1. Copyright © 2012 McGraw-Hill Ryerson Limited Ajax Persaud Shirley Lichti Dhruv Grewal Michael Levy Week Three Marketing Research

2. 4-2 Chapter Objectives LO1 Describe the five steps in the marketing research process LO2 Explain the differences between primary and secondary data, and determine when should each be used LO3 Identify various internal and external secondary data sources LO4 Describe the various primary data collection techniques LO5 Discuss ethical issues firms encounter when conducting marketing research LEARNING OBJECTIVES

3. 4-3 Chapter Roadmap

4. 4-4 E.D. Smith Focus groups and survey research used to generate new product ideas Dialogue in jam aisle On-the-spot taste tests provided new insights New products used less sugar LO1

5. 4-5 Marketing Research Consists of a set of techniques and principles for systematically collecting, recoding, analyzing and interpreting data that can aid decision makers involved in marketing goods, services or ideas. LO1

6. 4-6 When conducting research, why must researchers assure respondents that the information they provide will be treated as confidential? A)It is the law B)Customers will be more likely to make purchases C)Customers will be more likely to provide honest responses D)It is a requirement of the CMA Test Your Knowledge

7. 4-7 The Marketing Research Process LO1

8. 4-8 Step 1: Defining the Objectives and Research Needs What information is needed to answer specific research questions? How should that information be obtained? LO1

9. 4-9 Step 2: Designing the Research Project Type of data Type of research LO1,2

10. 4-10 How does syndicated data differ from secondary data? A)Secondary data tends to be more reliable B)Syndicated data only provides pricing trends C)Secondary data is not as readily available as syndicated data D)Syndicated data is purchased from a research firm Test Your Knowledge

11. 4-11 Advantages and Disadvantages of Secondary and Primary Data LO2

12. 4-12 Primary Data Data collected to adress the specific research need/questions currently under investigation, some include focus groups, surveys. Can eliminate some of the problems inherent to secondary data. Reliability : The extent to which you will get the same result if the study is repeated under identical situations Validity : the extent to which the study actually measures what it is supposed to measure. Sampling plan can affect them both. Sample : Segment or subset of the population that adequately represents the entire population of interest. To select it, ask : who should be surveyed, how big the sample, and what type of sampling (process of picking a sample)

13. 4-13 Step 3: Data Collection Process LO1,4

14. 4-14 How can a firm use exploratory research to uncover consumers’ attitudes toward their product/service? Using Exploratory Research LO4

15. 4-15 Exploratory Methods Observation In-depth interview Focus Group Projective Technique Social Medias LO4

16. 4-16 Which of the following research methods gathers qualitative data about initial reactions to a new or existing product or service, opinions about different competitive offerings, or reactions to market stimuli? A)focus groups B)in-depth interviews C)projective research D)all of these are correct Test Your Knowledge

17. 4-17 Conclusive Research Methods Descriptive: profiles a typical user or non-user of a particular brand according to a survey Experimental: Which experiment is preferred by customers Can be either: LO4

18. 4-18 Survey Research LO4

19. 4-19 What Not to Do When Designing a Questionnaire LO4

20. 4-20 LO4

21. 4-21 Web Surveying Response rates are relatively high Respondents may lie less It is inexpensive Results are processed and received quickly LO4

22. 4-22 What is the typical response rate for online surveys? A)1 – 2 percent B)10 – 15 percent C)30 – 35 percent D)40 – 45 percent Test Your Knowledge

23. 4-23 How do firms successfully use web surveying? Using Web Surveying LO4

24. 4-24 Experimental Research Experimental research by Microsoft for Vista LO4

25. 4-25 Using Experimental Research How can firms use experimental research to improve value for customers and the firm? LO4

26. 4-26 Case in Point: It’s Beginning to Smell a Lot Like Christmas Challenge Answer Results Retailers need to get shoppers into the holiday spending mood. Use an experiment to determine what factors in the retail environment contribute to customers “holiday spending mood”. Retailers who used holiday music and holiday scents together were viewed more favorably, the merchandise in the store was rated higher, and purchase intentions increased compared to retailers who used either alone or non-congruent music and scent. LO4

27. 4-27 Scanner Research Information Resources, Inc. AC Nielsen What if I reduce my price by 10%? IRI Website LO3,4

28. 4-28 Panel Research What are they buying or not buying? Group of consumersSurvey or sales receipts LO3,4

29. 4-29 Step 4: Analyzing Data Converting data into information to explain, predict and/or evaluate a particular situation. LO1

30. 4-30 Step 5: Presenting Results Executive Summary Body of the report Conclusions Limitations Supplements –Tables –Figures –Appendixes LO1 Analyst prepares the results and present them as a Marketing Research Presentation that includes :

31. 4-31 Which of the following should NOT be included in a marketing analysis results report? A)recommendations to management B)technical jargon C)supportive tables and figures D)methodology used Test Your Knowledge

32. 4-32 Ethical Dilemma 4.1: Watching Consumers Marketing research firms dedicated to watching consumers. Gather data that would not otherwise be available. Should researchers get consent prior to observing? LO5

33. 4-33 The Ethics of Using Customer Information Code of Standards and Ethics for Survey Research Bottom Line: Marketing research should be used only to produce unbiased, factual information. LO5