Chapter 9- Marketing Research

mystery shopper

researchers posing as customers who gather observational data about a store. pretend to be shopper, but actually auditing stores and seeing how they function. collects data about employee/customer interactions

random error

sampling error occurs b/c the selected sample is an imperfect representation of the overall population. will always occur

measurement error

sampling error that tends to be the largest

frame error

sampling error when a sample drawn from the population differs from the target population

sampling error

sampling error when a sample somehow does not represent the target population

measurement error

sampling error when there is a difference between the information desired and the information provided by the process. EX: McD's assumes your high frequency customer (go 1X/week) but you go somewhere else 4X/ week

panel data

secondary data that is aggregated at customer level. shows what customer is buying and how consumer buys over time

panel research

secondary data that shows how people buy over time. serves as market basket analysis, can see customer price sensitivity, can track purchase changes over time

behavioral targeting (bt) observation

sometimes called tracking. form of observation marketing research that combines a consumer's online activity (through tracking cookies) with psychographic and demographic profiles compiled in databases. combines looking at cookies online with data mining and targeting

observation reserach

source of primary data. research method that relies on four types of observation: people watching people people watching an activity machines watching people machines watching an activity

preparing and presenting the report

step in marketing research project that includes taking analyzed data and interpreting it, finding insights from analysis, and creating recommendations

following up

step in marketing research project that observes if recommendations given were effective. asks questions: 1. were the recommendations followed? 2. was sufficient decision-making included in the report? 3. what could have been done to make the report more useful to management?

analyzing data

step in marketing research project that uses statistical methods. EX of method is cross-tabulation

collecting the data

step of marketing research project that aligns with following description: must have methods for doing. EX:field service firm focus group facilities, mail intercept locations, test product storage, kitchen facilities

big data

the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data.

survey research

the most popular technique for gathering primary data, in which a researcher interacts with people to obtain facts, opinions, and attitudes

Marketing Research

the process of planning, collecting, and analyzing data relevant to a marketing decision. how we collect and analyze data to make meaningful market decisions

marketing research objective

the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information. is a goal statement

ethnographic research

the study of human behavior in its natural context; involves observation of behavior and physical setting (can be as extensive as living in home with people or less extensive like watching for a few hours)

observation through technology (social media monitoring)

the use of automated tools to monitor online buzz, chatter, and conversations

social media

through monitoring this, researcher can learn what is being said about the brand and the competition. part of big data

virtual shopping/store

advances in technology allow reserachers to stimulate an actual retail store environment on a computer screen. can monitor how people shop in virtual simulation of shopping experiences (picking up items, examining them, etc.)

close-ended question

an interview question that asks the respondent to make a selection from a limited list of responses (multiple choice)

open-ended question

an interview question that encourages an answer phrased in the respondent's own words (asks for comments)

questionnaire

what all forms of survey research require. ensures that all respondents will be the same series of questions

data warehouse

where information from big data and data mining is stored

in-home interviews

can be effective form of survey research. good for in-depth research. used by politicians

video observation

can use security cameras to see how people behave in stores/shop

1. monitoring social media 2. tracking shopping behavior online

2 components of big data

1. can be very expensive 2. takes time

2 disadvantages of primary data (usually offset by advantages)

1. data mining 2. data warehouse

2 subjects with internal secondary data

1. provides data for educated decision 2. can identify problems

2 uses of marketing research

1. in-home interviews 2. mall intercept interviews 3. telephone interviews 4. mail surveys 5. executive interviews 6. focus groups

6 types of survey research

1. define problem 2. plan design/primary data 3. specify sampling procedure 4. collect primary data 5. analyze the data 6. prepare and present report 7. follow-up

7 steps in marketing research process

research to identify cause of loss in sales

EX of when Chef Boyarde noticed sales going down. interviewed customers and discovered problem was due to needing a can opener to open packages. designed pop top can and sales went back up

machines watching people

EX: movie or videotape cameras record behavior as in the people-watching-people situation

people watching an activity

EX: observer stationed at an intersection counts traffic moving in various directions

people watching people

EX: observers stationed in supermarkets watch consumers select frozen Mexican dinners; the purpose is to see how much comparison shopping people do at the point of purchase

machines watching an activity

EX: traffic counting machines monitor traffic flow

scaled-response question

a close-ended question designed to measure the intensity of a respondent's answer (rated on a scale)

field service firm

a firm that specializes in interviewing respondents on a subcontracted basis. helps collect data by providing: focus group facilities, mail intercept locations, test product storage, kitchen facilities

behavioral targeting (bt)

a form of observation marketing research that uses data mining coupled with identifying Web surfers by the IP addresses

probability sample

a sample in which every element in the population has a known statistical likelihood of being selected

sample

a subset from a larger population (represents universe)

simple random sample

a type of probability sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample. sample that best exemplifies the population

syndicated data

data that already exists and must be purchased. EX: scanner data, AC Nielson

secondary data

data that already exists. data previously collected for any purpose other than the one at hand

gathering and presenting facts

descriptive role of marketing research

marketing research problem

determining what information is needed and how that information can be obtained efficiently and effectively. is information oriented

explaining data

diagnostic role of marketing research

big data

encompasses millions of observations of what people are doing (purchase actions, social media actions). use statistics to figure out how to use

data mining

finding statistical patterns among big data. look for variables and associations. can see what people buy in tandem, can see patterns w/ external environment

secondary data, primary data

in EX of McDonald's asking if it should offer delivery: ___________ would include- where people live/population density, demographics, purchasing patterns _____________ would include- interviewing customers

secondary data

includes aggregate sales, point of sale data, scanner data, product data which tells manufacturers what happens to sales in association w/ certain variable (price, discounts, new products, seasonality) and panel research which shows how people buy over time

syndicated data

includes scanner data that helps make associations, product data that shows how sales of a product change

mail survey

ineffective form of survey research b/c participants have to send answers back

primary data

information collected for the first time. used for solving the particular problem under investigation. can help ask personalized questions to customers for your purpose

1. price 2. package design 3. shelf space 4. advertising theme 5. advertising expenditures

marketing variables often observed in experiments

cross-tabulation

method of analyzing data that lets the analyst look at the responses to one question in relation to the responses of one or more other questions

experiment

method researcher can use to gather primary data. researcher alters 1 or more variables (price, package design, shelf-space, etc.) and observes the effects on another variable (usually sales). 2 groups observed, one in which change in variable is not applied, and other in which change is applied. and compare difference of results with the variable altered

focus groups

more common form of survey research that can be effective. when a moderator of conversation is present and a group of people give their opinions

syndicated data

more expensive type of secondary data. EX: TV ratings actually track what people are watching

primary data

new data not yet available. collected specifically for the purpose of the study.

mall-intercept interviews

not a very popular form of survey research b/c requires renting out space or walking around. space has lost popularity and interviewees may not be responsive

telephone survey

not very effective form of survey research b/c prone to hang-ups

answering what if questions, what would happen, accomplished through experiments with small groups

predictive role of marketing research

1. open-ended question 2. close-ended question 3. scaled-response question

3 basic types of questions included in questionnaires

1. marketing research problem 2. marketing research objective 3. management decision problem

3 components of marketing research project

1. which research questions must be answered? 2. how will the data be analyzed? 3. how and when will data be gathered?

3 questions to ask when planning the research design

1. descriptive 2. diagnostic 3. predictive

3 roles of marketing research

1. answers a specific research question 2. data are current 3. source of data is known 4. secrecy can be maintained

4 advantages of primary data

1. creates environment with a realistic level of complexity and variety 2. allows quick set up and altering of tests 3. low production costs 4. high flexibility

4 advantages of virtual shopping

1. concise statement of research objectives 2. explanation of research design 3. summary of major findings 4. conclusion with recommendations

4 components of preparing and presenting the report

1. many not give adequate detailed information 2. may not be on target with the research problem 3. quality and accuracy of data may pose a problem 4. may not tell you why problem exists

4 disadvantages to secondary data

1. online 2. mail 3. telephone 4. mall-intercept

4 less-popular forms of survey research

1. syndicated data (scanner data) 2. panel data 3. big data 4. data mining

4 main topics among secondary data

1. improves quality of decisions 2. helps managers trace problems 3. help managers understand detailed and complicated relationships 4. gauge perceived value of goods and services and level of customer satisfaction (satisfaction research)

4 managerial uses of marketing research

1. clear and concise questions 2. no ambiguous language 3. avoid leading questions 4. avoid two questions in one

4 regulations in forming questions in questionnaire design

1. people watching people 2. people watching an activity 3. machines watching people 4. machines watching an activity

4 types of observations conducted in observation research

1. sampling error 2. measurement error 3. random error 4. frame error

4 types of sampling errors

1. saves time and money if on target 2. aids in determining direction for primary data collection 3. pinpoints the kinds of people to approach 4. serves as a basis of comparison for other data 5. shows analytical and statistical patterns

5 advantages of secondary data

1. aggregate sales 2. scanner data 3. point of sale data 4. product data 5. panel research

5 main data among secondary data

1. internal corporate information 2. government agencies 3. trade and industry associations 4. business periodicals 5. news media

5 specific sources of secondary data

1. ethnographic 2. through technology (social media monitoring) 3. virtual store/shopping 4. video 5. mystery shopper 6. behavioral targeting

6 different methods of observational research

management decision problem

a broad-based problem that uses marketing research in order for managers to take proper actions