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Copyright © Houghton Mifflin Company. All rights reserved. 6–1

Chapter Outline

• The Importance of Marketing Research• The Marketing Research Process• Using Technology to Improve Marketing

Information Gathering and Analysis• Issues in Marketing Research

Copyright © Houghton Mifflin Company. All rights reserved. 6–2

The Importance of Marketing Research

• Marketing Research–The systematic design, collection, interpretation, and

reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

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The Benefits of Marketing Research

• Helps firms stay in touch with customers’ changing attitudes and purchase patterns

• Aids in the development of marketing mixes to match the needs of customers

• Assists in better understanding market opportunities

• Determine the feasibility of a particular marketing strategy

• Improves marketer’s ability to make decisions

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The Five Steps of the Marketing Research Process

FIGURE 6.1

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Locating and Defining Problems or Research Issues

• Focusing on uncovering the nature and boundaries of a situation or question related to marketing strategy or implementation–Departures from normal or expected marketing results–Biases in marketing information that distort its meaning–Evidence of possible or potential market opportunities

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Designing the Research Project

• Research Design–An overall plan for obtaining the information needed to

address a research problem or issue

• Hypothesis–An informed guess or assumption about a certain

problem or set of circumstances–Accepted or rejected hypotheses

act as conclusions for the research effort

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Types of Research

• Exploratory Research–Research conducted to gather more information

about a problem or to make a tentative hypothesis more specific

• Descriptive Research–Research conducted to clarify the characteristics of

certain phenomena to solve a particular problem

• Causal Research–Research in which it is assumed that a particular

variable X influences a variable Y

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Research Reliability and Validity

• Reliability–A condition existing when a

research technique produces almost identical results in repeated trials

• Validity–A condition existing when a

research method measures what it is supposed to measure

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Collecting Data

• Types of Data–Primary data: data observed and recorded or collected

directly from respondents–Secondary data: data complied both

inside and outside the organization for some purpose other than the current investigation

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Source: “Internal Secondary Market Research,” Lycos Small Business, business.lycos.com/cch/guidebook.html?lpv=1&docNumber=P03_3020, Feb. 6, 2002

Secondary Data

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Source: “External Secondary Market Research,” Lycos Small Business, business.lycos.com/cch/guidebook.html?lpv=1&docNumber=P03_3011, Feb. 6, 2002.

Secondary Data (cont’d)

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Methods of Collecting Primary Data• Sampling

–Population: all the elements, units, or individuals of interest to researchers for specific study

–Sample: a limited number of units chosen to represent the characteristics of a total population

• Types of Sampling–Probability: each element has an known chance for study–Random: each element has an equal chance for study–Stratified: study population divided into like groups–Nonprobability: element’s likelihood of study is unknown–Quota: population is grouped and elements are arbitrarily

chosen

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Survey Methods

• Mail Survey• Telephone Survey• Online Survey• Personal Interview Survey

–In-home (door-to-door) interview–Focus-group interview–Telephone depth interview–Shopping mall intercept interviews

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Questionnaire Construction

• Open-Ended QuestionWhat is your general opinion about coffee shops?

______________________________________________________________________________________

• Dichotomous QuestionHave you ever purchased a coffee product?

Yes _____ No _____

• Multiple-Choice QuestionWhat income group are you in?

$0-$19,000 _____

$20,000-$59,999 _____ $60,000-$99,000 _____

more than $100,000 _____

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Observation Methods for Data Collection

• Direct contact with subject is avoided to reduce possible awareness of observation process.

• Physical conditions, subject actions, and demographics are noted.

• Observations may be combined with same subject interviews.

• Data gathered may be influenced by observer bias.

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Experimentation

• Experiment–A research method that attempts to maintain (control)

certain variables while measuring the effects of experimental (uncontrolled) variables

• Independent variable: acts on the dependent variable• Dependent variable: is affected by variations in the

independent variable

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Interpreting Research Findings

• Statistical Interpretation–Analysis of survey data to determine what is typical or

what deviates from the average that indicates:• How widely the responses vary• How the responses are distributed• Which hypotheses are supported• Which hypotheses are rejected• Whether construction errors have invalidated the survey’s

results

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Reporting Research Findings

• Take an objective look at survey findings–Report deficiencies and reasons for

deficiencies

• Prepare a formal, written document–Summary and recommendations

• Short, clear, and simply expressed for executives

–Technical report• Contains more detailed information about research

methods and procedures and important data gathered

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Using Technology to Improve Marketing Information Gathering and Analysis

• Marketing Information Systems–A framework for the management and structuring of

information gathered regularly from sources inside and outside an organization

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Databases

• Databases–A collection of information arranged for easy access

and retrieval

• Single-Source Data–Information provided by a

single marketing research firm

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Marketing Decision Support Systems

• Customized computer software that aids marketing managers in decision making–Capability to create market models based on changes

in marketing variables –Artificial Intelligence (AI) assists in

customer support

Copyright © Houghton Mifflin Company. All rights reserved. 6–23

Copyright © Houghton Mifflin Company. All rights reserved. 6–24

Source: Reprinted with permission of The Marketing Research Association, P.O. Box 230, Rocky Hill, CT 06067-0230, (860)257-4008.

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Issues in Marketing Research

• International Issues in Marketing Research–Modification of data-gathering methods to account for

regional differences–Use of two-pronged approach to international marketing

research• Detailed search for and analysis of secondary data• Field research to refine firm’s understanding of how local

environment will shape/restrict data-gathering about customer needs and preferences

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Important Terms

• Marketing Research–The systematic design, collection, interpretation, and

reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

• Research Design–An overall plan for obtaining the information needed to

address a research problem or issue

• Hypothesis–An informed guess or assumption about a certain

problem or set of circumstances

Copyright © Houghton Mifflin Company. All rights reserved. 6–27

Important Terms

• Exploratory Research–Research conducted to gather more information about

a problem or to make a tentative hypothesis more specific

• Descriptive Research–Research conducted to clarify the characteristics of

certain phenomena to solve a particular problem

• Causal Research–Research in which it is assumed that a particular

variable X influences a variable Y

Copyright © Houghton Mifflin Company. All rights reserved. 6–28

Important Terms

• Reliability–A condition existing when a research technique

produces almost identical results in repeated trials

• Validity–A condition existing when a research method measures

what it is supposed to measure

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Important Terms

• Primary Data–Data observed and recorded or collected directly from

respondents

• Secondary Data–Data complied both inside and outside the organization

for some purpose other than the current investigation

• Population–All the elements, units, or individuals of interest to

researchers for a specific study

• Sample–A limited number of units chosen to represent the

characteristics of a total population

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Important Terms

• Sampling–The process of selecting representative units from a

total population

• Probability Sampling–Sampling technique in which every element in the

population being studied has a known chance of being selected for study

• Random Sampling–Probability sampling technique in which all units in a

population have an equal change of appearing in the sample

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Important Terms

• Stratified Sampling–Probability sampling technique in which the population

is divided into groups according to a common attribute and a random sample is then chosen within each group

• Nonprobability Sampling–Sampling technique in which there is no way to

calculate the likelihood that a specific element of the population being studied will be chosen

• Quota Sampling–Nonprobability sampling technique in which

researchers divide the population into groups and then arbitrarily choose participants from each group

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Important Terms

• Mail Survey–Research method in which respondents answer a

questionnaire sent through the mail

• Telephone Survey–Research method in which respondents’ answers to a

questionnaire are recorded by interviewers on the phone

• Online Survey–Research method in which respondents answer a

questionnaire via e-mail or on a web site

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Important Terms

• Personal Interview Survey–Research method in which participants respond to

survey questions face to face

• In-Home (Door-to-Door) Interview–Personal interview that takes place in the respondent’s

home

• Focus-Group Interview–Research method involving observation of group

interaction when members are exposed to an idea or concept

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Important Terms

• Telephone Depth Interview–Interview that combines the traditional focus group’s

ability to probe with the confidentiality provided by telephone surveys

• Shopping Mall Intercept Interview–Research method that involves interviewing a

percentage of persons passing by “intercept” points in a mall

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Important Terms

• Experiment–A research method that attempts to maintain (control)

certain variables while measuring the effects of experimental (uncontrolled) variables

• Statistical Interpretation–Analysis of survey data to determine what is typical or

what deviates from the average

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Important Terms

• Marketing Information Systems (MIS)–A framework for the management and structuring of

information gathered regularly from sources inside and outside an organization

• Single-Source Data–Information provided by a single marketing research

firm

• Marketing Decision Support Systems (MDSS)–Customized computer software that aids marketing

managers in decision making

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Ownership of Cats and Dogs by Age Group

Source: American Demographics, December 2000, p. 27. Adapted with permission.

Source: M

aritz Poll

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Top Ten Zip Codes for Spending on Fireworks

Source: American Demographics, July 2000, p. 24. Adapted with permission.

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