MARK3001 1st Edition Lecture 4 Outline of Last Lecture I. Laws and Regulations:A. They protect two thingsII. Focus of legislationA.To maintain a competitive environment (Sherman and Clayton Acts)B.Fair prices:a.Robinson Patman – price discriminationb.Federal Trade Commission Act – deals with price fixing, which is whenindividual companies get together and set pricing (ILLEGAL)C.Truthful Advertisement:a.Wheeler-Lea ActD.Safe Products:a.Consumer Product Safety Commissionb.Food and Drug AdministrationIII. Competitive EnvironmentA. Who is Disney’s competition?a. Direct Competition/Brand b. Indirect Competition/Product c. Competition for Discretionary IV. Marketing ResearchA. DefinitionB. The Marketing Research Process – 1. Identify Problem2. Plan Design of Research3. Specify Sampling Procedure4. Collect Data5. Analyze Data6. Prepare/Present Report7. Follow UpC. STEP 1 – Identify ProblemD. STEP 2 – Plan Research Designa. Decide on…- Type of data needed (Primary or Secondary) and method of collecting primary data1. Secondary2. Primarya. Observationb. Experimentationc. Surveysb. Observation Researchc. Experiments (field or lab)d. Survey Researche. Issues with surveys:- Interviewer Bias- SuggingOutline of Current Lecture I. Marketing ResearchA. STEP 2 – Plan Research Designa. Questionnaire Issues- Types of question- Ordering of questions- Wording of questionsc. 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 _ _ _ AwfulHealthy_ _ _ x _ _UnhealthyOld_ _ _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 wayii. 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 questionse. 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 representedii. Non-Probability Sample – not statistically valid no attempt to be representativeA. STEPS 3 and 4 – Collecting and Analyzing Dataa. Often outsourced collectionb. Select appropriate statistical methodsB. STEPS 5 and 6 – Report and Follow Upa. Report:i. Concise statement of the research objectives and designii. Summary of major findings and recommendationsb. Follow Up:i. Were recommendations implemented? Did they work? Why orwhy not?II. Competitive Intelligencea. Legally finding out what your competitor is doingIII. Consumer Behaviora. How we buy:i. Determined by purchase involvementb.Low Involvement Purchases:i.Characteristics of low involvement purchases:ii.Types of buying processes used:1.Routine response behavior/habitualiii.How marketers try to influence:1.In-Store promotion2.Link to high involvement issuec.High Involvement Purchases:i.Characteristics of high involvement purchasesCurrent LectureIV. Marketing ResearchA. STEP 2 – Plan Research Designa. Questionnaire Issues- Types of question- Ordering of questions- Wording of questionsg. 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 _ _ _ AwfulHealthy_ _ _ x _ _UnhealthyOld_ _ _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 youwere 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 wayii. Loaded Questions – emotionally charged hot-button question, almost always a leading question. Example: “Do you agree thatwe 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 answeriv. 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 theydon’t understand, and will instead just give you an answerv. Ordering of questions – sensitive and personal questions should go at the end (income, savings, age, GPA, etc.) as well as more difficult questionsi. Sampling Issues: i. Who is the population?1. The universe of interest2. Usually is the target market or the potential target marketii. What will be used for the sampling frame?1. Identification of universea. Device or list from which the potential respondents are selected2. 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 results2. Random3. Stratified Random – generally used when you have group with characteristics of interest that are not all equally represented4. Most difficult and most expensive to doii. Non-Probability Sample – not statistically valid no attempt to be representative1. Must use judgment and/or convenience to select sample2. Can not generalizeC. STEPS 3 and 4 – Collecting and Analyzing Dataa. Often outsourced collectionb. Select appropriate statistical methodsD. STEPS 5 and 6 – Report and Follow