Session 1 and Reading about the History of Market Research

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Questions and Answers

Which orientation primarily focuses on meeting consumer needs and understanding the market?

Market-oriented (correct)

Production-oriented

Product-oriented

Sales-oriented

What does the 'Place' aspect of the 4Ps refer to in a marketing strategy?

The price at which the product is sold

The methods used to promote the product

The product's unique selling proposition

The location where the product is advertised (correct)

Which segmentation criterion is considered more advanced and involves understanding consumer attitudes and values?

Firmographic

Demographic

Behavioral

Psychographic (correct)

Which type of company focuses on production efficiency and quick goods delivery?

Production-oriented Signup and view all the answers

In marketing, the relationship between price and perceived product value aims for what outcome?

Balancing sales volume with profit Signup and view all the answers

What is the primary aim of a sales-oriented company?

To achieve immediate sales Signup and view all the answers

Which segmentation criterion is easier and typically involves attributes like gender and income?

Demographic Signup and view all the answers

What is a key focus of product-oriented companies in their marketing strategy?

Enhancing product/service quality to attract premium pricing Signup and view all the answers

What is the main purpose of marketing research as defined by the AMA?

To link consumers with marketers through information Signup and view all the answers

Which of the following best describes exploratory research?

Qualitative research intended to explore vague problems Signup and view all the answers

What type of market research provider would offer customized services specifically designed for an individual client's needs?

Limited service provider Signup and view all the answers

In the context of problem identification in the research process, what indicates a clearly defined problem?

The issue and relevant variables are known, but no decision can be made Signup and view all the answers

Which of the following is NOT a step in the market research process as outlined?

Generating promotional content Signup and view all the answers

What is the significance of using statistical and analytical methods in market research as described by ESOMAR?

To provide insights for better decision-making Signup and view all the answers

What describes the outcome of descriptive research compared to exploratory research?

It describes market characteristics and performance Signup and view all the answers

What is NOT a characteristic of ambiguous problems in the research process?

Some known variables Signup and view all the answers

Which of the following is considered a primary goal of qualitative studies?

To understand little-understood phenomena Signup and view all the answers

What type of research helps firms to improve their performance and understand client needs?

Market research Signup and view all the answers

In-depth interviews are characterized by which of the following features?

A series of open-ended questions Signup and view all the answers

What is a significant advantage of using focus groups in market research?

They encourage participant interaction to obtain unique information Signup and view all the answers

Which two researcher types are primarily responsible for market research activities?

Market research department and independent researchers Signup and view all the answers

What typology of study primarily uses observation of consumers in their natural habitat?

Ethnographic studies Signup and view all the answers

In the context of market research, what is typically the first step in the research process?

Identifying the problem to be studied Signup and view all the answers

Which of the following is NOT a commonly used method in qualitative research?

Surveys with closed-ended questions Signup and view all the answers

What is the primary goal of causal research?

To uncover causality or a relationship of cause and effect Signup and view all the answers

Which of the following is NOT a requirement to claim causality?

Statistical significance of the relationship Signup and view all the answers

What is the definition of secondary data in research?

Data that already exists from other sources Signup and view all the answers

Which statistical relationship illustrates the concept 'correlation does not imply causation'?

Increased ice cream sales lead to higher sunburn rates Signup and view all the answers

What is the first step in the research design process?

Making methodological decisions Signup and view all the answers

Which of the following data collection methods provides in-depth insights but is often qualitative?

Focus groups and interviews Signup and view all the answers

What type of data would be characterized as nonverbal and aimed at getting comprehensive insights?

Qualitative data Signup and view all the answers

What is an essential element for the quality of data collected in research?

Ensuring the sample is large enough Signup and view all the answers

What is a key characteristic of focus group interviews?

Requires a moderator to facilitate discussion among participants Signup and view all the answers

Which sampling technique provides each individual in the population an equal chance of selection?

Probabilistic sampling Signup and view all the answers

What is a challenge commonly associated with survey methods?

Respondents may provide unreliable data due to misunderstanding questions Signup and view all the answers

What type of sampling technique relies on the judgement of the researcher for selection?

Non-probabilistic sampling Signup and view all the answers

What is a primary advantage of using a structured questionnaire in surveys?

It ensures data is more reliable and comparisons easier Signup and view all the answers

What form of sampling might lead to self-selection bias?

Panel sampling Signup and view all the answers

What is a major consideration when determining the sample size for research?

Nature and objective of the analysis Signup and view all the answers

What method is commonly used for recruiting participants in market research?

Mailing and market research providers Signup and view all the answers

What is a disadvantage of using an odd number scale in surveys?

It forces respondents to choose a side. Signup and view all the answers

Which of the following is NOT a step in preparing a questionnaire?

Conduct focus groups Signup and view all the answers

In survey research, what is typically recognized as the dependent variable?

Intention to buy Signup and view all the answers

What is the primary goal of descriptive research within surveys?

To provide a detailed profile of consumers Signup and view all the answers

Which statement about validated scales in questionnaire design is true?

They require extensive testing before use. Signup and view all the answers

What is a characteristic of a Likert scale?

It measures attitudes along a continuum. Signup and view all the answers

What is crucial to include in the introduction of a questionnaire?

Clear privacy information and informed consent. Signup and view all the answers

What type of data can be obtained through causal research in surveys?

Relationship between different consumer characteristics Signup and view all the answers

What methodology did Daniel Starch develop to measure the effectiveness of advertisements?

Starch Test Signup and view all the answers

Which of the following figures contributed significantly to the trust in survey research through political polling?

George Gallup Signup and view all the answers

How did George Gallup's approach to polling differ from traditional polling methods at the time?

He incorporated demographic breakdowns in his sample. Signup and view all the answers

What significant advancement did George Gallup's polling techniques provide in the context of the 1936 presidential election?

Correctly predicted the election results ahead of the competition. Signup and view all the answers

Which aspect of the Starch Test was essential for evaluating advertisement success?

Memory recall of the ad Signup and view all the answers

What was a key feature of George Gallup's polling system that made it unique during its time?

Prediction based on small sample sizes. Signup and view all the answers

What role did door-to-door canvassing play in Starch's research methodology?

It helped recall ads from specific publications. Signup and view all the answers

Which of the following best describes the relationship between Daniel Starch's and George Gallup's contributions to market research?

Starch focused on advertisement evaluation while Gallup emphasized political polling. Signup and view all the answers

What was the primary goal of the Starch Test as developed by Daniel Starch?

Measuring consumer retention of advertisements. Signup and view all the answers

What was a significant outcome of Gallup's polling in the context of media and public perception?

Increased public faith in polling accuracy and methodologies. Signup and view all the answers

What was a significant impact of the launch of the third-party cookie in 1992?

It allowed advertisers to track user interactions across the internet. Signup and view all the answers

What does the Net Promoter Score (NPS) primarily measure?

The likelihood of customers to recommend a company. Signup and view all the answers

Which factor significantly transformed access to consumer insights in market research over the last decade?

The rise of smartphones enabling on-demand insights. Signup and view all the answers

What was the primary benefit of Analog, the first web log analysis software?

It enabled website owners to understand usage patterns. Signup and view all the answers

How has the introduction of tools like Attest altered the landscape of market research?

It has decreased the cost and time required for consumer insights. Signup and view all the answers

What was a key characteristic of consumer market research a century ago?

It was a lengthy and costly process requiring academic skills. Signup and view all the answers

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

It lacks depth by only using a single question for assessment. Signup and view all the answers

Which company was not mentioned as an early adopter of on-demand consumer insights?

Apple Signup and view all the answers

What challenge exists for brands conducting large-scale consumer surveys prior to the rise of on-demand insights?

They often involved significant time and financial resource investments. Signup and view all the answers

What was the primary goal of the US government's use of focus groups during World War II?

To counteract Nazi propaganda and influence public opinion about the war Signup and view all the answers

What was one significant finding from Lazarsfeld and Merton's methodology?

Qualitative data indicated fear rather than enthusiasm about going to war. Signup and view all the answers

Which psychological concept did Ernest Dichter apply to marketing in his research?

Freudian psychoanalytic concepts Signup and view all the answers

What was Paul Green's contribution to market research?

Pioneering the use of conjoint analysis in marketing Signup and view all the answers

What is a key component of the multi-attribute attitude model developed by Martin Fishbein?

Salient beliefs about an object Signup and view all the answers

What is the fundamental difference between macro-segmentation and micro-segmentation in the context of market segmentation?

Macro-segmentation is concerned with aggregate data, while micro-segmentation focuses on individual data. Signup and view all the answers

Which of the following best explains the theory of planned behaviour as developed by Icek Ajzen?

It incorporates perceived behavioral control as a factor influencing intentions. Signup and view all the answers

What was a significant impact of the introduction of the World Wide Web on market research?

The ability to track and analyze consumer behavior online Signup and view all the answers

What does the two-step market segmentation model introduced by Wind and Cardozo provide to marketers?

A framework for organizing and predicting customer responses Signup and view all the answers

Study Notes

Market Introduction

Market is the gathering of people for selling and buying, happening nationally or globally since prehistoric times.
Market research history is important to understand market dynamics.

Market Economies

Market economies are economic systems driven by price signals, based on supply and demand forces.
The state may play a part in market economies, promoting welfare and influencing the market.

Market Types

Perfect competition: many sellers, same product, small size
Monopolistic competition: many sellers, similar products, small differences
Oligopoly: few firms (3-5), potential for collaboration
Monopoly: one firm, no alternatives

Product Differentiation

Products can be differentiated vertically (objectively measured, e.g., CO2 emissions) or horizontally (based on preferences, e.g., color or size).
Goods can be categorized by difficulty in evaluating quality: search goods (easily compared, e.g., salt), experience goods (knowledge gained through purchase, e.g., dinner), and credence goods (difficult to evaluate after purchase, e.g., new wine).

Beyond Economic Factors

Social sciences show market logic isn't the only factor influencing product exchange. Other factors such as gifting, religion, or organ donation illustrate this.

Market Expansion

Free-market capitalism has expanded its role in the late 20th century, affecting areas like healthcare (private hospitals), art, and culture (private museums).

Marketing Definition

Marketing involves communicating, delivering, and exchanging value-added products/services for customers.
It focuses on increasing the impact on clients while reducing the power of firms.

Key Market Orientations

Production-oriented: focus on production processes to create cheap, quick goods
Product-oriented: focus on improving the quality of products/services
Sales-oriented: focus on strategies to push sales (premium price, targeted market, immediate sales)

Market Segmentation

Segmentation involves dividing the market into approachable groups to better understand the market and its needs.

4Ps of Marketing

Product: Key to fulfilling customer demand by being special.
Price: Amount charged considering customer perception of value. Related to cost and competition.
Place: Where product is sold, best place to showcase to potential customers.
Promotion: Strategy to raise awareness through advertising and public relations. Aims to address consumer needs and problems.

Market Research

Market research involves studying the effectiveness of ads in newspapers and magazines and techniques like aided recall and polling.
Methods developed over time include motivational research (investigating unconscious desires using deep interviews), conjoint analysis (determining optimal product/service mix), segmentation (macro/micro) and creating theories of planned action.
Modern methods utilize web analytics and ethnography (observation in natural settings).

Market Research Process

Problem definition: identifying the problem to address. Important to establish clear objectives and questions.
Research design: defining the approach, whether exploratory (exploring the problem), descriptive (describing the market and characteristics), or causal (finding relationships between variables, e.g., price increase and sales).
Collect data: ensuring data quality through participant recruitment, sample size, and data collection methods (e.g., surveys, interviews).
Analyse and interpret data: creating insights and communicating findings. Summarizing key info. Presenting data in a clear manner.
Follow-up: taking actions based on research and establishing a process of continuous improvement.

Types of Qualitative Research

Ethnographic studies: observation of consumers in natural settings to understand product usage.
In-depth interviews: one-on-one interviews to gather detailed information.
Focus groups: group discussions to extract themes.

Quantitative Research

Surveys: collecting data using standardized questionnaires with pre-coded questions.
Sampling: defining the particular group.
Question types: open-ended, closed-ended (dichotomous/multiple choice) or scale-based questions (likert, semantic differential).

Questionnaire Development

Define topic, variables, and research goals.
Measure consumer behavior/attitudes.
Determine specific goals and variables to analyze.
Utilize both qualitative and quantitative insights in building surveys and questionnaires.
Create question formats and conduct pilot testing.

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Description

Test your knowledge on the fundamental concepts of markets, including types of market economies, product differentiation, and their historical context. This quiz explores concepts such as perfect competition, monopolistic competition, and the roles of supply and demand.