1. Descriptive Research Design Survey and Observation
Chapter VI
Descriptive Research Design Survey and Observation

2. Chapter Outline 1) Overview 2) Survey Methods
3) Survey Methods Classified by Mode of Administration
i. Telephone Methods
a. Traditional Telephone Interviews
b. Computer-Assisted Telephone Interviewing (CATI)
ii. Personal Methods
a. Personal In-home Interviews
b. Mall-Intercept Personal Interviews
c. Computer-Assisted Personal Interviewing (CAPI)
iii. Mail Methods
a. Mail Interviews b. Mail Panels
iv. Electronic Methods
a. Surveys b. Internet Surveys

3. 4) A Comparative Evaluation of Survey Methods
i. Flexibility of Data Collection
ii. Diversity of Questions
iii. Use of Physical Stimuli
iv. Sample Control
v. Control of the Data Collection Environment
vi. Control of Field Force
vii. Quantity of Data
viii. Response Rate
ix. Perceived Anonymity
x. Social Desirability/ Sensitive Information
xi. Potential for Interviewer Bias
xii. Speed
xiii. Cost

4. 5) Selection of Survey Method(s)
6) Observation Methods
i. Structured vs. Unstructured Observation
ii. Disguised vs. Undisguised Observation
iii. Natural vs. Contrived Observation
7) Observational Methods Classified by Mode of
Administration
i. Personal Observation
ii. Mechanical Observation
iii. Audit
iv. Content Analysis
v. Trace Analysis

5. 8) A Comparative Evaluation of Observational Methods
i. Degree of Structure
ii. Degree of Disguise
iii. Ability to Observe in Natural Setting
iv. Analysis Bias
v. General Remarks
9) A Comparison of Survey and Observational Methods
i. Relative Advantages of Observation
ii. Relative Disadvantages of Observation

6. 10) International Marketing Research
11) Ethics in Marketing Research
12) Internet and Computer Applications
13) Focus on Burke
14) Summary
15) Key Terms and Concepts
16) Acronyms

7. Survey Research is in the Cards for DEC
RIP 6.1
Digital Equipment Corporation (DEC) has made a conscious effort in the past years to shift from a product-driven focus to a more market-and consumer-driven focus. The product focus is not unusual in companies manufacturing hi-tech products. There is a serious need for market research in these hi-tech companies as they direct their products to the market. Still, market research in this arena is difficult. It is complicated by the rapid change of technology as well as the sheer size of the application market. Often the technology will be employed in many different industries.

8. RIP 6.1 Contd.
This holds true for the computer market where DEC is a key player. Computers are bought by individuals in every walk of life as well as by businesses in every market imaginable. The breadth of the market makes useful market research a formidable task. This task is being undertaken at DEC in their Corporate Marketing Services (CMS) Division.

9. 6.1 contd..
“Digital’s Corporate Marketing Services Division has been a core element in the company’s transition to a market-driven strategy.”
CMS is coordinating the company’s strategy to redefine their product from simply computers to a broader view of the business solutions. The CMS has employed many research techniques to gain a better understanding of the “business solutions” market. Both primary and secondary data are collected.

10. RIP 6.1 Contd.
Primary data are obtained through the use of phone and mail surveys as well as seminars and focus groups. Phone surveys have been used to define customer needs better and to direct products to the customers better. Mail surveys have been used to study customer purchasing habits as well as future purchasing plans. Seminars are held to gain feedback on the long-term production plans at DEC. Finally, focus groups are used to determine whether the chosen strategy is good and one that will effectively manage and use the market’s potential. Without CMS and marketing research, DEC would be facing the unknowns of their technology as well as the market. This combination of obstacles would have made the transition from a product-focused to a market- and consumer-focused company an impossibility.

11. A Classification of Survey Methods
Fig. 6.1
Survey Methods
Telephone
Personal
Mail
Electronic
In-Home
Mall Intercept
Computer-Assisted Personal Interviewing
Internet
Traditional Telephone
Computer-Assisted Telephone Interviewing
Mail Interview
Mail Panel

12. Some Decisions Related to the Mail Interview Package
Table 6.1
Outgoing Envelope
Outgoing envelope: size, color, return address
Postage Method of addressing
Cover Letter
Sponsorship Type of appeal Postscript
Personalization Signature
Questionnaire
Length Size Layout Format
Content Reproduction Color Respondent anonymity
Return Envelope
Type of envelope Postage
Incentives
Monetary versus non-monetary. Prepaid versus promised amount.

13. Mall-Intercept Interviews
A Comparative Evaluation of Survey Methods
Table 6.2
Mall-Intercept Interviews
Criteria
Phone/CATI
In-Home Interviews
Mail Surveys
Mail Panels
CAPI
Internet

14. Random Digit Directory Designs
Fig. 6.2
Adding a Constant to the Last Digit
An integer between 1 and 9 is added to the telephone number selected from the directory. In plus-one sampling the number added to the last digit is 1.
Number selected from directory: (exchange-block). Add one to the last digit to form This is the number to be included in the sample.
Randomizing the r Last Digits
Replace the r (r = 2, 3, or 4) last digits with an equal number of randomly selected digits.
Number selected from directory: Replace the last four digits of the block with randomly selected numbers 5, 2, 8, and 6 to form

15. Two-Stage Procedure
The first stage consists of selecting an exchange and telephone number from the directory. In the second stage, the last three digits of the selected number are replaced with a three-digit random number between 000 and 999.
Cluster 1
Selected exchange: 636
Selected number:
Replace the last three digits (230) with randomly selected 389 to form
Repeat this process until the desired number of telephone numbers from this cluster is obtained.

16. Sample Mailing Lists List Title Number on List Price
RIP 6.2
List Title Number on List Price
Advertising agencies $45/M
Banks, branches $85/M
Boat owners $50/M
Chambers of Commerce $45/M
Personal computer owners Inquire
Families Inquire
Hardware wholesalers $45/M
Magazines, consumers $45/M
Photographic, portrait $45/M
Sales executives $55/M
Wives of professional men $60/M
YMCA’s $85
Price shown is per 1000 names (/M), except where noted.

17. A Classification of Observation Methods
Fig. 6.3
Classifying
Observation
Methods
Observation Methods
Personal Observation
Mechanical Observation
Content Analysis
Trace Analysis
Audit

18. Building Accord According to Personal Observation
RIP 6.3
Honda Motor Co. had a lot of complaints on their sporty, restyled Accord (not big enough for U.S. drivers, not stylish enough for the Japanese drivers). Being afraid to lose its market, Honda sent teams to visit U.S. families and observe how the Americans used their Honda Accords. By personal observation, the teams found out that the Americans like lots of compartments for storing maps and change. The teams also actually took U.S. road trips in Accord and in Ford Taurus and Toyota Camry as its rivals in midsize cars. The results of this observation study were used to design a new 1998 Accord for U.S. drivers which has cubic feet for passenger space compared to cubic feet for Ford Taurus and 97.9 cubic feet for Toyota Camry. Moreover, Accord also delivered higher customer value by cutting the price. With these changes, Honda executives are expecting to increase U.S. sales to a total of 1 million units by the year 2000.

19. Using the results of personal observation studies, Honda customizes the Accord to world markets. U.S. Accord is designed as a family car by providing extra headroom and a roomy interior to keep up with the demands of its aging baby-boomers customers, while Japanese Accord is designed as a compact, sporty car loaded with high-tech gizmos aimed at young professionals. It is also smaller to adjust to narrower roads in Japan. Honda also paid attention to its European market. The 1998 Accord for European version was a short, narrow body customized to tiny streets in Europe but not losing its stiff and sporty ride aimed at the Old World drivers.

20. A Comparative Evaluation of Observation Methods
Table 6.3
Criteria Personal Mechanical Audit Content Trace
Observation Observation Analysis Analysis Analysis
Degree of structure Low Low to high High High Medium
Degree of disguise Medium Low to high Low High High
Ability to observe High Low to high High Medium Low
in natural setting
Observation bias High Low Low Medium Medium
Analysis Bias High Low to Low Low Medium
Medium
General remarks Most flexible Can be Expensive Limited to Method of
intrusive communications last resort

21. A Comparative Evaluation of Survey Methods for International Marketing Research
Table 6.4
Criteria Telephone Personal Mail Electronic
High sample control
Difficulty in locating
respondents at home
Inaccessibility of homes
Unavailability of a large
pool of trained interviewers
Large population in rural areas
Unavailability of maps
Unavailability of current
telephone directory
Unavailability of mailing lists
Low penetration of telephones
Lack of an efficient postal system
Low level of literacy
Face-to-face communication culture
Poor access to comps. & Internet ?
Note: A (+) denotes an advantage, and a (–) denotes a disadvantage.