MKT 300 1nd EditionExam # 2 Study Guide Lectures: 11 - 15Chapter 7 Research BasicsTermsMarketing Research: procedures that develop and analyze new information about a market. For example, the use of questionnaires, interviews w/ customers, directly observing customers, experiments, and many other approaches. Role of research specialists, scientific method. Scientific Method: guides marketing research. A decision-making approach that focuses on being objective and orderly in testing ideas before accepting them.Experimental Method: researches compare the responses of two (or more) groups that are similar except on the characteristic being tested. Researches want to learn if the specific characteristic – which varies among groups – causes differences in some response among the groups. (For example, half see the add, does it affect who likes the product?)Population: the total group that marketing managers are interested in.Sample: a part of the relevant population.Validity: concerns the extent to which data measure what they are intended to measureHypotheses: marketing managers use their intuition and observations to develop educated guesses about the relationships between things or about what will happen in the future.Marketing Research Process: a five-step application of the scientific method that includes (1) defining the problem, (2) analyzing the situation, (3) getting problem-specific data, (4) interpreting the data, and (5) solving the problem.Situation Analysis: step 2 of the marketing research process. An informal study of what information is already available in the problem area.Secondary Data: information that has been published or collected already. Should be included in situation analysis. Ideally, much of this data should already be available from the firm’s MIS(?). Includes data inside of the company. For example: company files, intranet, reports, cost data, MIS. And data outside of the company: Internet, libraries, governments, etc. Primary Data: Information specifically collected to solve a current problem (step 3 of marketing research process – getting problem-specific data). Includes observation (i.e. equipment, website analysis, personal approaches) and questioning (i.e. in depth and focus group interviews, online, mail, phone, surveys, and panels).Research Proposal: a plan that specifies what information will be obtained and how – to be sure no misunderstandings occur later.Qualitative Research: Seeks in-depth, open-ended responses, not yes or no answers. Its real advantage is depth. But, it’s hard to measure the results objectively. It can be used to prepare for quantitative research.Focus Group Interview: One widely used form of qualitative questioning. It involves interviewing 6-10 people in an informal group setting. Uses open-ended questions. Wants to get group interaction.Quantitative Research: Seeks structured responses that can be summarized in numbers like percentages, averages, and other statistics. Most survey research is quantitative.Concepts to Apply1) T/F: Marketing research provides “the answer.” T/F: Marketing managers do not need to be involved in thedesign and scope of marketing research.a. False: Marketing research does not provide you with “the answer.” There is actually a high rate of failure in marketing research, but it can improve your odds.b. False: The role of a researcher is that of a consultant. They must partner with the requestor of researcher (the marketing manager).2) Why should companies follow a marketing research process? What is the most important step in that process?a. A process helps to avoid waste. b. The most important step in that process is defining the problem.3) Why is the distinction between a problem and a symptom important?a. The same symptoms can result from different problems. It is the researcher’s job to define the “right” problem. Perfect research on the wrong problem (or on a symptom) won’t provide a solution.4) When do you use primary vs. secondary data? What are the advantages to each?a. You conduct secondary data first. It is that has already been collected. Advantage: typically faster and cheaper. Disadvantage: might not be up to date and tell you everything you need to know.b. You conduct primary data if you still need more information. You go out and get your own problem-specific data doing marketing research: observe and/or question. Advantage: more specific to the problem and can be more beneficial. Disadvantage: more expensive5) What is the difference between qualitative and quantitative data? What are the strengths and weaknessesof each? What are the common methodologies of each?a. Quantitative Data: structured responses that can be summarized in numbers like percentages, averages, and other statistics. i. Strengths: projectable, fast. ii. Weaknesses: not very in depth.iii. Common Methodologies: use of structured questions in which responses have been predetermined and a large number of respondents involved. Most survey research.b. Qualitative Data: Seeks in-depth, open-ended responses, not yes or no answers. i. Strengths: depth. Accuracy. “Softer” opinions and ideasii. Weaknesses: hard to measure the results objectively. Not projectable.iii. Common Methodologies: used to prepare quantitative research. Involves collecting, analyzing, and interpreting data by observing what people do and say. 6) Most samples are not as accurate as census. Why do you sample instead of taking a census?a. The census may be more information than you need, and the time and money used to take the data of everyone may not outweigh the benefit of the information provided.7) What is meant by “validity”? Why does validity concern researchers?a. Validity is the idea of asking the right questions to measure what you want to measure.b. Research should consider: are you missing a critical question? Are the questions worded properly (double barreled, loaded, leading, or overstate)? Is the question order appropriate (sensitive should be last)? Are you asking the right people and the right number of people?c. Example: cookie question: how much would you pay for good cookies? Answer is not valid because we don’t know how many cookies you get.8) Research techniques are often combined to help define and solve complex issues. What techniques would you recommend to determine consumer receptivity to a brand new Breakthrough product idea? What techniques would you use to estimate the percent of