Quantitative Research Methods Part I - Class 7 PDF

d HOUSEKEEPING 01 Mid-term exam • • • • 02 November 1 (Tue), in-class, 9:45 am – 10:45 am Paper and pencil, closed-book exam • Bring a pencil or pen for yourself! In case of any issues, email me ([email protected]) Check sample questions on Brightspace Brand audit report • • Please check Append...

d HOUSEKEEPING 01 Mid-term exam • • • • 02 November 1 (Tue), in-class, 9:45 am – 10:45 am Paper and pencil, closed-book exam • Bring a pencil or pen for yourself! In case of any issues, email me ([email protected]) Check sample questions on Brightspace Brand audit report • • Please check Appendix A on syllabus Final report: 10 pages double-spaced, 12-point, Times New Roman, references/exhibits/appendices will not count toward the page limit CLASS 7-1 QUANTITATIVE RESEARCH METHODS PART I f Learning objectives # Outline quantitative research methods to assess consumer awareness and perception of a brand # Explain how perceptual mapping can help strategic brand management QUANTITATIVE RESEARCH TECHNIQUES § Use numerical rating scales from which researchers can draw numerical representations and summaries § Awareness: Do customers recall or recognize our brand? § Is out brand included in target consumers’ consideration set? § Can our target consumers recognize our brand in marketplace? § Image: How is our brand perceived by customers? § Is consumer perception of our brand (i.e., core associations; PoPs, PoDs) consistent with our positioning? § How positive is consumer attitude toward our brand? OVERVIEW OF RESEARCH METHODS Qualitative methods Quantitative methods § Free association § Projective techniques § Ethnography, Netnography § § § § § § § Survey, Experiment Social media monitoring Text analysis I: Topic modeling Text analysis II: Sentiment analysis Neural research Eye tracking Facial electromyography BRAND AWARENESS Review § Recall § The likelihood that a brand or elements of a brand will come to mind, given a related cue (e.g., usage context, product category) § Is our brand included in consumers’ consideration set? § Recognition § The ease of identifying a brand under different circumstances, based on any of the brand elements § Which brand element is an important identifier? RECALL MEASURES § Recall measures usually provide cues to help recall § Product category, attributes/benefits, usage contexts (likely PoPs) § Examples § When it comes to athleisure product category, what brands come to your mind? List them as they come to your mind, as many as possible. § Caveat § Do not give examples (e.g., Lululemon, Athleta, Gymshark, Adidas) as salience of some brands impairs recall of other brands RECALL MEASURES Assessment § You want your brand to be mentioned as early as possible § Only the first three/four brands are included in the consideration set § And the first brand recalled is most likely to be purchased § Sample results Brand % mentioned the first Non-target Target segment so far Adidas 35% 50% 20% Athleta 20% 20% 20% Lululemon 10% 3% 50% RECOGNITION MEASURES Option 1: yes or no § Do you recognize the product below? O O Yes No RECOGNITION MEASURES Option 2: yes or no with degraded images § Do you recognize the product below? O O Yes No RECOGNITION MEASURES Option 3: decoys § Which one is the original Cadbury Silk Chocolate? RECOGNITION MEASURES Option 3: decoys § Implications for packaging § Original 25% Identifies cues or reminders necessary for consumers to retrieve the brand from memory § Examples § 10% Brand logo design is important: People remember font (25% vs. 10%) § Package color is not important: People do not remember color (25% vs. 20%) 20% RECOGNITION MEASURES Option 4: eye-tracking § Measures the angle, speed, and location at which the package or ad can be identified § Copy visibility and legibility BRAND IMAGE Review § Concepts associated with a brand in brand knowledge § Points-of-parity (PoP) & points-of-difference (POD) associations § Positioning: performance- and imagery-related attributes and benefits about a brand § Affective evaluation: positive or negative feelings about a brand POSITIONING Example : lululemon PRODUCT § § § § Product: everything for athletic activities (A) Superior quality & technology (e.g., Mirror, patented fabric) (A) Fashionable design (A) Community-based (e.g., plus-size, environment) (C) PRICE § § Premium price range (A) Minimum discounting with environment-related excuse (A), (C) CHANNEL § § Primarily direct channels: company-operated stores (offline), direct to consumers (online) (A), (B), (C) Indirect channels (e.g., wholesale, studios), (B), (C) PROMOTION § § § Grassroots: Community-based marketing (e.g., in-store yoga class, local events, Mirror, sustainability, inclusiveness, global and store ambassadors), (C) Experiential marketing (e.g., experiential store, Mirror) (B) Provider of Canadian Olympics team’s uniform (A) POPs & POPs A. Athleisure Brand (athletic = performance, quality / leisure = fashionable) B. Experiential C. Community-based POSITIONING Lululemon is an athleisure brand that builds and maintains meaningful connections with others (i.e., community) by facilitating sweat and growth (i.e., experience) POSITIONING Perception measures § PoPs & PoDs § How strongly do you agree or disagree with each of the statements below about § High quality Lululemon brand? § Fashionable design § (1 = strongly disagree, 7 = strongly agree) § Experiential § Lululemon products are high in quality. § Community-based § Lululemon products are fashionable. § Lululemon helps me reach my health goals through exercise. § Lululemon helps me stay in touch with others who have same values and health goals. POSITIONING = CONSUMER PERCEPTION? Sample results § How can we interpret the following results? § High quality (average = 6.2) Ø Consistent with positioning, high quality § Fashionable design (average = 5.8) Ø Consistent with positioning, fashionable § Experiential (average = 5.5) Ø Consistent with positioning, experiential § Community-based (average = 3.0) Ø Inconsistent with positioning § Compare each factor (e.g., quality) with the scale midpoint (in this case, 4) ideally using one-sample t-test community-based experiential strongly disagree 1 2 3 4 5 strongly agree 6 7 POSITIONING = CONSUMER PERCEPTION? Compared to the biggest competitor § Ask the same questions about your brand & competitor § Ath High quality (average = 5.3) § Lulu High quality (average = 6.2) § Lulu Fashionable design (average = 5.8) § § Lulu Experiential (average = 5.5) § Ath Experiential (average = 4.3) § Lulu Community-based (average = 5.0) § Ath Community-based (average = 2.3) Ath Fashionable design (average = 6.0) § Compare each factor (e.g., quality) between brands ideally using independent-sample/paired t-tests experiential: athleta experiential: lululemon strongly disagree 1 2 3 4 5 strongly agree 6 7 POSITIONING = CONSUMER PERCEPTION? assessment § For the audit report, for 1-5 (1-7) scale, mean differences in excess of 0.3 (0.5) CLASS 7-2 QUANTITATIVE RESEARCH METHODS PART II PERCEPTUAL MAP Overall similarity method (1/3) § Example: Lululemon, Athleta, Adidas, Nike § Ask participants to make judgments about the overall similarity of pairs of items § (1 = very different from each other, 7 = very similar to each other) § (4x3)/2 = 6 pairs § Rank similarity (1 = most similar pair, 6 = least similar pair) PERCEPTUAL MAP Overall similarity method (2/3) Lululemon Lululemon Athleta Nike Victoria -- Athleta Nike Victoria 1 5 2 -- 4 3 -- 6 -- § Submit the similarity matrix to Multidimensional Scaling (MDS) § MDS draws a two-dimensional map such that the distance between the brans match up the similarity ratings PERCEPTUAL MAP Overall similarity method (3/3) § Lululemon is perceived most similarly to Athleta (on both dimensions) § Lululemon, Victoria, and Athleta are perceived similarly on dimension 1 § We need to give names to the two dimensions ourselves: Perceptual map – always justify dimensions (axes) § Lululemon needs to understand why it is not differentiated from Athleta PERCEPTUAL MAP Attribute rating method (1/8) § What if there are many factors (i.e., associations) that differentiate your brand from others? § Example: You want to know how 6 burger franchises are perceived differently. So you came up with 15 attributes that consumers seem to care about. § How to plot them meaningfully on a two-dimensional space? PERCEPTUAL MAP Attribute rating method (2/8) § Supermacs For each brand, measure the following (1 = strongly disagree, 7 = strongly agree) § Offer healthy food § Has clean toilets § Has quality service § Has pleasant décor § McDonalds § Burger King § Offers good variety § Is a place to take kids § Johnny Rockets § Has a nice atmosphere § Is clean § Wowburger § Is a fun place § Offers tasty food § Five Guys § Has good food quality § Has convenient locations § Has a number of outlets § Restaurant is large in size § Has an affordable price PERCEPTUAL MAP Attribute rating method (3/8) § Step 1: Check correlations among attributes Positive Negative Zero correlation correlation correlation § Pearson’s r coefficient § +1 (perfect + correlation) § +0.4 (strong + correlation) § 0 (no correlation) § -0.4 (strong – correlation) § -1 (perfect – correlation) PERCEPTUAL MAP Attribute rating method (4/8) § Step 2: Spatial representation of correlations Positive Zero Negative correlation correlation correlation PERCEPTUAL MAP Attribute rating method (5/8) § Step 3: Showing correlations using vectors Large size restaurant Convenient locations No. of outlets Is for children Healthy Food taste atmosphere Food quality PERCEPTUAL MAP Attribute rating method (6/8) § Step 4: Collapse variables § Club associations that are highly correlated together F2 Large size restaurant Where you go Convenient locations No. of outlets Is for children Is it a family What you get Healthy friendly place F3 Food taste atmosphere Food quality there to eat F1 PERCEPTUAL MAP Attribute rating method (7/8) § Step 4: Collapse variables § Club associations that are highly correlated together § Now we have three dimensions (F1, F2, and F3) § Factor analysis ouptput plots the brands on these three axes. PERCEPTUAL MAP Attribute rating method (8/8) § Step 5: Plot them What you get there (F2) Johhny Rockets Five Guys Burger King McDonalds Wowburger Family friendly (F3) PERCEPTUAL MAP Strategic implications § Orange juice brands A, B, & C § Brand A is not making much sales, so considers repositioning. How? § Improve taste: healthy alternative to Brand C, targeting segment 2 § Improve healthiness: tastier alternative to Brand B, targeting segment 1 AFFECTIVE EVALUATION Favorability measures (1/2) § Attitude is usually measured using multiple items § General attitude toward a brand § 1 = very bad, 7 = very good § Willingness to recommend § 1 = not at all willing to recommend, 7 = definitely would like to recommend § Willingness to purchase § 1 = I would not purchase this product, 7 = I would purchase this product § 1 = 0$, 10 = 100$ AFFECTIVE EVALUATION Favorability measures (2/2) AFFECTIVE EVALUATION Survey measures explicit attitude § Explicit Attitude § Require effort for retrieval § Operate in a conscious, deliberate, and controlled mode § Self-report (e.g., take as much time wanted to indicate attitude) § Implicit Attitude § Effortlessly activated on exposure to the object; more accessible § Better predictor of behavior, Related to stereotype § Immediate report (e.g., indicate within five seconds), Physiological AFFECTIVE EVALUATION How to measure implicit attitude § Implicit Association Test (IAT) measures the strength of associations between concepts and evaluations of them in ways that people cannot correct consciously or lie § Reliable way to measure stereotypes § Measured by the latency of indicating positivity & negativity (i.e., how easily the pair of a concept & evaluation is processed) § Try it out yourself: https://implicit.harvard.edu/implicit/takeatest.html AFFECTIVE EVALUATION Neural research § Study how the brain responds to marketing stimuli, including brand elements and promotion materials § Measure the type of emotional response when presented with marketing stimuli § Electroencephalogram (EEG) § Functional magnetic resonance imaging (fMRI) § Labor intensive HOW TO RUN A SURVEY § Step 1: Prepare survey material § Survey tools like Qualtrics, Google forms § Include awareness & image measures § Include demographic factors (e.g., age, gender, income level) so that you can test consumer perception toward your brand based on such factors § Do not collect personal identifiers (e.g., name, social security no.) HOW TO RUN A SURVEY § Step 2: Recruit participants § Who are the brand’s target consumers? (e.g., anyone? Irish? American?) § Survey platforms: Prolific, CloudResearch, etc. § Set your participant background (e.g., geographic location) HOW TO RUN A SURVEY § Step 3: Download data and analyze them § Awareness: Is the brand well recalled or recognized? (see the %) § § Depending on the demographic variables (e.g., income level) Image § Positioning: Use t-test, factor analysis, multidimensional scaling and see whether consumer perception of the brand is consistent or inconsistent with the (ideal) positioning extracted from marketing programs § Liking: overall mean, should be high in potential consumer segment d NEXT CLASS 01 Brand Extension 02 Mid-term Exam (9:45am – 10:45am)