Exam #3 Consumer research

Marketing research

the function that links the consumer,

customer and public to the marketer through information

• Information used to identify and define marketing opportunities

and problems; generate, refine and evaluate marketing actions;

monitor marketing performance; and improve understanding of

marketing as a process

• Every marketing decision should be based on facts

• Marketing research is about gathering those facts

• Marketing information should be gathered constantly

Marketing research process

1. Define the Problem and Objectives

2. Determine the Research Design

3. Implement the Data Collection Process

4. Interpret and Analyze Results

5. Communicate Findings

Define problem and objectives

Define the problem to be solved and specify research

objectives.

• This stage is essential. If not done properly, unnecessary or

inadequate data may be collected.

• One problem can produce multiple research objectives

• Always consider the management decision prompting the need for

research…why is this information important, what will be done with

the information, etc.

• Problem: Declining church attendance

• Objectives: What needs are people trying to fulfill with church?; How

many members are satisfied with church x?; If we add music, will more

people attend?

Research design

• Always start with secondary data

• If objective is not satisfied with secondary, consider primary data.

Research design: Three kinds of studies

Exploratory → formulate marketing questions → focus groups, interviews

Descriptive → obtain large scales of stats → surveys, scanner data

Casual → study effects of manipulating 4 ps → experiment

Types of study/research: Exploratory Research

• Gain a basic understanding of the problem’s dimensions

• Ex: give insight into motivations, behaviors, attitudes; obtain range of

responses

• May provide insight/basis for future research

• Relatively quick and inexpensive to conduct

• Good for idea generation, refining ideas, understanding why

• In-depth interviews, focus groups, secondary research, open ended surveys

• Example: What needs are people fulfilling with church?

types of study/research: Descriptive Research

Describe characteristics of a population

• Who, what, where when and how

• Descriptive research can be characterized as being more rigid than

exploratory research

• Researchers should already possess a solid understanding of the

dimensions and nature of the research problem.

• Longitudinal: Gain information through a panel of participants that is

measured repeatedly over time.

• Cross sectional: Gain information thorough a sample of participants at

one point in time. This is the best known and most widely used form of

descriptive research.

• Example: How many members are satisfied with church x?

types of study/research: Casual research

• Identify cause and effect relationships among variables

• If x occurs, then y will occur.

• For a causal relationship to be determined, all other possible

explanations need to be eliminated

• Experimental research:

• Manipulate independent variable and measure dependent variable

(outcome)

• Control extraneous variables

• Random assignment

• Correlation DOES NOT equal causation

• Example: If we add music, will more people attend?

Quantitative

Research that uses mathematical analysis. Typically

research analysis is done using measurable and numeric standards

• Most surveys, cluster analysis, multi-dimensional scaling, conjoint

analysis, etc

Qualitative

Research whose findings are not subject to

quantification or quantitative analysis. Its research conclusions

are not based on precisely, measurable statistics but on more

subjective observations and analysis

• In-depth interviews, some observation, focus groups, etc.

Research design (2)

Consider the marketing decision being made when choosing

research design

surveys

• Surveys should be short to enhance response rate

• Responses should be confidential

• Responses should not be used for subsequent sales

• Participants can be consumers or B2B customers

• Surveys can be administered in person, over phone, online, etc.

Survey: open-ended questions

Use for exploratory, qualitative research

Survey: Closed questions

• Questions that have stated alternative (Bus 335)

• Use for descriptive, quantitative research

Developing closed ended surveys

1. Write questions

2. Pre-test survey with participants

3. Test results for validity: Do questions (scale) measure the

concept that they should be measuring

• Use factor analysis

• Factor analysis examines strong and weak correlations to identify

underlying factors common to the survey responses

3. Test results for reliability

• Do questions (scale) measure the same concept

• Internal consistency: assesses the consistency of results across items

within a test – use Cronbach’s alpha

• Consistency between questions asking about frustration and anger

• α ≥ 0.7 is usually considered acceptable

• Inter-rater reliability: assesses the degree of agreement between two or

more raters in their appraisals

4. Refine survey and retest with new participants!

Validity

Factor analysis

• Correlation matrix: shows relationship between two variables

• 0 = no correlation

• 1 = perfect positive-as one variable increases other increases in fixed proportion

• -1 = perfect negative-as one variable increases other decreases in fixed proportion

Cluster Analysis

Clustering

• Form groups within groups of customers, who are similar with

regard to what the group is seeking and different across groups

• Each group has different attributes

• Often used for segmentation

• Determine if segment exists that may donate to a NPO that

funds higher education

• Administer a survey

• Survey results

• Customer 1 is interested in donating to environmental and

medical causes; does not feel higher education is too expensive

Perceptual mapping

• Positioning studies are used to understand customer

perceptions of brands in the marketplace

• Perceptual maps assist in positioning

• They give pictures of competing brands and attributes

• Two approaches

• Attribute-based approach

• Multidimensional scaling (MDS)

Perceptual mapping: attribute

-positioning studies are used to understand customer perceptions of brands in the marketplace

Multidimensional scaling

starts by asking “How similar are these 2 brands”?

-asks for each pair of brands

-then, each brand is rated on attributed and results are plotted

conjoint analysis

-conjoint studies are run to understand how consumer make trade-offs

-what do customers really want if they can’t have all the features and a cheap price

-used in new product design, brand, line extensions, pricing, branding, etc.

Ex.) consumers are asked to rate or rank the following eight combinations from most to least preferred

scanner Data

When stores scan purchases, they know:

-what you bough; how much of everything you bought; what brands you bought; how much you paid for everything; what you bought previously

-loyalty cards

-this data can be supplemented by obtaining data on competing brands, consumer panel data, etc.

can be used to:

-forecast demand

-watch responses to marketing mix changes

-watch responses to marketplace changes

Scanner

Experiment:

-Manipulate independent variable

-control other variables

-measure change in dependent variable attributable to change in independent variable

Naturalistic Observation

• Do not manipulate but constantly monitor

• Difficult to attribute changes to one action due to lack of control

• Naturalistic observation has high external validity

indepth interview

In-depth interviews (IDI)

• One-on-one interviews that probe and elicit detailed

answers to questions, often using non-directive techniques

to uncover hidden motivations

• Advantages:

• Group pressure is eliminated

• Participant can be questioned at length

• A singular viewpoint can be obtained without influence from others

• Greater flexibility to the direction of questioning

• Interviewer becomes more sensitive to nonverbal feedback

• Interviews can be conducted anywhere

• Disadvantages

• Costs in terms of time and money

• Some participant reactions cannot be generated without influence from others

• May inhibit idea generation

Observation

Observational Research

• The systematic process of recording patterns of occurrences or

behaviors without normally communicating with the people

involved

• Conditions needed

• Needed information must be either observable or inferable

• Behavior should be repetitive, frequent, or in some manner

predictable

• Behavior must be relatively short in duration

Observation: Pros/Cons

Pros

• See what people actually do - rather than what they say they do

• Firsthand information is less prone to biases

• Observational data can be executed quickly and relatively accurately

• Clients can also observe their customers along with the researcher

Cons

• Only behavior can be measured

• Can’t measure attitudes, beliefs, intentions, or feelings

• Not always a good representation of the general population

• Interpretation is somewhat subjective depending on observation type

• It can be expensive and time consuming if subjects not readily available

• Data can be time sensitive making predictive analysis tricky

• Shopping behavior during weekday may be different than evening

Focus groups

Exploratory technique where 8 to 12 participants discuss their

perceptions, beliefs, attitudes, etc. toward a product (or any

element).

• The group is led by a moderator who follows a rough outline of

topics that needs addressed.

• Participants interact with one another.

• Not good for predicting marketplace response

• Best to follow up focus groups with a survey

focus group uses

Examples of uses for focus groups

• customer satisfaction

• needs assessment

• obtaining new ideas

• understanding concerns

• generating surveys

• understanding decision making

• testing new ideas

• evaluating outcomes

• understanding quantitative data

• ….etc.

Focus Group Non-Uses

Do not use focus groups

• to obtain consensus or educate group

• to ask for sensitive information

• to obtain statistical projections or make accurate predictions

• with polarized views

• when other methodologies are better suited or cheaper and can

produce same quality of information

focus groups: pros/cons

Pros

• Interactions among participants can stimulate new ideas

and thoughts

• Client has opportunities to observe participants through

one-way mirrors

• They can be executed more quickly than many other

research techniques

• Cons

• Managers can be misled instead of informed

• Recruiting for focus group participants can be a problem

Focus group planning

a) Determine the purpose

b) Identify participants

c) Develop & test questions

d) Develop the discussion guide

e) Determine the facility

f) Get participants to attend

determining the purpose

Obtain a clear understanding of what the client wants

• Be sure that the client understands what can reasonably be

delivered

• Questions to ask the client

• What is the purpose of the study?

• What kinds of information do you want?

• What is the background of the proposed study?

• How will you use the information?

• What prompted you to consider the study?

• What questions would you ask?

identifiy participants 2B

Develop appropriate screens

• Screens: attributes utilized to select focus group participants

• Depend upon research question

• Ask the client for ideas who should participate and why

• Belong to the same church, specific ages, etc.

-Participants should have some diversity

• The goal is to have a range of responses

- Determine the size of groups

• Usually 8-12 people

• Greater than 12 is hard to control and limits individual contributions

• Mini-groups are also popular with 4 – 6 people

• With more interest and/or more knowledge, use smaller groups

• With less interest and/or knowledge, use larger groups

identify particiapants 2B(2)

Designs

• Single category design: 1 audience

-Current customers

• Multiple category designs: more than 1 audience

- Use when you want to compare across categories

- Current customers and potential customers

• Double layer design: more than 1 audience within a category

•-Use when you want to compare across multiple layers

•-Eastern US-current/potential; Western US-current/potential

• Determine the number of groups

• General rule of thumb: 3 – 4 groups

• Stop when reach saturation; consider resource availability

• Find people who fit the screens

• Ask client for names, purchase lists, hire external firm, etc.

• Focus groups do not usually include a random sample!

Develop questions

A 1.5 to 2 hour focus group generally includes around 10

questions

• 3-6 key questions

• Ask the client:

• What are some good questions to ask?

• Why do you think these are good questions?

• What do you think of these (…..) questions?

good questions

Are clear, short, open-ended, easy to say

• As a general rule: yes/no questions cannot be analyzed

• Do not ask two part questions

• Should sound conversational and flow naturally

• Should use common words, not jargon & technical lingo

• Should move from broad to more specific questions

opening questions

Goal is to get people talking-help them feel comfortable

• Ask easy question for everyone to answer

• Ask a question that will generate a thirty second response

• Ask for facts not attitudes-attitudes take too long to answer,

require stories, etc.

• Don’t ask questions that will reveal power or status, occupation,

age, experience level, etc.

• Tell us your name and where you are from

Introductory

• Goal is to introduce the topic of discussion and get people to start

thinking about their connection with the topic

• These questions should encourage conversation

• They should be open-ended so participants can tell how they see

or understand the issue

• What were your first impressions about airline x?

• When you think about airline x, what is the first thing that comes

to mind?

key questions

Key questions (bulk of focus group)

• The most important questions; focus on objectives

• Generally, there are three to six questions

• They are usually the first to be developed and the ones that

require the greatest attention

• Allow ten to twenty minutes for each question

• What characteristics do people consider when choosing an

airline?

• What do you like best about airline X?

closed questions

Bring closure to the discussion

• Use question to enable participants to reflect on previous

comments

• This ensures that all critical components are covered

• What do you think is really important for airline X to know?

• Give a short summary of the responses to the key question and

then ask…What did I miss?

Probes

Clarify respondents’ answers

• Tell me more

• Give me an example

• Help me understand, etc

prompts

Give participants a cue to respond to if they haven’t

talked about it already

• We discussed speed of service and taste, what about location? What

about price?

• Make sure you highlight prompts in the discussion guide

brainstorming

• Invite a few people to brainstorm key questions

• Moderator, client, others who have some expertise in the topic

• Review the purpose/objectives of the focus group and the intended

audiences

• Record all ideas

Phrasing

One or two people refine the questions

• Utilize open-ended questions as much as possible. The answer

should not be implied.

• Avoid: Yes/no, how much, to what extent, etc.

• Consider the following:

• What did you think about x?

• How did you feel about x?

• Where do you get information about x?

• What do you like best about x?

• What do you like least about x?

Phrasing, cont.

• Ask participants to “think back” so that they will focus on their

experiences

• Think back when you joined x, what attracted you to x?

• Avoid asking “why”

• “Why” implies a rational answer so the subject may intellectualize his answer;

may be viewed as confrontational

• Instead ask what or how people feel about the topic

• Keep questions simple

• Think of the shortest and clearest way to ask a question

• Avoid two part questions

• Avoid questions with multiple interpretations

• Be cautious about giving examples

• Although examples may give an idea about the type of answer that you are

looking for, they may also limit the thinking on the respondent’s part

• Use examples only after participants have given their responses in order to

prompt/probe for more details

Sequencing

Order the questions appropriately

• Start by asking general questions then follow with specific

questions

• General questions help to give the context of the responses that you

are looking for

• General: What do you like about church?

• Specific: What do you like about x church specifically?

• Ask unprompted questions before prompted questions

• Unprompted: What are the needs of people who attend x?

• Prompted: What are the needs of mothers who attend x?

• Ask positive questions prior to negative questions

• It allows participants to comment on both sides of the topic

• Positive: What do you like? Negative: What don’t you like?, etc

timing

• Estimate the time that each question should take

• Make sure that you don’t have too many questions

• Have back-up questions in case you have too much time

• Leave time for in-depth discussion

• Consider the size of the group, the level of expertise in the group,

the types of questions, the complexity of the questions and the

level of discussion you want for the question

• Larger groups mean more time for each question

• Allow 5 - 10 minutes at the beginning for people to arrive and get

comfortable

reviewing

Review and edit the questions

• Obtain question feedback from the original brainstorming group

and client

• Ask the following:

• Are they the right questions?

• Are they understandable?

• Do they flow appropriately?

• Are the words appropriate?

• Is anything missing?, etc.

test and revise questions

Test the question on people who fit the screens

• How easy is it to ask the question?

• Do the words flow smoothly?

• Is the question confusing to participants?

• Do they give expected types of answer?

• Do they have to ask for clarification?, etc.

• Make any necessary changes to questions and re-test

Develop discussion guide

• Discussion guide headings (See example)

• Prior participant activities performed (if applicable)

• List anything that participants completed prior to the focus group

(visit the store, browse the website, etc.)

• Welcome, background, and ground rules

• Write everything you intend to say (see next slide)

• Opening question (x mins)

• Introductory question (x mins)

• Key questions (x mins & breakdown mins for each)

• Closing question(s) (x mins & breakdown mins for each)

• Remember..

• Each question should be written exactly as tested with expected question time

• Necessary prompts (if applicable) should be listed under relevant question(s)

• Any activities that will be implemented by the moderator should be discussed

in sequence with the questions

• Participants view website, participants examine the product, etc

demographic survey

• A demographic survey should be attached to the discussion guide

• The agreed upon screens must be part of the survey

• Additional survey items may include common demographic info

• Age, gender, income, profession (major for students), education

level, etc.

• ALWAYS get approval from client on discussion guide and

demographic survey PRIOR to conducting focus groups

determining the facility

• An ideal focus group facility should have the following:

• A conference room for the moderator and participants to interact

• A separate observation room with a one-way mirror and live

audiovisual feed so client can view focus group and direct

moderator if necessary

Get participants to attend

Ask the client

• What would it take to get people to participate?

• Where would be the best place to hold the groups?

• When would be the easiest time for the participants to come?

• Who should invite the participants?

• In general, try to piggyback the focus groups to another event

so that participants are willing to attend

• Incentives may be necessary because time is valuable

• Immediate cash payment is most common incentive

• $10 – $15 may be too low

• $25 –$50 is acceptable for non-profits, students, etc.

• $100 – $200 for professionals

Get participants to attend, cont.

• Utilize personalized invitations & follow-up reminders

• Make personal contact with potential participants

1. First contact should be at least 2 weeks prior

• Utilize an existing relationship if possible, “Joe from the church gave me your

name”

2. Follow-up one week before

3. Make a reminder phone contact the day before

• “Just wanted to remind you that we are looking forward to seeing you at x

tomorrow.”

• At a minimum, include the following info in recruiting script

• Introduce inviter (you, client, Joe, etc.)

• Request participation

• Discuss where and when FG will be held & how long FG should last

• List any incentives that may be given

• Advise that responses will be kept confidential (if applicable)

focus group moderation

• Sessions are usually taped and often transcribed

• Observers jot down impressions

• What to bring:

• Discussion guide & guide for note taking

• List of participants

• Demographic survey

• Audio/video recorder & back-up recorder

• Audio/video tapes (120 minute) & batteries

• Pencils/Paper

• Name tents & markers

• Watch

• Refreshments (at least water)

• Coloring books/crayons

Focus group moderator

• Avoids serial interviewing

• Speaks loudly and clearly

• Shows respect

• Keeps the discussion going and curtails tangents

• Brings out quieter members

• Controls overbearing members

• Introduces the next question, when the discussion dwindles

(assuming enough information has been obtained)

participant arrival

• Have the environment completely prepared

• Welcome participants and make them feel comfortable…smile

• Introduce participants to one another and offer refreshments

• Have participants fill out forms immediately upon arrival

• Use small talk such as sports, children, weather, etc.

• Do NOT bring up the focus group topic

• If subject expresses himself once, less likely to do so again

• Note dominating or shy individuals

• Seat shy individuals in direct eye contact with moderator

• Seat dominating individuals next to the moderator

• After small talk, “randomly” place name tents for each subject where

you want them to sit

recording

• Video or audio record focus groups

• Pre-test the equipment and placement of the equipment to be

certain that it works and that the sound is audible

• Make sure to continuously monitor the recorder

• Taking notes

• Have an assistant take written notes

• Use discussion guide questions with extra spacing for notes

• Jot down key responses/themes to each question

• Signal moderator to return to questions that didn’t produce

enough information or had vague responses OR have assistant

ask questions at the end

interpert/ analyze results

• Analysis is based on pattern identification

• Develop categories based on responses

• Analysis should be systematic and sequential

• Process should be documented, understood and able to be

clearly articulated

• The question, “How did you come up with that?,” should be easily

answered

• Analysis should be verifiable

• Multiple researchers should arrive at similar conclusions

interpret/ analyze results, cont.

Analysis should be a continuing process

• Analysis begins with first focus group and is done concurrently

with data collection

• Allow time between focus groups for analysis

• Analysis includes all data

• Notes taken during the focus groups, recordings, the oral

summary of key points, and transcripts

• Analysis methods

• Transcription-based

• Transcribe verbatim the entire focus group

• Tape-based

• Listen to tape and develop an abridged transcript of the relevant

portions of the discussion

• Note-based

• Rely primarily on notes taken during the focus groups

• Use recordings as a back-up

• Advantage: speed

• Disadvantages: not as thorough, lose participants’ voices

• In my opinion, this isn’t a real option!

transcription based method

• Transcribe the focus groups

• Number each line of the transcript

• Label when speaker changes

• M: Describe your least favorite experience.

• F20: When I went to talk to the salesperson, he tried to

• convince me that I didn’t know what I was doing. I felt

• that he belittled me because I was a woman. He said that

• women didn’t really know how to shop for a car

• Have copies for each researcher-at least one electronic copy

• As a team, read through the transcript

• For example, all researchers read lines 1 through 15

• Each researcher should categorize these lines

• Once each researcher is finished, results should be shared and category

consensus should be reached

• Copy and paste the participants statements into categories

• Statements can be categorized around objectives, questions, etc.