Marketing 3000 Joel Poor Fall 2011 Exam 2 Study Guide Chapter 9 Marketing Research and Information Systems Learning 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 available o 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 businesses o Saves time in collecting data o Cheaper Disadvantages o Originally collected for a different purpose may not fit your purpose o May be outdated o May not be trustworthy accurate unbiased it s from a different source so you had no control Primary data Primary data data collected to address specific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 questions o Offers behavioral insights not offered in secondary data Disadvantages o More costly o Takes longer o Requires more sophisticated training Step 3 Data Collection Process Exploratory research attempts to begin to understand the phenomenon of interest also provides initial information when the problem lacks any clear definition o Generally the first phase Conclusive research provides the information needed to confirm preliminary insights which managers can use to pursue appropriate courses of action o Generally the second phase o Often quantitative in nature o Enables researcher to test his or her predictions Exploratory Research Methods Observation examining purchase and consumption behaviors through personal or video camera scrutiny o 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 issue o i e asking teenagers in the mall questions and follow up questions o Allows for a deeper understanding o 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 inquiry o Video or audio taped to catch patterns of verbal nonverbal responses o 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 it o Qualitative Conclusive Research Methods Survey Research o Survey systematic way of collecting info from people usually uses questionnaire o 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 answers o 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 variable o Quantitative Scanner Research uses data obtained from scanner readings of UPC codes at check outs o Quantitative o Typically focuses on weekly consumption of a particular product at a given unit of analysis Panel Research collects info from a group of consumers the panel over time o Quantitative o 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 makers o 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 implement Chapter 5 Consumer Behavior Learning 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 knowledge o Friends family salespeople consumer reports magazines TV radio internet Factors that affect consumers search processes o Perceived benefits vs perceived costs of the search High costs search more Low costs search less o Internal vs External Locus of control Internal people control outcomes of their actions search more External fate controls outcomes search less o 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 make a decision o Compensatory decision rule consumers make tradeoffs between characteristics good characteristics compensate for bad characteristics o Noncompensatory decision rule choose product based off one characteristics regardless of values of other attributes o Decision heuristics mental