MKT302 Exam 2

Experimental Designs

True Experimental Designs: Before & After w/ Control Control Group: (O2 - O1) - (O4- O3) have to compare before and after

Purpose of Descriptive research

- Confirm theories -Measure Brand Loyalty -Describe population -Build customer profile -Gain specific information about respondents

Advantages of secondary data

-Can enhance primary data -Can be obtained quickly -Is usually inexpensive -Might provide a solution to a problem -Is usually available from various sources -Might alert one to broader problems -Can clarify or redefine the problem/issue at hand

Purpose of casual research

-Confirm theories -Identify cause and effect relationships

Purpose of Exploratory research

-Define terms -Clarify problems -Develop theories -Establish priorities -Gain general information

Typical Primary data

-Demographic characteristics -Socioeconomic characteristics -Lifestyle characteristics -Attitude -Opinions -Awareness -Knowledge -Intentions -Motivation -Behavior

Nature of Primary Data

-Direct from customer/end user -Can be expensive -Can be representative of the population -Generally for specific use related to research issue -Surveys - cross sectional and longitudinal -Focus groups -Interviews -Observation Studies -Market Testing

Marketing Research Process

-Establish the research need -Determine research purpose -Establish research objectives -Develop Research approach (Exploratory, Descriptive, causal) -Questionnaire Construction -Determine the sampling plan (Probability vs. non-probability, Determine sample size) -Collect the data -Analyze the data -Present the findings

Key methods of Causal research

-Experiments (field or lab)

Key Methods of Exploratory research

-Focus groups *most typical -Depth interviews -Secondary data -Case analysis -Pilot studies

Disadvantages of secondary data

-Might be outdated -Source might be questionable -Could be hard to analyze -Might be misapplied to your situation -Might be biased - intentionally or unintentionally

Nature of secondary data

-Someone else may have done initial research -Generally for a purpose other than research issue at hand -Internal Sources: Databases, invoices, sales records, financial reports, content analysis -External Sources:Journals, trade publications, news papers, Internet, TV news stories, books, etc.

Issues and what quantitative allows

-Types of questions: Limited Probing -Sample size: Large -Information per respondent: Varies -Administration requirements: Not as specialized -Types of analysis: statistical & summation -Hardware: Questionnaires / computers -Degree of replicability: High -Researcher training: "harder" sciences -Type of research: Descriptive & causal

Issues and what Qualitative allows

-Types of questions: Probing -Sample size: Small -Information per respondent: Substantial -Administration requirements: Interviewer with special skills -Types of analysis: Subjective & interpretive -Hardware: Records, projection equip., etc. -Degree of replicability: Low -Researcher training: "softer" sciences -Type of research: Exploratory

Ex. of some Helpful Links for Secondary Data Finding Secondary Data on the Internet - Getting Started

-US Federal Statistics -US Small Business Administration -US bureau of Labor Statistics -US Census Bureau -ABC News -Fox news -MSNBC -USA Today -CNN -CBS News -Wall Street Journal -New York Times -Washington Post

Key Methods of Descriptive research

-cross sectional surveys **most typical -secondary data -Longitudinal surveys

Focus Group Defined:

A moderator-led, in-depth discussion on a particular topic or concepts. Relatively speaking, it's a loosely structured, spontaneous discussion managed by a moderator.

Concomitant Variation:

A predictable statistical relationship between variables (correlation).

Define Causal research

Causal research is used when one wants to gain a better understanding of the cause-and-effect relationships between the relevant variables being studied.

Some Key Qualitative Techniques:

Focus Groups Depth Interviews Observation Market Testing Perceptual Mapping Often dependent on: -Time -Budget -Product / service tangibility -Research goals/objectives -Participant availability -Desired analysis sophistication -Whether quantitative research follows

Limitations of Experimental Research

High Cost Security Issues Process Contamination limitation is that these tests are typically really expensive. And have opportunity cost because taking space for something else. Security problems as well. Competition will know and can contaminate your results.

Key Variables in an experiment

Independent or treatment: variables you control directly such as price, packaging, distribution, product features, etc. •Dependent: variables you do not directly control such as sales or customer satisfaction - (might control them by manipulating the independent variable) •Extraneous: Factors you do not control but have to live with (randomization and physical control help control this)

Types of Experiments

Laboratory: Experiments occurring in a controlled setting -More control in a laboratory. Internal validity is high in lab because lab controls everything and you can make sure only X changes. External validity is low. Field: Experiments conducted outside the laboratory in an actual environment and setting such as a market, car dealership, library, train station, or shopping mall. -Field we don't have control of everything, but it is what you are ultimately looking to find. Trying to predict field from lab. Higher External validity but lower Internal validity

Observations Methods

Mechanical: (Eye movement recorders, Scanners - grocery stores, Voice pitch analysis, People monitors in TV, Traffic counters) Physical Trace: (Going through garbage, Cataloguing and analyzing clues people leave behind) Content Analysis: (Sifting through writings & summarizing, Reviewing articles for patterns) Focus Groups: (Measuring body language) Direct vs. Indirect: (Do people know they're being watched?) Contrived vs. Natural: (Is the setting made up by the researcher or are you observing a natural occurring event?) Disguised vs. Undisguised: (Does the subject know the purpose of the research?)

Drawbacks of Qualitative Research

Must be aware that: 1. Attitudinal, perception, and belief differences revealed during qualitative research might not be easily measured. Quantitative research will more precisely measure these differences. 2. is often not statistically representative of the general population. Although its results might give you a good idea about the population, they do not allow you to precisely gauge the populations' responses based on the limited sample typical of qualitative research. 3. Anyone can purport to be an expert.

Measures for Evaluating Your Data (These Four Key Measures are Interrelated)

Relevance: • Does information measure what we think it measures? • Does it apply to the audience we think it applies to? Timeliness: • Have we received it in time to make decisions/conclusions? • Is the data out of date? • When was the data collected? Quality / Accuracy: • How was the data obtained? • Who collected the data? • Why and for what purpose was the data collected? Completeness: • Is the whole story captured? • Is there a sufficient amount of data to tell the story

Define Quantitative Data

Research that uses mathematical analysis. Typically research analysis is done using measurable, numeric standards.

Define Qualitative Data

Research whose findings are not subject to quantification or quantitative analysis. Its research conclusions are not based on precisely, measurable statistics but on more subjective observations and analysis.

Test Market:

Testing of new product/service or some element of the marketing mix using an experimental or quasi experimental design. Often done during the product design phase. primary data

Define External Validity:

The extent to which causal relationships measured in an experiment can be generalized to outside people, settings, and time. -Field we don't have control of everything, but it is what you are ultimately looking to find. Trying to predict field from lab. Higher External validity but lower Internal validity Validity has to do with accuracy

Define Internal Validity:

The extent to which competing explanations for the experimental results observed can be ruled out. -Internal validity is high in lab because lab controls everything and you can make sure only X changes. External validity is low. Validity has to do with accuracy

Define Observation Research

The systematic process of recording patterns of occurrences or behaviors - normally without communicating with the people involved.

The basic rule that should be followed by all researchers when beginning the data collection process is to: a. begin with secondary data, then proceed if necessary to collect primary data. b. always start by consulting the Statistical Abstract of the United States. c. begin with primary data, then supplement if needed with secondary data. d. always start with exploratory research. e. design a field experiment to collect primary data.

a. begin with secondary data, then proceed if necessary to collect primary data.

Exploratory research begins with a. vague understanding of the topics of interest. b. specific hypotheses. c. cause-and-effect hypotheses. d. a and c.

a. vague understanding of the topics of interest. o (after that then you develop specific hypothesis and so on)

Which of the following is not a disadvantage of secondary data? a. problems of fit b. currency of information c. ill fitting for the problem d. problems of accuracy e. all of the above are potential disadvantages of secondary data

all the above. (Secondary data disadvantage is that it can be outdated, potentially false, doesn't apply, was it large enough of a sample, who did it, compensation or not, particular people or not, what's their demographic does it fit yours exactly (ill fitting) lacks accuracy (can't blame if research is 18-34 and we want 18-24 because they didn't do it for us it was fitting for them))

The two types of experiments that can be distinguished are a. laboratory and survey. b. laboratory and field. c. field and survey d. scientific and field. e. cross-sectional and panel.

b. laboratory and field.

What is the basic purpose of marketing research? a. to make decisions for managers b. to furnish information that helps managers make better decisions c. to assist government regulatory agencies d. to confirm management's decisions e. to help develop new products

b. to furnish information that helps managers make better decisions

Which of the following is capable of providing more convincing evidence of causal relationships? a. an exploratory design b. a descriptive design c. an experiment d. turnover analysis e. cross-sectional analysis

c. an experiment

When referring to the question as to what populations and settings can the observed effect be generalized, one is referring to: a. internal validity b. turnover analysis c. external validity d. longitudinal analysis. e. cross-sectional analysis.

c. external validity

Which is a valid disadvantage of test marketing? a. it is costly b. it is very difficult to maintain secrecy from competitors c. it is time consuming d. all of the above

d. all of the above

Exploratory studies: a. usually involve probability sampling plans. b. usually use structured questionnaires. c. use a formal design. d. are characterized by flexibility. e. require a clear, precise statement of the research hypothesis.

d. are characterized by flexibility. -(focus groups etc. discover insights and explore ideas is exploratory) -Survey is precise, exact

A causal research design is typically concerned with: a. the frequency with which something occurs. b. the discovery of ideas and insights. c. how two variables vary together. d. the determination of cause-and-effect relationships. e. establishing priorities when studying competing explanations of phenomenon.

d. the determination of cause-and-effect relationships. (example is experiments) (when do you use experiments?) (The causal-->cause) (discover insights and explore ideas is exploratory, focus groups etc.)

Define Exploratory research

is used when one is seeking insights into the general nature of a problem, the possible decision alternatives, and the relevant variables that need to be considered. This research is good for gaining a good general understanding of the market. It should provide a good foundation for additional research.

Define Descriptive research

is used when one wants to gain a better understanding of the specifics or details of the market. It can provide a good snapshot of the marketing environment. Determining marketing trends, brand loyalty, customer profiles are key applications of this kind of research. It is fixed, objective, same for everyone Ex. Standardized testing

What are Longitudinal surveys

o Identify market trends o Use the same survey & same sample (same people same sample/survey) o Use tracking panels & groups common method of descriptive research good for showing brand loyalty-switching matrix horizontal tells us who switched

What are cross sectional surveys

o Measure something in specific intervals o This is one-time snapshots of population o Use the same survey & different sample (same people different sample/survey) most common method of descriptive research

The distinction between primary and secondary data is defined by: a. the method of collection. b. the purpose of the investigation. c. the form used for collection. d. the group sponsoring the collection. e. the type of data collected.

the purpose of the investigation. (who collects it (the group) (the type) doesn't matter can be me or someone else collecting and can be considered secondary data not primary) (method of collection is survey or interview) If you did the research for something, then later want to use it for another project that is secondary data

An Experiment:

• A research approach in which one or more variables are manipulated and the effect on another variable is observed. Experimental design. Experimental is the best way of finding out cause and effect

Costs of Test Marketing

• Advertising expenses • Point-of-purchase materials • Coupons and sampling • Travel expenses • Need for customized research • Possible diversion of sales for your other products • Potentially bad press if experiment fails • Letting competitors know what your company is doing • Falsely thinking sample results representative of the population

A causal relationships must show three things:

• Concomitant variation (correlation) • Appropriate time order of occurrence • Elimination of other possible causal factors - also called systematic elimination If there is correlation, there may or may NOT be causality First 2 conditions are easier to find out the third is difficult For the 3 we have to create experiment and control everything we can and randomly assign people to conditions and this will give us a well-designed experiment

Some Key Characteristics of a Focus Group:

• Good for idea generation • Can be helpful in gaining insight to motives, attitudes, perceptions • Helpful to understanding customer vocabulary • Can reveal needs / likes & dislikes / prejudices driven by emotions

Some Particulars of a Focus Group:

• Meeting place should be a neutral site • Proper set up with observation room & video taping • Generally 8 to 12 participants is best • Offer incentives for participation • It generally lasts about 1 to 2 hours • Selection process: -------• Potential opinion leaders are best -------• Homogeneity of participants helps conversation flow -------• Participants must be chosen for relevance to the topic • Managing the group dynamics is critical • Moderator's role to chart/control discussion is key • Create moderator's guide to include: -------• Timetable for each topic -------• Clear goals/questions to be answered -------• Strategy for keeping group on task / focused

Disadvantages of observation research

• Only behavior can be measured • Can't measure attitudes, beliefs, intentions, or feelings • Not always a good representation of the general population • Data analysis is generally more qualitative than quantitative • It can be expensive and time consuming if subjects not readily available • Data can be time sensitive making predictive analysis tricky

General Conditions Needed is Observation Research:

• The needed information must be either observable or inferable • The behavior should be repetitive, frequent, or in some manner predictable • The behavior must be relatively short in duration

Define Ethnographic Research

• The study of human behavior in its natural context, involving observation of behavior and physical setting.

Advantages of Observations Methods

• You see what people actually do - rather than what they say they do • First hand information is less prone to biases • The observational data can be executed quickly and relatively accurately • Electronic collection such as scanners is more efficient than manual counts • Clients can also observe their customers along with the researcher