Editing Consumer behaviour (section)

== Research methods used ==
{{See also|Advertising research}}

To gain insights into consumer behaviour, researchers uses the standard battery of [[market research]] methods such as [[Survey data collection|surveys]], [[Interview (research)|depth interviews]], and [[focus group]]s. Increasingly, researchers are turning to newer methodologies and technologies in an effort to seek deeper understandings of why consumers behave in certain ways. These newer methods include ''[[Ethnography|ethnographic research]]'' (also known as participant observation) and ''[[neuroscience]]'' as well as experimental lab designs. In addition, researchers often turn to separate disciplines for insights with potential to inform the study of consumer behaviour. For instance, [[behavioural economics]] is adding new insights into certain aspects of consumer behaviour.

=== Ethnographic research ===
[[File:Tetra Pak FamilyPortfolio NaturesPaperDesign2010.jpg|thumb|Product usage studies are used to improve packaging design.]]

Ethnographic research or [[ethnography]] has its origins in [[anthropology]]. However, marketers use ethnographic research to study the consumer in terms of cultural trends, lifestyle factors, attitudes and the way that social context influences product selection, consumption, and usage.  Ethnographic research, also called ''participant observation'', attempts to study consumer behaviour in natural settings rather than in artificial environment such as labs. Different types of ethnographic research are used in marketing including;<ref>Mariampolski, H., ''Ethnography for Marketers: A Guide to Consumer Immersion,'' Sage, 2006, pp 43-38</ref>
* Observed product usage: observing regular product usage at home or work, to gain insights into how products are opened, prepared, consumed, stored, disposed etc. to gain insights into the usefulness of packaging, labelling and general usage
* Day-in-the-life studies: extended visits during product usage situations to gain insights into norms and consumer expectations
* Accompanied purchase or shop-alongs: researcher accompanies a shopper on a purchase expedition to gain insights into consumer responses to merchandising and other sales tactics
* [[Cultural studies]]: similar to traditional ethnography; extended stays with a group or tribe with a view to uncovering the fundamental rules and conventions that govern behaviour
* Guerilla ethnography: random observations in public settings to help establish research questions or to gain quick insights into specific behaviours
* [[Mystery shopping]]: observations in the retail context with a view to gaining insights into the customer's service experience
* [[Multimethodology|Multiple methodologies]]: combining ethnographic research methods with conventional research techniques with a view to triangulating results

[[Coolhunting|Trendspotters]] such as [[Faith Popcorn]]'s BrainReserve make extensive use of ethnographic research to spot emergent trends.<ref>Brain Reserve, Trend Bank Website, http://www.faithpopcorn.com/trendbank {{Webarchive|url=https://web.archive.org/web/20161024085357/http://www.faithpopcorn.com/trendbank |date=2016-10-24 }}</ref>

=== Consumer neuroscience ===
[[File:EEG Neurotech.jpg|thumb|left|Neuromarketing uses sophisticated biometric sensors such as EEG to study consumer responses to specific stimuli.]]

[[Consumer neuroscience]] (also known as [[neuromarketing]]) refers to the commercial use of [[neuroscience]] when applied to the investigation of marketing problems and consumer research. Some researchers have argued that the term ''consumer neuroscience'' is preferred over neuromarketing or other alternatives.<ref>Ramsøym T.Z., ''Introduction to Neuromarketing and Consumer Neuroscience'', Denmark, Neurons Inc, 2015, p.3</ref><ref>Hubert, M. & Kenning, P. (2008): A Current overview of Consumer Neuroscience, In: Journal of Consumer Behaviour, Nr. 7(4-5), S. 272–292.</ref>

Consumer neuroscience employs sophisticated bio-metric sensors, such as electroencephalography (EEG), functional magnetic resonance imaging (fMRI) and [[eye tracking]],<ref>Choi, D.Y., Hahn, M.H. and Lee, K.C., "A Comparison of Buying Decisions by Product Involvement: An Eye Tracking Study", in ''Intelligent Information and Database Systems,'' in 4th Asian ACIIDS Conference (Part 3), Jeng-Shyang Pan, Shyi-Ming Chen, [[Ngoc Thanh Nguyen]] (eds), March 2012, pp 37-46</ref> to study the ways that consumers respond to specific stimuli such as product displays, brands, packaging information, or other marketing signals.  Such tests reveal stimuli that trigger the brain's pleasure centre.

Consumer neuroscience has become a mainstream component of consumer research methods. International market research company Nielsen Research has recently added neuromarketing to its services by acquiring Innerscope, a company specialising in neuromarketing research thus enabling Nielsen to add neuromarketing research to the suite of services available to clients.<ref>Dooley, R., "Nielsen Doubles Down on Neuro", ''Forbes Magazine'', 3 June 2015 Online: https://www.forbes.com/sites/rogerdooley/2015/06/03/nielsen-doubles-down-on-neuro/</ref>

Consumer neuroscience research has led to some surprising findings:

;Framing price or value: For example, one study reported on a magazine subscription where potential subscribers were offered two options: an online subscription for $59, or a combined online and print for $129 a year.  Most people chose the online only option. However, when a third option was introduced: print only for $129 (i.e. ''the decoy''), the online and print option seemed like better value and a significant number of people switched to that option. In other words, the ''decoy'' price assists in framing value.<ref>Ariely, Dan, ''Predictably Irrational,'' NY, Harper Collins, 2009; Shiv, B., Carmon, Z.  and Ariely, D., "Placebo Effects of Marketing Actions: Consumers May Get What They Pay For", ''Journal of Marketing Research,'' Vol. 42, No. 4, 2005, pp. 383-393https://doi.org/10.1509/jmkr.2005.42.4.383</ref> Marketers use a variety of methods to ''frame value'': e.g. quote monthly payment options rather than a single all-inclusive price.
;Choice fatigue: Research by Sheena Iyengar experimented with the number of gourmet jams on display. When consumers were faced with a large number of alternatives (24 jams), 60% of consumers stopped and looked but only a few (3%) actually made a purchase. However, when consumers faced with fewer brands (6 jams), were more likely to make a purchase with 30% going on to buy something. Similar results have been observed in other categories. The findings suggest that while consumers appreciate being given some choice, the process of making a selection is painful and can lead to choice fatigue.<ref>Dooley, R., "More Choices, Fewer Sales", ''Neuroscience Marketing Blog'', Online: http://www.neurosciencemarketing.com/blog/articles/more-choices-fewer-sales.htm</ref> An issue for marketers and retailers is to determine the 'sweet spot' where consumers are given sufficient choice to satisfy their desire for variety, but not become overwhelmed by it.
;Decision paralysis: One study examined the wording used to solicit philanthropic donations. Consumers were exposed to variants in the advertising copy execution: "Would you be willing to help by giving a donation?" and "Would you be willing to help by giving a donation? Every penny will help." Those given the second option were almost twice as likely to donate. The researchers concluded that people are more likely to take action when given parameters. By clarifying that "even a penny" could make a difference, the second line provides guidance and makes the request more achievable.<ref>Ciotti, G. "Analysis Paralysis and Consumer Behaviour" Online: https://www.helpscout.net/consumer-behavior/</ref> For marketers, the implication is that when asking consumers to take an action, specifying a small step helps to break through the action paralysis. This finding also suggests that even small differences in advertising copy can lead to improved outcomes. Action instructions will make the advertisement more purposeful.