marketing ch. 10

Experimental Research (Quantitative)

A type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable.

Inexpensive External Secondary Data

Often, however, inexpensive data sources are not adequate to meet researchers' needs. Because the data initially were acquired for some purpose other than the research question at hand, they may not be completely relevant or timely. ( like the Census Bureau)

Quantitative research

Once the firm has gained insights from doing qualitative research, it is likely to engage in quantitative research, which are structured responses that can be statistically tested. Quantitative research provides information needed to confirm insights and hypotheses generated via qualitative research or secondary data. It also helps managers pursue appropriate courses of action. Formal studies such as specific experiments, surveys, scanner and panel data, or some combination of these are quantitative in nature (see Exhibit 10.5, right side)

Marketing Research Process Step 3: Collecting the Data

SECONDARY DATA are pieces of information that have been collected prior to the start of the focal research project. Secondary data include external as well as internal data sources. PRIMARY DATA, in contrast, are those data collected to address specific research needs. Some common primary data collection methods include focus groups, in-depth interviews, and surveys No company can ask every customer his or her opinion or observe every customer, so researchers must choose a group of customers who represent the customers of interest, or a sample, and then generalize their opinions to describe all customers with the same characteristics. They may choose the sample participants at random to represent the entire customer market. Or they may choose to select the sample on the basis of some characteristic, such as their age, so they can research how Millennials experience buying Value Meals.

Secondary data

Secondary data might come from free or very inexpensive external sources such as census data, information from trade associations, and reports published in magazines. Although readily accessible, these inexpensive sources may not be specific or timely enough to solve the marketer's research needs and objectives.

Marketing Research Process

Steps: 1.Defining the objectives and research needs 2. Designing the research 3. Collecting the data 4. Analyzing the data and developing insights 5. Developing and Implementing an action plan

Primary methods include

Surveys Focus groups in-depth interviews

virtual community

an online network of people who talk about specific topics

customer lifetime value (CLV)

refers to the expected financial contribution from a particular customer to the firm's profits over the course of their entire relationship

Scanner data

used in quantitative research obtained from scanner readings of Universal Product Code (UPC) labels at checkout counters. Whenever you go into your local grocery store, your purchases are rung up using scanner systems.

Observation (Qualitative research)

entails examining purchase and consumption behaviors through personal or video camera scrutiny, or by tracking customers' movements electronically as they move through a store.

Survey research (quantitative research)

Arguably the most popular type of quantitative primary collection method is a survey—a systematic means of collecting information from people using a questionnaire. A QUESTIONNAIRE is a document that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives. UNSTRUCTURED QUESTIONS are open ended and allow respondents to answer in their own words. STRUCTURED QUESTIONS are closed-ended questions for which Page 319 a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

Qualitative Research

As its name implies, qualitative research uses broad, open-ended questions to understand the phenomenon of interest. It provides initial information that helps the researcher more clearly formulate the research objectives. Qualitative research is more informal than quantitative research methods and includes observation, following social media sites, in-depth interviews, and focus groups

(Marketing Research Process) Step 1: Defining the Objectives and Research Needs

Because research is both expensive and time-consuming, it is important to establish in advance exactly what problem needs to be solved. In general, marketers must clearly define the objectives of their marketing research project.Researchers assess the value of a project through a careful comparison of the benefits of answering some of their questions and the costs associated with conducting the research. When researchers have determined what information they need in order to address a particular problem or issue, the next step is to design a research project to meet those objectives.

In-Depth Interviews (Qualitative research)

In an in-depth interview, trained researchers ask questions and listen to and record the answers and then pose additional questions to clarify or expand on a particular issue. For instance, in addition to simply watching teenagers shop for apparel, interviewers might stop them one at a time in the mall to ask them a few questions, such as: "We noticed that you went into and came out of Abercrombie & Fitch very quickly without buying anything. Why was that?"

Focus Group Interviews (qualitative)

In focus group interviews, a small group of people (usually 8 to 12) come together for an intensive discussion about a particular topic. Using an unstructured method of inquiry, a trained moderator guides the conversation according to a predetermined, general outline of topics of interest. Researchers usually record the interactions by videotape or audiotape so they can carefully comb through the interviews later to catch any patterns of verbal or nonverbal responses. In particular, focus groups gather qualitative data about initial reactions to a new or existing product or service, opinions about different competitive offerings, or reactions to marketing stimuli, such as a new ad campaign or point-of-purchase display materials.

(Marketing Research Process) Step 5: Developing and Implementing an Action Plan

In the final phase in the marketing research process, the analyst prepares the results and presents them to the appropriate decision makers, who undertake appropriate marketing strategies. A typical marketing research presentation includes an executive summary, the body of the report (which discusses the research objectives, methodology used, and detailed findings), the conclusions, the limitations, and appropriate supplemental tables, figures, and appendixes.

Internal Secondary data

Internally, companies also generate a tremendous amount of secondary data from their day-to-day operations. One of the most valuable resources such firms have at their disposal is their rich cache of customer information and purchase history. DATA WAREHOUSES: large computer files that store millions and even billions of pieces of individual data DATA MINING: uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables. BIG DATA: To specify this explosion of data, which firms have access to but cannot handle using conventional data management and data mining software, the term big data has arisen in the popular media.

(Marketing Research Process) Step 4: Analyzing the Data and Developing Insights

The next step in the marketing research process—analyzing and interpreting the data—should be both thorough and methodical. To generate meaningful information, researchers analyze and make use of the collected data. In this context, DATA can be defined as raw numbers or other factual information that, on their own, have limited value to marketers. However, when the data are interpreted, they become INFORMATION, which results from organizing, analyzing, and interpreting data and putting them into a form that is useful to marketing decision makers.

(Marketing Research Process) Step 2: Designing the Research

The second step in the marketing research project involves design. In this step, researchers identify the type of data needed and determine the research necessary to collect them. Recall that the objectives of the project drive the type of data needed, as outlined in Step 1.

sentiment mining

Using a technique known as sentiment mining, firms collect consumer comments about companies and their products on social media sites such as Facebook, Twitter, and online blogs. The data are then analyzed to distill customer attitudes toward and preferences for products and advertising campaigns.

Panel Data

information collected from a group of consumers, organized into panels, over time. Data collected from panelists often include their records of what they have purchased (i.e., secondary data) as well as their responses to survey questions that the client gives to the panel firm to ask the panelists (i.e., primary data). Secondary panel data thus might show that when Diet Pepsi is offered at a deep discount, 80 percent of usual Diet Coke consumers switch to Diet Pepsi. Primary panel data could give insights into what they think of each option.

Marketing Research

is a prerequisite of successful decision making. It consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers who are involved in marketing goods, services, or ideas. When marketing managers attempt to develop their strategies, marketing research can provide valuable information that will help them make segmentation, positioning, product, place, price, and promotion decisions.

Panel- and Scanner-Based Research (Quantitative research)

panel and scanner research can be either secondary or primary. An example of the use of a panel to collect primary data would be Walmart's subsidiary Asda, which uses an 18,000-customer panel, called "Pulse of the Nation," to help determine which products to carry. Asda sends e-mails to each participant with product images and descriptions of potential new products. The customers' responses indicate whether they think each product should be carried in stores. As an incentive to participate, Asda enters respondents automatically in a drawing for free prizes