MARK Chapter 9

Advantages of Primary Data

-Answers a specific research question -Data are current -Source of data is known -Secrecy can be maintained *The main advantage of primary data is that they will answer a specific research question that secondary data cannot answer.

Questionnaire Design

-Clear and concise -No ambiguous language -Avoid leading questions -Avoid two questions in one

Management Uses of Marketing Research

-Improve the quality of decision making -Trace problems -Focus on keeping existing customers -Understand the marketplace -Alert them to marketplace trends -Gauge the value of goods and services, and the level of customer satisfaction

Characteristics of Marketing Decision Support Systems

-Interactive -Flexible -Discovery Oriented -Accessible

Sources of Secondary Data

-Internal Corporate Information -Government Agencies -Trade and Industry Associations -Business Periodicals -News Media

Disadvantages of Secondary Data

-May not give adequate detailed information -May not be on target with the research problem -Quality and accuracy of data may pose a problem

Advantages of Secondary Data

-Saves time and money if on target -Aids in determining direction for primary data collection -Pinpoints the kinds of people to approach -Serves as a basis of comparison for other data

A research method that relies on four types of observation:

-people watching people -people watching an activity -machines watching people -machines watching an activity

Database Marketing

The creation of a large computerized file of customers' and potential customers' profiles and purchase patterns. *The fastest-growing use of DSSs is for database marketing. *It is usually the key tool for successful one-to-one marketing, which relies on very specific information about a market.

Forms of Survey Research

In-Home Interviews Mall Intercept Interviews Telephone Interviews Mail Surveys Executive Interviews Focus Groups

Primary Data

Information collected for the first time. Used for solving the particular problem under investigation.

The Marketing Research Process

1. Define Problem 2. Plan Design/Primary Data 3. Specify Sampling Procedure 4. Collect Data 5. Analyze Data 6. Prepare/Present Report 7. Follow Up

The 3 Roles of Marketing Research

1. Descriptive: Gathering and presenting factual statements (What is the historic sales trend in the industry? What are consumers' attitudes toward a product?) 2. Diagnostic: Explaining data (What was the impact on sales after a change in the package design?) 3. Predictive: Address "what if" questions (How can descriptive and diagnostic research be used to predict the results of a planned marketing decision?)

Questionnaire Design: three basic types of questions

1. Open-ended questions 2. Closed-ended questions 3. Scaled-response questions.

Management Decision Problem

A broad-based problem that uses marketing research in order for managers to take proper actions

Scaled-Response Question

A closed-ended question designed to measure the intensity of a respondent's answer

Marketing Research Aggregators

Acquire, catalog, reformat, segment, and resell reports already published by large and small marketing research firms. Databases are getting bigger, more comprehensive, and easier to search. Industry is a $120 million business that is growing about 6 percent a year.

Marketing Decision Support Systems

An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.

Closed-Ended Question

An interview question that asks the respondent to make a selection from a limited list of responses

Open-Ended Question

An interview question that encourages an answer phrased in the respondent's own words

Secondary data

Data previously collected for any purpose other than the one at hand

Marketing Research Problem

Determining what information is needed and how that information can be obtained efficiently and effectively.

Marketing Research

Marketing research is the process of planning, collecting, and analyzing data relevant to a marketing decision. *Marketing research plays a key role in the marketing system. It provides data on the effectiveness of the marketing mix and insights for necessary changes.  *Marketing research is a main data source for management information systems and DSS.

Disadvantages of Primary Data

Primary data can be very expensive. *Disadvantages are usually offset by the advantages of primary data. *The cost of primary data may range from a few thousand dollars for a limited survey to several million for a nationwide study. *To save money, firms may cut back on the number of interviews, use Internet studies instead, or use piggyback studies by gathering data on two different projects using one questionnaire.

Research design

Specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed.

Survey Research

The most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes.

Marketing Research Objective

The specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information.