Marketing Research (Burns/Bush) - Final Ch 4, 5

Internal Validity

-The observed change in the dependent variable is due to the independent variable.

Uses of databases

-To identify prospects -To decide which customers should receive a particular offer -To deepen customer loyalty -To reactivate customer purchases -To avoid serious customer mistakes

Exploratory research

-is usually conducted at the outset of research projects. -It is usually conducted when the researcher does not know much about the problems.

Longitudinal studies

-repeatedly measure the same sample units of a population over time. -Since they involve multiple measurements over time, they are often described as "movies" of the population

Secondary data advantages

Are obtained quickly Are inexpensive Are readily available Enhance existing primary data May achieve research objective

Packaged services disadvantages

Aspects of a project cannot be customized. The company providing the packaged service may not know the idiosyncrasies of a particular industry.

Syndicated data disadvantages

Buyers have little control over what information is collected. Firms often must commit to long-term contracts when buying syndicated data. No strategic information advantage exists in purchasing syndicated data.

Key sources of secondary data

Census of the Population - Conducted every 10 years Economic Census - Conducted every five years

Types of research design

Exploratory Descriptive Causal

Uses of exploratory research

Gain background information Define terms Clarify problems and hypothesis Establish research priorities

Applications of packaged infomation

Measuring consumer attitudes and opinions Market segmentation Monitoring media usage and promotion effectiveness Market tracking studies

Secondary data disadvantages

Reporting units may be incompatible Measurement units do not match Class definitions are not usable May be outdated May not be credible

Criteria of test market city selection

Representativeness Degree of isolation Ability to control distribution and promotion

Syndicated data advantages

Shared costs Quality of the data collected typically very high Speed

American Community Survey

Survey 3 million Americans every year Provide updated information on key demographics Provide forecasts for future years

Two classes of packaged info

Syndicated data Packaged services

Packages services advantages

The experience of the research firm offering the service Reduced cost of the research Speed of the research service

External Validity

The results of the experiment apply to the "real world" outside the experimental setting.

Uses of test markets

To test sales potential for a new product or service To test variations in the marketing mix for a product or service

Case analysis

a review of available information about a former situation(s) that has some similarities to the current research problem

Importance of research design

allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning.

Syndicated data

are collected in a standard format and made available to all subscribers. For example, Marketing Evaluations, Inc., offers several Q Scores® services.

Controlled test market

are conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

Internal secondary data

are data that have been collected within the firm, such as sales records, purchase requisitions, and invoices.

External databases

are databases supplied by organizations outside the firm: -Published -Syndicated services data -Databases

Stimulated test markets

are those in which a limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume.

Electronic test market

are those in which a panel of consumers has agreed to carry identification cards that each consumer presents when buying goods and services.

Laboratory experiments

are those in which the independent variable is manipulated and measures of the dependent variable are taken in a contrived, artificial setting for the purpose of controlling the many possible extraneous variables that may affect the dependent variable.

Field experiments

are those in which the independent variables are manipulated and the measurements of the dependent variable are made on test units in their natural setting.

Extraneous variables

are those variables that may have some effect on a dependent variable yet are not independent variables

independent variables

are those variables that the researcher has control over and wishes to manipulate—the 4 P's

dependent variables

are those variables that we have little or no direct control over but a strong interest in changing

Control varibles

are thought to have an effect on DV but are not the focus of the research

Continuous panels

ask panel members the same questions on each panel measurement.

Internal database

consist of information gathered by a company, typically during the normal course of business transactions.

Control group

control of extraneous variables typically achieved by the use of a second group of subjects

Sample surveys

cross-sectional studies whose samples are drawn in such a way as to be representative of a specific population.

Before-after with control group

design may be achieved by randomly dividing subjects of the experiment in two groups:

Purpose of internal database

direct marketing and to strengthen relationships with customers, which is referred to as customer relationship management (CRM).

Secondary data applications

economic-trend forecasting, corporate intelligence, international data, public opinion, and historical data

E

experimental effect (change in the dependent variable due to the independent variable)

Key-informant technique

gathering information from those thought to be knowledgeable on the issues relevant to the problem

Secondary data

information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand

Primary data

information that is developed or gathered by the researcher specifically for the research project at hand

Experimental design

is a procedure for devising an experimental setting such that a change in a dependent variable may be attributed solely to the change in an independent variable.

research design

is a set of advance decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information.

Packaged information

is a type of secondary data in which the data collected and/or the process of collecting the data are prepackaged for all users.

Record

is a unit of information in a database.

Experiment

is defined as manipulating an independent variable to see how it affects a dependent variable while also controlling the effects of additional extraneous variables.

Standard test market

is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels

Data mining

is the name for software that helps managers make sense out of seemingly senseless masses of information contained in databases.

Test marketing

is the phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting.

Database marketing

is the process of building and maintaining customer (internal) databases and other (internal) databases for the purpose of contacting, transacting, and building relationships. Examples: CRM and data mining.

American Factfinder

is the tool used for searching data collected by the ACS.

Descriptive research

is undertaken to describe answers to questions of who, what, where, when, and how.

"true" experimental design

isolates the effects of the independent variable on the dependent variable while controlling for the effects of any extraneous variables.

X

manipulation, or change, of an independent variable

Causality

may be thought of as understanding a phenomenon in terms of conditional statements of the form "If x, then y."

Cross-sectional studies

measure units from a sample of the population at only one point in time (or "snapshot").

O

measurement, or observation, of a dependent variable

Quasi experimental design

ones that do not necessarily control for the effects of extraneous variables on our dependent variable.

Syndicated services data

provided by firms that collect data in a standard format and make them available to subscribing firms—highly specialized and not available in libraries.

R

random assignment of subjects to experimental and control groups

Experience surveys

refer to gathering information from those to be knowledgeable on the issues relevant to the research problem

Databse

refers to a collection of data and information describing items of interest.

packaged services

refers to a prepackaged marketing research process that is used to generate information for a particular user.

Posttest

refers to measuring the dependent variable after changing the independent variable.

Pretest

refers to the measurement of the dependent variable taken prior to changing the independent variable.

Micromarketing

refers to using a differentiated marketing mix for specific customer segments, sometimes fine-tuned for the individual shopper.

Focus group

small groups brought together and guided by a moderator through an unstructured, spontaneous discussion for the purpose of gaining information relevant to the research problem

Published sources

sources of information prepared for public distribution and normally found in libraries or a variety of other entities, such as trade organizations.

Brand switching studies

studies examining how many consumers switched brands

Fields

subcomponents of information composing records.

Experimental group

the group that has been exposed to a change in the independent variable

Secondary data analysis

the process of searching for interpreting existing information relevant to the research topic

Market tracking studies

those that measure some variable(s) of interest—such as market share or unit sales—over time

Lead-user survey

used to acquire information from lead users of a new technology

Discontinuous panels (omnibus panels)

vary questions from one panel measurement to the next.

Descriptive research is desirable when...

when we wish to project a study's findings to a larger population, if the study's sample is representative.