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Introduction to marketing
research
IBM:
In the year 2008 revenues of $103.6
billion, conducts international
tracking study twice a year in 14
different languages across 27
different countries in Europe, North
and South America and Asia to
capture trend data on main frame
computing. The result of such a
study allows IBM to see how
successful it is in penetrating key
Recipo:
An application service provider, it
gives its clients the ability to view
customer feedback the second it is
entered on their website, to capture
true word and emotion of the
consumer. “Live” marketing
research.
Portico research:
It specializes in observing individuals
recording them on videos and selling
these tapes for tens of thousands of
dollars to its major clients such as
Honda, Delta, Lipton and P&G. For
Lipton: to determine people’s
attitudes towards tea.
P&G
It created a website www.toejam.com
to target teens. Company improved
products also based on feedbacks
and chats.
Marketing research has become
global (IBM) and real time
(Recipo), is being conducted in a
specialized manner (Portico) and
has become much more integrated
with marketing (P&G)
Definition:
To identify:
Problem identification research
▪ Market Potential research
▪ Market Share research
▪ Image research
▪ Market characteristics Research
▪ Sales analysis Research
▪ Forecasting Research
▪ Business trends Research
To solve:
Problem solving Research
▪ Segmentation Research
▪ Product Research
▪ Pricing research
▪ Promotion Research
▪ Distribution research
A survey of companies conducting
marketing research indicates that
97% of those who responded were
conducting market potential,
market share and market
characteristics research
About 90% also reported that they
were using other types of problem
identification research.
Table 1.1: Problem solving research
However problem identification and
problem solving research go hand
in hand as shown by Kellogg’s
example in the case “Crunchy nut
Red adds color to Kellogg’s sales”
Problem identification and problem
solving research not only go hand
in hand as shown by the Kellogg’s
Example, but they also follow a
common marketing research
Marketing Research Process:
It is a set of six steps that defines the
tasks to be accomplished in
conducting a marketing research
study. These include problem
definition, development of an
approach to the problem, research
design formation, field work, data
preparation and analysis, and report
preparation.
STEP 1:
Problem definition:
▪ Purpose of study
▪ The relevant background information
▪ The information needed. How it will be used
in decision making.
STEP 2:
Development of an approach to the
problem:
▪ An objective or theoretical framework
▪ Analytical methods
▪ Research questions
▪ Hypotheses
▪ Identify the information needed.
STEP 3 :
Research design Formulation:
▪ Research design is a blue print or a
framework for conducting the Marketing
research Project. It involves following
steps:
▪Definition of the information needed
▪Secondary data analysis
▪Qualitative research
▪Methods of collecting quantitative data (survey,
observation and experimentation)
▪Measurement and scaling procedures
▪Questionnaire design
▪Sampling process and sample size
▪Plan of data analysis
STEP 4:
Field work or Data Collection
Step 5:
Data Preparation and analysis.
▪ Editing
▪ Coding
▪ Transcription and verification of data
STEP 6:
Report preparation and presentation
▪ Addressing the specific research
▪ Questions identified
▪ Describing the approach
▪ The research design
▪ Data collection
▪ Data analysis procedure adopted
▪ Results and major findings
The nature of marketing
research:
Fig: 1.2: The role of marketing
research
Case study: Johnson and Johnson
introduced gentle aspirin for babies
which failed in the market.
Marketing research suppliers
and services:
Fig: 1.3: Marketing research suppliers
and services:
The role of MR in MIS and DSS
MIS: Marketing information system: A
formalized set of procedures for
generating, analyzing, storing and
distributing pertinent information to
marketing decision makers on an
ongoing business.
DSS: Decision support systems:
Information systems that enable
decision makers to interact directly
with both databases and analysis
MIS
Structured problems
Use of reports
Rigid structures
Information displaying restricted
Can improve decision making by clarifying
the raw data
DSS
Unstructured problems
Use of models
User friendly interactions
Adaptability
Can improve decision making by using
“what if” analysis.
International Marketing
Research:
Some Facts:
US accounts for only 39% of the MR
expenditure worldwide.
40% of MR is conducted in western
Europe.
9% of MR is conducted in Japan
Most of European research is done in
Germany, UK, France, Italy and
Spain.
Group Discussion:
Can ethical Standards be enforced in
marketing research? If So, How?
Role playing:
You are a project director working for a
major research supplier. You have just
received a telephone call from an irate
respondent who believes that an
interviewer has violated her privacy by
calling at an inconvenient time. The
respondent expresses several ethical
concerns. Ask a fellow student to play
the role of this respondent. Address the
respondents concerns and pacify her.
CHAPTER 2
Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -
Note: A “+” indicates a relative advantage over the other design, whereas a “-”
indicates a relative disadvantage.
“A major advantage of longitudinal design over the cross sectional design is the
ability to detect change as a result of repeated measurement of the same variables
on the same sample.”
Another advantage of the panels is that
relatively large amount of data can be
collected, because panel members are
usually compensated for their
participation, they are willing to
participate in lengthy and demanding
interviews.
Panel data can be more accurate than
cross sectional data.
The main disadvantage of panels is that
they may not be representative
because:
Causal Research
A type of conclusive research where the major
objective is to obtain evidence regarding
cause-and-effect (causal) relationship.
It requires a planned and structured design.
A relatively controlled environment is one in
which the other variables that may affect the
dependent variable are controlled or checked
as much as possible. The effect of
manipulation on one or more dependent
variables is then measured to infer causability.
In a departmental store, the presence and
helpfulness of salespeople (causal variable)
will influence the sales of housewares(effect
variable).
Uses of Casual Research
1) A taskforce was created to better define the market parameters to include all
the needs of the many Citicorp branches. A final decision was made to include
Americans 55 years of age or older, retired, and in the upper half of the
financial strata of that market.
Citicorp Banks on Exploratory,
Descriptive,
and Causal Research
2) Exploratory research in the form of secondary data analysis
of the mature or older market was then performed and a study of
competitive products was conducted. Exploratory qualitative
research involving focus groups was also carried out in order to
determine the needs and desires of the market and the level of
satisfaction with the current products.
In this study, only one idea generated from the brainstorming session
made it past all the listed hurdles and on to step 5.
Citicorp Banks on Exploratory,
Descriptive,
and Causal Research
5) A creative work-plan was then generated. This plan was to
emphasize the competitive advantage of the proposed product as
well as better delineate the specific features of the product.
Random Non-sampling
Sampling Error Error
Response Non-response
Error Error
D a ta
inexpensively.
A Comparison of Primary &
Secondary
Table 4.1 Data
Specifications & Data collection method, response rate, Data should be reliable,
Methodology quality & analysis of data, sampling valid, & generalizable to the
technique & size, questionnaire design, problem.
fieldwork.
Error & Accuracy Examine errors in approach, Assess accuracy by
research design, sampling, data comparing data from
collection & analysis, & reporting. different sources.
Currency
Time lag between collection & Census data are updated by
Objective publication, frequency of updates. syndicated firms.
Why were the data collected? The objective determines
Nature the relevance of data.
Definition of key variables, units of Reconfigure the data to
measurement, categories used, increase their usefulness.
Dependability relationships examined.
Expertise, credibility, reputation, & Data should be obtained
trustworthiness of the source. from an original source.
A Classification of
Secondary
Fig. 4.1 Data
Secondary Data
Internal External
Published Secondary
Data
Computerized
Databases
Guides
An excellent source of standard or recurring information
Helpful in identifying other important sources of
directories, trade associations, and trade publications
One of the first sources a researcher should consult
Directories
Helpful for identifying individuals or organizations that
collect specific data
Examples: Consultants and Consulting Organizations
Directory, Encyclopedia of Associations, FINDEX: The
Directory of Market Research Reports, Studies and
Surveys, and Research Services Directory
Indices
Helpful in locating information on a particular topic in
several different publications
Classification of Computerized
Databases
Unit of
Measurement
Households/
Consumers Institutions
Syndicated Services:
Consumers
Fig. 4.4 cont.
Households /
Consumers
Panels
Electronic scanner
services
Purchase Media
Psychographic Advertising
& Lifestyles General Evaluation
Syndicated Services:
Institutions
Fig. 4.4 cont.
Institutions
Audits
and
purchases, and marketing variables, such as
product
sales, price, advertising, promotion, and in-store
marketing effort.
Descriptive Causal
Unstructured Structured
Data Collection
Non-statistical Statistical
Data Analysis
Develop an initial Recommend a final course of
Outcome
understanding action
A Classification of Qualitative Research
Procedures
Fig. 5.2
Qualitative Research
Procedures
Projective
Techniques
Focus Groups Depth Interviews
1. Synergism
2. Snowballing
3. Stimulation
4. Security
5. Spontaneity
6. Serendipity
7. Specialization
8. Scientific
scrutiny
9. Structure
Disadvantages of Focus
Groups
1.Misuse
2.Misjudge
3.Moderation
4.Messy
5.Misrepresentation
Depth Interview Techniques:
Laddering
I accomplish more
flying
Depth Interview Techniques:
Hidden Issue Questioning
Sears
Traditional Computer-Assisted
Mail Mail
Telephone Telephone
Interview Panel
Interviewing
Some Decisions Related to the Mail Interview
Package
Table 6.1
Outgoing Envelope
Outgoing envelope: size, color, return address
Postage Method of addressing
Cover Letter
Sponsorship Type of appeal Postscript
Personalization Signature
Questionnaire
Length Size Layout Format
Content Reproduction Color Respondent anonymity
Return Envelope
Type of envelope Postage
Incentives
Monetary versus non-monetary Prepaid versus promised amount
Criteria for Evaluating Survey
Methods
Diversity of Questions
Sample Control
Sample control is the ability of the survey mode to reach
the units specified in the sample effectively and
efficiently.
Quantity of Data
Response Rate
Survey response rate is broadly defined as the percentage
of the total attempted interviews that are completed.
Perceived Anonymity
Perceived anonymity refers to the respondents'
perceptions that their identities will not be discerned by
the interviewer or the researcher.
Cost
Flexibility of data
collection
Diversity of question
Observation Methods
Structured versus Unstructured
Observation
Classifying
Observation
Methods
Observation Methods
participation.
the AC Nielsen audimeter
turnstiles that record the number of people
entering or leaving a building.
On-site cameras (still, motion picture, or
video)
Optical scanners in supermarkets
Do require respondent involvement.
eye-tracking monitors
pupilometers
psychogalvanometers
Observation Methods
Audit
____________________________________________________
Ordinary Meaning Scientific Meaning
____________________________________________________
High Low
Education, X
Education
High 200 (100%)
Education
171 (57%) 129 (43%) 300 (100%) Low 151 (76%) 49 (24%) 200
Low
Definitions and Concepts
Independent variablesare variables or
alternatives that are manipulated and whose
effects are measured and compared, e.g.,
price levels.
Test unitsare individuals, organizations, or
other entities whose response to the
independent variables or treatments is being
examined, e.g., consumers or stores.
Dependent variablesare the variables which
measure the effect of the independent
variables on the test units, e.g., sales, profits,
and market shares.
Extraneous variables are all variables other
than the independent variables that affect the
response of the test units, e.g., store size,
Experimental Design
Measurement and
Scaling
Scalinginvolves creating a continuum upon
which measured objects are located.
Ratio Time to
Finish, in 15.2 14.1 13.4
Seconds
Primary Scales of Measurement
Nominal Scale
Comparative Noncomparative
Scales Scales
Semantic Stapel
Likert
Differential
A Comparison of Scaling
Techniques
Comparative scalesinvolve the direct
comparison of stimulus objects. Comparative
scale data must be interpreted in relative
terms and have only ordinal or rank order
properties.
Form
Brand Rank Order
1. Crest _________
2. Colgate _________
3. Aim _________
4. Gleem _________
5. Macleans _________
Instructions
On the next slide, there are eight attributes of
bathing soaps. Please allocate 100 points among
the attributes so that your allocation reflects the
relative importance you attach to each attribute.
The more points an attribute receives, the more
important the attribute is. If an attribute is not at all
important, assign it zero points. If an attribute is
twice as important as some other attribute, it
should receive twice as many points.
Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Figure 8.5 cont.
Form
Average Responses of Three Segments
Attribute
Segment I Segment II Segment III
8 2 4
1. Mildness
2 4 17
2. Lather
3 9 7
3. Shrinkage 53 17 9
4. Price 9 0 19
5. Fragrance 7 5 9
6. Packaging 5 3 20
7. Moisturizing 13 60 15
8. Cleaning Power 100 100 100
Sum
Chapter Nine
Measurement and Scaling:
Noncomparative Scaling
Techniques
Noncomparative Scaling
Techniques
Respondents evaluate only one object at a time,
and for this reason noncomparative scales are
often referred to as monadic scales.
Noncomparative techniques consist of
continuous and itemized rating scales.
Continuous Rating Scale
Respondents rate the objects by placing a mark at the
appropriate position
on a line that runs from one extreme of the criterion variable to
the other.
The form of the continuous scale may vary considerably.
best
Version 2
best
0 10 20 30 40 50 60 70 80 90 100
Version 3
best
0 10 20 30 40 50 60 70 80 90 100
RATE: Rapid Analysis and Testing
Environment
A relatively new research tool, the perception analyzer, provides continuous measurement of “gut
reaction.” A group of up to 400 respondents is presented with TV or radio spots or advertising
copy. The measuring device consists of a dial that contains a 100-point range. Each participant
is given a dial and instructed to continuously record his or her reaction to the material being
tested.
objects.
meaning.
SEARS IS:
Powerful --:--:--:--:-X-:--:--: Weak
Unreliable --:--:--:--:--:-X-:--: Reliable
Modern --:--:--:--:--:--:-X-: Old-fashioned
This scale
is usually presented vertically.
SEARS
+5 +5
+4 +4
+3 +3
+2 +2X
+1 +1
HIGH QUALITY POOR SERVICE
-1 -1
-2 -2
-3 -3
-4X -4
-5 -5
5) Verbal description
An argument can be made for labeling all or
many scale categories. The category
descriptions should be located as close to the
Balanced and
Unbalanced
Figure 9.1 Scales
Balanced Unbalanced
Scale
Jovan Musk for Men is Scale
Jovan Musk for Men is
Extremely good Extremely good
Very good Very good Good
Good
Bad Somewhat good
Very bad Bad Extremely
bad Very bad
Rating Scale Configurations
A variety of scale configurations may be employed to measure the
gentleness of Cheer detergent. Some examples include:
Cheer detergent is:
1) Very harsh --- --- --- --- --- --- --- Very gentle
3) . Very harsh
.
.
. Neither harsh nor gentle
. Cheer
.
. Very gentle
4) ____ ____ ____ ____ ____ ____ ____
Very Harsh Somewhat Neither harsh Somewhat Gentle Very
harsh Harsh nor gentle gentle gentle
5)
1 2 3 4 5
Chapter Eleven
Sampling:
Design and Procedures
Population
The aggregate of all elements, sharing some common
set of characteristics, that comprises the universe for
the purpose of the marketing research.
Census
A complete enumeration of the elements of a
population or study object.
Sample
A subgroup of the elements of the population
selected for participation in the study.
Sample
Table 11.1
vs. Census
Type of Study
1. Budget
The Sampling Design
Process
Fig. 11.1
Type of Study
Problem identificati
Classification of Sampling
Techniques
Sampling Techniques
Nonprobability Probability
Sampling Techniques Sampling Techniques
test markets
purchase engineers selected in industrial
marketing research
bellwether precincts selected in voting
behavior research
expert witnesses used in court
Quota Sampling
Quota samplingmay be viewed as two-stage restricted
judgmental sampling.
The first stage consists of developing control categories,
or quotas, of population elements.
In the second stage, sample elements are selected based
on convenience or judgment.
Population Sample
composition composition
Control
Characteristic Percentage Percentage Number
Sex
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000
Snowball Sampling
In snowball sampling, an initial group of
respondents is selected, usually at random.
Factors
Nature of research