M303 Exam 1 Review PDF

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M303 Exam 1

M303 Exam 1 Study Guide ● Marketing Research ○ Process of understanding the customer ○ Encompasses the systematic methods of obtaining high-quality information that is useful for decision-making ○ Benefits: Avoid costly mistakes & identify unmet customer needs & desires

● Fundamental Research ○ Broad scope, abstract, aims to extend the boundaries of knowledge in order to discover general truths about the world ○ Ex: how does the number of options influence purchase likelihood? ● Applied Research ○ Narrow scope, concrete, aims to gather information

to solve a specific problem or set of problems ○ Should Smuckers offer more flavors? ● Exploratory ○ Starting point: explore market, identify trends (ex: is there a market for customized wine?) ○ Develop initial hunches/insights & provide direction for further research

○ Pilot study: can usually be implemented by using: ● Marketing Research ○ Process of understanding the customer ○ Encompasses the systematic methods of obtaining high-quality information that is useful for decision-making ○ Benefits: Avoid costly mistakes & identify unmet customer needs & desires ● Market Research priv  Subset of marketing research, apply to a specific market area  Used to define the size, location makeup of the market for a p/s ● Ethical Consideration  Sugging: selling under the guise of research  Curbstoning: interviewers make up survey results  Frugging: fundraising under research  Unethical clients: clients ask for proposals and examples to learn how to complete the research themselves  Unethical respondents: lie to earn money ● Fundamental Research ○ Broad scope, abstract, aims to extend the boundaries of knowledge in order to discover general truths about the world ○ Ex: how does the number of options influence purchase likelihood? ● Applied Research ○ Narrow scope, concrete, aims to gather information to solve a specific problem or set of problems ○ Should Smuckers offer more flavors? ●The Scientific Methods - Purposiveness: Start research with definite aim our purpose - Rigor: Collect the right info from appropriate sample with minimum bias and appropriate analysis - Testability - Replicability: able to reflect the true situation in the population - Precision - Confidence: the likelihood of correct estimation - Objectivity: Results are based on the facts of the findings derived from actual data - Generalizability: apply to multiple setting - Parsimony: simplicity in explaining problems and in generating solutions. ●Backward Market Research 1. Determine how the research results will be implemented. This will help define the problem. Step 1 is the most important.)

2. Determine what the final report will contain a) Introduction b) State Management Decision Problem (MDP) and Marketing Research Problem (MRP) c) State recommended client actions d) Secondary research e) Observational research results–Some type of qualitative research f) Survey 3. Specify the analyses 4. Determine the kind of data 5. Scan the available secondary sources 6. Collect data needed 7. Carry out the field work 8. Do the analysis, write the report ● Stage of Market Research 1. Define business problem and market opportunity.  Problem > Solution  Market Condition, Competitive environment, product/service, Brand  4Ps, Sales experience, Support 

Growth Strategy?  Marketing Penetration: increase sales of existing products and services to existing customer (Target competitor, Improve shop 

frequency, Encourage purchase additional p/s) Market Development: existing product to new customer

 

Product/Service Development Diversification

2. Research Question  What info is needed to fulfill the research purpose  Translate management’s purpose into specific questions  MDP: decision problem--- manager    

Action oriented Decision- making Focus on symptoms

MRD: Research problem ---researchers  Information oriented  Underlying causes

3. Secondary Research ● Secondary Data ○ Data gathered by someone else for a separate purpose ○ Cheaper to obtain than primary data ○ Examination of secondary data is generally a prerequisite to the collection

of primary data ○ Enables better problem definition ○ Provide comparative data - Types of Secondary Data  Internal: Sales Invoice, call reports, transactions  Build a consumer profile  Determine the TA



 

Identify the best prospects for cross-selling of other products Determine the best channel to communicate



Determine the most profitable segment

External:  Published (directories, periodicals, Stats Source, Finical report  Commercial (Geodemographic data, diary panel data..)

● Primary Data ○ Data gathered by you or your firm ○ Fits better, more current ○ Expensive & time consuming to obtain 4. Research Design (Types of MR) ● Exploratory ○ Starting point: explore market, identify trends (ex: is there a market for customized wine?) ○ Develop initial hunches/insights & provide direction for further research ○ Pilot study: can usually be implemented by using: ■ Focus groups ■ Secondary data ■ Expert opinion survey ■ Case study ○ Advantages: ■ does not require a high level of structure ■ can help to anticipate problems & identify important variables ○ Disadvantages: ■ potential for researcher bias (subjective data) ■ potential for lack of focus (problem too big to manage) ● Descriptive Research (market snapshot) ○Intended to generate data describing the composition and characteristics of relevant groups or units (the market) ■ Ex: what are the characteristics of consumers who drive Toyota Scion ■ Uses surveys ■ Advantages: ● Potential for low cost & low time investment, ● Offers informative snapshot of the market and consumers ■ Disadvantages: ● Data we’re interested in may not exist

● Purchased data may be expensive ● Causal/Experimental Research ■ Intended to identify cause and effect relationships among variables ■ Uses experiments ■ Ex: people prefer coke to pepsi because of the flavor ■ Ex: if we increase price by 15% demand will drop by 50% ■ Advantages: ● Offers focused insights ● Can identify cause-effect relationships ■ Disadvantages: Requires considerable background research

Exploratory

Descriptive

Causal

Objective: To clarify

The Who, What,

To determine

problems and develop hypotheses, to

When, Where and How of marketing

relationships between variables, test

establish research priorities, to develop

research (rigid)

hypotheses, to make “ifthen” statements (control)

questions to be answered. (flexible) Ambiguous Problem High

flexible,

Aware of Problem less More understanding the

Problem Clearly Defined Quantitative in nature

situation, Describing’ characteristics of

•Emphasis on determining a cause and

respondents

people, objects etc

effect relationship

Example:  Focus Group  Secondary data  Pilot studies

Example:  Surveys  Observation

Example:  Experiemnts

structured, Small number

 

of

(experience surveys) In-Depth Interviews Case Analysis

Longitudinal: data is gathered for the same subjects repeatedly over a period of time Cross sectional: Data collected at one specific point in time

Exploratory research can be used at any point in the study.

5. Plan a Sample

6. Collect Data ● Interviewing Tips ○ Explain the purpose of the interview ○ Conversation, not interrogation ■ Longer questions lead to longer answers ■ Indirect questions lead to more free answers ■ Avoid questions with Y/N answers ○ Express ignorance, interest, & positive regard ○ Don’t editorialize or show selective enthusiasm ○ Reflect back to the respondent what you observe and how you believe he/she feels ● Focus Groups ○ 8-12 people ○ Hands-off, unbiased moderator (relative to depth of interview as well) ○ 1-way glass, recording ○ Researcher bias: hear what they want to hear ○ Participant bias: ○ Drawback: Risk of conformity ● Survey Research  Survey research tends to be used for descriptive purposes.  Answers who, when, where, what, and why.  Provide insights about connections or explore ideas  

Can be qua or quan Advantages:  Quick, cheap, efficient, accurate, easy to analyze



Disadvantages:  Poor design (bias question, errors )  Improper execution



Types of survey research (can be mixed)  Structured/ unstructured (mainly for answers, open end vs. chose following)  Not open-ended --- structured  Undisguies/ disguised (mainly for questions, landowner vs. you)  Third person inferring – disguised.  Purpose is clear --- undisguised  Method of administration:  Telephone  Pros: supervised, cost, response rate  Cons: no pictures ,hard to remember options  Mail  

Pro: cheap Cons: low response rate, no control

 personal interview  Internet survey

 

Pros: cheap, for sensitive questions Cons: respondent selection bias



Errors in Survey research Total Survey error = Random sampling error + Systematic error



Respondent Error  Nonresponse bias  



Difference between the responses of those who participate in a study and those who do not. Minimizing nonresponse bias : sending multiple survey mailings, making multiple attempts to call the household at different times, or

sending reminders designed to encourage the individual to complete the survey. Response bias: misrepresent the truth  Acquiescence Bias: tend to agree to all the questions  Social desirability bias: pressure to give socially acceptable answers 



Solution: take place in private environment

Measurement Error Caused by improper administration or execution  Process errors: when data incorrectly coded or incorrectly entered into

the computer program that is being used to tally the data and to analyze   

results. I Interviewer error: when an interviewer influences a respondent to give erroneous answers Instrument error: poor questionnaire design

Sample bias A persistent tendency for the results of a sample to deviate in one direction from the true value  Sample selection error: Failure to select a representative sample  when the sampling procedures are not followed or are not clearly defined  eg: purposely avoid/ skip certain groups  Sample frame error : chose the wrong sub-population from the sample  Eg: Use current telephone directory to get opinion of household 

---tele may outdated Population specification error: Not understanding who needs to be surveyed  Defined one group, but find it is not sufficient not include all groups

7. Analyze data ● Observational Research ○ Systematic observation methods to discover the “hidden obvious” ○ Reveal true actions, desires when shopping ○ Advantages: ■ Accurate representation of behavior when people are unable or unwilling to describe it ■ Uninfluenced by social desirability bias, measure actual behavior ■ No rely on memory ■ Record nonverbal behavior data ■ May allow researcher to uncover important unmet needs and develop innovative solutions ○ Disadvantages ■ Time-consuming, expensive, small sample ■ Complex, requires expertise ■ Reasons for observed behavior can’t be determined ■ Observer Bias: description is not objective

○ Example - Security camera --- ethical issue: privacy - Parking lots - License - Transactions - Check for patterns - Shopping time/ waiting time - environment Types of Observation Research 1. Degree of structure a) Structured: specify what and how b) Unstructured: monitor all aspects that are relevant 2. Degree of disguise a) Disguised: Customer don’t know they are being watching b) Undisguised: customer knows 3. Setting a) Natural: observing behavior take in real environment b) Contrived Observation: in artificial environment --- better control of environment, but may overlook behavior in the actual environment 4. Ethnographic research: observing in natural settings along with recorded depth interview Observation Methods 1. Personal Observation a) Observe actual behavior as it happens b) No manipulation, mere recording 2. Mechanical Observation a) May/may not involve respondent participation ( turnstiles, traffic counters, eye tracking) 3. Audit a) Physical counts 4. Content Analysis a) Obverse content in ad, newspaper, TV programs, emails 5. Trace Analysis a) Data collection based on evidence of past behavior b) Eg: most pressed bottom

● Qualitative Research ○ Answers “what, why, and how” but not “how many” ○ Researcher- dependent: extract meaning from unstructured response ○ Used in exploratory research ○ small sample in natural setting ○ More subjective Types of Qualitative Research 1. Observational Research a) Should avoid bias, describe without inferring 2. Photo collages (ZMET) a) Revealing experience, thoughts, feelings b) Understand the emotions c) Storytelling: showing respondents a picture or series of pictures and asking them to tell a story about what they see. 3. Concept tests a) Ask questions about a concept of a product 4. Focus Group a) An unstructured, free-flowing interview with a small group(relatively homogeneous) led by a moderator who encourage participation b) A good moderator i.

will capitalize upon this opportunity by actively encouraging the participant to share his or her thoughts.

ii. iii.

Good listener Develop rapport

iv.

Not to interject

v. vi.

Control discussion without being overbearing The most important characteristic of a good moderator is that he or she

is completely open to participant feedback, be it positive or negative. Advantages:

c) i.

Fast

ii.

Build upon each other’s idea

iii. iv.

Multiple perspectives Flexibility allow more details

v.

High degree of scrutiny

d) Disadvantages: i. each represents the opinion of only a few individuals. ii. iii.

High requirement of moderators Unique sampling problems

iv.

Not useful in sensitive topics

v. vi.

Groupthink Costly

5. Word Association a) respondents are given a series of words and asked to respond with the first word that comes to mind 6. In-depth interviews a) Focus on interviewee b) Start with general question c) Encourage d) Prob, tell more e) Make subject comfortable f) less structure than surveys

7. Conversation 8. Third-person technique: qualitative projective technique that involves asking individuals how someone else (a third person) would react to the situation, or what his or her attitude, beliefs, and actions may be 9. Sentence completion, a) respondents are given a partial sentence and asked to complete it with the first thoughts that come to mind.

b) goal: solicit individuals' thoughts without inhibiting their answers.

● Usability Measurement  Screening questions : identify key demographic traits that make research relevant  Avoid leading questions  Criteria for Good Measurement  Reliability: produce consistent results 

Test/Retest: Test someone on the measure, after a while, ask again



Inter-Rater: compare the ratings og the item between different raters, should be consistent  Internal Consistency: have similar questions, no identical questions To increase Reliability: Creating more ways to ask the same question  Validity: accurate results  Content: How well does a scale measure the construct or variables. Covers all aspects.  Criterion: Does this scale perform a expected?  Predicted vs. actual To increase Validity: Make questionnaire longer by adding questions that tap different aspects of the construct  Sensitivity: ability to measure variability within a concept

8. conclusion and recommendations 9. Assess Insights

● Sampling Fundamentals ○ Involves studying a subset of the target population ○ Sampling is important because of external validity → the ability to generalize results to the population. In order to do this, the respondent sample must be representative of the population ● Simple Random Sampling ○ Each population member (and thus each possible sample n) has an equal probability of being selected ○ Drawback: does not always provide the representative sample suitable for research ○ Ex: sampling 500 students from Kelley may lead to some classes being under-represented

● Probabilistic Sampling ○ Proportionate stratified random sampling ■ Divides population into different groups (stratum), and samples each group based on proportion size ■ Sample size from each stratum is proportional to size of stratum ■ Eliminates risk of underrepresentation ■ Lower sampling error than SRS ○ Disproportionate stratified random sampling ■ Over-sampling a small stratum or one that is highly variable ■ Use if one group is more valuable than another ○ Cluster ● Start writing too soon ● Too long ● Questions ambiguous ● Overuse nominal/ordinal scales ● Building Surveys in Qualtrics ○ Creating the survey ○ Question Options ○ Display logic (selectively showing questions to participants if certain conditions are met) & text piping (incorporate prior responses into questions) ○ Survey flow logic (sequence of blocks/question groups) ○ Previewing & distributing

● Collecting Survey Data: ○ Create survey in Qualtrics & distribute on MTurk ○ Steps ■ Finish building survey (Qualtrics) ■ Add validation Code + check ballot box stuffing settings (prevents people from taking survey more than once) (Qualtrics) ■ Set up survey project options (MTurk) ■ Launch & Collect data (MTurk) ○ Pros: ■ Quick (200+ responses in 2 days) ■ Inexpensive ■ Access to national & international participant pool ○ Cons: ■ Not always well suited for highly-involved, highly nuanced studies, or specialized settings where participants need to have expertise in an area...