Chapter 7: Marketing Research
_____% of new products fail test concept before money is invested.
80%
Study of cultures
Ethnography
The list from which sample units will be selected, such as all holders of the GM credit card.
Sampling Frame
Sample, Sampling Unit, Sampling Size and Sampling Frame are all components of what?
Sampling Plan
Method of determining how individuals will be selected.
Sampling Procedure
Random probability sample, convenience sample and judgement sample are types of what?
Sampling Procedures
The number of study participants
Sampling size
Based on surveys of competitors' prices
Competitive pricing analyses
Ethnography is a type of __________ __________ research
Naturalistic Inquiry
Methods that use past performance to predict future market demand
Time Series & Econometric Models
Delivered via email and text, downloadable apps, redemption rates of ___-___%, strong brands most successful, ___% for insert coupons.
15-23%; 1.2%
Evaluated by measuring recollection of an ad, attitude toward it, or persuasiveness.
Advertising effectiveness research
Studies conducted to examine the effectiveness and appropriateness of advertisements aimed at individual markets.
Advertising effectiveness research
Estimates that rely on developments and findings in similar markets or where the product is in the same life-cycle stage
Analogy Method
__________ __________ can provide useful information or predictions that greatly affect marketing decisions
Analyzed data
You are trying to identify consumers' perceptions about your product in order to develop brand equity. What is important?;
Brand Awareness; Brand Recognition; Brand Loyalty; Brand Association; Perceived Quality
The testing of brand names and logos.
Brand Name Generation
Conducted to assess a product's position in the marketplace relative to the competition.
Brand awareness research
Investigates how consumers' knowledge and recognition of brand name affects their purchasing behavior.
Brand awareness research
MR addresses both __________ and __________ issues that are relevant to the company and its operations.;
Broad; specific
Brand awareness research and consumer segmentations studies are types of:
Buyer Behavior Research
Examines brand preferences, brand attitudes, and brand-related behavior
Buyer Behavior Research
Looks at cause and effect relationships, eliminating or controlling for other extraneous factors that may be responsible for the results and eliminating competing explanations for observed findings.;
Causal (Experimental) Research
Examines cause-and-effect relationships
Causal (experimental) research
Studies investigating whether exiting channels are appropriate for the marketing task at hand
Channel Performance and Coverage Studies
The third step in the marketing research process is:
Collective Primary Data
Determine the price the market will bear for a product category
Competitive pricing analyses
Offer help in determining the overall product strategy, the price, as well as the promotion that is appropriate considering the competition. Studies that help in determining the overall product strategy for the product, the price that the market will bear for the respective product category, and the promotion that is appropriate in light of the competition.
Competitive product studies
MDSS should be:
Computerized, interactive, flexible and discovery oriented
Concept tests that evaluated the product or service offering and the related marketing mix in light of the different target markets.
Concept Development Research
Evaluate viability of new product (and marketing mix) in light of intended target market.;
Concept Development Research
Develop profiles of consumers which are then sorted based on homogenous traits.
Consumer segmentation studies
This helps a company to identify potential target markets, for example, heavy user segments.
Consumer segmentation studies
Used for approaching study respondents
Contact Methods
Quantitative, asses the content of advertisements in a medium with verbal and/or visual content
Content analysis
Subjects within the sampling unit who are easy or convenient to use for the research.
Convenience Sample
Sample composed of individuals who are easy to contact for the researcher.;
Convenience sample
Methods used for predicting the cost of research
Cost analyses
Pricing research is also an important determinant in
Cost analyses, profit analyses, price elasticity studies, competitive pricing analyses
Plant/warehouse location studies address:
Cost of transportation; Real estate costs; Labor costs; Power availability; Tax structure/incentives; Ensure that plant location matches the needs of the company
__________ can be collected using various methods such as mail, e-mail, Internet, telephone, and personal interviews.;
Data
The fourth step in the marketing research process is:
Data Analysis, Recommendations, and Implementation
Steps in the data collection process:
Data collected is coded, entered into the analysis program, and analyzed.
Focus group interviews, in-depth interviews and observational research are methods of what?
Data collection
Questionnaires, paper/pencil measures, and electronic measurement devices are type of what?
Data collection instruments
Study that asks a number of experts to individually estimate market performance, then aggregate and share the results with the rest of the experts. The process can be repeated several times until consensus is reached.
Delphi method
Research methods observing or describing phenomena
Descriptive research
Channel performance and coverage studies and plant/warehouse location studies are a type of what?
Distribution Research
Advantages of _______: Inexpensive, no interviewer effects, reasonable amount of data, fast, reasonable sample control
Disadvantages of _______: Low response rates, lack of flexibility
Psychogalvanometer and Pupillometric meter are types of:;
Electronic Data Collection Instruments
Conducted early in the research process; Further defines the problem that needs to be investigated
Exploratory research
Collected for purposes other than the problem at hand.
External Secondary Data
Can also help identify competitive entrants
First step in channel design
Channel feasibilities
First step in channel design
Evaluate competitors' share of existing channels, relative profitability of each channel, coverage of market served and the cost of each channel function
First step in channel design
Evaluate likely changes in buying patterns, potential competitive entrants, long-run cost pressures and new technologies, such as the internet or multimedia retail kiosks.
First step in channel design
Identifies strengths, weaknesses, and threats of channel performance that will influence channel performance and viability
First step in channel design
SWOT of channel structure
First step in channel design
Qualitative; investigates a question using a moderator and a small group with carefully chosen characteristics; 6-12 participants; recorded/observed by sponsor, reward involved
Focus group interviews
Semantic-differential scale and Liker scale are what types of data collection?
Forced-Choice Questions
examines if consumers reported diet matches the packages identified in their garbage bins;
Garbology
Steps of Concept Development Research
Generate concept statement.; Determine technical feasibility.; Does the technology exist to create the product?; Investigate feasibility of new product idea in the market.; Test the concept with customers.; Define product and target market.
Qualitative; used to discover motivations, attitudes, or feelings toward an issue or product. Unstructured interrogation; one-on-one; used for complex behavioral, decision-making or emotionally laden issue; CATI (cheaper alternative)
In-Depth Interviews
Previously collected firm data in reference to a different question.
Internal Secondary Data
Advantages of _______: Inexpensive, no interviewer effects; Reasonable amount of data, fast
Internet
Disadvantages of _______: Low response rates, not much flexibility, poor sample control
Internet
Subjects selected by the researcher because they are perceived to be representative of the population.
Judgment Sample
A sample thought to be representative of the population.;
Judgment sample
Sales forecasting based on the opinions of different experts.
Jury of expert opinion
A scale that is anchored by "strongly agree" and "strongly disagree" statements;
Likert scale
MDSS: Data, systems, tools, and techniques, complemented by supporting software and hardware designed for the gathering and interpretation of business and environmental data
MDSS
Advantages of _______: Inexpensive, no interview effects, large amounts of data and reasonable sample control
Disadvantages of _______: Slow, low response rates, lack of flexibility
All executive decisions should consider available marketing information.
Market Research
Complex environmental factors complicate the task of marketing researches who should have not only and expertise in the most advanced techniques of scientific inquiry but also a profound understanding of the markets under investigation.
Market Research
Marketing info should constitute basis for all executive action and must be taken into consideration to improve the chances of success in a complex marketing environment.
Market Research
Needs to be carefully evaluated and viewed in light of the purpose for which it was collected.
Market Research
Research does not provide all the answers, but it provides important information for managers to make intelligent decisions.
Market Research
Stems from the need to monitor the forces affecting the company's operations and products.
Market Research
Systematic design, collection, recording, analysis, interpretation, and reporting of information pertinent to a particular marketing decision
Market Research
Evaluate potential of market
Market potential studies
Types of Pricing Research
Market potential studies; Sales potential studies; Sales forecasts studies
MDSS stands for:
Marketing Decision Support Systems
Results obtained from monitoring developments in the marketplace (or firm's environment);
Marketing Intelligence
Studies of premiums, coupons, and deals __________ __________ be appropriate for certain products
May not
Find which advertising medium best fits the product.
Media research
Studies that evaluate media availability and the appropriateness of the medium for a company's message
Media research
Can be both qualitative and quantitative; Observational approach that studies subjects in natural, rather than contrived, settings because behaviors take substantial meaning from their context.
Naturalistic Inquiry
The inability or refusal by a respondent to participate in the study.
Nonresponse
Garbology is a type of __________ research
Observational
Can be both qualitative and quantitative; Studying subject's interactions and reaction to a product, marketing mix, or the environment.
Observational research
Questions with free format responses that the respondent can address as he or she sees appropriate
Open-ended
Offers free-format responses that subject can interpret or address as he/she sees appropriate; uses own words
Open-ended questions
Advantages of _______: High flexibility, high response rate, large amounts of data, reasonably fast, high sample control, personal and focus
Personal and Focus Group Interviews
Disadvantages of _______: Expensive, large interviewer effects
Personal and Focus Group Interviews
Used to evaluate the appropriateness of plant or warehouse locations to the needs of a company
Plant/warehouse location studies
Market projections based on the use of store scanners in weekly and bi-weekly reports
Point-of-sales (POS) Projections
The group being studied or for which the research will be applied, such as all vehicle owners.
Population
Research should assess what customers are seeking by asking: How can we use the differences in __________to segment customers with different needs?
Preferences
Examine the extent to which a particular market is price sensitive
Price elasticity studies
__________ is a key determinant in research studies attempting to project demand
Pricing
Data collected for the purpose of addressing the issue at hand
Primary Data
Descriptive research and causal (experimental) research are research approaches as part of the __________ __________ step of the marketing research process
Problem Definition
Researcher and marketing manager must have a clear understanding of the research problem that needs to be investigated
Problem Definition
The first step in the marketing research process is:
Problem Definition
Translates a marketing problem into a research problem
Problem Definition
Exploratory research is part of the __________ __________ step of the marketing research process
Problem definition
Most is directed at new product development.
Product Research
The following are types of what? Concept development Brand name generation Product testing Competitive product studies; Product packaging design Test marketing
Product Research
Help determine consumers' reaction to various package designs. They also indicate how well the package communicates the product information. Studies that evaluate consumer's reaction to a packaging, the extent to which the package adequately communicates information to the consumer and the distribution implications of the package
Product packaging design studies
Estimates product performance and preference in a given market. Studies that estimate product preference and performance in a given market
Product testing
Estimates of product profit in specific markets
Profit analyses
Evaluates effectiveness and appropriateness of communication with the market, and effectiveness of media.
Promotion Research
Studies of premiums, coupons, and deals - studies that determine the appropriateness and effectiveness of premiums, coupons and deals for a given target market. These are a type of?
Promotion Research
The following are types of what: Studies of premiums, coupons and deals Advertising effectiveness research Media research Sales force compensation, quote and territory studies
Promotion Research
Small number of respondents; Uses open-ended questions; Uses unstructured observation ; Requires interpretation; Subjective results and analysis
Qualitative research
Purchasing secondary data can ensures _________ and __________ and can be less expensive.
Quality; timeliness
Structured questionnaires; Produces numbers; Allows for higher level analysis;
Quantitative research
Individuals selected randomly for a study where each person has a known and equal chance of being selected.
Random Probability Sample
Each individual in the population has a known and equal chance of being included in the study.;
Random probability sample
Free from random errors & consistent
Reliable
Data collection techniques must be:
Reliable and valid
Show what products to produce - ease of use;
Research of Industry, Market Characteristics, and Market Trends
Types of Marketing Research/The Scope and Components of Marketing Research
Research of Industry, market characteristics and market trends; Buyer behavior research; Product research; Distribution research; Promotion research; Pricing research
Different studies pertaining to personal selling activities; they are crucial in helping to determine the appropriate sales and incentive strategies for certain markets
Sales force compensation, quota, and territory studies
Studies pertaining to personal selling activities and incentive strategies.
Sales force compensation, quota, and territory studies
Studies in which sales forecasts are based on the personal observations and predictions of the local sales force.
Sales force composite estimate
Sales Forescasting Techniques include:
Sales force composite estimate; jury of expert opinion; Delphi method; time series & econometric models; analogy method; point-of-sales (POS) projections
Project sales for a particular market
Sales forecasts studies
Studies forecasting optimal sales performance;
Sales potential studies
A subset of the population selected for the study.
Sample
Representative segments of the population of interest
Sample
The individuals who will be included in the research, such as all individuals with incomes over $125,000.
Sample Unit
The list from which sampling units are selected
Sampling frame
Each individual or group included in the study
Sampling unit
Ranges from monitoring developments in the marketing environment to anticipating a product's performance in the marketplace to evaluating consumers' specific brand-related or advertisement-related attitudes.
Scope of Marketing Research
The second step in the marketing research process is:
Secondary Data Research
Data that already exists, collected to address a problem other than the problem currently facing the company (at hand)
Secondary data
Anchored by words with opposite meanings: Good-Bad, Important-Not Important;
Semantic-differential scale
A brand name should be:
Short and easy to remember; Able to tell the consumer something about the quality or function of the product ; Able to be used in different languages ; Consistently communicated
Descriptive research that involves the administration of personal, telephone, or mail questionnaires; high nonresponse rate
Survey research
Advantages of _______: Reasonable cost, few interview effects, reasonable fast, reasonable response rates, reasonable sample control
Telephone
Disadvantages of _______: Lower amounts of data, higher cost
Telephone
Evaluating product performance in select markets that are representative of the target market before launching the product
Test Marketing
Test marketing should:
Test new product performance; Estimate demand; Modify product; Modify marketing mix
A research study by A.C. Nielsen indicated __________ is the key issue for consumers when cleaning; thus, products and promotion need to help consumers save __________.
Time; time
Free from bias
Valid
Research should assess what customers are seeking by asking: How well do __________ __________meet the needs of each segment?
available channels
Another example of __________ __________ is research that determines the product's optimal shelf location. Eye-level is the best shelf space location in most cases.
distribution research
Valuable secondary data can be acquired from specialized __________ __________ __________.
marketing research firms
Researchers select different __________ __________ depending on research needs, the size of the sample, the amount of data needed, etc.;
research methods
The most critical criterion when selecting a __________ __________ is how well the sample represents the population. It may not be practical to get a truly representative sample.
sampling method
Research should assess what customers are seeking by asking: What __________ __________ do the target customers value?
service attributes
Once data is collected, entered and analyzed, researchers then __________ _____ __________ and put them in a form that is meaningful and that will answer the problems introduced in the beginning of the research process. ;
tabulate the results