Role of research in understanding consumer behaviour

Module 2

Over View of Consumer Research Process

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

Develop Objectives
Collect Secondary Data

Design Qualitative Research Method Screener Questionnaire Discussion Guide

Design Quantitative Data Method Sample Design Data Collection Instrument

Conduct Research ( Using Highly Trained Interviewers)

Exploratory Research

Collect Primary Data ( Usually By Field Staff)

Analyze Data (Objective)

Analyze Data ( Subjective)

Prepare Report

Prepare Report

Developing Research Objectives

It is the first and most difficult step ion consumer research process is to accurately define the objective s of the research

Collecting Secondary Data

The rationale for secondary data searches is simply that it makes good sense to investigate whether currently available information will answer in part or in full the research question at hand Internal secondary data- sales audit, past consumer service calls, letters
of inquiry from customers or data collected via warranty card

External secondary data

Secondary data
Consumer panels

Designing Primary Research

Designing and conducting qualitative research
Depth interviews Focus groups

Tools and techniques used in qualitative research

Discussion guides
Question by question Go by the flow method

Projective techniques
Incomplete sentences Photo/visual for story telling Role playing Word associations tests

Metaphor analysis (Zaltman Metaphor Elicitation Technique)

Tools and techniques used in qualitative research

The growing presence of online focus groups Looking-In (online) Research
Consumer oriented websites, online consumer communities, as well as consumer blogs

Designing Primary Research

Designing and conducting quantitative research
Observational research
Experts Mechanical and electronic device Physiological observation device

Experimentation
Controlled experiment Test marketing

Survey research
Personal interview survey Telephone interview survey Mail survey E-mail survey Online or internet based survey

Qualitative research data collection instruments

Questionnaires Attitude scales
Likert scale Semantic differential scale Rank order scale

Consumer satisfaction measurement

Customer satisfaction surveys Mystery shoppers Complaint analysis

Data Analysis and Research Reporting Findings

Coded and quantified Then all responses are tabulated and analyzed Body of report includes
executive summary Methodology used Summary findings

Models of Consumer Behaviour

A model is very often referred to as an abstract representation of a process or relationship There are many comprehensive models of consumer behaviour These models focus on consumer decision making, especially on how individual consumers Arrive at the brand choices

Nicosia Model
Sub field 1 Firms marketing & communication efforts

Models of Consumer Behaviour

Message Exposure
Subfield 2 Consumers characteristics (Pre disposition & personality)

Field 1: Consumers attitudes

Attitude

Search And Evaluation

Experience/Relation(s)

Field 2 : Search and Evaluation

Field 4 : Feedback

Consumption

Motivation

(Pre Action Field)

Decision ( Action) Purchasing Behaviour

Field 3 : Act of Purchase

 The Nicosia model focus on the relationship between the message and its impact on the potential consumers The Nicosia model has focused on four major fields 1. consumers attitude formation based on message exposure 2. Consumers information search and evaluation of alternatives 3. The act of purchase 4. Feedback given by the consumer

 The Howard Sheth Model

Intention

Significative :
Quality Price Distinctiveness Service Availability

Overt Search

Confidence

Purchase

Intention Stimulus Ambiguit y

Symbolic:
Quality Price Distinctiveness Service Availability

Attitude

Attitude
Brand comprehension

Social:
Family Reference Social groups

Att ent ion

Perce ptual bias

Motives

Choice Criteria

Brand Comprehension

Attention

Satisfaction

The Howard Sheth Model

This model distinguishes three possible types of decision making namely 1. Extensive Problem Solving 2. Limited Problem Solving 3. Routinised Response Behaviour

 The basic structure of Howard Sheth model consists of four major constructs 1. Inputs 2. Perceptual and learning constructs 3. Outputs 4. Exogenous Variables

Inputs
Significative stimuli Symbolic stimuli -verbal or visual product characteristics Social stimuli

Exogenous variables
Importance of purchase Personality traits Time pressure Knowledge and reference

Engel- Kollat- Blackwell Model(EKB Model)

INPUT INFORMATION PROCESSING DECISION MAKING
Problem Recognition Internal Search Search

EXTERNAL VARIAB

Individu Characte

Exposure

Stimuli Marketer Dominated. Other Stimuli

Attention Alternative Evaluation Comprehension Perception Memory

Beliefs

Motives Values Lifestyle Persona Percept

Attitudes

Yielding Acceptance

Intentions Purchase

Social Influence Family Referen Groups Social C

Retention Outcomes

Situatio Influen

External Search

Dissatisfaction

Satisfaction

Input Process Output Model

Input
Firms Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of Distribution 1. 2. 3. 4. 5.

External Influences
Sociocultural Environment Family Informal Sources Other Non Commercial Sources Social Class Subculture And Culture

Consumer Decision Making

Psychological field Motivation Perception Learning Personality Attitudes Experience

Need Recognition Purchase Search

Process
Evaluation of Alternatives

Post decision Behaviour

Purchase 1. Trial 2. Repeat Purchase

Output

Post Purchase Evaluation

Internal Influences
Motivation: is the driving force within the individual that impels them to action. This driving force is produced by a state of tension , which exists as the result of unfulfilled needs Personality: those inner psychological characteristics that both determine and reflect how a person responds to his or her environment

 Perception: is defined as the process by which

an individual selects, organizes and interprets stimuli in to a meaningful and coherent picture of the world, it can be described as the how we see the world around us Learning: The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behaviuor Attitude: is a learned predisposition to behave in a consistently favourable or unfavorable way with respect to a given object

Communications:

External Influences
Social Class Culture Reference Groups Family Members

Levels of Consumer Decision Making

Complex decision making or extensive problem solving model Low involvement decision making or limited problem solving model Routinised response behaviour

Every consumer does not require or receive same degree of information search

Extensive Problem Solving (Complex Decision)

When consumers have no established criteria for evaluating a product category or specific brands in that category or have not narrowed the number of brands they will consider to a small ,manageable subset , their decision making efforts can be classified as extensive problem solving Needs greater deal of info E.g.: purchase of an iPod

Limited Problem Solving ( Low Involvement)

At this level consumers have already established the basic criteria for evaluating the product category and the various brands in the category How ever they have not fully established preferences concerning a select group of brands E.g.: purchasing a car

Routinised Response Behaviour

At this level consumers have experience with the product category and a well established set of criteria with which to evaluate the brands they are considering In some situations they may search for small amount of information In others they just review what they already know E.g.: Purchase of Toothpaste

Four Views of Consumer Decision Making

The models of consumer decision making refers to a general view or perspective as to how ( and why) individual behave as they do

Four Views of Consumer Decision Making

Models of Consumers
Economic View
Cognitive View

Passive View
Emotional View

An Economic View
In the field of economics, which portrays a world of perfect competition consumer decision making is considered to be rational And to be rational a consumer would have to
Be aware of all available product alternatives Be capable of ranking each alterative in terms of its benefits and disadvantages and Be able to identify the one best alternative

Realistically this is not possible because

People are limited by their existing skills, habits, and flexes People are limited by their existing values and goals People are limited by extent of their knowledge

Also consumer generally is unwilling to engage in extensive decision making activities and will settle instead for a satisfactory decision one that is good enough

Passive View
Opposite to the rational economic view of consumers is the passive view It depicts the consumer as basically submissive to the self-serving interests and promotional efforts of marketers In this view consumers are perceived as impulsive and irrational purchasers, ready to yield to the aims and into the arms of marketers Principal limitation of the passive model is that it fails to recognise that the consumer plays an equal role in buying situations

Cognitive View
Portrays the consumer as a thinking problem solver Model focuses on the processes by which consumers seek and evaluate information about selected brands and retail outlets Consumers are viewed as information processors Information processing leads to the formation of preferences and purchase intentions Model also recognises that the consumer is unlikely to even attempt to obtain all available information about every choice and stop seeking the info when they perceive that they have obtained sufficient info to make a satisfactory decision

An Emotional View
In real life consumers are associated with deep feelings or emotions such as joy, fear, love, hope, fantasy etc. These feelings or emotions are likely to be highly involving in emotional purchase less emphasis is placed on Prepurchase info More emphasis is placed on current mood and feelings Emotional decisions are rational too Mood of the consumer also affects decision making Individuals in a positive mood recall more information about a product than those in a negative mood

Situational Influences
The purchase decision and consumption process always occur in the context of a specific situation Therefore understanding the situations is important Defined as all those factors particular to a time and place that do not follow from a knowledge of personal and stimulus(choice alternative) attributes and that have an effect on current behaviour E.g.: The way a consumer reacts to a TV commercial

The nature of situational influence

Consumers do not respond to stimuli such as advertisements and products presented by marketers in isolation Instead they respond to marketing influences and the situation simultaneously To understand the consumer behaviour we must know about
We must know about the consumer About the object such as a product that the consumer is responding to Situation in which the response is occurring

The situation interacts with the activity and the individual to determine behaviour

Situation Communications Purchase Use Disposition

Situation characteristics Physical features Social surroundings Temporal perspective Task definition Antecedent states

Individual characteristics Culture and subculture Demographics Social class Motivation Personality Attitudes lifestyle

Marketing activity Product Package Advertisement Sales presentation Retail outlet

Consumption responses
Problem recognition Information processing Alternative evaluation Purchase Use Disposition Evaluation

Four Broad Categories or Broad Types of Situations

Types of situation

Communication situation

Purchase situation

Usage situation

Disposition situation

The Communications Situations

The situation in which consumers receive information has an impact on their behaviour Whether one customer is
Alone or in group In a good mood or bad mood To what degree to which he or she sees and listens to marketing communications

Delivering an effective message to consumers who are in a receptive communication situation and interested in purchasing a product Difficult to find high-interest potential buyers always

The Purchase Situation

Marketers must understand how purchase situations influence consumers in order to develop marketing strategies that enhances the purchase of their products Shortage of time , the number of brands considered, and the price shopper willing to pay may be considered E.g.: mothers shopping with children E.g.: purchase of beverage after the result announcement.

The Usage Situation

Marketers need to understand the usage situations for which their products are, or may become, appropriate Using this knowledge marketers can communicate how their products create consumer satisfaction in each relevant usage situation E.g.: what beverage would you prefer for a lunch along with your parents?

The Disposition Situation

Consumers must frequently dispose of products or product packages after or before product use Some consumers consider ease of disposition an important product attribute These people may purchase items that can be easily recycled Marketers need to understand how situational influences affect disposition decisions in order to develop more effective and ethical products and marketing programs E.g.: disposition after finish reading a news paper and soft drink

Situational Characteristics and Consumption Behaviour

Physical Features
Physical surroundings include dcor, sounds, aromas ,lighting , weather and the other material surrounding the stimulus object Particularly used type of situational influences The sum of all features of a retail environment is referred to a the store atmosphere A stores influences the consumers judgments of the quality of the store and stores image Atmospherics is the process managers use to manipulate the physical retail environment to create specific mood responses in shoppers

Social Surroundings
Are the other individuals present during the consumption process Peoples actions are frequently influenced by those around them E.g.: the dress you prefer for first dating, on the joining date of your first job

Temporal Perspective
Are situational characteristics that deal with the effect of time on consumer behaviour The amount of time available for the purchase has a substantial impact on the consumer decision process Less time available shorter the info search and more suboptimal purchases will be made Limited time results in brand loyalty and no comparative shopping

Task Definition
Is the reason the consumption activity is occurring E.g.: for self use or gift giving The type of gift given and desired varies by occasion and gender Anxiety in the part of both givers and takers

Antecedent States
Features of the individual person that are not lasting characteristics, such as momentary moods or conditions, are called antecedent states
E.g.: the sate of depression, happiness

Moods: are transient feeling states that are generally not tied to a specific event or object Operate without the individuals awareness Moods does not affect consumer behaviour as compared to emotion Momentary conditions: reflect temporary stats of being such a tired, ill, having extra money, being broke and so forth
E.g.: individual who dont have two wheeler for a moment will act differently compared to who dont have two wheeler

Ritual Situations
Can be described as a socially defined occasion that triggers a set of interrelated behaviors that occur in a structured format and that have symbolic meaning Ritual situation can range from completely range from completely private to completely public E.g.: a private prayer on the anniversary of an event with special meaning to t he individual l E.g.: a couple celebrating their wedding anniversary every year in same hotel