Chapter 2

Marketing Research

Answers to Think it over (p.30) 1 The benefits that the company can gain from conducting marketing research are: The company can get relevant and useful information about the ice-cream market in Hong Kong. It can first estimate how large and competitive the ice-cream market in Hong Kong is. It can then identify market opportunities through analysis of the information acquired. The company can understand consumers preferences and consumption habits through the research. It can then develop and implement appropriate market strategies through analysing the data collected from the research. By taking appropriate marketing actions (strategies), the company can eventually gain market share and reap profits. 2 The information the company would like to get from Hong Kong ice-cream consumers includes: Frequency of ice-cream consumption Occasion for ice-cream consumption Average spending on ice-cream per a specified period (e.g., per week)

Usual place to purchase ice-cream (e.g., supermarket, convenience store, ice-cream specialty shop) Consumers preference about ice-cream flavours Consumers attitude towards the existing ice-cream brands Consumers acceptable price range for ice-cream products

To make the decision properly, the company needs to consider the estimated benefits derived from the information collected in the marketing research. The company should conduct the marketing research if the estimated benefits are greater than the estimated costs even if the latter is more than HK$200,000. Teachers guide In practice, HK$200,000 is generally not considered a very large amount to do this kind of research. Moreover, entering a new market is a major decision that could lead to a substantial corporate gain or loss. On this basis, it is likely that the estimated benefits of conducting the research will be greater than the estimated costs incurred (though the costs may be higher than the originally budgeted HK$200,000). Hence, the company should proceed with the marketing research.

p.31 Additional information Some large companies have their own research departments. Others hire outside research specialists to conduct marketing research studies. Sometimes, companies simply purchase data collected by outside firms to aid them in making marketing decisions. Additional information More specifically, marketing research consists of all the activities that enable a company to obtain the information it needs to make decisions regarding its environment, its marketing mix, and its existing or potential customers. It is the development, interpretation, and communication of decision-oriented information to be used in all phases of the marketing process. i.e., planning, organising, implementing and controlling.

p.34 Check Your Progress Q1 The characteristics of marketing research are as follows: It is systematic. Q2 It is objective. It can help marketers make decisions.

If marketing research is not conducted objectively, the information collected will not be reliable and accurate. With unreliable and inaccurate information, the company will make incorrect marketing decisions. Consequently, it will suffer a loss. Marketing research can aid marketing managers at HSBC as follows:

Q3

Find out to what extent customers are satisfied with its current products and services. Based on this information, the bank can fine-tune its existing marketing strategies. Find out what new financial products and services customers would like HSBC to offer. This information helps the bank realise emerging marketing opportunities and consequently develop promising new products and services. Identify the moves of its competitors. This information can help HSBC adjust its marketing strategies to counter strategies adopted by its competitors. For example, if HSBC has found out that other banks are offering higher deposit rates to attract customers, it may need to raise its deposit rates as well.

Additional information In general, the objective of conducting marketing research is to solve a problem. Very often, it is to better understand or define a problem or opportunity. But sometimes it is simply a matter of checking to see if there is a problem.
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p.35 Check Your Progress Q4 A marketing manager needs to know the following types of information for proper marketing planning: The characteristics of people buying the companys products Prospects of the firms existing markets The potential of other new markets Q5 A company needs to conduct marketing research before lowering the price of its product because it needs to understand how its customers may react to the price cut. For example, if the company lowers the price too much, its customers may perceive its products as having lower quality. In this case, they may buy less instead of more. Marketing research can help the company estimate its customers price sensitivity. For example, if customers only buy a little more after the company substantially cuts its prices, it would not be worthwhile for the company to do so. This is because the reduced price may eventually lower the companys total sales revenue. Q6 The marketing manager of Wellcome Supermarket may need the following information in order to control the companys marketing activities: Consumers degree of satisfaction with the products and services sold in its outlets Wellcomes performance, e.g., sales revenues, profits and market share Wellcomes corporate reputation among the general public, especially when compared with its major competitors, such as PARKnSHOP Teachers guide Remind students of the concept of SWOT analysis mentioned in Chapter 1.

p.37 Check Your Progress Q7 Amid the increasing global consciousness of environmental protection, marketing research conducted by Shell may help the company better realise how citizens (Shells customers or the general public) actually perceive its degree of eco-friendliness. For example, if marketing research discovers that most people perceive Shells petrol products as highly polluting, they may switch to other petrol suppliers and/or develop negative attitudes about the company. This would represent a major threat to Shell. Based on this identification, Shell can then take action to cope with the threat (e.g., offer cleaner petrol products to customers, donate money to environmental protection organisations). Q8 Marketing research can help generate information about the actual marketing performance of
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a company, e.g., actual sales revenues and profits and market share. Marketing managers can evaluate their marketing performance by comparing actual marketing performance with the target one. If the former is significantly lower than the latter, the marketer will need to take corrective action. Q9 Based on the research findings collected from consumers, Nokias marketers can design a mobile phone model that fits its target customers taste. For example, research findings may indicate that people of different ages have different preferences for mobile phones. These findings may reveal that teenagers like slim mobile phones with a lot of functions, whereas seniors like less expensive models with only some basic functions. Based on this information, Nokia can then develop and market different models to different age groups to better satisfy their respective requirements.

p.38 Teachers guide Highlight the differences between primary and secondary data. Recall the concept of primary and secondary data mentioned in Chapter 9 of NSS BAFS: Business Environment and Introduction to Management. Additional information A companys internal database is a good source of secondary data. Secondary data can usually be obtained more quickly and at a lower cost than primary data. Moreover, secondary sources can sometimes provide data an individual company cannot collect on its own (i.e., information that either is not directly available or would be too expensive to collect.). However, researchers may find secondary data useless as the needed information may not exist. Additional information One of the biggest mistakes made in marketing research is collecting primary data before finding out what can be learned from secondary data.

p.39 Teachers guide Highlight the advantages and disadvantages of each research method. Additional information The survey research method has several limitations: Errors may exist in the design of the survey questionnaire and in the interviewing process. Survey research can be very expensive and time-consuming.
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Respondents sometimes refuse to participate. Respondents sometimes cannot or will not give true answers.

p.41 Additional information Advances in information and communication technologies have resulted in a number of high-tech contact methods. Below are two commonly used contact methods: Computer-assisted telephone interviewing (CATI): Respondents sit at computers, read questions on the screen, and then type in their answers. Completely automated telephone surveys (CATS): Respondents are called by computers and asked prerecorded questions. They then enter their responses by voice or through the phones keypad. Activity 1 Ask students to (a) identify some electronic means of conducting survey research. (b) discuss the major advantages of online survey research over traditional survey research (i.e., (c) personal interviews, telephone interviews and mail). discuss the drawbacks of conducting marketing research via electronic means.

Answer: (b) The most obvious advantages are speed and low cost. Sample size has little influence on costs. Once the questionnaire is set, there is little or no cost difference in surveying 10 or 1,000 respondents on the Web. Moreover, an online survey can also reach hard-to-reach audiences (e.g., working mothers and other people who have a busy life, etc). As no interviewer is present, there will be no interview bias. (c) Some of the disadvantages may include: Lose respondents non-verbal cues Less useful for emotive issues Some respondents can be hampered by slow typing speeds. Respondents may encounter technical problems. The target audience may be too narrow. The marketing researcher may find it difficult to

identify and understand the sample. Cannot reach customers who do not have access to the Internet

Additional information The most important issue that arises in conducting survey research via electronic means is consumer privacy. Some consumers may fear that unethical researchers will use their email addresses and
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confidential responses gathered from the surveys to sell them products after the research is finished. Additional information Advantages and disadvantages of different survey research methods Advantages Personal

Disadvantages

Complicated questions can be asked Interviewers are allowed to explain ambiguous questions Good control over respondents identity and environment in conducting the survey

Difficult to supervise and control interviewers Responses may be biased by interviewers behaviour Most expensive Requires more time Limited to simple questions Low response rate Cannot ask a large number of questions

Telephone

Fast Reasonable control over respondents identity Easy to supervise interviewers and prevent cheating Relatively low cost No interviewers are required and hence no interviewer bias Low cost Can reach a large number of respondents Embarrassment is avoided when respondents answer sensitive questions No interviewers are required and hence no interviewer bias Low cost Questionnaires can reach respondents instantly

Mail

Limited to simple questions Little control over respondents identity Low response rate Long response time Higher chance for respondents to misunderstand questions Limited to simple questions Little control over respondents identity Higher chance for respondents to misunderstand questions Cannot reach people who do not have access to the Internet

Electronic

p.43 Additional information The main disadvantages of an in-depth interview are: 1 High operating costs: it requires experienced and skillful interviewers and takes time to conduct each interview. 2 In-depth interviews usually have only one interviewee at a time for deeper understanding of
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the response. Thus, researchers can only interview a small number of respondents. Additional information The strength of focus groups is found in the interaction of the participants. A comment by one person can often trigger thoughts and ideas in others, and the subsequent interaction can create valuable insights. Focus groups can be used to generate concepts and hypotheses which can then be tested on a large, representative sample of people. The main disadvantage of a focus group discussion is that the researcher has less control over a group than a single interviewee in an in-depth interview. Participants in a focus group discussion may sometimes spend time discussing something irrelevant to the topic in question. Marketing researchers usually use focus groups to obtain insights about: causes of product failure; ways to improve existing products; and consumer responses to new product ideas.

p.43 Additional information Observational research methods can obtain information that people are unwilling or unable to provide. In contrast, some things simply cannot be observed, e.g., feelings, attitudes, motives and private behaviour, etc. Long-term or infrequent behaviour is also difficult to observe. Owing to these limitations, researchers often use other data collection methods in addition to observational research methods.

p.44 Additional information There is a general misconception that only large businesses with a large budget can afford to conduct marketing research. In fact, small businesses can also obtain good marketing infomation simply by observing the operating environment. They can also conduct informal surveys using small convenience samples. Small scale surveys and focus groups are low cost ways to gather information from potential and existing customers. Most secondary data (statistics, demographics, etc.) are available in libraries or on the Internet and can be easily accessed by small businesses. To sum up, secondary data collection, observation, and surveys can be used effectively by small businesses with small budgets. Teachers can use more examples to illustrate how small businesses can make use of these marketing research tools to better understand their marketing situation and make better decisions.

p.45 Check Your Progress Q10 Primary data are data deliberately collected for a specific research problem or topic at hand. Secondary data are data that already exist and were previously collected for other purposes. The following table summarises the major differences between primary and secondary data. Primary data Collection purpose Collection process Collection cost Collection time Collected data For the research problem at hand Requires more effort High Long Highly relevant to the research problem Secondary data For research problems addressed in some previous research Rapid and easy Low Short May not be totally relevant

Q11 Three common sources of secondary data are: Government statistics, e.g., Hong Kong Monthly Digest of statistics published by the

Hong Kong Census and Statistics Department Research done by research agencies, e.g., bi-annual report published by The Nielsen Company Information published in newspapers, e.g., survey findings or news reported by newspapers

Q12 When the marketing researcher of a local supermarket wants to know how much time consumers usually spend shopping or to explore which paths consumers usually take when shopping in the supermarket, he may use an observational research method to collect the needed information. This is because shoppers may not remember accurately how much time they spend in a supermarket and which path they take. If the researcher uses survey research or other qualitative research methods, the answers collected may not be very accurate. It may be more accurate for the researcher to collect the information through observation. This method enables him to find out shoppers actual behaviour as it occurs. (Accept any other reasonable answers) Additional information In brief, a sample is a segment of the population selected to represent the population as a whole. Ideally, a sample should be representative so that the researcher can accurately gauge the thoughts and behaviours of the target population.

p.46 Teachers guide Draw students attention to the differences between probability sampling and non-probability sampling. Teachers guide The various ways of drawing samples have different costs, time limitations, accuracy and statistical properties. Which method is best depends on the needs of the research project. Teachers should emphasise that the right sampling technique often depends on the situation.

p.48 Additional information Compared with simple random sampling, the main disadvantage of systematic sampling is that the results may be misleading if there is periodicity in the population. For example, suppose a department store wants to measure one-year sales with systematic sampling and selects 52 days for the measurement. The population size would be 365 and the sample size 52. Hence, the sampling interval is 7 (365 12). If the first day selected by the department store is Sunday, then the remaining samples chosen would be Sunday as well. The sales measured with these samples would be overestimated, as the sales for a department store are often much higher on weekends than on weekdays.

p.50 Teachers guide Highlight the differences between stratified sampling and cluster sampling. Activity 2 Assume that a school is going to conduct a survey to find out how well students are satisfied with the extracurricular activities organised by the school. Ask students to (a) define the target population of the survey. (b) choose a suitable sampling technique for the survey. (c) give reasons to jusify their choice. (d) choose a survey research methodpersonal, telephone, mail or electronicfor the survey. They are needed to explain their answers.

Check Your Progress Q13 The sampling interval = 160/20 = 8

Q14 Stratified sampling involves dividing a population into several mutually exclusive groups (called strata) and then randomly selecting elements from each of these groups. Cluster sampling also involves dividing a population into several mutually exclusive groups (called clusters). However, this sampling method only randomly selects a few (not all) groups for study.

p.53 Check Your Progress Q15 The target population is: (a) All of the current consumers of the fast food chain (b) Hong Kong people who do not have the banks credit cards (c) All smokers in Hong Kong (d) Agents working at the Mid-Level branch and the Tuen Mun branch (e) Shoppers who visit the supermarket chains outlets in Hong Kong more than twice per week Q16 Convenience sampling is one of the non-probability sampling methods. For this sampling, the chance for the inclusion of a particular sample element is not known. Simple random sampling is one of the probability sampling methods. In this sampling, the chance for the inclusion of a particular sample element is known. Moreover, all the elements available for selection have an equal chance of being selected.

p.54 Additional information Marketing researchers should not try to overwhelm marketing managers with numbers and fancy statistical techniques. They should present important findings that are useful for the marketing managers in making decisions. Activity 3 Search a market research report on the Internet and ask students to discuss whether the report can help a marketing manager better understand problems and make better marketing decisions. Evaluate the market research report using the criteria mentioned in the textbook.

p.56 Check Your Progress

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Q17 (a) (b)

Mainly Hong Kong people who make daily purchases of various kinds. Mainly executives or managers of the company.

Q18 The criteria used to evaluate a market research report are: whether the report considers the background of the readers; whether the report is objective; whether the report is selective; whether the report is concise and clear; whether the report avoids technical terms; and

whether the report uses visual aids.

p. 58 Answers to Discussion questions 1 A company can gain from marketing research as: It provides information about what is happening in a companys operating environment. This allows the company to do a SWOT analysis to find out what opportunities and threats the company faces and to take precautionary actions.

It provides useful information about the characteristics of each market segment, which helps a company choose the most suitable segment in which to market its products. Companies can then identify new consumer segments and develop strategies to reach them. Companies can design appropriate marketing strategies based on the research findings. For example, companies can develop new products which suit the needs of their potential customers. It helps generate information about the actual marketing performance of a company. This information helps the marketing manager control marketing activities more effectively.

The U-path process involves the following steps: Identify a clients information needs Develop appropriate questions in order to generate the required information Put the questions into a questionnaire Conduct the survey with the developed questionnaire Analyse the data collected from the survey

Come up with conclusions and recommendations for the client based on the findings from data analysis

The approach looks logical and starts with understanding the (information) needs of the client. This market-oriented approach in conducting marketing research enables Nielsen to come up with a market research report that best satisfies the clients requirements.
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Advantages and disadvantages of using an Internet/on-line survey and a face-to-face interview are summarised as follows: Method Advantages Good control over respondents identity Good control over the physical environment for doing the survey Internet/on-line survey More complicated questions can be asked Low cost High speed No interviewer bias No problems in controlling interviewers (as no interviewer is needed) May reach a hard-to-reach audience (e.g., working mothers and other people who lead a busy life) Limited to simple questions Low control over respondents identity Higher chance for respondents to misunderstand questions Cannot reach people who do not have access to the Internet Disadvantages Low control of interviewers Subject to interviewer bias Most expensive

Face-to-face interview

These standards can ensure the provision of high quality marketing information to clients, so that Nielsen can maintain its leading position in the marketing research industry. In particular, these standards help the staff at Nielsen consider the following issues: Those who represent the target population of the marketing research How large the sample size should be given cost constraints The accuracy and clarity of the questions The accuracy of collecting the data The accuracy of data entry The accuracy of data analysis and interpretation The proper way to report the findings All of the above are essential for generating reliable and valid information to satisfy clients needs. If any of the above issues are not dealt with properly, the information revealed in the market research report will not be accurate or may turn out to be useless to the clients.

Assessment
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Short questions 1 The steps for conducting marketing research are: 1 specify the needed information 2 design the data collection method 3 implement the actual data collection 4 analyse data 5 communicate the findings Marketing research can help a bank to: Identify and evaluate market opportunities and threats. For example, if the findings from its marketing research show that Hong Kongs property market is booming, the bank may need to expand its mortgage business to cater for the increasing number of home buyers (mortgagors).

Analyse market segments and select target markets. For example, if the findings from its marketing research indicate that wealthier bank customers over the age of 50 prefer less risky financial products, the bank may select them as its target consumers for more secured products (e.g., long-term time deposits or long-term bonds).

Formulate and implement marketing strategies to satisfy consumer needs. For example, findings from marketing research may reveal that bank customers prefer more computing terminals to check market-related information at the banks lobby. Consequently, the bank may need to redesign its lobby and install more of these terminals to cater for their needs. Evaluate marketing performance. Marketing research can also help the bank generate information about its actual performance (e.g., sales revenue and products, amount of loans made, amount of deposits attracted, etc.). Consequently, the bank can compare this actual performance with its planned or target performance. In case the actual performance is found to be significantly lower than the target one, the bank can take corrective action.

Major differences between probability and non-probability sampling techniques are listed below: Factors Nature of research Sampling frame Probability sampling Can make more definite conclusions based on the findings Need
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Non-probability sampling Findings mainly for exploring more insights about the research problem Do not need

Errors associated with the selection process Are samples representative? Ease of operation (Any three of the above) 4

Can be estimated More representative Relatively difficult

Cannot be estimated Less representative Easier

Secondary data are data that already exist and were collected for purposes other than for a specific research problem at hand. In this context, scan data represent a major source of secondary data for a supermarket. Scanners were originally used to speed up checkouts and reduce errors in supermarkets. Every time a shopper checks out, the products chosen are scanned by the cashier and all the relevant product/transaction details are stored electronically. The data generated by this scanning process (i.e., scan data) can help the supermarket better understand the shopping patterns and habits of its shoppers. After carefully analysing the scan data, the supermarket will find out: 1 which product items or brands are most preferred by its shoppers; 2 3 4 the average purchasing amount of each shopper; the average number of items bought by each shopper; and how attractive discounted items are to its shoppers, etc.

All of this information can help the supermarket fine-tune its marketing strategies (e.g., what products/brands to offer, determine the discount rate for products, etc.). 5 Major guidelines for preparing a market research report are: Consider the background of the readers. Marketing researchers need to consider who their

readers are so that they can prepare a report that is easily understood by them. Be objective in presenting the materials in the report. Marketing researchers should not distort the results to please readers. Be selective when preparing the report to avoid overloading readers with unnecessary details. Be concise and clear. Marketing researchers should use simple words as much as possible. Avoid using technical terms and jargon, especially if readers know little about the research topic.

Use visual aids. Marketing researchers should supplement key information in the text with tables and figures to facilitate understanding. (Any three of the above)

If Next Magazine simply wants to find out the degree to which readers are satisfied with its publication, the questionnaire would not be lengthy and the questions therein should also be
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simple. Hence, in order to lower administrative costs and to solicit views from a relatively large number of readers within a short time, telephone interviews may be an appropriate choice. This method also enables more personalised and interactive communication between interviewers and interviewees (unlike mail or electronic). It is also less expensive and time consuming than a personal interview. 7 Assume a bank wants to gather more insights on why some people do not want to apply for its credit card. Given the exploratory nature of this research, a focus group discussion with a handful of non-credit card holders may serve the purpose. (Accept any other reasonable answers) 8 A target population is the population which a researcher is interested in studying. A sample is a subset of a target population.

Essay Questions 9 To achieve the stated research objective, McDonalds can employ the survey research method since it enables the collection of some quantifiable views from a relatively large number of respondents (consumers). To enhance the sample representativeness of this survey, McDonalds needs to consider the following issues:

Define the target population properly. As a sample is a subset of the target population, McDonalds must first correctly define what the target population is in order to achieve sample representativeness. In this case, the target population should be all of McDonalds customers. Determine the number of people to be surveyed: McDonalds must consider how large the sample should be. This involves a balance between reliability and cost efficiency. Adopt an appropriate sampling technique. McDonalds can adopt a probability sampling technique because this technique enables the company to estimate the errors associated with the sample selection process. If a relevant sampling frame is available (e.g., compiled based on the telephone directory of all Hong Kong people, a screening question may be incorporated at the beginning of the questionnaire to check if the potential respondents are really McDonald's customers), the company may consider using simple random sampling or systematic sampling to select respondents.

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If KFC wants to find out how well its customers are satisfied with its products, the survey research method may be appropriate for collecting the needed primary data. The present research objective focuses on determining the average satisfaction level of KFCs customers.
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The research requires quantifying these customers degree of satisfaction. Thus, qualitative research methods (e.g., in-depth interview, focus group discussion) may not be appropriate because these methods often collect views from a much smaller number of respondents. In order to ensure that the findings are representative, interviewing a larger number of consumers is preferred. 11 Simple random sampling appears to be most appropriate for PCCW to find out how well its customers are satisfied with its services. This is because PCCW already possesses a full list of all its customers telephone numbers. Therefore, it may use this as a sampling frame for conducting random dialing to collect views from its customers. Given that a computer-aided telephone dialing system is available at PCCW, simple random sampling should represent a cost-effective way to achieve the stated research objective. Teachers guide Stratified and cluster sampling methods are not preferred in this case due to their higher administrative costs. There also appears to be no specific grounds for the target population to be divided into strata or clusters before undertaking the sampling. Systematic sampling may be an alternative to simple random sampling. However, in terms of the degree of randomness, simple random sampling may be more appropriate than systematic sampling as it does not involve selecting respondents according to an artificial interval. Given that a computer-aided telephone dialing system and a comprehensive sampling frame (telephone directory) are readily available at PCCW, it is advisable for the company to use simple random sampling to maximise the degree of randomness. 12 The major objectives for an international computer manufacturer such as IBM to conduct marketing research may include: To do proper marketing planning by finding out the characteristics of people buying its computing products; the prospects of its existing markets (e.g., laptop computers, desktop computers, other computing systems) and the potential for other new markets (e.g., other multimedia telecommunications products) To fine-tune existing marketing strategies by better understanding consumers responses to its products, packaging design, existing price levels, price changes and the companys various promotional tools. To properly control marketing activities by determining consumers degree of satisfaction with its products, performance of its products and its reputation among the general public. Case Analysis

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(a)

I may use the observational research method to collect price information about major competing products. As the respondents (i.e., soya milk buyers) may not remember all
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the price information correctly, other primary data collection methods such as in-depth interviews, survey research and focus groups may not be appropriate.The company can simply send some research staff to major distributors (e.g., supermarkets) to record the prices of major competing products. This appears to be the most objective primary data collection method to achieve the stated objective. (b) I may use the survey research method to determine what consumers believe is an acceptable price increase percentage. When compared with in-depth interviews and focus groups, survey research is expected to generate a more representative view from consumers. This is because survey research usually covers more respondents than in-depth interviews or focus groups. Other things being equal, a larger sample size (as in the case of survey research) will generate more representative findings. Survey research also enables the company to quantify the responses of the respondents and thus provides the company with more concrete information (such as the acceptable %). (c) As for collecting price information about competing products, the company can use probability sampling to conduct observational research. This is because it would not be too difficult for the company to compile a list that contains all of its major distributors (e.g., supermarkets) in Hong Kong. With this list (sampling frame), the company can then select a number of distributors through simple random sampling (a probability sampling technique) to do the observation. As for collecting information concerning the acceptable price increase percentage, the company may not be able to employ probability sampling for the survey. This is because the company cannot have a suitable sampling frame that lists all the elements of the target population (i.e., all the companys consumers). Without this sampling frame, it is impossible for the company to employ probability sampling. 14 (a) I may use the survey research method to find out what existing customers think of our current products. When compared with in-depth interviews and focus groups, survey research is expected to generate a more representative view from consumers. This is because survey research methods usually cover more respondents than in-depth interviews or focus groups. Other things being equal, a larger sample size (as in the case of a survey) will generate more representative findings. Survey research also enables the company to quantify the thinking of existing customers and thus provides the company with more concrete information. Or I may use a focus group to find out what existing customers think of our current
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products. If the company focuses on gathering qualitative insights about what its existing customers think of its current products, focus groups may be used. In this way, the company can gain more insight and understanding about consumer attitudes towards its products from a relatively small number of people. The key is whether the company already has some ideas about what aspects of consumers perceptions it wants to find out about (e.g., attitudes, satisfaction). If it has no idea about what consumers think of its products, focus groups may be more suitable for exploratory purposes. (b) I may use a focus group in this case. I can distribute the new formula to the focus group members (e.g., 10) to try it out first. After they have tried the new formula (e.g., one week later), they will be invited to attend a focus group to discuss their views on the new formula. As consumers need to use the new formula before giving their views, it does not seem economical for me to employ the survey research method. This is because the survey research method involves distributing the formula to a large number of survey respondents. It would also be administratively costly to contact such a large number of respondents again (e.g., after one week) to collect their views. Since our company does not aim to collect views from a few experts, in-depth interviews also seem inappropriate. (c) (d) The target population includes all Hong Kong people who use toothpaste. I may use the observational research method. This method enables our company to observe the actual purchase behaviour of our consumers in a real life setting. The information collected should be more objective and accurate. Other primary data collection methods (e.g., survey research, in-depth interview, focus group) may not be able to collect accurate information as the respondents (i.e., consumers) may not remember their shopping behaviour correctly. Moreover, some of their shopping behaviour may be performed unconsciously or out of impulse even without consumers themselves noticing. 15 (a) (b) Sampling interval = 20 4 =5 The second sample element is the seventh (2 + 5) salesperson, i.e., G; the third sample element is the twelfth (7 + 5) salesperson, i.e., L; the fourth sample element is the seventeenth (12 + 5) salesperson, i.e., Q. (c) The mean of the four sample elements is: ($82,500 + $93,100 + $100,850 + $121,500) 4 = $99,487.5
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(d)

Yes, the sales team met the sales target. The average sales revenue of the four sampled salespersons, $99,487.5, was greater than the average sales target, $95,000, set by the company.

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