MGT 453 - Marketing Research Lecture 1 Introduction PDF

Marketing Research Lecture 1: Introduction Professor Landry new AI chat support for MGT 453 may not always be accurate! if you are ever unsure, double- check with me  It is true: no textbook Previously used variations of Burns, Veeck, & Bush, Marketing Research Any additional...

Marketing Research Lecture 1: Introduction Professor Landry new AI chat support for MGT 453 may not always be accurate! if you are ever unsure, double- check with me  It is true: no textbook Previously used variations of Burns, Veeck, & Bush, Marketing Research Any additional readings will be posted to the course website or integrated into lecture slides  Today’s Class What is marketing research? → past, present, and future Why do marketing research? Class logistics  The Logo What was going The Slogan through your mind? How did you feel? The Hashtag What was going through your mind? How did you feel? (Can you elaborate?) Asking open-ended questions about thoughts & feelings: the quintessential tool for qualitative marketing research  To inform branding decisions… When you saw ReMax’s new logo… What was going through your mind? How did you feel?  To inform promotion decisions… When you watched the tripadvisor commercial with the owl in it… What was going through your mind? How did you feel?  To get feedback on a product or product prototype… When you first picked up the alloy rainbow fidget spinner… What was going through your mind? How did you feel?  To get consumer feedback on a service… During your helicopter ride over Niagara Falls… What was going through your mind? How did you feel? What was going through your mind? How did you feel? (Can you elaborate?) Asking open-ended questions about thoughts & feelings: the quintessential tool for qualitative marketing research Marketing Research: Qualitative vs. Quantitative Qualitative Quantitative Open-ended questions Predetermined response formats Wider range of responses Standardized data Intimate data collection Mass data collection from fewer subjects from large samples Subjects often exert more effort to Greater accuracy, generalizability of provide detailed/candid responses results; can apply statistical methods  Quantitative Marketing Research: Predetermined Response Formats Quantitative Predetermined response formats Standardized data Mass data collection from large samples Greater accuracy, generalizability of results; can apply statistical methods Did you… The Logo 1. get distracted by other things? 2. feel bored? 3. feel surprised? The Slogan 4. feel skeptical? 5. feel confused? 6. feel angry? The Hashtag 7. focus especially hard? 8. feel a strong emotional reaction? Q: why would researchers even care about these eye movements? A: They’re used to answer these same questions! Interpretation: orientations away from a stimulus indicates external distraction and/or boredom Interpretation: raised eyebrows indicates surprise and/or skepticism Interpretation: lowered eyebrows indicates confusion and/or anger Interpretation: dilated pupils indicates strong emotions and/or high cognitive engagement (i.e. mental energy) Q: How do researchers actually measure these eye movements? A: eye-tracking devices… (images from a neuromarketing firm that uses many biological sensors) Pupil dilation is often viewed as the most useful eye-tracking measure... Subjects cannot consciously dilate their pupils → may allow the researcher peer into a subject’s subconscious emotions, which can be very powerful forces on consumer behavior in the marketplace It is especially well-correlated with the constructs it is supposed to measure Pupil dilation still has its limitations... …if a subject’s pupils dilate in response to a stimulus, how do we know if they’re experiencing a strong emotion or a high level of cognitive engagement? …even if we knew the subject was experiencing a strong emotion, how do we know whether they’re experiencing a positive emotion or a negative emotion?  What is Marketing Research? Textbook: marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem Nielsen’s “people meter” Introduced in 1987 records consumers’ TV watching Installed in over 20,000 US homes, 2,500 in Canada, 800 in GTA People meters for home computers introduced by Nielsen in 2010 Nielsen’s “people meter” Nielsen is the #1 marketing research firm in the world; “What Consumers Watch” division ~$3 billion in annual revenues Who pays for this data? What is this data used for? Nielsen’s “people meter” What are its main advantages as a tool for collecting data? Passive, minimal interaction → cheaper data Naturalistic → “better” data Are there some disadvantages? Nielsen’s portable people meters – now wearable In 2011, Nielsen acquired Neurofocus, a neuromarketing company that primarily uses electroencephalography (EEG) to measure brain activity in response to stimuli Theory: frequency, amplitude, and origin of brain activity reveal how much a marketing stimulus engages a consumer and whether it triggers positive or negative emotions Neurofocus also uses eye-tracking and galvanic skin response measurements to complement EEG data During a strong emotional response, our pupils dilate and our skin momentarily conducts electricity better than usual …if a subject’s pupils dilate in response to a stimulus, how do we know if it’s due to a strong emotional response or high cognitive engagement? Galvanic skin response is more robustly linked to emotional states → researchers using eye-trackers may be able to better differentiate strong emotions from cognitive engagement by simultaneously measuring galvanic skin response …even if we knew the subject was experiencing a strong emotional response, how do we know whether the emotion is positive or negative? More work is needed, but some brain imaging studies tentatively suggest asymmetric patterns of frontal lobe activity as detected by EEG may help researchers differentiate positive emotions from negative emotions… Settings → Privacy & Security → Location Services iPhone Location/System Services Location-based Alerts: “Your iPhone and Apple Watch will use your location in order to provide you with geographically relevant alerts, such as an app or shortcut recommendation based on where you currently are.” iPhone Location/System Services Location-Based Suggestions: “The location of your iPhone will be sent to Apple to provide more relevant recommendations. ” Your location data is collected so that Apple can provide targeted services & promotions Previously called location-based ads iPhone System Services Significant Locations: “Allow your iPhone and iCloud connected devices to learn places significant to you in order to provide useful location-related information in Maps, Calendar, Photos, and more. Significant locations are end- to-end encrypted and cannot be read by Apple.” “This data is kept solely on your device and won't be sent to Apple without your consent.” The Marketing Research Process (Next Lecture)  Class Structure Lectures begin 10 minutes after the hour and end on the hour, usually with a 5 minute break midway Office Hours: Thursdays, 10am to 12pm Hybrid: KN 245 or zoom (link on quercus)  Grading Midterm 25% Group Project 35% Final Exam 38% Participation 2%  Group Project You will be conducting an online survey research project You will work in groups of 3 to 6 people If you want to form your own group: before our next class have one person from your group send an email to me and all other members of your group listing the names of everyone in your group For everyone else, I can assign you a group shortly after our next class Once you have formed groups, choose a topic for your project as soon as possible – by our third class at the latest  Group Project: Key Dates Jan 29: ~2-page proposal describing preliminary project idea is due I’ll meet with each group in the following weeks to give feedback February 5 (online): test potential survey questions on rest of class March 26 or April 2: group presentations April 4: final report due I’ll give more details on each part as we get closer to these dates  Midterm February 12 during class (no lecture that day) Closed everything Covers lectures/posted slides and any assigned readings Roughly half multiple choice, half short answer/short essay  Final Exam Cumulative Similar format as midterm, but longer and also includes quantitative questions Non-programmable calculator is allowed Date/time TBD  Email Communication Please use your University of Toronto account Please put “MGT 453” in subject Questions should be specific – please do not send emails like “please explain ABC,” instead come to office hours