Chapter 10: Marketing Research

The second step in the marketing research project involves design. In this step, researchers identify the type of __________ needed and work out the type of __________ necessary to collect it.

data: research

Marketing Research Process Step 3: Collecting Data

data collections only begins after the research design process, and can be collected from secondary data or primary data

Big Data

data sets that are too large and complex to analyze with conventional data management and data mining software

Qualitative Research

-uses broad, open ended, questions to understand the phenomenon of interest. -it provides initial information that helps the researcher more clearly formulate the research objectives -is more informal than quantitative research methods and includes observation, following social media sites, in depth interviews, and focus groups

The expected financial contribution that a customer will give to a company over the course of their life is called _____ _____ _____.

1) Customer 2) Lifetime 3) Value

The American marketing Association provides three guidelines for conducting marketing research:

1)it prohibits selling or fund raising under the guise of conducting research 2)it supports maintaining research integrity by avoiding misrepresentation or the omission of pertinent research data 3)it encourages the fair treatment of clients and suppliers

Field Marketing Research has seen enormous changes in the last few years because:

1)the increase in the amounts of data to which retailers, service providers, and manufacturers have access 2)their ability to collect these data from transactions, customer relationship management (CRM) websites, and social media platforms that firms increasingly use to engage with their customers 3)the ease of collecting and these data 4)the computing ability to readily available to manipulate data in real time 5)access to in house or available software to convert the data into valuable decision-making insights using analytic dashboard

The Market Research Process

1. Defining the objectives and research needs 2. Designing the research 3. Collecting the data 4. Analyzing the data and developing insights 5. Developing and implementing an action plan

Primary data

are those data collected to address specific research needs

Scanner Data

are used in quantitative research obtained from scanner readings of Universal Product Code (UPC) labels at checkout counters.

Churn

the number of consumers who stop using a product or service/the average number of consumers of that product or service

Neuromarketing

the process of examining consumers' brain patterns to determine their response to marketing communications, products, or services for the purpose of developing marketing tactics or strategies

In most situations, data collection should only begin after ______.

the research design process is finished

Data Mining

the use of variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables.

Marketing Research Process Step 4: Analyzing the Data and Developing Insights

to generate meaningful information, researchers analyze and make use of the collected data. -in this context, data can be defined as raw numbers or other factual information that, on their own, have limited value to marketers.

______ research, such as a focus group, attempts to begin to understand phenomena of interest with broad, open-ended questions.

Qualitative

Advantages &Disadvantages of Secondary Research

Advantages: 1)Saves time in collecting data because they are readily available 2)Free or inexpensive Disadvantages: 1)May not be precisely relevant to information needs 2)Information may not be timely 3)Sources may not be original, and therefore usefulness is an issue 4)Methodologies for collecting data may not be appropriate 5)Data sources may be biased

Advantages &Disadvantages of Primary Research

Advantages: 1)specific to the immediate data needs and topic at hand 2)offers behavioral insights generally not available from secondary research Disadvantages: 1)Costly 2)Time Consuming 3)Requires more sophisticated training and experience to design study and collect data

Marketing Research Process Step 1: Defining the Objectives and Research Needs

Because research is both expensive and time-consuming, it is important to establish in advance exactly what problem needs to be solved.

Popular media has coined the term _______ _______ to refer to the excess data that companies can access but cannot organize using conventional data management.

Big Data

Which of the following is data that companies have access to but cannot handle using conventional data management and data mining software?

Big data

Marketing research consist of which of the following?

Collecting data Interpreting data Analyzing data

The step in the marketing research process that follows research design is ______.

Collecting the data

Sentiment Mining

Data gathered by evaluating customer comments posted through social media sites such as Facebook and Twitter

The analyst prepares the results to present them to a firm's ______ as a final step in the marketing research process.

Decision Makers

A firm that is considering changing the colors used on its packaging wants to determine the effect of different color schemes on sales. To do so, the firm places three different packages in stores in three different markets. What type of research is this?

Experimental

__________ research systematically manipulates one or more variables to determine which variables have a causal effect on another variable.

Experimental

Qualitative research is informal that relies on experiments and surveys.

False

True or false: A structured questionnaire is a form that has questions designed to gather detailed data about the feelings and thoughts of respondents.

False

True or false: Marketing researchers are free to use customer data in any way they need to, as long as the researchers did not collect it.

False

Which of these is NOT an advantage of secondary data?

It is easy to customize.

Which of these is NOT an advantage of secondary research?

It is the best source of unbiased data

The bottom line:

Marketing research should be used only to produce unbiased, factual information

______ is a qualitative research method that entails examining purchase and consumption behavior through personal viewing or video camera scrutiny.

Observation

In the second step of the marketing research process, what factor determines the type of data needed?

Project Objectives

Secondary Data

are pieces of information that have been collected prior to the start of the focal research project

What is a structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data.

Quantitative Research

What is a data collection technique that features a document with questions designed to gather information from respondents to attain researcher objectives?

Questionnaire

Which of the following is an accurate definition of the term data?

Raw Numbers with no intrinsic meaning

Facial Recognition Software

Software that can automatically identify or verify individuals from video or digital images.

If a media company wants information on consumers' television viewing habits, it can purchase reports compiled by commercial research firms such as Nielsen. This is an example of ______ data.

Syndicated

Marketers can purchase ________ data, which is secondary data available for a fee from commercial research firms.

Syndicated

When researchers define the objectives and needs of their project, what are they trying to establish?

The problem that needs to be solved

What are the characteristics of structured questions? (Select all that apply.)

They include specific answers to choose from. They are closed-ended.

T or F: Inexpensive data (secondary data) sources are not adequate to meet researchers' needs. Because the data initially were acquired for some purpose other than the research question at hand, they may not be completely relevant or timely.

True

T or F: although readily accessible, these inexpensive sources may not be specific or timely enough to solve the marketer's research needs and objectives.

True

Questionnaire

a document that features a set of questions designed to gather information from respondents and thereby accomplish the researches's objectives.

Sample

a group of customers who represent the customers of interest in a research study

Marketing Research

a prerequisite of successful decision making. It consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers who are involved in marketing goods, services, or ideas.

Focus Group Interviews

a research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry

Survey Research

a systematic means of collecting information from people using a questionnaire

Experimental Research

a type of quantitative research that systematically manipulates one or more variables to determine which variables have a casual effect on other variables.

Observation

an exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny

In-Depth Interviews

an exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue

Marketing Research Process Step 5: Developing and Implementing an Action Plan

analyst prepares the results and presents them to the appropriate decision makers, who undertake appropriate marketing strategies -marketing report includes: an executive summary, the body of report, research objectives, the conclusion, the limitations, and the appropriate supplemental tables, figures, and appendixes.

Structured Question

are close-ended questions fro which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate.

Panel Data

are information collected from a group of consumers, organized into panels, over time.

As firms build databases that contain customer ______, marketing researchers must be careful not to abuse this collection, which may contain sensitive personal details.

information

Data Warehouses

large computer files that store millions and even billions of pieces of individual data

Market researchers use social media to ______.

learn about customers' likes and dislikes

Syndicated External Secondary Data

marketers can purchase external secondary data called syndicated data, which are available for a free from commercial research firms such as IRI, the National Purchase Diary Panel, and Nielsen.

Internal Secondary Data

one of the most valuable resources such firms have at their disposal is their rich cache of customer information and purchase history. However, it can be difficult to make sense of the millions and even billions of pieces of individual data.

Unstructured Questions

open ended and allow respondents to answer in their own words, an unstructured question like "what are the most important characteristic for choosing a brand of shampoo?"

When data are interpreted, they become infomration...

organized, analyzed, interpreted data that offer value to marketers

In order to figure out CLV, companies investigate a person's ______ behaviors to predict ______ purchases.

past; future

Marketing Research Process Step 2: Designing the Research

researchers identify the type of data needed and determine the research necessary to collect them. Recall that the objectives of the project drive the type of data needed