Applied Marketing Research for

Marketing Decisions

• Sabari Gireesh
• July, 2020
MR Texts Used 2019-20
Editions
Main Text Auxiliary Text

2
Flow of Chapters
• Chapter 1 Introduction to MR
• Chapter 2 Defining the MR Problem & •
Developing an Approach
• Chapter 3 Research Design
• Chapter 4 Exploratory Research
• Design: Secondary and Syndicated Data•
• Chapter 5 Exploratory Research Design:
Qualitative Research
• Chapter 6 Descriptive Research Design:
Survey &Observation
• Chapter 7 Causal Research Design:
Experimentation
• Chapter 8 Measurement &Scaling:
• Fundamentals and Comparative Scaling
Chapter 9 Measurement & Scaling:
Non-Comparative Scaling Techniques
• Chapter 10 Questionnaire and Form
Design
Chapter 11 Sampling: Design&
Procedures
• Chapter 12 Sampling: Final &Initial
Sample Size Determination
• Chapter 13 Fieldwork
• Chapter 14 Data Preparation
• Chapter 23 Report Preparation &
Presentation
3
Redefining Marketing
Research (1 of2)

The American Marketing Association (AMA)redefined

Marketing R e s e a r c h as:

The function that links the consumer, the

customer, and public to the marketer through
INFORMATION

4
Redefining Marketing
Research (2 of2)
Used to identify and define
market opportunities and
problems

Generate, refine, and

Information evaluate marketing
performance

Monitor marketing
performance

Improve understanding of
marketing a s a process

5
Definition of Marketing
Research
Marketing r e s e a r c h is the systematic and objective
– identification
– collection
– analysis
– dissemination
– and use of information
For the purpose of improving decision making related to the
– identification and
– solution of problems and opportunities in marketing
6
Marketing
Research
• Specifies the information necessary to address these issues
• Manages and implements the data collection process
• Analyzes the results
• Communicates the findings and their implications
• Helps managers use this information to make decisions

7
 8

Marketing or Market Research?

• Marketing research: a process used by businesses to collect, analyze, and interpret
information used to make sound business decisions and successfully manage the
business
• Market research: a process used to define the size, location, and/or makeup of the
market for a product or service
Classification of Marketing
Research
Problem-Identification R e s e a r c h
• Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist or
are likely to arise in the future. Examples: market
potential, market share, image, market characteristics,
sales analysis, forecasting, and trends research.

Problem-Solving R e s e a r c h
• Research undertaken to help
solve specific marketing
problems. Examples:
segmentation, product, pricing,
promotion, and distribution
research.
9
AClassification of Marketing Research
Figure 1.1 AClassification of MarketingResearch

10
Problem-Solving
Research
Table 1.1 Problem-Solving Research
Determine basis of segmentation
Establish market potential and responsiveness for various segments
Select target markets and create lifestyle profiles, demography, media, and product image characteristics

Product Research Promotional Research

Test concept Optimal promotional budget
Optimal product design Sales promotion relationship
Package tests Optimal promotional mix
Product modification Copy decisions
Brand positioning and repositioning Media decisions
Test marketing Creative advertising testing
Control store tests Claim substantiation
Evaluation of advertising effectiveness
Pricing Research Distribution Research
Importance of price in brand selection Type of distribution
Pricing policies Attitudes of channel members
Product line pricing Intensity of wholesale and retail coverage
Price elasticity of demand Channel margins
Response to price changes Location of retail and wholesale outlets

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Marketing Research
Process (1 of 2)

Step 1 : Problem Definition

Step 2 : Development of an Approach to the Problem
Step 3 : Research Design Formulation
Step 4 : Fieldwork or Data Collection
Step 5 : Data Preparation and Analysis
Step 6 : Report Preparation and Presentation

12
Marketing Research
Process (2 of 2)

St ep 1: Defining the Problem

St ep 2: Developing a n Approach to the Problem

St ep 3: Formulating a R e s e a r c h Design

St ep 4: Doing Field Work or Collecting Data

St ep 5: Preparing a n d Analyzing Data

St e p 6: Preparing a n d Presenting the Report

13
The Role of Marketing
Research
Figure 1.2 The Role
of Marketing
Research

14
 15

History: Earliest Known Studies

• Charles Coolidge Parlin is known as the “father of marketing
research.”
• Parlin conducted the first continuous marketing research in the
early 1900s for the Curtis Publishing Company.
• The purpose of Parlin’s research was to increase advertising for
Saturday Evening Post magazine.
 16

Who Conducts Marketing Research? (1 of 2)

• Client-side research: organizations that supply their own marketing research
information.
• Internal suppliers: Formal departments or individuals conduct research internally.
• DYIresearch: facilitated by Internet, firms have access to secondary data, online
survey platforms and better knowledge of data analysis software such as SPSS.
 17

Who Conducts Marketing Research? (2 of 2)

• Supply-side research: External suppliers hired to fulfill a company’s marketing
research needs.
• Supplier or agency: firm specializing in marketing research that offers its services
to buyers needing information to make more informed decisions.
 18

Table 2.1 The Top 10 Global Marketing ResearchFirms

Rank Company Headquarters Website Employees Global Revenues

1 Nielsen Holdings New York Nielsen.com 43,000 $6,309,000,000

N.V.
2 Kantar London Kantar.com 30,000 $3,384,700,000

3 IQVIA Danbury, CT iqvia.com 27,000 $3,301,000,000

4 Ipsos SA Paris Ipsos.com 16,600 $1,962,000,000

5 GfK SE Nuremberg gfk.com 13,069 $1,677,000,000

6 IRI Chicago iriworldwide.com 5,032 $631,400,000

7 Westat Inc. Rockville, MD westat.com 1,921 $500,700,000

8 Wood MacKenzie Edinburgh woodmac.com 1,300 $582,500,000

9 Intage Group Tokyo intage.co.jp 2,431 $410,100,000

10 dunnhumby Hammersmith dunnhumby.com 3,124 $300,000,000

 19

Industry Structure
• Types of firms and their specialties
• Full-service supplier firms: have the capability to conduct
the entire marketing research project for buyer firms.
• Limited-service supplier firms: specialize in one or, at
most, a few marketing research activities.
Marketing Research Suppliers &
Services (1 of 2)
Figure 1.3 Marketing Research Suppliers and Services

20
 20

Table 2.2 Major Types of Marketing Research Services (1 of2)

Type Description Example Firms

Syndicated Analyze the trends and consumer behavior Nielsen, IRI, YouGov, Intage
Data Services within an industry and sell to many
companies
Packaged Services Use a proprietary process toconduct GfK, Video Research LTD,Burke, Inc.
a service such as test marketing or
measuring customer or employee
satisfaction
Online Provide client services associated with Comscore, Inc., Harris
Research measuring online consumer behavior and Interactive, Knowledge
Specialists measurement or online data Collection Networks, Toluna, FocusVision
Customized Services Provide services customized to individual All of the major firms can do this.
clients’ needs Some examples include Burke,
Inc., Kantar, Ipsos SA, Maritz
Industry or Market Specialize in a particular industry or IMS Health, Inc., Westat Inc., Latin
Segment Specialists a market segment Facts, Inc., Olson Research Group, Inc.,
Focus Latino
 21

Table 2.2 Major Types of Marketing Research Services (2 of2)

Technique Specialty
Type Description Example Firms
a. Qualitative Conduct research using methods such as focus Abt Associates, Gongos, Just the Facts
groups, interviews, and shopping with consumers
b. Mobile Research Conduct research using mobile devices such as iPads Kinesis Survey Technologies,
or smartphones Cint, P2Sample
c. Sampling Use different sampling methods to draw samples to SSI, uSamp, Research Now, Ipsos,NPD
suit client’s research objectives
d. Neuromarketing Observe brain activity as consumers are exposed Ipsos, Nielsen Consumer
to stimuli such as packages or ads Neuroscience, Sands
e. Market Segmentation Determine firms’ target markets, locate these ESRI, Nielsen Claritas
consumers, and determine other characteristics of
these consumers, such as media habits
f. Social Media Monitoring Monitor for relevant buzz over social media and Decooda, Conversition,Meltwater,
attach meaning for companies and their brands
g. Field Services Collect data using a variety of methods: Readex Research, I/H/R Research
telephone, online, person to person, mall Group, Focus Market Research,
intercept Irwin, Fieldwork, Schlesinger
Associates
h. Marketing Create and host marketing research online communities Decision Analyst, Psyma,My-
Research Online Take, incling
Communities
 22

The Market Research Proposal

• The marketing research proposal serves as the basis of a contract as it documents
what the marketing researcher proposes to deliver to the client for some
consideration, typically a fee.
• When a client first contacts a marketing research supplier to conduct research, the
client will generally request a proposal prior to agreeing to work with the firm in a
process called an invitation to bid (ITB) or request for proposal (RFP) .
Overview of Ethical Issues in
Marketing Research (1 of3)
Table 1.3 An Overview of Ethical Issues inMarketing
Research
I. Problem Definition
• Using surveys as a guise for selling or fundraising
• Personal agendas of the researcher or client
• Conducting unnecessary research
II. Developing an Approach
• Using findings and models developed for specific clients or projects for other projects
• Soliciting proposals to gain research expertise without pay

III. Research Design

• Formulating a research design more suited to the researcher’s rather than the client’s needs
• Using secondary data that are not applicable or have been gathered through questionable
means

24
Overview of Ethical Issues in
Marketing Research
[Table 1.3 Continued]
(2 of3)

III. Research Design [Continued]

• Disguising the purpose of theresearch
• Soliciting unfair concessions from the researcher
• Not maintaining anonymity of respondents
• Disrespecting privacy of respondents
• Misleading respondents
• Disguising observation of respondents
• Embarrassing or putting stress on respondents
• Using measurement scales of questionable reliability and validity
• Designing overly long questionnaires, overly sensitive questions, piggybacking
• Using inappropriate sampling procedures and sample size

IV. Fieldwork
• Increasing (dis)comfort level of respondents
• Following (un)acceptable fieldwork procedures

25
Overview of Ethical Issues in
Marketing Research
[Table 1.3 Continued]
(3 of3)

V.Data Preparation and Analysis

• Identifying and discarding unsatisfactoryrespondents

• Using statistical techniques when the underlying assumptions are violated
• Interpreting the results and making incorrect conclusions and recommendations
VI. Report Preparation and Presentation

• Incomplete reporting
• Biased reporting
• Inaccurate reporting

26
27
Flow of Chapters
• Chapter 1 Introduction to MR
• Chapter 2 Defining the MR Problem
& Developing an Approach
• Chapter 3 Research Design
• Chapter 4 Exploratory Research
Design: Secondary and Syndicated
Data
• Chapter 5 Exploratory Research
Design: Qualitative Research
• Chapter 6 Descriptive Research
Design: Survey &Observation
• Chapter 7 Causal Research Design:
Experimentation
• Chapter 8 Measurement &Scaling:
Fundamentals and Comparative
Scaling
• Chapter 9 Measurement & Scaling:
Non-Comparative Scaling Techniques
• Chapter 10 Questionnaire and Form
Design
• Chapter 11 Sampling: Design&
Procedures
• Chapter 12 Sampling: Final &Initial
Sample Size Determination
• Chapter 13 Fieldwork
• Chapter 14 Data Preparation
• Chapter 23 Report Preparation &
Presentation
28
The Problem Definition Process
Figure 2.1 The Process of
Defining the Problem and
Developing an Approach

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Tasks Involved in Problem
Definition
• Discussions with Decision Makers
• Interviews with Industry Experts
• Secondary Data Analysis
• Qualitative Research

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The Problem Audit
The problem audit is a comprehensive examination of a
marketing problem with the purpose of understanding
its origin and nature.
1. The events that led to the decision that action is needed, or the history of
the problem
2. The alternative courses of action available to the DM
3. The criteria that will be used to evaluate the alternative courses of action
4. The potential actions that are likely to be suggested based on the
research findings
5. The information that is needed to answer the DM's questions
6. The manner in which the DM will use each item of information in making
the decision
7. The corporate culture as it relates to decision making

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Factors to be Considered in the
Environmental Context of the Problem
Figure 2.2 Factors to Be
Considered in the
Environmental Context of
the Problem

32
Management Decision Problem
Vs.Marketing Research Problem
Table 2.1 Management Decision Problems Versusthe
Marketing Research Problem

Management Decision Problem Marketing Research Problem

Asks what the decision maker needs Asks what information is needed and
to do how it should be obtained

Action oriented Information oriented

Focuses on symptoms Focuses on the underlying causes

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Proper Definition of the ResearchProblem
Figure 2.3 Proper Definition of the Marketing Research
Problem

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Department Store Project
Problem Definition
In the department store project, the marketing
research problem is to determine the relative strengths
and weaknesses of Sears, vis-à-vis other major
competitors, with respect to factors that influence
store patronage. Specifically, research shouldprovide
information on the followingquestions.
1. What criteria do households use when selecting department stores?
2. How do households evaluate Sears and competing stores in terms of the choice
criteria identified in question 1?
3. Which stores are patronized when shopping for specific product categories?
4. What is the market share of Sears and its competitors for specific product
categories?
5. What is the demographic and psychological profile of the customers of Sears? Does
it differ from the profile of customers of competing stores?

35
Components of an
Approach
• Objective/Theoretical Foundations
• Analytical Model
• Research Questions
• Hypotheses
• Specification of the InformationNeeded

36
The Role of Theory in Applied
Marketing
Research
Research Task Role of Theory
1. Conceptualizing and Provides a conceptual foundation and understanding of the basic
identifying key processes underlying the problem situation. These processes will suggest
variables key dependent and independent variables.
2. Operationalizing key variables Theoretical constructs (variables) can suggest independent
and dependent variables naturally occurring in the real
world.
3. Selecting a research design Causal or associative relationships suggested by the theory may indicate
whether a causal or descriptive design should be adopted.
4. Selecting a sample The theoretical framework may be useful in defining the population and
suggesting variables for qualifying respondents, imposing quotas, or
stratifying the population (see Chapter 11).
5. Analyzing and The theoretical framework (and the models, research questions, and
interpreting data hypotheses based on it) guide the selection of a data analysis strategy and
the interpretation of results (see Chapter 14).

6. Integrating findings The findings obtained in the research project can be interpreted in
the light of previous research and integrated with the existing body
of knowledge.
37
Models
An analytical model is a set of variables and their interrelationships
designed to represent, in whole or in part, some real system or process.

In verbal models, the variables and their relationships are stated in

prose form. Such models may be mere restatements of the main tenets
of a theory.

38
Graphical Models
Graphical models are visual. They are used to isolate variables
and to suggest directions of relationships but are not designed to
provide numerical results.

Awareness

Understanding: Evaluation

Preference

Patronage

39
Mathematical Models
Mathematical models explicitly specify the relationships among
variables, usually in equation form.

y = a0 + å ai xi
i= 1

Where
y = degree of preference
a0, ai = model parameters to be estimated statistically

40
Development of Research
Questions and Hypotheses
Figure 2.4 Development of Research Questionsand
Hypotheses

41
Research Questions and
Hypotheses
• Research questions (RQs) are refined statements of the specific
components of the problem.
• Ahypothesis (H) is an unproven statement or proposition about a
factor or phenomenon that is of interest to the researcher. Often, a
hypothesis is a possible answer to the research question.

42
Department Store
Project (1 of 4)

• RQ: Do the customers of Sears exhibit store loyalty?

• H1: Customers who are store-loyal are less knowledgeable about the
shopping environment.
• H2: Store-loyal customers are more risk-averse than are non-loyal
customers.

43
Department Store
Project (2 of 4)

Specification of Information Needed

Component 1
• The researcher identified the following factors as part of the choice criteria: quality of
merchandise, variety and assortment of merchandise, returns and adjustment policy, service of
store personnel, prices, convenience of location, layout of store, credit and billing policies. The
respondents should be asked to rate the importance of each factor as it influences their store
selection.
Component 2
• The researcher identified nine department stores as competitors to Sears based on discussions
with management. The respondents should be asked to evaluate Sears and its nine competitors
on the eight choice criteria factors.

44
Department Store
Project (3 of 4)

Component 3
• 16 different product categories were selected, including women's dresses, women's sportswear,
lingerie and body fashion, junior merchandise, men's apparel, cosmetics, jewelry, shoes, sheets
and towels, furniture and bedding, and draperies. The respondents should be asked whether they
shop at each of the 10 stores for each of the 16 product categories.
Component 4
• No additional information needs to be obtained from the respondents.

45
Department Store
Project (4 of 4)
Component 5
• Information should be obtained on the standard demographic
characteristics and the psychographic characteristics of store loyalty,
credit use, appearance consciousness, and combining shopping with
eating.

46
47
48
Flow of Chapters
• Chapter 1 Introduction to MR
• Chapter 2 Defining the MR Problem & •
Developing an Approach
• Chapter 3 Research Design
• Chapter 4 Exploratory Research
• Design: Secondary and Syndicated Data•
• Chapter 5 Exploratory Research Design:
Qualitative Research
• Chapter 6 Descriptive Research Design:
Survey &Observation
• Chapter 7 Causal Research Design:
Experimentation
• Chapter 8 Measurement &Scaling:
• Fundamentals and Comparative Scaling
Chapter 9 Measurement & Scaling:
Non-Comparative Scaling Techniques
• Chapter 10 Questionnaire and Form
Design
Chapter 11 Sampling: Design&
Procedures
• Chapter 12 Sampling: Final &Initial
Sample Size Determination
• Chapter 13 Fieldwork
• Chapter 14 Data Preparation
• Chapter 23 Report Preparation &
Presentation
49
 50

Research Design
• Research design is a master plan specifying the methods for
collecting and analyzing the needed information.
 51

Why Is Research Design Important?

• Good research design is the “first rule of good research”.
• Knowledge of the needed research design allows advance
planning so that the project may be conducted in less time and
typically at a cost savings due to efficiencies gained in
preplanning.
 52

Objectives of ResearchDesign
• To gain background information and to develop hypotheses
• To measure the state of a variable of interest
• To test hypotheses that specify the relationships between two or more variables
Research Design:
Definition
• Aresearch design is a framework or blueprint for conducting the marketing
research project. It details the procedures necessary for obtaining the
information needed to structure or solve marketing research problems.

53
 Components of a
Research Design
• Define the information needed (Chapter 2)
• Design the exploratory, descriptive, and/or causal phases of
the research (Chapters 3 – 7)
• Specify the measurement and scaling procedures (Chapters 8
and 9)
• Construct and pretest a questionnaire (interviewing form) or
an appropriate form for data collection (Chapter 10)
• Specify the sampling process and sample size (Chapters 11 and
12)
• Develop a plan of data analysis (Chapter 14)

54
A Classification of Marketing
Research Designs
Figure 3.1 A Classification
of Marketing Research
Designs

55
 56

Three Types of Research Designs

• Exploratory
• Descriptive
• Causal
 57

Exploratory Research
• Exploratory research is unstructured, informal research
usually conducted at the outset of research projects.
• It is usually conducted when the researcher does not know
much about the problem.
 58

Descriptive Research
• Descriptive research is undertaken to describe answers to
questions of who, what, where, when, and how.
• It is undertaken to collect data to examine characteristics of
consumer and/or markets.
• It is desirable when we wish to project a study’s findings to a
larger population, if the study’s sample is representative.
 59

Causal Research
• Causality may be thought of as understanding a phenomenon
in terms of conditional statements of the form “If x, then y.”
• Causal relationships are often determined by the use of
experiments.
 60

Experiments
• An experiment is a type of study in which one or more independent variables are
manipulated to see how they affect a dependent variable, while also controlling the
effects of additional extraneous variables.
 61

Experimental Design (1 of 4)
• Experimental design is a procedure for devising an experimental setting such that a
change in a dependent variable may be attributed solely to the change in an
independent variable.
 62

A/BTesting
• Tests two alternatives (A/B) simultaneously to see which is
better.
• Commonly done as onlineexperimentation.
Exploratory & Conclusive
Research Differences
Table 3.1 Differences Between Exploratory and Conclusive
Research
Exploratory
Objective: To provide insights
and understanding
Characteristics: Information needed is defined only
loosely. Research process isflexible
and unstructured. Sample is small
and nonrepresentative. Analysis of
primary data isqualitative.
Findings/Results: Tentative
Outcome: Generally followed by further
exploratory or conclusiveresearch
Conclusive
To test specific hypotheses and
examine relationships
Information needed is clearly
defined. Research process is
formal and structured.Sample is
large and representative. Data
analysis is quantitative.
Conclusive
Findings used as inputinto
decision making
63
AComparison of Basic Research
Designs
Table 3.2AComparison of Basic Research Designs
Exploratory Descriptive Causal
Objective: Discovery of ideas Describe market characteristics Determine cause-and-effect
and insights or functions relationships
Characteristics: Flexible, versatile Marked by the prior formulation Manipulation of one
of specific hypotheses or more independent
variables
Often the front end of Preplanned and Measure the effect on
total research design structured design dependent
variable(s)
Control of other mediating
variables
Methods: Expert Secondary data: Experiments
surveys quantitative analysis
Pilot Sur
surveys vey
Case studies
s
Secondary data:
qualitative analysis Pan
Qualitative research els 64
Observation and other data
Uses of Exploratory Research

• Formulate a problem or define a problem more precisely

• Identify alternative courses of action
• Develop hypotheses
• Isolate key variables and relationships for further examination
• Gain insights for developing an approach to the problem
• Establish priorities for further research

65
Methods of Exploratory Research

• Survey of experts (discussed in Chapter 2)

• Pilot surveys (discussed in Chapter 2)
• Secondary data analyzed in a qualitative way (discussed in Chapter 4)
• Qualitative research (discussed in Chapter 5)

66
Use of Descriptive Research
• To describe the characteristics of relevant groups, such as consumers,
salespeople, organizations, or market areas
• To estimate the percentage of units in a specified population exhibiting a certain
behavior
• To determine the perceptions of product characteristics
• To determine the degree to which marketing variables are associated
• To make specific predictions

67
Methods of Descriptive
Research
• Secondary data analyzed in a quantitative, as opposed to a qualitative, manner
(discussed in Chapter 4)
• Surveys (Chapter 6)
• Panels (Chapters 4 and 6)
• Observational and other data (Chapter 6)

68
Cross-Sectional Designs
• Involve the collection of information from any given sample of
population elements only once.
• In single cross-sectional designs, there is only one sample of
respondents and information is obtained from this sample only
once.
• In multiple cross-sectional designs, there are two or more samples
of respondents, and information from each sample is obtained only
once. Often, information from different samples is obtained at
different times.
• Cohort analysis consists of a series of surveys conducted at
appropriate time intervals, where the cohort serves as the basic unit
of analysis. A cohort is a group of respondents who experience the
same event within the same time interval.

69
Consumption of Various Soft
Drinks by Various Age Cohorts
Percentage consuming on a typical day

Age 1950 1960 1969 1979

8-19 52.9 62.6 73.2 81.0
20-29 45.2 60.7 76.0 75.8 C8
30-39 33.9 46.6 67.7 71.4 C7
40-49 23.2 40.8 58.6 67.8 C6
50+ 18.1 28.8 50.0 51.9 C5
C1 C2 C3 C4
C1: cohort born prior to 1900 C5: cohort born 1931-40
C2: cohort born 1901-10 C6: cohort born 1940-49
C3: cohort born 1911-20 C7: cohort born 1950-59
C4: cohort born 1921-30 C8: cohort born 1960-69
70
Longitudinal Designs
• A fixed sample (or samples) of population elements is measured repeatedly on
the same variables
• Alongitudinal design differs from a cross-sectional design in that the sample or
samples remain the same over time

71
Cross-Sectional vs. Longitudinal
Cross- Sample
Sectional Surveyed
Design at T1

Sample Same Sample

Longitudinal
Surveyed at also Surveyed
Design T1 at T2

Time → T1 T2

72
Relative Advantages and
Disadvantages of Longitudinal
and Cross-Sectional Designs
Table 3.3 Relative Advantages and Disadvantages of Longitudinal and
Cross-Sectional Designs

Evaluation Criteria Cross-Sectional Design Longitudinal Design

Detecting change − +
Large amount of data collection − +
Accuracy − +
Representative sampling + −
Response bias + −

Note: A + indicates a relative advantage over the other design, whereas a − indicates a
relative disadvantage.

73
Cross-Sectional Data May Not
Show Change
Table 3.4 Cross-Sectional Data May NotShow Change

Time Period
Brand Purchased Period 1 Survey Period 2 Survey
Brand A 200 200
Brand B 300 300
Brand C 500 500
Total 1,000 1,000

74
Longitudinal Data May Show
Substantial Change
Table 3.5Longitudinal Data May Show Substantial Change

Brand Purchased in Brand Purchased in

Period 1 Period 2
Brand A Brand B Brand C Total
Brand A 100 50 50 200
Brand B 25 100 175 300
Brand C 75 150 275 500
Total 200 300 500 1,000

75
Uses of Causal Research
• To understand which variables are the cause (independent variables) and which
variables are the effect (dependent variables) of a phenomenon
• To determine the nature of the relationship between the causal variables and the
effect to be predicted
• METHOD: Experiments

76
Potential Sources of Error in Research Designs
Figure 3.2 Potential
Sources of Error in
Research Designs

77
Errors in Marketing
Research (1 of 2)

• The total error is the variation between the true mean value in
the population of the variable of interest and the observed
mean value obtained in the marketing research project.
• Random sampling error is the variation between the true
mean value for the population and the true mean value for the
original sample.
• Non-sampling errors can be attributed to sources other than
sampling, and they may be random or nonrandom: including
errors in problem definition, approach, scales, questionnaire
design, interviewing methods, and data preparation and
analysis. Non-sampling errors consist of non-response errors
and response errors.

78
Errors in Marketing
Research (2 of 2)

• Non-response error arises when some of the respondents included in the sample
do not respond.
• Response error arises when respondents give inaccurate answers or their
answers are misrecorded or misanalyzed.

79
80
Flow of Chapters
• Chapter 1 Introduction to MR
• Chapter 2 Defining the MR Problem & • Chapter 9 Measurement & Scaling:
Developing an Approach Non-Comparative Scaling Techniques
• Chapter 3 Research Design • Chapter 10 Questionnaire and Form
Design
• Chapter 4 Exploratory Research
• Design: Secondary and Syndicated Data • Chapter 11 Sampling: Design&
Procedures
• Chapter 5 Exploratory Research Design:
Qualitative Research • Chapter 12 Sampling: Final &Initial
Sample Size Determination
• Chapter 6 Descriptive Research Design:
Survey &Observation • Chapter 13 Fieldwork
• Chapter 7 Causal Research Design: • Chapter 14 Data Preparation
Experimentation • Chapter 23 Report Preparation &
• Chapter 8 Measurement &Scaling: Presentation
• Fundamentals and Comparative Scaling

81
Primary Vs. Secondary
Data
• Primary data are originated by a researcher for the specific
purpose of addressing the problem at hand. The collection of
primary data involves all six steps of the marketing research
process (Chapter 1).
• Secondary data are data that have already been collected for
purposes other than the problem at hand. These data can be
located quickly and inexpensively.

82
AComparison of Primary &
Secondary Data
Table 4.1 AComparison of Primary andSecondary Data
Primary Data Secondary Data
Collection purpose For the problem at hand For other problems
Collection process Very involved Rapid and easy
Collection cost High Relatively low
Collection time Long Short

83
Uses of Secondary Data
• Identify the problem
• Better define the problem
• Develop an approach to the problem
• Formulate an appropriate research design (for example, by identifying
the key variables)
• Answer certain research questions and test some hypotheses
• Interpret primary data more insightfully

84
Criteria for Evaluating Secondary
Data (1 of 3)

• Specifications: Methodology Used to Collect the Data

• Error: Accuracy of the Data
• Currency: When the Data Were Collected
• Objective(s): The Purpose for Which the Data Were Collected
• Nature: The Content of the Data
• Dependability: Overall, How Dependable Are the Data?

85
Criteria for Evaluating Secondary
Data (2 of 3)

Table 4.2 Criteria for Evaluating Secondary Data

Criteria Issues Remarks
Specifications/m Data collection Data should be reliable,
ethodology method Response valid, and generalizable
rate to the problem at hand.
Quality of data
Sampling
technique Sample
size Questionnaire
design Fieldwork
Data analysis
Error/accuracy Examine errors in: approach, Assess accuracy by
research design, sampling, comparing data from
data collection, data analysis, different sources.
reporting

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Criteria for Evaluating Secondary
Data (3 of 3)

[Table 4.2 Continued]

Criteria Issues Remarks
Currency Time lag between collection Census data are periodically
and publication updated by syndicated
Frequency of updates firms.
Objective Why were the data collected? The objective will determine
the relevance of the data.
Nature Definition of key Reconfigure the data to
variables Units of increase their usefulness, if
measurement possible.
Categories used
Relationships examined
Dependability Expertise, credibility, Data should be obtained from
reputation, and an original rather than an
trustworthiness of the acquired source.
source 87
Classification of Secondary Data
Figure 4.1 AClassification of Secondary Data

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Internal Secondary Data
Sales were analyzed to obtain:
• Sales by product line
• Sales by major department (e.g., men's wear, house wares)
• Sales by specific stores
• Sales by geographical region
• Sales by cash versus credit purchases
• Sales in specific time periods
• Sales by size of purchase
• Sales trends in many of these classifications were also examined

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Type of Individual/Household Level Data
Available from Syndicated Firms (1 of2)

• Demographic Data
• Identification (name, address, email, telephone)
• Sex
• Marital status
• Names of family members
• Age (including ages of family members)
• Income
• Occupation
• Number of children present
• Home ownership
• Length of residence
• Number and make of cars owned

90
Type of Individual/Household Level Data
Available from Syndicated Firms (2 of2)

• Psychographic Lifestyle Data

• Interest in golf
• Interest in snow skiing
• Interest in book reading
• Interest in running
• Interest in bicycling
• Interest in pets
• Interest in fishing
• Interest in electronics
• Interest in cable television
There are also firms such as Dun & Bradstreetand
American Business Information which collect
demographic data on businesses.
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Published External Secondary
Sources
Guides
• An excellent source of standard or recurring information
• Helpful in identifying other important sources of directories, trade
associations, and trade publications
• One of the first sources a researcher should consult
Directories
• Helpful for identifying individuals or organizations that collect specific data
• Examples: Consultants and Consulting Organizations Directory,
Encyclopedia of Associations, FINDEX:The Directory of Market Research
Reports, Studies and Surveys, and Research Services Directory
Indices
• Helpful in locating information on a particular topic in several different
publications

92
Classification of Computerized
Databases
• Bibliographic databases are composed of citations to articles
• Numeric databases contain numerical and statistical information
• Full-text databases contain the complete text of the source
documents comprising the database
• Directory databases provide information on individuals,
organizations, and services
• Special-purpose databases provide specializedinformation

93
Syndicated Services

• Syndicated services are companies that collect and sell common

pools of data of known commercial value designed to serve a number
of clients
• Syndicated sources can be classified based on the unit of
measurement (households/consumers or institutions)
• Household/consumer data may be obtained from surveys, diary
panels, or electronic scanner services
• Institutional data may be obtained from retailers, wholesalers, or
industrial firms

94
AClassification of Syndicated Services
Figure 4.2 AClassification of Syndicated Services

95
Overview of Syndicated
Services (1 of2)

Table 4.3 Overview of Syndicated Services

Type Characteristics Advantages Disadvantages Uses
Surveys Surveys conducted Most flexible way of Interviewer errors; Market
at regular obtaining data; respondent errors segmentation;
intervals information on advertising
underlying theme selection,
motives and advertising
effectiveness
Purchas Households provide Recorded purchase Lack of Forecasting sales,
e specific behavior can be representativeness; market share, and
panels information linked to the response bias; trends; establishing
regularly over an demographic/psyc maturation consumer profiles,
extended period of h ographic brandloyalty, and
time; respondents characteristics switching;
asked to record evaluating test
specific behaviors markets, advertising,
as they occur and distribution
Media Electronic devices Same as Same as purchase panel Establishing advertising
panels automatically purchase rates; selecting
recording panel media program or
behavior, air time;
supplemented by establishing viewer
a diary profiles
Scanner Household Data reflect actual Data may not be representative; Price tracking,
volum purchases purchases; timely errors in recording purchases; modeling;
96
e recorded through data; less difficult to link purchases to effectiveness of in-
trackin electronic expensive elements of marketing mix store promotion
g data scanners in other than price
supermarkets
Overview of Syndicated
Services
[Table 4.3 Continued]
(2 of2)

Type Characteristics Advantages Disadvantages Uses

Scanner Scanner panels of Data reflect actual Data may not be Promotional mix
panels households that purchases; sample representativ analyses; copy
with cable subscribe tocable control; ability to link e; quality of testing; new-
TV TV panel data to data limited product testing;
household positioning
characteristics
Audit services Verification of product Relatively precise Coverage may be Measurement of
movement by information at the incomplete; consumer sales and
examining physical retail and wholesale matching of data market share;
records or performing levels on competitive competitive
inventory analysis activity may be activity; analyzing
difficult distribution
patterns; tracking
of new products
Industrial Data banks on industrial Important source of Data are lacking in Determining market
product establishments information on terms of content, potential by
syndicate created through industrial firms; quantity, and geographic area;
d directinquiries of particularly useful in quality defining sales
services companies, clipping initial phases of the territories; allocating
services, and project advertising budget
corporate reports

97
Single-Source
Data
Single-source data provide integrated information on household
variables, including media consumption and purchases, and
marketing variables, such as product sales, price, advertising,
promotion, and in-store marketingeffort
• Recruit a test panel of households and meter each home's TVsets
• Survey households periodically on what theyread
• Grocery purchases are tracked byUPC scanners
• Track retail data, such as sales, advertising, and promotion

98
Ethics in Marketing
Research (1 of 3)

• The research firm has the ethical responsibility to use only secondary
data that are relevant and appropriate to the problem.
• In addition to evaluating their quality and completeness, researchers
should also evaluate secondary data in terms of moral
appropriateness.
• Data collection might be unethical if the data are generated without
the respondents’ knowledge or consent and if their use raises ethical
questions.

99
Ethics in Marketing
Research (2 of 3)

• When generating secondary data, researchers and syndicated firms

should not engage in any questionable or unethical practices, such as
abuse of respondents’privacy.
• After a detailed analysis of secondary data has been conducted, the
researcher should reexamine the collection of primary data stipulated
in the proposal to see if it is still appropriate.

100
Ethics in Marketing
Research (3 of 3)

• Respondents’ rights, particularly their privacy, are a salient issue.

Obtaining data from respondents without their full knowledge or
consent is an invasion ofprivacy.
• Researchers have the ethical responsibility to avoid both uninformed
and misinformed participation by respondents in market research
projects.
• Syndicated firms are playing a significant role in researching ethical
issues and sensitizing marketing firms, the marketing research
industry, and the general public about these concerns.

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