Vous êtes sur la page 1sur 21

Marketing Research

Unit 1

Unit 1

Marketing Research Dynamics

Structure:
1.1 Introduction
Objectives
1.2 Meaning of Research
1.3 Research Characteristics
1.4 Various Types of Research
1.5 Marketing Research and its Management
1.6 Nature and Scope of Marketing Research
1.7 Marketing Research in the 21st Century (Indian Scenario)
1.8 Marketing Research: Value and Cost of Information
1.9 Summary
1.10 Glossary
1.11 Terminal Questions
1.12 Answers
1.13 Case Study

1.1 Introduction
With the onset of globalisation, privatisation and liberalisation, research,
marketing research has started playing a central role in producing and
making real the dream of a globalised economy.
You can see the changes occurring in all the aspects of business almost on
the daily basis. These changes are occurring at different rates in different
parts of the world. Against this backdrop, marketing researchers are being
challenged to conduct research that is of the highest possible quality, as
quickly as possible, in multiple diverse settings.
Marketing research is being used extensively as an applied research to
describe, explore, analyse and to evaluate the problems related to
marketing of goods and services.
Marketing researchers must find creative ways to harness the new
technologies to facilitate the research and enhance its value to clients. At
the same time, research organisations must begin to develop the capability
to conduct marketing research simultaneously in the developed and the
developing world.
Sikkim Manipal University

Page No. 1

Marketing Research

Unit 1

In this unit, you will study the nature of research and its types, the role of
information systems, marketing research and the practical implications of
research in the field of marketing.
Objectives:
After studying this unit, you should be able to:

define research

state the characteristics of research

identify various types of research

describe marketing research and its management

explain the nature and scope of marketing research

assess the role of marketing research in the 21st century

describe the value and cost of information

1.2 Meaning of Research


Research is a systematic and intensive study undertaken to:

Address the fundamental questions or

Find a solution to the existing problems.

It is an art of scientific investigation. It is also a systematic design collection


analysis and reporting of the findings and solutions for the existing problems
of a company.
According to the Chambers 20th Century Dictionary, research is
Systematic investigation towards increasing the sum of knowledge."
According to the Concise Oxford Dictionary, research is
"An endeavour to discover new or collate old facts etc. by the scientific study
of a subject or by a course of critical investigation."
The term "research" can also be used to describe a number of similar and
often overlapping activities involving a search for information.
For example, Each of the following activities involves some kind of research:

Find the population of each country in Asia.

Find the total (in rupees) of Indian investment in Africa in 2011.

Sikkim Manipal University

Page No. 2

Marketing Research

Unit 1

Find out what is known by and large about a reasonably specific topic.
"What is the history of the computers?"

Gather evidence to determine whether erratic behaviour of kids is


related in any way to watching violent cartoons.

Case let
Kelloggs Frosties
During 2000, Kellogg wanted to revamp the image of its breakfast cereal
Frosties and, more particularly, brand icon Tony the tiger. Tony has
been around since 1956, and according to Advertising Age magazine is
one of the top ten icons of the twentieth century. Kellogg wanted to
make sure that Tony was not tired and jaded but a fresh proposition to
children. Their research involved a series of group discussions with 7 to
10 year olds. This involved showing them different ideas and concepts,
putting together different images and advertisements. The researchers
then observed the childrens reactions, to see what made them laugh
and got further input, using picture-led questionnaires. The research
revealed that there was still a huge affection for Tony but that they
wanted him to be a bit sharper and witty while retaining his fun
character. The findings also pointed to a repositioning for Tony, away
from his traditional sports coach image to that of an action hero.
Source: Malhotra, N. and D. Birks. (2003). Marketing Research: An Applied
Approach. London: Prentice Hall.

Self Assessment Questions


1. Research will be undertaken only if there is a problem or question.
(True/False)
2. Research is an art of ___________ investigation.

1.3 Research Characteristics


Research has following characteristics:

originates with a question or problem

requires the clear articulation of a goal

often divides the main problem into sub- problems

guided by specific problem, question, or hypothesis

Sikkim Manipal University

Page No. 3

Marketing Research

Unit 1

accepts certain critical assumptions

follows a specific plan or procedure

requires systematic collection and interpretation of data

cyclical in nature; meaning that the answers we get from research often
leads to more questions, which leads to more research for answers and
this process continues.

There are few terms that we commonly associate with research and the
success of any research depends on these terms. These terms indicate how
free research is from biases and prejudices and whether there are any
subjective errors. These terms are reliability, validity, accuracy, credibility
and empirical nature of research. Let us see what these terms mean:

Reliability
It is a subjective term that cannot be measured precisely. We can say
that reliability refers to the repeatability of any research, research
instrument, tool or procedure. If any research gives similar results each
time it is conducted with similar population and with similar procedures, it
is said to be a reliable research.

Validity
It determines the applicability of research. It is an indication of how
sound your research is. Validity applies not only to the methods but also
to the design of your research. Validity in data collection means that
your results truly represent what you were claiming to measure. For
example, many recreational activities of high school students involve
driving cars. A researcher, wanting to measure whether recreational
activities have a negative effect on grade point average in high school
students, might conduct a survey asking how many students drive to
school and then attempt to find a correlation between these two factors.
Because many students might use their cars for purposes other than or
in addition to recreation, this research study might prove invalid. Even if
a strong correlation was found between driving and grade point average,
driving to school in and of itself would seem to be an invalid measure of
recreational activity. (Source: www.writing.colostate.edu)

Accuracy
Accuracy means describing what really exists- truth and correct
statements/description without any exaggerations or unwarranted

Sikkim Manipal University

Page No. 4

Marketing Research

Unit 1

conclusions. Accuracy also measures whether research tools have been


chosen in best possible manner and research procedures used suits the
research question or not.

Credibility
It comes with the use of best source of information and best procedures
in research. When a researcher gives accurate and reliable references
in research, the credibility of research increases. On the other hand, if
the references are fake or not reliable, the credibility of your research
can decrease.

Empirical nature of research


It means that the research has been undertaken by using accurate
scientific methods and procedures. The empirical nature of research
means research is based on direct experience or observation from a real
life situation.

Self Assessment Questions


3. Research requires only collection of data. (True/False)
4. Research is generally _____________ in nature.

1.4 Various Types of Research


In this section, you are going to learn about various types of researches.
Following are the main types of research:
Theoretical/Fundamental/Pure research
Applied or decisional research
Conceptual research
Historical research
Action research
Library research
Ex-post-facto research
Exploratory research
Descriptive research
Causal research
Now let us study these in detail:

Theoretical/ Fundamental/Pure/ Basic research: It is the source of


new theories, principles and ideas. It is used to increase understanding

Sikkim Manipal University

Page No. 5

Marketing Research

Unit 1

of certain phenomena/ behaviour but does not seek to solve any existing
problem. Theoretical/Fundamental/Pure research helps to broaden the
horizons of knowledge and it may not be applied to seek a solution to
practical problems. It may not have a commercial potential. As an
example it can be used to seek answers to questions like; does any life
form exist on Mars? How did the Universe begin? How did dinosaurs
become extinct? What is the genetic code of a specific organism? ...And
so on. This research provides new knowledge about a particular user
group, but does not specify a way. This knowledge can be used to solve
a problem.

Applied/decisional research: The decisional i.e., applied research


involves a practical problem, its analysis and then seeking a practical
and feasible solution for the same. This research is related to a real life
situation where the concern is to seek an immediate solution to the
problems. For example, a study conducted on how information systems
can be used to improve the ability of physicians to diagnose diseases
more accurately.

Conceptual research: It is related to some abstract idea or theory (for


thinkers & philosophers). There may be a conceptual research, where
the focus is upon pure theoretical principles for seeking a practical
solution to the problems. E.g. spiritualism.

Historical research: As the name suggests, it is the study of past


events to interpret records and data to project future trends. The
premise of the research is based upon interpretations, inferences and
conclusions of the past events in order to analyse and understand the
present, and anticipate the future course of action. For example, types of
historical or interpretive research studies include: biographical, histories
of institutions and organisations, investigation of sources and influences,
editing and translating historical documents, studying the history of
ideas, or compiling bibliographies.

Action research: Directly, this involves an action-oriented research to


solve practical business problems. For example, test-Marketing a
product.

Library research: This involves the review of past reports, data and
notes in order to collect, analyse and interpret the secondary data.

Sikkim Manipal University

Page No. 6

Marketing Research

Unit 1

Ex-Post-Facto research: It is an empirical enquiry for situations that


have already occurred. For example, understanding reasons for product
defects, like Tata Nano car catching fire. This type of research explains
the relationship between the independent constructs. It is empirical in
nature and thus, the variables cannot be manipulated.

Exploratory research: It is undertaken with the aim of clarifying


ambiguous problems. It is used to solve general problems usually known
but not sufficiently understood. Its purpose is to get more information,
not to uncover specific courses of action (subsequent research). For
example,
o

What all kinds of Child-Care support programme our company can


devise for the employees.

How does social environment impact emotional health of children?

This type of research is carried out to explore and probe the given
situation in order to establish specific reasons for the problem. This type
of preliminary investigation can be conducted in the form of expert
surveys, focus groups, observations and case studies etc. For example,
to find reasons for sales decline in a company.

Descriptive research: Descriptive research seeks to depict what


already exists in a group or population. For example, it can be used to
seek answer to question like who are the main consumers of organic
food. Another example of this type of research would be an opinion poll
to determine which party, people plan to vote for in the next election.
Descriptive studies do not seek to measure the effect of a variable; they
seek to describe only.

Causal research: Most people interpret scientific experimentation and


research as studies to establish cause and affect relationships.
Experiments on causal relationships investigate the effect of one or
more variables on one or more outcome variables. This type of research
also determines if one variable causes another variable to occur or
change. An example of this type of research would be altering the
amount of treatment and measuring the effect on study participants.
Another example would be to measure the effect of promotion on the
total sales of a company.

Sikkim Manipal University

Page No. 7

Marketing Research

Unit 1

Activity 1
Give examples to show the areas where exploratory and descriptive
research can be used.
Self Assessment Questions
5. Which of these researches provides new knowledge?
(a) Pure
(b) Applied
(c) Conceptual
(d) Causal
6. In-store product testing is an example of which of the following
research.
(a) Pure
(b) Action
(c) Causal
(d) Historical
7. ______________ research determines if change in one variable
causes a change in another variable.

1.5 Marketing Research and its Management


Marketing research is considered to be more applied in nature but equally
making use of the theoretical concepts. The following definitions explore the
various dimensions of marketing research.
Green & Tull define Marketing Research as:
The systematic and objective search for and analysis of information
relevant to the identification and solution of any problem in the field of
marketing.
This definition gives a broader meaning to marketing research as it lays
stress upon the systematic and objective analysis of information.
G. C. Beri defines marketing research as:
A systematic and objective study of problems pertaining to the marketing
of goods and services. It may be emphasised that it is not restricted to any
particular area of marketing but is applicable to all its phases and aspects.

Sikkim Manipal University

Page No. 8

Marketing Research

Unit 1

The most prevalent and widely practiced definition has been given by
American Marketing Association (AMA):
Marketing research is the function which links the consumer; customer and
public to the marketer through information information used to identify and
define marketing opportunities and problems; generate, refine, and evaluate
marketing action; monitor marketing performance; and improve
understanding of marketing as a process.
Zaltman & Burger (1975) define MR as:
The diagnosis of information needs and the selection of relevant
interrelated variables about which valid and reliable information is gathered,
recorded and analysed.
This particular definition lacks in the explanation regarding identification and
formulation of problems and setting objectives of research.
Marketing research is viewed as a systematic and objective process of
identifying and formulating the marketing problems, setting research
objectives and methods for collecting, editing, coding, tabulating, evaluating,
analysing, interpreting and presenting data in order to seek solutions for the
problems.
Thus, the role of research is to provide assistance to management for
decision-making. In other words, the research helps provide management to
understand process and evaluate the required information in time so as to
facilitate effective and efficient decision-making through the application of
the fundamental concepts of research.
Self Assessment Questions
8. Marketing Research assist in decision making through systematic
collection and analysis of relevant _____________.
(a) Information
(b) Customers
(c) Product quality
(d) Customer loyalty
9. Marketing research is a systematic but subjective process. (True/False)
10. Marketing research provides assistance in managerial decisionmaking. (True/False)
Sikkim Manipal University

Page No. 9

Marketing Research

Unit 1

1.6 Nature and Scope of Marketing Research


Marketing research serves two major functions, it not only provides
information for short-term and long-term decision-making, but also
contributes to the new vistas of knowledge.
This problem-solving nature of marketing research helps in understanding
and analysing the complex and dynamic environment that affects the
demand, distributions and consumption pattern of the society.
Marketing research embraces all research activities that involve identifying
market potential for the new and existing products, forecasting the market
and sales trends and marketing mix-related research, wherein the past and
future trends for one's own company as well as of competitors are analysed
and interpreted.
As businesses expand further and further in international markets, the role
of timely and accurate marketing research to guide decision-making
becomes increasingly critical. Research to support international marketing
decisions has evolved over the past four decades and must change even
more to support firms in the 21st century.
Table 1.1 shows the evolutionary trends in MR. It is evident from the exhibit
that marketing research tools and techniques have changed considerably
from the 19th century to the 21st century.
Table 1.1: Evolutionary Trends in MR
Before
1910
1910-1920
1920-1930
1930-1940
1940-1950

1950-1960

1960-1970

Only basic surveys and first hand observations


Sales and cost
Survey methods and questionnaire design
Store audit methods and quota sampling
Probability sampling
Regression methods
Consumer and store panels
Motivation research
Operation research
Multiple regression and attitude measuring Techniques
Factor analysis
Discriminate analysis
Scaling techniques

Sikkim Manipal University

Page No. 10

Marketing Research

1970-1980
1980-1990
1990-2000
2000-2006

Unit 1

Multi attribute models


Test marketing laboratories
Advanced mathematical models
Computer-aided decision-making and planning models
Use of a combination of computer-aided
Intelligence system and MR tools and techniques

Source: Kapoor, Avinash. and Kulshreshta, Chinmaya. Marketing Research. Excel


Books, New Delhi

Self Assessment Questions


11. Marketing research provides information for short-term decision-making
only. (True/False)
12. Marketing research is problem-solving in nature. (True/False)

1.7 Marketing Research in the 21st Century (Indian Scenario)


Companies that have prepared themselves to compete in the 21st century
face the daunting task of making strategies that anticipate and respond to
the swift pace of change in global markets.
Due to this, their information needs are also changing and becoming ever
more complex and assorted. Timely and relevant information is crucial to
provide an adequate basis for day-to-day decision-making. Information is
also needed to chart the firm's path in an increasingly fast paced, unstable
and competitive environment.
Information needs of both the producers and consumers are changing in
developed and developing countries alike. Established markets in
industrialised economies are becoming more geographically integrated as
direct vertical links and information flows are established between
customers, retailers and suppliers.
Due to this, there is an emerging need to conduct research that spans
country boundaries. It is needed to identify regional or global market
segments, or to observe opportunities for integrating and better coordinating
strategies across national boundaries.
Simultaneously, speedy collection and interpretation of results from multiple
and geographically diverse sources become crucial so as to predict market
change and formulate an effective response strategy.
Sikkim Manipal University

Page No. 11

Marketing Research

Unit 1

As companies look to expand their operations beyond national boundaries


to take advantage of growing opportunities, they need to collect information
from a broader and more diverse range of markets.
This would require conducting research in unfamiliar and distant markets
like the ones in the Far East, the Middle East, Latin America and Africa.
This, in turn, poses a number of challenges, not only in collecting precise
and reliable information on existing behaviour patterns in a prompt and cost
effective manner, but also in forecasting response to new and unfamiliar
stimuli, and interpreting the implications for marketing strategy.
Advances in technology not only facilitate collection of data but also makes
more complex collection of data easier. The growth and increasing
technological superiority of the communication infrastructure enable data
collection on a much broader and diverse geographic scale and with greater
speed that was previously unthinkable.
But given this, management has to master the use of these tools and
understand their inherent limitations and biases.
In India, the companies are fast realising the importance of marketing
research. The managers are increasingly using marketing research to
identify consumers that comprise present and potential markets. It is also
being used to find out the buying habits and patterns of consumption of the
Indian buyers. Managers also use MR to find the size and location of
different markets, not only in India but also overseas.
Examples of Marketing Research in India are

HUL used marketing research to find out a suitable brand name for its
food category and name the category, Annapurna.

Indian marketing research firm Indian Council for Marketing Research


conducted customer perception study for Grohe India Pvt. Ltd. The
study was carried out in 17 cities across India to gage the perception of
Grohes products amongst its customers and dealers.

Airtel conducted an ITR (Intension to Recommend) study to o


understand the brand recommended among the various retail outlets.
One of the prime objective of the study was to conduct ITR study for

Sikkim Manipal University

Page No. 12

Marketing Research

Unit 1

various outlets in 5 zones; Hyderabad, Warangal. Vijayawada,


Vishakhapatnam and Tirupati

Punjab National Bank (PNB), conducted a benchmarking study. The


main objective of the study was to benchmark the services provided by
Punjab National Bank vis--vis their competitors and gauge the
satisfaction for the same. This study covered 10 PNB branches, 4 other
nationalised bank branches, 4 Indian private banks and 4 foreign private
banks. In this study, the quality of services of all the bank branches was
compared. It was conducted through random sampling of the target
segment and interviewing them with a structured questionnaire. This
was Delhi NCR based study.

Implications
The striking changes in the global environment along with technological
advances in data collection, analysis and dissemination imply that
researchers have to broaden their capabilities in order to design, implement
and interpret research in the 21st century.
As research efforts are aligned to match markets with the highest market
potential, researchers will need to develop the capabilities and skills to
conduct and design research in these environments (Barnard, 1997).
Modern tools that incorporate the latest technology will need to be practiced.
Also, the creative approaches to understand behaviour in differing cultural
contexts need to be developed.
In addition to these, the ability to interpret and integrate complex data from
diverse sources and environments will also be crucial in order to provide
meaningful recommendations for the firm's global marketing strategy.
Self Assessment Questions
13. HUL used marketing research to find out a suitable brand name for its
food category and name the category, _____________ .
(a) Apurva
(b) Annapurna
(c) Anupma
(d) Attipurna
14. Marketing research has gained importance due to the changing
____________ needs of people.
Sikkim Manipal University

Page No. 13

Marketing Research

Unit 1

15. Advances in ___________ has made data collection and interpretation a


lot easier.

1.8 Marketing Research: Value and Cost of Information


Before conducting marketing research, the company has to be aware of its
utility. If the company officials feel that the marketing research would not be
helpful for generating MIS and thus, in decision-making, the very idea of
marketing research should be dropped.
Further, a decision to undertake research also involves choosing one
among many alternative research designs or simply deciding about the
budget in order to expand and draw the research programme of the firm.
Although various decision-making models like maximin, minimax, regret and
Laplace are used for taking decisions under uncertainty; only the Bayesian
model finds its application for evaluating marketing research as new
information supplying and cost involving activity. The Bayesian Model, a
graphical model, is a probabilistic model for which a graph denotes the
conditional independence structure between random variables. They are
commonly used in probability theory, statistics particularly Bayesian
statistics and machine learning. Bayesian model selection uses the rules
of probability theory to select among different hypotheses.
There are other non-Bayesian techniques that are used to work out the
value of information sought through marketing research. Some of them are
as follows:

Cost Benefit Analysis: This technique helps work out cost benefit and
thus, helps in determining the value and significance of the research.

Present Value (PV) Method: Here, research expenses are treated as


investments. This approach is applicable to individual projects and a
total marketing research effort by an organisation. The incremental cash
benefits expected over the life of the investment are discounted by the
marginal cost of capital.

Return on Investment: It views research as an investment but return on


this investment is only calculated after the research is over.

Sikkim Manipal University

Page No. 14

Marketing Research

Unit 1

Saving Method: Here, the technique lies in estimating accurately the


cost of making incorrect decisions and the probability of making wrong
decisions.

Cost of conducting research


When the research is conducted by an advertising agency or a consulting
firm, there is no difficulty in determining the cost as it is the price asked by
the agency. But if the same is to be conducted in house then there must be
an accurate and specific research plan to determine the relevant cost
categories likes the cost of purchasing material, subcontracting etc. Usually,
there are two cost categories; one is operational cost and the other is time
cost.
Figure 1.1 depicts the specimen of research proposal form along with the
details of total estimated budget.
Specimen Research Proposal Form
1) Names of the Principal Investigators:

2) Project Co-Investigators (if any):

3) Title of the Project:

4) Project Schedule

a.

Project Start Date

b.

Closing Date

5) Project Description
(Attach objectives, methodology and intended outcomes)

6) Budgetary Details

Figure 1.1: Proposal Form Specimen

Sikkim Manipal University

Page No. 15

Marketing Research

Sr. No.
1.

Activity

Unit 1

Amount in Rs.

Salary for Research Assistants


Number of staff .
Duration of engagement
Salary per month .
Total Salary

2.

Cost for data collection, conducting survey, designing


questionnaire

3.

Charges for photocopying, printing, binding and secretarial


services

4.

Communication charges for the use of telephone/fax

5.

Travelling expenses including TA/DA and other conveyance


charges as applicable

6.

Local conveyance charges

7.

Charges for the use of computer and other facilities

8.

Any other (please specify)


Total Budgeted Amount

Source: Kapoor, Avinash. and Kulshreshta, Chinmaya. Marketing Research. Excel


Books, New Delhi
Figure 1.2: Proposal Form for Total Estimated Budget

Activity 2
Mr. Sharma who runs a media house hires Mr. Bhatnagar, a qualified
business management graduate, to expand his marketing activities. Most
of the current employees of the media house are qualified journalists.
During their review meeting, Mr. Bhatnagar says that "the company
should be involved in the market research to get a better perspective for
the business.
On hearing this, Mr. Sharma smilingly asks him to submit a formal
detailed research proposal with SWOT analysis for the same.
Considering yourself to be in place of Mr. Bhatnagar, develop a research
proposal for the above media house.

Sikkim Manipal University

Page No. 16

Marketing Research

Unit 1

Self Assessment Questions


16. The basic idea behind every marketing research is that it should aid in
decision-making. (True/False)
17. Marketing research costs can be categorised into two categories,
operational costs and _____________ costs.

1.9 Summary
Let us recapitulate the important concepts discussed in this unit:

Research is a systematic and intensive study undertaken to address the


fundamental questions or find a solution to the existing problems.

A research starts with a question or a problem and requires collection


and interpretation of data.

There are various types of research. Some of them are:


Theoretical/Fundamental/Pure research, Applied or decisional research,
Conceptual research, Historical research, Action research, Library
research, Ex-post-facto research, Exploratory research, Descriptive
research and Causal research.

Marketing research is considered to be more applied in nature but is


equally making use of the theoretical concepts.

Marketing research has two major functions: one, it provides information


for short-term and long-term decision-making, and two, it contributes to
the new vistas of knowledge.

As the information needs are changing in both developed and


developing countries, marketing research is growing in importance.

The very idea of marketing research should be dropped if the company


is not fully aware of the utility of marketing research and it thinks that the
marketing research would not be helpful for generating MIS and thus, in
decision-making.

1.10 Glossary
Applied research: It is a form of systematic inquiry involving the practical
application of science.
Causal research: The investigation into an issue or topic that looks at the
effect of one thing or variable on another.
Sikkim Manipal University

Page No. 17

Marketing Research

Unit 1

Exploratory research: investigation into a problem or situation which


provides insights to the researcher.
Ex-post-facto: It is a Latin expression that literally translates to mean
something that occurs after the fact.
Marketing research: It is the systematic and objective search for and
analysis of information relevant to the identification and solution of any
problem in the field of marketing.
Research: A detailed study of a subject, especially in order to discover
(new) information or reach a (new) understanding.

1.11 Terminal Questions


1.
2.
3.
4.
5.
6.

What do you mean by research? State some of its characteristics.


Differentiate between pure and applied research.
What is causal research? Give examples to explain your answer.
Define marketing research. Briefly explain its nature and scope.
Why has marketing research gained importance in the 21st century?
How can you find out the value of information?

1.12 Answers
Self
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Assessment Questions
True
Scientific
False
Cyclic
(a)
(b)
Causal
(a)
False
True
False
True
(b)
Information
Technology

Sikkim Manipal University

Page No. 18

Marketing Research

Unit 1

16. True
17. Creative
Terminal Questions
1. Research can be defined as a systematic investigation. For more
details, refer to section 1.2 and 1.3.
2. Pure research is done to gain new knowledge while applied research
builds on existing pure research. For more details, refer to section 1.4.
3. Causal research attempts to explain the relationship between two
variables. It is used to test hypotheses about cause-and-effect
relationships. For example, it can be used to explain the relationship
between sales and productivity. For more details, refer to section 1.4.
4. Marketing research gathers and analyses information about the moving
of goods or services from producer to consumer. For more details, refer
to section 1.5 and 1.6.
5. Information needs are changing in both developed and developing
countries. Therefore, marketing research has gained importance in the
21st century. For more details, refer to section 1.7.
6. We can find the value of information using Bayesian and non-Bayesian
models. For more details, refer to section 1.8.

1.13 Case Study


From Armani to AIDS: the hopes, the fears, of Europes youth
Todays youth live in a fast-changing world, and their attitudes, behaviour
and exposure to the media and to brands differ from those of their
predecessors of just a few years ago.
A major qualitative research study, interviewing more than 500 young
people across 16 countries, has been conducted. Four workshops of seven
to nine participants were held in each capital city, each lasting up to five
hours.
The countries covered were Austria, the Czech Republic, Denmark, Finland,
France, Germany, Hungary, Italy, the Netherlands, Norway, Poland, Russia,
Spain, Sweden, Switzerland and the UK. The target of the research was
trend-setters, that is young opinion leaders and leading-edge youth aged
15-19 years, those who decide what is in the early adopters and
disseminators of opinions and tastes.
Sikkim Manipal University

Page No. 19

Marketing Research

Unit 1

Participants were given disposable cameras to take photographs ahead of


the groups; these were used, with other materials, to create collages
illustrating what makes them happy or sad and what it means to be
young and living in their country. A self-completion questionnaire provided
data on favourite pastimes, music and media stars, sports teams and so on,
and awareness, usage and preferences of brands.
On clothing, for example, valuable insight was gained on the rationale
behind both aspirational desires and actual behaviour. Male participants
aspired to the most obviously status-giving brands, the opulent and clearly
expensive (Versace, Armani), reflecting their desire to buy into a world of
success, money and power that everyone (they feel) would appreciate.
Female participants, however, were far more interested in standing out from
the crowd. They were attracted to the non-mainstream brands which also
came with their own strong set of values (e.g. Mambo, Stussy), as well as
the more expensive (e.g. Prada and Gucci). What was especially interesting
to the researchers was the way that these girls wore brands, mixing and
matching, personalising their outfits.
As both the boys and girls matured and their repertoire of brands and their
financial status grew, they were more inclined to temper their deals. They
moved towards the more High Street designer brands of Diesel, Calvin
Klein, Ralph Lauren and DKNY and older stores such as Next and Gap.
Discussion Questions
1. What is the purpose of research study done by the marketing researcher
in the above case?
2. Is the research study Qualitative or Quantitative in nature?
3. What is the interesting thing in the study found by the researcher in the
case?
4. Which types of brands are mostly preferred by the young generation in
this study?
Source: Malhotra, N. and D. Birks. (2003). Marketing Research: An Applied
Approach. London: Prentice Hall

References:

Malhotra, Naresh K. and Dash, Satyabhusan. (2010). Marketing


Research: An Applied Orientation. India: Pearson Education.

Sikkim Manipal University

Page No. 20

Marketing Research

Unit 1

Kulkarni, M.V. (2004). Marketing Research. India: Everest Publishing


House.

Bahuguna, Pallavi. (2011). Marketing Research. India: Centrum Press

E-references:

http://suite101.com/article/what-is-market-research-a165313/. Retrieved
on 16 June 2012, Time 11:00 AM.

http://sbinfocanada.about.com/cs/marketing/a/marketresearch_2.htm/.
Retrieved on 18 June 2012, Time: 11:50 AM.

http://www.managementstudyguide.com/marketing_research.htm/.
Retrieved on 18 June 2012, Time 04: 15 PM.

Sikkim Manipal University

Page No. 21