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OVERVIEW OF

MARKETING RESEARCH 450.305

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Myths about MR ITS ABOUT COLLECTING DATA! No, its about transforming data into information to aid

business decisions.

ITS ALL ABOUT STATISTICS! No, a lot of important research is conducted without even

involving numbers!

ITS ALL ABOUT TELEMARKETING! Definitely not! MR does not involve selling!

ITS ALL ABOUT THOSE ANNOYING PHONE SURVEYS! No, that is just one or many techniques used!

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Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing action

Monitor marketing performance

Improve understanding of marketing as a process

MR provides information to…

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The MR Context

Where does MR fit within business operations?Essentially, MR is directly related to the marketing practices of a companyFeeds into the marketing plan – product, pricing, promotion and distribution strategiesE.g. product development and optimisationE.g., promotional value propositions

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MR Suppliers & Services

LIMITED SERVICE

BrandedProducts

and Services

DataAnalysisServices

AnalyticalServices

Coding and Data Entry Services

Field Services

FULL SERVICE

SyndicateServices

StandardizedServices

Customized

Services

InternetServices

RESEARCHSUPPLIERS EXTERNALINTERNAL

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EthicsMR involves 4 stakeholders:

(1) marketing researchers, (2) the clients, (3) the respondents, and (4) the public.

An ethical issue or dilemma arises when the interests of these stakeholders are in conflict and when one or more of the stakeholders are lacking in their responsibilities” (Malhotra, p 24)Code of ethics – MRSA

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Marketing Research Determine the problem

Step 1:

Step 1: Determine the problem

PHASE I:Establish the research parameters

Definition of the decision problem Determine if problem is a symptom or a true problem, then precisely

specify the decision problem

Specification of the research question The most critical step in the marketing research process Reformulate in scientific terms and restate the initial variables (how,

what, where, when or why) Definition of the research objective

Provide the guidelines for determining which other marketing research steps must be undertaken

Evaluate the information benefits Assess the expected benefits to be derived

Step 1:

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Management Decision Problem Vs. Marketing Research Problem

Management Decision ProblemShould a new product be introduced?

Should the advertising campaign be changed?

Should the price of the brand be increased?

Marketing Research Problem

  To determine consumer preferences & purchase intentions for the proposed new product.

To determine the effectiveness of the current advertising campaign.

 

To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.

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Task 2: Specify the Research Question

Once marketing research problem is identified – we need to develop specific research questions

How, when, where, who and why statements Exploratory applications

Or develop hypotheses Statements about possible relationships between two or more

market factors Includes the precise variables or constructs to be measured Generally based on already existing data – used to confirm!!

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Marketing Research Assess the data needs

Step 2: Assess Data Needs

PHASE I:Establish the research parameters

Determine the data needs Determine the data needed to execute the research Assess what types of information sources would be most

appropriate Determine whether the data can be collected at all Evaluate data availability and quality

Can the specific research question be addressed with existing data? Secondary data

Does the question require new, firsthand data?Primary data

Step 2:

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Uses of Secondary Data Save time and costs if relevant – e.g., case studies Often the starting point Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (for example, by

identifying the key variables) Answer certain research questions and test some

hypotheses Interpret primary data more insightfully

MUST EVALUATE SECONDAR DATA – E.G., PURPOSE, ACCURACY, TIME, METHODOLOGY, ETC

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Marketing Research Select the research design

Step 3: Select research design

PHASE II:Design the research

Step 3:

What is a research design?

A master plan of the methods and procedures that should be used A master plan of the methods and procedures that should be used to collect and analyse the data needed by the decision maker.to collect and analyse the data needed by the decision maker.

EXPLORATORY, DESCRIPTIVE AND CAUSAL DESIGNSEXPLORATORY, DESCRIPTIVE AND CAUSAL DESIGNS

Which research design is best?Which research design is best?Depends on the research objectives and the specific data Depends on the research objectives and the specific data requirements!requirements!

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Marketing Research Select the research design

PHASE II:Design the research

Step 3:

Exploratory Descriptive Causal

Qualitative Quantitative Quantitative

Focus groups

Depth interviews

Projective techniques

Surveys

Observation

Experimental;

field vs. lab

Research design

Research method

Research technique

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Marketing Research Select the research design

PHASE II:Design the research

Descriptive/causal Quantitative research methods: Conclusive, structured approach Emphasis is on measurement and quantification of numbers Surveys, observation (can be qual) and experiments (causal only)

Exploratory Qualitative research methods: Open-ended, unstructured flexible approach Emphasis on understanding Focus groups, IDIs, projective techniques

Step 3:

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Marketing Research Select the research design

Step 3: Select research design

PHASE II:Design the research

Step 3:

Qualitative Research

To gain a qualitative understanding of the underlying reasons and motivations

Small number of non-representative cases

Unstructured

Non-statistical

Develop an initial understanding

Objective

Sample

Data Collection

Data Analysis

Outcome

Quantitative Research

To quantify the data and generalize the results from the sample to the population of interest

Large number of representative cases

Structured

Statistical

Recommend a final course of action

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When to Use Qualitative Research Method

Interested in obtaining some preliminary insights into the motivational, emotional, attitudinal and personality factors that influence marketplace behaviours

E.g., identifying drivers/barriers of acquisition and choice of custom license plates In the process of correctly identifying a business problem or opportunity situation or

establishing information requirements

E.g., identifying issues of customer dissatisfaction in telecommunication services In the process of building theories and models to explain marketplace behaviours or

relationships between two or more marketing constructs

e.g., identifying those factors influencing brand loyalty in the shoe retail environment

Developing reliable & valid scale measurements for investigating specific market factors, consumer qualities and behavioural outcomes

E.g., important service quality or store attributes to include as items in a questionnaire Trying to determine the preliminary effectiveness of their marketing strategies on actual

marketplace behaviours

e.g., reactions to new advertising campaign or repositioning strategy. E.g Betts & Betts Betts Interested in new-product or service development or repositioning current product

images E.g., understanding attitudes and behaviour of grocery purchases and identifying interest in

buying groceries over the internet

…When decision makers or researchers are:

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When to use Quantitative Research

Quantitative research is often used for the following outputs for this study:

Describing market characteristics (e.g., attitudes, usage, etc)

Relative importance of factors on some dependent variable such as satisfaction, take-up

Demand/preference estimates for existing and potential products

Demand/preference changes at various price points (price elasticity)

Identification of key target segments

Market sizing

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A Classification of Qualitative Research Procedures

Malhotra, Fig. 5.2

Direct (Non disguised)

Indirect (Disguised)

Focus Groups Depth Interviews

Projective Techniques

Qualitative Research Procedures

i.e., the purpose of the project is not disguised

i.e., the purpose of the project is disguised

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A Classification of Observation Methods by Mode of Administration

Observation Methods

Personal Observation

Mechanical Observation

Trace Analysis

Content Analysis

Audit

Malhotra Fig. 6.3

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A Classification of Survey Methods

Traditional Telephone

Computer-Assisted Telephone Interviewing

Mail Interview

Mail Panel

Malhotra, Fig. 6.1

In-Home Mall Intercept

CAPI and Executive

E-mail Internet

Survey Methods

Telephone Personal Mail Electronic

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Types of Errors in Survey Research Methods

Sampling errorSampling error

Error associated with the sampled data results due to some form of natural random chance or random fluctuations in the data estimates.The statistically measured difference between the actual sampled results and the estimated true population results.

Error associated with the sampled data results due to some form of natural random chance or random fluctuations in the data estimates.The statistically measured difference between the actual sampled results and the estimated true population results.

Random sampling errors versus Non-sampling errors

Random sampling errors versus Non-sampling errors

Non-sampling or systematic error

Non-sampling or systematic error

All errors that enter survey research design that are not related to the sampling method or sample size.

All errors that enter survey research design that are not related to the sampling method or sample size.

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A Classification of Experimental Designs

Pre-experimental

One-Shot Case Study

One Group Pretest-Posttest

Static Group

True Experiment

alPretest-Posttest Control Group

Posttest: Only Control Group

Solomon Four-Group

Quasi Experimental

Time Series

Multiple Time Series

Statistical

Randomized Blocks

Latin Square

Factorial Design

Figure 7.1

Experimental Designs

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A Classification of Experimental Designs

Pre-experimental

One-Shot Case Study

One Group Pretest-Posttest

Static Group

True Experiment

alPretest-Posttest Control Group

Posttest: Only Control Group

Solomon Four-Group

Quasi Experimental

Time Series

Multiple Time Series

Statistical

Randomized Blocks

Latin Square

Factorial Design

Figure 7.1

Experimental Designs

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Marketing Research Determine the sampling plan

Step 4: Determine samplingPHASE II:Design the research

If secondary data is relevant, no sampling is necessary If primary data is sought, sampling is important Consideration must be given to:

The defined target population, a subset of the population selected for investigation, using either:

A census—includes every element A sample—a randomly selected sub-group of elements

If a sample is used, then the researcher must consider:

Probability sampling—a known, non-zero chance of selection Non-probability sampling—no known sampling error

Step 4:

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Classification of Sampling TechniquesMalhotra 2004, Fig. 11.2

Sampling Techniques

NonprobabilitySampling

Techniques

ProbabilitySampling

Techniques

ConvenienceSampling

JudgmentalSampling

QuotaSampling

SnowballSampling

SystematicSampling

StratifiedSampling

ClusterSampling

Other SamplingTechniques

Simple RandomSampling

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Determining Appropriate Sample Sizes

Three factors play a role in determining the ‘right’ sample size: The variability of the population

characteristic. The level of confidence desired in the

estimate. The degree of precision desired.

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Marketing Research Determine the measurement issues

Step 5: Determine measurementPHASE II:Design the research

Determine the dimensions of the factors being investigated and measure the variables The second most important step in the research process Key aspects include:

Operationalise – determine dimensions and then elements What level of information is needed from a variable?

scales required, rate or rank/compare? Validity and reliability required – face? Construct?

Content? Questionnaire design

Step 5:

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Levels of Scales There are four levels of scales of interest to

a research team: Nominal Ordinal Interval Ratio

These scales differ in terms of 4 properties: Assignment/naming Order Distance Origin

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Principles of Questionnaire Design

Content & purpose of question

SequencingWording & language

Type & form of question

Biases in question Classification

dataWording

Administration TestingQuestionnaire

Ch 9Principles of measurement

General Appearance

Cavana et al 2001

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Marketing Research Design the data collection forms

Step 6: Design data collectionPHASE II:Design the research

Determine whether to use questioning or observation techniques Questioning allows the researcher to collect a wider

array of data Pertains to current behaviour and state of mind Questionnaires are the preferred collection method

Observation Pertains to observable or measurable actions Professional observers or mechanical devices are used

Step 6:

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Marketing Research Prepare the data

Step 7: Prepare data

PHASE III:Execute the research

Perform procedural activities that occur before data analysis: Code the data Editing Enter the data Clean the data

Step 7:

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Marketing Research Analyse the data

Step 8: Analyse dataPHASE III:Execute the research

Select the data analysis technique most suited to the task Refer to your objectives Differing procedures allow the researcher to:

Tests of differences Tests of associations Refer to summary sheets for when to use each

technique and interpretation of output

Step 8:

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Marketing Research Transform the analysis results into information

Step 9: Communicate resultsPHASE IV:Communicate the research results

Create and communicate information Transform the results and findings into a narrative

interpretation A research report and presentation:

Integrates several pieces of the results into an understandable report The decision maker can then create an actionable plan to address

the initial decision problem The report might include:

Executive summary Introduction Problem definition and objectives Methodology, results and findings Limitations of the study

Step 9:

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Example short-answer exam questions Draw a diagram which shows the tasks involved in the first stage of the marketing research process?

Task 1: Define the decision problem Task 2: Specify the research question Task 3: Establish the research objectives Task 4: Evaluate the benefits of the expected information

What is the difference between a marketing research question and a hypothesis? Provide an example of each?MR questions are statements of how, who, what, when and why, typically used in exploratory applications – e.g., What are the key factors influencing satisfaction? Hypotheses are testable and “if-then” statements about possible relationships between two or more variables/constructs – e.g., H1: the higher the service quality, the higher the satisfaction.

Provide an example of an open-ended question? Develop a close-ended question.E.g., How would you describe your experience at UWA so far? (open-ended)Overall, has your experience at UWA been positive – yes/no/don’t know response. (closed-ended)

Offer a clearly focussed problem statement in the broad area of pricingE.g., do we increase our prices? Do we decrease our prices? What is the optimum price we can set before demand drops? What is the price-elasticity of our product?

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Example short-answer exam questions What is one situation when it may be more appropriate to use qualitative rather than quantitative research?

When there is a need to understand the reasons behind people’s behaviour (e.g., car choices) and little is known in the area. The findings can then be used as items in a questionnaire to quantify.

What is one difference between qualitative and quantitative research?Qualitative research relies on unstructured questioning with the human-as-an instrument, whereas quantitative research typically relies on precise measurement and structured questions.

What kind of analysis should be done when a researcher is interested in comparing male and female attitudes towards UWA and why?Independent sample t-test, because the DV is metric (assuming attitudes is measured on an interval scale) and there are two independent categorical groups (males and females). A t-test would compare the mean attitude ratings between males and females.

Long answer:

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Example long-answer exam questions For the following scenarios, recommend whether you would use observation or a survey

technique? Justify your answer. For the following scenarios, recommend whether you would use qualitative or quantitative

research is more appropriate. What technique would you use and justify your answers. For the following scenarios, would you recommend a probability or non-probability sampling

technique? Justify your answer. Management wants to know whether awareness and attitude towards Nike impacts on

purchase. Interpret the analytical findings below and write down what it means. Below are the outputs of bivariate regression analysis where purchase intentions is the

dependent variable and income is the independent variable. Interpret the analytical findings below and write down what it means.

Critique the following set of questions and make suggestions for improvements.

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Example long-answer exam questions For the following scenarios, recommend whether you would use observation or a survey

technique? Justify your answer. For the following scenarios, recommend whether you would use qualitative or quantitative

research is more appropriate. What technique would you use and justify your answers. For the following scenarios, would you recommend a probability or non-probability sampling

technique? Justify your answer. Management wants to know whether awareness and attitude towards Nike impacts on

purchase. Interpret the analytical findings below and write down what it means. Below are the outputs of bivariate regression analysis where purchase intentions is the

dependent variable and income is the independent variable. Interpret the analytical findings below and write down what it means.

Critique the following set of questions and make suggestions for improvements.