BRM Ins

Redefining Marketing Research
The American Marketing Association (AMA) redefined Marketing Research as:
The function that links the consumer, the customer, and public to the marketer through INFORMATION
Copyright 2010 Pearson Education, Inc. 2007
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Redefining Marketing Research Used to identify and define market opportunities and problems
Information
Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process
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Definition of Marketing Research Marketing research is the systematic and objective identification collection analysis dissemination and use of information For the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing
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Market Research
Specifies the information necessary to address these issues Manages and implements the data collection process Analyzes the results Communicates the findings and their implications Helps managers use this information to make decisions
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Classification of Marketing Research Problem-Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem-Solving Research Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.
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A Classification of Marketing Research Fig. 1.1 Marketing Research
Problem Identification Research
Problem-Solving Research
Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research
Segmentation Research Product Research Pricing Research Promotion Research Distribution Research
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Problem-Solving Research Table 1.1 SEGMENTATION RESEARCHthe basis of Determine segmentation Establish market potential and PRODUCT RESEARCH Test concept responsiveness for various Determine optimal product segments design Select target markets Package tests Create lifestyle profiles: Product modification demography, media, and product image characteristics Brand positioning and repositioning 2-7 Test marketing Copyright 2010 Pearson Education, Inc. 2007
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Problem-Solving Research PROMOTIONAL RESEARCH Optimal promotional budget APR Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising PRICING RESEARCH effectiveness Pricing policies Claim substantiation Importance of price in brand selection Product line pricing $ALE Price elasticity of demand 2-8 Copyright 2010 Pearson Education, Inc. 2007 Initiating and responding to price Prentice Hall
0.00%
Table 1.1 cont.
Problem-Solving Research Table 1.1 cont. DISTRIBUTION RESEARCH Determine Types of distribution Attitudes of channel members Intensity of wholesale & resale coverage Channel margins Location of retail and wholesale outlets
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Marketing Research Process Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 : Problem Definition : Development of an Approach to the Problem : Research Design Formulation : Fieldwork or Data Collection : Data Preparation and Analysis : Report Preparation and Presentation
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Marketing Research Process

Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report
Copyright 2010 Pearson Education, Inc. 2-11
The Role of Marketing Research Fig. 1.2

Controllable Marketing Variables

Customer Groups

Consumers Employees Shareholders Suppliers
Uncontrollable Environmental Factors

Product Pricing Promotion Distribution
Marketing Research
Assessing Information Needs
Providing Information
Marketing Decision Making
Economy Technology Laws & Regulations Social & Cultural Factors Political Factors
Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control
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Power Decisions Methodology

Fig. 1.3
Opportunity scan
Solve Problem
Option generation Refine options Decision
Client Needs
Find
Achieve Goal
Seek
Plan
Act
How We Help
Clarify Decisions
Research Analysis
Evaluate Interpret Facilitate
Recommend
Market Plan Research
Advise Assist Execution
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Marketing Research Suppliers & Services

Fig. 1.4 INTE RNA L FULL SERVICE RESEARCH SUPPLIERS EXTE RNAL LIMITED SERVICE
Syndicate Services
Internet Services
Field Services
Other Services Technical and Analytical Services

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Standardized Services
Customized Services
Focus Groups and Qualitative Services
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Table 1.2 2006
U.S. Rank U.S. 2007 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 5 4 6 7 8 9 10 11 13 12 14 15
Top 50 U.S. Marketing Research

The Nielsen Co. IMS Health Inc. Kantar Group* Westat Inc. IRI TNS U.S. Arbitron Inc. GfK AG USA Ipsos Synovate Maritz Research New York Norwalk, Conn. Fairfield, Conn. Rockville, MD Chicago New York New York Nuremberg, Germany New York London Fenton, Mo. Westlake Village, Calif. Rochester, N.Y. Port Washington, N.Y. Omaha, Neb. Princeton, N.J. nielsen.com imshealth.com kantargroup.com westat.com infores.com tnsglobal.com arbitron.com gfk.com ipsos-na.com synovate.com maritzresearch.com jdpower.com harrisinteractive.com npd.com infousa.com opinionresearch.com $2,173.0 801.0 526.8 467.8 441.0 379.8 338.5 319.7 281.2 250.4 187.4 184.5 161.0 160.4 124.7 97.5 $4,220.0 2,192.6 1,551.4 467.8 702.0 2,137.2 352.1 1,603.00 1,270.30 867.0 223.3 260.5 227.0 211.1 206.7 179.5
Organization
Headquarters
Website
U.S.
Global
Non-
Firms
48.5% 63.5 66.0 37.2 82.2 3.9 80.1 77.9 71.1 16.1 29.2 29.1 24.0 39.7 45.7
J.D. Power and Associates* Harris Interactive Inc. The NPD Group Inc. Opinion Research/ Guideline Group Opinion Research Corp.
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Table 1.2
(Cont) U.S. Rank
U.S. 2007 2006 38 16 17 18 20 20 37 18 19 17 19
Top 50 U.S. Marketing Research Firms

Organization Headquarters Website U.S. Global NonGuideline Inc. comScore Inc. New York Reston, Va. Livonia, Mich. Livonia, Mich. Little Rock, Ark. Los Angeles Cambridge, Mass. guideline.com comscore.com marketstrategies.com markestrategies.com fw-mi.com Irwonline.com abtassociates.com 26.8 77.0 75.7 53.4 22.3 71.0 55.1 26.8 87.2 80.4 58.1 22.3 87.4 55.1 11.7 5.8 8.1 18.8
Market Strategies Inc. Market Strategies Inc. Flake-Wilkerson Market Insights Lieberman Research Worldwide Abt Associates Inc.
Abt Associates Inc. 41 Abt SRBI Inc. 20 21 22 23 23 25 26 23 21 22 26 25 24 40 OTX Burke Inc. MVL Group Inc. Knowledge Networks Inc. National Research Corp. Directions Research Inc. Phoenix Marketing International
Cambridge, Mass. New York Los Angeles Cincinnati Jupiter, Fla. Menlo Park, Calif. Lincoln, Neb. Cincinnati Rhineback, N.Y.
abtassociates.com srbi.com otxresearch.com burke.com mvlgroup.com knowledgenetworks.com nationalresearch.com directionsresearch.com phoenixmi.com
33.0 22.1 50.8 47.0 42.3 37.3 37.3 37.2 33.5
33.0 22.1 54.5 53.1 42.3 37.3 41.3 37.2
6.8 11.5 9.7 4.0
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Table 1.2 U.S. Rank

U.S. (Cont) 2007 2006 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 34 27 28 33 36 39 32 31 44 34 42 43 47 46 28
Top 50 U.S. Marketing Research Firms

Organization Headquarters Website U.S. Global NonGreat Neck, N.Y. Media, Pa. Farmington Hills, Mich. Los Angeles New York Chicago Calabasas, Calif. Philadelphia Kansas City, Mo. Milwaukee New York Indianapolis Syracuse, N.Y. Winston-Salem, N.C. Cincinnati Alexandra, Va. liebermanresearch.com icrsurvey.com morpace.com marketcastonline.com datadw.com crresearch.com informars.com nationalanalysts.com servicemanagement.com marketprobe.com hitwise.com walkerinfo.com ksrinc.com bellomyresearch.com marketvisionresearch.com pos.org 30.1 28.8 28.7 25.1 25.0 23.6 23.5 23.3 22.4 21.7 21.6 21.2 17.1 16.7 16.4 15.5 30.1 29.7 33.2 25.1 25.3 23.6 23.5 23.3 23.0 41.4 49.9 25.5 21.0 16.7 1.2 2.6 47.6 56.7 16.9 18.6 3.0 13.6
Lieberman Research Group ICR/Int'l Communications Research Morpace Inc. MarketCast Data Development Worldwide C&R Research Services Inc. Informa Research Services Inc. National Analysts Worldwide Service Management Group Market Probe Inc. Hitwise Walker Information KS&R Inc. Bellomy Research Inc. MarketVision Research Inc. Public Opinion Strategies
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16.4 15.5
Table 1.2 Organization50 Top U.S. Rank

Non-U.S. 2007 (Cont) 2006 43 44 45 46 47 48 49 50 45 48 49 50 Compete Inc. Savitz Research Companies RDA Group Inc. Gongos Research Inc. Q Research Solutions Inc. Marketing Analysts Inc. RTi Market Research & Brand Strategy The Link Group
U.S. Marketing Research Firms

Headquarters Website U.S. Global Boston Dallas Bloomfield Hills, Mich. compete.com savitzresearch.com rdagroup.com gongos.com whoisq.com marketinganalysts.com rtiresearch.com the-link-group.com 14.9 14.8 13.7 13.3 13.0 12.8 12.2 11.9 14.9 14.8 16.8 13.3 13.2 13.6 12.2 13.3 18.5 1.5 5.9 10.5
Auburn Hills, Mich. Old Bridge, N.J. Charleston, S.C. Stamford, Conn. Atlanta
Total All other (150 CASRO companies not included in the Top 50) Total (200 companies)
$7.828.7 $774.3 $8,603.0
$17,638.0 $870.1 $18,508.1
55.6% 11.0% 53.5%
*Estimated by Top 50.
U.S. and worldwide revenue may include nonresearch activities for some companies that are significantly higher. Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. Total revenue of 150 survey research companies that provide financial information on a confidential basis to CASRO.
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Selected Marketing Research Career Descriptions

Fig. 1.5 Vice President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department. Research Director: Also a senior position. The research director has the general responsibility for the development and execution of all the marketing research projects. Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members. (Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects. Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis.
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Selected Marketing Research Career Descriptions Fig. 1.5 cont. Vice President of Marketing Research
Research Director
Part of companys top management team Directs companys entire market research operation Sets the goals & objectives of the marketing research department
Also part of senior management Heads the development and execution of all research projects
Assistant Director of Research
Administrative assistant to director Supervises research staff members
Senior Project Manager
Responsible for design, implementation, & research projects

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Selected Marketing Research Career Descriptions Fig. 1.5 cont. Senior Analyst

Participates in the development of projects Carries out execution of assigned projects Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collection Prepares final report
Analyst

Handles details in execution of project Designs & pretests questionnaires Conducts preliminary analysis of data
Statistician/Data Processing

Serves as expert on theory and application on statistical techniques Oversees experimental design, data processing, and analysis
Junior Analyst

Secondary data analysis Edits and codes questionnaires Conducts preliminary analysis of data
Fieldwork Director
Handles selection, training, supervision, and evaluation of interviewers and field workers
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Marketing Research Suppliers & Services

Internal suppliers External suppliers
Full-service suppliers

Syndicated services Standardized services Customized services Internet services Field services Focus groups and qualitative services Technical and analytical services Other services
Limited-service suppliers

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Criteria for Selecting a Research Supplier

What is the reputation of the supplier? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they flexible? Are their research projects of high quality? What kind and how much experience does the supplier have? Has the firm had experience with projects similar to this one? Do the supplier's personnel have both technical and non-technical expertise? Can they communicate well with the client?
Competitive bids should be compared on the basis of quality as well as price.

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The Department Store Project
The following information was solicited:

1. Familiarity with the ten department stores
2. Frequency with which household members shopped at each of the ten stores 3. Relative importance attached to each of the eight factors of the choice criteria 4. Evaluation of the ten stores on each of the eight factors of the choice criteria 5. Preference ratings for each store 6. Rankings of the ten stores (from most preferred to least preferred) 7. Degree of agreement with 21 lifestyle statements 8. Standard demographic characteristics (age, education, etc.) 9. Name, address, and telephone number
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Marketing Research Associations Online Domestic

AAPOR : American Association for Public Opinion Research (www.aapor.org) AMA : American Marketing Association (www.ama.org) ARF : The Advertising Research Foundation (www.amic.com/arf) CASRO : The Council of American Survey Research Organizations (www.casro.org) MRA : Marketing Research Association (www.mranet.org) QRCA : Qualitative Research Consultants Association (www.qrca.org)
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RIC : Research Industry Coalition Copyright 2010 Pearson Education, Inc. 2007 (www.researchindustry.org)
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Marketing Research Associations Online

International ESOMAR:European Society for Opinion and Marketing Research (www.esomar.nl) MRS: The Market Research Society (UK) (www.marketresearch.org.uk) MRSA: The Market Research Society of Australia (www.mrsa.com.au) PMRS: The Professional Marketing Research Society (Canada) (www.pmrs-aprm.com)
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Overview of Ethical Issues in Marketing Research Table 1.3 I II Problem definition Using surveys as a guise for selling or fundraising Personal agendas of the researcher or client Conducting unnecessary research Developing an approach Using findings and models developed for specific clients or projects for other projects Soliciting proposals to gain research expertise without pay Inaccurate reporting
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Overview of Ethical Issues in Marketing Research (Cont.)

Table 1.3 cont.
III
-
Research Design
Formulating a research design more suited to the researcher's rather than the client's needs Using secondary data that are not applicable or have been gathered through questionable means Disguising the purpose of the research Soliciting unfair concessions from the researcher Not maintaining anonymity of respondents Disrespecting privacy of respondents Misleading respondents Disguising observation of respondents Embarrassing or putting stress on respondents Using measurement scales of questionable reliability & validity Designing overly long/sensitive questionnaires Using inappropriate sampling procedures and sample size
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Overview of Ethical Issues in Marketing Research

Table 1.3 cont.
IV
-
Field Work
Increasing dis comfort level of respondents Following un acceptable field work procedures
V
-
Data Preparation and Analysis
Identifying and discarding unsatisfactory respo Using statistical techniques when the underlying assumptions are violated Interpreting the results and making incorrect conclusions and recommendations
ndents
VI
-
Report Preparation and Presentation

Incomplete reporting Biased reporting Inaccur ate reporting
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Chain Restaurant Study One day I received a phone call from a research analyst who introduced himself as one of our alumni. He was working for a restaurant chain in town and wanted help analyzing the data he had collected while conducting a marketing research study.
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Chain Restaurant Study
When we met, he presented me with a copy of the questionnaire and asked how he should analyze the data. My first question to him was, What is the problem being Prentice Hall addressed?
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Chain Restaurant Study
When he looked perplexed, I explained that data analysis is not an independent exercise.
Rather, the goal of data analysis is to PROVIDE INFORMATION RELATED TO THE PROBLEM COMPONENTS.
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Chain Restaurant Study I was surprised to learn that he did not have a clear understanding of the marketing research problem and that a written definition did not exist. So before going any further, I had to define the marketing research problem. Once that was done, I found that much of the data collected was not relevant to the problem. In this sense, the whole study was a waste of resources. A new study had to be designed and implemented to address the problem defined.
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The Problem Definition Process Fig. 2.1

Tasks Involved
Discussion with Decision Maker(s)
Interviews with Experts
Secondary Data Analysis
Qualitative Research
Environmental Context of the Problem
Step I: Problem Definition

Management Decision Problem Marketing Research Problem
Step II: Approach to the Problem

Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed
Objective/ Theoretical Foundations
Research Questions
Hypotheses
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Tasks Involved in Problem Definition

Discussions with Decision Makers Interviews with Industry Experts Secondary Data Analysis Qualitative Research
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The Problem Audit

The problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature. 1. The events that led to the decision that action is needed, or the history of the problem 2. The alternative courses of action available to the DM 3. The criteria that will be used to evaluate the alternative courses of action 4. The potential actions that are likely to be suggested based on the research findings 5. The information that is needed to answer the DM's questions 6. The manner in which the DM will use each item of information in making the decision 7. The corporate culture as it relates to decision making
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The Seven Cs of Interaction
The interaction between the DM and the researcher should be characterized by the seven Cs:
1. 2. 3. 4. 5. 6. 7.
Communication Cooperation Confidence Candor Closeness Continuity Creativity
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Factors to be Considered in the Environmental Context of the Problem Fig. 2.2 PAST INFORMATION AND FORECASTS RESOURCES AND CONSTRAINTS OBJECTIVES BUYER BEHAVIOR LEGAL ENVIRONMENT ECONOMIC ENVIRONMENT MARKETING AND TECHNOLOGICAL SKILLS
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Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem Should a new product be To determine consumer preferences introduced? and purchase intentions for the proposed new product Should the advertising campaign be changed? To determine the effectiveness of the current advertising campaign To determine the price elasticity of demand and the impact on sales and profits of various levels
Should the price of the brand be increased? of price changes
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Proper Definition of the Research Problem

Fig. 2.3
Marketing Research Problem
Broad Statement
Specific Components
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Department Store Project Problem Definition
1. What criteria do households use when selecting department stores? 2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in question 1? 3. Which stores are patronized when shopping for specific product categories? 4. What is the market share of Sears and its competitors for specific product categories? 5. What is the demographic and psychological profile of the customers of Sears? Does it differ from the profile of customers of competing stores?
In the department store project, the marketing research problem is to determine the relative strengths and weaknesses of Sears, vis--vis other major competitors, with respect to factors that influence store patronage. Specifically, research should provide information on the following questions.
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Components of an Approach
Objective/Theoretical Foundations Analytical Model Research Questions Hypotheses Specification of the Information Needed
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The Role of Theory in Applied Marketing Research
Research Task 1. Conceptualizing and identifying key variables 2. Operationalizing key variables 3. Selecting a research design 4. Selecting a sampl e 5. Analyzing and interpreting data 6. Integrating findin gs
Role of Theory Provides a conceptual foundation and understanding of the basic processes underlying the problem situation. These processes will suggest key dependent and independent variables. Theoretical constructs (variables) can suggest independent and dependent variables naturally occurring in the real world. Causal or associative relationships suggested by the theory may a causal or descriptive design should be adopted. indicate whether
The theoretical framework may be useful in defining the population and suggesting variables for qualifying respondents, imposing quotas, or stratifying the (see Chapter population 11). The theoretical framework (and the models, research questions and hypotheses based on it) guide the selection of a data analysis strategy and the interpretation of results (see Chapter 14). The findings obtained in the research project can be interpreted in the light of previous research and integrated with the existing body of knowledge.
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Models
An analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. In verbal models, the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory.
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Graphical Models Graphical models are visual. They are used to isolate variables and to suggest directions of relationships but are not designed to provide numerical results. Awarene ss Understanding: Evaluation Preferen ce
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Patrona ge
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Mathematical Models
Mathematical models explicitly specify

the relationships among variables, usually in equation form.
y =
Where y
i =1
a x
i
= degree of preference
a, a =
0 i
model parameters to be estimated statistically

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Development of Research Questions and Hypotheses Fig. 2.4 Components of the Marketing Research Problem Objective/ Theoretical Framework Research Questions Analytical Model Hypotheses
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Research Questions and Hypotheses
Research questions (RQs) are

refined statements of the specific components of the problem. A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.
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Department Store Project
RQ: Do the customers of Sears exhibit store loyalty? H1: Customers who are store-loyal are less knowledgeable about the shopping environment. H2: Store-loyal customers are more riskaverse than are non-loyal customers.
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Department Store Project Specification of Information Needed Component 1
The researcher identified the following factors as part of the choice criteria: quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, credit and billing policies. The respondents should be asked to rate the importance of each factor as it influences their store selection. The researcher identified nine department stores as competitors to Sears based on discussions with management. The respondents should be asked to evaluate Sears and its nine competitors on the eight choice criteria factors.
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Component 2
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Department Store Project Component 3
16 different product categories were selected, including women's dresses, women's sportswear, lingerie and body fashion, junior merchandise, men's apparel, cosmetics, jewelry, shoes, sheets and towels, furniture and bedding, and draperies. The respondents should be asked whether they shop at each of the 10 stores for each of the 16 product categories. No additional information needs to be obtained from the respondents.
Component 4
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Department Store Project Component 5
Information should be obtained on the standard demographic characteristics and the psychographic characteristics of store loyalty, credit use, appearance consciousness, and combining shopping with eating.
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At United, Food Is Uniting the Airline with Travelers
United Airlines, as other major airlines, had to deal with passenger loyalty (management decision problem: how to attract more and more loyal passengers). The broad marketing research problem was to identify the factors that influence loyalty of airline travelers.
At United, Food Is Uniting the Airline with Travelers The basic answer is to improve service. Exploratory research, theoretical framework, and empirical evidence revealed that the consumers choice of an airline is influenced by: safety, price of the ticket, frequent-flyer program, convenience of scheduling, and brand name.
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A graphical model stipulated that consumers evaluate competing airlines based on factors of the choice criteria to select a preferred airline. The problem was that major airlines were quite similar on these factors. Indeed, "airlines offer the same schedules, the same service, and the same fares. Consequently, United Airlines had to find a way to differentiate itself. Food turned out to be the solution.
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Secondary data, like the J. D Power & Associates' survey on "current and future trends in the airline food industry," indicated that "food service is a major contributor to customers loyalty." This survey also emphasized the importance of food brands.

The airline's Marketrak survey told United Airlines that "customers wanted more varied and up-todate food. The following research questions and hypotheses may be posed. RQ1 How important is food for airline customers? H1: Food is an important factor for airline travelers. H2: Travelers value branded food. H3: Travelers prefer larger food portions, but with consistent quality.
H4:
Travelers prefer exotic food.
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Characteristics that influence the research design included the identification of competing airlines (Delta, American, etc.), factors of the choice criteria (already identified), measurement of airline travel, and loyalty.
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This kind of research helped United Airlines define their marketing research problem and develop the approach. Focus groups and surveys were conducted to check customers' perceptions of food in United Airlines' aircraft. The results provided support for all the hypotheses (H1 to H4). United Airlines then made a few changes: new "culinary menus," larger portions of food, new coffee, and branded products (e.g., Godiva chocolates). This resulted in better service, increasing customer satisfaction and fostering loyalty.
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International Marketing Research Examining the Impact of the Self-Reference Criterion (SRC) 1. Define the marketing research problem in terms of domestic environmental and cultural factors.
2.
Define the marketing research problem in terms of foreign environmental and cultural factors. Make no judgments. Isolate the self-reference criterion (SRC) influence on the problem and examine it carefully to see how it complicates the problem. Redefine the problem without the SRC influence and address it for the foreign market situation.
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3.
4.
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Research Design: Definition
A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems.
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A Classification of Marketing Research Designs

Fig. 3.1 Research Design Conclusive Research Design Descriptive Causal Research Research Cross-Sectional Design Single CrossSectional Copyright 2010 Pearson Education, Inc. 2007 Design
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Exploratory Research Design
Longitudinal Design
Multiple CrossSectional Design
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Exploratory & Conclusive Research Differences

Table 3.1 Objective:
Characteristics:
Exploratory
To provide insights and understanding Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and non-representative. Analysis of primary data is qualitative Tentative
Conclusive
To test specific hypotheses and examine relationships Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative
Findings/ Results: Outcome:
Conclusive Generally followed by further exploratory or conclusive research Findings used as input into decision making
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A Comparison of Basic Research Designs

Table 3.2 Objective:
Characteristics:
Explorator Discovery of ideas y

and insights Flexible, versatile
Descriptiv Describe market e
characteristics or functions Marked by the prior formulation of specific hypotheses
Causa Determine cause l

and effect relationships Manipulation of independent variables, effect on dependent variables
Often the front end of total research design Expert surveys Pilot surveys Case studies Secondary data: qualitative analysis qualitative research
Preplanned and structured design Control mediating variables Secondary data: quantitative analysis Surveys Panels Observation and other data
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Experiments
Methods:
Uses of Exploratory Research
Formulate a problem or define a problem more precisely Identify alternative courses of action Develop hypotheses Isolate key variables and relationships for further examination Gain insights for developing an approach to the problem Establish priorities for further research
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Methods of Exploratory Research
Survey of experts (discussed in Chapter 2) Pilot surveys (discussed in Chapter 2) Secondary data analyzed in a qualitative way (discussed in Chapter 4) Qualitative research (discussed in Chapter 5)
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Use of Descriptive Research
To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas To estimate the percentage of units in a specified population exhibiting a certain behavior To determine the perceptions of product characteristics To determine the degree to which marketing variables are associated To make specific predictions
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Methods of Descriptive Research
Secondary data analyzed in a quantitative, as opposed to a qualitative, manner (discussed in Chapter 4) Surveys (Chapter 6) Panels (Chapters 4 and 6) Observational and other data (Chapter 6)
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Cross-Sectional Designs
Involve the collection of information from any given sample of population elements only once In single cross-sectional designs, there is only one sample of respondents and information is obtained from this sample only once. In multiple cross-sectional designs, there are two or more samples of respondents, and information from each sample is obtained only once. Often, information from different samples is obtained at different times. Cohort analysis consists of a series of surveys conducted at appropriate time intervals, where the cohort serves as the basic unit of analysis. A cohort is a group of respondents who experience the same event within the same time interval.
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Consumption of Various Soft Drinks by Various Age Cohorts

Table 3.3 Age 8-19 20-29 30-39 40-49 50+ Percentage consuming on a typical day 1950 52.9 45.2 33.9 23.2 18.1 1960 62.6 60.7 46.6 40.8 28.8 C1 1969 73.2 76.0 67.7 58.6 50.0 C2 1979 81.0 75.8 71.4 67.8 51.9 C3
C1: cohort born prior to 1900 C2: cohort born 1901-10 C3: cohort born 1911-20 C4: cohort born 1921-30
C 8 C 7 C 6 C5: cohort born 1931-40 C C6: cohort born 1940-49 5 C7: cohort born 1950-59 C C8: cohort born 1960-69 4
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Longitudinal Designs
A fixed sample (or samples) of population elements is measured repeatedly on the same variables A longitudinal design differs from a crosssectional design in that the sample or samples remain the same over time
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Cross-Sectional vs. Longitudinal Sample Surveye d at T1
CrossSectiona l Design
Sample Longitudina Surveyed l Design at T1
Same Sample also Surveyed at T2 T2

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Time
T1
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Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs

Table 3.4 Evaluation Criteria Detecting Change Large amount of data collection Accuracy Representative Sampling Response bias
Cross-Sectional Design + +
Longitudinal Design + + + -
Note: A + indicates a relative advantage over the other design, whereas a - indicates a relative disadvantage.
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Cross-Sectional Data May Not Show Change Table 3.5 Brand Purchased
Time Period Period 1 Survey Period 2 Survey
Brand A Brand B Brand C Total
200 300 500 1000
200 300
500 1000
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Longitudinal Data May Show Substantial Change Table 3.6 Brand Purchased in Period 1 Brand A Brand B Brand C Total
Brand Purchased in Period 2 Brand A Brand B Brand C 100 25 75 200 50 100 150 300 Total 50 175 275 500 200 300 500 1000
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Uses of Causal Research
To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon To determine the nature of the relationship between the causal variables and the effect to be predicted METHOD: Experiments
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Alternative Research Designs Exploratory Research Secondary Data Analysis Focus Groups Conclusive Research Descriptive/Caus al Conclusive Research Descriptive/Caus al Conclusive Research Descriptive/Caus al
(a)
(b)
(c)
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Exploratory Research Secondary Data Analysis 2-80 Focus Groups
Potential Sources of Error in Research Designs Fig. 3.2

Random Sampling Error Response Error Total Error Non-sampling Error Non-response Error
Researcher Error
Surrogate Information Error Measurement Error Population Definition Error Sampling Frame Error Data Analysis Error
Interviewer Error
Respondent Selection Error Questioning Error Recording Error Cheating Error
Respondent Error
Inability Error Unwillingness Error
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Errors in Marketing Research
The total error is the variation between the true mean value in the population of the variable of interest and the observed mean value obtained in the marketing research project. Random sampling error is the variation between the true mean value for the population and the true mean value for the original sample. Non-sampling errors can be attributed to sources other than sampling, and they may be random or nonrandom: including errors in problem definition, approach, scales, questionnaire design, interviewing methods, and data preparation and analysis. Nonsampling errors consist of non-response errors and response errors.
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Errors in Marketing Research
Non-response error arises when some of the respondents included in the sample do not respond. Response error arises when respondents give inaccurate answers or their answers are misrecorded or misanalyzed.
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Citicorp Banks on Exploratory, Descriptive, and Causal Research

Marketing Research at Citicorp is typical in that it is used to measure consumer awareness of products, monitor their satisfaction and attitudes associated with the product, track product usage and diagnose problems as they occur. To accomplish these tasks Citicorp makes extensive use of exploratory, descriptive, and causal research. Often it is advantageous to offer special financial packages to specific groups of customers. In this case, a financial package is being designed for senior citizens. The following seven-step process was taken by 2-84 Copyright 2010 Pearson Education, Inc. marketing research to help in the design.
1) A taskforce was created to better define the market parameters to include all the needs of the many Citicorp branches. A final decision was made to include Americans 55 years of age or older, retired, and in the upper half of the financial strata of that market.

2) Exploratory research in the form of secondary data analysis of the mature or older market was then performed and a study of competitive products was conducted. Exploratory qualitative research involving focus groups was also carried out in order to determine the needs and desires of the market and the level of satisfaction with the current products.
In the case of senior citizens, a great deal of diversity was found in the market. This was determined to be due to such factors as affluence, relative age, and the absence or presence of a spouse.
3) The next stage of research was brainstorming. This involved the formation of many different financial packages aimed at the target market. In this case, a total of 10 ideas were generated.

4) The feasibility of the 10 ideas generated in step 3 was then tested. The ideas were tested on the basis of whether they were possible in relation to the business. The following list of questions was used as a series of hurdles that the ideas had to pass to continue on to the next step. Can the idea be explained in a manner that the target market will easily understand? Does the idea fit into the overall strategy of Citicorp?
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Is there an available description of a specific target market for the proposed product? Does the research conducted so far indicate a potential match for target market needs, and is the idea perceived to have appeal to this market? Is there a feasible outline of the tactics and strategies for implementing the program? Have the financial impact and cost of the program been thoroughly evaluated and determined to be in line with company practices? In this study, only one idea generated from the brainstorming session made it past all the listed hurdles and on to step 5.
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5) A creative work-plan was then generated. This plan was to emphasize the competitive advantage of the proposed product as well as better delineate the specific features of the product. 6) The previous exploratory research was now followed up with descriptive research in the form of mall intercept surveys of people in the target market range. The survey showed that the list of special features was too long and it was decided to drop the features more commonly offered by competitors.
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7) Finally, the product was test marketed in six of the Citicorp branches within the target market. Test marketing is a form of causal research. Given successful test marketing results, the product is introduced nationally.
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Marketing Research Proposal
Executive Summary Background Problem Definition/Objectives of the Research Approach to the Problem Research Design Fieldwork/Data Collection Data Analysis Reporting Cost and Time Appendices
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The Greenfield of Online Research
Greenfield Online Research Center, Inc. (http://www.greenfieldonline.com), based in Westport, Connecticut, is a subsidiary of the Greenfield Consulting Group. The Online Research Center conducts focus groups, surveys, and polls over the Internet. The company has built up a panel of several thousand Internet users, from which it draws survey samples. The samples may be used for descriptive research designs like single or multiple cross-sectional designs, as well as longitudinal designs. Causal designs can also be implemented. Respondents may also be chosen from the registered Internet users. 2-93 Copyright 2010 Pearson Education, Inc.
The Greenfield of Online Research

Internet users wishing to take part in surveys and other projects begin by registering online at the companys Web site. The registration consists of a sign-up survey that asks for e-mail address, type of computer used, personal interests and information about the respondents household. Once an Internet user is registered, Greenfield Online matches the user with research studies that are well-suited to his or her interests. Incentives to take part in focus groups or special surveys are offered by the companies whose products or services are being researched. This incentive is cash or valuable prizes. Incentives are also offered to Internet users to encourage them to register with Greenfields Internet panel. New 2-94 Copyright 2010 Pearson Education, Inc. registrants automatically qualify for prizes that are
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Primary Vs. Secondary Data
Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process (Chapter 1). Secondary data are data that have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.
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A Comparison of Primary & Secondary Data

Table 4.1
Primary Data Collection purpose Collection process Collection cost Collection time
Secondary Data
For the problem at hand For other problems Very involved Rapid & easy High Relatively low Long Short
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Uses of Secondary Data
Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (for example, by identifying the key variables) Answer certain research questions and test some hypotheses Interpret primary data more insightfully
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Criteria for Evaluating Secondary Data
Specifications: Methodology Used to Collect the Data Error: Accuracy of the Data Currency: When the Data Were Collected Objective(s): The Purpose for Which the Data Were Collected Nature: The Content of the Data Dependability: Overall, How Dependable Are the Data
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Criteria for Evaluating Secondary Data

Table 4.2
Criteria Issues Remarks
Data should be reliable, valid, & generalizable to the problem. Assess accuracy by comparing data from different sources. Census data are updated by syndicated firms. The objective determines the relevance of data. Reconfigure the data to increase their usefulness. Data should be obtained from an original source.
Data collection method, response rate, quality & analysis of data, sampling technique & size, questionnaire design, fieldwork. Error & Accuracy Examine errors in approach, research design, sampling, data collection & analysis, & reporting. Currency Time lag between collection & publication, frequency of updates. Objective Why were the data collected? Nature Definition of key variables, units of measurement, categories used, relationships examined. Dependability Expertise, credibility, reputation, and trustworthiness of the source. Specifications & Methodology
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A Classification of Secondary Data

Fig. 4.1
Secondary Data
Internal
External
Ready to Use
Requires Further Processing
Published Materials
Computerized Databases
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Syndicated Services
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Internal Secondary Data Department Store Project Sales were analyzed to obtain: Sales by product line Sales by major department (e.g., men's wear, house wares) Sales by specific stores Sales by geographical region Sales by cash versus credit purchases Sales in specific time periods Sales by size of purchase Sales trends in many of these classifications were also examined
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Type of Individual/Household Level Data Available from Syndicated Firms I. Demographic Data - Identification (name, address, email, telephone) - Sex - Marital status - Names of family members - Age (including ages of family members) - Income - Occupation - Number of children present - Home ownership - Length of residence - Number and make of cars owned
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Type of Individual/Household Level Data Available from Syndicated Firms

II. Psychographic Lifestyle Data - Interest in golf - Interest in snow skiing - Interest in book reading - Interest in running - Interest in bicycling - Interest in pets - Interest in fishing - Interest in electronics - Interest in cable television There are also firms such as Dun & Bradstreet and American Business Information which collect demographic data on businesses.
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A Classification of Marketing Research Data

Fig. 5.1 Marketing Research Data
Secondary Data
Primary Data
Qualitative Data Descriptive Survey Data

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Quantitative Data Causal Experimental Data

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Observational and Other Data
Qualitative Vs. Quantitative Research Table 5.1 Objective Qualitative Research To gain a qualitative understanding of the underlying reasons and motivations Small number of nonrepresentative cases Unstructured Non-statistical Quantitative Research To quantify the data and generalize the results from the sample to the population of interest Large number of representative cases Structured Statistical Recommend a final course 2-106 of action
Sample Data Collection Data Analysis
Develop an initial Copyright 2010 Pearson Education, Inc. 2007 Outcome understanding Prentice Hall
A Classification of Qualitative Research Procedures Fig. 5.2 Qualitative Research Procedures
Direct (Nondisguised)
Indirect (Disguised) Projective Techniques
Focus Groups Associatio n Technique Copyright 2010 Pearson Education, Inc. 2007 s Prentice Hall
Depth Interviews Completio n Technique s
Construction Techniques
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Expressive Technique s
Characteristics of Focus Groups

Group Size
Table 5.2
8-12
Group Composition Homogeneous, respondents, prescreened Physical Setting Time Duration Recording videotapes Relaxed, informal atmosphere 1-3 hours Use of audiocassettes and
Moderator Observational, interpersonal, and communication skills of the moderator

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Baltimore Research: Facility Overview.

Source http://www.baltimoreresearch.com/marketing_research_facility.php?sPage=Facility 2-109
One-way mirror
Layout of focus group room and viewing room

Viewing room looking into the focus group room through one-way mirror
Source: 2-111 Copyright 2010 Pearson Education, Inc. www.campos.com/focusgs.htm
Key Qualifications of Focus Group Moderators 1. Kindness with firmness: The moderator must combine a disciplined detachment with understanding empathy so as to generate the necessary interaction. 2. Permissiveness: The moderator must be permissive yet alert to signs that the groups cordiality or purpose is disintegrating. 3. Involvement: The moderator must encourage and stimulate intense personal involvement. 4. Incomplete understanding: The moderator must encourage respondents to be more specific about generalized comments by exhibiting incomplete understanding. 2-112
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Key Qualifications of Focus Group Moderators 5. Encouragement: The moderator must encourage unresponsive members to participate. 6. Flexibility: The moderator must be able to improvise and alter the planned outline amid the distractions of the group process. 7. Sensitivity: The moderator must be sensitive enough to guide the group discussion at an intellectual as well as emotional level.
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Procedure for Planning and Conducting Focus Groups

Fig. 5.3 Determine the Objectives and Define the Problem Specify the Objectives of Qualitative Research State the Objectives/Questions to be Answered by Focus Groups Write a Screening Questionnaire Develop a Moderators Outline Conduct the Focus Group Interviews Review Tapes and Analyze the Data Summarize the Findings and Plan Follow-Up Research or Action 2-114 Copyright 2010 Pearson Education, Inc. 2007
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Variations in Focus Groups
Two-way focus group. This allows one target group to listen to and learn from a related group. For example, a focus group of physicians viewed a focus group of arthritis patients discussing the treatment they desired. Dual-moderator group. A focus group conducted by two moderators: One moderator is responsible for the smooth flow of the session, and the other ensures that specific issues are discussed. Dueling-moderator group. There are two moderators, but they deliberately take opposite positions on the issues to be discussed.
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Variations in Focus Groups
Respondent-moderator group. The moderator asks selected participants to play the role of moderator temporarily to improve group dynamics. Client-participant groups. Client personnel are identified and made part of the discussion group. Mini groups. These groups consist of a moderator and only 4 or 5 respondents. Telesession groups. Focus group sessions by phone using the conference call technique. Online focus groups. Focus groups conducted online over the Internet.
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Advantages of Focus Groups

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Synergism Snowballing Stimulation Security Spontaneity Serendipity Specialization Scientific scrutiny Structure Speed
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Disadvantages of Focus Groups
1. 2. 3. 4. 5.
Misuse Misjudge Moderation Messy Misrepresentation
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Online Versus Traditional Focus Groups

Table 5.3
Characteristic Online Focus Groups Traditional Focus Groups Group size 4-6 8-12
Group composition
Anywhere in the world
Drawn from the local area
Time duration
1-1.5 hours
1-3 hours
Physical setting
Researcher has little control
Under the control of the researcher
Respondent identity
Difficult to verify
Can be easily verified
Respondent attentiveness
Respondents can engage in other tasks
Attentiveness can be monitored

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Table 5.3, cont.
Respondent recruiting
Easier. Can be recruited online, e-mail, panel, or by traditional means
Recruited by traditional means (telephone, mail, mail panel)
Group dynamics
Limited (bandwagon) effect
Synergistic, snowballing
Openness of respondents Respondents are more candid due to lack of face-to-face contact
Respondents are candid, except for sensitive topics
Nonverbal communication Body language cannot be observed. Emotions expressed by using symbols
Body language and emotions observed
Use of physical stimuli on the Internet
Limited to those that can be displayed advertising demonstrations, etc.)
A variety of stimuli (products, can be used
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Table 5.3, Transcripts cont.
Observers communication with moderator Available immediately obtain Time consuming and expensive to
Observers can communicate with the the moderator on a split-screen
Observers can manually send notes to the focus group room
Unique moderator skills
Typing, computer usage, familiarity with chat room slang
Observational
Turnaround time in a few days
Can be set up and completed completion
Takes many days for setup and
Client travel costs
None
Can be expensive
Client Involvement
Limited
High
Basic focus group costs
Much less expensive
More expensive: facility rental, food, taping, transcript preparation

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Advantages of Online Focus Groups
Geographical constraints are removed and time constraints are lessened. Unique opportunity to re-contact group participants at a later date. Can recruit people not interested in traditional focus groups: doctors, lawyers, etc. Moderators can carry on side conversations with individual respondents. There is no travel, videotaping, or facilities to arrange so the cost is much lower.
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Disadvantages of Online Focus Groups
Only people that have access to the Internet can participate. Verifying that a respondent is a member of a target group is difficult. There is lack of general control over the respondent's environment. Only audio and visual stimuli can be tested. Products can not be touched (e.g., clothing) or smelled (e.g., perfumes).
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Redefining Marketing Research

The American Marketing Association (AMA) redefined Marketing Research as:

Copyright 2010 Pearson Education, Inc. 2007

Copyright 2010 Pearson Education, Inc. 2007

Copyright 2010 Pearson Education, Inc. 2007

Copyright 2010 Pearson Education, Inc. 2007

Copyright 2010 Pearson Education, Inc. 2007

A Classification of Marketing Research Fig. 1.1 Marketing Research

Problem Identification Research

Table 1.1 cont.

Copyright 2010 Pearson Education, Inc. 2007

Copyright 2010 Pearson Education, Inc. 2007

Marketing Research Process

The Role of Marketing Research Fig. 1.2

Consumers Employees Shareholders Suppliers

Uncontrollable Environmental Factors

Product Pricing Promotion Distribution

Assessing Information Needs

Marketing Decision Making

Copyright 2010 Pearson Education, Inc. 2007

Power Decisions Methodology

Option generation Refine options Decision

Evaluate Interpret Facilitate

Market Plan Research

Advise Assist Execution

Copyright 2010 Pearson Education, Inc. 2007

Marketing Research Suppliers & Services

Other Services Technical and Analytical Services

Focus Groups and Qualitative Services

Copyright 2010 Pearson Education, Inc. 2007

Table 1.2 2006

U.S. Rank U.S. 2007 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 5 4 6 7 8 9 10 11 13 12 14 15

Top 50 U.S. Marketing Research

Copyright 2010 Pearson Education, Inc.

Top 50 U.S. Marketing Research Firms

abtassociates.com srbi.com otxresearch.com burke.com mvlgroup.com knowledgenetworks.com nationalresearch.com directionsresearch.com phoenixmi.com

33.0 22.1 50.8 47.0 42.3 37.3 37.3 37.2 33.5

33.0 22.1 54.5 53.1 42.3 37.3 41.3 37.2

6.8 11.5 9.7 4.0

Copyright 2010 Pearson Education, Inc.

Table 1.2 U.S. Rank

Top 50 U.S. Marketing Research Firms

Copyright 2010 Pearson Education, Inc.

Table 1.2 Organization50 Top U.S. Rank

U.S. Marketing Research Firms

$7.828.7 $774.3 $8,603.0

$17,638.0 $870.1 $18,508.1

55.6% 11.0% 53.5%

*Estimated by Top 50.

Copyright 2010 Pearson Education, Inc.

Selected Marketing Research Career Descriptions

Assistant Director of Research

Administrative assistant to director Supervises research staff members

Senior Project Manager

Responsible for design, implementation, & research projects

Copyright 2010 Pearson Education, Inc. 2007

Copyright 2010 Pearson Education, Inc. 2007

Marketing Research Suppliers & Services

Internal suppliers External suppliers

Copyright 2010 Pearson Education, Inc. 2007

Criteria for Selecting a Research Supplier

Competitive bids should be compared on the basis of quality as well as price.