MKTG3378 - Test 2 Note Review PDF

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MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA CHAPTER #7 – SURVEY Terms/Definitions: - Surveys o ask respondents for information using verbal or written questioning - Survey Research o Why? How? Who? o Problems: Poor design, improper execution and changing environment Categories of Survey Errors – Total Error:

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1) Random Sampling error o A statistical fluctuation that occurs because of chance variation in the elements selected for a sample. 2) Systematic error (bias) o Results from some imperfect aspect of the research design or from a mistake in the execution of the research  A. Respondent error  A classification of sample bias resulting from some respondent action or inaction i.e. Nonresponse bias or Response bias o Nonresponse Error  Nonrespondents - people who refuse to cooperate; Notat-homes; Self-selection bias; Over-represents extreme positions; Under-represents indifference; How to reduce nonresponse error?  Cover Letter; Good for society, individually signed, anonymous  Incentive; coupon (different attraction per people, value), money is better!, draw, charitable donation  Persistence  Up-to-date mail list o Response Bias

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA 

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Types of Surveys (5) - 1) Personal - 2) Telephone

A bias that occurs when respondents tend to answer questions with a certain slant that consciously or unconsciously misrepresents the truth i.e. Acquiescence bias, extremity bias, interviewer bias, auspices bias, social desirability bias B. Administrative error  Improper administration of the research tasks, Blunders, Confusion, Neglect, Omission o Interviewer cheating  filling in fake answers or falsifying interviewers o Data processing error  incorrect data entry, computer programming, or other procedural errors during the analysis stage. o Sample selection error  improper sample design or sampling procedure execution. o Interviewer error  field mistakes -

3) Mail 4) Web/Internet 5) Other

Determining the Survey Method (7) - 1) Sampling control - 2) Budget - 3) Use of stimuli, tasks - 4) Length of Q’naire - 5) Structure of Q’naire - 6) Incidence - 7) Time available Exercises - Evaluate the following survey designs: a. A researcher suggests mailing a small safe (a metal file box with a built-in lock) without the lock combination to respondents with a note explaining that respondents will be called in a few days for a telephone interview. During the telephone interview, the combination is given and the safe may be opened. b. A shopping centre that wishes to evaluate its image places packets including a questionnaire, cover letter, and stamped return envelope in the mall where customers can pick them up if they wish. c. A questionnaire is programmed on a CD and then mailed to individuals who own computers. Respondents insert the disk into their computers, answer the questions, and email the data

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA back to the research company. Each respondent is guaranteed a monetary incentive but has the option to increase it by playing a slot-machine game programmed onto the CD. d. Time magazine selects a mail survey rather than a telephone survey for a study conducted to determine the demographic characteristics and purchasing behaviour of its subscribers. Ethics and Survey Research – thoughts? a. A research firm plans to use invisible ink to code questionnaires to identify respondents in a distributor survey. b. A political action committee conducts a survey about its cause. At the end of the questionnaire, it includes a request for a donation. c. An industrial marketer wishes to survey its own distributors. It invents the name "Mountain States Marketing Research" and sends out a mail questionnaire under this name. d. A questionnaire is printed on the back of a warranty card included inside the package of a food processor. The questionnaire includes a number of questions about shopping behaviour, demographics, and customer life styles. At the bottom of the warranty card is a short note in small print that says, "Thank you for completing this questionnaire. Your answers will be used for marketing studies and to help us serve you better in the future. You will also benefit by receiving important mailings and special offers from a number of organizations whose products and services relate directly to the activities, interests, and hobbies in which you enjoy participating on a regular basis. Please indicate if there is some reason you would prefer not to receive this information." CHAPTER #8 – OBERSERVATION Terms/Definitions: - Lost-Letter technique - Used to predict voter behaviour; Letters addressed to various political groups are distributed in a controlled fashion throughout a city. The "respondent" finds an envelope, reads the address of a group supporting (opposing) a candidate, and returns the envelope via mail (or throws it away). It is assumed that this indicates a favorable (unfavorable) attitude toward the organization. Could this technique be used in marketing research? What risks would be associated with this technique? - Dependent variable: voting tendency - Issue: Measuring personal responsibility - Observation o The systematic process of recording the behavioral patterns of people, objects and occurrences without questioning or communicating with them.  Conditions:  must be observable or inferable  repetitive, frequent or predictable  relatively short duration  Advantages  Can be more accurate than surveys (interviewer and respondent bias)  Faster and more accurate for some types of data  Disadvantages  only for behaviour and physical characteristics  not for psychological variables (?)

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA  public behaviour and characteristics  may not be projectable to future  can be slow and expensive for some kinds of data Approaches for Observation: - Structured versus Unstructured (Underhill) - Natural versus Contrived (experiment) - Open versus Disguised - Direct versus Indirect - Physical Trace Evidence (Artifacts) - Non-mechanical versus Mechanical

Direct Human Observation - Mystery Shoppers - One-way Mirror - Shopper Patterns - Humanistic Inquiry – Ethnography - Audits - Artifacts - Content Analysis (QDA) - Physical Trace Evidence.

Machine Observation - Pupilometer - Traffic counters – Wifi Carts - Physiological measurement  EEG  GSR  Eye Camera  Pupilometer  Voice pitch – Vericator, TrusterPro - Scanner-based Research  data mining  experiments  consumer panels - Other Technologies  Invidi - http://www.invidi.com/index2.html  Web tracking  fMRI and neuromarketing

Exercises - Evaluate the following survey designs A) A bank wishes to collect data on the number of customer services used and the frequency of customer use of these services. B) A provincial government wishes to determine the driving public’s use of seatbelts. C) A fast-food franchise wishes to determine how long a customer entering a store has to wait for his/her order. D) A magazine publisher wants to know exactly what people notice and what they pass over while reading one of its magazines. E) A food manufacturer wishes to determine how people use snack foods in their homes. F) An overnight package delivery service wishes to observe delivery workers beginning at the point where they stop the truck, continuing to the point where they deliver the package, and finally, to the point where they return to the truck.

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA CHAPTER #9 – EXPERIMENTAL RESEARCH Terms/Definitions: - Experiment - A research investigation in which conditions are controlled; One independent variable is manipulated (sometimes more than one); Its effect on a dependent variable is measured; To test a hypothesis -- Note: People cannot be people - Experimental Design (Issues) - Manipulation of the Independent Variable; Selection and Measurement of Dependent Variable; Assignment of Subjects (or other Test Units); Control Over Extraneous Variables; Experimental Design - Internal Validity - The ability of an experiment to answer the question whether the experimental treatment was the sole cause of changes in a dependent variable - External Validity - Do the results observed in the experiment represent what really happens in the population beyond the IV: how far away kid is experimental setting DV: Reaction of senior - Demand Effect - Threat to both internal and external validity Experimental Settings - Laboratory or Field

Threats to Internal Validity - History - events occurring simultaneously with the experiment - Maturation - biological and/or psychological changes in respondents - Testing - after-measurements taken on same subjects as before measures - Instrumentation - changes in calibration of the measurement instruments - Selection bias - improper assignment of respondents to treatment conditions - Mortality - differential loss of respondents from treatment groups - Regression to the Mean - tendency of subjects with extreme behaviour to move toward the average during the course of an experiment.

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA Threats to External Validity - Reactive or interactive effects - of testing-pre-exposure measurement sensitizes respondent to treatment - Interactive effects of selection bias - improper (non-random) assignment of subjects to the experiment results in different responses to treatment - Surrogate situations - experimental setting (test units. treatment, or other elements) differs from real world Control of Other Causal (Confounding) Factors 1. Randomization 2. Physical control 3. Design control 4. Statistical control The I.G.A. Grocery Store Dan Kessler the manager of an I.G.A. grocery store, had a brother-in-law who supervised a large number of keyboard operators at a public utility company. At a family gathering, Kessler's brother-inlaw mentioned that his company recently had begun programming background music into the keyboard operators' room. As a result, productivity had increased and the number of errors had decreased. Kessler thought that music within a grocery store might have an impact on customers. Specifically, he thought that customers might stay in the store longer if slow, easy-to-listen-to music were played. After some serious thought, he started thinking that he should hire a marketing researcher to design an experiment for testing the influence of music tempo on shopper behaviour. - Hypothesis: Slow tempo – staying in store longer - IV: Having music being played – SPECIFIC -- Tempo; Fast vs slow, Genre; Lyrical; - DV: Length of time in store, sales rev per time period, profits per time - Confounding Variables – day of week, holidays (messing things up) Experimental Design (4) - 1) Notation

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2) Pre-experiments

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3) True experiments

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA

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4) Quasi-experiments Time Series

Factorial Design

2 x 2 Factorial Design

Interaction Between Gender and Advertising Copy Test Markets Objectives (4) - Estimate sales and market share - Estimate cannibalization - Study consumer behaviour, segmentation - Study competitor’s behaviour Conducting A Test Market (6) 1. Define objectives 2. Select approach 3. Develop procedures – mfg, distrb’n, promotion 4. Select markets – typical, media isolated 5. Execute – duration – at least one purchase cycle for the product 6. Analyze results – purchase data, awareness data, competitive response, source of sales In the following situations name the type of experiment described. Evaluate the strengths and weaknesses of each design. (A) A major petroleum corporation is considering phasing out its premium unleaded gasoline. It selects Nashville, Tennessee, as an experimental market in which the product might be eliminated and decides to watch product line sales results. (B) A soft drink manufacturer puts the same brand of orange drink into two different containers with different designs. Two groups are given a package and asked about the drink's taste. A third group is given the orange drink in an unlabelled package and asked the same question. - HYPOTHESIS: Packaging has a impact on the perception of taste - Independent: variant of packaging/label design - Dependent: perception xDrink’s taste - C group – unlabelled (control group), compare all groups to each other

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA (C) An advertising agency pretested a television commercial with a portable television set, simulating an actual television program with the test commercial inserted along with other commercials. This program was shown to a focus group and group discussion followed. - Note: Not an experiment (focus group) (D) A manufacturer of a new brand of cat food tested product sampling with a trial-size package versus no sampling and three price levels simultaneously to determine the best strategy to maximize attitude toward the brand. CHAPTER #10 – MEASUREMENT AND ATTITUDE SCALES Terms/Definitions: - Measurement - The process of assigning numbers or labels to objects, persons, states or events in accordance with specific rules to represent qualities or quantities of attributes. - Scales - A set of symbols or numbers constructed to be assigned by a rule in the process of measurement. - Conceptual Definition (or Constitutive or Theoretical) - Tells you what the concept means - Operation Definition - Only tells you how to measure it - Example: Customer Satisfaction - Conceptual -- The affective state that results from the discrepancy between what was expected in a transaction and what was perceived to be experienced. - Operational -- The level of felt satisfaction with a transaction as reported in response to a seven point scale with “Delighted” and Terrible” as end points. - Example: Role Ambiguity - Conceptual -- Role ambiguity is the discrepancy between the information available to the person and that which is required for adequate performance of a role. It is the difference between a person’s actual state of knowledge and that which provides adequate satisfaction of one’s personal need and values. - Operational -- The amount of uncertainty (ranging from very uncertain to very certain on a 5-point scale)an individual feels regarding the job role responsibilities and expectations from other employees and customers - Levels of Questions: o Business – Research – Questionnaire Four Major Levels of Measurement (4) - (1) Nominal - Uses numbers to identify objects, indiv., events or groups i.e. (in)equality, frequency - (2) Ordinal - Identification + numerals relative of some characteristic by event/object i.e. greater or less, median

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA - (3) Interval - Similar to nominal + ordinal, but equal intervals between consecutive points i.e. (in)equality, mean - (4) Ratio - All properties of above, plus includes absolute zero point i.e. geometric mean, sales, age

Characteristics of A Good Measurement Scale (3) - 1) Reliability o test-retest, internal consistency - 2) Validity o Face, criterion, construct - 3) Sensitivity o  Note: “Do not use scales” Types of Scales (2) - 1) Rating Scales (estimate magnitude) o i.e. Graphical, Numeric, Itemized, Semantic Differential, Stapel, Likert - 2) Ranking Scales (put in order) o i.e. Rank Order, Paired Comparison Note: Rating Scales 

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA Note: Ranking Scales ->

Issues in Scale Selection (4) - 1) Level of Measurement - ranking/rating - 2) Balanced/Non-Balanced - 3) Number of Categories - Odd/even - 4) Forced or Non-Forced Choice Exercise -- Comment on the validity and reliability of the following: 1) A respondent's report of an intention to subscribe to Consumer Reports is highly reliable. A researcher believes this constitutes a valid measurement of dissatisfaction with the economic system and alienation from big business. - Face validity, doesn’t smell right, doesn’t make sense, not good measure, multiple reasons for use 2) A general-interest magazine advertised that the magazine was a better advertising medium than television programs with similar content. Research had indicated that for a soft drink and other test products, recall scores were higher for the magazine ads than for 30-second commercials. - Dependent: advertising effectiveness; AIDA (Awareness, Interest, Desire and Action), recall is part of awareness. To make claim that magazine ads are better than commercials since the measurement does not cover whole domain – validity problem 3) A researcher is studying magazine subscription rates. A respondent's report of frequency of magazine reading consistently indicates that she regularly reads Good Housekeeping and Gourmet and never reads Cosmopolitan. Exercise -- Indicate whether the following measures are nominal, ordinal, interval, or ratio scales: (a) Prices on the stock market – Ratio (b) Marital status, classified as "married" or "never married" – Nominal (c) Whether a respondent has ever been unemployed – Nominal (d) Professorial rank: assistant professor, associate professor, or professor – Ordinal (e) Grades: A, B, C, D, or F – Ordinal Exercise -- Provide a conceptual definition and two operational definitions for each of the following constructs. a. Conservativism b. Interest in stamp collecting c. Consumer attitude toward a brand - Conceptual: predispositions, mental statem positive or negative feeling about a brand, 3 aspects, behaviour, cognitive - Operational: Ratings system survey 5pt scale, dislike, like - Operational: Facial expressions or word of mouth (how to measure) Exercise -- Your client owns a fine dining restaurant in Dartmouth and he is wondering about how to better spend his renovation budget. He thinks his clients would have a higher level of interest in a bright and cheery dining area than in more parking space.

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA 1. What is your dependent variable here? 2. Provide an operational definition for this variable? - Business decision question: how to spend renovation budget - Research question: People will have higher level interest in one than other? - Dependent variable: Consumers interest in various aspect - Operational definition: How interested are you in dinning area vs. parking space (rate 5pt) CHPATER 11 – QUESTIONAIRE DESIGN Questionnaire Design (6) - 1) Objectives, constraints - 2) Data collection method - 3) Question/Response Format - 4) Question Wording and Sequence - 5) Questionnaire Layout - 6) Pretest Objectives, constraints o Know what info you need (level of question) o Can people answer the questions? o Will people answer the question? Data collection method o method of administration will affect questionnaire design o i.e. props. tasks, instructions, nature of questions Open/Response Format o Open-ended o Closed ended  Dichotomous  Multiple Choice (2) (A - Determinate Choice i.e. “Fav. Soft Drink, check one” or B - Checklist or Mutli-columnist i.e. “What soft drinks do you like? Check all that apply”)  Scaled response Question Wording o Use simple words i.e. effluent toxicity in papermill greywater be reduced o Avoid ambiguity i.e. do you use the zig-zag feature on your sewing machine? o Avoid leading questions i.e. think that limiting taxes by law is an effective way? o Avoid implicit alternative/ assumptions i.e. favour of placing price controls on crude oil o Avoid double-barreled questions i.e. evaluation of the price and convenience offered ..

MKTG3378 – Test #2, CHP7,8,9,10,11 Oct 27 || MC + SA Question Sequence o Simple interesting opening questions o Funnel approach – ask broad questions first o Use branching questions (skip pattern) carefully o Classification questions last o Difficult or sensitive questions near the end - Note: Income can be a sensitive topic Questionnaire Layout o Screener (Filter) Question o Group questions together by topic o Space for responses o Instructions - Note: Try to think of ways a question could be misinterpret...