Marketing 3000Joel Poor, Fall 2011Exam 2 Study GuideChapter 9: Marketing Research and Information SystemsLearning Objective 4: What are primary and secondary data, and when should each be used? Step 1: Defining the Objectives and Research Needs Step 2: Designing the Research Project Secondary data- Secondary data- info already collected from other sources; usually are readily availableo i.e. Census data, sales invoices, the internet, books- Syndicated data- data available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen.o i.e. Prices of similar products, sales figures, growth/decline in category, advertising/promotional spending, shifting brand preference, household product usage, etc.o Helpful for companies can’t afford to do research on their own (ex. Consumer packaged goods firms that sell to wholesalers)- Most marketing research starts with secondary data, especially for small new businesseso Saves time in collecting datao Cheaper- Disadvantages:o Originally collected for a different purpose – may not fit your purposeo May be outdatedo May not be trustworthy/accurate/unbiased – it’s from a different source, so you had no control Primary data- Primary data- data collected to address specific research needs- Advantages:o Tailored to fit the pertinent research questionso Offers behavioral insights not offered in secondary data- Disadvantages:o More costlyo Takes longero Requires more sophisticated training Step 3: Data Collection Process- Exploratory research- attempts to begin to understand the phenomenon of interest; alsoprovides initial information when the problem lacks any clear definitiono Generally the first phase- Conclusive research- provides the information needed to confirm preliminary insights, which managers can use to pursue appropriate courses of actiono Generally the second phaseo Often quantitative in natureo Enables researcher to test his or her predictions Exploratory Research Methods- Observation- examining purchase and consumption behaviors through personal or videocamera scrutinyo i.e. watching teenagers shop for clothes at the mall- In-depth interview- trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issueo i.e. asking teenagers in the mall questions and follow-up questionso Allows for a deeper understandingo Can use results to develop surveys- Focus group interviews- a small group of persons (usually 8-12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiryo Video- or audio-taped to catch patterns of verbal & nonverbal responseso Qualitative data about reactions & opinions to potential business aspects (products, offerings, campaigns, displays, etc.)- Projective technique- subjects are provided a scenario and asked to express their thoughts and feelings about ito Qualitative Conclusive Research Methods- Survey Researcho Survey- systematic way of collecting info from people; usually uses questionnaireo Questionnaire- set of questions to gather info; unstructured or structured Unstructured questions- open-ended; respondents use their own words Structured questions- close-ended; discrete set of response alternatives or specific answerso Online survey benefits: High response rates Respondents may lie less Inexpensive Quick results- Experimental Research- systematically manipulates one or more variables to determine which variables have a causal effect on another variableo Quantitative- Scanner Research- uses data obtained from scanner readings of UPC codes at check-outso Quantitativeo Typically focuses on weekly consumption of a particular product at a given unit ofanalysis- Panel Research- collects info from a group of consumers (the panel) over timeo Quantitativeo Focuses on the total weekly consumption by a particular person or group of people Step 4: Analyzing Data- Should be thorough and methodical- Data- raw numbers or other factual info that, on their own, have limited value to marketers- Information- organized, analyzed, and interpreted data that is useful to marketing decision makerso To describe, explain, predict, and/or evaluate a particular situation Step 5: Presenting Results- Marketing research reports typically includes an executive summary, the body of the report (objectives, methodology, findings), the conclusions, the limitations, and appropriate supplemental tables, figures, and appendixes- Must be short, interesting, methodical, precise, lucid, and free of errors- Must recommend a set of actions that managers can actually implementChapter 5: Consumer BehaviorLearning Objective 2: When purchasing a product or service, do you spend a lot of time considering your decision? Search for information- Internal search for info- buyer uses his/her own memory and knowledge about the product or service from past experiences- External search for info- buyer seeks info outside his/her own personal knowledgeo Friends, family, salespeople, consumer reports, magazines, TV, radio, internet- Factors that affect consumers’ search processeso Perceived benefits vs. perceived costs of the search High costs- search more Low costs- search lesso Internal vs. External Locus of control Internal- people control outcomes of their actions; search more External- fate controls outcomes; search lesso Actual vs. perceived risk High risk- search more Performance risk- will the product/service perform well or fail? Financial risk- what are initial and continued costs of buying/using it? Psychological risk- what image does this product convey?o Type of product or service Specialty- spend much effort; car, house Shopping- spend fair amount of time; apparel, appliances Convenience- little effort; beverages, bread, soup Evaluation of Alternatives- Attribute sets- Universal sets- all possible choices- Retrieval sets- brands/stores that easily come to mind- Evoked sets- brands/stores the consumer would consider- Evaluative criteria- set of important attributes about a particular product- Determinant attributes- features that are important to buyer & differ between competing brands- Consumer decision rules- criteria used to quickly & efficiently to