CHAPTER 16

Consumer Research

LEARNING OBJECTIVES

After reading, studying and analyzing this chapter, students should be able to understand:
16.1 How to develop research objectives.
16.2 How to collect secondary data.
16.3 Qualitative and quantitative research methods.
16.4 How to combine qualitative and quantitative research.
16.5 How to analyze data and report research findings.

CHAPTER SUMMARY

Learning Objective 16.1: To understand how to develop research objectives.

The first and most difficult step in the consumer research process is to accurately define the
objectives of the research. Is it to segment the market for electronic readers? Is it to examine
consumer attitudes about the experience of online shopping? What percentage of households
shop for food online? Whatever the key research question, it is important for the marketing
manager and the research manager to agree at the outset as to the specific purposes and
objectives of the proposed consumer study. A clearly written statement of research objectives
ensures that the information needed is indeed collected and costly errors are avoided.

Learning Objective 16.2: To understand how to collect secondary data.

Secondary data is existing information that was originally gathered for a research purpose other
than the present research. The rationale for secondary data searches is simply that it makes good
sense to investigate whether currently available information will answer—in part or even in full
—the research question at hand. It seems unwise to expend the effort and money, and rush into
collecting new information before determining if there is any available information that would
provide at least a good starting point. The first source of secondary data is previously collected
in house information that was originally used for some other purpose. It might have originally
been gathered as part of a sales audit, or from past customer service calls, or letters of inquiry
from customers, or collected via warranty cards. The second source of secondary data is
information from sources outside of the firm or organization. They take many different forms.
Some are free and can be found in a public library, other information is available for only a
nominal fee, and still other data or information are quite expensive to secure. The major sources
of external secondary data are: the government, articles from popular, professional, and
academic publications, and syndicated commercial sources.

Learning Objective 16.3: To understand qualitative and quantitative research methods.

Copyright © 2015 Pearson Education

If the purpose of a study is to come up with new ideas for products or promotional themes, the
researchers use qualitative research. Qualitative studies consist of focus groups, depth
interviews, and projective techniques. If the purpose of the study is to find out how many
consumers match the demographics or psychographics of the target market, or the characteristics
of consumers who buy given brands and whether or not they are brand loyal, marketers conduct
quantitative research. Quantitative research includes observation, experiments, and surveys.

Learning Objective 16.4: To understand how to combine qualitative and quantitative research.

Marketers frequently conduct research projects that combine both a qualitative component (often
composed of focus groups and/or depth interviews) and a quantitative component (often
consisting of a survey research). For example, they use qualitative research findings to discover
new ideas and develop promotional strategies, and quantitative research findings to estimate
the extent or amount of consumers who react in a particular way (i.e., positive or negative) to
various promotional inputs. Frequently, ideas stemming from qualitative research are tested
empirically through quantitative studies. The predictions made possible by quantitative research
and the understanding provided by qualitative research together produce a richer and more
robust profile of consumer behavior than either research approach used alone.

Learning Objective 16.5: To understand how to analyze data and report research findings.

In qualitative research, the moderator-researcher usually analyzes the responses received. In

quantitative research, the responses are coded and analyzed statistically. In both qualitative and
quantitative research, the research report includes an executive summary of the findings,
description of the methodology used, and recommendations for marketing actions.

CHAPTER OUTLINE

INTRODUCTION

1. Disney’s Sofia the First, a modern princess which is an “anti-Cinderella,” was the product of
consumer research including interviews, observations, and focus groups. The research
included parents and children.
2. The preparation, use, and wide scale availability of large amounts of consumer research is a
critical force in advancing the discipline of consumer behavior.
3. Research is used to develop marketing messages or to establish which product features are
most important to consumers.
4. This chapter is dedicated to setting out the methodological research issues for planning and
carrying out consumer research studies.

*****Use Figure #16.1 Here *****

Copyright © 2015 Pearson Education

DEVELOPING RESEARCH OBJECTIVES

1. The first and most difficult step in the consumer research process is to accurately define the
objectives of the research.
2. A carefully thought-out statement of research objectives helps to insure that the information
needed is secured and costly errors are avoided.
3. Qualitative research (focus groups, depth interviews) is used if the purpose of a study is to
come up with new ideas for product or promotional themes.
4. Qualitative research is also used before conducting large quantitative studies to help
marketers more precisely define research objectives.

*****Use Learning Objective #16.1 Here*****

COLLECTING SECONDARY DATA

1. The second step in the consumer research process is to search for secondary data.
2. Secondary data is already existing information that was originally gathered for a research
purpose other than the present research.
3. In secondary data can in part or full answer the question, primary research can either be cut
back or avoided.

*****Use Learning Objective #16.2 Here; Use Key Term secondary data Here*****

Internal Secondary Data

1. Internal secondary could consist of previously collected in-house information that was
originally used for some other purpose.
2. Increasingly, companies use internal secondary data to compute customer lifetime value
profiles. These profiles include customer acquisition costs, the profits generated from
individual sales to each customer, the costs of handling customers and their orders, and the
expected duration of the relationship.

*****Use Key Term customer lifetime value profiles Here*****

External Secondary Data

1. External secondary data comes from sources outside of the firm or organization.
2. Following is a brief discussion of some specific types of consumer behavior secondary
information available from outside of the firm:
a) Government Secondary Data.
i) This data is generally made available for a nominal cost.
ii) The federal government publishes information collected by scores of government
agencies about the economy, business, and demographics of the U.S. population.

Copyright © 2015 Pearson Education

 iii) Depositories include FedStats, U.S. Census Bureau, and the CIA’s World Factbook.
iv) State and local government also provide consumer research.
b) Periodicals and articles available from online search services: business-relevant
secondary data from periodicals, newspapers, and books are readily accessible via a
variety of online search engines such as ProQuest and LexisNexis.
c) Syndicated commercial marketing and media research services:
i) Marketing research companies sell data to subscribing marketers.
ii) Secondary data is also provided by companies that routinely monitor a particular
consumption-related behavior, and sell their data to marketing companies who use the
insights to make more informed strategic decision.
iii) New technologies provide opportunities for far more sophisticated monitoring
techniques.
iv) The influence of new technologies will increasingly enable marketers to study
consumers’ media exposure much more precisely and collect data that will allow
them to better customize or narrowcast their promotional messages, thus spending
their advertising dollars more effectively.
d) Consumer panels
i) Secondary data providers collect consumer behavior data from household or family
consumer panels, who record purchases/media viewing habits in diaries.
ii) Data are combined with thousands of households and analyzed by the data providers.
iii) Today, online technology enables panel research companies to increasingly collect
sophisticated data from respondents.

***** Use Key Term consumer panels Here*****

Advantages and Limitations of Secondary Information

1. Advantages
a) May provide a solution to the research problem/eliminate the need for primary research.
b) Can help clarify and redefine objectives of the primary study.
c) Can be obtained quickly and more cheaply than primary data.
2. Limitations
a) Information may be categorized in units that are different from those sought by the
researcher.
b) Information may be inaccurate (due to errors in data gathering, data analysis, and/or
biases).
c) Information may be out of date.

***** Use Review and Discussion Question 16.3 Here*****

DESIGNING PRIMARY RESEARCH

1. If the purpose of research is to get new ideas, then a qualitative study is often undertaken.

Copyright © 2015 Pearson Education

2. If descriptive and quantitative information is sought, then some form of quantitative study is
usually performed.
3. The approach for each differs in terms of methods of data collection, sample design, and type
of data collection instruments.

*****Use Learning Objective 16.3 Here; Use Figure 16.1 Here*****

Qualitative Research

1. Current qualitative research grew out of the rejection of the belief that consumer marketing
was simply applied economics, that consumers were rational decision makers.
2. Those rejecting this view included member of an early school of qualitative consumer
researchers known as motivational researchers.
3. The central tenet of this orientation was that consumers were not always consciously aware
of why they made decisions or weren’t willing to reveal the reasons to themselves or others.
4. Dr. Ernest Dichter was an early leader of this movement.

*****Use Key Term motivational researchers Here*****

5. Sample sizes are necessarily often small, so findings cannot be generalized to larger
populations.
6. Most forms of qualitative research questioning have their roots in open-ended and free-
response types of questioning.
7. The key types of interviews conducted for qualitative studies are depth interviews and/or
focus group sessions.
a) Depth interviews
i) A depth interview, also referred to as a “one-on-one” interview is a somewhat
lengthy non-structured interview between a single respondent and a highly trained
researcher.
ii) The interviewer speaks little, giving the consumer time to express thoughts and
behaviors and to respond to verbal and visual materials.
iii) The research must establish an atmosphere to encourage the consumer to open up.
iv) The researcher probes for responses.
v) Depth interview studies provide marketers with ideas about product design or
redesign, and provide insights for positioning or repositioning products.

*****Use Key Term depth interview Here*****

b) Focus groups.
i) A “discussion group” or focus group often consists of 8 to 10 participants who meet
with a moderator-researcher-analyst to explore a particular product or product
category.
ii) Participants are encouraged to discuss their reactions to product and service concepts,
or new advertising or marketing communications campaigns.

Copyright © 2015 Pearson Education

 iii) Respondents are recruited on the basis of a carefully drawn consumer profile that is
prepared in the form of a questionnaire called a screener questionnaire.
iv) The purpose of the “screener” is to ensure that the appropriate individuals are invited
to participate in the research study, and those who are not the target market are not
invited.
v) Some marketers prefer focus groups because they feel that the dynamic interaction
between participants that takes place in focus groups tends to yield a greater number
of new ideas and insights than depth interview.
vi) It takes less time to complete a series of focus groups than a project of individual
depth interviews.

*****Use Review and Discussion Question #16.5 Here; Use Key Terms focus groups and
screener questionnaire Here; Use Figure #16.3 Here*****

c) Discussion guides
i) A discussion guide is a step-by-step outline that sets out the line of questioning that
the researcher needs to cover with the respondent in a depth interview, or a group of
respondents in the case of a focus group session.
ii) Some moderators prefer to closely follow the guide while others “go with the flow.”
iii) Some researchers will finish with often more information that anticipated.

***** Use Key Term discussion guide Here; Use Figure 16.4 Here; Use Hands-on
Assignment 16.9 Here *****

d) Projective techniques
i) Projective techniques are a useful tool, adapted for studying the unconscious
associations of consumers who may be concealing or suppressing some of their
thoughts or reactions.
ii) Projective exercises consist of a variety of disguised “tests.”
iii) Some of the well established exercise used to “tease-out” true consumer-related
feelings and reflections are:
(1) Word associations.
(2) Sentence completions.
(3) Photo/visuals for storytelling.
(4) Role playing.

*****Use Table #16.1 Here; Use Key Term projective techniques Here*****

e) Online focus groups

i) Over the past 5 to 10 years, there has been a substantial amount of interest in, trial of,
and acceptance of online focus groups and depth interviews.
ii) What is being called an “online focus group,” can vary greatly.

The Scope of Quantitative Research

Copyright © 2015 Pearson Education

1. The broad category of quantitative research includes experimentation, surveys and
observational research.
2. The findings are descriptive, empirical, and, if collected randomly, can be generalized to
larger populations.
3. Observational research is an important research tool because marketers recognize that often
the best way to gain an in-depth understanding of the relationship between people and
products is by watching them in the process of buying and/or using the products. It provides
greater insight into the bond between people and products that is the essence of brand loyalty.
i) It is also important in uncovering issues or problems with a product.
ii) Consumers are generally either watched by researchers or mechanical or electronic
devices such as counting or video recording devices are used to capture customers’
behaviors or responses to a particular marketing stimulus.
iii) Marketers also use physiological observation devices that monitor respondents’
patterns of information processing.

*****Use Discussion Question #16.7 Here; Use Key Terms observational research and
physiological observation Here*****

b) Experimentation
i) There are a variety of different experimental designs that a researcher needs to select
from in formulating a particular consumer-related experiment.
ii) In the simplest form of experiments (causal research), only one variable is
manipulated (called the independent variable) while all other elements are kept
constant.
iii) A controlled experiment of this type ensures that any difference in the outcome (the
dependent variable) is due to different treatments of the variable under study and not
to extraneous factors.
iv) A major application of causal research is test marketing, a logical next step after
conducting depth interviews, focus groups, and survey research and prior to
committing to a full-scale marketing rollout.

***** Use Key Terms experiment, controlled experiment and test marketing Here*****

c) Survey research
i) Following is a list of types of survey research (Table 16.2 lists advantages and
disadvantages of each):
(1) Personal interview surveys (face-to-face)
(2) Telephone interview surveys
(3) Mail surveys
(4) E-mail surveys
(a) There has been a rapid increase in the number of consumers who are
interested in participating in Internet surveys.

Copyright © 2015 Pearson Education

*****Use Table #16.2 Here; Use Key Terms personal interview surveys, telephone interview
surveys, mail surveys, e-mail surveys, Internet surveys Here*****

Quantitative Research Data Collection Instruments

1. Data collection instruments systematize the collection of data and to ensure that all
respondents are asked the same questions in the same order.
2. Data collection instruments include questionnaires, personal inventories, and attitude scales.
3. A study is said to have validity if it collects the appropriate data needed to answer the
questions or objectives stated in the first stage of the research process.
4. A study is said to have reliability if the same questions, asked of a similar sample, produce
the same findings.

***** Use Key Terms validity and reliability Here*****

a) Questionnaires are the primary data collection instrument for quantitative research.
i) The questionnaire can be sent through the mail or online to selected respondents for
self-administration or can be administered by field interviewers in person or by
telephone.
ii) The questionnaire can be disguised or undisguised as to its true purpose.
iii) Questions can be open-ended or closed-ended.
iv) Wording the questions represents the biggest challenge in constructing
questionnaires. Table 16.3 includes guidelines for writing clear and effective
questions.
v) One form of consumer survey is a magazine readership survey, which is used to
develop a profile of a publication’s readers for potential advertisers.

***** Use Table 16.3 Here; Use Figure 16.5 Here; Use Key Terms open-ended question,
closed-ended question, and magazine readership survey Here*****

b) Attitude scales are often used to capture evaluative data.

i) Researchers often present respondents with a list of products or product attributes for
which they are asked to indicate their relative feelings or evaluations.
ii) The most frequently used attitude scales are Likert scales, semantic differential
scales, behavior intention scales, and rank-order scales.
(1) The Likert scale is the most popular form of attitude scale because it is easy
for researchers to prepare and interpret, and simple for consumers to answer.
The scale consists of an equal number of agreement/disagreement choices on
either side of a neutral choice.
(2) The semantic differential scale consists of a series of bipolar adjectives
anchored at the ends of an odd-numbered continuum. Respondents are asked

Copyright © 2015 Pearson Education

 to evaluate a concept on the basis of each attribute by checking the point on the
continuum that best reflects their feelings or beliefs.
(3) The behavior intention scale measures the likelihood that consumers will act
in a certain way in the future.
(4) With rank-order scales, subjects are asked to rank items such as products in
order of preference in terms of some criterion.

*****Use Exercises #16.10 and #16.11 Here; Use Figure #16.6 Here; Use Key Terms attitude
scales, Likert scale, semantic differential scale, behavior intention scale, and rank-order
scales Here*****

c) Customer satisfaction measurement includes quantitative and qualitative measures as

well as a variety of contact methods with customers.
i) Customer satisfaction surveys measure how satisfied the customers are with
relevant attributes of the product or service, and the relative importance of these
attributes.
(1) Customers who are very satisfied are much more profitable and loyal than
customers who are satisfied.
(2) Some marketers posit that customers’ satisfaction/dissatisfaction is a function
of the difference between expected performance (adequate, desired) and actual
performance.
ii) Mystery shoppers are professional observers who pose as customers in order to
interact with and provide unbiased evaluations of the company’s service personnel in
order to identify opportunities for improving productivity and efficiency.
iii) Analyzing customer complaints is crucial for improving products and customer
service. A good complaint analysis system should:
(1) encourage customers to complain about an unsatisfactory product or service
(2) encourage customers to provide suggestions for improvements
(3) establish “listening posts” such as hotlines where specially designated
employees either listen to customers’ comments or actively solicit input from
them.

***** Use Key Terms customer satisfaction surveys, mystery shoppers, and complaint
analysis Here*****

d) Sampling and data collection

i) A sample is a subset of the population that researchers use to estimate the
characteristics of the entire population because it is almost impossible to obtain
information from every member of the population or universe.
ii) The sample must be representative of the universe under study.
iii) An integral component of a research design is the sampling plan, which includes:
whom to survey (sampling unit), how many to survey (sample size) and how to select
them (sampling procedure).
iv) There are two types of samples.

Copyright © 2015 Pearson Education

 (1) In a probability sample, respondents are selected in such a way that every
member of the population studies has a known, nonzero chance of being
selected.
(2) Ina a nonprobability sample, the population under study has been
predetermined in a nonrandom fashion on the basis of the researcher’s
judgment or decision to select a given number of respondents from a particular
group.
(3) Table 16.4 includes information about the types of samples that fall under
each.
v) Data collection follows sample selection. The process depends on the tactics.

*****Use Review and Discussion Question #16.6 Here; Use Table #16.4 Here; Use Key Terms
sample, probability sample and nonprobability sample Here*****

Combining Qualitative and Quantitative Research Findings

1. Some marketers use a combination of quantitative and qualitative research.

2. They use qualitative research findings to discover new ideas and to develop promotional
strategy, and quantitative research findings to estimate the extent or amount of consumers
who react in a particular way.
3. Sometimes, ideas stemming from qualitative research are tested empirically through
quantitative studies.

***** Use Learning Objective 16.4 Here; Use Table #16.5 Here *****

Data Analysis and Reporting Research Findings

1. In designing a research study, researchers adapt the research process to the special needs of
the study.
2. In qualitative research, the moderator-researcher usually analyzes the responses received.
3. In quantitative research, the researcher supervises the analysis.
4. In both qualitative and quantitative research, the research report includes a brief executive
summary of the findings and a full description of the methodology used.
5. The report may or may not include recommendations for marketing action.

*****Use Learning Objective #16.5 Here*****

REVIEW AND DISCUSSION QUESTIONS

16.1 Have you ever been selected as a respondent in a marketing research survey? If yes,
how were you contacted and where were you interviewed? Why do you think you, in

Copyright © 2015 Pearson Education

 particular, were selected? Did you know or could you guess the purpose of the survey?
Do you know the name of the company or brand involved in the survey?

This is an excellent way to introduce the topic of consumer research to the class. Students are
likely to describe instances where they were stopped at malls, called on the phone, received
mail questionnaires, and filled out surveys done by their universities. The instructor should
inquire whether the students/respondents were “screened” before the beginning of the actual
interviews, and use the students’ descriptions to illustrate the sampling designs described in
the text.

Individual, Moderate, 5 minutes

Learning Objective 16.1: To understand how to develop research objectives
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Reflective thinking

16.2 What is the difference between primary and secondary research? Under what
circumstances might the availability of secondary data make primary research
unnecessary? What are some major sources of secondary data?

Secondary data is any data originally generated for some purpose other than the present
research objectives. It includes findings based on research done by outside organizations,
data generated in-house for earlier studies, and even customer information collected by the
firm’s sales or credit departments. Locating secondary data is called secondary research.
Such data sometimes provides sufficient insight into the problem at hand to eliminate the
need for primary research. Most often, it provides clues and direction for the design of
primary research.

Primary research is original research performed by individual researchers or organizations

to meet specific objectives. If detailed information on purchasing patterns or product usage is
needed or if psychological or sociocultural consumer information is sought, then primary
data must be collected. Research to secure such information is more costly and more time
consuming than secondary research but is likely to yield a more accurate picture than studies
based on secondary data alone.

Individual, Easy, 5 minutes

Learning Objective 16.2: To understand how to collect secondary data.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Reflective thinking

16.3 Explain the distinction between primary and secondary data, and note the
characteristics of each.

Primary data can be defined as the information gathered from a new research, especially
designed and collected for purposes of a current research problem. Secondary data, on the

Copyright © 2015 Pearson Education

 other hand, is the existing information that was originally gathered for a research purpose
other than the present research.

Although secondary information can be obtained more cheaply and quickly than primary data,
it has some limitations. First, information may be categorized in units that are different from
those that the researcher seeks. Some secondary data may not be accurate because of errors in
gathering or analyzing the data for the original study or because the data was collected in a
biased fashion in order to support a particular point of view. Also, care must be taken not to
use secondary data that may be outdated.

Individual, Moderate, 5 minutes

Learning Objective 16.2: To understand how to collect secondary data.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Reflective thinking

16.4 A manufacturer of a new product for whitening teeth would like to investigate the
effects of package design and label information on consumers’ perceptions of the
product and their intentions to buy it. Would you advise the manufacturer to use
observational research, experimentation, or a survey? Explain your choice.

Students will be able to make a case for any of the three choices (with a little creativity).
Whichever choice is made, students should justify the chosen alternative.
 Observation research—one of the best ways to gain in-depth understanding of the
relationship between people and products by watching them in the process of buying and
using products. Mechanical observation is also possible.
 Experimentation—it is possible to test the relative sales appeal of many types of
variables such as package designs, prices, promotional offers, or copy themes through
experiments designed to identify cause and effect. In such experiments, only some
variables are manipulated, while all other elements are kept constant. Major methods are
test marketing and virtual reality methods.
 Survey research—asking consumers about their purchase preferences and consumption
experiences. This can be done in person, by mail, by telephone, or online.

Individual, Moderate, 5-10 minutes

Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Application of knowledge

16.5 Quantitative research methods are often the preferred method of choice for many
analyses. Explain why.

Quantitative methods allow for measurement, and for a precise mathematic relation between
the observed phenomena and the hypotheses the researcher is trying to test. They are
considered less biased than qualitative methods and more generalized, since they are
collected on wider population.

Copyright © 2015 Pearson Education

 Individual, Moderate, 5 minutes
Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Application of knowledge

16.6 There are a few sampling methods in use. Which of the preferred ones feature a
randomized component?

Whenever a sampling process is involved, only a section of the whole population is selected.
To make sure no bias is involved in the selection of the sample, every type of accepted
sampling (stratified, cluster, systematic, just to mention some of them) involved a
randomized component in their process.

Individual, Easy, 3-5 minutes

Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Reflective thinking

16.7 Illustrate with examples the advantages and disadvantages of different methods of
conducting surveys, such as mail, telephone, personal interview, and online surveys.
How would you decide which is the most appropriate?

Refer to chapter 16, p. 415 for a description of all kinds of survey. To decide which one is
most appropriate to a specific investigation, a series of evaluation have to be taken into
account, such as the kind of data to be collected, the choice between quantitative and
qualitative methods and so on.

Individual, Moderate, 5 minutes

Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Reflective thinking

HANDS-ON ASSIGNMENTS

16.8 Neutrogena is a manufacturer of personal care products for young adults. The
company would like to extend its facial cleansers product line. Design a (a) qualitative
and (b) quantitative research design for the company focused on this objective.

Instructor’s Discussion

A good place to begin this assignment is to have students briefly review exactly what
qualitative and quantitative research designs are. Even though students can be basically
familiar with what quantitative and qualitative research designs are, they may not be prepared

Copyright © 2015 Pearson Education

 (especially if they have no prior experience with marketing research) to design an instrument.
Try limiting the research experience (to begin with) to attitude scales shown in Figure 16.6.
Students should be able to use one of the scales to begin their research experience. Once this
is accomplished, springboard to other venues from this basic research effort. Small groups
work well in this area.

Individual or Group, Moderate, 20-30 minutes, Outside of Class

Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Application of knowledge

16.9 Based on the discussion of focus groups and depth interviews (including Figures 16.2,
16.3 and 16.4), develop a discussion guide for studying college students’ reactions to
their brand and model of cell phone.

Instructor’s Discussion

Before beginning this exercise, have students reread the section in the chapter on focus
groups and depth interviews. From this review, students will understand the material found in
Figures 16.2-16.4. Next, ask the students to list categories of questions most important to
their use and reaction to their brand of cell phone. From these categories ask the students to
drill down, creating specific questions (probes) pertinent to each category.

Individual or Group, Moderate, 20-25 minutes, Outside of Class

Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Application of knowledge

16.10 Which methods of survey would you adopt to investigate the attitudes of a group
regarding the shopping experience in Japanese department stores, such as Isetan, Sogo,
and Mitsukoshi?

Instructor’s Discussion

One suitable way would be to select one day of the week, one hour and going to have a quick
survey in the stores – interviewing a fixed sample of same gender/race/age in the same
conditions. The questionnaires would be asking questions and measuring answers on a 5
point Likert scale for easy treatment at quantitative level.

Individual or Group, Moderate, 20-25 minutes

Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
Diff: 2
AACSB: Application of knowledge

Copyright © 2015 Pearson Education

16.11 Nestlé conducted extensive and accurate market research before deciding to put
Nespresso in production. Using web sources, press articles, and the corporate website,
outline your background research and provide the reasons for the success of the famous
espresso brand, which featured George Clooney and Matt Damon in a testimonial and
has become a veritable case of successful marketing.

Instructor’s Discussion

The Nespresso story is a very intriguing one, also for the conclusions. After a very accurate
and thoroughly investigation, the results would suggest not to invest in the product, since it
was too expensive for the target customers. Yet, against this evidence, Nestlé decided to go
with it. Nespresso is now a global brand, with millions of capsules sold every year around the
world and boutique shops and bars in many cities. See:
http://www.nespresso.com/uk/en/home#/

Individual or Group, Moderate, 15-25 minutes, Outside of Class

Learning Objective 16.3: To understand qualitative and quantitative research methods.
Learning Outcome 2: Discuss why and how consumer research is conducted
AACSB: Application of knowledge

S.T.A.R. PROJECTS

Ethical Issues in Consumer Behavior

S.T.A.R. Project #1
Acme Steel has employed you as a statistical analyst for almost ten years. In your job, you
tracked steel prices, created customer profiles, maintained data on contract negotiations,
provided data necessary for labor negotiations, researched information on new markets and joint
ventures, and developed a unique system for cataloging competitors’ strengths and weaknesses.
Your skill in obtaining primary and secondary research is not only known in Acme but in the
steel industry as a whole. The U.S. steel industry, however, is not doing well in the highly
competitive global marketplace. A German steel firm is expanding into the United States and is
currently negotiating to buy Bethlehem Steel. A recruiting firm has contacted you with a very
attractive offer—the German firm wants you. Simply put, you could double your salary, receive
a secure retirement and stock option package, and have a substantial position with a global
industry leader that has not had a layoff in ten years. The offer sounds very attractive when you
consider the situation at your own company and in the U.S. market in general. There is one
catch, however. You must be willing to bring all your knowledge of Acme and its processes to
your new firm. Though bringing actual data would be irresponsible, probably illegal, and very
difficult, your new firm does expect you to bring your models, ability to analyze data, and
knowledge of Acme customers, labor situations, and company weaknesses with you. Acme

Copyright © 2015 Pearson Education

would most certainly ask you to sign a nondisclosure document, however, this would be difficult
if not impossible to enforce. How should you meet your opportunity?
a. Considering the descriptions in the first part of this story, what type of information would
you feel comfortable in taking with you to the new firm? Explain.
b. From an ethics standpoint, how can companies control or be secure with employees
that are in a position to gather and obtain information such as that described in the story?
c. How do you feel about the dilemma created in this story? Comment.

Instructor’s Discussion

There is nothing easy about the dilemma posed in this exercise. Students should see the
opportunity and security that the new position might bring. Students should, however, also see
the responsibility that is owed to the company that has been the source of livelihood for several
years. A good direction to go to with respect to giving guidance on the thorny path that lies
ahead is to have students review the American Marketing Association’s Web site at
www.marketingpower.com where marketing research ethics and general ethics in marketing are
explored.

Have a lively discussion with the class on the responsibility of those that collect information and
how those individuals must be ever vigilant in their responsibility.

Small Group Projects

S.T.A.R. Project #2
In the spring of 2003, Mattel launched its ello Creation System for young girls. The theme for
this new category of toys is “create whatever you can imagine!” This is rather a broad statement.
However, Mattel believes its ello Creation System gives young girls the ability to create anything
from funky characters, room accessories, jewelry, houses, and much more. The purpose of the
system is to spark female imagination and creativity. The system, according to Mattel, is
designed to be open-ended and creative to match the ways little girls play. In other words, girls
can build it, change it, and rearrange it using the ello Creation System. Sound like fun?
Investigate and see.
a) Using the Web site (http://www.everythinggirl.com/ello/), investigate the ello Creation
System. Using information described in the chapter, propose a qualitative and a
quantitative approach for researching the consumer for which this system is designed.
How could our information (once it was obtained) help Mattel in marketing the system?
b) Assuming that the ello Creation System was sold to young girls, propose a method of
determining customer satisfaction using one of the methods outlined in the chapter.

Instructor’s Discussion

The students may find the ello Creation System to be creative and innovative. Mattel, better
known for its Barbie and Hot Wheels lines, spent big money to ensure the success of this line.

Copyright © 2015 Pearson Education

Industry sources say that the ello Creation System is an alternative to video games (popular with
most boys in this age range). Is the system intriguing enough to stimulate purchase? Students
should be able to gain insight as to the answer to this question by accomplishing the tasks
outlined by the project. Save time to present the most creative results to the class as a whole.
Finish the discussion by asking students to think about how the original testing of this line might
have been done. If the instructor contacts Mattel, the response is often very informative with
respect to this issue.

CASE COMMENTS

Case: Pima Air and Space Museum “The Great Paper Airplane Project”

Summary: The Pima Air and Space Museum wants to attract younger visitors. It is trying to
gain media exposure in order to attract young parents (25-50 years old). Interviews indicated
that the military focus did not appeal to moms with young kids. Pima engaged students in a
paper airplane competition, which yielded 200 participants, and produced a large version of the
winning design, which gained media attention. The competition overcame perceptual and
attitudinal barriers to consideration, utilized credible, informal sources (teachers) that play a role
in consumer socialization, and facilitated learning via earned media and word-of-mouth, both of
which are more credible that advertising messages. The event represented a shift from a
positioning that emphasized heroic endeavors and scientific developments to experiential
learning, so the museum’s target audience could see the direct benefits to them as prospective
visitors. The building and launch of the large airplane could become an annual event. The
museum could reach out to additional schools. The event could also be recorded for additional
views via social media, which may prompt additional word-of-mouth. The museum could also
provide a computer simulation, which might help it reach audience members from outside the
immediate area. The museum could interview moms after the event occurs, track the number of
visitors, and survey the visitors to see if the average age decreased and whether attitudes
changed. To retain visitors, the museum should make sure they are delivering value to the
visitors and that its offerings match the benefits sought by the visitors (the marketing concept).
The museum may also offer incentives for field trips (to increase exposure among school-aged
children and the parents who sign their permission slips); offer a frequency/reward
program/mailing list; and develop new offerings/exhibits that appeal to the target audience so
they have a reason to come back.

Copyright © 2015 Pearson Education