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download instant at www.easysemester.com CHAPTER 2 The Consumer Research Process LEARNING OBJECTIVES After studying this chapter students should be able to understand: 1. The importance of consumer research for firms and their brands, as well as consumers. 2. The steps in the consumer research process. 3. The importance of establishing specific research objectives as the first step in the design of a consumer research project. 4. The purposes and types of secondary consumer research that is available for making decisions or planning future consumer research. 5. Specific features and applications of different research methods to be carried out in consumer research studies. 6. Where data analysis and reporting of findings fit in the research process. 7. How each element of the consumer research process adds to the overall outcome of the research study. CHAPTER SUMMARY The field of consumer research developed in part as an extension of the applied field of marketing research and as part of the scholarly interests of academicians pursuing a more basis understanding of consumers. In both cases, the goals have been to enlarge the understanding of consumers. However, there are differences in motivation carrying out consumer research. Specifically, marketing practitioners have concentrated on the practical application of predicting how consumers will react in the marketplace, and to understand the reasons that drive consumers to make the purchase decisions they do. In contrast, academic consumer researchers tend to be more concerned with download instant at www.easysemester.com

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Page 1: CHAPTER 2easysemester.com/sample/Solution-Manual-for-Consumer... · Web viewWord associations. Sentence completions. Photo/visuals for storytelling. Role playing. *****Use Table #2.1

download instant at www.easysemester.comCHAPTER 2

The Consumer Research Process

LEARNING OBJECTIVES

After studying this chapter students should be able to understand:1. The importance of consumer research for firms and their brands, as well as consumers.2. The steps in the consumer research process.3. The importance of establishing specific research objectives as the first step in the design of a

consumer research project.4. The purposes and types of secondary consumer research that is available for making

decisions or planning future consumer research.5. Specific features and applications of different research methods to be carried out in consumer

research studies.6. Where data analysis and reporting of findings fit in the research process.7. How each element of the consumer research process adds to the overall outcome of the

research study.

CHAPTER SUMMARY

The field of consumer research developed in part as an extension of the applied field of marketing research and as part of the scholarly interests of academicians pursuing a more basis understanding of consumers. In both cases, the goals have been to enlarge the understanding of consumers. However, there are differences in motivation carrying out consumer research. Specifically, marketing practitioners have concentrated on the practical application of predicting how consumers will react in the marketplace, and to understand the reasons that drive consumers to make the purchase decisions they do. In contrast, academic consumer researchers tend to be more concerned with advancing the basic knowledge and principles that are associated with consumers’ behaviors.

Consumer research can also be divided in terms of a qualitative or quantitative perspective. In this chapter we have considered both, because in reality there is a great amount of both qualitative and quantitative consumer research being conducted by both practitioners and academic consumer researchers.

This chapter was guided by the consumer research process (set out in Figure 2.2 )—whether quantitative or qualitative in approach—it consisted of six steps: defining objectives, collecting secondary data, developing a research design, collecting primary data, analyzing the data, and preparing a report of

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download instant at www.easysemester.comthe findings. The research objectives should be formulated jointly by the marketer and the person or company that will conduct the actual research. Findings from secondary data and exploratory research are used to refine the research objectives. The collection of secondary data includes both internal and external sources. Qualitative research design stressed the use of focus groups and depth interviews. A variety of different tools in preparing for qualitative research, including screener questionnaires and discussion guides, were described and illustrated. So were various specialized qualitative methodologies—most notably, metaphor analysis, in particular the Zaltman Metaphor Elicitation Techniques (ZMET), and the looking-in method, one of a series of methodologies for obtaining valuable research from readily available online investigations. Alternatively, quantitative research designs consist of observation, experimentation, or surveys, and, for the most part, questionnaires (that often include attitude scales) are used to collect the data. Again, we illustrated the application of quantitative consumer studies. In particular, we considered the selection and design of the sample, and why it is crucial (since the type of sample used determines the degree to which the results of the study are representative of the population). Following the data collection, the results are analyzed and specific analytic techniques applied respectively to qualitative or quantitative data. Consumer researchers must also observe specific ethical guidelines to ensure the integrity of their studies and the privacy of respondents.

CHAPTER OUTLINE

INTRODUCTION

1. The preparation, use, and wide scale availability of large amounts of consumer research is a critical force in advancing the discipline of consumer behavior.

2. The discipline is dedicated to building a body of knowledge and understanding as to what makes consumer tick, and how marketers can better satisfy consumers’ needs and wants.

3. Consumer carry-out many different kinds of consumer research projects such as depth interviews, focus groups, telephone surveys or mall intercepts.

4. Research is used to develop marketing messages or to establish which product features are most important to consumers.

5. This chapter is dedicated to setting out the methodological research issues for planning and carrying out consumer research studies.

*****Use Figure #1 Here *****

IMPERATIVE TO CONDUCT CONSUMER RESEARCH

1. The field of consumer research, in part, has developed as an extension of the field of marketing research.

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download instant at www.easysemester.com2. It has been impacted y the academicians and research practitioners of psychology, sociology,

and anthropology.3. Studying consumer behavior enables marketers to predict or anticipate how marketers might

meet consumer needs through products and messages.4. There is in increasing challenge of knowing and satisfying needs as companies become more

global.

*****Use Learning Objective #2.1 Here*****

AN OVERVIEW OF THE CONSUMER RESEARCH PROCESS

1. This chapter examines the major steps in the consumer research process. 2. Explored will be:

a) Secondary information.b) Primary research.c) Qualitative research.d) Quantitative research .

3. The discussion of the research process is organized into six steps:a) Defining the objectives of the research.b) Collecting and evaluating secondary data.c) Designing a primary research study.d) Collecting primary data.e) Analyzing the data.f) Preparing a report of the findings.

*****Use Figure #2.2 Here*****

DEVELOPING RESEARCH OBJECTIVES

1. The first and most difficult step in the consumer research process is to accurately define the objectives of the research.

2. A carefully thought-out statement of research objectives helps to insure that the information needed is secured and costly errors avoided.

3. Often before a quantitative study is conducted, researcher conduct a small-scale exploratory study.

*****Use Learning Objective #2.3 Here; Using Key Term exploratory study Here*****

COLLECTING SECONDARY DATA

1. The second step in the consumer research process is to search for secondary data. 2. Secondary data is already existing information that was originally gathered for a research

purpose other than the present research.

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download instant at www.easysemester.com3. In secondary data can in part or full answer the question, either new primary research can be

cut back or even avoided.

*****Use Learning Objective #2.4 Here; Use Key Term secondary data Here*****

Internal Secondary Data

1. Internal secondary could consist of previously collected in-house information that was originally used for some other purpose.

2. Increasingly, companies use internal secondary data to compute customer lifetime value profiles. a) These profiles include customer acquisition costs, the profits generated from individual

sales to each customer, the costs of handling customers and their orders, and the expected duration of the relationship.

*****Use Key Term customer lifetime value profiles Here*****

External Secondary Data

1. This type of secondary data comes from sources outside of the firm or organization.2. This data can take many different forms.3. Following is a brief discussion of some specific types of consumer behavior secondary

information available from outside of the firm:a) Public and Government Secondary Data.

i) This data is generally made available for a nominal cost.ii) The federal government publishes information collected by scores of government

agencies about the economy, business, and demographics of the U.S. population.iii) State and local government also provide consumer research.

b) Periodicals and Articles Available from Online Search Services.i) Business-relevant secondary data from periodicals, newspapers, and books are readily

accessible via a variety of online search engines such as ProQuest and LexisNexis.c) Syndicated Commercial Marketing and Media Research Services.

i) Marketing research companies sell data to subscribing marketers. ii) Secondary data is also provided 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 decision.

iii) New technologies provide opportunities for far more sophisticated monitoring techniques.

iv) Some companies are seeking out technology that might provide an advancement or possible breakthrough in terms of portable metering devices.

v) Monitoring the media exposure of almost all consumers via digital cable set-top boxes is a new technology.

vi) The digital boxes can easily record all the programs that consumers are turned into including channel surfing, attempts at avoiding commercial breaks, and recordings for later viewing.

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download instant at www.easysemester.comvii)The influence of new technologies will increasingly enable marketers to study

consumers’ media exposure much more precisely and collect data that will allow them to better customize or narrowcast their promotional messages, thus spending their advertising dollars more effectively.

d) Third Party Panels.i) For many years, marketers have purchased data from secondary data providers who

collected consumer behavior data from household or family consumer panels. ii) Members of these panels 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.

iii) Today, online technology enables panel research companies to increasingly collect sophisticated data from respondents.

iv) Obtaining secondary data before engaging in primary research offers the advantages of providing a solution to the research problem and eliminating the need for primary research altogether.

v) Secondary research has some limitations.

*****Use Discussion Question #3 Here; Use Key Term consumer panels Here*****

DESIGNING PRIMARY RESEARCH

1. If the purpose of research is to get new ideas, then a qualitative study is often undertaken.2. If descriptive and quantitative information is sought, then some form of quantitative study is

usually performed.3. The approach for each differs in terms of methods of data collection, sample design, and type

of data collection instruments.

*****Use Exercise # 1 Here; Use Discussion Question #2 Here; Use Learning Objective # 2.5 Here*****

Designing and Conducting Qualitative Research

1. Current qualitative research grew out of the rejection of the belief that consumer marketing was simply applied economics, that consumers were rational decision makers.

2. Those rejecting this view included member of an early school of qualitative consumer researchers known as motivational researchers.

3. The central tenant of this orientation was that consumers were not always consciously aware of why they made decisions or weren’t willing to reveal the reasons to themselves or others.

4. Dr. Ernest Dichter was an early leader of this movement. 5. Most forms of qualitative research questioning have their roots in open-ended and free-

response types of questioning.6. The key types of interviews conducted for qualitative studies are depth interviews and/or

focus group sessions.a) Depth Interviews.

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download instant at www.easysemester.comi) A depth interview, also referred to as a “one-on-one” interview is a somewhat

lengthy nonstructured interview between a single respondent and a highly trained researcher.

ii) The interviewer speaks little, giving the consumer time to express thoughts and behaviors and to respond to verbal and visual materials.

iii) The research must establish an atmosphere to encourage the consumer to open up. iv) The researcher probes for responses.v) Depth interview studies provide marketers with ideas about product design or

redesign, and provide insights for positioning or repositioning products.

*****Use Key Terms motivational researchers and depth interviews Here*****

b) Focus groups.i) A “discussion group” or focus group often consists of 8 to 10 participants who meet

with a moderator-researcher-analyst to explore a particular product or product category.

ii) Participants are encouraged to discuss their reactions to product and service concepts, or new advertising or marketing communications campaigns.

iii) Respondents are recruited on the basis of a carefully drawn consumer profile that is prepared in the form of a questionnaire called a screener questionnaire.

iv) The purpose of the “screener” is to ensure that the appropriate individuals are invited to participate in the research study, and those who are not the target market are not invited.

v) Some marketers prefer focus groups because they feel that the dynamic interaction between participants that takes place in focus groups tends to yield a greater number of new ideas and insights than depth interview.

vi) It takes less time to complete a series of focus groups than a project of individual depth interviews.

*****Use Discussion Question #5 Here; Use Key Terms focus groups and screener questionnaire Here; Use Figure #2.4 Here*****

c) Discussion Guides.i) A discussion guide is a 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 the case of a focus group session.

ii) Some moderators prefer to closely follow the guide while others “go with the flow.”iii) Some researchers will finish with often more information that anticipated.

*****Use Exercise #2 Here; Use Figure #2.5 Here*****

d) Projective Techniques.i) Projective techniques are a useful tool, adapted for studying the unconscious

associations of consumers who may be concealing or suppressing some of their thoughts or reactions.

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download instant at www.easysemester.comii) Projective exercises consist of a variety of disguised “tests.”iii) Some of the well established exercise used to “tease-out” true consumer-related

feelings and reflections are:(1) Word associations.(2) Sentence completions.(3) Photo/visuals for storytelling.(4) Role playing.

*****Use Table #2.1 Here; Use Key Term projective techniques Here*****

e) Metaphor Analysis.i) The use of one form of expression to describe or represent feelings about another is

called a metaphor.ii) A number of consumer theorists have come to believe that people use metaphors as

the most basic method of thought and communication. iii) The Zaltman Metaphor Elicitation Technique (ZMET) – the first patented

marketing research tool in the United states-relies on images to assess consumer’s deep and subconscious thoughts about products, services, and marketing strategies.

***** Use Key Term Zaltman Metaphor Elicitation Technique (ZMET) Here*****

f) The Growing Presence of Online Focus Groupsi) Over the past 5 to 10 years, there has been a substantial amount of interest in, trial of,

and acceptance of online focus groups and depth interviews. ii) What is being called an “online focus group,” can vary greatly.

g) Looking-In’ (Online) Research.i) A recently proposed approach to qualitative research called looking-in, describes and

illustrates the uses of a methodology designed to capture consumers’ experiences, opinions, forecasts, and most important, these involved consumers’ “wish list” of sought-out features that they are hoping will be included in new models of products.

ii) To conduct looking-in research, researchers perform a key phrase search of the stored threads and related internet postings.

***** Use Key Term looking-in Here*****

Designing And Conducting Quantitative Research

1. The broad category of quantitative research includes experimentation, survey techniques and observation.

2. The findings are descriptive, empirical, and, if collected randomly, can be generalized to larger populations.a) Observational research is an important research tool because marketers recognize that

often the best way to gain an in-depth understanding of the relationship between people and products is by watching them in the process of buying and/or using the products.

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download instant at www.easysemester.comi) Observing consumers in action enables researcher to comprehend what the product

symbolizes to a consumer and provides greater insight into the bond between people and products that is the essence of brand loyalty.

ii) It is also important in uncovering issues or problems with a product. iii) Consumers are generally either watched by researchers or mechanical or electronic

devices such as counting or video recording devices are used to capture customers’ behaviors or responses to a particular marketing stimulus.

iv) Marketers also use physiological observation devices that monitor respondents’ patterns of information processing.

*****Use Discussion Question #7 Here; Use Key Terms observational research and physiological observation Here*****

b) Experimentation.i) There are a variety of different experimental designs that a researcher needs to select

from in formulating a particular consumer-related experiment. ii) In the simplest form of experiments (causal research), only one variable is

manipulated (called the independent variable) while all other elements are kept constant.

iii) A controlled experiment of this type ensures that any difference in the outcome (the dependent variable) is due to different treatments of the variable under study and not to extraneous factors.

iv) A major application of causal research is test marketing, a logical next step after conducting depth interviews, focus groups, and survey research and prior to committing to a full-scale marketing rollout.

***** Use Key Terms controlled experiment and test marketing Here*****

c) Survey Research.i) Following is a list of types of survey research. Table 2.2 lists advantages and

disadvantages of each.(1) Personal interview.(2) Telephone interview.(3) Mail surveys.(4) E-mail surveys.

(a) There has been a rapid increase in the number of consumers who are interested in participating in online or Internet-based surveys.

*****Use Discussion Question #4 Here; Use Table #2.2 Here; Use Key Terms personal interviews, telephone interviews, mail survey, e-mail surveys Here*****

Quantitative Research Data Collection Instruments

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download instant at www.easysemester.com1. Data collection instruments are developed as part of a study’s total research design to

systematize the collection of data and to ensure that all respondents are asked the same questions in the same order.

2. Data collection instruments include questionnaires, personal inventories, and attitude scales. 3. A study is said to have validity if it does, in fact, collect the appropriate data needed to

answer the questions or objectives stated in the first stage of the research process.4. A study is said to have reliability if the same questions, asked of a similar sample, produce

the same findings.

***** Use Key Terms validity and reliability Here*****

a) Questionnaires are the primary data collection instrument for q research. i) The questionnaire can be sent through the mail or online to selected respondents for

self-administration or can be administered by field interviewers in person or by telephone.

ii) The questionnaire can be disguised or undisguised as to its true purpose.iii) Questions can be open-ended or closed-ended.iv) Wording the questions represents the biggest challenge in constructing

questionnaires.v) One form of consumer survey is a magazine readership survey.

(1) A standard use of data secured from this type of survey is preparation of a profile of a publication’s readers so that potential advertisers can determine whether the publication delivers the audience that is most likely to positively respond to their advertising.

*****Use Discussion Question #1 Here; Use Figure # 2.6 Here; Use Key Terms magazine readership survey Here*****

b) Attitude scales are often used to capture evaluative data.i) Researchers often present respondents with a list of products or product attributes for

which they are asked to indicate their relative feelings or evaluations. ii) The most frequently used attitude scales are Likert scales, semantic differential

scales, behavior intention scales, and rank-order scales. (1) The Likert scale is the most popular form of attitude scale because it is easy for

researchers to prepare and interpret, and simple for consumers to answer. (a) The scale consists of an equal number of agreement/disagreement choices on

either side of a neutral choice.(2) The semantic differential scale consists of a series of bipolar adjectives anchored

at the ends of an odd-numbered continuum.(a) Respondents are asked to evaluate a concept on the basis of each attribute by

checking the point on the continuum that best reflects their feelings or beliefs. (3) The behavior intention scale measures the likelihood that consumers will act in a

certain way in the future.(4) With rank-order scales, subjects are asked to rank items such as products in

order of preference in terms of some criterion.

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download instant at www.easysemester.com*****Use Exercise #3 and #4 Here; Use Figure # 2.7 Here; Use Key Terms Attitude scales, Likert Scale, Semantic Differential scale, behavior intention scale, and rank-order scales Here*****

c) Customer Satisfaction Measurement includes quantitative and qualitative measures as well as a variety of contact methods with customers. i) Customer satisfaction surveys measure how satisfied the customers are with

relevant attributes of the product or service, and the relative importance of these attributes.

ii) Mystery shoppers are professional observers who pose as customers in order to interact with and provide unbiased evaluations of the company’s service personnel in order to identify opportunities for improving productivity and efficiency.

iii) Analyzing customer complaints is crucial for improving products and customer service.

iv) A good complaint analysis system should encourage customers to: complain about an unsatisfactory product or service, provide suggestions for improvements by completing forms asking specific questions beyond the routine, and establish “listening posts” such as hotlines where specially designated employees either listen to customers’ comments or actively solicit input from them.

***** Use Key Terms customer satisfaction measurement, customer satisfaction surveys, mystery shoppers, and complaint analysis Here*****

d) Sampling and Data Collectioni) It is almost always impossible to obtain information from every member of the

population or universe so researchers use samples. ii) A sample is a subset of the population that is used to estimate the characteristics of

the entire population.iii) The sample must be representative of the universe under study. iv) An integral component of a research design is the sampling plan.v) The sampling plan addresses three questions: whom to survey, how many to survey

and how to select them. vi) There are two types of samples.

(1) In a probability sample, respondents are selected in such a way that every member of the population studies has a known, nonzero chance of being selected.

(2) Ina a nonprobability sample, the population under study has been predetermined in a nonrandom fashion on the basis of the researcher’s judgment or decision to select a given number of respondents from a particular group.

*****Use Discussion Question #6 Here; Use Table #2.5 Here; Use Key Terms sample, probability sample and nonprobability sample Here*****

Combining Qualitative and Quantitative Research Findings

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download instant at www.easysemester.com1. Some marketers use a combination of quantitative and qualitative research.2. They use qualitative research findings to discover new ideas and to develop promotional

strategy, and quantitative research findings to estimate the extent or amount of consumers who react in a particular way.

3. Sometimes ideas stemming from qualitative research are tested empirically through quantitative studies.

*****Use Table #2.5 Here*****

DATA ANALYSIS AND REPORTING RESEARCH FINDINGS

1. In qualitative research, the moderator-researcher usually analyzes the responses received.2. In quantitative research he researcher supervises the analysis.3. In both qualitative and quantitative research, the research report includes a brief executive

summary of the findings. 4. The report may or may not include recommendations for marketing action.

*****Use Learning Objective #2.6 Here*****

CONDUCTING A RESEARCH STUDY

1. In designing a research study, researchers adapt the research process to the special needs of the study.

*****Use Learning Objective #2.7 Here*****

DISCUSSION QUESTIONS

1. Have you ever been selected as a respondent in a marketing research survey? If yes, how were you contacted and where were you interviewed? Why do you think you, in particular, were selected? Did you know or could you guess the purpose of the survey? Do you know the name of the company or brand involved in the survey?

This is an excellent way to introduce the topic of consumer research to the class. Students are likely to describe instances where they were stopped at malls, called on the phone, received mail questionnaires, and filled out surveys done by their universities. The instructor should inquire whether the students/respondents were “screened” before the beginning of the actual interviews, and use the students’ descriptions to illustrate the sampling designs described in the text.

2. What is the difference between primary and secondary research? Under what circumstances might the availability of secondary data make primary research unnecessary? What are some major sources of secondary data?

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download instant at www.easysemester.com Secondary information is any data originally generated for some purpose other than the

present research objectives. It includes findings based on research done by outside organizations, data generated in-house for earlier studies, and even customer information collected by the firm’s sales or credit departments. Locating secondary information is called secondary research. Such data sometimes provides sufficient insight into the problem at hand to eliminate the need for primary research. Most often, it provides clues and direction for the design of primary research.

Primary research is original research performed by individual researchers or organizations to meet specific objectives. If detailed information on purchasing patterns or product usage is needed or if psychological or sociocultural consumer information is sought, then primary data must be collected. Research to secure such information is more costly and more time consuming than secondary research but is likely to yield a more accurate picture than studies based on secondary data alone.

3. What are the advantages and limitations of secondary data?

Obtaining secondary data before engaging in primary research offers several advantages. First, secondary data may provide a solution to the research problem and eliminate the need for primary research altogether. Secondary research may help to clarify and redefine the objectives of the primary study and provide ideas for the methods to be used and the difficulties that are likely to occur during the full-scale study.

Although secondary information can be obtained more cheaply and quickly than primary data, it has some limitations. First, information may be categorized in units that are different from those that the researcher seeks. Some secondary data may not be accurate because of errors in gathering or analyzing the data for the original study or because the data was collected in a biased fashion in order to support a particular point of view. Also, care must be taken not to use secondary data that may be outdated.

4. A manufacturer of a new product for whitening teeth would like to investigate the effects of package design and label information on consumers’ perceptions of the product and their intentions to buy it. Would you advise the manufacturer to use observational research, experimentation, or a survey? Explain your choice.

Students will be able to make a case for any of the three choices (with a little creativity). Whichever choice is made, students should justify the chosen alternative. To summarize each of the quantitative research designs, see the following brief summary (for more detail see section in the chapter): Observation research—one of the best ways to gain in-depth understanding of the

relationship between people and products by watching them in the process of buying and using products. Mechanical observation is also possible.

Experimentation—it is possible to test the relative sales appeal of many types of variables such as package designs, prices, promotional offers, or copy themes through experiments designed to identify cause and effect. In such experiments, only some

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download instant at www.easysemester.comvariables are manipulated, while all other elements are kept constant. Major methods are test marketing and virtual reality methods.

Survey research—asking consumers about their purchase preferences and consumption experiences. This can be done in person, by mail, by telephone, or online. (See Table 2-2 for advantages and disadvantages of the various survey formats.)

5. Why might a researcher prefer to use focus groups rather than depth interviews? When might depth interviews be preferable?

Focus groups consist of eight to ten respondents who meet with a moderator/analyst for a group discussion. Respondents are encouraged to discuss their interests, attitudes, reactions, motives, lifestyles, feelings about the product, usage experience, etc. A researcher can easily conduct two or three focus groups in one day. Some marketers prefer focus groups because it takes them less time overall to complete the study, and the group concept yields a greater number of new ideas and insights. (See Figure 2-4 for additional information on focus groups.)

A depth interview is a lengthy, nonstructured interview between a respondent and a highly trained interviewer. Respondents are encouraged to talk freely about their activities, attitudes, and interests, in addition to the product category or brand under study. Some marketers prefer the individual depth interview because they feel that respondents are free of group pressure, are less likely to give socially acceptable responses, are more likely to remain attentive, and reveal private thoughts.

6. How would the interpretation of survey results change if the researcher used a probability sample rather than a nonprobability sample? Explain your answer.

Table 2-4 summarizes the features of various types of probability and nonprobability designs. In general, however, if the researcher wants the findings to be projectable to the total population, then a probability sample should be chosen. If it is sufficient to have the findings “representative” of the population, then a nonprobability sample can be selected.

7. Why is observation becoming a more important component of consumer research? Describe two new technologies that can be used to observe consumption behavior and explain why they are better to use than questioning consumers about the behavior being observed.

Observational research is an important method of consumer research because marketers recognize that the best way to gain an in-depth understanding of the relationship between people and products is by watching them in the process of buying and using products.

Observation of consumer behavior via electronic means has grown significantly. Students can choose to describe a number of different technologies. Observational research is very powerful because it enables researchers to comprehend what the product symbolizes to a consumer and provides greater insight into the bond between people and products that is the essence of brand loyalty.

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EXERCISES

1. Neutrogena is a manufacturer of personal care products for young adults. The company would like to extend its facial cleansers product line. Design a (a) qualitative and (b) quantitative research design for the company focused on this objective.

Instructor’s Discussion

A good place to begin this assignment is to have students briefly review exactly what qualitative and quantitative research designs are. Notice that, in addition to material found in the chapter, students can refer to Discussion Question #2 for insight and review.

Even though students can be basically familiar with what quantitative and qualitative research designs are, they may not be prepared (especially at this point in the course or if they have no prior experience with marketing research) to design an instrument. Try limiting the research experience (to begin with) to attitude scales shown in Figure 2-7. If students will read each of the six forms, they should be able to use one of the scales to begin their research experience. Once this is accomplished, springboard to other venues from this basic research effort. Small groups work well in this area.

2. Based on the discussion of focus groups and depth interviews, as well as the discussion guide presented in Figure 2.5, develop a discussion guide for studying college students’ reactions to their brand and model of cell phone.

Instructor’s Discussion

Before beginning this exercise, have students reread the section in the chapter on focus groups and depth interviews. From this review, students will understand the material found in Figure 2-5. Next, ask the students to list categories of questions most important to their use and reaction to their brand of cell phone. From these categories ask the students to drill down, creating specific questions pertinent to each category. .

3. Using one of the customer satisfaction measures in Figure 2.7, construct an instrument to assess your fellow students’ satisfaction with the technological support services provided by your university.

Instructor’s Discussion

Students will need to consider whether qualitative or quantitative research (or a combination of both) is most appropriate. Once this decision is made, they should be guided to use skills of science and creativity in designing an appropriate instrument. Students may not have considered the use of mystery shopping as a measurement for this example but it might be very appropriate. The supervisor of the technology department should be approached first

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download instant at www.easysemester.combefore a task like this is undertaken. With approval, the students and the technology department may gain valuable insight.

4. Using the scales in Figure 2.7, develop a questionnaire to measure students’ attitudes toward the instructor in this course.

(a) Prepare five statements measuring students’ attitudes via a Likert scale. (b) Prepare five semantic differential scales to measure student attitudes. Can the same dimensions be measured by using either scaling technique? Explain your answer.

Instructor’s Discussion

A Likert scale and a semantic differential scale are shown in Figure 2-7. Clearly, the same dimensions can be measured by using either scaling method. The instructor may use the actual student evaluation form used by the university to illustrate how Likert scales and semantic differential scales can be used interchangeably.

A useful extension of this exercise is to have students pick the best three examples from the class (no matter which scale is used) and actually administer the examples to the class. Be forewarned that sometimes answers can be rather pointed and personal. Follow the actual questioning process with a debriefing of the students to enhance their learning experience. The instructor may ask students which factors have influenced their own responses to student evaluations of instructors which they filled out in the past and which influenced responses on the three administered in this class. For example, how is one’s response related to getting back an exam grade on the same day the evaluations are administered? Is the response tempered by knowing that it will be made public?

S.T.A.R. PROJECTS

Ethical Issues in Consumer Behavior

S.T.A.R. Project #1Acme Steel has employed you as a statistical analyst for almost ten years. In your job, you tracked steel prices, created customer profiles, maintained data on contract negotiations, provided data necessary for labor negotiations, researched information on new markets and joint ventures, and developed a unique system for cataloging competitors’ strengths and weaknesses. Your skill in obtaining primary and secondary research is not only known in Acme but in the steel industry as a whole. The U.S. steel industry, however, is not doing well in the highly competitive global marketplace. A German steel firm is expanding into the United States and is currently negotiating to buy Bethlehem Steel. A recruiting firm has contacted you with a very attractive offer—the German firm wants you. Simply put, you could double your salary, receive a secure retirement and stock option package, and have a substantial position with a global industry leader that has not had a layoff in ten years. The offer sounds very attractive when you

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download instant at www.easysemester.comconsider the situation at your own company and in the U.S. market in general. There is one catch, however. You must be willing to bring all your knowledge of Acme and its processes to your new firm. Though bringing actual data would be irresponsible, probably illegal, and very difficult, your new firm does expect you to bring your models, ability to analyze data, and knowledge of Acme customers, labor situations, and company weaknesses with you. Acme would most certainly ask you to sign a nondisclosure document, however, this would be difficult if not impossible to enforce. How should you meet your opportunity? a. Considering the descriptions in the first part of this story, what type of information would you feel comfortable in taking with you to the new firm? Explain. b. From an ethics standpoint, how can companies control or be secure with employees that are in a position to gather and obtain information such as that described in the story? c. How do you feel about the dilemma created in this story? Comment.

Instructor’s Discussion

There is nothing easy about the dilemma posed in this exercise. Students should see the opportunity and security that the new position might bring. Students should, however, also see the responsibility that is owed to the company that has been the source of livelihood for several years. A good direction to go to with respect to giving guidance on the thorny path that lies ahead is to have students review the American Marketing Association’s Web site at www.ama.org (an alternative Web site is www.marketingpower.com) where marketing research ethics and general ethics in marketing are explored.

Have a lively discussion with the class on the responsibility of those that collect information and how those individuals must be ever vigilant in their responsibility.

Small Group Projects

S.T.A.R. Project #3As announced by Sprint, its PCS Vision is “clearly a whole new way to look at wireless.” PCS Vision gives the cell phone user the ability to access messaging, visual pictures, the Web, and games all from the convenience of their cell phone. Full-color digital images seem to be the real strength of this service. Similar services have been available in Japan for a year or more; however, Sprint is considered to be the initiator in the U. S. market. Sprint believes that its PCS Vision service gives customers the freedom to share information that is unmatched in contemporary wireless communication. a. Divide the class into research and consumer groups. Within the research groups, each group is to assume the roll of a focus group organization whose task it is to gather information from cell phone users (the consumer groups). Ideally, each research group should have three to five students and be paired with a consumer group of five to seven students. The research groups should read the section on “focus groups” to prepare for their assignment. The consumer group should go to www.sprint.com and review material about PCS Vision. Each focus group interview should last approximately 30 minutes.

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download instant at www.easysemester.com b. The research groups should prepare short questions that would review cell phone use, impressions of the PCS Vision service, likes and dislikes of existing services, and other questions that might enable PCS Vision to woo consumers from competing services. c. Once completed, each type of group should prepare a short report outlining what was learned about consumer behavior and focus groups.

Instructor’s Discussion

Be sure each student group follows its assigned task as either a research organization or consumer group. Familiarization with the material in the chapter on focus groups and visitation of the Sprint Web site is essential. Other directions or adjustments are at the discretion of the instructor and can be modified to fit time parameters. Students will find the Sprint Web site to be user-friendly and informative about the PCS Vision service. This project is a good quick introduction to the focus group experience.

Using the Internet to Study Consumer Behavior

S.T.A.R. Project #4In the spring of 2003, Mattel launched its ello Creation System for young girls. The theme for this new category of toys is “create whatever you can imagine!” This is rather a broad statement. However, Mattel believes its ello Creation System will give young girls the ability to create anything from funky characters, room accessories, jewelry, houses, and much more. The purpose of the system is to spark female imagination and creativity. The system, according to Mattel, is designed to be open-ended and creative to match the ways little girls play. In other words, girls can build it, change it, and rearrange it using the ello Creation System. Sound like fun? Investigate and see. a. Using the Mattel Web site (www.mattel.com), investigate the ello Creation System. Using information described in the chapter, propose a qualitative and a quantitative approach for researching the consumer for which this system is designed. How could your information (once it was obtained) help Mattel in marketing the system? b. Assuming that the ello Creation System was sold to young girls, propose a method of determining customer satisfaction using one of the methods outlined in the chapter.

Instructor’s Discussion

The students will find the ello Creation System to be highly creative and innovative. Mattel, better known for its Barbie and Hot Wheels lines, is spending big money to ensure the success of this new line. Industry sources say that the ello Creation System is an alternative to video games (popular with most boys in this age range). Will the system be intriguing and stimulate purchase? Students should be able to gain insight as to the answer to this question by accomplishing the tasks outlined by the project. Save time to present the most creative results to the class as a whole. Finish the discussion by asking students to think about how the original testing of this line might have been done. If the instructor contacts Mattel, the response is often very informative with respect to this issue.

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S.T.A.R. Project #5Consumer researchers DeeDee Gordon and Sharon Lee are the founders of one of the hottest research companies in today’s marketplace. Look-Look has found a way to tap into the wildly creative universe of teens. Few contemporary companies have done as well as Look-Look in exploring this dynamic and rapidly changing market. Look-Look combines research savvy with creative Web and real-time investigations to produce some of the most timely information available today on this highly profitable market segment. Look-Look gives its target research market a 24/7 look by giving a voice to the youth culture through online respondents, field reporters (armed with digital cameras), and trend spotters (this group examines every small youth trend as it develops). Currently, there are over 10,000 young people who communicate with Look-Look (and their clients) about what is going on in the teen world. The teen world is huge! Look-Look is betting that it will see this world as it is happening and changing—and so will its clients. a. First, familiarize yourself with the Look-Look method by investigating the company’s Web site at www.look-look.com. What topics are covered by Look-Look as it explores the teen world? How might a researcher use this information to make predictions? b. Go to the Respondents section of the Look-Look Web site and participate in the Look- Look research experience. Critique this experience. c. Evaluate the “living research” offered by this company in light of what you have learned in the chapter about consumer and market research.

Instructor’s Discussion

Students will really enjoy the Look-Look Web site. It is highly informative. The topics covered by Look-Look research are fashion, entertainment, technology, activities, eating and drinking, health and beauty, mindset, city guide, and the Lookout. Many of these items (the results of research done by the company) can be viewed in the classroom via the Web site. The company makes its money by charging clients for the “real information” separately. The client fee is high ($50,000 and up) but most clients agree that the information is well worth the cost. Look-Look reporters go where the average researcher cannot—teen clubs, locker and restrooms, mall hangouts, riding in cars, changing booths in clothing stores, and street corners where it is happening. Armed with digital cameras, the reporters record images (sent in their original forms to Look-Look), language, thoughts, likes and dislikes, and other preferences on a daily basis. The reporters are highly creative. Imagine the power of being able to know today that a new hair style or tattoo is hot and being able to deliver that information to an advertiser in the same day. That is the power of Look-Look. Take a look; you will enjoy the experience.

CASE COMMENTS

Case One: Using Secondary Data in Targeting Consumers

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download instant at www.easysemester.com1. This is a practical exercise designed to illustrate how different magazines are used to

target consumers.

2. It is impractical and unnecessary for marketers to develop their own databases of magazines’ audience characteristics. MRI’s data on magazines’ readers’ profiles can be used in class as an example of high quality, well-organized, and user-friendly secondary, syndicated data. The class discussion of this question should focus on the advantages and limitations of using secondary data that are discussed within the chapter.

Case Two: Please Talk to Me

Based upon what is contained in chapter 2, students might suggest conducting surveys, focus groups, and/or depth interviews among both existing Dell customers and buyers of other brands of PCs. Not only would it be important for Dell to explore why their customers selected a Dell product, it would also be important for Dell to learn why other consumers opted for a different brand.

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