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Marketing Research 12th Edition Aaker Solutions Manual 1
Marketing Research 12th Edition Aaker Solutions Manual 1
PART II SECTION A
TEACHING NOTES FOR CHAPTERS
CHAPTER FIVE
Learning Objectives
Teaching Suggestions
In one important sense this chapter and the next one represent a transition, from the introductory planning
and design issues, to the specific activities of collecting and interpreting data. The objectives for this chapter
should be:
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a) Introduce students to the wealth of available data so they can see the necessity of beginning any research
study with the pursuit of readily available secondary data.
b) To understand how secondary data can be used to provide answers to marketing questions.
c) To introduce students to the NAICS system that has replaced the old SIC system.
Of course, these skills will be enhanced in subsequent chapters which discuss the collection of primary
data. Knowledge of the difficulties of collecting data in general will give a further appreciation of the
deficiencies of secondary data. In general, the rule for using secondary data should be: don’t ignore it, but
don’t rely on it completely.
In addition to the questions for discussion, some useful devices for achieving the objectives of this
chapter are to introduce the new North American Industry Classification System (NAICS) to the students,
highlight its benefits and to briefly refer to the problems of the old SIC system. A brief FAQ on the NAICS
is provided in the next page for instructor’s review. Using the team projects as a vehicle to familiarize students
with the new NAIC system, instructors could provide the Web addresses under the “Resources to Students”
section of the FAQ and set them the goal of obtaining information about the differences between the SIC and
NAIC systems. The project and subsequent discussions should focus on the benefits provided by the new
system when compared to the old. Providing the Web addresses from the FAQ to the students helps them to
easily identify sources of secondary data. This works well as the student teams are usually just beginning this
stage.
Of particular importance is Figure 5-1, which is an excellent resource for understanding the process of
secondary data collection. It is also important to understand the importance, benefits, sources, and
applications of secondary data research. In light of the current advances in technology applications in the
area of marketing research, the need for discussing computer retrievable databases becomes important. The
instructor may also wish to discuss census data (Figure 5-3 explains the geographic subdivisions of a MSA)
Since the SIC information replaced by the NAICS data in this edition of the text book, instructors may
want to focus their discussions more on the coding structure, applications, and benefits of the new NAICS
rather than the old SIC system. However, in order that the students appreciate the true benefits of the NAICS,
the instructor may still want to discuss the problems of the SIC system and highlight how NAICS solves the
same. As part of the class preparations, it is recommended that the instructors visit the Web sites provided in
the FAQ and identify a couple of examples that highlight the problems of the SIC system and the solutions
provided by the NAIC system. The instructor may quote the weaknesses mentioned below and compare it
with the NAICS.
The instructor may want to spend quite a bit of time on the strengths and weaknesses of SIC data. Some
of the more obvious weaknesses stem from the fact that establishments are allocated to 4, 5, 6 or 7 digit
categories based on their major activity or primary product. This rule creates problems when, as is often the
case, an establishment has multiple activities or products. Further, the most readily available data is at the 4-
digit level which encompasses some very broad industry categories, i.e., SIC 3312 is blast furnaces, steel
works, and rolling mills. Other problems are the slowness of the revisions to categories, the delays in
reporting and the reliance on supply factors for defining the categories. Usually a market defined according
to similarity of supply is smaller than one that encompasses all the ways a customer can satisfy a need.
The North American Industry Classification System (NAICS) has now officially replaced the U.S.
Standard Industrial Classification (SIC) system. The NAICS provides a consistent system for economic
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analysis across the three North American Free Trade Agreement partners – Canada, Mexico and the United
States.
The system was developed by the U.S., Canada, and Mexico to provide comparable statistics across the
three countries. For the first time, government and business analysts will be able to compare directly
industrial production statistics collected and published in the three North American Free Trade Agreement
countries. NAICS also provides for increased comparability with the International Standard Industrial
Classification System (ISIC, Revision 3), developed and maintained by the United Nations.
The 2002 edition includes substantial changes in the construction and wholesale trade classifications,
and modifies a number of retail classifications. NAICS also reflects, in a much more explicit way, the
enormous changes in technology and in the growth and diversification of services that have marked recent
decades.
A key feature of NAICS is the revisions for the Information sector. A few of the new and important
industries created in this section include: Internet service providers and Web search portals, and Internet
publishing and broadcasting. Also included in the Information sector is electronic shopping and electronic
auctions.
NAICS provides a consistent framework for the collection, analysis and dissemination of industrial
statistics used by:
NAICS will be reviewed every 5 years so that classifications and information keep up with the changing
economy.
NAICS FAQ
The Standard Industrial Classification (SIC) system is a series of number codes that attempts to classify
all business establishments by the types of products or services they make available. Establishments engaged
in the same activity, whatever their size or type of ownership, are assigned the same SIC code. These
definitions are important for standardization.
The SIC codes were developed to facilitate the collection, tabulation, and analysis of data and to promote
comparability in statistical analyses.
Beginning in 1997, the SIC will be replaced by the North American Industry Classification System
(NAICS). This six digit code is a major revision that not only provides for newer industries, but also
reorganizes the categories on a production/process-oriented basis (SIC used a mixture of production-based
and market-based categories).
The new NAICS system was developed jointly by the U.S. Census Bureau in cooperation with the
U. S. Economic Classification Policy Committee, Statistics Canada and Mexico's Institutio Nacional de
Estadistica, Geografia e Informatics. This new, uniform, industry-wide classification system has been
designed as the index for statistical reporting of all economic activities of the U.S., Canada, and Mexico.
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Q.4 - What are the features of NAICS?
Although the purpose behind the creation of the NAICS classification system is specifically for
governmental regulations and census reports, this system can be implemented in any business to classify
customers and enable users to gain a clear perspective on target markets. This is one of the most common
uses of the NAICS and SIC in the general market.
For example, if your business sold equipment specific to dry cleaners it would be valuable to have
a list of all the dry cleaners locally or nationally. To do this, you would look up the NAICS code specific to
dry cleaners in a NAICS database (such as the NAICS to SIC InfoBase), then using a business database (such
as PhoneDisc) you would get a list of all companies based on that code.
Whether it's statistical analysis, market research, or sales leads NAICS and SIC codes provide a
valuable tool to get the information needed to succeed.
The following are just a few examples of who uses the NAICS:
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• Economists.
• Planners.
• Statisticians.
• Database producers for searching by industry.
• Many others.
Q.9 – Is there any free version of the NAICS to SIC cross- reference tables?
Resources to Students:
http://www.census.gov/epcd/www/naics.html
http://www.census.gov/epcd/www/naicstab.htm
http://www.naics.com/
http://naics-codes-to-sic-codes.com/downloads/
http://www.naics.com/files/naic2sic.htm
http://store.yahoo.com/naics/
http://www.siccode.com
http://www.sba.gov/size/SIC2NAICSmain.html
http://listsareus.com/business-sic-codes-u.htm
http://www.sic-naics-codes.com/
The instructor may also wish to discuss to sources of secondary data in international marketing research.
The problems encountered in secondary data collection in the international context, data comparability, and
applications are areas that could be discussed in this section.
1. A variety of useful secondary data is available to someone deciding where to locate a store to sell
personal computers and software. From studies by manufacturers and distributors, it should be possible
to determine the trading area and the profile of the target market (this will depend on some extent on
whether the store is selling primarily to large commercial users). The next step is to identify and locate
the potential competitors in the broad geographic area. Here the Yellow Pages can be very helpful. As
this is a rapidly changing field new entrants will also need to be identified. Supplier salespeople are a
good source. The location should be as far away from competitors as possible and convenient to large
concentrations of buyers. The latter assessment can be aided with Census data on manufacturing and
service establishments in census enumeration areas, coupled with a directory of local businesses. A
service like PRISM could be used to identify zip code areas with reasonable concentrations of customers
in the target category.
While the logic is the same when locating a convenience copying center, the analysis should take into
account the difference in shopping behavior - and especially the need to build repeat business by catering
to a few users groups or businesses. The profile of the target markets will be different, for example, small
businesses and universities and colleges are attractive markets. It should also be desirable to have data
on traffic, density and movement which could be provided by the local planning authority or urban transit
agency.
2. The first question is, what kinds of secondary data should be available for the market area of each
proposed location? Because of the split in the type of patrons, relevant data for the area would include:
5
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random and unrelated content:
Goddess, reclimb thy heaven, and be once more
An inaccessible splendor to adore,
A faith, a hope of such transcendent worth
As bred ennobling discontent with earth;
Give back the longing, back the elated mood
That, fed with thee, spurned every meaner good;
Give even the spur of impotent despair
That, without hope, still bade aspire and dare;
Give back the need to worship that still pours
Down to the soul that virtue it adores!
A BRETON LEGEND.
ARCADIA REDIVIVA.
THE NEST.
MAY.
When oaken woods with buds are pink,
And new-come birds each morning sing,
When fickle May on Summer’s brink
Pauses, and knows not which to fling,
Whether fresh bud and bloom again,
Or hoar-frost silvering hill and plain,
PALINODE.—DECEMBER.
Like some lorn abbey now, the wood
Stands roofless in the bitter air;
In ruins on its floor is strewed
The carven foliage quaint and rare,
And homeless winds complain along
The columned choir once thrilled with song.
IMPRESSIONS OF HOMER.
S come pauses of calm, when the rapt bard, holding his heart
back,
Over his deep mind muses, as when o’er awestricken ocean
Poises a heapt cloud luridly, ripening the gale and the thunder;
Slow rolls onward the verse with a long swell heaving and swinging,
Seeming to wait till, gradually wid’ning from far-off horizons,
Piling the deeps up, heaping the glad-hearted surges before it,
Gathers the thought as a strong wind darkening and cresting the tumult.
Then every pause, every heave, each trough in the waves, has its
meaning;
Full-sailed, forth like a tall ship steadies the theme, and around it,
Leaping beside it in glad strength, running in wild glee beyond it,
Harmonies billow exulting and floating the soul where it lists them,
Swaying the listener’s fantasy hither and thither like driftweed.
BIRTHDAY VERSES.
ESTRANGEMENT.
T path from me to you that led,
Untrodden long, with grass is grown,—
Mute carpet that his lieges spread
Before the Prince Oblivion
When he goes visiting the dead.
PHŒBE.
DAS EWIG-WEIBLICHE.
THE RECALL.
C back before the birds are flown,
Before the leaves desert the tree,
And, through the lonely alleys blown,
Whisper their vain regrets to me
Who drive before a blast more rude,
The plaything of my gusty mood,
In vain pursuing and pursued!
ABSENCE.
MONNA LISA.
S gave me all that woman can,
Nor her soul’s nunnery forego,
A confidence that man to man
Without remorse can never show.
THE OPTIMIST.
Turbid from London’s noise and smoke,
Here I find air and quiet too:
Air filtered through the beech and oak,
Quiet by nothing harsher broke
Than wood-dove’s meditative coo.
M , August, 1884.
THE PROTEST.
THE PETITION.
FACT OR FANCY?
I town I hear, scarce wakened yet,
My neighbor’s clock behind the wall
Record the day’s increasing debt,
And Cuckoo! Cuckoo! faintly call.
RECUERDO DE MADRID.
S por la puerta
Voy de su casa desierta
Do siempre feliz entré,
Y la encuentro en vano abierta
Cual la boca de una muerta
Despues que el alma se fué.
A CHRISTMAS CAROL.
MY PORTRAIT GALLERY.
O round my hall of portraiture I gaze,
By Memory reared, the artist wise and holy,
From stainless quarries of deep-buried days.
There, as I muse in soothing melancholy,
Your faces glow in more than mortal youth,
Companions of my prime, now vanished wholly,
The loud, impetuous boy, the low-voiced maiden.
Ah, never master that drew mortal breath
Can match thy portraits, just and generous Death,
Whose brush with sweet regretful tints is laden!
Thou paintest that which struggled here below
Half understood, or understood for woe,
And with a sweet forewarning
Mak’st round the sacred front an aureole glow
Woven of that light that rose on Easter morning.
PAOLO TO FRANCESCA.
SONNET.
Scottish Border.
A sinks the sun behind yon alien hills
Whose heather-purpled slopes, in glory rolled,
Flush all my thought with momentary gold,
What pang of vague regret my fancy thrills?
Here ’tis enchanted ground the peasant tills,
Where the shy ballad dared its blooms unfold,
And memory’s glamour makes new sights seem old,
As when our life some vanished dream fulfils.
Yet not to thee belong these painless tears,
Land loved ere seen: before my darkened eyes,
From far beyond the waters and the years,
Horizons mute that wait their poet rise;
The stream before me fades and disappears,
And in the Charles the western splendor dies.
SONNET.
THE MAPLE.
NIGHTWATCHES.
W the slow clock, as they were miser’s gold,
Counts and recounts the mornward steps of Time,
The darkness thrills with conscience of each crime
By Death committed, daily grown more bold.
Once more the list of all my wrongs is told,
And ghostly hands stretch to me from my prime
Helpless farewells, as from an alien clime;
For each new loss redoubles all the old.
This morn ’twas May; the blossoms were astir
With southern wind; but now the boughs are bent
With snow instead of birds, and all things freeze.
How much of all my past is dumb with her,
And of my future, too, for with her went
Half of that world I ever cared to please!
PRISON OF CERVANTES.
S of all woes! Though Nature’s firm decree
The narrowing soul with narrowing dungeon bind,
Yet was his free of motion as the wind,
And held both worlds, of spirit and sense, in fee.
In charmed communion with his dual mind
He wandered Spain, himself both knight and hind,
Redressing wrongs he knew must ever be.
His humor wise could see life’s long deceit,
Man’s baffled aims, nor therefore both despise;
His knightly nature could ill fortune greet
Like an old friend. Whose ever such kind eyes
That pierced so deep, such scope, save his whose feet
By Avon ceased ’neath the same April’s skies?
PESSIMOPTIMISM.
THE BRAKES.
W countless years and wealth of brain were spent
To bring us hither from our caves and huts,
And trace through pathless wilds the deep-worn ruts
Of faith and habit, by whose deep indent
Prudence may guide if genius be not lent,—
Genius, not always happy when it shuts
Its ears against the plodder’s ifs and buts,
Hoping in one rash leap to snatch the event.
The coursers of the sun, whose hoofs of flame
Consume morn’s misty threshold, are exact
As bankers' clerks, and all this star-poised frame,
One swerve allowed, were with convulsion rackt;
This world were doomed, should Dulness fail, to tame
Wit’s feathered heels in the stern stocks of fact.
A FOREBODING.