Consumers Rule

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Transcript Consumers Rule

Marketing Research:
Gathering, Analyzing, and
Using Information
Chapter Objectives
• Explain the role of the marketing information system
and the marketing decision support system in
marketing decision making
• List and explain the steps in the marketing research
• Appreciate the differences among exploratory,
descriptive, and casual research
• Describe the different types of data-collection methods
and types of consumer samples that research use
• Understand the impact of the growing use of online
Real People, Real Choices
• Meet Cindy Turgate at Plan-it Marketing, a
marketing research firm
• Priceline needed help in planning its business.
Would its name-your-own-price strategy fly?
• The decision: What marketing research strategy
would maximize results within a reasonable
 Option 1: conduct exploratory qualitative study
 Option 2: conduct quantitative survey of 700+ leisure and
business travelers
 Option 3: conduct viability study with both qualitative
exploratory study and confirmatory quantitative study
Knowledge is Power
• Accurate, up-to-date, relevant information
is the fuel that runs the marketing engine
The Marketing Information System
• Determines what information marketing
managers need, then gathers, sorts,
analyzes, stores, and distributes
information to system users
Internal Company Data
• Information from within the company to
produce reports on the results of sales and
marketing activities
• Intranet: internal corporate
communications network that links
company departments, employees, and
Marketing Intelligence
• Monitoring everyday sources and using
“mystery shoppers”
• Futurists specialize in predicting consumer
Marketing Research
• Collecting, analyzing, and interpreting data
about customers, competitors, and the
business environment to improve
marketing effectiveness
 Syndicated research
 Custom research
Acquired Databases
• From other companies
• Government databases
• Misuse of databases can be problematic
and has led to do-not-call lists and
antispam laws
Marketing Decision Support Systems
• MDSS: data plus analysis and interactive
software allow marketing managers to
access MIS data and conduct analyses
Searching for Gold: Data Mining
• Analysts sift through data to identify
unique patterns of behavior among
different customer groups
What Marketers Can Do with
Data Mining
Customer acquisition
Customer retention and loyalty
Customer abandonment
Market basket analysis
Steps in the Marketing
Research Process
• Step 1: Define the research problem
 Specifying research objectives
 Identifying consumer population of interest
 Placing the problem in an environmental context
• Step 2: Determine the Research Design
 Specifying exactly what information marketers will
collect and what type of study they will do
Figure 4.5:
Marketing Research Design
Secondary Versus Primary Research
• Secondary data have been collected for
some purposes other than the problem at
• Primary data is information collected
directly from respondents to specifically
address the question at hand
Exploratory (Qualitative) Research
• Research techniques that generate
insights for future, more rigorous studies
• Researchers conduct one-on-one
discussions with consumers
• Focus group: a product-oriented
discussion among a small group of
Exploratory (Qualitative) Research
• Projective techniques: participants
respond to some object
• Case study: comprehensive examination
of a particular firm
• Ethnography: Marketers visit homes or
participate in consumer activities to learn
how products are used
Descriptive (Quantitative) Research
• Probes systematically into the problem
• Bases conclusions on large numbers of
• Results typically expressed in quantitative
terms (averages, percentages, other stats)
 Cross-sectional design
 Longitudinal design
Causal Research
• Cause-and-effect relationships: a change
in one thing causes a change in something
 Independent (cause) vs. dependent (change in
outcome) variables
 Experiments: test predicted relationships among
variables in a controlled environment
Steps in the Marketing Research
Process (cont’d)
• Step 3: Choose the Method for Collecting
Primary Data
 Survey Methods: interview respondents
 Questionnaires: loosely, moderately, or completely
Mail questionnaires
Telephone interviews
Face-to-face interviews
Online questionnaires
Observational Methods
• Observation: data collection where the
researcher records consumers’ behaviors,
often without their knowledge
 Personal observation
 Mechanical observation
 Unobtrusive measures
Data Quality:
Garbage In, Garbage Out
• How much faith should marketing
managers place in research?
 Validity
 Reliability
 Representativeness
Online Research
• Information gathered via consumer surfing
and Web site/email/chat room
questionnaires/focus groups
• Cookies allow a Web sponsor to track a
surfer’s moves
Online Research Applications
New product development
Estimating market response
Exploratory research (online focus groups)
IM (Instant Messaging)
Advantages of Online Data Collection
• The same amount of data in a fraction of
the time
• Convenience of survey completion
• Elimination of interviewer bias and data
entry errors
Disadvantages of
Online Data Collection
• Non-representativeness of respondents
• Limited computer access for poor and
• Self-selection bias (people who like to take
part in online studies)
• Hackers and competitors
influencing/intercepting results
Step 4: Design the Sample
• Probability sample
• Each member of the population has some
known chance of being included
• Sample is representative of population, and
inferences about population are justified
• - Simple random sampling *Christine: these
three should be lower-level (black)*
• - Systematic sampling
• - Stratified sampling
Step 4: Design the Sample (cont’d)
• Nonprobability sample
• Personal judgment used in selecting
• Some members of population have no chance of
being included
• No way to ensure that sample is representative
of population
 Convenience sampling
 Quota sampling
Step 5: Collect the Data
• Challenges to gathering data in foreign
 Differences in sophistication of research operations
 Infrastructure/transportation challenges
 Lack of phones
 Low literacy rates
 Local customs and cultural differences
 Language translation difficulties
Step 6: Analyze and
Interpret the Data
• Data need analysis for them to have
• Tabulation: arranging data in a table or
other summary form to get a broad picture
of overall responses
• Cross-tabulation: examining the data by
subgroups to see how results vary
between categories
Step 7: Prepare the Research Report
• Executive summary
• Description of research methodology
• Discussion of results including tabulations,
• Limitations of study
• Conclusions and recommendations
Real People, Real Choices
• Plan-it Marketing (Cindy Turgate)
• Cindy chose option 3: conduct viability
study with both qualitative exploratory
study and confirmatory quantitative study
 was launched nationally in April 1998,
and it continues to flourish
Keeping It Real: Fast Forward to Next
Class Decision Time at Wild Planet
• Meet Danny Grossman, CEO and founder
of Wild Planet Toys.
• Room Gear: a product line that lets kids
decorate their rooms met with sharply
different gender appeals
• The decision: the future direction of the
Room Gear line