1 4 Conducting Marketing Research Chapter Questions What

1 4 Conducting Marketing Research

Chapter Questions § § § What constitutes good marketing research? What are the best metrics for measuring marketing productivity? How can marketers assess their return on investment of marketing expenditures? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -2

Venus Razor Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -3

What is Marketing Research? Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -4

Types of Marketing Research Firms Syndicated Custom Specialty-line Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -5

The Marketing Research Process § § § Define the problem Develop research plan Collect information Analyze information Present findings Make decision Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -6

Step 1: Define the Problem § § § Define the problem Specify decision alternatives State research objectives Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -7

Types of Research Exploratory Descriptive Causal Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -8

Step 2: Develop the Research Plan § § § Data sources Research approach Research instruments Sampling plan Contact methods Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -9

Data sources Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -10

Research Approaches § § § Observational and ethnographic Focus group Survey Behavioral Experimental Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -11

Focus Groups Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -12

Research Instruments § § § Questionnaires Qualitative Measures Technological Devices Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -13

Qualitative Techniques Word Associations Visualization Projective Techniques Laddering Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -14

Questionnaire Do’s and Don’ts § § § Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words § § § Avoid negatives Avoid hypotheticals Avoid words that could be misheard Use response bands Use mutually exclusive categories Allow for “other” in fixed response questions Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -15

Question Types - Dichotomous In arranging this trip, did you contact American Airlines? Yes No Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -16

Question Types – Multiple Choice With whom are you traveling on this trip? No one Spouse and children Children only Business associates/friends/relatives An organized tour group Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -17

Question Types – Likert Scale Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -18

Question Types – Semantic Differential American Airlines Large ………………. . . ……. Small Experienced…………………. …. Inexperienced Modern……………. …. . Old-fashioned Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -19

Question Types – Importance Scale Airline food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -20

Question Types – Rating Scale American Airlines’ food service is _____. Excellent Very good Good Fair Poor Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -21

Question Types – Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available? Definitely buy Probably buy Not sure Probably not buy Definitely not buy Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -22

Question Types – Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available? Definitely buy Probably buy Not sure Probably not buy Definitely not buy Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -23

Question Types – Completely Unstructured What is your opinion of American Airlines? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -24

Question Types – Word Association What is the first word that comes to your mind when you hear the following? Airline ____________ American ___________ Travel ____________ Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -25

Question Types – Sentence Completion When I choose an airline, the most important consideration in my decision is: ______________________________________ ______________________________________. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -26

Question Types – Story Completion “I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings. ” Now complete the story. ____________________________________ ________________ Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -27

Technological Devices § § § Galvanometers Tachistoscope Eye cameras Audiometers GPS Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -28

Sampling Plan § § § Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -29

Contact Methods Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -30

Pros and Cons of Online Research Advantages § Inexpensive § Fast § Accuracy of data § Versatility Disadvantages § Small samples § Skewed samples § Technological problems § Inconsistencies Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -31

What is a Marketing Decision Support System (MDSS)? § A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -32

Barriers Limiting the Use of Marketing Research § § § A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -33

Market Research Can Fail Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -34

Table 4. 3 Characteristics of Good Marketing Research § § § § Scientific method Research creativity Multiple methods Interdependence Value and cost of information Healthy skepticism Ethical marketing Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -35

What are Marketing Metrics? Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -36

Table 4. 4 Marketing Metrics External § § § § Awareness Market share Relative price Number of complaints Customer satisfaction Distribution Total number of customers Loyalty Internal § § § § § Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Awareness of goals Commitment to goals Active support Resource adequacy Staffing levels Desire to learn Willingness to change Freedom to fail Autonomy 4 -37

What is Marketing-Mix Modeling? Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -38

Figure 4. 2 Marketing Measurement Pathway Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -39

Figure 4. 3 Marketing Dashboard Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -40

Table 4. 4 Sample Customer-Performance Scorecard Measures § § § § % of new customers to average # % of lost customers to average # % of win-back customers to average # % of customers in various levels of satisfaction % of customers who would repurchase % of target market members with brand recall % of customers who say brand is most preferred Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -41

For Review § § § What constitutes good marketing research? What are the best metrics for measuring marketing productivity? How can marketers assess their return on investment of marketing expenditures? Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 4 -42

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