ning Objective

". Tounderstand how to

conduct exploratory
research and review
secondary data.

*ondary data
“mation that was gathered
ously and not in the

“7% of the study presently

ertaken,

oo re rereea ner in ine TIPst episode, | omnes Sander.

Exploratory research is an examination of

had already been collected and can be of value
consists mostly of reviewing secondary data, Primary research is a ney, «
especially designed and collected for Purposes of a current researc h nae
The two categories of Primary consumer research are qualitative maak
which consists primarily of focus groups and depth interviews, and oreince,.
methods; and quantit

; ative research, which includes obsery

experimentation, and survey research,

resources and m

aterials that
to the research

at hand and

,and projective

ational research
i,

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 percent-
age of households shop for food online? Whatever the key research question is, 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 consume

T study. A clearly
written statement of research objectives ensures that the information needed is
indeed
collected and costly errors are avoided.

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 and/or one-on-one depth interviews, in which sampled consumers are individu-
ally interviewed by professionally trained interviewers. Alternatively, for
example, 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.

Commonly, marketers use qualitative research before conducting large quantitative

studies, because their results enable marketers to define the research objectives
of the
large and expensive studies more precisely.

The second step in the consumer research process is to search secondary data.
defined as existing information that was originally gathered for a research purpose
other
than the present research. The rationale for secondary data searches is simply that
u
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
etfort
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. In other w
ords,
if secondary data can in part or full answer the question, new primary research can
either
be cut back or even avoided altogether. Secondary consumer-related data can be
secured
from internal sources within the company or organization, or external sources for
free
or at a cost. The following subsections explore secondary data.

INTERNAL SECONDARY DATA

' , - sollected in- se information

Internal information or data could consist of previously collected in ne i Se ered

7 ave ori t Ppeen ge
that was originally used for some other purpose. It might have originally been s
5 -TING ETHICS, AND CONSUMER RESEARC
; N-MAKING, MARKE Sagce
-ONSUMER DECISIO
iTV * CONS

yart of a sales audit, or from past customer service calls, or letters of Inquiry |
i . | ; : rr
as | asingly, companics use "

yndary data to compute customer lifetime value Profiles for y

ondary ai

-collected via warr cards. Inere ‘

customers, or collected via warranty ci Mlernal Se
Urlous

Fiese CUStOn
gments. These profiles include customer acquisition costs (the resources Needeq :
Seg _ ; : : = ~profite ap : . —_? een)
stablish a relationship with the customer), the profits ecncrated from individual
sal
esti . ‘ 7 . . ATES
to each customer, the costs of handling customers and their order
O ’? i: =

rs («
rs may place more complex and variable orders that Cost more to h
ers may

expected duration of the relationship.

Ome CUStOn,
andle), 4nd the

EXTERNAL SECONDARY DATA

External secondary data come from sources outside of the firm or ¢

take many different forms. Some are free and can be found in
information is available for only a nominal fee, and still other data or
information are
quite expensive to secure. The following sections discuss some of the SPECific
types
of consumer behavior secondary information available from outside of the firm,

ganization, J hey
a public library, Other

Government Secondary Data

Much data are collected by government bodies or their agencies, and are generally
made
available for a very nominal cost. For instance, within the United States, a major
source
of these data is the federal government, which publishes information collected by
scores
of government agencies about the economy, business, and virtually all demograph-
ics of the U.S. population. The best depositories of marketing-applicable
information
are FedStats, the U.S. Census Bureau, and the CIA’s World Factbook
governments, as well as studies prepared by the United Nations and
governments, are also very

. State and local

various foreign
useful for examining selective consumer be havior topics.

Periodicals and Articles

Business-relevant secondary data from periodicals, newspapers, and books are

readily
accessible via online search engines. Two quite popular examples are ProQuest and

LexisNexis. These two engines provide access to major newspapers such as the Wall

Street Journal and The New York Times; business magazines such as Business Week,
Forbes, Fortune, and Harv

ard Business Review: and marketing journals and applied

publications focused specifically on marketing, such as Advertisin g Age,
Brandweek,
Marketing News, Journal of Marketing, Journal of Marketing Research, Journal of
Consumer Research, and European Journal of Marketin 8. These materials are
available
in public and Private libraries, especially business specialty libraries.

Syndicated Research Companies

Commercially available
research services that se]
Research’s MyBestSegm
Sumers residing in each
Survey” to ady
Map

information about consumers is collected by syndicated

l it to subscribing marketers, For example, Nielsen Medi
ent provides demographic and lifestyle profiles of the i
US. zip code, Ipsos Mendelsohn offers its “Affluent Me '
and their ad agencies, and Mediamark collects information ai
profiles, Future research into consumers’ exposure to ae val
toring Consumers Via digital cable set-top boxes. Presently, = .
are primarily used to send signals to consumers’ TVs to enable ee
© on demand and to €xpand channel lineups. However, the boxes _ ia

ily record all the Programs that consumers tune into, channel surf, avoid SE tes
breaks, and record lor later viewing, using digital video recorders that cable
comp"

erlisers
iZine audience
CONSISt of moni
cable boxes
watch movie
518 PAR

lm

TVe CONSUMER DECISI

List ‘of Attribut

ON-MAKING, MARKETING ETHICS, AND CONSUMER RESEaRC,,

es and Benefits of the Brands in the Face Wash, Cal

Category Benefits

&g0

Many vanants

Moisturizer/pH neutral

Attributes/Important Aspects Groomed looks

Refreshed looks
Beauty maintenance

Natural/herbal ingredients ear lextefenkericemént |

cteri otection ; |

Antibacterial/germ pr realng of being benefited |

Value for money |

otless beaut

Unique/special component Sp yo

Certificati Security of the offering

Centitication

brands in the category.

Source: The attributes/important aspects at the category level were obtaine

Note: Instructors teaching Consumer Behavior su

case as per the regulations at https://www.iveycases.com/.

d from the authors’ analysis of the

bject in academic institutions can access the solution of the

‘i

Learning Objective

15.2 To understand the

purpose and tools of
qualitative research.

motivational research
A “term of art” that refers to
qualitative studies conducted
by Dr. Ernest Dichter in the
1950s and 1960, which were
designed to uncover consum-
ers’ subconscious or hidden
motivations in the context of
buying and consumption.

As Figure 15.1 shows, after analyzing the secondary data available. marketers can
Use
either qualitative or quantitative research. For example, if their objective is to
generate
new product ideas and how to position the new offerings, they should conduct
qualita.
tive studies. On the other hand, if they wish to construct descriptions of their
customer,
quantitative studies should be undertaken.

The objective of qualitative research is to understand hidden motivation (see

Chapter3),
In consumer behavior, qualitative studies are often termed m:->. ational research
(see Chapter 3), Even when they were aware of their basic otivations, consumers
were not always willing to reveal those reasons to others, or eve: io themselves.

The leader of the motivational research movement was the Viesnese psychoanalyst
Dr. Ernest Dichter, who, after arriving in New York in the iate 1930s, began to
apply
qualitative Freudian psychoanalytic techniques to uncover the hidden or unconscious
motivations of consumers.’ By the late 1950s and early 1960s, this research
orientation
became quite popular, and focus groups and depth interviews were used by many
adverts:
Ing agencies and consumer products companies in order to better understand consum
needs and motivations. Today, focus groups and depth interviews are very well-
established
; nd mothe ae a ly ne to secure insights about consumers” umdeye me
efforts (including the creat . OF to gain consumer input for new product dev eee
Because sample sizes are oe e) ml products and even future advertising _ ree
populations. Nevertheless ae y often small, findings cannot be generalize ts “be
tification and developmen = Itative research contributes extensively to the 1m!
fopnt
that can eventually be further vatehiie : - wee (a: "

In designing and implants . ough a variety of quantitative resea in

a qualitative study, the researct is an appropriate research strategy for ¢
interviews that are like] ne

y to be most

and the types of data jnar

Although the Be, Instruments most suitable for securing the informaul ats

of qualita specific research methods used may differ in composition. most i

ve research questioning have their roots in psychoanalytic a" clit

aspects Pi en ae + — _ 25
ispects of psychology. Specifically, they feature doen-ended amd froe-response wpe

tional campaigns and new product deve as

reh methor

ducting
sty. >ol
consider the purpose of the study, the tyPe

7 ae sare |e

i i i Ps reste
appropriate giv 6 purpose of the 4
propriate given the purp en need
erview

pathy and unstructured

+ yew designed to uncover

“asumer’s underlying atti-
ai and/or motivations.

apth int

focus Sroup

eethod of qualitative
nha Consisting of eight
ts ©" Participants who meet
bd * Moderator/researcher/
‘ei, and “focus on" or

Pi ai 4 particular prod-
iyo Product category (or

Ioan.) (OPI OF subject of

arch interest),

CHAPTER 15 * CONSUMER RESEAPCy4 5419

of questioning and use of visual materi

mnermost thoughts and beliefs.

The key methods used in qualit

group sessions,

als to stimulate respondents to reve! their

ative studics are depth interviews and/or focy:

DEPTH INTERVIEWS

A depth interview (also called a one-on-one interview) is a lengthy, nonstructured

interview (often 20 to 60 minutes in duration) between a single respondent and a
hich} y
trained researcher (often the same person who moderates focus group sessions yc
monly, the interviewer’s strategy is to minimize his or her own talking time and
provide
as much time as possible for the consumer being interviewed to express his or her
thoughts and behaviors, and respond to specific verbal and visual materials (e.2.,
mock-
up of a potential print ad campaign). The researcher also must establish an
atmosphere
that encourages the consumer respondent to relax and open up in order to provide
valu-
able insights. In many Cases, the researcher’s role is to probe the respondent by
encourag-
ing the person to talk freely about the product category and/or brand under study.

Generally, a series of the depth interviews takes place in a professionally set-up

interviewing room. These rooms are designed to provide audio and video recording
equipment, as well asa one-way mirror for clients to view the interview without
disrup-
tion. (The researcher tells the participants that they are being observed.)

Depth interviews provide marketers with valuable ideas about product design or
redesign, and with insights for positioning or repositioning products. As already
sug-
gested, as part of a depth interview research project, a variety of stimulus
materials
are developed to enhance the discussion between the researcher and the respondent.
They may take the form of written concept statements ( describing a new product
idea),
drawings or photos of new products, actual product samples, or rough renditions or
videotapes of print ads or TV commercials. The purpose of such “stimulus materials”
is to assist the respondent in expressing his or her inner thoughts and to
encourage a
more precise or accurate response to what is being investigated. Over the course of
a
day of conducting depth interviews, a researcher is likely to be able to complete
about
five to eight hours of interviews, depending on the length of each interview.

FOCUS GROUPS

A focus group consists of 8 to 10 participants who meet with a

moderator/researcher/
analyst to focus on or explore a particular product or product category (or any
other
topic or subject of research interest). During a focus group session (often two
hours "
duration), participants are encouraged to discuss their reactions to product and
servic
concepts, or new advertising or marketing communications campaigns. » hours ta

Because a focus group generally takes about 2 (or sometimes mor) hours "
complete, a researcher can generally conduct two or ene holla eoupst 7 ina vale!
about 30 respondents) in one day; in contrast, it might take that same ress Sie
coth
days to conduct 30 individual depth interviews. Analysis of responses naie Sein
interviews and focus groups requires a great deal of skill on the parte | 1
aeotuped
Like depth interviews, focus-group sessions are invariably wee andy spond
to assist in the analysis and to provide the client with a ron Sane eens ee
depth interviews, focus groups are usa y belie Ue igeees sence

- jirrors that enable marketers and advertising y sti

ceaditeabntvons disrupting or inhibiting the respondents.

Terry
A

antitative Research
Our

Objective
a derataricl the

{0 at
plise and tools of
it

quantitatl

4b

ve fesenre hi,

yalidity a
Ammoasure has validity if it

joes, In fact, colloct appropri

jo data nooded Lo answer

thie questions or objectives

sated in the first (objectives)
sage of the research process,

rallability

Ameasure has reliability if the

same questions, asked of a
similar sample, produce the
same findings.

ob
‘orvational research

M te
. *search tool where market-
5 Gain

“andine ee ance:
tna! 1! the relationship

: tia People and products

toe. Ng them in the pro-

VOSs 6 by :
YING and/or usi
Ng Products, usINg

CHAPTER 15) * CONSUMER RESEARCH

521
Marketers tse quantitative rescarch to understand the acceptance of various
products or
specific brands, as well as the impact of promotional messages on consumers. In
other
cases, (he objectives are (6 assist marketers in pinpointing consumers’ level of
satisfac-
tion wilh a product, service, distributor, or retailer, or possibly to attempt to
identify
areas in which the consumer has unmet needs, or even to attempt to better “predict”
future consumer needs or behavior, The broad category of quantitative rescarch
includes
experimentation, survey techniques, and observation, The findings are descriptive
and
empirical, and, if collected using appropriate sampling, can be generalized to
larger
populations, Because the data collected are quantitative, they lend themselves to
sophis-
licated statistical analysis, Next, we consider three basic research designs:
observational
reacarch, causal rescarch, also referred to as experimentational research (in a
laboratory
or in the field, such as ina retail store), and contacting respondents of surveys.

VALIDITY AND RELIABILITY

The data collection instruments used in qualitative study must fulfill (wo
criteria:

I. Validity: ‘The data collected applies to the study’s objectives and questions.
The
data gathered must enable the researchers to confirm or reject their prior opin-
ions and hunches. . :

2. Reliability: The study is said to have reliability if the same questions, asked
of
a similar sample, produce the same findings. Often, a sample is systematically
divided in two, and cach half is given the same questionnaire to complete. If the
results from each half are similar, the questionnaire is said to be reliable.

Before the 2016 November elections, polls strongly predicted that Hillary Clinton
would be the next president of the United States. So, when Donald Trump won,
research-
ers and marketers found themselves asking serious questions about how they study
consumers, use data, and quantify the value of facts—in other words, re-examining
the
validity and reliability of their research, Marketers, concerned that data are not
telling
them everything they need to know, have been considering increasing their use of
per-
sonal interviews rather than relying mostly on large surveys.’ Some advertising
agencies
have been reflecting on the samples selected, which did not include enough rural,
eco-
nomically frustrated, clite-distrusting, antiglobalization voters—who voted for
Trump-*

OBSERVATIONAL RESEARCH

Watching or carefully observing consumers’ actions of purchasing and consuming.

especially in realistic surroundings (c.g., in stores, in malls, watching TV, and
even in
their home environments), is an extremely insightful way to learn what is valuable
or
meaningful to consumers. 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.’ Observing consumers in action enables
researchers
to comprehend what the product symbolizes to a consumer and provides greater
insight
into the bond between people and products that is the essence of brand loyalty. It
ts
also important in uncovering issues or problems with a product. Many large corpora-
tions and advertising agencies use trained researchers/observers to watch, note,
and
experiments (casual research)
A consumer research

approach designed to identify

cause-and-effect relation-

ships among purchase-related

factors.

CAUSAL RESEARCH

Experiments (causal research) identify cause-and-effect relationships among

factors. For instance, it is possible to test the relative sales appeal of many
types of
variables, such as package designs, alternative price points, and different
promotional
offers, by experiments designed to identify cause and effect. In the simplest form
of
such experiments, only one variable is manipulated (called the independent
variable)
while all other elements are kept constant. A controlled experiment ensures that
any
difference in the outcome (the dependent variable, which is most often sales) is
due
to different treatments of the variable under study and not to extraneous factors.

For example, one study tested the effectiveness of using an attractive versus
unattractive endorser in promoting two types of products: products that are used to
enhance one’s attractiveness (e.g., a men’s cologne) and products that are not
(e.g., a pen).
The endorser used was a fictitious character named Phil Johnson who was described
as
a member of the U.S. Olympic water polo team. The photograph depicting the
attractive
endorser was a scanned image of a handsome athletic man, whereas the picture
depicting
the unattractive endorser was the same image graphically modified to reduce
attractive-
ness. The subjects viewed each endorser-product combination for 15 seconds
(simulat-
ing the viewing of an actual print ad) and then filled out a questionnaire that
measured
their attitudes and purchase intentions toward the products advertised. In this
study, the
combinations of the product (i.e., used/not used to enhance one’s attractiveness)
and the
CONTACTING RESPONDENTS

Consumer surveys can be done in person, by mail, by telephone, or online. Each

of these survey methods has certain advantages and certain disadvantages that the
researcher must weigh when selecting the method of contact.

Personal interview surveys take place in a public space or a retail shopping

area, such as within the public area of a mall, or a rented space within an office
located
ina mall The latter, referred to as “mall intercepts,” are used more frequently, as
@
replacement for the in-home interviews that used to be commonplace, due to the high
mcidence of not-at-home working women and the reluctance of many people today
lo allow a stranger into their homes.

Telephone surveys are also used to collect consumer data; however, evenings
and weekends are often the only times to reach telephone respondents, who tend to
be
Jess responsive-if not actively hostile—to calls that interrupt dinner, television
view-
ny, oF peneral relaxation, Other problems arise, however, from the increased use ol
answerlny Hachines, tlephone company voice-mail systems, and caller ID to sere?
calls, Some market research companies have tried to automate telephone surveys: bu!
many respondents are even less willing to interact with an electronic voice than 4
live
Interviewer, Table 15.1 compares the survey contact methods.
ve Instil
-ANE

CHAPTER 15 « ¢ ONSUMER RE 6F ARCH Z

uw
u

Mail sur
VOys are ¢
YS unc Conducted by

OF the my
archers hy

sending: qu
HOP problems of m
a stumped. crvelaped alee nine
and sending Nouticnt; seladdrey AIIVe questionnaire
hommes i tons Madvance ag well as follow up letters. Also :

POMEL problems of low /

aon FESPOnse rates to unsolicited im

sumer marketing COMpaMies are own ont

periodically mail or email
As a motiy

at thet homes. One

‘sHOnnaires diree tly to indy

rate, Dut rese

viduals
15 a low response
lechniques to increase returns,
ised envelope, UST A proven

i questionnaire:
as enclosing

lo deal with
SUPVCYS, SOMme Con
establishing their own Ongoing Consumer panels and
questionnaire to consumer panel participants to fill our
‘te the task, and ensure a satisfactory response rate. it is
WY Tespondents a pre
YS. Sometimes ~

WON to comple
commonplace to p

completed surve
purchases, !”

arranged participation fee for each round of

ancl members arc also asked to keep diaries of their
Email surveys are

- UNG) aMincreasingly popular alternative to using the postal service

asameans of distributin |

ae hs £ questionnaires to target consumers, One of the key attractions

ol using email Is thatitis as easy and quick to distribute a survey around the
world as it
Is te) distribute it down the block. Morcover, with an accurate list of email
addresses, it
IS very Inexpensive to distribute
that as the world inere;
lions, We will see conti

even a large number of questionnaires. We can expect

isingly turns to the Web for many types of social communica-
hued growth of emailing as a way to distribute surveys.””

Furthermore, there has been a rapid increase in the number of consumers who are
interested in Participating in internet surveys, Potential respondents are directed
to the marketers (or researcher company’s) website by online ads or targeted email
invitations. Often, responses to online surveys are from consumer respondents who
are self-selected, and therefore (he results cannot be projected Lo the larger
population.
Most computer polls ask respondents to complete a profile consisting of demographic
questions that enable the researchers to classify the responses to the substantive
prod-
uct or service questions. The advantages and limitations of the means used to
contact
respondents are listed in Table 15.1,

QUESTIONNAIRES

For quantitative research, the primary data collection instrument is the

questionnaire,
which can be sent through the mail or online to selected respondents for self-
administration, or can be administered by ficld interviewers in person or by
telephone.
To motivate respondents to take the time to respond to surveys, researchers have
une
that questionnaires must be interesting, objective, unambiguous, easy to complete,
and generally not burdensome. To enhance the analysis and facilitate the
elussiieanan
of responses into meaninglul categories, questionnaires include both —.
questions that are relevant to the purposes of the study and pertinent demographic

quesuions Questionnaires consist of two types of questions:

1. Open-ended questions require

essay type questions).

osed-en uesti ‘equire res ents to check the appropriate

2.0 d ded q tions require responce | .

i | choice & rue or fase *Stons).

from a list of options (C.2., multiple choice and true of false ques
answer a lis s
answers in the respondent's own words (e.g.

Sinsiehttul information but are more difficult

are relatively simple to tububite and
ovided (i.e., to the

Open-ended questions yield mor

ind to analyze; closed-ended questions
i

to code ¢ ss alrarnative responses pr

analyze, but the answers are limited to the alternative rest |
c « +

existing insights of the questionnaire designer).