MARK3001 1st Edition Lecture 4 Outline of Last Lecture I Laws and Regulations A They protect two things II Focus of legislation A To maintain a competitive environment Sherman and Clayton Acts B Fair prices a Robinson Patman price discrimination b Federal Trade Commission Act deals with price fixing which is when individual companies get together and set pricing ILLEGAL C Truthful Advertisement a Wheeler Lea Act D Safe Products a Consumer Product Safety Commission b Food and Drug Administration III Competitive Environment A Who is Disney s competition a Direct Competition Brand b Indirect Competition Product c Competition for Discretionary IV Marketing Research A Definition B The Marketing Research Process 1 Identify Problem 2 Plan Design of Research 3 Specify Sampling Procedure 4 Collect Data 5 Analyze Data 6 Prepare Present Report 7 Follow Up C STEP 1 Identify Problem D STEP 2 Plan Research Design a Decide on Type of data needed Primary or Secondary and method of collecting primary data 1 Secondary 2 Primary b c d e a Observation b Experimentation c Surveys Observation Research Experiments field or lab Survey Research Issues with surveys Interviewer Bias Sugging Outline of Current Lecture I Marketing Research A STEP 2 Plan Research Design a Questionnaire Issues Types of question Ordering of questions Wording of questions c Common types of questions i Likert Scale Wendy s Food was Excellent Strongly Disagree Disagree Uncertain Agree Strongly Agree ii Semantic Differential The food at Wendy s was Excellent x Awful Healthy x Unhealthy Old x Fresh iii Projective Technique If a Wendy s burger could talk to a McDonald s burger what would it say d Questions to avoid i Leading Questions worded and designed to make the person feel as if they should answer a certain way ii Loaded Questions Do you agree that we should lengthen prison times so that vicious awful criminals can t get out and kill innocent good people iii Double Barreled Question Athens is a CLEAN and FRIENDLY city iv Jargon or Inappropriate terminology Example Do you believe the FED should adjust the discount rate v Ordering of questions e Sampling Issues i Who is the population ii What will be used for the sampling frame f Types of Samples i Probability Sample statistically valid every element in population universe has known probability of being selected 1 Stratified Random generally used when you have group with characteristics of interest that are not all equally represented ii Non Probability Sample not statistically valid no attempt to be representative A STEPS 3 and 4 Collecting and Analyzing Data a Often outsourced collection b Select appropriate statistical methods B STEPS 5 and 6 Report and Follow Up a Report i Concise statement of the research objectives and design ii Summary of major findings and recommendations b Follow Up i Were recommendations implemented Did they work Why or why not II Competitive Intelligence a Legally finding out what your competitor is doing III Consumer Behavior a How we buy i Determined by purchase involvement b Low Involvement Purchases i Characteristics of low involvement purchases ii Types of buying processes used 1 Routine response behavior habitual iii How marketers try to influence 1 In Store promotion 2 Link to high involvement issue c High Involvement Purchases i Characteristics of high involvement purchases Current Lecture IV Marketing Research A STEP 2 Plan Research Design a Questionnaire Issues Types of question Ordering of questions Wording of questions g Common types of questions iv Likert Scale Wendy s Food was Excellent Strongly Disagree Disagree Uncertain Agree Strongly Agree v Semantic Differential The food at Wendy s was Excellent x Awful Healthy x Unhealthy Old x Fresh notice the good option is on the opposite side as the others It is good to reverse every couple of questions to keep participant engaged vi Projective Technique If a Wendy s burger could talk to a McDonald s burger what would it say Example Mr Brawny paper towels conducted a projective technique survey and asked women If you were stuck in an elevator with Mr Brawny how would you feel h Questions to avoid i Leading Questions worded and designed to make the person feel as if they should answer a certain way ii Loaded Questions emotionally charged hot button question almost always a leading question Example Do you agree that we should lengthen prison times so that vicious awful criminals can t get out and kill innocent good people iii Double Barreled Question Athens is a CLEAN and FRIENDLY city Person answering could think Athens is CLEAN but not FRIENDLY and therefore they can t provide an honest and clear answer iv Jargon or Inappropriate terminology Example Do you believe the FED should adjust the discount rate 1 What is the FED exactly 2 What s a discount rate 3 Does adjust mean raise or lower 4 The person you are asking will not usually say that they don t understand and will instead just give you an answer v Ordering of questions sensitive and personal questions should go at the end income savings age GPA etc as well as more difficult questions i Sampling Issues i Who is the population 1 The universe of interest 2 Usually is the target market or the potential target market ii What will be used for the sampling frame 1 Identification of universe a Device or list from which the potential respondents are selected 2 How do you know who is in the universe 3 What type of sample will be used j Types of Samples i Probability Sample statistically valid every element in population universe has known probability of being selected 1 Ability to generalize results 2 Random 3 Stratified Random generally used when you have group with characteristics of interest that are not all equally represented 4 Most difficult and most expensive to do ii Non Probability Sample not statistically valid no attempt to be representative 1 Must use judgment and or convenience to select sample 2 Can not generalize C STEPS 3 and 4 Collecting and Analyzing Data a Often outsourced collection b Select appropriate statistical methods D STEPS 5 and 6 Report and Follow Up a Report i Concise statement of the research objectives and design ii Summary of major findings and recommendations iii How did we do it What did we find This is what it means to you b Follow Up i Were recommendations implemented Did they work Why or why not V Competitive Intelligence a Legally finding out what your competitor is doing b Public dumpster space is legal