Data Analysis Exam I

1. Meet with the Client

- Trust between researcher and manager and keep client engaged during process. -Get much info as possible of manager's viewpoint and bg info of problem. Questions: Problem/Opportunity facing? What caused the notice? Why occurred? Likely to happen if nothing change? Ongoing? Hope to accomplish? Actions will you take?

Components of Decision Support Systems

1. Data System 2. Model System 3. Dialog System all yield to information Data System - includes processes used to capture and methods used to store data coming from a number of external/internal sources; creation of a database; privacy and security concerns Model System - includes all routines that allow the user to manipulate the data so as to conduct the kind of analysis the individual desires; collection of analytical tools to interpret database Dialog System - permits users to explore the databases by employing the system models to produce reports that satisfy their particular info needs; user interface of DSS aka language system.

The Marketing Research Process

1. problem Information must be defined -> EXPLORATORY RESEARCH like focus groups/probing interviews (then descriptive like survey then causal cause and effect) 2. Capturing data to satisfy information need -> existing internal or external database/source OR generate new data (collect primary data; retrieve unprocessed data from internal sources) 3. Data Analysis and Interpret Data 4. Prep info reports (to communicate results to managers for decisionmaking)

Choosing a Research Supplier

Advantages: hire suppliers for heavy workload is less expensive, match the project to vendor with greatest expertise, objectivity Selection: when research is really necessary, mgmt unsure of own judgement, other info inadequate. Determine most critical area of uncertainty beforehand. Discuss with research provider. If not, then.... Request-for-proposal - as specifically as possible, the nature of the problem for which research is sought and that asks providers to offer proposals, including cost estimates, about how they would perform the job. ^ given to multiple providers (at least 3) Ask for specific info for each step of research process. Most important to find is expertise of professionals with design, day-to-day, and interpretation. THEN do comparative analysis and evaluate each vendor's understanding of problem, how they address it, and cost/time estimates. Choose long-term partnering relationships for projects, instead of suppliers for each specific project.

Customer Relationship Management

CRM - system that gathers all relevant info about a company's customers and makes it available to employees that interact with customers; to identify and solve customer needs

Case Analyses

Case Analysis - intensive study of selected examples or cases of the phenomenon of interest. (e.g. existing records, observe phenomenon as it occurs, conduct unstructured interview); performed in many ways; see changes in behavior (like extreme, "best" and "worst" situations; Record all relevant data, not just those that support hypothesis. Interpretation of diverse mass info = sort data and see big picture insights that apply to multiple cases. Ethnography - detailed observation of consumers during ordinary daily lives using direct observation, interviews, video/audio recording; based on real behavior Benchmarking - using organizations that excel at some function as sources of ideas for improvement

2. Data Capture: Primary Data

Collect new data from customers, prospects, employees, public, and others with information you need. Create usable info from unprocessed internal data Once processed, they become part of internal database and DSS. But expensive and time-consuming to generate new data (so have to rely on existing data first) Key Questions: existing data retrievable? What measured? Source? Observation used? Objective answers from asking people? Questionnaires? Structured/nonstructured items? Purpose made known? Behaviors? Population criteria and elements? Sample? Who gathers it and how long?

What is marketing?

Creating exchanges between individuals/firms that leave both sides off than if no exchange occurred. (satisfy needs of both customer/marketer) Better understand customers/marketplace. - discover needs and wants - satisfy needs and wants via 4Ps - maintain/keep those relationships

Data Mining

Data Mining - the use of powerful analytic technologies to quickly and thoroughly explore mountains of data to obtain useful information; search for statistical patterns; clear understanding of data; sophisticated quantitative analysis hope to boost sales/profits by better understanding customers and improving performance

3. State the Manager's Decision Problem

Decision Problem - the basic problem/opportunity facing the decision-maker for which the research is intended to provide answers -takes mgr's pespective, simple as possible, and form question -> "Why are store revenues so low?" (unplanned) Discover-oriented decision problem - seeks to answer "what" or "why" questions about a problem/opportunity. Focus in generating useful information and facts. Common with unplanned changes, but also planned to identify courses of action/options. Provides only insight. Strategy-oriented decision problem - seeks to answer "how" questions about a problem/opportunity. Focus on selecting alternative courses of actions. Common with planned change. Provides actionable results. Should attempt this type of research because provides clear decision. One-time info need (e.g. new logo) or needed at intervals (e.g. track satisfaction over time). One-time project vs. recurring project.

The Role of Marketing Research

Define marketing research, discuss different kinds of firms that conduct marketing research, list some skills important for marketing research careers, and list 3 reasons for studying marketing research. E.g. online surveys, questionnaires, social media, location phone services, visiting web sites Improve marketing process for companies and deliver satisfactory products/services/experiences to customers The cost of performing marketing research and technologies becoming broadly available. BUT rapid advancements of gathering/using data.

Problems versus Opportunities

Defining the problem - trying to identify specific areas where additional info is needed about the marketing environment. Need info about whether to exploit opportunities and how. Problems and opportunities = two sides of same coin. Both require good info about mkt environment before important decisions. Opportunity could turn into problem if failure to take advantage. Dealing with a problem created an opportunity to move ahead.

Depth Interviews

Depth interview - interviews with people knowledgeable about the general subject being investigated (draw knowledge/experience from people who know something about the issue); flexible; informal; lots of usable info from different viewpoints; probing about psychographics and demographics Candidates include current customers, target market, executives and managers, sales reps, wholesalers, retailers, etc. -those who work with it (e.g. employees, consultants) -those who study it (e.g. researchers and analysts) -those who live it (e.g. consumers)

3. Data Analysis

For new data by asking questions: individual responses scanned for completeness and consistency - EDITING then CODING - assign numbers to each answer for computer analysis For data involving observations over time (e.g. purchases of product), decisions made about appropriate time units for AGGREGATION. MERGING data from different sources. Analysis begins: frequency counts (% of people answer question in same way), descriptive stats (mean/standard deviation), cross-tabulation (differences or relationships). E.G. women buying new cosmetic cross-classified by age, income, etc. Key Questions: Who edits? How code? Analysis techniques?

2. Clarify the Problem/Opportunity

Helping manager get precisely to heart/true nature of problem. Serve as consultant to help determine root causes and clear path of action. May be necessary to challenge/probe managers on their preexisting assumptions to prevent self-diagnosis. "Normal thinking" and look at business in routine ways, so provide a new perspective "new eyes". Difficult, but exploratory research to help pinpoint true problem with evidence.

The Problem

Marketers need information about the environments in which they operate (in order to develop/deliver products or services that can satisfy customers needs and make decisions) Different companies need different information gathered in diverse ways (e.g. sales use research to help sell, politicians use research to plan campaigns, media to sell advertising spots, churches to hold service) Focus on product/service, price, placement, channels of distribution, promotion, tangible elements, processes, people involved GOAL: develop a marketing strategy that combines marketing mix so customers satisfied and organization stays in business

Problem Formulation Process

Most difficult part of entire market research process b/c uniqueness of every situation. 1. Meet with the Client (to obtain a. management statement of problem/opportunity b. bg info c. mgmt objectives for research and d. possible managerial actions to result from research) 2. Clarify Problem/Opportunity (by questioning managerial assumptions and gathering additional info from mgrs. Perform exploratory research) 3. State Manager's Decision Problem (including source of planned change or unplanned change in environment, type of discovery- or strategy-oriented, and scope of one-time or recurring) 4. Develop Full Range of Possible Research Problems (that would address mgr's decision problem) 5. Select Research Problem(s) (that best address mgr's decision problem, based on an evaluation of likely costs and benefits of each possible research problem) 6. Prepare Research Request Agreement (to the client. Revise in consultation with the client)

Descriptive and Causal Research

Once problem is well-defined, move onto these research (or exploratory to further refine issues) Causal Research - experiments to identify cause-and-effect relationships between variables. (e.g. test markets to determine which product, package, ads, price to use or A/B tests) Descriptive Research (more common) - describing a population, emphasizing frequency with which something occurs or extent to which two variables are related to one another. (Should data be collected by questionnaire or observation? Personally or electronically? In person, telephone, mail, online survey?) THEN design observation form or questionnaire (fixed set or open ended? Purpose clear to respondents or disguised? Rating scale and type?) THEN what group. Population, or subset which is sample (need sampling frame of population elements, sampling plan, and size) Two types of sampling plans: 1. probability sample of nonzero chance of selection (margin of sample error) 2. nonprobability sample of choosing sample

Primary Data

Primary Data - information collected specifically for the investigation at hand (all information was primary at some point in database, turns secondary for another purpose) Collected only if secondary data unavailable from internal or external sources.

Projective Methods

Projective methods - methods that encourage respondents to reveal their own feelings, thoughts, and behaviors by shifting the focus away from the individual through the use of indirect tasks; helps with subjects' reluctance Word Association - respond to list of words with the first word that comes to mind; later analyzed for frequency, average time, no responses. Sentence Completion - complete a number of sentences with first thoughts that come to mind Storytelling - data collection relying on a picture stimulus like cartoon, photograph, or drawing about which subject is asked to tell a story. Role playing - introduce a scenario/context and ask to play the role of a person.

4. Develop Possible Research Problems

Research Problem - restatement of the decision problem in research terms, from researcher's perspective (what research can be done to provide answers to decision problem) E.g. Decision Problem - why are store revenues so low? Research Problem - investigate customer satisfaction, assess target market perceptions of store and competitors, determine target market awareness Begins with action word and describes info to be uncovered. Develop full range of research problems for given decision problem. For strategy-oriented, fewer research problems because limited to making a choice among alternatives.

The Research Proposal

Research Proposal - a written statement that describes the marketing problem, the purpose of the study, an a detailed outline of the research methodology; proposed method of conducting the research. More detailed than research request agreement. Problem definition and background: short summary of information in research request agreement Research design and data source: type of research (exploratory, descriptive, causal), type of data, and sources of data (e.g. government, company, people). And how it's gathered (e.g. surveys, experiments, library). Relevance of techniques (qual or quant), types like online surveys, interviews, focus groups... Sampling plan: description of population, sample size, sampling method, sampling frame, etc. Data collection forms: forms used to gather data (e.g. for surveys, questionnaire or interview schedule, or inventory forms, guidebooks for focus groups, observation checklists) Analysis: editing and proofreading of questionnaires, coding instructions, type of data analysis. Outline of tables/figures. Time schedule: outline of plan to complete study. Persons involved and time frame for jobs. Personnel requirements and cost estimate: list of all personnel, jobs, time duration, and pay. Travel, materials, supplies, etc. Appendices: data collection forms (e.g. script for telephone interviews, recruiting messages for surveys, cover letters), tables, etc.

6. Prepare the Research Request Agreement

Research Request Agreement - prep by researcher after meeting with decision-marker that summarizes the problem and info needed to address it. Submit to decisionmaker for approval. Purpose is the make certain that everyone understands the problem to be addressed and what the research is to accomplish. Background: events led to decision problem to understand its nature. Decision Problem: underlying question confronting the manager. Planned or unplanned source, discovery-oriented or strategy-oriented, one-time or recurring Research Problem: range of research problems provide input to decision problem. Costs and benefits to each and final choice. Use: way each piece of info will be used. For discovery: info to be obtained and how mgmrs will use it. For strategy: way info will be used to help make action decision. Population and subgroups: groups whom info be gathered from (to design sample). Logistics: estimates of time/money to conduct research.

Secondary Data

Secondary Data - data that have already been collected, often for some other purpose or by some other organization Search for existing data, if info needed to solve the problem already exists. Advantage: time/money saver. Disadvantage: 1. do not completely fit the problem 2. not totally accurate (different units, class definitions, and age of data) 3. difficult or impossible to judge accuracy Primary source - originating source of secondary data Secondary source - source that did not originate the data but secured them from another source. Always use primary! Pay attention to which organization sponsored the research. Advocacy research - research conducted to support a position rather than to find the truth about an issue. Evidence of Quality - was research done properly? Provided enough details about how it was conducted.

Factors/Environments Affecting Marketing

Social actors: competitors, suppliers, governmental agencies, customers, etc. Societal trends: economic, political and legal, social, natural, technological, and competitive environment

Planned Change vs. Unplanned Change in the mkt environment

Sources of marketing problems. Provide clues about nature of problem and type of research needed. Unexpected change in external environment (e.g. new tech, new competitor product, change in demographics/lifestyle). Serendipity or chance ideas (e.g. customer complaints, new way to use company resources). More oriented toward past and reactive. What has happened? (discovery) Why has it happened? (discovery) What should we do about the problem or opportunity? (strategy) Planned change company wishes to bring about (e.g. increase business by development of new products, improved distribution, effective pricing and promo). More oriented for future and proactive. What can happen? (discovery) Why could it happen? (discovery) How should we implement the change? (strategy)

1. Problem Definition

Specify manager's DECISION PROBLEM and one or more RESEARCH problems Prepare RESEARCH REQUEST AGREEMENT (states research problems to be address in project) between researchers and managers If little known, broad, or vague, EXPLORATORY RESEARCH to clarify issues. E.g. review published data, interviewing, focus groups, trade literature, analyzing data in company database, etc. Lots of flexibility here. Most important outcome: clear understanding of exact info managers need for decisions. Key Questions: purpose of study? additional background info? source of problem? discovery- or strategy-oriented? Info needed for decisions? how much known? Hypothesis?

Marketing Research

The process of gathering and interpreting data for use in developing, implementing, and monitoring the firm's marketing plans (The firm's formal communication link to environments to collect information) 1. specify what info is needed 2. gather relevant data from internal/external sources 3. analyze and interpret data 4. communicate the results to appropriate audience how management uses it: -planning (size and scope of opportunities to allocate resources e.g. what kinds of people, markets, customer needs, channels, etc.) -problem solving (tactical decisions with marketing mix e.g. 4Ps) -control (isolate trouble spots and monitor operations e.g. market share, satisfaction, public, competitors)

Who does Marketing Research?

Three major categories of firms: 1. producers of products/services (gauge market needs via outsource or have people in departments e.g. industrial/consumer manufacturing companies, publishers, tech, retailers, financial) 2. advertising agencies (effective ads for target and brand awareness + consumer behavior) 3. marketing research companies (small firms but large influence e.g H2R Market Research for parks and tourism of HFE or large global companies e.g. Nielsen Holdings N.V.// standardized or syndicated research, custom, field service, full-service) 4. other (government agencies, trade associations, universities)

Types of Internal Secondary Data

Transaction Data - sales invoices, receipts, online transactions, shopping card data Customer Communications - inquiries, complaints via telephone, online, mail, in-person, etc. Marketing Research Tracking Studies - satisfaction, awareness, image studies Others: cash register receipts, online account information, location services, salesperson's call reports, salesperson's expense accounts, individual customer/prospect records, financial records, credit memos, warranty cards

2. Data Capture: Existing Data

Two ways (1) collect data to address specific problems (focused FLASHLIGHT The Project Approach) (2) putting systems in place that providing marketing intelligence on an ongoing basis (broad CANDLE The Systems Approach) Already existing in company's databses - DECISION SUPPORT SYSTEMS (DSS) track sales by region, salesperson, product, etc. to determine success of marketing plans. BIG DATA - data sets from sensors in products, location, online search, social media, emails, calls, etc. If internal data already processed (cataloged/organized) -> analyze IF NOT Data from existing external source (e.g. government census, trade associations, published, commercial)

5. Select Research Problem(s) to be Addressed

Which to pursue of the many research problems (associated with single manager's decision problem). Better to address 1 or 2 than too many. Trade-off: between value of info to be obtained vs. costs of obtaining it (money, time, effort e.g. info from current customers and target market) Work with client to determine most likely problem areas and most profitable areas.

4. Information Reporting

Written Research Report to management that summaries research results/conclusions (or oral research presentation). Clear, accurate. Critical if research will be used. Key Questions: Who reads? Sophistication? Involvement? Managerial recommendations? Format? Oral?

Minimizing Total Error

best projects can always have error. Goal is to minimize total error, not just one kind of error.

Focus Groups

focus groups - an interview conducted among a small number of individuals simultaneously; the interview relies more on group discussion than on directed questions to generate data moderator meets with focus group and guides the session. moderator's guidebook = ordered list of general to specific issues to be addressed. funnel approach of general topics to specifics. plans focus groups and leads discussion. Listening, memory, organized, learner, energy, personable, intelligence Group interaction to build ideas that are fully developed due to snowballing effect (one comment can trigger chain of responses). More spontaneous and less conventional. Characteristics: 8-12 people, 1.5-2 hours, homogeneous people via screening criteria, have multiple groups to vary heterogenous characteristics, traditional face-to-face or online (might be more limited in terms of value, but cost benefit) less expensive than depth interview, sessions recorded/transcribed. Be objective as possible and avoid executive bias

The Systems Approach

info needed is predictable, organized in database, and made readily available on ongoing basis. But limited to info available in database. Marketing Information Systems (MIS) - set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions; processes regular standardized reports based on info in database at steady basis. Good for stable environments with regular intervals. Decision Support System (DSS) - system that combines data, models for guiding decisions, and a user interface that allows users to interact with the system to produce customized information. Produce info you need when you need it. Tables, graphs, forecasts. Marketing dashboard - visual display of relevant marketing info designed to provide interactive access to a company's key marketing metrics.

Nominal Groups

nominal groups - a group interview technique that initially limits respondent interaction while attempting to maximize input from individual group members (require written responses before open-group discussion; think and write before speaking) Share ideas to stimulate more, discussions to clarify existing thoughts and eliminate duplication. Prioritize group ideas. Eliminates group think and lack of involvement.

Literature Search

one of quickest and least costly. Should start here. Literature Search - search of statistics, trade journal articles, magazines, newspapers, books, and/or online sources for data or in-sight into the problem at hand. Trade literature (industry/competitors), conceptual literature (e.g. academics and industry reports)

The Research Process and Ethical Concerns

outline marketing research process, describe general approaches to marketing research, cite the most critical error in marketing research, highlight the main differences between utility, justice, and rights approaches to ethical reasoning, and describe types of research that should be avoided

Exploratory Research

to gain insights and ideas to better define the problem/opportunity confronting the manager; better understanding of the situations but not for final answers/decisions. Get an idea about research problems. Hypothesis: a statement that specifies how two or more measurable variables are related (aka educated guess) -develop hypotheses -better formulating the manager's decision problem -increasing the researcher's familiarity with the problem -clarifying concepts SMALL SCALE b/c no answers here, but make sure enough resources for exploratory to define problem. FLEXIBILITY b/c anything goes in terms of various methods. Types of exploratory: LITERATURE SEARCH, DATA MINING, DEPTH INTERVIEWS, FOCUS GROUPS, CASE ANALYSES, PROJECTIVE METHODS