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Introduction to Marketing Research

Copyright © 2014 Pearson Education, Inc. 1


Learning Objectives
 To know the relationship of marketing research to
marketing, the marketing concept, and marketing
strategy
 To know how to define marketing research
 To understand the function and uses of marketing
research

Copyright © 2014 Pearson Education, Inc. 1-2


Learning Objectives
 To see examples of marketing research for
evaluating target markets, product research,
pricing research, promotion research, and
distribution research
 To describe a marketing information system (MIS)
and understand why marketing research occupies
a place in an MIS

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1-3
What Is Marketing?
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.

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What Is the Marketing Concept?
The marketing concept is a business philosophy
that holds that the key to achieving organizational
goals consists of the company’s being more effective
than competitors in creating, delivering, and
communicating customer value to its chosen target
markets.

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What Is a Marketing Strategy?
A marketing strategy consists of selecting a
segment of the market as the company’s target
market and designing the proper “mix” of the
product/service, price, promotion, and distribution
system to meet the wants and needs of the
consumers within the target market.

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What Is Marketing Research?
Marketing research is the process of designing,
gathering, analyzing, and reporting information that
may be used to solve a specific marketing problem.

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1-7
AMA Definition
Marketing research: the function that links the
consumer, customer, and public to the marketer
through information: information used to identify
and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve the
understanding of marketing as a process

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1-8
Marketing or Market Research?
 Marketing research: a process used by businesses
to collect, analyze, and interpret information used
to make sound business decisions and successfully
manage the business
 Market research: a process used to define the
size, location, and/or makeup of the market for a
product or service

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Marketing Research Function
 Link the consumer to the marketer by providing
information that can be used in making marketing
decisions

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Uses of Marketing Research
 Identify marketing opportunities and problems
 Generate, refine, and evaluate potential marketing
actions
 Monitor marketing performance
 Improve marketing as a process

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Identifying Market Opportunities
and Problems
Some marketing research studies are designed to
find out what consumers’ problems are and to assess
the suitability of different proposed methods of
resolving those problems.

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Generate, Refine, and Evaluate
Potential Marketing Actions
 Selecting target markets
 Product research
 Pricing research
 Promotion research
 Distribution research

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Monitor Marketing Performance
 Tracking data collected at point-of-sale terminals
as consumer packages goods are scanned in
grocery stores, mass merchandisers, and
convenience stores
 Tracking social media

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Improve Marketing as a Process
 Basic research is conducted to expand our
knowledge rather than to solve a specific problem.
 Applied research is conducted to solve specific
problems.

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Can We Determine If
Something Is Wrong?
Most marketing research studies are trying to
understand and predict consumer behavior, which is
a difficult task.

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The Marketing Information System
A MIS is a structure consisting of people,
equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate
information to marketing decision makers.

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Components of an MIS
 Internal Reports System
 Marketing Intelligence System
 Marketing Decision Support System (DSS)
 Marketing Research System

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Figure 1.1
The Marketing Information System

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Marketing Research System
 It gathers information not gathered by the other
MIS component subsystems
 Marketing research projects are not continuous;
rather, they have a beginning and an end

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1-20
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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1-21
The Marketing Research Industry

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Learning Objectives
 To learn a brief history of the marketing research
industry
 To learn the different types of marketing research
firms and the industry structure
 To be aware of criticisms of the industry and the
industry’s focus on self-improvement

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Learning Objectives
 To appreciate the areas of ethical sensitivity in the
marketing research process and to examine the
ethical codes and standards developed by
professional associations serving the marketing
research industry
 To learn about careers in the marketing research
industry

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Earliest Known Studies
 Charles Coolidge Parlin is known as the “father of
marketing research.”
 Parlin conducted the first continuous marketing
research in the early 1900s for the Curtis
Publishing Company.
 The purpose of Parlin’s research was to increase
advertising for The Saturday Evening Post
magazine.

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20th Century Led to a
“Mature Industry”
 The Industrial Revolution led to manufacturers
producing goods for distant markets.
 Manufacturers needed to know about faraway
consumers.
 This led to the growing need for marketing
research.

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Who Conducts Marketing
Research?
 Internal suppliers: organizations that supply
their own marketing research information
 Client-side research: conducted by internal
suppliers
 DYI research: facilitated by Internet access to
secondary data and better knowledge of data
analysis software such as SPSS

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Who Conducts Marketing
Research?
 External suppliers: outside firms hired to fulfill a
company’s marketing research needs
 Agency: firm specializing in marketing research
and offer their services to buyers needing
information to make more informed decisions

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Industry Structure
 Firm Size by Employees

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Industry Structure
 Firm size by revenue

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Industry Structure
 Types of firms and their specialties
 Full-service supplier firms: have the capability
to conduct the entire marketing research project
for buyer firms
 Limited-service supplier firms: specialize in
one or, at most, a few marketing research
activities

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Industry Performance:
Industry Revenues and Profits
 ESOMAR estimates worldwide revenues for the
marketing research industry at $31.2 billion.
 Revenues vary around the world.

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Industry Performance:
Industry Revenues and Profits

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Industry Performance:
Qualitative Evaluation
 Questions about what constitutes marketing
research
 New methods to collect and analyze consumer
information (primarily from social media) and
challenges traditional marketing research
information-gathering techniques

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Industry Performance:
Qualitative Evaluation
 Mistreatment of respondents
 Too many requests for research, overly long
surveys, and breaches of promised anonymity
have led to a decrease in the number of
respondents willing to take part in research.

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Industry Performance:
Qualitative Evaluation
 Marketing research is too focused on techniques
 Clients may steer clear of companies that
promote their standardized technique,
preferring to work with firms over a longer time
to develop an understanding of their business.

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Industry Performance:
Qualitative Evaluation
 Marketing research viewed as a commodity
 Too many executives view marketing research as
providing a commodity to be outsourced to
“research brokers,” who are hired to conduct a
component of the research process when they
should be involved in the entire process.

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Industry Initiatives
 Best practices
 Maintaining public credibility of research
 Monitoring industry trends
 Improving ethical conduct
 Certification of qualified research professionals
 Continuing education

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All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc.


2-20
The Marketing Research Process and
Defining the Problem and Research Objectives

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Learning Objectives
 To gain insights into marketing research by
learning the steps in the marketing research
process
 To understand when marketing research is not
needed
 To understand the difference between the problem
and the research objective

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Learning Objectives
 To know the importance of properly defining the
problem
 To appreciate a process for defining the problem as
decision alternatives
 To know the criteria all research objectives should
have and to know the sources of problems, the role
of symptoms, and the role of the researcher

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Learning Objectives
 To understand that marketing research is needed
when managers are uncertain of their assumptions
needed to specify consequences of decision
alternatives
 To know what an action standard is and why it is
needed
 To learn the components of the marketing
research proposal and ethical issues related to the
research proposal

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The Marketing Research Process

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Caveats to a Step-by-Step Process
 Not always presented as an 11-step process.
 Not all studies use all 11 steps.
 You may be able to solve the problem with
secondary data (a visit to the library or Google™).
 Few studies follow the steps in order.

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Step 1: Establish the Need for
Marketing Research
 Is there a real need for marketing research?
 Research takes time and costs money.
 Value of information versus cost of information?

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Step 1: Establish the Need for
Marketing Research
 Is there a real need for marketing research?
 Marketing research is not always needed.
 We often have the information.

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Step 1: Establish the Need for
Marketing Research
 When is marketing research not needed?
 The information is already available.
 The timing is wrong to conduct marketing
research.
 Funds are not available for marketing research.
 Costs outweigh the value of marketing research.

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Step 2: Define the Problem –
Stating the Decision Alternatives
 This is the most important of the 11 steps
(assuming we’ve decided to do marketing
research!).
 If the problem is incorrectly defined, all else is
wasted effort.

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Step 2: Define the Problem
 The need to make a decision requires decision
alternatives. If there are no alternatives, no
decision is necessary.

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Step 3: Establish Objectives
 Research objectives, when achieved, provide the
information necessary to solve the problem
identified in step 2.
 Research objectives state what the researchers
must do.

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Step 4: Determine Research Design
 Descriptive research: a set of methods and
procedures describing marketing variables
 Diagnostic research: designed to determine
sources of satisfaction and dissatisfaction
 Prescriptive research: provides information that
allows the manager to best remedy the
dissatisfaction

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Step 4: Determine Research Design
 Exploratory research: collecting information in
an unstructured and informal manner
 Descriptive research: research that describes the
phenomena of interest
 Causal studies: attempt to uncover what factor or
factors cause some event

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Step 5: Identify Information
Types and Sources
 Primary information: information collected
specifically for the problem at hand
 Secondary information: information already
collected

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Step 6: Determine Methods of
Accessing Data
 Secondary data is relatively easy to access; primary
data is more complex.
 The most popular form of accessing data is online
surveys. Traditional modes of data collection, such
as telephone, mail, and face-to-face intercepts, still
have a place in marketing research.

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Step 6: Determine Methods of
Accessing Data
 Four main choices for primary data:
 Have a person ask questions
 Use computer-assisted or direct questioning
 Allow respondents to answer questions
themselves without computer assistance
 Use some combination of two or more of the
previous methods

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Step 7: Design Data
Collection Forms
 The questionnaire must be worded objectively,
clearly, and without bias in order to communicate
with respondents.
 If we observe respondents, the form is called an
observation form.

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Step 7: Design Data
Collection Forms
 Software programs are available to assist
marketing researchers in preparing forms.

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Step 8: Determine Sample
Plan and Size
 The sample plan describes how each sample
element, or unit, is to be drawn from the total
population. Gives you representativeness!
 Sample size refers to determining how many
elements of the population should be included in
the sample. Gives you accuracy!

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Step 9: Collect Data
 Nonsampling errors in data collection will occur,
so researchers must know the sources of these
errors and implement controls to minimize them.
 Researchers aim to minimize this possibility by
undertaking a control referred to as validation.
 Companies that specialize in data collection are
referred to as field service firms.

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Step 10: Analyze Data
 Data analysis involves entering data into
computer files, inspecting data for errors, and
running tabulations and various statistical tests.

SPSS®

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Step 11: Prepare and Present the
Final Research Report
 Reporting, the last step, is one of the most
important phases of marketing research.
 Its importance cannot be overstated because it is
the report, or its presentation, that properly
communicates the results to the client.

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Defining the Problem
 Problems are situations calling for managers to
make choices among decision alternatives.

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The Research Objective
 Research objectives are specific and tell the
researcher exactly what information must be
collected to solve the problem by facilitating
selection of an alternative.

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The Research Objective
 Specify from whom information is to be gathered
 Specify what information is needed
 Specify the unit of measurement used to gather
information
 Word questions used to gather information using
the respondents’ frame of reference

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The Importance of Properly
Defining the Problem
 When you define a problem incorrectly, there is
nothing you can do in the research process to
overcome this error. This makes defining the
problem and research objectives the most
important step in the marketing research process.

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Sources of Problems
 Failure to meet an objective
 Opportunity
 Marketing opportunity has been defined as an
area of buyer need or potential interest in which
a company can perform profitably.

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Recognizing the Problem
 Managers must be aware of opportunities. Unless
they have a system for monitoring opportunities,
sometimes referred to as opportunity
identification, they will not likely identify these
problems.

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Role of Symptoms in Problem
Recognition
 Symptoms are not the problem but are the
“signals” that alert us to the problem.
 Symptoms are changes in the level of some key
monitor that measures the achievement of an
objective.

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The Role of the Researcher in
Problem Definition
 Invitations to bid (ITBs) or requests for
proposals (RFPs) are often used in the marketing
research process.

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The Role of the Researcher in
Problem Definition
 A situation analysis is a form of exploratory
research undertaken to gather background
information and gather data pertinent to the
problem area that might be helpful in defining the
problem decision.

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Determine the Probable Cause(s)
of the Symptom
 It is crucial to determine all possible causes. If
only a partial list of causes is made, it is possible
that the real cause will be overlooked.
 When a probable cause of the symptom is
identified, this triggers a decision to be made by
management.

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Specify Decision Alternatives That
May Alleviate the Symptom
 Once the decision alternatives are determined, a
manager must try to determine the consequences
of choosing each alternative.

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Consequences of the Alternatives
 Consequences are the results of marketing decisions.
 Assumptions are assertions that certain conditions
exist or that certain reactions will take place if the
considered alternatives are implemented.
 Information state is the quantity and quality of
evidence a manager possesses for each of his or her
assumptions.
 Information gaps are discrepancies between the
current information level and the desired level of
information.
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Defining Research Objectives
 Research objectives state specifically what
information the researcher must produce so that
the manager can choose the correct decision
alternative to solve his or her problem.
 Hypotheses are statements that are taken as true
for the purposes of argument or investigation.

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Defining Research Objectives
 Criteria for writing research objectives:
 Specify from whom information is to be
gathered
 Specify what information (construct) is needed
 Specify the unit of measurement used to gather
the information
 Word questions used to gather information
using the respondents’ frame of reference

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What Construct Do We Wish to
Measure?
 A construct is an abstract idea inferred from
specific instances that are thought to be related.
 An operational definition defines a construct,
such as intention to buy or satisfaction, which
describes the operations to be carried out for the
construct to be measured empirically.

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Completing the Process
 The research objective specifies exactly what
information the researcher must collect to fill the
information gaps.
 Once this information is provided, the manager
should be able to choose among the decision
alternatives.
 But exactly how will that decision be made? What
must the information look like for a certain
alternative to be selected over others?

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Action Standards
 An action standard is a predesignation of some
quantity of a measured attribute or characteristic
that must be achieved for a research objective for a
predetermined action to take place.

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Elements of the Market Research
Proposal
 The marketing research proposal serves as the
basis of a contract as it documents what the
marketing researcher proposes to deliver to the
client for some consideration, typically a fee.

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Elements of the Market Research
Proposal
 Elements include the following:
 Statement of the problem
 The research objectives
 The research method
 Statement of deliverables
 Costs
 Timetable

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All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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Research Design

1
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Learning Objectives
 To understand what research design is and why it
is significant
 To appreciate areas of ethical sensitivity in
research design
 To learn how exploratory research design helps the
researcher gain a feel for the problem by providing
background information, suggesting hypotheses,
and prioritizing research objectives

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Learning Objectives
 To know the fundamental questions addressed by
descriptive research and the different types of
descriptive research
 To explain what is meant by causal research and to
describe types of experimental research designs
 To know the different types of test marketing and
how to select test-market cities

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4-4
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Research Design
 Research design is a set of advance decisions that
make up the master plan specifying the methods
and procedures for collecting and analyzing the
needed information.

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Why Is Research Design Important?
 Good research design is the “first rule of good
research.”
 Knowledge of the needed research design allows
advance planning so that the project may be
conducted in less time and typically at a cost
savings due to efficiencies gained in preplanning.

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Objectives of Research Design
 To gain background information and to develop
hypotheses
 To measure the state of a variable of interest
 To test hypotheses that specify the relationships
between two or more variables

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Research Design: A Caution
 In many cases, research is an iterative process.
 By conducting one research project, we learn that
we may need additional research, which may result
in using multiple research designs.

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Three Types of Research Designs
 Exploratory
 Descriptive
 Causal

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Exploratory Research
 Exploratory research is usually conducted at the
outset of research projects.
 It is usually conducted when the researcher does
not know much about the problems.

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Uses of Exploratory Research
 Gain background information
 Define terms
 Clarify problems and hypothesis
 Establish research priorities

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Exploratory Research Methods
 Secondary data analysis: the process of searching
for interpreting existing information relevant to the
research topic
 Experience surveys: refer to gathering information
from those to be knowledgeable on the issues relevant
to the research problem
 Key-informant technique: gathering information
from those thought to be knowledgeable on the
issues relevant to the problem
 Lead-user survey: used to acquire information
from lead users of a new technology
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Exploratory Research Methods
 Case analysis: a review of available information
about a former situation(s) that has some
similarities to the current research problem
 Focus groups: small groups brought together and
guided by a moderator through an unstructured,
spontaneous discussion for the purpose of gaining
information relevant to the research problem

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Descriptive Research
 Descriptive research is undertaken to describe
answers to questions of who, what, where, when,
and how.
 It is desirable when we wish to project a study’s
findings to a larger population, if the study’s
sample is representative.

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Descriptive Research Classifications
 Cross-sectional studies
 Longitudinal studies

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Descriptive Research Studies
 Cross-sectional studies measure units from a
sample of the population at only one point in time
(or “snapshot”).
 Sample surveys are cross-sectional studies
whose samples are drawn in such a way as to be
representative of a specific population.
 These studies are usually presented with a
margin of error.

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Descriptive Research Studies
 Longitudinal studies repeatedly measure the
same sample units of a population over time.
 Since they involve multiple measurements over
time, they are often described as “movies” of the
population.

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Descriptive Research Studies
 Continuous panels ask panel members the same
questions on each panel measurement.
 Discontinuous panels vary questions from one
panel measurement to the next.
 These are sometimes referred to as omnibus
panels (omnibus meaning “including or
covering many things or classes”).

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Discontinuous Panels
 Discontinuous panels are demographically
matched to some larger entity, implying
representativeness.
 Discontinuous panels represent sources of
information that may be quickly accessed for a
wide variety of purposes.

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Continuous Panels
 Brand-switching studies: studies examining how
many consumers switched brands
 Market-tracking studies: those that measure
some variable(s) of interest—such as market share
or unit sales—over time

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Causal Research
 Causality may be thought of as understanding a
phenomenon in terms of conditional statements
of the form “If x, then y.”
 Causal relationships are often determined by the
use of experiments.

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Experiments
 An experiment is defined as manipulating an
independent variable to see how it affects a
dependent variable while also controlling the
effects of additional extraneous variables.

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Independent Variable
 Independent variables are those variables that
the researcher has control over and wishes to
manipulate—the 4 P’s.
 Examples are level of ad expenditure, type of ad
appeal, display location, method of compensating
salespersons, price, and type of product.

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Dependent Variables
 Dependent variables are those variables that we
have little or no direct control over but a strong
interest in changing.

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Extraneous Variables
 Extraneous variables are those variables that
may have some effect on a dependent variable yet
are not independent variables.

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Experimental Design
 Experimental design is a procedure for devising
an experimental setting such that a change in a
dependent variable may be attributed solely to the
change in an independent variable.

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Example Store Experiment

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Symbols of Experimental Design
 O = measurement, or observation, of a
dependent variable
 X = manipulation, or change, of an independent
variable
 R = random assignment of subjects to
experimental and control groups
 E = experimental effect (change in the
dependent variable due to the independent
variable)
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Pretest and Posttest
 Pretest refers to the measurement of the
dependent variable taken prior to changing the
independent variable.
 Posttest refers to measuring the dependent
variable after changing the independent variable.

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Experimental Design
 A “true” experimental design: isolates the
effects of the independent variable on the
dependent variable while controlling for the effects
of any extraneous variables.
 Quasi-experimental design: ones that do not
properly control for the effects of extraneous
variables on our dependent variable.

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Experimental Design
 Before-after with control group design may be
achieved by randomly dividing subjects of the
experiment in two groups:
 The control group
 The experimental group

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Experimental Design
 Control group: control of extraneous variables
typically achieved by the use of a second group of
subjects
 Experimental group: the group that has been
exposed to a change in the independent variable

Copyright © 2014 Pearson Education, Inc. 4-34


How Valid Are Experiments?
 An experiment is valid if the following are true:
 The observed change in the dependent variable
is due to the independent variable.
 The results of the experiment apply to the “real
world” outside the experimental setting.

Copyright © 2014 Pearson Education, Inc. 4-35


How Valid are Experiments?
 Two forms of validity are used to assess the validity
of an experiment:
 Internal validity is concerned with the extent
to which the change in the dependent variable is
actually due to the change in the independent
variable.
 External validity refers to the extent that the
relationship observed between the independent
and dependent variables during the experiment
is generalizable to the “real world.”

Copyright © 2014 Pearson Education, Inc. 4-36


Types of Experiments
 Laboratory experiments are those in which the
independent variable is manipulated and
measures of the dependent variable are taken in a
contrived, artificial setting for the purpose of
controlling the many possible extraneous variables
that may affect the dependent variable.

Copyright © 2014 Pearson Education, Inc. 4-37


Types of Experiments
 Field experiments are those in which the
independent variables are manipulated and the
measurements of the dependent variable are made
on test units in their natural setting.

Copyright © 2014 Pearson Education, Inc. 4-38


Test Marketing
 Test marketing is the phrase commonly used to
indicate an experiment, study, or test that is
conducted in a field setting.
 Main uses of test markets:
 To test sales potential for a new product or
service
 To test variations in the marketing mix for a
product or service

Copyright © 2014 Pearson Education, Inc. 4-39


Types of Test Markets
 The standard test market is one in which the
firm tests the product or marketing-mix variables
through the company’s normal distribution
channels.
 Controlled test markets are conducted by
outside research firms that guarantee distribution
of the product through prespecified types and
numbers of distributors.

Copyright © 2014 Pearson Education, Inc. 4-40


Types of Test Markets
 Electronic test markets are those in which a
panel of consumers has agreed to carry
identification cards that each consumer presents
when buying goods and services.
 Simulated test markets (STMs) are those in
which a limited amount of data on consumer
response to a new product is fed into a model
containing certain assumptions regarding planned
marketing programs, which generates likely
product sales volume.

Copyright © 2014 Pearson Education, Inc. 4-41


Selecting Test-Market Cities
 Three main criteria:
 Representativeness
 Degree of isolation
 Ability to control distribution and promotion

Copyright © 2014 Pearson Education, Inc. 4-42


Pros and Cons of Test Marketing
 Advantages:
 Test marketing allows for the most accurate
method of forecasting future sales, and it allows
firms the opportunity to pretest marketing-mix
variables.

Copyright © 2014 Pearson Education, Inc. 4-43


Pros and Cons of Test Marketing
 Disadvantages:
 Test markets do not yield infallible results.
 Competitors may intentionally try to sabotage
test markets.
 Test markets bring about exposure of the
product to the competition.
 Test markets may create ethical problems.

Copyright © 2014 Pearson Education, Inc. 4-44


All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc. 4-45


Secondary Data and Packaged Information

Copyright © 2014 Pearson Education, Inc. 1


Learning Objectives
 To learn what secondary data are, how this
information is used, and how we may classify
different types of secondary data, including
internal and external databases
 To understand the advantages and disadvantages
of secondary data
 To learn how to evaluate secondary data

Copyright © 2014 Pearson Education, Inc. 5-2


Learning Objectives
 To learn how to use the U.S. Census Bureau’s new
American Community Survey
 To know what packaged information is and the
differences between syndicated data and packaged
services
 To understand the advantages and disadvantages
of packaged information
 To see some of the various areas in which packaged
information may be applied

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Copyright © 2014 Pearson Education, Inc. 5-4
Primary Versus Secondary Data
 Primary data: information that is developed or
gathered by the researcher specifically for the
research project at hand
 Secondary data: information that has previously
been gathered by someone other than the
researcher and/or for some other purpose than the
research project at hand

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Uses of Secondary Data
 Secondary data has many uses in marketing
research, and sometimes the entire research
project may depend on the use of secondary data.
 Applications include economic-trend forecasting,
corporate intelligence, international data, public
opinion, and historical data.

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An Example of Secondary Data

FIGURE 5.1
Census Data May Be Used to Assess Changes in Age Distributions for a Market

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Classification of Secondary Data
 Internal secondary data are data that have been
collected within the firm, such as sales records,
purchase requisitions, and invoices.
 Internal secondary data is used for database
marketing. Database marketing is the process of
building and maintaining customer (internal)
databases and other (internal) databases for the
purpose of contacting, transacting, and building
relationships. Examples: CRM and data mining.

Copyright © 2014 Pearson Education, Inc. 5-8


Internal Databases
 Internal databases consist of information
gathered by a company, typically during the
normal course of business transactions.
 Companies use their internal databases for
purposes of direct marketing and to strengthen
relationships with customers, which is referred to
as customer relationship management (CRM).

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Internal Databases
 A database refers to a collection of data and
information describing items of interest.
 Vehicle Registration Database
 A record is a unit of information in a database.
 SS# XXXYYZZZZ
 Fields: subcomponents of information composing
records.
 Brand
 Color
 Year
 Model

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Internal Databases
 Data mining is the name for software that helps
managers make sense out of seemingly senseless
masses of information contained in databases.
 Micromarketing refers to using a differentiated
marketing mix for specific customer segments,
sometimes fine-tuned for the individual shopper.

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Ways Companies Use Databases
 To identify prospects
 To decide which customers should receive a
particular offer
 To deepen customer loyalty
 To reactivate customer purchases
 To avoid serious customer mistakes

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External Secondary Data
 External databases are databases supplied by
organizations outside the firm:
 Published
 Syndicated services data
 Databases

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External Secondary Data
 Published sources: sources of information
prepared for public distribution and normally
found in libraries or a variety of other entities,
such as trade organizations.

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External Secondary Data
 Syndicated services data: provided by firms that
collect data in a standard format and make them
available to subscribing firms—highly specialized
and not available in libraries.

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External Secondary Data
 External databases: databases supplied by
organizations outside the firm, such as online
information databases (e.g., IBISWorld, FACTIVA,
Ebsco, and ProQuest).

Copyright © 2014 Pearson Education, Inc. 5-16


Advantages of Secondary Data
 Are obtained quickly
 Are inexpensive
 Are readily available
 Enhance existing primary data
 May achieve research objective

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Disadvantages of Secondary Data
 Reporting units may be incompatible
 Measurement units do not match
 Class definitions are not usable
 May be outdated
 May not be credible

Copyright © 2014 Pearson Education, Inc. 5-18


Evaluating Secondary Data
 What was the purpose of the study?
 Who collected the information?
 What information was collected?
 How was the information attained?
 How consistent is the information with other
information?

Copyright © 2014 Pearson Education, Inc. 5-19


Key Sources of Secondary
Sources for Marketers
 Census of the Population
 Conducted every 10 years
 Economic Census
 Conducted every five years
 Go to http://2010.census.gov

Copyright © 2014 Pearson Education, Inc. 5-20


American Community Survey (ACS)
 ACS will do the following:
 Survey 3 million Americans every year
 Provide updated information on key
demographics
 Provide forecasts for future years

Copyright © 2014 Pearson Education, Inc. 5-21


Copyright © 2014 Pearson Education, Inc. 5-22
How to Use the ACS
 American Factfinder is the tool used for
searching data collected by the ACS.
 To begin, go to www.census.gov/acs.

Copyright © 2014 Pearson Education, Inc. 5-23


Example ACS Search
FIGURE 5.2
Searching Topics
Allows You to
Select the Type of
Information You Seek

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What Is Packaged Information?
 Packaged information is a type of secondary
data in which the data collected and/or the process
of collecting the data are prepackaged for all users.
 There are two broad classes of packaged
information:
 Syndicated data
 Packaged services

Copyright © 2014 Pearson Education, Inc. 5-25


Packaged Information
 Syndicated data are collected in a standard
format and made available to all subscribers. For
example, Marketing Evaluations, Inc., offers
several Q Scores® services.

Copyright © 2014 Pearson Education, Inc. 5-26


Packaged Information
 The term packaged services refers to a
prepackaged marketing research process that is
used to generate information for a particular user.
 Unlike syndicated data, the data from a packaged
service will differ for each client.

Copyright © 2014 Pearson Education, Inc. 5-27


Packaged Information
 Esri’s Tapestry™ Segmentation uses a ready-made,
prepackaged process to profile residential
neighborhoods.
 This information is purchased by clients with the
aim of better understanding who their customers
are, where they are located, how to find them, and
how to reach them.

Copyright © 2014 Pearson Education, Inc. 5-28


Advantages of Syndicated Data
 Shared costs
 Quality of the data collected typically very high
 Speed

Copyright © 2014 Pearson Education, Inc. 5-29


Disadvantages of Syndicated Data
 Buyers have little control over what information is
collected.
 Firms often must commit to long-term contracts
when buying syndicated data.
 No strategic information advantage exists in
purchasing syndicated data.

Copyright © 2014 Pearson Education, Inc. 5-30


Advantages of Packaged Services
 The experience of the research firm offering the
service
 Reduced cost of the research
 Speed of the research service

Copyright © 2014 Pearson Education, Inc. 5-31


Disadvantages of Packaged
Services
 Aspects of a project cannot be customized.
 The company providing the packaged service may
not know the idiosyncrasies of a particular
industry.

Copyright © 2014 Pearson Education, Inc. 5-32


Marketing Applications of
Packaged Information
 Measuring consumer attitudes and opinions
 Market segmentation
 Monitoring media usage and promotion
effectiveness
 Monitoring consumer buzz or consumer-
generated media (CGM)
 Monitoring and effectiveness of print media

Copyright © 2014 Pearson Education, Inc. 5-33


Measuring Print Media

Copyright © 2014 Pearson Education, Inc. 5-34


Marketing Applications of
Packaged Information
 Market tracking studies
 Nielsen tracking studies are longitudinal studies
that monitor a variable, such as sales or market
share, over time.

Copyright © 2014 Pearson Education, Inc. 5-35


All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc. 5-36


Qualitative Research Techniques

Copyright © 2014 Pearson Education, Inc. 1


Learning Objectives
 To understand basic difference between
quantitative and qualitative research techniques
 To learn the pros and cons of using observation as
a means of gathering data
 To discover what focus groups are and how they
are conducted and analyzed

Copyright © 2014 Pearson Education, Inc. 6-2


Learning Objectives
 To become acquainted with online focus groups
and their advantages
 To become familiar with other qualitative methods
used by marketing researchers

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Copyright © 2014 Pearson Education, Inc. 6-4
Categories of Research
 Quantitative research: research involving the use
of structured questions in which response options
have been predetermined and a large number of
respondents involved

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Categories of Research
 Qualitative research: research involving
collecting, analyzing, and interpreting data by
observing what people do and say

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Categories of Research
 Pluralistic research: combination of both
quantitative and qualitative research methods in
order to gain the advantages of both

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Observation Techniques
 Observation methods: techniques in which the
researcher relies on his or her powers of
observation rather than communicating with a
person in order to obtain information

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Observation Techniques
 Types of observation:
 Direct versus indirect
 Overt versus covert
 Structured versus unstructured
 In situ versus invented

Copyright © 2014 Pearson Education, Inc. 6-9


Observation Techniques
 Direct observation: observing behavior as it
occurs
 Indirect observation: observing the effects or
results of the behavior rather than the behavior
itself
 Archives: secondary sources, such as historical
records, that can be applied to the present
problem
 Physical traces: tangible evidence of some past
event

Copyright © 2014 Pearson Education, Inc. 6-10


Observation Techniques
 Covert observation: subject is unaware that he or
she is being observed, such as mystery shopping.
 Overt observation: respondent is aware that he or
she is being observed, such as Arbitron’s PPM,
which monitors the media to which a consumer is
exposed.

Copyright © 2014 Pearson Education, Inc. 6-11


Observation Techniques
 Structured—researcher identifies beforehand
which behaviors are to be observed and recorded
(often there is a checklist).
 Unstructured—all behavior is observed, and the
observer determines what is to be recorded.

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Observation Techniques
 In situ observation: the researcher observes the
behavior exactly as it happens.
 Invented observation: the researcher creates the
situation.

Copyright © 2014 Pearson Education, Inc. 6-13


Observation Techniques
 Appropriate conditions for use of observation:
 Short time interval—event must begin and end
in a reasonably short time. You cannot
“observe” a process of purchasing that lasts
months.
 Public behavior—cannot observe private
behaviors.
 Faulty recall conditions—behaviors are so
“automatic” that consumer cannot recall them.

Copyright © 2014 Pearson Education, Inc. 6-14


Observation Techniques
 Advantages of observational data
 Insight into actual, not reported, behaviors
 No chance for recall error
 Better accuracy
 Less cost

Copyright © 2014 Pearson Education, Inc. 6-15


Observation Techniques
 Limitations of observational data
 Small number of subjects
 Subjective interpretations
 Inability to pry beneath the behavior observed
 Motivations, attitudes, and other internal
conditions are unobserved

Copyright © 2014 Pearson Education, Inc. 6-16


Focus Groups
 Focus groups are small groups of people brought
together and guided by a moderator through an
unstructured, spontaneous discussion for the
purpose of gaining information relevant to the
research problem.

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Types of Focus Groups
 Traditional: Select 6 to 12 persons and meet in a
dedicated room with one-way mirror for client
viewing, for about two hours.

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Types of Focus Groups
 Contemporary: Online and the client can observe
the online activity from remote locations; may
have 25 or even 50 respondents; allow client
interaction; may take place in nontraditional
locations.

Copyright © 2014 Pearson Education, Inc. 6-19


How a Focus Group Works
 Moderator: responsible for creating the correct
atmosphere in the group and guiding discussion
 Focus group report: summarizes the information
provided by the focus group participants relative to
the research questions

Copyright © 2014 Pearson Education, Inc. 6-20


Newer Focus Groups
 Online focus group: a form of contemporary
focus groups, one in which the respondents and/or
clients communicate and/or observe by use of the
Internet

Copyright © 2014 Pearson Education, Inc. 6-21


Online Focus Groups
 Advantages:
 No physical setup is necessary.
 Transcripts are captured on file in real time.
 Participants can be in widely separated
geographical areas.
 Participants are comfortable in their home or
office environments.
 The moderator can exchange private messages
with individual participants.
Copyright © 2014 Pearson Education, Inc. 6-22
Online Focus Groups
 Disadvantages:
 Observation of participants’ body language is
not possible.
 Participants cannot physically inspect products
or taste food items.
 Participants can lose interest or become
distracted.

Copyright © 2014 Pearson Education, Inc. 6-23


Advantages of Focus Groups
 Generate fresh ideas
 Allow clients to observe their participants
 May be directed at understanding a wide variety of
issues
 Allow fairly easy access to special respondent
groups

Copyright © 2014 Pearson Education, Inc. 6-24


Disadvantages of Focus Groups
 Representativeness of participants
 Dependence on the moderator
 Interpretation sometimes difficult

Copyright © 2014 Pearson Education, Inc. 6-25


When Should Focus Groups Be
Used?
 Focus groups should be used when the research
objective is to describe rather than predict.
 How do consumers describe a better package?
 How would they describe their satisfaction with
our service?
 How could they describe their ideas for an ad
campaign?

Copyright © 2014 Pearson Education, Inc. 6-26


When Should Focus Groups Not Be
Used?
 Focus groups should not be used when the
research questions require a prediction or when a
major decision affecting the company’s livelihood
rests on the research results.

Copyright © 2014 Pearson Education, Inc. 6-27


Some Objectives of Focus Groups
 To generate ideas
 To understand consumer vocabulary
 To reveal consumer goods, motives, perceptions,
and attitudes about products or services
 To understand findings from quantitative studies

Copyright © 2014 Pearson Education, Inc. 6-28


Operational Aspects of Traditional
Focus Groups
 How many people should be in a focus group?
 Who should be in the focus group?
 How should focus group participants be recruited
and selected?

Copyright © 2014 Pearson Education, Inc. 6-29


Operational Aspects of Traditional
Focus Groups
 Where should a focus group meet?
 When should the moderator become involved in
the research project?
 How are focus group results reported and used?
 What other benefits do focus groups offer?

Copyright © 2014 Pearson Education, Inc. 6-30


Other Qualitative Techniques
 In-depth interview (IDI) is a set of probing
questions posed one-on-one to a subject by a
trained interviewer so as to gain an idea of what
the subject thinks about something or why he or
she behaves a certain way.
 Laddering attempts to discover how product
attributes are associated with consumer values.

Copyright © 2014 Pearson Education, Inc. 6-31


Other Qualitative Techniques
 Protocol analysis involves placing a person in a
decision-making situation and asking him or her
to verbalize everything he or she considers when
making a decision.

Copyright © 2014 Pearson Education, Inc. 6-32


Other Qualitative Techniques
 Projective techniques involve situations in which
participants are placed in (projected into)
simulated activities in the hopes that they will
divulge things about themselves that they might
not reveal under direct questioning

Copyright © 2014 Pearson Education, Inc. 6-33


Common Projective Techniques
 Word association test: involves reading words to
a respondent who then answers with the first word
that comes to his or her mind
 Sentence completion: respondents are given
incomplete sentences and asked to complete them
in their own words

Copyright © 2014 Pearson Education, Inc. 6-34


Physiological Measurements
 Physiological measurements: involves
monitoring a respondent’s involuntary responses
to marketing stimuli via the use of electrodes and
other equipment
 Pupilometer—determines interest by
measuring amount of dilation of the pupil of the
eye
 Galvanometer—determines level of
excitement by measuring electrical activity on
the respondent’s skin

Copyright © 2014 Pearson Education, Inc. 6-35


All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc. 6-36


Evaluating Survey Data Collection Methods

Copyright © 2014 Pearson Education, Inc. 1


Learning Objectives
 To learn the four basic alternative modes for
gathering survey data
 To understand the advantages and disadvantages
of each of the various data collection modes
 To comprehend the factors researchers consider
when choosing a particular survey method

Copyright © 2014 Pearson Education, Inc. 7-2


Learning Objectives
 To become knowledgeable about the details of
different types of survey data collection methods,
such as personal interviews, telephone interviews,
and computer-administered interviews, including
online surveys

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Copyright © 2014 Pearson Education, Inc. 7-4
Contemporary Survey

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Surveys
 A survey involves interviews with a large number
of respondents using a predesigned questionnaire.

Copyright © 2014 Pearson Education, Inc. 7-6


Surveys
 Four basic survey methods:
 Person-administered surveys
 Computer-assisted surveys
 Self-administered surveys
 Mixed-mode (hybrid) surveys

Copyright © 2014 Pearson Education, Inc. 7-7


Advantages of Surveys
 Standardization
 Ease of administration
 Ability to tap the “unseen”
 Suitability to tabulation and statistical analysis
 Sensitivity to subgroup differences

Copyright © 2014 Pearson Education, Inc. 7-8


Copyright © 2014 Pearson Education, Inc. 7-9
Four Alternative
Data Collection Modes
 Person administered: an interviewer reads
questions, either face-to-face or over the
telephone, to the respondent and records his or
her answers.
 Computer administered: the interviewer
basically verbalizes the questions while relying to
some degree on computer technology to facilitate
the interview work.

Copyright © 2014 Pearson Education, Inc. 7-10


Four Alternative
Data Collection Modes
 Self-administered: the respondent completes the
survey on his or her own.
 Mixed mode: a combination of two or more
methods

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Copyright © 2014 Pearson Education, Inc. 7-12
Person-Administered Surveys
(Without Computer Assistance)
 A person-administered survey is one in which
an interviewer reads questions, either face-to-face
or over the telephone, to the respondent and
records his or her answers.

Copyright © 2014 Pearson Education, Inc. 7-13


Person-Administered Surveys
(Without Computer Assistance)
 Advantages:
 Feedback
 Rapport
 Quality control
 Adaptability

Copyright © 2014 Pearson Education, Inc. 7-14


Person-Administered Surveys
(Without Computer Assistance)
 Disadvantages:
 Humans make errors
 Slow speed
 High cost

Copyright © 2014 Pearson Education, Inc. 7-15


Person-Administered Surveys
(Without Computer Assistance)
 Disadvantages:
 Interview evaluation: apprehensive they are
answering the question “correctly.” Feel they are
being “evaluated.” Especially a problem with
sensitive topics such as hygiene, finances,
political opinions, etc.

Copyright © 2014 Pearson Education, Inc. 7-16


Computer-Administered Surveys
 Advantages:
 Breadth of user-friendly features
 Relatively inexpensive
 Reduction of interview evaluation concern in
respondents

Copyright © 2014 Pearson Education, Inc. 7-17


Computer-Administered Surveys
 Disadvantages:
 Requires computer-literate and Internet-
connected respondents

Copyright © 2014 Pearson Education, Inc. 7-18


Self-Administered Surveys
 A self-administered survey is one in which the
respondent completes the survey on his or her
own.
 Traditional “paper and pencil” survey

Copyright © 2014 Pearson Education, Inc. 7-19


Self-Administered Surveys
 Advantages:
 Reduced cost
 Respondents control pace at which they answer
 No interview-evaluation apprehension

Copyright © 2014 Pearson Education, Inc. 7-20


Self-Administered Surveys
 Disadvantages:
 Respondent controls the survey—does not send
in on time or does not send in.
 Lack of monitoring—no one to explain or
encourage respondents.
 High questionnaire requirements—it must be
perfect.

Copyright © 2014 Pearson Education, Inc. 7-21


Mixed-Mode (Hybrid) Surveys
 Mixed-mode surveys use multiple data collection
methods.
 It has become increasingly popular to use mixed-
mode surveys in recent years.

Copyright © 2014 Pearson Education, Inc. 7-22


Mixed-Mode (Hybrid) Surveys
 Advantages:
 Multiple advantages to achieve data collection
goal
 Example: May use online surveys to quickly
reach portion of population with Internet access
and may use telephone calling to reach those
without Internet access.

Copyright © 2014 Pearson Education, Inc. 7-23


Mixed-Mode (Hybrid) Surveys
 Disadvantages:
 Mode affects response?
 Additional complexity

Copyright © 2014 Pearson Education, Inc. 7-24


Copyright © 2014 Pearson Education, Inc. 7-25
In-Home Surveys
 An in-home survey is conducted by an
interviewer in the home of the respondent.

Copyright © 2014 Pearson Education, Inc. 7-26


Person-Administered Surveys
In-Home Interview
 Key advantages:
 Conducted in the privacy of the home, which
facilitates interviewer–respondent rapport

Copyright © 2014 Pearson Education, Inc. 7-27


Person-Administered Surveys
(Without Computer Assistance)
 Primary administration method for many years
until development of communications systems
and advancement in computer technology

Copyright © 2014 Pearson Education, Inc. 7-28


Mall-Intercept Surveys
 The mall-intercept survey is one in which the
respondent is encountered and questioned while
he or she is visiting a shopping mall.

Copyright © 2014 Pearson Education, Inc. 7-29


Mall-Intercept Surveys
 Key advantages:
 Mall-intercept interviews are conducted in large
shopping malls, and they are less expensive per
interview than are in-home interviews.

Copyright © 2014 Pearson Education, Inc. 7-30


Mall-Intercept Surveys
 Key disadvantages:
 Only mall patrons are interviewed.
 Respondents may feel uncomfortable answering
the questions in the mall.

Copyright © 2014 Pearson Education, Inc. 7-31


In-Office Surveys
 In-office surveys take place in person while the
respondent is in his or her office or perhaps in a
company lounge area.

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7-32
In-Office Surveys
 Key advantage:
 Useful for interviewing busy executives

Copyright © 2014 Pearson Education, Inc. 7-33


In-Office Surveys
 Key disadvantages:
 Relatively high cost per interview
 Gaining access is sometimes difficult

Copyright © 2014 Pearson Education, Inc. 7-34


Central Location Telephone
Surveying
 Involves a field data collection company installing
several telephone lines at one location from which
interviewers make calls.

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Central Location Telephone
Surveying
 Key advantages:
 Fast turnaround
 Good quality control
 Reasonable cost

Copyright © 2014 Pearson Education, Inc. 7-36


Central Location Telephone
Surveying
 Key disadvantage:
 Restricted to telephone communication

Copyright © 2014 Pearson Education, Inc. 7-37


CATI
 The most advanced telephone interview
companies have computerized the central location
telephone interviewing process with systems
called computer-assisted telephone interviews
(CATI).

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Computer-Administered Surveys
 Key advantages:
 Computer eliminates human interviewer error
 Simultaneous data input to computer file
 Good quality control

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Fully Automated Survey
 Some companies have developed fully automated
surveys in which the survey is administered by a
computer but not online.
 In the research industry, this approach is known as
completely automated telephone survey (CATS).

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Fully Computerized Survey (Not
Online)
 Key advantages:
 Respondent responds at his or her own pace
 Computer data file results

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Online Interviews
 The Internet-based questionnaire in which the
respondent answers questions online has become
the industry standard for surveys in virtually all
high-Internet-penetration countries.

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Fully Computerized Online Surveys
 Key advantages:
 Ease of creating and posting
 Fast turnaround
 Computer data file
 Results

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Fully Computerized Online Surveys
 Key disadvantage:
 Marketing researchers were quick to realize that
online surveys presented design challenges and
opportunities related to fostering cooperation in
potential respondents.

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Group Self-Administered Survey
 A group self-administered survey entails
administering a questionnaire to respondents in
groups rather than individually for convenience
and to gain economies of scale.

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Group Self-Administered Survey
 Key advantages:
 Cost of interviewer eliminated
 Economical for assembled groups of
respondents

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Group Self-Administered Survey
 Key disadvantage:
 Must find groups and secure permission to
conduct the survey

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Drop-Off Survey
 The drop-off survey is sometimes called “drop
and collect,” in which the survey representative
approaches a prospective respondent, introduces
the general purpose of the survey to the prospect,
and leaves it with the respondent to fill out on his
or her own.

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Drop-Off Survey
 Key advantages:
 Cost of interviewer eliminated
 Appropriate for local market surveys

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Drop-Off Survey
 Key disadvantage:
 Generally not appropriate for large-scale
national survey

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Mail Survey
 A mail survey is one in which the questions are
mailed to prospective respondents who are asked
to fill them out and return them to the researcher
by mail.

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Self-Administered Surveys
Mail Survey
 Key disadvantage:
 Nonresponse, which refers to questionnaires
that are not returned
 Self-selection bias, which means that those who
do respond are probably different from those
who do not fill out the questionnaire and return
it

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7-52
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Choice of Survey Method
 In selecting a data collection mode, the researcher
balances quality against the following:
 Time available for data collection
 Money available for data collection
 Type of respondent interaction required (such
as sampling a product, viewing an ad, etc.)

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Choice of Survey Method
 In selecting a data collection mode, the researcher
balances quality against the following:
 Incidence rate: screen by online or telephone
 Cultural/infrastructure considerations:
Scandinavian countries dislike strangers in
homes. Canada is more open. In India, <10%
have phones.

Copyright © 2014 Pearson Education, Inc. 7-55


All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc. 7-56


Understanding Measurement, Developing
Questions, and Designing the Questionnaire

1
Copyright © 2014 Pearson Education, Inc.
Learning Objectives
 To understand the basics of measurement
regarding people, places, and things
 To recognize the three types of measures used by
marketing researchers
 To examine three scale formats commonly used by
marketing researchers
 To see other scale formats commonly used in
marketing research

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Learning Objectives
 To appreciate the basic functions of a
questionnaire
 To learn the dos and don’ts of question wording
 To learn the basics of questionnaire organization
 To understand the advantages of computer-
assisted questionnaire design software
 To comprehend coding of questionnaires

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Basic Concepts in Measurement
 Measurement: determining how much of a
property is possessed by an object

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Basic Concepts in Measurement
 Properties: specific features or characteristics of
an object that can be used to distinguish it from
another object
 Objective properties are physically verifiable.
 Subjective properties are mental constructs.

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Measuring Objective Properties
 Objective properties are physically verifiable
characteristics such as age, gender, or number of
bottles purchased.

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Measuring Subjective Properties
 Subjective properties cannot be directly
observed because they are mental constructs such
as a person’s attitudes, opinions, or intentions.
 For subjective properties, researchers must
translate mental constructs onto an intensity
continuum.

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Basic Concepts in Measurement
 Scale development is designing questions and
response formats to measure the subjective
properties of an object.

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Types of Measures
 Nominal scales: those that use only labels
 Ordinal scales: those with which the researcher
can rank-order the respondents or responses
 Scale measures: those in which the distance
between each level is known
 Interval scales: those in which the distance
between each descriptor is equal
 Ratio scales: ones in which a true zero exists

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Interval Scales Commonly Used
in Marketing Research
 Likert scale
 Lifestyle inventory
 Semantic differential scale
 Stapel scale

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Likert Scale
 An interval scale commonly used by marketing
researchers is the Likert scale, in which
respondents are asked to indicate their degree of
agreement or disagreement on a symmetric agree–
disagree scale for each of a series of statements.

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Lifestyle Inventory
 A special application of the Likert scale question
form called the lifestyle inventory takes into
account the values and personality traits of people
as reflected in their unique activities, interests,
and opinions (AIOs) toward their work, leisure
time, and purchases.

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Semantic Differential
 A semantic differential scale contains a series of
bipolar adjectives for the various properties of the
object under study, and respondents indicate their
impressions of each property by indicating
locations along its continuum.
 A concern with this type of scale is the halo effect,
in which a general overall feeling about a brand or
store could bias responses on its specific
properties.

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Stapel Scale
 The Stapel scale relies on positive and negative
numbers, typically ranging from +5 to –5.

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Interval Scales Used in
Marketing Research
 Should the scale include a neutral point?
 Should the scale be symmetric or nonsymmetric?

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Interval Scales Used in
Marketing Research
 A symmetric interval scale is “balanced,” as it has
equal amounts of positive and negative positions,
and typically it has “no opinion” or “neutral”
separating the negative and positive sides.
 A nonsymmetric interval scale has mainly degrees
of positive positions and would be more
appropriate because most people do not think in
degrees of negative importance.

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Reliability and Validity of
Measurement
 Reliability: respondent responds in the same or a
similar manner to an identical or nearly identical
measure.
 Validity: accuracy of the measurement

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Designing A Questionnaire
 A questionnaire is the vehicle used to present the
questions the researcher desires respondents to
answer.

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A Questionnaire
 Translates the research objectives into specific questions
asked of respondents
 Standardizes those questions and the response categories
so every participant responds to identical stimuli
 Serves as an enduring record of the research
 Depending on the data collection mode used, such as
online, can speed up the process of data analysis
 Contains the information on which reliability and validity
assessments may be made

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Questionnaire Design Process
 Questionnaire design is a systematic process in
which the researcher contemplates various
question formats, considers a number of factors
characterizing the survey at hand, ultimately
words the various questions carefully, and
organizes the questionnaire’s layout.

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Questionnaire Design Process
 The researcher should strive to minimize
question bias.
 Question bias is the ability of a question’s wording
or format to influence respondents’ answers.

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Developing Questions
 Questionnaire development is the practice of
selecting appropriate response formats and wording
questions that are understandable, unambiguous, and
unbiased.
 Marketing researchers take great care in developing
research questions that measure the following:
 Attitudes
 Beliefs
 Behaviors
 Demographics

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Four “Dos” of Question Wording
 Question evaluation is scrutinizing the wording of
a question to ensure that question bias is
minimized and that the question is worded so that
respondents understand it and can respond to it
with relative ease.

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Four “Dos” of Question Wording
 The question should be focused on a single issue
or topic.
 The question should be brief.
 The question should be grammatically simple.
 The question should be crystal clear.

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Four “Dont’s” of Question Wording
 Do not “lead” the respondent to a particular
answer.
 A leading question gives a strong cue or
expectation as what answer to provide.
 Do not use “loaded” wording or phrasing.
 A loaded question has buried in its wording
elements a sneaky presupposition, or it might
make reference to universal beliefs or rules of
behavior.

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Four “Dont’s” of Question Wording
 Do not use a “double-barreled” question.
 A double-barreled question is really two
different questions posed in one question.
 Do not use words that overstate the case.
 An overstated question places undue emphasis
on some aspect of the topic.

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Questionnaire Organization
 Questionnaire organization pertains to the
sequence of statements and questions that make
up a questionnaire.
 Well-organized questionnaires motivate
respondents to be conscientious and complete.
 Poorly organized questionnaires discourage and
frustrate respondents and may even cause them
to stop answering questions in the middle of the
survey.

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The Introduction
 The introduction sets the stage; it is what a
potential respondent reads or hears before he or
she begins answering survey questions.
 With an undisguised survey, the sponsor is
identified, but with a disguised survey, the
sponsor’s name is not divulged to respondents.

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The Introduction
 Incentives are offers to do something for the
respondent to increase the probability that the
respondent will participate in the survey.
 Other forms of incentives address respondent
anxieties concerning privacy. Two methods tend to
reduce anxieties and, therefore, increase
participation.
 The first is ensuring anonymity.
 The second method is confidentiality.

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The Introduction
 Screening questions are used to ferret out
respondents who do not meet qualifications
necessary to take part in the research study.

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Question Flow
 Question flow pertains to the sequencing of
questions or blocks of questions, including any
instructions, on the questionnaire.
 Warm-up questions are simple and easy-to-answer
questions that are used to get the respondents’
interest and to demonstrate the ease of responding
to the research request.

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Question Flow
 Transitions are statements or questions used to let
the respondent know that changes in question
topic or format are about to happen.
 Response to a skipped question affects which
question will be answered next.
 Classification questions are used to classify
respondents.

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Copyright © 2014 Pearson Education, Inc. 8-40
Computer-Assisted Questionnaire
Design
 Computer-assisted questionnaire design refers to
software that allows users to use computer
technology to develop and disseminate
questionnaires and to retrieve and analyze data
gathered by the questionnaire.

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Skip and Display Logic
 Skip logic lets the questionnaire designer direct
the online survey to ask questions based on
previous answers.
 Display logic is similar to skip logic. The survey
displays or asks questions that are appropriate
based on the respondent’s prior answers.

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Coding The Questionnaire
 Codes are numbers associated with question
responses to facilitate data entry and analysis.
 The codes for an “all that apply” question are set
up as though each possible response was answered
with “yes” or “no.”

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Pretesting The Questionnaire
 A pretest is a dry run of a questionnaire to find
and repair difficulties that respondents encounter
while taking the survey.

Copyright © 2014 Pearson Education, Inc. 8-44


All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2014 Pearson Education, Inc. 8-45

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