QUIZ 2 - CH 6, 7, 8 , 9 PDF

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CH 6 – Types of research design 1) Purposes of descriptive research: 1) Describe the characteristics of certain groups – ex: determine the “average user” using income, age, sex, etc. 2) Estimate the proportion of people who behave in a certain way – most behavioral data is collected through descriptive research. 3) Make specific predictions Descriptive data becomes useful when the process is guided by 1 or more specific research problems. Rigid and require specification of who, what, when where, why and how. Exploratory data is more flexible. The researcher should delay data collection until hypotheses are developed and clear judgments of the who, what, when, where, why and how of descriptive research are made. Dummy table: A table with no entries used to show how the results of the analysis will be presented. Good to do before conducting research to know what kind of info you need to fill it. Ex: Age groups of customers of 3 department stores. The researcher must know in advance the objective of each question, the reason it’s included in the study and the analysis that will be used. Question: Interest in the product/ Price/ Size of heel/ design of heel Filters: Social activity, income, age

Age/social act/ Y 15 – 21 21 – 25 25 – 35

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Types of descriptive studies: 1. Longitudinal: Investigation involving a fixed sample of elements selected from the population of interest that are measured repeatedly through time. Continuous panel & discontinuous panel (Ask the same set of questions once a year for 4 years) a. Same set of questions with different groups b. Same set of questions with same groups c. Different set of questions with same group (panel) d. A panel is a fixed set of elements (Stores, dealers, people) Consumer panels: e. Continuous panels: A fixed sample of respondents who are measured repeatedly over time with respect to the same variables. BEST i. Why is this best? Because the trend will be clearer – like asking the same question twice f. Discontinuous panels: A fixed sample of respondents who are measured repeatedly over time but on variables that change from measurement to measurement. First attitudes, then alternatives, etc. Advantages of panels: Good for collecting detailed demographic info. Cross sectional studies are limited here before respondents are only contacted once. Good for lengthy answers because they are being compensated. More accurate than cross-sectional data. Can remember behavior because they can record it as it occurs. Disadvantage of panels: Nonrepresentative/nonrandom. Cooperation of 50% or less. Require payments or premiums. Can’t force anyone to participate

2. Cross – sectional: Investigation involving a sample of elements selected from the population of interest that are measured at a single point in time. Ex: Sample survey (taking a slice of USIL students to figure out how people think of the university – one shot). MOST COMMON. a. Sample survey: The sample is selected to be representative of the target population (ensured by randomness, no bias). Emphasis on the generation of summary statistics such as averages, %s and proportions. N = 1000 (Target market - population). n = 10 (sample) P = 80% (proportion) avg: 4.5. You take a random sample from your target population. Std deviation = suma de todo menos el promedio al cuadrado entre la raiz de n. b. Advantages of sample surveys: 1) Very specific populations can be targeted and the members of those populations recruited to participate in the survey. 2) ability to use a probability sampling plan that will allow the results of the sample to be projected to the overall population. c. Disadvantages of sample surveys: Superficial analysis of the phenomenon, high cost, and technical sophistication required to conduct survey research. d. Disadvantages of cross sectional studies: Respondents don’t give lengthy answers because they aren’t being compensated. People tend to forget behaviors by the time they’re asked. 2) Causal Research: Test cause and effect relationships  

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Good for EXPLICIT research questions Condition: X causes Y event o A 5% increase in the price of the product will have no significant effect on the amount of the product that customers will buy. Experiment includes independent variable (X) and dependent variable (Y) Change the levels of one or more X variables and examine the resulting impact on Y variables At the same time, it is very important to control for or eliminate competing explanations that might impact Y Experiment: Scientific investigation in which an investigator manipulates and controls one or more independent variables and observes the degree to which the dependent variables change. Gives CONTROL. o Laboratory experiments: Investigators create a situation with exact conditions in order to control some variables and manipulate others.  Internal validity: The degree to which an outcome can be attributed to an experiment variable and not to other factors. High internal validity because outside variables are held constant. Internal o Field experiment: Research study in a realistic situation in which 1 or more independent variables are manipulated by the experimenter under as carefully controlled conditions as the situation will permit.  External validity: The degree to which the results of an experiment can be generalized, or extended, to other situations. HIGHER because realistic.  Having greater internal validity means giving up external validity and vice versa. Internal validity: Theory. External: Practice SO, it’s best to conduct both types of experiments because both types of validity are important. Market testing: A controlled experiment done in a limited but carefully selected sector of the marketplace. o Used to predict sales or profit outcomes of proposed marketing actions. o Issues: Cost, Time, control – competitors can sabotage market testing by buying all of your products to make you think they will succeed. Types of Test Markets: Simulated Test Market: Consumer ratings are obtained along with likely or actual purchase data often obtained in a simulated store environment, the data are fed into computer models to produce sales and market share

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predictions. (Hypothetical – virtual. Advantages: Faster, cheaper and secure – offer protection from competitors and good for identifying weak products. Bad: Prediction accuracy. More suited for product extensions rather than launches), o In 90% of cases, STM models come within 20% of actual results in the marketplace. o Via the Internet Controlled Test Market: An entire test program conducted by an outside service in a market in which it can guarantee distribution. Forced-distribution test market. Ex: Monitor tv viewing behavior, test different commercials. (Advantages: Less expensive than standard test markets. Can only assure success if the product fits in with the company’s product line. Disadvantages: More expensive than simulated Standard Test Market: The company sells the product through its normal distribution channels. Usually in specific cities – must makes sure they are isolated form other cities to avoid “spillover” effects from nearby markets like consumers in the test market leaving outside the area to shop at another store. (Test the product in a few Wong stores before launching it. Good: Prediction accuracy because of the natural environment, greatest degree of external validity. Bad: Expensive and time consuming, can tip off the competition) o Logical choice when: 1) it’s important for the firm to test its ability to actually sell to the trade and get distribution for the product 2) the capital investment is significant 3) the company is entering new territory and needs to build its experience but on a limited scale.

CH 7 – Secondary Data Important: Projects should start w/ a careful search for existing secondary data. Market analysis relies almost exclusively on secondary data. Will help: 1) Better state the problem 2) Suggest improved methods or further data that should be collected 3) Provide comparative data that can help interpret primary data if it’s eventually collected  

Primary data: Info collected specifically for the investigation at hand Secondary data: Info not gathered for the immediate study at hand but for some other purpose o Advantages: time and cost savings o Disadvantages:  Not an exact fit because of: 1) different units of measurement 2) different class definitions 3) the age of the data – value diminishes w/ time  Problems of accuracy: Evaluate by considering primacy of source, purpose of publication, and the general quality of the data collection methods and presentation.  Primacy of source: The originating source of secondary data. o Will describe process of collection and analysis so it’s easier to judge quality and usually more accurate and complete.  Secondary source: A source of secondary data that did not originate the data but rather secured them from another source. o Can cause errors in transcription or leave out important information such as footnotes.  Purpose of publication: Consider the source; who sponsored the collection of data? o Advocacy research: Research conducted to support a position rather than to find the truth about it.  General evidence of quality: evaluate the ability of the supplying organization to collect the data. Trustworthy sources will include how they collected the data, omissions indicate sloppy methods or advocacy research.

Rule: ALWAYS USE THE PRIMARY SOURCE OF SECONDARY DATA! Types of secondary data: 

Internal Data: Data that originate within the organization for which the research is being done o Most studies should begin with a search for internal data o Sales invoice, salesperson’s call reports, warranty cards, credit memos o Least costly and most readily available o If maintained in an appropriate form, internal sales data can be used to analyze the company’s past sales performance by product, geographical location, customer, channel of distribution, etc. and shows how profitable segments are.  External Data: Data that originate outside the organization for which the research is being done o Published: general works, periodicals, directories, statistical sources, financial records – from governments, magazines, associations o Search: 1) Identify what you want to know and what you already know about the topic. 2) Develop a list of key terms and authors 3) Use library or Internet 4) Compile the literature you have found 5) Go to a reference librarian to help you uncover info that is relevant. 6) Consult general guidelines 7) Go to an authority – department specialists. o Commercial: Geodemographic data, store audit data, scanner data  Key sources to search: Reference librarians, Associations, Online computer searches, General business guides/directories o Online database costs may include: Planning and executing the search, telephone line charges, connection charges and citation and printing charges.  Advantage: Time savings!

CH 8 – Standardized Marketing Information Resources:    

Commercial sources of secondary data The data are usually collected, analyzed, and then sold to multiple companies Because the information is sold to multiple companies, the data must be “standardized” (as opposed to customized for individual companies) AKA syndicated research o EX: Attitudes and opinions of young people in Peru – just to see what their thinking. Valuable for companies: Who do you idolize? What music do you like? What TV shows do you watch?  Subset: How they feel about security in Taxis, neighborhoods.

Uses: 1. Profiling customers: firms target groups of customers. EFFECTIVE SEGMENTATION >> grouping customers into homogenous groups. Ideal for tailoring marketing programs then to individual groups.  For consumer goods & service suppliers: Don’t normally target individual customer bc no single customer is going to buy much of any product or service. Instead, firms target group of customers. o Geodemography: Gather info of consumer behavior and lifestyle by arbitrary geographic boundaries that are typically small. Info available in the form of maps o Geographic Information System combines different types of demographic data with geographic info on maps. The user can zoom in and take closer look. 2. Measuring product sales and market shares: to keep track of products

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Online diary panels: A representative group of individuals or households keeps track of purchases made or products consumed over a given time period. BAD: Depend on memory!  Store audits: A research firm sends field workers to a select group of retail stores at fixed intervals to record a complete inventory of products designated for audit. Beginning inventory + net purchases – ending inventory = sales. Common in CONVINIENCE STORES. 3. Measuring adv exposure and effectiveness  Use people meters: measure when a tv is on, what channel is tuned and who is watching. 

Scanner data: Scanners automatically reads the UPC, look up the price and print the description on price on the receipt.  UPC code: 12 digit # on a product – helpful to track inventory  Can combine retail and causal data and see effectiveness of various marketing actions.

Also, casual data could be collected:  DISPLAY INFORMATION >>stores are audited and items on display are recorded)  FEATURE INFORMATION >> features are collected and coded to identify items being advertised)  PRICE CHANGES >>the system identifies changes via comparison to historical prices) could be collected. - USES: The combination of retail sales & casual data can be useful for marketing actions.  Estimate how base sales would have been w/out the presence of the action o Effectiveness of promotions, pricing changes, new products  

Monitor unexpected events Collecting sales & market share data  Link purchase behavior w/ demographic info. Diaries could be used but depend on the accuracy of those in the panel to record their purchases (recording biass).

Single-source data: Data that allow researchers to link together purchase behavior, household characteristics, and advertising exposure at the household level.    

Product-purchase data Advertising exposure data: Split the feed of adv in 2 households that are close – track exposure to see if advertising is working or not Household demographic characteristics Challenge: prepare for big data. Decision support systems for analyzing data as critical.

Measuring Adv Exposure and Effectiveness:      

Tv and radio Print Media: 1) Noted: Remember seeing any part of the ad 2) Associated: not only noted the ad but also saw the advertiser’s name 3) Read some: Read any of the ad 4) Read most: Read more than half of the ad. Software that tells you the % of your target market that saw your ad and compares with competition Internet: Tracking by visitors, time spent, etc but hard to tell demographics Multimedia Services: Media usage aggregated at the househould and individual level Newspaper readership: by asking through a yesterday-recall mechanism

Chapter 9 – Primary Data Vetted = double check Interviewers are interested in: Age, education, occupation, marital status, sex, income, social class, ethnicity.

Types: Demographic/Socioeconomic characteristics, Personality/Lifestyle characteristics, Awareness/Knowledge, Attitudes/Opinions, Intentions, Motivation, Behavior 1) Demographic: Often used to divide a population into groups (e.g., for market segmentation purposes). Commonly measured variables: Age, Education, Income, Gender, Occupation, social class. These variables are often used to cross classify the collected data to help interpret the consumers' responses. Ex. Consumption relationship with age. Demographic variables are used for market segmentation. Some variables are easily verified (age, gender, formal education), some not (social class, income in developing countries). 2) Personality/lifestyle: Personality: Normal patterns of behavior exhibited by an individual; the attributes, traits, and mannerisms that distinguish one individual from another. Ad campaigns won’t change this. We often categorize people by the personality traits (aggressiveness, friendliness, etc.) they display because marketers are interested in how they affect the way consumers behave and how they make choices/react. Empirical evidence on the ability of a personality trait to predict consumption behavior is weak. Lifestyle analysis (sometimes called psychographic analysis): Suggests that a company will be more successful at reaching its target market if it knows more about its customers’ way of life, what interests them, and what they like 3) Awareness/knowledge: Insight into, or understanding of facts about, some object or phenomenon. Marketers often want to know what individuals know or believe about products, brands, companies, advertisements, and so on. Short-term success and impact can be measured with DAR (day after recall), with a phone survey the day after airing a new ad (sales projections with ads with similar DAR scores). Consumers don't have to explicitly remember an ad for it to have an impact on their behavior, so more indirect questions can be asked. Memory measures can be used to assess awareness and knowledge of brands (what people know/believe of a brand, and brand image, as well as attitudes) and see positioning.  Brand recognition ≠ Brand awareness. Brand recognition is simply recognizing a package  Unaided Recall: For what products and brands do you remember seeing ads?” Highest level  Aided Recall: “Do you remember seeing ads for personal computers?”  Recognition: “Do you remember seeing this ad for Dell Computers?” Lowest level 4) Attitudes/opinions: An attitude is an individual’s overall evaluation of something. Marketers often measure people’s attitudes toward companies, products, and services. Both can be used interchangeably as representing a person's global evaluation of a specific object/idea. Attitudes are very important because they are related to behavior, so marketers want to shape them and learn about people's attitudes towards things as well as about what influences them. Ex. teen attitudes towards brand name good have declined.  Cognitive: I think  Affect: I like  Conative (Intentional, predisposition): I want to buy 5) Intentions: Anticipated or planned future behavior. Intentions ≠ behavior. Marketers often need this type of information to assess demand for a good or service. Estimating demand for products and services accurately is one of the most difficult tasks a marketing researcher faces. Interest in purchase behavior, confidence and intentions (definitely would buy, probably would buy, undecided, probably wouldn't buy, definitely wouldn't buy). Intentions receive less attention because there is a disparity between what you say you will do and what you do. Marketers must discount stated intentions. Sometimes intentions are the only thing marketers can get because behavioral data is too expensive, difficult or impossible to obtain. Until a product is examined and tried, it is hard to know how consumers might behave (ex. Solar powered IPod). Also, intentions data is used when studying expensive items because the more spent, the more planning necessary and the greater the correlation of anticipated vs. actual behavior. 6) Motivation: A need, a want, a drive, a wish, a desire, an impulse, or any inner state that energizes, activates, or moves and that directs or channels behavior toward goals. Phsycic energy/ subconscious. Reasons for interest: 1.

Motives are more stable than behavior, so they're better at predicting the future (than past behavior). 2. By understanding the drivers of behavior one understands behavior itself and offer products that satisfy the motives that drive behavior.  If we understand motivation, we are in better position to anticipate consumer needs and offer products and services that satisfy those needs  Researchers are interested in people’s motives for two primary reasons: 1) Determining why people behave as th...