Transcript Week 1

An Introduction to
Research Methods
Marketing research provides information to
help implement…
• The Study of Marketing
• The Use of the Marketing Concept
• Marketing Strategy
Let’s look at each of these in turn
Marketing research provides information to
help implement…
• Marketing: process of all activities necessary for
the conception, pricing, promotion, and
distribution of ideas, goods, and services to
create exchanges that satisfy individual and
organizational objectives
Marketing research provides information to
help implement…
• Marketing Concept: the business philosophy that
holds the key to achieving organizational goals
consists of determining the benefits sought by
target market members and delivering these
benefits more effectively & efficiently than
competitors. This is to be done at a “profit.”
Marketing research provides information to
help implement…
• Marketing Strategy: consists of selecting one or
more segments of the market as the company’s
target market(s) and designing the proper “mix”
of the “4Ps”
Key Point: To practice marketing; to
implement the marketing concept; to carry
out a marketing strategy, managers must make
informed decisions.
Many decisions require additional information
and marketing research may be needed in
order to supply that information.
What is marketing research?
• Marketing research: is the process of designing,
gathering, analyzing, and reporting information
that may be used to solve a specific marketing
problem. (Burns & Bush)
…is the function that links the consumer, customer, and public to the
marketer through information—information used to identify and
define marketing opportunities and problems; generate, refine,
and evaluate marketing actions; monitor marketing performance;
and improve the understanding of marketing as a process. (AMA)
What is online research?
• Online research: the use of computer networks,
including the Internet, to assist in any phase of
the marketing research process including
development of the problem, research design,
data gathering, analysis, and report writing and
distribution
What is online research?
• Web-based research: research that is conducted
to evaluate various facets of Web applications;
may use traditional methods as well as on-line
research methods in conducting research on
Web-based applications
• Online survey research: collection of data using
computer networks
Marketing Information System
• Marketing Information System (MIS): a structure
consisting of people, equipment, and procedures
to gather, sort, analyze, evaluate, and distribute
needed, timely, and accurate information to
marketing decision makers
Components of an MIS
• Internal Reports System … existing
organization/company reports and records
(sometimes called “accounting information
system”)
• Marketing Intelligence System … everyday info
about pertinent developments in the environment
Components of an MIS
• Decision Support System (DSS) … collected
data that may be accessed and analyzed using
tools and techniques that assist managers in
decision making (“playing what if?”).
• Marketing Research System…provides
information not available from other systems.
When specific problem must be solved,
marketing research may be needed. This is
“project-based” not continuous as with other
systems.
The Marketing
Research Industry
Marketing Research: A Brief History
• Pre-Marketing Research Era: colonization to the
Industrial Revolution
• Early Development Era: Industrial Revolution to 1920
• Questionnaire Era: 1920-1940
• Quantitative Era: 1940 to 1960
• Organizational Acceptance Era: 1960 to 1980
• PC Technology Era: 1980 to 1990
• Globalization-Online Era: since 1990
Some Figures for
Marketing Research Sector
 15.890 million USD (2002/WORLD)
 ABD -------- 39% ----- 6159 million USD
 AB----------- 37%
 39% is shared by 10 marketing research companies
 51% is spent by the first 25 biggest companies
 31% syndicated research
 19% qualitative research
 The rest is quantitative research
Top 10 U.S. Marketing Research
Firms
U.S.
Rank
2004 2003
1
1
Organization
Headquarters
Website
($, in millions)
($, in millions)
revenue
VNU Inc.
New York
www.vnu.com
$1,794.4
$3,429.2
47.7%
2
2
IMS Health Inc.
Fairfield, Conn.
www.imshealth.com
571.0
$1,569.0
63.6
3
4
Westat Inc.
Rockville, Md.
www.westat.com
397.8
397.8
—
4
5
TNS U.S.
New York
www.tns-global.com
396.0
1,732.7
77.2
5
3
Information Resources Inc.
Chicago
www.infores.com
379.6
572.8
33.6
6
6
The Kantar Group
Fairfield, Conn.
www.kantargroup.com
365.7*
1,136.3*
67.8*
7
7
Arbitron Inc.
New York
www.arbitron.com
284.7
296.6
4.0
8
8
NOP World US
New York
www.nopworld.com
213
408.5
47.9
9
9
Ipsos
New York
www.Ipsos-na.com
193.9
752.8
74.2
10
10
Synovate
Chicago
www.synovate.com
193.5
499.3
61.3
Marketing Research Sector in Turkey
Pazarlama ve Kamuoyu Araştırmacıları Derneği (1988)
– Setting ethical and professional standards and measures
– Organising seminars and making publications to up-date
members about progresses in marketing research area
– GAB: Guvenilir Arastirma Belgesi
-Bureau Veritas Audit
– Individual members – approx. 400
– Member companies - 52
Marketing Research Sector in Turkey
Syndicated Research
• AGB : Daily, weekly and monthly reports
– Percentages and other statistics about TV programme
consumption habits of target segments
• Bilişim International Research Org.: Monthly advertising
expenditure research
• HTP Research and Consulting Services: Household panels on
consumption
– Weekly visits, monthly reports, 12 major cities, 4500
households
• Information Resources Inc/Panel : Retailer audits
– Electronic data collection – Retailer information
Industry Structure: Internal Suppliers
• Internal suppliers: an entity within the firm supplies
marketing research
• Methods of Organization:
• Own formal departments: Organized around:
• Marketing function: ad research, product research, pricing
research, channel …
• Research process: data analysis, data collection…
• Area of application: brands, customers, etc.
• Single individual or committee
• In some cases no one is specifically assigned such
tasks on a full time basis
Industry Structure: External Suppliers
• External suppliers: outside firms hired to fulfill a firm’s
marketing research needs
• Methods of Organization:
• Function: data analysis, data collection, etc.
• Type of research application: ad research, etc.
• Geography: domestic, international, etc.
• Type of customer: finance, health
• Combination of the above
• Classification:
• Full-service
• Limited service…see next slide
Selected Marketing Research
Career Descriptions
Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of analyst, junior analyst, & other personnel in the
development of research design and data collection
• Prepares final report
Analyst
• Handles details in execution of
project
• Designs & pretests questionnaires
• Conducts preliminary analysis of data
Junior Analyst
• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data
Statistician/Data Processing
• Serves as expert on theory and
application on statistical techniques
• Oversees experimental design, data
processing, and analysis
Fieldwork Director
•Handles selection, training,
supervision, and evaluation of
interviewers and field workers
Improving Industry Performance
• Industry is performing well but could stand some
improvements
• Focus on diagnosing problems in the market instead of
rushing to test a product/service (The Walkman, developed
without MR, was created to solve need for portability. Sony
diagnosed a need in the market).
•
Need to use IT to speed up MR process
• Research efforts should be integrated..too splintered
• MR needs to be involved in strategic decisions (Should we
be in this business v. Is this the best product feature?) Too
often, MR is used to test tactics.
Other Suggestions For Industry Improvements
• Certification…Being promoted by AMA
• Auditing…Being used in other areas, i.e. Advertising..audits
websites via Audit Bureau of Circulations.
• Education…MR industry has made much progress here.
Examples include: AMA’s Notre Dame School of Marketing
Research, Burke Institute, Advertising Research Foundation
seminars, etc.
Criteria for Selecting a Research
 What is the reputation
of the supplier?
Supplier





Do they complete projects on schedule?
Are they known for maintaining ethical standards?
Are they flexible?
Are their research projects of high quality?
What kind and how much experience does the supplier
have? Has the firm had experience with projects similar to
this one?
 Do the supplier's personnel have both technical and nontechnical expertise?
 Can they communicate well with the client?
Competitive bids should be compared on the basis of
quality as well as price.
Ethics and Marketing Research
• AMA Code of Ethics
• Prohibits selling (sugging) or fund raising (frugging)
under the guise of conducting research
• Maintaining research integrity by avoiding
misrepresentation and omission of pertinent research
data
• Treating others (buyers and suppliers) fairly
Buyers: Being sold unnecessary research, supplier firms
sharing buyer’s confidential information.
Suppliers: Being asked for quick answers, not being paid by
buyers
Ethics and Marketing Research
• The Public: Should researchers be asked to
conduct research on consumption of potentially
dangerous products?
– For example, doing research to find ways to increase
consumption of high-sugar and/or high-fat content
products by kids or ways to increase tobacco use by
teens?
Ethics and Marketing Research
• Respondents – example, study finds that refusal rates
are climbing often because public is wary of losing
privacy.
• Deception should be eliminated.
• Respondents should not be identified if they are
promised anonymity/confidentiality
• Invasions of privacy (permission issue); marketing
research should not invade a person’s privacy…
• Respondents should have right to choose to participate
Ethics and Marketing Research
Invasion of Privacy
– SPAM; sending unwanted email
– Industry currently debating opt-out vs. opt-in (“active
consent”) standards (opt-in much stricter)
– Online Survey Research: Abused respondents via
SPAM initially.
• Today, industry is a leader in anti-spam
legislation. Researchers must have a preexisting
relationship with potential online respondents and
the respondents must have a reasonable
expectation that they will be contacted via email.
Ethics and Marketing Research
• Your ethical views are shaped by your
philosophy:
• Deontology: concerned with the rights of
the individual
• Simply following the correct moral rules is often not
sufficient; instead, we have to have the correct
motivations.
• Teleology: analyzes a given behavior in
terms of its benefits and costs to society
Ethics and Marketing Research
• Your ethical views are shaped by your philosophy:
are these actions “ethical” or not – why?
• Observation study – choosing product in
supermarket
• Observation study – buying shoes in store
• Focus group with client representatives
watching; participants not informed
Marketing Research Associations
Online
US
AAPOR : American Association for Public Opinion Research
(www.aapor.org)
AMA
: American Marketing Association (www.ama.org)
ARF
: The Advertising Research Foundation
(www.amic.com/arf)
CASRO : The Council of American Survey Research
Organizations (www.casro.org)
MRA
: Marketing Research Association (www.mra-net.org)
QRCA
: Qualitative Research Consultants Association
(www.qrca.org)
RIC
: Research Industry Coalition
(www.researchindustry.org)
Marketing Research Associations
Online
International
ESOMAR: European Society for Opinion and Marketing
Research (www.esomar.nl)
MRS:
The Market Research Society (UK)
(www.marketresearch.org.uk)
MRSA:
The Market Research Society of
Australia (www.mrsa.com.au)
PMRS:
The Professional Marketing Research Society
(Canada) (www.pmrs-aprm.com)
The Marketing
Research Process
The Marketing Research Process: 11 Steps
• Step One:
•
•
•
•
Step Two:
Step Three:
Step Four:
Step Five:
• Step Six:
Establishing the Need for Marketing
Research
Defining the Problem
Establishing Research Objectives
Determining Research Design
Identifying Information Types and
Sources
Determining Methods of Accessing
Data
The Marketing Research Process: 11 Steps
cont…
•
•
•
•
•
Step Seven:
Step Eight:
Step Nine:
Step Ten:
Step Eleven:
Designing Data Collection Forms
Determining Sample Plan and Size
Collecting Data
Analyzing Data
Preparing and Presenting the Final
Research Report
The Marketing Research Process
Step One: Establish the Need for Marketing Research
• Marketing Research is not needed when the:
• required information is already available
• decisions need to be made now
• organization can’t afford the research
• costs outweigh the value of the research
The Marketing Research Process
Step Two: Define the Problem
• The most important step in the marketing
research process is defining the problem.
Chain Restaurant Study
One day I received a
phone call from a
research analyst who
introduced himself as
one of our alumni.
He was working for a
restaurant chain in town
and wanted help
analyzing the data he
had collected while
conducting a marketing
research study.
Chain Restaurant Study
When we met, he presented me with a copy of
the questionnaire and asked how he should
analyze the data. My first question to him was,
Chain Restaurant Study
When he looked
perplexed, I
explained that
data analysis is not
an independent
exercise.
Rather, the goal of data analysis is to PROVIDE
INFORMATION RELATED TO THE PROBLEM
COMPONENTS.
Chain Restaurant Study
I was surprised to learn that he
did not have a clear understanding
of the marketing research problem
and that a written definition did
not exist. So before going any
further, I had to define the
marketing research problem.
Once that was done, I found that
much of the data collected was not
relevant to the problem. In this
sense, the whole study was a waste
of resources. A new study had to be
designed and implemented to
address the problem defined.
The Problem Definition Process
Tasks Involved
Fig. 2.1
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Environmental Context of the Problem
Step I: Problem Definition
Management Decision Problem
Marketing Research Problem
Step II: Approach to the Problem
Objective/
Theoretical
Foundations
Analytical
Model: Verbal,
Graphical,
Mathematical
Research
Questions
Hypotheses
Step III: Research Design
Specification
of
Information
Needed
The Marketing Research Process
Step Three: Establish Research Objectives
• What information is needed in order to solve the
problem?
The Marketing Research Process
Step Four: Determine Research Design
• Exploratory Research: collecting information in an
unstructured and informal manner
• Descriptive Research: refers to a set of methods
and procedures describing marketing variables
• Causal Research (experiments and other
approaches): allows isolation of causes and
effects
The Marketing Research Process
Step Five: Identify Information Types and Sources
• Secondary Data: information that has been
collected for some purpose other than the
research at hand
• Primary Data: information that has been gathered
specifically for the research objectives at hand
The Marketing Research Process
Step Six: Determine Methods of Accessing Data
• Secondary Data: accessing data through sources
such as the Internet and library
• Primary Data: collecting data from participants
through methods such as telephone, mail, online,
and face-to-face (quantitative), and observation
studies and focus groups (qualitative)
The Marketing Research Process
Step Seven: Design Data Collection Forms
• The design of the data collection form that is
used to ask or observe and record information in
marketing research projects is critical to the
success of the project.
• It is easy to write a set of questions but very
difficult to construct a questionnaire.
• General types of “instruments” (forms)
• Questionnaires
• Observation Study forms (protocols)
The Marketing Research Process
Step Eight: Determine Sample Plan and Size
• Sample plan: refers to the process used to select
units from the population to be included in the
sample
• Sample size: refers to determining how many
elements (units) of the population should be
included in the sample
The Marketing Research Process
Step Nine: Collect Data
• Sound data collection is very important
because, regardless of the data analysis
methods used, data analysis cannot “fix” bad
data.
Nonsampling errors may occur during data
collection. These are related to poor design
and/or execution of the data gathering.
• Sampling errors may occur based purely on
chance
The Marketing Research Process
Step Ten: Analyze Data
• Data analysis: involves entering data into
computer files, inspecting data for errors (data
cleaning), running tabulations (frequencies), and
conducting various statistical tests
The Marketing Research Process
Step Eleven: Prepare and Present the Final
Research Report
• Findings are presented, often by research
objective, in a clear and concise way.
• The need for a good report cannot be overstated.
It is the report, and/or its presentation, that
properly communicates the results to the client.
The Marketing Research Report
•
•
•
•
•
•
Executive summary
Background
Problem definition
Research objectives
Research design
Fieldwork/data collection
•
•
•
•
Data analyses
Recommendations
Cost and timetable
Research organisation
and researchers
• Appendices
• Agreement
Example Study
Department Store Project
Department Store Project
• RQ: Do the customers of Sears exhibit store loyalty?
• H1: Customers who are store-loyal are less
knowledgeable about the shopping environment.
• H2: Store-loyal customers are more risk-averse than
are non-loyal customers.
Department Store Project
Specification of Information Needed
Component 1
• The researcher identified the following factors as part of the choice
criteria: quality of merchandise, variety and assortment of
merchandise, returns and adjustment policy, service of store
personnel, prices, convenience of location, layout of store, credit
and billing policies. The respondents should be asked to rate the
importance of each factor as it influences their store selection.
Component 2
• The researcher identified nine department stores as competitors to
Sears based on discussions with management. The respondents
should be asked to evaluate Sears and its nine competitors on the
eight choice criteria factors.
Department Store Project
Component 3
• Sixteen different product categories were selected,
including women's dresses, women's sportswear, lingerie
and body fashion, junior merchandise, men's apparel,
cosmetics, jewelry, shoes, sheets and towels, furniture and
bedding, and draperies. The respondents should be asked
whether they shop at each of the ten stores for each of the
16 product categories.
Component 4
• No additional information needs to be obtained from the
respondents.
Department Store Project
Component 5
• Information should be obtained on the standard
demographic characteristics and the psychographic
characteristics of store loyalty, credit use, appearance
consciousness, and combining shopping with eating.
Component 6
• No additional information needs to be obtained from
the respondents.
At United, Food Is Uniting
the Airline with Travelers
United Airlines, as other major airlines, had to deal with
passenger loyalty (management decision problem: how
to attract more and more loyal passengers). The broad
marketing research problem was to identify the factors
that influence loyalty of airline travelers.
At United, Food Is Uniting the
Airline with Travelers
The basic answer is to improve service. Exploratory
research, theoretical framework, and empirical evidence
revealed that the consumers’ choice of an airline is
influenced by: safety, price of the ticket, frequent-flyer
program, convenience of scheduling, and brand name.
At United, Food Is Uniting the Airline
with Travelers
A graphical model stipulated that
consumers evaluate competing airlines
based on factors of the choice criteria to
select a preferred airline. The problem
was that major airlines were quite
similar on these factors. Indeed,
"airlines offer the same schedules, the
same service, and the same fares.”
Consequently, United Airlines had to find
a way to differentiate itself. Food turned
out to be the solution.
At United, Food Is Uniting the
Airline with Travelers
Secondary data, like the J. D Power & Associates'
survey on "current and future trends in the airline
food industry," indicated that "food service is a major
contributor to customers’ loyalty." This survey also
emphasized the importance of food brands.
At United, Food Is Uniting the Airline
with Travelers
The airline's Marketrak survey told United Airlines that
"customers wanted more varied and up-to-date food.”
The following research questions and hypotheses may be
posed.
RQ1
How important is food for airline customers?
H1:
Food is an important factor for airline travelers.
H2:
Travelers value branded food.
H3:
Travelers prefer larger food portions, but with
consistent quality.
H4:
Travelers prefer exotic food.
At United, Food Is Uniting the Airline
with Travelers
Characteristics that influence the research design
included the identification of competing airlines (Delta,
American, etc.), factors of the choice criteria (already
identified), measurement of airline travel, and loyalty.
At United, Food Is Uniting the Airline
with Travelers
This kind of research helped United Airlines define their marketing
research problem and develop the approach. Focus groups and
surveys were conducted to check customers' perceptions of food in
United Airlines' aircraft. The results provided support for all the
hypotheses (H1 to H4). United Airlines then made a few changes:
new "culinary menus," larger portions of food, new coffee, and
branded products (e.g., Godiva chocolates). This resulted in better
service, increasing customer satisfaction and fostering loyalty.
International Marketing Research
Examining the impact of the SelfReference Criterion (SRC)
1.
Define the marketing research problem in
terms of domestic environmental and cultural factors.
2.
Define the marketing research problem in terms of foreign
environmental and cultural factors. Make no judgments.
3.
Isolate the self-reference criterion (SRC) influence on the
problem and examine it carefully to see how it complicates
the problem.
4. Redefine the problem without the SRC influence and
address it for the foreign market situation.