Exam 2 Study Guide Chapter 5 Market Research Questions to answer o What is marketing research Definition process of designing gathering analyzing and reporting information that may be used to solve a marketing problem Examples Product Development Pricing Studies Customer Satisfaction Assessments Distribution Analysis Promotion Effectiveness Studies Pricing Customer Satisfaction Increased wait times can signal higher quality Unknown waits seem longer than known waits Explained waits seem shorter o Where did it come from TQM total quality management 80 s How to run a better business Customer Orientation research to find customer reaction to product research to compare product to competitors Research to find problem with products o Why is it important Examples it decreases customer defection by 5 and increases profits by 25 100 Unhappy customers tell 9 12 others Customer loyalty is important Comcast Coke machines Cluster Analysis statistical analysis technique that identifies customer segments o What types are there o How s it done 6 types Food elites Friends of the farm badge wearers right choices passive eaters kid fluenced Applied Research research designed to solve a specific problem usually for a specific company Basic Research research designed to extend knowledge of marketing phenomena have you ever not complain example McDonalds So 33 630 of the daily service complaints are addressed Customer Complaints Service Provider Responsiveness 35 Sacrifice 25 Switching 15 Sympathy 9 o Problem Definition Qualitative research o Research Design Two Types of Data Exploratory Research Qualitative Research helps in problem solving as it allows the researcher to better define the problem by getting a look at it first hand Who Involved Manager Interviews Expert Interviews Secondary data Secondary information that has been collected for a purpose other than the research at hand like rate my professor customer reviews Primary information that has been gathered specifically for the research objectives at hand Information Types Make sure to understand examples and details Exploratory describes less structured data collection methods focus groups observation secondary source o Focus Group a flexible group discussion of a product ad or concept Descriptive describes the characteristics of a population Generally associated with surveys who buys what they buy when where how much Palcohol Cross tabs regression Causal identifies cause and effect between variables Correlation and Causation Experiments Chapter 6 Segmenting and Positioning Market Segmentation o Making sense of a huge market o Market Segmentation is the process of dividing up a market into smaller groups called segments The groups are designed to have similar wants and needs The idea is that firms can use their marketing mix to tailor products for the different groups Cluster Analysis takes all the consumers in a company s portfolio and finds costumers with similar wants and needs Then you target them Targeting Strategies o Undifferentiated Entire market is the target market 1 marketing mix Homogenous similar needs o Differentiated two or more segments More than 1 marketing mix The Gap o Concentrated single marketing segment 1 marketing mix Singles sites 3 Targeting Examples Segmentation Bases o Note that specialized subsets target specific customers A Bush Beer o Demographics describes characteristics of a population Gender age ethnicity education religion Coke Zero Doctor Pepper 10 o Geographic Region City Size Urban Rural Region McDonalds McRib o Psychographics Personality Motives Lifestyles Mountain Dew outdoors gaming o Behavioristic Usage Volume Benefits Loyalty Price Sensitivity Loyalty Programs rewarding high loyalty customers and less the lower ones o Use Related Segmentation Usage Rate high medium light and non users Awareness Status unaware aware interested enthusiastic Brand Loyalty none some strong o VALS Understand this concept Helps classify customers based on psychological characteristics that are correlated with purchasing behavior and related to key demographics o Nielsen s Claritas Forecasting specific time period o Sales Forecast the amount of a product a company expects to sell during a o Time Series Analysis using sales date to discover patterns in the firm s sales Trend Analysis using aggregate sales data from many years to determine Cycle Analysis Analyzing sales for three to five years to assess Seasonal Analysis Analyzing daily weekly or monthly sales to assess general trends consistent fluctuations seasonal influences o Regression Analysis Predicting sales based on finding a relationship between past sales and one or more independent variables seasons or other variables o Test market Making a product available to buyers in one or more test areas and measuring purchases and consumer responses Jacksonville because it is very diverse minor US market o Firms use multiple methods most markets use a variety of forecasting and market techniques Positioning o Product Positioning The process of developing and maintaining a product image in the minds of consumers High Low Price Quality Luxury Economy o Perceptual Maps BMW Example o Re positioning moving a product to fit a segment when it is out of place on a segment map Mini Cooper St Johns clothing Caddy Understand the final summary Chapter 7 Understanding Buyer Behavior What is Consumer Behavior What does Consumer Behavior reflect Reflects the overall decisions consumers make Visual consumption in order to show off one s status Why do people engage in conspicuous consumption to show off Keeping up with the Joneses Social needs signal wealth and status that comes with wealth What about Conspicuous Sellers Depends on the Relationship Norm Exchange Relationship quid pro quo Self interest Self serving And profit seeking Seller would dress a little nicer and such Communal Relationship concern for others kindness and responsiveness Not focused on reciprocation Willing to pay more for a non conspicuous than a conspicuous because the relationship is guided by warmth Groupon Regular coupon users come across as poor and cheap Groupon gives everyone a sense of a group where they feel better because its more accepted Clothing Size there is variation among stores Vanity Sizing When companies alter measurement specifications for clothing to help consumers to fit into smaller sizes Universal Human Need Pursue maintain enhance and protect self esteem Appearance self esteem influenced
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