The Consumer Research

Dr. Poonam Madan

 Reference Reading
Consumer Behavior,
Eighth Edition

SCHIFFMAN & KANUK

Chapter 2 Consumer Research

 Learning Objectives

1. To Understand the Importance of Consumer

Research for Firms and Their Brands, as Well as
Consumers.
2. To Understand the Steps in the Consumer
Research Process.
3. To Understand the Importance of Establishing
Specific Research Objectives as the First Step in
the Design of a Consumer Research Project.

3
 Learning Objectives (continued)

4. To Understand the Purposes and Types of Secondary

Consumer Research That Is Available for Making
Decisions or Planning Future Consumer Research.
5. To Understand Specific Features and Applications of
Different Research Methods to Be Carried Out in
Consumer Research Studies.
6. To Understand Where Data Analysis and Reporting of
Findings Fit in the Research Process.
7. To Understand How Each Element of the Consumer
Research Process Adds to the Overall Outcome of the
Research Study.
Why Do Marketers Regularly Test Print Ads Like
This One Before They Are Placed in the Media?

5
To Test the Impact of the Message Before
Spending Large Amounts of Money

6
 Concept of Consumer Research
No direct way to look into the Black Box,
so we make logical inferences by
studying other variables:
- Inductive logic
- from specifics to generalities
- Deductive logic
-from generalities to specifics
IK
 What Is Consumer Research?

The systematic methods used by marketers to

study consumer decisions and exchange
processes
With these insights, marketers find
themselves in a better position to anticipate
consumers’ reactions
 Consumer Research
Enables marketers to
• predict how consumers will react
– in the marketplace
– to promotional messages
• to understand why they make the purchase
decisions they make
Marketers utilize CR
• to design marketing strategies
• and develop promotional messages
• … I.e. to influence consumers more
effectively
Kinds
• quantitative vs. qualitative
• customer vs. marketing
 Information About the Consumer

• Marketers need:
– Information about the purchase situation
– Information about buyers
– Information about product use
– Information about customer loyalty
– Information about market segments
– Information about customer satisfaction
 Consumer Research
• Consumer research has developed from the
more general field of market research.

• It is a field of study that has been influenced by

researchers and practitioners in several other
fields, including psychology, sociology, and
anthropology.
• Consumer research is important for marketers as
the competitive landscape in almost every
industry becomes even more challenging and
with growth in global and cross-cultural markets.
 The Importance of the Consumer
Research Process
• Marketers must understand customers
to design effective:
– marketing strategies
– products
– promotional messages

13
 Consumer Research Categories

Quantitative (positivist, predictive) – Large, probability

samples; Survey, experimental, observational
techniques; Statistical analysis; Empirical, and
generalizeable findings

Qualitative (Interpretivist, explanatory) – Small, non-

probability samples; Subjective analysis; uses depth
interviews, focus groups, projective techniques etc;
Highly trained interviewer-analysts;
 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.
 QUANTITATIVE RESEARCH

 Descriptive in nature
 Need to understand effects of various promotional inputs on
consumer
 Predict consumer behavior
 Positivism: research approach
 Experiments, survey techniques, observation
 Findings descriptive, empirical
 Generalized to large population
 Use sophisticated statistical analysis

 Undertaken to improve strategic marketing decisions

 Tries to identify cause and effect relationships in buying situations
 Positivism

A consumer behavior research approach

that regards the consumer behavior
discipline as an applied marketing
science.
 Qualitative Research

• Consists of depth interviews, focus groups,

metaphor analysis, collage research, and
projective techniques.
• Administered by highly trained interviewer-
analysts.
• Findings tend to be subjective.
• Small sample sizes.
 QUALITATIVE RESEARCH

 Depth interviews, focus groups, projective techniques

 Findings somewhat subjective
 not generalized to large populations
 highly trained interviewer - analyst
 obtain new ideas for promotion campaigns
 tested more thoroughly in larger studies
 interpretivism: research approach

 Used primarily to provide new ideas and insights for

development of positioning strategies
 More concerned with understanding the act of consuming
than buying
 Interpretivism

A postmodernist approach to the study of

consumer behavior that focuses on the act
of consuming rather than on the act of
buying.
 Table 2.2 Comparisons between
Positivism and Interpretivism
PURPOSE
Positivism Interpretivism

Prediction of consumer Understanding consumption

actions practices
METHODOLOGY
Positivism Interpretivism

Quantitative Qualitative
 Table 2.2 continued
ASSUMPTIONS
Positivism Interpretivism

•Rationality; consumers make •No single, objective truth

decisions after weighing •Reality is subjective
alternatives •Cause and effect cannot be
•The causes and effects of isolated
behavior can be identified •Each consumption experience
•Individuals are problem is unique
solvers •Researcher/respondent
•A single reality exists interactions affect research
•Events can be objectively findings
measured
 The Consumer Research Process

• Six steps
– 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
 THE CONSUMER RESEARCH PROCESS

1. Developing Research Objectives

◦ May conduct exploratory study

2. Collecting Secondary Data

◦ Data originally generated for some other purpose
◦ Provides clues and direction for design of primary
research
◦ Internal data, publications, commercial data
 THE CONSUMER RESEARCH PROCESS – contd.

3. Designing Primary Research

Quantitative
 Observational, experimentation, survey
 Questionnaires, attitude scales
Qualitative
 Depth interviews, focus groups, projective techniques
 Customer satisfaction measurement
 Surveys: semantic differential scales
 Mystery shoppers

4. Analyzing The Data

 Finding solutions

5. Reporting Research Findings

 Applications
The Consumer Research Process
Figure 2.2

26
 Consumer research process
• Here we see an overview of the consumer research process
that a typical marketer might follow when conducting
research. As you can see, the marketer will first develop
objectives to guide their research. Next comes the collection
of secondary data which we will learn is data that is available
because it had been collected previous to the marketer’s
particular research. In the next phase, the marketer branches
to both qualitative and quantitative research. In each of these
areas, the marketer collects and analyzes data and then
presents it in either a written report, a presentation, or both.
 The Consumer Research Process

Develop Objectives

Collect Secondary Data

Design Qualitative Research Design Quantitative Research

• Method • Method
• Screener questionnaire • Sample design
• Discussion guide • Data collection instrument

Conduct Research
Collect Primary Data
(Using highly trained
(Usually by field staff)
interviewers) Exploratory
Study
Analyze Data Analyze Data
(Subjective) (Objective)

Prepare Report Prepare report

 Consumer Research Process
Here we see an overview of the consumer research
process that a typical marketer might follow when
conducting research. As you can see, the marketer
will first develop objectives to guide their research.
Next comes the collection of secondary data which
we will learn is data that is available because it had
been collected previous to the marketer’s particular
research. In the next phase, the marketer branches
to both qualitative and quantitative research. In each
of these areas, the marketer collects and analyzes
data and then presents it in either a written report, a
presentation, or both.
 Developing Research Objectives

• Defining purposes and objectives helps ensure

an appropriate research design.
• A written statement of objectives helps to
define the type and level of information
needed.
• It is extremely important that research objectives
are determined at the beginning of the process.
Without this agreed-upon roadmap for the
research, money can easily be wasted and
research objectives not fulfilled. At this point, it is
important to define the purpose of a particular
study. A small-scale exploratory study might be
executed upfront if more information is needed
by the researcher. This might include a few focus
group sessions or a limited number of one-on-one
interviews.
 The Consumer Research Process

• Secondary research
• Primary research
– Qualitative
– Quantitative
• Information can be classified as either primary or secondary.

• Secondary information is information that has been collected

for another purpose. It is already available to the researcher
often for a fee.

• Primary research can be either qualitative or quantitative.

Qualitative research includes focus groups and in-depth
interviews. The more numerically-oriented quantitative
research includes observational research, experimentation,
and survey research.
 Sources of Information
• Secondary data
Information or statistics not gathered for the
immediate study at hand
• Primary data
Information or statistics originated by the
researcher for the purpose of the investigation at
hand
 Secondary Versus Primary Data

• Secondary data: data • Primary data: data

that has been collected by the
collected for reasons researcher for the
other than the purpose of meeting
specific research specific objectives
project at hand
 Discussion Questions

• Assume you are planning to open a new pizza

restaurant near your campus.
– What might be three objectives of a research plan
for your new business?
– How could you gather these data?
•What might be three objectives of a research
plan for your new business?
• To determine the target market, to set pricing
strategies, and to design effective marketing
messages
•How could you gather these data?
• Primary and secondary research. Primary research
might include focus groups, surveys, and
observation studies of local students and their
traffic patterns.
Secondary Data

• Data that has been

collected for reasons
other than the specific
research project at hand
• Includes internal and
external data
 Secondary Data

• Before jumping into primary data collection, a

researcher will collect all the relevant
secondary data that is available. Some of this
data is within the organization and some of it
can be collected or purchased from outside
organizations. Collecting secondary
information is important in guiding primary
research decisions.
 Types of Secondary Data

Internal Data: Data generated in-house

External Data: collected by an outside

organizations (governments, periodicals,
newspapers, books, search engines, market research
firms, etc.
 Sources of Secondary Data
• Secondary data is obtained from 3 types of
sources:
– Libraries (e.g., books, periodicals, government
documents, computerized databases)
– Nonlibrary sources (e.g., company files, trade
associations, government sources, media, and
chambers of commerce)
– The Internet
 Types of Secondary Data

Internal Data External Data

• Data generated in-house • Data collected by an outside
• May include analysis of organization
customer files • Includes federal
• Useful for calculating government, periodicals,
customer lifetime value newspapers, books, search
engines
• Commercial data is also
available from market
research firms
Table 2.2 Major Sources of Secondary
Data

Periodicals
Government
&
Publications
Books
Internal Commercial
Sources Data
 Limitations of Secondary Data
• Two key limitations characterize secondary
data:
– Fit: since data were originally collected for
another project or purpose, data may or may not
suit current needs
– Accuracy: varies depending on the expertise of
the organization that originally collected the data
 Primary Data
• The research process may require the
researcher to design a data-collection
instrument, devise a sampling plan, hire and
train a field staff, and process and analyze the
findings.
• May be costly and time-consuming
 Discussion Questions
Personal Privacy
• Many people do not like the fact that their
personal data are used for marketing.
• How can marketers justify their need for data?
• How can they acquire data and maintain
customer privacy?
 Primary Research
• Qualitative
• Quantitative
Consumer Research Paradigms

Quantitative
Research

Qualitative
Research
 Qualitative Research

• Qualitative research is an interdisciplinary, transdisciplinary,

and sometimes counterdisciplinary field. It crosses the
humanities and the social and physical sciences. Qualitative
research is many things at the same time. It is
multiparadigmatic in focus. Its practitioners are sensitive to
the value of the multimethod approach. They are committed
to the naturalistic perspective, and to the interpretative
understanding of human experience. At the same time, the
field is inherently political and shaped by multiple ethical and
political positions.
• Nelson et al’s (1992, p4)
 Qualitative Research

• ‘Qualitative Research…involves finding out what

people think, and how they feel - or at any rate, what
they say they think and how they say they feel. This
kind of information is subjective. It involves feelings
and impressions, rather than numbers’
• Bellenger, Bernhardt and Goldstucker, Qualitative Research in Marketing,
American Marketing Association
 Qualitative Research
• Qualitative research is multimethod in focus,
involving an interpretative, naturalistic approach
to its subject matter.
• Qualitative Researchers study “things” (people
and their thoughts) in their natural settings,
attempting to make sense of, or interpret,
phenomena in terms of the meanings people
bring to them.
 Qualitative Research

• Qualitative research involves the studied use and collection of

a variety of empirical materials - case study, personal
experience, introspective, life story, interview, observational,
historical, interactional, and visual texts-that describe routine
and problematic moments and meanings in individuals lives.
• Deploy a wide range of interconnected methods, hoping
always to get a better fix on the subject matter at hand.
• Qualitative research is a great way to begin your
primary research. It is extremely helpful in
identifying attitudes, thoughts, and beliefs about
your product. Because these methods generally
use small samples, qualitative research
techniques are often followed by quantitative
processes. The major types of qualitative
research are shown in this slide and explained in
more detail on the following slides.
 Qualitative Research is also known as
Motivation Research

Explores the why aspects of human behavior

with qualitative
rather than quantitative
research approaches
Designing Primary Research

Qualitative
Research
• Depth Interviews
• Focus Groups
• Projective Techniques
• Metaphor Analysis
Qualitative Data Collection Methods

Depth Focus
Interviews Groups

Projective Metaphor
Techniques Analysis
 Qualitative Collection Method
Depth Interview
• Usually 30 minutes to 1 hour
• Non-structured
• Interpreted by trained researchers
• Listen to words as well as “body language”
 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.
 Qualitative Collection Method
Depth Interview
• Also called one-on-one interview
• Usually 20 minutes to 1 hour
• Nonstructured
• Interviewer will often probe to get more
feedback (see following slide for probing)
• Session is usually recorded
 Depth Interviews
• Depth interviews provide important
information for targeting, positioning, and
product redesign. They can be as short as 20
minutes or last up to an hour. The interview is
often recorded, either with video or audio
recordings so that the interviewer can play it
back or transcribe the session to have all the
details. To get the most from the subject, an
interviewer will usually ask probing questions
in order to gain more insights from the
subject.
In-depth interviews
• Structured vs.
unstructured interviews
• Generalizing to other
consumers
• Biases
Probing Options for Interviews
 A qualitative research
method in which about
eight to ten persons
participate in an
Focus Group
unstructured group
interview about a
product or service
concept.
Focus Groups
• Groups of 8-12
consumers assembled
• Start out talking
generally about context
of product
• Gradually focus in on
actual product
 Qualitative Collection Method
Focus Group
• 8-10 participants
• Lasts about 2 hours
• Always taped or videotaped to assist analysis
• Often held in front of two-way mirrors
 Qualitative Collection Method
Focus Group
• 8-10 participants
• Respondents are recruited through a screener
questionnaire
• Lasts about 2 hours
• Always taped or videotaped to assist analysis
• Often held in front of two-way mirrors
• Online focus groups are growing
 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.
• Whereas one-on-one interviews are conducted directly
with the interviewer and a respondent, a focus group
uses a small group of subjects for the research. Some
researchers favor this approach because the
respondents interact with each other and build off of
each other’s comments. In addition, many people’s
opinions are included in a shorter amount of time than
individual interviews. A disadvantage of focus groups is
that participants might not always be honest and are
less willing to expose private thoughts and personal
views due to the presence of other members.
Researchers must balance the advantages and
disadvantages of this method when deciding if it is right
for their research project
 Focus Group

is a gathering of six to ten people who are

carefully selected based on certain
demographic, psychographic, or other
considerations and brought together to
discuss at length various topics of interest.
Focus Group in Session
 Focus Groups
A focus group is a gathering of 6 to 10
people carefully selected by researchers
based on certain demographic,
psychographic, or other considerations and
brought together to discuss various topics
of interest at length. Participants are
normally paid a small sum for attending. A
professional research moderator provides
questions and probes based on the
marketing managers’ discussion guide or
agenda. In focus groups, moderators try to
discern consumers’ real motivations and
why they say and do certain things. They
typically record the sessions, and marketing
managers often remain behind two-way
mirrors in the next room. To allow for more
in-depth discussion with participants, focus
groups are trending smaller in size. Focus-
group research is a useful exploratory step,
but researchers must avoid generalizing
from focus-group participants to the whole
market, because the sample size is too
small and the sample is not drawn randomly
 Discussion Guides for Research

• Step-by-step outline
for depth interviews
and focus groups
• Interviewers will
often “improvise”
and go beyond the
discussion guide
• Discussion guides are an important part of focus
groups and depth interviews. They provide an
agenda for the session and help ensure that the
researcher’s objectives that were established for the
research plan are met. Some interviewers follow the
guide exactly, but most will “go with the flow” and
let the participants partly drive the direction of the
research. This is not to say that the points on the
discussion guide are not covered, just that the
session has a more natural flow based on the
feedback of the participants.
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...
Focus Group Discussion Guide
 Qualitative Collection Method
Projective Techniques
• Research procedures designed to identify
consumers’ subconscious feelings and
underlying motivations
• Consist of a variety of disguised “tests”
• These tests often require consumers to
interpret ambiguous stimuli such as
incomplete sentences, cartoons, or inkblots
 Projective Techniques
• Measurement of
attitudes consumers are
unwilling to express
• Consumer discusses
what other consumer
might think, feel, or do
 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.
 Projective techniques

• Projective techniques have their roots in

psychoanalytic theory and practice. As a
group, they tap into the consumer’s
unconscious associations and motivations.
There are a variety of these techniques and
they are generally administered one-on-one
with the respondent in a closed setting. In
many situations, the research purpose is
disguised and the respondent simply knows
they are answering questions for a research
 Revealing Respondents’ Hidden Motives

• Can be accomplished through:

– Projective Techniques
• Subjects project themselves into a scene to interpret it. In so doing, they
reveal their own feelings.
– Association Tests
• The immediacy of subjects’ responses to stimulus words or phrases works
to curtail their self-censorship
– Other Techniques
• Subjects’ picture choices reveal their stereotypical perceptions
 Forms of Projective Techniques
• Thematic Apperception Test (TAT))
– Subjects interpret a photograph depicting a consumer-
related activity
• Cartoons
– Subjects interpret a drawing or provide a missing portion
of a dialog between its characters
• Verbal Projective
– Subjects interpret, explain, or complete a situation
described verbally to them
 Common Projective Exercises
(excerpt)
Description
Word The researcher has a list of words, some of them to be studied and some
Associations 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.
Sentence The researcher has a series of incomplete sentences that the
Completion respondent(s) needs to complete with a word or phrase.

Photo/Visual The researcher creates/selects a series of photos of consumers, different

for brands or products, range of print ads, etc., to serve as stimuli. The
Storytelling 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.
Question Types—Thematic Apperception Test

Make up a story that reflects what you think is

happening in this picture.
 Forms of Association Tests
• Free Word Associations
– Seeks immediate word responses that a subject utters
after hearing a stimulus
• Controlled and Chain Word Associations
– Seeks to discover subjects’ specific consumption habits or
associated thought patterns
• Sentence Completions
– Incomplete sentences are completed with first thought
that comes to a subject’s mind
 Other Motivation Research Techniques

• Picture-Sorting Technique
– Subjects’ stereotyping is revealed as they sort out
a stack of specially designed pictures
• Shopping List Technique
– Subjects surmise the type of person who buys
items appearing on a shopping list
• Zaltman Metaphor Elicitation Technique (ZMET)
– Subjects provide pictures that express their
feelings about a topic or situation
 Motivation Research Techniques – 1.
1. Word Association Techniques
– Free WA
– Controlled WA
– Successive WA
2. Completion Techniques
- Sentence completion
- Story completion
3. Picture and Visual Techniques
- Rorschach test
- TAT (Thematic Apperception Test)
- Cartoon Strip
IK
 Question Types –
Word Association
What is the first word that comes to your mind
when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
 Question Types –
Sentence Completion
When I choose an airline, the most
important consideration in my decision is:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
__________________.
 Question Types –
Picture (Empty Balloons)
 Question Types –
Story Completion
“I flew American a few days ago. I
noticed that the exterior and interior of
the plane had very bright colors. This
aroused in me the following thoughts and
feelings.” Now complete the story.
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
 Motivation Research Techniques – 2.
4. Role Playing Techniques
– Psychodrama
– Personification
5. Interview Techniques
- Depth (conversational) interview
- Focused group interview (focus group)
- Chain interview
6. Metaphor Analysis
- Zaltman Metaphor Elicitation Technique (ZMET)
IK
 Qualitative Collection Method
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
• It is believed that much of communication is
nonverbal and that people do not think as
much in words as they do in images. Given
this, they also use metaphors at the root of
their thoughts and communication.
• Zaltman Metaphor Elicitation Technique is
based on this use of metaphors. In these
studies, 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.
 Qualitative Collection Method
Others:“Looking-In”
• Look at information from threads and postings
on social media, including blogs and
discussion forums
• Methodology to capture consumers’
experiences, opinions, forecasts, needs, and
interests
 Looking-in

• There is an emerging field of consumer

research that works to interpret online
conversations. Converseon, a company that is
working in the field. With the growth in social
marketing, there are increasing conversations
and comments online regarding products and
brands. Marketers can use this information to
develop new products, introduce new
features, and to gain a better understanding of
their customers’ needs and wants.
 Other Methods :Physiological Measures

• Devices attached to the consumer to measure

– Arousal
– Eye movement
• Consumer feedback
– Lever pulled to positive or negative positions
– Squeeze on ball
 Technological Devices

• Galvanometers
• Tachistoscope
• Eye cameras
• Audiometers
• GPS
Technological Devices
Galvanometers (measure
interest or emotions aroused by
Exposure to a specific ad or picture)

Tachistoscope (flashes an ad to a
Subject with an exposure interval and
respondent describes everything he/she recalls)

Eye cameras (study respondents’

eye movement to see where their eyes
land 1st and how long, etc.)

Audiometers (record when TV is on

and the channel)

GPS (global positioning system, can

Determine how many billboards a person
may walk or drive by during a day)
 Other Methods :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!
 Other Methods: Consumer Panels

• Information obtained from research

participants who are contracted to provide
data on a specific consumption behaviors over
time
– Two types of panels:
• True panels: members provide repeated
measurements of the same variable or behavior over
time (e.g., TV viewership habits)
• Omnibus panels: members provide their views or
evaluations on a one-time basis of new products,
services, or ads
Designing Primary Research

Quantitative
Research
• Observation
• Experimentation
• Survey
questionnaires
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
 Data Collection Methods

• Observational Research: watching them buying and

using products helps gain an in-depth
understanding of the relationship between people
and products and a better understanding of what
products symbolize
• Personal, mechanical, or electronic (scanner data)
observation
• Pantry audits
 Data Collection Methods
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
 Data Collection Methods
Mechanical Observational Research
• Uses mechanical or electronic device to record
consumer behavior or response
• Consumers’ increased use of highly
convenient technologies will create more
records for marketers
• Audits are a type of mechanical observation
which monitor sales
 Consumer Research

Experimental research is best for gathering causal

information—cause-and-effect relationships
 Experimental Research.

– It gathers primary data by selecting matched

groups of subjects, giving them different
treatments, controlling related factors, and
checking for differences in group responses.
– It is best suited for gathering casual information.
 Experimental Research
The most scientifically valid. The purpose of experimental
research is to capture cause-and-effect relationships by
eliminating competing explanations of the observed findings.

• Experiments call for selecting matched groups of subjects,

subjecting them to different treatments, controlling
extraneous variables, and checking whether observed
response differences are statistically significant.
 Experimentation
• Real world relevance vs.
control (internal vs.
external validity)
• “Treatments” and
factorial designs
• Sample sizes and
inferences
 Data Collection Methods
Experimentation
• Can be used to test the relative sales appeal of
many types of variables
• An experiment is usually controlled with only
some variables manipulated at a time while
the others are constant
• Test markets are conducted on a single market
area
• Experimentation can be conducted in
laboratories or in the field
 Discussion Questions

• What might direct marketers test in

experiments?
• How can they use the results?
 Survey Research

Companies undertake surveys to learn about

people's knowledge, beliefs, preferences, and
satisfaction, and to measure these
magnitudes in the general population.
• Survey Research.
– It gathers primary data by asking people questions
about their knowledge, attitudes, preferences,
and buying behavior.
– It is the best suited for gathering descriptive
information.
– The major advantage of survey research is its
flexibility; it can be used to obtain many different
kinds of information in many different situations.
– Surveys addressing almost any marketing question
or decision can be conducted by phone or mail, in
 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
 Surveys
• Planned questions • Forms
– Open-ended – Mail
– Closed-ended – Telephone
• Sample size and – Mall Intercept
inferences – Computer/Internet
• Biases
– Wording
– Response
– Interviewer
 Surveys
ContactMethods

Personal Interview

Mail

Telephone

Online
 Contact Methods

Mail Questionnaire

Telephone
Interview

Personal
Interview

Online
Interview
 Contact Methods
Mail Questionnaire
(For people that would not give
personal interviews or whose responses
might be biased or distorted by interviewer)

Telephone Interview
(Gather information quickly, however
interview are short and non-personal)

Personal Interview
(Most versatile and expensive,
subject to interview bias or distortion)

Online Interview
(Inexpensive, faster, honest, versatile, samples small
and skewed, tech problems and inconsistencies)
 Contact Methods

Mail Questionnaires

• Mail questionnaires can be used to collect

large amounts of information at a low cost per
respondent.
• However, mail questionnaires are not very
flexible; all respondents answer the same
questions in a fixed order. Mail surveys usually
take longer to complete, and the response
rate—the number of people returning
completed questionnaires—is often very low.
 Contact Methods

Telephone Interviewing
• Telephone interviewing is one of the best methods
for gathering information quickly, and it provides
greater flexibility than mail questionnaires.
• However, with telephone interviewing, the cost per
respondent is higher than with mail or online
questionnaires.
• Also, people may not want to discuss personal
questions with an interviewer.
• The method introduces interviewer bias—the way
interviewers talk, how they ask questions, and
other differences that may affect respondents’
answers.
 Contact Methods
• Personal Interviewing
• Individual interviewing is flexible.
• Trained interviewers can guide interviews, explain difficult
questions, and explore issues as the situation requires.
• However, individual personal interviews may cost three to
four times as much as telephone interviews.
• Group interviewing consists of inviting six to ten people to meet
with a trained moderator to talk about a product, service, or
organization.
• Participants normally are paid a small sum for attending.
 Contact Methods

Online Marketing Research

• The growth of the Internet has had a dramatic impact
on how marketing research is conducted.
• Increasingly, researchers are collecting primary data
through online marketing research: Internet surveys,
online panels, experiments, and online focus groups
and brand communities.
• The Internet is especially well suited to quantitative
research—for example, conducting marketing surveys
and collecting data.
 Data Collection Methods
Mail Telephone Personal Online
Interview

Cost Low Moderate High Low

Speed Slow Immediate Slow Fast

Response rate Low Moderate High Self-selected

Geographic Excellent Good Difficult Excellent

flexibility

Interviewer bias N/A Moderate Problematic N/A

Interviewer N/A Easy Difficult N/A

Supervision
 Data Collection Instruments

Personal
Questionnaires
Inventories

Attitude Discussion
Scales Guides
Consumer research
Research Instruments
• Questionnaires
• Most common
• Administered in person, by phone, or online
• Flexible
• Open-end questions
• Closed-end questions
Consumer Research
Research Instruments
• Closed-end questions include all the possible answers,
and subjects are to make choices among them.
• Provides answers that are easier to interpret and tabulate
• Open-end questions allows respondents to answer in
their own words.
• Useful in exploratory research
 Question Types - Dichotomous

In arranging this trip, did you contact

American Airlines?
 Yes  No
 Question Types – Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group
 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.
 Attitude Scales.
• Likert scale: easy to prepare and interpret;
simple for consumers to answer
• Semantic differential scale: relatively easy to
construct and administer
• Behavior intention scale: also easy to construct
and administer
• Rank-order scale: subjects rank items in order
of preference or in terms of some criteria
 Attitude Scales
• Asked to agree or disagree with a statement
Likert scales • Easy to prepare & interpret
• Simple for consumers

Semantic • Includes bipolar adjectives

differential scales • Relatively easy to construct and administer

Behavior • Measures likelihood consumers will act a certain way

intention scales • Easy to construct and administer

• Items ranked in order of preference in terms of some

Rank-order scales criteria
 Question Types – Likert Scale
Indicate your level of agreement with the
following statement: Small airlines
generally give better service than large
ones.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree
 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
morning.
_____ f. Some Web sites really encourage you to browse.
_____ g. It’s easy to compare different makes and models one-line.
 Likert Scale.
Please place the number that best indicates how strongly you agree
or disagree with each of the following statements about shopping
online 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 online.
_____ c. It is a good way to find out about new products.
 Question Types –
Semantic Differential
American Airlines
Large
………………………………...…….Small
Experienced………………….….Inexperience
d
Modern……………………….…..Old-
fashioned
 Semantic Differential Profiles of Three
Pay-Per-Movie Services
Poor

4
Neutral

3 DVD

Digital
2 Cable
DIVX
Excellent

1
Availability

Clarity of
Number of

Access
Ease of
Cost

Picture
Titles
 Question Types –
Importance Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important
 Question Types – Rating Scale
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor
 Question Types –
Intention to Buy Scale
How likely are you to purchase tickets on
American Airlines if in-flight Internet
access were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy
 Question Types –
Intention to Buy Scale
How likely are you to purchase tickets on
American Airlines if in-flight Internet access
were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy
 Rank-Order Scale
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
 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 _____ 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
 Question Types –
Completely Unstructured
What is your opinion of American Airlines?
 Validity and Reliability
• A scale is valid if it collects the data it is
designed to collect.
• A scale is reliable if the same questions, asked
of a similar sample, produce the same
findings.
• Sampling plan:
– Whom to survey
– How many to survey
– How to select them
 Validity and Reliability

• If a study has validity, it collects the

appropriate data for the study.
• A study has reliability if the same questions,
asked of a similar sample, produce the same
findings.
Customer Satisfaction Measurement

• Customer
Satisfaction
Surveys
– Analysis of
Expectations
versus Experience
• Mystery Shoppers
• Customer
Complaint Analysis

148
 Sampling Plan Decisions

Whom to
survey?

How many?

How to
select them?
 Sampling and Data Collection

• Samples are a subset of the population used

to estimate characteristics of the entire
population.
• A sampling plan addresses:
– Whom to survey
– How many to survey
– How to select them
• Researcher must choose probability or
nonprobabililty sample.
Table 2.4 Probability and Nonprobability
Sampling Designs
PROBABILITY SAMPLES
Simple random Every member of the population has a
sample known and equal chance of being selected.
Systematic A member of the population is selected at
random sample random and then every “nth” person is
Stratified selected.
The population is divided into mutually
random sample exclusive groups (such as age groups),
and random samples are drawn from each
Cluster (area) group.
The population is divided into mutually
sample exclusive groups (such as blocks), and the
researcher draws a sample of the groups
to interview.
Table 2.4 continued

NONPROBABILITY SAMPLES
Convenience The researcher selects the most
sample accessible population members from
whom to obtain information (e.g., students
Judgment in
Thea classroom)
researcher uses his or her judgment to
sample 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).
 Common Sampling Techniques.
Probability:
- Simple random sample
- Systematic random sample
- Stratified random sample
- Cluster (area) sample
Non-probability:
- Convenience sample
- Judgment sample
- Quota sample
- Incremental sample
IK
 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
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.
• The responses from qualitative research are analyzed in
addition to the results of the quantitative research.
• For survey data, the open-ended responses are coded
so that they can be entered into a spreadsheet or
analysis software.
• Once all the data is entered, it is tabulated and then
analyzed.
• The final step of the research process is to put together
a report.
• In addition to the executive summary, body, tables, and
graphs, the research report might include strategic
recommendations based on the research findings.
 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.
• END