2. Chapter 3
Learning about Consumers

3. Learning Objectives
After completing this chapter, you should be able to:
Describe the basics of consumer research and have an understanding of available consumer behavior research techniques.
Explain the complexities in doing international consumer research.
Outline the steps in the research process.
Describe generally how to ask consumers questions.

4. Learning Objectives (continued)
Identify some of the changes the Internet brings to consumer behavior research and some of the problems of evaluating secondary research.
Appreciate the ethical issues raised by market research.

5. Consumer Behavior Research and Marketing Strategies
improves the organization's understanding of how consumers' evaluate the product/service category in which the organization is interested;
increases the likelihood that the firm will segment the potential market in the best possible way;
helps the firm to target one or more selected market segments;
provides insight into appropriate bases for product positioning; and
improves the probability that the marketing mix will meet the needs of a target market or markets.

6. Consumer Research in the 21st Century
Speed
Internet
Globalization
Data Overload

7. Consumer Behavior Research
the systematic and objective process of gathering, recording and analyzing data for aid in understanding and predicting consumer thoughts, feelings and behaviors.
Basic Consumer Research attempts to expand the limits of knowledge. It does not directly involve the solution to any particular pragmatic problem.
Applied Consumer Research is conducted when a decision must be made about a specific real-life problem.

8. Consumer Research Evaluation Criteria
Relevant
Timely
Efficient
Accurate
Ethical

9. Exhibit 3.2 Outline of the Research Process

10. Key Features of Market Research
First, the research process is iterative.
Second, the use of different methods and perspectives affects the research results.
Third, no research is perfect. The researcher must constantly make trade-offs between the costs and benefits of conducting different types and amounts of research as well as different types of error.

11. The Research Approach Causal Research Exploratory Research
Research which hypothesizes a very specific relationship between two or more variables. Specifying research boundaries becomes critical.
Exploratory Research
Insights into the general nature of the problem, possible decision alternatives, or identification of relevant variables. Hypotheses are vague, ill-defined or non-existent.
Descriptive Research
Research which attempts to provide a profile of some aspect of the market environment. Hypotheses may be tentative and speculative.

12. The Research Design
A framework or blueprint for conducting the marketing research project.
Data collection methods
Measurement
Sampling plan
Data analysis
Evaluation

13. Different Data Collection Techniques
SECONDARY
SOURCES
DEPTH
INTERVIEWS
OBSERVATION
TELEPHONE
SURVEYS
PROJECTIVE
TECHNIQUES
FOCUS
GROUPS
MAIL
SURVEYS
SYNDICATED
DATA SOURCES
IN-PERSON
SURVEYS

14. Data Collection Methods
Secondary data
data that have already been collected for purposes other than the problem at hand
can be located quickly, easily, and inexpensively
should represent the starting point for any data collection effort
may lack accuracy, relevancy, and/or currency
Primary data
data collected for a specific purpose
compared to secondary data collection, primary data collection is difficult, expensive, and time-consuming

15. Exhibit 3.4 Primary Data Collection Methods Qualitative Techniques

16. Exhibit 3.5 Other Primary Data Collection Methods

17. “Symptoms of Truth” for Evaluating Interpretations
It must be exact, so that no unnecessary ambiguity exists.
It must be economical, so that it forces us to make the minimum number of assumptions and still explain the data.
It must be mutually consistent, so that no assertion contradicts another.
It must be externally consistent, so that it conforms to what we independently know about the subject matter.
It must be unified, so that assertions are organized in a manner that subsumes the specific within the general, unifying where possible, discriminating when necessary.
It must be powerful, so that it explains as much of the data as possible without sacrificing accuracy.
It must be fertile, so that it suggests new ideas, opportunities for insight.

18. Asking Questions Different techniques, different questions.
How you ask makes all the difference.
Can potential study participants understand the question?
Can potential study participants answer the question?
Will potential study participants answer the question?

19. Specific Guidelines for Asking Questions
BRONS guideline for evaluating questionnaires
Brevity
Questions should contain 20 words or less
Relevancy
Every question and every word in every question has a cost associated with it.
Objectivity
Avoid leading, imbalance, and insufficient information
Nonambiguity
Avoid use of unfamiliar words or those with multiple meanings
Specificity
Provide necessary information without overburdening respondents

20. Conducting International Consumer Research
It is important to remember that differences in the sociocultural environment and other environmental factors may lead to differences in the formation of perceptions, attitudes, preferences, choices, and behaviors.
Cross-national consumer research is especially difficult because the researcher is attempting to produce comparable data in two different countries.
International consumer research is extremely important to companies that market global brands.
To collect comparable information, researchers may have to use nonidentical methods because of differences between the cultures.

21. Questions to Ask in Constructing Cross-Cultural Research Instruments
Is the word or concept relevant in both cultures?
Is the explicit meaning of the word or concept the same in both cultures?
Are the suggested, implied, or hinted-at meanings of the word or concept the same in both cultures? Is there congruence between cultural experiences with the word or concept?
Are both cultures equally experienced and fluent with the research techniques employed?

22. Conducting Research on the Internet
Automate
Ford Motor Company could collect and analyze consumer complaints on line.
Inform
A researcher could include a “pop-up window” in a web-based survey to provide definitions and explanations for respondents who request such information.
Transform
Virtual focus group interviews have the potential to revolutionize the research industry by overcoming constraints of time and place.

23. Guidelines for Ethical Consumer Research Practice
Expect and prepare to encounter ethical dilemmas in consumer research.
Do not harm participants physically, emotionally, or psychologically.
Do not deceive participants.
Ensure that participation is willing and informed.
Employ proper research procedures.
Hold data in confidence.

24. Guidelines for Ethical Consumer Research Practice (continued)
Be guided by ethical maxims.
Where possible, debrief participants about the true purposes of disguised research.
Do not overpromise the benefits of research.
Do not distort research results to please clients.
Refuse to conduct research you consider unethical.
Be clear about your values, because no research is value-neutral.

25. Key Terms accurate applied consumer research automate
basic consumer research
BRONS guidelines
causal research
consumer behavior research
cookie
data mining
database
depth interviews
descriptive research
efficient
ESOMAR
ethical
ethnography
experiments
exploratory research
extranet
focus groups
inform
international consumer research

26. Key Terms (continued) Internet intranet multicountry consumer research
observational techniques
primary data collection
projective techniques
qualitative techniques
relevant
research design
secondary data collection
single-country consumer research
survey research
syndicated data
timely
transform