Chapter 1

An Introduction to Marketing Research

What is marketing research?

Marketing research: is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. (Burns & Bush)
is the function that links the consumer, customer, and public to the marketer through informationinformation used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process. (AMA)

What is online research?

Online research: the use of computer networks, including the Internet, to assist in any phase of the marketing research process including development of the problem, research design, data gathering, analysis, and report writing and distribution

The Marketing Research Process: 11 Steps

Step One: Step Two: Step Three: Step Four: Step Five:

Step Six:

Establishing the Need for Marketing Research Defining the Problem Establishing Research Objectives Determining Research Design Identifying Information Types and Sources Determining Methods of Accessing Data

The Marketing Research Process: 11 Steps cont

Step Seven: Step Eight: Step Nine: Step Ten: Step Eleven:

Designing Data Collection Forms Determining Sample Plan and Size Collecting Data Analyzing Data Preparing and Presenting the Final Research Report

The Marketing Research Process

Step One: Establish the Need for Marketing Research

Marketing Research is not needed when the: required information is already available decisions need to be made now organization cant afford the research costs outweigh the value of the research

The Marketing Research Process

Step Two: Define the Problem

The most important step in the marketing research process is defining the problem.

The Marketing Research Process

Step Three: Establish Research Objectives

What information is needed in order to solve the problem?

The Marketing Research Process

Step Four: Determine Research Design

Exploratory Research: collecting information in an unstructured and informal manner Descriptive Research: refers to a set of methods and procedures describing marketing variables Causal Research (experiments and other approaches): allows isolation of causes and effects

The Marketing Research Process

Step Five: Identify Information Types and Sources

Secondary Data: information that has been collected for some purpose other than the research at hand Primary Data: information that has been gathered specifically for the research objectives at hand

The Marketing Research Process

Step Six: Determine Methods of Accessing Data

Secondary Data: accessing data through sources such as the Internet and library Primary Data: collecting data from participants through methods such as telephone, mail, online, and face-to-face (quantitative), and observation studies and focus groups (qualitative)

The Marketing Research Process

Step Seven: Design Data Collection Forms

The design of the data collection form that is used to ask or observe and record information in marketing research projects is critical to the success of the project. It is easy to write a set of questions but very difficult to construct a questionnaire. General types of instruments (forms) Questionnaires Observation Study forms (protocols)

The Marketing Research Process

Step Eight: Determine Sample Plan and Size

Sample plan: refers to the process used to select units from the population to be included in the sample Sample size: refers to determining how many elements (units) of the population should be included in the sample

The Marketing Research Process

Step Nine: Collect Data

Sound data collection is very important because, regardless of the data analysis methods used, data analysis cannot fix bad data. 12 Nonsampling errors may occur during data collection. These are related to poor design and/or execution of the data gathering. Sampling errors may occur based purely on chance

The Marketing Research Process

Step Ten: Analyze Data

Data analysis: involves entering data into computer files, inspecting data for errors (data cleaning), running tabulations (frequencies), and conducting various statistical tests

The Marketing Research Process

Step Eleven: Prepare and Present the Final Research Report

Findings are presented, often by research objective, in a clear and concise way. The need for a good report cannot be overstated. It is the report, and/or its presentation, that properly communicates the results to the client.

Scope of Marketing Research

Sales Analysis Product Management Advertising Research Corporate Research Syndicated Research

Growing Importance of Research in India

Monopolistic Business Demand was more than Supply Business was local; hence close to customers

Challenges faced in India

Countrys vast size Diversity in the population Infrastructure problem Literacy Issues Attitudinal problems

Marketing Research: A Brief History

Pre-Marketing Research Era: colonization to the Industrial Revolution Early Development Era: Industrial Revolution to 1920 Questionnaire Era: 1920-1940 Quantitative Era: 1940 to 1960 Organizational Acceptance Era: 1960 to 1980 PC Technology Era: 1980 to 1990 Globalization-Online Era: since 1990

Research Suppliers

Research Design
A Statement of Objectives Data inputs required on the basis of which the research problem has to be solved Method of Analysis Simply a BluePrint!

Types of Research Designs

Refer to Book 1, page 24
We must have one strong evidence to say that there exist a strong association between an action (causal variable) and ultimate outcome (effect variable) Action (causal variable) must precede outcome (effect variable) There must be no other possible factor (causal factor) which could have resulted in the observed outcome

Exploratory Research Design

Provides info to enable a more precise problem definition or hypothesis formulation Establishing research priorities Gives researched a feel of the problem Good start Methods Used
Survey of literature Survey of experienced individuals Analysis of selected case situations

Descriptive Research Designs

Most commonly used Combination of qualitative and quantitative More formal as compared to Exploratory Types
Panel Discussion Focus Groups Cross Sectional Designs

Quasi Experimental Designs

R = Random X = Experimental Treatment O = Observation

After-Only Without Control Group

XO Also called one-shot case study Test unit not selected at random Single group is exposed to treatment and then measurement is taken Eg: Effect of training on sales force No meaningful
No prior observation available for comparison The level of O could be result of other factors in addition of the effect of X

Before-After without Control Group

O1 X O2 Eg: Before training how did the sales perform in comparison to after training Limitation as does not consider:
Selection Bias: not randomly selected History: Economic conditions may have improved Maturation: Salesforce may have gained more experience Testing: The pre-test measurement might have affected the performance Instrumentation: Prices may have changed during that period Mortality: Some test units may have left during the period of training

The Static Group Comparison Design

Use of two groups Group 1 exposed to treatment and Group 2 is not Group 1 (experimental Group): X1 O1 Group 2 (Control Group): X2 O2
Note X2 is regular routine or program

Experiment result is obtained by O1 O2 Limitation: Groups not sleeted on random and some test units may have left during the period of trainin

Time Series Design

Refer to fig in Book 1 page 34 Extension of one group pre-test and post-test design Periodic measurement are taken for the same unit Ex: Advertising campaigns effect on Market Share Refer the Dig.

Multiple Time Series Design

Experimental Group: O1 O2 O3 X O4 O5 O6 Control Group: O1 O2 O3 O4 O5 O6

Experimental Designs
After-only with One Control Group Before-After with One Control Group Four Group Design

Data Collection

Primary Versus Secondary Data

Primary data: information that is developed or gathered by the researcher specifically for the research project at hand Secondary data: information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand

Classification of Secondary Data

Internal secondary data: data that have been collected within the firm Internal databases: databases (collection of data and information describing items of interest) consisting of information gathered by a company typically during the normal course of business transactions

Classification of Secondary Datacont.

External secondary data: data obtained from outside the firm Types: Published Syndicated Services Data External Databases

Advantages of Secondary Data

Obtained quickly (compared to primary data gathering) Inexpensive (compared to primary data gathering) Usually available Enhances existing primary data

Disadvantages of Secondary Data

Mismatch of the units of measurement

Need daily data yet only monthly available, need incomes of $75,000 and over only available $50,000 and over

Differing class definitions used Need users in between heavy, medium or light users Timeliness (how current is the secondary data) Lack of information needed to assess the credibility of the reported data (next slide)

Evaluating Secondary Data

What was the purpose of the study? Who collected the information and when was this done? What information was collected (questions, scales, etc.)? How was the information obtained (sampling frame, method of sample draw, communication method, resulting sample, etc.)? How consistent is the information with other published information?

Basic Method of Data Collection

Structured & Direct
Questionnaire / Interviews

Unstructured & Direct

Sentence Completion/ Picture Interpretation/ Word Association/ Focus groups

Structured & Indirect

Observations & Media

Unstructured & Indirect

Observations & Media

Sources of Error in Data Collection

Investigator
Personal Bias Misinterpretation

Respondent
Ambiguity Not true feedback provided

Sampling
Population: Entire Universe Sampling Unit: List of those elements that can be considered as Available for selection at some stage Sampling Frame: List of sampling units Sample: Actual selection for research Element: An individual item in the sample

Sampling Process
Define Population Specify sampling frame Choose appropriate sampling design
Non-probability Method Probability Method

Determine sample size Select actual members of sample

Probability Sampling
Simple Random sampling Systematic sampling Stratified sampling Cluster Sampling

Non-probability Sampling Method

Convenience:
100 stores in one location 50 students in a class One state in a country

Judgment: Researcher draws a sample that he thinks is the representation of the population Quota Sampling: Like Stratified sampling but the difference is that the selection of sample in the quota is not random (but judgment of researcher) the way it is with Stratified sampling

Questionnaire Design
Questionnaire Format
Structure: Open ended/ Close Ended

Disguise
Mostly non-disguised questionnaires are used. At times disguised questionnaires are designed in motivation research to handle sensitive issues like attitude, aids patience, abortion cases etc.

Method of Administration: Personal Interview Telephone Email

Steps involved in Design

Preliminary Decisions
What info can be obtained from secondary data Who is the Target Respondent

Type of Questionnaire &Method of Administration Question Content

Is the question really essential? Can respondent understand the question? Can respondent answer the question? Will respondent answer the question? Are there any ambiguities in question framing? Is there an implied answer/ alternative to the question Are there any assumptions to be made to answer the question? Will the respondent approach the question with the same frame of reference as that of the designer?

Question Phrasing

Steps involved in Design

Form of response to each question
Open ended/ Close ended?

Sequence of questions
Simple and open ended Logical sequence Design Branching question with care

Lay-out of questionnaire Pre-test Questionnaire

Constructing a Questionnaire
Refer Book 2, page 44

Avoid
Too long questionnaire Too long questions Using vocab unfamiliar to respondent Ambiguous words Combined questions

Qualitative Research
Exploratory or diagnostic in nature Small number of people; usually nonprobabilistic method of sampling Impressionistic rather than Definitive Used to generate hypothesis for further research Better insights into consumers Trained professionals required to carry research

Methods of Qualitative Research

In-depth Interviews Focus Group Discussions Projective Techniques
Word Association Test Sentence Completion Test Fantasy Situation Cartoon Completion Picture Interpretation

Observations

Data Procession
Editing of data
Field Editing
To be done as soon as the data is collected by field officer Standardization is the objective Care should be taken that data is not manipulated

Central Editing
To be done when all forms are collected and before they are sent to the HQ Standardization is the objective Editor may correct obvious mistakes (like entry in wrong field etc.) All incorrect and incomplete entries to be deleted Respondent/ field office may be contacted for clarification

Coding of Data
Generally close ended questionnaires are coded at the beginning; at the time of questionnaire design What is your monthly income?
Less than 5,000 5,001 10,000 10,001 20,000 20,001 40,000 More than 40,001

What is your monthly income?

Coding of Data
Book no. 3, page 19

Classification of Data
FINO Report

Report Writing
FINO Report

Thank You