The Consumer Research Process

The Consumer Research ProcessCHAPTERTWO

1In shortTo Understand the Importance of Consumer Research for Firms and Their Brands, as Well as Consumers.To Understand the Steps in the Consumer Research Process.To Understand the Importance of Establishing Specific Research Objectives as the First Step in the Design of a Consumer Research Project.2Here is an outline of the topics for Chapter Two.2Learning Objectives (continued)To Understand the Purposes and Types of Secondary Consumer Research That Is Available for Making Decisions or Planning Future Consumer Research.To Understand Specific Features and Applications of Different Research Methods to Be Carried Out in Consumer Research Studies.To Understand Where Data Analysis and Reporting of Findings Fit in the Research Process.To Understand How Each Element of the Consumer Research Process Adds to the Overall Outcome of the Research Study.3Here is an outline of the topics for Chapter Two.3Why Do Marketers Regularly Test Print Ads Like This One Before They Are Placed in the Media?

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To Test the Impact of the Message Before Spending Large Amounts of Money

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Consumer researchConsumer research has developed from the more general field of market research. It is a field of study that has been influenced by researchers and practitioners in several other fields, including psychology, sociology, and anthropology. Consumer research is important for marketers as the competitive landscape in almost every industry becomes even more challenging and with growth in global and cross-cultural markets.

The Importance of the Consumer Research ProcessMarketers must understand customers to design effective:marketing strategiesproductspromotional messages

7Consumer research has developed from the more general field of market research. It is a field of study that has been influenced by researchers and practitioners in several other fields, including psychology, sociology, and anthropology. Consumer research is important for marketers as the competitive landscape in almost every industry becomes even more challenging and with growth in global and cross-cultural markets.7The Consumer Research Process

8Here we see an overview of the consumer research process that a typical marketer might follow when conducting research. As you can see, the marketer will first develop objectives to guide their research. Next comes the collection of secondary data which we will learn is data that is available because it had been collected previous to the marketers particular research. In the next phase, the marketer branches to both qualitative and quantitative research. In each of these areas, the marketer collects and analyzes data and then presents it in either a written report, a presentation, or both.8The Consumer Research ProcessSecondary researchPrimary researchQualitativeQuantitative9Information can be classified as either primary or secondary. Secondary information is information that has been collected for another purpose. It is already available to the researcher often for a fee. Primary research can be either qualitative or quantitative. Qualitative research includes focus groups and in-depth interviews. The more numerically-oriented quantitative research includes observational research, experimentation, and survey research.9Developing Research ObjectivesDefining purposes and objectives helps ensure an appropriate research design.A written statement of objectives helps to define the type and level of information needed.10It is extremely important that research objectives are determined at the beginning of the process. Without this agreed-upon roadmap for the research, money can easily be wasted and research objectives not fulfilled. At this point, it is important to define the purpose of a particular study. A small-scale exploratory study might be executed upfront if more information is needed by the researcher. This might include a few focus group sessions or a limited number of one-on-one interviews.10Assume you are planning to open a new restaurant near your campus. What might be three objectives of a research plan for your new business?How could you gather these data?11What might be three objectives of a research plan for your new business?To determine the target market, to set pricing strategies, and to design effective marketing messagesHow could you gather these data?Primary and secondary research. Primary research might include focus groups, surveys, and observation studies of local students and their traffic patterns.

11What might be three objectives of a research plan for your new business?To determine the target market, to set pricing strategies, and to design effective marketing messagesHow could you gather these data?Through research might include focus groups, surveys, and observation studies of local students and their traffic patterns.

Secondary DataData that has been collected for reasons other than the specific research project at hand.Includes internal and external data

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Before jumping into primary data collection, a researcher will collect all the relevant secondary data that is available. Some of this data is within the organization and some of it can be collected or purchased from outside organizations. Collecting secondary information is important in guiding primary research decisions.13Types of Secondary DataInternal DataData generated in-houseMay include analysis of customer filesUseful for calculating customer lifetime valueExternal DataData collected by an outside organizationIncludes federal government, periodicals, newspapers, books, search enginesCommercial data is also available from market research firms14Secondary data is readily available. As an employee of a company, you may have access to the companys internal records and databases, which are rich with customer, intermediary, and company data. In addition, as a student, you can access many databases through your school library. Most of this external data comes from online databases which combine articles from books, newspapers, periodicals, as well as trade and academic journals. Some schools supply access to commercial data including Nielsen, Arbitron, SRDS, and MRI/Mediamark. These are four of the many research companies that gather information and then sell the data to companies and institutions. Another excellent source of information is the government. The web link on this slide will bring you to the U.S. Census Bureau. This site is full of statistics and data on the U.S. population and commerce.14Examples for secondary data sources,

Neilsen Media Research

http://www.censusindia.gov.in/

Personal PrivacyMany people do not like the fact that their personal data are used for marketing.How can marketers justify their need for data? How can they acquire data and maintain customer privacy?18How can marketers justify their need for data? In many instances, marketers are gathering this data to truly provide better products and services. In addition, they want to know their customers better so they can better predict their needs. For example, if a company knows a customers policy is about to expire, they can contact the customer to determine if they want to renew their policy.How can they acquire data and maintain customer privacy?A couple of things must happen here. First of all, companies should be careful when sharing information. If the information is sold, it should always be in aggregate and never expose a customers personal information. Second of all, they must be clear with the customer when and how information will be shared. Finally, companies must carefully screen their employees who work with personal information to prevent such problems as identity theft.

18How can marketers justify their need for data? In many instances, marketers are gathering this data to truly provide better products and services. In addition, they want to know their customers better so they can better predict their needs. For example, if a company knows a customers policy is about to expire, they can contact the customer to determine if they want to renew their policy.How can they acquire data and maintain customer privacy?A couple of things must happen here. First of all, companies should be careful when sharing information. If the information is sold, it should always be in aggregate and never expose a customers personal information. Second of all, they must be clear with the customer when and how information will be shared. Finally, companies must carefully screen their employees who work with personal information to prevent such problems as identity theft.