Consumer Behaviour - MKT 531, MBM (Third Semester)

UNIT - 4 Consumer Research

Introduction of Consumer Research

 “Research is a systematic inquiry to describe, explain, predict, and control the observed phenomenon.
Research involves inductive and deductive methods.”- Earl Robert Babbie
 "Research is a process of steps used to collect and analyze information to increase our understanding of
a topic or issue". - John W. Creswell
Research is a process of systematic inquiry that entails collection of data; documentation of critical information;
and analysis and interpretation of that data/information, in accordance with suitable methodologies set by
specific professional fields and academic disciplines. Research is conducted to evaluate the validity of a
hypothesis or an interpretive framework; to assemble a body of substantive knowledge and findings for sharing
them in appropriate manners; and to generate questions for further inquiries.

In marketing context, Consumer research is the practice of identifying the preferences, attitudes, motivations,
and buying behavior of the targeted customer. Using a variety of customer research methods to gather this
information, shared traits among the different customer groups are identified and categorized into customer
segments and buyer personas, which are then used to create marketing campaigns targeting a specific segment
or persona.
Consumer research is the research done on consumers’ preferences, attitudes, loyalty, usage and behavior in a
market. It helps in understanding customers so that the marketing campaigns can be designed accordingly.
Consumer research is a part of marketing research. So, market research deals with processes to understand
customers and end consumers which help the marketer to build market strategy. It helps in analyzing the market
using porter’s five forces which deals with the market condition. The strengths, weakness, opportunities and
threats are analyzed. They help in defining the marketing goals, generate and define marketing activities,
monitor them and improve performance and understanding of the market and consumers. The market research
also guides the company in addressing the issues by conducting surveys and get customer opinions.

Characteristics of consumer research are as following:

1) Systematic and continuous process
2) Wide and comprehensive in Scope
3) Problem oriented
4) Emphasizes on accurate data collection and critical analysis
5) Offers benefits to the company and consumers
6) Tool for managerial decisions
7) An applied research
8) Reduces the gap between the producers and consumers
9) Consumer research has limitations
10) Use of different methods

Basic Research and Applied Research

Basic Research
A basic research definition is data collected to enhance knowledge. The main motivation is knowledge
expansion. It is a non-commercial research that doesn’t facilitate in creating or inventing anything. It is also
known as pure or fundamental research. For example: an experiment to determine a simple fact.

Basic research is driven by a scientist's curiosity or interest in a scientific question. The main motivation is to
expand man's knowledge, not to create or invent something. There is no obvious commercial value to the
discoveries that result from basic research. For example, basic science investigations probe for answers to
questions such as:
 How did the universe begin?
 What are protons, neutrons, and electrons composed of?
 How do slime molds reproduce?
 What is the specific genetic code of the fruit fly?

Most scientists believe that a basic, fundamental understanding of all branches of science is needed in order for
progress to take place. In other words, basic research lays down the foundation for the applied science that
follows. If basic work is done first, then applied spin-offs often eventually result from this research. As Dr.
George Smoot of LBNL says, "People cannot foresee the future well enough to predict what's going to develop
from basic research. If we only did applied research, we would still be making better spears."

Applied Research
Applied research focuses on analyzing and solving real-life problems. This type refers to the study that helps
solve practical problems using scientific methods. Studies play an important role in solving issues that impact
the overall well-being of humans. An applied research is concerned with knowledge that has immediate
applications. It is also called decisional research. For example: finding a specific cure for a disease.

Applied research is designed to solve practical problems of the modern world, rather than to acquire
knowledge for knowledge's sake. One might say that the goal of the applied scientist is to improve the
human condition. For example, applied researchers may investigate ways to:
 improve agricultural crop production
 treat or cure a specific disease
 improve the energy efficiency of homes, offices, or modes of transportation

Some scientists feel that the time has come for a shift in emphasis away from purely basic research and
toward applied science. This trend, they feel, is necessitated by the problems resulting from global
overpopulation, pollution, and the overuse of the earth's natural resources.

Basic Vs applied Research

A common question that researchers get from students and the general public is "what is your research good
for?" To answer this question, it is best to establish the difference between basic (fundamental) and applied
research.
Basic research is curiosity driven. It is motivated by a desire to expand knowledge and involves the acquisition
of knowledge for knowledge's sake. It is intended to answer why, what or how questions and increase
understanding of fundamental principles. Basic research does not have immediate commercial objectives and
although it certainly could, it may not necessarily result in an invention or a solution to a practical problem.
Applied research is designed to answer specific questions aimed at solving practical problems. New knowledge
acquired from applied research has specific commercial objectives in the form of products, procedures or
services.
Fundamental research answers the initial question of how things work. This fundamental knowledge is then
used by applied scientists and engineers, for example, to make improvements on existing products, technologies
and processes. Likewise, basic researchers take advantage of improved technologies to answer new fundamental
questions. It is an important cycle for advancement.
Following points show the Difference between Basic and Applied Research:
1. Purpose: Basic research is meant to expand one’s current knowledge while applied research is aiming to
solve particular life problems.
2. Nature: Basic research is more theoretical since it generally generates theories and explores information
which may not be presently applied. It is also focused on improving current academic concepts. On the other
 hand, applied research is more practical and descriptive in nature as it seeks to alleviate current problems in
various fields and is mostly concerned with end-usage.
3. Scope: The scope of basic research is often universal as it may bae applied to diverse concepts. However,
applied research is largely particular as it is focused on very specific topics which seek to answer certain
problems.
4. Technology: As compared to basic research, applied research is more often linked with the improvement of
technology as it covers the direct application of knowledge.
5. Future: While basic research aims to predict future phenomena, applied research seeks to prevent predicted
problems or come with solutions for future challenges. The former deals with knowing what could happen
while the latter goes beyond by coming up with probable actions.
6. Drive: Basic research is driven by curiosity while applied research is driven by clients as the former is
conducted to understand fundamental concepts while the latter is done to help solve individuals’ or groups’
problems.
7. Commercial objectives: As compared to basic research, applied research is closely associated with
commercial processes since it aims to create relevant products and services.
8. Economy: As compared to basic research, applied research is more closely connected with the development
of economy as numerous surveys, experiments, and case studies are conducted to verify the efficacy of
products, market strategies, and other economically related procedures.
9. Academic publication: As compared to applied research, basic researches more often appear in academic
publications as they delve into generating new knowledge.
10. Environment: Conversely, applied research mainly takes place in real world settings where other
unexpected variables may intervene.

Quantitative and Qualitative Research

Consumer research is an essential tool for any business that sells to the public. It’s used to improve market
share, increase the bottom line or help you stay ahead of the competition, notes Resolution Research. There are
two basic kinds of consumer research. Quantitative research defines your business by measuring something,
such as consumer satisfaction. Qualitative research helps explain why the statistical finding is what it is and why
customers think and feel as they do.

Quantitative Research
Quantitative Research is used to quantify the problem by way of generating numerical data or data that can be
transformed into usable statistics. It is used to quantify attitudes, opinions, behaviors, and other defined
variables – and generalize results from a larger sample population. Quantitative Research uses measurable data
to formulate facts and uncover patterns in research. Quantitative data collection methods are much more
structured than Qualitative data collection methods. Quantitative data collection methods include various forms
of surveys – online surveys, paper surveys, mobile surveys and kiosk surveys, face-to-face interviews, telephone
interviews, longitudinal studies, website interceptors, online polls, and systematic observations.

Quantitative research determines a statistical or “factual” sense of how well your business is doing. For
example, you can measure the percentage of consumers who like your new product and the percentage that do
not. Quantitative research is accomplished by surveying a scientific sampling of your customer base. There
are various methods of deploying surveys or questionnaires. There are three methods that are often used by
researchers:

1. Survey Research: the ultimate goal of survey research is to learn about a large population by deploying
a survey. Today, online surveys are popular as they are convenient and can be sent in an email or made
available on the internet. In this method, a researcher designs a survey with the most relevant  survey
questions and distributes the survey. Once the researcher receives responses, they summarize them to
tabulate meaningful findings and data.
2. Descriptive Research: Descriptive research is a method which identifies the characteristics of an observed
phenomenon and collects more information. This method is designed to depict the participants in a very
 systematic and accurate manner. In simple words, descriptive research is all about describing the
phenomenon, observing it, and drawing conclusions from it.
3. Correlational Research:  Correlational research examines the relationship between two or more variables.
Consider a researcher is studying a correlation between cancer and married women have a negative
correlation with cancer. In this example, there are two variables: cancer and married women. When we say
negative correlation, it means women who are married are less likely to develop cancer. However, it
doesn’t mean that marriage directly avoids cancer.

Qualitative Research
Qualitative Research is primarily exploratory research. It is used to gain an understanding of underlying reasons,
opinions, and motivations. It provides insights into the problem or helps to develop ideas or hypotheses for
potential quantitative research. Qualitative Research is also used to uncover trends in thought and opinions, and
dive deeper into the problem. Qualitative data collection methods vary using unstructured or semi-structured
techniques. Some common methods include focus groups (group discussions), individual interviews, and
participation/observations. The sample size is typically small, and respondents are selected to fulfill a given
quota. The purpose of asking open-ended questions is to gather as much information as possible from the
sample. The following are the methods used for qualitative research:

1. One-to-one Interview: This interview is conducted with one participant at a given point in time. One-to-one
interviews need a researcher to prepare questions in advance. The researcher asks only the most important
questions to the participant. The researcher collects as many meaningful answers as possible from the
participants to draw inferences.
2. Focus Groups: Focus groups are small groups comprising of around 6-10 participants who are usually
experts in the subject matter. A moderator is assigned to a focus group that facilitates the discussion
amongst the group members. A moderator can probe the participants by asking the correct questions that
will help them collect a sizable amount of information related to the research.
3. Ethnographic Research: Ethnographic research is an in-depth form of research where people are observed
in their natural environment without This method is demanding due to the necessity of a researcher
entering a natural environment of other people. Geographic locations can be a constraint as well. Instead of
conducting interviews, a researcher experiences the normal setting and daily life of a group of people.
4. Text Analysis: Text analysis is a little different from other qualitative methods as it is used to analyze social
constructs by decoding words through any available form of documentation. The researcher studies and
understands the context in which the documents are written and then tries to draw meaningful inferences
from it. Researchers today follow activities on a social media platform to try and understand patterns of
thoughts.
5. Case Study: Case study research is used to study an organization or an entity. This method is one of the
most valuable options for modern this type of research is used in fields like the education sector,
philosophical studies, and psychological studies. This method involves a deep dive into ongoing research
and collecting data.

Qualitative Research Vs Quantitative Research

One way to classify market research is by quantitative vs. qualitative techniques.  A proper explanation of
quantitative vs. qualitative research follows, but if you want to keep this topic very simple, think of quantitative
data as structured (numerical) data that can be plugged into a spreadsheet and analyzed with statistical methods. 
Conversely, think of qualitative data as unstructured information (focus group comments, observations, etc.) that
is summarized subjectively, as opposed to mathematically.  

A rule of thumb for deciding whether to use qualitative or quantitative data is:
 Use quantitative research if you want to confirm or test something (a theory or hypothesis)
 Use qualitative research if you want to understand something (concepts, thoughts, experiences)
Comparison Chart

BASIS FOR
QUALITATIVE RESEARCH QUANTITATIVE RESEARCH
COMPARISON

Meaning Qualitative research is a method of Quantitative research is a research method

inquiry that develops understanding on that is used to generate numerical data and
human and social sciences, to find the hard facts, by employing statistical, logical
way people think and feel. and mathematical technique.

Nature Holistic Particularistic

Approach Subjective Objective

Research type Exploratory Conclusive

Reasoning Inductive Deductive

Sampling Purposive Random

Data Verbal Measurable

Inquiry Process-oriented Result-oriented

Hypothesis Generated Tested

Analysis Elements Words, pictures and objects Numerical data

Objective To explore and discover ideas used in To examine cause and effect relationship
the ongoing processes. between variables.

Methods Non-structured techniques like In-depth Structured techniques such as surveys,

interviews, group discussions etc. questionnaires and observations.

Result Develops initial understanding Recommends final course of action

Qualitative and Quantitative Methods of Consumer Research

While there are many important decisions to make when planning a consumer research effort, one of the
most crucial is whether to conduct qualitative or quantitative consumer research. In brief, quantitative consumer
research refers to the process of collecting large amounts of data through surveys, questionnaires, and
polling methods. Qualitative consumer research, conversely, involves determining customer motivation through
close observation –– typically in a small group or face-to-face encounter.

What deciding between the two even trickier, is that many of the people conducting market or consumer
research –– either for their employers, or as consultants –– do not have in-depth expertise with both methods. As
such, they stick with the one that they are familiar with, regardless of whether it is the best option. Or if they
integrate both quantitative and qualitative methods into their approach, they are biased toward certain strategies
and tactics -- which ultimately renders the outcomes anywhere from less-than-optimal, to outright misleading.  

The only way to avoid heading down the wrong road -- and undermining the market or consumer research effort
and investment –– is to objectively determine whether a quantitative approach, quantitative approach, or
integrated approach (and if so, in what proportion and for what purpose) is required. Below are some high-level
guidelines to point you in the right direction and help you make this critically important decision.

Quantitative Research: The purpose of quantitative research is to glean reliable, standardized facts and
statistics to guide key business decisions, such as “is there a strong market for our product?” or “how many of
our targets customers care about this benefit?”
Often, primary research quantitative data is captured through surveys and questionnaires. However, it’s vital to
ensure that the pool of respondents is sufficiently large, and that reasonable effort is put into ensuring the quality
of information. For example, exclusively using mobile surveys to capture quantitative data is likely to
disproportionately filter out people not on mobile panels, while conducting surveys by calling landline phones is
likely to disproportionately filter out the nearly two-thirds of households that entirely or mostly use cell phones.

Furthermore, capturing data is just one piece of the quantitative research puzzle. To leverage it as actionable and
reliable business intelligence, it must be organized, analyzed and communicated to decision-makers (e.g.
executives, board members, business owners, etc.). Most organizations -- and virtually all small businesses -- do
not have the resources, technology or expertise to do this in-house.

Qualitative Research: The purpose of qualitative research is to go deeper into understanding insights into
customer motivation and emotion. In this sense, if quantitative research is mainly about the “what” of customer
behavior, qualitative research is about the “why." This approach can be useful for revealing aspects such as how
customers regard a brand, why they like certain marketing messages and dislike others, and so on.  

There are many ways to conduct qualitative market research, such as focus groups, online bulletin boards and
in-depth interviews. There are advantages and drawbacks to various strategies and tactics, and it’s important to
make adjustments to avoid bias or end up with plenty of raw information, but precious little actionable insight.  

Questions to Help Make the Right Decision

In additional to the information shared above, you may also find it helpful to ask these three questions as part of
your decision-making process
1. Is our market research exploring perceptions or testing a hypothesis?
 If you are exploring perceptions, then you need qualitative research. If you are testing a hypothesis, then
you need quantitative research.
2. Do we need an in-depth understanding of why customers have certain opinions or do we want to measure
their opinions?
 If you want an in-depth understanding of perceptions, then you need qualitative research. If you want to
measure opinions, then you need quantitative research.
3. Do we want to map out the experience of an individual respondent, or make assumptions about a larger
audience?
 If you want to map out the experience of an individual, then you need qualitative research. If you want
to map assumptions about a larger audience, then you need quantitative research.

Integrated Consumer Research

Typically, a robust and complete market research effort involves qualitative and quantitative methods, since they
both offer valuable perspectives and can be combined to generate valuable insights. Naturally, the right mix is
based on each business’s unique needs, timeframe, scope and budget. There is no one-size-fits-all answer or
template, and the determination should never be based on what a market researcher or consultant is familiar with
(or simply knows how to implement). The determination must only be based on what the business requires, and
what the integrity of the market research project demands.

Exploratory, Descriptive and Experimental Research

1. Exploratory Research: As the name suggests, exploratory research is conducted to explore a group of
questions. The answers and analytics may not offer a final conclusion to the perceived problem. It is conducted
to handle new problem areas which haven’t been explored before. This exploratory process lays the foundation
for more conclusive research and data collection.

It is a lot like exploration or detective work fuelled by curiosity. Researchers should use their instincts to find
clues and venture into new territories in search of information. Flexibility is important in exploratory research
and it is bound to result in new ideas, revelations and insights.
These are some of the objectives that warrant the need for exploratory research:
 To define an ambiguous problem more precisely like why sales of a specific product are declining.
 To gain a better understanding of an issue.
 To generate new ideas like what one can do to improve customer relationships.
 Develop hypotheses that can explain the occurrence of specific phenomena.
 For providing insights like what political changes in the international environmental are going to affect
our business.
 To determine if some research would be practical and to set priorities for future like we must focus on
these two product categories because as per research interest in other categories has waned and they are
not profitable any more.
Characteristics of exploratory research:
 They are not structured studies
 It is usually low cost, interactive and open ended.
 It will enable a researcher answer questions like what is the problem. What is the purpose of the
study? And what topics could be studied?
 To carry out exploratory research, generally there is no prior research done or the existing ones
do not answer the problem precisely enough.
 It is a time consuming research and it needs patience and has risks associated with it.
 The researcher will have to go through all the information available for the particular study he
is doing.
 There are no set of rules to carry out the research per se, as they are flexible, broad and
scattered.
 The research needs to have importance or value. If the problem is not important in the industry
the research carried out is ineffective.
 The research should also have a few theories which can support its findings as that will make it
easier for the researcher to assess it and move ahead in his study
 Such a research usually produces qualitative data, however in certain cases quantitative data
can be generalized for a larger sample through use of surveys and experiments.

Some tools used to conduct exploratory research:

 Secondary information
 Personal interviews
 Focus groups
 Case Analysis
 Projective techniques

2. Descriptive Research: Descriptive research focuses on expanding knowledge on current issues through a

process of data collection. Descriptive studies are used to describe the behavior of a sample population. In a
descriptive study, only one variable is required to conduct the study. The three main purposes of descriptive
research are describing, explaining, and validating the findings. For example, a study conducted to know if top-
level management leaders in the 21st century possess the moral right to receive a huge sum of money from the
company profit.
Descriptive research as the name suggests is used for description or to describe  phenomenon or idea. It is
generally used in the following conditions:
a) To describe the traits of specific groups like our largest customers who account for more than 60 percent
of our sales and based upon the results design future marketing efforts.
 b) Covariance of two variables – like does consumption of our services vary by income range.
c) To estimate the size of consumer groups in a population that act in a specific manner.   How often do
newly married like to shop from our brand?
d) For specific predictions, like forecasting the number of switching customers.

Some distinctive characteristics of descriptive research are:

a) Quantitative research: Descriptive research is a quantitative research method that attempts to collect
quantifiable information to be used for statistical analysis of the population sample. It is an popular market
research tool that allows to collect and describe the nature of the demographic segment.
b) Uncontrolled variables: In descriptive research, none of the variables are influenced in any way. This uses
observational methods to conduct the research. Hence, the nature of the variables or their behavior is not in
the hands of the researcher.
c) Cross-sectional studies: Descriptive research is generally a cross-sectional study where different sections
belonging to the same group are studied.
d) Basis for further research: The data collected and analyzed from descriptive research can then be further
researched using different research techniques. The data also can help point towards the types of research
methods are to be used for the subsequent research.

Compared to exploratory research, descriptive research follows a very rigid approach. Its data collection
methods are highly rigid as compared to the unstructured and flexible approach used in exploratory research.
Exploratory research often forms the basis for descriptive research and the knowledge acquires through
exploratory research is used to select respondents, setting priority issues, framing and asking questions as well
as setting the time and place for the respondents like when and where to ask questions. While exploratory
research can provide the hypotheses, you need to conduct descriptive research to prove the hypotheses.
Exploratory research will answer the basic questions related to who, where, what when, why and how if
descriptive research but then descriptive research will answer the final questions related to the market. The main
difference between exploratory and descriptive research is that the first does not follow standardized methods
but the second does.

So, descriptive research does the task of putting the picture created by exploratory research into the frame. Two
basic types of descriptive research studies for collecting data are cross sectional and longitudinal studies.
1. Cross sectional studies: Cross sectional designs are the most used and popular descriptive research design. It
involves sampling the population at a given point of time. Also referred to as sample surveys, it follows a high
degree of structure in both data collection process and instrument.
2. Longitudinal studies: While cross sectional studies sample the population at a point of time, longitudinal
studies sample it over a period of time. The difference is just like that between a still photo and video film. The
main objective of longitudinal studies is to observe behavioural changes occurring over  period of time. Also
known as true panels, these studies provide the same information at various specific points of time. This
information can be combined with other information to know if some specific behaviour change was triggered
by a particular act like brand switching was caused due to exposure to a particular advertisement.

3. Experimental Research: Experimental research is research conducted with a scientific approach using two
sets of variables. The first set acts as a constant, which you use to measure the differences of the second
set. Quantitative research methods, for example, are experimental. If you don’t have enough data to support your
decisions, you must first determine the facts. Experimental research gathers the data necessary to help you make
better decisions.
Any research conducted under scientifically acceptable conditions uses experimental methods. The success of
experimental studies hinges on researchers confirming the change of a variable is based solely on the
manipulation of the constant variable. The research should establish a notable cause and effect.

You can conduct experimental research in the following situations:

 Time is a vital factor in establishing a relationship between cause and effect.

 Invariable behavior between cause and effect.
  You wish to understand the importance of the cause and effect.

Types of experimental research design:

The classic experimental design definition is, “The methods used to collect data in experimental studies.”
There are three primary types of experimental design:
 Pre-experimental research design
 True experimental research design
 Quasi-experimental research design
The way you classify research subjects, based on conditions or groups, determines the type of design.
a) Pre-experimental research design: A group, or various groups, is kept under observation after
implementing factors of cause and effect. You’ll conduct this research to understand whether further
investigation is necessary for these particular groups.
You can break down pre-experimental research further in three types:
 One-shot Case Study Research Design
 One-group Pretest-posttest Research Design
 Static-group Comparison
b) True experimental research design:  True experimental research relies on statistical analysis to prove or
disprove a hypothesis, making it the most accurate form of research. Of the types of experimental design, only
true design can establish a cause-effect relationship within a group. In a true experiment, three factors need to be
satisfied:
 There is a Control Group, which won’t be subject to changes, and an Experimental Group, which will
experience the changed variables.
 A variable which can be manipulated by the researcher
 Random distribution
This experimental research method commonly occurs in the physical sciences.
c) Quasi-experimental research design: The word “Quasi” indicates similarity. A quasi-experimental
design is similar to experimental, but it is not the same. The difference between the two is the assignment of a
control group. In this research, an independent variable is manipulated, but the participants of a group are not
randomly assigned. Quasi-research is used in field settings where random assignment is either irrelevant or not
required.

Ethics in Consumer Research

The term ethics commonly refers to principles of behaviour. Ethics are moral principles or beliefs about what is
right and wrong. We can also define ethics as a method procedure, or perspective for deciding how to act for
analyzing complex problems and issues. Research ethics are the application of moral rules and professional
codes of conduct to the collection, analysis, reporting, and publication of information about research subjects, in
particular active acceptance of subjects' right to privacy, confidentiality, and informed consent. Until recently
sociologists (and social scientists generally) often displayed arrogance in their treatment of research subjects,
justifying their actions by the search for truth. This trend is now being redressed, especially in industrial
societies, with the adoption of formal codes of conduct, and greater emphasis on ethical research procedures.
Ethical issues are most salient in relation to case-studies and other research designs which focus on very few
cases. 
Ethical issues are likely to occur at all stages of any research project: when seeking access to information,
during data collection; as data are processed and analyzed, and when they are reported. The common ethical
issues that are likely to be found in any research are as follows:

 Put pressure on the participants to grant access to information

 Violate an individual's right to privacy
 Force the respondents to provide personal and confidential data
 Possible deception of participants
 Fabricate the entire set of data
 Replace actual data with false data
 Alter data to make them "look better" or fit with a theory
  Select only the best data by others
 Claim credit for the work done by others
 False reporting of data or event
 Not maintaining confidently and anonymity
 Report data without permission from the organization
 Post-study sharing of research results
 Publish the same paper in two different journals without telling the editors

Therefore, a researcher avoid above unethical behaviour in his research study. Ethical consideration is most
important element of any research.

As you can see, there is a lot of different ways marketing or consumer research can go wrong. Without a clear
code of ethics, a mission-driven business could sponsor a focus group or other research project that can end up
seriously harming them and their customers. Unfortunately, it happens all the time: the public catches wind of a
suspicious business, said business is immediately denounced by many previous clients, and the business loses
credibility, which can be difficult or even impossible to recover from. Ethical practices in marketing research
will create effective answers for your organization’s questions and build trust and credibility with your
employees, clients, and stakeholders.

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