Market Research 1

What is a Construct?

A Hypothetical variable made up of a set of completed responses or behaviors that are thought to be related. Concept: The conceptual content you hope to measure (Air temperature) Conceptual Definition: A description of the features of that conceptual content (The speed of molecular movement in the air) Operation Definition: What phenomenon will provide evidence of the actual air temperature.

Construct Development

A process in which researchers determine what specific data should be collected for solving the defined research problem.

Ordinal Scales

A scale that allows a respondent to express relative magnitude between the answers to a question. More powerful than nominal, scale cannot be used to determine the absolute difference between rankings. Example: Which do you like best, please rank 1-5. Coffee, Tea, OJ, Milk, Water.

Ratio Scales

A scale that allows the researcher to not only identify the absolute scale but also make comparisons between the responses. Highest level of scale designed to enable true state of nothing/natural zero to be a valid response. Example: Please circle the number of children living in your household that are under 18. 0, 1, 2, 3, 4, 5, more than 5

Interval Scales

A scale that demonstrates absolute differences between each scale point. Can measure the absolute difference between scale points, mode median mean and standard deviation can be calculated. Example: How likely are you to recommend Woodmans? Definitely Would Not 1 2 3 4 5 6 7 Definitely Would

Semantic Differential Scale

A unique bipolar ordinal scale format that captures a person's attitudes or feelings about a given object. Bipolar Adjectives: Apply weights to scale positions for tabulation. Advantage- assumes interval scale properties, easy to construct. Disadvantage- must identify bipolar adjectives, data may have ordinal properties instead of interval properties

Research Proposal

A written statement of the research design that includes a statement explaining the purpose of the study detailed, systematic outline of procedures associated with a particular research method.

Measuring Constructs

Abstract: Constructs are not physical characteristics and are measured indirectly Concrete: Directly measured using physical characteristics

Thermometer Scale

Advantages- Provides simultaneous rating and rank ordered comparison of attitude objects, can support assumption of ratio scale properties. Disadvantages- Difficult to administer in any setting other than interviewer assisted or personal interview.

Graphic Rating Scales

Advantages- Visual impact, unlimited scale points, strengthens claim of interval scale properties. Disadvantages- No standard responses

Closed Questions

Advantages- encourages response, reduces costs/ don't have to pay for coding, reduced the prodding necessary, encourages responses people might not have considered. Disadvantages- Cloud lead respondents, encourages respondents to answer without thinking, requires pretesting, limits data, bores respondents

Staple Scale

Also similar to semantic differential scale, but without the need of development of bipolar adjectives. Advantages- easier to construct and administer, especially by telephone. Disadvantages- scale points are numerical, not verbal labels

Likert Scale

An ordinal scale format that asks respondents to indicate the extent to which they agree or disagree with a series of mental or behavioral belief statements about a given object. Features categories across an agreement continuum with specific items. Scale points are weighted to reflect magnitude. Weighted responses for multiple items are added or summed to yield a total score across all of the items in a scale. Advantages: Easiest scale to construct. Assume interval scale properties. Disadvantages: Hard to judge what a single score means.

Descriptive Research

Aware of the problem. Collects quantitative data to answer research questions such as who, what, when, where, and how. Examples: Consumer attitudes, intentions, preferences, purchase behaviors, evaluations of current marketing mix strategies and demographics. May provide information about competitors, target markets, and environmental factors. How large is the potential market for our new service? How many of our customers are vulnerable to our competition's new product? Why?

Examples of Variables/Constructs Investigated in Marketing

Brand Awareness: Percentage of respondents having heard of a designated brand. Awareness could be either unaided or aided. Brand Attitudes: the number of respondents and their intensity of feeling positive or negative toward a specific brand. Satisfaction: How people evaluate their postpurchase consumption experience with a particular product, service or company. Purchase Intention: The number of people planning to buy a specified object within a designated time period. Importance of Factors: To what extent to specific factors influence a person's purchase choice. Demographics: Age, gender, occupation, income, and other characteristics of individuals providing the information

What do we measure?

Cognition: How we think about an attitude/object Affect: Hoe we feel about an attitude/object Conation: How we behave toward an attitude/object

The Measurement Process Consists of Two Things

Construct selection and development: precisely identify and define WHAT is going to be measured. Scale Measurement: HOW are you going to precisely measure each construct.

Scale Point

Designated degrees of intensity assigned to the responses in a given questioning or observation method

4 Phases of the Information Research Process

Determine the research Problem: identify and clarify information needs, define research questions, and specify research objectives and confirm the information value. Select the Research Design: Determine the research design and data sources, develop the sampling design and sample size, examine measurement issues and scales, design and pretest the questionnaire. Execute the Research Design: Collect and prepare data, analyze data, interpret data to create knowledge. Communicate the Research Results: Prepare and present final report.

3 Types of Research

Exploratory, Descriptive, and Causal

Phase 3 of the Information Research Process: Execute the Research Design

Finalize all necessary data collection forms, gather and prepare the data, and analyze and interpret the data to understand the problem or opportunity. Researchers must be cautious to ensure potential biases or errors are either eliminated or at least minimized. Step 8: Collect and Prepare Data. Have interviewers ask questions about variables and market phenomena or to use self-completion questionnaires, or observe individuals or market phenomena. Once data is collected researchers must perform several activities before data analysis. Step 9: Analyze Data: Analysis procedures vary widely, from simple frequency distributions to summary statistics and multivariate data analysis. Step 10: Transform Data Structures into Information: Knowledge is created through engaged and careful interpretation of results. Involves integrating several aspects of the findings into conclusions that can be used to answer the research questions.

Sensitivity

How sensitive is the measure to variability in stimuli or responses? Consider dichotomous response categories: Agree v. Disagree? Not much sensitivity to subtle changes. Sensitivity is increased by adding response categories. Sensitivity is also increased by adding questions or items. This is why you see scales with multiple seemingly overlapping items for measuring a seemingly simple concept.

Leading Question

Identifies or implies the desirable response. Example: When jogging you use Nike shoes, don't you?

Primary Data

Information collected specifically for a current research problem or opportunity. Consideration must be given to the sampling design

Secondary Data

Information previously collected for some other problem or issue. Helps understand business problems and to improve decisions. The researcher must still determine that the population represented by the secondary data is relevant to the current research problem.

Situations when Marketing Research might not be needed?

Insufficient time frames: when the discovery of a problem leaves inadequate time to execute the necessary research activities, a decision maker may have to use informed judgement. Competitive actions/reactions sometimes emerge so fast that marketing research studies are not a feasible option. Inadequate resources: when there are significant limitations in money, manpower, or facilities Cost outweighs value: benefits are not significantly greater than the costs

Loaded Question

Invites a socially desirable, "politically correct" or emotionally charged response. Example: Would you purchase a product made in a sweatshop?

Constant Sum Scale

Measure of attitudes in which respondents are asked to divide a constant sum across a set of brands or attributes. Advantages- approximates an interval scale, increasing analytical flexibility. Disadvantage- difficult to administer, best with highly educated respondents

Why is Marketing Research important to Strategic Planning?/What is the value of Marketing Research information?

Organizations use marketing research information to identify new product opportunities, develop advertising strategies, and implement new data-gathering methods to better understand customers

Phase 4 of the Information Research Process: Communication of Results

Prepare a nontechnical report that is useful to decision makers whether or not they have marketing research background. Step 11: Prepare and present the final report to management. Should include executive summary, introduction, problem definition and objectives, methodology, results and findings, and limitations of the study

Reliability

Prerequisite for Validity, but is not sufficient to prove validity. Scale reliability is the extent to which a scale can reproduce the same or similar results in repeated trials. Two techniques to help researchers assess the reliability are: Test retest- using the same sample of respondents at two different times or two different samples of respondents from the same denied target population under nearly the same conditions possible. Equivalent form- researchers create and administer two similar yet different scale measurements for the given construct an distribute them to either the same sample of respondents or to two samples of respondents from the same target population.

Causal Research

Problems clearly defined. Collects data that enables decision makers to determine cause and effect relationships between two or more variables. Most appropriate when the research objectives include the need to understand which variables (price) cause a dependent variable (sales) to move. Provide an opportunity to assess and explain causality among market factors. Will our product be more appealing in a blue or green package? Will our new campaign increase sales over the old ad campaign?

How do we measure attitudes?

Ranking: requires respondent to rank order a relatively small number of attitude objects, often based on the magnitude of some attitude or perception. Rating: Requires respondent to estimate the magnitude of a characteristic or quality that an attitude object possesses. Sorting: Requires respondent to classify attitude objects by arranging them or their representations in piles. Choice: Identifies preference by requiring a respondent to choose between two or more attitude objects.

Validity

Scale Validity: Assesses whether a scale measures what it is supposed to measure. Face Validity: Based on the researcher's intuitive evaluation of whether the statement looks like it measure what it is supposed to measure. Content Validity: Assessed before data is collected in an effort to ensure the construct scale includes items to represent all relevant areas. Criterion Validity: Correlates with other measures of the same construct. Concurrent- concurrent correlation with other measures. Predictive- predicts future values of other measures. Construct Validity: Provide empirical evidence that the measure behaves in a manner consistent with theory. Convergent Validity: Methods-based, correlation between responses obtained by maximally different methods of measuring the same construct. Discriminant Validity: Measure does not correlate highly with another measure from which it should differ

Numerical Scales

Similar to semantic differential scales with numbers instead of semantic space

Types of Fixed Alternative Questions

Simple Dichotomy Questions (yes-no), Determinant Choice Questions (pick one and only one), Frequency-Determination Questions (select one answer representing the general frequency of engaging in an activity like purchasing or using a product), Checklist Questions (respondent can provide multiple responses)

How does Marketing Research help Strategic Planning?

Situation Analysis: Market and Competition Analysis (SWOT, how perception of our brand compares to competitors), Market Segmentation/Relevant consumer targets. Benefit and lifestyle studies, which examine similarities and differences in consumer needs. We can use these studies to identify market segments, and collect information about consumer characteristics, product benefits, and brand preferences. Market Strategy Design: Target Marketing, Positioning existing products, New-Product planning, Environmental fit. Marketing Program Development: Product portfolio strategy, distribution strategy, pricing strategy, integrated marketing communications. Strategy Implementation: Strategy control

Unit of Analysis

Specifies whether data should be collected about individuals, households, organizations, departments, geographical areas, or some combination of these. This will provide direction in later activities such as scale development and sampling.

Types of Data

State of being, state of mind, state of behavior, and state of intention

Phase 2 of the Information Research Process: Select the Appropriate Research Design

Step 4: Determine the Research Design and Data Sources. The researchers must consider they types of data, the data collection method, sampling method, schedule, and budget. Three categories of research design (exploratory, descriptive, and casual). Step 5: Develop the Sampling Plan and Sample Size. In collecting data researchers can choose between collecting data from a census or a sample. Selection of a sample from the defined target population. Sample size affects the accuracy and generalization ability of research results. Researchers must therefor determine how many people to include or how many object to investigate. Step 6: Assess Measurement Issues and Scales. Important step for descriptive and casual designs. It involves identifying the concepts to study and measuring variables related to the research problem. Step 7: Pretest the Data Collection Instrument. Researchers must select the correct type of questions, consider the sequence and format, and pretest the questionnaire. Pretesting obtains information from people representative of those who will be questioned in the actual survey. In a pretest, respondents are asked to complete the questionnaire and comment on issues such as clarity of instructions and questions, sequence of the topics and questions and anything that is potentially difficult or confusing.

What is Marketing Research?

The function that links an organization to its market through the gathering of information. All the activities that provide information to marketing decision makers. It is one of the principal tools for answering marketing questions because it links the consumer, customer and public to the marketer through information used to identify and define marketing opportunities and problems. It generates, refines and evaluates marketing actions. It monitors marketing performance and improves understanding of marketing as a disciplined process. Marketing research is often used to research consumers and potential consumers in vivid detail.

Scale Measurement

The process of assigning decriptors to represent the range of possible responses to a question about a particular object to construct

Nominal Scales

The type of scale in which questions require respondents to provide only some type of descriptor as the raw response. Most basic and least powerful. Categorizes responses into mutually exclusive subsets that do not have distances between them. Example: Marital Status: Married, Single, Divorced, Separated

Phase 1 of the Information Research Process: Determine Research Problem

These three activities bring researchers and decision makers together based on management's recognition of the need from information to improve decision making. Step 1: Identify and Clarify Management Information Needs. To understand the problem a problem definition process is used. Agree on the decision makers purpose of research, understand the complete problem, identify measurable symptoms and distinguish them from the root problem, select unit of analysis, determine relevant variables, is this a problem or symptom? Step 2: Specify the Research Questions and Define Problem: The researcher must provide background information on other firms that may have faced similar problems, the researcher conducts a review of the literature. This uncovers relevant theory and variables to include in the research. The researchers determine whether the information being requested is necessary. Break down to more specific scientific terms, break down to terms of specific information requirements, state the problem. Step 3: Confirm research objectives and value of information(most important): Provide guidelines for determining other steps that must be taken. What data needs to be interpreted.

Exploratory Research

Unaware of the problem. Deepening the understanding of consumer motivations, attitudes, and behavior that are not easy to access using other research methods. Generates insights that will help define the problem situation confronting the researcher or improves the understanding of consumer motivations, attitudes and behavior that are not easy to access using other research methods. Examples: Literature reviews of already available information, qualitative approaches such as focus groups and in depth interviews or pilot studies. Why are our customers shifting to our competitor's new product? Why have favorable prospects failed to try our new product?