Consumer's Analysis Interview

Chapter 2

Consumer Research

©2000 Prentice Hall

Consumer Research Paradigms

Quantitative Research


Qualitative Research




• Descriptive in nature.

• Enables marketers to “predict” consumer behavior.

• Research methods include experiments, survey techniques, and observation.

• Findings are descriptive, empirical and generalizable.


PositivismPositivism

A consumer behavior research approach that regards the consumer

behavior discipline as an applied marketing science.

Its main focus is on consumer decision making.



• Consists of depth interviews, focus groups, metaphor analysis, collage research, and projective techniques.

• Administered by highly trained interviewer-analysts.

• Findings tend to be subjective.• Findings not usually generalizable• Small sample sizes.


InterpretivismInterpretivism

A postmodernist approach to the study of consumer

behavior that focuses on the act of consuming rather than

on the act of buying.


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.


Depth Depth InterviewsInterviews

A lengthy and relatively unstructured interview designed to uncover a consumer’s underlying

attitudes and/or motivations.


Table 2.1 Comparisons between Positivism and Interpretivism

PURPOSEPURPOSE

METHODOLOGYMETHODOLOGY


Prediction of consumer actions


Prediction of consumer actions


Understanding consumption practices


Understanding consumption practices


Quantitative


Quantitative


Quantitative


Quantitative


Table 2.1 continued

ASSUMPTIONS


•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


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.


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


Figure 2.2 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

• 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 Secondary DataData

Data that has been collected for reasons other than the

specific research project at hand.


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.


Primary Primary ResearchResearch

Original research undertaken by individual researchers or

organizations to meet specific objectives.

Collected information is called Primary Data.


Table 2.2 Major Sources of Secondary Data

Internal sources include company profit-loss statements, balance sheets, sales figures, sales-call reports, invoices, inventory records, and prior research reports.

Internal Internal SourcesSources

Statistical Abstract of the U.S., updated annually, provides summary data on demographic, economic, social, and other aspects of the American 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 etcMarketing 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.

Government Government PublicationsPublications


Table 2.2 continued

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.

Periodicals Periodicals and Booksand Books


Table 2.2 continuedA.C. Nielsen Company provides data on products and brands sold through retail outlets (Retail Index Services), data on television audiences (Media Research Services), magazine circulation data (Neodata Services, Inc.), etc.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.

Commercial Commercial DataData

Source: Adopted from Philip Kotler, Marketing Management: Analysis, Planning, Implementation, and Control 9th ed. (Upper Saddle River, NJ: Prentice Hall, 1997).


Designing Primary Research

• Quantitative studies more likely for collecting descriptive information.

• Qualitative studies may be used to get new ideas.


Quantitative Research Designs

MethodMethod

Sample DesignSample Design

Data Collection Instrument

Data Collection Instrument


Data Collection Methods

Observation

Experimentation

Surveys


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

• 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.


Surveys

Personal Interview

Mail

Telephone

Online


Table 2.3 Comparative Advantages of Mail, Telephone, and Personal Interview Surveys

MAIL TELEPHONEPERSONAL INTERVIEW

ON-LINE

Cost Low Moderate High LowSpeed Slow Immediate Slow FastResponse rate

Low Moderate HighSelf-

selectionGeographic 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


Data Collection Instruments

QuestionnairesQuestionnaires

Attitude Scales

Attitude Scales

Personal InventoriesPersonal

Inventories

Discussion Guides

Discussion Guides


ValidityValidity

The degree to which a measurement instrument

accurately reflects what it is designed to measure.


ReliabilityReliability

The degree to which a measurement instrument is

consistent in what it measures.


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.


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.


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.


Figure 2.3 Example of a Likert ScalePlease 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 Strongly2 = Agree3 = Neither Agree or Disagree4 = Disagree5 = 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 morning._____ f. Some Web sites really encourage you to browse._____ g. It’s easy to compare different makes and models one-line.


Figure 2.4 Semantic Differential Profiles of Three Pay-Per-Movie Services

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4

5

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DVD

DigitalCableDIVX

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Figure 2.5 Rank-Order ScalesA. 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 _____ AT&T Worldnet_____ Netscape _____ Juno_____ Microsoft Explorer _____ 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 _____Hewlett Packard_____ Dell _____ Gateway_____ Compaq _____ NEC


Qualitative Data Collection Methods

Depth Depth InterviewsInterviews

Projective Projective TechniquesTechniques

FocusFocusGroupsGroups

Metaphor Metaphor AnalysisAnalysis


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.


Focus GroupFocus Group

A qualitative research method in which about eight to ten persons participate in

an unstructured group interview about a product or

service concept.


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.


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...


Projective Projective TechniquesTechniques

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.


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.


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.


Sampling Plan Decisions

Whom to survey?

Whom to survey?

How many?How many?

How toselect them?

How toselect them?


Table 2.4 Probability and Nonprobability Sampling Designs

PROBABILITY SAMPLESPROBABILITY 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.

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.


Table 2.4 continued

NONPROBABILITY SAMPLESNONPROBABILITY 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).


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 and analyzed


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.

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