1. Marketing Research
Lecture 6

2. Marketing Research Lecture 6
Concept Of Causality
Scientific notion of causality is very different from the common sense, every day notion
Common Sense: there is a single cause of an event. “X” is a cause of “Y” & “X” is indeed the cause
Scientific: “X” would only be one of the number of determining conditions.
Common Sense: for “X” to be a cause of “Y”, “X” must always lead “Y”.
Scientific: “X” can be a cause of “Y” if the occurrence of “X” makes the occurrence of “Y” more likely or more probable.
Common Sense: can prove that “X” is a cause of “Y”
Scientific: we can just infer but never prove a relationship.
Marketing Research Lecture 6

3. Marketing Research Lecture 6

4. Marketing Research Lecture 6

5. Marketing Research Lecture 6

6. What Are Causal Relationships In Marketing Decision Making?
Analysis
Marketing
Program
Development
Performance
Evaluation
What effect have recent price increases had on product class sales
Does the number of sales call per month affect the size the order placed?
Does advertising before khabarnama increase awareness of product A?
How has the new sales training program affected sales performance?
Marketing Research Lecture 6

7. Problems of Experimentation
Cost
Time
Control
Marketing Research Lecture 6

8. How Test Markets Help To Spot Product Flaws?
A dog food changed color on the store shelves
In cold weather, baby food separated into a clear liquid & a sludge
In hot weather, cigarettes in a new package dried out
A pet food gave the test animals diarrhea
Marketing Research Lecture 6

9. Marketing Research Lecture 6
Conti..
When it was combined with price reduction, a product change in a liquid detergent was thought by consumers to be dilution with water
Because of insufficient glue, over half of the packages came apart during transit
Excessive settling in a box of tissues caused the box to be one-third empty at purchase
Marketing Research Lecture 6

10. Problems Of Experimentation
According to a former director of corporate marketing research for General Mills, experimentation:
“..costs a mint, tells the competition what you’re doing, takes forever, and is not always accurate…. For the moment it’s the only game in town”
Marketing Research Lecture 6

11. Advantages & Disadvantages of Simulated Test Markets
Protect from competitors.
Faster & cheaper than full scale market tests.
Good to spot weak products before distribution on a national scale.
1.Do not know how well trade will accept the product.
2.Do not know how competition will react.
Marketing Research Lecture 6

12. Marketing Research Lecture 6

13. Marketing Research Lecture 6