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Chapter 3 Market SegmentationCopyright 2007 by Prentice Hall
Chapter 2
Consumer Research
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Chapter Outline
Quantitative Research
Qualitative Research
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Research methods include experiments, survey techniques, and observation.
Findings are descriptive, empirical, and can be generalized to larger populations.
Copyright 2007 by Prentice Hall
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Consists of depth interviews, focus groups, metaphor analysis, collage research, and projective techniques.
Administered by highly trained interviewer-analysts.
Findings tend to be subjective.
Small sample sizes.
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Burke Research Uses a Variety of Projective Techniques
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Table 2-1
Study Purpose
Describe target market Results for strategic marketing decisions
Types of Questions
Observation Experimentation Questionnaires
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Table 2-1 (continued)
Data Analysis
Analyzed by researchers who collected data Look for “key words” Subjective
Coded, tabulated, and entered into database Use of statistical methods
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The Consumer Research Process
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Developing Research Objectives
Defining purposes and objectives helps ensure an appropriate research design.
A statement of objectives helps to define the type and level of information needed.
Subaru Video
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Discussion Questions
Assume you are planning to open a new pizza restaurant near your campus.
What might be three objectives of a research plan for your new business?
How could you gather these data?
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Secondary Data
Data that has been collected for reasons other than the specific research project at hand
Includes internal and external data
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Types of Secondary Data
External Data
Includes federal government, periodicals, newspapers, books, search engines
Commercial data is also available from market research firms
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U.S. Census Data
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Discussion Question
Personal Privacy
Many people do not like the fact that their personal data are used for marketing.
How can marketer’s justify their need for data?
How can they acquire data and maintain customer privacy?
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Designing Primary Research
Quantitative Research Designs
Include research design, data collection methods, instruments to be used, and the sample design
Qualitative Research Designs
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Data Collection Methods
Helps marketers gain an in-depth understanding of the relationship between people and products by watching them buying and using products
Helps researchers gain a better understanding of what the product symbolizes
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Observational research is often used to design products to meet needs.
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Data Collection Methods Mechanical Observational Research
Uses mechanical or electronic device to record consumer behavior or response
Consumers’ increased use of highly convenient technologies will create more records for marketers
Product audits which monitor sales are heavily used by companies
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Foxwoods Casino Uses Mechanical Observational Research - Figure 2-2
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Arbitron Mechanical Observation
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Data Collection Methods Experimentation
Can be used to test the relative sales appeal of many types of variables
An experiment is usually controlled with only some variables manipulated at a time while the others are constant
Can be conducted in laboratories or in the field
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Discussion Question
What might direct marketers test in experiments?
How can they use the results?
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Surveys
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Online Surveys Are Growing in Popularity
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MAIL
TELEPHONE
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Validity and Reliability
If a study has validity it collects the appropriate data for the study.
A study has reliability if the same questions, asked of a similar sample, produce the same findings.
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Attitude Scales
Likert scales: easy for researchers to prepare and interpret, and simple for consumers to answer
Semantic differential scales: relatively easy to construct and administer
Behavior intention scales: also easy to construct and administer
Rank-order scales: subjects rank items in order of preference in terms of some criteria
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Qualitative Collection Method
Nonstructured
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8-10 participants
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Online Focus Groups Are Gaining in Popularity
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Figure 2.4
Focus Group Discussion Guide
1. Why did you decide to use your current cellular company?
2. How long have you used your current cellular company?
3. Have you ever switched services? When? What caused the change?
4. What do you think of the overall quality of your current service?
5. What are the important criteria in selecting a cellular service? Examples of Probe questions:
a. Tell me more about that . . .
b. Share your thinking on this . . .
c. Does anyone see it differently . . .
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Research procedures designed to identify consumers’ subconscious feelings and motivations
Consist of a variety of disguised “tests”
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Qualitative Collection Method Metaphor Analysis
Based on belief that metaphors are the most basic method of thought and communication
Zaltman Metaphor Elicitation Technique (ZMET) combines collage research and metaphor analysis to bring to the surface the mental models and the major themes or constructs that drive consumer thinking and behavior.
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Customer Satisfaction Measurement
Customer Satisfaction Surveys
Mystery Shoppers
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Customer Satisfaction Survey
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Sampling and Data Collection
Samples are a subset of the population used to estimate characteristics of the entire population.
A sampling plan addresses:
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Simple random sample
Every member of the population has a known and equal chance of being selected.
Systematic random sample
A member of the population is selected at random and then every “nth” person is selected.
Cluster (area) sample
The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview.
Stratified random sample
The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group.
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Open-ended questions are coded and quantified.
All responses are tabulated and analyzed.
Final report includes executive summary, body, tables, and graphs.
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