Chapter 2 Consumer Research Consumer Research Paradigms Quantitative

Chapter 2 Consumer Research

Consumer Research Paradigms Quantitative Research Qualitative Research © 2000 Prentice Hall

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. © 2000 Prentice Hall

Positivism A consumer behavior research approach that regards the consumer behavior discipline as an applied marketing science. Its main focus is on consumer decision making. © 2000 Prentice Hall

Qualitative Research • Consists of depth interviews, focus groups, metaphor analysis, collage research, and projective techniques. • Administered by highly trained intervieweranalysts. • Findings tend to be subjective. • Findings not usually generalizable • Small sample sizes. © 2000 Prentice Hall

Interpretivism A postmodernist approach to the study of consumer behavior that focuses on the act of consuming rather than on the act of buying. © 2000 Prentice Hall

Interpretivism • Concerned with act of consumption rather than in the act of buying. • Uses qualitative research. • Use depth interviews. • Often used to help make business decisions. © 2000 Prentice Hall

Depth Interviews A lengthy and relatively unstructured interview designed to uncover a consumer’s underlying attitudes and/or motivations. © 2000 Prentice Hall

Table 2. 1 Comparisons between Positivism and Interpretivism PURPOSE Positivism Prediction of consumer actions Interpretivism Understanding consumption practices METHODOLOGY Positivism Quantitative Interpretivism Quantitative © 2000 Prentice Hall

Table 2. 1 continued ASSUMPTIONS Positivism Interpretivism • Rationality; consumers make decisions after weighing alternatives • The causes and effects of behavior can be identified and isolate • Individuals are problem solvers who engage in information processing • A single reality exists • Events can be objectively measured • Causes of behavior can be identified, by manipulating causes, the marketer can influence behavior • Findings can be generalized to larger populations • There is no single, objective truth • Reality is subjective • Cause and effect cannot be isolated • Each consumption experience is unique • Researcher/respondent interactions affect research findings • Findings are often not generalized to larger populations © 2000 Prentice Hall

Combining Qualitative and Quantitative Research Findings • The research paradigms are complementary in nature. • Produce a richer and more robust profile of consumer behavior than either research approach used alone. © 2000 Prentice Hall

The Consumer Research Process • The six major steps in the consumer research process are: – 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 © 2000 Prentice Hall

Figure 2. 2 The Consumer Research Process Develop Objectives Collect Secondary Data Design Qualitative Research • Method • Screener questionnaire • Discussion guide Design Quantitative Research • Method • Sample design • Data collection instrument Conduct Research (Using highly trained interviewers) Collect Primary Data (Usually by field staff) Analyze Data (Subjective) Prepare Report Exploratory Study Analyze Data (Objective) Prepare report © 2000 Prentice Hall

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. © 2000 Prentice Hall

Secondary Data that has been collected for reasons other than the specific research project at hand. © 2000 Prentice Hall

Collecting Secondary Data • Secondary information is any data originally generated for some purpose other than the present research objectives. • Provides clues and direction for the design of primary research. © 2000 Prentice Hall

Primary Research Original research undertaken by individual researchers or organizations to meet specific objectives. Collected information is called Primary Data. © 2000 Prentice Hall

Table 2. 2 Major Sources of Secondary Data Internal Sources Internal sources include company profit-loss statements, balance sheets, sales figures, sales-call reports, invoices, inventory records, and prior research reports. Statistical Abstract of the U. S. , updated annually, provides summary data Government on demographic, economic, social, and other aspects of the American Publications economy and society. Country and City Data Book, updated every three years, presents statistical information for counties, cities, and other geographical units on populations, education, employment, aggregate and median income, housing, bank deposits, retail sales, etc. U. S. Industrial Outlook provides projections of industrial activity by industry and includes data on production, sales, shipments, employment etc Marketing Information Guide provides a monthly annotated bibliography of marketing information. Other government publications include the Annual Survey of Manufacturers; Business Statistics; Census of Manufacturers; Census of Population; Census f Retail Trade, Wholesale Trade, and Selected Service Industries; Census of Transportation; Federal Reserve Bulletin; Monthly Labor Review; Survey of Current Business; and Vital Statistics Report. © 2000 Prentice Hall

Table 2. 2 continued Periodicals and Books Business Periodicals Index, a monthly, lists business articles appearing in a wide variety of business publications. Standard and Poor’s Industry Surveys provides updated statistics and analyses of industries. Moody’s Manuals provides financial data and names of executives in major companies. Encyclopedia of Associations provides information on every major trade and professional association in the United States. Marketing journals include the Journal of Marketing, Journal of Marketing Research, and Journal of Consumer Research. Useful trade magazines include Advertising Age, Chain Store Age, Progressive Grocer, Sales and Marketing Management, and Store. Useful general business magazines include Business Week, Fortune, Forbes, and Harvard Business Review. © 2000 Prentice Hall

Table 2. 2 continued A. C. Nielsen Company provides data on products and brands sold through Commercial retail outlets (Retail Index Services), data on television audiences (Media Research Services), magazine circulation data (Neodata Services, Inc. ), etc. Data Market Research Corporation of America provides data on weekly family purchases of consumer products (National Consumer Panel); data on home food consumption (National Menu Census); and data on 6, 000 retail, drug, and discount retailers in various geographical areas (Metro Trade Audits). Selling Areas-Marketing, Inc. , provides reports on warehouse withdrawals to food stores in selected market areas (SAMI reports). Simmons Market Research Bureau provides annual reports covering television markets, sporting goods, proprietary drugs, etc. , giving demographic data by sex, income, age, and brand preferences (selective markets and media reaching them). Burke Marketing Services, Inc. , provides TV campaign testing in controlled marketing labs, marketing modeling, retail store audits, physiological measures of advertising stimuli, pre- and post-TV copy testing, and customer survey research. Markets Facts, Inc. , provides consumer mil panel, market test-store audit services, shopping mall facilities, WATS telephone interviewing, and ad hoc survey research. Other commercial research houses selling data to subscribers include the Audit Bureau of Circulation, Audits and Surveys, Dun and Bradstreet, Opinion Research, Roper-Starch, and Arbitron. Source: Adopted from Philip Kotler, Marketing Management: Analysis, Planning, Implementation, and Control 9 th ed. (Upper Saddle River, NJ: Prentice Hall, 1997). © 2000 Prentice Hall

Designing Primary Research • Quantitative studies more likely for collecting descriptive information. • Qualitative studies may be used to get new ideas. © 2000 Prentice Hall

Quantitative Research Designs Method Sample Design Data Collection Instrument © 2000 Prentice Hall

Data Collection Methods Observation Experimentation Surveys © 2000 Prentice Hall

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. © 2000 Prentice Hall

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. © 2000 Prentice Hall

Surveys Personal Interview Mail Telephone Online © 2000 Prentice Hall

Table 2. 3 Comparative Advantages of Mail, Telephone, and Personal Interview Surveys Cost Speed Response rate Geographic flexibility Interviewer bias Interviewer supervision Quality of response PERSONAL ON-LINE INTERVIEW High Low Slow Fast Self. High selection MAIL TELEPHONE Low Slow Moderate Immediate Low Moderate Excellent Good Difficult Excellent N/A Moderate Problematic N/A Easy Difficult N/A Limited Excellent © 2000 Prentice Hall

Data Collection Instruments Questionnaires Personal Inventories Attitude Scales Discussion Guides © 2000 Prentice Hall

Validity The degree to which a measurement instrument accurately reflects what it is designed to measure. © 2000 Prentice Hall

Reliability The degree to which a measurement instrument is consistent in what it measures. © 2000 Prentice Hall

Questionnaires • Used primarily for quantitative research. • Can be sent in the mail, or administered by interviewers in person or by telephone. • Can be disguised or undisguised as to its true purpose. • Questions can be open-ended or closed-ended. © 2000 Prentice Hall

Personal Inventories • Presents a series of statements to which respondents indicate their degree of agreement or disagreement. • An inventory presents a list of statements, while a questionnaire asks a series of questions. © 2000 Prentice Hall

Attitude Scales • The three most frequently used scales are: – Likert scales: easy for researchers to prepare and interpret, and simple for consumers to answer. – Semantic differential scales: relatively easy to construct and administer. – Rank-order scales: subjects rank items in order of preference in terms of some criteria. © 2000 Prentice Hall

Figure 2. 3 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 on-line 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 on-line than they are worth. _____ c. It is a good way to find out about new products. _____ d. I’m afraid to give out my credit card number on-line. _____ e. I can shop whenever I want--even at 2 o’clock in the _____ f. Some Web sites really encourage you to browse. _____ g. It’s easy to compare different makes and models one-line. morning. © 2000 Prentice Hall

Excellent Neutral Poor Figure 2. 4 Semantic Differential Profiles of Three Pay-Per-Movie Services © 2000 Prentice Hall

Figure 2. 5 Rank-Order Scales A. Please rank the following e-mail providers in terms of ease of access by placing a 1 in front of the service you think is best, a 2 alongside the second best, and continuing until you have ranked all six service providers. _____ America Online _____ Netscape _____ Microsoft Explorer _____ AT&T Worldnet _____ Juno _____ Erols B. 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 © 2000 Prentice Hall

Qualitative Data Collection Methods Depth Interviews Focus Groups Projective Techniques Metaphor Analysis © 2000 Prentice Hall

Depth Interviews • A lengthy non structured interview between a respondent and a highly trained interviewer. • Interviewer minimizes his or her own participation after establishing the general subject matter. • Can provide marketers with valuable ideas about product design and provide insights for positioning or repositioning the product. © 2000 Prentice Hall

Focus Group A qualitative research method in which about eight to ten persons participate in an unstructured group interview about a product or service concept. © 2000 Prentice Hall

Focus Groups • Consists of 8 to 10 respondents who meet with a moderator-analyst for a focused group discussion. • Respondents encouraged to discuss their interests, attitudes, reactions, motives, lifestyles, feelings about the product or product category, usage experience, etc. • Respondents recruited on the basis of consumer profiles, based on specifications defined by marketing management. © 2000 Prentice Hall

Figure 2. 6 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) Examples of Probe questions: a. Tell me more about that. . . b. Share your thinking on this… c. Does anyone see it differently. . . © 2000 Prentice Hall

Projective Techniques Research procedures designed to identify consumers’ subconscious feelings and motivations. These tests often require consumers to interpret ambiguous stimuli such as incomplete sentences, cartoons, or inkblots. © 2000 Prentice Hall

Projective Techniques • Consist of a variety of disguised “tests” that contain ambiguous stimuli. • Sometimes administered as part of a focus group, but usually used with depth interviews. • The theory is that respondents’ inner feelings influence how they perceive stimuli. © 2000 Prentice Hall

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 values also play an important role in understanding consumer behavior. © 2000 Prentice Hall

Sampling Plan Decisions Whom to survey? How many? How to select them? © 2000 Prentice Hall

Table 2. 4 Probability and Nonprobability Sampling Designs PROBABILITY SAMPLES 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. Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group. 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. © 2000 Prentice Hall

Table 2. 4 continued NONPROBABILITY SAMPLES 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 5 women). © 2000 Prentice Hall

Analysis • Qualitative Research: Moderator or test administrator usually analyzes responses. • Quantitative Research: Researcher supervises the analysis. – Open-ended responses are coded and quantified – Responses are tabulated analyzed © 2000 Prentice Hall

Conducting A Research Study • Researchers often adapt the research process to the special needs of the study. • Together with the marketing manager, the researcher specifies the parameters of the population to be studied. • A qualitative study might be undertaken first to gather information about the target population's attitudes and concerns about certain items. • Then a quantitative study may be conducted to confirm and attach “hard” numbers to the findings. © 2000 Prentice Hall