Consumer behavior research helps companies collect data for marketing, public policy, and consumer awareness. Primary methods include surveys, focus groups, online research, and scanner data. Companies choose methods based on cost and accuracy, but drawbacks include small sample sizes and limited data.
Consumer behavior research allows a company to collect consumer data for business use. Data can help a company market its products, define public policy to raise consumer awareness, inform consumers, or simply learn about individual consumption. The two main ways to conduct consumer behavior research are primary and secondary strategies. Main methods include surveys, focus groups, online research or scanner data. Secondary methods use research data collected by other companies for the behavioral research process.
Surveys can be mailed to consumers or conducted over the phone, through in-person interviews, or through online methods. This allows direct information directly from each consumer who buys or buys a product. These options may be easier to prepare and less expensive. Companies can select their method based on cost and which one allows for the most accurate data possible. Switching methods is also possible due to the single use of these methods.
Focus groups are often the next step in consumer behavior research methods. Companies can select a few people to come in and discuss goods or services. This allows for immediate comments and feedback, but is often more expensive and takes time to organize. Also, most companies use smaller sample sizes because of the cost involved with this method. It is also impossible to attempt to make large, generalizing statements from such a small group, which is a significant drawback to this method.
Online research has become more common with new software options. Consumer behavior research can collect data from search engines or use direct questions to gather information. While less expensive than other methods, there are two significant drawbacks. First, this process only allows for the collection of specific information and little or no feedback from consumers. Second, consumers who do not shop online or lack the technical knowledge to complete Internet surveys will not be included in the group.
Scanner data is an older method of gathering information based on consumer behavior research. As customers make purchases or use coupons, retail stores often use electronic scanners to read barcodes. Businesses can gather this information and learn about which products are most commonly purchased in a region or with other products. One problem with this method is that the company limits its data to goods purchased by consumers. Additionally, there are no comments, feedback, or other data collected outside of products purchased by consumers, making this a potentially uninformative research process.
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