Marketing, Chapter 10

Laboratory experiment -_____ setting -Opportunity to ____ for extraneous variables -Opportunity to gain internal validity -Lacks _______

Artificial; control; external validity

Primary data

those data collected to address specific research needs.

Although readily accessible, these inexpensive sources may not be specific or _____ enough to meet the marketer's research needs and objectives. Firms also can purchase more specific or applicable secondary data from specialized research firms. Finally, secondary sources can be accessed through internal sources, including the company's sales invoices, customer lists, and other reports generated by the company itself.

timely

descriptive research

to access magnitudes and categorize

exploratory research

to shed light on the problem and suggest solutions or new ideas

casual research

to test and establish cause and effect relationships

in-depth interview

trained researchers ask questions and listen to and record the answers and then pose additional questions to clarify or expand on a particular issue.

Marketing Research Process Step 2: Designing the Research In this step, researchers identify the _______ needed and determine the research necessary to collect them.

type of data

Why do marketers find marketing research valuable? -First, it helps reduce some of the _____ under which they currently operate. Successful managers know when research might help their decision making and then take appropriate steps to acquire the information they need. -Second, marketing research provides a crucial ____ between firms and their environments, which enables them to be customer oriented because they build their strategies by using customer input and continual feedback. -Third, by constantly monitoring their _____, firms can anticipate and respond quickly to competitive moves.

uncertainty; link; competitors

data mining tools

use a variety of techniques to find patterns and relationships in large volumes of information

Facial recognition software

used to detect individuals from a video frame or digital images

5 V's of Big Data

Volume Variety Velocity Veracity Value dimensions

primary research disadvantages

-Costly -Time consuming -Requires more sophisticated training and experience to design study and collect data

It is particularly important for marketers to adhere to ethical practices when conducting marketing research. The American Marketing Association provides three guidelines for conducting marketing research:

-It prohibits selling or fundraising under the guise of conducting research -It supports maintaining research integrity by avoiding misrepresentation or the omission of pertinent research data -It encourages the fair treatment of clients and suppliers.

secondary research disadvantages

-May not be precisely relevant to information needs -Information may not be timely -Sources may not be original, and therefore usefulness is an issue -Methodologies for collecting data may not be appropriate -Data sources may be biased

secondary research advantages

-Saves time in collecting data because they are readily available -Free or inexpensive (except for syndicated data)

Secondary data examples

-U.S. Census -sales transactions -data sources -internet info -books -journal articles

primary research advantages

-specific to the immediate data needs and topic at hand -offers behavioral insights generally not available from secondary research

Marketing Research Process Steps

1. Defining the objectives and research needs 2. Designing the research 3. Collecting the data 4. Analyzing data and developing insights 5. Action plan and implementation

As its very name implies, volume is inherent to big data. _____ may be the poster child for this feature of big data. The recommendations that it generates on the basis of this data account for more than one-third of its sales.

Amazon

Secondary data might come from free or very inexpensive external sources such as _____________.

census data, information from trade associations, and reports published in magazines

It's All About the Consumer's Perceptions and Beliefs Question: What should marketers do when consumers are wrong? Option #1: ______ Option #2:______ → PepsiCo chose this

Change consumers' perceptions; Change product/strategy

syndicated data

Data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen.

data analytics tools:

Descriptive Analytics Tools Predictive Analytics Tools Prescriptive Analytics Tools Active Analytics Tools

descriptive analytics tools examples

Excel spreadsheets, software like SPSS and SAS, and visualization software that provides a graphical display of data

Firms are also actively using experimental techniques on ________.

Facebook

prescriptive analytics tools example

Garden hoses are near sprinklers

The Role of Marketing Research -Marketing research supplies ______ -This info helps reduce uncertainty and enables managers to make better educated guesses; and allows marketers to understand the effectiveness of particular strengths and tactics -Figure out what you do and do not know

INFORMATION

Structured questions

closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

Marketing research

It consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers who are involved in marketing goods, services, or ideas.

Types of experiments

Laboratory Field

_____ is a prerequisite of successful decision making.

Marketing research

Field experiment -_____setting - offers ______ -Can be time consuming and _____ -Little or no ____- questionable internal validity -TEST MARKETING

Natural; external validity; expensive; control

The largest U.S.-based marketing research firm, _______, earns annual worldwide revenues of more than $6.5 billion.

Nielsen Company

_______ is information collected from a group of consumers, organized into panels, over time.

Panel data

Panel research focuses on _______.

the total weekly consumption by a particular person or household.

Marketing Research May NOT Be Needed/Conducted If: -Information is already ______ -Resource constraints -_____: Ex. Responding to successful product introduction by competitor -_____: Ex. local/small businesses -____ exceed benefits -Internal resistance

Time; Money; available; Cost

questionnaire

a document that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives. Individual questions on a questionnaire can be either unstructured or structured.

data warehouse

a place where databases are stored so that they are available when needed

focus group interviews

a small group of people (usually 8 to 12) come together for an intensive discussion about a particular topic.

survey

a systematic means of collecting information from people using a questionnaire.

Experimental research (an experiment)

a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables.

Scanner data

a type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of Universal Product Code (UPC) codes at check-out counters

prescriptive analytics tools

analyses that use simulations, which ask a series of what if-type questions, and optimization techniques to find the most effective or best result, which help firms better understand what they should do.

active analytics tools

artificial intelligence algorithms used to analyze input gathered from various data bases including data from the Internet of Things

Data

as raw numbers or other factual information that, on their own, have limited value to marketers

To respond to their increased needs, firms have embraced a relatively new form of secondary data called ______, which are data sets that are too large and complex to analyze with conventional data management software.

big data

As its name implies, qualitative research uses _____ questions to understand the phenomenon of interest. It provides initial information that helps the researcher more clearly formulate the research objectives.

broad, open-ended

Quantitative research provides information needed to ____ insights and hypotheses generated via qualitative research or secondary data. It also helps managers pursue appropriate courses of action.

confirm

A method of determining the profitability of a firm's customers is the _____ (CLV).

customer life time value

veracity

data in doubt; trustworthiness of data due to accuracy and reliability

volume

data in large quantities;

variety

data in many forms (qualitative and quantitative, obtained from different media formats)

value

data into money; usefulness of data compared to its cost

These data are then analyzed with a variety of statistical tools, known as _______, to uncover previously unknown patterns or relationships among variables stored in the big data databases.

data mining tools

velocity

data moving quickly; streaming data, requiring milliseconds to seconds to respond

big data

data sets that are too large and complex to analyze with conventional data management software

Big data are accessed from numerous sources including sales transactions, customer relationship management (CRM) systems, websites, social media, blogs, locational devices, wearables, and so forth, and are stored in large computer files known as a ______.

data warehouse

biometric data

digital scanning of the physiological or behavioral characteristics of individuals; physical traits such as facial characteristics, iris scans, or fingerprints. (Neuromarketing)

Observation

entails examining purchase and consumption behaviors through personal or video camera scrutiny, or by tracking customers' movements electronically as they move through a store.

In-depth interviews are, however, relatively _______ and time-consuming.

expensive

In particular, online surveys tend to be less ______ but generate more _______.

expensive; responses

quantitative data examples

experiments, surveys, scanner and panel data

Basic research designs

exploratory, descriptive, causal

Primary data examples

focus groups, in-depth interviews, surveys, observed behaviorSsecondary

descriptive analytics tools

help firms organize, tabu-late, and depict their available data, usually in easy-to-understand reports, tables, and charts.

The key difference between scanner research and panel research is ________.

how the data are aggregated

In-depth interviews provide insights that help managers better understand the nature of their _____ as well as important trends and consumer preferences, which can be invaluable for developing marketing strategies. They also can communicate how people really ____ about a product or service at the individual level. Finally, marketers can use the results of in-depth interviews to develop surveys.

industry; feel

However, when the data are interpreted, they become _______, which results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers.

information

Overall, firms hope to use predictive analytics tools to generate customer-based ______ that they can apply to their strategic decision making and thereby make good customers better and better customers their best.

insights

Marketing Research Process Step 5: Developing and Implementing an Action Plan A typical _______ includes an executive summary, the body of the report (which discusses the research objectives, methodology used, and detailed findings), the conclusions, the limitations, and appropriate supplemental tables, figures, and appendixes.

marketing research presentation

To produce meaningful results, a questionnaire's questions cannot be ______ in any fashion (e.g., open to multiple interpretations), and they must address only ____ issue at a time. They also must be worded in vocabulary that will be familiar and comfortable to those being surveyed.

misleading; one

Churn

number of customers who discontinue use of a service, divided by the average number of total participants. With this

Qualitative research is more informal than quantitative research methods. Examples include _________.

observation, monitoring of social media sites, in-depth interviews, and focus groups.

Unstructured questions

open ended and allow respondents to answer in their own words.

Secondary data

pieces of information that have been collected prior to the start of the focal research project.

Another important requirement before embarking on a research project is to _____ the entire project in advance. This avoid unnecessary alterations to the research plan as they move through the process.

plan

Data collected from panelists often include their records of what they have _____ (i.e., secondary data) as well as their responses to _____ questions that the client gives to the panel firm to ask the panelists (i.e., primary data).

purchased; survey

In particular, focus groups gather _____ data about initial reactions to a new or existing product or service, opinions about different competitive offerings, or reactions to marketing stimuli, such as a new ad campaign or point-of-purchase display materials.

qualitative

Depending on the nature of the research problem, the primary data collection method can employ a ______ or a _____ research method.

qualitative; quantitative

Predictive Analytics Tools

rely on historically available data to forecast the future

information

results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers

Researchers must choose a group of customers who represent the customers of interest, or a _____, and then generalize their opinions to describe all customers with the same characteristics.

sample

A marketing research project often begins with a review of the relevant ________.

secondary data

Marketing Research Process Step 3: Collecting the Data Data collection begins only after the research design process. Based on the design of the project, data can be collected from _____ or _____ data sources.

secondary; primary

marketing analytics purpose

so that marketers can improve their decision making, optimize their returns, and make appropriate customer-related decisions. Combines various research and analytics methods (qualitative and quantitative) to address marketing problems.

The value of the data stems from the insights they provide into factors that are critical to marketers, such as consumer or purchasing decisions. Consider ______ and the valuable information they can provide to aid marketing research and strategy decisions. Contributors to social media are nearly constantly providing opinions about a firm's own products or its competitors' offerings.

social media

Once the firm has gained insights from doing qualitative research, it is likely to engage in quantitative research, which are _____ responses that can be ______.

structured; statistically tested

Arguably the most popular type of quantitative primary collection method is a ______.

survey

Syndicated Secondary Data Although the secondary data described previously are either free or inexpensively obtained, marketers can purchase secondary data called ______, which are available for a fee from commercial research firms such as IRI, the NDP Group, and Nielsen.

syndicated data

neuromarketing

the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies.

Managers consider several factors before embarking on a marketing research project. -First, will the research be _______ -Second, is management _____ to the project and willing to abide by the results of the research? -Third, should the marketing research project be ____ or _____?

useful; committed; small; large

marketing analytics

uses advanced technologies and models to analyze gathered data;

Scanner research typically focuses on ________ (e.g., individual store, chain, region).

weekly consumption of a particular product at a given unit of analysis

loT is

when multiple "smart devices" with Internet-connected sensors-such as driverless cars, voice-activated in-home assistants, robotic vacuum cleaners, and appliances-combine the data they have collected to help both consumers and companies consume more efficiently.