MKT473 Exam # 2 Study Guide - Online surveys, focus groups, advantages and disadvantages o Online surveys:  Advantages:- Rapid deployment, real-time reporting- Reduced costs- Ready personalization- High response rate- Ability to contact the hard-to-reach- Simplified and enhanced panel management - External Internet panels simplify life for research suppliers  Disadvantages - Same quality as telephone methods, mailing methods, etc.- Unrestricted Internet sampleo When anyone can take a survey online more than once- Sample frame might not be available on the Internet o Online Focus Groups Advantages- Lower costs- Faster turnaround time- Respondents ability to be geographically separated and located anywhere- Increased openness on the part of respondents  Disadvantages- Group Dynamics - Nonverbal Inputs- Client Involvement - Exposure to External Stimuli- Role and Skill of the Moderator - Different types of online focus groupso Real-Time Online Focus Groups Lasts 45-50 minutes one time dealo Time-Extended Online Focus Groups Lasts 5 to 10 days and participants log in everyday- Primary and Secondary Datao Primary: new data gathered to help solve the problem under investigation o Secondary: data that have been previously gathered - Different types of secondary research and sources it can come fromo Internal Databases Collection of related information developed from data within the organization  Database Marketing- Marketing that relies on the creation of a large computerized file of customers’ and potential customers’ profiles and purchase patterns to create a targeted marketing mix - May be based on call reports  Data Mining - The use of statistical and other advanced software to discover nonobvious patterns hidden in a database - Looking for nonobvious patterns in the data; following the trailo Customer acquisition (grandparents & rap music)o Customer retention o Customer abandonmento Market based analysis (e.g., Farmer’s Group & sports cars) Behavioral Targeting - The use of online and offline data to understand a consumer’s habits, demographics, and social networks in order to increase the effectivenessof online advertisingo Combines databases to target more specifically  Battle over Privacy- Concerns about identity theft - Use of our personal information and getting paid for it o External Databases - Advantages and Disadvantages of secondaryo Advantages Help to clarify or redefine the problem during the exploratory research process  Actually provide a solution to the problem  Provide primary data research method alternatives  Alert the marketing researcher to potential problems and/or difficulties  Provide necessary background information and build credibility for the research report  Provide the sample frame o Disadvantages  Lack of availability  Lack of Relevance Inaccuracy Insufficiency - Observation research and the different typeso Natural vs. Contrived  Natural: to go grocery store, watch you shop Contrived: told you to pick out orange and watched processo Open vs. disguised  Open: know that you are being watched Disguised: do not know you are being watched o Human vs. machine Human: human might pick up on certain things more, assigns value to things, biased Machine: not biased, might miss information, accurate cheap, go where humanscant o Direct vs. Indirect  Direct: mall intercept, ask to see woman’s purse and watch them dump it out Indirect: later date trying to figure out what they did previously - When observational research is appropriate o Must be observableo Must be repetitive, frequent, or predictableo Must be of relatively short duration- Mystery shopping (4 different levels of how we broke it down)o Callo Quick Purchases o Interact with employees o Very involved purchase (time and effort)- Ethnography advantages and disadvantages o Study of human behavior in its natural context, involving observation of behavior and physical setting o Happens before the focus groupo Advantages: Reality-based  Reveal unexpressed needs and wants Discover unexploited consumer benefits Reveal product problems Peoples behaviors on shopping Show who in the family uses the product Takes advantage of consumers’ experiences with the category  Test new procedures in a real context Reveal advertising execution ideas Better relationship with your consumers o Disadvantages - Experiments o Independent or treatment variable (x) What you manipulate (advertising levels of campaign) May have multiple levels of X, including a status quo group too(no change in independent variable) Can also have multiple X’s (changing price and advertising)o Dependent variable (o) Is what you measure (sales, attitude change)- Test markets (normally address, 4 things)o Real world testing of a new product or some element of the marketing mix using an experimental or quasi-experimental design.  Traditional or standard Scanner or electronic Controlled test markets Stimulated Tests markets - Levels of measurement (4 levels, nominal, ordinal, etc.)o Nominal  Scales that partition data into mutually exclusive and collectively exhaustive categories o Ordinal  Scales that maintain the labeling characteristics of nominal scales and have the ability to order datao Interval Scales that have the characteristics of ordinal scales, plus equal intervals between points to show relative amounts; they may include an arbitrary zero point o Ratio  Scales that have the characteristics of interval scales, plus a meaningful zero point so that magnitudes can be compared arithmetically - Validity and Reliability (construct, etc.)o Validity: The degree to which what the researcher was trying to measure was actually measured o Reliability: Degree to which measures are free from random error and, therefore, provide consistent data- Measurement process (pg. 278, 4 steps, two different types of definitions)o Identify the Concept of Interesto Develop a Construct Specific types of concepts that exist at higher levels of abstractiono Define the Concept Constitutively  Statement of the meaning of the central idea or concept under study, establishing its boundaries; also known as theoretical, or conceptual definitiono Define the Concept Operationally  Statement of precisely which observable