Market Research Techniques

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Questions and Answers

What is the primary purpose of using test markets in market research?

To identify global market trends

To reduce research costs significantly

To gauge consumer reactions to product changes (correct)

To evaluate competition in different regions

Which step is NOT part of designing a good survey?

Create a budget for the survey (correct)

Choose the method of administration

Pretest and administer the questionnaire

Determine the goal of the survey

What is a common challenge faced when conducting test marketing?

Gathering qualitative data

Maintaining consistent product quality

Analyzing online consumer behavior

Selecting the right geographic area (correct)

Which of the following is a frequently used test market location in the US?

Nashville Signup and view all the answers

What aspect of questionnaire design primarily determines the effectiveness of data collection?

The types of questions and scale used Signup and view all the answers

What should be considered when asking about sensitive demographics in surveys?

Omit sensitive demographics if they are not necessary. Signup and view all the answers

What is a notable advantage of using booklets for mail-based surveys?

Postage is cheaper for items that fit in standard envelopes. Signup and view all the answers

Which practice helps ensure clarity and acceptance of a survey before it is distributed?

Implementing a pretest of the questionnaire. Signup and view all the answers

Which layout consideration is important for web-based surveys?

Including a counter showing the percentage of completed questions. Signup and view all the answers

What is a consequence of not adhering to laws regarding demographic data in certain countries?

Possibility of legal penalties for data breaches. Signup and view all the answers

How can surveys be designed to accommodate respondents using older browsers?

By utilizing older and accepted web standards. Signup and view all the answers

What risk is involved in distributing a questionnaire without pretesting?

Lack of clarity and potential client rejection of the survey. Signup and view all the answers

Which formatting element should be avoided to enhance readability in surveys?

Using small and colored fonts. Signup and view all the answers

Which characteristic typically distinguishes open-ended questions from closed-ended questions?

Open-ended questions often result in lower response rates. Signup and view all the answers

What is a fundamental consideration when choosing the type of scale in research?

Deciding on the properties and type of scale to use. Signup and view all the answers

In a Likert scale, what is required for a statement to elicit valid responses?

The statement should allow for clear complete agreement or disagreement. Signup and view all the answers

Which type of scale uses opposing pairs of words for responses?

Semantic differential scale Signup and view all the answers

What is a common disadvantage of using Likert scales?

They can lead to unclear categorization of results. Signup and view all the answers

Which scale type is frequently used in market research to profile respondents?

Semantic differential scales Signup and view all the answers

What is a typical format for the number of categories in semantic differential scales?

5 or 7 categories Signup and view all the answers

What might happen if a Likert scale statement is too positively or negatively worded?

Respondents may skip those categories entirely. Signup and view all the answers

What issue does negation in survey questions create?

It causes ambiguity in understanding. Signup and view all the answers

Which respondent condition can lead to meaningless answers?

Respondents who lack personal experience with the topic. Signup and view all the answers

How can the spacing of answer categories affect survey responses?

It leads to misunderstandings of response intensity. Signup and view all the answers

What is crucial to consider about sensitive questions in surveys?

They should be avoided unless essential to the research objective. Signup and view all the answers

What can happen if respondents are asked to recall distant past events?

They may fabricate responses to fill in gaps. Signup and view all the answers

What is one recommended action before finalizing a survey?

Pretest the survey to identify potential issues. Signup and view all the answers

When evaluating the willingness of respondents to answer questions, what factor can influence their honesty?

The nature of the question being asked. Signup and view all the answers

What does the term 'validity' refer to in the context of survey design?

The accuracy in measuring what is intended. Signup and view all the answers

Which action should be taken if respondents cannot answer the questions being asked?

Use other methods like secondary data or observations. Signup and view all the answers

What is the primary purpose of pretesting a survey?

To identify potential issues before full deployment Signup and view all the answers

What is a key consideration when designing survey questions about sensitive subjects?

Confirm if respondents are comfortable answering. Signup and view all the answers

What is NOT one of Dillman's recommended steps to increase survey response rates?

Offering a monetary incentive Signup and view all the answers

When designing closed-ended questions, which of the following scaling categories should be utilized?

Likert scales, semantic differential scales, or rank order scales. Signup and view all the answers

What is the potential consequence of using open-ended questions in surveys?

They can result in lower response rates. Signup and view all the answers

How many experts are suggested for pretesting a survey?

3–6 Signup and view all the answers

What type of questionnaire format does Dillman recommend for enhancing respondent friendliness?

Booklet format Signup and view all the answers

What scale format should be avoided if the endpoints cannot be exact opposites?

Unbalanced scale. Signup and view all the answers

Why should screener questions be included in survey design?

To direct those unable to answer to appropriate questions. Signup and view all the answers

According to the content, what might be a reason for declining survey responses?

Perceived over-surveying and trust issues Signup and view all the answers

Which approach should be used when asking questions that could cause discomfort to respondents?

Emphasize the confidentiality of responses. Signup and view all the answers

What is an appropriate action to take when sending out a follow-up for survey respondents?

Combine a thank you note and a new survey for both groups Signup and view all the answers

What is a disadvantage of using a forced-choice scale in survey design?

Respondents may not select a comfortable option. Signup and view all the answers

Which method is suggested to correct errors in respondent details?

Ensuring that names and addresses are error free before sending Signup and view all the answers

What type of incentive is commonly used in the US to encourage survey participation?

Cash rewards Signup and view all the answers

Study Notes

Getting Data: Understanding how European and US automobile usage and preferences differ.
Test Markets: Useful, but costly, for introducing new products or services in specific geographic areas.
Test Markets (cont.): Used to gauge consumer reaction to marketing instruments (pricing, distribution, advertising).
Test Markets (cont.): Helpful for real-world consumer behaviour insights, but expensive and difficult to conduct, using locations like Hassloch (Germany), Indianapolis, and Nashville (US).
Collecting Quantitative Data: Questionnaires: The core of primary market research.
Collecting Quantitative Data (cont.): Six necessary steps in designing a good questionnaire:
- Define the survey goal.
- Identify the questionnaire type and administration method.
- Plan the questions and scaling.
- Design the questionnaire layout.
- Pretest the questionnaire.
- Administer the questionnaire.
Methods of Administering a Survey:
- Personal interviews: High response rates, can gather rich information (visual expressions), good for open-ended questions, but costly per respondent.
- Telephone interviews: Fast data collection, supports open-ended questions, but moderate control of interviewer bias.
- Web surveys: inexpensive, quick data collection, particularly for large populations, marginal costs for additional respondents are low.
- Mail surveys: Expensive, suitable for sensitive items, no interviewer bias, but can lead to low response rates, not ideal for intricate surveys.
Determining the type of questionnaire and method of administration considerations include:
- Personal interviews, telephone interviews, web surveys, and mail surveys.
- In some cases, combining these methods.
Setting the Goal of the Survey: Consider the type of primary market information needed, the goal is fundamental to defining the survey and how it is constructed.
Analyses required for the survey data collection, including cluster analysis (Chapter 9) and Factor analysis (Chapter 8).
Data types required by analyses: such as equidistant data for cluster analysis and related questions for factor analysis.
Information or data needed from the survey: examples include information about wait times at airports, consumer perception of time, how they feel about waiting.
Adaptive Questioning: Allows respondents to answer questions based on their previous responses allowing for more relevant questions, used in Web surveys.
Questionnaire Design: Crucial for clear understanding & accurate data:
- Simple language & avoid jargon/slang.
- Short questions.
- Avoid double negatives (“not important”) for better clarity.
- Avoid ambiguous words (frequent, occasionally) in questions.
- Double-barreled questions must be avoided.
Scaling: Types include:
- Likert: Measures agreement/disagreement about specific statements.
- Semantic differential: Uses opposing word pairs (e.g., young/old, fast/slow) with the respondent choosing where they stand.
- Rank order: Measures preference by ranking items.
Properties of the scale:
- Number of answer categories: Enough to allow nuance but not so many as to confuse the participant.
- Undecided option: Consider adding a "don't know" or "undecided" choice.
- Balanced scale: Equal number of positive and negative choices.
Pretesting: Crucial for improving clarity and client acceptance before the main survey.
Methods for pretesting:
- Expert review: 3-6 experts review & comment on the survey.
- Preliminary questionnaires: distribute to a small sample (50-100) to gather insights.
Increasing response rates: Strategies to improve survey response rates:
- Pre-notification letters (importance of survey and the short details of it)
- Sponsor letters (emphasizing study importance)
- Follow-ups (thank you (if responded), a copy of the survey and a reminder for non-respondents)
- Phone calls to non-respondents (follow up and a reminder
Incentives: Rewards can increase responses rates. For example:
- Cash rewards
- Donations to charity
- Gift cards or discounts.
- Entry to a prize draw

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Description

Explore the essential techniques in market research, focusing on automobile usage preferences in Europe and the US. Delve into the processes of test marketing, quantitative data collection, and effective questionnaire design. This quiz will enhance your understanding of consumer behavior and market analysis.