2. Marketing Research 7th Edition Aaker, Kumar, Day Business Research Skills: Essentials of Market Research WLU MBA BU 610 Workshop F.H.Rolf Seringhaus Professor Saturday, January 15, 2005

3. Marketing Research 7th Edition Aaker, Kumar, Day

4. Marketing Research 7th Edition Aaker, Kumar, Day Introduction The Market Research Process The Research Design Methods of obtaining Information What Information do we want? Summary

5. Marketing Research 7th Edition Aaker, Kumar, Day Introduction

6. Marketing Research 7th Edition Aaker, Kumar, Day Role of Market Research Specifies information required Designs method for collecting information Manages and implements data collection process Interprets results & communicates findings ©

7. Marketing Research 7th Edition Aaker, Kumar, Day

8. Marketing Research 7th Edition Aaker, Kumar, Day Ethics in Marketing Research Ethics of the Sponsor Overt and covert purposes Dishonesty in dealing with suppliers Misuse of research information Ethics of the Supplier Violating client confidentiality Improper execution of research Respondents Abuse Falsifying answers ©

9. Marketing Research 7th Edition Aaker, Kumar, Day Marketing Research in Practice Programmatic Research Develops market options through market segmentation, market opportunity analysis, or consumer attitude and product usage studies Selective Research Tests different decision alternatives such as new product testing, advertising copy testing, pre-test marketing, and test marketing Evaluative Research Evaluation of performance of programs

10. Marketing Research 7th Edition Aaker, Kumar, Day The Market Research Process

11. Marketing Research 7th Edition Aaker, Kumar, Day Overview of Research Process MR Process Evolves From Answers to Five Key Questions Why should we do research? What research should be done? Worth doing the research? How should the research be designed to achieve the research objectives? What will we do with the research?

12. Marketing Research 7th Edition Aaker, Kumar, Day 1.Problem definition & research questions 2.Exploratory research Secondary data Preliminary interviews 3. Formal research design (e.g., survey, experiment) 4. Data collection & analysis 5. Interpreting & reporting results Observation

13. Marketing Research 7th Edition Aaker, Kumar, Day Translate Problem into Research Objective… Problem/question: should our bank offer web banking (WB)? In which of three possible versions should the service be offered?

14. Marketing Research 7th Edition Aaker, Kumar, Day …Translate Problem into Research Objective… Research questions: Are consumers aware of WB systems? What are consumer reactions to WB? How do consumers react to service form A,B,C? What are the perceived benefits of each form of service?

15. Marketing Research 7th Edition Aaker, Kumar, Day …Translate Problem into Research Objective Research objectives: Determine consumer awareness with aided recall Measure attitudes and beliefs about WB Obtain ratings and rankings for each form of service Identify perceived benefits of, and objections to, WB

16. Marketing Research 7th Edition Aaker, Kumar, Day Manager’s checklist: When to use exploratory research when existing background information is limited to more clearly define problems or opportunities to clearly establish research objectives to determine if conclusive research is needed to help design a questionnaire for conclusive research to investigate in more depth the findings of a conclusive study

17. Marketing Research 7th Edition Aaker, Kumar, Day The Research Design

18. Marketing Research 7th Edition Aaker, Kumar, Day Research Design and Implementation Research Design The detailed blueprint to guide the implementation of a research study toward the realization of its objectives

19. Marketing Research 7th Edition Aaker, Kumar, Day Three types of market research exploratory descriptive causal degree ofunaware aware clearly problem defined definition possible sales decline? who’s buying? what do they situationinterest in what features prefer? product idea? preferred? which campaign more effective?

20. Marketing Research 7th Edition Aaker, Kumar, Day The Sampling Concept Universe > Sampling Frame > Sample > Respondents Sample minus respondents = non-respondents Respondents plus non-respondents = sample

21. Marketing Research 7th Edition Aaker, Kumar, Day

22. Marketing Research 7th Edition Aaker, Kumar, Day The Concept of Sampling Population Sampling Frame Sample Respondents

23. Marketing Research 7th Edition Aaker, Kumar, Day Our Poll shows 92% don’t tell the truth on Polls

24. Marketing Research 7th Edition Aaker, Kumar, Day Accuracy of Measurement Validity an attitude measurement has validity when it measures what it is supposed to measure Reliability consistency with which the measure produces the same results with the same or comparable population

25. Marketing Research 7th Edition Aaker, Kumar, Day Methods of obtaining Information

26. Marketing Research 7th Edition Aaker, Kumar, Day Basic Survey Methods Personal Interview Telephone Interview Mail Survey Internet Surveys

27. Marketing Research 7th Edition Aaker, Kumar, Day Personal Interviews: Advantages Can arouse and keep interest Can build rapport Ask complex questions with the help of visual and other aids Clarify misunderstandings High degree of flexibility Probe for more complete answers Accurate for neutral questions Do not need an explicit or current list of households or individuals

28. Marketing Research 7th Edition Aaker, Kumar, Day Personal Interviews: Disadvantages Bias of Interviewer Response Bias Embarrassing/personal questions Time Requirements Cost Per Completed Interview Is High

29. Marketing Research 7th Edition Aaker, Kumar, Day Telephone Interviewing: Advantages Central location, under supervision, at own hours More interviews can be conducted in a given time Travelling time is saved More hours of the day are productive Repeated call backs at lower cost Absence of administrative costs Lower cost per completed interview Intrusiveness of the phone and ease of call backs Less sample bias

30. Marketing Research 7th Edition Aaker, Kumar, Day

31. Marketing Research 7th Edition Aaker, Kumar, Day Telephone Interviewing: Limitations Inability to employ visual aids or complex tasks Can't be longer than 5-10 min. or they get boring Amount of data that can be collected is relatively less A capable interviewer essential Sample bias As all people do not have phones, or are not listed

32. Marketing Research 7th Edition Aaker, Kumar, Day Mail Surveys: Advantages Lower cost Better results, including a shorter response time Reliable answers as no inhibiting intermediary Survey answered at respondents discretion

33. Marketing Research 7th Edition Aaker, Kumar, Day Mail Surveys: Disadvantages The identity of the respondent is inadequately controlled No control over whom the respondent consults before answering the questions The speed of the response can't be monitored No control on the order in which the questions are exposed or answered Respondent may not understand questions No control over omissions, appropriateness of response Long response time

34. Marketing Research 7th Edition Aaker, Kumar, Day Mail Surveys: Disadvantages The respondent may not clearly understand the question and no opportunity to clarify No long questionnaires Subject to availability of a mailing list Response rate is generally poor Number of problems such as obsolescence, omissions, duplications, etc

35. Marketing Research 7th Edition Aaker, Kumar, Day Internet Surveys: some thoughts respondent needs computer skills respondent can choose own schedule for completion easy to incorporate complex branching questions can easily use respondent-generated words in questions throughout survey can accurately measure response time of respondents to key questions can easily display variety of graphics and directly relate them to questions eliminates need to encode data from paper speedier data collection, coding, analysis

36. Marketing Research 7th Edition Aaker, Kumar, Day What Information do we want?

37. Marketing Research 7th Edition Aaker, Kumar, Day What kind of information do we want to obtain? What people say they want> attitudes What people think is true> beliefs What people do> behaviour What people are> attributes

38. Marketing Research 7th Edition Aaker, Kumar, Day

39. Marketing Research 7th Edition Aaker, Kumar, Day Examples Attitudes a) should Personal Financial Advisors be legislated? Yes/No b) how do you feel about legislating Personal Financial Advisors? 1 - strongly oppose… 5 - strongly favour

40. Marketing Research 7th Edition Aaker, Kumar, Day Examples Beliefs: a) is this statement true or false: Personal Financial Advisors take advantage of older people: true/false b) do PFAs take advantage of older people? 1 - always … 6 - never

41. Marketing Research 7th Edition Aaker, Kumar, Day Examples Behaviour: a) have you ever used a Personal Financial Advisor? Yes/No b) do you think you will use the services of a PFA at some time in the future? 1-no, 2-unlikely, 3-very likely, 4-yes

42. Marketing Research 7th Edition Aaker, Kumar, Day Examples Attributes: a) are you currently married? Yes/No b) how many children have you had? None, 1, 2, 3… c) do you have an investment portfolio? Yes/No

43. Marketing Research 7th Edition Aaker, Kumar, Day Designing the Questionnaire Logical Steps to Develop a Good Questionnaire Plan what to measure Formulate questions to obtain the needed information Decide on the order and wording of questions and the layout of the questionnaire Using a sample, test the questionnaire for omissions and ambiguity Correct the problems (pretest again, if necessary)

44. Marketing Research 7th Edition Aaker, Kumar, Day Open-ended questions Question: Why did you purchase that automobile? Individual 1: it was on sale Individual 2: there were so many things I likes about it. It had a pretty green colour, comfortable seats, an AM/FM radio and CD player, got good gas mileage, had an 80,000 km warranty, a V6 engine. Oh, yes, it was also on sale, so I got a good deal on it.

45. Marketing Research 7th Edition Aaker, Kumar, Day Closed-response Questions There Are Two Basic Formats for Closed Ended or Structured Questions Choice from a list of responses Appropriate single-choice rating on a scale

46. Marketing Research 7th Edition Aaker, Kumar, Day Closed-response Questions: Advantages Easier to answer Require less effort by the interviewer Tabulation and analysis is easier Less potential error in the way the question is asked and the way it is recorded The responses are directly comparable from respondent to respondent

47. Marketing Research 7th Edition Aaker, Kumar, Day Closed-response Questions: Limitations Disagreement among researchers on the type of responses that should be listed The answer to a closed response question will be received no matter how relevant or irrelevant the question is in that context May not produce meaningful results Dichotomous questions are prone to a large amount of measurement error because the alternatives are polarized

48. Marketing Research 7th Edition Aaker, Kumar, Day Order Bias: Does The Question Create The Answer? 5.74. Asked about both advantages and disadvantages 0.03. Asked only about disadvantages 16.72. Asked only about advantages 2.81. No question asked Percentage of Respondents “Very Much Interested” in Buying New Product Questions Preceding Buying Interest Question

49. Marketing Research 7th Edition Aaker, Kumar, Day Guidelines for writing questions use simple words do not be vague keep it short be specific avoid bias do not be too specific do not talk down to respondents avoid objectionable questions avoid hypothetical questions

50. Marketing Research 7th Edition Aaker, Kumar, Day Sequence And Layout Decisions Open with an easy and non threatening question The questionnaire should flow smoothly and logically from one topic to the next Proceed from broad general questions to the more specific

51. Marketing Research 7th Edition Aaker, Kumar, Day Proposal Development Manager describes problem & states management question Researcher translates management question into research question Researcher explores alternative approaches Manager & researcher discuss proposal, clarify & redefine problem & objectives of project Researcher refines research question Researcher elaborates research question into investigative question (s) Researcher prepares proposal Manager reviews proposal Study begins They disagree They agree Not accepted accepted

52. Marketing Research 7th Edition Aaker, Kumar, Day Summary: What’s important in market research Understanding the role of market research Conduct research ethically Translating problem into research objective A clear research design Selecting the appropriate sample Choosing the right survey method Creating a clear, user-friendly questionnaire Pre-test before launching the survey