How can we define Consumer Behavior in terms of Market Research?
Clarification added April 8, 2008:
My question is related to a presentation which need to be given to the students of MBA who are studying Consumer behavior as a course. I think now my question should be "How to guage Consumer behavior through Market Research?"
We all know that this can be done through Qualitative and Quantitative surveys but it is important that students could get the idea of these methods in the context of Consumer behavior. Like we can provide them with the list of commonly used studies like U&A, Product/ concept testing, Pre/post launch studies, Customer Satisfaction and Mystery shopping etc. But I am not sure would they be able to relate Consumer behavior with these surveys or should I need to be more specific regarding the questions that are asked in such surveys. OR I can give them practical examples for elaborating the topic.
Good Answers (2)
Business managers are more likely to be making the call about whether to spend resources conducting research than to be doing the research themselves. Accordingly, one of the most important things for MBAs to know about marketing research is how to make the decision of whether to initiate a research project.
On its face, the decision calculus is simple: Will the benefit of having this information exceed the cost of acquiring it? Real-world scenarios can sometimes be less clear, but this question is where you should start. Overall, becoming an educated consumer of marketing research offers a much greater benefit to the MBA than does seeing a few examples from the vast catalog of research methods.
Jeb S. also suggests these experts on this topic:
Jerry S.
Founder of ResearchSight
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I think Mark's point is a good one. It's important to distinguish between marketing and market research and recognize that most behavioral research is done in marketing research studies.
Next, I would provide a series of business case studies and then explain how various methods are used to answer specific business questions or address specific problems. They need to be able to connect the method with the managerial benefit in order to understand the value of research and how to use it.
More Answers (8)
By making Excel graphs of Things bought by a certain Sample in a quarter or so and then comparing it with the next quarter/competitive product/New Product/ Alternatives.
V Narasimha R.
Global Sales & Marketing Support - Sr. Consultant at Aon eSolutions
Hi Saima,
I think you should be giving some more details about ur question..
Market Research is a broader way of asking ..and be specific about the info required.
Market Research in general is all about data.How you collect data from consumers completely depends on your approach.It also depends on the type of data required.
If you can clarify the question ,then i can help you in any form.
regards
Narasimha Reddy
Woody Y.
Sr. Vice President / Director, Marketing Research
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Hi Saima,
I agree with the earlier responses - you can probably get a better answer by explaining your need more fully. That said, I would suggest that your presentation may be most interesting by focusing on outcomes of research and how they have impacted everyday life. There are lots of examples you can tap to make that approach fit the interests of your MBA students.
I'd be inclined to pose a question like, "How could the medical community improve patient compliance with physicians' orders?" or "How could this shoe manufacturer differentiate their product from the zillion other brands and styles of shoes?" or whatever your students are curious about. Then demonstrate the mechanism and impact of whichever study methods you're wanting to introduce at that point...(perhaps in-depth ethnographic inquiries to learn how people REALLY follow-through with their doctors' instructions...or a passive video observation study of some shoe stores to learn how women buying shoes REALLY react to selected point of purchase promotions. And sure, you can use all the techniques you mentioned (pre/post, A&U, ATU, etc.) in the same way. I'd suggest ending the presentation with some success and failure stories (failures are always good for keeping interest).
There's an old book entitled "How to lie with statistics" by Huff that could be a content resource. More recent titles with examples might include Blink by Malcolm Gladwell or Made to Stick by a couple of brothers named Heath.
Hope the thoughts help!
Woody
Richard Z.
Consultant: QFD Red Belt, Six Sigma Master Black Belt, ToC Jonah
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For MBA students, the issue is not only defining consumer behavior in terms of market research in general, but how to use this to develop superior products and services, yes?
A body of literature that has both a rich set of methods and a treasure trove of case studies is Quality Function Deployment (QFD).
In addition to providing a framework in which tools such as focus groups, mystery shopping, Kano analysis, product testing, TRIZ, etc. can be used, QFD also "aims" such tools for the discovery of "what matters most" to the customer, and to the company.
After all, superb market research is essentially wasted if it fails to lead to products and services that produce profit for the business. How can we make sure that our market research efforts produce such results?
QFD is a great help.
Links:
Mark M.
Association Director, Research Consultant, Entrepreneur, Speaker
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You might consider explaining the difference between marketing research and market research. Market Research involves studying a market - scope, trends, history, competitive landscape, etc. This usually involves analysis of existing data.
Marketing Research is more focused on figuring out what people want, and how to sell it to them (the behaviorial stuff). This involves talking with people, or observing their behavior.
Not sure that one can define consumer behavior in terms of market research.
Hope this helps,
m2
Rob M.
Customer Research & Insights at the Plymouth Rock Company (TopLinked.com)
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Hi Saima--
Consumer behavior is a broad area as many of your answers thus far have suggested. Many disciplines are borrowed by marketing research professionals to answer issues of consumer behavior -- anthropology, sociology, psychology, etc. I've even applied enneagram personality typing to understanding the impact of high-end stereos in the purchase of luxury automobiles.
If I may simplify this issue it comes down to understanding how consumers make choices. It is more than data analysis because of the emotive nature of buying. Scanner data does not explain impulse buying --- that purchase where the consumer questions, "why did I buy this thing when I don't really need it?" Even though buying is largely emotional and therefore irrational, we still tend to use our rational minds to make decisions. We determine what we value (emotionally-based identification) and then we take these buying issues or value factors and prioritize them. The next step is to compare the value factors however they are prioritized and compare them to alternative market choices. (rationally-based sorting). Another way to talk about consumer behavior is that we are all seeking an outcome. We have tasks or jobs we want to complete by the purchase of a product/service. Products/services that most closely meet the criteria the consumer has established that will support accomplishing the given task is the one that will be purchased.
Saima,
From the perspective of teaching students what consumer behaviour is you start by defining Consumer behavior, which is the study of how people buy, what they buy, when they buy and why they buy.
It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants.
It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
Belch and Belch define consumer behavior as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.
You can teach the the basic model of consumer decision making.
I am sure the example where you segment the population into various income groups/age groups/by race etc. and then analyse their buying patterns for a particular category, should make them understand the concept.
Source: Wikipedia
