1. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-1

2. Categories of Research Quantitative research: research involving the use of structured questions in which response options have been predetermined and a large number of respondents involved Qualitative research: research involving collecting, analyzing, and interpreting data by observing what people do and say Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-2

3. Categories of Research Pluralistic research: combination of both quantitative and qualitative research methods in order to gain the advantages of both Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-3

4. Observation Techniques Observation methods: techniques in which the researcher relies on his or her powers of observation rather than communicating with a person in order to obtain information Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-4

5. Observation Techniques Types of observation: – Direct versus indirect – Disguised versus undisguised – Structured versus unstructured – Human versus mechanical Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-5

6. Observation Techniques Direct observation: observing behavior as it occurs Indirect observation: observing the effects or results of the behavior rather than the behavior itself – Archives – Physical traces Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-6

7. Observation Techniques Continued… Disguised observation: subject is unaware that he or she is being observed, i.e. Mystery Shopping Undisguised observation: respondent is aware of observation, i.e. Arbitron’s PPM to monitor media to which a consumer is exposed Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-7

8. Observation Techniques Continued… Structured – researcher identifies beforehand which behaviors are to be observed and recorded. Often there is a checklist. Unstructured – all behavior is observed and the observer determines what is to be recorded. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-8

9. Observation Techniques Human versus Mechanical Human observation: observer is a person hired by the researcher, or, perhaps the observer is the researcher Mechanical observation: human observer is replaced with some form of static observing device Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-9

10. Observation Techniques Appropriate Conditions for Use Short duration…event must begin and end in a reasonably short time. You cannot “observe” a process of purchasing that lasts months. Public…cannot observe private behaviors. Faulty recall conditions…behaviors are so “automatic” that consumer cannot recall them. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-10

11. Observation Techniques Advantages of Observational Data Insight into actual, not reported, behaviors No chance for recall error Better accuracy Less cost Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-11

12. Observation Techniques Limitations of Observational Data Small number of subjects Subjective interpretations Inability to pry beneath the behavior observed Motivations, attitudes, and other internal conditions are unobserved…we don’t know why? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-12

13. Home Depot: An Example of Direct Observation Shopper/Store Use Profile Average time in store:32.4 (minutes) Customer party size:1.2 (persons) Average expenditures:57.34 (dollars) Payment method73.0% (credit card) Number of aisles traveled: 5.7 Requests for assistance:0.5 Stops and looks at items5.4 Items handled per stop2.1 Total items handled9.3 Items purchased2.5 Product Categories of Purchases Appliances10% Hand tools22% Electrical31% Plumbing14% Roofing3% Garden35% Other26% We know WHAT BUT, We don’t know WHY! Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-13

14. Focus Groups Focus groups are small groups of people brought together and guided by a moderator through an unstructured, spontaneous discussion for the purpose of gaining information relevant to the research problem. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-14

15. Focus Groups The moderator’s task is to ensure that open discussion is “focused” on some area of interest. Focus groups are used to generate ideas, to learn the respondents’ “vocabulary,” and to gain some insights into basic needs and attitudes. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-15

16. Types of Focus Groups Traditional: Select 6 to 12 persons and meet in a dedicated room with one- way mirror for client viewing, for about two hours. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-16

17. Types of Focus Groups Nontraditional: Online with client viewing from distant locations; may have 25 or even 50 respondents; allow client interaction; may take place in nontraditional locations. Online focus groups are a form of nontraditional focus groups. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-17

18. Focus Groups Online Focus Groups Online focus group: one in which the respondents and/or clients communicate and/or observe by use of the Internet Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-18

19. Focus Groups Online Focus Groups Advantages: – No physical setup is necessary – Transcripts are captured on file in real time – Participants can be in widely separated geographical areas – Participants are comfortable in their home or office environments – The moderator can exchange private messages with individual participants Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-19

20. Pros of Focus Groups Generate fresh ideas Allow clients to observe their participants May be directed at understanding a wide variety of issues Allow fairly easy access to special respondent groups Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-20

21. Cons of Focus Groups Representativeness of participants Interpretation sometimes difficult High cost per participant Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-21

22. The Proper Use of Focus Groups Focus groups should not be used when the research objective is to predict a specific number based upon sample data. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-22

23. The Proper Use of Focus Groups Focus groups should be used when the research objective is to describe rather than predict. – How do consumers describe a better package? – How would they describe their satisfaction with our service? – How could they describe their ideas for an ad campaign? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-23

24. Operational Uses of Focus Groups Size: 6 to 12 Who: homogeneous Recruiting: use incentives Selection: what is purpose? Where: conducive to group discussion When moderator gets involved: early Reporting results: report qualitative data Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-24

25. Focus Groups Reporting and Use of Results Factors to remember when analyzing data: – Some sense must be made by translating the qualitative statements of participants into categories and then reporting the degree of consensus apparent in the focus groups Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-25

26. Focus Groups Reporting and Use of Results Factors to remember when analyzing data: – Demographics and buyer behavior characteristics of focus group participants should be judged against the target market profile to assess what degree the groups represent the target market Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-26

27. Focus Groups Reporting and Use of Results A focus group’s analysis should identify major themes as well as salient areas of disagreement among the participants Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-27

28. Other Qualitative Techniques Depth interview is a set of probing questions posed one-on-one to a subject by a trained interviewer so as to gain an idea of what the subject thinks about something or why he or she behaves a certain way. Laddering attempts to discover how product attributes are associated with consumer values. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-28

29. Other Qualitative Techniques Protocol analysis involves placing a person in a decision-making situation and asking him or her to verbalize everything he or she considers when making a decision. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-29

30. Other Qualitative Techniques Projective techniques involve situations in which participants are placed in (projected into) simulated activities in the hopes that they will divulge things about themselves that they might not reveal under direct questioning Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-30

31. Other Qualitative Techniques – Word association test – Sentence completion – Picture test – Cartoon or balloon test – Role-playing activity Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-31

32. Sentence Completion Example INSTRUCTIONS. Write in words to complete each of the sentences below. For college students, credit cards are… College students use credit cards to… When a college freshman gets a new credit card application, he/she… When a college student reaches the limit of his/her credit card, he/she… When a college senior gets a new credit card application, he/she… If parents of college students learned about their children’s credit card situations, they would… Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-32

33. Physiological Measurements Physiological measurements: involves monitoring a respondent’s involuntary responses to marketing stimuli via the use of electrodes and other equipment – Pupilometer – Galvanometer Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 8-33