Marketing Research Chapter 3

1. Identify the problem. 2. Better define the problem. 3. Develop an approach to the problem. 4. Formulate an appropriate research design (for example, by identifying the key variables). 5. Answer certain research questions and test some hypotheses. 6. Interpret primary data more insightfully.

Identify the Advantages of secondary data.

Because secondary data have been collected for purposes other than the problem at hand, their usefulness to the current problem may be limited in several important ways, including relevance and accuracy. • The objectives, nature, and methods used to collect the secondary data may not be appropriate to the present situation. • Secondary data may be lacking in accuracy, or they may not be completely current or dependable.

Identify the disadvantages of Secondary data.

Consumer Perception and Behavior Studies

Image Product Usage Advertising Pricing

Sales Studies Consumer Perception and Behavior Studies Market Characteristic Studies

Major Types of Descriptive Studies

Sales Studies

Market Potential Market Share Sales Analysis

Descriptive Research

a study designed to depict the participants in an accurate way. More simply put, descriptive research is all about describing people who take part in the study.

Cross-Sectional Design

a type of observational study that involves the analysis of data collected from a population, or a representative subset, at one specific point in time

Primary data

originated by a researcher for the specific purpose of addressing the problem at hand. The collection of ______ involves all six steps of the marketing research process

Classify the two designs by the time frame each uses. Cross-sectional designs involve the collection of information from a sample population at a single point in time, whereas in a longitudinal design a fixed sample population is measured repeatedly over several points in time. Longitudinal data tend to be more informative than cross-sectional data because they measure changes in behavior, large amounts of data can be collected, and they are more accurate. Yet, they suffer from potential bias and nonrepresentativeness.

Classify descriptive research into cross-sectional and longitudinal designs.

1. Secondary and Syndicated data analysis 2. qualitative research 3. survey and observation research 4. experimental research 5. measurement and scaling procedures 6. questionnaire and form design 7. sampling process and sample size 8. plan of data analysis

Components of a Research Design

Define the research design as a framework or blueprint for conducting the marketing research project. It specifies the precise details of the procedures necessary for obtaining the required information. Finally, stress that it is important to have a good research design in order to ensure that the marketing research project is conducted effectively and efficiently.

Define and discuss the importance of a good research design

Start with the basis for causal research. Causal research is appropriate to use when the purposes are to understand which variables are the cause and which variables are the effect, and to determine the nature of the functional relationship between the causal variables and the effect to be predicted. Once the underlying theory is understood by students, use the example in the text on business-to-business advertising as an example of causal research.

Describe situations where causal research could be used.

Note that secondary data can cover a broad range of factors that affect the problem at hand. It does not always fit the specific problem at hand, but can be useful in developing an approach to the problem and providing a comprehensive understanding of the problem environment.

Describe the scope of secondary data.

Exploratory - to provide insights and understanding. Info needed is defined only loosely. Research process if flexible and unstructured. Sample is small and non representative. Data analysis is quantitative. Findings are tentative. Generally followed by further research or conclusive research. Conclusive - to test specific hypothesis and examine relationships. Info needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative. Findings are conclusive. Findings used as input into decision making.

Differences Between Exploratory and Conclusive Research

Distinguish the two by noting that exploratory research is used in situations where the problem may have to be defined more precisely, relevant courses of action identified, hypotheses formulated, or additional insights gained before an approach can be developed. Conclusive research would be used to test specific hypotheses, examine specific relationships, or make predictions.

Discuss the appropriate uses of exploratory and conclusive research designs.

Begin by defining secondary data as data, which have already been collected for purposes other than the problem at hand. The data are often found internally and also externally from published materials, computerized databases, or from syndicated services. Finally, note that secondary data are characterized as easily available and relatively inexpensive to obtain. Figure 3.6 provides a framework for discussing the types of secondary data.

Discuss the nature of secondary data.

Market Characteristic Studies

Distribution Competitive Analysis

Descriptive research is used to describe something, usually market characteristics or functions. Causal research is used to obtain evidence regarding cause-and-effect relationships.

Explain the differences between descriptive and causal research.

Descriptive research is used to describe something, usually market characteristics or functions. Causal research is used to obtain evidence regarding cause-and-effect relationships.

Explain the distinction between exploratory, descriptive, and causal research

Uses of Casual Research

To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon To determine the nature of the relationship between the causal variables and the effect to be predicted METHOD: Experiments

- To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas - To estimate the percentage of units in a specified population exhibiting a certain behavior - To determine the perceptions of product characteristics - To determine the degree to which marketing variables are associated - To make specific predictions

Use of Descriptive Research

- Formulate a problem or define a problem more precisely - Identify alternative courses of action - Develop hypotheses - Isolate key variables and relationships for further examination - Gain insights for developing an approach to the problem - Establish priorities for further research

Uses of Exploratory Research

Longitudinal Design

a correlational research study that involves repeated observations of the same variables over long periods of time, often many decades. It is often a type of observational study, although they can also be structured as longitudinal randomized experiments

longitudinal design

a fixed sample (or samples) of population elements is measured repeatedly on the same variables.

research design

a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems.

Causal Research

also called explanatory research. is the investigation of (research into) cause-and-effect relationships.

Secondary data

data which have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively

A longitudinal design

differs from a cross-sectional design in that the sample or samples remain the same over time.

cross-sectional design

involves the collection of information from any given sample of population elements only once.

Descriptive Studies

it is characterized by a clear statement of the problem, specific hypotheses, and detailed information needs

Conclusive Research Design

more likely to use statistical tests, advanced analytical techniques, and larger sample sizes, compared with exploratory studies. It is also more likely to use quantitative, rather than qualitative techniques

Research Design

refers to the overall strategy that you choose to integrate the different components of the study in a coherent and logical way, thereby, ensuring you will effectively address the research problem; it constitutes the blueprint for the collection, measurement, and analysis of data.