Consumer Insights PDF
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Uploaded by HardyAmethyst4248
City, University of London
Janina Steinmetz
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Summary
This presentation covers consumer insights, including different methods of data collection, such as questionnaires, to understand consumer behavior and market trends. It details various question types, scales (nominal, ordinal, interval, ratio), and best practices in survey design.
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BBM016 Consumer Insights Janina Steinmetz Today Measurement Questionnaire Design Qualtrics Recap: Questionnaire design Bad example Recap: Questionnaire design Bad example Recap: Questionnaire design Good example Take a survey Take a survey over something you consumed and write down a few points...
BBM016 Consumer Insights Janina Steinmetz Today Measurement Questionnaire Design Qualtrics Recap: Questionnaire design Bad example Recap: Questionnaire design Bad example Recap: Questionnaire design Good example Take a survey Take a survey over something you consumed and write down a few points that were good and a few that could be improved For example: Opentable, Booking, Airbnb, Netflix, Slack, airlines, Amazon, etc. (check your email inbox) Industry example: how a survey changes a product Survey of 7,000 parents and children aged six to 14 from China, the Czech Republic, Japan, Poland, Russia, UK and the US 71% of boys were worried about being judged or made fun of for playing with toys gendered for girls and 54% of parents worry their sons will be made fun of if they play with toys associated with girls, compared to only 26% of parents worrying about the reverse Industry example: how a survey changes a product As a result of the survey: Lego no longer labels any of its products “for girls” or “for boys” On Lego.com consumers cannot search for products by gender In fact, Lego used to be less rigid about gender, as this ad from 1981 shows Measurement Thermometer CF.svg Introduction to measurement Types of scales How to make a good survey Measurement Involves taking a concept and developing a Measurement process starts with a concept measure (a device, procedure, or instrument) and ends with specific indicators. to observe it empirically. Marketers can measure: Demographic E.g. age, income, occupation, # of constructs: children, etc. Psychographic E.g. attitude, intentions, beliefs, constructs: opinions, perceptions. Behavioral E.g. purchase amount, purchase constructs: frequency, brand choice, etc. Biological E.g. neuro-marketing, hormonal constructs: indicators Procedure Create a list of topics/information to be measured Operationalize: create questions Operationalize: choose scales Revisit the draft, check with your team Pretest with friends Topics to be measured Example: Fashion Chinese consumers are becoming more and more interested in unique fashion that expresses their personality Especially men are more fashion-conscious than ever Imagine you want to survey Chinese men on their fashion habits, attitudes, preferences, etc. What specific questions should you ask about the topic that you want to cover? Example: Desire for fashion “Buying fashion makes me happy” (1 = completely disagree; 7 = completely agree) “Would you rather buy fashion than go out with friends?” (1 = definitely no; 5 = definitely yes) Operationalize: Choose scales On what scale will you measure the construct? Scale is a systematic way of Temperature scales, weight scales, assigning numbers to those car meters, etc. things being measured. Scales Why are scale types important: Determine the type of information you collect about the object of study. Dictates what type of statistical analysis you may or may not perform. Nominal scale Numbers in the scale serve as labels only They allow us to classify and identify differences Examples: ◼What is your gender? ◼Male/Female/Non-Binary/Other ◼Do you shop at Lululemon? ◼Yes/No Ordinal Scale Has all the properties of the nominal scale + it measures constructs in terms of an ordered relationship: E.g. big to small; first to last; longest to shortest, etc. Rank order your preference for the following brands: __ H&M __ Adidas __ Vans __ Lululemon Interval Scale Has all the properties of the ordinal scale, + it measures constructs in equal intervals Example: What do you think about the quality of Adidas products? Poor 1 2 3 4 5 Excellent How likely are you to purchase vegan ice-cream? Unlikely 1 2 3 4 5 Likely Ratio Scale Has all the properties of an interval scale, + it has an absolute zero point Examples: How many miles do you live from Heathrow airport? ____ miles How many movies do you watch per week? ___ Movies Which scale gives you more information? 1. Rate our product. Bad ___ Good _X_ 2. Rate our product. Bad Good 1 2 3 4 5 Scales in Market Research Graphic Rating Scales Likert Scale Semantic Differential Likert scale An extremely popular means for measuring attitudes. Respondents indicate their own attitudes by checking how strongly they agree or disagree with statements. Semantic Differential A series of seven-point bipolar rating scales. Bipolar adjectives, such as “good” and “bad”, anchor both ends (or poles) of the scale Graphic scale Recap: Identify the scale type 1. How old are you? ___ 2. Please specify your age below: 19 – 25 26 - 35 36 – 45 46 - 60 61- 75 Above 75 Which of the scales enables us to arrive at the following conclusion: Respondent A is twice as old as Respondent B? Respondent A is older than Respondent B? Scales summary Four scales: Nominal, Ordinal, Interval, Ratio Interval scales are the most common ones in marketing The higher scales (interval and ratio) will give you more information than lower scales (nominal and ordinal) What are good questions in market research? https://www.youtube.com/watch?v=n34OnLnKzIg Best practice: Questionnaire as a whole Explain the purpose of your research Shorter is better (max 15 minutes, better shorter) Questions on the same topic should be after each other Demographics at the end Make sure interesting questions come first Make sure the questionnaire looks professional (e.g., layout) Best practice: Forced versus unforced Never force informants to answer! If they don’t know, they can leave the question blank Use “no opinion” option when expected that a large number of people won’t have an opinion on the topic Especially important for categorical scales Which smartphone brand do you have? Apple/Samsung/other/both Best practice: Questions Keep it simple No jargon or complex language Example: How much do you pay for shampoo? Be specific In a month, a year, for a bottle? Focus mostly on close-ended questions They won’t remember what they bought/consumed Don’t rely on informants’ memory months ago Don’t ask people things they have likely never Ask relevant questions purchased Example: How much do you like a cheap and low- Avoid loaded questions quality brand like Aldi? Best practice: Answer categories Check how many categories you need Example: Do you have a pet? Yes/No Example: What is your living situation? Alone/in a Dorm/with Roommates/with Family/with a Partner For rating scales, there are many options 1 = disagree; 7 = agree 1 = definitely no; 7 = definitely yes 0 = very unlikely; 100 = very likely Make sure every answer belongs in one (and only one!) category Be careful with “Don’t know” or “No opinion” Avoid rankings (ordinal), use ratings (interval)! Questions in your IMP Remember the 4ps of Marketing: where do they buy the product from (include all the relevant categories — e.g., supermarket, online, local stores; you can say please specify) what media do they use (e.g., TV, newspaper, social media etc.) who influences them (friends, reviews, ads etc.) what are the most important elements of a product (e.g., design aesthetics, ease of use, price, convenience) how much are they willing to pay (either open ended number or you can provide a price range) Avoid Avoid technical language Example: Would you be willing to pay more for this product if you knew the price was below the retailer’s break-even point? Avoid double negatives Example: Do you think our sales team was not unhelpful, or were they helpful? Avoid long questions (> 15 words) Avoid asking for two things in one question: How long did it take you to complete the process and on what day of the week did you do it? Avoid Avoid ambiguous questions Bad example: How often do you go bowling: Never Rarely Sometimes Often Do you live close to campus? Yes No Ambiguous unit of measurement (e.g., how many miles, walking minutes) Avoid comparative words (e.g., sometimes) Introduction to qualtrics https://cityunilondon.qualtrics.com Do it yourself: Research Context: Lizzie’s vegan cake flavors Design four questions, where each uses one of the four scale types One nominal, one ordinal, one interval, one ratio Write the four questions down Then go to https://cityunilondon.qualtrics.com Create a new survey that consists of your four questions Explore: Preview, QR code, survey link, open-ended questions, demographics… Pro Tip: testing your survey https://www.youtube.com/watch?v=_nCGXMK8XQI End of Session 4 Prepare for next week Take the Session 4 Quiz on Moodle! Draft your survey