Transcript Marketing Research - Consumer Behavior

MARKETING RESEARCH AND
MARKETING INFORMATION SYSTEMS
• Marketing Information
Systems (MkIS)
• Primary vs. secondary
data
– Advantages and
disadvantages of each
• Marketing research
tools
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MARKETING RESEARCH
Lars Perner, Instructor
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Learning Objectives
• Appreciate the costs and benefits of
research
• Appreciate the uses of both primary
and secondary market research
• Appreciate the respective advantages
and disadvantages of different primary
research methods
• Develop an understanding of research
method problems that can lead to
misleading or incorrect conclusions.
• Understand the proper sequence of
research activities.
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Marketing Research
• An “investment” to
reduce uncertainty
• Can help guide
decisions on
–
–
–
–
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Whether to enter
Product characteristics
Promotional strategy
Positioning
• Must weigh costs and
benefits of research
– Money
– Time spent
• No perfect method—
tradeoffs between
methods
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Marketing Information Systems
(MkIS)
• Set of procedures and
methods for regular collection
and analysis of information for
marketing decisions
– Databases (internal
information—e.g., sales
volumes)
– Market research
• Primary
• Secondary
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Data Mining
• Processing of vast amounts of
data to find relationships
between variables—e.g.,
– Items frequently purchased together 
“strategic adjacencies” (items placed
together in retail setting)
– Seasonal patterns in sales
– Customer segments
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Two Research Methods
• Secondary: use of existing
research already done
– Internal
• Information System content—e.g.,
sales/order records
– External
• Government
• Consulting firms
• Newspaper and magazine articles
• Primary: creation of specific
studies to answer specific
questions
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Market Research Sequence
Identify
problem or
opportunity
Plan research
design and
collect data
Analyze
data
Report and
present results
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MARKETING RESEARCH
Collect
data
Text, p. 169
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Primary Research Methods
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Surveys
Experimentation
Observation
Focus groups
In-depth interviews
Projective techniques
Physiological Measures
Online research
Scanner data
Hybrid Methods
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Primary Research Methods
• Exploratory Methods
– Observation (can be
more definitive with larger
sample sizes and focus
on specific behavior)
– In-depth interviews
– Focus groups
– Projective techniques
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• Precision Methods
(“Conclusive”)
MARKETING RESEARCH
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–
–
–
Experiments
Surveys
Panel
Scanner data
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Surveys
• Forms
– Mail (self-administered, single
time)
– Mail panel (self-administered,
multiple surveys administered
over time)
– Telephone (from central location)
– Mall Intercept
– Computer/Internet
• Planned questions
SURVEY COSTS:
USUALLY LOW
– Open-ended
– Closed-ended
• Need large sample sizes for
precise conclusions
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MARKETING RESEARCH
Lars Perner, Instructor
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Characteristics of Some
Problematic Questions
• Difficult to answer—respondent may
not have knowledge needed
– Amounts spent annually on specific
product categories may not be known
• Sensitive (embarrassing)
• Two in one—e.g., “On a scale from 1
to 10, how fast and reliable are
Microsoft programs?”
• Leading questions—giving the
feeling of the “desired” response
– “Do you agree that soft drinks with sugar
are bad for you?”
• Non-exhaustive question
• Non-mutually exclusive answers
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MARKETING RESEARCH
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Continuum Questions
• Questions rating the degree of a characteristic (e.g.,
agreement or product usage) tend to be more
effective than binary “Yes/No” questions
• E.g.,
5
Strongly
Agree
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4
Agree
3
Neither
Agree Nor
Disagree
MARKETING RESEARCH
2
Disagree
1
Strongly
Disagree
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Some Areas Suited for Continuum
Ratings
• Interest
• Purchase
likelihood
• Satisfaction/
Dissatisfaction
• Brand loyalty
• Price sensitivity
• Knowledge
• Experience
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• Involvement
• Decision control
• Frequency or level of
use
• Awareness
• Information search
• Personality traits
• Variety seeking
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The Pentagon Declares War on Rush Limbaugh:
Misleading Research
• Survey found that only
4.8% of listeners to the
Armed Forces Radio
Network wanted to listen
to “the biggest hawk
there is.”
• How could a survey be
made to get these
results?
• Being on the watch for
misleading surveys.
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MARKETING RESEARCH
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Experimentation
• Subjects in different
groups treated
differently
– E.g., for some, “target”
product is given better
shelf space
– E.g., some get coupon
• Can help isolate causes
• Subject is not biased by
questions—does not
know how others are
treated
EXPERIMENT COSTS:
HIGH
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MARKETING RESEARCH
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My Simulated Store…
A shopper in the everyday low price condition…
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Ash’s Instant Coffee Study
GROCERY SHOPPING
LIST
Ground beef
Potatoes
Apples
Flour
Sugar
Laundry detergent
Instant coffee
6 cups of yogurt
Paper towels
Bananas
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GROCERY SHOPPING
LIST
Ground beef
Potatoes
Apples
Flour
Sugar
Laundry detergent
Ground coffee
6 cups of yogurt
Paper towels
Bananas
MARKETING RESEARCH
Respondents were
asked to describe
their impressions of a
housewife based only
on her shopping list.
These shopping lists
differ only on one
item.
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Definition
• Confound: The tendency of
some phenomenon to be
caused at least in part by
some variable other than the
one of interest.
• E.g., does having more toys
cause children to be more
intelligent?
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MARKETING RESEARCH
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Confounds
• What is cause, what is effect, and what is
coincidence?
• Correlation is not necessarily cause
• “Lurking” factors may be real cause of
– Does sitting in front of the room cause higher
grades?
– Do vaccinations cause autism?
– Does Prozac cause suicide?
– Do fish-heavy diets cause stomach cancer?
– Does fraternity/sorority membership cause
higher grades?
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MARKETING RESEARCH
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Observation
• Looking at consumes in the field—
e.g.,
– Searching for product category area
– Number of products inspected and time
spent on each
– Apparent scrutiny of labels or other
information
– Involvement of others
– Behavior under limiting circumstances
(e.g., time constraints)
OBSERVATION COSTS:
LOW TO HIGH
(DEPENDING ON CODING AND
ANALYSIS NEEDED)
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MARKETING RESEARCH
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Taste Tests
• Not experiments unless
– Two or more groups of people are treated differently (e.g.,
get different food version) or
– The same person is being treated differently at separate
times (e.g., half the participants receive new formulation,
then current; half the participants receive in the opposite
order)
• “Triangle” Measure
– Each respondent is given three items: One current, one
new, and one duplicate of either old or new
– Asked to identify the one that is different and explain why
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MARKETING RESEARCH
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Focus Groups
• Groups of 8-12
consumers
assembled
• Start out talking
generally about
context of product
• Gradually “focus” in
on actual product
MOST
APPROPRIATE
AS EARLY
STAGE METHOD
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FOCUS GROUP COSTS:
HIGH
(ESPECIALLY FOR THE AMOUNT
OF INFORMATION COLLECTED)
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REMINDER
• Focus groups are most
useful for identifying issues
that should be studied in
more detail with more
precise methods
• Due to the small sample
size and social influence on
individual responses, it is
difficult to generalize much
from focus groups
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MARKETING RESEARCH
Lars Perner, Instructor
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In-depth interviews
• Structured vs.
unstructured interviews
• Generalizing to other
consumers
• Biases
– Subtle, inadvertent
feedback
IN-DEPTH
INTERVIEW COSTS:
HIGH
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MARKETING RESEARCH
Lars Perner, Instructor
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Projective Techniques
• Getting at motivations that may not be
consciously known— “Tell a story about
this picture.”
• Measurement of attitudes consumers
are unwilling to express
– It is easier to admit something embarrassing
about someone else
• Consumer discusses what other
consumer might think, feel, or do
PROJECTIVE METHODS COSTS:
USUALLY HIGH IF PERSONAL INTERVIEWS OR
EXTENSIVEINTERPRETATION IS NEEDED
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MARKETING RESEARCH
Lars Perner, Instructor
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Projective Examples
“Please tell me a story of what is going on in this picture.”
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MARKETING RESEARCH
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More Projective Examples
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Lars Perner, Instructor
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Projective Techniques--Examples
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MARKETING RESEARCH
Lars Perner, Instructor
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Physiological Measures
• Consumer
bodily
responses are
watched at
various phases
of advertisement
or other
marketing
exposure
• Tracking of
– Eye movements
• For areas of focus
• For attention, involvement
– Heart rate
– Skin conductivity
– Brain waves
• State of mind
• Attention
PHYSIOLOGICAL
METHODS COSTS:
HIGH
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MARKETING RESEARCH
Lars Perner, Instructor
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Online Research—Analysis of Customer
Search Queries
• Unmet demand—
search for product not
found on site
• Message
comprehension—
comparison of search
terms to media
message
• Consumer vocabulary
• Feedback analysis
ONLINE SURVEY COSTS:
USUALLY LOW
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MARKETING RESEARCH
Lars Perner, Instructor
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Online Surveys
• Conditional branching—direct skip to relevant
question
• Quality of response
– Time pressures
– Willingness to write out answers or respond to
multiple closed-ended questions
– Willingness to read and follow instructions is
limited
• Reliability and browser compatibility issues
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MARKETING RESEARCH
Lars Perner, Instructor
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MARKETING RESEARCH
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Conditional Branching
• Traditional surveys: Have you bought a new
car during the last six months? If not, please
skip to Question 11.
• Conditional branching: Respondent will be
taken to the appropriate question according to
answer
• Customization of questions
– E.g., consumer lists three brands  subsequent
questions ask about these specific brands by
name
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MARKETING RESEARCH
Lars Perner, Instructor
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Other Online Tools
• “Click Stream Analysis:”
Analysis of “clicking” path—
how does the consumer get
to a desired page or
product?
• Shopping cart analysis
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MARKETING RESEARCH
COSTS: HIGH START-UP COSTS;
LOW VARIABLE COSTS
POSSIBLE WITH DEVELOPED
ALGORITHMS
USUALLY LOW
COSTS: HIGH START-UP COSTS;
LOW VARIABLE COSTS
POSSIBLE WITH DEVELOPED
ALGORITHMS
USUALLY LOW
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Searching for Reports of Personal
Experience
• Sources
• Some issues
– Blogs
(blogsearch.google.com)
– Photos (e.g., Flickr,
Webshots, Picasaweb,
Google image search)
– Video (e.g., Youtube)
–
–
–
–
Joy, enjoyment
Decisions
Anxiety
Social setting and
influence
• Cautions
– May be “staged” or
sensationalized
– May represent what the
writer or photographer
wants to show
– May be limited entries on
certain “mundane” tasks
such as dishwashing
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MARKETING RESEARCH
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Online Market Research Concerns
• Representativeness of
– Population—are relevant groups
reached in desired proportions?
– Sample—even if the desired
population is reached, do
respondents respond in desired
proportions?
• Willingness of participants to
follow instructions
• Timing of survey participation
requests
• Panel recruitment
• Privacy
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MARKETING RESEARCH
Lars Perner, Instructor
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Scanner Data
• Panel members in test
communities agree to
– Swipe a card prior to each purchase
– Have purchases matched to
•
•
•
•
Demographic profiles
Media/coupon exposure
Promotional status of competing brands
Past purchases
• Problems:
– Aggregation over household
– Aggregation bias--averages of
disparate segments obscure!
– Only available for grocery and
some drugstore products
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MARKETING RESEARCH
COSTS: HIGH START-UP COSTS;
LOW VARIABLE COSTS
POSSIBLE WITH DEVELOPED
ALGORITHMS
USUALLY LOW
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Scanner Data Research
No. of ads seen by
shopper
Ads seen for competing
brands
“Split cable”
RECORDED
PURCHASES
TELEVISION
EXPOSURE
HOUSEHOLD
FILE
DEMOGRAPHIC
INFORMATION
Family size
Occupation
Family size
Income
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Home ownership
Purchase on occasion: Yes, no
Time since previous purchase
Previous purchases
Current price
Previous price
Current promotional status
Previous promotional status
Current display status
Previous display status
Display status of competing
brands
Promotional status of
competing brands
Coupon used: Yes, no
Coupon available: Yes, no
Coupon available for other
brands? Yes, no
Amount of coupon
ANALYSIS
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Hybrid Studies
• Some studies do not fall neatly into one
category or may consist of a combination
– E.g., a series of questionnaires in which
respondents are given different information/
presentations becomes an experiment
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MARKETING RESEARCH
Lars Perner, Instructor
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Research Sequencing
• More than one research method may be needed
• Exploratory studies—e.g., focus groups—should be
done BEFORE precision approaches such as
surveys.
• “Parallel:” Studies can be done at the same time if
needed
– E.g., need to know both attitude toward brand
(questionnaire) and brand switching propensity (scanner
data)
• Follow-up: One study is needed to address issues
raised in a previous one
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MARKETING RESEARCH
Lars Perner, Instructor
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Follow-Up Studies
• Normally, more general methods (e.g., focus
groups) should be used first
– E.g., identify issues of concern
• Subsequent studies can use more precise,
less flexible methods
– E.g., questionnaire, scanner data, physiological
measures, or experiments to follow up on issues
raised in early focus group
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MARKETING RESEARCH
Lars Perner, Instructor
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REMINDER
• If focus groups should be
used at all, they should
usually be used EARLY in
the research process—
NOT after more precise
methods are used.
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Lars Perner, Instructor
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