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MARKETING RESEARCH AND

MARKETING INFORMATION SYSTEMS
• Marketing Information
Systems (MkIS)
• Primary vs. secondary
data
– Advantages and
disadvantages of each

• Marketing research
tools

BUAD 307

MARKETING RESEARCH

Lars Perner, Instructor

1

Learning Objectives
• Appreciate the costs and benefits of
research
• Appreciate the uses of both primary
and secondary market research
• Appreciate the respective advantages
and disadvantages of different primary
research methods
• Develop an understanding of research
method problems that can lead to
misleading or incorrect conclusions.
• Understand the proper sequence of
research activities.
BUAD 307

MARKETING RESEARCH

Lars Perner, Instructor

2

Marketing Research
• An “investment” to
reduce uncertainty
• Can help guide
decisions on



BUAD 307

Whether to enter
Product characteristics
Promotional strategy
Positioning

• Must weigh costs and
benefits of research
– Money
– Time spent

• No perfect method—
tradeoffs between
methods

MARKETING RESEARCH

Lars Perner, Instructor

3

Marketing Information Systems
(MkIS)
• Set of procedures and
methods for regular collection
and analysis of information for
marketing decisions
– Databases (internal information
—e.g., sales volumes)
– Market research
• Primary
• Secondary
BUAD 307

MARKETING RESEARCH

Lars Perner, Instructor

4

Instructor 5 ..g. – Items frequently purchased together  “strategic adjacencies” (items placed together in retail setting) – Seasonal patterns in sales – Customer segments BUAD 307 MARKETING RESEARCH Lars Perner.Data Mining • Processing of vast amounts of data to find relationships between variables—e.

. Instructor 6 . sales/order records – External • Government • Consulting firms • Newspaper and magazine articles • Primary: creation of specific studies to answer specific questions BUAD 307 MARKETING RESEARCH Lars Perner.g.Two Research Methods • Secondary: use of existing research already done – Internal • Information System content—e.

p. 169 Lars Perner. Instructor 7 .Market Research Sequence Identify problem or opportunity Plan research design and collect data Analyze data Report and present results BUAD 307 MARKETING RESEARCH Collect data Text.

Primary Research Methods • • • • • • • • • • BUAD 307 Surveys Experimentation Observation Focus groups In-depth interviews Projective techniques Physiological Measures Online research Scanner data Hybrid Methods MARKETING RESEARCH Lars Perner. Instructor 8 .

Instructor 9 .Primary Research Methods • Exploratory Methods – Observation (can be more definitive with larger sample sizes and focus on specific behavior) – In-depth interviews – Focus groups – Projective techniques BUAD 307 • Precision Methods (“Conclusive”) – – – – MARKETING RESEARCH Experiments Surveys Panel Scanner data Lars Perner.

Instructor 10 .Surveys • Forms – Mail (self-administered. single time) – Mail panel (self-administered. multiple surveys administered over time) – Telephone (from central location) – Mall Intercept – Computer/Internet • Planned questions SURVEY COSTS: USUALLY LOW – Open-ended – Closed-ended • Need large sample sizes for precise conclusions BUAD 307 MARKETING RESEARCH Lars Perner.

. how fast and reliable are Microsoft programs?” • Leading questions—giving the feeling of the “desired” response – “Do you agree that soft drinks with sugar are bad for you?” • Non-exhaustive question • Non-mutually exclusive answers BUAD 307 MARKETING RESEARCH Lars Perner. “On a scale from 1 to 10.Characteristics of Some Problematic Questions • Difficult to answer—respondent may not have knowledge needed – Amounts spent annually on specific product categories may not be known • Sensitive (embarrassing) • Two in one—e. Instructor 11 .g.

agreement or product usage) tend to be more effective than binary “Yes/No” questions • E.Continuum Questions • Questions rating the degree of a characteristic (e.. 5 Strongly Agree BUAD 307 4 Agree 3 Neither Agree Nor Disagree MARKETING RESEARCH 2 Disagree 1 Strongly Disagree Lars Perner.g. Instructor 12 ..g.

Some Areas Suited for Continuum Ratings • Interest • Purchase likelihood • Satisfaction/ Dissatisfaction • Brand loyalty • Price sensitivity • Knowledge • Experience BUAD 307 • Involvement • Decision control • Frequency or level of use • Awareness • Information search • Personality traits • Variety seeking MARKETING RESEARCH Lars Perner. Instructor 13 .

The Pentagon Declares War on Rush Limbaugh: Misleading Research • Survey found that only 4.” • How could a survey be made to get these results? • Being on the watch for misleading surveys. Instructor 14 . BUAD 307 MARKETING RESEARCH Lars Perner.8% of listeners to the Armed Forces Radio Network wanted to listen to “the biggest hawk there is.

“target” product is given better shelf space – E..g.. for some. some get coupon • Can help isolate causes • Subject is not biased by questions—does not know how others are treated EXPERIMENT COSTS: HIGH BUAD 307 MARKETING RESEARCH Lars Perner.g. Instructor 15 .Experimentation • Subjects in different groups treated differently – E.

Instructor 16 .My Simulated Store… A shopper in the everyday low price condition… BUAD 307 MARKETING RESEARCH Lars Perner.

Instructor 17 . These shopping lists differ only on one item.Ash’s Instant Coffee Study GROCERY SHOPPING LIST Ground beef Potatoes Apples Flour Sugar Laundry detergent Instant coffee 6 cups of yogurt Paper towels Bananas BUAD 307 GROCERY SHOPPING LIST Ground beef Potatoes Apples Flour Sugar Laundry detergent Ground coffee 6 cups of yogurt Paper towels Bananas MARKETING RESEARCH Respondents were asked to describe their impressions of a housewife based only on her shopping list. Lars Perner.

• E..Definition • Confound: The tendency of some phenomenon to be caused at least in part by some variable other than the one of interest. does having more toys cause children to be more intelligent? BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 18 .g.

and what is coincidence? • Correlation is not necessarily cause • “Lurking” factors may be real cause of – Does sitting in front of the room cause higher grades? – Do vaccinations cause autism? – Does Prozac cause suicide? – Do fish-heavy diets cause stomach cancer? – Does fraternity/sorority membership cause higher grades? BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 19 . what is effect.Confounds • What is cause.

. – Searching for product category area – Number of products inspected and time spent on each – Apparent scrutiny of labels or other information – Involvement of others – Behavior under limiting circumstances (e.g.Observation • Looking at consumes in the field— e..g. time constraints) OBSERVATION COSTS: LOW TO HIGH (DEPENDING ON CODING AND ANALYSIS NEEDED) BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 20 .

one new.Taste Tests • Not experiments unless – Two or more groups of people are treated differently (e. and one duplicate of either old or new – Asked to identify the one that is different and explain why BUAD 307 MARKETING RESEARCH Lars Perner. get different food version) or – The same person is being treated differently at separate times (e. then current.g. Instructor 21 ..g. half the participants receive in the opposite order) • “Triangle” Measure – Each respondent is given three items: One current. half the participants receive new formulation..

h c approa as n e s o h c NOT be rch a e s e r t l 22 defau method! Lars Perner. Instructor .Focus Groups • Groups of 8-12 consumers assembled • Start out talking generally about context of product • Gradually “focus” in on actual product MOST APPROPRIATE AS EARLY STAGE METHOD BUAD 307 FOCUS GROUP COSTS: HIGH (ESPECIALLY FOR THE AMOUNT OF INFORMATION COLLECTED) MARKETING RESEARCH best e h t T O Usually N ould h S .

Instructor 23 . it is difficult to generalize much from focus groups BUAD 307 MARKETING RESEARCH Lars Perner.REMINDER • Focus groups are most useful for identifying issues that should be studied in more detail with more precise methods • Due to the small sample size and social influence on individual responses.

In-depth interviews • Structured vs. Instructor 24 . unstructured interviews • Generalizing to other consumers • Biases – Subtle. inadvertent feedback IN-DEPTH INTERVIEW COSTS: HIGH BUAD 307 MARKETING RESEARCH Lars Perner.

Projective Techniques • Getting at motivations that may not be consciously known— “Tell a story about this picture. or do PROJECTIVE METHODS COSTS: USUALLY HIGH IF PERSONAL INTERVIEWS OR EXTENSIVEINTERPRETATION IS NEEDED BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 25 .” • Measurement of attitudes consumers are unwilling to express – It is easier to admit something embarrassing about someone else • Consumer discusses what other consumer might think. feel.

” BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 26 .Projective Examples “Please tell me a story of what is going on in this picture.

BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 27 .

BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 28 .

BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 29 .

More Projective Examples BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 30 .

Instructor 31 .Projective Techniques--Examples BUAD 307 MARKETING RESEARCH Lars Perner.

involvement – Heart rate – Skin conductivity – Brain waves • State of mind • Attention PHYSIOLOGICAL METHODS COSTS: HIGH BUAD 307 MARKETING RESEARCH Lars Perner.Physiological Measures • Consumer bodily responses are watched at various phases of advertisement or other marketing exposure • Tracking of – Eye movements • For areas of focus • For attention. Instructor 32 .

Online Research—Analysis of Customer Search Queries • Unmet demand— search for product not found on site • Message comprehension— comparison of search terms to media message • Consumer vocabulary • Feedback analysis ONLINE SURVEY COSTS: USUALLY LOW BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 33 .

Online Surveys • Conditional branching—direct skip to relevant question • Quality of response – Time pressures – Willingness to write out answers or respond to multiple closed-ended questions – Willingness to read and follow instructions is limited • Reliability and browser compatibility issues BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 34 .

BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 35 .

Instructor 36 .g. • Conditional branching: Respondent will be taken to the appropriate question according to answer • Customization of questions – E. please skip to Question 11.. consumer lists three brands  subsequent questions ask about these specific brands by name BUAD 307 MARKETING RESEARCH Lars Perner.Conditional Branching • Traditional surveys: Have you bought a new car during the last six months? If not.

Instructor 37 . LOW VARIABLE COSTS POSSIBLE WITH DEVELOPED ALGORITHMS USUALLY LOW BUAD 307 MARKETING RESEARCH Lars Perner. LOW VARIABLE COSTS POSSIBLE WITH DEVELOPED ALGORITHMS USUALLY LOW • Shopping cart analysis COSTS: HIGH START-UP COSTS.Other Online Tools • “Click Stream Analysis:” Analysis of “clicking” path— how does the consumer get to a desired page or product? COSTS: HIGH START-UP COSTS.

Searching for Reports of Personal Experience • Sources – Blogs (blogsearch.g. Google image search) – Video (e.google. enjoyment Decisions Anxiety Social setting and influence • Cautions – May be “staged” or sensationalized – May represent what the writer or photographer wants to show – May be limited entries on certain “mundane” tasks such as dishwashing BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 38 .g.. Flickr.com) – Photos (e. Picasaweb. Youtube) • Some issues – – – – Joy. Webshots..

Instructor 39 . do respondents respond in desired proportions? • Willingness of participants to follow instructions • Timing of survey participation requests • Panel recruitment • Privacy BUAD 307 MARKETING RESEARCH Lars Perner.Online Market Research Concerns • Representativeness of – Population—are relevant groups reached in desired proportions? – Sample—even if the desired population is reached.

Scanner Data • Panel members in test communities agree to – Swipe a card prior to each purchase – Have purchases matched to • • • • Demographic profiles Media/coupon exposure Promotional status of competing brands Past purchases • Problems: – Aggregation over household – Aggregation bias--averages of disparate segments obscure! – Only available for grocery and some drugstore products BUAD 307 MARKETING RESEARCH COSTS: HIGH START-UP COSTS. Instructor 40 . LOW VARIABLE COSTS POSSIBLE WITH DEVELOPED ALGORITHMS USUALLY LOW Lars Perner.

no Coupon available: Yes. no Amount of coupon ANALYSIS MARKETING RESEARCH Lars Perner.Scanner Data Research No. Instructor 41 . of ads seen by shopper Ads seen for competing brands “Split cable” RECORDED PURCHASES TELEVISION EXPOSURE DEMOGRAPHIC INFORMATION Family size Occupation Family size Income BUAD 307 Home ownership HOUSEHOLD FILE Purchase on occasion: Yes. no Coupon available for other brands? Yes. no Time since previous purchase Previous purchases Current price Previous price Current promotional status Previous promotional status Current display status Previous display status Display status of competing brands Promotional status of competing brands Coupon used: Yes.

. Instructor 42 .Hybrid Studies • Some studies do not fall neatly into one category or may consist of a combination – E.g. a series of questionnaires in which respondents are given different information/ presentations becomes an experiment BUAD 307 MARKETING RESEARCH Lars Perner.

..Research Sequencing • More than one research method may be needed • Exploratory studies—e. Instructor 43 . need to know both attitude toward brand (questionnaire) and brand switching propensity (scanner data) • Follow-up: One study is needed to address issues raised in a previous one BUAD 307 MARKETING RESEARCH Lars Perner.g. • “Parallel:” Studies can be done at the same time if needed – E. focus groups—should be done BEFORE precision approaches such as surveys.g.

Instructor 44 . focus groups) should be used first – E. more general methods (e. less flexible methods – E.g. identify issues of concern • Subsequent studies can use more precise.. scanner data. or experiments to follow up on issues raised in early focus group BUAD 307 MARKETING RESEARCH Lars Perner..Follow-Up Studies • Normally.. physiological measures. questionnaire.g.g.

BUAD 307 MARKETING RESEARCH Lars Perner. Instructor 45 . they should usually be used EARLY in the research process— NOT after more precise methods are used.REMINDER • If focus groups should be used at all.