08 f10 market research
DESCRIPTION
Market researchTRANSCRIPT
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 1
MARKETING RESEARCH AND MARKETING INFORMATION SYSTEMS
• Marketing Information Systems (MkIS)
• Primary vs. secondary data– Advantages and
disadvantages of each• Marketing research
tools
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 2
Learning Objectives
• Appreciate the costs and benefits of research
• Appreciate the uses of both primary and secondary market research
• Appreciate the respective advantages and disadvantages of different primary research methods
• Develop an understanding of research method problems that can lead to misleading or incorrect conclusions.
• Understand the proper sequence of research activities.
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 3
Marketing Research
• An “investment” to reduce uncertainty
• Can help guide decisions on– Whether to enter– Product characteristics– Promotional strategy– Positioning
• Must weigh costs and benefits of research– Money– Time spent
• No perfect method—tradeoffs between methods
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 4
Marketing Information Systems (MkIS)
• Set of procedures and methods for regular collection and analysis of information for marketing decisions– Databases (internal information
—e.g., sales volumes)– Market research
• Primary• Secondary
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 5
Data Mining
• Processing of vast amounts of data to find relationships between variables—e.g.,– Items frequently purchased together
“strategic adjacencies” (items placed together in retail setting)
– Seasonal patterns in sales– Customer segments
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 6
Two Research Methods
• Secondary: use of existing research already done– Internal
• Information System content—e.g., sales/order records
– External• Government• Consulting firms• Newspaper and magazine articles
• Primary: creation of specific studies to answer specific questions
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 7
Market Research Sequence
Identify problem or opportunity
Plan researchdesign and collect data
Collect data
Analyzedata
Report andpresent results
Text, p. 169
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 8
Primary Research Methods
• Surveys• Experimentation• Observation• Focus groups• In-depth interviews• Projective techniques• Physiological Measures• Online research• Scanner data• Hybrid Methods
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 9
Primary Research Methods
• Exploratory Methods– Observation (can be
more definitive with larger sample sizes and focus on specific behavior)
– In-depth interviews– Focus groups– Projective techniques
• Precision Methods (“Conclusive”)– Experiments– Surveys– Panel– Scanner data
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 10
Surveys
• Forms– Mail (self-administered, single
time)– Mail panel (self-administered,
multiple surveys administered over time)
– Telephone (from central location)– Mall Intercept– Computer/Internet
• Planned questions– Open-ended– Closed-ended
• Need large sample sizes for precise conclusions
SURVEY COSTS:USUALLY LOW
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 11
Characteristics of Some Problematic Questions• Difficult to answer—respondent may
not have knowledge needed– Amounts spent annually on specific
product categories may not be known
• Sensitive (embarrassing)• Two in one—e.g., “On a scale from 1
to 10, how fast and reliable are Microsoft programs?”
• Leading questions—giving the feeling of the “desired” response– “Do you agree that soft drinks with sugar
are bad for you?”
• Non-exhaustive question• Non-mutually exclusive answers
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 12
Continuum Questions
• Questions rating the degree of a characteristic (e.g., agreement or product usage) tend to be more effective than binary “Yes/No” questions
• E.g.,
5 4 3 2 1Strongly Neither Strongly Agree Agree Agree Nor Disagree Disagree
Disagree
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 13
Some Areas Suited for Continuum Ratings
• Interest• Purchase
likelihood• Satisfaction/
Dissatisfaction• Brand loyalty• Price sensitivity• Knowledge• Experience
• Involvement• Decision control• Frequency or level of
use• Awareness• Information search• Personality traits• Variety seeking
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 14
The Pentagon Declares War on Rush Limbaugh: Misleading Research
• Survey found that only 4.8% of listeners to the Armed Forces Radio Network wanted to listen to “the biggest hawk there is.”
• How could a survey be made to get these results?
• Being on the watch for misleading surveys.
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 15
Experimentation
• Subjects in different groups treated differently– E.g., for some, “target”
product is given better shelf space
– E.g., some get coupon• Can help isolate causes• Subject is not biased by
questions—does not know how others are treated
EXPERIMENT COSTS:HIGH
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 16
My Simulated Store…
A shopper in the everyday low price condition…
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 17
Ash’s Instant Coffee Study
GROCERY SHOPPING LIST
Ground beefPotatoesApplesFlourSugarLaundry detergentInstant coffee6 cups of yogurtPaper towelsBananas
GROCERY SHOPPING LIST
Ground beefPotatoesApplesFlourSugarLaundry detergentGround coffee6 cups of yogurtPaper towelsBananas
Respondents were asked to describe their impressions of a housewife based only on her shopping list. These shopping lists differ only on one item.
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 18
Definition
• Confound: The tendency of some phenomenon to be caused at least in part by some variable other than the one of interest.
• E.g., does having more toys cause children to be more intelligent?
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 19
Confounds
• What is cause, what is effect, and what is coincidence?
• Correlation is not necessarily cause• “Lurking” factors may be real cause of
– Does sitting in front of the room cause higher grades?
– Do vaccinations cause autism?– Does Prozac cause suicide?– Do fish-heavy diets cause stomach cancer?– Does fraternity/sorority membership cause
higher grades?
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 20
Observation
• Looking at consumes in the field—e.g.,– Searching for product category area– Number of products inspected and time
spent on each– Apparent scrutiny of labels or other
information– Involvement of others– Behavior under limiting circumstances
(e.g., time constraints)
OBSERVATION COSTS:LOW TO HIGH
(DEPENDING ON CODING AND ANALYSIS NEEDED)
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 21
Taste Tests
• Not experiments unless– Two or more groups of people are treated differently (e.g.,
get different food version) or– The same person is being treated differently at separate
times (e.g., half the participants receive new formulation, then current; half the participants receive in the opposite order)
• “Triangle” Measure– Each respondent is given three items: One current, one
new, and one duplicate of either old or new– Asked to identify the one that is different and explain why
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 22
Focus Groups
• Groups of 8-12 consumers assembled
• Start out talking generally about context of product
• Gradually “focus” in on actual product
Usually NOT the best
approach. Should
NOT be chosen as
default research
method!
MOST APPROPRIATE
AS EARLYSTAGE METHOD
FOCUS GROUP COSTS:HIGH
(ESPECIALLY FOR THE AMOUNT OF INFORMATION COLLECTED)
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 23
REMINDER
• Focus groups are most useful for identifying issues that should be studied in more detail with more precise methods
• Due to the small sample size and social influence on individual responses, it is difficult to generalize much from focus groups
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 24
In-depth interviews
• Structured vs. unstructured interviews
• Generalizing to other consumers
• Biases– Subtle, inadvertent
feedback
IN-DEPTH INTERVIEW COSTS:
HIGH
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 25
Projective Techniques
• Getting at motivations that may not be consciously known— “Tell a story about this picture.”
• Measurement of attitudes consumers are unwilling to express– It is easier to admit something embarrassing
about someone else
• Consumer discusses what other consumer might think, feel, or do
PROJECTIVE METHODS COSTS:USUALLY HIGH IF PERSONAL INTERVIEWS OR
EXTENSIVEINTERPRETATION IS NEEDED
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 26
Projective Examples
“Please tell me a story of what is going on in this picture.”
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BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 30
More Projective Examples
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 31
Projective Techniques--Examples
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 32
Physiological Measures
• Consumer bodily responses are watched at various phases of advertisement or other marketing exposure
• Tracking of– Eye movements
• For areas of focus• For attention, involvement
– Heart rate– Skin conductivity– Brain waves
• State of mind• Attention
PHYSIOLOGICAL METHODS COSTS:
HIGH
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 33
Online Research—Analysis of Customer Search Queries
• Unmet demand—search for product not found on site
• Message comprehension—comparison of search terms to media message
• Consumer vocabulary• Feedback analysis
ONLINE SURVEY COSTS:USUALLY LOW
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 34
Online Surveys
• Conditional branching—direct skip to relevant question
• Quality of response– Time pressures– Willingness to write out answers or respond to
multiple closed-ended questions– Willingness to read and follow instructions is
limited• Reliability and browser compatibility issues
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 35
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 36
Conditional Branching
• Traditional surveys: Have you bought a new car during the last six months? If not, please skip to Question 11.
• Conditional branching: Respondent will be taken to the appropriate question according to answer
• Customization of questions– E.g., consumer lists three brands subsequent
questions ask about these specific brands by name
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 37
Other Online Tools
• “Click Stream Analysis:” Analysis of “clicking” path—how does the consumer get to a desired page or product?
• Shopping cart analysis
COSTS: HIGH START-UP COSTS;LOW VARIABLE COSTS
POSSIBLE WITH DEVELOPEDALGORITHMS
USUALLY LOW
COSTS: HIGH START-UP COSTS;LOW VARIABLE COSTS
POSSIBLE WITH DEVELOPEDALGORITHMS
USUALLY LOW
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 38
Searching for Reports of Personal Experience• Sources
– Blogs (blogsearch.google.com)
– Photos (e.g., Flickr, Webshots, Picasaweb, Google image search)
– Video (e.g., Youtube)
• Cautions– May be “staged” or
sensationalized– May represent what the
writer or photographer wants to show
– May be limited entries on certain “mundane” tasks such as dishwashing
• Some issues– Joy, enjoyment– Decisions– Anxiety– Social setting and
influence
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 39
Online Market Research Concerns
• Representativeness of – Population—are relevant groups
reached in desired proportions?– Sample—even if the desired
population is reached, do respondents respond in desired proportions?
• Willingness of participants to follow instructions
• Timing of survey participation requests
• Panel recruitment• Privacy
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 40
Scanner Data
• Panel members in test communities agree to– Swipe a card prior to each purchase– Have purchases matched to
• Demographic profiles• Media/coupon exposure• Promotional status of competing brands• Past purchases
• Problems:– Aggregation over household– Aggregation bias--averages of
disparate segments obscure!– Only available for grocery and
some drugstore products
COSTS: HIGH START-UP COSTS;LOW VARIABLE COSTS
POSSIBLE WITH DEVELOPEDALGORITHMS
USUALLY LOW
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 41
Scanner Data Research
TELEVISIONEXPOSURE
DEMOGRAPHICINFORMATION
ANALYSIS
RECORDEDPURCHASES
HOUSEHOLDFILE
Purchase on occasion: Yes, noTime since previous purchasePrevious purchasesCurrent pricePrevious priceCurrent promotional statusPrevious promotional statusCurrent display statusPrevious display statusDisplay status of competing brandsPromotional status of competing brandsCoupon used: Yes, noCoupon available: Yes, noCoupon available for other brands? Yes, noAmount of couponFamily size
OccupationFamily sizeIncomeHome ownership
No. of ads seen by shopperAds seen for competing brands“Split cable”
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 42
Hybrid Studies
• Some studies do not fall neatly into one category or may consist of a combination– E.g., a series of questionnaires in which
respondents are given different information/ presentations becomes an experiment
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 43
Research Sequencing
• More than one research method may be needed• Exploratory studies—e.g., focus groups—should be
done BEFORE precision approaches such as surveys.
• “Parallel:” Studies can be done at the same time if needed– E.g., need to know both attitude toward brand
(questionnaire) and brand switching propensity (scanner data)
• Follow-up: One study is needed to address issues raised in a previous one
BUAD 307 MARKETING RESEARCH Lars Perner, Instructor 44
Follow-Up Studies
• Normally, more general methods (e.g., focus groups) should be used first– E.g., identify issues of concern
• Subsequent studies can use more precise, less flexible methods– E.g., questionnaire, scanner data, physiological
measures, or experiments to follow up on issues raised in early focus group
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REMINDER
• If focus groups should be used at all, they should usually be used EARLY in the research process—NOT after more precise methods are used.