Marketing Research Exam 1

Exploratory (Qualitative) Research

Research conducted to gather more information about a problem or to make a tentative hypothesis more specific If relatively little is known about the phenomenon to be investigated, exploratory research is needed.Some researchers apply the label "qualitative research" to this kind of research. Objective: discover ideas and insights Characteristics: Flexible, Versatile, Often the front end of total research design Methods: literature searches, depth interviews, case studies

causal research

Research design in which the major emphasis is on determining cause-and-effect relationships. Experiments are commonly used in causal research designs because they are best suited to determine cause and effect.

descriptive research

Research design in which the major emphasis is on determining the frequency with which something occurs or the extent to which two variables covary. usually concerned with describing a population with respect to important variables.

Exploratory Research

Research design in which the major emphasis is on gaining ideas and insights. it can help you identify which research problem(s) ought to be pursued Exploratory research is also used to increase a researcher's familiarity with a problem, especially when the researcher doesn't know much about the organization and/or problem to be studied. Through exploratory research, researchers hope to produce hypotheses about what is going on in a situation. . For example, if sales for a particular line of vehicles dropped during the latest quarter, as a researcher you might use exploratory research to provide insights about what caused the decrease in revenue. Suppose that you conducted interviews with potential car buyers and noticed that they seemed to be more excited about the new styles of other car brands than they were about the brand in question. This might lead to the hypothesis that style preferences had changed, resulting in lower sales. You can't really confirm or reject the hypothesis with exploratory research, though. That job is left for descriptive and/or causal research (these are often called quantitative research). xploratory research doesn't provide definitive answers for the overall population. There are two reasons for this: (1) Exploratory research usually involves only a relatively small group of people, and (2) these people are almost never randomly selected to participate. Regardless of the particular methods employed, exploratory studies should almost always be relatively small in size. Types of exploratory research : literature search, depth interviews, focus groups, case analyses

Which is not a common way to identify the Management (Decision Maker's) Problem? A. Research guidelines describing what should be accomplished B. Secondary data C. Qualitative research D. Discussion with the decision maker

Research guidelines describing what should be accomplished

laboratory experiment

Research investigation in which investigators create a situation with exact conditions in order to control some variables and manipulate others. the carefully controlled conditions of the laboratory let us make strong statements about how a manipulation led to a result.

field experiment

Research study in a realistic situation in which one or more independent variables are manipulated by the experimenter under as carefully controlled conditions as the situation will permit. Field studies have a real advantage, though, when it comes to realism. The results of field studies can often be generalized, or extended, to other situations. In short, we may have less confidence that we understand exactly what produces a particular result, but the realistic conditions in the field allow us to be more confident that we can reproduce the result in other similar market conditions.

Learning Objective 3. List Three Reasons for Studying Marketing Research

(1) Some students pursue careers in marketing research; (2) almost everyone is a consumer of marketing research in one way or another and needs to be able to know how to evaluate the likely validity of the research; and (3) managers must understand what marketing research can and cannot do, as well as what is involved in the process of conducting research.

Information contained in the research request agreement

- Research Design and Data Sources - Type of research design (exploratory, descriptive, and/or causal) and type of data to be sought (primary, secondary), along with the proposed sources of those data, are discussed in this section. You'll need to include a brief explanation of how the necessary data will be gathered (e.g., surveys, experiments, library sources). "Sources" refers to where the data are located, for example, in government publications or company records, or as unpublished information held by people, and so forth. - Sampling Plan - The sampling plan starts with a detailed description of the population to be studied. You must specify the population, state the desired sample size (including the rationale for the proposed sample size), discuss the sampling method, and identify the sampling frame. The reason for using the type of sample proposed must be justified. - Data Collection Forms - The forms to be used in gathering data are discussed in this section. For survey research, this usually involves a questionnaire. For other research, the forms could include inventory forms, guidebooks for focus groups, observation checklists, and so forth. You'll need to explain how these instruments have been or will be validated and provide any available evidence of their reliability and validity. - Analysis - data analysis, including any specialized statistical techniques that are to be performed, to convert the collected data into usable information. If necessary, you may also include a discussion of editing and proofreading of questionnaires, coding instructions, and an explanation of how item nonresponse and missing data will be handled. Most importantly, you should include an outline of the tables and figures that will appear in the report (i.e., dummy tables) - Time Schedule - This is a detailed outline of the plan to complete the study. The study should be divided into workable pieces. Then, considering the persons involved in each phase, their qualifications and experience, and so forth, the time for the job is estimated. - Personnel Requirements and Cost Estimate - This section provides a complete list of all personnel who will be required, indicating exact jobs, time duration, expected rate of pay, and each person's responsibility and authority. - Appendices - This section will include data collection forms (including script for telephone interviewers and cover letter for written or electronic formats), any technical information or statistical information that would have interrupted the flow of the text, and dummy tables or figures included in the analysis plan.

standard test market

A test market in which the company sells the product through its normal distribution channels. A key distinguishing feature of a standard test market is that the producer must sell the product to distributors, wholesalers, and/or retailers just as it would any other product.

Key Steps in Problem Formulation

1. Meet with client 2. Clarify the problem/opportunity 3. State the manager's decision problem 4. Develop full range of possible research problems 5. Select research problems 6. Prepare and submit research request agreement

Marketing Research Process

1. Problem formulation 2. Research Design 3. Data Collection Method/Forms 4. Sample Design 5. Data Collection 6. Analysis and Interpretation 7. Research Report

Snowballing effect

A comment by one individual can trigger a chain of responses from others. As a result, responses are often more spontaneous and less conventional than they might be in a depth interview.

market testing (test-marketing)

A controlled experiment done in a limited but carefully selected sector of the marketplace. Market testing is often used to predict the sales or profit outcomes of one or more proposed marketing actions. The three key considerations of market testing are cost, time, and control.

Distinguish between a decision problem and a research problem.

A decision problem is the problem as seen by managers. Research problems restate the decision problem in research terms, from the researcher's perspective.

discovery-oriented decision problem

A decision problem that typically seeks to answer "what" or "why" questions about a problem/opportunity. The focus is generally on generating useful information. Note, however, that discovery-oriented research rarely solves a problem in the sense of providing actionable results. This form of research simply aims to provide some of the insights and the building blocks necessary for managers to make better decisions. Using discovery-oriented research, the researcher can provide insights and create building blocks managers can use to make decisions.

Request for Proposal (RFP)

A document that describes the problem for which research is sought and asks providers to offer proposals, including cost estimates, about how they would perform the job

request for proposal (RFP)

A document that describes the problem for which research is sought and asks providers to offer proposals, including cost estimates, about how they would perform the job.

discontinuous panel

A fixed sample of respondents who are measured repeatedly over time with respect to the same variables. the information collected from panel members varies (but because panel members provide measures over time, we still classify this as longitudinal research).

Research Design

A research design is the framework or plan for a study used as a guide in collecting and analyzing data. There are three basic types of research design: exploratory, descriptive, and causal. the three basic research designs can be viewed as stages in acontinuous process.

Normal thinking

A routine way of looking at a business situation. Researchers should offer a new perspective on the situation if possible.

Why use a sample survey?

A sample survey offers a couple of big advantages over panel designs. For one thing, you can target very specific populations. Targeted recruitment is possible with consumer panels, but only using the data that have been collected about the participating individuals or households. Here's a second big advantage of sample surveys: If you use a probability sampling plan, the results from the sample can be projected to the overall population. (Managers care more about populations than they do about samples.) On the downside, survey research is expensive. It takes lots of time, energy, and money to successfully collect and analyze survey data. And unless you have the technical skills required for each aspect of the process, you'll have to hire others to help, adding to the overall cost of the project.

literature search

A search of popular press (newspapers, magazines, and so forth), trade literature, academic literature, or published statistics from research firms or governmental agencies for data or insight into the problem at hand.

secondary source

A source of secondary data that did not originate the data but rather secured them from another source.

hypothesis

A statement that describes how two or more variables are related.

simulated test market (STM)

A study in which consumer ratings and other information are fed into a computer model that then makes projections about the likely level of sales for the product in the market. A simulated test market differs from standard and controlled test markets in that consumers do not purchase the product (or service) being tested from a retail store. In fact, in many cases, the product has not even been put into production. Instead, researchers will typically recruit consumers to participate in the simulated study. Consumers are shown the new product or product concept and asked to rate its features.

strategy-oriented decision problem

Aims more directly at making decisions. A decision problem that typically seeks to answer "how" questions about a problem/opportunity. The focus is generally on selecting alternative courses of action. Strategy-oriented decision problems produce a choice among alternative paths. many companies place a preference on strategy-oriented research. nstead of asking the question, "What proportion of potato chips is eaten at meals?" General Mills would ask, "How can we advertise our potato chips for meal consumption?" With strategy-oriented decision problems, there are typically fewer possible research problems because the focus has shifted to making a choice among selected alternatives

moderator's guidebook

An ordered list of the general (and specific) issues to be addressed during a focus group; the issues normally should move from general to specific.

Note about Marketing Research Process

Although we've presented the stages in a particular order, some of the steps can be carried out at about the same time—and decisions about later steps will influence what should happen at earlier stages. It would get confusing, but Exhibit 1.3 probably should be drawn with a number of feedback loops representing the need to rethink, redraft, or revise the various elements in the process as it proceeds.

controlled test market

An entire test program conducted by an outside service in a market in which it can guarantee distribution.

focus group

An interview conducted among a small number of individuals simultaneously; the interview relies more on group discussion than on directed questions to generate data. Focus group interviews are among the most often used techniques in marketing research. Some would argue that they are among the most overused and misused techniques as well Group interaction is the key aspect that distinguishes focus group interviews from depth interviews, which are conducted with one respondent at a time. It is also the primary advantage of the focus group over most other exploratory techniques. Because of their interactive nature, ideas sometimes drop "out of the blue" during a focus group discussion. Given that the participants in any one group should be reasonably homogeneous, how can a firm be sure that the full range of opinions will be represented? The best way is to hold multiple groups. That way, the characteristics of the participants can vary across groups. How many groups should you hold? A typical number might be five or less, but sometimes companies choose to hold dozens of focus groups. Well, when used appropriately, it can be very effective, and this accounts in part for its popularity. And managers may be more comfortable supporting an activity in which they can participate. Plus, conducting focus groups has simply become the "norm" over the years.

longitudinal study

Cross-sectional study in which the sample is selected to be representative of the target population and in which the emphasis is on the generation of summary statistics such as averages and percentages. Involves a panel (that is, a fixed sample of elements), from which measures are taken over time, in contrast with the one-time measurement in a cross-sectional study. The elements may be stores, dealers, individuals, or other entities. The panel, or sample, remains relatively constant over time, although members may be added to replace dropouts or to keep it as representative as possible.

sample survey

Cross-sectional study in which the sample is selected to be representative of the target population and in which the emphasis is on the generation of summary statistics such as averages and percentages. Typically, a cross-sectional study involves drawing a sample of elements from the population of interest. Characteristics of the elements, or sample members, are measured only once. Because a great deal of emphasis is placed on selecting sample members, preferably with a probability sampling plan, the technique is often called a sample survey.

Research problem example

Consider again the coffee shop owner facing the discovery-oriented decision problem, "Why are store revenues so low?" As is true of most discovery-oriented problems, several avenues of research might provide insights into the problem, including these: Determine what sales levels are required for breakeven. (Researchers must first be good at overall business!) Assess store traffic and purchase patterns. (Is low revenue attributable to not enough customers, low revenue per customer, or both?) Investigate current customer satisfaction. (Is the shop getting repeat business?) Assess the target market's perceptions of the coffee shop and its competitors. Determine the target market's awareness of the shop. Each of these possible research problems begins with an action word and describes information to be uncovered that might help solve the decision problem.

pros and cons of controlled test market

Controlled test markets are more expensive than simulated test markets, but less costly than standard test markets. One reason they cost less than standard test markets is that the research supplier provides distribution and handles all aspects of display, pricing, and so on. This perfect implementation of the marketing plan also represents one of the weaknesses of the controlled test market. Acceptance or rejection of the new product by the trade in the "real world" is typically critical to the success of any new product. A controlled test market guarantees acceptance by the trade for the duration of the test, but acceptance will not be guaranteed during the actual marketing of the product. When a new product fits in nicely with a company's existing line, for which it already has distribution, the controlled test market is a fairly good indicator. When the product is new or represents a radical departure for the manufacturer, the question of trade support is much more problematic, and the controlled test is much less useful under these circumstances.

Issues in market testing

Cost - The cost includes the normal research costs associated with designing the data-collection instruments and the sample, the wages paid to the field staff who collect the data, and several other indirect expenses. Time Control First, there are the control problems in the experiment itself. What specific test markets will be used? How will product distribution be organized in those markets? Can the firm get wholesalers and retailers to cooperate? Can the test markets and control cities be matched sufficiently to rule out market characteristics as the primary reason for different sales results? Maintaining Confidentiality - the possibility that competitors can see a company's new product before it is fully commercialized.

Step 1 of Marketing Research Process

Defining the marketing problem to be solved The manager's decision problem and the research problem to be pursued by the researcher should be specified and agreed upon by researchers and managers in the form of a written research request agreement. managerial problem (paragraph) + research problem (research questions or research objectives) - these are information oriented - should include info gathering related to managerial problem, gathering info from population of interest or sample ) research objectives should have two pieces of info: whats the info you are gathering and who are you gathering it from?

Cons of focus groups

Despite their benefits, focus groups have two major weaknesses. The first weakness has to do with how the results of a focus group session are sometimes interpreted. When managers—or researchers, for that matter—bring preconceived ideas about what they want or expect to see, it's no surprise when they find evidence in one or more of the group discussions that supports their position. The resulting biases may not be intentional, but they can still be harmful. Here is our second big concern about how focus groups are being used: Focus groups are only one type of exploratory research, yet for whatever reason they are just about the only kind of research—exploratory or otherwise—that some companies will use. Managers (and researchers too, unfortunately) tend to forget that the discussion—and consequently, the results—is greatly influenced by the moderator, the screening criteria, and the particular people who end up participating in the group. Like other forms of exploratory research, focus groups are better for generating ideas and insights than for systematically examining them. They are not designed to provide final answers, yet they are too often used for that purpose.

Step 3 in Problem Formulation

Develop full range of possible research problems that would address the manager's decision problem.

Which type of descriptive research should you conduct

If your research problem requires collection of things like purchasing behavior or watching and listening to media outlets, panel data are almost always more accurate than cross-sectional data. With cross-sectional designs, respondents are asked to remember and report their past behaviors, a process that always leads to mistakes because people tend to forget. With a panel, behavior often can be recorded as it occurs, electronically or manually, so less reliance is placed on memory.

cross-sectional study

Investigation involving a sample of elements selected from the population of interest that are measured at a single point in time. Characteristics of the elements, or sample members, are measured only once. the most common, and longitudinal designs Type of descriptive study

Step 1 in Problem Formulation

Meet with client to obtain (1) management statement of problem/opportunity, (2) background information (3) management objectives for research, and (4) possible managerial actions to result from research. the primary task of the researcher is to listen carefully as managers provide their perspective of the problem

primary data

Information collected specifically for the Investigation at hand.

secondary data

Information not gathered for the immediate study at hand but for some other purpose. most significant advantages of secondary data are the time and money they can save.

case analysis

Intensive study of selected examples of the phenomenon of interest. another form of exploratory research As a researcher, you might examine existing records, observe the phenomenon as it occurs, conduct unstructured interviews, or use any one of a variety of other approaches to analyze what is happening in a given situation.

depth interviews

Interviews with people knowledgeable about the general subject being investigated. For example, a children's book publisher gained valuable information about a sales decline by talking with librarians and schoolteachers who indicated that more and more people were using library facilities ... and presumably buying fewer books for their children. A series of depth interviews can be very expensive. This technique, however, can yield important insights and more often than not is well worth the effort.

continuous panel

Investigation involving a fixed sample of elements that is measured repeatedly through time.

Defining the Problem

Management (decision maker's) Problem ◦ Action oriented ◦ It asks what the decision maker needs to do ◦ Paragraph format Research Problem ◦ Information oriented ◦ Asks what information is needed and how best can it be obtained Identify the decision-maker's goals. Understandthe backgroundof the problem. Isolateand identify theproblems from thesymptoms. Determinewho will provide the information. Determinethe relevant variables. State the research objectives or questions.

Learning Objective 4. Discuss why Researchers should Care about Marketing Research Ethics

Marketing research ethics are the principles, values, and standards of conduct followed by marketing researchers. The goal of any marketing research project should be to uncover the truth about the topic of interest, not to produce a result that the researcher or managers want to see. Researchers must behave ethically because their jobs depend upon the trust and goodwill of research participants.

Learning Objective 1. Define Marketing Research

Marketing research is the function that links the consumer to the marketer through information. The information is used to identify and define marketing problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Causal (Quantitative) Research

Marketing research to test hypotheses about cause-and-effect relationships Characteristics: manipulation of one or more independent variables, control of other mediating variables Methods: experiments, A/B testing, cause and effect

Mobile qualitative techniques

Mobile Ethnography: Product usage tours, day-in-the life, shop-alongs Diaries, journals, participatory blogs - used to gain insights: usage (how customers interact with things), spotter (encounter with things), process/purchase (things that evolve over time), behavior (focus on topic over course of week or month) Projective techniques - Ways of tapping into respondents' deepest feelings by having them "project" those feelings into an unstructured situation: Word Association Tests• Sentence Completion• Cartoon Tests• Third-Person Techniques• Deprivation Digital collage - Participants create rough collages from visual material to represent something relevant to the research - often a brand, or an activity.

Pros and cons of simulated test market

One advantage of simulated test markets is the protection they provide from competitors. They are also good for assessing trial- and repeat-purchasing behavior. They are faster than full-scale tests and are particularly good for spotting weak products, which allows firms to avoid full-scale testing of these products. Plus, of the three forms we've discussed, simulated test markets are the least expensive. The primary disadvantage of simulated test markets is that they do not provide any information about the firm's ability to secure trade support for the product or about what competitive reaction is likely to be. Thus, they are more suited for evaluating product extensions than for examining the likely success of radically different new products.

Step 6 in Problem Formulation

Prepare Research Request Agreement

Problems versus Opportunities

Problems - A marketing manager might face a situation that has obvious negative ramifications for the organization (e.g., unexpected decreasing sales for an existing product). Opportunities - the marketing manager might face a situation with potentially positive results for the organization (e.g., researchers have developed a new product with certain advantages over competing products).

Learning Objective 2. Discuss Different Kinds of Organizations that Conduct Marketing Research

Producers of products and services often have marketing research departments and gather information relevant to the particular products and services they produce and the industry in which they operate. Advertising agencies often conduct research, primarily to test advertising and measure its effectiveness. Marketing research companies are in business to conduct research; some focus on very specific topics or aspects of the research process, whereas others are more general in focus.

experiment

Scientific investigation in which an investigator manipulates and controls one or more independent variables and observes the degree to which the dependent variables change.

Step 4 in Problem Formulation

Select research problem(s) that best address the manager's decision problem, based on an evaluation of likely costs and benefits of each possible research problem.

Step 5 in Problem Formulation

Select research problem(s) to be researched

Step 2 in Problem Formulation

State the manager's decision Problem, including source (planned change or unplanned change in environment) and type (discovery or strategy oriented). involves helping managers get precisely to the heart of the problem.

Pros and Cons of Qualitative Research

Strengths Best way to understand in-depth consumer feelings and motivations, through in-depth and open-ended responses. Answers Why? May provide unexpected outcomes Can validate and improve quantitative research Typically less expensive than quantitative, reasonable total cost Very flexible, many methods Weaknesses Does not distinguish small differences in the marketplace like quantitative research Not representative of the population of interest/ inability to generalize from the results Can be time consuming High cost per response Highly skilled interviewers and analysts needed

Causal Research Designs

Studies that enable researchers to assess "cause-effect" relationships between two or more variables the idea that one thing leads to the occurrence of another Causal research designs work toward establishing possible causal relationships through the use of experiments.

Qualitative Research

The results depend on the data, the method, and the interpretation of the researcher Probing questions Small sample size Interviewer with special skills Subjective, interpretative Low replication Exploratory research

Marketing research problem

any situation in which a company needs information to be a marketing research problem. two basic sources of marketing problems—planned and unplanned changes in the marketing environment.

Quantitative Research

The analysis should produce the same results when two trained practitioners apply the same method to the data Limited probing Large sample size Few special skills required Statistical, summarization High replication Descriptive or Causal research

Decision Problem

The basic problem facing the manager, for which marketing research is intended to provide answers. A well-stated decision problem takes the manager's perspective, is as simple as possible, and takes the form of a question.

ethnography

The detailed observation of consumers during their ordinary daily lives using direct observations, interviews, and video and audio recordings. frequently used example of case analysis Ethnography is useful as an exploratory research tool because it can allow insights based on real behavior, not just on what people say.

moderator

The individual who meets with focus group participants and guides the session.

cons of panel studies

The main disadvantage of panels is that they are almost always nonrepresentative and/or nonrandom. It is often difficult to find or build a panel that represents the characteristics of a particular population. Even when the composition of the panel can be matched to the demographics of the target population, the results still can't be projected to the population because the participants were not randomly drawn from the population. Another big disadvantage is that most consumer panels have relatively low cooperation rates, even among households that agreed to participate in the panel.

primary source

The originating source of secondary data. Using the primary source allows you to have an idea of the quality of the original data collection effort because the primary source will typically be the only source that de scribes the process of collection and analysis. Plus, the primary source is usually more accurate and complete than a secondary source.

pros and cons of standard market test

The traditional, or standard, test market provides a more natural environment than either the simulated or the controlled test market and, as a result, offers the greatest degree of prediction accuracy. This advantage must be balanced against some important disadvantages, however. Standard test markets are the most expensive, take the most time, and are the most likely to tip off competitors compared with the other approaches. Even so, the standard test market may be a logical choice when (1) it is important for the firm to test its ability to actually sell to the trade and get distribution for the product; (2) the capital investment is significant and the firm needs a prolonged test market to accurately assess its capital needs or its technical ability to manufacture the product; and/or (3) the company is entering new territory and needs to build its experience base so that it can play for real, but wants to learn how to do so on a limited scale.

Why descriptive research is used

To describe the characteristics of certain groups. To determine the proportion of people who behave in a certain way. To make specific predictions. To determine relationships between variables. A descriptive study design is very different from an exploratory study design. Exploratory studies are flexible in nature; descriptive studies are not. They require a clear specification of the who, what, when, where, why, and how of the research.

benchmarking

Using organizations that excel at some function as sources of ideas for improvement. frequently used example of case analysis

dummy table

You shouldn't collect descriptive data until you know what you are going to do with them. To accomplish this, you should prepare a set of dummy tables before beginning the collection process. Dummy tables are a table (or figure) with no entries used to show how the results of the analysis will be presented. Preparing a complete set of dummy tables forces you to think carefully about each piece of information to be collected. It also takes the guesswork out of the analysis phase of the project. Dummy tables are particularly valuable in providing clues on how to phrase the individual questions and code the responses.

research request agreement

a document prepared by the researcher after meeting with the decision maker that summarizes the problem and the information that is needed to address it includes: Background—The events that led to the manager's decision problem. Although the events may not directly affect the research that is conducted, they provide a deeper understanding of the problem. Decision problem—The underlying question confronting the manager. Include a brief discussion of the source of the problem (i.e., planned vs. unplanned change), along with a discussion of whether the problem is discovery oriented or strategy oriented. Research problem(s)—The range of research problems that would provide input to the decision problem. Provide an overview of costs and benefits of each research problem. Indicate and justify the final choice of research problem. Use—The way each piece of information will be used. For discovery-oriented decision problems, indicate key information to be obtained and how managers will use the information. For strategy-oriented decision problems, indicate the way the information will be used to help make the action decision. Supplying logical reasons for each piece of the research ensures that the research problem(s) makes sense in light of the decision problem. Population and subgroups—The groups from whom the information must be gathered. Specify these groups so that an appropriate sample can be selected. Logistics—Estimates of the time and money available to conduct the research. Both of these factors will affect the techniques finally chosen.

Research process

a general sequence of steps that can be followed when designing and conducting research

Cross tabulation

a method of presenting and analyzing data involving two or more variables to discover relationships in the data allows a deeper look at the data by examining differences or relationships across groups, or some other type of multivariate analysis.

research problem

a restatement of the decision problem in research terms A research problem states specifically what research can be done to provide answers to the decision problem.

Sample

a subset of the population for whom data are available

research proposal

a written statement that describes the marketing problem, the purpose of the study, and a detailed outline of the research methodology The research proposal also gives you another opportunity to make sure the research will provide information needed to address the decision maker's problem.

Advantages and disadvantages of secondary data

advantages: (1) help you to better state the problem under investigation, (2) suggest improved methods or further data that should be collected, and/or (3) provide comparative data that can help interpret primary data if such data are eventually collected. disadvantages of secondary data are (1) they often don't fit the current problem very well and (2) they are sometimes not accurate.

Planned Change

change activities that are intentional and goal oriented Most firms want to increase their revenues, and they devise various marketing actions for doing so. These actions include the development and introduction of new products, improved distribution, more effective pricing, and promotion. Planned change is oriented more toward the future and is proactive; Planned change is change that the firm wishes to bring about—the basic issue is how

Unplanned change

change that is imposed on the organization and is often unforeseen Some problems show up unexpectedly. How the firm responds to new technology or a new product introduced by a competitor or a change in demographics or lifestyles determines whether the unplanned change turns out to be a problem or an opportunity. Sometimes unplanned change involves serendipity, or chance ideas. An unexpected new idea might come from a customer in a complaint letter. unplanned change tends to be oriented more toward the past and is often reactive.

Sugging

contacting people under the guise of marketing research when the real goal is to sell products or services

Step 2 of Marketing Research Process

decide which research design (i.e., exploratory, descriptive, or causal) is appropriate

How can a company avoid the trap of researching the wrong problem?

delay research until the problem is properly defined

Step 3 of Marketing Research Process

development of an appropriate sample There are two basic types of sampling plans—those that produce a probability sample (the preferred type) and those that lead to a nonprobability sample. The size of the sample depends upon how many members of the population it is necessary to use to get reliable answers without exceeding the time and money budgeted for the project.

Panel

fixed sample of elements

Secondary data

information that already exists somewhere, having been collected for another purpose almost always less expensive and can be obtained and analyzed more quickly

Primary data

information that is collected for the first time; data collected specifically for the study

Core market

main group of people the store sells to

Descriptive (Quantitative) Research

marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers If, instead of being broad or vague, a problem is well defined and clearly stated, descriptive or causal research is needed. Descriptive research focuses on describing a population, often emphasizing the frequency with which something occurs or the extent to which two variables are related to one another. The causal design often uses experiments to identify cause-and-effect relationships between variables. Sometimes descriptive or causal research is referred to as "quantitative research." Objective: describe market characteristics or functions Characteristics: Marked by the prior formulation of specific hypotheses, preplanned and structured Methods: secondary data, surveys, panels, observational and other data

Step 4 of Marketing Research Process

prepare the written research report (and oral presentation) that summarizes the research results and conclusions, including graphical representation of data

Syndicated research

research by firms that collect certain data on a regular basis and sell the reports to multiple firms and interested clients Syndicated research is not custom designed for a particular client, but is designed and collected by the research company and sold to multiple clients.

Advocacy research

research that is conducted to support a position rather than to find the truth about an issue Researchers doing this type of research may word questions in such a way that they get the answers they want. They might select a sample of respondents known to support the position the researcher wants. They might do any number of other unethical things (like give kids money to buy value meals). These kinds of research practices are fraudulent and must be avoided if marketing research is to maintain its usefulness within the organization.

Marketing Research

the organization's formal communication link with the environment Through marketing research, the organization gathers and interprets data from the environment for use in developing, implementing and monitoring the firm's marketing plans and transforming the data into useful information that mangers can use to make decisions Organizations that produce products or deliver services for businesses or consumers often conduct research designed to develop and market their products and services.

Marketing Research Ethics

the principles, values, and standards of conduct followed by marketing researchers

Why do companies use marketing research?

to track customer satisfaction and customer usage patterns

Outer market

typically out to 150 miles, but less precise depending on geography, non-exclusive