Chapter 2 Flashcards
What is the importance of consumer research for firms and consumer?
- Enables marketers to better meet consumer needs by offering more suitable products and marketing messages (consumers get more choice and better offerings)
- Better understanding of decision-making process enables more effective promotional messages (advertising)
What are the six steps of the consumer research process?
- Defining research objectives
- Collecting and evaluating secondary data
- Designing primary research study
- Collecting primary data
- Analysing data
- Preparing a report of the findings
Explain step 1 of the consumer research process
Defining research objectives:
The most essential step in the CRP. Need to clearly define what the specific purposes and objectives of the study are in order to attain the correct information and avoid costly mistakes. Defines the type of information and level of information needed and guides the rest of the process.
Explain step 2 of the consumer research process
Collecting and evaluating secondary data:
Secondary data – data that has already been gathered for a purpose other than the study in question
Can be gathered internally or externally
Internal – inhouse used for other purpose; analysis of customer files; used to calculate customer lifetime value
External – Data collected by outside organisation; government (StatsSA), journals, newspapers, books, search engines; commercial – market research firms
Give a brief understanding of the choices in step 3 when designing primary research
Choosing a qualitative or quantitative study depends on the nature of the study, type of information needed and resources available. New ideas = qualitative. Descriptive or numerically driven = quantitative
When is qualitative consumer research appropriate?
. Consumers not always consciously aware of why decisions made. Researchers want to understand underlying motivation of consumers to understand behaviour; results can’t be generalised but useful in initial stages of identifying and developing products/campaigns. Arose from rejection of principle that consumers consume at highest utility and lowest cost
List and describe the types of qualitative data research methods
• In-depth interview – 1 on 1; 20-60 mins; non-structured; probing; recorded; single respondent; foster encouraging environment; appropriate for product design/repositioning
• Focus groups – 8-10 participants; recruited through screener questionnaire; 2 hours; recorded; two-way mirrors; move to online; discuss reactions to concepts
• Researchers use discussion guides in focus groups and interviews to set line of questioning; may improvise however
• Projective techniques – used to identify consumers subconscious associations, feelings and motivations; uses disguised tests that use ambiguous stimuli
Some examples of projective techniques:
o Word associations – first word that comes to mind and explain why
o Sentence completion
o Photo storytelling – tell story based on visuals
o Role playing – act out roles or situations
• Metaphor analysis – use of one form of expression to describe another: ZMET
• Looking-in – browse online to see first-hand opinions and interests
When is quantitative consumer research appropriate?
Used to better understand acceptance of products/brands/promotions; to pinpoint satisfaction; used to forecast; can be generalised
Explain the concepts of validity and reliability:
- A study is valid if it does collect the appropriate data needed to answer the questions or objectives stated
- A study is reliable is the same questions asked of a similar sample produce the same findings
Quantitative design types
• Descriptive (status of variable) – what %
• Correlational (relationship between variables) – Is there a relationship
• Experimental (causal relationship)
o Controlled – one/some variable manipulated, and the rest kept constant
o Test marketing – representative market to test
o Lab or field – VR popular
Define sampling
• Subsets of population to estimate characteristics of entire population
What is a sampling plan?
• Sampling plan addresses whom to include, how many to include, how to select them
What are the types of sampling?
• Probability and non-probability sampling
List some quantitative research data collection instruments:
- observation
- survey questionnaires
- attitude scales
What is a customer satisfaction survey?
o How satisfied customers are with attributes of product and importance of the relative attributes
What is observation and mechanical observation?
• Observation:
o Watching and recording purchasing and using products to understand the relationship
• Mechanical observation:
o Uses technology to record consumer behaviour
o RFID
o Physiological observation – monitors physical response to stimuli
Describe questionnaire process
o Primary quantitative collection method
o Sent via mail or online or telephonic or in person
o Must be interesting, objective and easy to complete
o Must have substantive and demographic questions
o Disguised or undisguised
o Open or closed ended
Describe attitude scales
o Indicate relative feelings
o Likert scale – level according to number
o Semantic differential – continuum with opposites on scale
Explain the data analysis and reporting findings process
• Open-ended responses are coded & quantified
• All responses are tabulated & analyzed
• Final report includes executive summary,
body, tables & graphs, full description of methodology
Probability-sampling
gives every element in the target population a known and non-zero probability of being selected
Non-probability sampling
– Does not give some elements of the population a chance to be in the sample. Cant make statistical inferences
Types of probability sampling:
- Simple random sampling – gives every element in target population, and each possible sample of a given size, an equal chance of being selected.
- Stratified sampling – target population separated into mutually exclusive, homogenous groups and then a simple random sample chosen from each group. Selected samples combined into single sample
- Systematic sampling – choose random starting element, subsequently elements chosen using fixed interval
- Cluster sampling – elements of population selected in naturally occurring groups or clusters
Types of non-probability sampling:
- Availability sampling – elements selected from target population on basis of availability, convenience of researcher or self-selection
- Purposive sampling – elements selected as they satisfy specific inclusion and exclusion criteria
- Quota sampling – population divided into mutually exclusive subgroups and elements are solicited from respective subgroups until a target figure is reached