MKT 424 Research

Defining the research purpose

(Draw the Diagram)

Ethical Considerations in the Research Process

- Advocacy research - Representative sample - Distorted data collection -Data Falsification -Improper statistical manipulations - Confidentiality of proprietary studies.

Survey Research

- Ask questions - Various methodologies

Experimental research

- Controlled experiments in a lab -Field Experiments

Sampling plan

- Define population - Sample selection - J.P Morgan Chase survey - 500 individuals -accessed account information - sample biased

4 functions marketing research

- Exploratory - Descriptive - Diagnostic - Predictive

Making data usable

- Frequency distribution -Percentage Distribution -Probability

Components of a research proposal

- Introduction and background information -research objectives or questions -Research Design - Target population - Sample size and method - Data collection methodology - Cost and time schedule for study

Ethical Considerations in Research Proposal

- Low ball pricing (hidden fees) - Bait and switch (get them on something cheaper then switch them to a higher price so they can achieve their desired result.

Basic concept in measurement

- Measurement - Concept - Operational Definition - Operationalization - Scales - Correspondence rules - Constructs - Variable

Causal research methods of collecting data

- Observation - Experiments

Observation Research

- Observe behaviors - observe results of behaviors EX: Mystery shoppers & online tracking

Research Design

- Plan used to address the research problem, question, and hypothesis. - Research design decisions: -- Descriptive or causal approach -- How will data be collected? : - Survey research - Observation research - Experimental research

Ethical Considerations RFP

- Securing multiple bids to satisfy policy - Sharing competitive bid information - Exploiting research firm expertise - Making false promises

Applied Research

- Solve a specific marketing -investigate a marketing phenomenon or opportunity - understand results of previous decisions. EX: mood media- company that makes the music playlists at stores- music at lunch hour is faster paced music.

Descriptive research methods of collecting data

- Surveys - Observation -Experiments

Causal Research

- Typically requires experimentation -- Relationship must be true cause and effect. -- Not a spurious associations -Determining cause and effect --Temporal sequence --Concomitant variation ** Controlling and isolating variables

Basic Research

- more theoretical in nature - advances general marketing knowledge -verifies a marketing theory or concept -EX: your research article for the research article assignment.

Number of categories

-3 categories lack discriminate ability -Reliability increases with more categories -10 categories may be too many -5 to 7 categories optimal -Odd or even number of categories

Scales

-A device providing a range of values that correspond to different values in a concept being measured. -A series of items arranged along a continuous spectrum of values for the purpose of quantification. •Properties: uniquely classify, preserve order, set equal intervals, and have a natural zero. EX: (Question) Scale 1-5

Percentage Distribution

-A frequency distribution organized into a table (or graph) that summarizes percentage values associated with particular values of a variable.

Concept

-A generalized idea about a class of objects, attributes, occurrences, or processes. EX: age, # of kids, satisfaction

Variable

-Anything that varies or changes from one instance to another; can exhibit differences in value, usually in magnitude or strength, or in direction. -Example Hypothesis: Customer satisfaction is positively related to purchase intentions. -What are the variables in the hypothesis? How would you measure these constructs? •Customer Satisfaction •Purchase Intentions EX: On a scale of 1-10 how satisfied are you with your purchase today?

No Opinion & Don't Know Options

-Center point of odd-numbered points -Presence encourages use -Usually have no opinion or don't know

Q-Sort Scales

-Comparative scale to rank large sets of items -Sort items into groups based on some criteria -Quota size for each group may be determined by researcher resulting in normal distribution curve -Ordinal data is produced by this technique

Constructs

-Concepts measured with multiple variables.

Correspondence rule:

-Indicate the way that a certain value on a scale corresponds to some true value of a concept. EX: Circle 1-3 but it will actually count as a 5

Disadvantages of Rank-Order Scales

-List may not be categorically exhaustive -Respondent may not have knowledge or experience with all items listed -Difficult to rank middle items in a long list -Criteria used in the ranking may not be clear -Produces ordinal data, not interval

Measures of central Tendency

-Mode: a descriptive analysis measure defined as that value in a string of numbers that occurs most often -Median: expresses that value whose occurrence lies in the middle of an ordered set of values -Mean (or average):

Types of scales

-Nominal: classifies/identifies by a quality of the object -Ordinal: classifies using a ranking order of objects -Interval: quantifies objects in order on a continuum -Ratio: classifies by comparison to a standard

Forced vs non-forced choices

-Odd number of points allow neutral position -Even number of points forces a choice

Comparative Scale

-Rank-order -Q-sort -Paired comparison -Constant sum = Semantic differential Likert

Methods of Exploratory Research Design

-Secondary research -Focus groups - In-depth interviews - Pilot studies -- Limited respondents -- may have open-ended questions ** to see what has already been done - do interviews, small scale studies etc. -observation studies EX: the people and the time they spent int he museum room

Operational Definition

-Specifies what the researcher must do to measure the concept under investigation The process of coming up with scales (questions)

Probability

-The long-run relative frequency with which an event will occur.

Measurement

-The process of describing some property of a phenomenon of interest, usually by assigning numbers in a reliable and valid way. -Measurement: determining how much of a property is possessed by an object

Operationalization

-The process of identifying scales that correspond to variance in a concept to be involved in a research process.

Quantitative Research

-Types of research: Descriptive/Casual -Sample Size: Large -Types of Questions: Structured -Types of analysis: Objective, Statistical -Generalizability: High -Costs (typically): More Expensive -Timeframe: Longer

Qualitative Research

-Types of research: Exploratory -Sample Size: Small -Types of Questions: Unstructured -Types of analysis: Subjective -Generalizability: Limited -Costs (typically): Lower -Timeframe: Shorter

Types of category description

-Verbal or written description -Number •All positive numbers •Negative and positive numbers -Anchor descriptions only -Education level of respondents -Strength of anchor words

In house vs. Outsourcing

-costs -level of specialization and knowledge -staff workload -quality of data Ex: Coca-Cola: In-house MKT research teams MKT Research Firms- outhouse - biased can be built if you keep research in house.

Factors impacting the marketing research industry

-technology -research panels and databases -economics -competition (we need the information much quicker)

Nominal Scales

-those that use only labels Descriptive purposes only, cant put it in any order, cant put distances between it. -Lowest scale form - Identification or classification -Analysis is limited to frequency counts and percentages. -Response category options must be: --Mutually exclusive --Categorically Exhaustive EX: football player jersey is #1, does not mean that he is the best player on the team. EX: Male/Female

Ordinal Scales

-those with which the researcher can rank-order the respondents or responses -Keyword: RANK or ORDER -Has nominal properties. We can put data in order, it has a ranking property. •Response category options -Mutually exclusive and categorically exhaustive •Equal intervals between categories cannot be assumed •Analysis is limited -Mathematical operations cannot be performed -Frequency counts and percentages EX: grading assignment A,B,C,D

the scientific method

1. Current knowledge 2. Theory and Hypothesis 3. Hypothesis test 4. Conclusion --> Theory advancement --> New knowledge. *managerial implications- showing what a manager could do w/ that information. * Research articles will follow this process.

5 types of statistical analysis used by marketing researchers

1. Descriptive analysis 2. Inference Analysis 3. Difference Analysis 4. Association Analysis 5. Predictive Analysis

Ethical considerations in research

1. Request for research proposal (RFP) 2. Research proposal 3. Research Process 4. Respondents

Marketing Research Process

1. Research Purpose 2. Research Design 3. Sampling Plan 4. Data Collection 5. Data Analysis 6. Research Report

Four Functions of Data Summarization

1. Summarizes the Data -The average respondent's age is 44. 2. Applies understandable conceptualizations -The pie graph shows that most respondents are between 35 and 55 years of age. 3. Communicates underlying patterns -Satisfied customers recommend our brand to their friends. 4. Generalizes sample finding to the population. -This means that from 32% to 40% of the target market purchases our brand on a regular basis.

Historical Stages of Marketing Research

1879: First marketing research 1930: Foundation of marketing research 1975: Golden age of marketing research 1995: Insight stage marketing research 2010: Consultative stage marketing research. (Know what stage we are in, Be familiar with the stages, not the dates)

Frequency distribution

A set of data organized by summarizing the number of times a particular value of a variable occurs.

Frequently used marketing scales

Comparative and Non-Comparative scales

Data Collection and Analysis

Data collection - Surveys (Qualtrics) -Observation -Experiments Data Analysis - Make sense of data (SPSS) - Turn data into information

A student bookstore conducted a series of group interviews with several students in order to try to understand why textbook sales were declining, despite the fact that enrollment had increased during the semester. Which function of marketing research does this illustrate?

Explorative?

Full service and Boutique Firms

Full service: - Capable of conducting all types of research Boutique Firms: - Specialize in 1.) Types of research (Qualitative, modeling) 2.) Types of audience

Non-Comparative Scales

Graphical rating Itemized rating --> Semantic Differential Likert

Typical Research Purposes

Investigating problems which may cause symptoms - Poor brand image - lower quality products - High pricing - Poor customer service - Poor distribution - New competition Investigating opportunities - New product or service development -Site selection for store -Shifts in consumer wants Investigating Phenomena - Top 100 Advertisers - Endorser Q-Ratings Q-score= What advertisers use to choose who will endorse their products.

Marketing Concept

Is a business philosophy that holds that the key to achieving organizational goals consists of the company's being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.

An effective marketing stategy requires information. Information should be:

Objective (Unbiased) Accurate TImely

Exploratory research design

Preliminary examination of a problem/ situation. - Goal is to help understand problem or situation. - Not definitive - Typically, first stage in a more comprehensive study. - Can be used to develop hypothesis.

Preparing the research proposal

Request for Proposal (RFP) - Provides study background -Research questions -Describes population - Includes expectations for 1. Sample Size 2. Time frame for study completion

Marketing Research

Systematic gathering of marketing-related data to produce information that can be used in decision-making. - Understanding a specific location.

Reliability

The degree to which a measure is free from random error and provides consistent results over time. -IF we test something over and over again, we will get CONSISTENT RESULTS. -Keyword: INTERNAL CONSISTENCY. Homogeneity of the measure AKA: all of those items are basically asking the same question. - For EX: the survey before has a lot of similar questions. -RELIABILITY IS A NECESSARY BUT NOT SUFFICIENT CONDITION FOR VALIDITY.

Marketing Research

The function that 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 actions; monitor marketing performance; and improve the understanding of marketing as a process.

Interval Scale

Those in which the distance between each descriptor is equal •Distance between numbers considered to be equal •Also contain properties of classification and order •Response category options -Mutually exclusive and categorically exhaustive •Preferred type of scale to measure attitudes •Equal intervals allows for computation -Means -Standard deviations -Differences in means Statistical tests such as t-test and ANOVA

The philosophy of science

Underlies researchers' efforts to make sense of the world -assumes causes can be identified -values a more general understanding -allows theory to be tested (empirically verifiable) -requires that researches remain open to possibility of change - data needs to be emperical

marketing research

a process used by business to collect, analyze, and interpret information used to make sounds business decisions and successfully manage the business.

Market research

a process used to define the size, location, and/or makeup of the market for a product or service. (Understanding a specific location)

descriptive research design

answers questions of who, what, when. - Marketers understand the problem or situation. - Goal- find additional information to make an informed decision. - Most frequently used type of research - Cannot prove causality- only describes relationships. ** most commonly used research

Marketing Strategy

consists of selecting a segment of the market as the company's target market and designing the proper "mix" of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.

causal research

determines whether one variable causes another - because / cause & effect

Types of research designs

exploratory research design, descriptive research design, causal research design

standard deviation

indicates the degree of variation in a way that can be translated into a bell-shaped curve distribution

Marketing

is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Value: When we sale, we are also selling the experience.

Ratio Scales

ones in which a true zero exists •Highest order scale •Includes properties of nominal, ordinal, and interval scales •Has an absolute zero point •Data point represent actual quantities of variable •Usually phrased as fill-in-the blank questions

Validity

refers to the ability of a measurement scale to measure what it proposes to measure and the degree to which it is free of both systematic and random error. Is looking at the accuracy of the measure. Keyword: accuracy

Three criteria for Good Measurement

reliability, validity, sensitivity

Scale measures

those in which the distance between each level is known - Interval scales & Ratio scales

Measures of Variability

•All measures of variability are concerned with depicting the "typical" difference between the values in a set of values. •There are four measures of variability: -Frequency distribution -Range -Variance -Standard deviation

Rank- Order Scales

•Comparative scale •Tend to mimic reality •Consumers familiar with items being ranked •Best for 5 or fewer items •Graphing results -Ranking of one of the items -Ranking top choice

Semantic Differential Scales

•Finite number of choices •Anchored by dichotomous words or phrases •Can be comparative or non-comparative scale •Scales usually have 5 or 7 points •Interval data •Scale anchors must be bipolar opposites •Easily answered when proper anchors are chosen •Often used to assess brand image or personality •Have high reliability •Halo effect may occur

Considerations in Creating Marketing scales

•Number of categories •Balanced versus unbalanced scales •No opinion and don't know options •Forced versus non-forced choices •Type of category description

Graphical Rating Scales

•Place a response anywhere on a continuous line •Non-comparative scale •Scales are normally anchored with antonyms •Produces interval level •Means and standard deviations can be reported

Scale Development

•Process of assigning numbers to abstract concepts •Unidimensional scales •Multidimensional scales

Characteristics of a good scale

•Relatively easy for respondents to understand •Clear and concise •Provides useful data •Discriminates well •Limited response bias •Valid and reliable

Attitude measurement

•Relatively enduring predispositions to respond to an object - such as a brand, a spokesperson, an ad, an event, or a store - in a consistent fashion. •Three components -cognitive, affective, behavioral •Attitudes cannot be observed -Hypothetical construct or latent construct

Scale Category Considerations

•Research objectives •Information needs •Research participants •Mode of administration

Constant Sum Scales

•Respondents allocate points among various attributes •10 or fewer items should be ranked •Relative distance between ratings can be assessed •Produces ratio level data •Used to assess brand preference or importance of attributes, benefits, or other characteristics

Itemized Rating Scales

•Respondents choose a response from a select number of items or categories •Non-comparative scale •Scales may use words or pictures for categories •Easy for respondents to understand and use •Most produce interval level data when it can be assumed that equal distance between category responses exists •Some produce ordinal data if equal distance cannot be assumed

Paired Comparison Scales

•Respondents choose between two •Easier for respondents than ranking a series of items •Overcomes order bias associated with rank-order scales •All possible combinations must be listed •Limited number of items can be compared •Combinations [(n) * (n-1) / 2]

Ethical responsibilities to Research Respondents

•Respondents have the right not to participate •Respondents have the right to stop participating in a research study at anytime •Respondents have the right to require that their information remain confidential •Respondents have the right to require that personal information be deleted after use •Respondents have the right to the expectation of safety and freedom from harm

Likert Scales

•Respondents indicate level of agreement or disagreement with a series of statements •Very popular in marketing research •Easy to create •Easy for respondents to understand and answer •Can be comparative or non-comparative •Use 5 or 7 points •Produces interval level data •Scales should include reversed items

Descriptive Analysis

•Two sets of measures are used extensively to describe the information obtained in a sample. -Measures of central tendency or measures that describe the "typical" respondent or response -Measures of variability or measures that describe how similar (dissimilar) respondents or responses are to (from) "typical" respondents or responses

range

•identifies the distance between lowest value (minimum) and the highest value (maximum) in an ordered set of values