Chapter 09 MKT120 MKT Research
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The document discusses marketing research and related concepts. It provides learning objectives about how marketers use information systems, potential ethical issues in research, and the steps of conducting research. It also discusses types of data, research methods, and challenges in research. Examples are provided about companies conducting exploratory research and redesigning stores based on research. Key terms are defined in a glossary.
Chapter 09 MKT120 MKT Research
- 1. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
- 2. Learning Objectives LEARNING OBJECTIVES How do marketers use information systems to create greater value for customers? Can certain marketing research practices cause a firm to encounter ethical problems What are the necessary steps to conduct marketing research? What are primary and secondary data, and when should each be used? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-2
- 3. McDonald’s Store Redesign © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-3
- 4. Market Research Outcome What might have Chef Boyardee learned in research to design this product and this print ad? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-4
- 5. Marketing Research . © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-5
- 6. Using Marketing Information Systems to Create Better Value © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-6
- 7. What Would You Do? Meet Aaron, a marketing researcher: • He has just finished giving a successful presentation to a major client. • The client has asked for a list of companies that participated in the study and copies of all the completed surveys. CASRO Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-7
- 8. The Marketing Research Process © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-8
- 9. Step 1: Defining the Objectives and Research Needs © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-9
- 10. Step 2: Designing the Research Project Secondary data Secondary data Primary data Primary data © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-10
- 11. Syndicated Data © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-11
- 12. Advantages and Disadvantages of Secondary and Primary Data © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-12
- 13. Step 3: Data Collection Process © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-13
- 14. Data Collection TheIdeaGroup Commercial © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-14
- 15. Describing the benefits How could Ziploc use exploratory research to design this ad? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-15
- 16. Using Exploratory Research How can a firm use exploratory research to How can a firm use exploratory research to uncover consumers’ attitudes toward their uncover consumers’ attitudes toward their product/service? product/service? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-16
- 17. Conclusive Research Methods Can be either: Can be either: Descriptive Experimental © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-17
- 18. Survey Research © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-18
- 19. Web Surveying Response rates are relatively high Respondents may lie less It is inexpensive Results are processed and received quickly © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-19
- 20. Using Web Surveying How do firms successfully use web surveying? How do firms successfully use web surveying? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-20
- 21. Experimental Research Focus Group by Microsoft for Vista © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-21
- 22. Scanner Research Information Resources, Inc. AC Nielsen What if I reduce my price by 10%? IRI Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-22
- 23. Panel Research Group of consumers Survey or sales receipts What are they buying or not buying? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-23
- 24. Step 4: Analyzing Data Converting data into information to explain, predict Converting data into information to explain, predict and/or evaluate a particular situation. and/or evaluate a particular situation. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-24
- 25. Step 5: Presenting Results © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-25
- 26. McDonald’s Makeover © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-26
- 27. Debating Domestic Eavesdropping © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-27
- 28. Market research includes: A. collecting data. B. analyzing data. C. recording data. D. interpreting data. E. all of the above. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-28
- 29. The major advantage of primary research data is it: A. can be easily accessed through syndicated data bases or unstructured data mines. B. can be tailored to meet the specific research needs. C. take more time to collect than secondary data and is more costly. D. are general enough to meet researchers’ and managers’ needs. E. all of the above are advantages of primary research data. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-29
- 30. A researcher will likely engage in exploratory research when: A. data co-mingling. B. the market research problem is not clearly defined. C. syndicated marketing surveys provide sufficient information to address the research question. D. conclusive research has been completed. E. all of the above. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-30
- 31. Jerry is designing an online survey questionnaire. When designing the questionnaire, Jerry should consider which of the following? A. be careful not to create misleading questions. B. use language respondents are familiar with. C. sequence the questions appropriately. D. create a clear and easy to follow layout. E. all of the above. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-31
- 32. Check Yourself 1. What are the steps in the marketing research process? 2. What is the difference between primary and secondary research? 3. What is the difference between exploratory and conclusive research? 4. What are some commonly used survey based metrics? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-32
- 33. Glossary Conclusive research provides the information needed to confirm preliminary insights and which managers can use to pursue appropriate courses of action. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-33
- 34. Glossary Data are raw numbers or other factual information that, on their own, have limited value to marketers. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-34
- 35. Glossary Experimental research is a type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-35
- 36. Glossary Exploratory research attempts to begin to understand the phenomenon of interest and provides initial information when the problem lacks any clear definition. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-36
- 37. Glossary A marketing information system (MkIS) is a set of procedures and methods that apply to the regular, planned collection, analysis, and presentation of information that then may be used in marketing decisions. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-37
- 38. Glossary Marketing research consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-38
- 39. Glossary Panel research is a type of quantitative research that involves collecting information from a group of consumers (the panel) over time. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-39
- 40. Glossary Scanner research is a type of quantitative research that uses data obtained from scanner readings of UPC codes at check-out counters. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-40
- 41. Glossary A survey is a systematic means of collecting information from people that generally uses a questionnaire. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-41
- 42. Glossary Syndicated data are data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 9-42
Editor's Notes
- #3: These are the learning objectives for this chapter.
- #4: Ask students : How did McDonald’s conduct research and what did they learn? Students should realize that observation research was very important. With this they realized there were 3 segments of consumers based on how long they sat in the restaurant .
- #5: It appears from the message in the ad that research showed that consumers did not like to open the cans – it took an “easy” product and made it easier.
- #6: Consists of a set of techniques and principles for systematically collecting, recoding, analyzing and interpreting data that can aid decision makers involved in marketing goods, services or ideas The marketing research function links firms and organizations to their customers through data. By collecting data from customers, firms can better deliver products and services designed to meet their needs
- #7: Every day, consumers provide wide-ranging data that get stored in increasingly large databases. Ask students: How might firms and organizations collect information about you? Do you always know when you are providing such data? Who uses these data? In the United States, firms use opt-out programs, so when consumers fill out a registration form or application, the firm automatically has permission to market to that customer and share information with its partners, unless consumers explicitly revoke this permission. In contrast, the EU regulations state that customers must opt-in to such information uses.
- #8: Confidentiality is one of the first rules under the Code of Ethics. Aaron should not give information to the client unless the research respondents have consented to his doing so. Bottom Line: Marketing research should be used only to produce unbiased, factual information. This web link brings you to the Council of American Survey Research Organizations code of ethics
- #9: Answers to some research questions are readily accessible, as a simple data search would show.
- #10: To determine whether to conduct research, two questions must be addressed: What? How?
- #11: After answering why and how, researchers must determine where they can find the data. Discuss how the types of data required determine the methods used to collect them. If you can connect to your college library – look at some of the data sources at your own school. Dabases like mintel, tablebase, ABI inform and Business Source Premier are excellent sources of data. Group activity: As a group, tackle a problem for a company (e.g., local retailer who appears to be losing customers), For this problem, list several research questions that secondary data can answer. Then list several questions that require primary data.
- #12: Secondary data are plentiful and free, whereas syndicated data generally are more detailed but can be very costly . Ask students: Why might firms subscribe to a data service and collect their own primary and secondary data at the same time?
- #13: A summary of the advantages and disadvantages of each type of research.
- #14: Managers commonly use several exploratory research methods: observation, in-depth interviewing, focus group interviews, and projective techniques. If the firm is ready to move beyond preliminary insights, it likely is ready to engage in conclusive research, which provides the information needed to confirm those insights and which managers can use to pursue appropriate courses of action.
- #15: This YouTube video (always check before class) is a commercial that spoofs a focus group with caveman Example of observation: When a museum wanted to know which exhibits people visited most often, it conducted a unique study to determine the wear patterns in the floor. This “human trace” evidence allowed the museum to study flow patterns. Interviews provide extremely valuable information, because researchers can probe respondents to elicit more information about interesting topics. Focus groups similarly provide a snapshot of customers’ opinions and allow some follow-up but also are relatively fast and inexpensive to conduct. Group activity: In groups, one person serves as the moderator and another as the note taker. Each moderator determines a product/service to discuss with the rest of the group, which represents the focus group. The note taker keeps track of the discussion. At the end of class, each group reports on its findings. Potential focus group topics include any current campus situation. For example, should drinking be allowed on campus? Alternatively, the moderators could choose a common product, such as: What makes the best chocolate chip cookie ?
- #16: They might have observed how people tested the durability of bags – perhaps several turned them upside down. They may have conducted interviews about problems, and leaking was a very big issue. Finally, during a focus group, they might have had one participant mention leaking and another to discuss how you would test for leaking – turning the bag upside down.
- #17: Exploratory research offers firms the opportunity to narrow their questions and thus arrive at a better research strategy
- #18: Research can describe a phenomenon or determine a causal relationship. To help the students understand, give examples of two research questions. The first might be finding out how consumers feel about the Audi S4? The other would be finding out how likely the consumer would buy at different price points. The explain how the first is descriptive and the second is experimental.
- #19: Marketing research relies heavily on questionnaires, and questionnaire design is virtually an art form. Ask students the advantages and disadvantages of each type of question (unstructured and structured). Group activity : Create a questionnaire. First determine the form of the questions (i.e., structured versus unstructured). On the basis of these questions, what types of analysis will you be able to perform on your collected data?
- #20: Ask students: Do you fill out internet surveys? If so, were you honest in your responses. Ask students whether they took their time with the survey and gave quality responses.
- #21: The Internet offers researchers a new way to reach customers, but its use requires adaptations and new research methods.
- #22: Using an experiment, McDonald’s would “test” the price of a new menu item to determine which is the most profitable This web link is to a YouTube ad (always check before class) by Microsoft for Vista. It is called the Mojave experiment and is designed to show the relationship between the Vista name and “liking” of a computer system. An example of an experiment could involve two groups of subjects. One taste cookies with a national brand and the other with a store brand. Each group rates the cookie on a seven point scale from poor to great taste. The group with the branded name tends to rate the cookie as better tasting, demonstrating the power of a brand name. Group Activity: Ask students to design a taste test experiment for Coke vs. Pepsi.
- #23: Students may not remember a time before grocery stores used scanners, but highlight how the installation of scanners created a huge new data source for marketers . Ask students: What can researchers take from scanner data? Students might note that researchers can discover which consumers purchase what products together and how often. They also can immediately track the impact of any price or promotional adjustments. This web link brings you to IRI homepage – explore their many products with the students.
- #24: In recent years, response rates to marketing research surveys have declined, which has increased usage of research panels.
- #25: The problem today is not too little data but, in many instances, too much. Firms are drowning in data, and their challenge is to convert that data into information. For the cookie taste test example discussed earlier, suppose the average mean for the group who saw the national brand cookie was 5.4 (1=poor taste and 7=great taste) and the store brand cookie was (2.3. These two means are significantly different. It would be important for the students to realize that the data helps marketing managers make decisions – in this case – creating and cultivating that the brand is important .
- #26: A typical marketing research report would start with a two page executive summary. This would highlight the objectives of the study, methodology and key insights. The body of the report would go through the objectives of the study, issues examined, methodology, analysis and results, insights and managerial implications. We would end with conclusions and any limitations or caveats. Many consultants today, provide an executive summary, power point presentation of the report, questionnaire and tabulated study results
- #27: This clip demonstrates how McDonald’s used observational research to identify and understand their various target markets.
- #28: This video covers domestic eavesdropping…as companies and the government get more technical, they are able to collect much more information. The question in this video is whether the government has the right to eavesdrop on citizen’s communications.
- #29: Ans. E Explanation: Market research is a systematic design, collection, analysis, and interpretation of data to assist with marketing management decision making. Market research begins with defining the objectives and research needs.
- #30: Ans. B Explanation: Primary data is new data collected to address the specific research needs. Primary data can be tailored to meet the specific questions and problems to be addressed.
- #31: Ans. B Explanation: Exploratory research including observation, in-depth interviews, and focus groups is appropriate when the researcher has not clearly defined the problem. Exploratory research may answer the problem but will likely help in clarifying the research question.
- #32: Ans. E Explanation: For any type of survey instrument, each of these guidelines is an important consideration.
- #33: Define objectives and research needs, designing the research project, deciding on the data collection process and collecting the data. analyze and interpret the data, prepare the findings for presentation. Secondary data are pieces of information that have been collected from other sources. Primary data are data collected to address specific research needs, usually through observation, focus groups, interviews, surveys, or experiments. exploratory research attempts to begin to understand the phenomenon of interest; it also provides initial information when the problem lacks any clear definition. Conclusive research provides the information needed to confirm exploratory research insights and which managers can use to pursue appropriate courses of action. attitudes, perceived quality, value, and willingness to buy, perceptions (e.g., quality, value), and loyalty (e.g., purchase intentions).