult N/A Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 29 Chapter Two Slide

Validity and Reliability:

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 30 Chapter Two Slide

Attitude Scales:

Attitude Scales In Class Exercise:

Attitude Scales In Class Exercise Go back with your group Use the product category selected above Each member will create a questionnaire using all of the Attitude Scales. Create one unique question per scale. No duplicate questions across students. Likert Scale Customer Satisfaction Guide Importance Scale Semantic Differential Scale Behavior Intention Scale Rank Order Scale Interview each other using the questionnaire Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 33 Chapter Two Slide

Customer Satisfaction Measurement:

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 34 Chapter Two Slide

Sampling and Data Collection:

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. Chapter Two Slide Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 35

Data Analysis and Reporting Findings:

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 36 Chapter Two Slide

Data Analysis and Reporting Findings At Home Assignment:

Data Analysis and Reporting Findings At Home Assignment Create an Excel Spreadsheet Place a numerical value ranging from +2 to -2 for all except Rank Order Agree on a weight across each scale Put your individual findings in an individual Excel Spreadsheet and, sum the numbers from each question Bring hard copy to class with your name on the sheet In class, as a group, summarize the findings Present your findings, explain your process and make research recommendations for marketing actions (change product, develop new product, etc.) Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 37 Chapter Two Slide

Slide 38:

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 38 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide