HIstory of Market research
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Questions and Answers

What year marked the launch of the third-party cookie?

  • 2000
  • 1995
  • 1992 (correct)
  • 1990

Which software is recognized as the first web log analysis tool?

  • NPS Tracker
  • Attest
  • Google Analytics
  • Analog (correct)

What primary metric does the Net Promoter Score (NPS) measure?

  • Sales growth
  • Market share
  • Customer satisfaction (correct)
  • Customer acquisition costs

In what year did Google Analytics debut?

<p>2005 (A)</p> Signup and view all the answers

What significant change did the rise of smartphones bring to market research?

<p>Faster access to consumer data (B)</p> Signup and view all the answers

Who founded the on-demand insights company Attest?

<p>Jeremy King (C)</p> Signup and view all the answers

What are the three categories of individuals based on their NPS responses?

<p>Promoters, passive, and detractors (A)</p> Signup and view all the answers

What type of data could the Analog software NOT provide?

<p>Visitor demographics (C)</p> Signup and view all the answers

What does Attest primarily allow brands to do?

<p>Collect on-demand consumer insights (A)</p> Signup and view all the answers

What is one criticism of the Net Promoter Score (NPS)?

<p>It is too simple a measurement (A)</p> Signup and view all the answers

What was the primary contribution of Daniel Starch to market research?

<p>He professionalised market research methodologies. (D)</p> Signup and view all the answers

The Starch Test was designed to measure which aspect of advertising?

<p>The effectiveness of ads in print media. (B)</p> Signup and view all the answers

How did George Gallup contribute to the credibility of market research?

<p>By correctly predicting presidential election outcomes. (C)</p> Signup and view all the answers

What statistical method did Gallup apply to assess public opinion during elections?

<p>He represented demographic groups proportionally in sample groups. (C)</p> Signup and view all the answers

What was a major transition in the market research industry over the last century?

<p>The advancement from door-to-door surveys to digital tools. (D)</p> Signup and view all the answers

Which of the following statements about Daniel Starch is incorrect?

<p>He was the first to conduct market research. (A)</p> Signup and view all the answers

Which prediction made by Gallup in 1936 was significant for survey research?

<p>He accurately predicted Franklin Roosevelt's victory. (D)</p> Signup and view all the answers

What characterized the market research methods before the recent advancements?

<p>They involved prolonged and laborious data collection. (D)</p> Signup and view all the answers

What was the primary aim of the US government in using focus groups during World War II?

<p>To influence public perceptions about Nazi propaganda (C)</p> Signup and view all the answers

Which tool was used by Lazarsfeld and Merton to analyze participant responses during their research?

<p>The Lazarsfeld-Stanton Program Analyzer (D)</p> Signup and view all the answers

In what way did Dichter's research change marketing strategies?

<p>By unlocking hidden consumer desires (B)</p> Signup and view all the answers

Which statistical technique did Paul Green develop for accurate marketing decisions?

<p>Conjoint Analysis (B)</p> Signup and view all the answers

What are the two components of the market segmentation model developed by Wind and Cardozo?

<p>Macro-segmentation and Micro-segmentation (B)</p> Signup and view all the answers

What is a key aspect of the theory of planned behaviour (TPB)?

<p>The importance of perceived behavioural control (B)</p> Signup and view all the answers

What component is NOT part of Fishbein's multi-attribute attitude model?

<p>Cognitive evaluations (B)</p> Signup and view all the answers

What significant impact did the arrival of the World Wide Web have on market research?

<p>It allowed tracking of consumer behavior online (D)</p> Signup and view all the answers

What was a finding from Lazarsfeld and Merton's research regarding American reactions to the broadcasts?

<p>The broadcasts decreased enthusiasm for joining the war (A)</p> Signup and view all the answers

Why did some clients feel alienated from Dichter's approach?

<p>His focus on sex-related motivations was overwhelming (B)</p> Signup and view all the answers

What was the primary goal of the focused interviews developed by Lazarsfeld?

<p>To observe and analyze human behavior in context (C)</p> Signup and view all the answers

What role did the government primarily see for the 'soul' of a product in Dichter's marketing philosophy?

<p>To connect with the consumer’s emotional identity (C)</p> Signup and view all the answers

How did Green's educational background contribute to his development of conjoint analysis?

<p>His mathematics degree allowed him to apply complex statistical methods (C)</p> Signup and view all the answers

Which aspect did the two-step market segmentation model address according to Wind and Cardozo?

<p>Grouping consumers by specific shared characteristics (D)</p> Signup and view all the answers

What was a key characteristic of the market research practices that emerged in the 1940s to 1960s?

<p>Shift towards understanding consumer behavior deeply. (B)</p> Signup and view all the answers

Which concept did Daniel Starch emphasize as essential for advertising effectiveness?

<p>Consumer engagement and recall. (D)</p> Signup and view all the answers

What method was developed by Lazarsfeld and Merton that gained traction in understanding consumer opinions?

<p>Focus groups. (B)</p> Signup and view all the answers

What significant change occurred in market research in the 1920s?

<p>Emergence of the quantitative questionnaire. (D)</p> Signup and view all the answers

How did George Gallup's approach to advertising differ from Daniel Starch's?

<p>He used aided recall to assess ad effectiveness. (D)</p> Signup and view all the answers

What was a major development in market research after World War II?

<p>Increased focus on understanding individual consumer behavior. (A)</p> Signup and view all the answers

What approach did Daniel Starch use to assess the effectiveness of advertisements?

<p>Street interviews to evaluate recall and recognition. (C)</p> Signup and view all the answers

What significant technique was introduced by Robert Merton and Paul Lazarsfeld in the late 1930s?

<p>The focus group methodology. (C)</p> Signup and view all the answers

What was a core belief of Ernest Dichter regarding consumer products?

<p>Every product has an inherent personality that influences consumer behavior. (B)</p> Signup and view all the answers

How did quantitative methods shift during the 1960s in consumer research?

<p>They re-emerged as a prominent focus due to new technological advancements. (D)</p> Signup and view all the answers

Which change was primarily instigated by the advent of the Internet in market research?

<p>The possibility of conducting large-scale surveys. (A)</p> Signup and view all the answers

What method did Dichter largely rely on in his consumer research?

<p>In-depth interviews resembling therapy sessions. (D)</p> Signup and view all the answers

What was the main criticism levied against Dichter's insights by some clients?

<p>They lacked practical application and were considered strange. (D)</p> Signup and view all the answers

Which approach became preferred during the 1970s in qualitative research?

<p>Focus groups exploring groups' opinions and dynamics. (D)</p> Signup and view all the answers

Which area did John Howard encourage the incorporation of into marketing academic research?

<p>Insights from various social sciences. (B)</p> Signup and view all the answers

What does the concept of Cultural Insights aim to provide in market research?

<p>An understanding of the ecosystem influencing consumer choices. (A)</p> Signup and view all the answers

What key shift in focus characterized marketers’ approaches to consumer behavior studies in recent times?

<p>Appreciating the wider emotional and experiential aspects of consumption. (C)</p> Signup and view all the answers

What significant benefit do integrated qualitative and quantitative approaches provide in modern market research?

<p>They give a comprehensive view of consumers at both individual and group levels. (A)</p> Signup and view all the answers

Flashcards

Who professionalized market research?

Daniel Starch, an American psychologist, was the first to professionalize market research by developing methodologies for it in advertising. He invented the Starch Test, which aimed to measure the effectiveness of advertisements.

What was the Starch Test?

The Starch Test was a method developed by Daniel Starch to measure the effectiveness of advertisements in newspapers and magazines. It involved door-to-door surveying to determine if people remembered and were influenced by ads in publications.

What makes an effective ad according to Starch?

According to Starch, an effective advertisement needs to be seen, read, believed, and acted upon. He believed that these four factors contributed to a successful ad campaign.

Who pioneered scientific polling techniques?

George Gallup, founder of the American Institute of Public Opinion (later Gallup), was a pioneer in scientific polling techniques. He believed that small samples could accurately represent the opinions of the general population.

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How did Gallup's method work?

Gallup divided the US electorate into specific demographic groups and proportionally represented them in a sample of 3,000 people. His sampling method was statistically sound and allowed for accurate prediction.

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What event solidified Gallup's credibility?

In 1936, Gallup’s method correctly predicted the outcome of the US presidential election, contradicting The Literary Digest, the leading poll at the time. This event increased public trust in survey research.

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What significant impact did these pioneers have?

The work of pioneers like Starch and Gallup revolutionized market research. They moved it from laborious methods to more scientific and reliable approaches, paving the way for the sophisticated tools we use today.

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What is the legacy of early market research pioneers?

The work of early market research pioneers like Starch and Gallup laid the groundwork for the modern market research industry, enabling us to gather insights more effectively and make informed decisions.

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Focus Groups

Small groups of people brought together to give feedback on products, services, or ideas.

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Lazarsfeld-Stanton Program Analyzer

An early computer used to analyze consumer responses during focus groups.

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Motivational Research

Studying the underlying reasons for consumers' choices and behaviors.

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Product Soul

The idea that products have a deeper meaning beyond their practical use, representing values and desired identities.

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Conjoint Analysis

A statistical method for predicting consumer choices by measuring their preferences for different product attributes.

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Macro-Segmentation

Dividing a market into large groups based on broad characteristics like demographics, geography, or psychographics.

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Micro-Segmentation

Further dividing a market into smaller, more targeted segments with specific needs and behaviors.

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Theory of Reasoned Action

Predicting behavior based on attitudes and intentions.

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Theory of Planned Behavior

Expands on TRA by considering perceived control over behavior.

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Multi-Attribute Attitude Model

Measures consumer attitudes by analyzing their beliefs, attribute linkages, and evaluations.

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Salient Beliefs

The most important beliefs consumers hold about a product or service.

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Object-Attribute Linkages

The connections consumers make between product attributes and their personal values.

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Evaluation

The positive or negative feelings a consumer has about a product attribute.

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Consumer Behavior Tracking

Monitoring how consumers interact with products and services online.

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Online Market Research

Using the internet to gather data about consumer preferences and behavior.

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Third-party cookie

A type of cookie used for tracking web users across different websites, allowing advertisers to build profiles and deliver targeted ads.

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Retargeting

A form of advertising that shows ads to users who have previously visited a website or interacted with a specific product.

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Web log analysis

The process of examining website data, such as visitor counts, page views, and geographic locations, to understand website usage patterns.

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Net Promoter Score (NPS)

A customer loyalty metric that measures how likely a customer is to recommend a company to others, using a scale of 1-10.

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Promoter, Passive, Detractor

NPS categorizes customers based on their likelihood to recommend a company. Promoters are highly likely, Passives are neutral, and Detractors are unlikely to recommend.

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On-demand insights

The ability to gather real-time consumer data, such as opinions and preferences, through online surveys and platforms.

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Attest

A market research platform that offers access to a large global audience for on-demand consumer insights.

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Traditional market research

The traditional process of gathering consumer data through time-consuming and expensive methods like surveys and focus groups.

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Consumer insights

Information about consumer behavior, preferences, and opinions that helps brands understand their target audience.

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Actionable insights

Consumer insights that can be used to make informed decisions and take action to improve products, marketing, or strategy.

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Starch Test

A method developed by Daniel Starch to measure the effectiveness of advertisements in publications by surveying people if they remembered and were influenced by ads.

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Aided Recall

A technique used in market research where respondents are prompted to recall an ad seen in a publication without actually showing it to them.

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Quantitative Surveys

Gathering data through structured questionnaires or surveys to obtain statistical information about a population.

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What evolved from focus groups?

Quantitative surveys like usage and attitude studies became more prevalent because researchers needed a more structured approach to gather data.

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How did Market Research evolve?

Early market research focused on quantitative methods like surveys and aided recall, but later shifted to qualitative approaches like focus groups and motivational research.

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Experiential Consumption

Focuses on the entire experience of owning and using a product/service, including emotions, feelings, and moods.

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Quantitative vs. Qualitative Research

Quantitative research uses numbers and statistics to analyze large datasets. Qualitative research explores in-depth insights using methods like interviews and focus groups.

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Consumer Ecosystem

Understanding the context surrounding consumers, including their environment, influences, and behaviors, beyond individual choices.

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Cultural Insights

Analyzing the cultural trends, values, and influences that shape consumer behavior and preferences.

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Semiotics

The study of signs and symbols used in marketing, analyzing how brands communicate meaning through images, language, and design.

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Social Listening

Monitoring online conversations and social media to understand customer sentiment, trends, and brand perception.

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Hyper-Segmentation

Dividing markets into extremely specific and targeted segments based on detailed customer data and preferences.

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Study Notes

Influential Figures in Market Research History

  • Daniel Starch: Professionalized market research, pioneered the Starch Test to measure ad effectiveness, using door-to-door canvassing on the street. He theorized advertising effectiveness centered around being seen, read, believed, remembered, and acted upon.
  • George Gallup: Pioneer in scientific polling techniques, developed sampling methods, notably correctly predicting the 1936 US presidential election. Further developed aided recall, a method for measuring ad effectiveness without showing the ad to the respondent, later used for radio and television.
  • Paul Lazarsfeld and Robert Merton: Developed focus groups, used a "button-pressing" system and follow-up interviews, analyzed public opinion on radio broadcasts (finding that some efforts backfired against goals).
  • Ernest Dichter: "Father of motivational research," applied Freudian psychoanalysis to marketing, emphasizing product "souls" embodying values and desires reflected in purchases. Influenced major brands, conducted in-depth interviews (ethnographic style) and observed consumer behavior in real or simulated environments.
  • Paul Green: Developed conjoint analysis, a statistical technique that aids brand managers in decision-making by predicting consumer choices based on preferences. Applied mathematical psychology to marketing.
  • Jerry Yoram Wind and Richard Cardozo: Pioneered industrial market segmentation with a two-step model (macro and micro-segmentation).
  • Martin Fishbein and Icek Ajzen: Developed theories of reasoned action and planned behavior to predict and influence human social behavior (Fishbein also developed a multi-attribute model for measuring consumer attitudes).
  • John Howard: Incorporated perspectives from social sciences (psychology, sociology, anthropology, semiotics, economics, and management science) into his research, encouraging multi-disciplinary approaches.

Key Developments in Market Research

  • Early Methods: Market research initially involved laborious door-to-door surveys.
  • Digital Advancements: Digital tools now allow faster, more accessible results.
  • Rise of Focus Groups: Focus groups became a significant research method.
  • Conjoint Analysis: Revolutionized understanding of consumer preferences.
  • Industrial Market Segmentation: Created models to categorize industrial customers.
  • Consumer Attitude Measurement: Improved understanding of consumer motivations and values.
  • Impact of the Internet and the World Wide Web: Revolutionized data collection and access to consumers (web analytics programs like Analog).
  • Emergence of On-Demand Insights: On-demand insights platforms like Attest facilitate quick, large-scale consumer surveys and data collection, lowering costs and time.
  • Net Promoter Score (NPS): A common method to gauge customer satisfaction and loyalty. Provides benchmarking against competitors.
  • Qualitative & Quantitative Approaches: Integrated approaches are gaining prominence, understanding consumers at individual and group levels, and recognizing consumer context.
  • Cultural Insights: Emerging techniques help analyze the ecosystem in which the consumer operates.
  • 1900s-1940s Quantitative Questionnaire Era: Introduction of market research. Daniel Starch employed door-to-door surveys to gauge ad effectiveness in print media. George Gallup refined aided recall techniques.

Key Concepts

  • Starch Test: Measures ad recall and impact in print media.
  • Conjoint Analysis: Used to predict consumer choices based on preferences.
  • Focus Groups: Gather qualitative data on reactions, beliefs, and opinions.
  • Industrial Market Segmentation: Categorizes industrial customers for better targeted marketing.
  • Theory of Reasoned Action and Planned Behavior: Models predict human behavior based on attitudes and intentions.
  • Multi-Attribute Attitude Model: Used to measure consumer attitudes based on beliefs and evaluations.
  • Net Promoter Score (NPS): Measures customer loyalty for benchmarking.
  • Motivational Research: Understanding hidden consumer desires, taboos, repressions, and secrets to develop effective marketing strategies.
  • Aided Recall: A method of measuring ad effectiveness in which consumers try to recall an ad without seeing it.
  • Usage and Attitude Studies: Quantitative surveys that were the standard during the 1940s-1960s period to understand consumers and their choices.

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Explore the groundbreaking contributions of key figures in market research history. From Daniel Starch's ad effectiveness tests to George Gallup's polling techniques, learn how these pioneers shaped the field. Discover how their innovative methods transformed marketing strategies and consumer understanding.

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