Careers Business Ownership What Is Cognitive Theory in Market Research? Definition & Examples of Cognitive Theory in Market Research Share PINTEREST Email Print Hinterhaus Productions / Getty Images Business Ownership Operations & Success Market Research Sustainable Businesses Supply Chain Management Operations & Technology Marketing Business Law & Taxes Business Insurance Business Finance Accounting Industries Becoming an Owner By Gigi DeVault Gigi DeVault LinkedIn Twitter University of Washington San Jose State University University of California, San Diego Gigi DeVault is a former writer for The Balance Small Business and an experienced market researcher in client satisfaction and business proposals. Learn about our Editorial Process Updated on 10/10/20 Cognitive theory in market research reveals what consumers think during the process as they research a product through many channels and prepare to buy it. What Is Cognitive Theory in Market Research? Applying cognitive theory to qualitative research can make it easier for research participants to provide deeper and more relevant answers than simple survey questions. Where direct questioning often results in superficial yes or no answers, the application of cognitive theory to qualitative research can generate a more natural conversation with consumers. Qualitative research can be adapted to suit many fields, including consumer purchase behavior. It is a natural fit for marketers and advertisers who want to understand what drives consumers to purchase a brand or product. Marketers who have a deep understanding of consumer motivations and experience can build ad campaigns and products that meet real consumer needs by solving their problems. How Cognitive Theory in Market Research Works Consumers move through a number of stages on the way to making a purchase. Buyers are said to move through a marketing funnel, which represents the commitment to making a purchase. It is easy to become focused on the movement of consumers through this funnel without really understanding what drives this movement from one stage to the next. Two theories basic to a cognitive approach are perception theory and identity theory, and both are grounded in phenomenology. Phenomenology is the study of the conscious experience that people have with regard to their environments. The focus of phenomenology is the first-person experience. In qualitative market research, phenomenology is the basis for focus groups, consumer journals, and interviews. In research that is grounded in phenomenological philosophy, participants give accounts of their experiences, and in doing so, relay information that only they have. Types of Cognitive Theory in Market Research Perception theory draws from phenomenology and neuroscience. Perception theorists are interested in how the world is perceived and conceptually organized by the human brain. When market researchers use perception theory as the basis for their inquiries, they may ask research participants to reflect and communicate about the natural steps of information processing. These steps are attention, rehearsal, retrieval, and encoding. Standard market research using surveys may not readily tap into consumers' often unconscious thoughts and emotions. But they may be able to delve into their deeper unconscious thinking if asked more open-ended questions, such as, "What did you first notice about the product?" or "With what did you associate the product?" Identity Theory Identity theory is focused on how people define themselves and where they place themselves in the environment. Identity theorists are interested in the choices, aspirations, concerns, and needs of individuals. Identity theory has practical applications for the construction of consumer profiles and is the foundation for market segmentation. People tend to not be very good at analyzing their behaviors or revealing the reasons behind their motivation. It means that presenting research questions to participants within an identity framework tends to elicit more nuanced, honest and thoughtful responses. How People Process Information Only about seven bits of information can be stored in our short-term memory at any given time. The human brain has to rehearse information to keep it in short-term memory. When a bit of information has been sufficiently rehearsed, the bit of information is moved to long-term memory, where it can be retrieved without continuous rehearsal. Bits of information that are not rehearsed continuously to enable them to stay in short-term memory, or not rehearsed sufficiently to move to long-term memory, are forgotten. To make use of bits of information in long-term memory, those bits of information have to be moved back to the working memory so they can be retrieved. Most of the time, this sort of information processing occurs without our explicit conscious effort. It is only when information is inordinately complex or foreign to our typical experiences that we need to exert effort to memorize bits of information. Because these processes are so automatic, participants in market research may not readily tap into their often unconscious thoughts and emotions. Key Takeaways Cognitive theory is a way to conduct market research that uncovers deeper insights into consumer thinking.Through techniques such as focus groups and open-ended questions, consumers share their first-person experiences.Having insight into what makes shoppers buy gives marketers a way to create ads and products that better meet real consumer needs.Many people are unaware of their unconscious motivations.