Marketing Research Lecture 1: Introduction PDF

Marketing Research Lecture 1: Introduction PROFESSOR JIA LIU  About Me Education Bachelor in Math M.S. in Statistics Ph.D. in Marketing Studied and worked in the U.S. for 10 years At HKUST for 6 years Collaborated...

Marketing Research Lecture 1: Introduction PROFESSOR JIA LIU  About Me Education Bachelor in Math M.S. in Statistics Ph.D. in Marketing Studied and worked in the U.S. for 10 years At HKUST for 6 years Collaborated with many firms in different industry sectors Have a boy (5’) and a girl (8’) HKUST, MARKETING RESEARCH  Research Interests Substantive Methodology Consumer Online Search Lab/Field Experiments Recommender Systems Bayesian Methods Loyalty Programs Topic Modeling Advertising DNNs Causal Inference User Generated Content Structure Model Pricing LLMs Product Assortment Optimization Product Recall AI HKUST, MARKETING RESEARCH  Applications of Marketing Research 1. Easily spot business opportunities 2. Lower business risks Test new designs and products before launching Find out why customers don’t come back Get insights on problem areas 3. Create relevant promotional materials Age, gender, income, consumer needs 4. Know where to advertise 5. Outsell competitors HKUST, MARKETING RESEARCH  Starbucks in China Entered through joint venture in 1999 Northern China: joint venture with Beijing Mei Da coffee company Eastern China: partnered with Taiwan-based Uni-President Southern China: worked with Maxim’s Caterers in Hong Kong 1700 Number of Starbucks in China 646 496 361 406 2009 2010 2011 2012 2015 HKUST, MARKETING RESEARCH  Starbucks in China 1. Is there a market in China for Western coffee experience? 2. How should Starbucks expand in China? 3. How much should Starbucks charge for a cup of coffee in China? HKUST, MARKETING RESEARCH  Chinese Enterprises Going Global 1. Who are the target customers? 2. Which channels to target? 3. How to come up distinct narratives? 4. From Goods to People? 5. From Online to Offine? HKUST, MARKETING RESEARCH  From Pinduoduo to Temu In February 2023, Temu made a bold $14 million play during America’s cultural showpiece, the Super Bowl, captivating an audience of 100 Temu ships 4,000 tons daily, SHEIN ships 5,000 tons, AliExpress 1,000 tons, and TikTok 800 tons HKUST, MARKETING RESEARCH  Customer Satisfaction 1. Online shopping experience 2. Product assortments 3. Delivery service 4. Customer service HKUST, MARKETING RESEARCH  K11 and K11 App HKUST, MARKETING RESEARCH  Customer Journey at K11 1. What are customer physical and digital touchpoints? 2. What are the future trends for mall and retail technology? HKUST, MARKETING RESEARCH  Customer Acquisition for Plaza Premium Lounge Airport hospitality services with an international footprint of over 250+ locations, 70+ International Airports, 30 countries and regions, serving 20 million travellers annually How to acquire more customers through its newly launched loyalty program on its app? HKUST, MARKETING RESEARCH  Startups Entrepreneurs starting new business 1. Is there a market for the new business? 2. How to market the new product (design, pricing)? HKUST, MARKETING RESEARCH  The Inception of QB HOUSE HKUST, MARKETING RESEARCH  Founder Kuniyoshi Konishi did a telephone survey to test the idea “Would you be interested in a barbershop that provided only haircuts in 10 minutes for 1000 yen (HKD 70)?” HKUST, MARKETING RESEARCH  AI Changes Marketing Forever 1. Save time 2. Reduce cost 3. More productive 4. More creative? 5. Lower technique barrier HKUST, MARKETING RESEARCH  What is Marketing Research? The process of gathering and interpreting data for use in developing, implementing, and monitoring firms’ marketing plans. ▪ Marketing research – aid to decision making ▪ Marketing research – reduces uncertainty HKUST, MARKETING RESEARCH  Why Marketing Research? To make knowledge claims that can be used as input for decisions (e.g., planning, problem solving, and control for 3C, 4P, and etc.) Describe Understand Predict Situations Processes Outcome Markets Causes Relationships HKUST, MARKETING RESEARCH  Describe Understand Predict Starbucks Starbucks Starbucks HKTV mall HKTV mall HKTV mall K11 K11 K11 QB House QB House QB House HKUST, MARKETING RESEARCH  Who Does Marketing Research? Market research firms (e.g., A.C No-Profit Nielson, Epsilon, Google) Org. Outsourced Advertising agencies (e.g., The research Gate, Ogilvy, Havas) Firm Consulting firms (e.g., McKinsey, BCG, Ernst & Young) In-house research (e.g., Apple, McDonald’s, Amazon, HKTV mall, NWD) HKUST, MARKETING RESEARCH Source: statista HKUST, MARKETING RESEARCH  Demanded Market Research Skills by Buyers and Suppliers HKUST, MARKETING RESEARCH  Traditional Qualitative and Quantitative Methods Used in the Market Research Industry Worldwide in Q4 2020 HKUST, MARKETING RESEARCH  Marketing Research at the Age of AI? Answers from ChatGPT 1. Understanding context 7. Creativity and strategy 2. Ethical consideration 8. Adapting to new situation 3. Interpreting results 9. Data limitation 4. Formulating hypothesis 10. Feedback loop 5. Relationship building 11. Quantitative research 6. Qualitative research based on very complicated data or context HKUST, MARKETING RESEARCH  … But Research Has Its Limitations ▪ Predicted Success 1. New Coke (research question) 2. Brigade Toilet Bowl Cleaner (timing) ▪ Predicted Failure 1. Telephone answering machines (60% adoption) 2. Sony Walkman (over 100 Million sold) 3. Star Wars (2nd highest grossing movie $461M) HKUST, MARKETING RESEARCH  The New Coke In the late 1970s, the growth of Pepsi threatened Coca-Cola’s leadership, so Coca-Cola developed a new formula for Coke In blind taste tests, the new formula beat both the old formula and Pepsi Further market research in every major market supported the conclusion (costed $4 million; included interviews with 200,000 consumers) On April 23, 1985, New Coke was introduced HKUST, MARKETING RESEARCH  The New Coke The initial reactions were positive. Weekly survey results showed that more consumers liked the new than the old Coke However, angry about the change by loyalists started to take over in a month On July 10, the company decided to bring back the old Coke HKUST, MARKETING RESEARCH HKUST, MARKETING RESEARCH  What Went Wrong? Time for Discussion with Your Classmates HKUST, MARKETING RESEARCH  What Went Wrong? 1. Wrong questions were asked in the research 2. Symbolic value and emotional factor were ignored 3. Social influence matters HKUST, MARKETING RESEARCH  Value and Limitations ▪ Research is valuable if it is 1. Relevant 2. Timely 3. Accurate 4. Cost effective ▪ Limitations of research 1. Can reduce but not eliminate uncertainty 2. Does not replace decision making 3. Pay careful attention to the assumption HKUST, MARKETING RESEARCH  ABOUT THIS COURSE HKUST, MARKETING RESEARCH  Teaching Team INSTRUCTOR TEACHING ASSISTANT Jia LIU, [email protected] ONO Kouta Castillo [email protected] HKUST, MARKETING RESEARCH  Course Structure The Marketing Analysis Tool Project Research Process Lectures 1-7 Lectures 8-17 Start today Research process Descriptive analysis …… Problem Hypothesis testing formulation Regression analysis Research design Conjoint analysis Data collection AI HKUST, MARKETING RESEARCH  What You Should Expect 1. Fundamental understanding of marketing research methods 2. Acquire a set of tools that can be used to ▪ Conduct or manage research projects ▪ Interact with research providers ▪ Evaluate and interpret research results critically 3. Hands-on Experience ▪ Real world examples ▪ Personally relevant & actual marketplace data ▪ Intuitive explanations HKUST, MARKETING RESEARCH  Quote from My Past Students “The course taught us many methods of marketing research though it is too difficult for us to apply sometimes. And I really appreciate the passion of our lecturer……“ “I really liked this course especially how the professor made it a well-blended mix of theory, application/examples, computations, and class discussions.” “extremely inspiring for my future career …… the course has a little bit overturned my view on marketing …… although statistics are indeed quite boring, your teaching makes it interesting and wonderful!” “The group project highly reflected the content that we studied during the course and class material. Therefore, we were able to understand thoroughly regarding the concept we have learned during class.” HKUST, MARKETING RESEARCH  What is Expected from You ▪ Show up for every class – on time and prepared ▪ Actively participate in class discussion ▪ No multi-tasking in class ▪ Be a productive member of your group ▪ Submit assignments on time HKUST, MARKETING RESEARCH  Course Materials Reading ◦ Basic Marketing Research (9th Edition) by Brown, Suter and Churchill ◦ Lecture notes ◦ Supplemental readings ◦ Older version of the same book is OK Software and survey tools ◦ Qualtrics (or SurveyMonkey, Google Forms…) ◦ SPSS (or any other stats tools) ◦ Computer Barn A ◦ Virtual Barn HKUST, MARKETING RESEARCH  Course Grading 1.Best 2 out of the 3 quizzes (40%) 2.Individual assignment (5%) 3.Class participation (10%) 4.Marketing experiment (2%) 5.Group project (43%) Research proposal (10%) Exploratory research (10%) Final report (10%) Presentation (13%) HKUST, MARKETING RESEARCH  Quizzes (40 pts) Three quizzes ◦ Quiz 1 (Sep. 27, Friday, 6:30pm) ◦ Quiz 2 (Oct. 25, Friday, 6:30pm) ◦ Quiz 3 (Nov. 22, Monday, 6:30pm) Only the best two grades are counted, each 20 pts No class on the exam day Format: choice questions + mini-case open questions HKUST, MARKETING RESEARCH  Individual Assignment (5 pts) Goal: applying regression analysis with a case study Great opportunity to familiarize yourself with SPSS and regression technique Each student should submit his/her work independently HKUST, MARKETING RESEARCH  Class Participation (10 pts) Attendance: be on time (5 pts) Class contribution (5 pts) ◦ Examples ◦ Asking questions ◦ Answering questions ◦ Giving comments ◦ Quality matters ◦ Bring your name tag (use the template on Canvas) ◦ Minimize changing seat HKUST, MARKETING RESEARCH  Marketing Experiment (2 pts) Goal ◦ Introduce you to academic research in marketing and behavioral sciences Pick one of the following two ways ◦ Sign up 2 marketing experiments (Instruction on Canvas) ◦ Write 2 critiques of academic articles (two pages max) HKUST, MARKETING RESEARCH  Group Project (43 pts) Conduct market research in four steps 1. Form group and select research topic 2. Research proposal 3. Exploratory research and questionnaire design 4. Descriptive research with data analysis On Canvas, I have provided detailed instruction on how to prepare the report at each stage. Please check the subfolder “Project” under “Files”. HKUST, MARKETING RESEARCH  Group Project (43 pts) Conduct market research in four steps 1. Form group and select research topic before Sep. 15 a) Group name, members, research topic b)Project consultation over zoom Each group will have up-to 15 mins (Highly recommend but not required) Send me a brief report before the meeting day HKUST, MARKETING RESEARCH  Examples of Group Projects 1. Is the Love Path Advisor feature of USThing successful? 2. How can Passion At HKUST optimize customer experience? 3. How to improve the additional shuttle bus service provided by HKUST 4. How to Improve the participation of organ donation in Hong Kong? 5. Should Physical Fitness Centre adopt a ‘pay-as-you-go’ pricing model to attract and retain tertiary students and recent graduates as customers? 6. Is Apple’s GiveBack program ssuccessful in Hong Kong? 7. How should MANA! Fast Slow Food expand their market? 8. What are the Influencing factors for park attendances of Hong Kong Disneyland? 9. How do Huawei increase Market share in Hong Kong’s smartphone market? HKUST, MARKETING RESEARCH Some Criteria for A Good Project Topic 1. Fun, interesting, exciting! 2. Be practically relevant 3. Must solve a decision problem (see next lecture) 4. The answer to the decision problem should not be too obvious Should HKUST open another canteen? 5. The answer to the decision problem should depend largely on the demand side rather than the supply side Should HKUST build a new dormitory? Can the restaurant rent a larger place to expand? Does this government allow this company to enter its market? Should TikTok set the headquarter outside China? HKUST, MARKETING RESEARCH Some Criteria for A Good Project Topic 6. Data Availability and Collection Cost What type of data you may need for your research problem? How and where can you collect such data? Do you have enough time to finish the data collection? 7. Long-run return How to benefit more from working on this project beyond finishing this course requirement? What are the particular industries or brands that you want to work for? How will this project enhance your CV or job interviews? HKUST, MARKETING RESEARCH  Group Project (43 pts) Conduct market research in four steps 1. Form group and select research topic (2 weeks) 2. Research proposal (2 weeks) Report 3. Exploratory research and questionnaire design (4 weeks) Report 4. Descriptive research with data analysis (5 weeks) All teams will present the entire projects Final report Be a good team player! → There will be peer evaluation in the end! Will be used to decide score penalty! HKUST, MARKETING RESEARCH  Checklist 1. Read syllabus on Canvas 2. Form groups 3. Readings for next class Chapters 2 and 3 Case: All Nutrition (A/B) HKUST, MARKETING RESEARCH