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Measuring Consumer Behaviour Part I

Week 5

Required readings Extract from another textbook (available on FLO): “Conducting research in consumer behaviour”, in

Hoyer, W. D,, Macinnis, D., Pieters, R., Chan, E., and Northey, G. (2018) Consumer Behaviour, Asia- Pacific Edition, Cengage Learning, pp.36-48 .

Learning objectives

•  To understand the importance of measuring consumer behaviour and the different approaches to it

•  To explain the main types of research methods (and data) that can be used for the measurement of consumer behaviour (primary and secondary)

•  To understand how to set up a standard consumer survey aimed at evaluating memory and decision-making (at brand-level)

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Alternative views on consumer behaviour

•  Consumer research can be classified by paradigm, which is the set of assumptions a researcher makes about what they are studying and how they study it.

•  Positivism (modernism): –  Paradigm that emphasises

the supremacy of human reason and the objective search for truth through science

•  Interpretivism (postmodernism): –  Paradigm that emphasises

the importance of symbolic, subjective experience and the idea that meaning is in the mind of the person

Why measuring consumer behaviour?

Food for thoughts:

What carries more insights?

A.  Factual knowledge: who, what, when B.  Theoretical explanations: why C.  A combination of A & B

But, can A and B be combined?

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Issue

•  The measurement of consumer behaviour (positivist view) and the focus on the theoretical explanation of it (interpretivist view) are often SEPARATE

•  They both offer different insights/advantages; thus being familiar with both ‘views’ provides you with a more holistic take on consumer behaviour (hence why we deal with both in this topic!)

So…Why measuring cb?

•  Objective and scientific (facts, not ‘stories’)

•  Helps identifying measurable trends (expectations), which leads to forecasting and setting of practical guidelines

•  Accountability and more straightforward link with managerial decisions and actions (e.g., marketing strategies)

CB research methods

•  Primary – managers collect data via surveys, focus groups, experiments etc. to support their decisions and operations

•  Secondary – managers use data collected by other entities (e.g., governments and agencies) to support their decisions and operations

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•  Surveys •  Focus groups and interviews •  Storytelling, pictures and diaries •  Experiments (incl. field experiments) •  Conjoint analysis •  Observations and ethnographic research •  Purchase panels •  Database analysis and netnography •  Psychophysiological reactions

(neuroscience)

Primary CB research tools

Focus groups and interviews (qualitative research)

•  Focus groups – small group of consumers discussing a particular issue guided by a trained moderator in a controlled setting (6-8 participants is quite typical)

•  Interviews – one to one discussion with a trained interviewer around a particular issues (structured or semi-structured Q&As)

Data is then transcribed at analyzed in terms of recurring themes/answers (narratives are extracted)

Storytelling, pictures and diaries (qualitative research)

•  Storytelling – consumers are asked to tell stories about their usage experiences

•  Pictures/photos – consumers are asked to draw pictures or take photos about their usage experiences to explain/remember them

•  Diaries – consumers are asked to keep a diary of their usage experiences over a certain time period

Data is then transcribed at analyzed in terms of recurring themes/answers (narratives are extracted)

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Experiments (incl. field) (quantitative research)

•  Experiments – consumers are randomly assigned to ‘treatments’ (e.g., they are showed different packaging) and researchers observe the effects of these treatments on an independent variable of interest (e.g., attitudes towards packaging or intention to buy) by means of comparison between (or within) the various groups

•  Field experiments – e.g., test market

Conjoint analysis (quantitative research)

•  Conjoint analysis – Mix between a survey and an experiment (sophisticated technique)

•  Aimed at determining the relative importance and appeal of different levels of an offering’s attribute (e.g., different prices, different flavors, different models etc.), which is used to predict consumer choice odds

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Database and netnography (quantitative and qualitative)

•  Data mining – i.e., extracting information from customers’ database, looking for patterns and insights

•  Netnography – tracking online activity, and social media interactions and feelings

Observations and ethnographic research

(qualitative research)

•  Observing consumers at home, in stores or in service delivery environments to gain some insights

•  Ethnographic research – includes a combination of observation and in-depth interviews in real-world settings

Psychophysiological reactions and neuroscience

(quantitative research)

•  Examining physiological reactions (e.g., eye movements) and applying neuroscience techniques (e.g., measuring brain activity) to understand consumer behaviour

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Focus in this topic:

•  Surveys – Week 5 •  Purchase panels – Week 6

Surveys (quantitative research)

•  In-depth analysis around specific consumer behaviour issues, such as buying behaviour patterns, perceptions of brands, attitudes, media usage and reception, customer satisfaction etc.

•  Pre-determined set of questions, whereby the answers are used to draw quantitative conclusions about a target population of consumers

•  Can be conducted in many ways – e.g., face-to- face, over the phone, online

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A word on design:

Definition of the research problem

Information required Sampling Survey method (e.g., online, phone etc.)

Planning stage

Design stage

Pilot stage

Sampling

Define the population

Determine Sample

size

Search for sampling frame

Specify sampling method

Select the sample

•  Probability (random or stratified)

•  Non-probability (quota or convenience)

Linked to significance of results (larger samples might inflate significance)

/Mobile

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Online surveying tools

•  Qualtrics •  Surveymonkey •  Zoho •  Surveyplanet •  ….

Ordering of topics Type of questions Wording and instructions Layout Scaling Probes and prompts Coding

Planning stage

Design stage

Pilot stage

Type of questions •  YES/NO questions (e.g., “Did you visit any of our

stores in the past four weeks?” •  Multiple choice questions (e.g., for demographic

questions such as gender, age, etc.) •  Multiple response questions (e.g., for questions asking

consumers to associate a brand to certain features, such as ‘good value for money’)

•  Scales and rating/ranking questions (e.g., for attitudes and satisfaction measurements, asking consumers their level of agreement with certain statements)

•  Open end questions (e.g., asking for suggestions for improvement)

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Pilot testing Redesign if required

Final questionnaire

Planning stage

Design stage

Pilot stage

Limitations •  Bound by response bias (e.g., random responses or

missing responses) and sample size limitations (a few hundreds if lucky, in AU average cost p/p is $3,50-4,50 depending on demographic profile)

•  A lot of thoughts to be placed on research design, including the wording/format of the questions used

•  Capture stated as opposed to revealed behaviour, which can lead to social desirability bias (main limitation)

In a typical CB survey

1.  Demographic profile 2.  Sample characteristics in relation to the CB aspect

examined (e.g., pre-existing level of product expertise, current usage, pre-existing beliefs)

3.  Specific questions aimed at uncovering and evaluating specific aspects of the decision-making process (simplification and proxies)

4.  Outcome variables – e.g., purchase intentions, stated choices, attitudes (often measured at brand level)

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[Comparison of various brands within the same market, for more strategic insights]

Screening

1.  Introduction – i.e., explain general purpose of the survey and reassure about confidentiality

–  “Thank you for agreeing to participate to this survey. It is

part of project conducted at Flinders University aimed at…We are interested in your spontaneous views about … and your answers will be strictly anonymous…”

–  Then ask to Agree/disagree to continue with the survey (informed consent)

Screening cont. 2.  Demographic profile (can also go at the end)

–  Age –  Household structure –  Income –  Level of education –  Etc.

NOTE: always give ranges to choose from (e.g,. “18-25, 25-35 etc.”) and include a “prefer not to say” option in all demographic questions to respect diversity

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Screening cont.

3.  Current level of usage (established behaviour):

–  For the product/service category or market considered (e.g., toothpaste) “Have you bought toothpaste in the past four weeks?”

–  For a number of brands within the product/service category or market considered “Considering the following brands [LIST], please indicate which brands you have used/bought in the past four weeks”

Awareness (recognition) 4. UNAIDED: •  “When you think of toothpaste, what is the FIRST brand

of toothpaste that comes to mind?” _________ •  “What OTHER toothpastes, can you think of?” ________

5. AIDED: •  “Here are some pack shots of some brands of toothpaste

[VISUAL STIMULI PROMPTED, such as logos]. Please indicate the brands that you know, even if you only know them by name and have never used them.”

6. Image (retrieval) “Which of these brands do you think each of the following statements apply to? Please select as many or as few of these brands as you feel.”

ARM & HAMMER

AQUAFRESH COLGATE CREST SENSODYNE Other Don’t Know

Leaves my mouth feeling clean O O O O O O O

Is the best brand at whitening teeth O O O O O O O

Provides the best protection against cavities O O O O O O O

Keeps my teeth strong and healthy O O O O O O O

Meets all my daily toothpaste needs O O O O O O O

Has a taste I like O O O O O O O

Leaves my breath fresh O O O O O O O

Prevents gum problems O O O O O O O

Works all day O O O O O O O

Eliminates germs on teeth and gums O O O O O O O

Is suitable for the whole family O O O O O O O

Is an innovative brand O O O O O O O

Is worth paying more for O O O O O O O

Recommended by dentists/hygienists O O O O O O O

Is a brand for someone like me O O O O O O O

Strengthens the enamel on my teeth O O O O O O O

Is a brand I usually buy on sale or with a coupon O O O O O O O

Relieves sensitive teeth O O O O O O O

Note: this is a ‘pick-any’ format,

scales may also be used

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7. Purchase intention

SCALE (e.g., 5, 7 or 11 points): •  “On a scale ranging from 0 being extremely unlikely

and 10 being extremely likely, what is the chance that you will purchase toothpaste in the near future?”

8. Other elements •  Checking for advertising exposure (exposed/not exposed,

which media, how recently) •  Checking for receptiveness to other marketing stimuli (e.g.,

bought on promotion) •  Consumption occasions (e.g., bought for yourself or others) •  Perceptions and attitudes •  Explore other outcome behaviours (e.g., likelihood to

recommend to others, satisfaction etc.) •  Explore motives for buying/benefits sought (e.g., bought for

specific health needs or reasons)

Wording is important •  Clear and not ambiguous •  Simple, with no jargon •  Give options to choose from •  Use prompts wisely •  Think carefully about your scales •  Gather only needed information (be parsimonious), but don’t forget crucial

screening and valuable insights •  Questions must directly answer the research objectives •  Maintain impartiality of questions (no probing) •  Sensitive questions must always give a “Prefer not to say” and/or “Other

______ (please specify)” options •  Quality over quantity, but make sure you gather ALL information required

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Bad examples

•  “We want to know about your ability to recognise previous exposure to an advert and whether that is affecting your level of brand knowledge.”

•  “To what extent do you look for information internally?”

•  “Please choose between the following options: Reasonably sure, somewhat sure, pretty much sure, sure”

Team activity 1

1.  Your market to examine is Australian banks. Identify a list of brands of Australian banks to examine and compare (do some quick online research).

2.  Draft in Word a consumer survey featuring max 20 questions, following the template given in these handouts

3.  Practice the survey within your team and seek feedback from your lecturer to make sure that it is well structured

4.  Choose 10 key questions and load your survey online in SurveyMonkey (cannot load for free more than 10 questions)

5.  Submit your full-length survey in Word on FLO for marking and email your SurveyMonkey link to your lecturer

OPTIONAL FOR EXTRA MARKS:

•  Get some responses and make an attempt to interpret results (include these with your submission)

Measuring consumer behaviour Part II

Next…