Introduction to Market Research
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Questions and Answers

What is the initial step in the market research process?

  • Determining the research design
  • Analyzing the data
  • Collecting the data
  • Identifying and formulating the problem (correct)

Which organization defines marketing research as linking the consumer to the marketer?

  • Market Research Society
  • American Marketing Association (correct)
  • ESOMAR
  • International Market Research Association

How does ESOMAR define market research?

  • As the systematic gathering and interpretation of information (correct)
  • As a method for tracking customer purchases
  • As a financial analysis of market trends
  • As the function of a marketing department

What key aspect differentiates marketing research from market research according to the American Marketing Association?

<p>Focus on functions within an organization (D)</p> Signup and view all the answers

Which of the following is NOT part of the market research process as described?

<p>Developing a sales strategy (C)</p> Signup and view all the answers

According to the ICC/ESOMAR guidelines, what must be obtained before revealing respondents' identities?

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

What is a key function of marketing research as defined by the American Marketing Association?

<p>To monitor marketing performance (A)</p> Signup and view all the answers

Which of the following best describes the purpose of market research?

<p>To gain insight and support decision-making (B)</p> Signup and view all the answers

What is the primary purpose of market research departments within organizations?

<p>To gather and analyze market data for internal decision-making. (B)</p> Signup and view all the answers

Which statement correctly describes the prevalence of market research roles in various sectors?

<p>Approximately 75% of organizations employ at least one person for market research. (C)</p> Signup and view all the answers

What was the collective turnover of external market research providers in 2012?

<p>$18.70 billion (D)</p> Signup and view all the answers

Which of the following best describes the trend of market research departments in larger organizations?

<p>They are often related to other functions like corporate planning or sales. (D)</p> Signup and view all the answers

Which type of external market research providers is characterized by offering both comprehensive and specialized services?

<p>Full service providers (B)</p> Signup and view all the answers

What factor has contributed to the growth of specialized market research departments within organizations?

<p>The increasing integration of marketing functions into other departments. (A)</p> Signup and view all the answers

According to the information, which external provider is NOT mentioned as a major player in the market research field?

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

What is a common characteristic of organizations that tend to have market research departments?

<p>They often have complex structures with multiple departments. (D)</p> Signup and view all the answers

What is the primary function of syndicated data?

<p>Data collected in a standard format for multiple clients. (A)</p> Signup and view all the answers

Which of the following statements best describes the role of full service providers?

<p>They handle nearly all aspects of market research. (B)</p> Signup and view all the answers

What challenge has emerged in measuring TV audiences?

<p>The complexity of tracking multiple viewing platforms. (B)</p> Signup and view all the answers

How does the Nielsen People Meter contribute to audience measurement?

<p>It measures usage of each viewing platform and transmits data instantly. (B)</p> Signup and view all the answers

Which of the following is NOT a type of data collected by The Nielsen Company?

<p>Nielsen Forecasts (C)</p> Signup and view all the answers

What is the main difference between full service and limited service providers?

<p>Limited service providers specialize in one or more services. (C)</p> Signup and view all the answers

What is a significant factor affecting viewer measurement accuracy today?

<p>The rise of time-shifting technologies. (C)</p> Signup and view all the answers

Why do large market research firms have an advantage in collecting data?

<p>They can spread collection costs over multiple clients. (C)</p> Signup and view all the answers

What is the primary purpose of conducting test markets?

<p>To gauge consumer reactions to new products (A)</p> Signup and view all the answers

Which of the following is NOT a technique introduced for data analysis?

<p>Sales forecasting (D)</p> Signup and view all the answers

What issue does Procter & Gamble's field experiments specifically address?

<p>Challenges with pricing strategies (C)</p> Signup and view all the answers

Which organizational aspect presents challenges when defining test markets?

<p>Geographical considerations (C)</p> Signup and view all the answers

In market research, what is meant by 'primary research'?

<p>Conducting new experiments and surveys (A)</p> Signup and view all the answers

Which topic is mentioned as being discussed in detail in Chapter 4?

<p>Field experiment methodologies (D)</p> Signup and view all the answers

Which of the following is a requirement for analyzing data effectively?

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

What is a common challenge faced during the data collection stage in market research?

<p>Getting responses from CEOs (C)</p> Signup and view all the answers

What is an essential aspect of interpreting market research findings?

<p>Clearly communicating findings to facilitate decision making. (A)</p> Signup and view all the answers

Why is follow-up research significant in the market research process?

<p>It allows researchers to adapt to changing market conditions. (A)</p> Signup and view all the answers

Which statement correctly describes the relationship between exploratory, descriptive, and causal research?

<p>Each type of research offers different insights but can inform one another. (C)</p> Signup and view all the answers

What is a primary goal of executing the market research process?

<p>To interpret data and establish actionable suggestions. (B)</p> Signup and view all the answers

Which of the following best reflects a misconception regarding market research findings?

<p>Once findings are presented, research is complete. (A)</p> Signup and view all the answers

What is one of the implications of changes in market conditions following research findings?

<p>Previous research may require a reevaluation or additional study. (D)</p> Signup and view all the answers

What characterizes the recommendations derived from market research?

<p>They must be actionable and rooted in data analysis. (B)</p> Signup and view all the answers

Which of the following statements about tracking customer satisfaction is true?

<p>It involves ongoing research to assess shifts over time. (A)</p> Signup and view all the answers

What is a common metric used to measure customer loyalty?

<p>Net Promoter Score (D)</p> Signup and view all the answers

Which of the following is NOT a requirement to establish causality according to the content?

<p>The effect must be observable (D)</p> Signup and view all the answers

What is 'share of wallet' a measure of?

<p>Amount spent on a particular brand in a product category (D)</p> Signup and view all the answers

What type of research is less frequently undertaken than exploratory or descriptive research?

<p>Causal research (D)</p> Signup and view all the answers

How can companies ensure that their analysis of sales performance is valid?

<p>Track sales across various product categories (D)</p> Signup and view all the answers

What does controlling for other factors in causal research help to establish?

<p>A definitive relationship between variables (A)</p> Signup and view all the answers

What distinguishes causality from mere correlation?

<p>Causality requires a correlation (B)</p> Signup and view all the answers

Which of the following best describes the role of market researchers in measuring performance?

<p>They utilize various specific marketing measures (B)</p> Signup and view all the answers

Flashcards

Market Research

The systematic gathering and interpretation of information about individuals or organizations to gain insight or support decision-making.

Market Research Process

A structured series of steps used to conduct market research, including problem identification, research design, data collection, analysis, interpretation, and presentation.

Marketing Research

The function that connects consumers, customers, and the public to the marketer through information, used to identify opportunities, solve problems, and evaluate marketing actions.

Data Collection Methods

Techniques used to gather information for market research, such as surveys, interviews, focus groups, and experiments.

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Sample

A subset of the population selected for research, representing the characteristics of the entire population.

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Data Analysis

The process of examining and interpreting collected data to extract meaningful insights and trends.

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Market Research Findings

The results of market research, presented in reports and summaries, providing insights and recommendations for action.

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Follow-up

The stage in the research process where findings are implemented and their effectiveness is monitored.

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Internal Market Research

Market research conducted within a company, often by a dedicated department or individual.

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External Market Research

Market research conducted by outside companies, often specializing in specific areas or offering full-service solutions.

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Full Service Providers

External market research companies that offer a comprehensive range of services, handling everything from data collection to analysis and report writing.

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Limited Service Providers

External market research companies that specialize in specific areas, like data collection or analysis, but may not offer a complete package.

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Syndicated Data

Market research data collected and sold to multiple companies, often covering general trends in specific industries.

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Customized Services

Market research services tailored to the specific needs of a particular company, providing customized data and analysis.

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Segment Specialists

External market research companies specializing in research within a particular market segment, such as healthcare or technology.

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Field Service Providers

External market research companies specializing in data collection, often through surveys, focus groups, or interviews.

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Nielsen

A major full service provider that collects syndicated data on various media (digital, TV, radio, print) and offers customized research.

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Nielsen Netratings

A syndicated data product from Nielsen containing information on digital media consumption.

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Nielsen Ratings

A syndicated data product detailing consumer habits across radio, TV, and print media.

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Nielsen Homescan

A syndicated data product that provides information on consumer purchases based on panel data.

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The People Meter

A device used by Nielsen to measure TV viewing habits in over 20,000 US households, capturing audience data across different platforms.

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Share of wallet

The proportion of a customer's spending on a specific brand or company within a product category.

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Brand awareness

The extent to which consumers are familiar with and recognize a brand or company.

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Net Promoter Score (NPS)

A customer loyalty metric that measures how likely customers are to recommend a company, product, or service.

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Causal Research

Market research that investigates the cause-and-effect relationship between marketing variables.

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Causality

A relationship between an event (the cause) and a second event (the effect) where the second event is a direct consequence of the first.

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Correlation vs. Causality

Correlation describes a relationship between two variables, while causality implies that one variable directly causes the other.

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Field Experiments

Real-world tests conducted in a natural setting to understand how consumers react to different marketing strategies.

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Time Order

The requirement for causality that the cause must occur before the effect.

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Test Markets

Specific geographical areas where companies introduce new products or marketing strategies to gauge consumer response.

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Controlling for Other Factors

The process of isolating the effect of a specific variable by eliminating the influence of other factors.

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Value Pricing Strategy

A method of pricing products based on their perceived value to customers, not just cost.

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Primary Research

Gathering new data directly from sources like surveys, interviews, or focus groups.

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Secondary Research

Using existing data that has already been collected by others, like government reports or industry data.

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Data Collection

The process of gathering information relevant to the research question.

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Hypothesis Testing

A statistical method used to test claims about a population based on sample data.

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Interpreting Research Findings

The process of analyzing and understanding the collected data to extract meaningful insights and draw conclusions.

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Discussing Research Findings

Sharing the insights and conclusions from the research with stakeholders to inform decision-making and strategy.

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Presenting Research Findings

Creating a clear and concise report or presentation that effectively communicates the research findings to stakeholders.

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Actionable Suggestions

Recommendations derived from the research findings that can be implemented to achieve marketing objectives.

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Market Research Follow-Up

The process of monitoring the implementation of research recommendations and assessing their effectiveness over time.

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Follow-Up Research

Additional research conducted to address new questions or refine existing knowledge based on the initial findings.

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Customer Satisfaction Tracking

Continuous monitoring of customer satisfaction levels over time to identify trends and areas for improvement.

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Study Notes

Introduction to Market Research

  • Market research is a process to understand markets, consumers, and the public
  • It links consumers to marketers through information
  • It identifies and defines opportunities and problems
  • It monitors performance and helps marketers understand the process better
  • Market research differs from marketing research
  • The difference is in the scope of analysis (market vs marketing)
  • Market research is used in organizations to gather information (internal) for decision-making
  • External market research providers include full service and limited service firms
  • Internal market research is common, particularly in larger organizations
  • In 2012, external providers had a combined turnover of about $18.7 billion
  • Examples of large market research companies: The Nielsen Company, Kantar, GfK

1.1 Introduction

  • Toyota's Prius, a hybrid car, took a substantial gamble on a grand scale
  • Previous attempts at frugal cars (electric) from Honda and General Motors had not been successful
  • Toyota's project, Global Twenty-first Century, aimed at developing a 50% more fuel-efficient car
  • Initial issues encountered with technology
  • The Prius launched in 1997 and became a success
  • Market research helped Toyota by determining potential buyers of the car

1.2 What is Market and Marketing Research?

  • Market research is a process to understand how markets work (e.g., customer purchases)
  • It involves problem definition, determining research design, data collection methods, and analysis.
  • Marketing research, a sub-set of market research applies mostly to marketing functions within an organization. Research design helps formulate marketing actions, analyze performance, and improve understanding of the marketing process.

1.3 Market Research by Practitioners and Academics

  • Practitioners focus on clear results, practicality, and timeliness.
  • Academic research is more focused on methods, rigor, and consistency
  • Practitioners conduct research in the context of business (practical)
  • Academics conduct research in the context of the field of study (theoretical)

1.4 When Should Market Research (Not) be Conducted?

  • Market research plays a crucial role in businesses
  • Helps in identifying opportunities, measuring satisfaction, and understanding market shares
  • Research may be conducted systematically (regular) or as a reactive response (ad hoc)
  • It is not recommended when:
  • The decision has already been made to avoid biased results
  • Decision deadlines are very short
  • Issue is trivial

2.1 Introduction

  • Professional market research requires detailed planning
  • This chapter outlines the process starting from problem identification to reporting results

2.2 Identify and Formulate a Problem

  • Identifying the problem is a crucial first step in market research
  • It involves marketing symptoms (e.g., declining market share) or opportunities (e.g., emerging markets)

2.3 Determine the Research Design

  • Research design reflects the problem
  • Exploratory research helps understand the problem structure, generate hypotheses, and develop measurement scales (ambiguous problems)
  • Descriptive research describes consumers, competitors, or markets (somewhat defined problems)
  • Causal research uncovers cause and effect (clearly defined problems)

2.3.1 Exploratory Research

  • Exploratory research explores vague problems
  • Methods include depth interviews, focus groups, observations, ethnographies
  • Helps discover insights, prioritize research interests, and develop hypotheses.

2.3.2 Uses of Exploratory Research

  • Provides a foundation for defining problems more precisely
  • Helps develop measurement scales
  • Identifies useful studies
  • Eliminates inappropriate ideas

2.3.3 Descriptive Research

  • Descriptive research describes market characteristics or relationships between variables
  • Examples: describing customers, competitors, market size, segmenting markets, and measuring performance
  • It describes market conditions that help with decisions about marketing plans.

2.3.4 Uses of Descriptive Research

  • Describes customers/competitors
  • Identifies market conditions
  • Segment the markets
  • Measures performance indicators

2.3.5 Causal Research

  • Causal research investigates cause-and-effect relationships
  • It looks for the causes in events and the conditions under which the event (effect) occurs
  • Requires gathering data and testing hypotheses
  • Examples include lab experiments, field experiments, and test markets to understand the effect that a new pricing strategy or advertisement has on consumer behavior and sales.

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Description

This quiz explores the fundamentals of market research, including its purpose, processes, and distinctions from marketing research. It examines how organizations utilize market research to understand their consumers and make informed decisions. Participants will gain insights into the role of external providers and real-world examples of major market research firms.

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