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Research Methods for Marketing
Terms in this set (82)
Marketing Research definition
the planning, collection, and analysis of data relevant to decision making and the communication of the results of this analysis to the management.
Marketing Research plays 3 important roles. What are they?
Descriptive Function of marketing research
the gathering and presenting of statements of fact.
Ex:) Consumer attitudes/beliefs towards a product, historic sales trend in the industry)
Diagnostic Function of Marketing Research
the explanation of data or actions through analysis etc.
Analyzing the data collection obtained in descriptive function.
Ex:) What was the impact on sales when the Oscar Mayer package design was changed? How can product/service offerings be altered to better serve customers and potential customers?
Predictive Function of Marketing Research
the specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision (what does it imply to the marketer.)
-Think product, place, price, promotion; what should be the #1 of marketing decision?
-How can the firm best take advantages of opportunities as they arise in the ever-changing marketplace?
Descriptive (gathering & presenting)
What do consumers look for when buying cosmetics?
Cited as favorite-- Cover girl 14%, Clinique 10%, Maybelline and Mary Kay 8%.
I believe this question may be just asking what function of marketing research this is, which answer would be descriptive.
Types of research studies
Applied (practical) and Basic (pure)
Applied Research- definition and examples
Research aimed at solving a specific, pragmatic(practical) problem--better understanding of the marketplace, determination of why a strategy or tactic failed, or reduction of uncertainty in management decision making. Done mostly by businesses.
ex) better understand market, find out why a strategy failed.
1. Should the price of DiGiorno frozen pizza be raised 40c?
2. What name should Toyota select for new sedan?
3. Which commercial has a higher level of recall in consumer's mind: A or B?
Basic Research- definition and examples
Research aimed at expanding the frontiers of knowledge rather than solving a specific, pragmatic problem. Done mostly by universities and has long-term orientation.
-Conducted to validate an existing theory or learn more about a concept for phenomenon.
Ex) may test hypothesis about high-involvement decision making or consumer information processing.
-Helps us understand more about the world we live in
ex:) Professor did basic research on the perceived scarcity in fashion. How it Influences consumer behavior & leads to deviant behavior like in-store hiding.
What are the 3 types of applied research?
Applied Research type - Programmatic
Research conducted to develop marketing options through market segmentation, market opportunity analysis, or consumer attitude and product usage studies.
-done to obtain a market overview periodically.
ex.) has the target market changed? how?
-Does the market exhibit any new segmentation opportunities?
-Do some segments appear to be more likely candidates than others for the firms marketing efforts?
-What new product or service opportunities lie in the various segments?
Applied research type - Selective
Research used to test decision alternatives.
ex) testing concepts for new products, advertising copy testing, and test marketing.
ex) coca cola reformulated its coke product. New coke was a disaster that could have benefited from selective research.
Applied research type- Evaluative
Research done to asses program performance.
-Done to evaluate effectiveness and efficiency of marketing programs.
ex) tracking advertising recall, doing organizational image studies, and examining customer attitudes on a firm's quality of service.
ex) Apple-Listens to customers, evaluated themselves constantly.
What type of applied research is this an example of?
Gillete wants to replace the current line of razors by introducing a new line of razors and wants to test how it will do in the current market.
Selective since it's testing alternatives in the market.
What type of applied research is this an example of?
Toyota Prius through focus groups is trying to assess its performance by letting consumers assess the brand and its marketing performance over 10 years.
Evaluative because it's done to test the efficacy of marketing programs.
What type of applied research is this an example of?
Starbucks is trying to enter international markets but is not sure about their target market.
programmatic because it's trying to learn about target market.
Decision to conduct marketing research
1. cost v. benefits
2. resources available to conduct research
3. resources available to implement the research findings
4. management's attitude towards research
DO NOT conduct marketing research under following circumstances:
- The resources are lacking to do proper research.
- Managers cannot agree on what they need to know to make a decision.
- The opportunity has passed.
- The decision has already been made, or will not be made.
- The research results might not be useful to management.
- Decision-making information already exists.
- The research cost outweighs the benefits of the research.
- You do not have the time to do the research right.
- The research results will likely only be shelved.
How does marketing research help managers?
-Get the right goods or services to the right people at the right time at the right price with the right promotion thus satisfying the marketing objective.
-focus on customer satisfaction and retention.
- Work within an internal environment of an organization and the external environment over which he or she has little control.
The unique blend of product/service, pricing, promotion, and distribution strategies to meet the needs of a specific target market.
The four P's - Product, Price, Promotion, Place
What are the 8 steps of the marketing research process?
1. Identification of the problem and statement of the research objectives
2. creation of the research design
3. choice of method of research
4. selection of the sampling procedure
5. collection of the data
6. analysis of the data
7. writing and presentation of the report
Step 1 of Marketing Research Process
Problem definition and statement of objectives
-Involves research question, hypothesis
Step 2 of marketing research process
creation of the research design
-exploratory, descriptive, casual, planning, implementing, controlling.
Step 3 of the marketing research process
choice of research method
-Secondary vs. Primary - survey, focus groups, experiments, interviews, etc.
Step 4 of the marketing research process
-Probability vs. non-probability, sample size
Step 5 of the marketing research process
-Personal, telephone, mail, Internet, etc.
Step 6 of the marketing research process
-Level & scope must be determined early
Step 7 of the marketing research process
Write and present the research report
Step 8 of the marketing research process
-Were recommendations followed? Is more research needed?
Why do we follow up?- to see if research objectives in step 1 were met.
Step 1: Research Objectives
Questioning what the researcher wants to learn without making a claim about what might be causing the issue at hand
ex) "We don't know why sales are declining, so let's research the problem to find out."
ex) "How do consumers behave to discount promotions like sales etc.?
Step 1: Research Objectives
A statement about a relationship between two or more variables that can be tested with empirical data. A claim, or argument about your theory of what is causing "X" that you will research to prove or disprove:
Ex:) "Sales are declining because of competition"
ex) "Expenditure on billboard advertisement will increase the sale of Starbucks"
step 1-Research Hypothesis - Dependent variables
A symbol or concept expected to be explained or influenced by the independent variable.
-influenced/dependent on something else
-One affects the dependent variable by manipulating the independent variable deemed to be associated with the dependent variable.
step 1- Research Hypothesis - Independent variables
A symbol or concept over which the research has some control and that is hypothesized to cause or influence the dependent variable.
-not dependent on anything; operates independently.
-variable that market researcher can, to some extent, manipulate, change, or alter.
-presumed cause of influence on the dependent variable, the presumed effect.
step 1- Examples of variables in marketing research (research hypothesis)
-Starbucks wants to know whether increasing the advertising budget (independent variable) increases determines the sales (dependent variable).
-Sales (dependent) are declining because of competition (independent)
- chances of getting a job(dependent) upon your independent variables of resume, knowledge, experience, job market, how many apps you submitted
Step 2: Marketing Research Design
definition and what are 3 types
The plan to be followed to answer the marketing research objectives
-It is the detailed blueprint used to guide the research study towards its objectives including what and how you will conduct the research study
step 2 design: Exploratory research studies
PRELIMINARY research conducted to increase understanding of a concept, to clarify the exact nature of the problem to be solved, or to identify important variables to be studied.
ex) researchers want to know whether social media platforms will be an effective way to market their new product.
ex) researchers want to know how perfumes stimulate consumers buying/purchasing behaviors.
ex) Starbucks is doing a research on why their frappes sell more than their lattes even though they are both coffee. Doing research on why they are not as effective.
ex) will new brand of shoes sell in small shoe store? Manager observes larger shoe store during busy time and sees if customers are buying any of that brand or not and at what rate.
ex) researching how to keep their customers for longer
ex) Sending out family surveys to render opinions of services, to look for areas to improve upon
ex) researchers want to know why people shop at Nike through surveys, polls, and observations.
step 2 design: Descriptive research studies
answers the who, what, when, where, and how questions. It is used when one want to gain a better understanding of the specifics or details the research issue.
ex) Starbucks wants to know who are the coffee drinkers and who are tea drinkers? Or in other words Starbucks wants to know the demographic and psychographic demographics of coffee drinkers and tea drinkers.
ex) researcher wants to know percentage of americans that prefer iphones over androids.
ex) researcher wants to know the different age groups that are interested in buying product
ex) looking at trends for an apparel brand, looking at data of a sales trend for a sports drink, comparing student performance in college.
ex) want to know how many women in IL wear heals compared to tennis shoes- want to know who and why in order to place, promote, sell.
ex) a research on what kinds of starbucks drinks are sold and who is buying them
ex) coffee shop survey asking what time the customer comes to shop, what they order, age, background, etc to see who target market is.
ex) AMC wants to know who enjoys action movies and who likes comedy movies
step 2 design: Causal research studies
examine whether the value of one variable causes or determines the value of another variable
ex) Consumers in cold/hot whether influences drinking behavior?
Manipulating weather (independent) to see the likelihood of drinking hot drink (dependent)
ex) Movie trailers (avengers) 2 types - one with background music one w/o.
To see consumer likelihood to go see movie in theaters.
ex) A researcher wants to know if adding a red phone to the product line will increase the demand for phone.
ex) Candy manufacturer wants to know if certain holidays affect the amount of candy that is being purchased.
ex) What is the effect of exercise on heart rate?
ex) Taking a sample of people and putting them in a mock grocery store to see what colors on the packaging are most attractive
ex) How time affects peoples shopping habits
ex)Does raising/lowering price hurt sales or not.
ex) researcher wants to know if the price of coffee determines price of tea drinks?
ex) A person opening businesses put survey out to see if customers would rather dine-in or takeout during pandemic.
ex) analyze the influence of rebranding program on customer loyalty level
ex) Would adding vegan burger affect sales of their regular cheeseburger?
ex) Does increasing number of targeted email ads increase sales?
Step 3: Choosing a Research Method, what are the 4 types?
Survey research (quantitative)
step 3- Observation research
Typically descriptive research that monitors respondents' actions without direct interaction
step 3- Survey research (quantitative)
research in which surveys (personal, telephone, mail or internet) are used to obtain facts, opinions, and attitudes from respondents. Typically can be done for descriptive and exploratory research.
step 3- Experiments (quanititative)
research to measure causality, in which the researcher changes one or more independent variables and observes the effect of the changes on the dependent.
ex) attitudes to different levels of discounts.
ex) when test audiences did not respond to an alternate opening for the avengers, director recut the film to change the opening sequence.
step 3 - Qualitative research
research such as focus groups, face to face interviews, secondary data analysis, and case studies. Typically done for exploratory and descriptive research.
Step 4: Sampling procedure- probability vs. non-probability
Probability sample- a subset of the population that can be assumed to be a representative cross section of the population because every element in the population has a known non-zero chance of being selected.
Non-probability sample- a subset of the population in which the chances of selection for the various elements in the population are not precisely known
ex) convenience sample
Sample size- how many are needed to interview or observe?
Step 6: Analysis of the data
Data analysis- use a variety of quantitative and qualitative analytical techniques.
-interpret and draw conclusions from the mass of collected data in step 5.
Step 8: follow up
If researchers objectives are met?
Will the findings be used and why will the be used or not?
It is best to minimize any conflict between the marketing department and other departments in the organization.
What is secondary data and examples of sources
Data that has been previously gathered. (Primary is new data gathered).
Textbooks, encyclopedias, journal/magazines, movie/book.
There are two basic sources
the company itself (internal databases)
-annual reports, sales data, customer profiles, purchase patterns, product testing results, internet and mobile tracking of customers, company website tracking.
other organizations such as Acxiom-who integrates online, mobile, and offline data to create in-depth consumer behavior portraits, (external databases).
-innumerable government departments and agencies that compile and publish summaries of business data, as well as trade and industry associations, business periodicals, and other news media that regularly publish studies and articles on the economy, specific industries, and even individual companies.
Advantages of secondary data
- can help to clarify or refine the issue or problem (YMCA found singles are large market in secondary data)
-might provide a solution to a research problem
-might provide primary data research alternatives
-can alert the researcher to other problems
-provides background information enhancing research capability
-usually less expensive and faster to gather
Disadvantages of secondary data
LACK OF AVAILABILITY-might not be any available data on your topic
LACK OF RELEVANCE-data might be outdated
INACCURACY-might be biased or questionable source
INSUFFICIENCY-not enough info exists
Some things to see when assessing secondary data
--Who gathered the data? (the case of secondary data in other countries)
--What was the purpose of the study?
--what information was collected?
--when was the information collected?
--How as the information collected?
--Is the information consistent with other information?
Suppose a market researcher was consulting several sources of information about the best location for a high-end clothing store, and found the following:
Percent of Luxury Purchases
2009 2010 2011
City Retail Association Census of Retailing Chamber of Commerce
A 6% 14% 5%
B 5% 18% 6%
C 6% 10% 7%
The Census study was conducted in 2010, but how reliable is this information? Why should the researcher question the numbers in the Census studies?
a. age of the Census studies
b. how the information was collected
c. consistency of the Census information with the Chamber and Retail
d. sufficiency of the information collected
e. purpose of the study
Explanation: As said is Chapter 3, in order to access the secondary report, the information collected should be consistent with the other information. In the above example, Census of retailing information is not consistent with the other two information collected from Chamber and Retail.
Suppose a market researcher consulted multiple information sources regarding the addition of a theatre to a local community, and found the following:
Percent of Local People who go to theatre
Theaters within 50 Miles Local Audience Ticket Sales
A 18% 25%
B 22% 20%
C 19% 10%
The studies were conducted via polls on a social media website for the first two, but the third involved in person surveys of visitors entering and exiting the theater? Why should the researcher question the numbers in the persons survey?
a. age of the website studies
b. how the information was collected
c. inconsistency in the information collected
d. sufficiency of the information collected
e. purpose of the study
A collection of related information developed from data within the organization.
Database marketing: marketing that relies on the creation of a large computerized file of customers and potential customers profiles and purchase patterns to create a a targeted marketing mix.
ex)target asks for your zip code at checkout.
Some key features: (not that important for test)
-creation of large, up-to-date, computerized file
-can include current, past, or potential customers,
-might be focused on demographic/purchase behaviors
-development of customer profile results
-should enable one to generate direct marketing mailers/e-mails targeted at specific customers based on their buying behavior
-can be used to collect customer info from your website
-should be organized to enhance you to search the database using queries
-should be compatible with database software that will enhance analysis
internal databases- the case of data mining
Definition and XYZ example
Data mining is the use of statistical and other advanced software to discover non-obvious patterns hidden in a database.
Ex) XYZ music company used data mining to identify a group of high-spending, 65-plus customers who were buying lots of classical and jazz music and movies.
Data mining also revealed that a large group of this market was also buying rap and alternative music; these were grandparents buying for the grandkids.
What are the marketing implications for XYZ? - they aren't just buying for themselves, so start marketing rap/alternatives to market segment.
Internal databases- the case of data mining
What are the four applications for data mining?
1. Customer acquisition
2. Customer retention
3. customer abandonment
4. market basket analysis
Data mining- customer retention
In a typical marketing application, data mining identifies those customers who contribute to the bottom line, but are likely to leave and go to a competitor. Retaining vulnerable customers can save a company millions.
-Clothing retailers will send out catalogues with special offers to previous customers who haven't shopped in a while in order to lure them back to the company.
Data mining- customer abandonement
Some customers cost more than they contribute. Companies use data mining to identify those customers and may use it to encourage them to go elsewhere.
-FedEx will not directly market to customers who spend very little. This doesn't mean they wont provide service, but they are unlikely to receive direct phone calls or emails.
Q. A marketing researcher wants to know what percentage of consumers would purchase a car that has not yet been produced. She would likely have a hard time finding secondary data to address this due to________
a. Lack of availability
b. Lack of relevance
e. None of the above
A) Lack of availability
Q. When you are not sure who gathered secondary data, its _______ may be questionable
e)None of the above
C) Accuracy, we're not sure who gathered the data.
The case of tequila
A company marketing tequila wants to examine why some tequila drinkers are heavy users and some are light users.
Qualitative research will help in examining attitudes, feelings, and motivations of the heavy users.
Qualitative research helps us understand the mind of consumer.
-Talking to heavy users will help the company understand how they express themselves, what language they use...
-Good for creating advertisements campaign that target heavy users (profitable clients)
(Face to face- build trust, most wont want to talk about heavy alcohol use. )
research yielding findings that are not subject to quantification or quantitative analysis. Its research conclusions are not based on precisely measurable statistics but on more subjective observations and analysis.
research that uses mathematical analysis. Typically research analysis is done using measurable and numeric standards.
qualitative vs quantitative types of quesitons
probing vs. limited probing
qualitative vs quantitative types of sample size
small vs. large
qualitative vs quantitative amount of information from each respondent
Substantial vs. varies
qualitative vs. quantitative requirements for administration
interviewer with special skills vs. interviewer with fewer special skills or no interviewer
qualitative vs quantitative type of analysis
subjective, interpretive vs. statistical,summation
qualitative vs quantitative hardware
sound recorders, projection devices, video recorders, pictures, discussion guides
questionnaires, computers, printouts, mobile devices
qualitative vs quantitative degree of replicability
low vs. high
qualitative vs quantitative research training
psychology, sociology, social psychology, consumer behavior, marketing, marketing research
statistical, decision models, decision support systems, computer programming, marketing, marketing research
qualitative vs quantitative type of research
exploratory vs. descriptive or causal.
What are the 4 types of qualitative method?
1. Focus groups
2. in-depth interviews
3. hermeneutic research
4. projective tests
Focus group defined and importance
A group of eight to 12 participants who are led by a moderator in an in-depth discussion on one particular topic or concerpt.
Most common type of qualitative research
Some key characteristics:
-Good idea generation, brainstorming, and understanding customer vocabulary
-Can be helpful in gaining insight to motives, attitudes, and perceptions
-Can reveal needs/likes and dislikes/prejudices driven by emotions
What are the 4 steps to focus groups
Step 1: Prepare the group: select a focus group facility and recruit the participants.
Step 2: Select a moderator and create a discussion guide.
Step 3: Conduct the group
Step 4: Prepare the focus group report
Disadvantages to focus groups
-Focus groups can make managers believe they truly understand a situation even if it is only a small slice.
-Focus groups appeal to the desire for quick, simple answers to problems.
-Some focus groups create an impersonal atmosphere that discourages honesty.
-Some respondents may also be a problem if they are too introverted or coping with a dominant personality in the room.
-Much of the success relies on a moderator to control and soothe the situation
Other qualitative methods-
In-depth Interviews (IDIs)
one-on-one interviews that probe and elicit detailed answers to questions, often using non-directive techniques to uncover hidden motivations
ex) trying to understand deviant and compulsive behaviors such as hiding clothes. Probe and elicit detailed answers to questions.
Advantages of In-Depth Interviews (IDIs)
-Group pressure is eliminated
-respondent feels important and truly wanted
-respondent attains a heightened state of awareness
-encourages the revelation of new information
-respondents can be questioned at length to reveal feelings and motivations
-individual interviews allow greater flexibility to the direction of questioning
-the interviewer becomes more sensitive to nonverbal feedback
-a singular viewpoint can be obtained without influence from others
-Interviewers can be conducted anywhere.
Other qualitative methods- hermeneutic research
research that focuses on interpretation through conversations
Other qualitative methods- Projective tests
Techniques that tap into respondents deepest feelings by having them project those feelings into an unstructured situation.
What are the 8 types of projective tests
1. word association test (an interviewer reads the word to the participant and asks him or her to mention the first thing that comes to mind)
2. analogy (draw a comparison between two items in terms of their similarities, stores Neiman Marcus, Saks, Macy's, Walmart, and JC Penny and Ford car example)
ex) draw comparison b/w 2 items such as mall and car are both American.
3. Personification (drawing a comparison between a product and a person)
ex) celebrity branding products like perfume. Use their "essence" in perfume.
4. sentence and story completion test
5. Cartoon tests and photo sorts
6. customer drawings/collage making
8. third person technique (ask in 3rd person format, most people think... also used to ask sensitive issues.)
Word association tests
Projective test in which the interviewer says a word and the respondent must mention the first thing that comes to mind.
Ex) A cosmetics company ask consumers to respond to following words as potential names for a new perfume:
A projective test in which respondents complete sentences or stories in their own words.
1. Best buy is...
2. The people who shop at Best Buy are...
3. Best Buy should really...
4. I don't understand why Best Buy doesn't...
5. The last time I was at Best Buy...
cartoon tests- fills in dialogue of one of two characters in a cartoon.
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