the consumer research process

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The Consumer Research Process METAS Adventist College (NEHU) Prepared By, Mr. Nishant Agrawal

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Page 1: The Consumer Research Process

The Consumer

Research Process

METAS Adventist College (NEHU)

Prepared By,Mr. Nishant Agrawal

Page 2: The Consumer Research Process

The Importance of the ConsumerResearch Process

Largely Influenced by Psychology, sociology, and anthropology

• Marketers must understand customerseffective:

to design

–––

marketing strategies

productspromotional messages

Chapter Two Slide 7

Page 3: The Consumer Research Process

The Consumer Research Process

Page 4: The Consumer Research Process

The Consumer Research Process

••

Secondary research

Primary research– Qualitative research includes focus groups and in‐depth

interviews

– Quantitativeresearch

observational research, experimentation, and survey

Chapter Two Slide 9

Page 5: The Consumer Research Process

6 steps inResearch

1 Define the problem and research

‐ not too broad or narrow Develop the research plan Collect the information Analyze the information Present the findingsMake the decision

objectives

2

3456

Page 6: The Consumer Research Process

Developing Research Objectives

• Defining purposes and objectives helps ensure anappropriate research design.

• A written statement of objectives helps to define thetype and level of information needed.

Page 7: The Consumer Research Process

Discussion Questions

• Assume you are planning to open a new pizzarestaurant near your campus.

– What might be three objectives offor your new business?

a research plan

– How could you gather these data?

Page 8: The Consumer Research Process

Secondary Data

Data that has been collectedfor reasons other than thespecific researchhand

project at

Includesexternal

internaldata

and

Page 9: The Consumer Research Process

Types of Secondary Data

Internal DataData generated in house‐May include analysis of customer filesUseful for calculating customer lifetime value

External DataData collected by an outside organizationIncludes federal government, periodicals, newspapers, books, search enginesCommercial data is also available from market research firms

••

••

Page 10: The Consumer Research Process

U.S. Census Data

weblink

Page 11: The Consumer Research Process

Discussion QuestionsPersonal Privacy

• Many people do not like the fact that their personalused for marketing.

data are

• How can marketers justify their need for data?

• How can they acquire data and maintain customer privacy?

Page 12: The Consumer Research Process

Designing Primary Research

Page 13: The Consumer Research Process

Qualitative Collection MethodDepth Interview

Also called one on‐ ‐one interview•

• Usually 20 minutes to 1 hour

• Non structured‐

• Session is usually recorded

Interpreted by trained researcher•

Page 14: The Consumer Research Process

Examine Options for Interviews

Page 15: The Consumer Research Process

Qualitative Collection MethodFocus Group

••

8‐10 participants

Respondents are recruited through questionnaireLasts about 2 hours

a screener

•••

Always taped or videotaped to assist analysis

Online focus groups are growing

Page 16: The Consumer Research Process

Focus Group Discussion Guide

Chapter Two Slide 22

Page 17: The Consumer Research Process

Qualitative Collection MethodProjective Techniques

• Research procedures designed to identify consumers’subconscious feelings and underlying motivations

– Done one on one & in closed settings

• Consist of a variety of “tests”

Page 18: The Consumer Research Process

Common Projective ExercisesTable 2.1

people cannot easily locate and verbalize their true feelings toward a product category or brand.

DescriptionWordAssociations

The researcher has a list of words, some of them to be studied and some just as “filler.” The researcher asks the respondent (s) to react, one-at-a time, to each word by stating or (in a focus group setting) writing on a pad the first word that comes to mind, and to explain the link.

SentenceCompletion

The researcher has a series of incomplete sentences that the respondent (s) needs to complete with a word or phrase.

Photo/Visual for Storytelling

The researcher creates/selects a series of photos of consumers, different brands or products, range of print ads, etc., to serve as stimuli. The respondents are asked to discuss or tell a story based on their response to a photo or some other visual stimulus.

Role Playing Is quite similar to storytelling; however, instead of telling a story, the participant (s) will be given a situation and asked to “act out” the role (s), often with regard to a product or brand, or particular selling situation.

Page 19: The Consumer Research Process

Qualitative Collection MethodMetaphor Analysis

• Based on belief that metaphors are the most basic method of thought andcommunication

– much of communication is nonverbal and that people do not think as much in words as they do in images

• Zaltman Metaphor Elicitation Technique (ZMET) combines collageresearch and metaphor analysis to bring to the surface the mental modelsand the major themes or constructs that drive consumer thinking andbehavior.

– Respondents are asked to find pictures that describe their thoughts, feelings, and beliefs about products, companies, and brands.

– The results are then combined to see if there are common themes or constructs that consumers mention in their results

Chapter Two Slide 25

Page 20: The Consumer Research Process

Qualitative Collection Method“Looking In”‐

• Look at information from threads and postings on social media, includingblogs and discussion forums

– Emerging field of consumer research that works to interpret online conversations

• Methodology to capture consumers’ experiences, opinions, forecasts,needs, and interests

– Growth in social marketing, there are increasing conversations andcomments online regarding products and brands

Page 21: The Consumer Research Process

Designing Primary Research

Page 22: The Consumer Research Process

Quantitative Research

• The objective of quantitative research is to

develop mathematical models, theories and/or

hypotheses phenomena.

• Quantitative methods can be used to verify which of such

hypotheses are true.

• Qualitative research, on the other hand, asks broad

questions and collects data from participants.

Page 23: The Consumer Research Process

Data Collection MethodsObservational 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 ofwhat the product symbolizes

Page 24: The Consumer Research Process

Data Collection MethodsMechanical Observational

Research• Uses mechanical or electronic device to record consumer behavior or

response

– electronic traffic counters, video technology

• Consumers’ increased use of highly convenient technologies will createmore records for marketers

– frequent shopper cards / smart cards‐freq

• Audits are a type of mechanical observation which monitor sales

Page 25: The Consumer Research Process

Foxwoods Casino Uses Mechanical Observational Research

Page 26: The Consumer Research Process

Data Collection MethodsExperimentation

• Can be used to test the relative sales appeal of manytypes of variables

• An experiment is usually controlled with only somevariables manipulated at a time while the others areconstant

• Test markets are conducted on a single market area

• Experimentation can be conducted in laboratories or inthe field

Page 27: The Consumer Research Process

Discussion Questions

• What might direct marketers test in experiments?

• How can they use the results?

Chapter Two Slide 31

Page 28: The Consumer Research Process

Surveys Data Collection Methods

Personal Interview

Mail

Telephone

Online

Page 29: The Consumer Research Process

MAIL TELEPHONE PERSONAL INTERVIEW ONLINE

Cost Low Moderate High Low

Response rate Low Moderate High Self-

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

Table 2.2 Comparative Advantages

Page 30: The Consumer Research Process

Validity and Reliability

• If a study has validity, it collects the appropriate data for thestudy.– Validity asks the question of whether the data is really applying to the

objectives you have set

• A study has reliability if the same questions, asked of a similarsample, produce the same findings.– Reliability tells you, the researcher, if the results would be repeated if

conducted on a similar group at the same time.

Page 31: The Consumer Research Process

Attitude Scales

*Semantic differential is a type of a rating scale designed to measure objects, events, and concepts.

Page 32: The Consumer Research Process

Example

Page 33: The Consumer Research Process

Customer Satisfaction

•It is a measure of how products and services supplied by a company

meet customer expectation.

•It is defined as "the number of customers whose reported experience with

a firm, its products, or its services exceeds specified satisfaction goals.“

•In researching satisfaction, firms generally ask customers whether their

product or service has met or exceeded expectations.

•Thus, expectations are a key factor behind satisfaction. When

customers have high expectations and the reality falls short, they will be

disappointed

Page 34: The Consumer Research Process

Customer Satisfaction Survey

Page 35: The Consumer Research Process

Customer Retention

• Customer retention refers to the ability of a company or product to

retain its customers over some specified period.

• Successful customer retention involves more than giving the

customer what they expect. Generating loyalty of the brand might

mean exceeding customer expectations.

• Customer retention has a direct impact on profitability.

• It is the measure of how well the customer STAYS and STAYS

ENGAGED with the organization OR with specific products and

services

Page 36: The Consumer Research Process

Customer Satisfaction Measurement

• Customer SatisfactionSurveys

– Analysis of Expectations versus Experience

Mystery ShoppersCustomer ComplaintAnalysis

••

Page 37: The Consumer Research Process

Sampling and Data Collection

• Samples are a subset of the populationused to estimate characteristicsentire population.

of the

• A sampling plan addresses:

–––

Whom to survey

How many to surveyHow to select them

• Researcher must choosenon‐probabililty sample.

probability or

Page 38: The Consumer Research Process

Data Analysis and Reporting Findings

• Open ended‐ questions are coded and quantified.

• All responses are tabulated and analyzed.

• Final report includes executive summary, body,tables, and graphs.

Chapter Two Slide 37

Page 39: The Consumer Research Process

Secondary Research vs.Primary Research

Advantages Disadvantages

Secondary research

e.g census

• Inexpensive• Easy to access• Immediate

• Often outdated• Potentially unreliable• May not be relevant

Primary research • Applicable & useable• Accurate & reliable• Up-to-date

• Expensive• Not available immediately• Not always readily accessible

Page 40: The Consumer Research Process

Thank You…!!!