consumer research process

Slide 1: 

Consumer Research Process & Consumer Decision Making

Consumer Research: 

Consumer Research Marketing research is the function that links The consumer The customer And public to the marketer Research comprises – Comprises defining & redefining problems Formulating hypothesis or suggested solutions Collecting , organizing & evaluating data Making deductions & reaching conclusions And at last testing the conclusion to determine whether they fit the formulation

Slide 3: 

The role of consumer research in managerial decision making is explained further using the framework of the DECIDE model: D — Define the marketing problem E — Enumerate the controllable and uncontrollable decision factors C — Collect relevant information I — Identify the best alternative D — Develop and implement a marketing plan E — Evaluate the decision and the decision process

Types of research: 

Types of research Qualitative research Quantitative research

Quantitative Research: 

Quantitative Research Descriptive in nature. Enables marketers to “predict” consumer behavior. Research methods include experiments, survey techniques, and observation. Findings are descriptive, empirical and generalizable .

Qualitative Research: 

Qualitative Research Consists 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.

Slide 7: 

Characteristics of a good marketing research Use of more scientific methods Cost and benefits Use of the Statistical method Alternative course of action

Slide 8: 

Scope of marketing research The scope of marketing research could cover the business problems relating to the followings- Types of consumers that compromise present and potential markets. Buying habits and pattern of consumption Size and location of different markets, not only in India but also overseas. The prospects for growth or construction for the current markets being served. New mantras of emerging segments. Marketing and manufacturing capabilities of competitors. Most suitable entry timing. The current and prospective competitive position. Chances of improvement of current channels. Optimum use of promo- tools.

Slide 9: 

Benefit to business and industry Benefits to economy. Enhanced ability to make well-informed decisions. Provides a cost-effective opportunity Facilitates a common knowledge bridge. Gives company an objective tool to help develop and promote employees. Assists researchers in understanding and differentiation between good research and impartial research. Benefits of Marketing Research

Consumer research process: 

Consumer research process

The Consumer Research Process: 

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

Slide 12: 

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

Developing Research Objectives: 

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

Secondary Versus Primary Data: 

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

Data Collection Methods: 

Data Collection Methods Observation Experimentation Surveys

Observational Research: 

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.

Experimentation: 

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.

Survey Data Collection Methods: 

Survey Data Collection Methods Personal Interview Mail Telephone Online

Sampling Plan Decisions: 

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

Slide 20: 

Probability Sampling Designs Simple random sample Systematic random sample Cluster (area) sample Stratified random sample

Slide 21: 

Non probability Sampling Designs Convenience sample Judgment sample Quota sample

Qualitative Data Collection Methods: 

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

Slide 23: 

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

Slide 24: 

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

Metaphor Analysis: 

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.

Consumer decision process: 

Consumer decision process

Slide 27: 

Buyer decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. Decision making is said to be a psychological construct. This means that although we can never "see" a decision, we can infer from observable behaviour that a decision has been made. Consumer decision

Consumer Benefits: 

Consumer Benefits People do not buy products or services, they buy benefits Hence we make purchases not for the products themselves, but for the benefits of the problems they solve or the opportunities they offer e.g., “always late” so a watch helps solve problem; has stopwatch feature so now can keep track of “work out” times

The Consumer Decision-Making Process : 

The Consumer Decision-Making Process A consumer decision model is a means of describing the processes that consumers go through before, during, and after making a purchase (choice). A model shows the causes or antecedents of a particular behavior and each of its results or consequences.

Slide 30: 

Consumer decision making varies with the level of involvement in the purchasing decision Extensive : problem solving occurs when buyers purchase more expensive, less frequently purchased products in an unfamiliar product category requiring information search & evaluation; may experience cognitive dissonance. Limited : problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category Routine : response behavior occurs when buyers purchase low cost, low risk, brand loyal, frequently purchased, low personal identification or relevance, items with which they are familiar. Increase in Consumer evaluation processes

Types of Consumer Buying Decisions: 

31 Types of Consumer Buying Decisions More Involvement Less Involvement Routine Response Behavior Limited Decision Making Extensive Decision Making

Slide 32: 

Five Factors influencing Decisions Level of consumer involvement Length of time to make decision Cost of good or service Degree of information search Number of alternatives considered

Slide 33: 

Factors affecting Consumer involvement Previous experience : low level involvement Interest : high involvement Perceived risk of negative consequences : high involvement Situation : low to high due to risk Social visibility : involvement increases with product visibility So marketeers offers Offer extensive information on high involvement products In-store promotion & placement is important for low involvement products Linking low-involvement product to high-involvement issue can increase sales

Slide 34: 

Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience Factors Determining Level of Involvement

Slide 35: 

Issues in Decision Making Compensatory vs. non-compensatory --can an exceptionally good rating on one attribute outweigh a bad one elsewhere? Brand vs. attribute based processing

Factors Influencing Buying Decisions: 

36 Factors Influencing Buying Decisions Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY

Culture: 

Culture Set of values norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

Cultural Influences on Buying Decisions: 

Cultural Influences on Buying Decisions Values Language Myths Customs Rituals Laws Components of American Culture Material Artifacts

Culture is...: 

Culture is... Pervasive Functional Learned Dynamic

Social Influences : 

Chapter 4 Version 3e 40 Social Influences Reference Groups Opinion Leaders Family Members Social Influences on Buying Decisions

Individual Influences: 

Chapter 4 Version 3e 41 Individual Influences Gender Age Family Life Cycle Personality Self-Concept Lifestyle Individual Influences 7

Psychological Influences: 

Chapter 4 Version 3e 42 Psychological Influences Psychological Influences on Buying Decisions Perception Motivation Learning Beliefs & Attitudes

Perception: 

Chapter 4 Version 3e 43 Perception Selective Exposure Selective Distortion Selective Retention

Motivation: 

Chapter 4 Version 3e 44 Motivation Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self- Actualization

Learning: 

Learning A process that creates changes in behavior, immediate or expected, through experience and practice. Types of Learning Description Experiential Conceptual An experience changes behavior Not learned through direct experience

Beliefs and Attitudes : 

Beliefs and Attitudes A n organized pattern of knowledge that an individual holds as true about his or her world. Belief Attitude A learned tendency to respond consistently toward a given object .

Decisions, decisions : 

3- 47 D ecisions , decisions You have a wedding to attend and you have to buy a present and an outfit Write down the steps that you think you would go through to make these two purchases Discuss this with a partner and note any differences between the processes you identified and perhaps some of the factors influencing your decision making

Decisions and problems: 

Decisions and problems Decision - choice between alternatives that can potentially solve a problem Problem - the difference between the consumer’s actual state and their desired state

Slide 49: 

Complete model of consumer behavior Stimuli (marketer dominated, other) External search Memory Internal search Exposure Attention Comprehension Acceptance Retention Search Need recognition Alternative evaluation Purchase Outcomes Dissatisfaction Satisfaction Individual differences resources motivation & involvement knowledge attitudes personality, values, lifestyle Influences culture social class family situation Start

Slide 50: 

Need Recognition Preferred State Marketing helps consumers recognize (or create) an imbalance between present status and preferred state When a current product isn’t performing properly When the consumer is running out of an product When another product seems superior to the one currently used

Search and involvement: 

3- 52 Search and involvement Involvement The amount of physical and mental effort and search that a consumer puts into a decision This effort is influenced by the level of importance of the decision – e.g. emotional or financial risk Types of involvement Situational – e.g. wedding outfit Enduring involvement, a more permanent involvement reflected across a range of decisions – e.g. a consumer’s self perception as a fashionable wealthy person will influence all purchase decisions

Involvement: 

3- 53 Involvement Factors influencing involvement: Personal involvement Situation involved in at the time of purchase Social visibility Perceived risk of negative consequences Previous experience As decision making becomes more complex, consumers rely more on previous experience, knowledge, attitudes and the advice of others and less on available information

Searching: 

3- 54 Searching Searching May take months or less than a second Factors that influence additional search include: Belief that current known brands are inadequate More information on known brands is required Friends or other information sources provide messages that conflict with current knowledge A high degree of risk is involved and consumers require confirmation of their decisions Internal search Memory – e.g. past purchases External search Internet, printed media, advertising, friends and others Market mavens Actively seek information on topics of interest

Evoked set: 

Evoked set Group of brands resulting from an information search , from which a buyer can chosse

Evaluation of Alternatives: 

Evaluation of Alternatives Evoked Set Purchase! Evaluation of Products Analyze product attributes Use cutoff criteria Rank attributes by importance

Categories of Alternatives: 

Categories of Alternatives Awareness set Consideration set (evoked set) Inept set Inert set Inept set Inert set Evoked set Awareness set All alternatives