1. Conducting Marketing Research
Ch. 29 ME

2. The Marketing Research Process
Section 29.1
The Marketing Research Process

3. The Marketing Research Process
Defining the Problem
Obtaining Data
Analyzing Data
Recommending Solutions
Applying the Results

4. Step 1: Defining the Problem
Problem definition – occurs when a business clearly identifies a problem and what is needed to solve it
Research can then create objectives that will help to answer problem(s)
Objectives are used to develop the actual questions that will be included in the research instruments

5. Step 2: Obtaining Data
Data are collected and examined in terms of the problem and problems being studied
Data means facts
Primary Data – are data obtained for the first time and used specifically for the particular problem or issue under study
Secondary Data – have already been collected for some other purpose other than the current study
Cost effective for a company to decide what secondary data is can use before collecting any primary data

6. How Secondary Data are Obtained
Obtained from both internal and external sources
Secondary data are most often collected in the following ways:
Internet: Company’s homepage & Digital dossiers (business clearinghouses)
US and State Government: State Dept. of Commerce, small business development centers, US Gov’t. agencies (census, labor statistics, etc.) & government publications (Statistical Abstract of the United States)
Specialized Research Companies: Mediamark Research, Inc.
Business Publications and Trade Organizations: Wall Street Journal and American Marketing Association

7. Advantages/Disadvantages of Secondary Data
Obtained easily
Existing data may not be suitable for the problem under study
May be sometimes inaccurate

8. How Primary Data are Obtained
Obtained through company research projects or specialized research organizations
Primary data are most often collected in the following ways:
Survey Method – is a research technique in which information is gathered from people through the use of surveys or questionnaires
Most frequently used method of collecting primary data
Census – survey of an entire small target population
This situation cannot occur, and time and money are limited
Instead, a sample of the entire target population is used
Sample – is a part of the target population that represents its accurately

9. How Primary Data are Obtained
Technological Methods
Through online surveys and focus group chat session on the Internet
Fax broadcasting
Automated dialers
Digital surveys
Interactive voice response

10. How Primary Data are Obtained
Interviews
Personal interview - involves questioning people face-to-face
Mall Intercept Interview - Conducted in central locations
Focus group – involves eight to twelve people who are brought together to evaluate
Advantage – often easier to get people to respond
Disadvantage – cost
Telephone Interview – quick, efficient, and relatively inexpensive
Mail Survey – is a relatively inexpensive way to reach a potentially large audience
Success rate is only 10%
Internet-based surveys – are quick and eliminate data entry
Allows for real-time data collection, multiple-choice questions, and open-ended, text-based answers

11. How Primary Data are Obtained
The Observation Method
Is a research method technique in which the actions of people are watched and recorded either by cameras or by observers
Properly performed and recorded observations supply better results than those obtained with survey techniques
Mystery shopping – is used to view the interaction between customers and employees
Mystery Shopper – is a researcher who poses as a customer and goes into a business to observe employees and operations
Disadvantages – cannot measure attitudes or motivation; provides what a person does, not why
Advantages – faster; people act normal since they are unaware; cost effective
Point-of-Sale Research – is a powerful form of research that combines natural observation with personal interviews to get people to explain buying behaviors

12. How Primary Data are Obtained
The Experimental Method
Is a research technique in which a researcher observes the results of changing one or more marketing variables while keeping other variables constant under controlled conditions
Is infrequently used for marketing research because of cost of setting up the research situation and the inaccuracy of the responses

13. Step 3: Analyzing Data
Data Analysis – is the process of compiling, analyzing, and interpreting the results of primary and secondary data collection
Data Mining – is a computer process that uses statistical methods to extract new information from large amounts of data

14. Step 4: Recommending Solutions to the Problem
The conclusions drawn from the research are usually presented in an organized and well-written report
Recommendations must be clear and well supported by the research data

15. Step 4: Recommending Solutions to the Problem
A typical report includes the following:
Title page
Acknowledgements of people who assisted in the research effort
Table of contents
List of tables, figures, charts and graphs
Introduction (include the problem under study, its importance, definitions, limitations of the study, and basic assumptions)
Review of the research information (including the results of the any secondary data reviewed for the research effort)
Procedures used (research techniques or techniques used to obtain primary data)
Findings
Recommendations
Summary and conclusions
Appendixes
Bibliography

16. Step 5: Applying the Results
Research may be inconclusive, additional research is needed or the research suggest specific courses of action
Carefully monitor the results
Research effort has been a success if decisions made as a result lead to increased profits through better sales, increased efficiency, or reduced expenses

17. Section 29.2
The Marketing Survey

18. Constructing the Questionnaire
As a major form of quantitative research, questionnaires should provide data that have validity
Validity - when questions asked measure what was intended to be measured
Research questionnaires should also have reliability
Reliability – exists when a research technique produces nearly identical results in repeated trials
To be valid and reliable, a questionnaire must be properly written, formatted, and administered

19. Writing Questions
Open-ended Questions – ask respondents to construct their own responses
Generate a wide-variety of responses that are sometimes difficult to categorize and tabulate
Forced-choice Questions – ask respondents to choose answers from possibilities given on a questionnaires
Are the simplest questions to write and the easiest to tabulate

20. Writing Questions Yes/No Questions Multiple-Choice Questions
Should only be used when asking for a response on one issue
Having a question that asks about more than one issue decrease validity and reliability
Most often used as filter questions
Multiple-Choice Questions
Give the respondent several choices
Make the options mutually exclusive and comprehensive enough to include every possible response

21. Writing Questions Rating Scale Questions Level of Agreement Questions
Rate a product or service based upon a scale
Variety of scales may be used
Level of Agreement Questions
Are statements that describe attitudes or opinions
Often easier to use descriptive statements

22. Basic Guidelines for Writing Questions
Each question should be written clearly and as briefly as possible
Use the same ranking or rating scales for all similar questions
Do not ask leading questions
Which suggest an answer
Avoid any bias
Which is a systematic error introduced by encouraging one outcome or answer over the others
Avoid questions that might cause a respondent to guess at the meaning
When finished, pre-test the wording of the questions to correct any mistakes

23. Formatting
Must have excellent visual appearance and design to appeal to respondents
Use dark ink on light paper with easy to read font
Short enough to be answered quickly
Sections headings or numbered sections
Numbers on each questions
Note a continue on next page if more than one page
Content Formatting
Directions must be clear for each section or group
General demographic questions are typically grouped together at the end

24. Administering the Questionnaire
All surveys should have deadlines for completion
A mailed questionnaire should be sent first-class with a high-signed cover letter, and it should be personalized if the person is known
Include pre-paid postage for return
In-Person Surveys
Questionnaires that are not mailed should have brief explanations for purpose
A plan for selection participants in a unbiased way
Incentives
Offer incentives to encourage people to participate