Learning Objectives Chapter 6: Marketing Research Define marketing research. Describe the reasons for doing marketing research (the five Cs) and explain why marketing research is sometimes not done. Explain how research is used in each step of the hospitality and travel marketing system. List and describe the five key requirements for good research information. List in order and explain the six steps in the marketing research process.

Learning Objectives Chapter 6: Marketing Research Describe the internal and external sources of secondary research. Explain the differences between primary and secondary research and list their respective advantages and disadvantages. List and describe the primary research methods and differentiate between quantitative and qualitative research. Explain the advantages and disadvantages of personal interviews, mail, telephone, in-house, self-administered, and online surveys.

Learning Objectives Chapter 6: Marketing Research Explain the focus group approach and how it can be used in making effective marketing decisions.

Marketing Research The function that links the consumer, customer, and public to the marketer through information. The information is used to: 1. Identify and define marketing opportunities and problems. 2. Generate, refine, and evaluate marketing actions. 3. Monitor marketing performance. 4. Improve understanding of marketing as a process.

Reasons for Doing Marketing Research: The Five Cs Customers: To determine how well customer needs are being met, investigate new target markets, and assess and test new services and facilities. Competition: To identify primary competitors and pinpoint their strengths and weaknesses. Confidence: To reduce the perceived risk in making marketing decisions.

Reasons for Doing Marketing Research: The Five Cs Credibility: To increase the believability of promotional messages among customers. Change: To keep updated with changes in travelers’ needs and expectations.

Reasons for Not Doing Marketing Research Timing: It will take to much time. Cost: The cost of the research is too high. Reliability: There is no reliable research method available for doing the research. Competitive intelligence: There is a fear that competitors will learn about the organization’s intentions. Management decision: Management prefers to use own judgment.

Five Key Requirements of Marketing Research Information Utility: Can we use it? Does it apply to us? Timeliness: Will it be available in time? Cost-effectiveness: Do the benefits outweigh the costs? Accuracy: Is it accurate? Reliability: Is it reliable?

Marketing Research Programs and Projects A plan or program to investigate several marketing opportunities or problems (several projects). Marketing Research Project: An individual element of a marketing research program in which a specific marketing opportunity or problem is investigated.

Marketing Research Process Formulate Problem: Define research problem Identify research objectives and related questions Select Research Design And Data Collection Method: Collect and analyze secondary information Select research design and primary data collection method

Marketing Research Process Select Sample And Collect Data: Decide on sample design and collect primary data Analyze And Interpret Data Analyze and interpret primary data Prepare Research Report: Draw conclusions and make recommendations Communication of the Research Results Present results to all interested parties

Sources of Secondary Research Information Internal Data External Data Registrations or reservations Government agencies Sales or customer mix WWW. Magazines, journals, newspapers, radio, TV Databases Associations Inquiries Research companies and consultants Unfulfilled reservations/ turn-aways Universities and Colleges

Secondary and Primary Research Published information available from other sources, either internal or external Primary: Data collected for the first time, by a method other than secondary research, to answer specific questions.

Advantages and Disadvantages of Secondary Research Inexpensive Easily accessible Immediately available Disadvantages Frequently outdated Potentially unreliable May not be applicable

Advantages and Disadvantages of Primary Research Applicable and usable Accurate and reliable Up-to-date Disadvantages Expensive Not immediately available Not as readily accessible

Primary Research Methods & Techniques Quantitative Data Qualitative Data Surveys Personal interview (intercepts) Mail In-house, self-administered Telephone, fax, e-mail, Web Experiments Focus groups Individual depth interviews Mechanical observation Human observation Simulation Case studies

Primary Research Methods Experimental (e.g., test marketing) Observational (human and mechanical) Survey (mail, telephone, personal interview, in-house self-administered, online) Simulation (mathematical and computer modeling) Focus groups (groups of 8 to 12 people with moderator trying to reach a consensus of opinions)

Personal Interviews Advantages High response rate Great flexibility (ability to adapt/explain questions) Can show or demonstrate items Fuller explanations can be given Very timely data

Personal Interviews Disadvantages Relatively expensive Possibility of interviewer bias Personal nature of questions (e.g., age or income) Respondents not relaxed (put on the spot) Time may not be convenient for respondents

Mail Surveys Advantages Relatively inexpensive No interviewer bias Consistent questions (for all respondents) Large number of respondents can be included Anonymity Respondents can choose the most convenient time to answer

Mail Surveys Disadvantages Low response rates (relative to other survey types) Junk mail syndrome Impersonal nature

Telephone Surveys Advantages More flexibility compared to mail surveys Quick and inexpensive High response rates Disadvantages More obtrusive than mail Greater difficulties in rapport building Long-distance calls are expensive

In-House, Self-Administered Surveys Advantages Completed by customers within the premises of a hospitality and travel organization Convenient Disadvantages Generate low response rates

Online Surveys Advantages Relative speed and flexibility Large and growing audience Disadvantages Technical skills and time required to develop questionnaires