Chapter 9

Descriptive research is used for following purposes  To describe the characteristics of certain groups  To estimate the proportion of people in a specified population who behave in a certain way  To make specific predictions.

WARNING !  Delay data collection until hypotheses are developed who-what-when-where-why-how  Determine exact variables and categories  Delay data collection until you determine how the data are to be analyzed  Inexperienced researchers often question the need for such hard, detailed decisions before collecting the data WIDE VARIETY OF FACTS WILL NOT BE ENOUGH TO SOLVE ANYTHING ! DON’T BE TOO LATE TO SAY “If only we had collected information on that variable”

Classification of Descriptive Studies Descriptive Studies Cross Sectional Sample Survey Longitudinal (store, dealer, individual) Discontinuous Panel (omnibus) Continuous Panel (NPD Online Panel)

Longitudinal vs. Cross-Sectional Data allows turnover analysis if panel is continuous allows collection of much more classification information from respondents allows longer and more exacting interviews produces fewer errors in reporting past behavior because of natural forgetting produces fewer interviewer— respondent interaction errors tends to produce more representative samples of the population of interest produces fewer errors due to respondent’s behavior being affected by the measurement task allows the investigation of many more relationships LONGITUDINAL DATACROSS-SECTIONAL DATA

Brand Switching Example: Number of Families in Panel Purchasing Each Brand Brand Purchased During First Time Period t 1 During Second Time Period t 2 A B C D Total , ,000

Brand Switching Example: Number of Families Purchasing Each Brand in Each Period During Second Time Period t 2 Bought A Bought B Bought C Bought D Total ,000 During First Time Period t 1 Bought ABought BBought CBought DTotal

Brand Switching Example: Proportion of Families Purchasing Each Brand in Each Period During Second Time Period t 2 Bought A Bought B Bought C Bought D During First Time Period t 1 Bought ABought BBought CBought DTotal

 Secondary data has its own shortcomings. The units of measurement or classes used to report the data may be wrong The data may be obsolete by the time of their application The data may be incomplete  When these conditions occur the researcher turns to primary data

Types of Primary Data Often Collected by Marketing Researchers Demographic/socioeconomic characteristics Psychological/lifestyle characteristics Attitudes/opinions Awareness/knowledge Intentions Motivation Behavior

 Demographic/socioeconomic characteristics  Age  Education  Occupation  Marital Status  Sex (Gender)  Income  Social Class

 Psychological/Lifestyle Characteristics Personality refers to normal patterns of behavior exhibited by an individual (aggressive, dominant, extrovert) Psychographic (Lifestyle) analysis reflect ACTIVITIES, INTERESTS and OPINIONS (AIO) and CONSUMPTION BEHAVIOR.

 Attitudes/Opinions Attitude is an individual’s preference, views, or feelings toward some phenomenon. Opinions are verbal expressions of attitudes. Attitude Behavior  Awareness/Knowledge The effectiveness of ads in TV, radio, magazine billboard and Web banners is measured by product awareness generated by the ad using 1. unaided recall 2. aided recall 3. recognition

 Intentions Refer to individual’s anticipated or planned future (purchase) behavior Survey Research Center at the University of Michigan phones 500 households monthly asking 50 core questions about consumer confidence and buying intentions for big-ticket items such as appliances, car, home (Consumer Confidence Index) Please indicate which of the following best describes your plan to buy ColaTurka? definitely would buy probably would buy undecided probably would not buy definitely would not buy

 Motivation A person’s motives tend to be more stable than his/her behavior A desire for status, for safety, etc. Mercedes vs. Volvo  Behavior Behavior data are becoming increasingly available through scanners and the Web

Behavior Checklist Purchase Behavior What and how much How Where When Who Use Behavior