Research and consumer behaviour

1. Research and consumer behaviour • Managers should have a concept of the market in their mind, but must treat the market pragmatically • A prime example of being pragmatic is using research information • Research information is a real marketing asset, it is rare, tacit and proprietary Marketing Management

2. The nature of research information • It is rare, research is costly and to find the right information is hard • You can have a good overall view about the market, then it is often proprietary • Research is often tacit, only insiders understand the true nature of information • Example: trial intents in different categories Marketing Management

3. The role of research • Scan for opportunities and threats (new segments, competitors, legislation) • Risk assessment of future marketing programs (scenarios, new uses) • Monitoring current programs (testing response variables, such as advertising level, price sensitivity etc.) Marketing Management

4. Research examples • Fisher-Price did experimentation with children of risk assessment • Biopure researched vets about their behavior and potential reaction to price • P&G resarched new product usage, advertising effectiveness etc. Marketing Management

5. Problem definition THE RESEARCH PROCESS Information needs Research objectives Study Type Test Instrument Analysis Plan Data Collection Analysis Conclusions Reporting Marketing Management

6. The good research is,... • Well defined, which is half a solution, • Measurable, • Reliable, • Valid, • Relevant Marketing Management

7. Research methodology • Each research problem might require a specific method, however there are universals: • Most managers will start with reviewing secondary data • Secondary data have been collected before for and not for a specific purpose Marketing Management

8. SECONDARY DATA SOURCES PRIMARY DATA SOURCES Qualitative Research Experiments Surveys Observations Marketing Management

9. Secondary data sources • Internal: past sales, product profitability, sales reports etc. • External: public sources, such as statistics, trade journals • External: syndicated data, such as industry reports, databases, multi-client research studies Marketing Management

10. Primary research • DESIGNED FOR YOUR PURPOSES • Different methods surving different purposes: Focus group - Exploration Survey - Testing hypotheses Observation - Gaining insights Experiments - Testing options Marketing Management

11. CRUNCH RESEARCH: QUALITATIVE INSIGHTS Marketing Management

12. The Crunch Research: Explore the Brand Equity of Crunch 1. Most communication is non-verbal 2. There are deep structures of thought 3. Consumers have mental models 4. Metaphors are central for thoughts 5. Cognition is grounded on sensory experience 6. Thoughts occur as images Marketing Management

13. Crunch research: procedure • Researchers have called participants to collect a set of pictures about their feelings and thoughts regarding the Crunch Bar • Researchers met participants - from the target group - and used different techniques to create dimensions or constructs • Constructs had been analyzed and mapped Marketing Management

14. CRUNCH CONSTRUCTS Anticipation (thinking about it, dreaming about it) Availability (easy, quick eat at any time) Consumer loyalty (they can count on me) Dependable Quality (it won ’t change, always feels good in mouth) Eating Occasions (to beach, at camp, holidays, in front of fireplace) Emotional comfort (feel safe, like home, relaxed, reassured) Energetic/lethargic (makes me hyper, do more, full of life) Enjoyment (feel good/bad, happy, nervous, pleasure) Escape (private moment, secret pleasure, solitude, stop time) Evokes memories (nostalgic, feels like home) Marketing Management

15. Familiarity (familiar, unchanged, classic, old-fashioned) Giving/Receiving (sharing, romance, expression of love, unchantment, close relationships, mysterious, romantic ingredients) Image of the Company (Swiss, infant formula use, pesticide) Image of the Product (All American, not sophisticated, naive, less grown up, grow out of it, simple, basic, freedom, classy) Indulgence (gift, treat, crave, want eat more, guilt, conscience, eat too many, sweet tooth, restrict self, attention getting) Product Attributes (smoothness, crunchy, richness, creamy, chocolate, warm, natural ingredients, sugary, sweetness) Taste (good, delicious, not overwhelming, appealing) Unique Product (stays with you, different) Marketing Management

16. Nestlé consensus map Antici pation Taste Enjoyment Product attributes Emotional comfort Indulgence Product image Giving receiving Evokes memories Eating occasions Familiarity Energetic Quality Marketing Management

17. Insights and limitations • Some other paths had been identified, not resulting in emotional comfort. Some constructs, such as loyalty were not related. • Through the research Nestlé managers had been able to gain additional knowledge about how customers perceive the brand. • The research had a limited sample size and was not compared with other evidence Marketing Management

18. RegardingYOUR research project • Define subject • The objective: demonstrate how marketing works • Collect secondary data • Use primary data collection to support your findings and observations • Select research technique Marketing Management