Chapter 9 : Marketing Research

Virtually all firms have adopted what? and why? and how much?

Virtually all firms have adopted the marketing concept engage in some marketing research because it offers decision makers many benefits. Some big companies spend millions, while smaller firms are limited-scale research and informal studies.

Marketing Research

the process of planning, collecting, and analyzing data relevant to a marketing decision

List the 7 steps in marketing research project.

1. Identify & formulate the problem/opportunity. 2. Plan the research design & gather secondary data. 3. Specify the sampling procedures. 4. Collect primary data. 5. Analyze the data. 6. Prepare & present the report. 7. Follow up.

How does marketing research help managers? (hint 4 ways)

1. Improves the quality of decision making. 2. Helps managers trace problems. 3. Helps managers understand detailed & complicated relationships. 4. Helps managers serve customers accurately & efficiently.

Explain the 4 types of errors.

1. Measurement error-an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process. This error tends to be larger than sampling error. 2. Sampling error-an error that occurs when a sample somehow does not represent the target population.This error happens because the original people selected to be interviewed either refused to cooperate or were inaccessible. (non-responsive) 3. Frame error-an error that occurs when a sample drawn from a population differs from the target population. ( another type of sampling error). 4. Random error- an error that occurs when the selected sample is an imperfect representation of the overall population.

List the advantages of Internet surveys. (hint 5)

1. Rapid development, real-time reporting. 2. Reduced costs. (by 25-40%) 3. Personalized questions & data. 4. Improved respondent participation. 5. Contact with the hard-to-reach.

Explain the several ways for gathering primary data. (hint there are 9 ways)

1. Survey research- (the most popular) technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes. 2. In-home personal interviews-Although in-home personal interviews often provide high-quality information, they tend to be very expensive because of the interviewers' travel time and mileage costs. 3. Mall intercept Interviews- a survey research method that involves interviewing people in the common areas of shopping malls. (One drawback is that it is hard to get a representative sample of the population. One advantage is the ability of the interviewer to probe when necessary). 3. Computer- assisted personal interviewing- an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer. 4. Computer- assisted self-interviewing- an interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into the computer. ( keying your own answer). 5. Telephone Interviews- Telephone interviews cost less than personal interviews, but cost is rapidly increasing due to respondent refusals to participate. Conducted in CLT facility which is a designated phone room used to conduct the phone interviews. 7. Mail surveys-Mail surveys have several benefits: relatively low cost, elimination of interviewers and field supervisors, centralized control, and actual or promised anonymity for respondents. 8. Executive interview- a type of survey that usually involves interviewing business people at their offices concerning industrial products or services. 9. Focus group-seven to ten people who participate in a group discussion led by a moderator.

What are the methods of conducting online surveys? (hint there are 3).

1. Web survey systems- Designed for web questionnaire construction & delivery. 2. Google consumer surveys- Do-it-yourself web surveys. 3. Online panel providers- prerecruit people who agree to participate in online surveys.

List the advantages & disadvantages of secondary data?

Advantages: save time & $$ Aid in formulating the problem statement. Suggest research methods & data to solve problems. Pinpoint the kids of people to approach. Serve as a basis of comparison for other data. Disadvantages: Does not give adequate detailed information. Quality & accuracy of data maybe a problem.

Explain step 6 : preparing & presenting the report & follow up.

After data analysis, researchers prepare the report and communicate conclusions and recommendations to management. Contents of a report: 1. Concise statement of the research objectives. 2. Brief explanation of research design. 3. Summary of major findings. 4. Conclusion with recommendations.

What are questionnaires? What are the 3 types of questions?

All forms of survey research requires a questionnaire. This ensures that all respondents will be asked the same series of questions. 3 basic types of questions are: 1. Open-ended-an interview question that encourages an answer phrased in the respondent's own words. e.g: What do you think about the new flavor? 2. Closed-ended question-an interview question that asks the respondent to make a selection from a limited list of responses. e.g- Do you like the new flavor (y/no) 3. Scaled-response-a closed-ended question designed to measure the intensity of a respondent's answer. e.g- Besides meant, wotf items do you normally add to tacos that you make at home?

Explain the incredible world of Big Data (define and why is it important to use data visualization)?

Big Data- the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data. Modern databases sometimes contain billions of pieces of data, so the question quickly arose as to how big data could be presenting in a meaningful way. Answer Data visualization. Data visualization- acts an engine for bringing patterns to light- it uncovers subtle patterns form billions of pieces of data. This is important to mangers because it enables managers to share,describe, & explain what big data has uncovered.

Define competitive intelligence.

Competitive Intelligence- an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors. -Sources of competitive intelligence include-the Internet, company salespeople, industry experts, government agencies, suppliers, and industry trade shows.

The task of actual data collection is typically done by ___________.

Contracted field service firm.

When should marketing research be conducted?

Depends on managers' perceptions of its quality, price, and timing When the expected value of research information exceeds the cost of generating the information

Marketing Research has 3 roles ( Define them)

Descriptive- Gathering & presenting factual statements. E.G- what are the consumers' attitudes toward a product & its advertising? Diagnostic- Explaining data. E.G- What impact on sales after a change in the package design? Predictive function- Address "what if " Q's. E.G- such as how can descriptive & diagnostic research be used to predict results of a planned marketing decision?

Which of the following is not a component of marketing research?

Develop marketing concept

Define Ethnographic research Virtual shopping & Experiment

Ethnographic research- the study of human behavior in its natural context; involves observation of behavior and physical setting. Virtual shopping-simulation of an actual retail store environment on a computer screen . Experiment- a method of gathering primary data in which the researcher alters one or more variables while observing the effects of those alterations on another variable.

What are the different types of marketing research?

Exploratory, descriptive, and causal

What are field service firms?

Field Service Firms- a firm that specializes in interviewing respondents on a subcontracted basis. A typical marketing research study involves data collection in several cities, which may require the marketer to work with a comparable number of field service firms. Besides conducting interviews, field service firms provide focus group facilities, mall intercept locations, test product storage, and kitchen facilities to prepare test food products.

Explain the seventh step of Marketing research processes.

Follow up by- Researcher should determine why management did or did not carry out the recommendations.

1. Links the consumer, customer, & public to the marketer through information. 2. Provides data on the effectiveness of a marketing mix & insights for necessary changes. 3. It is the main data source for management information systems.

How does marketing research function? (3 things)

Which of the following is not an example of marketing research projects?

Increasing brand awareness.

Explain SymphonyIRI's Info-Scan & Neuromarketing.

InfoScan- a scanner-based sales-tracking service for the consumer packaged-goods industry Neuro-marketing - Studies the body's responses to marketing stimuli.

Explain the hottest trend in technology today (LOT)

Internet of things- everyday devices like toys, light bulbs, & hot water heaters, connecting wireless to a network to improve their functionality. by 2019 , 69% of consumers plan to have 1 lot device (thermostat or security system) Younger consumers are most likely to adopt connected technologies later on.

Which of the following is false about casual research?

It is used to explore the research problem and provide insight

An automobile manufacturing company wanted to come up with a new model that targets female drivers with ages between 18 and 30. What type of data source should they use during the product development stage?

Market research

Explain the 1st step of Mrp

Marketing Research Problem- Determining what information is needed & how that information can be obtained efficiently & effectively. Marketing Research Objective- The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information. (goal statement) * Managers must combine this information with their own experience & other information to make proper decisions. *

The purpose of ___________ is to try to gather and analyze a specific, well-defined set of data that meet the project's need.

Marketing research

Which of the following is typically not a downside of using public data?

May be expensive

What is the importance of mobile research?

Mobile surveys account for about half of interview responses. It is designed to fit into brief cracks of time. New and better apps make the survey experience easier and more intuitive.

Which of the following is true about probability sampling?

More representative of the population

Explain the common forms of people watching- people research.

Mystery shoppers- researchers posing as customers who gather observational data about a store. Behavioral Targeting (BT)- a form of observation marketing research that combines a consumer's online activity with psychographic and demographic profiles compiled in databases. Can also be done through Social Media Monitoring- the use of automated tools to monitor online buzz, chatter, and conversations.

Increasing response rate can help minimize ___________.

Non-response error.

Define observation research.How does market researcher use this method?

Observation research -a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity. A market researcher using the observation technique witnesses and records information as events occur or compiles evidence from records of past events.

What is the duty of the research team?

Present findings in a meaningful way.

Marketing research may be used to evaluate what? (hint 4 p's )

Product, promotion, distribution, or pricing alternatives.

Explain the planning the research design & gathering primary data.

Research design- specifies which research questions must be answered, how and when to gather data, and how the data will be analyzed. Primary data- information collected for the first time; used for solving the particular problem under investigation. PD provides many advantages such as- 1. Answers specific research questions. 2. Data are current, & source of data is known. 3. Secrecy can be maintained.

In a health survey, people might say that they eat better than they do. This can be seen as a ___________.

Response bias

Explain step 3 in the marketing research processes ( sampling procedures)

Sample- a subset from a larger population. before a sampling plan is chosen first the population must be defined. Universe- the population from which a sample will be drawn. After the universe has been defined, the next question is whether the sample must be representative of the population. If the answer is yes, a probability sample is needed. Otherwise, a non-probability sample might be considered. Probability sample- a sample in which every element in the population has a known statistical likelihood of being selected. One type of probability sample is RANDOM SAMPLE -a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample. Non-probability Sample- any sample in which little or no attempt is made to get a representative cross section of the population. One common form of a non-probability sample is the Convenience sample- a form of non-probability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives.

Why do we use samples instead of the population when doing marketing research?

Saving time

Explain step 2 of marketing research problem: plan the research design & gather secondary data.

Secondary data- Data previously collected for any purpose other than the one at hand. Secondary information within the company (internal) includes: Company's websites, Annual reports, report to stockholders, blogs, product testing results, YouTube, social media posts. External(outside) the company sources include: government agencies, trade & industry association, business periodicals , news media.

Which of the following is not the typical data source for exploratory research?

Surveys

What is management decision problem?

a broad-based problem that uses marketing research in order for managers to take proper actions. (Action oriented.)

Define Scanner-based Research:

a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy.

If a marketer wants to conduct personal interviews in a wide geographic, the most cost-effective way is to sample a few cities instead of traveling all over the region. This is an example of the use of ___________.

cluster (area) sampling

Explain step 5: Analyzing the data

data analysis. The purpose of this analysis is to interpret and draw conclusions from the mass of collected data. The marketing researcher tries to organize and analyze those data by using one or more techniques common to marketing research: one-way frequency counts, cross-tabulations, and more sophisticated statistical analysis.

If more retirees respond to a survey, it will cause the answers to be systematically different from the general population of interest. This will contribute to ___________.

non-response error.

Data pulled from United States Census is an example of ___________.

secondary data

Companies have to pay to get the following type of high-quality data.

syndicated data