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Chapter 16 Consumer Research 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 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? Marketing research surveys often use a variety of methods to contact and interview respondents, including: 1. Online Surveys: These are commonly conducted via email, website pop-ups, or social media platforms. Respondents are typically directed to a survey hosted on a website. 2. Telephone Surveys: Respondents may be contacted by phone and interviewed by a researcher or through an automated system. 3. In-Person Surveys: Researchers may approach respondents in public places or at their homes to conduct face-to-face interviews. 4. Mail Surveys: Surveys may be sent to respondents by mail, who are then asked to complete and return them. Respondents are often selected based on specific criteria related to the research objectives, such as demographics, purchasing behavior, or brand awareness. Researchers aim to select a representative sample that reflects the characteristics of the target population. Respondents may or may not be informed of the specific purpose of the survey, depending on the research design. However, researchers are generally required to obtain informed consent from respondents before conducting interviews. The name of the company or brand involved in the survey is typically disclosed to respondents, as transparency is important in maintaining trust and credibility. Knowing the brand allows respondents to provide feedback relevant to the company's products or services. 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. 16.3 What are the advantages and limitations of secondary data? Obtaining secondary data before engaging in primary research offers several advantages. First, secondary data may provide a solution to the research problem and eliminate the need for primary research altogether. Secondary research may help to clarify and redefine the objectives of the primary study and provide ideas for the methods to be used and the difficulties that are likely to occur during the full-scale study. 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. 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. 16.5 Why might a researcher prefer to use focus groups rather than depth interviews? When might depth interviews be preferable? Focus groups consist of eight to ten respondents who meet with a moderator/analyst for a group discussion. Respondents are encouraged to discuss their interests, attitudes, reactions, motives, lifestyles, feelings about the product, usage experience, etc. A researcher can easily conduct two or three focus groups in one day. Some marketers prefer focus groups because it takes them less time overall to complete the study, and the group concept yields a greater number of new ideas and insights. A depth interview is a lengthy, non-structured interview between a respondent and a highly trained interviewer. Respondents are encouraged to talk freely about their activities, attitudes, and interests, in addition to the product category or brand under study. Some marketers prefer the individual depth interview because they feel that respondents are free of group pressure, are less likely to give socially acceptable responses, are more likely to remain attentive, and reveal private thoughts. 16.6 How would the interpretation of survey results change if the researcher used a probability sample rather than a nonprobability sample? Explain your answer. The interpretation of survey results can vary depending on whether the researcher used a probability sample or a nonprobability sample. Here's how the two approaches differ: 1. Probability Sample: • In a probability sample, every member of the population has a known and non-zero chance of being selected. This means that the sample is likely to be representative of the population, allowing for generalization of the results. • The researcher can calculate measures of sampling error and confidence intervals, which provide an estimate of how much the sample results might differ from the true population parameters. • With a probability sample, researchers can use statistical tests to make inferences about the population with a known level of confidence. 2. Nonprobability Sample: • In a nonprobability sample, the selection of respondents is based on criteria other than random selection, such as convenience or judgment of the researcher. This can introduce bias into the sample, making it less representative of the population. • Because nonprobability samples are not representative, the results cannot be generalized to the larger population. They are useful for exploratory research or when it is difficult or impractical to obtain a probability sample. • Without a known sampling error, the precision of the estimates from a nonprobability sample is unknown. This makes it challenging to assess the reliability of the results. In summary, using a probability sample allows for more reliable and generalizable results, as the sample is more likely to be representative of the population. Nonprobability samples, while useful in certain circumstances, are generally less reliable for making inferences about the larger population. 16.7 Why is observation becoming a more important component of consumer research? Describe two new technologies that can be used to observe consumption behavior and explain why they are better to use than questioning consumers about the behavior being observed. Observational research is an important method of consumer research because marketers recognize that one can gain an in-depth understanding of the relationship between people and products is by watching them in the process of buying and using products. Observation of consumer behavior via electronic means has grown significantly. Students can choose to describe a number of different technologies. Observational research is very powerful because it enables researchers to track actual behavior. In the current technological environment, the behavior can be used to model purchase relationships or to personalize communications to make them more effective. 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. (a) Qualitative Research Design: Objective: Understand the needs, preferences, and perceptions of young adults regarding facial cleansers to inform the extension of Neutrogena's product line. Method: Focus Group Discussions (FGDs) Sample: Young adults aged 18-30, both male and female, from diverse backgrounds. Procedure: 1. Recruit participants who use facial cleansers regularly. 2. Conduct FGDs in a neutral and comfortable environment. 3. Use a semi-structured guide to explore topics such as current facial cleanser usage, satisfaction with existing products, desired product features, and willingness to try new products. 4. Encourage open discussion and interaction among participants. 5. Audio or video record the sessions for later analysis. 6. Analyze the data for common themes, preferences, and insights. Expected Insights: Consumer preferences regarding product ingredients, packaging, pricing, and marketing messages, as well as potential barriers to trying new facial cleansers. (b) Quantitative Research Design: Objective: Quantify the preferences and buying intentions of young adults regarding facial cleansers to support the product line extension decision. Method: Online Survey Sample: Young adults aged 18-30, both male and female, from across the country. Procedure: 1. Design a survey questionnaire with close-ended questions. 2. Include questions about current facial cleanser usage, brand awareness, preferred product features, purchase frequency, and price sensitivity. 3. Use a representative sampling method to ensure a diverse sample. 4. Distribute the survey through social media, email lists, and online forums. 5. Collect and analyze the responses using statistical tools. 6. Look for patterns and correlations in the data to identify key preferences and trends. Expected Insights: Quantitative data on the popularity of different product features, brand loyalty, price sensitivity, and the potential market size for the new product line. 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 (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. 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. Discussion Guide: Studying College Students' Reactions to Their Brand and Model of Cell Phone Introduction: • Welcome and thank participants for their participation. • Explain that the purpose of the discussion is to gather insights into their experiences and perceptions regarding their current cell phone brand and model. Warm-up Questions: 1. Could you please share with us the brand and model of the cell phone you are currently using? 2. How long have you been using this particular cell phone? 3. What were the main factors that influenced your decision to choose this specific brand and model? Brand Perception: 4. How satisfied are you overall with your current cell phone? 5. What are the standout features or aspects of your cell phone that you appreciate the most? 6. Are there any features or aspects of your cell phone that you find frustrating or disappointing? Usage and Behavior: 7. On average, how frequently do you use your cell phone in a typical day? 8. What are the primary activities for which you use your cell phone (e.g., calling, texting, social media, gaming)? 9. Can you recall any particularly positive or negative experiences you've had with your cell phone? Brand Loyalty: 10. How likely are you to continue using the same brand and model when you upgrade your cell phone? 11. What factors would potentially persuade you to switch to a different brand or model? Perceived Value: 12. Do you believe that your cell phone offers good value for the price you paid? 13. In your opinion, does your cell phone meet, exceed, or fall short of your expectations? Future Considerations: 14. If you could change one thing about your cell phone, what would it be? 15. What features or improvements would you like to see in future models of cell phones? Wrap-up: • Thank the participants for their valuable insights and time. • Invite them to share any additional thoughts or comments. • Inform them of any follow-up actions that may be taken based on the discussion. Note: This discussion guide can be adjusted based on the specific research goals and objectives, as well as the depth of insights desired. 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. 16.10 Using one of the attitude scales in Figure 16.6, construct an instrument to assess your fellow students’ opinions regarding the technological support services provided by your university. Likert Scale Instrument for Assessing Technological Support Services at University Instructions: Please indicate your level of agreement with each statement regarding the technological support services provided by our university. 1. Strongly Disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly Agree Questions: 1. The technological support services at our university are easily accessible when needed. 2. The technological support staff at our university are knowledgeable and helpful. 3. The university provides adequate resources and tools for resolving technological issues. 4. I am satisfied with the timeliness of the technological support services provided by the university. 5. The university's technological support services meet my expectations. 6. I would recommend the university's technological support services to others. Scoring: Assign a numerical value to each response (1-5) and calculate the mean score for each question. Higher mean scores indicate more positive opinions about the technological support services. Note: This instrument can be administered electronically or on paper, depending on the survey method chosen. Adjustments can be made to the scale or questions based on the specific context of the university and the goals of the assessment. Instructor’s Discussion Students should be guided to use skills of science and creativity in designing an appropriate instrument. Students may not have considered the use of mystery shopping as a measurement for this example but it might be very appropriate. The supervisor of the technology department should be approached first before a task like this is undertaken. With approval, the students and the technology department may gain valuable insight. 16.11 Using the scales in Figure 16.6, develop a questionnaire to measure students’ attitudes toward the instructor in this course according to the following guidelines: (a) Prepare five statements measuring students’ attitudes via a Likert scale. (b) Prepare five semantic differential scales to measure student attitudes. (c) Can the same dimensions be measured by using either scaling technique? Explain your answer. (a) Likert Scale Questionnaire: Instructions: Please indicate the extent to which you agree or disagree with each statement regarding your attitude toward the instructor in this course. 1. The instructor in this course is knowledgeable about the subject matter. 2. The instructor in this course effectively communicates course material. 3. The instructor in this course is approachable and responsive to student questions. 4. The instructor in this course provides helpful feedback on assignments and assessments. 5. Overall, I am satisfied with the instructor in this course. (b) Semantic Differential Scales: Instructions: Please rate the instructor in this course on the following scales. 1. Knowledgeable • Extremely Knowledgeable • Not at all Knowledgeable 2. Effective Communication • Very Effective • Not at all Effective 3. Approachable • Very Approachable • Not at all Approachable 4. Helpful Feedback • Extremely Helpful • Not at all Helpful 5. Overall Satisfaction • Very Satisfied • Very Dissatisfied (c) Explanation: The same dimensions can be measured using either scaling technique, but the Likert scale provides a more nuanced measurement by allowing respondents to indicate their level of agreement or disagreement on a continuum. Semantic differential scales, on the other hand, provide a more polarized measurement by asking respondents to choose between two opposing adjectives. Both techniques can effectively measure attitudes, but the Likert scale may offer more detailed insights into the nuances of student attitudes toward the instructor. Instructor’s Discussion The same dimensions can be measured by using either scaling method. The instructor may use the actual student evaluation form used by the university to illustrate how Likert scales and semantic differential scales can be used interchangeably. A useful extension of this exercise is to have students pick the best three examples from the class (no matter which scale is used) and actually administer the examples to the class. Be forewarned that sometimes answers can be rather pointed and personal. Follow the actual questioning process with a debriefing of the students to enhance their learning experience. The instructor may ask students which factors have influenced their own responses to student evaluations of instructors which they filled out in the past and which influenced responses on the three administered in this class. For example, how is one’s response related to getting back an exam grade on the same day the evaluations are administered? Is the response tempered by knowing that it will be made public? 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 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. a. Considering the descriptions in the first part of this story, you may feel comfortable taking your models, analytical techniques, and general knowledge about the steel industry to the new firm. These are skills and knowledge that you have developed over the years and are a part of your professional expertise. However, taking specific data, customer profiles, or detailed information about Acme's operations would likely be unethical and could potentially be illegal, as it could constitute theft of intellectual property or trade secrets. b. From an ethics standpoint, companies can control or be secure with employees who have access to sensitive information by implementing strict policies regarding data security and confidentiality. This includes requiring employees to sign nondisclosure agreements (NDAs) and providing training on the importance of data protection. Companies can also use technology to monitor and restrict access to sensitive information, and conduct regular audits to ensure compliance with policies. c. The dilemma created in this story is challenging. On one hand, the opportunity to double your salary, receive a secure retirement package, and work for a global industry leader is very attractive, especially considering the challenges faced by Acme and the U.S. steel industry. On the other hand, the ethical implications of taking sensitive information from Acme to the new firm are significant. It raises questions about loyalty, trust, and the ethical responsibilities of employees in such situations. 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. a) Qualitative Approach: 1. Focus Groups: Conduct focus groups with young girls in the target age range to understand their perceptions, preferences, and attitudes towards creative play and toys. Explore their experiences with similar toys, their thoughts on the ello Creation System's concept, and their expectations regarding the product. 2. In-depth Interviews: Conduct one-on-one interviews with parents or caregivers to understand their perspectives on the importance of creativity and imagination in children's play. Explore their purchasing behaviors and decision-making processes related to toys. Quantitative Approach: 1. Surveys: Administer surveys to a larger sample of young girls and their parents to gather quantitative data on their attitudes towards creative play, their awareness of the ello Creation System, and their likelihood of purchasing the product. Include questions about their current toy preferences and play habits. 2. Observational Studies: Conduct observational studies in a controlled play environment to observe how young girls interact with and respond to the ello Creation System compared to other toys. This could provide valuable insights into their engagement and enjoyment of the product. Marketing Implications: Information obtained from these research approaches could help Mattel in understanding the target audience's preferences, needs, and behaviors related to creative play. This information could be used to refine the marketing strategy, including product positioning, messaging, and communication channels, to effectively reach and engage the target audience. b) Method of Determining Customer Satisfaction: Post-Purchase Surveys: After young girls have had the opportunity to play with the ello Creation System, Mattel could administer surveys to both the girls and their parents to assess their satisfaction with the product. The surveys could include questions about the overall enjoyment of the toy, the ease of use, the perceived value for money, and any suggestions for improvement. Mattel could also use Net Promoter Score (NPS) questions to gauge the likelihood of customers recommending the toy to others. Feedback Mechanisms: In addition to surveys, Mattel could establish online feedback mechanisms or communities where customers can share their experiences, ideas for using the toy, and suggestions for future improvements. This ongoing feedback loop could provide valuable insights for product development and marketing strategies. 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. 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” How can the Pima Air and Space Museum further leverage the success of "The Great Paper Airplane Project" to continue attracting younger visitors and ensure their retention? 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. Solution Manual for Consumer Behaviour Leon G. Schiffman, Leslie Lozor Konuk, S. Ramesh Kumar 9789332555099, 9780134734828

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