0Marketing Research 1 Marketing Dept 2Research Design 3Framework or plan for a study as a guide to collect and analyze data (Detailed blueprint to guide a study towards its objectives) 4Basic question: Which is the most appropriate research method(s) to solve the current marketing problems / research objectives? 5Types of Research Design Exploratory Descriptive Discover Ideas and Describe Trends or Insights Relationships Causal Determine Cause and Effect Our Notebook PC sales decrease. We don t know why. Tim e Uncertainty More specific Who buys our Notebook PC and who buys our competitor s? Does ad influence Notebook PC purchases? Qualitative 6Objectives of Exploratory Research 7Formulating Problems More Precisely 8Sales down only us? which region? repeat purchase vs. trial? 9Developing Hypotheses 10Sales down High price? Poor service quality? 11Establishing Priorities for Further Research 12Which attribute is more important? 13Clarifying Vague Concepts and Definitions 14Loyalty? Satisfaction? Fairness? 15Qualitative Research with Flexibility: Feelings, Thoughts, Intentions, Attitudes, etc. 16Examples 17A manufacturer observes sales of their new baby frozen food are not as high as they expected, but is not sure about the reasons. 18A luxury home builder wonder what features customers most want 19A restaurant is wondering if it has to improve its interior design or re-design its menu. 20A hospital wants to do some survey to measure the patient satisfaction, but it is not clear which items could be included in the questionnaire. 21Types of Exploratory Research
22Without Interactions 23Secondary Data Analysis 24Case Analysis 25Observational Methods 26With Interactions 27Individual In-depth Interviews 28Focus Group Interviews 29Projective Techniques 30Secondary Data Analysis 31One of the quickest and cheapest ways (e.g., Google) 32Academic Journals 33Journal of Marketing Research 34Journal of Marketing 35Marketing Science 36Journal of Consumer Research 37Trade Publications (e.g., PC World) 38Published Statistics (e.g., Statistics Canada) 39Library Databases (e.g., Business Source Premier) 40Case Study 41Learn from others 42e.g., Factors for success in restaurant business : compare some successful ones with other failed ones 43Searching new Insights not just an Explanation See the Big Picture 44Productive Cases Include 45Changes 46Extreme Comparisons 47Sequence of Events 48Benchmarking started by Xerox (Japanese Competitors) 49Observational Methods 50Most natural setting 51Sometimes the only alternative (e.g., kids) 52Types 53In the field: simple audit 54In the lab: better control on extraneous effects 55High-tech measurements: eye camera, voice pitch, etc. 56Only observing behavior, not underlying cognitive factors (e.g., motives, attitudes, intentions) 57Focus Groups 58Results from Group Interaction 598 to 12 members (Homogeneous) 604 groups or more (Heterogeneous) 61Objectives 62Generate Hypotheses for Further Testing 63Generate Information Helpful in Structuring Questionnaires 64Provide Background Info on Product Category 65Obtain Customer Impressions on New Product Concepts
79 e.g. 80 Woman 81 Household 82 At 66Learn Respondents vocabulary 67In-Depth Interviews 68Face to Face 69Most Flexible (Not Constraining Respondents) 70Experience survey with a key informant (e.g., CEO) 71Generally obtain deeper, thicker, and richer information 72Good for Socially Sensitive Issues 73Requires Highly Skilled Interviewers 74Problematic to Analyze due to Subjectivity 75Cost/Time-per-Respondent is High 76Generalizability Issue 77Objectives of Descriptive Research 78Describing consumer characteristics Weight Watchers average customer about 40 years old income of about $50,000 least some college education 83Estimating the proportion of people who have certain behavior or attitudes 84How many people support George W. Bush? 85Identifying consumer evaluations or attitudes 86How do my customers evaluate my product comparing to competitors products? 87Making Specific Predictions 88What would be the demand level for tablet PC over the next five years? 89Types of Descriptive Research Continuous Panel Longitudinal Descriptive Studies Discontinuou s Cross- Sectional Sample Survey
102 Continuous 90Longitudinal Analysis 91Measuring same variables over time 92More (demographic) information about the subjects 93More accurate by repeated measurements 94Less bias due to the interaction b/w an interviewer and the respondent 95More Insights 96The long-term relationship among variables 97Managerial implications from repeatedly-recorded behavior (e.g., brand switching matrix) 98Concerns 99Hard to Recruit Representative Panels 100Panel Attrition 101Cost Panel (Time Series Analysis) 103Relies on repeated measurements of the same variables and the same respondents 104Discontinuous Panel 105A sample is maintained, but the information collected from the members varies over time 106Panelists are readily available to participate 107Brand-Switching Matrix Brand Purchased 1999 2004 Japan U.S. Europe Others 200 300 400 100 300 200 300 200 v.s. 1000 1000 2004 Brand Purchased Japan U.S. Europe Others 1999 Japan U.S. Europe Others 100 100 100 0 50 100 40 10 50 50 200 0 0 50 60 90 200 300 400 100 300 200 300 200 1000 108Cross-Sectional Analysis 109Most frequently used 110A snapshot at a single point in time 111Sample selection is a key! (Sample Survey) 112Good tabulation is necessary 113Causal Research 114If-Then analysis 115If I change my Website design, then would consumer trust on purchasing online from my online store improve?
116If I lower the price, then what happen to my market share? 117The Scientific Concept of Causality 118One of many possible causes 119Probabilistic 120Based on inference 121The Evidence of Causality in MR 122Concomitant Variation 123Time Order of Occurrence of Variables 124Elimination of Other Possible Causal Factors 125Experimentation 126A Good Method for Causal Research due to Great Controllability 127Random Sampling 128Random Assignment 129Causal Factor Manipulation 130Types of Experiments 131Laboratory Experiment 132 Created Situation 133Shopping Trip Simulation 134Field Experiment 135More Realistic Situation (No Special Conditions) 136Recording Weekly Sales of Two Towns Having Different Prices 137Experimental Design: Examples One-Shot Case Study Manipulation X O Observation Convenience sample Little control Exploratory research 138Experimental Design: Examples
151 External One-Group Pretest-Posttest Posttest Pretest O 1 X O 2 Convenience sample Measuring marketing effectiveness by O 2 O 1 139Experimental Design: Examples Before-After with Control Group (R) (R) O 1 O 3 X O 2 O 4 (Experimental Group) (Control Group) Measuring the impact of experimental stimuli by (O 2 O 1 ) (O 4 O 3 ) Random assignment is important 140How Valid Are Experiments? 141Internal validity: is the result due to the experimental variables, not other factors? (High in Lab Experiment) 142Factors Undermining Internal Validities 143Extraneous Factors: External Events such as Competitors reaction, Seasonality, Strike 144Maturation: Changes Occurring within the Test Units (e.g., Respondents Getting Tired) 145Testing: Experiments itself may affect responses (e.g., The first test influences the second test) 146Instrument Variation: Variations in Administration (e.g., Telephone Survey, Interviews) 147Statistical Regression: Tendency of extreme cases to move closer to the average during an experiment (e.g., Alcohol) 148Selection Bias: The sample does not well represent the population Solved by Matching & Randomization 149Experimental Mortality: Loss of Test Units during an Experiment (e.g., Subjects Attrition) 150External validity: Can the result be generalizable? (High in Field Experiment) Validity Concerns 152Representative Sample 153Realism 154Generalizability
156 157Exploratory 160 164 165 173 187 Original 189 Data 171 design 155Summary of Research Designs 158Descriptive 159Causal Objective 161Discovery of ideas and insights 162Describe market characteristics or functions 163Determine cause and effect relationships Character -istics Methods 166Flexible 167Versatile 168Often the front end of total research design 174Expert surveys 175Secondary data 176Case studies 177Pilot studies 178Qualitative research 169Marked by the prior formulation of specific hypothesis 170Preplanned and structured 179Secondary data 180Surveys 181Panels 182Observational and other data 172Manipulation of one or more independent variables 183Experiments 184Where are we? Problem Formulation Research Design Data & Sample Design Data Collection Secondary Data Primary Data Analysis & Interpretation Communication 185Types of Data 186Primary Data data newly collected by the researcher for a particular study 188Secondary Data that have been gathered for a previous purpose and that might be relevant to the problem at hand
205 <18, 190Advantages of Secondary Data 191Cost and Time Saving (Cheap & Fast) 192Well Structured 193(Sometimes) More Comprehensive 194(Sometimes) More Accurate 195Why Secondary Data? 196 Rarely provide complete answer to your questions 197BUT they will. 198Help clarify the problem under investigation 199Suggest improved methods or data for investigating the problem 200Provide comparative benchmark against which primary data can be more insightfully interpreted 201Disadvantages of SD 202Problems of Fit 203Measuring units (e.g., Market Share: Revenue vs. Sales Volume, Consumer Income: Personal vs. Household, etc.) 204Class Definitions: Categorization (e.g., Age Groups, Income Level, etc.) 18-24, 25-34, 35-44, 206Publication Currency: Timeliness 207Accuracy The Balancing Act
208Types of Secondary Data Type Internal Examples Sales Invoices Salespeople Call Reports Membership Card Applications Warranty Cards Previous MR Reports External Published Directories Periodicals Statistical Sources (e.g., Census) Financial Sources Commercial Scanner Data Geodemographic data Store Audit Data Advertising exposure and effectiveness 209Internal Secondary Data 210Internal Data: Data that originate within the firm 211(e.g.) Sales by product line, major department, specific store, geographic region, and cash versus credit purchases 212Database Marketing & Mining: enrich relationship management 213Advantage: Availability and Low Cost 214Examples 215Sales and Cost Data 216Sales Invoice Data 217Individual Customer Records 218Credit Memos 219Warranty Cards 220Published External Secondary Data Searching Strategy Identify what you wish to know and what you l d 2. Develop a list of key terms and names. Search several of the general guides, directories, and b it 4. Compile the literature you have found. Rework your list of key words and authors if necessary. 5. Consult the reference librarian. 6. Identify authorities in the area and consult them.
221Commercial External Secondary Data (Standardized Information Sources) 222Types of Information Services 223Customer Profiles: 224Used for Market Segmentation 225B2B: business index services (e.g., www.dnb.com) 226B2C: identifying target customers (e.g., www.polk.com) 227Geodemographic Data 228Geographic Information Systems (GIS) software (e.g., www.caliper.com) 229Clustering based on zip codes (e.g., PRIZM; www.claritas.com) 230www.adage.com 231Product Sales and Market Share 232Diary panels 233Store audits 234Scanners 235Advertising Exposure and Effectiveness 236TV/Radio 237Print media 238Multi-media UPC
239Visual Impact of Scanner Data 180 160 140 120 100 80 60 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 240AD Exposure and Effectiveness 241TV/Radio 242Nielsen Television Index (Size and Nature of audience): Data are gathered through audimeter instrument 243Nielsen People Meters: Not only what program but also who in the household is watching? 244Print media 245Roper Starch Readership Service 246Annual survey with 50K personal interviews 247Nonreader Noted Associated Read most 248Compare: With norm, competitors Ad, Older Ad, etc. 249Primary Data Collecting your own data! What information do you need? Which types of research designs are appropriate? How do you obtain the necessary data? Exploratory Descriptive Communication vs. Observation Survey
250Types of Primary Data 251Demographic and Socioeconomic Characteristics (e.g., age, education, income, marital status, occupation, social class, etc.) 252Psychological and lifestyle characteristics (e.g., activities, interests) 253Types of Primary Data (Cont d) 254Attitudes and Opinions (e.g., preference, ideas, inclination, views, feeling, etc.) 255What do they like? 256Important forerunners of consumer behavior 257Awareness and Knowledge (e.g., recall, recognition) 258What do they know? 259Measuring advertising effectiveness 260Intentions (e.g., purchase plan) 261What are they going to do? 262Motivation (e.g., needs, wants) 263Why do they behave as such? 264Behavior (e.g., actions) 265What did they do? 266Obtaining Primary Data Communication Typical Survey In-depth Interviews Focus Group Interviews Projective Techniques Observation Unstructured vs. Structured Disguised vs. Undisguised Physical Traces ( Garbology ) More versatile Faster (but not always) More objective More accurate 267Focus Groups: Overview 268Results from Group Interaction 2696 to 12 members (Homogeneous) 2704 groups or more (Heterogeneous) 271Objectives 272Generate Hypotheses for Further Testing 273Generate Information Helpful in Structuring Questionnaires (Reveal Consumer Need, Motive, Perception, Attitudes, etc.) 274Provide Background Info on Product Category
275Obtain Customer Impressions on New Product Concepts 276Focus Group: Advantages 277Generate Fresh Ideas ( Snowballing Effect ) 278Allow Client to Observe the Group (Facilitate Client Understanding) 279Generally Versatile 280Work Well With Special Respondents (e.g., Primary school students) 281Focus Group: Drawbacks 282May not represent the Population (Small Sample) 283Interpretation is subjective (Needs a well trained analyst) 284The information provided by the participants is often very dramatic and memorable 285Cost per Participant is High (Phone Bill and $30 per show up) 286Projective Techniques 287When subjects are believed not (be able) to respond meaningfully to direct questions 288Ambiguous questions: attitudes, beliefs, feelings, etc. 289Sensitive questions: self-image 290Provide a mechanism for uncovering subconscious response 291Types 292Word association: brand image, brand naming, advertising slogans 293Sentence Completion 294Storytelling: Picture Interpretation, Balloon Test 295Survey: Advantages 296Standardization 297Ease of Administration 298Ability to Tap the Unseen 299Suitability to Tabulation & Analysis (Quantitative Method) 300Sensitivity to Subgroup Differences 301Survey by Method of Administration 302Personal 303Telephone 304Mail 305Fax 306E-mail 307Web 308Combination 309Comparing Administration Methods
Sampling Control Information Control Admin. Control Personal (Home or Mall) High response rates Best to contact specific, identified person Versatile in contents, sequence, forms, and stimuli Interviewer bias Expensive and slow Written (Mail, Fax, Web, E-mail) Telephone Difficult to design Only method for certain respondents Wide distribution Low response rate Relatively high response rate Wide distribution No interviewer bias Ensuring anonymity No clarification Less interviewer bias than in person Sequence control Least expensive Short response time (email) Long response time Quick turnaround Easy to get computer support Hard to design No visual aids