consumer behavior - chapter 2
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CONSUMER BEHAVIOR
CHAPTER:2 CONSUMER
RESEARCH
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Consumer research is the extension of the field of marketing research.
Marketing Research: It is the systematic and objective identification, collection,
analysis, dissemination and use of information for the purpose of improving decision
making related to the identification and solution of problems and opportunities in
marketing.
Positivism: A consumer behavior research approach that regards the consumer
behavior discipline as an applied marketing science. (Quantitative)
Interpretivism: A postmodernist approach to the study of consumer behavior that
focuses on the act of consuming rather than on the act of buying. (Qualitative)
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Comparisons between Positivism and Interpretivism:
PURPOSE
METHODOLOGY
ASSUMPTIONS
PositivismPositivism
Prediction of consumer actions
PositivismPositivism
Prediction of consumer actionsInterpretivismInterpretivism
Understanding consumption practices
InterpretivismInterpretivism
Understanding consumption practices
PositivismPositivism
Quantitative
PositivismPositivism
QuantitativeInterpretivismInterpretivism
Qualitative
InterpretivismInterpretivism
Qualitative
PositivismPositivism
• Rationality; consumers make decisions
after weighing alternatives• The causes and effects of behavior can
be identified• Individuals are problem solvers• A single reality exists
• Events can be objectively measured
InterpretivismInterpretivism
• No single, objective truth• Reality is subjective• Cause and effect cannot be isolated
• Each consumption experience is unique• Researcher/respondent interactions
affect research findings
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THE MARKETING/CONSUMER RESEARCH PROCESS:
1.Problem Definition
2.Development of an approach to the problem
3.Research design formulation
4.Field work or Data collection
5.Data preparation and analysis
6.Report preparation and presentation
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Classification of Marketing Research:
• Problem Identification Research – Research that is undertaken to identify the
problems that are not necessarily apparent on the surface and yet exist or are likely to arise
in the future. Example: Market Potential Research, Market Share Research, Image
Research etc,.
• Problem-Solving Research – Research undertaken to help solve specific marketing
problems. Example: Segmentation Research, Product Research, Pricing Research etc,.
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The Consumer Research Process
Develop Objectives
Collect Secondary Data
Design Qualitative Research
•Method
•Screener questionnaire
•Discussion guide
Design Quantitative Research
• Method
• Sample design
• Data collection instrument
Conduct Research
(Using highly trained
interviewers)
Analyze Data (Subjective)
Prepare Report
Collect Primary Data
(Usually by field staff)
Analyze Data (Objective)
Prepare Report
Exploratory
Study
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Problem Definition:A broad statement of the general problem and identification of the specific components of
the marketing research problem.
How is problem defined:
1.Discussion with decision maker
2.Interviews with experts
3.Secondary data analysis
4.Qualitative Research
Environmental Context of the problem
Problem Definition:
1.Management Decision Problem (Should a new product be introduced?)2. Marketing Research Problem (To determine consumer preferences and purchaseintentions for the proposed new product.)
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Defining Marketing Research ProblemBroad Statement
To determine the relative strengths and weaknesses of Central, vis-à-vis other major competitors, with respect to factors that influence store patronage.
Specific Components
1. What criteria do customers use when selecting mall?2. How do customers evaluate central and competing malls in terms of thechoice criteria identified in question 1?3. Which malls are patronized when shopping for specific product categories?
Defining Objective of the Research: Defining purposes and objectives helps ensure
an appropriate research design. A statement of objectives helps to define thetype and level of information needed.
Research questions (RQs) are refined statements of the specific components of the problem.
RQ: Do the customers of central exhibit store loyalty?
Hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is apossible answer to the research question.
H1: Customers who are store loyal are less knowledgeable about the shoppingenvironment.
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RESEARCH DESIGN:
Exploratory Research: which as its primary objective has the provision of insight into
and comprehension of the problem situation confronting the research.
Conclusive Research: helps in determining, evaluating and selecting the best course of
action to take in a given situation.
Descriptive Research: A type of conclusive research that has as its major objective the
description of something usually market characteristics or functions.
Cross-Sectional Design: A type of research design involving the collection of
information from any given sample of population element only once.
Single Cross-Sectional Design: A cross-sectional design in which one sample of
respondent is drawn from the target population and information is obtained from thissample once.
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Multiple Cross-Sectional Design: A cross-sectional design in which there are two or
more samples of respondents and information from each sample is obtained only once.
Cohort analysis: A multiple cross-sectional design consisting of a series of surveys
conducted at appropriate time intervals. The cohort refers to the group of respondents whoexperiences the same event within the same time interval.
Longitudinal design: A type of research design involving a fixed sample of population
element that is measured repeatedly on the same variable. Thus the sample remains same
over time, thus providing a series of picture which viewed together, potray a vivid
illustration of the situation and the changes that are taking place over time.
Panels: The type of research in which the respondent agrees to provide the information
over the period of time.
Causal Research: used to obtain the evidence regarding cause-and-effect relationship.
(Experiment)
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Exploratory Research Design:
Primary Data: Data generated by researcher for the specific purpose of
addressing the research problem.
Secondary Data: Data collected for some purpose other than the problem on
hand.
1.Internal – Ready to use, Requires further processing
2.External – Published material, Computerized databases, Syndicated services.
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MR Data
Secondary Data Primary Data
Qualitative Quantitative
Descriptive Causal
Experimental Data
Survey Observational & other
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Qualitative Research Procedures
Direct (Nondisguised) Direct (Disguised)
Focus Groups Depth InterviewProjective Technique
Association
Technique
Completion
TechniqueConstruction
Technique
Expressive
Technique
Focus Group:Focus Group: A qualitative research method in which eight to ten personsparticipate in an unstructured group interview about a product or service concept.
Depth Interview: A lengthy nonstructured interview between the respondent anda highly trained interviewer, who minimizes his or her own participation in thediscussion after establishing the general subject to be discussed.
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Projective Techniques:Projective Techniques: Research procedures designed to identify consumers’subconscious feelings and motivations.
Word Association
In this, respondents are presented with a list of words, one at a time and asked to respond
to each with the first word that comes to mind. The words of interest, called test words,
are interspersed throughout the list which also contains some neutral, or filler words to
disguise the purpose of the study.
Completion Technique: In Sentence/Story completion, respondents are givenincomplete sentences/story and asked to complete them. Generally, they areasked to use the first word or phrase that comes to mind.
Construction Technique: With a picture response, the respondents are askedto describe a series of pictures of ordinary as well as unusual events. Therespondent's interpretation of the pictures gives indications of that individual's
personality.
Metaphor Analysis: Based on belief that metaphors are the most basicmethod of thought and communication.
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Zaltman Metaphor Elicitation Technique (ZMET) combines collage research andmetaphor analysis to bring to the surface the mental models and the major themesor constructs that drive consumer thinking and behavior.
In expressive techniques, respondents are presented with a verbal or visualsituation and asked to relate the feelings and attitudes of other people to thesituation. Role Play, third person technique.
Descriptive Research Design
Survey Method: With the help of structured questionnaire (set of formal questionnaire that presents questions in a prearranged order).
Fixed-Alternative Questions: Questionnaire having a set of predetermined answers.
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TraditionalTelephone
Computer-AssistedTelephoneInterviewing
MailInterview
MailPanel
In-Home MallIntercept
Computer-AssistedPersonal
Interviewing
E-mail Internet
SurveyMethods
Telephone Personal Mail Electronic
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Comparative Advantages
MAIL TELEPHONEPERSONAL
INTERVIEW
ONLINE
Cost Low Moderate High Low
Speed Slow Immediate Slow Fast
Response
rateLow Moderate High
Self-
selectionGeographic
flexibilityExcellent Good Difficult Excellent
Interviewer
bias
N/A Moderate Problematic N/A
Interviewer
supervisionN/A Easy Difficult N/A
Quality of
responseLimited Limited Excellent Excellent
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Observation Methods:
Structured (e.g., an auditor performing inventory analysis in a store.)Unstructured (e.g., observing children playing with new toys.)Disguised (mirrors, hidden cameras, or inconspicuous mechanical devices.)Undisguised
Natural (one could observe the behavior of respondents eating fast food inMcDonald.)
Contrived (artificial environment, such as a test kitchen.)
Observation Methods Classified by Mode of Administration:
1. Personal Observation
2. Mechanical Observation (psycho galvanometer, galvanic skin response, voice pitch
analysis and response latency)
3. Audit
4. Content Analysis
5. Trace Analysis
Observational Research:
Helps marketers gain an in-depth understanding of the relationship between people and
products by watching them buying and using products.
Helps researchers gain a better understanding of what the product symbolizes.
Widely used by interpretivist researchers.
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Validity:Validity: The degree to which a measurement instrument accurately reflects whatit is designed to measure.
Reliability:Reliability: The degree to which a measurement instrument is consistent in what
it measures.
Attitude Scales: Scaling involves creating a continuum upon which measuredobjects are located.
Likert scales: easy for researchers to prepare and interpret, and simple for
consumers to answer.1 = Agree Strongly
2 = Agree
3 = Neither Agree or Disagree
4 = Disagree
5 = Disagree Strongly
Semantic differential scales: relatively easy to construct and administer.
1) Rugged :---:---:---:---:---:---:---: Delicate
2) Excitable :---:---:---:---:---:---:---: Calm
Rank-order scales: subjects rank items in order of preference in terms of somecriteria.
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ScaleNominal Numbers
Assigned
to Runners
Ordinal Rank Order
of Winners
Interval PerformanceRating on a
0 to 10 Scale
Ratio Time toFinish, in
Seconds
7 38
Thirdplace
Secondplace
Firstplace
Finish
Finish
8.2 9.1 9.6
15.2 14.1 13.4
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Nominal Ordinal RatioScale Scale Scale
Preference $ spent last 3months No. Store
1. Lord & Taylor 2. Macy’s3. Kmart4. Rich’s
5. J.C. Penney6. Neiman Marcus7. Target8. Saks Fifth Avenue9. Sears10.Wal-Mart
IntervalScale
Preference Ratings
1-7 Rankings 11-17
7 79 5 15 0
2 25 7 17 200
8 82 4 14 03 30 6 16 100
1 10 7 17 250
5 53 5 15 35
9 95 4 14 0
6 61 5 15 100
4 45 6 16 0
10 115 2 12 10
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Questionnaire: A questionnaire is a formalized set of questions for obtaining information from respondents.
It must translate the information needed into a set of specific questions
that the respondents can and will answer. A questionnaire must uplift, motivate, and encourage the respondent tobecome involved in the interview, to cooperate, and to complete theinterview. A questionnaire should minimize response error.
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Specify the Information Needed
Design the Question to Overcome the Respondent’s Inability and Unwillingness to
Answer
Determine the Content of Individual Questions
Decide the Question Structure
Determine the Question Wording
Arrange the Questions in Proper Order
Reproduce the Questionnaire
Specify the Type of Interviewing Method
Identify the Form and Layout
Eliminate Bugs by Pre-testing
Questionnaire Design Process
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Customer Satisfaction Measurement:
1.Customer Satisfaction Surveys2.Gap Analysis of Expectations versus Experience
3.Mystery Shoppers4.Critical Incident Technique5.Customer Complaint Analysis6.Analysis of Customer Defections
Sampling and Data Collection:
Whom to survey (the sampling unit)
How many to survey (the sample size)
How to select them (the sampling procedure/technique)
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Probability Sampling Design:
Simple random
sample
Every member of the population has a known and
equal chance of being selected.
Systematic
random sample
A member of the population is selected at random
and then every “nth” person is selected.
Cluster (area)sample
The population is divided into mutually exclusivegroups (such as blocks), and the researcher draws
a sample of the groups to interview.
Stratified
random sampleThe population is divided into mutually exclusive
groups (such as age groups), and random samples
are drawn from each group.