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    2-1Copyright 2010 Pearson Education, Inc. 2007Prentice Hall

    Redefining Marketing Research

    The American Marketing Association (AMA)

    redefined Marketing Research as:

    The function that links the consumer, the

    customer, and public to the marketer

    throughINFORMATION

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    Used to identify anddefine marketopportunities andproblems

    Generate, refine, andevaluate marketingperformance

    Monitor marketing

    performance

    Improve understandingof marketing as aprocess

    Information

    Redefining Marketing Research

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    2-3Copyright 2010 Pearson Education, Inc. 2007Prentice Hall

    Definition of Marketing Research

    Marketing research is the systematic and objective

    identification

    collection

    analysis

    dissemination

    and use of information

    For the purpose of improving decision making related to the

    identification and solution of problems and opportunities in marketing

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    Market Research

    Specifies the information necessary toaddress these issues

    Manages and implements the data

    collection process Analyzes the results

    Communicates the findings and theirimplications

    Helps managers use this information tomake decisions

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    Classification of Marketing Research

    Problem-Identification Research Research undertaken to help identify problems which are

    not necessarily apparent on the surface and yet exist orare likely to arise in the future. Examples: market

    potential, market share, image, market characteristics,sales analysis, forecasting, and trends research.

    Problem-Solving Research Research undertaken to help solve specific marketing

    problems. Examples: segmentation, product, pricing,promotion, and distribution research.

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    A Classification of Marketing Research

    Marketing Research

    ProblemIdentification Research

    Problem-SolvingResearch

    Market Potential ResearchMarket Share Research

    Market Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

    Segmentation Research

    Product Research

    Pricing ResearchPromotion Research

    Distribution Research

    Fig.1.1

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    Problem-Solving Research

    Determine the basis ofsegmentation

    Establish market potential and

    responsiveness for varioussegments

    Select target markets

    Create lifestyle profiles:demography, media, and

    product image characteristics

    SEGMENTATIONRESEARCH

    Test concept

    Determine optimal productdesign

    Package tests Product modification

    Brand positioning andrepositioning

    Test marketing

    PRODUCTRESEARCH

    Table

    1.1

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    Problem-Solving Research

    Table 1.1

    cont.

    PRICING RESEARCH

    Pricing policies

    Importance of price in brandselection

    Product line pricing

    Price elasticity of demand

    Initiating and responding to price

    $ALE

    PROMOTIONAL RESEARCH

    Optimal promotional budget Sales promotion relationship

    Optimal promotional mix

    Copy decisions

    Media decisions Creative advertising testing

    Evaluation of advertisingeffectiveness

    Claim substantiation

    0.00% APR

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    Problem-Solving Research

    Table 1.1cont.

    DISTRIBUTION RESEARCHDetermine

    Types of distribution

    Attitudes of channel members

    Intensity of wholesale & resale coverage Channel margins

    Location of retail and wholesale outlets

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    2-10Copyright 2010 Pearson Education, Inc. 2007Prentice Hall

    Marketing Research Process

    Step 1 : Problem Definition

    Step 2 : Development of an Approach to the Problem

    Step 3 : Research Design Formulation

    Step 4 : Fieldwork or Data Collection

    Step 5 : Data Preparation and Analysis

    Step 6 : Report Preparation and Presentation

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    Marketing Research Process

    Step 1: Defining the Problem

    Step 2: Developing an Approach to the Problem

    Step 3: Formulating a Research Design

    Step 4: Doing Field Work or Collecting Data

    Step 5: Preparing and Analyzing Data

    Step 6: Preparing and Presenting the Report

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    The Role of Marketing Research

    Controllable

    Marketing

    Product

    Pricing

    Promotion

    Distribution

    Variables

    Marketing

    Research

    Marketing

    DecisionMaking

    Providing

    Information

    Assessing

    Information

    Needs

    Marketing Managers

    Market Segmentation

    Performance & Control

    Target Market Selection

    Marketing Programs

    Uncontrollable

    Environmental

    Factors

    Economy

    Technology Laws &

    Regulations

    Social & CulturalFactors

    Political Factors

    Fig.1.2 Consumers

    Employees Shareholders Suppliers

    Customer Groups

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    Client

    Needs Find Seek Plan Act

    Solve Problem

    Achieve Goal

    How WeHelp

    ClarifyDecisions

    Research

    Analysis

    EvaluateInterpretFacilitate

    Recommend

    MarketPlan

    Research

    AdviseAssistExecution

    Opportunity scan

    Option generation

    Refine options

    Decision

    Fig. 1.3

    Power Decisions Methodology

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    2-14Copyright 2010 Pearson Education, Inc. 2007Prentice Hall

    Marketing Research Suppliers & Services

    LIMITEDSERVICE

    OtherServices

    Technicaland AnalyticalServices

    Focus Groupsand QualitativeServices

    FieldServices

    FULLSERVICE

    SyndicateServices

    StandardizedServices

    CustomizedServices

    InternetServices

    RESEARCHSUPPLIERS EXTE

    RNAL

    INTERNAL

    Fig.1.4

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    U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.2007

    2006

    Table 1.2 Top 50 U.S. Marketing ResearchFirms1 1 The Nielsen Co. New York nielsen.com $2,173.0 $4,220.0 48.5%

    2 2 IMS Health Inc. Norwalk, Conn. imshealth.com 801.0 2,192.6 63.5

    3 3 Kantar Group* Fairfield, Conn. kantargroup.com 526.8 1,551.4 66.0

    4 5 Westat Inc. Rockville, MD westat.com 467.8 467.8

    5 4 IRI Chicago infores.com 441.0 702.0 37.2

    6 6 TNS U.S. New York tnsglobal.com 379.8 2,137.2 82.2

    7 7 Arbitron Inc. New York arbitron.com 338.5 352.1 3.9

    8 8 GfK AG USA Nuremberg, Germany gfk.com 319.7 1,603.00 80.1

    9 9 Ipsos New York ipsos-na.com 281.2 1,270.30 77.9

    10 10 Synovate London synovate.com 250.4 867.0 71.1

    11 11 Maritz Research Fenton, Mo. maritzresearch.com 187.4 223.3 16.1

    12 13 J.D. Power and Associates* Westlake Village, Calif. jdpower.com 184.5 260.5 29.2

    13 12 Harris Interactive Inc. Rochester, N.Y. harrisinteractive.com 161.0 227.0 29.1

    14 14 The NPD Group Inc. Port Washington, N.Y. npd.com 160.4 211.1 24.0

    15 Opinion Research/

    Guideline Group Omaha, Neb. infousa.com 124.7 206.7 39.7

    15 Opinion Research Corp. Princeton, N.J. opinionresearch.com 97.5 179.5 45.7

    a e

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    U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.2007 2006

    a e . . .(Cont)

    38Guideline Inc. New York guideline.com 26.8 26.8

    16 18 comScore Inc. Reston, Va. comscore.com 77.0 87.2 11.7

    17 20 Market Strategies Inc. Livonia, Mich. marketstrategies.com 75.7 80.4 5.8

    20Market Strategies Inc. Livonia, Mich. markestrategies.com 53.4 58.1 8.1

    37Flake-Wilkerson Market Insights Little Rock, Ark. fw-mi.com 22.3 22.3

    18 17 Lieberman Research Worldwide Los Angeles Irwonline.com 71.0 87.4 18.8

    19 Abt Associates Inc. Cambridge, Mass. abtassociates.com 55.1 55.1

    19

    Abt Associates Inc. Cambridge, Mass. abtassociates.com 33.0 33.0

    41Abt SRBI Inc. New York srbi.com 22.1 22.1

    20 23 OTX Los Angeles otxresearch.com 50.8 54.5 6.8

    21 21 Burke Inc. Cincinnati burke.com 47.0 53.1 11.5

    22 22 MVL Group Inc. Jupiter, Fla. mvlgroup.com 42.3 42.3

    23 26 Knowledge Networks Inc. Menlo Park, Calif. knowledgenetworks.com 37.3 37.3

    23 25 National Research Corp. Lincoln, Neb. nationalresearch.com 37.3 41.3 9.7

    25 24 Directions Research Inc. Cincinnati directionsresearch.com 37.2 37.2

    26 40 Phoenix Marketing International Rhineback, N.Y. phoenixmi.com 33.5 34.9 4.0

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    U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.2007

    2006

    Table 1.2Top 50 U.S. Marketing Research Firms(Cont)

    27 34 Lieberman Research Group Great Neck, N.Y. liebermanresearch.com 30.1 30.1

    28 27 ICR/Int'l Communications Research Media, Pa. icrsurvey.com 28.8 29.7 3.0

    29 28 Morpace Inc. Farmington Hills, Mich. morpace.com 28.7 33.2 13.6

    30 33 MarketCast Los Angeles marketcastonline.com 25.1 25.1

    31 36 Data Development Worldwide New York datadw.com 25.0 25.3 1.2

    32 39 C&R Research Services Inc. Chicago crresearch.com 23.6 23.6

    33 32 Informa Research Services Inc. Calabasas, Calif. informars.com 23.5 23.5

    34 31 National Analysts Worldwide Philadelphia nationalanalysts.com 23.3 23.3

    35 44 Service Management Group Kansas City, Mo. servicemanagement.com 22.4 23.0 2.6

    36 34 Market Probe Inc. Milwaukee marketprobe.com 21.7 41.4 47.6

    37 Hitwise New York hitwise.com 21.6 49.9 56.7

    38 42 Walker Information Indianapolis walkerinfo.com 21.2 25.5 16.9

    39 43 KS&R Inc. Syracuse, N.Y. ksrinc.com 17.1 21.0 18.6

    40 47 Bellomy Research Inc. Winston-Salem, N.C. bellomyresearch.com 16.7 16.7

    41 46 MarketVision Research Inc. Cincinnati marketvisionresearch.com 16.4 16.4

    42 28 Public Opinion Strategies Alexandra, Va. pos.org 15.5 15.5

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    2-18Copyright 2010 Pearson Education, Inc.

    U.S. Rank Organization Headquarters Website U.S. GlobalNon-U.S.2007

    2006

    Table 1.2Top 50 U.S. Marketing Research Firms(Cont)

    43 Compete Inc. Boston compete.com 14.9 14.9

    44 45 Savitz Research Companies Dallas savitzresearch.com 14.8 14.8

    45 48 RDA Group Inc.Bloomfield Hills,

    Mich. rdagroup.com 13.7 16.8 18.5

    46 Gongos Research Inc. Auburn Hills, Mich. gongos.com 13.3 13.3

    47 Q Research Solutions Inc. Old Bridge, N.J. whoisq.com 13.0 13.2 1.5

    48 49 Marketing Analysts Inc. Charleston, S.C. marketinganalysts.com 12.8 13.6 5.9

    49 50RTi Market Research & Brand

    Strategy Stamford, Conn. rtiresearch.com 12.2 12.2

    50 The Link Group Atlanta the-link-group.com 11.9 13.3 10.5

    Total $7.828.7 $17,638.0 55.6%

    All other (150 CASRO companies notincluded in the Top 50) $774.3 $870.1 11.0%

    Total (200 companies) $8,603.0 $18,508.1 53.5%

    *Estimated by Top 50. U.S. and worldwide revenue may include nonresearch activities for some companies that are significantly higher.Rate of growth from year to year has been adjusted so as not to include revenue gains or losses from acquisitions or divestitures. Total

    revenue of 150 survey research companies that provide financial information on a confidential basis to CASRO.

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    2-19Copyright 2010 Pearson Education, Inc. 2007Prentice Hall

    Selected Marketing Research Career Descriptions

    Vice President of Marketing Research:The senior position inmarketing research. The vice president (VP) is responsible for theentire marketing research operation of the company and serves on thetop management team. This person sets the objectives and goals ofthe marketing research department.

    Research Director:Also a senior position. The research director hasthe general responsibility for the development and execution of all themarketing research projects.

    Assistant Director of Research:Serves as an administrativeassistant to the director and supervises some of the other marketingresearch staff members.

    (Senior) Project Manager:Has overall responsibility for design,implementation, and management of research projects.

    Statistician/Data Processing Specialist:Serves as an expert ontheory and application of statistical techniques. Responsibilities includeexperimental design, data processing, and analysis.

    Fig.

    1.5

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    Selected Marketing Research Career Descriptions

    Vice President of MarketingResearch

    Part of companys top management team

    Directs companys entire market research

    operation

    Sets the goals & objectives of the

    marketing research department

    Research Director

    Also part of seniormanagement

    Heads the development andexecution of all researchprojects

    Assistant Director of Research

    Administrative assistant to director

    Supervises research staff members

    Senior Project Manager Responsible for design, implementation, & research

    projects

    Fig. 1.5cont.

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    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

    Fieldwork Director Handles selection, training, supervision,and evaluation of interviewers and fieldworkers

    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

    Fig. 1.5cont.

    Statistician/Data Processing Serves as expert on theory and

    application on statistical techniques Oversees experimental design, data

    processing, and analysis

    Selected Marketing Research CareerDescriptions

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    Marketing Research Suppliers & Services

    Internal suppliers

    External suppliers Full-service suppliers

    Syndicated services Standardized services

    Customized services Internet services Limited-service suppliers

    Field services Focus groups and qualitative services

    Technical and analytical services Other services

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    Criteria for Selecting a Research Supplier

    What is the reputation of the 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 similarto this one?

    Do the supplier's personnel have both technical andnon-technical expertise?

    Can they communicate well with the client?

    Competitive bids should be compared on the basis ofquality as well as price.

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    The Department Store Project

    The following information was solicited:1. Familiarity with the ten department stores2. Frequency with which household members shopped at eachof the ten stores

    3. Relative importance attached to each of the eight factors of

    the choice criteria4. Evaluation of the ten stores on each of the eight factors ofthe choice criteria

    5. Preference ratings for each store

    6. Rankings of the ten stores (from most preferred to least

    preferred)7. Degree of agreement with 21 lifestyle statements

    8. Standard demographic characteristics (age, education, etc.)

    9. Name, address, and telephone number

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    Domestic

    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 ResearchOrganizations (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

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    International

    ESOMAR:European Society for Opinion and MarketingResearch (www.esomar.nl)

    MRS: The Market Research Society (UK)(www.marketresearch.org.uk)

    MRSA: The Market Research Society ofAustralia (www.mrsa.com.au)

    PMRS: The Professional Marketing Research Society(Canada) (www.pmrs-aprm.com)

    Marketing Research Associations Online

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    Overview of Ethical Issues in Marketing Research (Cont.)

    Table 1.3 cont.

    III Research Design- Formulating a research design more suited to the researcher's

    rather than the client's needs- Using secondary data that are not applicable or have been

    gathered through questionable means- Disguising the purpose of the research- Soliciting unfair concessions from the researcher- Not maintaining anonymity of respondents- Disrespecting privacy of respondents- Misleading respondents

    - Disguising observation of respondents- Embarrassing or putting stress on respondents- Using measurement scales of questionable reliability & validity- Designing overly long/sensitive questionnaires- Using inappropriate sampling procedures and sample size

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    Overview of Ethical Issues in Marketing Research

    Table 1.3 cont.

    IV Field Work- Increasing dis comfort level of respondents- Following un acceptable field work procedures

    V Data Preparation and Analysis- Identifying and discarding unsatisfactory respo ndents- Using statistical techniques when the underlying

    assumptions are violated- Interpreting the results and making incorrect

    conclusions and recommendations

    VI Report Preparation and Presentation- Incomplete reporting- Biased reporting- Inaccur ate reporting

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    Chain Restaurant Study

    One day I received a phonecall from a research analystwho introduced himself asone of our alumni.

    He was working for arestaurant chain in townand wanted help analyzingthe data he had collectedwhile conducting a

    marketing research study.

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    Chain Restaurant Study

    When we met, he presented me with a copy of the

    questionnaire and asked how he should analyze thedata. My first question to him was,

    What is the problem being

    addressed?

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    Chain Restaurant Study

    When he lookedperplexed, Iexplained that dataanalysis is not anindependentexercise.

    Rather, the goal of data analysis is toPROVIDEINFORMATION RELATED TO THE PROBLEMCOMPONENTS.

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    Chain Restaurant Study

    I was surprised to learn that he did nothave a clear understanding of themarketing research problem and thata written definition did not exist. So

    before going any further, I had todefine the marketing research

    problem.

    Once that was done, I found that much ofthe data collected was not relevant to the

    problem. In this sense, the whole studywas a waste of resources. A new studyhad to be designed and implemented toaddress the problem defined.

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    The Problem Definition Process

    Fig.

    2.1 DiscussionwithDecision Maker(s)

    InterviewswithExperts

    SecondaryDataAnalysis

    QualitativeResearch

    Management Decision Problem

    Marketing Research Problem

    Tasks Involved

    Environmental Context of the Problem

    Step I: Problem Definition

    Step II: Approach to the Problem

    Objective/TheoreticalFoundations

    ResearchQuestions

    Hypotheses

    Step III: Research Design

    AnalyticalModel: Verbal,Graphical,Mathematical

    SpecificationofInformationNeeded

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    Tasks Involved in Problem Definition

    Discussions with DecisionMakers

    Interviews with IndustryExperts

    Secondary Data Analysis

    Qualitative Research

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    The Problem Audit

    The problem audit is a comprehensive examination of a

    marketing problem with the purpose of understanding its originand nature.

    1. The events that led to the decision that action is needed,

    or the history of the problem

    2. The alternative courses of action available to the DM

    3. The criteria that will be used to evaluate the alternativecourses of action

    4. The potential actions that are likely to be suggestedbased on the research findings

    5. The information that is needed to answer the DM's

    questions6. The manner in which the DM will use each item of

    information in making the decision

    7. The corporate culture as it relates to decision making

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    The Seven Cs of Interaction

    The interaction between the DM and theresearcher should be characterized by theseven Cs:

    1. Communication

    2. Cooperation

    3. Confidence4. Candor

    5. Closeness

    6. Continuity

    7.

    Creativity

    Factors to be Considered in the

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    Factors to be Considered in theEnvironmental Context of the Problem

    PAST INFORMATION ANDFORECASTS

    RESOURCES ANDCONSTRAINTS

    OBJECTIVES

    BUYER BEHAVIOR

    LEGAL ENVIRONMENT

    ECONOMIC ENVIRONMENT

    MARKETING ANDTECHNOLOGICAL SKILLS

    Fig. 2.2

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    Management Decision Problem Vs. Marketing Research Problem

    Management Decision Problem Marketing Research Problem

    Should a new product be To determine consumer preferences

    introduced? and purchase intentions for the

    proposed new product

    Should the advertising To determine the effectivenesscampaign be changed? of the current advertising

    campaign

    Should the price of the To determine the price elasticity

    brand be increased? of demand and the impact on salesand profits of various levels

    of price changes

    Proper Definition of the Research Problem

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    Proper Definition of the Research Problem

    Marketing Research Problem

    Broad Statement

    Specific Components

    Fig.2.3

    Department Store Project

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    Department Store Project

    Problem Definition

    In the department store project, the marketing researchproblem is to determine the relative strengths andweaknesses of Sears, vis--vis other major competitors, withrespect to factors that influence store patronage. Specifically,research should provide information on the followingquestions.1. What criteria do households use when selecting department

    stores?2. How do households evaluate Sears and competing stores interms of the choice criteria identified in question 1?3. Which stores are patronized when shopping for specific productcategories?4. What is the market share of Sears and its competitors for

    specific product categories?5. What is the demographic and psychological profile of thecustomers of Sears? Does it differ from the profile of customersof competing stores?

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    Components of an Approach

    Objective/Theoretical Foundations

    Analytical Model

    Research Questions Hypotheses

    Specification of the InformationNeeded

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    The Role of Theory in Applied Marketing Research

    ResearchTask Role ofTheory 1. Conceptualizing

    and identifying

    keyvariables

    Provides a conceptual foundation and understanding of the basic processes

    underlying the problem situation. These processes will suggest key dependent

    and independent variables.

    2. Operationalizing

    key

    variables

    Theoretical constructs (variables) can suggest independent and dependent

    variables naturally occurring in the real world.

    3. Selecting a

    research design

    Causal or associative relationships suggested by the theory may indicatewhether

    a causal or descriptive design should be adopted.

    4. Selecting a

    sample

    The theoretical framework may be useful in defining the population and

    suggesting variables for qualifying respondents, imposing quotas, or stratifying

    the

    population

    (see Chapter

    11).

    5. Analyzing and

    interpreting data

    The theoretical framework (and the models, research questions and hypotheses

    based on it) guide the selection of a data analysis strategy and the interpretation

    of results (see Chapter 14).

    6. Integrating

    findings

    The findings obtained in the research project can be interpreted in the light of

    previous research and integrated with the existing body of knowledge.

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    Models

    An analytical model is a set of variablesand their interrelationships designed torepresent, in whole or in part, some realsystem or process.

    In verbal models, the variables and theirrelationships are stated in prose form. Suchmodels may be mere restatements of themain tenets of a theory.

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    Graphical Models

    Graphical models are visual. They are used to

    isolate variables and to suggest directions ofrelationships but are not designed to provide

    numerical results.

    Awareness

    Understanding:Evaluation

    Preference

    Patrona

    ge

    M th ti l M d l

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    Mathematical Models

    Mathematical modelsexplicitly specifythe relationships among variables, usually inequation form.

    Where

    y = degree of preference

    = model parameters to be estimated

    statistically

    =+=

    n

    i ii xaay

    10

    aa i,0

    Development of Research

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    pQuestions and Hypotheses

    Fig.

    2.4

    Components of the

    Research Questions

    Hypotheses

    Objective/TheoreticalFramework

    AnalyticalModel

    Marketing Research Problem

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    Research Questions and Hypotheses

    Research questions (RQs) arerefined statements of the specificcomponents of the problem.

    A hypothesis (H) is an unprovenstatement or proposition about a factoror phenomenon that is of interest to theresearcher. Often, a hypothesis is a

    possible answer to the research question.

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    Department Store Project

    RQ: Do the customers of Sears exhibitstore loyalty?

    H1: Customers who are store-loyal are

    less knowledgeable about the shoppingenvironment.

    H2: Store-loyal customers are more risk-averse than are non-loyal customers.

    D t t St P j t

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    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 assortmentof 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 torate the importance of each factor as it influences their storeselection.

    Component 2 The researcher identified nine department stores as competitors

    to Sears based on discussions with management. Therespondents should be asked to evaluate Sears and its ninecompetitors on the eight choice criteria factors.

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    At United, Food Is Uniting the Airline with

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    , gTravelers

    United Airlines, as other major airlines, had to deal with

    passenger loyalty (management decision problem: how toattract more and more loyal passengers). The broadmarketing research problem was to identify thefactors thatinfluence loyalty of airline travelers.

    At United, Food Is Uniting the Airline withl

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    The basic answer is to improve service. Exploratory research,

    theoretical framework, and empirical evidence revealed thatthe consumers choice of an airline is influenced by: safety,

    price of the ticket, frequent-flyer program, convenience ofscheduling, and brand name.

    Travelers

    At United, Food Is Uniting the Airline with

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    A graphical model stipulated that consumersevaluate competing airlines based on factors ofthe choice criteria to select a preferred airline.The problem was that major airlines were quite

    similar on these factors. Indeed, "airlines offerthe same schedules, the same service, and thesame fares. Consequently, United Airlineshad to find a way to differentiate itself. Foodturned out to be the solution.

    , gTravelers

    At United, Food Is Uniting the Airline

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    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 tocustomers loyalty." This survey also emphasized theimportance of food brands.

    At United, Food Is Uniting the Airlinewith Travelers

    At United, Food Is Uniting the Airline

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    The airline's Marketrak survey told United Airlinesthat "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 airlinetravelers.

    H2: Travelers value branded food.

    H3: Travelers prefer larger food portions, but withconsistent quality.

    H4: Travelers prefer exotic food.

    with Travelers

    At United, Food Is Uniting the Airline

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    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.

    with Travelers

    At United, Food Is Uniting the Airline

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    This kind of research helped United Airlines define their marketing

    research problem and develop the approach. Focus groups and surveyswere 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., Godivachocolates). This resulted in better service, increasing customer satisfactionand fostering loyalty.

    with Travelers

    l k h h

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    International Marketing Research Examining the Impactof the Self-Reference Criterion (SRC)

    1. Define the marketing research problem in

    terms of domestic environmental and culturalfactors.

    2. Define the marketing research problem interms of foreign environmental and cultural

    factors. Make no judgments.3. Isolate the self-reference criterion (SRC)

    influence on the problem and examine itcarefully to see how it complicates the

    problem.4. Redefine the problem without the SRC

    influence and address it for the foreign marketsituation.

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    R h D i D fi iti

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    Research Design: Definition

    A research design is a framework or

    blueprint for conducting the marketing

    research project. It details the proceduresnecessary for obtaining the information

    needed to structure or solve marketing

    research problems.

    A Classification of Marketing Research Designs

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    g g

    Single Cross-Sectional

    Design

    Multiple Cross-Sectional

    Design

    Fig.3.1

    Research Design

    ConclusiveResearchDesign

    ExploratoryResearch

    Design DescriptiveResearch

    CausalResearch

    Cross-Sectional

    Design

    Longitudinal

    Design

    Differences

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    Differences

    Objective:

    Character-istics:

    Findings/Results:

    Outcome:

    To provide insights andunderstanding

    Information needed is defined onlyloosely. Research process is flexibleand unstructured. Sample is small

    and non-representative. Analysis ofprimary data is qualitative

    Tentative

    Generally followed by furtherexploratory or conclusive research

    To test specific hypotheses and examinerelationships

    Information needed is clearly defined.Research process is formal andstructured. Sample is large and

    representative. Data analysis isquantitative

    Conclusive

    Findings used as input into decisionmaking

    Exploratory ConclusiveTable

    3.1

    A Comparison o Basic Researc Designs

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    Objective:

    Characteristics:

    Methods:

    Discovery of ideas

    and insights

    Flexible, versatile

    Often the front end oftotal research design

    Expert surveysPilot surveysCase studiesSecondary data:qualitative analysisqualitative research

    Describe market

    characteristics orfunctions

    Marked by the priorformulation of specifichypotheses

    Preplanned and structureddesign

    Secondary data:quantitative analysisSurveysPanelsObservation and otherdata

    Determine cause

    and effectrelationships

    Manipulation ofindependentvariables, effect on

    dependent variables

    Control mediatingvariables

    Experiments

    Exploratory

    Descriptive

    Causal

    Table3.2

    U f E l t R h

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    Uses of Exploratory Research

    Formulate a problem or define a problemmore precisely

    Identify alternative courses of action

    Develop hypotheses Isolate key variables and relationships for

    further examination

    Gain insights for developing an approach

    to the problem Establish priorities for further research

    Methods of Exploratory Research

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    Methods of Exploratory Research

    Survey of experts (discussed in Chapter 2)

    Pilot surveys (discussed in Chapter 2)

    Secondary data analyzed in a qualitative way

    (discussed in Chapter 4)

    Qualitative research (discussed in Chapter 5)

    Use of Descriptive Research

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    Use of Descriptive Research

    To describe the characteristics of relevantgroups, such as consumers, salespeople,organizations, or market areas

    To estimate the percentage of units in aspecified population exhibiting a certainbehavior

    To determine the perceptions of productcharacteristics

    To determine the degree to which marketingvariables are associated

    To make specific predictions

    Methods of Descriptive Research

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    Methods of Descriptive Research

    Secondary data analyzed in a quantitative, asopposed to a qualitative, manner (discussed inChapter 4)

    Surveys (Chapter 6) Panels (Chapters 4 and 6)

    Observational and other data (Chapter 6)

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    Consumption of Various Soft Drinks byVarious Age Cohorts

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    Various Age Cohorts

    8-1920-29

    30-3940-4950+

    Age 1960 1969 19791950

    52.945.2

    33.923.218.1

    62.660.7

    46.640.828.8C1

    73.276.0

    67.758.650.0C2

    81.075.8

    71.467.851.9C3

    C

    8C7C6C5C4

    C1: cohort born prior to 1900C2: cohort born 1901-10C3: cohort born 1911-20C4: cohort born 1921-30

    C5: cohort born 1931-40C6: cohort born 1940-49C7: cohort born 1950-59C8: cohort born 1960-69

    Table

    3.3 Percentage consuming on a typical day

    Longitudinal Designs

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    Longitudinal Designs

    A fixed sample (or samples) of populationelements is measured repeatedly on thesame variables

    A longitudinal design differs from a cross-sectional design in that the sample orsamples remain the same over time

    Cross-Sectional vs. Longitudinal

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    Cross Sectional vs. Longitudinal

    SampleSurveyed at T1

    SampleSurveyedat T1

    SameSamplealso

    Surveyedat T2

    T1 T2

    Cross-Sectional Design

    Longitudinal Design

    Time

    Longitudinal and Cross-Sectional Designs

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    EvaluationCriteria

    Cross-SectionalDesign

    LongitudinalDesign

    Detecting ChangeLarge amount of data collectionAccuracyRepresentative SamplingResponse bias

    ---++

    +++--

    Note: A + indicates a relative advantage over the other design,whereas a - indicates a relative disadvantage.

    Table

    3.4

    C S ti l D t M N t Sh Ch

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    Cross-Sectional Data May Not Show Change

    Brand Purchased Time Period

    Period 1 Period 2Survey Survey

    Brand A 200 200Brand B 300 300Brand C 500 500Total 1000 1000

    Table3.5

    Longitudinal Data May Show Substantial Change

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    BrandPurchased inPeriod 1

    Brand Purchased in Period 2

    Brand A Brand B Brand C Total

    Brand A

    Brand BBrand CTotal

    100

    2575

    200

    50

    100150300

    50

    175275500

    200

    3005001000

    Table

    3.6

    Uses of Causal Research

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    Uses of Causal Research

    To understand which variables are the cause(independent variables) and which variablesare the effect (dependent variables) of aphenomenon

    To determine the nature of the relationshipbetween the causal variables and the effect tobe predicted

    METHOD: Experiments

    Alternative Research Designs

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    Exploratory

    Research Secondary DataAnalysisFocus Groups

    ConclusiveResearchDescriptive/Causal

    Conclusive

    ResearchDescriptive/Causal

    ExploratoryResearch

    Secondary DataAnalysis

    Focus Groups

    ConclusiveResearchDescriptive/Causal

    (a)

    (b)

    (c)

    Potential Sources of Error in Research Designs

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    Surrogate Information Error

    Measurement Error

    Population Definition Error

    Sampling Frame Error

    Data Analysis Error

    Respondent Selection Error

    Questioning Error

    Recording Error

    Cheating Error

    Inability Error

    Unwillingness Error

    Fig.

    3.2

    Total Error

    Non-samplingError

    RandomSampling Error

    Non-responseError

    ResponseError

    InterviewerError

    RespondentError

    ResearcherError

    Errors in Marketing Research

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    Errors in Marketing Research

    The total error is the variation between the true

    mean value in the population of the variable ofinterest and the observed mean value obtained inthe marketing research project.

    Random sampling error is the variation betweenthe true mean value for the population and the truemean value for the original sample.

    Non-sampling errors can be attributed to sourcesother than sampling, and they may be random ornonrandom: including errors in problem definition,

    approach, scales, questionnaire design, interviewingmethods, and data preparation and analysis. Non-sampling errors consist of non-response errors andresponse errors.

    Errors in Marketing Research

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    Non-response error arises when someof the respondents included in thesample do not respond.

    Response error arises whenrespondents give inaccurate answers ortheir answers are misrecorded ormisanalyzed.

    ,Descriptive, and Causal Research

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    Marketing Research at Citicorpis typical in that it isused to measure consumer awareness of products,monitor their satisfaction and attitudes associatedwith the product, track product usage and diagnose

    problems as they occur. To accomplish these tasksCiticorp makes extensive use of exploratory,descriptive, and causal research. Often it isadvantageous to offer special financial packages tospecific groups of customers. In this case, a

    financial package is being designed for seniorcitizens.

    The following seven-step process was taken by

    marketing research to help in the design.

    t corp Ban s on Exp oratory,Descriptive, and Causal Research

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    p ,

    1) A taskforce was created to better define the market parametersto include all the needs of the many Citicorp branches. A finaldecision was made to include Americans 55 years of age orolder, retired, and in the upper half of the financial strata of thatmarket.

    Citicorp Banks on Exploratory,Descriptive and Causal Research

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    2) Exploratory research in the form of secondary data analysis of the matureor older market was then performed and a study of competitive products wasconducted. Exploratory qualitative research involving focus groups was alsocarried out in order to determine the needs and desires of the market and thelevel of satisfaction with the current products.

    In the case of senior citizens, agreat deal of diversity was foundin the market. This was

    determined to be due to suchfactors as affluence, relative age,and the absence or presence of aspouse.

    Descriptive, and Causal Research

    t corp Ban s on Exp oratory,Descriptive, and Causal Research

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    3) The next stage of research was brainstorming. This involved theformation of many different financial packages aimed at the targetmarket. In this case, a total of 10 ideas were generated.

    p ,

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    4) The feasibility of the 10 ideas generated in step 3 was then tested.

    The ideas were tested on the basis of whether they were possible inrelation to the business. The following list of questions was used as aseries of hurdles that the ideas had to pass to continue on to the nextstep.

    Can the idea be explained in a manner that the targetmarket will easily understand? Does the idea fit into the overall strategy of Citicorp?

    Descriptive, and Causal Research

    Citicorp Banks on Exploratory,Descriptive and Causal Research

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    Is there an available description of a specific target market for theproposed product?

    Does the research conducted so far indicate a potential match fortarget market needs, and is the idea perceived to have appeal tothis market?

    Is there a feasible outline of the tactics and strategies forimplementing the program?

    Have the financial impact and cost of the program beenthoroughly evaluated and determined to be in line with companypractices?

    In this study, only one idea generated from the brainstormingsession made it past all the listed hurdles and on to step 5.

    Descriptive, and Causal Research

    Citicorp Banks on Exploratory,Descriptive and Causal Research

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    5) A creative work-plan was then generated. This plan was to emphasizethe competitive advantage of the proposed product as well as better

    delineate the specific features of the product.

    6) The previous exploratory research was now followed up with

    descriptive research in the form of mall intercept surveys of people in

    the target market range. The survey showed that the list of special

    features was too long and it was decided to drop the features more

    commonly offered by competitors.

    Descriptive, and Causal Research

    Citicorp Banks on Exploratory,Descriptive and Causal Research

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    7) Finally, the product was test marketed in six of theCiticorp branches within the target market. Testmarketing is a form of causal research. Givensuccessful test marketing results, the product is

    introduced nationally.

    Descriptive, and Causal Research

    Marketing Research Proposal

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    g p

    Executive Summary Background Problem Definition/Objectives of the

    Research Approach to the Problem Research Design Fieldwork/Data Collection Data Analysis Reporting Cost and Time Appendices

    The Greenfield of Online Research

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    The Greenfield of Online Research

    Greenfield Online Research Center, Inc.(http://www.greenfieldonline.com), based inWestport, Connecticut, is a subsidiary of theGreenfield Consulting Group. The Online

    Research Center conducts focus groups, surveys,and polls over the Internet. The company hasbuilt up a panel of several thousand Internetusers, from which it draws survey samples. Thesamples may be used for descriptive research

    designs like single or multiple cross-sectionaldesigns, as well as longitudinal designs. Causaldesigns can also be implemented. Respondentsmay also be chosen from the registered Internetusers.

    The Greenfield of Online Research

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    Internet users wishing to take part in surveys andother projects begin by registering online at thecompanys Web site. The registration consists of asign-up survey that asks for e-mail address, typeof computer used, personal interests and informationabout the respondents household. Once an Internetuser is registered, Greenfield Online matches theuser with research studies that are well-suited to hisor her interests.

    Incentives to take part in focus groups or special

    surveys are offered by the companies whoseproducts or services are being researched. Thisincentive is cash or valuable prizes. Incentives arealso offered to Internet users to encourage them toregister with Greenfields Internet panel. New

    registrants automatically qualify for prizes that are

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    A Comparison of Primary & Secondary Data

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    p y y

    Primary Data Secondary Data

    Collection purpose For the problem at hand For other problemsCollection process Very involved Rapid & easyCollection cost High Relatively lowCollection time Long Short

    Table 4.1

    Uses of Secondary Data

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    Identify the problem Better define the problem Develop an approach to the problem

    Formulate an appropriate research design (forexample, by identifying the key variables) Answer certain research questions and test some

    hypotheses

    Interpret primary data more insightfully

    Criteria for Evaluating Secondary Data

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    Specifications: Methodology Used to Collectthe Data Error: Accuracy of the Data Currency: When the Data Were Collected

    Objective(s): The Purpose for Which the DataWere Collected Nature: The Content of the Data Dependability: Overall, How Dependable Are

    the Data

    Criteria for Evaluating Secondary Data

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    Criteria Issues Remarks

    Specifications &Methodology

    Error & Accuracy

    Currency

    Objective

    Nature

    Dependability

    Data collection method, response rate,quality & analysis of data, samplingtechnique & size, questionnaire design,fieldwork.Examine errors in approach,research design, sampling, data

    collection & analysis, & reporting.

    Time lag between collection &publication, frequency of updates.Why were the data collected?

    Definition of key variables, units of

    measurement, categories used,relationships examined.Expertise, credibility, reputation, andtrustworthiness of the source.

    Data should be reliable, valid,& generalizable to theproblem.

    Assess accuracy by comparingdata from different sources.

    Census data are updated bysyndicated firms.The objective determines therelevance of data.Reconfigure the data toincrease their usefulness.

    Data should be obtained froman original source.

    Table 4.2

    A Classification of Secondary Data

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    Secondary Data

    Ready toUse

    RequiresFurtherProcessing

    PublishedMaterials

    ComputerizedDatabases

    SyndicatedServices

    Fig. 4.1

    Internal External

    Internal Secondary Data

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    Department Store Project

    Sales were analyzed to obtain: Sales by product line Sales by major department (e.g., men's

    wear, house wares)

    Sales by specific stores Sales by geographical region Sales by cash versus credit purchases Sales in specific time periods

    Sales by size of purchase Sales trends in many of these classificationswere also examined

    Type of Individual/Household Level DataAvailable from Syndicated Firms

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    y

    I. Demographic Data

    - Identification (name, address, email,telephone)

    - Sex

    - Marital status

    - Names of family members

    - Age (including ages of family members)- Income

    - Occupation

    - Number of children present

    - Home ownership

    - Length of residence

    - Number and make of cars owned

    Type of Individual/Household Level DataAvailable from Syndicated Firms

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    II. Psychographic Lifestyle Data

    - Interest in golf

    - Interest in snow skiing

    - Interest in book reading

    - Interest in running

    - Interest in bicycling

    - Interest in pets

    - Interest in fishing

    - Interest in electronics

    - Interest in cable televisionThere are also firms such as Dun & Bradstreet and American BusinessInformation which collect demographic data on businesses.

    A Classification of Marketing Research Data

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    g

    SurveyData

    Observationaland Other Data

    ExperimentalData

    Fig.5.1

    Qualitative Data Quantitative Data

    Descriptive Causal

    Marketing Research Data

    Secondary Data Primary Data

    Qualitative Vs. Quantitative Research

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    Qualitative Research

    To gain a qualitativeunderstanding of theunderlying reasons andmotivations

    Small number of non-representative cases

    Unstructured

    Non-statistical

    Develop an initial

    understanding

    Objective

    Sample

    DataCollection

    Data Analysis

    Outcome

    Quantitative Research

    To quantify the data andgeneralize the results fromthe sample to the

    population of interest

    Large number ofrepresentative cases

    Structured

    Statistical

    Recommend a final course

    of action

    Table5.1

    A Classification of Qualitative ResearchProcedures

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    Association

    Technique

    s

    Completion

    Technique

    s

    ConstructionTechniques

    ExpressiveTechnique

    s

    Fig.5.2

    Direct (Non-disguised)

    Indirect(Disguised)

    Focus

    Groups

    DepthInterviews

    ProjectiveTechniques

    Qualitative Research

    Procedures

    Characteristics of Focus Groups

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    Group Size 8-12

    Group Composition Homogeneous, respondents,prescreened

    Physical Setting Relaxed, informal atmosphere

    Time Duration 1-3 hours

    Recording Use of audiocassettes andvideotapes

    Moderator Observational, interpersonal, andcommunication skills of the moderator

    Table5.2

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    Baltimore Research: Facility Overview.Source http://www.baltimoreresearch.com/marketing_research_facility.php?sPage=Facility

    One-way mirror

    http://www.baltimoreresearch.com/marketing_research_facility.php?sPage=Facilityhttp://www.baltimoreresearch.com/marketing_research_facility.php?sPage=Facility
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    Layout of focus group room andviewing room

    Viewing room looking into the focus group roomthrough one-way mirror

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    Source:

    www.campos.com/focusgs.htm

    Key Qualifications of Focus Group Moderators

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    y Q p

    1. Kindness with firmness: The moderator mustcombine a disciplined detachment withunderstanding empathy so as to generate thenecessary interaction.

    2. Permissiveness: The moderator must be

    permissive yet alert to signs that the groupscordiality or purpose is disintegrating.

    3. Involvement: The moderator must encourage andstimulate intense personal involvement.

    4. Incomplete understanding: The moderator mustencourage respondents to be more specific aboutgeneralized comments by exhibiting incompleteunderstanding.

    Key Qualifications of Focus Group Moderators

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    y Q p

    5. Encouragement: The moderator mustencourage unresponsive members toparticipate.

    6. Flexibility: The moderator must be able toimprovise and alter the planned outline amidthe distractions of the group process.

    7. Sensitivity: The moderator must be sensitive

    enough to guide the group discussion at anintellectual as well as emotional level.

    roce ure or ann ng an on uc ng ocusGroups

    Fi

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    Fig.5.3

    Determine the Objectives and Define the Problem

    Specify the Objectives of QualitativeResearch

    Develop a Moderators Outline

    Conduct the Focus Group Interviews

    Review Tapes and Analyze the Data

    Summarize the Findings and Plan Follow-Up Research orAction

    State the Objectives/Questions to be Answered by FocusGroups

    Write a Screening Questionnaire

    Variations in Focus Groups

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    Two-way focus group. This allows one targetgroup to listen to and learn from a related group.

    For example, a focus group of physicians vieweda focus group of arthritis patients discussing thetreatment they desired.

    Dual-moderator group. A focus groupconducted by two moderators: One moderator isresponsible for the smooth flow of the session,and the other ensures that specific issues arediscussed.

    Dueling-moderator group. There are twomoderators, but they deliberately take oppositepositions on the issues to be discussed.

    Variations in Focus Groups

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    Respondent-moderator group. Themoderator asks selected participants to play therole of moderator temporarily to improve groupdynamics.

    Client-participant groups. Client personnelare identified and made part of the discussion

    group. Mini groups. These groups consist of a

    moderator and only 4 or 5 respondents. Telesession groups. Focus group sessions by

    phone using the conference call technique. Online focus groups. Focus groups conducted

    online over the Internet.

    Advantages of Focus Groups

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    1. Synergism

    2. Snowballing3. Stimulation

    4. Security

    5. Spontaneity

    6. Serendipity7. Specialization

    8. Scientific scrutiny

    9. Structure

    10. Speed

    Disadvantages of Focus Groups

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    1. Misuse

    2. Misjudge

    3. Moderation

    4. Messy5. Misrepresentation

    Online Versus Traditional Focus Groups

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    Table

    5.3Characteristic Online Focus Groups Traditional Focus Groups

    Group size 4-6 8-12

    Group composition Anywhere in the world Drawn from the local area

    Time duration 1-1.5 hours 1-3 hours

    Physical setting Researcher has little control Under the control of the researcher

    Respondent identity Difficult to verify Can be easily verified

    Respondent attentiveness Respondents can engage in other tasks Attentiveness can be monitored

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    Table 5.3,

    cont.Respondent recruiting Easier. Can be recruited online, e-mail, Recruited by traditional meanspanel, or by traditional means (telephone, mail, mail panel)

    Group dynamics Limited Synergistic, snowballing(bandwagon) effect

    Openness of respondents Respondents are more candid Respondents are candid, except for due to lack of face-to-face contact sensitive topics

    Nonverbal communication Body language cannot be observed. Body language and emotionsEmotions expressed by using symbols observed

    Use of physical stimuli Limited to those that can be displayed A variety of stimuli (products,on the Internet advertising demonstrations, etc.) can be used

    Online Versus Traditional Focus Groups

    Table 5 3

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    Table 5.3,cont.Transcripts Available immediately Time consuming and expensive to

    obtain

    Observers communication Observers can communicate with the Observers can manually send noteswith moderator the moderator on a split-screen to the focus group room

    Unique moderator skills Typing, computer usage, familiarity Observationalwith chat room slang

    Turnaround time Can be set up and completed Takes many days for setup andin a few days completion

    Client travel costs None Can be expensive

    Client Involvement Limited High

    Basic focus group costs Much less expensive More expensive: facility rental,food, taping, transcript preparation

    Advantages of Online Focus Groups

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    Geographical constraints are removed and time

    constraints are lessened. Unique opportunity to re-contact group

    participants at a later date.

    Can recruit people not interested in traditionalfocus groups: doctors, lawyers, etc.

    Moderators can carry on side conversations withindividual respondents.

    There is no travel, videotaping, or facilities toarrange so the cost is much lower.

    Disadvantages of Online Focus Groups

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    Only people that have access to the Internet canparticipate.

    Verifying that a respondent is a member of a targetgroup is difficult.

    There is lack of general control over therespondent's environment.

    Only audio and visual stimuli can be tested.

    Products can not be touched (e.g., clothing) orsmelled (e.g., perfumes).