Marketing Research Exam 1 - PDF

Marketing Research – Exam 1 ➔ T/F (5), multiple choice (20), Short answer (20) application-based, steps, components, implementation, research problem. (CH.1,2,3,4,8) How can we use marketing research to inform our marketing strategy? ➔ Marketing research helps markete...

Marketing Research – Exam 1 ➔ T/F (5), multiple choice (20), Short answer (20) application-based, steps, components, implementation, research problem. (CH.1,2,3,4,8) How can we use marketing research to inform our marketing strategy? ➔ Marketing research helps marketers: Identify marketing opportunities and problems Generate, refine, and evaluate potential marketing actions Monitor marketing performance 1. Why is marketing research crucial to the marketing concept? Marketing research is crucial to the marketing concept because it helps businesses understand customer needs and preferences, enabling them to create, deliver, and communicate value more effectively than competitors. It ensures that marketing strategies are customer-focused and data-driven, reducing the risk of failure and improving decision-making. 2. How can marketing research help us learn about the external environment? Marketing research helps businesses understand the external environment by analyzing factors such as: Market trends: Shifts in consumer behavior, preferences, and demand. Competitive landscape: Competitors’ strategies, strengths, and weaknesses. Economic conditions: Impact of inflation, unemployment, etc., on consumer spending. Technological advancements: Opportunities or threats from new technologies. Cultural and social factors: Societal trends and cultural influences on consumer behaviour. Legal and regulatory changes: Compliance with laws and anticipation of regulatory impacts.  3. What are the 3 roles of marketing research? The three roles of marketing research are: 1. Descriptive: Gathering and presenting facts about the market (e.g., customer demographics, market size). 2. Diagnostic: Explaining why certain phenomena occur (e.g., why sales are declining). 3. Predictive: Forecasting future trends or outcomes (e.g., predicting demand for a new product). 4. When should marketing research be performed? (And when should it not?) When to perform marketing research: Before launching a new product or entering a new market. To understand customer satisfaction or dissatisfaction. When sales or market share decline unexpectedly. To evaluate the effectiveness of marketing campaigns. When making significant strategic decisions (e.g., pricing, distribution). When not to perform marketing research: When the cost of research outweighs the potential benefits. When the decision is time-sensitive and there’s no time for research. When the data is already available (e.g., through secondary research). When the outcome is unlikely to influence the decision. 5. What is the difference between primary and secondary research? What are the pros and cons of each? Primary Research: Data collected firsthand for a specific purpose. o Examples: Surveys, interviews, focus groups, experiments. o Pros: Tailored to specific needs, highly relevant, up to date. o Cons: Time-consuming, expensive, requires expertise. Secondary Research: Data collected by others for other purposes but repurposed for your needs. o Examples: Industry reports, government publications, academic studies. o Pros: Cost-effective, quick to access, broad scope. o Cons: May not be specific to your needs, could be outdated or less reliable.  6. What is the difference between qualitative and quantitative data/research? Qualitative Research: o Focuses on understanding underlying reasons, opinions, and motivations. o Methods: Focus groups, in-depth interviews, observations. o Data Type: Non-numerical (e.g., text, audio, video). o Use Case: Exploring new ideas, understanding consumer behavior, generating hypotheses. Quantitative Research: o Focuses on quantifying data and generalizing results from a sample to a population. o Methods: Surveys, experiments, statistical analysis. o Data Type: Numerical (e.g., percentages, averages). o Use Case: Measuring market size, testing hypotheses, tracking performance. 7. When might a firm choose to move marketing research in house? When might a firm choose to work with an external agency for research? In-House Research: o When: The firm has the expertise, resources, and ongoing need for research. o Advantages: Greater control, cost-effective for frequent research, better alignment with company goals. o Disadvantages: Limited perspective, potential bias, higher initial setup costs. External Agency Research: o When: The firm lacks expertise, needs an unbiased perspective, or requires specialized skills. o Advantages: Access to expertise, unbiased results, scalability. o Disadvantages: Higher cost, less control, potential misalignment with company goals. 8. What is the difference between internal and external validity? Internal Validity: Refers to the extent to which a study accurately establishes a cause- and-effect relationship within the study itself. o Example: Ensuring that no other factors (e.g., seasonality) influenced the results of a price change experiment. External Validity: Refers to the extent to which the findings of a study can be generalized to other settings, populations, or contexts. o Example: Determining if the results of a study on customer preferences in one city apply to other regions. 1. Stages of the Marketing Research Process (and their order): The stages of the marketing research process, in order, are: Problem Definition: Define the decision problem and research problem. Data Collection: Collect data through exploratory, descriptive, or causal research. Data Analysis: Analyse the collected data to derive insights. Information Reporting: Prepare and present reports to inform decision-making. 2. Why should all research start with a problem definition? All research should start with a problem definition because it: Clarifies the purpose of the study. Ensures the research addresses the right issues. Guides the selection of appropriate research methods. Prevents wasted resources on irrelevant data collection. 3. Difference between a problem and a symptom: Symptom: An observable, measurable issue (e.g., declining sales). Problem: The underlying cause of the symptom (e.g., poor product quality or ineffective marketing). Why it’s important: Fixing symptoms without addressing the root problem leads to recurring issues. Research helps uncover the real problem. 4. Difference between exploratory, causal, and descriptive research: Exploratory Research: Used to explore and understand a problem (e.g., focus groups, interviews). It’s flexible and unstructured. Descriptive Research: Describes characteristics of a population or phenomenon (e.g., surveys, observations). It’s structured and quantitative. Causal Research: Tests cause-and-effect relationships (e.g., experiments). It’s used to determine if changing one variable affects another. 5. Difference between a project approach and a systems approach: Project Approach: Focuses on solving a specific problem or answering a specific question. Systems Approach: Provides ongoing marketing intelligence to support decision- making over time. 6. Stages where error might be introduced: Errors can be introduced in any stage of the marketing research process: Problem Definition: Mis defining the problem. Data Collection: Poor sampling, biased questions, or incorrect data collection methods. Data Analysis: Incorrect statistical methods or misinterpretation of data. Information Reporting: Misleading presentation of results. 7. Why conduct ethical marketing research? Ethics: Moral principles guiding behaviour. Importance: Ethical research builds trust, ensures respondent rights, and maintains the integrity of the research process. 8. Three methods of ethical reasoning: Utility: Does the benefit outweigh the cost? Rights: Are human rights respected? Justice: Are benefits and costs distributed fairly? Respondent Rights: Right to choose, safety, privacy, and to be informed. 9. Practical guidelines for ethical research: Use common sense. Ensure actions align with your best self. Make decisions public and seek second opinions. Avoid greed, speed, laziness, or haziness. 10. Advocacy research, sugging/frugging, and other unethical practices: Advocacy Research: Research designed to support a predetermined position. Sugging/Frugging: Selling products under the guise of research or fundraising. Other Unethical Practices: Falsifying data, violating terms of service, or competitive intelligence that goes too far. Problem Definition and Hypotheses 1. Why start with a problem definition? Starting with a problem definition ensures the research is focused, relevant, and actionable. 2. Managerial Decision Problem (MDP) vs. Research Problems: MDP: A business problem from the manager’s perspective (e.g., “Why are sales declining?”). Research Problems: Specific questions the research will answer (e.g., “What is customer satisfaction with the product?”). 3. Discovery vs. Strategy Research Problems: Discovery: Explores what or why (e.g., “Why are sales declining?”). Strategy: Focuses on action (e.g., “How can we increase sales?”). 4. Planned vs. Unplanned Change: Planned Change: Anticipated changes (e.g., launching a new product). Unplanned Change: Unexpected changes (e.g., sudden sales drop). 5. Hypothesis, Construct, and Variables: Hypothesis: A testable statement (e.g., “Men donate more to charity than women”). Null Hypothesis (H₀): No effect or difference. Alternative Hypothesis (H₁): The predicted effect or difference. Construct: An abstract concept (e.g., “Customer Satisfaction”). Variables: Measurable elements of a construct (e.g., “Product Quality,” “Price”). 6. Best practices for formulating hypotheses: Clearly define the groups being compared. Specify the relationship or difference being tested. Ensure the hypothesis is testable and measurable. 7. Importance of exploratory research in problem definition: Exploratory research helps refine the problem, generate hypotheses, and understand the context before conducting more structured research. Exploratory Research 1. Why use exploratory research? Exploratory research is used to: Gain initial insights. Refine the problem. Generate hypotheses. It should not be used to answer the problem or as the final step in strategy formulation. 2. Types of exploratory studies: Literature Search: Review existing data and research. Focus Groups: Small group discussions to explore opinions. Depth Interviews: One-on-one interviews with knowledgeable individuals. Data Mining: Analyzing large datasets for patterns. Case Analyses: Studying specific cases to gain insights. Benchmarking: Comparing practices with industry leaders. Ethnography/Netnography: Observing behavior in natural settings (physical or online). Projective Methods: Indirect techniques to uncover hidden feelings (e.g., word association). 3. Best practices for exploratory studies: Depth Interviews: Interview experts, lead users, or those who live the experience. Nominal Groups: Follow steps like idea generation, voting, and ranking. Ethnography/Netnography: Observe behaviors, body language, and online interactions. Projective Methods: Use word association, sentence completion, or role-playing. 4. Purpose of a literature review: To gather existing knowledge. Identify gaps in research. Avoid duplicating efforts. 5. Focus groups: Purpose: To generate rich, qualitative insights through group discussion. Best Practices: Use a skilled moderator. Ensure homogeneity within groups. Obtain consent and inform participants of recording. Encourage open discussion using probes and icebreakers. Causal Research 1. What is causal research? Causal research tests cause-and-effect relationships (e.g., “Does increasing ad spend increase sales?”). 2. Cause and effect relationships: Cause (X): The independent variable (e.g., ad spend). Effect (Y): The dependent variable (e.g., sales). 3. Correlation vs. causation: Correlation means two variables are related, but it doesn’t imply one causes the other. 4. Evidence needed to infer causation: Consistent Variation: X and Y vary together. Time Order: X occurs before Y. Elimination of Other Explanations: No other variables explain the relationship. 5. Experiments: Experiments manipulate one or more independent variables to observe their effect on dependent variables while controlling for extraneous variables. 6. Independent, Dependent, and Extraneous Variables: Independent Variable (X): Manipulated by the researcher. Dependent Variable (Y): Measured outcome. Extraneous Variables: Other factors that could influence Y. 7. Internal vs. External Validity: Internal Validity: Confidence that X caused Y. External Validity: Generalizability of results to the real world. 8. Lab vs. Field Experiments: Lab Experiments: High internal validity but low external validity. Field Experiments: High external validity but lower internal validity. 9. Common Experimental Designs: Pre-Test/Post-Test: Measure Y before and after manipulating X. Control Group: Compare results with a group not exposed to X. A/B Testing: Test two versions of a variable simultaneously. 10. Test Markets: Standard Test Market: Real-world testing in a limited geographic area. Controlled Test Market: Testing in a controlled environment (e.g., a specific store). Simulated Test Market: Testing in a simulated environment (e.g., virtual store). Pros and Cons: Standard: Realistic but slow and expensive. Controlled: Faster and cheaper but less realistic. Simulated: Fastest and cheapest but least realistic. 11. Criteria for selecting a test market: Representativeness. Control over distribution and promotion. Degree of isolation from competitors.