MGMT 151 - Midterm (Public)

What are the three types of analytical models?

1. An analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. 2. In verbal models, the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory. 3. Graphical models are visual. They are used to isolate variables and to suggest directions of relationships but are not designed to provide numerical results. Mathematical Models sets the problem to numerical and algebraic equations

What are the steps involved in the marketing research process?

1. Defining the marketing research problem (most important) 2. Developing an approach to the problem 3. Research design formulation 4. Fieldwork or data collection 5. Data preparation and analysis 6. Report preparation and presentation

Describe the four basic characteristics and levels of measurement.

1. Description 2. Order 3. Distance 4. Origin

Describe the two main and general tasks involved in problem definition.

1. Discussion with the decision maker - Researcher needs to understand the nature of both the problem and the decision which management faces in order to determine the underlying information needs - Discussions with industry experts, analysis of secondary data, and preliminary research are required to identify the factors that must be considered for the proper identification of the decision problem. 2. Translate the decision problem into a research problem.

Describe the three basic approaches to establishing validity

1. Face (Content) Validity: refers to the subjective agreement among professionals that a scale logically reflects the concept being measured. 2. Criterion validity: addresses the question: "Does my measure correlate with measures of similar concepts or known quantities?" - May be classified as either concurrent validity or predictive validity depending on the time sequence in which the new measurement scale and the criterion measure are correlated. - Concurrent validity increases with higher correlation between two different measurements of the same marketing phenomenon administered at the same point in time. - Predictive validity increases with higher correlation between a measured marketing phenomenon at one point in time and a predicted marketing phenomenon measured at a future point in time. 3. Construct validity: exists when a measure reliably measures and truthfully represents a unique concept and consists of several components: - Face or Content validity - Convergent validity depends on consistency; highly reliable scales contain convergent validity. - Criterion validity - Discriminant validity represents how unique or distinct is a measure; a scale should not correlate too highly with a measure of a different construct. - Fit validity represents the extent to which a researcher's proposed measurement approach (how all the constructs in a study will be measured) full explains the covariation (the way each item corresponds with all other items measured) among all the items involved in the research.

Clarify the distinction between the management decision problem and the marketing research problem.

1. Management Decision Problem - Asks what the decision maker needs to do - Action oriented, focuses on the symptoms 2. Marketing Research Problem - Stated in terms that enable researcher to gather information required by the DM in deciding what to do - Information oriented; focuses on the underlying causes

What are the disadvantages of secondary data?

1. May not fit your specific needs 2. Can be outdated 3. Accuracy may be questionable

What are the advantages of secondary data?

1. No personal bias 2. Easier to access 3. Inexpensive/easily available

Name and describe the primary scales of measurement.

1. Nominal scale 2. Ordinal scale 3. Interval scale 4. Ratio scale

What are the criteria to be used when evaluating secondary data?

1. Purpose for which data were collected 2. Content of data 3. Methodology used to collect data 4. When the data was collected 5. Accuracy of data 6. Overall dependability of data

What are the characteristics of valuable information?

1. Relevance - Relevance reflects how pertinent these particular facts are to the situation at hand. - Irrelevant data and information often creep into decision making. - Relevant data are facts about things that can be changed, and if they are changed, it will materially change the situation. - So the question is: Will a change in the data coincide with a change in some important outcome? 2. Completeness - Information completeness refers to having the right amount of information. - Often incomplete information leads decision makers to conduct marketing research. 3. Quality - Data quality is the degree to which data represent the true situation. - High quality data are accurate, valid, and reliable, and they represent reality faithfully. - Obtaining the same data from multiple sources is one check on its quality. - Critical issue in marketing research 4. Timeliness - Timeliness means that the data are current enough to still be relevant. - Computer technology has redefined standards for timely information. - Market dynamism represents the rate of change in environmental and competitive factors. 5. Global Marketplace - The potential marketplace is the entire world. - Large companies use a plethora of technology ranging from handheld tablets to satellites to gather and exchange data in an effort to keep track of business details globally.

Types of cross-sectional designs

1. Single cross-sectional designs: only one sample of respondents and information is obtained from this sample only once. 2. Multiple cross-sectional designs: 2+ samples of respondents, and information from each sample is obtained only once. Often, information from different samples is obtained at different times. 3. Cohort analysis: consists of a series of surveys conducted at appropriate time intervals, where the cohort serves as the basic unit of analysis. A cohort is a group of respondents who experience the same event within the same time interval.

What are the determinants of the need for marketing research?

1. Time constraints. 2. Availability of data. 3. The nature of the decision. 4. The value of the research information in relation to costs.

What are the major purposes for which descriptive research is conducted?

1. To describe the characteristics of relevant groups of units such as consumers, salespeople, organizations, and market areas. 2. To estimate the percentage of units in a specified population exhibiting a certain behavior. 3. To determine the perceptions of product characteristics. 4. To determine the degree to which marketing variables are associated. 5. To make specific predictions.

List three methods of exploratory research.

1. in-depth interviews 2. case studies 3. surveys

Discuss the importance of the marketing research proposal and list its main components.

A marketing research proposal is important as it is the "contract" between the firm and the client. Components: 1. Executive Summary 2. Background 3. Problem Definition/Objectives of the Research 4. Approach to the Problem 5. Research Design 6. Fieldwork/Data Collection 7. Data Analysis 8. Reporting 9. Cost and Time 10. Appendices

What is operationalization of a construct?

A process that involves identifying scales that correspond to variance in the concept to measure concepts.

Describe paired comparison scaling.

A respondent is presented with two objects and asked to select one according to some criterion. The data obtained are ordinal in nature. Paired comparison scaling is useful when the number of brands is limited, because it requires direct comparison and overt choice. Paired comparison scaling is the most widely used comparative scaling technique. With n brands, [n(n - 1) /2] paired comparisons are required. Under the assumption of transitivity, it is possible to convert paired comparison data to a rank order. - Implies that if brand A is preferred to B, and B is preferred to C, then Brand A is preferred to C.

What are the advantages of depth interviews over focus groups?

Advantages: 1 . Great depths of insights can be uncovered. 2. It associates the responses directly with the respondent. 3. There is no social pressure to conform to group response. Disadvantages: 1. Skilled interviewers capable of conducting depth interviews are expensive and difficult to find. 2. The lack of structure makes the results very susceptible to the influence of the interviewer. 3. The quality and completeness of the results depends very heavily on the skills of the interviewer. 4. The data obtained is problematic to analyze and interpret.

Independent variable

An input to a process or analysis that influences the dependent variable. While there can only be one dependent variable in a study, there may be multiple independent variables. - When the dependent variable is sales revenue, the elements of the marketing mix -- product, price, promotion and place -- will definitely influence the dependent variable and can therefore be identified as independent variables.

Descriptive Research

Begins with the structure already defined and proceeds to actual data collection in order to describe some market variable. For example, determining the average age of purchasers of your product. More examples: - 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

Description

By description we mean the unique labels or descriptors that are used to designate each value of the scale, e.g., 1. Female, 2. Male. It is important to remember that all scales possess this characteristic of description. Thus, all scales have unique labels or descriptors that are used to define the scale values or response options.

Order

By order I mean the relative sizes or positions of the descriptors. There are no absolute values associated with order, only relative values. Order is denoted by descriptors such as greater than, less than, and equal to. All scales do not possess the order characteristic. In the gender scale (1. Female, 2. Male) considered earlier, we have no way of determining whether a female is greater than or less than a male. Thus, the gender scale does not possess order.

What are the advantages of comparative scaling?

Comparative scaling involves the direct comparison of stimulus objects. Thus, two brands may be compared along a dimension such as quality 1. The major advantages of comparative scaling - Small differences between stimulus objects can be detected. As they compare the stimulus objects, respondents are forced to choose between them - Respondents approach the rating task from the same known reference points - They involve fewer theoretical assumptions - They also tend to reduce halo or carryover effects from one judgment to another. 2. The major disadvantages of comparative scales - The ordinal nature of the data - The inability to generalize beyond the stimulus objects scaled

Applied Marketing Research

Conducted to address a specific marketing decision for a specific firm or organization

Basic Marketing Research

Conducted without a specific decision in mind and it usually does not address the needs of a specific organization (just to expand knowledge) - Research to understand concepts, no specific company, process, decision in mind - Attempts to expand the limits of marketing knowledge in general, and as such it is not aimed at solving a particular pragmatic problem.

Focus Groups

Consist of 8 to 12 people interviewed by a trained moderator to gain insights on the salient aspects of a marketing problem by listening to a group of people from an appropriate target market

2 kinds of conclusive research

Descriptive and Causal

The three types of qualitative research

Direct: focus groups and depth interviews Indirect: indirect techniques (projective techniques)

What method is used to conduct causal research?

Experiments; in order to determine relationship between what we are studying and causal variables

Under what circumstances is it preferable to focus groups?

Focus groups are best suited to situations that are conducive to group input and brainstorming. - Example: if a company is testing out a product concept and would like feedback from multiple people in an industry, or if a company is developing a new ad campaign or messaging, focus groups allow for group participation, brainstorming, and generating new ideas through active discussion.

Longitudinal design

Involves collecting data periodically from a fixed sample of respondents (best for understanding changes). - provides series of pictures when viewed together and portrays an illustration of the situation & changes that are still taking place - a fixed sample (or samples) of population elements is measured repeatedly on the same variables

Cross-sectional design

Involves the collection of data from a sample at a single point in time & any given sample of population elements only once (gets more people to participate).

Provide an example of the management decision problem and a related marketing research problem.

MDP 1: Should a new product be introduced? MRP 1: To determine consumer preferences and purchase intentions for the proposed new product MDP 2: Should the advertising campaign be changed? MRP 2: To determine effectiveness of the current advertising campaign MDP 3: Should the price of the brand be increased? MRP 3: To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes

What are two inputs into the decision of whether marketing research should be undertaken?

Marketing research should be undertaken when the expected value of information it generates exceeds the costs of conducting the marketing research project. (1) the costs versus the benefits (2) the resources available to conduct the research (3) the resources available to implement the research findings (4) management's attitude toward research Do benefits outweigh the cost? What are the resources available?

What is a construct?

Mental abstraction based on perceptions of a phenomenon; it is defined with either a constitutive or an operational definition.

Interval scale

Numbers are used to rank objects such that numerically equal distances on the scale represent equal distances in the characteristic being measured. Examples include time and temperature.

What is the first step in the marketing research process?

Problem definition: define the marketing research problem to be addressed in terms of: discussion with the decision maker(s), interviews with industry experts, analysis of secondary data, and perhaps some qualitative research

Describe one classification of marketing research

Problem identification research & Problem solution research

Causal research

Proceeds from a pre-established structure but attempts to infer causal relationships between variables as opposed to describing variables. For example, determining if increased advertising spending has led to an increase in sales. - 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

What are the two general potential sources of error can affect a research design?

Random sample error & non-sampling error

Describe constant sum scaling

Respondents allocate a constant sum of units, such as 100 points to attributes of a product to reflect their importance. - It allows for fine discrimination among stimulus objects without requiring too much time. - If an attribute is unimportant, the respondent assigns it zero points. - If an attribute is twice as important as some other attribute, it receives twice as many points. - The sum of all the points is 100. Hence, the name of the scale.

Describe rank order scaling.

Respondents are presented with several objects simultaneously and asked to order or rank them according to some criterion. - For instance, rank toothpastes simultaneously according to overall preference. - It is possible that the respondent may dislike the brand ranked 1 in an absolute sense. - Furthermore, rank order scaling also results in ordinal data. - Only (n - 1) scaling decisions need be made in rank order scaling.

Non-sampling Errors

Sources other than sampling, and they may be random or nonrandom. Including errors in problem definition, approach, scales, questionnaire design, interviewing methods, and data preparation and analysis. 1. Nonresponse error: Arises when some of the respondents included in the sample do not respond. 2. Response errors: Arises when respondents give inaccurate answers or their answers are misrecorded or misanalyzed. - Errors made by the researchers, interviewers, and respondents, such as the wrong formulation of the questionnaire, misrecording of answers, hesitancy or unwillingness to provide answers, etc.

Marketing Research

Systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems (and opportunities) in marketing.

Dependent Variables

The behavioral responses of consumers to the independent variables are the dependent variables with which marketing research is concerned. These include purchases, buying intentions, preferences, and attitudes.

Distance

The characteristic of distance means that absolute differences between the scale descriptors are known and may be expressed in units. A five-person household has one person more than a four-person household, which in turn has one person more than a three-person household. Thus, the following scale possesses the distance characteristic. For example: Number of persons living in your household ___________. Notice, that a scale that has distance also has order. I know that a five-person household is greater than the four-person household in terms of the number of persons living in the household. Likewise, a three-person household is less than a four-person household. Thus, distance implies order but the reverse may not be true.

Why is it important to minimize total error rather than any particular source?

The information provided may be totally incorrect! Example: Researchers tend to control sampling error without giving attention to total error. They tend to use large samples which reduce the sampling error but increases considerably the non-sampling error; this error cannot be rid of.

Origin

The origin characteristic means that the scale has a unique or fixed beginning or true zero point. Thus, an exact measurement of income by a scale such as: What is the annual income of our household before taxes? $______________. It has a fixed origin or a true a zero point. An answer of zero would mean that the household has no income at all. A scale that has origin also has distance (and order and description). Many scales used in marketing research do not have a fixed origin or true zero point, as in the disagree-agree scale considered here. Such a scale is defined as 1 = Strongly disagree, 2 = Disagree, 3 = Neither agree nor disagree, 4 = agree, and 5 = Strongly agree. However, 1 is an arbitrary origin or starting point. Thus, this scale does not have a fixed origin or a true zero point and consequently does not possess the characteristic of origin.

Reliability

The reliability of a measure refers to the extent to which the measurement process is free from random errors—the consistency, precision, and predictability of research findings.

Non-comparative scales

The respondent provides whatever standard seems appropriate to him/her, thus, only one object is evaluated at a time. In this case, one brand is rated on a scale independent of other brands - Each object is scaled independently of the others in the stimulus set. Most widely used in marketing research.

Validity

The validity of a measure refers to the extent to which the measurement process is free from systematic error—its accuracy.

Random Sampling Errors

The variation between the true mean value for the population and the true mean value for the original sample - Rises when the sample selected is not perfectly representative of the population it represents - In this case the mean value for the sample differs from the actual population value.

What is total error?

The variation between the true mean value in the population of the variable of interest and the observed mean value obtained in the marketing research project.

What are three of the four types of projective techniques we discussed in the class?

These techniques are indirect methods of qualitative research that aim to identify a consumers' deep beliefs/emotions and why they like or do certain things: i. word association ii. image association iii. choice ordering iv. personification v. mood boards vi. withdrawal techniques

Ordinal scale

This is a ranking scale in which numbers are assigned to objects to indicate the relative extent to which some characteristic is possessed. It is then possible to determine whether an object has more or less of a characteristic than some other object.

Nominal scale

This is used only as a labeling scheme where numbers serve only as labels or tags for identifying and classifying objects. The only characteristic possessed by these scales is description. The numbers in a nominal scale do not reflect the amount of a characteristic possessed by the objects, rather they are used only for identification.

Ratio Scale

This is used to identify or classify objects, rank order the objects, and compare intervals and differences. For example, height, age, and income. Possess all of the properties of the nominal, ordinal, and interval scales and, in addition, an absolute zero point. All statistical techniques can be applied.

Exploratory Research

Typically used to provide structure and insight into the research problem. For example, using focus groups to determine key factors related to the use of your product. Other examples can be constructed: - 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

What is an analytical model?

Verbal, graphical, or mathematical representation based on some theoretical foundations developed from the theoretic base of the research which describes the relationship among the variables of interest in the present situation - By manipulating these variables, a researcher can isolate the relevant variables

When is the use of qualitative approaches applicable or preferred in research?

When it is difficult to develop specific and actionable decision statements or research objectives. When the research objective is to develop an understanding of some phenomena in greater detail and in much depth. When the research objective is to learn how consumers use a product in its natural setting or to learn how to express some concept in colloquial terms When some behavior the researcher is studying is particularly context dependent When a fresh approach to studying some problem is needed.

Components of an approach to a marketing research project

a. Objective/Theoretical Foundations b. Analytical Model c. Research Questions d. Hypotheses e. Specification of the Information Needed

Describe what is meant by indirect qualitative techniques (also AKA projective techniques).

are used to ask the respondent to interpret the behavior of others and thus add insight into personally held beliefs of the respondent.

Depth Interview

conducted on a one-on-one basis to uncover underlying motivations, beliefs, attitudes, and feelings on a topic; depth interviews are preferable to focus groups in cases where detailed probing of the individual is required

Analysis

data are analyzed, interpreted, and inferences are drawn

Collection

data must be obtained from relevant sources

What are disadvantages of focus groups?

i. It is harder to correctly interpret the responses. ii. There is extreme dependence on the performance of the moderator. iii. Coding and analysis is cumbersome. iv. The group is not representative of the general population. v. The results are subject to researcher or client bias.

What are the relative advantages of observation?

i. Observational methods permit measurement of actual behavior. ii. The potential bias caused by the interviewer and the interviewing process is reduced or eliminated. iii. Certain types of data can be collected best or only by observation. iv. If the observed phenomenon occurs at relatively frequent intervals and is of short duration, observational methods may cost less and be faster than the communication methods.

What are the advantages of focus groups over depth interviews?

i. Synergism - Putting a group of people together will produce a wider range of information ii. Snowballing - A bandwagon effect often operates in a group interview, in that one person's comment triggers a chain reaction from the other participants. iii. Stimulation - Usually after a brief introductory period the respondents want to express their ideas and expose their feelings as the general level of excitement over the topic increases in the group. iv. Security - Because the participants' feelings are similar to those of the others group members, they feel comfortable and are therefore willing to express their ideas and feelings. v. Spontaneity - since participants are not required to answer specific questions, their responses can be spontaneous and unconventional and should therefore provide an accurate idea of their views. vi. Serendipity - Ideas are more likely to arise out of the blue in a group than in an individual interview vii. Specialization - Because a number of participants are involved simultaneously, use of a highly trained, but expensive, interview is justified. viii. Scientific scrutiny - The group interview allows close scrutiny of the data collection process. ix. Structure - The group interview allows for flexibility in the topics covered and the depth with which they are treated. x. Speed - Since a number of individuals are being interviewed at the same time, data collection and analysis proceed relatively quickly.

Problem identification research

identify problems that are not apparent on the surface and yet exist or are likely to arise in the future

Identification

involves defining the marketing research problem (or opportunity) and determining the information that is needed to address it

Observation

involves recording the behavioral patterns of people, objects, and events in a systematic manner to obtain information about the phenomenon of interest

Qualitative marketing research

is research that addresses marketing objectives through techniques that allow the researcher to provide elaborate interpretations of market phenomena without depending on numerical measurement. Its focus is on discovering true inner meanings and new insights

Product-oriented

prioritizes decision-making in a way that emphasizes technical superiority in the product. Thus, input from technicians and experts in the field are very important in making critical decisions

Problem solution research

solves specific marketing problems such as segmentation, product, pricing promotion, and distribution research

Measurement

the assignment of numbers or other symbols to characteristics of objects according to certain pre-specified rules.

Dissemination of information

the findings, implications, and recommendations are provided in a format that makes this information actionable and directly useful as an input into decision making

What is the primary objective of exploratory research?

to provide structure, insight into the research problem