Consumer Research

Introduction:

Consumer research has become an extension of marketing research and an essential component of it. It’s a series of techniques for identifying needs and then developing goods and services to meet them. Consumer analysis is solely concerned with examining consumer behaviour. Consumer research was initially used to assist advertisers in predicting consumer responses to advertising advertisements and understanding why consumers made the purchases they did. Marketers were fairly persuaded that if they knew what to know about the consumer decision-making process, they could create marketing plans and advertising campaigns to persuade consumers to purchase the company’s goods or services. At the time, marketing was regarded as merely applied economics, and the dominant philosophy was that of an ‘economic guy,’ believing that consumers are reasonable beings who make objective judgments of goods or services and choose only those that provide them with the most significant amount of satisfaction for the least amount of money. Consumer behaviour research is now being used to recognise both felt and unconscious desires and learn how consumers view goods, brands, and stores, their behaviours before and after advertising campaigns, and how and why they make purchases.

Paradigms: Qualitative and Quantitative Research:

Consumer or market research studies the factors influencing customer behaviour, psychology, and purchasing habits. Consumer research is classified as a marketing activity and a subject of business psychology or sociology in higher education.

Consumer research aims to gather empirical data through statistical sampling to assist companies in developing products and ads that boost revenue and profits.

It is not easy to comprehend the essence of consumption. A. claims that Most consumer behaviour research, according to F. Firat and Alladi Venkatesh, is focused on a collection of values and expectations known as positivism or modernism.

Positivists refer to researchers who endorse or approve of modernism’s assumptions.

1. Positive science uses experiments, survey tools, and observation. Its research results are descriptive, analytical, and generalizable to a broader population.
2. The essence of the data obtained is quantitative, allowing for advanced statistical analysis.
3. Positivism holds that data that cannot be proved in the laboratory are useless and that only data obtained by scientific methods can be used in decision-making.

According to the ‘economic man’ theory, consumers are rational decision-makers. Researchers quickly discovered, however, that consumers were not always fair or conscious of why they made their choices.

Consumers could not always reveal their fundamental motives, even though they were completely aware of them.

In 1939, a Viennese psychoanalyst named Ernest Ditcher started using Freudian psychoanalytic methods to discover consumers’ hidden motives. By 1950, this became known as motivation research.

It comprises projective approaches and in-depth interviews, commonly used by advertisers and advertising agencies today. Motivation research is a form of qualitative research that is used primarily to find and develop new advertising campaign ideas.

Marketers and advertising agencies often combine quantitative and qualitative studies. They conduct qualitative research to gain consumer insights and generate new ideas and quantitative research to forecast consumer behaviour based on various promotional inputs.

Many academics in various fields have been more interested in consumption than in making purchasing decisions. Because of this interest, the concept of experientialism or postmodernism was coined. Experientialism is a complementary approach to positivism that incorporates qualitative and other research approaches to explain consumer behaviour.

Experientialists and postmodernists are researchers who believe in experientialism’s assumptions. Naturalism, humanism, and post-positivism are several other names for this philosophy.

Comparison between Positivism and Experimentalism

	Positivism	Experientialism
Purpose	Prediction of consumer actions	Understanding consumption behaviour
Methodology	Quantitative methods	Qualitative methods
Assumptions	Consumers make rational decisions.	There is no single ‘objective’ truth.
	The causes and effects of behaviour can be identified and isolated.	Reality is subjective.
	Individuals are problem solvers and engage in information processing.	Cause and effect cannot be identified.
	A single reality exists.	Each consumption experience is unique.
	Objective measurement of events possible.	Interactions between researcher/ respondent effect research findings.
	Cause of behaviour can be identified and by manipulating causes, the marketer can influence Behaviour.
	Findings can be generalised to larger populations.	Findings are often not generalized to larger populations.

Postmodernists claim that the person or group creates all meaning and that this individual or group determines reality as much as or more than an external “objective” reality, resulting in multiple realities.

Postmodernists see Information as time, culture, and meaning-based, and consumption is seen as a symbolic mechanism as much as or more than an economic system.

They use ethnography, semiotics, and in-depth interviews to conduct qualitative study.

Ethnography is a method of analysis in which researchers embed themselves in the culture being studied to better understand the significance of different cultural practices.

Ethnography makes it simple to research consumer behaviour, including how people purchase goods and services.

Semiotics is the study of symbols and the meanings they express. Researchers use it to deduce the meanings of different consumption behaviours and rituals. It’s important to comprehend the target audience’s interpretations of nonverbal symbols.

In Indian culture, the sun represents life, the moon represents love, and the stars govern fate. In India’s rural markets, some famous brands have brand names that include numbers, animals, or icons, such as 555 soap, monkey brand tooth powder, or elephant brand toothpaste (Gemini tea). This expertise would aid in the creation of more convincing communications and the avoidance of potentially harmful errors.

In-depth interviews are an essential component of postmodernist analysis.

The results of each interview are special since they are the product of a particular researcher/respondent relationship and the researcher’s perception.

Consumer Research Process:

The consumer research process involves six major steps

(1) defining research objectives

(2) collecting and evaluating secondary data

(3) primary research design

(4) collecting primary data

(5) analysing data and

(6) report preparation

Let us understand each in detail”

1. Defining Research Objectives:

It’s essential to have a specific aim and goal for the research study that the marketing manager and the researcher agree on right away. This will ensure that an acceptable research design is created. A qualitative study, for example, may be helpful if the analysis aims to develop new advertising campaign ideas. Due to the high cost of each interview, the sample size would be limited, and a highly qualified specialist would spend more time face-to-face with respondents and analyse and interpret the data. However, the results may not be indicative of the overall industry.

A quantitative study is more appropriate if the aim is to find out what percentage of people use those items and how often they use them. If the researcher is unsure what questions to include in the questionnaire, he may perform a small-scale exploratory study to identify key issues and ask relevant questions.

2. Collecting and evaluating secondary data:

Secondary data is any information created for a reason other than the current issue under consideration, and it may come from inside or outside the organisation. It includes results based on in-house data from previous studies, consumer information gathered by the company’s sales or credit departments, and outside analysis. Secondary analysis is the process of identifying secondary data. Primary research is original research conducted by individuals or organisations to achieve particular goals.

Secondary research may often uncover sufficiently valuable data relevant to the current issue to remove the need for primary research. In most cases, secondary research provides guidance and clues for primary research design. Secondary data can be found in government departments, business sources, trade groups, marketing consulting companies, and advertising agencies.

3. Primary Research Design:

The study’s objectives determine the research design chosen. A quantitative research study is required if a marketer requires descriptive information, but a qualitative study is required if the goal is to generate new ideas.

Since qualitative and quantitative research approaches vary in the data collection process, sample design, and data collection instrument, both research approaches are discussed here.

• Qualitative Research Design:

The purpose of the research study and the type of data required are the first considerations for the researcher. Focus groups, in-depth interviews, and projective methods are some data collection techniques used in qualitative research. Many of these approaches have to do with psychoanalysis and clinical psychology. The focus is on open-ended and free-response questions, which enable respondents to disclose their unconscious beliefs and thoughts. These methods are widely used in the early stages of attitude research to learn about product-related values or characteristics and the attitudes that arise from them.

Depth Interviews, Focus Groups, and Projective Techniques are four standard data collection methods.

• Depth Interviews: The in-depth interview is the backbone of motivational studies, and it’s used to uncover hidden or repressed motivations. An in-depth interview is a long, unstructured, and informal conversation between a respondent and a professional interviewer. It lasts anywhere from 30 minutes to an hour on average. After determining the general topic to be explored, the researcher holds her or his involvement to a bare minimum. The questions are broad, and respondents are encouraged to discuss their hobbies, interests, needs, preferences, motivations, emotions, attitudes, and the product or brand under consideration. “Why do you think your friends smoke Gold Flake cigarettes?” is an example of indirect questioning. This approach aims to get around the respondent’s apprehensions about sharing personal feelings. Such research may provide valuable insights into product design, placement or repositioning, and advertisement testing.

Autodriving is a modern method of probing consumer behaviour that includes exposing respondents to photos, images, and audio recordings of their actions. This method allows them to look more deeply at themselves and comment on their consumption habits. This technique is thought to aid in the interpretation of qualitative data.

Since qualified practitioners perceive the outcomes of interviews and are analytical rather than objective, there is a greater risk of bias. Another source of error is the small size of samples, which may or may not be representative of the whole population.

• Focus Groups (FGD): A focus group is a standard method for exploratory research that brings together eight to ten people with similar backgrounds for a group discussion with a moderator/analyst. The debate is “based” on a product, service, or other topic for which the research is being performed. The discussion is guided by the moderator/analyst, who encourages participants to openly discuss their desires, attitudes, reactions’ motivations, lifestyles, feelings about the product and user experience, and so on. These sessions are usually two hours long and are videotaped.

The sessions are typically held in specially built conference rooms with one-way mirrors that enable advertisers and ad agency workers to observe the session without interfering with the responses.

College focus research is a subset of focus group research. Respondents are given scissors, paper, paste, and magazines to create a collage representing themselves and their relationship with the product or service under investigation.

Focus groups are thought to be beneficial in the following areas:

1. Generating hypotheses about consumers and market conditions.
2. Suggesting refreshing new ideas.
3. Checking an advertisement, product package, or product concept to determine any flaws.
4. Understanding consumers’ motivations, lifestyles and personalities.
5. Doing a post-mortem on failed products.

• Projective Techniques: Respondents are asked to imagine the other person’s actions in a given situation. These strategies elucidate the underlying motivations of people who, knowingly or unconsciously, engage in rationalisations and concealment to avoid admitting those flaws or desires. Untitled pictures, inkblots, unfinished sentences, word comparisons, and other-person characterisations are examples of vague stimuli used in projective techniques. The test taker is asked to characterise, complete, or demonstrate the significance of various ambiguous stimuli. Respondents’ inner thoughts are thought to affect their interpretations of ambiguous stimuli. They project their inner thoughts by taking the exams, exposing their underlying desires, wants, goals, fears, and motivations, whether or not they are entirely aware of them. The following are some examples of projective techniques:

1. Thematic Apperception Techniques (TAT): Respondents are shown pictures or cartoons about the product or subject under investigation and asked to explain what they see. Respondents must reveal their motives, beliefs, personalities, and feelings about the situation.
2. Word Association Test: This is an old and straightforward method. Respondents are given a set of words or phrases to read individually and are asked to respond quickly with the first word that comes to mind after hearing each one. It is believed that by reacting quickly, they reveal their true feelings by indicating what they identify most closely with the word or phrase.
3. Sentence Completion Test: The interviewer reads the first few words of a sentence and asks the respondent to complete it. This method helps reveal the consumers of goods and shops. The data gathered can be used to create marketing strategies.
4. Third Person Technique: The interviewer asks the respondent to describe a third person. Respondents are given some background information on the individual. When they describe a neighbour or a third person, it is thought that they answer without hesitation, expressing their attitudes or motives as they infer the attitudes or motives of another.

• Quantitative Research:

Quantitative research design includes the data collection method, instruments, and sample design.

• Data Collection Methods

There are three basic approaches to collecting data in quantitative study:

• Observation
• Experimentation and
• Survey

1. Observation:

Observing customers’ behaviour when purchasing and using goods is a crucial way to gain a deeper understanding of them. Researchers gain a greater understanding of what a product represents to a consumer by watching them because most consumers are unaware that they are being watched, and their behaviour remains normal. Observational analysis offers valuable data that is used in product marketing. Experientialists often use it to grasp the purchasing and consumption process. 1. Observation: Observing customers’ behaviour when purchasing and using goods is a crucial way to gain a deeper understanding of them. Researchers gain a greater understanding of what a product represents to a consumer by watching them because most consumers are unaware that they are being watched, and their behaviour remains normal. Observational analysis offers valuable data that is used in product marketing. Experientialists use it a lot to grasp the purchasing and consumption process.

2. Experimentation:

In experimental studies, the researcher may determine the relative sales appeals of package designs, prices, promotional deals, and copy themes, among other things, by designing appropriate experiments to determine cause and effect. Only one independent variable is manipulated at a time in such experiments, which is called causal analysis. This means that any differences in the dependent variable (results) are due to changes in the independent variables, such as consumer preferences or purchasing behaviour, rather than the effect of external factors.

3. Survey:

In a data collection survey, consumers are conscious of being observed and actively participating. A survey may be done in person, by mail, or online. There are many types of surveys:

(a) Personal interview survey: This is a direct face-to-face encounter between the interviewer and the respondent in their home or a retail shopping area (mall intercept). This method can obtain a large volume of reasonably reliable data. The versatility of this method is a significant benefit. The interviewer can adapt the questions to the situation and, if necessary, provide clarity to the respondent. The disadvantage is the high price.

(b) Mail surveys: These are done by sending questionnaires to individuals who fill them out at their convenience and return them in a postage-paid envelope. Since respondents are rarely asked to identify themselves, mail surveys can significantly reduce respondents’ reluctance to disclose sensitive information. Mail surveys have a low cost per respondent and can reach many consumers, resulting in a large volume of data. On the downside, since many consumers do not return completed questionnaires, mail surveys may result in limited responses.

(c) Telephone surveys: While not face-to-face, telephone surveys include interviewer-respondent contact and can be a valuable alternative to personal interviews. Personal interviews are slower and more costly than this approach. Telephone surveys are effective when the goal is to learn about a specific behaviour at the time of the interview, such as before or after watching a TV show. Telephone surveys generally receive a higher response rate than mail or in-person interviews. Since keeping respondents interested and on the phone for an extended period is challenging, the information gathered during each interview is reduced. Furthermore, determining the strength of respondents’ feelings over the phone is impossible.

• Data Collection Instruments:

 The method used to collect data is determined by the type of study. The questionnaire is the most popular method of data collection for quantitative studies. A questionnaire can be used to perform any of the three types of surveys (personal interview, mail and telephone).

A questionnaire is a series of questions posed to respondents in exchange for their answers.

Creating a decent questionnaire necessitates a great deal of experience. Asking the wrong questions, asking too many questions, and using the wrong words are common issues. Emphasis, brevity, and clarity are three characteristics of good survey questions. They are focused on the survey subject, are as short as possible, and are expressed clearly. The questions must be engaging, objective, clear, and simple to answer honestly and completely.

Questionnaires include pertinent demographic questions and questions related to the study’s subject. This makes it easier to analyse and categorise responses into appropriate categories. Before being widely used, questionnaires are pre-tested and any mistakes are corrected.

The true intent of a questionnaire may be concealed or revealed. Since the former removes responses that respondents may think are anticipated, the answers to a disguised questionnaire are often more honest than those to an undisguised questionnaire. Open-ended and closed-ended questions are the two types of questions. Closed-ended questions require the respondent to review only the appropriate response from a list, while open-ended questions require the respondent to provide details in their terms. Since open-ended questions do not limit respondents’ responses, they reveal more information but are more difficult to tabulate and analyse. Closed-ended questions, tested by respondents, are easy to code and interpret, but they only reveal a small amount of knowledge based on the alternative responses offered.

Instead of a questionnaire, researchers can use a list of statements and ask respondents to rate how much they agree or disagree with each statement (inventories).

Researchers often give respondents a list of product attributes or items and ask them to rate or feel them. Researchers often use attitude scales to obtain this form of evaluative data. Likert scales, Semantic differential scales, and Rank-order scales are examples of attitude scales.

The most common type of attitude scale is the Likert scale, which is simple to plan, interpret, and react to. This method entails compiling a list of claims applicable to the attitude under investigation. The respondents are asked to verify or write the number corresponding to how much they agree or disagree with the argument.

Example:

	Strongly Agree	Agree	Undecided	Disagree	Strongly Disagree
Big Shopper is generally a progressive store.	——	X	——	——	——
Big Shopper is generally well stocked.	X	——	——	——	——
Big Shopper’s merchandise is generally reasonably priced.	X	——	——	——	——

 The semantic differential scale is simple to create and administer. At both ends of the spectrum are a pair of bipolar pair adjectives (such as good/bad, like/dislike, expensive/inexpensive, sharp/blunt, aggressive/docile) or antonym words, with answer choices spaced in five or seven points in between. Based on each attribute, respondents are asked to mark the location on the spectrum that most closely reflects their attitude toward a commodity, idea, or organisation.

Example:

Healthy	——	——	——	——	——	——	——	——	Unhealthy
Fresh	——	——	——	——	——	——	——	——	State
Soft	——	——	——	——	——	——	——	——	Hard
Expensive	——	——	——	——	——	——	——	——	Inexpensive
Young	——	——	——	——	——	——	——	——	Old
Old Fashioned	——	——	——	——	——	——	——	——	Modern

 The semantic differential scale can be used to create graphic consumer profiles for the concept being researched. It’s often used to compare consumer perceptions of competing goods and current product perceptions to perceptions of the “ideal” product.

When using rank-order scales, respondents are asked to rate objects (products, shops, or companies) in order of choice based on criteria such as quality, value for money, or picture. Rank-order scaling exposes crucial strategic knowledge and aids in identifying product design flaws.

The following are six brands of toothpaste. We are interested in learning your preference for each of these brands. Place 1 alongside the brand you would be most likely to buy and 2 alongside the brand you would next be most likely to buy. Continue doing this until you have ranked all six brands.

• Colgate Total ————
• Aquafresh ————
• Close-up ————
• Pepsodent ————
• Neem ————
• Vicco Vajradanti ————

 

• Sample Design:

A sample design answers three questions: who will be surveyed (sampling unit), how many people will be surveyed (sample size), and how respondents will be selected (sampling procedure).

The researcher must first identify the target population (universe) that will be sampled before deciding who to survey (sampling unit). Will the sampling unit for a survey conducted by Indian Airlines be business travellers, holiday travellers, or both? Should travellers under the age of 30 be questioned? The validity of the research depends on interviewing the right target group or future target market.

The number of people who should be surveyed (sample size) is determined by the budget and the confidence level required in the research findings. Large samples, on average, provide more accurate results than small samples. If the sampling method is credible, sample sizes of less than 1% of a population will yield accurate results.

What method should be used to select respondents (sampling procedure)? A likelihood sample should be chosen if the researcher wishes to project the results to the entire population. A non-probability sample can be used if the researcher wishes the results to be “representative” of the population.

Probability and Non-probability Samples

Probability Sample:

• Simple random sample – Every member of the population has an equal chance

of being selected.

• Stratified random sample – The population is divided into mutually exclusive

groups (such as gender and age), and random samples are drawn from each group.

• Cluster or area sample – The population is divided into mutually exclusive

groups (such as cities or villages), and the researcher draws a sample of the groups to be interviewed.

Non-Probability Sample:

• Convenience sample – The researcher selects the most accessible population members to interview and obtain information from (e.g., shoppers in a departmental store).
• Judgement sample – The researcher uses her/his judgement to choose population members with good prospects for accurate information (such as doctors).
• Quota sample – The researcher finds and interviews a predetermined number of respondents in several categories (such as 50 males and 50 females).

 

• Collecting Primary Data:

The data collection process of research is likely the most costly and error-prone. Some respondents will not be available at home and need to be contacted again or replaced; others will refuse to participate in the interview; others will offer biased or dishonest answers; and some interviewers will be biased or dishonest themselves. Field staff is typically used in a quantitative study, either personally hired and trained by the researcher or contracted from a company specialising in conducting field interviews. The completed questionnaires are regularly checked to ensure that the reported answers are clear and complete.

• Data Analysis:

The final step in the analysis process is to draw important conclusions from the collected data. In qualitative research, the moderator/analyst typically analyses the respondents’ responses. In quantitative research, the researcher is in charge of data collection. The responses are translated into numerical scores, tabulated, and analysed using advanced computer analytical techniques.

• Preparation of Reports:

The researcher compiles a summary of her or his results, which she or he then presents to the appropriate parties. Depending on the needs of the management, it may or may not provide any action recommendations. The study reviews the research methods, tables, and graphs to support the findings. The researcher should present the most important results that apply to management decisions rather than presenting numbers and fancy jargon like “multivariate analysis of variance.”

Ethics:

Ethics is often confused, resulting in controversies. Investigating the idea and promoting its application to socially appropriate and beneficial marketing decisions is necessary. The problem is that what is ethical for one person might be immoral for someone else. Different cultures can have different ethical standards. Employees in the corporate world are supposed to follow a set of ethical guidelines. When things aren’t going well, and tensions mount, people’s ethics are put to the ultimate test. According to Andrew Stark, ethical dilemmas arise in two situations:

(1) decisions in ‘grey areas,’ where the correct decision is debatable, and

(2) decisions for problems where the right course of action is apparent, but individual and corporate constraints and circumstances drive well-intentioned marketing managers in the wrong direction.

Ethics refers to one’s principles and decisions, emphasising the norms, laws, and codes of moral behaviour that govern one’s actions. According to Erik N. Berkowitz et al., ethics are moral concepts and values that guide an individual’s or group’s behaviour and decisions. Ethics refers to the moral assessment of marketing practices and actions as correct or incorrect in marketing. The ethical or immoral nature of marketing behaviour is defined by generally accepted standards of conduct formed by society’s expectations of conduct, different interest groups, rivals, company management, and individual personal and moral values. Based on these principles, each citizen determines how to act, and the general public and various interest groups assess whether the acts are ethical or immoral.

Ethics in marketing activities is a critical problem that requires greater comprehension and knowledge to enhance its implementation. An ethical issue is a circumstance, challenge, or opportunity that can be identified and that requires an individual or organisation to choose between various acts that must be assessed as right or wrong, ethical or unethical. When marketing managers or consumers feel exploited or cheated, for example, it becomes an ethical problem, regardless of whether or not the action is legal.

Whatever the causes of unethical behaviour, marketing managers must determine how to address the problem once it has been detected. This necessitates a thorough understanding of most of the ethical problems in marketing. The majority of immoral behaviour occurs in the context of goods and promotions.

Little or no knowledge about protection, features, importance, or usage directions are examples of product-related ethical issues. Inferior products or parts, for example, may be used to reduce costs without informing consumers. It is unethical to neglect to warn consumers of changes in product quality since this appears to be a form of deception. Fake medical certificates are unethical for doctors to issue because they pose concerns about their overall integrity.

Product and service marketing, for example, also provides a range of examples of ethical problems, such as inaccurate and misleading advertisements and manipulative or deceptive promotional promotions. False advertisements have misled customers about obesity prevention and weight loss programmes, and some have taken legal action. Many advertisements have been chastised for relying too heavily on nuance to entice viewers. Bribery or making false claims in the context of personal sales is unethical. Occasionally, media reports illustrate cases of illegal behaviour by companies that pay bribes in exchange for large orders. Such activities undermine faith and fairness, causing harm to the organisation in question and tarnishing its reputation.

When a company acts ethically, consumers have a favourable perception of the company, its goods, and its services. When marketing activities deviate from socially acceptable norms, they become less effective, and in some instances, they are even stopped in the middle of a campaign. Using unethical marketing tactics can shift a brand’s perception, resulting in unhappy customers, negative advertising, a lack of confidence, a loss of sales, and legal action in the worst-case scenario. As a result, most businesses are acutely aware of their customers’ desires, preferences, and views and strive to safeguard their long-term interests. Furthermore, ethical violations often result in increased pressure from society and the government for businesses to take greater responsibility for their acts. Consumer interest groups, professional bodies, and self-regulatory organisations influence companies’ marketing practices significantly. As the value of social responsibility programmes has grown, marketing practises have been subjected to a slew of federal and state legislation aimed at protecting consumer rights and promoting trade.

Difference Between Qualitative and Quantitative Research:

	Qualitative research	Quantitative research
Main techniques used for data collection	Focus groups and in-depth interviews.	Surveys and scientific sampling.
Kinds of questions asked	Why? Through what thought process? In what way? What other behaviour or thoughts?	How much? How many?
Interviewer’s role	The interviewer must think critically and quickly frame questions and probes, responding to whatever respondents say. Highly trained professionals Required	Critical role is important, but interviewers need only be able to read scripts. They should not improvise or deviate. Little training is needed; responsible personnel are most suitable.
Questions asked	The position of questions may vary in sequence and phrasing from group to group and in different interviews. New questions are included, and old ones are dropped.	No variation. Must be the same question for each interview. The sequence and phrasing of questions must be carefully controlled.
Number of interviews	Fewer interviews but the duration of  each  interview is more	Many interviews to ascertain a scientific sample that is worth projecting.
Nature of findings	Develop a hypothesis, gain insight, explore language options, refine concepts, add numerical data, and provide diagnostics for advertising copy.	Test hypothesis, arrange factors according to priority, and furnish data for mathematical modelling and projections.