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Consumer Behavior Research

Exploring the Depths of Consumer Insights for Strategic Business Growth

In an era where understanding consumer behavior is more than a competitive edge, it’s a survival imperative, NielsenIQ (NIQ) and GfK emerge as pivotal allies. This expertise is essential for businesses in B2C commerce, retail, and beyond, aiming to navigate the complex consumer landscape for informed, strategic decision-making.

Definition and Importance of Consumer Behavior Research

Consumer behavior research is the study of how individuals make decisions to spend their resources on consumption-related items. It involves understanding the what, why, when, and how of consumer purchases. This field is crucial for businesses as it sheds light on consumer preferences, buying patterns, and decision-making processes. By understanding these aspects, companies can tailor their products and marketing strategies effectively, ensuring alignment with consumer needs and market trends , ultimately leading to increased customer satisfaction and loyalty.

Overview of the Impact of Consumer Behavior Research on Marketing Strategies

The insights from consumer behavior research are instrumental in shaping targeted marketing strategies. By understanding consumer motivations and behaviors, businesses can create more relevant and engaging marketing messages, leading to improved customer engagement and retention. This research helps in segmenting the market, identifying potential customers, and understanding the factors that drive consumer decisions. It also aids in predicting future trends, enabling companies to stay ahead of the curve. Effective use of consumer behavior research can lead to the development of products and services that meet the evolving needs of consumers, thereby enhancing brand loyalty and market share.

Consumer and shopper insights

Understand consumer and shopper behavior, demographics, and loyalty with modern, representative consumer panels and customer survey capabilities.

Understanding Consumer Behavior

These diverse influences combine to form unique consumer profiles, which businesses must understand to effectively target their marketing efforts..

Factors Influencing Consumer Behavior

Consumer behavior is influenced by a complex interplay of psychological, social, cultural, and personal factors. Psychological factors include perceptions, attitudes, and motivation, which guide consumers’ emotional and cognitive responses. Social factors encompass family, friends, and societal norms that shape buying habits through peer influence and social trends. Cultural factors involve the broader societal beliefs, values, and customs that dictate consumer behavior in a particular region. Personal factors such as age, occupation, lifestyle, and economic status also significantly impact consumer choices. These diverse influences combine to form unique consumer profiles, which businesses must understand to effectively target their marketing efforts.

The Role of Consumer Behavior in Decision Making

Consumer behavior plays a critical role in the decision-making process. It involves understanding how consumers decide upon their needs and wants, choose among products and brands, and determine their purchase methods. This knowledge is vital for businesses to design and position their offerings in a way that resonates with the target audience. Understanding consumer behavior helps in predicting how consumers will respond to marketing messages and product features, enabling businesses to tailor their strategies to meet consumer needs effectively. It also assists in identifying opportunities for new product development and market expansion.

Consumer Behavior Theories and Models

Consumer behavior theories and models provide frameworks for understanding and predicting consumer actions. The Stimulus-Response Model, for instance, illustrates how marketing stimuli and environmental factors influence consumer responses. Maslow’s Hierarchy of Needs explains consumer motivation in terms of fulfilling basic to complex needs. The Theory of Reasoned Action and the Theory of Planned Behavior focus on the relationship between attitudes, intentions, and behaviors. The Consumer Decision Model outlines the cognitive process involving need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. These models help businesses in developing strategies that align with consumer psychology and behavioral patterns. They also assist in segmenting the market and targeting consumers with personalized marketing approaches, enhancing the effectiveness of marketing campaigns and product offerings.

Research Methods in Consumer Behavior Research

Customer analytics is vital for businesses across various sectors, including FMCG, sales, and e-commerce. It enables companies to create personalized experiences, improve customer engagement, and boost retention, ultimately leading to increased revenue. By understanding consumer behavior through data analysis, businesses can make informed decisions that resonate with their target audience.

Quantitative Research Methods

Quantitative research methods in consumer behavior research involve structured techniques like surveys and questionnaires to collect numerical data. These methods are useful for gauging consumer attitudes, preferences, and behaviors across larger populations. Statistical analysis of this data helps in identifying trends, testing hypotheses, and making generalizations about consumer behavior. Quantitative research is valuable for businesses as it provides measurable and comparable insights that can guide strategic decision-making. It helps in understanding the magnitude of consumer responses to various marketing stimuli and in assessing the potential market size for new products or services.

Qualitative Research Methods

Qualitative research methods in consumer behavior focus on understanding the deeper motivations, thoughts, and feelings of consumers. Techniques like in-depth interviews, focus groups, and observational studies provide rich, detailed insights that are not typically captured through quantitative methods. This approach is crucial for exploring the underlying reasons behind consumer choices, preferences, and attitudes. Qualitative research helps businesses in gaining a deeper understanding of consumer experiences, emotions, and perceptions, which can be invaluable in developing more effective marketing strategies, product designs, and customer service approaches. It allows companies to explore new ideas and concepts with consumers, gaining insights that can lead to innovation and differentiation in the market.

Experimental Research in Consumer Behavior

Experimental research in consumer behavior involves manipulating one or more variables to observe the effect on another variable, typically consumer behavior or attitudes. This method is used to establish cause-and-effect relationships, providing insights into how changes in product features, pricing, or marketing strategies might influence consumer behavior. Controlled experiments, often conducted in laboratory settings or as field experiments, allow researchers to isolate the effects of specific variables. This type of research is particularly valuable for testing new products, pricing strategies, and marketing messages before full-scale implementation. It helps businesses in making informed decisions based on empirical evidence, reducing the risks associated with new initiatives.

Factors Affecting Consumer Behavior

Psychological factors.

Psychological factors play a significant role in shaping consumer behavior. These include individual motivations, perceptions, attitudes, and beliefs. Motivation drives consumers to fulfill their needs and desires, influencing their buying decisions. Perception, how consumers interpret information, can significantly impact their choices, as it shapes their understanding of products and brands. Attitudes and beliefs, formed through experiences and social influences, guide consumer preferences and loyalty. Understanding these psychological factors is crucial for businesses as they influence how consumers view and interact with products and services. By aligning marketing strategies with consumer psychology, businesses can more effectively influence purchasing decisions and build stronger customer relationships.

Social Factors

Social factors significantly influence consumer behavior, encompassing the impact of society, family, and peer groups. Family members and friends can influence buying decisions through recommendations or shared experiences. Social groups, including social networks and communities, also play a role in shaping consumer preferences and behaviors. The influence of social media has become particularly significant, as it not only connects consumers but also serves as a platform for sharing opinions and experiences about products and services. Understanding these social dynamics is important for businesses as they can leverage social influences through targeted marketing strategies, influencer partnerships, and social media campaigns. Recognizing the power of social factors can help businesses in building brand awareness and loyalty among consumer groups.

Cultural Factors

Cultural factors are deeply ingrained elements that influence consumer behavior, including values, beliefs, customs, and traditions. These factors vary across different regions and societies, affecting how consumers perceive and interact with products and services. Cultural influences can determine consumer preferences, buying habits, and brand perceptions. For instance, color symbolism, dietary preferences, and language can all vary significantly between cultures, impacting marketing strategies and product development. Businesses must understand and respect these cultural nuances to effectively cater to diverse consumer markets. Adapting products and marketing messages to align with cultural values and norms can significantly enhance a brand’s appeal and acceptance in different markets.

Personal Factors

Personal factors, including age, gender, occupation, lifestyle, and economic status, also significantly influence consumer behavior. These factors determine individual needs, preferences, and purchasing power. For example, younger consumers may prioritize trendy and innovative products, while older consumers might value functionality and durability. Lifestyle choices, such as health consciousness or environmental awareness, can also drive consumer preferences and choices. Economic factors, such as income and economic conditions, influence consumers’ ability to purchase and their sensitivity to price changes. Understanding these personal factors is crucial for businesses to segment their market effectively and tailor their products and marketing strategies to meet the specific needs of different consumer groups.

Consumer Purchase Decision Making

Stages of the consumer purchase decision-making process.

The consumer purchase decision-making process typically involves several key stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

In the problem recognition stage, consumers identify a need or desire.

During the information search, they seek out information about products or services that can fulfill their need. In the evaluation stage, consumers compare different options based on attributes such as price, quality, and brand reputation.

The purchase decision involves choosing a product and making the purchase. Finally, in the post-purchase stage, consumers evaluate their satisfaction with the purchase, which can influence future buying decisions and brand loyalty.

Understanding these stages is essential for businesses to effectively influence consumers at each step, from raising awareness to ensuring post-purchase satisfaction.

Influences on Consumer Purchase Decisions

Consumer purchase decisions are influenced by a multitude of factors, including product attributes, brand reputation, marketing messages, social influences, and personal preferences. Product features such as quality, price, and usability are key determinants of consumer choices. Brand reputation, built over time through consistent quality and marketing efforts, also significantly impacts purchase decisions. Marketing messages and advertising play a crucial role in shaping consumer perceptions and driving demand. Social influences, including recommendations from family and friends, as well as online reviews and influencer endorsements, can sway consumer decisions. Personal factors such as individual needs, preferences, and financial constraints also play a critical role. Businesses must consider these diverse influences when developing products and crafting marketing strategies to effectively appeal to their target audience.

Impulse Buying Behavior

Impulse buying behavior refers to unplanned purchases made by consumers, often driven by emotional factors rather than rational decision-making. This type of behavior is typically triggered by external stimuli such as attractive product displays, promotional offers, or persuasive sales tactics. Emotional responses, such as excitement or the desire for instant gratification, also play a significant role in impulse buying. Retailers often leverage this behavior by strategically placing impulse items near checkout areas or using limited-time offers to create a sense of urgency. Understanding the triggers of impulse buying can help businesses in designing marketing strategies and store layouts that encourage such purchases, potentially increasing sales and customer engagement.

Online Shopping and Consumer Behavior

Impact of online shopping on consumer behavior.

The rise of online shopping has significantly impacted consumer behavior, offering convenience, a wider selection of products, and often competitive pricing. Online shopping has changed the way consumers research products, compare prices, and make purchasing decisions. The ease of access to a vast array of products and the ability to shop at any time have increased the frequency and diversity of purchases. Online reviews and ratings have also become important factors in the decision-making process, as consumers increasingly rely on the opinions of others. Additionally, the personalized shopping experiences offered by many online retailers, through targeted recommendations and tailored marketing messages, have further influenced consumer buying habits. Understanding these shifts in consumer behavior is crucial for businesses to adapt their strategies for the digital marketplace, ensuring they meet the evolving needs and expectations of online shoppers.

Factors Influencing Online Buying Behavior

Several factors influence online buying behavior, including website usability, product variety, pricing, customer reviews, and the overall shopping experience. A user-friendly website with easy navigation and a seamless checkout process is crucial for attracting and retaining online shoppers. A diverse product range and competitive pricing are also key factors in attracting consumers. Customer reviews and ratings significantly impact purchase decisions, as they provide social proof and reduce perceived risk. The overall shopping experience, including customer service, delivery options, and return policies, also plays a vital role in influencing online buying behavior. Security and privacy concerns are additional considerations, as consumers are increasingly aware of data protection and online fraud. Businesses must address these factors to create a compelling online shopping experience that meets consumer expectations and drives online sales.

Comparison of Online and Offline Consumer Behavior

Online and offline consumer behaviors exhibit distinct differences, influenced by the unique aspects of each shopping environment. Online shopping offers convenience, a broader selection, and often more competitive pricing, leading to different purchasing patterns compared to offline shopping. Consumers tend to spend more time researching and comparing products online, while offline shopping is often driven by immediate needs and sensory experiences. The tactile experience and instant gratification of offline shopping are not replicable online, but the online environment offers personalized recommendations and a wealth of product information. Offline shopping also provides opportunities for personal interaction and immediate problem resolution, which can enhance customer satisfaction. Understanding these differences is crucial for businesses to tailor their strategies for each channel, ensuring a cohesive and complementary shopping experience that meets the needs and preferences of consumers in both online and offline environments.

Consumer Satisfaction and Loyalty

Importance of customer satisfaction in consumer behavior research.

Customer satisfaction is a critical component of consumer behavior research, as it directly impacts repeat purchases and brand loyalty. Satisfied customers are more likely to become repeat buyers, recommend the brand to others, and provide positive reviews. Customer satisfaction is influenced by various factors, including product quality, customer service, and overall shopping experience. Understanding and measuring customer satisfaction helps businesses identify areas for improvement, enhance customer experiences, and build long-term relationships with consumers. High levels of customer satisfaction lead to increased customer loyalty, which is essential for business growth and sustainability.

Factors Influencing Customer Satisfaction

Customer satisfaction is influenced by a range of factors, including product quality, price, service quality, brand image, and customer expectations. Product quality is a primary determinant of satisfaction, as consumers expect products to perform as advertised. Price also plays a role, as consumers evaluate the value they receive relative to the cost. Service quality, encompassing customer service interactions and the overall shopping experience, significantly impacts satisfaction levels. A positive, helpful, and efficient service experience can enhance satisfaction, while negative experiences can lead to dissatisfaction. Brand image, shaped by marketing communications and past experiences, influences consumer expectations and perceptions. Meeting or exceeding these expectations is key to achieving high levels of customer satisfaction. Additionally, personal factors such as individual needs, preferences, and past experiences also influence satisfaction. Businesses must consider these diverse factors to effectively meet consumer needs and enhance satisfaction levels.

Relationship Between Customer Satisfaction and Loyalty

The relationship between customer satisfaction and loyalty is strong and direct. Satisfied customers are more likely to develop a sense of loyalty to a brand, leading to repeat purchases and positive word-of-mouth recommendations. Loyalty is not just about repeat buying; it also involves an emotional connection and a preference for the brand over competitors. Satisfied customers are also more likely to be forgiving of minor issues and are less sensitive to price changes. Conversely, dissatisfied customers are more likely to switch to competitors and share negative experiences with others. Building customer loyalty requires consistently meeting or exceeding customer expectations, providing high-quality products and services, and maintaining positive customer relationships. Loyal customers are valuable assets to businesses, as they tend to have a higher lifetime value, lower acquisition costs, and can become brand advocates, promoting the brand through their networks.

Consumer Research and Marketing Strategies

Utilizing consumer research to develop effective marketing programs.

Consumer research is a vital tool for developing effective marketing programs. By understanding consumer needs, preferences, and behaviors, businesses can create targeted marketing strategies that resonate with their audience. Consumer research helps in identifying market segments, understanding consumer pain points, and uncovering opportunities for product development or enhancement. It also provides insights into the most effective channels and messages for reaching the target audience. Utilizing consumer research in marketing program development ensures that strategies are data-driven and customer-centric, increasing the likelihood of success. It enables businesses to tailor their marketing efforts to the specific needs and preferences of different consumer segments, improving engagement and response rates. Additionally, ongoing consumer research allows businesses to adapt their marketing strategies in response to changing consumer trends and market conditions, ensuring continued relevance and effectiveness.

Targeting Specific Consumer Segments Based on Research Findings

Targeting specific consumer segments based on research findings is a key strategy for effective marketing. Consumer research provides detailed insights into different consumer groups, including their demographics, psychographics, behaviors, and preferences. By analyzing this data, businesses can identify distinct segments within their target market, each with unique needs and characteristics. Targeting these segments with tailored marketing messages and product offerings increases the relevance and appeal of the brand to each group. For example, a segment characterized by health-conscious consumers would respond more positively to marketing messages emphasizing the health benefits of a product. Segment-specific targeting allows businesses to allocate marketing resources more efficiently, focusing on the most promising segments with the highest potential for conversion and loyalty. It also enhances the customer experience by providing consumers with products and marketing messages that are more closely aligned with their individual needs and preferences.

Adapting Marketing Strategies to Consumer Behavior Trends

Adapting marketing strategies to consumer behavior trends is essential for businesses to stay relevant and competitive. Consumer behavior is constantly evolving, influenced by factors such as technological advancements, cultural shifts, and economic changes. By staying attuned to these trends, businesses can anticipate changes in consumer needs and preferences, and adjust their marketing strategies accordingly. This may involve adopting new marketing channels, such as social media or influencer marketing, to reach consumers where they are most active. It could also mean developing new products or services that align with emerging consumer trends, such as sustainability or personalization. Adapting marketing strategies to consumer behavior trends requires a proactive approach, with ongoing research and analysis to identify emerging patterns. Businesses that successfully adapt to these trends can capture new market opportunities, enhance customer engagement, and maintain a competitive edge.

Case Studies in Consumer Behavior Research

Analysis of real-life examples and their implications.

Real-life case studies in consumer behavior research provide valuable insights into the practical application of theoretical concepts and the effectiveness of different marketing strategies. For example, a case study in the automotive industry might analyze how consumer preferences for eco-friendly vehicles have influenced car manufacturers’ product development and marketing strategies. In the retail sector, a case study could examine the impact of online shopping on brick-and-mortar stores and how these businesses have adapted to the digital era. These case studies offer concrete examples of how businesses have successfully navigated changes in consumer behavior, providing lessons and strategies that can be applied in other contexts. They also highlight the importance of consumer research in identifying market trends, understanding consumer needs, and developing effective marketing strategies. By analyzing real-life examples, businesses can gain a deeper understanding of consumer behavior, learn from the successes and challenges of others, and apply these insights to their own strategies.

Examination of Successful Marketing Campaigns Based on Consumer Behavior Research

Examining successful marketing campaigns that are based on consumer behavior research can provide valuable insights into effective marketing practices. These case studies demonstrate how a deep understanding of consumer needs, preferences, and behaviors can be leveraged to create impactful marketing campaigns. For instance, a campaign that effectively uses consumer data to personalize messages and offers can result in higher engagement and conversion rates. Another example might be a campaign that taps into current consumer trends, such as sustainability or wellness, to resonate with the target audience. Analyzing these successful campaigns can reveal key strategies and tactics that businesses can adopt, such as the use of specific channels, messaging techniques, or promotional offers. These case studies also highlight the importance of data-driven decision-making in marketing, showing how consumer research can inform and guide successful marketing initiatives.

Motivating Consumers and New Product Adoption

Strategies to motivate consumers to adopt new products.

Motivating consumers to adopt new products is a critical challenge for businesses. Effective strategies for encouraging new product adoption include leveraging social proof, offering free trials or samples, and creating educational content. Social proof, such as customer testimonials or influencer endorsements, can reduce perceived risk and increase consumer confidence in trying a new product. Free trials or samples allow consumers to experience the product firsthand, reducing barriers to adoption. Educational content, such as how-to guides or product demonstrations, can help consumers understand the value and benefits of the new product. Additionally, businesses can use targeted marketing campaigns to reach early adopters and innovators who are more likely to try new products and spread the word to others. Creating a sense of urgency or exclusivity around the new product, through limited-time offers or exclusive access, can also motivate consumers to adopt the product more quickly.

Innovations in Consumer Behavior Research for New Product Development

Innovations in consumer behavior research are playing a crucial role in new product development. Advanced analytics and data mining techniques allow businesses to analyze large datasets and uncover deep insights into consumer needs and preferences. Social listening tools enable companies to monitor social media and online conversations, gaining real-time insights into consumer opinions and trends. Virtual reality (VR) and augmented reality (AR) technologies are being used to test consumer reactions to new products in simulated environments, providing valuable feedback before market launch. Behavioral economics principles, such as understanding cognitive biases and decision-making processes, are also being applied to better predict consumer responses to new products. These innovations in consumer behavior research provide businesses with more accurate and comprehensive data, enabling them to develop products that are closely aligned with consumer needs and preferences, increasing the likelihood of market success.

Social Media and Consumer Behavior

Influence of social media on consumer behavior.

Social media has a profound influence on consumer behavior, shaping how consumers discover, research, and share information about products and services. Platforms like Facebook, Instagram, and Twitter serve as important channels for brand communication and engagement. Consumers use social media to seek recommendations, read reviews, and gather opinions from their networks, which significantly influences their purchasing decisions. Brands leverage social media for targeted advertising, influencer partnerships, and content marketing, creating opportunities for direct interaction and engagement with consumers. Social media also facilitates the spread of trends and viral content, quickly influencing consumer preferences and behaviors. The interactive and dynamic nature of social media means that consumer opinions and trends can rapidly change, requiring businesses to be agile and responsive in their social media strategies. Understanding the influence of social media on consumer behavior is essential for businesses to effectively engage with their audience and influence purchasing decisions.

Role of Social Media in Shaping Consumer Perceptions and Purchase Decisions

Recap of the importance of consumer behavior research.

Consumer behavior research is essential for businesses seeking to understand and effectively respond to the evolving needs and preferences of their target audience. It provides valuable insights into why consumers make certain choices, what influences their purchasing decisions, and how they interact with brands. This research is crucial for developing effective marketing strategies, creating products that meet consumer needs, and enhancing the overall customer experience. By staying informed about consumer behavior trends and applying these insights, businesses can improve customer engagement, increase brand loyalty, and drive growth. In today’s competitive marketplace, a deep understanding of consumer behavior is a key differentiator, enabling businesses to create more personalized, relevant, and impactful marketing initiatives.

Future Directions and Emerging Trends in Consumer Behavior Research

The future of consumer behavior research is marked by rapid advancements in technology and data analytics, leading to more sophisticated and nuanced understanding of consumer preferences and behaviors. Emerging trends include the use of artificial intelligence (AI) and machine learning to analyze consumer data, providing deeper and more predictive insights. The integration of biometric data, such as eye tracking and facial recognition, offers new ways to understand consumer responses to marketing stimuli. The growing importance of sustainability and ethical considerations is also influencing consumer behavior, leading to increased demand for eco-friendly and socially responsible products. Additionally, the rise of the experience economy is shifting focus from product features to customer experiences, requiring businesses to create more immersive and engaging customer interactions. Staying abreast of these trends and continuously innovating in consumer behavior research will be crucial for businesses to remain relevant and competitive in the changing market landscape.

How NIQ and GfK Can Help

In the complex world of consumer behavior, NIQ and GfK offer the expertise and tools necessary to navigate this landscape effectively. With comprehensive solutions like:

• NielsenIQ’s Homescan : Track, diagnose, and analyze consumer behavior from more than 250,000 households across 25 countries.
• Consumer analytics : Go deeper and create more clarity around shopper behavior with custom surveys and segmentation.
• Consumption moments : Reveal the true motivations behind customer consumption behavior and usage to guide product innovation and marketing strategy .
• gfknewron marke t : Create the right opportunities with gfknewron market
• gfknewron predict : Plan your future using the world’s most comprehensive sales tracking data for Tech & Durables.
• gfknewron Consumer : Understand your consumers’ behavior to redefine your success

By leveraging these tools, businesses can gain a competitive edge, adapting to market changes and consumer trends with agility and precision.

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The past, present, and future of consumer research

Maayan s. malter.

1 Columbia Business School, Columbia University, New York, NY USA

Morris B. Holbrook

Barbara e. kahn.

2 The Wharton School, University of Pennsylvania, Philadelphia, PA USA

Jeffrey R. Parker

3 Department of Marketing, University of Illinois at Chicago, Chicago, IL USA

Donald R. Lehmann

In this article, we document the evolution of research trends (concepts, methods, and aims) within the field of consumer behavior, from the time of its early development to the present day, as a multidisciplinary area of research within marketing. We describe current changes in retailing and real-world consumption and offer suggestions on how to use observations of consumption phenomena to generate new and interesting consumer behavior research questions. Consumption continues to change with technological advancements and shifts in consumers’ values and goals. We cannot know the exact shape of things to come, but we polled a sample of leading scholars and summarize their predictions on where the field may be headed in the next twenty years.

Introduction

Beginning in the late 1950s, business schools shifted from descriptive and practitioner-focused studies to more theoretically driven and academically rigorous research (Dahl et al. 1959 ). As the field expanded from an applied form of economics to embrace theories and methodologies from psychology, sociology, anthropology, and statistics, there was an increased emphasis on understanding the thoughts, desires, and experiences of individual consumers. For academic marketing, this meant that research not only focused on the decisions and strategies of marketing managers but also on the decisions and thought processes on the other side of the market—customers.

Since then, the academic study of consumer behavior has evolved and incorporated concepts and methods, not only from marketing at large but also from related social science disciplines, and from the ever-changing landscape of real-world consumption behavior. Its position as an area of study within a larger discipline that comprises researchers from diverse theoretical backgrounds and methodological training has stirred debates over its identity. One article describes consumer behavior as a multidisciplinary subdiscipline of marketing “characterized by the study of people operating in a consumer role involving acquisition, consumption, and disposition of marketplace products, services, and experiences” (MacInnis and Folkes 2009 , p. 900).

This article reviews the evolution of the field of consumer behavior over the past half century, describes its current status, and predicts how it may evolve over the next twenty years. Our review is by no means a comprehensive history of the field (see Schumann et al. 2008 ; Rapp and Hill 2015 ; Wang et al. 2015 ; Wilkie and Moore 2003 , to name a few) but rather focuses on a few key thematic developments. Though we observe many major shifts during this period, certain questions and debates have persisted: Does consumer behavior research need to be relevant to marketing managers or is there intrinsic value from studying the consumer as a project pursued for its own sake? What counts as consumption: only consumption from traditional marketplace transactions or also consumption in a broader sense of non-marketplace interactions? Which are the most appropriate theoretical traditions and methodological tools for addressing questions in consumer behavior research?

A brief history of consumer research over the past sixty years—1960 to 2020

In 1969, the Association for Consumer Research was founded and a yearly conference to share marketing research specifically from the consumer’s perspective was instituted. This event marked the culmination of the growing interest in the topic by formalizing it as an area of research within marketing (consumer psychology had become a formalized branch of psychology within the APA in 1960). So, what was consumer behavior before 1969? Scanning current consumer-behavior doctoral seminar syllabi reveals few works predating 1969, with most of those coming from psychology and economics, namely Herbert Simon’s A Behavioral Model of Rational Choice (1955), Abraham Maslow’s A Theory of Human Motivation (1943), and Ernest Dichter’s Handbook of Consumer Motivations (1964). In short, research that illuminated and informed our understanding of consumer behavior prior to 1969 rarely focused on marketing-specific topics, much less consumers or consumption (Dichter’s handbook being a notable exception). Yet, these works were crucial to the rise of consumer behavior research because, in the decades after 1969, there was a shift within academic marketing to thinking about research from a behavioral or decision science perspective (Wilkie and Moore 2003 ). The following section details some ways in which this shift occurred. We draw on a framework proposed by the philosopher Larry Laudan ( 1986 ), who distinguished among three inter-related aspects of scientific inquiry—namely, concepts (the relevant ideas, theories, hypotheses, and constructs); methods (the techniques employed to test and validate these concepts); and aims (the purposes or goals that motivate the investigation).

Key concepts in the late - 1960s

During the late-1960s, we tended to view the buyer as a computer-like machine for processing information according to various formal rules that embody economic rationality to form a preference for one or another option in order to arrive at a purchase decision. This view tended to manifest itself in a couple of conspicuous ways. The first was a model of buyer behavior introduced by John Howard in 1963 in the second edition of his marketing textbook and quickly adopted by virtually every theorist working in our field—including, Howard and Sheth (of course), Engel-Kollat-&-Blackwell, Franco Nicosia, Alan Andreasen, Jim Bettman, and Joel Cohen. Howard’s great innovation—which he based on a scheme that he had found in the work of Plato (namely, the linkages among Cognition, Affect, and Conation)—took the form of a boxes-and-arrows formulation heavily influenced by the approach to organizational behavior theory that Howard (University of Pittsburgh) had picked up from Herbert Simon (Carnegie Melon University). The model represented a chain of events

where I = inputs of information (from advertising, word-of-mouth, brand features, etc.); C = cognitions (beliefs or perceptions about a brand); A = Affect (liking or preference for the brand); B = behavior (purchase of the brand); and S = satisfaction (post-purchase evaluation of the brand that feeds back onto earlier stages of the sequence, according to a learning model in which reinforced behavior tends to be repeated). This formulation lay at the heart of Howard’s work, which he updated, elaborated on, and streamlined over the remainder of his career. Importantly, it informed virtually every buyer-behavior model that blossomed forth during the last half of the twentieth century.

To represent the link between cognitions and affect, buyer-behavior researchers used various forms of the multi-attribute attitude model (MAAM), originally proposed by psychologists such as Fishbein and Rosenberg as part of what Fishbein and Ajzen ( 1975 ) called the theory of reasoned action. Under MAAM, cognitions (beliefs about brand attributes) are weighted by their importance and summed to create an explanation or prediction of affect (liking for a brand or preference for one brand versus another), which in turn determines behavior (choice of a brand or intention to purchase a brand). This took the work of economist Kelvin Lancaster (with whom Howard interacted), which assumed attitude was based on objective attributes, and extended it to include subjective ones (Lancaster 1966 ; Ratchford 1975 ). Overall, the set of concepts that prevailed in the late-1960s assumed the buyer exhibited economic rationality and acted as a computer-like information-processing machine when making purchase decisions.

Favored methods in the late-1960s

The methods favored during the late-1960s tended to be almost exclusively neo-positivistic in nature. That is, buyer-behavior research adopted the kinds of methodological rigor that we associate with the physical sciences and the hypothetico-deductive approaches advocated by the neo-positivistic philosophers of science.

Thus, the accepted approaches tended to be either experimental or survey based. For example, numerous laboratory studies tested variations of the MAAM and focused on questions about how to measure beliefs, how to weight the beliefs, how to combine the weighted beliefs, and so forth (e.g., Beckwith and Lehmann 1973 ). Here again, these assumed a rational economic decision-maker who processed information something like a computer.

Seeking rigor, buyer-behavior studies tended to be quantitative in their analyses, employing multivariate statistics, structural equation models, multidimensional scaling, conjoint analysis, and other mathematically sophisticated techniques. For example, various attempts to test the ICABS formulation developed simultaneous (now called structural) equation models such as those deployed by Farley and Ring ( 1970 , 1974 ) to test the Howard and Sheth ( 1969 ) model and by Beckwith and Lehmann ( 1973 ) to measure halo effects.

Aims in the late-1960s

During this time period, buyer-behavior research was still considered a subdivision of marketing research, the purpose of which was to provide insights useful to marketing managers in making strategic decisions. Essentially, every paper concluded with a section on “Implications for Marketing Managers.” Authors who failed to conform to this expectation could generally count on having their work rejected by leading journals such as the Journal of Marketing Research ( JMR ) and the Journal of Marketing ( JM ).

Summary—the three R’s in the late-1960s

Starting in the late-1960s to the early-1980s, virtually every buyer-behavior researcher followed the traditional approach to concepts, methods, and aims, now encapsulated under what we might call the three R’s —namely, rationality , rigor , and relevance . However, as we transitioned into the 1980s and beyond, that changed as some (though by no means all) consumer researchers began to expand their approaches and to evolve different perspectives.

Concepts after 1980

In some circles, the traditional emphasis on the buyer’s rationality—that is, a view of the buyer as a rational-economic, decision-oriented, information-processing, computer-like machine for making choices—began to evolve in at least two primary ways.

First, behavioral economics (originally studied in marketing under the label Behavioral Decision Theory)—developed in psychology by Kahneman and Tversky, in economics by Thaler, and applied in marketing by a number of forward-thinking theorists (e.g., Eric Johnson, Jim Bettman, John Payne, Itamar Simonson, Jay Russo, Joel Huber, and more recently, Dan Ariely)—challenged the rationality of consumers as decision-makers. It was shown that numerous commonly used decision heuristics depart from rational choice and are exceptions to the traditional assumptions of economic rationality. This trend shed light on understanding consumer financial decision-making (Prelec and Loewenstein 1998 ; Gourville 1998 ; Lynch Jr 2011 ) and how to develop “nudges” to help consumers make better decisions for their personal finances (summarized in Johnson et al. 2012 ).

Second, the emerging experiential view (anticipated by Alderson, Levy, and others; developed by Holbrook and Hirschman, and embellished by Schmitt, Pine, and Gilmore, and countless followers) regarded consumers as flesh-and-blood human beings (rather than as information-processing computer-like machines), focused on hedonic aspects of consumption, and expanded the concepts embodied by ICABS (Table ​ (Table1 1 ).

Extended ICABS Framework after 1980

Methods after 1980

The two burgeoning areas of research—behavioral economics and experiential theories—differed in their methodological approaches. The former relied on controlled randomized experiments with a focus on decision strategies and behavioral outcomes. For example, experiments tested the process by which consumers evaluate options using information display boards and “Mouselab” matrices of aspects and attributes (Payne et al. 1988 ). This school of thought also focused on behavioral dependent measures, such as choice (Huber et al. 1982 ; Simonson 1989 ; Iyengar and Lepper 2000 ).

The latter was influenced by post-positivistic philosophers of science—such as Thomas Kuhn, Paul Feyerabend, and Richard Rorty—and approaches expanded to include various qualitative techniques (interpretive, ethnographic, humanistic, and even introspective methods) not previously prominent in the field of consumer research. These included:

• Interpretive approaches —such as those drawing on semiotics and hermeneutics—in an effort to gain a richer understanding of the symbolic meanings involved in consumption experiences;
• Ethnographic approaches — borrowed from cultural anthropology—such as those illustrated by the influential Consumer Behavior Odyssey (Belk et al. 1989 ) and its discoveries about phenomena related to sacred aspects of consumption or the deep meanings of collections and other possessions;
• Humanistic approaches —such as those borrowed from cultural studies or from literary criticism and more recently gathered together under the general heading of consumer culture theory ( CCT );
• Introspective or autoethnographic approaches —such as those associated with a method called subjective personal introspection ( SPI ) that various consumer researchers like Sidney Levy and Steve Gould have pursued to gain insights based on their own private lives.

These qualitative approaches tended not to appear in the more traditional journals such as the Journal of Marketing , Journal of Marketing Research , or Marketing Science . However, newer journals such as Consumption, Markets, & Culture and Marketing Theory began to publish papers that drew on the various interpretive, ethnographic, humanistic, or introspective methods.

Aims after 1980

In 1974, consumer research finally got its own journal with the launch of the Journal of Consumer Research ( JCR ). The early editors of JCR —especially Bob Ferber, Hal Kassarjian, and Jim Bettman—held a rather divergent attitude about the importance or even the desirability of managerial relevance as a key goal of consumer studies. Under their influence, some researchers began to believe that consumer behavior is a phenomenon worthy of study in its own right—purely for the purpose of understanding it better. The journal incorporated articles from an array of methodologies: quantitative (both secondary data analysis and experimental techniques) and qualitative. The “right” balance between theoretical insight and substantive relevance—which are not in inherent conflict—is a matter of debate to this day and will likely continue to be debated well into the future.

Summary—the three I’s after 1980

In sum, beginning in the early-1980s, consumer research branched out. Much of the work in consumer studies remained within the earlier tradition of the three R’s—that is, rationality (an information-processing decision-oriented buyer), rigor (neo-positivistic experimental designs and quantitative techniques), and relevance (usefulness to marketing managers). Nonetheless, many studies embraced enlarged views of the three major aspects that might be called the three I’s —that is, irrationality (broadened perspectives that incorporate illogical, heuristic, experiential, or hedonic aspects of consumption), interpretation (various qualitative or “postmodern” approaches), and intrinsic motivation (the joy of pursuing a managerially irrelevant consumer study purely for the sake of satisfying one’s own curiosity, without concern for whether it does or does not help a marketing practitioner make a bigger profit).

The present—the consumer behavior field today

Present concepts.

In recent years, technological changes have significantly influenced the nature of consumption as the customer journey has transitioned to include more interaction on digital platforms that complements interaction in physical stores. This shift poses a major conceptual challenge in understanding if and how these technological changes affect consumption. Does the medium through which consumption occurs fundamentally alter the psychological and social processes identified in earlier research? In addition, this shift allows us to collect more data at different stages of the customer journey, which further allows us to analyze behavior in ways that were not previously available.

Revisiting the ICABS framework, many of the previous concepts are still present, but we are now addressing them through a lens of technological change (Table ​ (Table2 2 ). In recent years, a number of concepts (e.g., identity, beliefs/lay theories, affect as information, self-control, time, psychological ownership, search for meaning and happiness, social belonging, creativity, and status) have emerged as integral factors that influence and are influenced by consumption. To better understand these concepts, a number of influential theories from social psychology have been adopted into consumer behavior research. Self-construal (Markus and Kitayama 1991 ), regulatory focus (Higgins 1998 ), construal level (Trope and Liberman 2010 ), and goal systems (Kruglanski et al. 2002 ) all provide social-cognition frameworks through which consumer behavior researchers study the psychological processes behind consumer behavior. This “adoption” of social psychological theories into consumer behavior is a symbiotic relationship that further enhances the theories. Tory Higgins happily stated that he learned more about his own theories from the work of marketing academics (he cited Angela Lee and Michel Pham) in further testing and extending them.

ICABS framework in the digital age

Present Methods

Not only have technological advancements changed the nature of consumption but they have also significantly influenced the methods used in consumer research by adding both new sources of data and improved analytical tools (Ding et al. 2020 ). Researchers continue to use traditional methods from psychology in empirical research (scale development, laboratory experiments, quantitative analyses, etc.) and interpretive approaches in qualitative research. Additionally, online experiments using participants from panels such as Amazon Mechanical Turk and Prolific have become commonplace in the last decade. While they raise concerns about the quality of the data and about the external validity of the results, these online experiments have greatly increased the speed and decreased the cost of collecting data, so researchers continue to use them, albeit with some caution. Reminiscent of the discussion in the 1970s and 1980s about the use of student subjects, the projectability of the online responses and of an increasingly conditioned “professional” group of online respondents (MTurkers) is a major concern.

Technology has also changed research methodology. Currently, there is a large increase in the use of secondary data thanks to the availability of Big Data about online and offline behavior. Methods in computer science have advanced our ability to analyze large corpuses of unstructured data (text, voice, visual images) in an efficient and rigorous way and, thus, to tap into a wealth of nuanced thoughts, feelings, and behaviors heretofore only accessible to qualitative researchers through laboriously conducted content analyses. There are also new neuro-marketing techniques like eye-tracking, fMRI’s, body arousal measures (e.g., heart rate, sweat), and emotion detectors that allow us to measure automatic responses. Lastly, there has been an increase in large-scale field experiments that can be run in online B2C marketplaces.

Present Aims

Along with a focus on real-world observations and data, there is a renewed emphasis on managerial relevance. Countless conference addresses and editorials in JCR , JCP , and other journals have emphasized the importance of making consumer research useful outside of academia—that is, to help companies, policy makers, and consumers. For instance, understanding how the “new” consumer interacts over time with other consumers and companies in the current marketplace is a key area for future research. As global and social concerns become more salient in all aspects of life, issues of long-term sustainability, social equality, and ethical business practices have also become more central research topics. Fortunately, despite this emphasis on relevance, theoretical contributions and novel ideas are still highly valued. An appropriate balance of theory and practice has become the holy grail of consumer research.

The effects of the current trends in real-world consumption will increase in magnitude with time as more consumers are digitally native. Therefore, a better understanding of current consumer behavior can give us insights and help predict how it will continue to evolve in the years to come.

The future—the consumer behavior field in 2040 1

Niels Bohr once said, “Prediction is very difficult, especially if it’s about the future.” Indeed, it would be a fool’s errand for a single person to hazard a guess about the state of the consumer behavior field twenty years from now. Therefore, predictions from 34 active consumer researchers were collected to address this task. Here, we briefly summarize those predictions.

Future Concepts

While few respondents proffered guesses regarding specific concepts that would be of interest twenty years from now, many suggested broad topics and trends they expected to see in the field. Expectations for topics could largely be grouped into three main areas. Many suspected that we will be examining essentially the same core topics, perhaps at a finer-grained level, from different perspectives or in ways that we currently cannot utilize due to methodological limitations (more on methods below). A second contingent predicted that much research would center on the impending crises the world faces today, most mentioning environmental and social issues (the COVID-19 pandemic had not yet begun when these predictions were collected and, unsurprisingly, was not anticipated by any of our respondents). The last group, citing the widely expected profound impact of AI on consumers’ lives, argued that AI and other technology-related topics will be dominant subjects in consumer research circa 2040.

While the topic of technology is likely to be focal in the field, our current expectations for the impact of technology on consumers’ lives are narrower than it should be. Rather than merely offering innumerable conveniences and experiences, it seems likely that technology will begin to be integrated into consumers’ thoughts, identities, and personal relationships—probably sooner than we collectively expect. The integration of machines into humans’ bodies and lives will present the field with an expanding list of research questions that do not exist today. For example, how will the concepts of the self, identity, privacy, and goal pursuit change when web-connected technology seamlessly integrates with human consciousness and cognition? Major questions will also need to be answered regarding philosophy of mind, ethics, and social inequality. We suspect that the impact of technology on consumers and consumer research will be far broader than most consumer-behavior researchers anticipate.

As for broader trends within consumer research, there were two camps: (1) those who expect (or hope) that dominant theories (both current and yet to be developed) will become more integrated and comprehensive and (2) those who expect theoretical contributions to become smaller and smaller, to the point of becoming trivial. Both groups felt that current researchers are filling smaller cracks than before, but disagreed on how this would ultimately be resolved.

Future Methods

As was the case with concepts, respondents’ expectations regarding consumer-research methodologies in 2030 can also be divided into three broad baskets. Unsurprisingly, many indicated that we would be using many technologies not currently available or in wide use. Perhaps more surprising was that most cited the use of technology such as AI, machine-learning algorithms, and robots in designing—as opposed to executing or analyzing—experiments. (Some did point to the use of technologies such as virtual reality in the actual execution of experiments.) The second camp indicated that a focus on reliable and replicable results (discussed further below) will encourage a greater tendency for pre-registering studies, more use of “Big Data,” and a demand for more studies per paper (versus more papers per topic, which some believe is a more fruitful direction). Finally, the third lot indicated that “real data” would be in high demand, thereby necessitating the use of incentive-compatible, consequential dependent variables and a greater prevalence of field studies in consumer research.

As a result, young scholars would benefit from developing a “toolkit” of methodologies for collecting and analyzing the abundant new data of interest to the field. This includes (but is not limited to) a deep understanding of designing and implementing field studies (Gerber and Green 2012 ), data analysis software (R, Python, etc.), text mining and analysis (Humphreys and Wang 2018 ), and analytical tools for other unstructured forms of data such as image and sound. The replication crisis in experimental research means that future scholars will also need to take a more critical approach to validity (internal, external, construct), statistical power, and significance in their work.

Future Aims

While there was an air of existential concern about the future of the field, most agreed that the trend will be toward increasing the relevance and reliability of consumer research. Specifically, echoing calls from journals and thought leaders, the respondents felt that papers will need to offer more actionable implications for consumers, managers, or policy makers. However, few thought that this increased focus would come at the expense of theoretical insights, suggesting a more demanding overall standard for consumer research in 2040. Likewise, most felt that methodological transparency, open access to data and materials, and study pre-registration will become the norm as the field seeks to allay concerns about the reliability and meaningfulness of its research findings.

Summary - Future research questions and directions

Despite some well-justified pessimism, the future of consumer research is as bright as ever. As we revised this paper amidst the COVID-19 pandemic, it was clear that many aspects of marketplace behavior, consumption, and life in general will change as a result of this unprecedented global crisis. Given this, and the radical technological, social, and environmental changes that loom on the horizon, consumer researchers will have a treasure trove of topics to tackle in the next ten years, many of which will carry profound substantive importance. While research approaches will evolve, the core goals will remain consistent—namely, to generate theoretically insightful, empirically supported, and substantively impactful research (Table ​ (Table3 3 ).

Future consumer behavior research questions

At any given moment in time, the focal concepts, methods, and aims of consumer-behavior scholarship reflect both the prior development of the field and trends in the larger scientific community. However, despite shifting trends, the core of the field has remained constant—namely, to understand the motivations, thought processes, and experiences of individuals as they consume goods, services, information, and other offerings, and to use these insights to develop interventions to improve both marketing strategy for firms and consumer welfare for individuals and groups. Amidst the excitement of new technologies, social trends, and consumption experiences, it is important to look back and remind ourselves of the insights the field has already generated. Effectively integrating these past findings with new observations and fresh research will help the field advance our understanding of consumer behavior.

1 The other papers use 2030 as a target year but we asked our survey respondents to make predictions for 2040 and thus we have a different future target year.

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

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Introduction to Consumer Behavior Research

In the field of Consumer Behavior Research, the integration of innovative technologies like the iMotions software suite offers new dimensions and depth to our understanding of consumer choices. This article, intended for those well-versed in the intricacies of consumer behavior studies, aims to explore how blending traditional research methods with advanced technological tools can enhance the quality and accuracy of our insights.

Table of Contents

What is consumer behavior research.

Consumer Behavior Research is a fundamental field that seeks to understand the ‘why’ behind consumer decisions, unraveling the subtle interplay of emotions, cognition, and environmental factors in shaping purchasing behaviors. This domain is pivotal both in physical retail environments and in the digital marketplace. Historically, the field has relied heavily on traditional methods such as surveys and focus groups, which have been instrumental in providing valuable insights into consumer mindsets and preferences.

However, the evolution of technology in recent years has introduced new dimensions to consumer behavior research. Advanced tools, including biometric sensors like eye tracking , facial expression analysis , EEG (electroencephalogram) , GSR (galvanic skin response) , and ECG (electrocardiogram), are now available. These technologies enable researchers to capture real-time, unfiltered consumer reactions, offering a window into the more subtle, often subconscious aspects of consumer decision-making.

This introduction to consumer behavior research will explore how the integration of traditional methodologies with these advanced technologies can lead to a richer, more nuanced understanding of consumer choices. This article aims to guide newcomers through the basics of consumer behavior research, illustrating how traditional methods and technological advancements can complement each other.

Whether the focus is on market segmentation, brand perception analysis, or enhancing customer experience, the combination of conventional research techniques with modern tools can provide a more comprehensive view of consumer behavior. Such an integrated approach not only enriches the research process but also offers valuable insights that can inform effective business strategies and marketing campaigns. Let’s delve into the world of consumer behavior research, exploring its fundamental principles and the ways in which emerging technologies are reshaping our understanding of consumer choices.

4 Consumer Behavior Research Examples

1. purchase decision-making.

Purchase decision-making is a central focus in consumer behavior research. It involves examining the journey a consumer undertakes from recognizing a need to making the final purchase decision. This process is complex and influenced by a multitude of factors, including personal preferences, cultural influences, social pressures, economic conditions, and marketing strategies.

• Need Recognition: The first step in the purchase decision process where the consumer recognizes a problem or need.
• Information Search: After recognizing a need, consumers seek information to make an informed decision. This search can be internal (based on memory or past experiences) or external (through advertisements, word of mouth, or online reviews).
• Evaluation of Alternatives: Consumers compare different products or brands based on attributes like price, quality, and features.
• Purchase Decision: Influenced by the evaluation, consumers decide which product to buy. This stage can be affected by additional factors like special offers or last-minute doubts.
• Post-Purchase Behavior: This includes the consumer’s experience with the product, which can influence future purchase decisions and brand loyalty.

Understanding this process helps businesses in creating marketing strategies that target consumers at different stages of their decision-making.

2. Market Segmentation

Market segmentation involves dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, who might require separate products or marketing strategies. Effective market segmentation can significantly enhance the efficiency of marketing efforts.

• Demographic Segmentation: Based on age, gender, income, occupation, etc. This is often the simplest form of segmentation.
• Geographic Segmentation: Segmentation based on location, climate, and regional preferences.
• Psychographic Segmentation: Involves dividing the market based on social class, lifestyle, or personality characteristics.
• Behavioral Segmentation: Based on consumer knowledge, attitudes, uses, or responses to a product.

Each segment responds differently to marketing strategies, hence understanding these segments helps businesses tailor their approaches to suit specific consumer needs.

3. Brand Perception and Loyalty

Brand perception and loyalty studies focus on how consumers see a brand and their fidelity towards it. This perception is influenced by the brand’s identity, communication, consumer experiences, and the social value associated with the brand.

• Brand Identity and Image: How a brand presents itself and is perceived by consumers. It includes visual elements (logo, colors) and emotional associations.
• Consumer Experiences: Direct experiences with the brand, including product quality, customer service, and overall satisfaction.
• Social Influence: How friends, family, and media shape one’s perception of the brand.
• Brand Loyalty: The tendency of consumers to continue buying the same brand’s products or services. It is influenced by satisfaction, perceived value, and emotional connections.

Understanding brand perception and building loyalty are critical for long-term business success.

4. Consumer Psychology

Consumer psychology explores the mental and emotional processes that influence how consumers think, feel, reason, and select between different alternatives. It’s a blend of psychology and marketing.

• Motivation and Need: Understanding what drives consumers to take action. This includes basic needs (like hunger) and psychological needs (like esteem).
• Perception: How consumers interpret information and form impressions. This can be influenced by individual biases and preconceptions.
• Attitude Formation: The development of evaluations and feelings towards products or brands, often influenced by personal experience, advertising, and social influences.
• Decision-Making Processes: The psychological processes involved in making purchase decisions, including problem recognition, information search, and evaluation of alternatives.

Consumer Behavior Research Methods

The methods used in Consumer Behavior Research are pivotal in uncovering the intricate details of how consumers think, feel, and act. These methodologies range from direct questioning techniques to sophisticated data analysis, each offering unique insights into consumer behavior. Let’s explore these various approaches in detail.

Surveys and Questionnaires

Surveys and questionnaires are among the most common tools used in consumer behavior research. They are versatile methods for collecting data from a large number of respondents and are particularly useful for quantitative analysis.

• Design and Structure: Surveys can range from simple, closed-ended questions to more complex, open-ended formats. The design is crucial, as it needs to be both engaging to respondents and aligned with research objectives.
• Distribution Methods: These can be administered in person, by mail, over the phone, or online. Online surveys, in particular, have gained popularity due to their cost-effectiveness and wide reach.
• Data Collection and Analysis: Responses are collected and analyzed to discern patterns and trends. Advanced statistical tools can be used for deeper analysis, such as identifying correlations or predicting consumer behavior.

Interviews in consumer behavior research are used to gather detailed information by engaging directly with respondents. They can be structured, semi-structured, or unstructured.

• In-Depth Insights: Interviews allow researchers to dive deep into individual consumer experiences, opinions, and motivations.
• Flexibility: The format can be adapted depending on the flow of the conversation, allowing researchers to explore new topics that emerge during the interview.
• Qualitative Data: The qualitative nature of interviews provides rich, nuanced data that might not emerge from other research methods.

If you want to know more about how to conduct research interviews, check out our comprehensive guide here .

Focus Groups

Focus groups involve a moderated discussion with a small group of people. This method is particularly useful for exploring consumer attitudes and behaviors in a social context.

• Group Dynamics: The interaction among group members can lead to insights that might not surface in individual interviews.
• Moderation: The role of the moderator is crucial in steering the conversation while ensuring that all voices are heard.
• Qualitative Insights: Focus groups are valuable for qualitative research, offering a depth of understanding about consumer perceptions and decision-making processes.

Experiments

Experiments in consumer behavior research involve creating a controlled environment to test hypotheses about consumer behavior.

• Control and Manipulation: Researchers manipulate one or more variables and observe the effect on other variables. This allows for a clearer understanding of cause-and-effect relationships.
• Varieties of Experimental Designs: These can range from laboratory experiments (high control) to field experiments (more realistic settings).
• Quantifiable Results: Experiments often yield quantitative data that can be statistically analyzed to draw conclusions.

Data Analysis and Big Data

With the advent of big data, data analysis has become a cornerstone of consumer behavior research. It involves processing large volumes of data to uncover patterns and trends.

• Data Sources: These can include transaction records, social media data, web analytics, and more.
• Advanced Analytical Tools: Tools like machine learning algorithms and predictive analytics are used to analyze complex datasets.
• Actionable Insights: Big data analysis can reveal consumer behaviors, preferences, and future trends, providing actionable insights for businesses.

Consumer Behavior Research questionnaires are vital tools for gathering specific information about consumer preferences, attitudes, and behaviors. They are designed to elicit responses that can provide actionable insights into various aspects of consumer behavior. Here are some examples of questionnaires tailored to different aspects of consumer research:

1. Purchase Decision-Making Questionnaire

Objective: To understand the factors influencing a consumer’s decision-making process when purchasing a product.

• How did you first learn about [Product/Service]?
• What were the main factors that influenced your decision to purchase [Product/Service]?
• Rank the following factors in order of importance when making your purchase: price, quality, brand reputation, reviews, and features.
• Have you considered any alternative products or brands before making this purchase? If yes, which ones?
• How satisfied are you with your decision to purchase [Product/Service]?

2. Market Segmentation Questionnaire

Objective: To categorize consumers into different segments based on demographics, psychographics, and buying behavior.

• What is your age group? (Provide age ranges)
• What is your occupation, and what industry do you work in?
• Describe your lifestyle. (Options might include active, health-conscious, family-oriented, etc.)
• How often do you purchase [Product/Service Category]?
• What are your primary considerations when choosing [Product/Service Category]? (Options might include price, brand, environmental impact, etc.)

3. Brand Perception and Loyalty Questionnaire

Objective: To assess consumer perceptions of a brand and their loyalty towards it.

• How familiar are you with [Brand]?
• What words or phrases come to mind when you think of [Brand]?
• On a scale of 1 to 10, how likely are you to recommend [Brand] to a friend or colleague?
• What factors contribute to your loyalty to [Brand]?
• Have you switched from a different brand to [Brand]? If so, what prompted this change?

4. Consumer Psychology Questionnaire

Objective: To explore the psychological factors that influence consumer behavior.

• What motivates you to purchase [Product/Service Category]?
• Describe a recent emotional response you had to an advertisement or a product. What triggered this response?
• How do your personal values align with your purchasing habits?
• Do social media influencers impact your purchasing decisions? If so, how?
• How does your current mood affect your shopping behavior?

These questionnaires can, and should, be adapted or expanded based on your specific research objectives and the target audience. The key is to formulate questions that are clear, unbiased, and relevant to the research goals, ensuring that the responses gathered are as informative and useful as possible.

Human Behavior Research with Biosensors

To effectively leverage biosensors and the iMotions Software in consumer behavior research, one should focus on integrating these tools seamlessly with traditional research methodologies. Biosensors, including eye tracking, facial expression analysis, and physiological sensors (like EEG, GSR, and ECG), provide real-time, objective data on consumer responses, revealing insights into their subconscious and emotional reactions.

By using iMotions Software, both the Lab and Online versions, researchers can synchronize and analyze these diverse data streams, gaining a comprehensive understanding of consumer behavior. This approach allows for the correlation of biometric responses with specific stimuli, enabling more precise interpretation of consumer preferences and behaviors. The key is to design studies where these technological tools complement surveys and observational methods, thereby enriching the overall research findings and offering more actionable insights into consumer behavior.

Frequently Asked Questions

Most important part of consumer research.

The most crucial aspect of consumer research is accurately understanding consumer needs and motivations . This understanding is fundamental for developing products, crafting effective marketing strategies, and enhancing customer experiences. It forms the basis for meeting and exceeding customer expectations, fostering brand loyalty, and driving business success. Essentially, knowing what drives and satisfies consumers is key to creating value in any market.

Three Major Factors Influencing Consumer Behavior

• 1. Psychological Factors : These encompass an individual’s attitudes, perceptions, motivations, and beliefs, influencing how they interpret marketing messages and make purchasing decisions.
• 2. Social Factors : Social influences, including family, friends, and cultural norms, shape consumer preferences and buying habits, impacting product and brand choices.
• 3. Situational Factors : External conditions like the shopping environment, time pressure, and economic conditions can affect immediate buying decisions, independent of personal or social influences.

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Consumer Behavior Research

• First Online: 04 January 2023

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• Stefan Hoffmann 3 &
• Payam Akbar 3  

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In this chapter, you will learn what consumer behavior research explores, what research approaches are used, when researchers collect their own data and when they use existing data, and how to obtain empirical data. You will learn the following paradigms: qualitative and quantitative approaches, primary and secondary research, and classical test theory.

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Hoffmann, S., Akbar, P. (2023). Consumer Behavior Research. In: Consumer Behavior. Springer, Wiesbaden. https://doi.org/10.1007/978-3-658-39476-9_2

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The Ultimate Guide to Consumer Behavior Research: Unlocking the Secrets of Customer Decisions

June 28 2024

• Table of content

What is Consumer Behavior Research?

The importance of consumer behavior research, methods of consumer behavior research, key factors influencing consumer behavior, challenges in consumer behavior research, emerging trends in consumer behavior research, applying consumer behavior research insights.

In today's hyper-competitive marketplace, businesses face a daunting challenge: understanding what drives consumers to choose one product over another. Without this crucial knowledge, companies risk developing products that miss the mark, wasting marketing budgets on ineffective campaigns, and ultimately losing market share to more savvy competitors.

The consequences of ignoring consumer behavior are dire. Brands that fail to connect with their target audience find themselves struggling with low sales, poor customer retention, and a damaged reputation. In an era where consumer preferences change at lightning speed, falling behind in understanding your customers can lead to disaster for even the most established companies.

But there's hope. Consumer behavior research offers a powerful solution to this problem. By understanding your target audience's mindset, you can uncover the hidden motivations, preferences, and pain points that influence purchasing decisions. This comprehensive guide will walk you through the essentials of consumer behavior research, equipping you with the tools and knowledge to transform your business into a customer-centric powerhouse. From tried-and-true methodologies to cutting-edge techniques, we'll explore how to harness the power of consumer insights to drive innovation, boost sales, and cultivate lasting customer loyalty .

Consumer behavior research is the systematic study of how individuals, groups, and organizations select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. This field of study combines elements from psychology, sociology, anthropology, and economics to provide a holistic understanding of consumer decision-making processes.

By gaining insights into these processes, brands can develop more effective marketing strategies that resonate with their audience, improve product design, enhance customer experiences, and ultimately drive growth and profitability.

Key Areas of Focus in Consumer Behavior Research:

Consumer behavior research encompasses a wide range of interconnected areas, each providing valuable insights into how and why consumers make purchasing decisions. The following key areas of focus help researchers and marketers better understand and predict consumer behavior:

• Decision-making processes: Analyzing steps from need recognition to post-purchase evaluation.
• Influencing factors: Examining personal, psychological, social, and cultural impacts on choices.
• Consumer psychology: Understanding motivations, perceptions, attitudes, and learning processes.
• Market segmentation: Identifying distinct consumer groups based on shared characteristics.
• Brand loyalty and relationships: Studying brand attachments and drivers of repeat purchases.
• Information processing: Exploring how consumers interpret and respond to marketing messages.
• Digital behavior: Analyzing online shopping patterns, social media influence, and e-commerce trends.
• Cross-cultural consumer behavior: Comparing consumption patterns across different cultures.
• Ethical and sustainable consumption: Investigating eco-friendly choices and ethical purchasing decisions.
• Experiential marketing: Studying the impact of brand experiences on consumer perceptions and loyalty.

Understanding consumer behavior is essential for businesses across all industries. Here's why:

- Improved Product Development

By knowing what customers want and need, companies can create products that better meet market demands. This research-driven approach leads to innovations that resonate with consumers and reduces the risk of product failure.

- Effective Marketing Strategies

Insights into consumer preferences and habits enable businesses to craft more targeted and impactful marketing campaigns. This leads to higher conversion rates and more efficient use of marketing budgets.

- Enhanced Customer Experience

Understanding customer behavior helps in designing better user experiences, both online and offline. This can lead to increased customer satisfaction, higher retention rates, and positive word-of-mouth recommendations.

- Competitive Advantage

Companies that truly understand their customers can differentiate themselves from competitors and capture a larger market share. This deep understanding allows for unique positioning and value propositions.

- Increased Customer Loyalty

Studies show that 70% of buying experiences are based on how customers feel they are being treated. By meeting customer needs more effectively, businesses can build stronger relationships and foster brand loyalty. This leads to repeat purchases, higher customer lifetime value, and a stable customer base.

- Pricing Optimization

Consumer behavior research aids in determining optimal price points based on perceived value. This helps companies maximize profitability while remaining competitive in the market.

- Risk Mitigation

By studying consumer behavior, businesses can better predict market trends and consumer reactions to new products or changes. This demand forecasting and foresight helps in avoiding costly mistakes and adapting strategies proactively.

- Resource Allocation

Understanding consumer behavior allows for more efficient distribution of marketing and budgets. Companies can focus resources on areas that will have the greatest impact on consumer decisions and satisfaction.

- Personalization

Consumer behavior insights enable tailored offerings and communications to individual consumers. This personalization can significantly improve engagement and conversion rates across various touchpoints.

- Social Impact

Research into consumer behavior informs strategies for promoting responsible consumption and sustainability. It's been reported that 55% of consumers are more likely to buy from eco-friendly brands with sustainability policy.

This allows businesses to align with consumer values and contribute positively to society while maintaining profitability.

Researchers employ various methodologies to gather and analyze consumer behavior data. These methods can be broadly categorized into quantitative, qualitative, and hybrid approaches, each offering unique insights:

a) Quantitative Research Methods

Quantitative methods in consumer behavior research focus on collecting numerical data that can be statistically analyzed. They are useful for testing hypotheses and identifying patterns across large populations.

1. Surveys and Questionnaires

• Online surveys
• Phone interviews
• In-person questionnaires

2. Experimental Research

• Controlled studies to test specific variables
• A/B testing in digital environments

3. Data Mining and Analytics

• Analysis of large datasets from various sources
• Big data analytics to reveal patterns and trends
• Social media sentiment analysis

4. Neuroimaging and Biometric Research

• Using technology to measure physiological responses to stimuli
• Eye-tracking studies
• fMRI (functional Magnetic Resonance Imaging) scans

b) Qualitative Research Methods

Qualitative methods aim to gather in-depth insights into consumer motivations, attitudes, and behaviors. They provide rich, descriptive data that helps understand the 'why' behind consumer actions.

5. Focus Groups

• Moderated discussions with small groups of consumers
• Online focus groups and forums

6. Observational Research

• In-store behavior tracking
• Online shopping pattern analysis
• Participant observation

7. Ethnographic Studies

• Immersive research in consumers' natural environments
• Cultural probes and diary studies

8. In-depth Interviews

• One-on-one discussions with consumers
• Semi-structured or unstructured interviews

c) Hybrid Methods

Hybrid methods combine elements of both quantitative and qualitative approaches, providing a more comprehensive understanding of consumer behavior.

9. Product Testing and Sampling

• Allowing consumers to try products and provide feedback
• Beta testing for digital products
• Using platforms like Peekage , facilitating this process for consumer brands by offering product sampling in home ( IHUTs )

10. Mixed Methods Research

• Combining quantitative and qualitative approaches
• Triangulation of data from multiple sources

Each method has its strengths and limitations. Quantitative methods provide statistical reliability and generalizability , while qualitative methods offer depth and context . The choice of method depends on the research objectives, budget, time constraints, and the nature of the information sought. Often, a combination of methods yields the most comprehensive insights into consumer behavior.

Understanding the various factors that influence purchasing decisions is crucial for effective consumer behavior research. These factors can be categorized into five main groups:

1. Personal Factors

• Age and life-cycle stage
• Occupation and economic circumstances
• Personality and self-concept
• Lifestyle and values
• Gender identity

Personal factors significantly impact consumer preferences and choices. For instance, younger consumers often prioritize technology and convenience, while older consumers might focus more on quality and value. Income levels and occupation can determine purchasing power and brand preferences.

Example : A 65-year-old retiree chooses a cruise vacation package over an adventure tour.

This decision reflects their age, life-cycle stage, and potentially their economic circumstances.

2. Psychological Factors

• Beliefs and attitudes
• Decision-making processes

Psychological factors play a crucial role in shaping consumer decisions. A consumer's perception of a brand can be influenced by advertising, word-of-mouth , and personal experiences. Motivation drives consumers to fulfill their needs and desires, while learning from past experiences impacts future purchasing decisions.

Example : A consumer motivated by health and wellness may perceive organic products as superior and learn to choose brands that emphasize natural ingredients.

3. Social Factors

• Reference groups
• Roles and status
• Social media influence
• Peer recommendations

Social factors, including family, reference groups, and social class, significantly influence consumer behavior. In the digital age, social media has become a powerful force, with consumers often relying on reviews and recommendations from their online networks.

Trend : The rise of influencers on platforms like Instagram and TikTok has led to significant shifts in consumer preferences and buying patterns.

4. Cultural Factors

• Culture and subculture
• Social class
• Cultural trends and values
• Globalization effects

Cultural factors provide a broad context for consumer behavior. They shape overall preferences, communication styles, and decision-making processes. As markets become increasingly global, understanding cross-cultural consumer behavior has become essential for many brands.

Example : A U.S. company adjusts its menu to offer more vegetarian options when expanding to India. This reflects the cultural values and dietary preferences prevalent in Indian society.

5. Situational Factors

• Physical surroundings
• Time constraints
• Purchase purpose
• Mood and conditions

Situational factors can have a significant immediate impact on consumer behavior. For example, a crowded store might deter purchases, while a limited-time offer could encourage impulse buying.

Example : A shopper buys a more expensive umbrella during a sudden rainstorm. The immediate weather condition (physical surroundings) influences their purchasing decision.

Understanding these factors helps researchers design more effective studies, interpret results in a meaningful context, and enables brands to develop targeted marketing strategies. It's important to note that these factors often interact and influence each other, creating complex patterns of consumer behavior.

While consumer behavior research offers numerous benefits, it also comes with its share of challenges:

As technology and society evolve, so do the methods and focus areas of consumer behavior research. Here are some current trends shaping the field:

- Advanced Data Analytics

• Big Data : Leveraging large datasets to uncover patterns and insights.
• AI and Machine Learning : Predicting behavior and personalizing experiences.
• Real-time analytics : Providing instant insights for rapid decision-making.
• Predictive Analytics : Employing advanced algorithms to forecast future consumer behavior.

- Digital Behavior Analysis

• Social Media Analysis : Studying interactions and sentiments on social platforms.
• Mobile Behavior Tracking : Analyzing the mobile-first consumer journey.
• Cross-device tracking : Understanding consumer behavior across multiple devices.

- Neuromarketing and Biometric Research

• Brain imaging : Using fMRI and EEG to study neural responses to marketing stimuli.
• Eye-tracking : Analyzing visual attention and engagement.
• Facial expression analysis : Measuring emotional responses to products and ads.
• Advanced Biometric Sensors : Understanding subconscious consumer responses.

- Ethical and Sustainable Consumption

• Eco-friendly product preferences : Studying the impact of sustainability on choices.
• Ethical brand perception : Analyzing how company values influence consumer loyalty.
• Circular economy behavior : Researching consumer participation in recycling and upcycling.

- Personalization and Hyper-Targeting

• Micro-segmentation : Tailoring experiences for highly specific consumer groups.
• Dynamic pricing strategies : Studying the impact of personalized pricing.
• Content personalization : Analyzing the effectiveness of individualized marketing messages.

- Emerging Technology Adoption

• Voice Commerce : Investigating the impact of voice-activated devices on shopping habits.
• Augmented and Virtual Reality : Exploring how AR and VR influence consumer perceptions.
• Internet of Things (IoT) : Studying how connected devices affect consumer behavior.

- Behavioral Economics Integration

• Nudge theory application : Researching subtle influences on consumer choices.
• Decision architecture : Analyzing how choice presentation affects outcomes.
• Cognitive biases in consumption : Studying systematic errors in consumer thinking.

- Cultural and Global Consumer Research

• Cross-cultural analysis : Comparing consumer behavior across different cultures.
• Glocalization studies : Examining how global brands adapt to local markets.
• Diaspora marketing : Researching consumption patterns of immigrant communities.

- Experience Economy

• Customer journey mapping : Analyzing the entire consumer experience lifecycle.
• Experiential retail : Studying the impact of immersive shopping experiences.
• Brand communities : Researching how shared experiences influence consumer loyalty.

- Privacy and Data Ethics

• Consent and transparency : Analyzing consumer attitudes towards data collection.
• Privacy-preserving analytics : Developing methods for insights without compromising privacy.
• Trust economy : Studying how data practices impact brand perception.
• Blockchain for Data Management : Implementing technology to ensure data integrity and consumer control.

These emerging trends are reshaping how researchers understand and predict consumer behavior. They offer more nuanced, real-time insights while also presenting new challenges in data interpretation and ethical considerations. As the field continues to evolve, integrating these trends with traditional research methods will be crucial for a comprehensive understanding of consumer behavior.

Once businesses have gathered and analyzed consumer behavior data, the next crucial step is applying these insights effectively. Here are key ways companies can leverage consumer behavior research:

• Product Innovation and Development : Use insights to create or improve products based on consumer needs. For example : Peekage enables brands to conduct targeted product testing and gather valuable feedback directly from consumers.
• Targeted Marketing and Messaging : Craft more effective campaigns by tailoring messages to specific consumer segments. Case study : A leading beverage company used consumer behavior research to successfully target health-conscious millennials, significantly increasing sales.
• Pricing and Sales Optimization : Determine optimal pricing based on perceived value and willingness to pay. Identify and address bottlenecks in the sales funnel to improve conversion rates.
• Customer Experience Enhancement : Improve customer support, user experience design, and loyalty programs based on observed behavior and preferences. Implement personalized recommendations and responsive customer service to boost retention rates. 64% of consumers say that shared values are the primary reason they have a relationship with a brand .
• Brand Positioning : Refine brand messaging to resonate with target consumers and stand out in the marketplace.
• Market Segmentation : Identify distinct consumer groups with similar characteristics, allowing for more targeted strategies across all business functions.
• Trend Forecasting : Use historical consumer data and current behavior patterns to predict future trends and stay ahead of market shifts.
• Competitive Analysis : Understand how consumers perceive and interact with competitors, informing strategic decisions and identifying opportunities for differentiation.

Ethical Considerations

While leveraging consumer data, it's essential to address privacy concerns and adhere to ethical guidelines:

• Obtain explicit consent from consumers
• Anonymize data when possible
• Use secure methods for data storage and analysis
• Be transparent about data collection and usage practices
• Comply with relevant data protection regulations (e.g., GDPR, CCPA)

By responsibly applying real-time consumer behavior insights across these areas, businesses can make more informed decisions, improve their offerings, and build stronger relationships with their customers.

In today's dynamic marketplace, consumer behavior research is more critical than ever. By gaining a deep understanding of what drives consumer decisions, businesses can create products that truly meet customer needs, develop marketing strategies that resonate, and build lasting relationships with their target audience.

As technology continues to evolve, so too will the methods and capabilities of consumer behavior research. Companies that stay at the forefront of these developments and consistently apply consumer insights to their strategies will be best positioned for success in the ever-changing world of consumer behavior.

1. What are the objectives of consumer behavior research?

The objectives of consumer behavior research are to understand how and why consumers make purchasing decisions, identify factors influencing their choices, predict future buying patterns, and develop strategies to meet consumer needs and preferences. This research helps businesses optimize marketing efforts, improve product development, and enhance customer satisfaction.

2. What are the 5 stages of consumer behavior?

The five stages of consumer behavior are:

• Problem Recognition : Realizing there is a need or want.
• Information Search : Looking for information about products or services.
• Evaluation of Alternatives : Comparing different options.
• Purchase Decision : Choosing and buying the product.
• Post-Purchase Behavior : Reflecting on the purchase decision and its outcomes.

3. Who studies consumer behavior?

Consumer behavior is studied by marketers, businesses, researchers, psychologists, and economists to understand purchasing patterns and influence marketing strategies.

4. What are the 4 P's of consumer Behaviour?

The 4 P's of consumer behavior are:

• Product : The item or service that meets a consumer's need or desire.
• Price : The cost of the product, affecting its perceived value and purchasing decision.
• Place : The distribution channels through which the product is made available.
• Promotion : The marketing activities used to inform and persuade consumers about the product.

5. What type of research is consumer behavior?

Consumer behavior research is a type of market research that combines qualitative and quantitative methods to study how and why consumers make purchasing decisions, including their motivations, preferences, and buying patterns.

• What is Research? Definition, Types, Methods and Process, Idea Scale, https://ideascale.com/blog/what-is-research/
• Consumer Qualitative Research Techniques, Explorer Research, https://explorerresearch.com/consumer-qualitative-research-techniques/
• What Is Consumer Motivation? (Consumer Psychology 101), LRW Online, https://lrwonline.com/perspective/consumer-psychology-101-what-is-motivation/
• Understanding consumer buying behavior, NOLDuS, https://www.noldus.com/blog/understanding-consumer-buying-behavior

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Consumer Research: Examples, Process and Scope

What is Consumer Research?

Consumer research is a part of market research in which inclination, motivation and purchase behavior of the targeted customers are identified. Consumer research helps businesses or organizations understand customer psychology and create detailed purchasing behavior profiles.

It uses research techniques to provide systematic information about what customers need. Using this information brands can make changes in their products and services, making them more customer-centric thereby increasing customer satisfaction. This will in turn help to boost business.

LEARN ABOUT: Market research vs marketing research

An organization that has an in-depth understanding about the customer decision-making process, is most likely to design a product, put a certain price tag to it, establish distribution centers and promote a product based on consumer research insights such that it produces increased consumer interest and purchases.

For example, A consumer electronics company wants to understand, thought process of a consumer when purchasing an electronic device, which can help a company to launch new products, manage the supply of the stock, etc. Carrying out a Consumer electronics survey can be useful to understand the market demand, understand the flaws in their product and also find out research problems in the various processes that influence the purchase of their goods. A consumer electronics survey can be helpful to gather information about the shopping experiences of consumers when purchasing electronics. which can enable a company to make well-informed and wise decisions regarding their products and services.

LEARN ABOUT:  Test Market Demand

Consumer Research Objectives

When a brand is developing a new product, consumer research is conducted to understand what consumers want or need in a product, what attributes are missing and what are they looking for? An efficient survey software really makes it easy for organizations to conduct efficient research.

Consumer research is conducted to improve brand equity. A brand needs to know what consumers think when buying a product or service offered by a brand. Every good business idea needs efficient consumer research for it to be successful. Consumer insights are essential to determine brand positioning among consumers.

Consumer research is conducted to boost sales. The objective of consumer research is to look into various territories of consumer psychology and understand their buying pattern, what kind of packaging they like and other similar attributes that help brands to sell their products and services better.

LEARN ABOUT: Brand health

Consumer Research Model

According to a study conducted, till a decade ago, researchers thought differently about the consumer psychology, where little or no emphasis was put on emotions, mood or the situation that could influence a customer’s buying decision.

Many believed marketing was applied economics. Consumers always took decisions based on statistics and math and evaluated goods and services rationally and then selected items from those brands that gave them the highest customer satisfaction at the lowest cost.

However, this is no longer the situation. Consumers are very well aware of brands and their competitors. A loyal customer is the one who would not only return to repeatedly purchase from a brand but also, recommend his/her family and friends to buy from the same brand even if the prices are slightly higher but provides an exceptional customer service for products purchased or services offered.

Here is where the Net Promoter Score (NPS) helps brands identify brand loyalty and customer satisfaction with their consumers. Net Promoter Score consumer survey uses a single question that is sent to customers to identify their brand loyalty and level of customer satisfaction. Response to this question is measured on a scale between 0-10 and based on this consumers can be identified as:

Detractors: Who have given a score between 0-6.

Passives: Who have given a score between 7-8.

Promoters: Who have given a score between 9-10.

Consumer market research is based on two types of research method:

1. Qualitative Consumer Research

Qualitative research  is descriptive in nature, It’s a method that uses open-ended questions , to gain meaningful insights from respondents and heavily relies on the following market research methods:

Focus Groups: Focus groups as the name suggests is a small group of highly validated subject experts who come together to analyze a product or service. Focus group comprises of 6-10 respondents. A moderator is assigned to the focus group, who helps facilitate discussions among the members to draw meaningful insights

One-to-one Interview: This is a more conversational method, where the researcher asks open-ended questions to collect data from the respondents. This method heavily depends on the expertise of the researcher. How much the researcher is able to probe with relevant questions to get maximum insights. This is a time-consuming method and can take more than one attempt to gain the desired insights.

LEARN ABOUT: Qualitative Interview

Content/ Text Analysis: Text analysis is a qualitative research method where researchers analyze social life by decoding words and images from the documents available. Researchers analyze the context in which the images are used and draw conclusions from them. Social media is an example of text analysis. In the last decade or so, inferences are drawn based on consumer behavior on social media.

Learn More: How to conduct Qualitative Research  

2.Quantitative Consumer Research

In the age of technology and information, meaningful data is more precious than platinum. Billion dollar companies have risen and fallen on how well they have been able to collect and analyze data, to draw validated insights.

Quantitative research is all about numbers and statistics. An evolved consumer who purchases regularly can vouch for how customer-centric businesses have become today. It’s all about customer satisfaction , to gain loyal customers. With just one questions companies are able to collect data, that has the power to make or break a company. Net Promoter Score question , “On a scale from 0-10 how likely are you to recommend our brand to your family or friends?”

How organic word-of-mouth is influencing consumer behavior and how they need to spend less on advertising and invest their time and resources to make sure they provide exceptional customer service.

LEARN ABOUT: Behavioral Targeting

Online surveys , questionnaires , and polls are the preferred data collection tools. Data that is obtained from consumers is then statistically, mathematically and numerically evaluated to understand consumer preference.

Learn more: How to carry out Quantitative Research

Consumer Research Process

The process of consumer research started as an extension of the process of market research . As the findings of market research is used to improve the decision-making capacity of an organization or business, similar is with consumer research.

LEARN ABOUT:  Market research industry

The consumer research process can be broken down into the following steps:

• Develop research objectives: The first step to the consumer research process is to clearly define the research objective, the purpose of research, why is the research being conducted, to understand what? A clear statement of purpose can help emphasize the purpose.
• Collect Secondary data: Collect secondary data first, it helps in understanding if research has been conducted earlier and if there are any pieces of evidence related to the subject matter that can be used by an organization to make informed decisions regarding consumers.
• Primary Research: In primary research organizations or businesses collect their own data or employ a third party to collect data on their behalf. This research makes use of various data collection methods ( qualitative and quantitative ) that helps researchers collect data first hand.

LEARN ABOUT: Best Data Collection Tools

• Collect and analyze data: Data is collected and analyzed and inference is drawn to understand consumer behavior and purchase pattern.
• Prepare report: Finally, a report is prepared for all the findings by analyzing data collected so that organizations are able to make informed decisions and think of all probabilities related to consumer behavior. By putting the study into practice, organizations can become customer-centric and manufacture products or render services that will help them achieve excellent customer satisfaction.

LEARN ABOUT: market research trends

After Consumer Research Process

Once you have been able to successfully carry out the consumer research process , investigate and break paradigms. What consumers need should be a part of market research design and should be carried out regularly. Consumer research provides more in-depth information about the needs, wants, expectations and behavior analytics of clients.  

By identifying this information successfully, strategies that are used to attract consumers can be made better and businesses can make a profit by knowing what consumers want exactly. It is also important to understand and know thoroughly the buying behavior of consumers to know their attitude towards brands and products.

The identification of consumer needs, as well as their preferences, allows a business to adapt to new business and develop a detailed marketing plan that will surely work. The following pointers can help. Completing this process will help you:

• Attract more customers  
• Set the best price for your products  
• Create the right marketing message  
• Increase the quantity that satisfies the demand of its clients  
• Increase the frequency of visits to their clients  
• Increase your sales  
• Reduce costs  
• Refine your approach to the customer service process .

LEARN ABOUT: Behavioral Research

Consumer Research Methods

Consumers are the reason for a business to run and flourish. Gathering enough information about consumers is never going to hurt any business, in fact, it will only add up to the information a business would need to associate with its consumers and manufacture products that will help their business refine and grow.

Following are consumer research methods that ensure you are in tandem with the consumers and understand their needs:

The studies of customer satisfaction

One can determine the degree of satisfaction of consumers in relation to the quality of products through:

• Informal methods such as conversations with staff about products and services according to the dashboards.   
• Past and present questionnaires/ surveys that consumers might have filled that identify their needs.   

T he investigation of the consumer decision process

It is very interesting to know the consumer’s needs, what motivates them to buy, and how is the decision-making process carried out, though:

• Deploying relevant surveys and receiving responses from a target intended audience .

Proof of concept

Businesses can test how well accepted their marketing ideas are by:

• The use of surveys to find out if current or potential consumer see your products as a rational and useful benefit.  
• Conducting personal interviews or focus group sessions with clients to understand how they respond to marketing ideas.

Knowing your market position

You can find out how your current and potential consumers see your products, and how they compare it with your competitors by:

• Sales figures talk louder than any other aspect, once you get to know the comparison in the sales figures it is easy to understand your market position within the market segment.
• Attitudes of consumers while making a purchase also helps in understanding the market hold.      

Branding tests and user experience

You can determine how your customers feel with their brands and product names by:

• The use of focus groups and surveys designed to assess emotional responses to your products and brands.  
• The participation of researchers to study the performance of their brand in the market through existing and available brand measurement research.   

Price changes

You can investigate how your customers accept or not the price changes by using formulas that measure the revenue – multiplying the number of items you sold, by the price of each item. These tests allow you to calculate if your total income increases or decreases after making the price changes by:

• Calculation of changes in the quantities of products demanded by their customers, together with changes in the price of the product.   
• Measure the impact of the price on the demand of the product according to the needs of the client.   

Social media monitoring

Another way to measure feedback and your customer service is by controlling your commitment to social media and feedback. Social networks (especially Facebook) are becoming a common element of the commercialization of many businesses and are increasingly used by their customers to provide information on customer needs, service experiences, share and file customer complaints . It can also be used to run surveys and test concepts. If handled well, it can be one of the most powerful research tools of the client management . I also recommend reading: How to conduct market research through social networks.

Customer Research Questions

Asking the right question is the most important part of conducting research. Moreover, if it’s consumer research, questions should be asked in a manner to gather maximum insights from consumers. Here are some consumer research questions for your next research:

• Who in your household takes purchasing decisions?
• Where do you go looking for ______________ (product)?
• How long does it take you to make a buying decision?
• How far are you willing to travel to buy ___________(product)?
• What features do you look for when you purchase ____________ (product)?
• What motivates you to buy_____________ (product)?

See more consumer research survey questions:

Customer satisfaction surveys

Voice of customer surveys

Product surveys

Service evaluation surveys

Mortgage Survey Questions

Importance of Consumer Research

Launching a product or offering new services can be quite an exciting time for a brand. However, there are a lot of aspects that need to be taken into consideration while a band has something new to offer to consumers.

LEARN ABOUT: User Experience Research

Here is where consumer research plays a pivotal role. The importance of consumer research cannot be emphasized more. Following points summarizes the importance of consumer research:

• To understand market readiness: However good a product or service may be, consumers have to be ready to accept it. Creating a product requires investments which in return expect ROI from product or service purchases. However, if a market is mature enough to accept this utility, it has a low chance of succeeding by tapping into market potential . Therefore, before launching a product or service, organizations need to conduct consumer research, to understand if people are ready to spend on the utility it provides.
• Identify target consumers: By conducting consumer research, brands and organizations can understand their target market based on geographic segmentation and know who exactly is interested in buying their products. According to the data or feedback received from the consumer, research brands can even customize their marketing and branding approach to better appeal to the specific consumer segment.

LEARN ABOUT: Marketing Insight

• Product/Service updates through feedback: Conducting consumer research, provides valuable feedback from consumers about the attributes and features of products and services. This feedback enables organizations to understand consumer perception and provide a more suitable solution based on actual market needs which helps them tweak their offering to perfection.

Explore more: 300 + FREE survey templates to use for your research

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