Chapter 2

Question 1

What is the importance of consumer research for firms and consumer?

Answer 1

• Enables marketers to better meet consumer needs by offering more suitable products and marketing messages (consumers get more choice and better offerings)
• Better understanding of decision-making process enables more effective promotional messages (advertising)

Question 2

What are the six steps of the consumer research process?

Answer 2

1. Defining research objectives
2. Collecting and evaluating secondary data
3. Designing primary research study
4. Collecting primary data
5. Analysing data
6. Preparing a report of the findings

Question 3

Explain step 1 of the consumer research process

Answer 3

Defining research objectives:
The most essential step in the CRP. Need to clearly define what the specific purposes and objectives of the study are in order to attain the correct information and avoid costly mistakes. Defines the type of information and level of information needed and guides the rest of the process.

Question 4

Explain step 2 of the consumer research process

Answer 4

Collecting and evaluating secondary data:
Secondary data – data that has already been gathered for a purpose other than the study in question
Can be gathered internally or externally
Internal – inhouse used for other purpose; analysis of customer files; used to calculate customer lifetime value
External – Data collected by outside organisation; government (StatsSA), journals, newspapers, books, search engines; commercial – market research firms

Question 5

Give a brief understanding of the choices in step 3 when designing primary research

Answer 5

Choosing a qualitative or quantitative study depends on the nature of the study, type of information needed and resources available. New ideas = qualitative. Descriptive or numerically driven = quantitative

Question 6

When is qualitative consumer research appropriate?

Answer 6

. Consumers not always consciously aware of why decisions made. Researchers want to understand underlying motivation of consumers to understand behaviour; results can’t be generalised but useful in initial stages of identifying and developing products/campaigns. Arose from rejection of principle that consumers consume at highest utility and lowest cost

Question 7

List and describe the types of qualitative data research methods

Answer 7

• In-depth interview – 1 on 1; 20-60 mins; non-structured; probing; recorded; single respondent; foster encouraging environment; appropriate for product design/repositioning
• Focus groups – 8-10 participants; recruited through screener questionnaire; 2 hours; recorded; two-way mirrors; move to online; discuss reactions to concepts
• Researchers use discussion guides in focus groups and interviews to set line of questioning; may improvise however
• Projective techniques – used to identify consumers subconscious associations, feelings and motivations; uses disguised tests that use ambiguous stimuli
Some examples of projective techniques:
o Word associations – first word that comes to mind and explain why
o Sentence completion
o Photo storytelling – tell story based on visuals
o Role playing – act out roles or situations
• Metaphor analysis – use of one form of expression to describe another: ZMET
• Looking-in – browse online to see first-hand opinions and interests

Question 8

When is quantitative consumer research appropriate?

Answer 8

Used to better understand acceptance of products/brands/promotions; to pinpoint satisfaction; used to forecast; can be generalised

Question 9

Explain the concepts of validity and reliability:

Answer 9

• A study is valid if it does collect the appropriate data needed to answer the questions or objectives stated
• A study is reliable is the same questions asked of a similar sample produce the same findings

Question 10

Quantitative design types

Answer 10

• Descriptive (status of variable) – what %
• Correlational (relationship between variables) – Is there a relationship
• Experimental (causal relationship)
o Controlled – one/some variable manipulated, and the rest kept constant
o Test marketing – representative market to test
o Lab or field – VR popular

Question 11

Define sampling

Answer 11

• Subsets of population to estimate characteristics of entire population

Question 12

What is a sampling plan?

Answer 12

• Sampling plan addresses whom to include, how many to include, how to select them

Question 13

What are the types of sampling?

Answer 13

• Probability and non-probability sampling

Question 14

List some quantitative research data collection instruments:

Answer 14

1. observation
2. survey questionnaires
3. attitude scales

Question 15

What is a customer satisfaction survey?

Answer 15

o How satisfied customers are with attributes of product and importance of the relative attributes

Question 16

What is observation and mechanical observation?

Answer 16

• Observation:
o Watching and recording purchasing and using products to understand the relationship
• Mechanical observation:
o Uses technology to record consumer behaviour
o RFID
o Physiological observation – monitors physical response to stimuli

Question 17

Describe questionnaire process

Answer 17

o Primary quantitative collection method
o Sent via mail or online or telephonic or in person
o Must be interesting, objective and easy to complete
o Must have substantive and demographic questions
o Disguised or undisguised
o Open or closed ended

Question 18

Describe attitude scales

Answer 18

o Indicate relative feelings
o Likert scale – level according to number
o Semantic differential – continuum with opposites on scale

Question 19

Explain the data analysis and reporting findings process

Answer 19

• Open-ended responses are coded & quantified
• All responses are tabulated & analyzed
• Final report includes executive summary,
body, tables & graphs, full description of methodology

Question 20

Probability-sampling

Answer 20

gives every element in the target population a known and non-zero probability of being selected

Question 21

Non-probability sampling

Answer 21

– Does not give some elements of the population a chance to be in the sample. Cant make statistical inferences

Question 22

Types of probability sampling:

Answer 22

1. Simple random sampling – gives every element in target population, and each possible sample of a given size, an equal chance of being selected.
2. Stratified sampling – target population separated into mutually exclusive, homogenous groups and then a simple random sample chosen from each group. Selected samples combined into single sample
3. Systematic sampling – choose random starting element, subsequently elements chosen using fixed interval
4. Cluster sampling – elements of population selected in naturally occurring groups or clusters

Question 23

Types of non-probability sampling:

Answer 23

1. Availability sampling – elements selected from target population on basis of availability, convenience of researcher or self-selection
2. Purposive sampling – elements selected as they satisfy specific inclusion and exclusion criteria
3. Quota sampling – population divided into mutually exclusive subgroups and elements are solicited from respective subgroups until a target figure is reached