Consumer Research Methods Methods of consumer research Primary

Consumer Research Methods • Methods of consumer research • Primary research methods • Advantages and disadvantages of each method MKTG 371 RESEARCH METHODS Lars Perner, Instructor 1

Two Research Methods • Secondary: use of existing research already done – Government – Consulting firms – Newspaper and magazine articles • Primary: creation of specific studies to answer specific questions MKTG 371 RESEARCH METHODS Lars Perner, Instructor 2

ABI Inform • Specializes in business related publications • Search choices – Subject terms • “Snow-balling” new subject terms – – MKTG 371 Personal Name Product Name, Company Name Abstract “All basic search fields” RESEARCH METHODS Lars Perner, Instructor 3

Snow-balling example • Subject=Asian + Subject=Advertising Television stations, Television markets, Asian Americans, Television Advertising, Studies, Minority & Ethnic Groups MKTG 371 RESEARCH METHODS Lars Perner, Instructor 4

Lexis-Nexis (Academic) • From within Lexis-Nexis, select “Guided Search” – Several different options—e. g. , “General News” vs. “Business News” • Allows for search through full text MKTG 371 RESEARCH METHODS Lars Perner, Instructor 5

Business & Industry • Great coverage of trade journals • Excellent indexing of articles by – Country/region – Industry – Business/marketing concept—e. g. • “Consumer marketing” • “Market Research” • “Teen Market” MKTG 371 RESEARCH METHODS Lars Perner, Instructor 6

Other • Industry and Company Info – Not as useful for this course but good for job hunting • Hoover’s – Identify competitors, industry • Some print sources: – Best Customers – Statistical Abstracts • Country information – Stat-USA – Economist Intelligence Unit • Standard and Poor’s Industry Surveys MKTG 371 RESEARCH METHODS Lars Perner, Instructor 7

Other Sources When You Do Not Have Access to Lexis-Nexis/ABI – Newspaper back indices—usually have to pay for older articles – Business Week online and other business periodicals – Google news: current articles only • http: //news. google. com/ MKTG 371 RESEARCH METHODS Lars Perner, Instructor 8

Primary Research Methods • • • Surveys Experimentation Focus groups In-depth interviews Projective techniques • Physiological Measures MKTG 371 RESEARCH METHODS Lars Perner, Instructor 9

Surveys • Planned questions – Open-ended – Closed-ended • Sample size and inferences • Forms – – Mail Telephone Mall Intercept Computer/Internet • Biases – Wording – Response – Interviewer MKTG 371 RESEARCH METHODS Lars Perner, Instructor 10

Computer/Online surveys • Getting people to follow instructions • Opportunities for branching (contingent questions) • Sampling frame and response • Possible emerging opportunities – Correlating data on which not all respondents have answered the same questions MKTG 371 RESEARCH METHODS Lars Perner, Instructor 11

Experimentation • Real world relevance vs. control (internal vs. external validity) • “Treatments” and factorial designs • Sample sizes and inferences MKTG 371 RESEARCH METHODS Lars Perner, Instructor 12

Focus Groups • Groups of 8 -12 consumers assembled • Start out talking generally about context of product • Gradually focus in on actual product MKTG 371 RESEARCH METHODS Lars Perner, Instructor 13

In-depth interviews • Structured vs. unstructured interviews • Generalizing to other consumers • Biases MKTG 371 RESEARCH METHODS Lars Perner, Instructor 14

Projective Techniques • Measurement of attitudes consumers are unwilling to express • Consumer discusses what other consumer might think, feel, or do MKTG 371 RESEARCH METHODS Lars Perner, Instructor 15

Observation • Consumer is observed-preferably unobtrusively-while: – Examining products prior to making a purchase – Using a product – Engaging in behavior where the product may be useful MKTG 371 RESEARCH METHODS Lars Perner, Instructor 16

Physiological Measures • Devices attached to the consumer to measure – Arousal – Eye movement • Consumer feedback – Lever pulled to positive or negative positions – Squeeze on ball MKTG 371 RESEARCH METHODS Lars Perner, Instructor 17

Scanner Data • Panel members in test communities agree to – Swipe a card prior to each purchase – Have purchases matched to • • demographic profiles media/coupon exposure promotional status of competing brands past purchases • Problems: – Aggregation over household – Aggregation bias--averages of disparate segments obscure! MKTG 371 RESEARCH METHODS Lars Perner, Instructor 18

Definition • Confound: The tendency of some phenomenon to be caused at least in part by some variable other than the one of interest. • E. g. , are tall women more or less likely to wear high heels? MKTG 371 RESEARCH METHODS Lars Perner, Instructor 19

Confounds • What is cause, what is effect, and what is coincidence? • Correlation is not necessarily cause • “Lurking” factors may be real cause of 26 – Does having more toys cause children to be more intelligent? – Are tall women more or less likely to wear high heels? – Do vaccinations cause autism? – Does Prozac cause suicide? – Do fish-heavy diets cause stomach cancer? MKTG 371 RESEARCH METHODS Lars Perner, Instructor 20

Issues in International Primary Research • Social desirability/ willingness to “stand out” ---> need to adjust data • Willingness to criticize products • Familiarity with being surveyed MKTG 371 • New technologies (e. g. , scanner data) -usually less well developed than in the U. S. • Reachability of respondents • Selection of appropriate respondent RESEARCH METHODS Lars Perner, Instructor 21

Why We Buy Chapter 1: “A Science Is Born” • “Trackers” • High vs. low tech tools • Massive database • Repetitive, nonglorious work MKTG 371 RESEARCH METHODS Lars Perner, Instructor 22

Chapter 2: “What Retailers Don’t Know” • Conversion rates • What do managers actually know—or think they know? • Knowing the neighborhood • Waiting line MKTG 371 RESEARCH METHODS Lars Perner, Instructor 23

Chapter 3 “The Twilight Zone” • The Transition Zone • Effects of automatic doors • Productive uses of the transition zone • Tradeoffs in real life MKTG 371 RESEARCH METHODS Lars Perner, Instructor 24

Why We Buy Ch. 4—”You Need Hands” • Important to visualize the consumer in actual shopping situation • Some purchases may not be important enough to warrant logistics—must make it easier to reach products • Where to place baskets in stores? • Disneyland’s experience—thinking like a visitor MKTG 371 RESEARCH METHODS Lars Perner, Instructor 25

Ch. 5 “How to Read a Sign” • Objectives – Get shoppers’ attention – Induce to look and shop – Deliver useful and understandable info • Mc. Donald’s menus—prime exposure opportunities • CNN Airport television sets MKTG 371 RESEARCH METHODS Lars Perner, Instructor 26

Ch. 6“Shoppers Move Like People” • Why not be next to a bank? • What do mirrors do to walking traffic? • Chevroning— advantages and disadvantages MKTG 371 RESEARCH METHODS Lars Perner, Instructor 27