Intro to Marketing Research, Key Elements

• A social security number is an example of a nominal scale.
• The first company to conduct marketing research was Curtis Publishing Company.
• It is important to set a timeline with your project proposal.

Marketing Research

• Marketing research is an organization's formal communication link with its environment.
• It involves designing, gathering, analyzing, and reporting information.
• This information may be used to solve a specific marketing problem.
• It helps organizations gather and interpret data for informed decisions.
• Marketing research began in 1879 with N.W. Ayer & Son.
• Early research focused on collecting data on agricultural machinery producers.
• The industry grew significantly after WWII.
• Marketing research is used by producers of products and services, advertising agencies, and marketing research firms.

Elements of a Survey

• Key elements to consider are Price, Product, Publicity, and Promotion.
• Product refers to the good or service being marketed.
• Price is the cost of the product or service.
• Publicity encompasses distribution channels and placement.
• Promotion is the communication mix used for advertising.

Planned Change & Role of Managers

• Planned change involves proactively looking forward and making voluntary changes.
• Unplanned change involves responding to unforeseen changes in the marketing environment.
• Managers in marketing research bridge data analysis and strategic decision-making.
• They ensure research aligns with business objectives.
• Research findings are used to guide business strategies.

Types of Decision Problems

• Normal thinking involves a routine approach to business decision-making.
• Discovery-oriented decision problems ask "what" or "why" to generate information without directly leading to a decision.
• Strategy-oriented decision problems determine how information will be used to make decisions.

Key Parts of a Timeline

• A timeline includes preliminary investigation.
• It also includes final test of questionnaire.
• Sample selection is key.
• Mail questionnaire and follow-up is important.
• Finally, Analysis & Final Report Preparation

Research Types

• Exploratory research is a fact-finding mission that gathers information, clarifies problems, and generates hypotheses. Steps include:
  • Defining the problem
  • Developing questions
  • Gathering data (literature reviews, focus groups, interviews)
  • Interpreting findings
  • Generating hypotheses
• Descriptive research gathers specific data and describes the characteristics of a population. There are two types:
  • Cross-sectional (one-time sample)
  • Longitudinal (data collected over time), e.g., the U.S. Census
• Causal research tests hunches through experiments, establishing cause-and-effect relationships. It involves experiments and market testing.
  • Testing if cereal box sturdiness influences purchase behavior is an example.

Task Force & Focus Groups

• A task force is a team assigned to solve specific organizational problems.
• Focus groups are a qualitative data collection method:
  • The moderator guides discussions to gather insights, and controls the conversation and direct questions.

New Coca-Cola Product Failure

• New Coke (1984) was designed to compete with Pepsi but failed due to brand loyalty issues and was reversed in three months.

Hypothesis & Request for Proposal (RFP)

• A hypothesis is a statement describing the relationship between two or more variables.
• An RFP is a document companies issue to marketing firms for research assistance.

Additional Key Terms

• Sugging involves misleading consumers by conducting research with hidden sales motives.
• Secondary data is previously collected data used for new research.
• Data collection rules: Involve deciding between primary or secondary data.
  • Identify sources (internal, external, syndicated services).
  • Choose observational or communication methods.
• Mystery shoppers are individuals who evaluate a company's customer service and operations.

Attitudes & Lifestyle Characteristics

• Attitudes: Evaluations (positive, negative, neutral) toward a brand.
• Measuring Attitudes: Self-reports, Likert scale.
• Lifestyle Characteristics: Understanding customer habits, values, and preferences.
• Demographic/Socioeconomic Characteristics: Age, gender, income, education, occupation.

Behavior, Personality, Motivation, & Intention

• Behavior & Perceptions: Observing customer actions and preferences.
• Personality: Distinguishable traits influencing consumer choices.
• Motivation: Driving force behind purchasing decisions.
• Intention: Predicting customer likelihood of making a purchase.

Web Analytics & Data Mining

• Web Surfing: Tracking online behavior for marketing insights.
• Web Shadowing: Observing user actions on digital platforms.
• Data Mining: Using analytics to uncover patterns in large datasets.

Recall Tests & Research Methods

• Day After Recall (DAR) measures ad effectiveness by asking consumers what they remember the next day.
  • For example, recall of a Super Bowl Mountain Dew commercial two days after the Super Bowl.
• Observational Research: Studying consumer behavior in a natural setting.
• Ad Recall Surveys: Determines how well consumers remember advertisements.
• Open-ended questions: For example, “What do you think about our product?"
• Closed-ended questions: For example, “Do you like our product? (Yes/No)"

Measurement Scales & Reliability

• Nominal: Categories (e.g., social security number) with no real order/rank.
• Ordinal: Ranked data (e.g., education levels) with rank features.
• Interval: Equal intervals, no true zero (e.g., temperature).
• Ratio: Absolute zero exists (e.g., income, weight).
• Reliability: Consistency in measurement outcomes.
• Efficacy: Effectiveness of marketing efforts.

Likert Scale

• Definition: Measures agreement with statements (e.g., “Strongly Agree" to "Strongly Disagree").
• Examples:
  • "The product quality was great" (Strongly Agree - Strongly Disagree).
  • "I order through the mobile app” (Always - Never).

Survey & Sampling Methods

• Mall Intercepts: Interviewing consumers in shopping malls.
• Mail Questionnaires: Surveys distributed via mail (effective for older demographics).
• Phone vs. Personal Interviews:
  • Phone Interviews: Cost-effective, but lower response rates.
  • Personal Interviews: Higher engagement, ability to observe body language.