CONSUMER RESEARCH: UNIT 2

An overview of the consumer research process–developing research objectives – collecting

secondary data – designing primary research – data analysis and reporting research findings
– conducting a research study

An Overview of the Consumer Research Process:

As important secondary information (i.e., information already collected for some other
purposes, but able to provide in part or even in full answers about a current problem), most
of our attention is concentrated on two categories of primary data (i.e., new research
especially designed and collected for purposes of a current research problem). The two
categories of consumer research are: qualitative research (i.e., focus groups and depth
interview, and specific associated research approaches), and quantitative research (i.e.,
observational research, experimentation and survey research and their associated research
approaches for collecting information from consumers).

Consumer Research Process:

(i) Defining the objectives of the research
(ii) Collecting and evaluating secondary data
(iii) Designing a primary research study
(iv) Collecting primary data
(v) Analysing the data
(vi) Preparing a report of the findings
Developing Research Objectives:
The first and most difficult step in the consumer research process is to accurately define the
objectives of the research. Whatever the key research question, it is important for the
marketing manager and the research manager to agree at the outset as the specific
purposes and objectives of the proposed consumer study. A carefully thought out statement
(in writing) of research objectives helps to insure that the information needed is secured, and
that costly errors are avoided.
Sometimes in designing a quantitative study, the researcher may not know what questions to
ask. In such cases, before undertaking a full-scale quantitative study, the researcher is likely
to conduct a small-scale exploratory study, commonly using a qualitative methodology, dych
as a few focus group sessions or a series of one-on-one depth interviews, to identify the
critical issues needed to develop focus and more precise research objectives for his or her
survey questionnaire or other quantitative research methodology.

Collecting Secondary Data:

The second step in the consumer research process is to search for the availability of
secondary data. By definition, secondary data is already existing information that was
originally gathered for a research purpose other than the present research. Secondary
consumer-related data can be secured from either internal sources within the company or
organisation, or external sources for free or at a cost.

Internal Secondary Data -

Such information or data could consist of previously collected in-house information that was
originally used for some other purpose.
Increasingly, companies use internal secondary data to compute customer lifetime value
profiles for various customer segments, These profiles include customer acquisition costs
(the resources needed to establish a relationship with the customer), the profits generated
from individual sales to each customer, the costs of handling customers and their orders
(some customers may place more complex and variable orders that cost more to handle),
and the expected duration of the relationship).
External Secondary Data -
This type of secondary data comes from sources outside of the firm or organisation. They
take many different forms(Some are free and can be found in a public library, other
information is available for only a nominal fee, whereas still other data or information is quite
expensive to secure.

Secondary Data - Secondary data on consumer behaviour is available from various

Business journals, publishing groups, etc.
Secondary data is also provided by companies that routinely monitor a particular
consumption-related behaviour, and sell their data to marketing companies who use the
insights to make more informed strategic decisions. 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 customise or narrowcast their promotional
messages, and thus spend their advertising dollars more effectively.

Consumer Panel - For many decades, marketers have purchased data from secondary data
providers who collected consumer behaviour data from household or family consumer
panels. The members of these diaries consumer panels are paid for recording their
purchases and/or media viewing habits that are then combined with providers. On thousands
of households and analysed by the data on the other hand, marketers and advertising
agencies pay the panel providers a subscription fee for the regular flow of reports of
research findings. Often they not only tell information about subscribers about the
information to individuals or families that buy and use their products, but include the same
information about competitors' brands.
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. But even if this is not the case, secondary data used in
exploratory research may help to clarify and redefine the objectives of the primary study and
provide ideas for the methods to be used and difficulties that are likely to occur during the
full-scale study.
The limitations of secondary data include; the information may be categorised in units that
are different from those that the researcher seeks; Some secondary data may not be
accurate because of errors gathering or analysing data for the original study or because the
data had been collected in biassed fashion in order to support a particular point of view and
the secondary data might be outdated.

Designing Primary Objectives:

If the purpose is to get new ideas (e.g ... for positioning or repositioning a product), then a
qualitative study is often undertaken; alternatively, if descriptive and quantitative information
is sought then some form of a quantitative study is likely to be undertaken. The merits of
using the different measure instruments of qualitative and quantitative research are
described in the two following sections.

Designing and Conducting Qualitative Research -

● Contemporary qualitative consumer research grew out of the rejection of the belief
that consumer marketing was simply applied economics, and that consumers were
rational decision makers who objectively evaluated the goods and services available
to them and selected those that gave them the highest utility (satisfaction) at the
lowest cost. Those rejecting this simplistic economic viewpoint included members of
an early and important school of.qualitative consumer researchers known as
motivational researchers. The central tenet of their orientation was that consumers
were not always consciously aware of why they made the decisions they did. Even
when they were aware of their basic motivations, consumers were not always wii to
reveal those reasons to others, or even to themselves.
● Early leader of the motivational research movement was a famous Viennese
psychoanalyst Dr. Ernest Dichter, who after arriving in New York in the late 1930s
began to apply qualitative Freudian psychoanalytical techniques to uncover the
hidden or unconscious motivations of consumers.
● By the 1950s and early 1960s, this research orientation had become quite popular
and focus group and depth interviews were being used by many advertising agencies
and consumer products companies as a regular research tool to better understand
consumer need and motivations.
● Today, focus groups and depth interviews are very well established research tools
that are regularly used not only to secure insights about consumers’ under not only to
secure insights about consumers' underlying needs and motivation but to have
 consumers provide their input into the new product development effort, including the
creation of new products and even future advertising messages.
● Qualitative research contributed extensively to the initial identification and
development of new promotional campaigns and new product development that can
eventually be further refined through a variety of quantitative research methods.
● In designing and implementing an appropriate research strategy for conducting a
particular qualitative study, the researcher has to take into consideration the purpose
of the study, the type of interviews that are likely to be best given the purpose of the
research, and the type of data instruments most suitable for securing information
needed. Although the specific research methods used may differ in composition,
most forms of qualitative research questioning have their roots in psychoanalytic and
clinical aspects of psychology.
● The key types of interviews conducted in carrying out qualitative studies are dept
interview and/or focus group sessions.

1. Depth Interviews -
● A depth interview, also frequently referred to as “one-on-one” interview, is a
somewhat lengthy unstructured interview between a single respondent and
highly trained researcher (often the same person who moderates focus group
sessions).
● Commonly, the strategy of the interviewer is to maximise his or her own
talking time in order to provide as much time for the consumer to express his
or her thoughts and behaviours, and respond to specific verbal and visual
materials. The role of the researcher is to probe the respondent by
encouraging the person to talk freely about the product category and/or brand
under study. This is accomplished by gently and regularly asking “why?” or
“can you try to explain that feeling a little more?”
● Depth interview studies provide marketers with valuable ideas about product
design or redesign, and provide insights for positioning or repositioning
products.
● They may take the form of written concept statements (describing a new
product idea), drawings or photos of new products, actual product samples, or
rough renditions or videotapes of print ads or TV commercials. In each
application of such "stimulus materials," the purpose is to assist the
respondent in expressing his or her inner thoughts and to encourage a more
precise or accurate response to what is being investigated. Finally, over the
course of a day of conducting in- depth interviews, a researcher is likely to be
able to complete about five to eight hours of interviews, depending on the
length of each interview.

2. Focus Groups -
● A “discussion group" or focus group often consists of 8 to 10 participants who
meet with a moderator-researcher-analyst to “focus on” or "explore" a
particular product or product category (or any other topic or subject of
research interest). During a focus group session (oe ten two hours in
duration), participants are encouraged to discuss their reactions to product
and service concepts, or new advertising or marketing communications
campaigns.
● Analysis of responses in both depth interviews and fo. cus groups require a
great deal of skill on the part of the researcher. Like depth interviews. Focus
group sessions are invariably audiotaped and videotaped, to assist in the
analysis, and to provide the client with a faithful record of the sessions. Like
depth interviews, focus groups are usually held in specially designed
conference rooms with one-way mirrors that enable marketers and
advertising agency staff to observe the sessions without disrupting or
inhibiting the responses. For focus groups (and also depth interviews),
respondents are recruited on the basis of a carefully drawn consumer profile
that is detailed in the form of a questionnaire called a screener questionnaire.
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.
● In organising focus group sessions, sometimes users of the company's
brands are clustered in one or more groups, and their responses are
compared to those of nonusers interviewed in separate sessions.
● 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 interviews. Also,
timing is sometimes very critical. In such cases, again, focus groups might be
selected because it generally takes less time to complete a series of focus
groups than a project of individual depth interviews. Other marketers (and in
particular advertising agency professionals) tend to prefer individual or depth
interviews because they believe that individually interviewed respondents are
free of group pressures and thus are less likely to give socially acceptable
(and not necessarily truthful) responses. Moreover, the single participant is
more likely to remain attentive during the entire interview, and-because of the
greater personal attention received is more likely to reveal private thoughts.
3. Discussion Guides -
● 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.
Some moderator-researchers prefer to “go with the flow” and allow the single
respondent or focus groups participants to go in the direction of what turns
out to be particularly important to them.
● Surprisingly, a good researcher following either the “question-by-question” or
“go-with-the-flow” approach, will tend to finish with more information than was
originally anticipated by the client. Indeed, it is not uncommon for qualitative
research to produce strategically important insights that were not anticipated
prior to conducting the actual qualitative research. Such “extra” insights are a
special benefit of both depth interviews and focus groups–namely, that they
can provide invaluable and unanticipated information.
● It is extremely rare that a moderator-researcher would conduct depth
interviews or focus group sessions without the aid of a discussion guide. In a
sense, a discussion guide is a kind of “agenda” of topics and issues that need
to be covered over the course of each depth interview or each focus group
session.

4. Projective Techniques -
● Projective techniques are a useful tool borrowed from psychoanalytic theory
and practice, and adapted for studying the unconscious associations of
consumers who may be concealing or suppressing some of their thoughts or
reactions. Thus, projective exercises consist of a variety of “disguised tests"
that contain ambiguous stimuli, such as incomplete sentences, untitled
pictures or cartoons, word association tests, and other-person
characterizations.
● Projective techniques are sometimes administered as part of focus group
research, but more often are used during depth interviews. Some of the well
established exercises that are used by qualitative researchers to tease-out"
true consumer-related feelings and reflection are:
(1) word associations
(2) sentence completions
(3) photo/visuals for storytelling, and
(4) role playing

Metaphor Analysis -
● Starting in the 1990s, thère has been a stream of consumer research that
suggests that since most communication is nonverbal and that people do not
think in words but in images, it is important to use a set of engaging tasks and
exercises to get consumer participants to get in touch with their own inner
feelings.
● The use of one form of expression to describe or represent feelings about
another is called a metaphor. A number of consumer theorists have come to
believe that people use metaphors as the most basic method of thought and
communication.
 ● The Zaltman Metaphor Elicitation Technique (ZMET) , the first patented
marketing research tool in the United States-relies on visual images to assess
consumers' deep and subconscious thoughts about products, services, and
marketing strategies.

5. The Growing Presence of Online Focus Groups -

● 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.
However, what is being called an “online focus group”, can vary greatly. On
the one hand, they can be very similar in nature and quality to a traditional
focus group that provides focus group recruiting services from a very large
panel of online consumers ready to participate. In certain ways, it can be
similar to regular off-line focus group sessions.
● In contrast, there is the online "quasi-focus group" that does not provide the
dynamic environment that makes a focus group something special. Instead,
such sessions are generally no more than a simplistic "back and forth" of a
series of e-mailed questions from the moderator and replies from the
respondents. There is little or no opportunity for participants to bond, or to
establish a give-and-take, that are important ingredients of focus group
research.

6. Looking-In (Online) Research -

To add to this stream of consumer research, 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, say, in the next model of a particular digital camera. To
conduct looking-in research, researchers perform a key phrase search of the stored
threads and related postings.
Designing and Conducting Qualitative Research -
A substantial portion of quantitative research is used by consumer researchers to better
understand the acceptance of various products or specific brands, as well as the impact of
promotional messages on consumers. In other cases, the objectives are to assist marketers
in pinpointing consumers' level of satisfaction with a product, service, distributor, or retailer,
or to possibly attempt to identify areas in which the consumer has unmet needs, or even to
attempt to better "predict" future consumer needs or behaviour. The broad category of
quantitative research includes experimentation, survey techniques, and observation. The
findings are descriptive, empirical, and, if collected randomly (i.e., using a probability
sample). can be generalised to larger populations. Because the data collected are
quantitative, they lend themselves to sophisticated statistical analysis. When it comes to
quantitative research studies, there are research and sample designs as well as data
collection methods and instruments that are important for investigating a wide range of
consumer behaviour topics and issues. Next, we consider three basic research designs:
observational research, experimentation (in a laboratory or in the field, such as in a retail
store), and surveys (i.c., questioning people).

Observational Research -
● Observing consumers' actions in realistic settings such as stores, malls, and homes
provides valuable insights into what is meaningful to them. This method helps
marketers understand the relationship between consumers and products, uncover
issues, and enhance brand loyalty. Large corporations and advertising agencies
employ trained observers to watch and sometimes videotape consumer behaviour.
For example, a study on mint-flavoured Listerine involved videotaping families to
observe their mouthwash usage.
● Some firms use electronic devices like video recorders or counting devices to capture
consumer behaviours. For instance, Duane Reade uses electronic beams or hand
counters to count passersby when considering new store locations. Automated
systems like frequent shopper cards and online shopping create electronic records of
consumption patterns, enhancing the observation of consumer behaviour.
● Casinos use sophisticated systems to track customer data, classify visitors, and
provide real-time rewards based on loyalty levels. For example, Foxwoods Resort
Casino monitors gaming patterns, eating habits, and room preferences using
magnetic cards. Companies like Wal-Mart use technology to monitor sales, inventory,
and product movement to maintain competitive pricing and efficiency. Wal-Mart
transports high-demand items like strawberry Pop-Tarts and beer before hurricanes
based on observed sales patterns.
● Physiological observation devices such as electronic eye cameras and brain activity
sensors monitor how consumers process information and respond to advertisements.
Neuroscientists use these tools to study attention levels and recall of promotional
messages.

Experimentation -
● Researchers select from various experimental designs to formulate consumer-related
experiments. Simple and general approaches can be used to test variables such as
package designs, price points, or promotional offers. In causal research, one
 independent variable is manipulated while all other elements are kept constant,
ensuring that differences in the dependent variable (often sales) are due to the
manipulated variable.
● An example study tested the effectiveness of attractive versus unattractive endorsers
for products that enhance attractiveness versus those that don't. Subjects viewed
each endorser-product combination for 15 seconds and filled out a questionnaire.
The independent variables were product type (enhancing attractiveness/not) and
endorser attractiveness (attractive/unattractive), while the dependent variable was
the combination of attitudes and purchase intentions. The result showed that the
attractive endorser was more effective for both product types.
● Test marketing is used when additional real-world feedback is needed before a
full-scale rollout. It involves selecting a representative market area and testing
consumer responses to marketing efforts under actual conditions. This helps project
market response while minimising risks.
● Research firms conduct small-scale experiments to test consumer responses to
alternative marketing strategies. These are useful for product selection, package
redesign, price changes, or new marketing campaigns, and are conducted in
controlled settings, unlike real-world test markets.
● Virtual reality methods involve respondents using computer simulations to interact
with products in a virtual supermarket. Researchers observe viewing times, product
examination, purchase decisions, and purchase order, providing detailed consumer
behaviour insights.
● Continuous experimentation and test marketing are crucial for the success of
products and services.

Research Surveys -
● Personal Interview Surveys - Personal interview surveys are conducted face-to-face
in public spaces or retail shopping areas, often within malls. These interviews,
referred to as mall intercepts, have become more common as a replacement for
in-home interviews. This shift is due to the high number of working women who are
not at home during the day and the general reluctance of people to allow strangers
into their homes.
● Telephone Interview Surveys - Telephone interview surveys are typically conducted in
the evenings and on weekends when respondents are more likely to be available.
However, respondents often react negatively to interruptions during dinner, television
viewing, or relaxation. The issue of unlisted telephone numbers is addressed through
random-digit dialing, and the cost of widespread surveys is minimised by using
toll-free lines. Despite these solutions, challenges remain due to answering
machines, voicemail systems, and caller ID. Efforts to automate telephone surveys
have met with limited success, as respondents are less willing to interact with
electronic voices.
● Mail Surveys - Mail surveys involve sending questionnaires directly to individuals'
homes. A major challenge is the low response rate, which researchers attempt to
improve by enclosing stamped, self-addressed envelopes, using provocative
questionnaires, and sending prenotification and follow-up letters. To further address
low response rates, some companies establish ongoing consumer panels,
periodically mailing or e-mailing questionnaires to panel participants. These
 participants are often paid a participation fee and may also be asked to keep diaries
of their purchases to ensure satisfactory response rates.
● E-mail Surveys - E-mail surveys have become a popular alternative to postal surveys
due to their ease and speed of global distribution. With an accurate list of email
addresses, distributing even a large number of questionnaires is inexpensive. As the
world increasingly turns to the Web for communication, the use of e-mail surveys is
expected to grow.
● Online Surveys - There has been a rapid increase in consumer interest in
participating in online or Internet-based surveys. Potential respondents are directed
to the marketer's or research company's website through online ads or targeted email
invitations. However, because respondents are self-selected, the results cannot be
projected to the larger population. Established online research companies maintain
databases of potential consumers willing to participate in surveys for a fee. These
companies have substantial databases and comprehensive profiles of participants,
ensuring that only qualified individuals are invited to participate. The anonymity of the
Internet is believed to encourage honesty among respondents, and online surveys
are praised for their wide geographic reach and affordability. However, some
marketers are sceptical about the accuracy of online data, fearing that respondents
may create false online identities that do not reflect their true beliefs or behaviours.

Quantitative Research Data Collection Instruments -

Data collection instruments are essential for maintaining consistency and reliability in
research. They encompass questionnaires, personal inventories, and attitude scales, which
undergo pretesting to ensure validity and reliability. Validity ensures that the data collected
aligns with the study's objectives, while reliability ensures consistent findings. Techniques
like split-half reliability are employed to assess consistency.

● Questionnaires - Questionnaires serve as the primary tool for quantitative research,

either self-administered or conducted by interviewers. They must be engaging,
objective, and easy to understand to encourage respondent participation.
Questionnaires typically feature substantive and demographic questions, and their
wording, sequence, and format significantly impact validity and response rates.
Variations include open-ended and closed-ended questions, and disguising
questionnaires can mitigate response biases.
● Types of Questionnaires - In consumer research, magazine readership surveys are
prevalent, offering valuable feedback for publishers, editors, and marketing teams.
These surveys aid in understanding reader demographics and preferences, helping
tailor marketing strategies. Smaller publications often conduct these surveys,
particularly when not covered by larger syndicated media surveys.
● Attitude Scales - Attitude scales are instrumental in capturing evaluative data on
products or attributes. Likert scales, semantic differential scales, behaviour intention
scales, and rank-order scales are commonly used. Likert scales, favoured for their
simplicity, allow respondents to express agreement or disagreement with statements.
Semantic differential scales assess concepts using bipolar adjectives, aiding in
profiling and comparison. Behaviour intention scales gauge future actions, while
rank-order scales rank preferences, providing insights for product improvement and
competitive positioning.
Customer Satisfaction Measurement- Understanding and measuring customer satisfaction is
vital for every company. It aids in retaining customers, boosting sales, enhancing product
quality, and improving operational efficiency. This involves conducting surveys to gauge
satisfaction levels and comparing service performance against customer expectations. It's
crucial to aim for "very satisfied" customers, as they tend to be more profitable and loyal.

● Mystery Shoppers - Mystery shoppers play a crucial role in evaluating service

personnel and identifying areas for improvement in productivity and efficiency. For
instance, banks may use mystery shoppers to assess how employees handle various
customer interactions, such as inquiries about financial products.
● Analysing Customer Complaints - Analysing customer complaints is essential for
identifying product or service shortcomings and implementing improvements. Most
dissatisfied customers don't voice their complaints but simply switch to competitors.
Therefore, having a robust complaint analysis system in place encourages feedback
and suggestions for enhancements.
● Analysing Customer Defections - Understanding why customers leave is critical, as
retaining existing customers is generally more cost-effective than acquiring new
ones. For instance, banks may analyse transaction patterns to identify potential
defectors and take proactive measures to encourage them to stay.
● Sampling and Data Collection - Sampling is crucial for estimating population
characteristics. A representative sample is essential, and issues with sample
representation should be promptly addressed. The sampling plan addresses whom to
survey, how many to survey, and how to select them.
● Combining Qualitative and Quantitative Research Findings - Marketers often
combine qualitative (e.g., focus groups, interviews) and quantitative (e.g., surveys)
research methods to gain a comprehensive understanding of consumer behaviour.
This integrated approach provides valuable insights for developing effective
marketing strategies. Studies often involve multiple rounds of qualitative and
quantitative research to refine understanding and inform decision-making.

Data Analysis and Reporting Research Findings -

In qualitative research, the moderator-researcher analyses responses, while in quantitative
research, the researcher supervises the analysis, which involves coding and quantifying
open-ended responses, followed by tabulation and analysis using analytical software. The
research report typically includes an executive summary, methodology description, and may
or may not include recommendations, with a sample of the questionnaire often included for
evaluation.

Conducting a Research Study -

Researchers adapt research processes to the study's needs, collecting secondary data such
as population statistics and specifying parameters with the marketing manager. Qualitative
methods like focus groups gather insights on attitudes, concerns, and preferences related to
the service, while quantitative studies confirm these insights with "hard" numbers. Probability
sampling is used to project findings to the total population, and consumers are clustered into
segments based on relevant characteristics for analysis.