RHIM 5353 Ch. 4

omnibus panels

Discontinuous panels, or omnibus panels, are samples of respondents who answer different questions on a regular basis over a period of time.

Key-informant technique

Experience surveys may also be called key- informant or lead-user surveys.

Methods of conducting exploratory research

Secondary analysis - process of searching for and interpreting information relevant to the research topic. Analyzing secondary data is almost always an important part of a marketing research project. Secondary information is widespread and readily available.

Ability to control distribution and promotion

Three criteria useful for selecting test-market cities are representativeness, degree of isolation,and ability to control distribution and promotion.

Degree of isolation

Three criteria useful for selecting test-market cities are representativeness, degree of isolation,and ability to control distribution and promotion.

Representativeness

Three criteria useful for selecting test-market cities are representativeness, degree of isolation,and ability to control distribution and promotion. The degree to which elements of the sample are like elements in the population

Extraneous variables

are all of the variables other than the independent variables that may have an effect on the dependent variable. To illustrate, let's say you and your friend wanted to know if brand of gasoline (independent variable) affected gas mileage in automo- biles (dependent variable).

Sample surveys

are cross- sectional studies whose samples are designed in such a way as to be representative of a specific population at a pre-determined margin of error. Cross-sectional studies normally are designed to represent the population of interest and employ fairly large sample sizes, so many cross-sectional studies are referred to as sample surveys. cross-sectional studies whose samples are drawn in such a way as to be representative of a specific population.

Continuous panels

are samples of respondents who agree to answer the same questions at periodic intervals. Continuous panel examples include many of the syndicated data panels that ask panel members to record their purchases using diaries or scanners. The essential point is that panel members are asked to record the same type of information (for example, grocery store purchases) on an ongoing basis.

Panels

are samples of respondents who have agreed to provide information or answer questions at regular intervals. Maintaining a representative panel of respondents is a major undertaking.

Brand switching studies

are studies that examine the extent that consumers are loyal to one brand. Such studies can be invaluable to brand managers because cross-sectional studies that show changes in market shares between several brands can be misleading.

Laboratory experiments

are those in which one or more independent variables are manipulated and measures of the dependent variable are taken in a contrived, artificial setting for the pur- pose of controlling the many possible extraneous variables that may affect the dependent variable. There are advantages to laboratory experiments. First, they allow the researcher to control for the effects of extraneous variables. Second, compared to field experiments, lab experiments may be conducted quickly and with less expense. The disadvantage of laboratory experiments is the lack of a natural setting and, therefore, the concern that the findings do not generalize to the real world.

Field experiments

are those in which the independent variables are manipulated and the measurements of the dependent variable are taken in their natural setting. Many marketing experiments are conducted in natural settings, such as in supermarkets, malls, retail stores, and consumers' homes.

Independent variables

are variables over which the researcher has control and wishes to manipulate to measure the effect on the dependent variable. Broadly speaking, you can think of the 4 Ps (product, price, promotion, and place) as independent variables.

Dependent variables

are variables that are measured in response to changes in independent variables. Common dependent variables include sales, market share, customer satisfaction, sales force turnover, time spent on site, unique net profits, and RONW (return on net worth).

Before-after with control group

design may be achieved by randomly dividing subjects of the experiment into two groups: the control group and the experimental group.

Internal validity

in an experimental study is the extent to which the researcher is certain that a change in a dependent variable is actually due to the independent variable. This is another way of asking if the proper experimental design was used and if it was implemented correctly. To illustrate an experiment that lacks internal validity, let us return to our change in menu information example.

Experimental group

is a group that has been exposed to a change in the independent variable.

Control group

is a group whose subjects have not been exposed to the change in the independent variable. Control of extraneous variables is typically achieved by the use of a second group of subjects, known as a control group.

Research design

is a master plan that specifies the methods that will be used to collect and analyze the information needed for a research project.

Posttest

is a measurement of the dependent variable that is taken after changing the independent variable.

Pretest

is a measurement of the dependent variable that is taken prior to changing the independent variable.

Experimental design

is a procedure for devising an experimental setting so that a change in a dependent variable may be attributed solely to the change in an independent variable. In other words, experimental designs are procedures that allow experimenters to control for the effects on a dependent variable by any extraneous variable. In this way, the experimenter is assured that any change in the dependent variable was due only to the change in the indepen- dent variable. O = The measurement of a dependent variable X = The manipulation, or change, of an independent variable R = Random assignment of subjects (e.g., consumers, stores) to experimental and control groups E = Experimental effect—that is, the change in the dependent variable due to the independent variable

Case analysis

is a review of available information about one or more former situations to gain understanding of a current research problem with similar characteristics.

Experiment

is a type of study in which one or more independent variables are manipulated to see how one or more dependent variables are affected, while also controlling the effects of additional extraneous variables.

test marketing

is conducting an experiment or study in a field setting to evaluate a new product or service or other elements of the marketing mix. There are two broad classes of uses of test markets: (1) to test the sales potential for a new product or service, and (2) to test varia- tions in the marketing mix for a product or service.

Simulated test markets (STM's)

is one in which a limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume. They are much faster and only cost 5% to 10% of the cost of a standard test market. STMs are confidential; competitors are less likely to know about the test. The primary disadvantage is that STMs are not as accurate as full-scale test markets, as they are dependent on the assumptions built into the models.

Electronic test markets

is one in which a panel of consumers has agreed to carry identification cards that each consumer presents when buying goods and services. These tests are conducted only in a small number of cities in which local retail- ers have agreed to participate. The advantage of the card is that as consumers buy (or do not buy) the test product, demographic information on the consumers is automatically recorded.

Standard test markets

is one in which the firm tests the product or marketing- mix variables through the company's normal distribution channels. A dis- advantage of this type of test market is that competitors are immediately aware of the new product or service. However, standard test markets are good indicators as to how the product will actually perform because they are conducted in real settings.

Controlled test markets

is one that is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors. Companies specializing in providing this service provide dollar incentives for distributors to provide them with guaranteed shelf space

A/b testing

is testing two alternatives (A and B) to see which one performs better.

Descriptive research

is undertaken to collect data to examine the characteristics of consumers and/or markets. When we wish to know who our customers are, what brands they buy and in what quantities, where they buy the brands, when they shop, and how they found out about our products, we turn to descriptive research.

Lead-user survey

is used to acquire information from lead users of a new technology.7 A manufacturer of a new building material that provides greater insulation at less cost may call a dozen contractors, describe the new material, and ask them how likely they would be to consider using it on their next building.

Casual research

is used to measure causality in relationships, such as "if x, then y."

Experience surveys

refer to gathering information from those thought to be knowledgeable on the issues relevant to the research problem. Experience surveys may also be called key- informant or lead-user surveys.

External validity

refers to the extent to which a researcher can be certain that a relationship observed between independent and dependent variables during an experiment would occur under real- world conditions.

Casuality

relationship in which one or more variables affect one or more other variables.

Longitudinal studies

repeatedly measure the same sample units of a population over a period of time. Because longitudinal studies involve multiple measurements, they can be described as "movies" of the population. Longitudinal studies are employed by most of the largest companies that use marketing research. To ensure the success of the longitudinal study, researchers must have access to the same members of a sample, called a panel, so as to take repeated measurements.

Cross-sectional studies

studies measure units from a sample of the population at one point in time. A study measuring your attitude toward add- ing a required internship course to your degree program, for example, would be a cross-sec- tional study. Your attitude toward the topic is measured at one point in time.

Exploratory research

unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. By unstructured, we mean that exploratory research does not have a predetermined set of procedures. The nature of the research changes as the researcher gains information. It is informal in that there are no formal set of objectives, sample plan, or questionnaire. Exploratory research is used to gain background information, to define terms, to clarify problems and hypotheses, and to establish research priorities.

Discontinuous panels

vary questions from one panel measurement to the next. Discontinuous panels are sometimes referred to as omnibus panels. (Omnibus means "including or covering many things or classes.") They may be used for a variety of purposes, and the information collected by a discontinuous panel varies from one panel measurement to the next. The advantage of discontinuous (omnibus) panels is that they rep- resent a group of persons who have made themselves available for research.