1. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 1 Consumer Research Methods Methods of consumer research Primary research methods Advantages and disadvantages of each method

2. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 2 Two Research Methods Secondary: use of existing research already done –Government –Consulting firms –Newspaper and magazine articles Primary: creation of specific studies to answer specific questions

3. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 3 ABI Inform Specializes in business related publications Search choices –Subject terms “Snow-balling”  new subject terms –Personal Name –Product Name, Company Name –Abstract –“All basic search fields”

4. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 4 Snow-balling example Subject=Asian + Subject=Advertising  Television stations, Television markets, Asian Americans, Television Advertising, Studies, Minority & Ethnic Groups

5. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 5 Lexis-Nexis (Academic) From within Lexis-Nexis, select “Guided Search” –Several different options—e.g., “General News” vs. “Business News” Allows for search through full text

6. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 6 Business & Industry Great coverage of trade journals Excellent indexing of articles by –Country/region –Industry –Business/marketing concept—e.g. “Consumer marketing” “Market Research” “Teen Market”

7. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 7 Other Industry and Company Info –Not as useful for this course but good for job hunting Hoover’s –Identify competitors, industry Standard and Poor’s Industry Surveys Some print sources: –Best Customers –Statistical Abstracts Country information –Stat-USA –Economist Intelligence Unit

8. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 8 Other Sources When You Do Not Have Access to Lexis-Nexis/ABI –Newspaper back indices—usually have to pay for older articles –Business Week online and other business periodicals –Google news: current articles only http://news.google.com/

9. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 9 Primary Research Methods Surveys Experimentation Focus groups In-depth interviews Projective techniques Physiological Measures

10. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 10 Surveys Planned questions –Open-ended –Closed-ended Sample size and inferences Forms –Mail –Telephone –Mall Intercept –Computer/Internet Biases –Wording –Response –Interviewer

11. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 11 Computer/Online surveys Getting people to follow instructions Opportunities for branching (contingent questions) Sampling frame and response Possible emerging opportunities –Correlating data on which not all respondents have answered the same questions

12. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 12 Experimentation Real world relevance vs. control (internal vs. external validity) “Treatments” and factorial designs Sample sizes and inferences

13. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 13 Focus Groups Groups of 8-12 consumers assembled Start out talking generally about context of product Gradually focus in on actual product

14. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 14 In-depth interviews Structured vs. unstructured interviews Generalizing to other consumers Biases

15. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 15 Projective Techniques Measurement of attitudes consumers are unwilling to express Consumer discusses what other consumer might think, feel, or do

16. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 16 Observation Consumer is observed-- preferably unobtrusively-- while: –Examining products prior to making a purchase –Using a product –Engaging in behavior where the product may be useful

17. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 17 Physiological Measures Devices attached to the consumer to measure –Arousal –Eye movement Consumer feedback –Lever pulled to positive or negative positions –Squeeze on ball

18. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 18 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!

19. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 19 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., are tall women more or less likely to wear high heels?

20. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 20 Confounds What is cause, what is effect, and what is coincidence? Correlation is not necessarily cause “Lurking” factors may be real cause of 26 –Does having more toys cause children to be more intelligent? –Are tall women more or less likely to wear high heels? –Do vaccinations cause autism? –Does Prozac cause suicide? –Do fish-heavy diets cause stomach cancer?

21. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 21 Issues in International Primary Research Social desirability/ willingness to “stand out” ---> need to adjust data Willingness to criticize products Familiarity with being surveyed New technologies (e.g., scanner data) - -usually less well developed than in the U.S. Reachability of respondents Selection of appropriate respondent

22. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 22 Why We Buy Chapter 1: “A Science Is Born” “Trackers” High vs. low tech tools Massive database Repetitive, non- glorious work

23. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 23 Chapter 2: “What Retailers Don’t Know” Conversion rates What do managers actually know—or think they know? Knowing the neighborhood Waiting line

24. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 24 Chapter 3 “The Twilight Zone” The Transition Zone Effects of automatic doors Productive uses of the transition zone Tradeoffs in real life

25. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 25 Why We Buy Ch. 4—”You Need Hands” Important to visualize the consumer in actual shopping situation Some purchases may not be important enough to warrant logistics—must make it easier to reach products Where to place baskets in stores? Disneyland’s experience—thinking like a visitor

26. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 26 Ch. 5 “How to Read a Sign” Objectives –Get shoppers’ attention –Induce to look and shop –Deliver useful and understandable info McDonald’s menus—prime exposure opportunities CNN Airport television sets

27. MKTG 371 RESEARCH METHODS Lars Perner, Instructor 27 Ch. 6“Shoppers Move Like People” Why not be next to a bank? What do mirrors do to walking traffic? Chevroning— advantages and disadvantages