Essay Questions:

SECTION A – COMPULSORY QUESTION:

1. Consider different methods businesses might use to collect consumer data and
describe some of the advantages and disadvantages of each, both for the business
and consumers.
SECTION B- 2. Identify and discuss the different factors in the Micro and Macro environment that
might affect marketing and explain some of the ways in which companies might
respond to changes in these environments.
Word count: 1. 995
2.
Student number: 39172457
1. Consumer data has become an invaluable asset for companies looking to stay up to date on
developments in the marketplace, enhance marketing techniques, and strengthening the relationship
with the consumer. Consumer data is acquired using an array of techniques, ranging from
conventional surveys to sophisticated internet analysis. This essay examines different methods used
by businesses to collect customer data and analyses the positive and negative aspects of each,
considering the points of view of consumers as well as companies.
Surveys are still one of the most frequently utilized market research techniques. This conventional
procedure for data collection involves submitting a set of questions to a population chosen
appropriate for research, also referred to as a sample. This can be conducted using different
communication channels: face-to-face interviews, telephone interviews, mail surveys or online
surveys. Benefits may vary depending on the method selected, for example face-to-face interviews
have higher response rates, but email interviews are the ones that are less expensive. In general this
method allows the collection of opinions, preferences, and detailed information tailored to the
company's needs. On the other side, the two main disadvantages are a potential low response rate
and an inadequate sample, but costs might also become an issue.
The purposes of focus group discussions and in-depth interviews are similar: to gather deep
customer insight. In both circumstances, there is a moderator who has to guide the conversation in
order to cover a set of topics. When the presence of other individuals may alter the honesty of the
responses or if the topic demands an individual discussion, the second approach is preferred. Today,
the group discussions are frequently held online, which has resulted in a substantial reduction in the
costs associated with this approach while also allowing people from all over the world to
participate. However, nonverbal interactions and involvement between individuals were lost.
Furthermore, because these are small samples, organizations must carefully evaluate the results of
this form of research. This could result in an erroneous portrayal of beliefs and perspectives. On the
other hand, as it is frequently done, they can be used as a starting point for generating new ideas.
Loyalty programs have been employed by almost all service companies, such as banks, hairdressers,
and coffee shops, for developing customer databases. This tool is frequently used by retailers in
order to collect a variety of data, including transactional data, which allows companies to know the
frequency of purchase and purchase value, as well as promotional data, which records the
responsiveness to promotional campaigns and geodemographic data. Costa Coffee's strategy for
employing this strategy is a great example of how this approach might be used. The campaign
offered numerous advantages and tailored offers using online communication channels to minimize
costs based on the behaviours of their consumers that had been previously observed. It is in fact
critical that consumers understand the advantages of loyalty programs; otherwise, they will be
reluctant to share information about themselves. The campaign earned 21 million pounds in
additional revenues and increased both in-store visits and consumer average spend.
Observation research involves collecting data by direct observation, whether in real-world or
simulated scenarios. Its benefits include independence from respondents' interest to disclose
information, less interviewer bias, and the ability to get specific data only by observation. It is
commonly used in retail and gives useful information about buyer habits. This strategy can also be
associated with social listening, which consists in observing comments and opinions made by
consumers on various social platforms, such as Facebook. As a result, social networks have evolved
into platforms that allows customers to express themselves. Given the vast volume of data on the
internet, major companies have begun to employ ‘webscraping’ software programs, which select the
most useful data to the organization from various websites and then convert it into useful
information. One application is to monitor reviews to have a better understanding of what the public
thinks of the firm and its reputation, as well as to give targeted advertising to different groups of
consumers. One of the mai problem related to these methods is that customers may lose trust in the
firm because they are unaware that they are being observed and of which data is being collected. As
a result, they may share less information. Consequently, one reasonable strategy would be to make
the data gathering process as transparent as possible while also giving customers more control over
the data they choose to share (Timothy Morey, Theodore “Theo” Forbath and Allison Schoop,
2015).
Many research firms are using anthropological and biological methodologies that focus on
observing species in their natural environments. This is known as ethnographic research, and
it involves observation as well as in-depth or focus-group interviews. Researchers select specific
human behaviours to study and then go out into the field, like retail stores to observe what
customers do. One of the main advantages of the ethnographic approach is that researchers
frequently discover unexpected things. For example, Ikea frequently conducts studies inside the
homes of its customers all over the world, and one in particular, about sofas has revealed new ways
to use this furniture. Many individuals in Shenzhen utilize the sofa like a support while sitting on
the ground. This undoubtedly leads to a better understanding of the customer and allows the
company to enhance the product in response to the needs of its customers. After documenting these
behaviours, customers are interviewed to gain insights into the motivations that drive their actions.
This enables senior executives to become acquainted with client segments with whom they may
never interact in their everyday lives.
In conclusion it is up to the business to assess each of the methods to determine which approach is
most suited to the study that they are planning to undertake. It must not be forget the customer's
point of view since they are the principal subject of the researches, thus it should be ensured that the
consumer is willing to contribute information and that there is an accurate representation of the
customer population.
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