Marketing Chapter 4 & 5 (Market Research & Consumer Behaviour)

Marketing Research Process

What are the 3 functional roles market research/analysis plays in an organization?

1. descriptive (factual statements)

2. diagnostic (relationships within data)

3. predictive (predicting results of decision)

Marketing Research Process — Step 1: Identify and Formulate

• determine if there is enough info to define problem

• output (results) depend on input

• “garbage in, garbage out”

Marketing Research Process — Step 2: Plan Research Design & Gather Secondary Data

Research Design → what questions to answer, gather, analyze

Secondary Data → data that already exists, internal in org but external publicly

Research Design Process — Types of Research

Exploratory: informal, gain insights of problem

• collection of secondary and qualitive data

e.g. case studies, focus groups, expert interviews

Conclusive: attempts to provide clarity, identify course of action

• descriptive (describe marketing characteristics - used in business)

  • collection of quantitative data

• casual (cause and effect of 2 variables, find relationship - used in academic research and environments)

• collection of qualitive data

Marketing Research Process — Step 3: Specify Sampling Procedures

Sample → subset from large population

• opinions, behaviours, attitudes, preferences

Must be representative of population

• if YES = probability sample (every element could be selected)

• if NO = nonprobability sample (little or no attempt)

Marketing Research Process — Step 4: Collect Primary Data

Primary: new info collected (through Qualitive and Quantitative)

Quantitative (needs to clear aspect of problem, requires understanding)

• survey research (online, mail, telephone)

• observation research (mystery shoppers)

Qualitive (needs specific numbers, to analyze data to provide stats info)

• depth interview (one to one)

• focus group (small groups, guided discussions)

Marketing Research Process — Step 5: Analyze Data

• interpret, draw conclusions from the collected data

• organize and analyze by techniques (proportion, regression)

Marketing Research Process — Step 6: Prepare & Present

clear, concise statement of

• research issue studied

• research objectives

• brief explanation of research design employed

summary of major findings, build case how problem solved

Marketing Research Process — Step 7: Follow Up

conducted whether marketing researcher is external or internal provider

• Internal (answer further questions, support decisions)

• External (schedule follow-up with client to manage relationship)

Types of Primary Data

Second vs Primary Data

Impact of Tech on Marketing Research

Different Categories of Data

Structured (easily defined and organized)

• similar to info found in excel sheet (clear category, precise values

e.g. customer lists, sales transactions, demo data, webs

Unstructured (not easily defined and organized)

• contents of data that does not belong to clear category, undefined values

e.g. audio, video, photos, slides, social media posts, blogs, emails

Data Mining

sorting through large sets of data to find patterns and relationships

Consumer Behaviour

how consumers

• make purchase decisions

• use/dispose of purchased goods/services

• can be affected by factors that influence decisions and product use

  • price, environment impact, value, view of themselves

Consumer Decision Making Process

Consumer Decision Making Process — Step 1: Need Recognition

Need Rec: result of imbalance between actual/desired states

• imbalance, triggered when expose to internal or external stimulus

Internal Stimuli → within your body (hunger or thirst)

External Stimuli → influences from outside source

e.g. rec of restaurant, design of package, advertisement on TV

Consumers recognize unfulfilled needs in various ways…

• when a current isn’t performing properly

• when the consumer is about to run out of something, generally kept on hand

Consumer Decision Making Process — Step 2: Info Search

Internal → recalling info stored in one’s memory

External → process of seeking info in outside environment

• nonmarketing controlled (doesn’t originate from company)

  • personal experience, personal sources, public sources

• marketing controlled (originates within marketers promoting)

  • sales promotion, packaging/labelling, social media

• consumer to consumer (past consumers post reviews)

  • C2C transparent and willing

Consumer Decision Making Process — Step 3: Evaluation of Alternatives & Step 4: Purchase

Consumer will

1. use info in memory or obtained from outside sources to develop criteria

2. uses it to evaluate and compare alternatives

Consumer Decision Making Process — Step 5: Postpurchase Behaviour

Consumers expect certain outcomes from purchase

• depends if purchase was good or not

Fail to confirm decision = Cognitive Dissonance (buyer’s remorse)

• realize inconsistency between behaviour, values, opinions

Marketers have to ensure outcomes meets or exceeds expectations

Types of Consumer Buying Decisions

Factors Determining Involvement Levels

Factors that affect Consumer Buying Decisions

Influences on Consumer Buying Behaviour