Marketing Research Exam 2
Aided Recall
"Do you remember seeing any ads for a personal computer?"
Recognition
"Do you remember seeing this ad for the Mac Pro?"
Unaided Recall
"For what products and brands do you remember seeing ads?"
Treatment
- A reference to an independent variable that has been manipulated by the researcher. For example, a researcher may be investigating the customer benefits of three prototype packaging designs in order to determine which design to use. The independent variable which is manipulated is product packaging. - Term for that independent variable that has been manipulated.
Stimulated Test Market
- A study in which consumer ratings are obtained along with likely or actual purchase data often obtained in a simulated store environment; the data are fed into computer models to produce sales and market share predictions. - Simulated (or laboratory) test markets are a technique that simulates a full-scale test market, but in a limited fashion.
Controlled Test Market
- An entire test program conducted by an outside service in a market in which it can guarantee distribution - Involves contracting the entire test program to an outside service. - The outside service (Market research firm) arranges for (pays for) shelf space on retailers' shelves. (Distribution is guaranteed) - Checkout counter scanners measure the retail sales results
Simmons National Consumer Study
- Brings consumer targets to life with vivid and complete profiles, including lifestyles, attitudes, brand preferences and media use. - The high quality, nationally representative study is the result of a comprehensive, continuously fielded survey of approximately 25,000 U.S. adults, including both English and Spanish speakers. - The study, released quarterly, simplifies and enhances consumer and media research reporting on over 60,000 data elements, including: - Gfk MRI The Survey's vast database of media usage, demographics, psychographics and consumer behavior makes it a powerful resource for penetrating insight into the actions and motivations of adult American consumers - comScore, WebTrends, Nielson
Randomized Groups
- Comparable group individuals are treated the same in all respects except that each group receives only one level of the independent variable. - Allows researchers to make causal inferences - Used to form comparable groups by balancing or averaging subject characteristics across the conditions of the independent variable manipulation.
Virtual Test Markets
- Computer simulations of consumers, companies and the market environment. - The technological basis for this kind of test market is a multi-agent system as well as methods from artificial intelligence. - In a virtual test market, new products or marketing and distribution strategies can be tested without the risk and time constraints discussed above. - Another advantage is the ability to test many different products in one Virtual Test Market as the computer simulation can always be reset to the original situation before the introduction of a new product.
Experiment
- Definition: a scientific investigation in which an investigator manipulates one or more independent variables and observes the degree to which the dependent variables change. - The basic point of an experiment is to change the levels of one or more X variables and examine the resulting impact on Y while at the same time controlling (holding constant) other variable that might impact Y.
Structured Observation
- Definition: method of observation in which the phenomena to be observed (typically behaviors) can be defined precisely along with the categories used to record the phenomena. - Structure: the degree of standardization used with the data collection instrument.
Casual Research
- Definition: type of research in which the major emphasis is on determining cause-and-effect relationships. - Purpose: to test cause and effect relationships - Condition X causes event Y
Descriptive Research
- Describe! - Leads to Casual Research - Definition: research in which the major emphasis is on describing characteristics of a group or the extent to which variables are related.
High Structure Advantages
- Ease of Administration - Ease of Coding & Analysis - Measure of Reliability
Random Error
- Error in measurement due to temporary aspects of the person or measurement situation that affects the measurement in irregular ways - Due to chance and can affect a subject's scores in an unpredictable way from trial to trial - Can increase or decrease in measure - Could be due to unpredictable factors such as fatigue, inattention, mechanical inaccuracy, or simple mistakes - Decreases in random error means that the observed score moves closer to the true score - Example: "B.P. should be 120/80 but is recorded as 110/78"
Systematic Error
- Error in measurement that is also known as constant error because it affects the measurement in a constant way - Predictable errors of measurement - Are unidirectional and consistent with respect to the over or under estimation of the true score - Error is constant and is considered a bias - Example: "Weight scale is off by 5 pounds"
One Group, before-after Design
- Experiment where a measurement is taken from respondents before they receive the experimental treatment condition; the experimental treatment is then introduced, and the post-treatment measurement is taken. - Design used by researchers when only one group group is available for study. - Data are collected before and after experiment on 1 group of subjects - In this design, there is no control group and no randomization
Descriptive Research vs Exploratory Research
- Exploratory Research is flexible, initial research, lay out the groundwork. - Descriptive Research is much more rigid, once groundwork is established. - Requires the clear specification of: Who? What? When? Where? Why? How? .... Before data collection can begin.
Exploratory Research
- Explore! - Leads to Descriptive Research - Definition: research conducted to gain ideas and insights to better define the problem or opportunity confronting a manager.
Measurement
- Higher levels of measurement have all the properties of lower levels of measurement Characteristics: - A ratio scale also has equal intervals - An interval scale also honors the order of measured characteristics - An ordinal scale can be used to place objects into groups
Longitudinal Design
- Is a survey in time - The survey may be given weekly, monthly, annually, biannually, or even more spaced out. - The point is, the survey focuses on how perceptions and opinions change over time. - They often include the exact same people originally surveyed (panel survey) or people of a similar demographic (cohort survey).
Examples of Itemized Ratings Scales
- Likert Summated-ratings scale: Invented by Renis Likert. a self-report technique for attitude measurement in which respondents indicate their degree of agreement or disagreement with several statements - Semantic differential scale: a self-report technique for attitude measurement in which the subjects are asked to check the cell between a set of bipolar adjectives or phrases best describes their feelings toward the object
Interval Scale (Relative Comparison within a scale, interval sizes)
- Measurement in which the assigned numbers allow the comparison of differences among and between measurements - Difference between objects - Common Examples: Temperature; Farenheit - Marketing Examples: Attitudes, opinions, index
Panel Data
- Multi-dimensional data involving measurements over time. - Panel data contain observations of multiple phenomena obtained over multiple time periods for the same firms or individuals.
Levels of Measurement
- Nominal Scale - Ordinal Scale - Interval Scale - Ratio Scale
Why Use Observation Research?
- Observation is often the best method for generating valid data about individuals' behavior. - Using communication methods we can ask a consumer to estimate how many jars of peanut butter he purchased at a particular store in the past year. with observation research, we can know how many jars he purchased at that store in the past year.
Cross Sectional Design
- One point in time - Different Samples - Snapshot of a given point in time, change at a societal level - Some Special Notation
Primary Methods of Administration
- Personal Interviews - Telephone Interviews - Paper-Based Surveys - Online Surveys
Definitions of Measurement
- Professor Hofacker: "rules for assigning numbers to objects in such a way as to represent characteristics of those objects" - Peter D. Bennett: "rules for assigning numbers to objects in such a way as to represent quantities of attributes"
Telephone Interviews (61%)
- Random Digit Dialing (RDD): a technique used in studies using telephone interviews, in which the numbers to be called are randomly generated. - In-Bound Surveys: a method of data collection in which respondents access a survey by telephone or on the web to respond to survey items.
Diary Panels
- Representative group of individuals or households keep track of purchases made or products consumed over a given period of time. - Qualitative research method whereby a selection of respondents will be asked to keep a record of their experiences or observations over a particular period of time.
Scanner Panels
- Scanner data collected from panel members who are issued an ID card that enables their purchases to be linked to their identities. - Bar coded products 12 digits
Standardized Marketing Information
- Secondary data collected by companies that sell the data to multiple companies, allowing the costs of collecting, editing, coding, and analyzing them to be shared. - The data are standardized so that they can be used by multiple companies rather than customized for a specific company. - Commercial sources of data - Because the information is sold to multiple companies, the data must be "standardized" (as opposed to customized for individual companies) - Sometimes referred to as "syndicated research"
Natural Setting
- Subjects are observed in the environment where the behavior normally takes place - Shopping in a store - Using or consuming a product at home
Debriefing
- The process of providing appropriate information to respondents after data have been collected using disguise - under the rights model of ethics, the use of disguise amounts to a violation of the respondent's right to know
Examples of Electrical or Mechanical Observation
- Video Cameras - Bar Code Scanners - Response Latency: Time span between a stimulus and a response or reaction - Galvanometer: An instrument for detecting and measuring small electric currents. - Voice-Pitch Analysis: Technique that examines changes in the relative frequency of the human voice that accompany emotional arousal. It is applied in advertising research to analyse a subject's voice during their responses, to test their feelings and attitudes about a particular advertisement. - Eye Camera
Behavior (the 6 above all lead to this)
- What subjects have done or are doing? - Behavioral data might be obtained by observation or by asking consumers to remember and report their past behaviors.
single-source data in a perfect world
- consumer behavior: media attention, media consumption, purchase, consumption, post-purchase behavior - consumer exposure to marketing actions: advertising, sales promotion, product design, package design, brand name, distribution channel - consumer characteristics: demographics, sociographics, attitudes, awareness, knowledge, intention, needs, motivations
Key Issues for Collecting Information by Observation
- degree of structure: structured, unstructured - degree of disguise: disguised, undisguised - setting: natural, contrived - admin method: human, mechanical
Key Issues for Collecting Information by Communication
- degree of structure: structured, unstructured - degree of disguise: undisguised, disguised - method of administration: personal interview, telephone interview, paper-based survey, online survey
3 Types of Primary Data Research
- exploratory research - descriptive research - casual research
3 General Types of Self-Report Attitudes Scales
- itemized ratings scales - graphic ratings scales - comparative ratings scales
5 Types of Test Markets
- marketing testing - standard test market - controlled test market - stimulated test market - virtual test markets
Ordinal Scale (Order)
- measurement in which numbers are assigned to data on the basis of some order (for example, more than, greater than) of the objects - numbers indicate the relative positions of objects but not the magnitude of differences between them - Examples: Quality rankings, rankings of teams in a tournament - Marketing Examples: Preference rankings, market position, social class
Nominal Scale (number)
- measurement in which numbers are assigned to objects or classes of objects solely for the purpose of identification - numbers identify and classify objects - Common Examples: "social Security numbers, numbering of football players" - Marketing Examples: Brand numbers, store types
Ratio Scale (Natural, absolute, zero which permits comparison of absolute magnitudes of #s)
- measurement that has a natural, or absolute, zero and therefore allows the comparison of absolute magnitudes of the numbers - Zero point is fixed, ratios of scale values can be compared - Common Examples: Length, weight - Marketing Examples: Age, sales, income, costs
Demographic/Socioeconomic
- often used to divide a population into groups (for example, for market segmentation purposes) - Common Demographic or Socioeconomic Variables: age, education, income, gender, occupation, ethnicity
How Do We Select The Groups? (3 Types)
- pre-existing groups - matched groups - randomized groups
Internal Validity
- the degree to which an outcome can be attributed to an experimental variable and not to other factors - lab experiments tend to have higher levels of internal validity.
External Validity
- the degree to which the results of an experiment can be generalized, or extended, to other situations - field experiments tend to have higher levels of external validity.
Measuring Awareness (3 Types)
- unaided recall - aided recall - recognition
2 Methods of Data Collection
1) Communication: a method of data collection involving questioning respondents to secure the desired information using a data collection instrument called a questionnaire. 2) Observation: a method of data collection in which the situation of interest is watched and the relevant data, actions, or behaviors are recorded.
7 Types of Primary Data
1) Demographic/Socioeconomic 2) Personality/Lifestyle 3) Attitudes 4) Awareness/Knowledge 5) Intention 6) Motivation 7) Behavior
3 Purposes of Descriptive Research
1) Describe the characteristics of certain groups 2) Estimate the proportion of people who behave in a certain way 3) Make specific prediction
Marketing Research Process - How to get started when searching published sources of secondary data
1) Identify what you want to know and what you already know about your topic. 2) Develop a list of key terms and names. 3) Conduct an online search of relevant databases and Web sites. 4) Compile the information you have found: Rework the list of keywords and authors if necessary. 5) Consult a reference librarian inside your firm, at a public library, or at a university library. 6) Identify authorities in the subject matter and consult with them.
2 Types of Experiments
1) Laboratory Experiment - a study in which investigators create a situation with exact conditions in order to control some variables and manipulate others 2) Field Experiment - a study in a realistic setting in which one or more independent variables are manipulated while carefully controlling conditions to the extent that the setting permits
Classification of Descriptive Studies
1) Longitudinal Study: Investigation involving a fixed sample of elements that is measured repeatedly through time. 2) Cross-Sectional Study: Investigation involving a sample of elements selected from the population of interest that are measured at a single point in time.
Marketing Testing
A controlled experiment done in a limited but carefully selected sector of the marketplace.
Self Report
A method of assessing attitudes in which individuals are asked directly for their beliefs about or feelings toward an object or class of objects - The most common approach to measuring attitudes
Open-Ended Questions
A question in which respondents are free to reply in their own words rather than being limited to choosing from among a set of alternatives
Standard Test Market
A test market in which the company sells the product through its normal distribution channels (Wholesalers, retailers)
Reliability
Ability of a measure to obtain similar scores for the same object, trait, or construct across time, across different evaluators, or across the items forming the measure - Tool is consistent, persistent, reproducible - Free from error
Experiment (Step 1)
An empirical investigation that tests for hypothesized relationships between dependent variables and manipulated independent variables
Radio
Arbitron Radio Ratings - Primarily a local market radio audience research company. - The company previously measured local television audiences but stopped producing local television ratings in 1993. - Their last television-rating book was published for the November 1993 survey.
Evidence of Causality Types
Because we can never know for certain that we have eliminated all other possible causes of an effect, we can never state with certainty that x caused y - consistent variation, time order, elimination of other explanations
Communication vs Observation
Communication: versatility, speed, cost Observation: objectivity, accuracy
2 Types of Longitudinal Panels
Continuous Panel: a fixed sample of respondents who are measured repeatedly over time with respect to the same variables. Discontinuous Panel: a fixed sample of respondents who are measured repeatedly over time but on variables that change from measurement to measurement.
Longitudinal Studies
Data collected at different points in time using: - Successive (different samples in a tracking or cohort study) - Same sample in panel study - Several points in time - Change at the individual level
Attitudes
Definition: An individual's overall evaluation of something - marketers often measure people's attitudes toward companies, products, and services. they also measure many "attitude-like" variables including value, quality, and satisfaction.
Intention
Definition: Anticipated or planned future behavior - Marketers often need this type of information to assess demand for a product or service. - Estimating demand for tangible goods and intangible services accurately is one of the most difficult tasks a marketing researcher faces *->* Definitely would buy *->* Probably would buy *->* Undecided *->* Probably would not buy *->* Definitely would not buy
Motivation
Definition: a need, a want, a drive, a wish, a desire, an impulse, or any inner state that energizes, activates, moves, directs, or channels behavior toward goals. - If we understand what drives consumer behavior, we are in a better position to anticipate consumer needs and offer products and services that satisfy those needs.
Personal Interviews (67%)
Definition: direct, face-to-face conversation between a representative of the research organization, the interviewer, and a respondent or interviewer Characteristics: - Can be conducted in lots of different locations (including malls using mall intercepts) - Generally strong sampling control (including higher response rates) - Great flexibility, but higher levels of interviewer bias - Time and cost intensive
Awareness/Knowledge
Definition: insight into, or understanding of facts about, some object or phenomenon - marketers often want to know what individuals know or believe about products, brands, companies, advertisements, and so on.
Disguise Observation
Definition: the amount of knowledge people have about a study in which they are participating. - Subjects are not aware that they are being observed - Ethical Considerations ---> Debriefing
The Ethics of Disguise
Disguise and Debriefing
Elimination of Other Explanations
Evidence that forces the elimination of factors other than x as the cause of y
Time Order
Evidence that shows x occurs before y
Consistent Variation
Evidence that x and y occur or vary together in the way predicted by hypothesis
Human Observation
Individuals are trained to systematically observe a phenomenon and to record on the observational form the specific events that takes place
3 Necessary Conditions
Is there Cause and Effect? - Cause and Effect appear together - The cause precedes the effect - There are no competing explanations
Clickstream data
List of all the pages viewed by a visitor, presented in the order the pages were viewed, also defined as the 'succession of mouse clicks' that each visitor makes.
Matched Groups
May be used to create comparable groups when there are too few subjects available for random assignment to work effectively.
Mystery Shopping
Mystery shoppers might be used to gauge the aesthetics and appeal of baked goods displays
Internet
Nielson Digital Voice ComScore Mobile Metrix
Other Considerations in Designing Scales
Numbers of items in a scale - Global measures (overall measures) vs. Composite Measures (do you need info. about components) Number of Scale Positions - Odd or Even Number? Including a "don't know" or "not applicable" response category
Personality/Lifestyle
Personality: Normal patterns of behavior exhibited by an individual; the attributes, traits, and mannerisms that distinguish one individual from another Lifestyle: How individuals live, what interest them, their values, and what they like
Pre-Existing Groups
Pre-existing differences among participants in the intact group
Fixed-Alternative Questions
Questions in which the responses are limited to stated alternatives - Extremely unfavorable - Unfavorable - Neither favorable nor unfavorable - Favorable - Extremely Favorable
High Structure Disadvantages
Response Bias - Forced Choice - Omitted Response - Precision of Response
Type of Cross-Sectional Survey
Sample Survey: cross-sectional study in which the sample is selected to be representative of the target population and in which the emphasis is on the generation of summary statistics such as averages and percentages
Starch Magazine Ad Readership - The world's leading ad measurement service. - Starch provides advertisers with proof of advertising effectiveness. - The surveys are conducted by means of personal interviews with readers of specific issues of newspapers, consumer magazines, business and professional publications.
Contrived Setting
Subjects are observed in an environment that has been specially designed for recording their behavior - "Fake" Store - Computer Simulation
Television
Television Nielson TV Ratings - Measurements of the television audience in terms of size (how many people are watching?) & Composition (what kinds of people are watching?)
Disguise
The amount of knowledge people have about a study in which they are participating - Disguise is really useful when knowing the purpose or sponsor is likely to bias respondents' answers, re-creating the natural environment is necessary, particularly in experimental research.
Structure
The degree of standardization used with the data collection instrument
Definition of Interaction
The effect of one independent variable on the dependent variable depends on another independent variable - lack of parallelism - lack of generalizability - synergy or dissynergy
Validity
The extent to which different scores on a measuring instrument reflect true differences among the objects being measured - Tool measures: "What it should" ** A Measure can be reliable but not valid, but a valid measure must be reliable**
Dependent Variable
The variable or construct researchers are seeking to explain
Independent Variable
The variable or construct that predicts or explains the outcome variable of interest
Observed Response
Truth + Systematic Error + Random Error
Constant-Sum Scale
a comparative-ratings scale in which an individual divides a given sum among two or more attributes on some basis, such as importance or favorability
Lagged Variable
a distributed lag model is a model for time series data in which a regression equation is used to predict current values of a dependent variable based on both the current values of an explanatory variable and the lagged (past period) values of this explanatory variable.
Online Surveys (97%)
a method of administration that relies on the web for completing the survey Characteristics: - Explosion in use over the past decade - Email lists and panels are readily available, but it's difficult to know who you are really contacting; response rates are often very low - Good flexibility; visuals and complex material possible - Usually quick and inexpensive
Graphic-Ratings Scales
a scale in which individuals indicate their ratings of an attribute typically by placing a mark at the appropriate point on a line that runs from one extreme of the attribute to the other - Unlimited number of response categories - Continuous Scale
Itemized-ratings scales
a scale on which individuals must indicate their ratings of an attribute or object by selecting the response category that best describes their response to the attribute or object - Limited # of response categories - 5 to 9 categories work well
Comparative-Ratings Scales
a scale requiring subjects to make their ratings as a series of relative judgments or comparisons rather than as independent assessments
Paper Based Surveys (32%)
a survey usually administered by mail to designated respondents with an accompanying cover letter. the respondents return the questionnaire by mail to the research organization. Characteristics: - Lower degree of sampling control (mailing lists often available, but no control over who completes survey, and often low response rates) - No interviewer bias and can offer anonymity, but less flexibility (no explanation or follow-up, no complex materials) - Lower cost than personal or telephone interviews
An Advantage of Digital
line retailers are in an ideal position for conducting field experiments by testing different types or levels of marketing variables simultaneously and examining actual customer response
Unstructured Observation
method of observation in which the researcher has a great deal of flexibility in terms of what to note and record
Electrical or Mechanical Observation
observes a phenomenon and records the events that take place
Time Series Analysis
set of values for a particular variable for many periods of time. - a series of values of a quantity obtained at successive times, often with equal intervals between them.
Undisguised Observation
subjects are aware that they are being observed
Geodemography
the availability of demographic, consumer behavior, and lifestyle data by arbitrary geographic boundaries that are typically quite small
