Consumer Behavior Marketing 410 Chapter 2 Book Notes
Consumer Behavior Marketing 410 Chapter 2 Book Notes Marketing 410
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This 6 page Class Notes was uploaded by Stephanie Marie on Wednesday February 24, 2016. The Class Notes belongs to Marketing 410 at University of Massachusetts taught by Iyer Earswar in Winter 2016. Since its upload, it has received 30 views. For similar materials see Consumer Behavior in Marketing at University of Massachusetts.
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Date Created: 02/24/16
Marketing 410 Chapter 2 The Consumer Research Process Imperative to Conduct Consumer Research ● enables marketers to predict or anticipate how marketers might better meet consumer needs by offering them more suitable products and marketing messages ● rapid increase in cross cultural or regional consumer behavior studies because companies are expanding globally An Overview of the Consumer Research Process ● primary research new research especially designed and collected for purposes of a current research problem ● qualitative research focus groups, interviews, etc. ● quantitative research observational research, experimentation, survey research ● 6 steps to the consumer research process 1. Developing Research Objectives ● is it to segment the market for HD TV sets? (example) ● a carefully thought out statement of objectives helps to insure that the info needed is secured and that costly errors are avoided ● exploratory study commonly using a qualitative methodology such as a few focus group sessions or series of one on one in depth interviews to identify the critical issues needed to develop focus and more precise research objectives for their quantitative research method 2. Collecting Secondary Data ● secondary data already existing information that was originally gathered for a research purpose other than the present research ● provides a good starting point ● can cut down or cause primary data to be avoided all together ● Internal Secondary Data ○ previously collected in house information that was originally used for some other purpose ○ customer lifetime value profiles include customer acquisition costs, the profits generated from individual sales to each customer, the costs of handling customers and their orders, and variable orders that cost more to handle and the expected duration of their relationship ● External Secondary Data ○ comes from sources outside of the organization ■ public and government secondary data ● made available for a very nominal cost ● example: fedstats.com ■ periodicals and articles available from online search services ● newspapers and books ● example: Lexis Nexis ○ enable access to Wall Street Journal and Forces, etc. ■ syndicated commercial marketing and media research services ● subscriber based studies that are offered by marketing research companies that routinely sell data to subscribing marketers ● secondary data is also offered by companies that routinely monitor a particular consumption related behavior and sell their data to marketing companies who use the insights to make more informed strategic decisions ○ Nielsen ● portable people meters PDA sized devices which individuals carry ■ Consumer Panels ● the members of the panel are paid for recording their purchases and or media viewing habits in diaries that are then combined with thousands of households and analyzed by the data providers ● marketing and advertising agencies pay the panel providers a subscription fee ■ limitations of secondary data: information may be categorized in units that are different from those that the researcher seeks ● some may not be accurate because of errors in gathering or analyzing data ● data could have been biased ● cannot use outdated secondary data 3. Designing Primary Research ● Designing and Conducting Qualitative Research ○ motivational researchers those who rejected the simple economic viewpoint that consumer marketing was simply applied economics and that consumers were rational decision makers who objectively evaluated the goods and services available to them and selected those that gave them the highest utility ■ consumers were not always consciously aware of why they made the decisions they did ○ researcher has to take into consideration the purpose of the study, the types of interviews that are likely to be best given the purpose of the research and the types of data instruments most suitable for securing the information needed ○ Depth Interviews ■ “one on one” ■ somewhat lengthy, structured interview between a single respondent and a highly trained researcher ■ consumer needs to be relaxed to open up about opinions ■ researcher encourages the respondent to talk freely about the product or brand under study ○ Focus Groups ■ discussion group ■ consists of 8 to 10 participants who meet with a moderatorresearcher to focus on or explore a particular product or product category ■ take less time than depth interviews ■ screen questionnaire respondents are recruited on the basis of this consumer profile ○ Discussion Guides ■ step by step outline that sets out the line of questioning that the researcher needs to cover with the respondent in a depth interview or a group of respondents in a focus group ■ focus groups and depth interviews can cause unanticipated information and extra insights ○ Qualitative Research Tools ■ projective techniques ● borrowed from psychoanalytic theory and practice and adapted for studying the unconscious associations of consumers who may be concealing or suppressing some of their thoughts or reactions ● disguised tests that contain ambiguous stimuli ● more often used during depth interviews than focus groups ● examples: word associations, sentence completions, photo/visuals for storytelling, role playing ■ Metaphor analysis ● the use of one form of expression to describe or represent feelings about another ● Zaltman Metaphor Elicitation Technique (ZMET) ○ first patented marketing research tool in the US ○ relies on visual images to assess consumers’ deep and subconscious thoughts about products, services, marketing ,etc. ■ Looking In Online Research ● researchers perform a key phrase search of the stored threads and related postings ● Designing and Conducting Quantitative Research ○ Observational Research ■ watching or carefully observing consumers’ actions of purchasing and consuming especially in realistic surroundings ■ provides greater insight into the bond between people and products that is the essence of brand loyalty ■ loyalty cards are used for mechanical observation ■ audit is another type of mechanical observation that entails monitoring the sales of products ■ psychological observation devices monitor respondents’’ patterns of information processing ● electric eye camera to monitor the eye movements of subjects ○ Experimentation ■ causal research only one variable is manipulated, independent variable, while all other elements are kept constant ● controlled experiment ■ test marketingincludes the selection of a representative single market area and then conducting a market introduction in order to test the actual response of consumers to the marketing effort under actual marketing conditions ○ Survey Research ■ in person, by phone, by email, by mail ■ personal interview surveys face to face, most often take place in a public space or a retail shopping area ■ telephone interview surveyevenings and weekends are often the only times to reach telephone respondents ● caller id, voice mail, etc. are all problems ■ mail surveys conducted by sending questionnaires directly to individuals at their homes ● low response rate ■ email surveys increasingly popular alternative to using the postal services ● easy and quick to distribute ● inexpensive ■ online or Internet based surveys ● computer polls, etc. ● Quantitative Research Data Collection Instruments ○ validity if a study does in fact collect the appropriate data needed to answer the questions or objectives stated in the first state of the research process ○ reliability if the same questions, asked of a similar sample product the same findings ○ Questionnaires ■ can be sent through the mail or online ■ must be interesting, objective, unambiguous, easy to complete, and generally not burdensome ■ questionnaire can be disguised or undisguised as to its true purpose ■ questions can be open or close ended ■ wording the questions is the biggest challenge ○ Attitude Scales ■ list of products or product attributes for which they are asked to indicate their relative feelings ■ Likert scale is the most popular form because it is easy to prepare and interpret and simple for consumers to answer ● level of agreement or disagreement ■ semantic differential scale easy to construct and administer ● consists of a series of bipolar adjectives anchored at the ends of odd numbered continuum ■ behavior intention scale measures the likelihood that consumers will act in a certain way in the future such as buying the product again or recommending it to a friend ● easy to construct ■ rank order scales subjects are asked to rank items such as products in order of preference in terms of some criterion ● important competitive info ○ Customer Satisfaction Measurement ■ includes quantitative and qualitative measures as well as a variety of contact methods with customers ■ customer satisfaction surveys measure how satisfied the customers are with relevant attributes of the product or service and the relative importance of these attributes ● “very satisfied” to “very dissatisfied” ■ mystery shoppers are professional observers who pose as customers and interact with and provide unbiased evaluation of the company’s service personnel in order to identify opportunities for improving productivity and efficiency ○ Sampling and Data Collection ■ sample a subset of the population that is used to estimate the characteristics of the entire population ■ probability sample respondents are selected in such a way that every member of the population studied has known, non zero chance of being selected ■ nonprobability sample population under study has been predetermined n a nonrandom fashion on the basis of the researcher’s judgement or decision to select a given number of respondents from a particular group 4. Data Analysis and 5. Reporting Research Findings ● research report includes a brief executive summary of the findings ○ recommendations for marketing action ○ full description of the methodology used and tables and graphics to support findings