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vi CONTENTS
Descriptive Research 84
Classification of Descriptive Research Studies 84
Causal Research 85
Experiments 86
Experimental Design 87
How Valid Are Experiments? 89
Types of Experiments 89
Test Marketing 90
Types of Test Markets 91
Selecting Test Market Cities 91
Pros and Cons of Test Marketing 92
Qualitative Research 92
Methods of Conducting Qualitative Research 93
Observation Techniques 93
Types of Observation 93
Direct Observation 94
Indirect Observation 95
Disguised Versus Undisguised 95
Focus Groups 95
How Focus Groups Work 95
Advantages of Focus Groups 96
Disadvantages of Focus Groups 96
When Should Focus Groups Be Used? 96
When Should Focus Groups Not Be Used? 96
Depth Interviews 96
Protocol Analysis 97
Projective Techniques 97
Word-Association Test 97
Sentence-Completion Test 98
Cartoon or Balloon Test 100
Role-Playing Activity 100
Ethnographic Research 101
Summary 101 • Key Terms 102 • Review Questions 103
• Application Questions 103
Chapter 10 Data Issues and Inputting Data into XL Data Analyst 224
Data Matrix, Coding Data, and the Data Code Book 226
Errors Encountered During Data Collection 226
Types of Nonresponse Errors 227
Refusals to Participate in the Survey 228
Break-Offs During the Interview 229
Refusals to Answer Specific Questions (Item Omission) 229
Preliminary Data Screening 230
What to Look for in Raw Data Inspection 230
Incomplete Response 230
Nonresponses to Specific Questions (Item Omissions) 230
Yea-Saying or Nay-Saying Patterns 230
Middle-of-the-Road Patterns 231
Other Data Quality Problems 232
How to Handle Data Quality Issues 232
What Is an “Acceptable Respondent”? 232
Introduction to Your XL Data Analyst 232
The Data Set and Data Code Book Are in the XL Data Analyst 233
Case Data Sets and Building Your Own XL Data Analyst Data Set 234
Special Operations and Procedures with XL Data Analyst Data Sets 235
Selecting Subsets of the Data for Analysis 235
Computing or Adding Variables 235
Summary 236 • Key Terms 236 • Review Questions 236
• Application Questions 237
Endnotes 366
Credits 383
Indexes 384
Preface
xv
xvi PREFACE
A Concise Presentation
We wanted to provide a book with the basics of marketing research. Adopters have told us they
want to teach the basics of marketing research in depth as opposed to covering a large amount
of material superficially. Many professors desire to teach a course with less text material,
allowing them to supplement the course with projects or to spend more time on the basics. Basic
Marketing Research: Using Microsoft® Excel Data Analysis is shorter in length but covers the
essential, basic components of marketing research. We made every effort to write a shorter book
without sacrificing knowledge on what we consider the “basics.”
New Examples
In every chapter we searched for new examples for opening vignettes that would wake the
students’ interest and understanding of marketing research. Several of these vignettes were sup-
plied from our professional contacts in the marketing research industry. Several of them reflect
current marketing research practice. In addition to these all-new chapter-opening vignettes, new
examples, many from marketing research industry sources, are integrated throughout the text.
Datasets
In addition to the Advanced Automobile Concepts dataset (AAConcepts.xlsm), we have a dataset on
retail store target marketing, Case 14.1, “Friendly Market Versus Circle K” (Friendlymarket.xlsm).
Chapter 10 describes how students can set up their own datasets, such as those obtained with a team
marketing research project, in the XL Data Analyst.
Teaching Aids
PowerPoint Presentations (0135078261)
A comprehensive set of PowerPoint slides that can be used by instructors for class presentations
or by students for lecture preview or review.
1
Please note that not all test questions will indicate an AACSB category.
PREFACE xix
It takes many people to create a book. First, we wish to acknowledge the expert assistance we
have received from the professional staff at Pearson Prentice Hall. First, we thank our editor,
Melissa Sabella. Meeta Pendharkar served as our Editorial Project Manager. Meeta, you could
not have been more helpful, thank you! Also, thank you to Elisabeth Scarpa our Editorial Assis-
tant and Becca Richter Groves, our Production Product Manager. We owe Becca a very special
thank you for her capable assistance. We have been with Prentice Hall now for over a decade and
we are forever grateful we found such a great partnership. The entire Prentice Hall staff is cour-
teous and professional. Thank you all for being so good at what you do!
In the 3rd Edition we again benefited from the capable experience of Heather Donofrio,
Ph.D. Heather has been involved in different aspects of helping with our textbook for several
years. Her highly qualified editorial assistance is reflected throughout this book. We also wish to
thank Ashley Roberts who cheerfully and professionally helped us with many tasks during the
preparation of this book.
We both enjoy keeping up with industry trends and practice through our extensive con-
tacts in the marketing research industry. The following professionals made contributions to
the 3rd Edition:
Baltimore Research—Ted Donnelly
Burke, Inc.—Ron Tatham
Decision Analyst—Jerry W. Thomas
ESRI—Brent Roderick & Lisa Horn
Experian Simmons—John Fetto
Inside Research—Jack Honomichl & Laurence Gold
Intercampo—Luis Pamblanco
Ipsos Forward Research—Richard Homans
Ipsos Public Affairs—Paul Abbate
Moore Research Services—Colleen Moore-Mezler
MRA—Kristen Darby
NewProductWorks, GfK Strategic Innovation—Marilyn Raymond and Penny Wamback
Ozgrid Business Applications—Raina Hawley
QRCA—Shannon Pfarr Thompson
Qualtrics, Inc.—Scott M. Smith
SDR Consulting—William D. Neal
Socratic Technologies—William H. MacElroy
Sports & Leisure Research Group—Jon Last
Survey Sampling International—Kees de Jong, Ilene Siegalovsky
Talking Business—Holly M. O’Neill
TNS Global/Retail & Shopper Practice—Herb Sorensen
United States Census Bureau
xxi
xxii ACKNOWLEDGMENTS
We’d like to thank the professors who took part in our focus groups and shared their ideas
for this text and XL Data Analyst:
Reviewers
Brian Buckler Avila University
Aslihan Cakmak Lehman College
Doug Grisaffe University of Texas at Austin
Steven Moff Pennsylvania College of Technology
Mike Petrochuk Walsh University
Emanuel Stein Queensborough Community College, CUNY
James Swartz California State Polytechnic University-Pomona
Diane Whitney University of Maryland-College Park
As always, we wish to thank our life partners who put up with our book writing exploits and,
no matter what, always smile. Thank you, Jeanne and Libbo, for your steadfast support of our pro-
fessional endeavors.
Al Burns
Louisiana State University
alburns@lsu.edu
Ron Bush
University of West Florida
rbush@uwf.edu
About the Authors
Alvin C. Burns is the Ourso Distinguished Chair of Marketing and Chairperson of Marketing in
the E.J. Ourso College of Business at Louisiana State University. He received his doctorate in
marketing from Indiana University and an MBA from the University of Tennessee. Professor
Burns has taught undergraduate and master’s level courses and doctoral seminars in marketing
research for over 35 years. During this time period, he has supervised a great many marketing re-
search projects conducted for business-to-consumer, business-to-business, and not-for-profit or-
ganizations. His articles have appeared in the Journal of Marketing Research, Journal of Business
Research, Journal of Advertising Research, and others. He is a Fellow in the Association for Busi-
ness Simulation and Experiential Learning. He resides in Baton Rouge, Louisiana, with his wife
Jeanne and Yellow Labrador Retriever, Shadeaux (it’s a Louisiana thing).
Ronald F. Bush is Distinguished University Professor of Marketing at the University of
West Florida. He received his B.S. and M.A. from the University of Alabama and his Ph.D. from
Arizona State University. With over 35 years of experience in marketing research, Professor Bush
has worked on research projects with firms ranging from small businesses to the world’s largest
multinationals. He has served as an expert witness in trials involving research methods, often
testifying on the appropriateness of research reports. His research has been published in leading
journals including the Journal of Marketing, Journal of Marketing Research, Journal of Advertis-
ing Research, Journal of Retailing, Journal of Business, among others. In 1993 he was named a
Fellow by the Society for Marketing Advances. He and his wife, Libbo, live on the Gulf of Mexico
where they can often be found playing “throw the stick” with their Scottish Terrier, Maggie.
1 An Introduction
to Marketing Research
W e wish to welcome you to the world of marketing research! Any time business managers
need to make decisions and they lack adequate information, they are likely to need mar-
keting research. In our opening vignette, Jon Last, CEO of Sports & Leisure Research, collects
marketing research information that is needed by magazine executives, advertisers, manufactur-
ers of sports equipment, and service providers such as the lodging and restaurant business to make
better decisions. In this chapter we introduce you to marketing research by (a) examining how
marketing research is a part of marketing, (b) exploring definitions, purposes, and uses of mar-
keting research, (c) learning how to classify marketing research studies, and (d) providing you
with an understanding of how marketing research fits into a firm’s marketing information system.
You will find in this book a successful statistical analysis software program that is easy to
use and interpret. The program runs off Microsoft’s Excel® spreadsheet program, so as long as
you have access to Excel® you will be able to use this. We have developed XL Data Analyst™ to
allow you to easily tap the power of Excel for purposes of marketing research analysis.
Because marketing
Now, we will show you why you conduct marketing research analyses by introducing you to research is part of
the field of marketing research. marketing, you cannot
fully appreciate
marketing research and
Marketing Research: Part of Marketing? the role it plays in the
marketing process
Before we discuss marketing research, we need to first discuss marketing. The reason is, marketing unless you know how it
fits into the marketing
research is part of marketing, and you cannot fully appreciate marketing research and the role it plays
process.
in the marketing process unless you know how it fits into the marketing process. What is marketing?
3
4 CHAPTER 1 • AN INTRODUCTION TO MARKETING RESEARCH
The American Marketing Association [AMA] has defined marketing as an organizational function
and a set of processes for creating, communicating and delivering value to customers and for man-
aging customer relationships in ways that benefit the organization and its stakeholders.1
This definition recognizes that marketing is an organizational function. The other basic
functions of business include production, finance, and human resources. It also recognizes that
marketing is a set of processes that creates something of value such as products and services,
communicates or promotes the value, and delivers or distributes the value (which includes the
notion of pricing) to consumers. This definition recognizes the domain of marketing, namely,
the four Ps (product or service; promotion, distribution (also known as “place”) and pricing).
This definition also recognizes that marketers need to manage customer relationships. This
means it is not wise for a marketer to think of a one-time transaction. “Making the sale” is not
the end of marketing if marketers want repeat buying and positive word-of-mouth promotion
of their products and services. In addition, the AMA definition points out that marketing is car-
ried out for the benefit of the organization and its stakeholders. A for-profit organization, for
example, must earn a respectable return on investment (ROI) in order to remain in business.
For many years marketing focused on providing the customer with value through a physi-
cal product that emerged at the end of the distribution channel. Marketing managers focused on
creating a physical product and then making efficient promotion, distribution, and pricing deci-
sions. Current thinking, proposed primarily by Vargo and Lusch,2 calls for a framework that goes
beyond a “manufacturing-tangible product” view of marketing (e.g., Ford creates value by
building cars). Rather, Vargo and Lusch argue that we should adopt a service-centered view of
marketing which (a) identifies core competencies, the fundamental knowledge and skills that
may represent a potential competitive advantage; (b) identifies potential customers who can ben-
efit from these core competencies; (c) cultivates relationships with these customers, allowing
them to help create values that meet their specific needs; and (d) allows one to gauge feedback
from the market, learn from the feedback, and improve the values offered to the public.
One implication of this new framework is that firms must be more than customer oriented
(making and selling what firms think customers want and need). Rather, firms must collaborate
with and learn from customers, adapting to their changing needs. A second implication is that
products are not viewed as separate from services. Isn’t Ford really marketing a service, a service
that happens to include a by-product called a car?3 This framework is referred to as the service-
dominant logic for marketing.
We do not wish to provide a discourse on how marketing thought is evolving. After all, we
are still trying to answer the question: Why do we need to know about marketing in order to better
Why do we need
to know about marketing understand marketing research? The answer is, in order to practice marketing, marketing decision
in order to better makers need information in order to make better decisions. And, in our opinion, current defini-
understand marketing tions and frameworks of marketing mean that information is more important, not less important,
research? The answer is, in today’s world. For example, the service-dominant logic for marketing implies that decision
in order to practice
makers need information to know what their real core competencies are; how to create meaningful
marketing, marketing
decision makers need relationships with customers; how to create, communicate, and deliver value to customers; how
information in order to to gather feedback to gauge customer acceptance; and how to determine the appropriate responses
make better decisions. to the feedback. Keeping these information needs in mind, think about the information needed by
Ford, as the company prepared to produce the Fusion hybrid to compete with the Prius and other
successful hybrids already on the market; or by the managers at Sony, as they decided to go head
to head with Apple with an online service to compete with iTunes®; or at Apple as they prepared
Current definitions and
frameworks to launch the iPhone and the iPad. Think about all the decisions managers made at General Mills
of marketing mean that when they launched their successful organic food line, Small Planet Foods, or how the managers
information is more at CBS’s highly watched television show, 60 Minutes, have continued to make good decisions
important, not less regarding their broadcasts year after year. The same applies to not-for-profits such as the American
important, in today’s
Red Cross, which earns donations and support by creating value in the sense that it provides
world.
donors with “piece of mind for helping others.” In order to make the decisions necessary for
MARKETING RESEARCH: PART OF MARKETING? 5
such actions, the decision makers in these organizations needed information. As you will learn,
Not all firms “hear the
marketing research provides information to decision makers. voice of the consumer.”
The phrase “hearing the voice of the consumer” has been popularized to mean that compa- They do not conceive of
nies have the information they need to effectively satisfy wants and needs in the marketplace. products or services that
While we just cited some successful firms, we recognize that not all firms hear this voice. They meet the needs and
do not conceive of products or services that meet the needs and wants of the market. They do not wants of the market.
provide value, and their sales come from short-term exchanges, not enduring customer relation-
ships. These companies produce the wrong products or services. They have the wrong price, poor
advertising, or poor distribution. Then they become part of the many firms that experience prod-
uct failure. The Irridium telephone needed 500,000 customers to break even yet attracted only
50,000 subscribers.4 General Motors’s first electric vehicle, the EV1, was a failure. McDonald’s
veggie burger, the MacLean, was taken off the market.
The GfK Strategic Innovation’s NewProductWorks® studies product failure in order to help
clients glean ideas for successful new innovations. For example, a firm introduced scrambled
frozen eggs in a push-up tube. The eggs came with cheese, bacon, or sausage and the idea was
to quickly heat it up and take it with you for a convenient, eat-on-the-go breakfast. You could
have eggs and bacon while driving to work! Although this sounded great in the board room,
IncrEdibles were taken off the market as buyers found the eggs often ended up in their lap as
they tried to push up another bite. There was inadequate information on how real consumers
would use the product. Out! International, Inc. came up with what sounded like a cute name for
a new bug spray: “Hey! There’s a Monster in My Room!” What information did the company How can a marketer
fail to pick up on? The name alone scared kids when Mommy told them there was “a monster in know and understand
how to deliver value to
the room!” The product failed. Marketing Research Application 1.1 illustrates other examples
the customer so well?
of product failures supplied to us from the marketing researchers at NewProductWorks®. The answer is, by
Of course, it is easy to play “Monday morning quarterback” and keep in mind that all these having information
companies have many successful products to their credit. Peter Drucker wrote that successful about consumers. So to
companies are those that know and understand the customer so well that the product conceived, practice marketing
correctly, managers
priced, promoted, and distributed by the company is ready to be bought as soon as it is available.5
must have information,
Drucker is on target with his statement, but how can a marketer know and understand how to and this is the purpose
deliver value to the customer so well? The answer, as you can now see by our examples, is by of marketing research.
having information about consumers. So to practice marketing correctly, managers must have This is why we say that
information, and this is the purpose of marketing research. This is why we say that marketing marketing research is a
part of marketing;
research is a part of marketing; it provides the necessary information to enable managers to market
it provides the necessary
ideas, goods, and services properly. But how do you market ideas, goods, and services properly? information to enable
You have probably already learned in your studies that you must begin by having the right phi- managers to market
losophy, followed by proper marketing strategy. We call that philosophy the “marketing concept.” ideas, goods, and
services properly.
Practical Application lightly carbonated iced coffee beverage. Customers were will-
ing to try it once, based on the Starbucks name alone, but the
Ice Breakers Pacs went into distribution in November
drink failed to encourage repeat sales.
2007. Pacs were small, dissolvable pouches with a
One question is whether it was the carbonation or the coffee
flavored-powder sweetener, in orange and cool mint fla-
that put consumers off. It is true that premium coffee sales have
vors. By January 2008, The Hershey Company stopped the
boomed and carbonated beverages are still a mainstay in the U.S.
marketplace, and Coke saw
that in Japan the combination
of coffee and carbonation
was popular. Causes for fail-
ure may include (a) consumers
in the United States were not
ready to accept the taste;
Ice Breakers Pacs (b) there may have been some
confusion as to when and
production in response to criticism that the mints looked
how this type of blended bev-
too much like the tiny heat-sealed bags used to sell pow-
erage could meet the needs
dered illegal street drugs (cocaine). Hershey stated the
currently being provided by
mints were not intended to resemble anything of the sort.
coffee and soda separately;
CEO David West disclosed the decision to stop produc-
and (c) perhaps consumers
tion: “We are sensitive to these viewpoints and thus have
love their coffee and they love
made the decision that we will no longer manufacture
their colas, but they don’t
Ice Breaker Pacs.” What seemed like a breakthrough,
want a combination. Would
innovative way to deliver a mint form turned out to be the
better information, prior to
opposite when consumer behaviors toward safety (for
Coca-Cola C2 the launch of Blak, have been
self, community, world) made this product unacceptable
helpful?
to the marketplace. Would better information as to the
Coca-Cola spent an esti-
market’s reaction to the packaging been helpful?
mated $30 to $50 million to
Introduced in April 2006, Coca-Cola’s Blak entered the
promote C2, a cola-flavored
U.S. marketplace as a carbonated fusion beverage, a taste
beverage introduced first in
blend of Classic Coke and coffee “essence.” Coke spent two
Japan, then later in the
years developing Blak in hopes of
United States in June 2004,
making inroads into consumers’ grow-
in response to the low-
ing taste for coffee and a booming
carbohydrate diet trend. This
premium beverage market, targeting
was Coca-Cola’s biggest
over-thirty, savvy, sophisticate-achiever
product launch since Diet
consumers. Weak product performance
Coke in 1982. Despite this
in the United States resulted in its being
support, C2 (as well as
discontinued seventeen months after
its competitor Pepsi Edge)
launch. Coke would have benefited by
failed to meet sales expecta-
taking a look at more information on
tions and was pushed out a
product history in this category. Blak
year later. This failure is due
was not the first of its kind; similar
mostly to the decline of the
blends were released in the past and
low-carb fad, and partly to
failed as well. In 1994, Pepsi began to
the success of Coca-Cola
test-market a soda called Pepsi Kona, Wolfgang Puck’s Self-Heating
Zero, a zero-calorie version
which tasted more like coffee than Latte
launched within the same
soda. In 1995, Starbucks partnered
time frame. Zero-calorie beverages had already been
with Pepsi and began to market a cof-
established, and with the advancement in the taste of
Coca-Cola Blak fee product called Mazagran. It was a
MARKETING RESEARCH: PART OF MARKETING? 7
sweeteners, the combined effect made reduced-carb bever- from stores nationwide after complaints of faulty technology,
ages obsolete. ranging from the product’s failure to reach an appropriately hot
Sources reported the Wolfgang Puck self-heating coffee temperature to it actually overheating, and spurting or leaking
containers technology took ten years and $24 million to develop. product from the can. While self-heating and self-chilling tech-
The self-heating can technology is by OnTech and is based on a nology could help meet the needs of many on-the-go con-
two-part container. The outer chamber holds the beverage and sumers, any future use of an improvement in the technology will
the inner chamber holds calcium oxide and a water puck, which have to face an even higher hurdle to regain consumers’ trust.
when its seal is broken mixes with the calcium oxide and creates
a heating effect. Launched in the spring of 2005, the product was Visit NewProductWorks® at www.gfkamerica.com.
quickly picked up for distribution by Kroger, Albertsons, and
Sam’s Club. Less than a year later, Puck’s namesake company Source: NewProductWorks®, the innovation resource center of GfK
demanded brand-licensee BrandSource Inc. to pull the products Strategic Innovation (formerly Arbor Strategy Group).
Kotler and Keller characterize the marketing concept as one that “senses and responds. The
job is not to find the right customers for your products, but to find the right products for your
customers.”7 They define the marketing concept as follows:
The marketing concept is a business philosophy that holds that the key to achieving orga-
nizational goals consists of the company’s being more effective than competitors in creating,
delivering, and communicating customer value to its chosen target markets.8
For many years, business leaders have recognized that this is the “right” philosophy.
Although the term marketing concept is often used interchangeably with other terms such as
Although the marketing
customer oriented or market driven, the key point is that this philosophy puts the customer first.
concept is often used
Time has proven that such a philosophy is superior to one in which company management interchangeably with
focuses on production, the product itself, or some promotional or sales gimmick. If you satisfy other terms such as
consumers, they will seek to do business with your company. Thus, we’ve learned that having customer oriented or
the right philosophy is an important first step in being successful. Still, just appreciating the market driven, the key
point is that this
importance of satisfying consumer wants and needs isn’t enough. Firms must put together the
philosophy puts the
“right” strategy. customer first.
segment(s) should we target? Which model of a proposed product will best suit the target mar-
The bottom line of this
discussion is that to ket? What is the best price? Which promotional method will be the most efficient? How should
make the right we distribute the product/service? In order to make the right decisions, managers must have
decisions, managers objective, accurate, and timely information; and, because environments are forever changing,
continuously need marketers constantly need updated information about them. A strategy that is successful today
information. may need to be changed as the competitive, economic, social, political, legal, global, and tech-
nological environments change. Therefore, the bottom line of this discussion is that to make the
right decisions, managers continuously need information. As we shall learn next, marketing
research supplies much of this information.
Each of these definitions is correct. Our definition is shorter and illustrates the process of
marketing research. The AMA’s definition is longer because it elaborates on the function (we call
it the purpose) as well as the uses of marketing research. Note that market research, a part of mar-
keting research, refers to applying marketing research to a specific market area. One definition of
market research is the systematic gathering, recording, and analyzing of data with respect to a
Market research refers
to the systematic particular market, where market refers to a specific customer group in a specific geographic
gathering, recording, area.10 The Marketing Research Association (MRA) defines market research as “the process used
and analyzing of data to define the size, location and/or makeup of the market for a good or service.”11 Notice the focus
with respect to a on a geographical market area. The MRA defines marketing and opinion research in a manner
particular market,
consistent with the way we have defined marketing research: “a process used by businesses to
where market refers
to a specific customer collect, analyze and interpret information used to make sound business decisions and successfully
group in a specific manage the business.”12 In the next two sections, we will talk more about the purpose and uses of
geographic area. marketing research.
us that the information provided by marketing research for decision making should represent the
consumer. In fact, by mentioning the consumer, this implies that marketing research is consis-
tent with the marketing concept because it “links the consumer . . . to the marketer.” The AMA
definition is normative. That is, it tells us how marketing research should be used to ensure the
firm is consumer oriented. We certainly agree with this, but what should be done isn’t always
followed. Our examples of poor product decisions we discussed previously illustrate this point,
and managers have been implored to use marketing research instead of their own intuition to
make decisions. Even though the AMA definition makes the point that marketing research links
the firm to the consumer, we want to point out that marketing research information is also
collected on entities other than the consumer. Information is routinely gathered on members of
distribution channels, employees, and competitors as well as the economic, social, technological,
and other environments.13
One could argue that the point of all this research is to do a better job of satisfying consumers.
To illustrate how marketing research helps link managers to consumers, imagine what is taking
place in the golf industry during the economic slowdown we have experienced since 2008.
Managers of firms that market golf clubs and equipment, clothing, and managers in related
industries, such as the lodging and resort industry, want to know how the recession is affecting
golfers’ attitudes and buying practices. Marketing Research Application 1.2 shows how one mar-
keting research firm is linking these managers to their consumers.
Sometimes marketing research studies lead to the wrong decisions. We should point out here
that just because a manager uses marketing research doesn’t mean that the decisions based on the
research are infallible. In the examples of “failed” products we examined earlier, some marketing
research was conducted but may have been inaccurate. There are plenty of examples in which mar-
keting research showed a product would fail, yet it turned out to be a resounding success. Stella
Artois beer appealed primarily to people in urban areas. The company’s advertising agency devel-
oped an advertisement showing a peasant selling flowers in a rural setting, but the marketing
research results showed the ad to be a failure, citing below-average brand awareness and the fact
that the ad positioned the beer away from the group to which it primarily appealed. Management at
Stella Artois, however, believed that the ad was good and the marketing research was flawed. The
ad was so successful it is credited with helping to turn the company’s product from a niche beer to
one of the top-selling grocery-store beer brands in the United Kingdom.14 Another example occurred
when marketing research showed the pilot for the Seinfeld show, starring Jerry Seinfeld, was “bad.”
Later, however, a doubting executive resurrected the show, which became one of the most suc-
cessful shows in television history.15 Likewise, marketing research studies also predicted that
hair-styling mousse and answering machines would fail if brought to market.16
As we’ve mentioned, there are plenty of failures where marketing research predicted success.
Most of these failures are removed from the shelves with as little fanfare as possible. Another
classic example of this was Beecham’s cold-water wash product, Delicare. The new product
failed even though marketing research predicted it would unseat the category leader, Woolite.
Beecham sued the research company that had predicted success.17 When Duncan Hines intro-
duced its line of soft cookies, marketing research studies showed that 80% of customers who tried
Soft Batch® cookies stated that they would buy them in the future, but didn’t.18 Sainsbury’s, the
U.K. grocery chain, had an ad prepared by their agency that tested favorably in marketing
research testing. However, the company received negative reactions from customers and staff
alike when the ad ran. Sainsbury’s switched ad agencies.19
These examples do not imply that marketing research is not useful. Remember, most mar-
keting research studies are trying to understand and predict consumer behavior—a difficult
task, indeed. The fact that the marketing research industry has been around for many years
means that it has passed the toughest of all tests to prove its worth—the test of the marketplace.
If the industry did not provide value, it would cease to exist. For each one of these examples
of “failure” there are tens of thousands of success stories supporting the use of marketing
research.
10 CHAPTER 1 • AN INTRODUCTION TO MARKETING RESEARCH