Marketing Research Midterm Study

True or False: Research plans are only used when a company hires a research consulting firm.

False

What is environmental scanning?

gathering and fact-finding designed to detect indications of environmental changes in their initial stages of development

Primary research is

original research

Quantitative Research:

results are measured and can be counted; methodologies strive for large enough sample size so results can be projected upon a larger population

Demographics are

statistics that describe target consumers' attributes

Each is part of the research plan, except ______

study conclusions

Describe focus groups (type and purpose)

- Primary / Qualitative - New product development, brainstorming solutions, gauging new ideas

Advantages of Secondary Research

- Readily available data - Typically inexpensive - No sample access required - Supports subsequent primary research - Data likely structured to organizational requirements - May be the only information on certain objectives

Advantages of Research Consultancy

- Remain objective, unbiased since there is not stake in the outcome - Knowledge, expertise in latest methodologies and industry developments - Access to comparative data (can help benchmark against competitors) - Staff not pulled from current company duties

Advantages of observational research:

-Alleviates respondent bias -Provides unique insight into behaviors

Describe interviews (type and purpose)

-Primary / Qualitative -B2B research, examining Interactions with complex or sensitive products and services

Describe ethnographic research (type and purpose)

-Primary / Qualitative -Captures authentic behaviors, reactions, and interactions involving a product, product concept, or service in a real-world setting.

Describe Mystery shopping (type and purpose)

-Primary / Qualitative -Company protocol compliance; may include product testing component

Describe Experiments (type and purpose)

-Primary / Quantitative -Testing causes, solutions, or interventions

Describe secondary research (type and purpose)

-Secondary / Quantitative or Qualitative -Monitoring competitor and market trends, benchmarking against competitor performance

When should marketing research be conducted?

-Where there is a high level of uncertainty -When value of research information exceeds the cost of generating the information

What is important to consider when coordinating a focus group?

-although it is a qualitative research method, it is important to strive for a representative sample of the target market -Representation from desired target market assures opinions and reactions gathered are not over or under represented from any of the segments

What are advantages of observational research?

-can alleviate respondent bias -provides unique insight into behaviors

Types of internal secondary data

-sales data: Data collected on which and how many products, services or memberships are sold. -customer data: Data collected on who products, services or memberships are sold to.

Who conducts marketing research?

1. on-staff research experts to 2. a mix of on-staff and external resources to 3. an external research firm completing all phases

What is the role of a focus group moderator?

1.Build a rapport with participants 2.Allow ideas to flow naturally and keep the group on track so it doesn't diverge off topic (awareness of time limit) 3.Engage members who are not forthcoming 4.Control dominating members

Observational research studies are:

PRIMARY RESEARCH studies that involve observing consumers INTERACTING with a product, service, or venue.

Describe surveys (type and purpose)

Primary / Quantitative When it's important that results can be attributed to the target population at large

Qualitative Research:

gathering of thoughts, opinions, and observations that cannot be expressed in numbers; used for exploratory research and idea generation; used to give meaning behind quantitative results; results cannot be projected upon a larger population

Which of the following is not an advantage to hiring an external research consultancy versus conducting research in-house?

generally cheaper

Advantages of In-house Research

- Cheaper if the organization has a sufficient amount of research to conduct - Clearer idea of research objective - More familiar with products and market (may lead to more appropriate data collection tools, strategic recommendations)

Limitations of Secondary Research

- Data may lack specificity / may not fit objective - Data may be outdated - Quality / accuracy of data may be suspect - Inappropriate units of measurement - May not be helpful for entering new markets or attracting new customers

Disadvantages of observational research:

- Examines the HOW, not the WHY - Observers can bias results - Sampling limitations

What are the types of ethnographic research?

- Observation - Virtual & Mobile - Diaries - Passive Tracking

Artifacts

Examining clothes, accessories, belongings of subjects; may help determine trends among a certain age group and geography, for example

Verbal statements

Examining verbal interactions between subjects or between subjects and various personnel (such as in customer service situations); useful for understanding customer service issues

True or False: By identifying the research objective and corresponding research questions, researchers can directly map each project to a definitive methodology.

False

True or False: Focus group ice breaker activities should not venture into the research topic so as not to bias participants.

False

True or False: Focus group participants should never be segmented by usage level of the product category which they are about to discuss.

False

True or False: It is important to interject the researcher's opinions throughout the body of a secondary research report.

False

What can't observational research record?

Thoughts and opinions

Important aspects of mystery shopping to consider:

Tools should generally follow company training and protocol guidelines provided to customer service staff Staff members should not be held to standards they are not aware of

True or False: For observational studies performed in public spaces, subject permission does not need to be granted in order for the study to be considered ethical.

True

True or False: Multiple methodologies can be deployed during the course of a single research project.

True

True or False: Mystery shop tools should follow the training and protocol guidelines provided by the company to customer service staff.

True

True or False: Primary data can be either quantitative or qualitative.

True

True or False: Secondary data can be either qualitative or quantitative.

True

True or False: Secondary research can be exploratory

True

True or False: Secondary research is typically conducted before primary research.

True

A focus group activity in which participants are asked to complete tasks involving a potential product or website while observers watch, listen, and takes notes.

Usability tests

Focus groups

are used to conduct exploratory research; synergy of participants is used to create dialogue around a topic, which can lead to solutions and new ideas

Psychographics are

attitudes and behaviors of the target consumer

All of the following are reputable secondary sources, except ______. a. blogs b. trade associations c. research vendors d. libraries

blogs

Examples of weak/bad/poor/non-credible sources of secondary research

blogs and wikipedia

The following are good uses of focus group methodology:

brainstorming solutions gauging new ideas guiding new product development

How are focus groups segmented?

by product usage levels, geography, or various demographics

What is a poor use of focus group methodology?

ensuring the target population feels the same way as participants

What is one disadvantage of observational research?

examines the "how," not the "why"

Sources of external secondary research include each of the following, except ______. a. existing customer survey results b. population statistics of a target market area c. industry databases d. results of a survey conducted by a trade organization

existing customer survey results

Internal secondary research involves ______.

existing research gathered within a researcher's own company

What are the 3 types of research?

exploratory, descriptive, causal

Secondary research is

existing research

Geodemographic segmentation can be useful for each of the following, except ______. - for examining the viability of opening a new location - for how to attract and communicate with targeted clusters - when identifying weaknesses of a current product in cases whether or not it makes sense to advertise in a particular area

when identifying weaknesses of a current product

What is a research objective?

A compilation of the 1 or 2 overarching research questions that the client is attempting to answer.

What is a research plan?

A formal document that details the research scope, methodology and details regarding data collection and analysis

Advantages of mystery shopping

Allows the researcher to gather data in a real customer service situation as it occurs

Eye movement

Can be helpful to understand levels of engagement; may be monitored by unobtrusive observer

Disadvantages of mystery shopping

Can include researcher bias since some of the factors being recorded are subjective

The three types of research are exploratory, descriptive, and ______.

Causal

Why do we conduct market research?

Companies are faced with a multitude of decisions on a daily basis, and research reduces the risk of decision making.

What is a variable?

Data that has a quantity that can vary

When and why are field experts called in to assist in external research (environmental scans)?

Field experts within an organization hold detailed industry knowledge and likely have access to a network of industry peers, associations and publications. One way to avert biases is to force participants to provide a source for each submission.

What methodologies are used in market research?

Focus Groups Interviews Ethnographic Mystery Shopping Surveys secondary research experiments

What is true about environmental scans?

For results of an environmental scan, there is no specific research objective. Rather, research will be organized around topics specific to a company's environment.

Secondary research might typically come into play in the following situations, except when ______.

Gathering customer satisfaction results regarding a recent product launch

How to determine research methodology?

Identifying the following is a good start at narrowing down the possible options. - risk -cost -time constraints -client's objective -the most appropriate research type

Response times

Measures how long it takes subjects to perform a task, exhibit a behavior, or make a selection.

Describe focus groups

Moderator-led discussion groups among target consumers or other stakeholders. Oftentimes, they are used to conduct EXPLORATORY RESEARCH when a company needs to gain DEEPER INSIGHT on a specific issue.

Physical movement

Observing how consumers move through spaces such as retail stores and other public venues; used for designing optimal spaces

Body language

Observing posture and gestures; body language can help interpret mood and reactions

Spatial behavior

Observing space between individuals and space between individuals and items; closer proximity may signal higher levels of engagement

Which type of data can be used to describe the opinions of a target market overall?

Quantitative

The purpose of market research

REDUCE THE RISK in making BUSINESS DECISIONS.

Facial Expressions

Recording emotions; useful when related to a product or experience

What is true about reporting secondary data

Researchers must be prepared to CREATE several VERSIONS of a report depending on their AUDIENCE.

How is the decision of who will conduct the market research made?

The decision of WHO carries out research is DEPENDENT on the STRUCTURE and RESOURCES of the company needing to address the RESEARCH OBJECTIVE.

What is Ethnographic Market Research?

The method involves gathering qualitative data on how consumers interact with and react to current products, product concepts, and services within a real-world setting.

The following factors can help decide whether or not to engage in market research activities, except ______.

The product's current position in the product life cycle

What are research questions?

The specific queries the researcher wants to answer in addressing the research problem

What makes environmental scanning different from other forms of secondary research?

There is no specific research objective

Why use reputable sources in secondary research?

Using REPUTABLE SOURCES lends credibility to the DATA being compiled, and thus, the RESEARCH DECISION being made using the information.

In observational research, the following can be recorded, ______.

Verbal statements Spatial behavior Body language

How does a research plan become a research proposal?

When research plans are used as contracts between clients and research firms, they are called research proposals.

What is geodemographic segmentation?

a predefined segmentation scheme that uses population characteristics within geographic regions.

All of the following are disadvantages to secondary research, except that ______. a. external secondary data may not be comparable to internal data b. data could be outdated c. all of these are disadvantages d. none of these are disadvantages e. the quality and accuracy must be scrutinized

all of these are disadvantages

What is internal secondary data:

consists of information gathered within a researcher's own company *often referred to as "business intelligence"

The research objective ______.

declares the purpose of conducting the research

Descriptive Research

describes characteristics, opinions, attitudes Describes demographic characteristics, psychographic behaviors as well as opinions held by a market, including consumers and other stakeholdersUsed to help describe phenomena taking place in the marketplace itself, such as competitor behaviors and market trends. Helps answer questions related to who, what, where, why and how

Examples of sources of external secondary research?

industry databases population statistics publicly available primary research conducted by other companies or consortiums industry articles and case studies

What is external secondary research?

information gathered outside a researcher's company

Sales and customer data are considered ______.

internal secondary data

mystery shopping

involves a researcher COVERTLY POSING as a consumer to collect data on how well PROCESSES and PROCEDURES are followed, including customer service protocol.

Mystery shopping

involves a researcher covertly posing as a consumer to collect data on how well processes and procedures are followed, including customer service protocol; allows researcher to gather data in a real customer service situation as it occurs

Exploratory research ______

is used to discover new ideas or brainstorm solutions

Why do we segment customers in market research?

it allows a company to develop products, services, and more targeted communication strategies to reach each customer set

Secondary research is typically ______ and ______ compared to primary research.

less costly; quicker to obtain

Each of the following is part of the role of the moderator, except _____. a. making sure to never deviate from the moderator's guide b. building a rapport with participants c. engaging members who are not forthcoming d. All of these are part of the moderator's role

making sure to never deviate from the moderator's guide

This methodology involves researchers secretly acting as consumers in order to gather data on the customer experience.

mystery shopping

What type of people are most likely to attend a focus group meeting?

people with strong opinions (positive or negative)

Artifacts refer to ______.

the clothes, accessories, and belongings of subjects

What is the most economical and common way to recruit focus group participants?

the company's own customers

Why is ethnographic market research conducted?

this type of market research studies trends, lifestyles, habits, attitudes, and social influences within consumer markets

Exploratory Research

to clarify a question Conducted to clarify a question Used to discover new ideas or brainstorm solutions In market research, often used in new product or service development when testing concepts or generating ideas

Causal Research:

to determine if changes in one variable impacts changes in another variable Aims to determine if changes in one variable impact changes in another variable (or other set of variables) • A variable is anything that has a quantity that varies. (Ex: survey ratings and sales figures)• An independent variable can be tested to see if it causes an effect on other variables. • The variables that the independent variable may impact are called dependent variables. Often carried out by conducting an experiment to prove causality

Ethnographic market research

gives the researcher a better understanding of how a product or service is incorporated into daily functioning and routines. Ethnographic market research methods include observation, virtual & mobile, diaries, and passive tracking

Why is environmental scanning useful?

helpful in detecting early signs of opportunities and threats that may influence its current and future plans.