Critically Evaluate Consumer Research

Following his gift of $25 million to Deerfield Academy in Massachusetts, industrialist David Koch wanted to explain something:

“You might ask: How does David Koch happen to have the wealth to be so generous? Well, let me tell you a story. It all started when I was a little boy. One day, my father gave me an apple. I soon sold it for five dollars and bought two apples and sold them for ten. Then I bought four apples and sold them for twenty. Well, this went on day after day, week after week, month after month, year after year, until my father died. And left me three hundred million dollars.”

     That story, which appeared in a New Yorker article about Mr. Koch, popped into my mind as I’ve been combing through consumer behavior research findings. Mr. Koch’s ample wealth is not due just to his shrewd sale of apples and reinvestment of the proceeds. This parallels how in many consumer behavior studies, the researchers fail to take account of what might be the real causes of their findings. Those studies are not a good basis for tactics I can test out in real-world retailing and, if they pass the test, suggest to you in RIMtailing blog posts.
     Among the shortfalls are these:

• The research is a survey, not an experiment. Even when the survey is conducted properly, it’s difficult to draw cause-and-effect conclusions from survey findings. Statistical techniques like structural equation modeling can help.
• Study participants are not sufficiently representative of your target populations. If all the study participants were university students, how broadly can the findings be applied? If the study was conducted in a collectivist culture, will people from individualistic cultures respond in similar ways?
• The findings are outdated. Most studies I use are from peer-reviewed journals. This makes for good quality control. However, it also makes for a delay in the findings seeing the light of day. The world of retailing is one of rapid changes. Do the findings still apply?

     If there’s a research finding that intrigues you, I encourage you to critically evaluate the actual study for yourself. E-mail me at RIMtailing@gmail.com with the date of my posting. I’ll reply to you with the literature reference and/or URL so you can look it up.

Click below for more:
Use Consumer Attitude Survey Findings
Call On Structural Equation Modeling
Use Cluster Analysis on Customer Data
Ask Customers Their Opinions Promptly
Lead Your Customers Through Changes Gradually