Chapter 10 Marketing Research The Research Process 1 Defining objectives and research needs 2 Designing the research 3 Data collection process 4 Analyzing data an developing insights 5 Action plan and implementation Step 1 Defining Objectives and Research Needs What information is neede to answer specific research questions How should that imformation be obtained Step 2 Designing the Research Type of data Secondary vs Primary Type of research Qualitative vs Quantative Step 3 Data Collection Process Types of Data Seconday data Marketing Data Primary Data Secondary Often begins with a review of the relevant secondary data Might come from free or very inexpensive external sources Pieces of information collected prior to this research Include internal and external data source Looking things up What information is neede to answer specific research questions How should that imformation be obtained Seconday dataMarketing DataPrimary Data Inexpensive External Secondary Data Not adequate to meet researchers needs Government Sources Census o Great source of demographic data about a particular market area o Data collected beginning of every decade quickly outdated Syndicated External Secondary Data Available for a fee from commercial research firms Shows firms what customers are buying and not buying o ACNielson track CPGs at point of sales scanner data o JD Powers customer satisfaction data Scanner data o Used in quantitative research obtained from scanner reading of UPC labels at check out counters Panel data o Information collected from a group of consumers organized into panels over time Include records of what they have purchased Company s sales invoice customer lists and other reports generated by Internal Secondary Data the company itself Data Warehouse large computer files Data Mining a variety of statistical analysis tools to uncover previouly unknown patterns in the data or relationships among variables Churn o The number of participants who discontinue use of a service divided by the average number of total participants Primary Data Collection Techniques Qualitative methods o Understand the phenomenon if interest through broad open ended responses o Provides initial information that helps the researcher more clearly formulates the research methods o Generally in depth and unstructured o Includes Observation Focus groups In depth interviews Data Warehouse large computer filesData Mining a variety of statistical analysis tools to uncover previouly unknown patterns in the data or relationships among variables Social media research Quantitative Research Structured responses that can be statistically tested Provides information need to confirm insights and hypotheses generated via qualitative research or secondary data and helps managers pursue appropriate courses of action Large numbers of respondents Statistically valid Can generate Observation Research Examining purchase and consumption behaviors though personal or video camera scrutiny Last for a very brief period of time may take days or weeks Manual Mechanical Ethnographic In depth Interviews Trained researchers ask questions listen to and record the answers and then pose additional questions to clarify or expand on a particular issue Limited numbers Somewhat unstructured Time consuming and costly Not limited to new products though Focus Groups Small group of people come together for an intensive discussion about a particular topic Group of 8 12 consumers Discuss one topic Usually record the interactions by video or audiotape so they can carefully Facilitation by trained moderator comb through the interviews Social Media Research o Provide valuable information that could aid their marketing research and o Rarely shy about providing their opinions about the firm s own products strategy endeavors or its competitor s offerings Blogs o Represents valuable sources of marketing research insights o Challenging for firms o Monitoring blogs o Online communities Sentiment mining o Using social media sites like Facebook Twitter and online blogs to collect customer comments about companies and their products o Yield qualitative data that provide new insight into what consumers really think Experimental Research A type of quantitative research that systematically manipulates one or more variables to determine which variables has a cause effect on other variables Changing a variable and analyzing results Usually change one of 4 Ps and look at either sales or awareness Field or Lab Survey Research A systematic means of collecting information from people using a questionnaire Questionnaire o A form that features a set of questions designed to gather information from respondents and thereby accomplishes the researchers objectives o Part art and part science o Questions can not be misleading in any fashion o Must address one issue at a time o Appearance must be professional and easy to follow with appropriate instructions in suitable places Unstructured Structured Questions o Open ended and allow respondents to answer in their own words o Closed ended questions for which a discrete set of response alternatives or specific answers is provided for respondents to evaluate o Telephone interviews 10 15 response rate 30 40 for avg 20 mins o Mail Surveys 1 2 response rate o Internet Surveys many responses 30 35 response rate 7 10 o Offline Surveys Relatively high Offers researchers the chance to develop a database quickly with More direct approach that include interaction with target market o Mall Intercept Interviews o In person interviews Surveys people as they walk out to help mangers o Presence of interviewers may change responses Consumer unwillingness to participate Issues with Surveys Interviewers bias o To increase Questionnaire Issues Types of questions Ordering of questions Wording of questions Common Types of Questions Structured Choices are provided o Likert scale Semantic Differential Unstructured Choices are not provided Projective technique Fill in the blank Questions to avoid Leading Double barreled Consumer unable to answer Jargon or inappropriate Ordering of Questions Sensitive Personal questions at end More difficult questions at end Primary Data collected specifically for this research Creating new information Sampling Issues for Primary Data Who is the population What will be used for the sampling frame Device or list from which the potential respondents are selected o How do you know who is in the universe What type of sample