The Nature of (Marketing) Research The Nature of (Marketing) Research Definition
Definitions of s of ResearchResearch
“Systematic investigation towards increasing the sum of knowledge” “Systematic investigation towards increasing the sum of knowledge”
(Chambers 20th Century Dictionary) (Chambers 20th Century Dictionary)
“an endeavour to discover new or collate old facts etc. by the
“an endeavour to discover new or collate old facts etc. by the scientific study of a subject or by ascientific study of a subject or by a course of
course of critical investigation.”critical investigation.” (The Concise Oxford Dictionary) (The Concise Oxford Dictionary)
•• A research can be undertaken for A research can be undertaken for two different purposes:two different purposes: –
– TTo solve o solve a currently existing a currently existing problem (applied research)problem (applied research) –
– TTo contribute to the o contribute to the general body of knogeneral body of kno wledge in a particular area of wledge in a particular area of interestinterest (basic/fundamental research)
(basic/fundamental research) WHAT IS MARKETING ?
WHAT IS MARKETING ?
Marketing is a social process by which individuals and groups obtain what they need and Marketing is a social process by which individuals and groups obtain what they need and wantwant through creating and exchanging products and value with others
through creating and exchanging products and value with others PHILIP KOTLER
PHILIP KOTLER WHAT IS MARKET ? WHAT IS MARKET ?
A market consists of all the potential customers sharing a
A market consists of all the potential customers sharing a particular need or want who particular need or want who might bemight be willing and able to engage in exchange to satisfy that need
willing and able to engage in exchange to satisfy that need or want.or want. WHAT IS
WHAT IS THE PURPOSE OF A THE PURPOSE OF A BUSINESS BUSINESS ??
•• Peter Drucker says : ---The purpose of the business is to create customers.Peter Drucker says : ---The purpose of the business is to create customers.
•• This statement can be made more explicit by stating : ---The purpose of business is toThis statement can be made more explicit by stating : ---The purpose of business is to
create long-term profitable customers. create long-term profitable customers. BUSINESS IS MARKETING
BUSINESS IS MARKETING
•• Marketing can not be considered as a separate function , it is Marketing can not be considered as a separate function , it is the whole business, seenthe whole business, seen from the point of view
from the point of view of its final results...of its final results...that is profit, through customer ....that is profit, through customer satisfaction
satisfaction
What is Marketing Research ? What is Marketing Research ?
•• According to American Marketing Association -According to American Marketing Association
-M.R. is “the systematic gathering, recording and analyzing
M.R. is “the systematic gathering, recording and analyzing of data about problems relatedof data about problems related to the marketing of goods and services.”
to the marketing of goods and services.” ACCORDING TO TULL AND HAWKINS ACCORDING TO TULL AND HAWKINS
•• “M.R. is systematic and objective search to “M.R. is systematic and objective search to analysis of situation relevant to theanalysis of situation relevant to the identification and solut
identification and solutions of any problem in the field of marketing. ions of any problem in the field of marketing. The decision makingThe decision making process become
process becomes much easier by s much easier by M.R. M.R. (i.e. PROBLEM IDENTIFICA(i.e. PROBLEM IDENTIFICATION – TION – PROBLEMPROBLEM SELECTION – PROBLEM SOLUTION)
SELECTION – PROBLEM SOLUTION) What is Business Research?
What is Business Research?
•• A systematiA systematic Inquiry whose objective is c Inquiry whose objective is to provide information to solve managerialto provide information to solve managerial problems.
problems. Why Study Research? Why Study Research?
•• Research provides you with the knowledge and skills needed for the fast-paced decision-Research provides you with the knowledge and skills needed for the fast-paced decision-making environment
making environment Why Managers need Better
Why Managers need Better InformatioInformationn
•• Global and domestic competition is more vigorousGlobal and domestic competition is more vigorous
•• Organizations are increasingly practicingOrganizations are increasingly practicing data mining data mining andand data warehousing data warehousing
Steps in Decision Making Process Steps in Decision Making Process
•• Establish ObjectivesEstablish Objectives •• Determine PotentialDetermine Potential
•• Select Select Problem/OpportuniProblem/Opportunityty •• Develop AlternativesDevelop Alternatives
•• Choose Best AlternativesChoose Best Alternatives •• Implement AlternativeImplement Alternative Internation
International al Marketing ResearchMarketing Research
International Marketing Research can be defined as marketing research conducted to aid in International Marketing Research can be defined as marketing research conducted to aid in making decisions in more than one country
making decisions in more than one country Selected Marketing Research Career
Selected Marketing Research Career DescriptionsDescriptions Vice President of Marketing Research
Vice President of Marketing Research
•• Part of company’s top management teamPart of company’s top management team
•• Directs company’s entire market research Directs company’s entire market research operationoperation
•• Sets the goals & objectives of Sets the goals & objectives of the marketing research departmentthe marketing research department Research Director
Research Director
•• Also part of senior managementAlso part of senior management
•• Heads the development and execution of all research projectsHeads the development and execution of all research projects Assistant Director of Research
•• Supervises research staff membersSupervises research staff members Senior Project Manager
Senior Project Manager
•• Responsible for design, implementation, & research projectsResponsible for design, implementation, & research projects Senior Analyst
Senior Analyst
•• Participates in the development of projectsParticipates in the development of projects •• Carries out execution of assigned pCarries out execution of assigned p rojectsrojects
•• Coordinates the efforts of analyst, junior analyst, & other Coordinates the efforts of analyst, junior analyst, & other personnel in the development of personnel in the development of research design and data
research design and data collectioncollection •• Prepares final reportPrepares final report
Analyst Analyst
•• Handles Handles details details in in execution execution of of projectproject •• Designs & pretests questionnairesDesigns & pretests questionnaires
•• Conducts preliminary analysis of dataConducts preliminary analysis of data Statistician/D
Statistician/Data ata ProcessingProcessing
•• Serves as expert on theory and application on Serves as expert on theory and application on statistical techniquesstatistical techniques •• Oversees experimental design, data processing, and analysisOversees experimental design, data processing, and analysis Junior Analyst
Junior Analyst
•• Secondary data analysisSecondary data analysis
•• Edits and codes questionnairesEdits and codes questionnaires •• Conducts preliminary analysis of dataConducts preliminary analysis of data Fieldwork Director
Fieldwork Director
•• Handles selection, training, supervision, and evaluation of interviewers and field workersHandles selection, training, supervision, and evaluation of interviewers and field workers Marketing Research Suppliers & Services
Marketing Research Suppliers & Services •• Internal suppliersInternal suppliers
•• External suppliersExternal suppliers –
– Full-service suppliersFull-service suppliers
•• Standardized servicesStandardized services •• Customized servicesCustomized services •• Internet servicesInternet services –
– Limited-service suppliersLimited-service suppliers •• Field servicesField services
•• Coding and data entry servicesCoding and data entry services •• Analytical servicesAnalytical services
•• Data analysis servicesData analysis services Criteria for Selecting a Research
Criteria for Selecting a Research Supplier Supplier
What is the reputation of the supplier?What is the reputation of the supplier?
Do they complete projects on schedule?Do they complete projects on schedule?
Are they known for maintaining ethical standards?Are they known for maintaining ethical standards?
Are they flexible?Are they flexible?
Are their research projects of high quality?Are their research projects of high quality?
What kind and how much experience does the supplier have? Has What kind and how much experience does the supplier have? Has the firm hadthe firm had
experience with projects similar to this one? experience with projects similar to this one?
Do the supplier's personnel have Do the supplier's personnel have both technical and non-technical expertise?both technical and non-technical expertise?
Can they communicate well with the client?Can they communicate well with the client?
Competitive bids should be obtai
Competitive bids should be obtained and compared on ned and compared on the basis of quality as well asthe basis of quality as well as price.
price.
Preparation for a Career in Mktg. Research Preparation for a Career in Mktg. Research
•• TTake all the ake all the marketing courses you marketing courses you can.can.
•• TTake courses in ake courses in statistics and quantitative methods.statistics and quantitative methods.
•• Acquire Internet and computer skAcquire Internet and computer skills. ills. Knowledge of programming languages iKnowledge of programming languages is an addeds an added asset.
asset.
•• TTake courses in ake courses in psychology and consumer psychology and consumer behavior.behavior. •• Acquire effective written and verbal Acquire effective written and verbal communication skills.communication skills.
•• Think creativelyThink creatively. . Creativity and common sense command a premiCreativity and common sense command a premium in marketingum in marketing research.
research.
END OF 1
Marketing Information & Decision Support System Marketing Information & Decision Support System Informatio
Information n SystemSystem
•• A continuing and interacting structure of people, equipment, and procedures, designed A continuing and interacting structure of people, equipment, and procedures, designed toto gather, sort, analyze, evaluate, and
gather, sort, analyze, evaluate, and distribute pertinent, timelydistribute pertinent, timely, and , and accurate informationaccurate information to decision makers.
to decision makers. Marketing Information System Marketing Information System A marketi
A marketing information system can be defined as a sng information system can be defined as a s ystem designed to generate, store andystem designed to generate, store and disseminate an orderly flow of pertinent information to
disseminate an orderly flow of pertinent information to marketing managers.marketing managers. Types of information in Mkt. IS
Types of information in Mkt. IS •• Recurrent InformationRecurrent Information •• Monitoring InformationMonitoring Information •• Requested InformationRequested Information Recurrent
Recurrent InformatioInformationn
•• Recurrent information is information that is provided on Recurrent information is information that is provided on a periodic basis.a periodic basis. •• For Example: Customer awareness of the firm’s advertisingFor Example: Customer awareness of the firm’s advertising
Monitoring Information Monitoring Information
•• Monitoring information is the information derived from the regular scanning Monitoring information is the information derived from the regular scanning of cretinof cretin sources.
sources.
•• For example: a marketing manager may desire a summary of any articles on theFor example: a marketing manager may desire a summary of any articles on the competition or the industry.
competition or the industry. Requested Information
Requested Information
•• Requested information is developed in response to a specific request by a marketingRequested information is developed in response to a specific request by a marketing manager.
manager.
Decision Support Systems (DSS) Decision Support Systems (DSS)
•• DSS models are developed and adapted to support each firm’s own decision problemsDSS models are developed and adapted to support each firm’s own decision problems •• Used to retrieve data, transform it into Used to retrieve data, transform it into usable information, and disseminate it to usersusable information, and disseminate it to users •• Allow managers to interact directly with databaseAllow managers to interact directly with database
•• Provides a modeling function to help Provides a modeling function to help interpret retrieved informationinterpret retrieved information Marketing Decision Support Systems
Marketing Decision Support Systems
•• Combines marketing data from diverse sources into Combines marketing data from diverse sources into a single database, enabling a single database, enabling productproduct managers, sales planners, market researchers, financial analysts, and production
managers, sales planners, market researchers, financial analysts, and production schedulers to share information
schedulers to share information Marketing Decision Support Systems Marketing Decision Support Systems
Managers’ need for decision-relevant information: Managers’ need for decision-relevant information:
•• Routine comparisons of current performance against past trends on each of the keyRoutine comparisons of current performance against past trends on each of the key measures of effectiveness
measures of effectiveness
•• Periodic exception reports to assess which sales territories or accounts have notPeriodic exception reports to assess which sales territories or accounts have not matched previous years’ purchases
matched previous years’ purchases
•• Special analyses to evaluate the sales Special analyses to evaluate the sales impact of particular marketing programs, and toimpact of particular marketing programs, and to predict what would happen if changes were made
predict what would happen if changes were made Components of MDSS
Components of MDSS •• Models (Formulae)Models (Formulae) •• DataData
•• Computer SystemComputer System •• InterfaceInterface
•• ManagersManagers Expert Systems Expert Systems
–
– One of the most One of the most useful applications of Artificiuseful applications of Artificial Intelligence (AI)al Intelligence (AI) –
– AI is a group of related technologies used to develop software and machines thatAI is a group of related technologies used to develop software and machines that emulate human qualities such as
emulate human qualities such as learning, reasoning, communicating, seeing,learning, reasoning, communicating, seeing, and hearing
and hearing Three component
Three components of an expert s of an expert systemsystem –
– Knowledge baseKnowledge base
•• An expert system’s database of knowledge An expert system’s database of knowledge about a particular subjectabout a particular subject –
– Inference engineInference engine
•• The software that controls the search The software that controls the search of the expert system’s knowledgeof the expert system’s knowledge base and produces conclusions
base and produces conclusions –
– User interfaceUser interface
•• The display screen the user used to interact with the expert systemThe display screen the user used to interact with the expert system
END OF 2
Research Process & Research Design Research Process & Research Design Research Process
Research Process
•• The research process involves identifying a The research process involves identifying a management problem or opportunity;management problem or opportunity; translating that problem or opportunity into a
translating that problem or opportunity into a research problem; and collecting, analyzing,research problem; and collecting, analyzing, and reporting the information specified in the
and reporting the information specified in the research problem.research problem. Marketing Research Design
Marketing Research Design
Marketing research design is the specification of procedures for collecting and analyzing the data Marketing research design is the specification of procedures for collecting and analyzing the data necessary to help identify or
necessary to help identify or react to a react to a problem or opportunity, such that the difference betweenproblem or opportunity, such that the difference between the cost of obtaining various levels of accuracy and the expected va
the cost of obtaining various levels of accuracy and the expected va lue of the informationlue of the information associated with each level of accuracy is maximized.
associated with each level of accuracy is maximized. Steps in the Research Process
Steps in the Research Process 1.
1. DeDefifine thne the Ree Reseseararch Prch Proboblelemm 2.
2. EstEstimimate tate the vahe value olue of thf the infe informormatiationon 3.
3. SelSelect tect the Dahe Data Cota Collellectiction Aon Apprpproacoachh 4.
4. SelSelect ect the the meameasursuremeement nt tectechnihniqueque 5.
5. SeSelelect ct ththe Se Samamplplee 6.
6. SelSelect ect the the MetMethodhods of s of AnAnalysalysisis 7.
7. EvaEvalualuate tte the Ehe Ethithics ocs of thf the Ree Reseasearchrch 8.
8. EstEstimimate tiate time and fime and finannanciacial Requl Requireiremenmentsts 9.
9. PrPrepaepare re the the ResResearearch ch PrPropooposalsal Define the Research Problem
Define the Research Problem
Specify the information required to help react to the management problem Specify the information required to help react to the management problem Estimate the value of
Estimate the value of the informationthe information
•• Using either judgment or the expected Using either judgment or the expected value approach, estimate the value of value approach, estimate the value of informationinformation with varying levels of
with varying levels of accuracyaccuracy.. Select the
Select the Data Collection ApproachData Collection Approach
Determine whether secondary data, a survey
Determine whether secondary data, a survey or experimentation will produce the required dataor experimentation will produce the required data and choose the form of the selected method(s) to use.
and choose the form of the selected method(s) to use. Select the
Select the measurement techniquemeasurement technique Determine whether and how to
Determine whether and how to use questionnaires, attitude scales, observation and/or projectiveuse questionnaires, attitude scales, observation and/or projective technique.
technique.
Select the Sample Select the Sample
•• Determine who and how many respondents or objects to measure.Determine who and how many respondents or objects to measure. Select the
Select the Methods of AnalysisMethods of Analysis
•• Determine the appropriate means of analyzing the data to provide the requiredDetermine the appropriate means of analyzing the data to provide the required information.
information.
Evaluate the Ethics of the Research Evaluate the Ethics of the Research
•• Review all the aspects of the research to be certain that it is ethically sound.Review all the aspects of the research to be certain that it is ethically sound. Estimate time and
Estimate time and financial Requirementsfinancial Requirements
•• For each research approach, develop time and financial cost estimates and compare toFor each research approach, develop time and financial cost estimates and compare to the estimated value of the information and time constraints imposed by the problem. the estimated value of the information and time constraints imposed by the problem. Prepare the Research Proposal
Prepare the Research Proposal
•• Summarize the results of the preceding seven steps in the form of a research proposal.Summarize the results of the preceding seven steps in the form of a research proposal. Types of errors
Types of errors
•• Surrogate errorsSurrogate errors •• Measurement errorsMeasurement errors •• Experimental errorsExperimental errors
•• Population specification error Population specification error •• Frame error Frame error
•• Sampling error Sampling error •• Selection error Selection error •• Non response error Non response error Surrogate errors
Surrogate errors
•• Surrogate information error is caused by Surrogate information error is caused by a variation between the information required toa variation between the information required to solve the problem and
solve the problem and the information sought by the the information sought by the researcherresearcher..
•• A consumer uses the price of a brand to represent its quality level, is a common exampleA consumer uses the price of a brand to represent its quality level, is a common example of a measure that is subject to surrogate information error (because price level does not of a measure that is subject to surrogate information error (because price level does not always reflect quality level.
always reflect quality level. Measurement errors
Measurement errors
•• Measurement error is caused by Measurement error is caused by the difference between the information desired by thethe difference between the information desired by the researcher and the information produced by the measurement process.
researcher and the information produced by the measurement process. Experimental errors
•• Experimental error occurs when the effect of the Experimental error occurs when the effect of the experimental situation itself is measuredexperimental situation itself is measured rather than the effect of the
rather than the effect of the independent variable.independent variable.
•• A retaiA retail chain may increase the price of selected items in four outlets and l chain may increase the price of selected items in four outlets and leave the priceleave the price of the same item constant in four similar outlets in an attempt to discover best pricing of the same item constant in four similar outlets in an attempt to discover best pricing strategy.
strategy. Populatio
Population n specification error specification error
•• Population specification error is caused by selecting an Population specification error is caused by selecting an inappropriate population frominappropriate population from
which to collect data which to collect data.. Frame error
Frame error
•• Frame error is caused by using an inaccurate or incomplete sampling frame.Frame error is caused by using an inaccurate or incomplete sampling frame. Sampling error
Sampling error
•• Sampling error is caused by the generation of a non representative sample by means Sampling error is caused by the generation of a non representative sample by means of of a probability sampling method.
a probability sampling method. Selection error
Selection error
•• Selection error occurs when a non representative sample is obtained by non probabilitySelection error occurs when a non representative sample is obtained by non probability sampling methods.
sampling methods. Non response error Non response error
•• It is caused by;It is caused by;
•• Failure to contact all members of a sampleFailure to contact all members of a sample
•• Failure of some contacted members of the sample to respond to all or specific part of theFailure of some contacted members of the sample to respond to all or specific part of the measurement instrument.
measurement instrument.
Strategies for handling research errors Strategies for handling research errors
•• Three basic strategies for dealing with potential errors.Three basic strategies for dealing with potential errors. 1.
1. MiMininimimize inze indidivividudual eral erroror r 2.
2. MinMinimiimize toze total ertal error tror throhrough tugh tradrade-oe-offffss 3.
3. MeaMeasursure or e or estestimaimate rte resiesiduadual erl error ror Strategy 1: Minimize
Strategy 1: Minimize individual error individual error
•• Consider sampling error as an Consider sampling error as an example. The probability and magnitude of sampling error example. The probability and magnitude of sampling error can be reduced by increasing sample size, but increasing sample size also increase can be reduced by increasing sample size, but increasing sample size also increase costs.
costs.
•• It may be possible to reduce sampling error by moving from a simple random sample to It may be possible to reduce sampling error by moving from a simple random sample to aa stratified sample.
stratified sample.
Minimize total error through trade-offs Minimize total error through trade-offs
•• Assume that a researcher has Assume that a researcher has initially selected a large sample for initially selected a large sample for a mail survey. Thea mail survey. The sample is large enough to provide a low level of sampling error, but it has taken such a sample is large enough to provide a low level of sampling error, but it has taken such a large proportion of the research
large proportion of the research budget that there are budget that there are sufficient funds remaining for onlysufficient funds remaining for only one follow-up mailing. Past experience with surveys of
one follow-up mailing. Past experience with surveys of this type indicates that with onethis type indicates that with one follow-up mailing, the total response rate will reach 40%;
follow-up mailing, the total response rate will reach 40%; with four follow-ups, it will climbwith four follow-ups, it will climb to 55%. One solution would be to ask for an
to 55%. One solution would be to ask for an increase in budget. A increase in budget. A second solution is tosecond solution is to “trade” sampling error for non response
“trade” sampling error for non response error.error.
END OF 3
Secondary Data Secondary Data
Primary vs. Secondary Data Primary vs. Secondary Data
•• Primary dataPrimary data are originated by a researcher for the specific purpose of addressing theare originated by a researcher for the specific purpose of addressing the
problem at hand.
problem at hand. The collection of primary data iThe collection of primary data involves all six steps of the marketingnvolves all six steps of the marketing research process.
research process.
•• Secondary dataSecondary data are data which have already been collected for purposes other than theare data which have already been collected for purposes other than the
problem at hand.
problem at hand. These data can be located quickly and inexpensivelyThese data can be located quickly and inexpensively.. Uses of Secondary Data
Uses of Secondary Data •• Identify the problemIdentify the problem •• Better define the problemBetter define the problem
•• Develop an approach to the problemDevelop an approach to the problem
•• Formulate an appropriate research design (for example, by Formulate an appropriate research design (for example, by identifying the key variables)identifying the key variables) •• Answer certain research questions and test Answer certain research questions and test some hypothesessome hypotheses
•• Interpret primary data more insightfullyInterpret primary data more insightfully Problems Encountered with Secondary Data Problems Encountered with Secondary Data
•• AvailabilityAvailability •• RelevanceRelevance •• AccuracyAccuracy •• SufficiencySufficiency
Internal Secondary Data Internal Secondary Data
•• Accounting RecordsAccounting Records •• Sales force reportsSales force reports •• Miscellaneous reportsMiscellaneous reports •• Internal expertsInternal experts
External Source of Secondary Data External Source of Secondary Data
•• Computerized databasesComputerized databases •• AssociationsAssociations
•• Government agenciesGovernment agencies •• Syndicated servicesSyndicated services •• DirectoriesDirectories
•• Other published sourcesOther published sources •• External expertsExternal experts
Associations Associations
Associations frequently publish or maintain information on industry sales, operating Associations frequently publish or maintain information on industry sales, operating characteristics, growth patterns etc. furthermore they may conduct special studies
characteristics, growth patterns etc. furthermore they may conduct special studies of a factor of a factor relevant to
relevant to their industry.their industry. Syndicated services Syndicated services
•• Companies that collect and sell common pools of data of known commercial valueCompanies that collect and sell common pools of data of known commercial value designed to serve a number of clients.
designed to serve a number of clients.
•• Syndicated sources can be classified based on the unit of measurementSyndicated sources can be classified based on the unit of measurement (households/consumers or institutions).
(households/consumers or institutions).
•• Household/consumer data may be obtained from Household/consumer data may be obtained from surveys, diary panels, or electronicsurveys, diary panels, or electronic scanner services.
scanner services.
•• Institutional data may be obtained from retailers, wholesalers, or industrial firms.Institutional data may be obtained from retailers, wholesalers, or industrial firms. Directories
Directories
•• Any sound marketing strategy requires an Any sound marketing strategy requires an understanding of existing and potentialunderstanding of existing and potential competitors and customers.
competitors and customers.
•• How would you identify the potential competitors and How would you identify the potential competitors and customers?customers? •• A number of services and directories would prove A number of services and directories would prove useful.useful.
External experts External experts
•• External experts are individuals outside your organization whose job External experts are individuals outside your organization whose job provides them withprovides them with expertise on your
expertise on your industry or activity.industry or activity.
END OF 4
Commercial Surveys, Audits and Panels Commercial Surveys, Audits and Panels Commercial Surveys, A
Commercial Surveys, Audits and Panels occasionally generate primary udits and Panels occasionally generate primary data, some timesdata, some times secondary data, and most often, data with characteristics of each.
secondary data, and most often, data with characteristics of each. Commercial Surveys
Commercial Surveys
•• Commercial surveys are conducted by research Commercial surveys are conducted by research organizations and fall into threeorganizations and fall into three categories;
categories; 1.
1. PePeririododic ic SuSurvrveyeyss 2.
2. PPananel el SSururvveyeyss 3.
3. SShaharered Sd Sururveveysys Periodic Surveys
Periodic Surveys
•• Periodic surveys are conducted at Periodic surveys are conducted at regular intervals ranging from weekly to annually.regular intervals ranging from weekly to annually. •• Periodic surveys are conducted by Periodic surveys are conducted by mail, personal interview and telephone.mail, personal interview and telephone.
Panel Surveys Panel Surveys
•• Panel surveys sometimes called interval panels, are conducted among a group of Panel surveys sometimes called interval panels, are conducted among a group of respondents who have agreed to respond to a
respondents who have agreed to respond to a number of mail, telephone, or,number of mail, telephone, or, occasionally personal interviews over
occasionally personal interviews over time.time.
•• Panel surveys generally measure differing attitudes, knowledge or behaviors using Panel surveys generally measure differing attitudes, knowledge or behaviors using thethe same basic sets of respondents.
same basic sets of respondents. Shared Surveys
Shared Surveys
•• Shared surveys are surveys that are administered by a research firm and are composedShared surveys are surveys that are administered by a research firm and are composed of questions submitted by multiple clients.
of questions submitted by multiple clients. Audits
Audits
•• Audits involve the physical inspection of inventories, sales Audits involve the physical inspection of inventories, sales receipts, shelf facings, pricesreceipts, shelf facings, prices and other aspects of the marketing mix to determine sales, market share, relative price, and other aspects of the marketing mix to determine sales, market share, relative price, distribution or other relevant
distribution or other relevant information. E.g.information. E.g. •• Store AuditsStore Audits
•• Product AuditsProduct Audits
•• Retail Distribution AuditsRetail Distribution Audits Panels
Panels
•• A panel is a group of A panel is a group of individuals or organizations that have agreed individuals or organizations that have agreed to provide informationto provide information to a researcher over a period of time.
to a researcher over a period of time.
END OF 5
Survey Research Survey Research
What Do You Think of These Questions? What Do You Think of These Questions?
Overview Overview
Research in which the participant is asked
Research in which the participant is asked to respond to oral and/or to respond to oral and/or written questions. The questions andwritten questions. The questions and responses can be either structured or unstructured.
responses can be either structured or unstructured. Why Interviews?
Why Interviews?
•• A major advantage of the interview is A major advantage of the interview is its adaptabilityits adaptability
•• A skillful interviA skillful interviewer can follow up ideas, probe ewer can follow up ideas, probe responses and investigate motives and feelings-responses and investigate motives and feelings-something a survey can never do
something a survey can never do
•• The way in which a The way in which a response is made (tone of voice, facial expression, hesitation) can response is made (tone of voice, facial expression, hesitation) can provideprovide information that a written response would conceal
information that a written response would conceal
•• Survey responses have to be taken at face Survey responses have to be taken at face value, but a response in an interview can value, but a response in an interview can be developedbe developed and clarified and clarified Unstructured Interview Unstructured Interview Structured Interview Structured Interview Direct Interviews Direct Interviews
•• Direct interviewing involves asking questions such that the respondent is aware of Direct interviewing involves asking questions such that the respondent is aware of the underlyingthe underlying purpose of the surve
purpose of the surve yy. Most marketing surveys . Most marketing surveys are relatively direct.are relatively direct. Indirect Interviews
Indirect Interviews
•• Indirect interviewing, often referred to as disguised, involves asking questions such that theIndirect interviewing, often referred to as disguised, involves asking questions such that the respondent does not know what the objective of the study
respondent does not know what the objective of the study is.is.
•• A person who is asked to describe the “tyA person who is asked to describe the “ty pical person” who rides a motor cpical person” who rides a motor c ycle to work may not beycle to work may not be aware that the resulting description is a measure
aware that the resulting description is a measure of his/her own attitudes toward motorcycles.of his/her own attitudes toward motorcycles. Types of Surveys
Types of Surveys
•• Personal InterviewsPersonal Interviews •• Telephone InterviewsTelephone Interviews •• Mail InterviewsMail Interviews •• Computer InterviewsComputer Interviews
Criteria for selection of a Survey Method Criteria for selection of a Survey Method
A number of criteria are important for judging which type of survey to use
A number of criteria are important for judging which type of survey to use in a particular situation.in a particular situation. 1
1.. CCoommpplleexxiittyy 2.
2. ReReququirired aed amomoununt of dt of datataa 3.
3. DeDesisirered ad accccururacacyy 4.
4. SSamamplple e cocontntroroll 5.
5. TTimime e rereququirirememenentsts 6.
6. AccAccepteptablable le leveevel l of of nonnon-re-resposponsense 7
7.. ccoosstt Complexity of the
Complexity of the QuestionnaireQuestionnaire
•• Although researcher generally attempts to minimize Although researcher generally attempts to minimize complexitycomplexity, some subject , some subject areas still requireareas still require relatively complex questionnaire.
relatively complex questionnaire.
•• For example, the sequence or number of questions asked For example, the sequence or number of questions asked often depends on the answer to often depends on the answer to previousprevious questions
questions Amount of Data Amount of Data
•• Closely related to the issue of complexity is Closely related to the issue of complexity is the amount of data to be generated by a the amount of data to be generated by a givengiven questionnaire.
questionnaire.
•• The amount of data actually involves two separate issues;The amount of data actually involves two separate issues; 1.
1. How mHow much tiuch time wime will it ll it take take to comto complete plete the ethe entire ntire questiquestionnaironnaire.e. 2.
2. How muHow much effch effort is rort is requirequired by the ed by the responrespondent tdent to complo complete tete the queshe questionntionnaireaire Accuracy of the resultant data
Accuracy of the resultant data
•• The accuracy of data obtained by The accuracy of data obtained by survey can be affected by a number of factors,survey can be affected by a number of factors, 1.
1. SeSensnsititivive Que Quesestitiononss 2.
Sample Control Sample Control
•• Each of the four interview techniques allow substantially different levels of control over who isEach of the four interview techniques allow substantially different levels of control over who is interviewed.
interviewed. Time Requirements Time Requirements
•• TTelephone surveys generally require elephone surveys generally require the least total time for the least total time for completion.completion.
•• Personal and computer interviews take substantially more time than telephone interviews.Personal and computer interviews take substantially more time than telephone interviews. •• Mall intercept interviews can be Mall intercept interviews can be done fairly rapidly.done fairly rapidly.
•• Mail survey tend to take the longest time.Mail survey tend to take the longest time. Response Rate
Response Rate
•• The response rate refers to the percentage The response rate refers to the percentage of the original sample that is interviewed.of the original sample that is interviewed. Cost
Cost
•• The cost of the survey varies with the type The cost of the survey varies with the type of interviewof interview.. Which Method to Use?
Which Method to Use?
•• ObviouslyObviously, no one method of survey data collection , no one method of survey data collection is best for all situations.is best for all situations.
•• An analysis of the all above mentioned factors will decide, “which An analysis of the all above mentioned factors will decide, “which method to use?”method to use?” Non Response Error in survey
Non Response Error in survey
•• Error caused by a difference between those who rError caused by a difference between those who r espond to a survey and those espond to a survey and those who do not iswho do not is termed non response error.
termed non response error.
•• Non response can involve an entire questionnaire or Non response can involve an entire questionnaire or a particular question in the questionnaire.a particular question in the questionnaire. Reducing non response in telephone and personal surveys
Reducing non response in telephone and personal surveys
•• Non response error is a Non response error is a potential problem for telephone, personal and computer interviews.potential problem for telephone, personal and computer interviews. •• Not at home and refusals are the Not at home and refusals are the major factors that reduce the response rate.major factors that reduce the response rate.
Reducing non response Reducing non response
•• MotivationMotivation •• RemindersReminders
•• Create interesting questionsCreate interesting questions •• Pre-notificationPre-notification
•• Type of postageType of postage
•• Pre paid monitory incentivesPre paid monitory incentives •• Lottery incentivesLottery incentives
•• Gift incentivesGift incentives
•• Identity of survey Sponsor Identity of survey Sponsor •• Type of AppealType of Appeal
•• Foot in the door Foot in the door •• Follow-up contactsFollow-up contacts
Strategies for dealing with non-response Strategies for dealing with non-response As an example, consider this decision rule:
As an example, consider this decision rule: if 20% or more of the population appear favorable, we willif 20% or more of the population appear favorable, we will introduce the new product. A mail survey is launched and provides a 50% return rate by
introduce the new product. A mail survey is launched and provides a 50% return rate by the end of thethe end of the second week. Of those responding, 44% favor the new
second week. Of those responding, 44% favor the new product. If the remaining 50% of the potentialproduct. If the remaining 50% of the potential
respondents were unfavorable, the projected percentage of favorable attitudes would still be 22%. Since this respondents were unfavorable, the projected percentage of favorable attitudes would still be 22%. Since this is more than the amount needed for a
is more than the amount needed for a “GO” decision, any attempt to generate additional responses would be“GO” decision, any attempt to generate additional responses would be a waste of resources.
a waste of resources.
Strategies for dealing with non-response Strategies for dealing with non-response
•• If the non respondents could alter the decision, the researcher If the non respondents could alter the decision, the researcher should use one (or more) of theshould use one (or more) of the following techniques.
following techniques. –
– Subjective EstimatesSubjective Estimates –
– Imputation EstimatesImputation Estimates –
– Trend AnalysisTrend Analysis –
– Measurement using sub samplesMeasurement using sub samples Subjective Estimates
Subjective Estimates
•• When it is no longer possible to When it is no longer possible to increase the response rate, the researcher increase the response rate, the researcher can estimatecan estimate subjectively the nature and effects of the non respondents.
subjectively the nature and effects of the non respondents.
•• That is the researcher based on That is the researcher based on the experience and nature of the survey, makes a subjectivethe experience and nature of the survey, makes a subjective evaluation of the probable effects of the non response error.
evaluation of the probable effects of the non response error. Imputation Estimates
Imputation Estimates
•• Imputation estimates involvImputation estimates involve imputing attributes to the non respondents based e imputing attributes to the non respondents based on theon the characteristics of other respondents.
characteristics of other respondents.
•• For example, a respondent who fails to report income maFor example, a respondent who fails to report income ma y be assigned the income of a ry be assigned the income of a r espondentespondent with similar demographic characteristics.
with similar demographic characteristics. Trend Analysis
Trend Analysis
Trends shown by respondents can be used
Trends shown by respondents can be used to estimate the characteristics or responses of the nonto estimate the characteristics or responses of the non respondents.
respondents.
Measurement using sub samples Measurement using sub samples
•• Sub sampling of the non respondents, has been Sub sampling of the non respondents, has been found effective in reducing the non response error.found effective in reducing the non response error.
END OF 6
Experimentation Experimentation
Definitions and Concepts Definitions and Concepts
•• Independent variables are variables or alternatives that are manipulated and Independent variables are variables or alternatives that are manipulated and whose effects are measured andwhose effects are measured and compared, e.g., price levels.
compared, e.g., price levels.
•• TTest units are individuals, organizations, or other entities est units are individuals, organizations, or other entities whose response to the independent variables or whose response to the independent variables or treatments is being examined, e.g.,
treatments is being examined, e.g., consumers or stores.consumers or stores.
•• Dependent variables are the variables which measure the effect of Dependent variables are the variables which measure the effect of the independent variables on the test units,the independent variables on the test units, e.g., sales, profits, and
e.g., sales, profits, and market shares.market shares.
•• Extraneous variables are all variables other than the Extraneous variables are all variables other than the independent variables that affect the response of the testindependent variables that affect the response of the test units, e.g., store size,
units, e.g., store size, store location, and competitive effort.store location, and competitive effort. Experimental Design
Experimental Design An
An experimental designexperimental design is a set of is a set of procedures specifyingprocedures specifying
–
– the test units and how these units are to be divided into homogeneous sub samples,the test units and how these units are to be divided into homogeneous sub samples, –
– what independent variables or treatments are to be what independent variables or treatments are to be manipulated,manipulated, –
– what dependent variables are to be what dependent variables are to be measured, andmeasured, and –
– how the extraneous variables are to be how the extraneous variables are to be controlled.controlled.
Potential Source of Experimental Error Potential Source of Experimental Error
•• Pre-measurementPre-measurement (Testing) (Testing) : : effect of effect of pre-measurpre-measurement on ement on dependendependent variablet variable
•• SelectionSelection: : nonequivalent experimentanonequivalent experimental & control groups, (statistical regression a special case)l & control groups, (statistical regression a special case) •• HistoryHistory: : impact of impact of any other any other events events between pre- between pre- and post mand post measures on easures on dependent variabledependent variable •• InteractionInteraction: : alteration of the “effect” due to interactioalteration of the “effect” due to interaction between treatment & pre-test.n between treatment & pre-test.
•• Maturation:Maturation: aging of subjects or measurement proceduresaging of subjects or measurement procedures •• Instrumentation:Instrumentation: changes in instruments between pre and post.changes in instruments between pre and post. •• MortalityMortality: loss of some subjects: loss of some subjects
•• Reactive error Reactive error - Hawthorne effect - - Hawthorne effect - artificiality of experimental situationartificiality of experimental situation
•• Measurement timingMeasurement timing - measure dependent variable at wrong time, - measure dependent variable at wrong time, miss effect.miss effect. •• Surrogate situationSurrogate situation: using population, treatment or situation different from “real” one.: using population, treatment or situation different from “real” one. Experimental Designs
Experimental Designs
Experimental Designs could be categorized into two broad groups: Experimental Designs could be categorized into two broad groups: Basic Designs that considers the impact of only
Basic Designs that considers the impact of only one independent variable at a time.one independent variable at a time. Statistical Designs that allow the evaluation of the e
Statistical Designs that allow the evaluation of the e ffect of more than one.ffect of more than one. Symbols
Symbols
•• MB = Pre-measurementMB = Pre-measurement •• MA = Post-measurementMA = Post-measurement •• X = TreatmentX = Treatment
•• R = Designation that group R = Designation that group is selected randomly.is selected randomly.
Basic Experimental Designs Basic Experimental Designs
•• After-Only DesignAfter-Only Design •• Before-AfteBefore-After r DesignDesign •• Before-AfteBefore-After with r with ControlControl
•• Simulated Before-After DesignSimulated Before-After Design •• After-Only with ControlAfter-Only with Control
•• Solomon Four-Group DesignSolomon Four-Group Design
Statistical Designs Statistical Designs
•• Randomized Blocks DesignRandomized Blocks Design •• Latin Square DesignLatin Square Design •• Factorial DesignFactorial Design
Ex Post Facto Studies Ex Post Facto Studies
•• The term ex post facto according to Landman (1988: 62) is used to refer to an experiment in which theThe term ex post facto according to Landman (1988: 62) is used to refer to an experiment in which the
researcher
researcher, rather than creating the treatment, examines the effect of a , rather than creating the treatment, examines the effect of a naturally occurring treatment after it hasnaturally occurring treatment after it has occurred. In other words it is
occurred. In other words it is a study that attempts to discover the pre-existing causal conditions betweena study that attempts to discover the pre-existing causal conditions between groups. groups. Experimental Environment Experimental Environment Laboratory Experiments Laboratory Experiments
•• Experiments in which the experimental treatment is introduced in an Experiments in which the experimental treatment is introduced in an artificial or laboratory settingartificial or laboratory setting
•• Tend to beTend to be artificial artificial
•• Testing effect Testing effect exists as respondents are aware of being in a test and may not respond naturallyexists as respondents are aware of being in a test and may not respond naturally
•• Results may not have external validityResults may not have external validity
•• Least costly and allow experimenter greater control over the experimentLeast costly and allow experimenter greater control over the experiment •• Alternative explanations of results are reduced, increasing internal validityAlternative explanations of results are reduced, increasing internal validity
Field Experiments Field Experiments
•• Research study in which one or Research study in which one or more independent variables are manipulated by the experimenter under more independent variables are manipulated by the experimenter under
carefully controlled conditions as the situation will permit carefully controlled conditions as the situation will permit
•• Experimental treatment or intervention introduced in a Experimental treatment or intervention introduced in a completely natural settingcompletely natural setting
Response tends to be natural Response tends to be natural
•• Difficult to controlDifficult to control
•• Competing explanations for results existCompeting explanations for results exist
Test Market Test Market
•• The ultimate way to test a new consumer product is to put it into full-blown test markets. The ultimate way to test a new consumer product is to put it into full-blown test markets. The company choosesThe company chooses a few representative cities, and the sales force tries to sell the trade on carrying the product and giving it good a few representative cities, and the sales force tries to sell the trade on carrying the product and giving it good shelf exposure, full advertising and promotional strategy, similar to the one use in
shelf exposure, full advertising and promotional strategy, similar to the one use in the home market.the home market.
END OF Experimentation
END OF Experimentation
Measurement in (Marketing) Research Measurement in (Marketing) Research Concept of Measurement
Concept of Measurement
•• Standardized process of assigning numbers or other sStandardized process of assigning numbers or other s ymbols to certain characteristics of objects of ymbols to certain characteristics of objects of interest, according to pre-specified rules
interest, according to pre-specified rules Scaling
Scaling
•• Process of creating a continuum on which Process of creating a continuum on which objects are located according to the amount of theobjects are located according to the amount of the measured characteristic possessed
measured characteristic possessed •• Type of scales:Type of scales:
– – NominalNominal – – OrdinalOrdinal – – IntervalInterval – – RatioRatio Nominal Scale Nominal Scale
•• Comprised of numbers used to categorize objects or Comprised of numbers used to categorize objects or events.events. •• No necessary relationships among categoriesNo necessary relationships among categories
•• No ordering or spacing are No ordering or spacing are impliedimplied
•• Only possible arithmetic operation is a count of each cOnly possible arithmetic operation is a count of each c ategoryategory Are you a
Are you a resident of North America?resident of North America? Y Yeses No No Are you Are you 1) Asian 1) Asian 2) African-American 2) African-American 3) Hispanic 3) Hispanic 4) European 4) European 5) Other 5) Other Ordinal or Rank Scale Ordinal or Rank Scale
•• Ranks objects or arranges them in order Ranks objects or arranges them in order by some common variableby some common variable
•• Does not provide information on how much difference there is between objectsDoes not provide information on how much difference there is between objects •• Arithmetic operations are limited to statistics such as median or modeArithmetic operations are limited to statistics such as median or mode
Rank your preferences for the foll
Rank your preferences for the following attributes in making owing attributes in making a a car purchase decisioncar purchase decision P Prriiccee ---S Saaffeettyy ---D Deessiiggnn ---Fu
Fuel el ececononoomymy --- --Interval Scale
Interval Scale
•• Numbers used to rank objects also Numbers used to rank objects also represent equal increments of the attribute being measuredrepresent equal increments of the attribute being measured •• Differences can be comparedDifferences can be compared
•• Entire range of statistical operations can be employed for analysEntire range of statistical operations can be employed for analys isis On a scale of 1
On a scale of 1 to 7, how would you rate to 7, how would you rate the performance of natural gas as home heating fuel the performance of natural gas as home heating fuel in terms of in terms of reliability of supply? (1 being least reliable and
reliability of supply? (1 being least reliable and 7 being most reliable)7 being most reliable)
1 2 3 4 5 6 7
1 2 3 4 5 6 7
Ratio Scale Ratio Scale
•• Type of interval scale with meaningful zero Type of interval scale with meaningful zero pointpoint
•• Possible to say how many times greater or Possible to say how many times greater or smaller one object is than another smaller one object is than another •• Only scale that permits comparisons of absolute magnitudeOnly scale that permits comparisons of absolute magnitude
How old are you? _________ How old are you? _________ Components of measurement Components of measurement Table 9—5 Table 9—5 Accuracy of Measurements Accuracy of Measurements •• ReliabilityReliability •• ValidityValidity Reliability Reliability
•• Test-retest reliability:Test-retest reliability: applying the same measure to the same object a applying the same measure to the same object a second time.second time.
•• Alternative-form reliability: Alternative-form reliability: measuring the same object by two instruments that are designed measuring the same object by two instruments that are designed toto be as nearly alike as possible.
be as nearly alike as possible.
•• Internal-compariInternal-comparison son reliability:reliability: comparing the response among the various items on a multiplecomparing the response among the various items on a multiple item index designed to measure a homogenous concept.
•• Scorer reliability:Scorer reliability: comparing the scores assigned the same qualitative material by two or comparing the scores assigned the same qualitative material by two or moremore judges.
judges. Validity
Validity
•• VValidityalidity, like reliability, is concerned with , like reliability, is concerned with error. However it is concerned with error. However it is concerned with consistent or consistent or systematic error rather than
systematic error rather than variable error.variable error. •• Content validityContent validity
•• Criterion validityCriterion validity •• Construct Construct VValidityalidity
END OF Measurement
END OF Measurement
Information Collection: Qualitative and Observational Methods Information Collection: Qualitative and Observational Methods Marketing Research
Marketing Research
Qualitative and
Qualitative and ObservationObservational Methodsal Methods Qualitative Methods
Qualitative Methods
Recommended to capture the basic feel of a problem prior to conducting more analytical study Recommended to capture the basic feel of a problem prior to conducting more analytical study Observational Methods
Observational Methods
Limited to providing information on current behavior Limited to providing information on current behavior Qualitative Research Methods
Qualitative Research Methods
Exploratory: Conducted primarily to explicitly define the problem and formulate hypotheses Exploratory: Conducted primarily to explicitly define the problem and formulate hypotheses Orientation: T
Orientation: To learn o learn more about target more about target customer (e.g. Culture, language) customer (e.g. Culture, language) ClinicalClinical T
To gain insights into o gain insights into topics that are difficult in a topics that are difficult in a structured researchstructured research Four major constraints:
Four major constraints: –
– Volume of dataVolume of data –
– Complexity of analysisComplexity of analysis –
– Detail of clarification recordDetail of clarification record –
– Time-Time-consuming nature of consuming nature of the clerical efforts requiredthe clerical efforts required
•• Computer technology helps alleviate these problems and Computer technology helps alleviate these problems and increase the use of increase the use of qualitativequalitative research
research
Use of Computers in Qualitative Research Use of Computers in Qualitative Research
•• TransmittingTransmitting •• StoringStoring •• CodingCoding
•• Searching and RetrievingSearching and Retrieving •• Building RelationshipsBuilding Relationships •• Matrix BuildingMatrix Building
Individual In-depth Interviews Individual In-depth Interviews •• Nondirective interviewsNondirective interviews
–
– Respondent given maximum freedom to respondRespondent given maximum freedom to respond •• Semi-structureSemi-structured or d or focused individual interviewsfocused individual interviews
–
– Covers a specific list of topics or sub-areasCovers a specific list of topics or sub-areas Focus Group Discussions
Focus Group Discussions
•• Offers participants more stimulation than an interview; makes new ideas and Offers participants more stimulation than an interview; makes new ideas and meaningfulmeaningful comments more likely
comments more likely •• Issues to be addressed:Issues to be addressed:
–
– Outlining the intended direction of the Outlining the intended direction of the groupgroup
Marketing Research Marketing Research
P
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Q
