The Strengths and Weaknesses of Various Customer Surveys - Essay Example

Companies do research dislikes When companies do research the goal of the company’s research is to discover what the s want and what the customers need. Customers will not always be honest during a survey, or a focus group. A customer will not always notify the managers of the store if there is a problem. So companies implement either quantitative, or qualitative research. Quantitative, and qualitative research have many significant differences. The subject of this paper will discuss the differences between quantitative, and qualitative research. Readers will have a clearer understanding of the differences between quantitative, and qualitative research. The subject of the paper will discuss when a company should implement quantitative research and when a company should implement qualitative research. 1.0 Introduction For many market researchers the study of consumer behavior is a must. Many companies will employ the services of a market research company to study customer behaviors. By studying a customer’s behaviors quantitatively the company is trying to decide the what, when, and where of the company’s customers behavior. However, many companies have recently wanted to know why customers have such behaviors. In discovering the what, when, and where of a customer’s behavior a company is employing quantitative research methods. Traditionally, companies would only employ quantitative research methods. Today with the introduction of the Internet over the past 20 years companies have begun to employ other methods of studying a customer’s behavior. Today many companies hire market research corporations to employ a qualitative research method. In employing a qualitative research method a company is studying why a consumer acts the way the consumer does. Studies have found that although consumers are not alike, many consumers act a certain way when consumers shop. This study is about discovering when employing a qualitative research methodology is better for consumer research than employing a quantitative research method. The study wanted to discover how a qualitative research methodology will assist companies in studying a consumer’s behavior. The study wanted to know in employing a qualitative research methodology do companies have a better grasp of a consumer’s behavior instead of when studying a consumer’s behavior with quantitative research methodologies. 2.0 Literature Review Because there is a big difference between qualitative research methods and quantitative research methods the study explored both. The study discovered the difference between quantitative, and qualitative research methodologies. Before the study could answer the question the study needed to know the difference between quantitative, and qualitative research methodologies as they pertain to consumer behavior. If it were not for early market researchers many companies may not have kept up with the consumer needs. In conducting market research companies can keep up with the demand of the consumers. When companies can keep up with the demands of consumers, the consumers are much happier with the companies, and tend to shop at the company. In deciding what consumers want companies must conduct some sort of research. Many market research companies employee one or the other-quantitative, or qualitative. However, many companies conduct market research in both quantitative, and qualitative methods. When a company wants to know what consumers want and what the consumers behavior is the company will often employ a market research company to conduct research on behalf of the company to find out these answers. Many companies employ a market research company on a regular basis; because these companies want to know the consumers attitudes, and behaviors. These companies want to discover what customers of their business want and what they think of the company at the time of the research. Companies all over the world who want to know what their consumers likes, and dislikes are. Multinational companies from Japan may want to know feedback from consumers in the United States. The companies in Japan that do business in the United States will employ the services of a market research company. The market research company will use discretion if the market company wants to conduct a quantitative research study, or a qualitative research study. The company employing the services of the market research company will dictate how the study participants are to be qualified for the study. 2.1.0 Quantitative Quantitative studies are in-depth research into social, or human problems, there are theories composed of variables, and then analyzed for statistical procedures (N. A., N. D.). Quantitative studies use numbers, and statistics. The numbers, and statistics for a quantitative study are only useful to a certain degree. A quantitative study is useful in wanting to know how many consumers think a certain way. There are many researchers who have been around for so long that they received their common ground, in their training in research conducting quantitative research (Davies, October, 2000). Many of these early market researchers are beginning to coax companies into employing other methods of research. As time has changed so have the methods of conducting market research. Today many market researchers can employ quantitative methods of conducting consumer research via the Internet. Whereas before the Internet market research companies would have to use direct mailing lists to conduct market research on consumer behavior. Quantitative research focuses on what the consumers like, and dislike. The research study could be on a certain product, or the company itself. Some companies like Microsoft will ask for a quantitative research to be done on a certain product. Other times companies will ask for a quantititative research to be done on the company itself. When quantitative research is done the company has a clear understanding of customer behavior. During a quantitative study a researcher may ask specific questions to the select group about the groups likes, and dislikes. The group of participants during a quantitative research study are volunteers. Usually, the company will ask the research company to survey a large group of perhaps 1000 participants. Sometimes there are more than 1000 participants, and sometimes there are less than 1000 participants. The participants in the study are from different areas. This is especially true of nationwide companies. For multinational companies the participants might come from all over the world. 2.1.1 Quantitative Methodology When a market researcher conducts a quantitative study the market researcher looked at a general case and then looks at the specifics (DeVault, N. D.). With all respect the quantitative methodology has been around longer than the qualitative methodology, and still holds a significance for many in the market, and marketing fields (Teodorescu, et. Al., N. D.). Since, quantitative methodologies were around before qualitative methodologies and still holds significance in the marketplace many market researchers are still employing the methodology of quantitative research. When a market researcher employs the methodology of quantitative research the market researcher will often use a survey to conduct the research. Today the survey can be administered through the Internet. However, in the past market researchers needed to mail the questionnaire to the recipients. When the recipients received the questionnaire the recipients usually received a cash incentive to fill out the questionnaire. When the questionnaire was mailed to the market research company the market research company employed measures to count the answers of those who responded to the questionnaire. Today with the use of the Internet the questionnaire is administered over the Internet. Market research companies hardly use mailing lists to conduct quantitative research on consumer behavior. Today like in the past those respondents who answered the questionnaire will receive a cash incentive. Immediately following the questionnaire the computer will tally up what the respondent answered to the questionnaire. The computer will keep an accurate score of all of the respondents answers. When a market researcher employs a quantitative research method the market researcher will be accurately measuring the statistics of a consumers attitude, behavior, and performance (N. A., N. D.). In attempting to measure a consumers attitude, behavior, and performance a quantitative study of consumer behavior will give the market researcher a general idea of what consumers in the market want for a specific product, and may be opportunities for a new-product (Kelton, N. D.). When consumers enter the questionnaire, and the market researcher analyzes the answers from the consumers the market researcher then reports back to the company who employed the market research company with the results. The results will notify the company of any changes in the consumers behavior, and attitudes toward that company, and the company’s product. Oftentimes researchers are finding themselves needing to develop new methods to conduct consumer research; because, the methods that worked in the past may not work in the present (N. A., N. D.). 2.1.2 Consumer Behavior and Quantitative Research For many years market researchers have been aware that there are emotional and psycho- dynamic factors that cause brand selection, and loyalty (Uyjohn, N. D.). Many market researchers are on a quest to discover the consumer behavior as it pertains to a certain company. During market research the consumers behavior is analyzed usually on a scale of one to five. During a quantitative study the consumer will answer the questions presented in the questionnaire based on what the consumer thinks of the products, or service that the company has to offer. When the company has the information from the market research company the company takes actions based on what consumers answered during the survey. Quantitative studies are generally done through a large, and statistically representative sample (N. A., N. D.). Usually the study has a select sample of respondents, and the study represents all consumers. Companies ask the market researchers to select consumers with a certain criteria to take part in the survey. This sample is very selective, and the results of the survey will reflect the group that meets that certain criteria. The market researcher analyzes the respondents answers. The market researcher is looking for similarities between groups of people. When the market research company chooses the participants in the study the market research company will choose a certain amount from each age group, and a certain amount of participants from each race. The market research company employs this tactic; because, the market research company wants to have a general idea from each age group, and each race. A market research company will oftentimes ask participants whether, or not participants their marital status. Sometimes participants are chosen on the criteria of whether or not they have children. All of this criteria is very important to a research project on how consumers of a certain age, race, or marital status will react to the questions on the survey. This will give market researchers a general idea of what each group likes, and dislikes about the a certain company, or a certain product. Market researchers do not employ different methods for different surveys. Each quantitative study is conducted the same way. The company is employing the market research company will instruct the market research company on how many participants from each group the company wants to hear from. The market research company will begin the survey, and tally up the results. Once the results are finalized the market research company will give the company requiring the research a list of all the results. A survey is generally done on a confidentiality basis. The only identifiable information respondents need to give is there demographic information. Respondents do not give their name; but sometimes the respondent is asked for a date of birth, or just the age. Many market researchers will use quantitative research methods to develop an understanding of the consumers awareness of a brand with respect to recognition and recall (N. A., N. D.). In employing market research to discover what a consumers brand awareness is companies can either change their product altogether, discontinue a product, or just change the packaging of the product. This is something that can be found out during a market research with a quantitative methodology. Generally an accepted practice with quantitative research is that while the market research will represent specific groups of consumers there will be a margin for error both positive, and negative. 2.2.0 Qualitative A qualitative research study looks to discover the why. A qualitative research study wants to know why consumers act the way they do. During a qualitative study market researchers will discover many things about the participants. Usually, a qualitative research study is quite different from a quantitative research study. The qualitative research study investigates methods of different academic disciplines, and a qualitative research study will cross subjects between these different disciplines (McLean, N. D.). In investigating the cross subjects between academic disciplines a qualitative research study is inquiring specifically on why the customer purchases products from the company, and why the customer frequents the company. Companies find qualitative research beneficial in many ways. A qualitative research study is more of a face-to-face research study. A qualitative research study will ask participants to participate in focus groups, and other discussion groups. During the discussion groups there is a mediator who will take charge of the situation if there are any disagreements during the session. During the discussion the mediator will take notes. After the discussion the notes are analyzed, and the research is documented. After the market research is documented the research analysts will report back to the company who employed them. Upon reporting back to the company the research analysts will give the company a clearer understanding of a consumers behavior. A qualitative research study will focus on why a consumer acts the way the consumer does. A qualitative study will give a company a clear understanding of the sample group, and those like the sample group. 2.2.1 Qualitative Methodology During a qualitative study researchers will investigate the why through many means. A qualitative methodology involves focus groups, and mystery shoppers. There is a moderator during a focus group. The moderator is there to play the role of a mediator. If two people during the discussion become irate the moderator is there to settle any arguments. However, the moderator is not there to put thoughts into the research participants minds. Many researchers incorporate picture files, video, and audio into a focus group, or discussion board (N. A., N. D.). Putting thoughts into the minds of the participants would cause the study to be flawed. The purpose of this study is to have firsthand knowledge of what customers think. The company that employed the services of the market research company wants to know what the customers think firsthand. If the customer was treated with exceptional customer service at a certain store and that is why the customer continues to come back to that store the company wants to know this. Companies want to know a customer’s experience with products, and know why the customer continues to purchase that product. The purpose of the qualitative research study is to achieve this firsthand knowledge. Companies want to research through the qualitative research study just so they can have this firsthand knowledge. Traditionally market research was conducted quantitatively, and this was a good way of telling what the customers wanted and relatively the customers are explaining to the company why they purchase the product, and why they frequent the store (Reid, 2010). This firsthand knowledge is achieved qualitatively with a focus group. Sometimes companies will hire a mystery shopper to rate the experience that the mystery shopper had while visiting one of the company stores. The mystery shopper is something that is new compared to the 1980s. During the 1980s companies exclusively conducted research through quantitative means. Today customers rate their experience in focus groups, other discussion boards, and mystery shopping. Use of the Internet has made research through qualitative means easier. Today’s companies can conduct focus groups of select customers throughout the country, and throughout the world. A mystery shopper will most often write the report using the Internet. 2.2.2 Consumer Behavior and Qualitative Research A qualitative research study will lead to a better understanding of consumer behavior (N. A., N. D.). Many companies realize that before the company can analyze the unmet needs of customers they will need to conduct qualitative research and that there is no survey that will tell the company what those unmet needs of the consumers are (Lash, 2008). Many companies strive to meet, and exceed the needs of the customers. If companies do not employ the services of a market research company and study customers qualitatively the company is not going to know what those unmet needs are. “Qualitative research often involves the study of behavior and the reasons behind it” (Olivia, 2011). The main purpose of a qualitative study is to study consumer behavior and create a robust, and detailed description of the consumer behavior, and also to find out consumer trends, market needs, and what the consumers motivations are (Schweitzer, 2009). Only when a company holds a qualitative research study can the company find this information. Companies are putting this information to use by employing the suggestions that are made during focus groups, mystery shoppers, and other discussion boards. The patterns of human behavior have changed over the years. The patterns of human behavior are going to change in the future. Companies who understand business learn to assimilate and change with the customer. When human behavior changes, and companies remain the same consumers will look elsewhere for those same products offered by the company. Companies that have strong leadership at the top will implement qualitative research to find out the newest trends. Many might think there is no purpose for qualitative research; because, if companies have strong leadership at the top companies can keep up with the trends by being observant. However, this may be true of a fashion designer this is not always true for other companies. Each company has a specific group of consumers who frequent the company. Many will frequent the company because of products that the company carries, and these consumers have a need for the products the company carries. However, before generating new business for a company the company has to know exactly what the customers want, and what they need. Companies find this information out by conducting a qualitative research study either by focus group, a mystery shopper, or another type of discussion board. “Qualitative market research is a powerful market research tool” (N. A., 2011). 3.0 Methodology This study involved much research. Many online Journal articles and other resources were viewed during the course of the research. Many of the online resources were from Journal articles. The journal articles were written by many that are experts of qualitative and quantitative research. Some of these experts included market researchers, and entrepreneurs. When the research was conducted much was learned about qualitative, and quantitative market research studies. This new knowledge was incorporated into this report. During the course of the research the study found that there are companies that employ market research companies for both quantitative, and qualitative research studies. The market research businesses sometimes specialize in one, or the other, and sometimes the market research company will have experts in both fields. The research was beneficial in many ways. Through the research it was learned why companies employ the services of a market research company. Through the research it was learned that companies employ the services of a market research company; because the company wants to stay in business. The research explored that companies want to employ the services of a market research company for quantitative and qualitative research; because, companies that do not learn what the customers want will not be able to remain in business. Companies who begin to do the research, and learn what the customers want, and implement into the Corporation what the consumers want will remain in business. Through the research it was learned that the only way companies can learn what the customers want is to employ the services of a research company. 4.0 Research and Findings The research was beneficial to the study. During the research it was learned why consumers behave the way they do. Research studies are a proven method to achieve answers about why consumers do what consumers do. The only way to know why consumers do what they do is to employ qualitative research studies. Doing research is the only way that a company is going to know what customers want and how they want what they want. Companies can choose either qualitative methods or quantitative methods. In choosing one or the other a company needs to decide what type of research will work best for the particular study. The company needs to decide if the company wants to have an in-depth focus on what the consumers needs or does the company want to discover what consumers are doing and what they think of the products. Sometimes but not always companies implement both qualitative research methods, and quantitative research methods into one study. In implementing both the quantitative, and qualitative research methods into one study the company has a clearer understanding of all questions that a company might ask about the consumers who purchase products or services from the company 4.1 When to Choose between Quantitative and Qualitative Research When a company decides to employ the services of a research company the company must decide on a quantitative research study, or a qualitative research study. It may be difficult for the company to decide. In deciding what type of data the company wants to collect, the company needs to keep two things in mind: 1) what the company’s objectives are in collecting the data, and 2) the company needs to stick within the company’s budget (N. A., N. D.). In choosing the same qualitative, and quantitative research a company needs to know what the needs of the company are at the time of the research. In knowing what the needs of the company are at the time of the research the company will have a clearer understanding whether or not to do quantitative research. If a company does quantitative research than the company is usually needing to know what the customer wants and what the customer thinks of the products, or services that the company has. Many companies still employ the services of a market research company for quantitative reasons. However, many marketing research companies have turned to the Internet instead of a direct mailing list. Quantitative research is generally less expensive than qualitative research. If company budget is limited the company might not want to employ the services of a qualitative research study. If the company employs the services of a qualitative research study the company is generally trying to get a clearer understanding of the why. Sometimes if the company is beginning to lose revenue the company might want to employ the services of qualitative research study. A qualitative research study will give the company a clear understanding of what the customers are thinking of the products and services that the company has to offer. With a focus group or discussion board the company will to meet with the customers face-to-face. The leaders of a Corporation do not normally meet with the customers on a day-to-day basis. Generally the leaders of the Corporation begin to not know what the consumer is thinking and the trends that the consumers are beginning to have. So a qualitative research study vote give the leaders of the Corporation a clear understanding of why there is a loss of revenue in the company now. 4.2 How Qualitative Research Can Help a Business Qualitative research assistant business in many ways. Many businesses will follow up quantitative research with a qualitative research study. In following up a quantitative research study with a qualitative research study a business wants to get a clear understanding of every aspect of a consumer’s behavior. A business that has a clear understanding of all aspects of the consumers behavior will maintain revenue, and profit. A company that maintains profits will be able to stay in business for quite some time. If the company has it in the budget to research both quantitatively and qualitatively then the company might want to have a clearer understanding of everything going on in a consumers life. When companies have a clear understanding of what their customers want and what they need a company can work toward satisfying those wants, and needs of the customers. 5.0 Conclusion The topic of this paper discussed many differences between quantitative, and qualitative research. In discussing many differences between qualitative, and consultative research the reader should have a clear understanding of the differences. Throughout the paper it was discussed that when a company employs the services of a quantitative research and when a company would want to employ the services of a qualitative research. Oftentimes a company will employ both quantitative and qualitative research. When a company employs both quantitative and qualitative research the company has a clear understanding of what the customers need as well as what customers want. However, many companies still just use the quantitative research method. A company should occasionally implement a qualitative research study. Because, if a company implements a qualitative research study occasionally the company will have a clear understanding of why the customers purchase the products, or services that the company has to offer. References About qualitative research, (N. D.)., Consumer, Insights, Beliefs, and Attitudes, http://www.gociba.com/aboutqr.htm, May 3, 2011 Consumer focused research methods, (N. 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