The Consumer Research Process

The Consumer Research Process

The consumer research process, as explained by Schiffman and Kanuk in their

book  Consumer Behavior , consists of 6 steps: 

Develop Objectives

The first step of this process is to define the objectives of the study. A specific,

thought -out set of objects assists in determining the type and level of

information required.

Objective Examples: 

y  To segment the marker for Nandos new meal deal.

y  To assess consumers attitudes towards Nandos services and quality.

Collect ion of Secondary Data

Secondary data is data that is readily availabl e and may be from an internal or

external source. It is information that has been collected for an ulterior purpose

that may be used to serve the current purpose. 

Advantages of Secondary Data: 

y  Cheaper then conducting primary research.

y  Can be obtained faster then primary data.

y  May al ert the acquirer to new or unthought-of solutions or problems. 

y  May provide bac kground information that is credible.

(M cDaniel & Gates: 2008, 72)

Disadvantages of Secondary Data: 

y  The availability of credible information may be limited.    

y  The reliability of the relevant information may be questionabl e.     

y  The accurac y of the information required may be questionable.     

y  There may be an insufficient amount of relevant information to deem it

reliable. 

(M cDaniel & Gates: 2008, 74)

Sources of Secondary Data:

The s ources of secondary data provided by Schiffman and Kanuk (2004) are: 

y  Internal Sources

y  Government Publications 

y  Periodicals and Books 

y  Commercial Data

Example of Secondary Data Methods:

y  Nandos may purchase already gathered and credible information,

gat hered by an external company, that provides information on the

characteristics of consumers who would eat at restaurants much like

Nandos on a regular basis.

Conduct Primary Research 

Primary R esearch is research that one must conduct to obtain the most relevant,

valid and reliable data possible. There are two t ypes of research that can be

conducted: Quantitative R esearch Vs Qualitative Research

Quantitative Research Designs:

According to Schiffman and Kanuk (2004:32) there are several methods of

conducting qualitative researc h:

Observational Research: 

Observational R esearch can be used to monitor consumers and gain insight into

their  bond between people and products that is the essence of brand loyalty .

Mechanical Observation uses devices that monitor behavior such as the traffic a

store receives or the stress levels in consumers measured by their eye

movements.

Example Of Observational Research: 

Nandos may use this method to monitor the traffic their stores receive in order

to determine the most popular stores.

Experimental Research:

Schiffman and K anuk (2004: 34) explain that  Causal Research  is the name given

to an experiment where only certain variables are manipulated whilst the others

are kept constant in order to encourage a change in the constant variable.  

Example Of Experimental Research:

Nandos may use this technique to test market the packaging, price and

promotion of a new product.

Surveys:

McDaniel and Gates (2008: 50) tell us that a survey is a method of research in

which an  interviewer interacts with respondents to obtain facts, opinions and

attitudes . 

Methods Of Conducting Surveys: 

y  Via the telephone

y  Via Email

y  Via Post Mail

y  Via Online Applications (Such as websites)

Quantitative Research Data Collection Instruments :

Data Collection Instruments normally come in for the form of que stionnaires that

may contain attitude scales. They are syst ematic to ensure that all participants 

answer all the questions in the same order to rule out any irregul arities. They are

to be pretested to pledge the validity and reliably of the instrument. 

(Schiffman and Kanuk: 2004, 34)  

Qualitative Research Designs And Data C ollection Methods: 

y  In-Depth Interviews

y  Focus  Groups

Sampling

Sampling is the method in which participants ar e chos en. One can either use a

Probability Sample  where Schiffman and Kanuk (2004: 43) t ell is this should be

chosen if the researcher wants the finding to be project able to the total

population. If it is sufficient to have the findings representative of the population

then a  Non-Probability Sample  should be selected.

Methods Of Probability Sampling  

y  Simple Random Sample

y  Systematic R andom Sample

y  Stratified Random Sample

y  Cluster Sample

Methods Of Non-Probabi li ty Sampling 

y  Convenience Sample

y  Judgment Sample

y  Quota Sample

Analyze Data

The data collected must then be coded and quantified. All possible connections in

the data must be established and then displayed in the form of tabl es and

graphics.

Prepare Report

The report must be summarizing the entire document , as wel l as make

suggestions on its findings. It is often the case that researchers will include a

                                           sample of the questionnaire here for the client to see.

Market Segmentation

Schiffman and K anuk (2004: 50) explain that Market Segment ation is the process

of breaking-up total population into distinct subsets of consum ers with common

needs or characteristics. This is done to determine who among them is likely to

purchase the product offered. 

Methods of Segmentation: 

y  Geographic 

y  Demographic 

y  Psyc hographic 

y  Socio-Cultural 

y  Use-Related 

y  Use-Situation 

y  Benefit Orientated 

y  Hybrid 

Example Of Market Segment ation:

Nandos divides the total population by geographic location, demographics and

socio-culture and discovered that there were several segments within its t arget

audience 

Segment 1:

Boys and girls, aged 14  -18, with +-R1000 a month, living with parents within the

Atlantic Sea Board of Cape Town.

Segment 2:

Men and Women, aged 20-27, earning +-R15000 a month, single, live in Southern

Suburbs and Atlantic Seaboard.

Market Targeting

Selecting a target market is a process of selecting the desired segments and

determining how to market t o them.

Categories ofMarket Targeting :

y  Mass Market (where everyone is a potential consumer)

y  Segmented Market (where a few segments are focused on)

y  Nic he Market (Where one or two segments are focused on)

y  Local/Individual M arket (Where the individual cons umer is tended to)

Example:

Nandos t ends to a Mass Market.

Positioning

Positioning is the place the brand or product holds in the mind on the cons umer.

Is can be influenced through the brand  or products competitive advantage which

is created through: 

 y  Product Differentiation

y  Service Differentiation

y  Distribution Channel Differentiation 

y  Staff Differentiation

y  Brand/Product Image Differentiation

Example:

Nandos uses a combination of good quality fast food (Product Differentiation)

with a unique service fast food experience (Service Differentiation) combined

with a fun and exciting brand image (Image Differentiation)

 The Marketing Mix

The marketing mix consist s of the infamous 4 P s (with the 3 additional P s): 

 y  Product   F eat ures; design; packaging

y  Price   RSP; discounts 

y  Place   Stores; online; distribution c hannels 

y  Promotion   Advertising

(The 3 additional P s that apply to services)

y  Process   The step-by-step service procedures employees carry out

y  Physical Evidence   A tangible view of t he s ervice provided

y  People   Staff empowerment and motivation, happy staff   happy

customers

The marketing mix for Nandos: 

y  Product   Styled take-away boxes and packets, perceived healthy nicel y

presented food. 

y  Price   Affordable pricing, Combo/Meal offers     

y  Place   Stores Located on every main road. Effective distribution channel,

constant supply of stock allowing costs to be kept low.     

      y  Promotions   Meal Combos/ Bottomless softdrinks.