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Which of the four levels of consumer research have you achieved?

2024-07-18 16:59:52 Source: Champ Consulting Visits:0

Definition and significance of 1. consumer research

Consumer research refers to the process of collecting, analyzing and interpreting consumer-related data and information to understand consumer characteristics, needs, preferences, behavior and satisfaction, as well as various factors that affect consumers, so as to provide basis and guidance for marketing decisions. The main purpose of consumer research is to help enterprises better meet the needs of consumers, improve consumer satisfaction and loyalty, and enhance the competitiveness and profitability of enterprises.

The significance of consumer research is mainly reflected in the following aspects:

-Consumer research can help companies understand the current situation and trends of the market, find market opportunities and threats, and formulate reasonable market goals and strategies.

-Consumer research can help companies understand consumer needs and preferences, develop and improve products and services, and improve the quality and value of products and services.

-Consumer research can help companies understand consumer behavior and psychology, select and design effective marketing mix, including products, prices, channels and promotions.

-Consumer research can help companies understand consumer satisfaction and loyalty, evaluate and improve corporate image and reputation, and establish and maintain good consumer relationships.

Four Levels of 2. Consumer Research

Consumer research is not a single activity, but a multi-level process. It requires different methods and technologies according to different purposes and scenarios to obtain accurate and valuable information. According to the purpose and scope of consumer research, this paper divides consumer research into four levels, namely, descriptive research, diagnostic research, predictive research and normative research. The following describes the characteristics, advantages and limitations of each level, as well as how to choose and apply.

1. Descriptive research

Descriptive research refers to the collection and collation of consumer-related data and information to describe the basic characteristics, needs, preferences, behavior and satisfaction of consumers, as well as the size, structure, distribution and changes of the market. The main purpose of descriptive research is to provide the basic situation of the market and consumers, and to provide the basis and reference for subsequent analysis and decision-making.

The advantages of descriptive research are:

-Descriptive research can provide a large amount of data and information, covering a wide range of areas and aspects, providing rich material for marketing decisions.

-Descriptive research can be conducted through a variety of methods and techniques, including secondary data analysis, questionnaires, observational methods, experimental methods, etc., and appropriate methods and techniques can be selected according to different data sources and data types.

-Descriptive research can be carried out in both quantitative and qualitative ways, showing the diversity and complexity of consumers and markets from different angles and levels.

The limitations of descriptive research are:

-Descriptive research can only provide superficial phenomena of consumers and markets, and cannot deeply analyze the internal causes and mechanisms of consumers and markets.

-Descriptive research can only provide the past and present situation of consumers and markets, and cannot predict the future trends and changes of consumers and markets.

-Descriptive research can only provide objective facts about consumers and markets, not subjective evaluations and suggestions.

The application scenarios of descriptive research are mainly as follows:

-Descriptive research can be conducted when an enterprise needs to understand the basic situation of the market, such as the size, structure, distribution, changes, etc. of the market, in order to determine the potential and attractiveness of the market.

-When enterprises need to understand the basic situation of consumers, such as the demographic, social, economic, psychological, cultural and other characteristics of consumers, in order to determine the target market and target consumers, descriptive research can be conducted.

-Descriptive research can be conducted when companies need to understand consumer needs and preferences, such as consumer needs, expectations, attitudes, opinions, etc. for products and services to determine the characteristics and advantages of products and services.

-Descriptive research can be conducted when a business needs to understand consumer behavior and satisfaction, such as consumer purchase, use, evaluation, recommend, etc., as well as consumer satisfaction and loyalty to the business, to determine the performance and improvement of the business.

A typical case of descriptive research is the market research service provided by Champ Consulting for an automobile manufacturer. The automaker wants to develop a new electric car to meet market demands and competitive pressures. Through secondary data analysis of the electric vehicle market at home and abroad, as well as a questionnaire survey of target consumers, Shangpu Consulting provided the automaker with the following data and information:

-The scale, structure, distribution and changes of the electric vehicle market, including the sales volume, market share, growth rate, regional distribution, competitive pattern, etc.

-The characteristics, needs, preferences, behaviors and satisfaction of the target consumers, including the demographic, social, economic, psychological and cultural characteristics of the target consumers, as well as the demand, expectation, attitude, opinion, purchase, use, evaluation and recommend of the target consumers for electric vehicles.

These data and information provide the car manufacturer with the basic situation of the market and the basic situation of consumers, and provide the basis and reference for its development of new electric vehicles.

2. Diagnostic research

Diagnostic research refers to the analysis and interpretation of consumer-related data and information to identify and explain consumer needs, preferences, behavior and satisfaction, as well as market opportunities and threats. The main purpose of diagnostic research is to reveal the internal causes and mechanisms of consumers and the market, and to provide the basis and guidance for subsequent forecasting and decision-making.

The advantages of diagnostic research are:

-Diagnostic research can provide in-depth analysis and explanation of consumers and markets, and can identify potential problems and needs of consumers and markets, as well as key factors and variables that affect consumers and markets.

-Diagnostic research can be carried out through a variety of methods and techniques, including statistical analysis, causal analysis, cluster analysis, factor analysis, regression analysis, etc., according to different data characteristics and analysis objectives, select the appropriate methods and techniques.

-Diagnostic research can be carried out in quantitative and qualitative ways, and can show the laws and patterns of consumers and markets from different angles and levels.

The limitations of diagnostic research are:

-Diagnostic research needs to rely on the data and information provided by descriptive research. If the data and information of descriptive research are inaccurate or incomplete, the quality and effectiveness of the analysis and interpretation of diagnostic research will be affected.

-Diagnostic research can only provide existing causes and mechanisms of consumers and markets, and cannot predict future changes and developments of consumers and markets.

-Diagnostic research can only provide objective analysis and interpretation of consumers and markets, and cannot provide subjective evaluation and recommendations of consumers and markets.

The main application scenarios for diagnostic research are as follows:

-Diagnostic research can be conducted when companies need to understand market opportunities and threats, such as changes in market demand and supply, market competition and cooperation, and the impact of market laws and policies to determine market strengths and weaknesses.

-Diagnostic research can be conducted when companies need to understand consumer needs and preferences, such as the formation, changes, and differences in consumer needs and preferences for products and services, as well as the factors and variables that affect consumer needs and preferences, in order to determine the differentiation and positioning of products and services.

-When enterprises need to understand the behavior and satisfaction of consumers, such as the process, motivation and influence of consumers' purchase, use, evaluation, recommend and other behaviors, as well as the formation, change and difference of consumers' satisfaction and loyalty to enterprises, as well as the factors and variables affecting consumer satisfaction and loyalty, etc., in order to determine the effect and improvement of enterprises, diagnostic research can be carried out.

A typical case of diagnostic research is the market research service provided by Champ Consulting for a clothing brand. The clothing brand wants to increase its popularity and influence among young consumers in order to increase its market share and profits. Through in-depth interviews and focus group discussions with target consumers, Champu Consulting provided the following analysis and explanation for the clothing brand:

-The demand and preference of the target consumer for clothing, including the demand and preference of the target consumer for the function, quality, style and price of the clothing, as well as the motivation and influence of the target consumer on the purchase, use, evaluation and recommend of the clothing.

-The target consumer's cognition and attitude towards the clothing brand, including the target consumer's awareness, recognition, impression, preference, loyalty, etc. of the clothing brand, as well as the target consumer's cognition and attitude towards the image, value and personality of the clothing brand.

-The target consumer's evaluation and suggestions on the clothing brand, including the target consumer's advantages and disadvantages, satisfaction and dissatisfaction, expectations and suggestions on the clothing brand, as well as the target consumer's opinions and suggestions on the improvement and innovation of the clothing brand.

These analyses and explanations provide the clothing brand with the deep-seated reasons and mechanisms of consumers and the market, and provide the basis and guidance for its popularity and influence.

3. Predictive research

Predictive research refers to the establishment and use of consumer-related data and information models and methods to predict consumer needs, preferences, behavior and satisfaction, as well as market opportunities and threats of research. The main purpose of predictive research is to foresee future trends and changes in consumers and the market, and to provide reference and suggestions for subsequent planning and decision-making.

The advantages of predictive research are:

-Predictive research can provide consumers and the future of the market situation, can help companies grasp market opportunities and respond to market threats, improve the competitiveness and profitability of enterprises.

-Predictive research can be conducted through a variety of methods and techniques, including trend analysis, time series analysis, scenario analysis, simulation analysis, predictive market methods, etc., to select appropriate methods and techniques based on different data characteristics and forecast objectives.

-Predictive research can be conducted in both quantitative and qualitative ways, showing the possibilities and probabilities of consumers and markets from different angles and levels.

The limitations of predictive research are:

-Predictive research needs to rely on data and information provided by descriptive and diagnostic research, and if the data and information from descriptive and diagnostic research is inaccurate or incomplete, it will affect the quality and effectiveness of the predictions of predictive research.

-Predictive research can only provide the possible situation of consumers and the market, and cannot guarantee the actual situation of consumers and the market, because the future of consumers and the market is affected by many uncertain factors and variables, and there may be unexpected results and changes.

-Predictive research can only provide objective forecasts of consumers and markets, not subjective evaluations and recommendations of consumers and markets.

The main scenarios for predictive research are the following:

-Predictive research can be conducted when companies need to understand the future of the market, such as changes in market demand and supply, changes in market competition and cooperation, changes in market laws and policies, etc., in order to determine the direction and strategy of the market.

-When enterprises need to understand the future situation of consumers, such as changes in consumer demand and preference for products and services, changes in consumer purchase, use, evaluation, recommend and other behaviors, changes in consumer satisfaction and loyalty to the enterprise, etc., in order to determine the improvement and innovation of products and services, predictive research can be carried out.

-Predictive research can be conducted when an enterprise needs to know the future of the enterprise, such as sales, market share, profits, costs, risks, etc., to determine the objectives and plans of the enterprise.

A typical case of predictive research is the market research service provided by Champ Consulting for a restaurant chain. The restaurant chain wants to expand its domestic market coverage to increase its revenue and profits. Through trend analysis and scenario analysis of the domestic restaurant market, Champu Consulting provided the following forecasts for the restaurant chain:

-The future situation of the catering market, including the size, structure, distribution and changes of the catering market, as well as the opportunities and threats of the catering market, such as the growth rate of the catering market, the degree of competition, consumer demand, policies and regulations, etc.

-The future situation of consumers, including changes in consumer demand and preferences for food and beverage, as well as changes in consumer purchase, use, evaluation, recommend and other behaviors, such as consumer expectations and attitudes towards food and beverage quality, hygiene, service, price, etc.

-The future situation of the enterprise, including the sales volume, market share, profit, cost, risk, etc. of the enterprise, as well as the objectives and plans of the enterprise, such as the expansion strategy, marketing strategy, operation strategy, etc.

These forecasts provide the restaurant chain with the future of consumers and the market, and provide reference and suggestions for expanding its market coverage.

4. Normative research

Normative research refers to the research that evaluates and recommends consumer needs, preferences, behaviors and satisfaction, as well as market opportunities and threats through models and methods that evaluate and recommend consumer-related data and information. The main purpose of normative research is to provide the best situation for consumers and the market, and to provide standards and solutions for subsequent planning and decision-making.

The advantages of normative research are:

-Normative research can provide the best situation of consumers and the market, can help companies optimize market opportunities and respond to market threats, and improve their competitiveness and profitability.

-Normative research can be conducted through a variety of methods and techniques, including evaluation analysis, decision analysis, optimization analysis, planning analysis, etc., and appropriate methods and techniques can be selected according to different data characteristics and evaluation objectives.

-Normative research can be carried out in quantitative and qualitative ways, and can show the optimization and rationalization of consumers and markets from different angles and levels.

The limitations of normative research are:

-Normative research needs to rely on data and information provided by descriptive research, diagnostic research and predictive research, and if the data and information of descriptive research, diagnostic research and predictive research are inaccurate or incomplete, it will affect the quality and effectiveness of the evaluation and recommendations of normative research.

-Normative research can only provide the ideal situation of consumers and the market, and cannot guarantee the actual situation of consumers and the market, because the actual situation of consumers and the market is affected by a variety of uncontrollable factors and variables, and there may be evaluation Results and changes beyond recommendations.

-Normative research can only provide subjective evaluations and recommendations of consumers and markets, and cannot replace objective decisions of consumers and markets, because consumer and market decisions also need to consider a variety of other factors and conditions, such as resources, capabilities, Risks, etc.

The application scenarios of normative research mainly include the following:

-When an enterprise needs to understand the best situation of the market, such as the maximum demand and supply of the market, the best competition and cooperation of the market, the best laws and policies of the market, etc., to determine the best objectives and strategies of the market, normative research can be conducted.

-When enterprises need to understand the best situation of consumers, such as consumers' greatest demand and preference for products and services, consumers' best purchase, use, evaluation, recommend and other behaviors, consumers' highest satisfaction and loyalty to the enterprise, etc., in order to determine the best characteristics and advantages of products and services, normative research can be carried out.

-When an enterprise needs to know the best situation of the enterprise, such as the maximum sales volume, market share, profit, cost, risk, etc., to determine the best goals and plans of the enterprise, normative research can be conducted.

A typical case of normative research is the market research service provided by Champ Consulting for a travel company. The travel company wants to develop a new travel product to meet consumer demand and competitive pressures. Through evaluation analysis and decision analysis of target consumers, Champu Consulting provided the following evaluations and recommendations for the travel company:

-The evaluation and suggestions of target consumers on tourism products, including the evaluation and suggestions of target consumers, including the evaluation and suggestions of target consumers on the function, quality, price and service of tourism products, as well as the evaluation and suggestions of target consumers on the needs, expectations, preferences and choices of tourism products.

-Evaluation and suggestions of tourism products, including evaluation and suggestions on the advantages and disadvantages, satisfaction and dissatisfaction, improvement and innovation of tourism products, as well as evaluation and suggestions on the characteristics, advantages and positioning of tourism products.

These evaluations and recommendations provide the travel company with the best picture of consumers and the market, and provide standards and programs for its development of new tourism products.

Comparison and selection of four levels of 3. consumer research

The four levels of consumer research, namely descriptive research, diagnostic research, predictive research and normative research, each has its own characteristics, advantages and limitations, as well as its application scenarios and methods and techniques. The four levels of consumer research are not isolated, but interrelated and interdependent. Generally speaking, the process of consumer research starts with descriptive research, then diagnostic research, then predictive research, and finally normative research to form a complete cycle of consumer research. Of course, the choice and order of the level of consumer research should also be flexibly adjusted and adapted according to the specific purpose and scene, in order to achieve the best effect and efficiency.

The principles and methods of comparison and selection of the four levels of consumer research are as follows:

-Determine the level and sequence of consumer research according to the purpose and scope of consumer research. Generally speaking, if the purpose and scope of consumer research are extensive and basic, they can start with descriptive research. If the purpose and scope of consumer research are deep and specific, they can start with diagnostic research. If the purpose and scope of consumer research are more forward-looking and strategic, they can start with predictive research, if the purpose and scope of consumer research is optimized and standardized, it can start with normative research.

-According to the characteristics and quality of the data and information of consumer research, determine the level and order of consumer research. Generally speaking, if the data and information of consumer research are sufficient and accurate, you can start with high-level research. If the data and information of consumer research are lacking and uncertain, you can start with low-level research. If the data and information of consumer research are more complex and diverse, you can start with middle-level research.

-Determine the level and sequence of consumer research according to the usability and applicability of consumer research methods and technologies. Generally speaking, if the consumer research methods and technologies are more mature and effective, you can start with high-level research. If the consumer research methods and technologies are relatively novel and innovative, you can start with low-level research. If the consumer research methods and technologies are more diverse and flexible, you can start with middle-level research.

4.Conclusion

Consumer research is an important means of marketing, which can help companies understand consumer needs, preferences, behavior and satisfaction, so as to develop effective marketing strategies. This paper divides consumer research into four levels, namely descriptive research, diagnostic research, predictive research and normative research, and gives examples of the characteristics, advantages and limitations of each level, as well as how to choose and apply. This paper also introduces how to design and implement appropriate research programs according to different levels when providing consumer research services to customers, so as to help customers solve market problems and seize market opportunities.




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