Marketing Research Module 1-3 PDF

○ Focuses on understanding the marketing Module 1: Introduction to Marketing Research environment and diagnosing potential problems....

○ Focuses on understanding the marketing Module 1: Introduction to Marketing Research environment and diagnosing potential problems. ○ Examples: Topic 1: The Nature & Scope of Marketing Research Market-potential research: Identifying the potential demand for a product or Definitions service. Market-share research: Studying a Philip Kotler's Definition: company's share in a particular market. Marketing research is a systematic approach to problem Image research: Evaluating consumer analysis, model building, and fact finding. perceptions of a brand or company. The goal is to improve decision-making and control in the Market-characteristic research: marketing of goods and services. Understanding key attributes and behaviors in a market. Paul Green & Donald Tull's Definition: Sales-analysis research: Analyzing sales performance and trends. Marketing research is a systematic and objective search Business-trends research: Examining for information relevant to identifying and solving broader trends in the business marketing problems. environment. Forecasting research: Predicting future American Marketing Association (AMA) Definition: market conditions or sales performance. Marketing research links the consumer, customer, and 2. Problem-Solving Research: public to the marketer through information. ○ Purpose: To help solve specific marketing This information helps to: problems or develop a solution. ○ Identify and define marketing opportunities and ○ The findings from this research support problems. decisions addressing specific issues in marketing. ○ Generate, refine, and evaluate marketing ○ Application: Used for decision-making on actions. marketing strategies, product development, ○ Monitor marketing performance. pricing, distribution, and promotional activities. ○ Improve understanding of marketing as a process. Marketing research involves: Suppliers and Services ○ Specifying the information required to address issues. Managers/Decision Makers acquire information for decision-making ○ Designing methods for collecting data. from two primary sources: ○ Managing and implementing data collection. ○ Analyzing results and communicating the 1. Internal Suppliers: In-house departments or teams that findings and implications. provide marketing research. 2. External Suppliers: Outside companies offering specialized European Society for Opinion and Marketing Research (ESOMAR): marketing research services. Defines marketing research as the systematic gathering and interpretation of information about individuals or organizations. 1. Internal Suppliers It uses statistical and analytical methods to gain insight or support decision-making. Corporate/In-House Marketing Research Department: Protects the identity of respondents, ensuring no sales Often includes teams like sales analysis, accounting, and approach is made to them without explicit consent. strategic planning that provide relevant internal data. 2. External Suppliers Classification of Marketing Research Full-Service Suppliers: Companies offering a complete 1. Problem-Identification Research: range of marketing research services. ○ Purpose: To help identify problems that may not ○ Syndicated Services: Provide commercially be immediately visible but exist or could arise in valuable information to multiple clients on a the future. subscription basis.  ○ Customized Services: Offer tailored marketing 4. Management Intelligence. research services based on client needs. ○ Online Services: Provide secondary data, Umbrella of Business Intelligence: intelligence gathering, surveys, qualitative interviews, and social media engagement, with research findings published exclusively online. ○ Market Research Reports & Advisory Services: Provide off-the-shelf reports, data briefs, and insights on various markets and consumer types. Limited-Service Suppliers: Companies specializing in one or more specific phases of a marketing research project. ○ Field Services: Data collection through postal surveys, interviews (face-to-face, phone, online). ○ Coding and Data Entry Services: Manage data entry, editing, coding, and transcribing. ○ Analytical Services: Help design questionnaires, sampling plans, and data collection methods. ○ Branded Marketing Research Products and Marketing Intelligence Services: Offer patented and branded procedures for data collection and analysis. Marketing Intelligence is the process of acquiring and ○ Panel Providers: Provide access to consumer, analyzing information to understand: business-to-business (B2B), or specialized ○ The market (both current and potential participant panels for surveys. customers). ○ Software Providers: Supply software for ○ The current and future needs, preferences, scripting, hosting, and analyzing surveys. attitudes, and behaviors of customers. ○ Online Community Providers: Create platforms ○ Changes in the business environment that may for building online research communities for impact the market size and nature. both quantitative and qualitative research. ○ Online Focus Groups & Streaming: Provide platforms for online focus groups and streaming results. Purpose of Marketing Intelligence: ○ Reporting Solutions: Offer engaging reporting tools and presentations, often beyond To assess market conditions and assist in strategic conventional methods like hard-copy reports research, risk and policy analysis, credit rating and PowerPoint. documentation, storage, and reporting. To ensure reliable, timely, and objective business information that supports decision-making. Topic 2: Marketing Research for Managerial Decision Making Key Areas: Business Intelligence Marketing intelligence integrates information from: ○ Customer analysis. Business Intelligence (BI): ○ Industry analysis. ○ General market conditions. A set of theories, methodologies, processes, Marketing intelligence requires: architectures, and technologies designed to transform ○ Understanding the internal and external raw data into meaningful information. environments related to customers, Plays a crucial role in a firm's strategic planning process by competitors, markets, and industry. helping to gather, store, access, and analyze corporate ○ Enhancing the decision-making process through data to support decision-making. integration of competitive intelligence, marketing research, and financial analysis. Components of Business Intelligence: 1. Financial Intelligence. 2. Marketing Intelligence. Components of Marketing Intelligence 3. Accounting Intelligence.  1. Marketing Research: 2. Strategy Development: ○ Focuses on collecting and using information about customers and their needs for designing Strategies help determine how to make and sell products effective marketing programs. or perform services. 2. Customer Relationship Management (CRM)/Database Key questions marketing research helps address: Marketing: 1. What business should we be in? ○ Integrates data on customer buying behavior 2. How will we compete? and motivations from a firm's database and 3. What are the objectives of the business? market research. Role of marketing research: Provides valuable insights for answering these strategic questions and guiding the business. Role of Marketing Research in Managerial Decision-Making 3. Marketing Program Development: Marketing Research's Role: According to Malhotra, Nunan, and Action programs focus on specific tasks (e.g., launching a Birks (2017): new product or advertising campaign). Marketing research primarily supports these programs by: Provides support to decision-makers by helping them: ○ Providing data and insights to guide the 1. Describe customer groups: Understand the execution of the specific marketing objectives scope and characteristics of different customer related to business strategies. segments. 2. Analyze market forces: Identify factors that 4. Implementation: influence customer needs and the marketer's ability to satisfy those needs. This phase begins with the decision to proceed with a new 3. Test marketing variables: Analyze individual and program or strategy and involves setting objectives, interactive marketing variables. budgets, and timetables. 4. Monitor successes and failures: Reflect on past Marketing research at this stage focuses on answering: marketing decisions to learn from successes and 1. Did the marketing program achieve its mistakes. objectives? 2. Should the program be continued, revised, or Improving Decision-Making: expanded? Measurable objectives for all elements of the marketing Marketing research aids in improving managerial decisions program are crucial for effective research in this phase. by supplying relevant, accurate, and timely information for use in the marketing planning process. This process moves sequentially through: 1. Situation Analysis. Factors Influencing Market Research Decision 2. Strategy Development. 3. Marketing Program Development. According to Aaker et al. (2013), conducting marketing research is 4. Implementation. not an automatic solution to organizational problems. Several factors must be considered before initiating research: Stages of the Marketing Planning Process 1. Relevance: ○ Research should not be conducted solely out of curiosity or to confirm past decisions. 1. Situation Analysis: ○ Relevance means that the research should support strategic and tactical planning by Purpose: To gain an in-depth understanding of the providing information that anticipates future marketing environment and market characteristics. needs and decision-making requirements. Marketing researchers track market trends and focus on 2. Type and Nature of Information Sought: understanding: ○ The decision to conduct research depends on ○ Customer behavior: Who are the customers? whether the required information is already How do they behave, and why? How will they available within the organization (from previous respond to marketing strategies? studies or managerial expertise). Goal: Provide information to identify problems and ○ If existing data meets the needs, further opportunities to support sound decision-making for marketing research is unnecessary. marketing programs and strategies.  3. Timing: ○ Research must be aligned with organizational schedules and important decision-making 5. What will we do with the research? deadlines. ○ Once data is collected, it needs to be analyzed, ○ Conducting research at the right time is crucial interpreted, and used to make to ensuring that the findings can influence key recommendations for action. decisions effectively. 4. Availability of Resources: ○ Adequate financial and human resources are 6 Stages of the Marketing Research Process essential for proper execution of a marketing research project. Problem Definition: ○ Insufficient funds can lead to inefficient research, and having resources for research but Clearly defining the problem is the first step before not for implementation renders the research moving forward with the research. useless. Development of an Approach: This involves identifying factors that affect the research Cost-Benefit Analysis: design, and selecting or adapting a theoretical framework. Before conducting research, organizations should perform a cost-benefit analysis. Research Design Development: The decision to conduct marketing research depends on the perceived value of the information gained, weighed The research design serves as the blueprint for conducting against the cost and time required to complete the the study. It details the procedures for obtaining the research. necessary information. The purpose is to test hypotheses or answer research questions, leading to decision-making insights. Module 2: The Marketing Research Process Fieldwork/Data Collection: Topic 1: Overview of the Research Process Data collection begins with gathering secondary data (data previously collected for another purpose). Marketing Research Process Secondary data helps guide sampling plans and reduces redundancy. 1. Why should we do research? If needed, primary data is collected through formal ○ This question establishes the purpose of the sampling methods and qualitative or quantitative studies. research from the perspective of the management team. Data Preparation and Analysis: ○ The focus is on understanding the decisions to be made and the problems or opportunities Data preparation involves editing, coding, transcription, that need to be addressed. and verification. 2. What research should be done? For quantitative data, surveys are loaded and transcribed ○ The management purpose is translated into into analysis tools. research objectives. For qualitative data, analysis may occur during the ○ The objectives specify the questions that need collection phase, requiring the researcher to reflect on to be answered through the research. their learning and interpretations. 3. Is it worth doing the research? ○ A decision must be made about whether the Preparing and Presenting the Findings: value of the information to be gained is greater than the cost of obtaining it. Research is typically documented in a written report 4. How should the research be designed to achieve the detailing the problem, approach, data collection, analysis, research objectives? and findings. ○ Design decisions include: Modern presentations may also use visuals (videos, Research approach: Choosing infographics) for greater clarity and impact, especially between secondary data or given time constraints and technological advancements. conducting a survey or experiment. Details on how to collect the data. Defining the Marketing Research Problem Importance of Defining the Problem: Common Errors in Problem Definition: Defining the problem is the first and most important step Defining the problem too broadly: in the research process. ○ A broad definition does not provide clear Accurate problem definition ensures the research project guidelines for the research. is properly conducted. ○ Examples: A misdiagnosed problem can lead to misleading or Developing a marketing strategy for a dangerous findings for the organization. brand. Problem definition involves stating the general problem Improving a company’s competitive and identifying its specific components. position. These are too vague and don't suggest Problem Definition as a Combination of Data and Judgment: a clear approach or research design. Defining the problem too narrowly: Defining problems accurately is a combination of data and ○ A narrow focus may overlook innovative judgment. solutions and important components. It requires careful thought and effort. ○ Example: A firm focused only on responding to a Only when the problem is clearly defined can the research competitor's price cut missed broader be designed and conducted properly. opportunities to increase market share and Problems and Opportunities in Marketing: profitability. ○ Redefinition by external experts led to a more Problems and opportunities are often used creative approach, increasing market share by interchangeably in marketing research. adjusting the price and introducing new brands. Both represent a gap between what was expected and what actually happened. Topic 2: Problem Definition, Research Objectives, and Marketing Analyzing Gaps as Problems (Aaker et al., 2013): Research Ethics Recognizing a problem: A problem exists when there is a Types of Information Used by Decision Makers gap between expectations and actual outcomes. ○ To recognize a problem, three elements are needed: Pragmatic Forms: based on two fundamental dimensions (availability and degree of manipulation) 1. An expectation of what was supposed ○ Subjective Information - based on the to happen. decision maker’s past experiences, 2. Feedback on what actually occurred. expertise, etc without any systematic 3. Comparison between the expectation gathering of facts. and the feedback. ○ Secondary Information - collected and Knowing where and when the gap occurred: This helps interpreted at least once for some specific approach the cause and solution with the appropriate situation other than the current one. level of analysis. ○ Primary Information - first hand information Problem definition is both a creative act and a balance derived through a formalized research between thorough research and intuition. process for a specific, current problem situation. General Rule for Defining a Research Problem: *Availability of the Information - refers to the degree to The definition should: which the information has already been collected and 1. Allow the researcher to gather all necessary assembled in some type of recognizable format. information to address the marketing decision problem. *Degree of Manipulation - refers to the extent to which data 2. Guide the researcher in maintaining focus and structures and results have been proceeding consistently with the project. interpreted and applied to a specific situation.  Scientific Forms: based on two fundamental dimensions (quality and complexity) Situations When Marketing Research Might Not Be ○ Facts Needed Some piece of information that is Information already available observable and verifiable through a ○ When the decision maker has significant number of external sources. knowledge of the markets, relevant products are considered high-quality, and services, and competition, enough uncomplicated bits of information. information may exist that allows for an As long as a fact is timely, decision informed decision without commissioning makers can place a great deal of marketing research. reliance on it as they look for computer and information solutions to a specifically defined processing technology enhance problem. providing the right information to ○ Estimates the right decision makers in a a generalized application of a fact timely fashion from a limited source to information Insufficient Time Frames about a larger source. ○ There are times when the discovery of a The quality of estimates is decision problem situation leaves an determined by the accuracy of inadequate time frame for implementing the measurement and their true necessary research activities for properly representativeness of the whole conducting primary data and information. group under investigation. In competitive market Normally, estimates are somewhat environments, competitor less reliable than facts, yet they are actions/reactions might come so more complex because of the fast that they make it impossible to statistical procedures by which they have formalized marketing are derived. research activities as a feasible ○ Predictions option. An estimate that is carried into the Inadequate Resources future. ○ If there are significant limitations in money, Less reliable than estimates. manpower, and/or facilities, then marketing Since predictions are nothing more research activities tend to be discounted as than projections of estimates into being not feasible. the future, they will automatically Costs outweigh the value include (and probably magnify) ○ In situations where the decision maker is whatever errors have been allowed viewing the market symptoms of information to exist in the estimates. incorrectly as the decision problem, ○ Modeled Relationships necessary marketing research costs can be the existence of either a cause seen as being too costly for the value (or and-effect or a covariate interaction quality) attached to the proposed between two or more variables information. being investigated by the researcher Determining When to Undertake the Information Research The quality of the final information Process relies heavily on the precision of the researcher’s statements of the relationships between several factors simultaneously affecting sales. But relationship models can be built that can simultaneously compare sales to price changes, advertising expenditures, salesperson incentives, shorter warranty periods, and customers’ occupation status.  Determine the Unit of Analysis ○ The unit of analysis will provide direction in Phase 1: Determination of the Information Research later activities such as scale measurement Problems development and drawing appropriate samples of respondents. 1. Determine and Clarify Management’s Information The researcher must be able to Needs specify whether data should be collected about individuals, households, organizations, departments, geographical areas, specific objects, or some combination of these. Determine the Relevant Variables to the Situation ○ The researcher and decision maker jointly determine the specific variables pertinent to each defined problem or question that needs to be answered. The focus is on identifying the different independent and dependent variables. ○ Construct - concepts or ideas about an Purpose of the Research object, attribute, or phenomenon that are ○ Determining the purpose of the worthy of measurement. research begins any good problem definition process The Iceberg Principle ○ principle that states that only 10% of most problems are visible to decision makers, while the remaining 90% must be discovered through research. 2. Redefine the Decision Problem as a Research Problem - The fundamental reason why it is necessary to reformulate most decision problems is that the decision makers use pragmatic frameworks and terminology in their efforts of initially defining a problem, whereas most researchers are trained to investigate problems and opportunities using scientific frameworks. Understand the Complete Problem Situation Hypothesis ○ Situation analysis - a tool that focuses on ○ an unproven statement of a research the informal gathering of background question in a testable format. information to familiarize the researcher with ○ Hypothetical statements can be formulated the overall complexity of the decision area. about any variable and can express a possible relationship between two or more Identify and Separate Out Measurable Symptoms market factors. ○ Once the researcher understands the overall problem situation, he or she must work with the decision maker to separate the root Fundamental and Philosophical Differences problems from the observable and between Management and Researchers measurable symptoms that may have been initially perceived as being the decision problem. 3. Establish Research Objectives and Determine the Value of the Information Establishing Research Objectives ○ Research objectives - precise statements of what a research project will attempt to Objectivity achieve. ○ The decision maker needs clear allow the researcher to document confirmation of how the sampling concise, measurable, and realistic procedures that will be employed will avoid events that either increase or bias. decrease the magnitude of ○ For any project, decision makers need to marketing management’s problems understand that statistics must be used and allow for the specification of reported properly. information required to assist ○ If the level and type of analysis are not management’s decision-making clearly specified at the start of a project, capabilities. misuse of statistics can easily occur. Determining the Value of the Expected ○ Researchers must avoid designing projects Information to achieve a predetermined outcome that ○ The decision maker and the researcher will support some action or cause. need to understand the potential worth of Confidentiality acquiring information. ○ It becomes good practice for the decision ○ The major concern is whether the cost of maker to request from an outside researcher generating the information will exceed its a statement of confidentiality and proprietary value. treatment of information. Market research should be It should also be established at this conducted only when the expected time that any documentation value of the information to be generated by the research project obtained exceeds the cost of (completed questionnaires, obtaining it. sampling frames, data analysis printouts) will become the property of the decision maker’s company. Inaccurate Data ○ Both controllable and uncontrollable factors can develop to cloud the accuracy of the data collected in a research project. Data Validation ○ Both controllable and uncontrollable factors can develop to cloud the accuracy of the data collected in a research project. Ethics in Marketing Research Practices Pricing the Research Project - The major sources of ethical dilemmas in marketing ○ The type of information needed (secondary research are the interactions among the three key vs. primary data), budget allocation (dollar groups: amount set aside for conducting research activities), complexity of the needed 1. the research information user (decision information (basic demographic maker, sponsoring client, management characteristics or detailed attitudes and team, practitioner) behaviors), staffing sources (inhouse or 2. the research information provider outsourcing the activities), and time frame (researcher, research organization or requirements (quick vs. long), as well as the company, project supervisor, researcher’s decision maker’s confidence in the staff representative or employees) researcher’s ability and the specifications of 3. the selected respondents (subjects or the research project, all impact the process objects of investigation) of determining the value/cost of any proposed research study.  A policy of unethical pricing practices is a Code of Ethics of the American Marketing Association common source of conflict ○ Research companies may bid an arbitrarily low project price from a fixed-cost basis to secure the client’s business, then increase the amount of money received by manipulating variable project costs. For example, after quoting a set overall price for a proposed research project, the researcher may tell the decision maker that variable-cost items such as travel expenses, monetary response incentives, or fees charged for computer time are extra, over and above the quoted price. Such “soft” costs can be easily used to manipulate the total project cost. Never fulfilling the promises they make to respondents and certain field workers ○ Some research firms may just simply not provide the promised incentive (contest awards, gifts, even money) to respondents for completing the interviews or questionnaires. Also, many firms will delay indefinitely the fees owed to field workers (interviewers, data tabulators, data entry personnel). Some researchers or the organization create respondent abuse ○ selling the respondents’ names and demographic data to other companies without their approval ○ using infrared dye on questionnaires to trace selective respondents for the purpose of making a sales call ○ using hidden tape recorders in a personal Market and Opinion Research Society of the Philippines interviewing situation without the respondent’s permission. Three of the most important breaches of ethical conduct are: ○ falsifying data ○ duplicating actual response data ○ consciously manipulating the data structures inappropriately Unethical Activities by the Client decision maker requests a detailed research proposal from several competing research providers with no Module 3: Types of Marketing Research intention of selecting a firm to conduct the research decision makers promising a prospective research Topic 1: Exploratory Research Design provider a long-term relationship or additional projects in order to obtain a very low price on the initial research project Research Problem Unethical Activities by the Respondent Based on situational and SWOT analysis, identify a providing dishonest answers or of faking behavior marketing problem or opportunity. the respondent’s right to privacy Clearly state the research problem and define the need to disguise the true purpose of the research specific research questions. the respondent’s right to be informed about certain Examples of research questions: aspects of the research process What customer characteristics influence sales?  How does ambiance affect customer When to Use Qualitative Research in Exploratory Designs preferences? 1. Identifying a Business Problem or Opportunity: Do promotions positively influence patronage? Qualitative research is useful when decision-makers or researchers are in the process of correctly Translate these research questions into research objectives. identifying a business problem or opportunity situation, or when establishing information Exploratory Research Design requirements for a study. Exploratory research is conducted when the problem is not clearly defined. 2. Preliminary Insights into Motivation and Attitudinal Used to gain deeper insights, generate ideas, and Factors: formulate hypotheses for future research. This type of research is typically used in the early It is particularly appropriate when there is an stages of a project to explore issues, clarify interest in obtaining preliminary insights into the problems, and prioritize research questions. motivation, emotional, attitudinal, and Exploratory research is open-ended and flexible, personality factors that influence marketplace allowing researchers to investigate various aspects of behaviors. a problem without a rigid structure. Examples: 1. A company entering a new market: 3. Building Theories and Models: The company conducts exploratory research to Qualitative methods are used when building understand customer needs, preferences, and theories and models to explain marketplace behaviors before designing a specific product or behaviors or relationships between two or more marketing strategy. marketing constructs. This step helps to conceptualize these behaviors for further investigation. 2. A business entering a new geographical market: Exploratory research is used to investigate cultural preferences, buying behaviors, and local 4. Developing Scale Measurements: competition. This research helps the business Researchers use qualitative methods when shape its marketing strategies​ attempting to develop reliable and valid scale measurements for investigating specific market factors, such as consumer qualities (e.g., Differences Between Qualitative & Quantitative Research attitudes, emotional feelings, preferences, beliefs, Methods perceptions) and behavioral outcomes. 5. Testing Marketing Strategies: Qualitative research is valuable when decision-makers or researchers are trying to determine the preliminary effectiveness of their marketing strategies on actual marketplace behaviors. 6. New Product or Service Development: It is also useful for new product or service development or repositioning current products or service images. Researchers rely on qualitative methods to explore consumer needs, preferences, and perceptions. Advantages of Qualitative Research ○ Picture Tests: Subjects are shown an image and asked to describe what they think Economy and Timeliness: Faster data collection is happening. compared to large-scale quantitative studies. ○ Cartoon/Balloon Tests: Subjects complete Richness of Data: Provides detailed insights into dialogue or thought bubbles in a cartoon customer behaviors, perceptions, and motivations. image. Accuracy: Qualitative methods can capture ○ Role-Playing: Subjects act out a scenario to contextual details about behaviors that quantitative explain behaviors indirectly. methods may overlook. Objective: To uncover feelings or beliefs that subjects Preliminary Insights: Helps in building models or might not reveal in direct questioning. frameworks for further quantitative research. Disadvantages of Qualitative Research Lack of Generalizability: Results may not be 4. Role-Playing Interviews: applicable to larger populations. Data Reliability: Data collected may not always be Subjects are asked to act out someone else’s consistent, leading to lower reliability. behavior in a given scenario. Limited Ability to Detect Small Differences: Example: Instead of asking why someone doesn’t Qualitative data may not reveal nuanced distinctions. shop online, the researcher might ask, “Why do Difficulty in Finding Skilled Researchers: Requires people generally not use the internet to shop for highly trained interviewers and observers to conduct household items?” the research effectively. 5. In-Depth Interviews: Questioning Techniques in Qualitative Research This is a formal, semi-structured interview process where a well-trained interviewer asks open-ended questions to gain deep insights into the subject’s 1. Experience Surveys: opinions or behaviors. Example: Researchers for Marriott Hotels may Refers to the informal gathering of information conduct in-depth interviews with business travelers to from individuals who are knowledgeable about the understand their preferences for hotel services. research problem. Probing Questions: These are follow-up questions Example: If a company like Amazon faces issues that build on the subject’s initial response to gain with online purchases, they may survey dissatisfied more detailed information. customers to understand the difficulties. 6. Focus Group Interviews: 2. Protocol Interviewing: A small group of people are brought together for an In this technique, the subject is placed in a interactive, spontaneous discussion about a decision-making situation and asked to verbally specific topic. express the process they would go through to make Focus groups help generate ideas and reveal a decision. consumer perceptions through group interaction. Useful for understanding the steps and motivations behind decision-making processes. Example: Dell Computer Company may use protocol interviewing to understand the steps Research Objectives of In-Depth Interviews and Focus Group consumers take when purchasing a PC online. Interviews 1. To provide data for defining and redefining marketing 3. Projective Techniques: problems or opportunity situations. 2. To identify specific hidden information requirements. This is an indirect method of questioning that 3. To reveal and understand consumers’ hidden needs, enables subjects to project their beliefs and feelings wants, attitudes, feelings, behaviors, perceptions, and onto a third party or task. motives regarding services, products, or practices. Projective techniques include: 4. To generate new ideas about products, services, or ○ Word Association: Subjects are given a delivery methods. word and asked to provide the first word that 5. To discover new constructs and measurement comes to mind. methods. ○ Sentence Completion: Subjects complete 6. To better understand changing consumer preferences an unfinished sentence to reveal their thoughts. Advantages of using Qualitative Methods of Developing Data Topic 2: Types on Marketing Research Structures 1. Economy and Timeliness of Data Collection: Descriptive Research Design Qualitative methods allow for faster and more cost-effective data gathering, especially in Descriptive research aims to describe characteristics of market exploratory research phases. This is crucial when phenomena and evaluate current marketing mix strategies in decision-makers need preliminary insights without defined target populations. It's appropriate when the research investing in large-scale quantitative studies. questions focus on understanding who, what, where, when, and how regarding a target market. Interrelatedness of Descriptive Research Designs and 2. Richness of the Data: Survey Research Methods: The depth and detail provided by qualitative research capture complex behaviors, motivations, 1. Decision Problem/Opportunity: Identifying specific and attitudes that may not emerge through characteristics of market phenomena. structured, quantitative methods. This richness 2. Information Research Questions: Understanding enhances the understanding of consumer specific factors about a market population or experiences. structure. 3. Research Objectives: Defining research goals based on these questions. 3. Accuracy in Recording Marketplace Behaviors: Qualitative methods are highly effective in accurately documenting behaviors and actions in real-world Advantages of Quantitative Survey Research Designs settings, allowing researchers to observe patterns that may not be apparent in numerical data. Large Sample Sizes: Can accommodate large samples, which increases the generalizability of results. Small Differences: Ability to distinguish subtle differences in 4. Preliminary Insights into Building Models and data. Scale Measurements: These methods provide essential preliminary Ease of Administration: Simplifies the process of insights that inform the development of theoretical administering and recording questions and responses. models and scale measurements. This foundational data is critical for refining hypotheses and ensuring Advanced Statistical Analysis: Capable of using complex that subsequent quantitative research is focused and statistical methods to interpret data. relevant​ Factors and Relationships: Allows the investigation of factors and relationships that may not be directly measurable. Disadvantages of Quantitative Survey Research Designs Instrument Development: Difficulty in creating accurate survey instruments (e.g., questionnaires). Detail Limitation: Limits the depth of detail that can be captured in data. Timeliness and Response Rates: Lack of control over response timing and often faces low response rates. Truthfulness of Responses: Difficulty in determining whether respondents are answering truthfully. Data Misinterpretation: Risk of misinterpreting results and misuse of data analysis techniques. Types of Survey Methods Drop-Off Surveys Hybrid of mail and personal interviews where surveys Personal Interviews (Face-to-Face) are delivered to respondents and picked up later. Useful in local communities or small-scale studies. In-person data collection where the interviewer asks Advantages: respondents questions directly. ○ Higher response rates than mail surveys Suitable for gathering detailed and complex ○ Allows for clarifications at the drop-off point information as visual aids or products can be shown. Disadvantages: Allows observation of non-verbal cues. ○ Labor-intensive Advantages: ○ Geographically limited ○ High response rate ○ Control over the interview environment Disadvantages: ○ Expensive and time-consuming Important Factors to Consider in Selecting a Survey Method ○ Interviewer bias potential Budget and Cost Constraints: Telephone Interviews Different survey methods have varying costs. Some Data collection through phone calls, often using require more resources (e.g., personal interviews), random digit dialing. while others, like online surveys, may be more Efficient for reaching large populations quickly. cost-efficient. Advantages: It’s essential to balance the budget while still ensuring ○ Cost-effective compared to personal the collection of high-quality data that aligns with interviews research goals. ○ Fast data collection Disadvantages: Time Available for Data Collection: ○ Limited interview length ○ Potential for lower response rates due to The time allotted for the survey directly influences the screening technologies choice of method. For instance, online or telephone surveys may be faster to conduct than face-to-face Mail Surveys interviews. In time-sensitive projects, methods that allow rapid Self-administered questionnaires sent to respondents deployment and immediate responses may be by mail. prioritized. Respondents can complete the survey at their convenience. Data Quality Requirements: Advantages: ○ Low cost The chosen survey method must match the required ○ No interviewer bias data quality. Some methods, like personal interviews, Disadvantages: provide more in-depth and reliable responses but are ○ Low response rate more time-intensive. ○ Long turnaround time for responses Less controlled environments, such as online surveys, might introduce biases or incomplete data, Online Surveys (Internet-Based) impacting quality. Surveys conducted via email or websites, where Respondent Availability and Access: respondents complete questionnaires online. Popular due to the ease of distribution and scalability. The ease of access to the target audience also Advantages: affects the selection of survey methods. Certain ○ Cost-effective and fast populations may not have reliable internet access, ○ Data can be quickly analyzed using digital making online surveys impractical. tools For specialized groups, targeted methods such as Disadvantages: focus groups or in-depth interviews may yield better ○ May exclude non-Internet users responses. ○ Potential for lower response quality Cultural and Geographical Considerations: Surveys must be tailored to suit cultural sensitivities, language differences, and geographical access.  Some regions may have a preference for personal Research Topic Sensitivity: interactions, while others may lean towards digital solutions. To what degree are the questions sensitive in social, political, or personal contexts? Survey Complexity: The complexity of the questionnaire can determine the method. More complex questions requiring 3. Respondent Characteristics explanations or clarifications are better suited for personal interviews or in-depth surveys rather than Diversity: self-administered ones like online surveys. What commonalities exist among prospective Desired Sample Size: respondents? How many and which common characteristics have to exist? The size of the sample and the desired level of statistical significance can affect the choice. Methods Incidence Rate: that can reach a large number of respondents quickly, such as online or telephone surveys, may be What percentage of the defined target population has preferable for large-scale studies. the key characteristics to qualify for being included in the survey? Important Factors to Consider in Selecting a Survey Method Degree of Survey Participation: 1. Situational Characteristics Are the selected respondents able to fully engage in Budget of Available Resources: the question-and-answer process? What is the Assess the financial resources available for person's ability to participate? What is the person's conducting the research. Consider costs related to degree of willingness to participate? What is the survey development, data collection, analysis, and knowledge-level requirement for participation in the reporting. survey process? Completion Time Frame: Determine how long the survey process will take, Types of Errors from design to analysis. Time constraints may affect the choice of survey method. Sampling Errors: Quality Requirement of the Data: Define the level of accuracy and detail required in the Random Sampling Error: This is the statistically data. High-stakes decisions may necessitate more measured difference between the actual sampled robust data collection methods. results and the estimated true population results. This type of error is inversely related to sample size; as 2. Task Characteristics the sample size increases, the sampling error Difficulty of the Task: decreases. How much effort is required by the respondent to Non-Sampling Errors: These represent all errors that can answer the questions? How hard does the subject enter the survey research design that are not related to the have to work to answer? How much preparation is sampling method or sample size. Non-sampling errors can be needed to create a desired environment? categorized into: Stimuli Needed to Elicit a Response: Respondent Error: ○ Non-response Errors: Occur when certain How much physical stimulus does a respondent individuals do not respond to the survey, need? Are specific stimuli required? How complex do which can lead to biased results if the the stimuli have to be? non-respondents differ significantly from respondents. Amount of Information Needed: ○ Response Biases: This includes biases that arise from how respondents answer How detailed must the answers be? Will probing questions, whether due to activities be needed? How many questions should misunderstanding, misrepresentation, or there be? How long should respondents expect to social desirability. take?  Measurement and Design Errors: Benefits and Limitations of Observation Techniques ○ Errors related to the development of constructs, scale measurements, and the Benefits: design of the survey instrument itself. Poorly ○ Ability to capture natural, unfiltered worded questions or inappropriate response behaviors scales can lead to inaccurate data. ○ Provides objective, quantifiable data Administrative Errors: ○ Useful for exploring complex or ○ These errors occur during data processing, subconscious behaviors interviewing, or sample design. They can Limitations: include issues like data entry mistakes, ○ Potential for observer bias and interpretation interviewer bias, or selection bias in errors sampling. ○ Subjects may alter behavior when aware of observation Observational Techniques ○ Ethical concerns around privacy and consent Observation- The systematic activities of witnessing and recording the behavioral patterns of objects, people, and events without directly communicating Experimental Research Designs- Types of Variables with them. Independent Variable What can be Observed? ○ The variable the researcher manipulates to observe its effect 1. Physical Actions ○ Example: Tide laundry detergent package - Consumers’ shopping patterns or design automobile driving habits. Dependent Variable 2. Expressive Behaviors ○ The variable measured to assess the impact - The tone of voice and facial expressions of of the independent variable respondents during a personal interview. ○ Example: Tide unit sales Control Variable 3. Verbal Behavior - Telemarketing phone conversations. ○ Variables held constant to isolate the effect of the independent variable 4. Temporal Behavior Patterns ○ Example: Store location, time of day, - The amount of time spent online shopping or advertising exposure at a particular website. Extraneous Variable 5. Spatial Relationships and Locations ○ Variables that could influence the dependent - The number of vehicles that move through a variable but are not the focus of the study traffic light sequence or movements of ○ Example: Competitor promotions, weather people at a theme park. conditions 6. Physical Objects - Which brand name items are purchased at supermarkets or which make/ model SUVs Types of Experimental Designs Types of Observing Mechanisms 1. Between-Subjects Design ○ Each participant is exposed to only one level of the independent variable 1. Human Observation 2. Within-Subjects Design ○ Researcher or trained observer records text, ○ Each participant is exposed to all levels of actions, and behaviors the independent variable ○ Requires strong observation and interpretive 3. Mixed Design skills ○ Combination of between-subjects and 2. Mechanical Observation within-subjects elements ○ Use of devices to capture human behavior (cameras, scanners, monitors) ○ Provides more objective and quantifiable data Test Marketing Controlled field experiments to measure a product's sales potential and evaluate marketing mix variables Provides insights on consumer acceptance and performance of a new product or marketing strategy Advantages of Test Marketing Realistic market conditions Ability to measure actual sales Opportunity to refine marketing mix Disadvantages of Test Marketing Time and cost-intensive Limited geographic scope Potential for competitive response