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Advantages of Secondary Data

•Can help to clarify or refine the issue or problem
• Might provide solution to research problem
• Can alert the researcher to other problems
•Provides background information enhancing research credibility

Disadvantages of Secondary Data

•Might be outdated or questionable
•Qualitative nature makes analysis difficult
•Could be misapplied to your situation
• Might be biased - intentionally or unintentionally
• Lack of available data on your topic

Internal Secondary Data

"A collection of related information developed from data within an organization."

Internal data - consumers using membership/discount cards tracks what they buy and in what quantity. Often based on sales results.

External Secondary Data

External data - Survey's to see whether or not their customers are satisfied with Walmart.
Or External data being "data warehouses"

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 target marketing mix.

Define a Focus Group

"A group of eight to 12 participants who are led by a moderator in an in-depth discussion on one particular topic or concept."

Steps of conducting a focus group

1. Define on the key focus group objectives
2. Use secondary research to hone questions
3. Select focus gruop facility and participants
4. Begin recruiting after deciding on participants incentives
5. Select a moderator
6. Develop a moderator guide to chart flow of a focus group
7. Conduct the focus group- generally about two hours
8. Review the videotape, your notes--and analyze the results
9. Pepare a written report

Moderator's role

Interacting among people in a group. The moderator must manages this issue deftly.

Advantages of a Focus Group

-stimulate new ideas, insights
-in-depth discussion on topics, concepts
-allows client to observe & comment onsite
-can be executed quickly
-can enhance other data collection methods

Disadvantages of a focus group

-moderator's style influences the response
-group process itself
-interpretation is subjective
-may mislead managers
-often misused as representative the general population

Why survey research?

-The need to know: Who, Why, How

Survey research error

-random error
-systematic bias: measurement error, sample design error

Random error

Due to chance variation. Chance variation is the difference between the sample value and the true value of the population mean. This error cannot be eliminated, but it can be reduced by increasing the sample size.

Systematic bias

Results from mistakes or problems in the research design or from flaws in the execution of the sample design.

Sample design error

Is a systematic error that results from a problem in the sample design or sampling procedures. Types of errors include: frame errors, population specification errors, and selection errors.

Measurement error

Occurs when there is a variation between the informing being sought and the information actually obtained by the measurement process. These errors include surrogate info error, interviewer error, measurement instrument bias, processing error, nonresponse bias, and response bias.

Types of surveys

-door to door
-mall intercept interviews
-telephone interviews
-self administered questionnaires
-mail surveys

Survey Research on the Internet

1.)Design the questionnaire
2.)Use a web survey software (Survey Monkey, Survey Gizmo) and transfer
3.)Email potential respondents
a.Provide chance to win a prize (sweepstakes) vs. pay all
b.Provide hyperlink to survey
4.)Collect responses thru survey software website
5.)Download response & analyze data

Comercial online panels

oOpen OR closed online panel recruitment
oRespondent cooperation (rewards, prizes)
oControlling panel (quality)

Advantages of internet surveys

oLow costs & no geographic barriers
oCan be executed quickly/ real time results
oGood for getting fresh ideas/ brainstorming
oGenerally higher response rates
oHighly profitable for research firms

Disadvantages of internet surveys

oInfo security (privacy)
oNot everyone has easy access to the internet
oOften not representative of general population
oAnyone can take survey if not password protected
oCan be hard to track who responded & who didn't
oRepeat responses
oNo clarification of open ended questions

Conditions for using observation research

oNeeded info must be observable OR inferable
oBehavior should be repetitive, frequent, OR predictable
oBehavior must be relatively short in duration

3 types of observation research

oHuman observation: ethnographic research, mystery shoppers, one way mirror
oMachine observation: people meter, behavior scan
oInternet observation: clickstream data

Advantages of observation research

oSee what people actually do... realistic
oFirsthand info is less prone to biases
oObservational data can be executive quickly & accurately
oElectronic collection (ex: scanners) is more efficient than manual counts

Disadvantages of observation research

oCannot measure attitudes, beliefs, or feelings
oOnly repetitive or frequent behavior
oNot always a good representation of the general population
oInterpretation is somewhat subjective depending on observation type
oData analysis is more qualitative
oCan be expensive & time consuming if subjects not readily available

Nominal scale

•Nominal scale: partition data into mutually exclusive & collectively exhaustive categories
oClassification type data
oYes or no
Cross tabulations, percentages
Sums & frequency counts
Cannot tell relative value of responses

Ordinal Scale

•Ordinal scale: nominal scales + ability to order data
oRanking type data
oRating: best liked, worst liked
oRanking: first, second, third
Cross tabulations, frequency counts
Percentages, mode, mean
Can tell the relative order of responses but not the distance between responses

Interval scale

•Interval scale: ordinal scales + equal intervals between points
oComparison type data
oAir pressure
oLevel of knowledge about brands
Standard deviation
Mean, median, mode
Sums and frequency counts
Can tell the relative value of responses & the distance between responses
Arbitrary zero (Fahrenheit vs. Celsius)

Ratio Variable

•Ratio scale: Interval scales + meaningful zero point
oFlat numeric type data
oNumber of children
Standard deviation
Mean, median, mode
Sums and frequency counts
Correlation, regression
Can tell the relative value of responses & can tell the distance between responses
True zero

Accuracy of measurement

•Accuracy of measurement
oReliability: degree to which the measures are free from random error
Does it produce consistent results?
Extent to which the survey responses are internally consistent
oValidity : does it measure what we want to measure?

sample design error

systematic error that results from an error in the sample design or sampling procedures
-includes: frame errors, population specification errors and selection errors

sampling frame

the list of population elements or members from which units to be sampled are selected

frame error

-results when you use an innacurate sampling frame

population specification error

errors that result from incorrectly defining the population or universe from which a sample is chosen

selection error

error that results from incomplete or improper sample selection procedures or not following appropriate procedures

surrogate information error

error that results from a discrepancy between the information needed to solve a problem and that sought by the researcher (failure to properly define a problem)

measurement insturment bias

error that results from the design of the questionaire or measurement insturment

processing error

mistakes when the info is entered into the computer

nonresponse bias

error that results from a systematic difference between those who do and those who do not respond to a measurement insturment

response bias

error that results from the tendency of people to answer a question incorrectly through either deliberate falsificaiton or unconscious misrepresentation

marketing concept

business philosophy based on including 1) consumer orientation 2) goal orientation 3) systems orientation

consumer orientation

identification of and focus on people or firms most likely to buy a product and production f a good r service that will meet their needs most effectively

goal orientation

a focus on the accomplishment of corporate goals; a limit set on consumer orientation

systems orientation

the creation of systems to monitor the external environment and deliver the desired marketing mix to the target market

The main goal of marketing research

Marketing reserach is the function of linking the consumer, customer and public to the marketer through information

Critical functions of marketing research

descriptive (gathering and presenting of statements of facts)
diagnostic (explanation of data or actions)
predictive (specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision)

Exploratory Studies

Preliminary research conducted to increase understanding of a concept, to clairfy the exact nature of the problem or to identify important variables to be studied

Purpose of Exploratory Research

-Define Terms
-Clarify Problem
-Develop Theories
-Establish Priorities
-Gain General Information

Observational Research

-typically descriptive research that monitors respondents' actions

Survey Research

research in which an interviewer interacts with respondents to obtain facts, opinions and attitudes

Experimental Methods

-research to measure causality in which the researcher changes one or more variables and observes the effects of the changes on another variable

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