Chapter 10: Marketing Research

What challenges do technological advances pose for the ethics of marketing research?

As technology continues to advance, the potential threats to consumers' personal information grow in number and intensity.

questionnaire

A form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives; questions can be either unstructured or structured.

focus group interviews

A research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry.

marketing research

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

survey

A systematic means of collecting information from people that generally uses a questionnaire.

experimental research (experiment)

A type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable.

scanner data

A type of syndicated external secondary data used in quantitative research that is obtained form scanner readings of UPC codes at check-out counters.

observation

An exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny.

In-depth interview

An exploratory research technique in which trained researches ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue.

structured questions

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

Summarize the differences between secondary data and primary data.

Compared with primary research, secondary research is quicker, easier, and generally less expensive. The ability to use secondary data also requires less methodological expertise. However, because secondary research is collected for reasons other than those pertaining to the specific problem at hand, the information may be dated, biased, or simply not specific enough to answer the research questions. Primary research, in contrast, can be designed to answer very specific questions, but it also tends to be more expensive and time-consuming.

syndicated data

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

primary data

Data collected to address specific research needs.

sentiment mining

Data gathered by evaluating customer comments posted through social media sites such as Facebook and Twitter.

What are the types of quantitative research?

Experiments, surveys, scanner, and panel.

Describe the various secondary data sources.

External secondary data comprise information that has been collected from outside sources, such as the US census, the Internet, books, articles, trade associations, or syndicated data services. Internal secondary data can also be derived from internal company records such as sales, customer lists, and other company reports.

qualitative research

Informal research methods, including observation, following social media sites, in-depth interviews, focus groups, and projective techniques.

panel data

Information collected from a group of consumers.

secondary data

Pieces of information that have already been collected from other sources and usually readily available.

sample

A group of customers who represent the customers of interest in a research study.

What is the difference between data and information?

Data con be defined as raw numbers or other factual information that, on their own, have limited value to marketers. However, when the data are interpreted, they become information.

What are the steps in the marketing research process?

Define objectives and research needs, designing the research project, deciding on the data collection process and collecting the data, analyze and interpret the data, prepare the findings for presentation.

biometric data

Digital scanning of the physiological or behavioral characteristics of individuals as a means of identification.

data

Raw numbers or facts.

data warehouses

Large computer files that store millions and even billions of pieces of individual data.

Under what circumstances is it ethical to use consumer information in marketing research?

Many customers demand increasing control over the information that has been collected about them. Companies must disclose their privacy practices to customers before using information.

Examine the circumstances in which collecting information on consumers is ethical.

Marketing researchers should gain permission to collect information on consumers, and it should be for the sole purpose of conducting marketing research endeavors. Information should not be collected under the guise of marketing research when the intent is to sell products or to fundraise. In addition, marketers must take responsibility for protecting any information they collect.

What are the types of qualitative research?

Observation, in-depth interviews, focus groups, and social media

unstructured questions

Open-ended questions that allow respondents to answer in their own words.

information

Organized, analyzed, interpreted data that offer value to marketers.

Describe the various primary data collection techniques.

Primary data are collected to address specific research needs. Techniques used for primary qualitative research include observation, social media, in-depth interviews, and focus groups. techniques used for primary quantitative research include surveys (both offline and online), scanner, panel, and experiments.

What is the difference between internal and external secondary research?

Secondary data might come from free or very inexpensive external sources, such as census data, information from trade associations, and reports published in magazines. Secondary sources can also be accessed through internal sources, including the company's sales invoices, customer lists, and other reports generated by the company itself.

quantitative research

Structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data.

Identify the five steps in the marketing research process.

The first step is to define objectives and research needs, which sounds so simple that managers often gloss over it. But this step is crucial to the success of any research project because, quite basically, the research must answer those questions that are important for making decisions. In the second step, designing the research project, researchers identify the type of data that is needed, whether primary or secondary, on the basis of the objectives of the project from step 1 and then determine the type of research that enables them to collect those data. The third step involves deciding on the data collection process and collecting teh data. The process usually starts with qualitative research methods such as observation, in-depth interviews, or focus groups. The information gleaned from the qualitative research is then used in quantitative research, which may include a survey, an experiment, or the use of scanner and panel data. The fourth step is to analyze and interpret the data and develop insights. the fifth and final step is to develop an action plan and implementation. Although these steps appear to progress linearly, researchers often work backward and forward throughout the process as they learn at each step.

churn

The number of consumers who stop using a product or service, divided by the average number of consumers of that product or service.

data mining

The use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables.