Chapter 29 Marketing Research The Marketing Survey …glencoe.mheducation.com/sites/dl/premium/007895312x/instructor/... · determine market size and growth ... ﬁ lled out a marketing

Discovery ProjectENGAGE

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Discovery Project Resources Send students to the Online Learning Center to download a rubric to evaluate their projects.

Visual LiteracyRead the chapter opener photo caption question to students: What do you think might be the advantages and disadvantages of this method of data collection? Advantages: The survey taker can personalize questions based on the interviewee. Respondents can offer more in-depth answers. Disadvantages: Surveys may not cover a representative sample of the population. Interviewees may answer based on what they think the survey taker wants to hear. Then ask these guiding questions.

Guiding Questions

Define What is marketing research?

the process of obtaining information needed to make effective marketing decisions

Explain Why do companies use marketing research?

to determine consumer’s attitudes and preferences; test product features; determine market size and growth potential; learn about competitive products; understand how the company is perceived by the public

The Purpose of Marketing Research Ask students if they have ever fi lled out a marketing survey. Ask what kinds of questions the survey contained. Then ask them the Discovery Project Essential Question: How can marketing surveys obtain important data for identifying customers’ needs and wants? Students should recall from Chapter 28 that marketing surveys are specially designed to obtain specific information needed by companies. Surveys provide many types of data, such as personal information and demographics, which help companies better serve their customers and increase profits.

676 Unit 9 · Marketing Information Management

Connection

DECA Event Role PlayConcepts in this chapter are related to DECA competitive events that involve either an interview or role play.

Performance Indicators The performance indicators represent key skills and knowledge. Your key to success in DECA competitive events is relating them to concepts in this chapter.

• Describe methods to design research studies.

• Describe options businesses use to obtain marketing-research data (e.g., primary and secondary research).

• Discuss the nature of sampling plans (i.e., who, how many, how chosen).

• Evaluate questionnaire design (e.g., types of questions, question wording, routing, sequencing, length, layout).

• Explain the use of descriptive statistics in marketing decision making.

DECA PrepRole Play Practice role-playing with the DECA Connection competitive-event activity at the end of this chapter. More information on DECA events can be found on DECA’s Web site.

Discovery Project

The Marketing SurveyHow can marketing surveys obtain important data for identifying customer’s needs and wants?

Essential Question

Project Goal You and a classmate have been hired to conduct marketing research for a vacation home manufacturer. Your team has been asked to develop a ten-question survey to gather information to identify people who currently own a home in your area, their willingness to purchase a vacation home, and their basic demographics. You have been asked to design a survey that addresses this information for the company.

Ask Yourself…• What questions will your team ask on the survey?

• How will you determine home ownership and vacation home interest?

• What types of demographic questions will you ask?

• How will you organize your survey instrument?

Synthesize and Present Research Synthesize your research by designing a ten-question survey that identifies people who currently own a home in your area and their willingness to purchase a vacation home.

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Activity Get a worksheet activity about marketing surveys.

Evaluate Download a rubric you can use to evaluate your project.

Chapter 29 · Conducting Marketing Research 677

Visual Literacy The personal interview is one method of collecting data for market research. What do you think might be the advantages and disadvantages to this method of data collection?

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Section 29.1Marketing Research

Section 29.2The Marketing Survey Chapter 29

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Student Edition

Teacher Edition

Student Activity Workbook with Academic Integration includes worksheets and activities correlated to the text.

Mathematics for Marketing Workbook provides math activities for every unit in the text.

TECHNOLOGY TOOLBOX Connect

ConnectPlus

ExamView Assessment Suite is a comprehensive solution for creating, administering, and scoring tests.

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Graphic Organizers for organizing text concepts visually. Digital Nation Activities and Green Marketer

Activities extend learning beyond the text features. Career Chatroom Career Profiles allow students to

explore different marketing occupations in depth. After You Read Answer Keys for students to check

their answers. Discovery Project Rubrics and Marketing Internship

Project Rubrics for students to evaluate their projects.

Student Activity Workbook with Academic Integration Teacher Annotated Edition includes annotated answers for the activities and worksheets.

Marketing Research Project Workbook provides a step-by-step approach for students to complete their own marketing research studies.

School-to-Career Activity Workbook helps students relate their class work to on-the-job experience and involves work-site analysis and working with mentors.

Competitive Events Workbook helps prepare students for state and national marketing education competitions.

Inclusion in the Marketing Education Classroom provides teaching resources for working with students with special needs.

PowerPoint Presentations provides visual teaching aids and assessments for this chapter.

Online Learning Center provides a variety of resources to enrich and enhance learning.

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Chapter 29

Introduce the ChapterChapter 29 introduces students to the methods used to collect data for marketing research. These main concepts are introduced and discussed:

• Marketing research process• Sources of primary data• Sources of secondary data• Constructing questionnaires• Administering questionnaires• Mailed surveys• E-mail and Web surveys• In-person surveys

Discussion StarterMarketing Research Ask students to brainstorm ways in which businesses decide to introduce new products and eliminate old ones. Students may suggest that if sales of a certain product are declining, the business will no longer sell it. Ask students: What might prompt a restaurant to add low-fat meals to its menu? Answers may include requests from customers and concern for customers’ health. Then ask: How can the restaurant determine if its customers are pleased with this addition? The restaurant can ask the customers and calculate sales for the new menu items. Tell students that getting feedback on menu items from customers is a form of marketing research. Tell students that in this chapter they will learn different methods businesses use to conduct marketing research.

Connection

Discuss the performance indicators listed in the DECA Connection feature. Explain to students that performance indicators tell them how to demonstrate their acquired skills and knowledge through individual or team competitive events.

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Competitive Events Workbook For more DECA Role Plays, send students to the Online Learning Center to download the Competitive Events Workbook.


ENGAGE

Anticipation ActivityImproving Student Achievement Read this scenario to students: A bakery owner wants to expand to include breakfast and lunch menu items. Ask: How can she decide whether her target market of middle-class, two-income families would support the expansion? informal interviews and/or a printed survey for customers to complete

Objectives• Explain the steps in designing and conducting marketing

research. define the problem, obtain data, analyze data, recommend solutions, apply the results

• Compare primary and secondary data. primary: the problem under study; secondary: another purpose

• Collect and interpret marketing information. data-collecting methods are survey, observation, and experimental methods

• Identify the elements in a marketing research report. title page; acknowledgments; table of contents; list of tables, figures, charts, and graphs; introduction; review of the research; procedures used; findings; recommendations; summary and conclusions; appendixes; and bibliography

Graphic OrganizerThe Marketing Research Process

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Graphic Organizer Send students to the Online Learning Center to print this graphic organizer.

Step 1: Defi ne the Problem

Step 2: Obtain Data Step 4: Recommend Solutions

Step 3: Analyze Data Step 5: Apply the Results


The five steps for conducting marketing research are defining the problem, obtaining data, analyzing the data, recommending solutions, and applying the results. Each step is performed in this order to arrive at solutions to a problem or research issue. Figure 29.1 on page 680 provides more details about each step in the research process.

Predict What would happen if one of the steps of research were omitted?

As You Read

STEP 1: DEFINING THE PROBLEM

The most difficult step in the marketing research process is defining the problem. Problem definition occurs when a business clearly identifies a problem and what is needed to solve it. The business identifies a research question and the information that is necessary to answer it.

For example, a convention and resort center wants to know whether its staff, services, and facilities are meeting the needs of its guests. The business needs this information so that it can continually improve its services as a resort and convention destination.

Conducting marketing research improves decision making and creates opportunities.

With the problem defined, the researcher can create objectives for the study that will help answer the research problem. Objectives might include determining customer satisfaction in the following categories: reservation procedures, accommodations, guest services, and meeting and recreational facilities.

The actual questions that will be included in the research instrument are formulated by first considering the objectives. You will learn more about writing questions later in this chapter. For now, you should know that objectives and questions must correlate with one another. Here are two examples:

Objective: Determine the level of guest satisfaction with the resort and convention center's facilities.

Question: On a scale of 1 to 5, with 1 being very poor and 5 being excellent, how would you rate the quality of the meeting facilities? (Please offer a rating for each of the facilities you used.)

Objective: Determine levels of satisfaction with the resort and convention staff services.

Question: On a five-point scale, with 1 being very unsatisfied to 5 being very satisfied, how would you rate the staff's courtesy? How would you rate the staff's friendliness?

These questions are necessary so that guests' ratings of the center's facilities and staff services can be analyzed separately. If each question was not included in the research instrument, each of the objectives could not be accomplished.

Every business faces limits in the form of time and financial resources. Therefore, all companies need to obtain the information necessary to solve the problems they identify and make the marketing decisions that are most important.

THE MARKETING RESEARCH PROCESS

Marketing Research

Sect

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READING GUIDE

MARKETING CORE FUNCTION

Marketing InformationManagement

ACADEMIC

English Language Arts NCTE 8 Use information resources to gather information and create and communicate knowledge.

Mathematics NCTM Number and Operations Understand the meanings of operations and how they relate to one another.

ScienceNSES E Develop abilities of technological design, understandings about science and technology.

NCSS National Council for the Social Studies

NCTE National Council of Teachers of English

NCTM National Council of Teachers of Mathematics

NSES National Science Education Standards

Common Core Writing Write informative/explanatory texts to examine and convey complex ideas and information clearly and accurately through the effective selection, organization, and analysis of content.

STANDARDS

Graphic Organizer Draw or print this chart to record the steps for conducting marketing research.

Objectives

• Explain the steps in designing and conducting marketing research.

• Compare primary and secondary data.

• Collect and interpret marketing information.

• Identify the elements in a marketing research report.

The Main Idea Marketing research provides insight for developing strategies that will increase sales and profits.

VocabularyContent Vocabulary• problem definition • primary data • secondary data • survey method • sample • observation method • point-of-sale research • experimental method • data analysis

Academic Vocabulary You will find these words in your reading and on your tests. Make sure you know their meanings.

• determine • specific

Reflect What research do you do when you are planning to buy a new product?

Before You Read

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Print this graphic organizer.

Step 1: Define the Problem

The Marketing Research Process


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Section 29.1

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ELL: Low-Risk EnvironmentGo to the Online Learning Center to view a video clip in which an author discusses the importance of creating a low-risk environment for English language learners.

Before You Read

Read the question aloud: What research do you do when you are planning to buy a new product? check prices for similar products at various retailers; go to Web sites that offer product information and evaluations to customers; ask friends and family if they have knowledge about the product Ask: What are the ultimate criteria for making your purchase? information collected from the various sources; cost; and friends’ influence

Preteaching VocabularyHave students go to the Online Learning Center at glencoe.com for the Section 29.1 Preteaching Vocabulary online quiz.

Content VocabularyDisplay the Content Vocabulary terms for the class. Then read the glossary defi nitions in a different order. As you read the defi nitions, ask students to identify which term goes with each defi nition.

Academic VocabularyDetermine—Alternate Meanings Display the Academic Vocabulary term determine and ask students to provide its meaning. to find out something; to set limits on something; to decide something; to influence something Then read the following sentence: A marketing information system is an internal way of collecting data to measure monthly sales, determine the geographic distribution of customers, track customer buying patterns, and identify popular items on the market. Ask: Which definition is correct for the way the term is used in the sentence? to decide something

Specific—Synonyms Display the term specific for the class to read. Ask students to fi nd and list synonyms for specific. exact, precise, definite, particular Read the sentence from the text that includes the term: Such data may include population demographics, specifi c markets, industries, products, economic news, export information, and legislative trends. Then ask volunteers to use the term in original sentences.

THE MARKETING RESEARCH PROCESSExplain to students that the marketing research process includes fi ve steps that help researchers arrive at solutions to a problem or research issue. Then ask these guiding questions to focus the discussion about the marketing research process.

Guiding Questions

Identify What are the fi ve steps of the marketing research process?

define the problem, obtain data, analyze the data, recommend solutions, apply the results

Explain When does problem defi nition occur?

when a business clearly identifies a problem and what is needed to solve it

Analyze Why must research questions correlate to objectives?

The objectives are used to develop the questions so that the questions are actually asking for the desired information.

As You Read

Read students the As You Read question: What would happen if one of the steps of research were omitted? Students should recognize that all the steps must be followed to make the marketing research process, and ultimately the overall results of the research, more powerful and effective.

Expert AdviceRead the quote to students:

Conducting marketing research improves decision making and creates opportunities.

Ask students: How does conducting marketing research improve decision making? It collects a variety of information pertinent to the decision so that the decision maker is more informed. Then ask: How does conducting marketing research create opportunities? It gives businesses insights, which can be used to create or improve products and promotional campaigns. Research can also help uncover needs and wants that are not being fulfilled, which are opportunities a company might be able to capitalize on.

Marketing Research


EXPLAIN

Visual Literacy Figure 29.1 Caption Answer Read the caption question to students: What can researchers do after the data are analyzed? Researchers can come up with potential solutions to the problem and present them in a report. Then ask students these guiding questions to focus the discussion about marketing research.

Guiding Questions

List What are the fi ve steps of the marketing research process?

defining the problem, obtaining data, analyzing data, recommending solutions, applying the results

Predict What might happen if the data for a research problem were not thoroughly analyzed?

The recommended solutions might be faulty, and the applied results might not have the desired outcome.

Mini Project

EnrichmentDefine the Problem To help students better understand Step 1: Defining the Problem, have the class brainstorm fi ve or six issues that need to be addressed at your school. Issues might include such things as adding more lockers, keeping trash picked up, offering more nutritious snacks, and so on. Compile a list of the issues they bring up, and then have them vote on the four most pressing problems. Then divide the class into four groups and assign one of the problems to each group. Have groups set goals to solve the problem and present their solutions to the class. As groups are presenting their solutions, have the rest of the class imagine that they are the school board and are considering the merit of each group’s solution. Tell students that the school board can only address one of the problems at this time. Based on the solutions presented, have the class vote on which problem to address. Tell students that the school board has limited funds but might be able to address additional problems if the solutions involve less time, money, or resources. Have groups revise their solutions based on these criteria. Ask groups to share their revised solutions with the class.


Marketing CASE STUDY

Smartphone maker Palm, Inc.®, needed to make a splash in the competitive smartphone

market with its new Pre phone, which takes aim at the best-selling iPhone® and Blackberry® devices. So, it created a quiet, subtle ad campaign around a woman who tells viewers of the phone’s benefits. One commercial in particular, though, went beyond subtle understatement.

Going with the FlowIn the “Flow” spot, a woman sits on a stone in the middle of a beautiful green field. She is surrounded by hundreds of people in orange suits doing choreographed movements. The screen switches to aerial views, revealing patterns and wave-like movements the dancers are creating, as the woman asks, “Isn’t it beautiful when life simply flows together?”

Palm Pre with the “Flow”

English Language ArtsAnalyze Define the problem that marketers might have identified as step two of the marketing research process for the Palm Pre product. List methods of obtaining marketing research data that Palm most likely used to find out which features shoppers want in a new smartphone. In what ways do you think Palm’s commercial reflects marketing research for the product and its potential customer base?

NCTE 8 Use information resources to gather information and create and communicate knowledge.

STEP 2: OBTAINING DATA The second step in the marketing research

process is obtaining data. During this second step, data are collected and examined in terms of the problem or problems being studied. The word data means facts. There are two types of data used in marketing research: primary and secondary. 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 purpose other than the current study. Secondary data are less expensive to collect than primary data. Therefore, it is most cost effective for a company to first decide what secondary data it can use.

Obtaining Data

Data that have already been

collected

Data that are collected for the first

time

Secondary Data Primary Data

SOURCES OF SECONDARY DATASecondary data are obtained from both internal

sources (inside the company) and external sources (outside the company). An excellent source of internal secondary data is the marketing information system of a business. A marketing information system is an internal way to collect data used to measure monthly sales, determine the geographic distribution of customers, track customer buying patterns, and identify popular items on the market. Secondary data are usually collected from a number of sources.

Internet Sources The Internet has increased the availability of

secondary data from a variety of sources. Some secondary information is available for free through a company’s home page. A company’s description of its products, services offered, locations, sales revenue, number of employees, product specifications, and pricing is often available. However, Web site information is used primarily for promotional purposes. So, any information obtained from Web sites should be verified through other, more objective sources.


The Marketing Research ProcessFive Research Steps Marketing research helps businesses find solutions to problems. There are five steps in the marketing research process. It begins with defining the problem or research issue. It ends with applying the results of the research. Following the steps in sequence is important because each step depends on the steps that come before it. What can researchers do after the data are analyzed?

FIGURE 29.1

The problem or research issue is identified and goals are set to solve the problem.

Researchers compile, analyze, and interpret the data.

Researchers obtain data from primary and secondary sources.

Researchers come up with potential solutions to the problem and present them in a report.

The research results are put into action.

Defining the Problem1

Analyzing Data3

Obtaining Data2

Recommending Solutions4

Applying the Results5


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STEP 2: OBTAINING DATA Explain that data collected in marketing research must relate to the problem being studied. Then ask these guiding questions.

Guiding Questions

Explain Why is it more cost effective for a company to use secondary data?

Secondary data have already been collected, so it is less expensive to use those figures than it is to gather primary data.

Discuss What is the purpose of a marketing information system?

A marketing information system is a way to collect data used to measure sales, determine the geographic distribution of customers, track buying patterns, and identify popular items on the market.

Graphic OrganizerDisplay this diagram. Ask: What are the sources of secondary data? Answers are provided in the graphic below. Then ask: What are the sources of primary data? Answers are provided in the graphic below. Write studen ts’ answers in the diagram.

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Critical ThinkingAsk students to determine whether the follow data are primary or secondary sources.

• A personal interview response to a new iPod® packaging design (primary)

• A U.S. government demographic report (secondary)• Statistics from the Small Business Administration on the number of

small business start-ups (secondary)• Apple’s® five-year sales figures (secondary)• Marketing research conducted by Kellogg’s® for a new breakfast

cereal (primary)• A jewelry store’s customer buying records (secondary)• Census data from the state of Oregon (secondary)• An opinion research poll conducted by Hewlett Packard® for a new

computer it plans to introduce next year (primary)• A supermarket survey conducted by a representative of a new ice

cream manufacturer (primary)• Statistics from a magazine on population growth in the U.S.

(secondary)

To extend this activity, divide the class into groups and have groups create lists of data sources. Then have groups exchange lists and identify the sources as primary or secondary.

Obtaining Data

Data that have already been collected

Data that are collected for the first time

Secondary Data Primary Data

Sources• Internet• U.S. and state government• Specialized research

companies• Business publications and

trade organizations

Sources• Survey method• Interview method• Observation method• Experimental method

Marketing CASE STUDY

English Language Arts Answer Marketers might have felt that they needed to get people to pay attention to their contribution to the smartphone market. Palm may have used secondary sources of information about features customers want in a smartphone. Palm may be targeting more mature smartphone users with their quiet, subtle ads. Their research may have found that there is an older target market for smartphones. The common in-your-face ads tend to appeal to a younger customer base. The more subtle commercials will likely appeal to a more mature customer base.


EXPLAIN Visual LiteracySecondary Research Data Caption Answer Read the caption question to students: What benefits and risks are involved in the use of secondary data? Benefits—the data have already been collected; secondary data are less expensive to collect than primary data; secondary data are readily available online. Risks—information available on company Web sites should be verified through objective sources. Ask students these guiding questions about secondary data.

Guiding Questions

Describe What types of data are available in the United States Census and the Statistical Abstract of the United States?

income, personal expenditures, age, and family size by ZIP code

Analyze Why might a company purchase data from a specialized research company?

The research company likely has more resources than the purchasing company; it would cost the purchasing company more to conduct their own research.

Mini Projects

EnrichmentResearch a Competitor Have students select a company that has a Web site, and then imagine that they work for a competing company. Tell students to search the Web site and collect data that might help their own business. Ask students to write a thorough report about the company using data they collect from the Web site. Have them include suggestions for their own company’s improvement based on the information obtained. Ask volunteers to share their reports with the class.

List Objective Source Have students work together in groups to create a list of sources they might use to verify data collected from a company’s Web site. Then have groups share their lists and compile a class list. Possible answers: Business clearinghouses, such as Hoover’s™ Online, Dow Jones Factiva®, Standard and Poor’s NetAdvantage®, LexisNexis®, and Mergent Online™.


The other disadvantage is that secondary data may sometimes be inaccurate. Federal census data are collected every ten years. As a result, projections based on the most the recent census may not be correct for the current year. Despite these limitations, a business should first investigate free or low-cost secondary data to solve a marketing problem.

SOURCES OF PRIMARY DATAWhen marketing researchers cannot find

information they need from secondary data, they collect primary data. Primary research data can be obtained through company research projects or specialized research organizations (see Figure 29.2). Large companies often have their own marketing research staff to conduct primary research. However, both large and small companies use research organizations. National research organizations contract with businesses and organizations to provide attitude and opinion, market, media, and product research services. The Nielsen Company®, Kantar Group®, Arbitron Inc.®, J.D. Power and Associates®, and Opinion Research Corporation® are some of the leading research organizations in the U.S. Primary data are collected using three methods: the survey method, the observation method, and the experimental method.

Examples of trade associations that provide marketing research include the Advertising Research Foundation, American Association for Public Opinion Research, American Marketing Association, Council of American Survey Research Organizations, and the Marketing Research Association. Check the Small Business Sourcebook or the Encyclopedia of Business Information Sources for major books, trade journals, and organizations in specific business categories.

Advantages of Secondary Data The greatest advantage of secondary data is

that it can be obtained easily. Secondary data are on the Internet, and often available free of charge. The data are also in corporate, public, and college libraries. The data are also available for purchase from syndicated services. The U.S. Census Bureau can provide nationwide data that would cost any firm a great deal of time and money to research on its own.

Disadvantages of Secondary Data There are two major disadvantages associated

with secondary data. First, the existing data may not be suitable or specific for the problem under study. For example, little or no secondary data exist for new or innovative products.

Primary Data Collection Methods Collecting Primary Data This chart shows the methods used to collect primary data by market research firms. Why do you think Internet surveys have replaced the telephone as the most popular method of data collection?

FIGURE 29.2

Method of Survey Data CollectionUsed by Marketing Research Firms

2007 2008

Internet 30% 46%

Telephone 42% 33%

Mall Intercept NA 7%

Mail 6% 7%

Mobile Phone 0% 4%

In-Person NA 0%

Hybrid (combines two or more methods) NA 3%


Digital dossiers, which provide company profiles on public corporations, income statements, and balance sheets, are available online for a fee. Business clearinghouses, such as Hoover’s™ Online, Dow Jones Factiva®, Standard and Poor’s NetAdvantage®, LexisNexis®, and Mergent Online™, are a few examples.

U.S. and State Government Sources State departments of commerce and small

business development centers can provide useful information. Data collected by U.S. government agencies can be accessed on the Internet for free or for a small fee. Such data may include population demographics, specific markets, industries, products, economic news, export information, and legislative trends. The Small Business Administration, U.S. Department of Commerce, U.S. Census Bureau, U.S. Securities and Exchange Commission, and the Bureau of Labor Statistics can also provide secondary data.

The United States Census and the Statistical Abstract of the United States contain hundreds of tables, graphs, and charts that can be useful when analyzing information. These publications feature data such as income, personal expenditures, age, and family size, in areas as small in size as ZIP code areas.

Specialized Research Companies An active and growing number of specialized

research companies, or syndicated services, also offer secondary data for business needs in print and electronic formats. Specialized companies sell demographic data, five-year forecasts, consumer purchase information, business data, census information, and consumer classification reports to businesses.

An example is Mediamark Research® Inc. (MRI), which provides comprehensive demographic, lifestyle, product usage, and exposure data to all forms of advertising media. MRI is the nation’s leading producer of multimedia audience research for advertisers, agencies, and magazines. The company also provides research for consumer marketing, brand loyalty, promotional opportunities, trade marketing services, and many other types of market research services.

Business Publications and Trade Organizations

Business publications, such as Forbes, Business Week, the Wall Street Journal, and Marketing Management Journal, are also good sources of secondary data. National and statewide trade associations often publish secondary data in articles, reports, and books.

Secondary Research Data

Important information can be obtained from a variety of secondary data sources like this Web site. What benefits and risks are involved in the use of secondary data?


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Critical ThinkingAsk students to suggest secondary sources where they might obtain information for the following scenarios:

• A company wants to know if consumers will continue to purchase 35mm cameras five years from now. Possible answer: visit the Web sites of 35 mm camera makers and find their projected sales for the next five years.

• A company wants to determine whether there is a demand for household cleaners in the international market. Possible answer: visit the Web site of one or more household cleaner manufacturers and find where they sell their products in the global market.

• A clothing company wants to know its chief competitor’s current prices for long-sleeved T-shirts. Possible answer: visit the competitor’s Web site and find the prices for the T-shirts.

Graphic OrganizerDisplay this diagram. Ask students: What are the advantages of using secondary data? Answers are provided in the graphic below. Then ask: What are the disadvantages of using secondary data? Answers are provided in the graphic below. Possible answers:

Secondary Data

Advantages Disadvantages

• Easily obtained• Often available free of charge• Available on Internet, in

corporate, public, and college libraries

• Available for purchase from syndicated services

• Available from U.S. Census Bureau

• Existing data may not be suitable or specific for the problem under study

• Little or no secondary data exist for new or innovative products

• Secondary data may sometimes be inaccurate

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Visual LiteracyFigure 29.2 Caption Answer Read the caption question to students: Why do you think Internet surveys have replaced the telephone as the most popular method of data collection? Internet-based research allows for real-time data collection, multiple-choice questions, and open-ended, text-based answers. They are also less intrusive than phone calls. The national do-not-call list also makes telephone solicitation illegal if the person called has registered and is on the list. Then ask these guiding questions to help students better understand Figure 29.2.

Guiding Questions

Identify In addition to Internet, which methods of survey data collection increased in use from 2007 to 2008 (do not include those listed NA in 2007)?

mail and mobile phone

Predict Notice that in-person data collection was used 0% by marketing research fi rms in 2008. Why do you think this is so?

In-person data collection is probably more expensive and more time consuming than other methods, which makes it less cost effective.

Mini Projects

ExtensionDevise a Scenario Divide the class into small groups. Ask students to create a scenario in which a small company might benefi t from hiring a research organization to collect primary data. Sample scenario: A company needs to collect information about people’s interest in outdoor sports in a nearby town where the company plans to open a new sporting goods store.

Research an Organization Have students select a national research organization such as The Nielsen Company®, Kantar Group®, Arbitron Inc.®, J.D. Power and Associates®, and Opinion Research Corporation®. Ask them to research the organization and write a review of the organization’s services, fees, and special interests.


EXPLAIN

Critical ThinkingAsk students to brainstorm examples of data that could be obtained only through primary research. Display students’ answers for everyone to read. Answers may include: customers’ satisfaction with products or services, future buying plans, personal brand preferences, and so on.

Mini Projects

EnrichmentResearch a Focus Group Ask students: What criteria might companies use to select participants for a focus group? Answers may include: geographic location, gender, or age. Now have students work in small groups to fi nd online or other focus groups and give a brief oral summary of what they found. Ask: Have any of you ever participated in a focus group? If so, how would you describe the experience? Encourage students to share their experiences in as much detail as possible.

Conduct Mall Intercept Survey Have students work in small groups to develop three questions to use in a mall intercept survey. Questions should ask participants if they have ever participated in a mall interview before and what the experience was like. Compile the questions into a class list and have the class choose the three best questions to use in the survey. Then ask volunteers to use the questions to interview people at a mall. (Students should obtain permission from their parents, the school, and mall offi cials before conducting interviews.) Have interviewers share their experiences and data with the class.


The moderator must direct the discussion to accomplish the objectives of the study. Focus group facilities usually include conference and observation rooms with audio and video equipment.

The Observation MethodThe observation method is a research

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 a form of observation that views interactions between customers and employees. A mystery shopper is a researcher who poses as a customer and goes into a business to observe employees and operations. A restaurant, for example, might want to observe the wait staff in their approach, sales presentation, product knowledge, and suggestion selling techniques.

Observation research is faster than conducting personal interviews, plus people are unaware that they are being observed, so they are acting as they normally would. This type of research is also cost effective.

Point-of-sale research is a powerful form of research that combines natural observation with personal interviews to explain buying behavior.

Point-of-sale researchers observe shoppers to decide which ones to choose as research subjects. Participants can be chosen based upon variables, such as time of day (morning, afternoon, or evening) or the product that was purchased.

After observation, researchers approach the selected shoppers and ask them questions. Shoppers can easily remember the reason why they purchased a product because they have just made the decision to buy. Researchers might also gain additional input from other family members or shopping companions.

The Experimental MethodThe experimental method is a research

technique in which a researcher observes the results of changing one or more marketing variables while keeping all the other variables constant under controlled conditions. The experimental approach can be used to test new package designs, media usage, and new promotions.

For example, a manufacturer may want to compare two different colors for its new laundry detergent packaging. One group of consumers is shown the proposed package color. The other group is shown the same product with different package colors. Each group’s responses are measured and recorded. Because only the package colors have been changed, the different responses are attributed to the color.

This type of survey can be administered through e-mail, Web sites, or corporate networks. What are some advantages of online surveys? Source: Hosted Survey™

Internet Surveys


E-mail surveys are surveys sent to a sample of people who are on a list of electronic-mail addresses. Respondents reply through e-mail. A Web survey is a survey uploaded to a Web site. People are asked to participate by visiting the designated Web site to answer questions online.

Data collection with e-mail and Web surveys is quick, since responses are automatically tabulated when they are completed. Disadvantages include having e-mail addresses and lists that are not accurate. Also, some people dislike receiving uninvited e-mail surveys, or lack computer proficiency or access to the Web. These disadvantages contribute to low response rates.

A standard mail survey is efficient and relatively inexpensive. Respondents are generally honest in their responses. Respondents are not interrupted with a phone call or e-mail message, and they can complete the survey at their leisure.

The telephone survey is a quick way to reach a potentially large audience (96 percent of households have phones). The use of mobile and smartphones for survey research is increasingly being used. However, the telephone method is somewhat limited by Do Not Call registry rules.

To increase response rates, some companies combine techniques, such as mail, Internet, and telephone invitations to take part in surveys.

The Interview Method The personal interview involves questioning

people face-to-face for a period of 10 to 30 minutes. Interviews can be conducted in individual homes and offices. But to reduce costs, researchers usually conduct interviews at central locations. Because centralized personal interviews first began in shopping malls, they are called “mall intercept interviews.” A major advantage of interviews is that it is easier to get people to respond to personal interviews than to Internet, telephone, or mail surveys.

Another form of personal interview is the focus group interview. A focus group interview involves 8 to 12 people who are brought together to evaluate advertising, a particular product, package design, or a specific marketing strategy under the direction of a skilled moderator.


The Survey Method The survey method is a research technique

in which information is gathered from people through the use of surveys or questionnaires. The surveys can be answered independently or by an interviewer, either in writing or orally. It is the most frequently used way of collecting primary data.

When designing a survey, marketers determine the number of people to include in a survey. Researchers can survey the entire target population if it is small. This is called a “census.” However, researchers usually cannot survey the entire target population because it is too large, and time and money are limited. Instead, researchers use a sample of the target population to get results.

A sample is a part of the target population that represents the entire population. The size of the sample depends on the amount of money the company has to spend and the degree of accuracy that is needed. Generally, the larger the sample, the more accurate are the results.

After determining the size of the population to survey, a marketer must decide what type of survey to conduct. Surveys can be conducted in person, by phone (using personal calls and prerecorded messages), by mail (regular and email), or by using the Internet. When the marketer decides exactly how to conduct the survey, he or she then writes the questions according to the type of survey that will be used.

Census The Census of 1790 was the first known survey in the United States. Marketing research for consumers was initiated in 1923 by Arthur Nielson.

HO T H O T T O P I CH O T HO T

T O P I C

Internet, Mail, and Telephone Surveys

Internet surveys are now the primary way of collecting primary data. Internet-based research allows for real-time data collection, multiple-choice questions, and open-ended, text-based answers. They are also less intrusive than phone calls.

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H O T H O T T O P I CT O P I CH O T H O T

T O P I C TO P I C


ELABORATE

Section 29.1

Graphic OrganizerDisplay this graphic organizer. Ask: What are the four sources of primary data? Survey Method, Interview Method, Observation Method, and Experimental Method. Label the four satellite shapes with these sources. Then ask students to provide details for each of the methods. Sample answers are provided in the graphic organizer.

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Critical ThinkingTell students that they work for an ice cream company that would like to conduct mall intercept interviews. Have students identify at least three central locations that might be ideal for gathering customer feedback. Answers may include: at the food court, near an ice cream store, in the center of the mall, outside a large anchor store, and so on.

Visual LiteracyInternet Surveys Caption Answer Read the caption question to students: What are some advantages of online surveys? They allow for real-time data collection, multiple-choice questions, and open-ended, text-based answers; and they are less intrusive than phone calls. Ask students: Have you ever participated in an online survey? If so, share your experience with the class. Encourage students who have participated in online surveys to share what the survey was about and whether they found the experience to be pleasant or unpleasant. Also, ask if the students received any incentive for answering the survey. Then ask these guiding questions to stimulate discussion about Internet surveys.

Guiding Questions

Explain What are some advantages and disadvantages of Internet surveys?

Advantages: data collection is quick; responses are automatically tabulated when they are completed. Disadvantages: e-mail addresses and lists may not be accurate; some people dislike receiving uninvited e-mail surveys; some people lack computer proficiency or access to the Web.

Compare and Contrast How are e-mail surveys and Web surveys alike? How are they different?

Both are conducted online and allow for real-time data collection, multiple-choice questions, and open-ended, text-based answers. E-mail surveys are sent to a sample of people who are on a list of electronic-mail addresses. Web surveys are uploaded to Web sites where people visit to complete the survey.

VIRTUAL BUSINESSMARKET RESEARCH

Introduce students to the concept of market research using Knowledge Matters’ Virtual Business Retailing visual simulation, Market Research. In this simulation, students learn how to collect market information and how to use the information to make their business more successful.

ExtensionInvestigate Attitude and Opinion Research Have students investigate how three different companies conduct attitude and opinion research. Make sure students include at least one local business in their exploration, such as a grocery store, post offi ce, or restaurant. For local businesses, students may visit the business and interview a manager. For other businesses, have students look online for examples of attitude and opinion surveys. Have students write a one-page report detailing their fi ndings. Reports should answer these questions: Do all of these businesses conduct research in the same way? If not, how do their approaches differ? Ask volunteers to share their reports with the class.

Mini Project

Survey MethodUses surveys or

questionnaires, can be answered independently or by an interviewer in

writing or orally

Observation Method

Actions of people are watched and recorded either by cameras or by

observers

Experimental Method

Researcher observes the results of changing one or more marketing variables

Interview Method

Involves questioning people face-to-face, can be conducted in homes,

offices, or central locations

Sources of Primary Data


ELABORATE STEP 3: ANALYZING THE DATA Tell students that collecting data is only part of the puzzle for arriving at a solution for the defi ned problem—the data have to be analyzed. Ask: What does it mean to analyze data? to compile, analyze, and interpret the results of the data collection Then ask these guiding questions about data analysis.

Guiding Questions

Define What is data mining?

a computer process that uses statistical methods to extract new information from large amounts of data

Explain What is the purpose of data mining?

It assists in predicting sales opportunities. It allows researchers to generate lists of survey respondents and to design surveys for primary data collection. Marketing information data are stored, sorted, and used to improve products and services.

Analyze How does data mining aid in data analysis?

It helps analyze data by extracting new information that only a mathematical search can identify.

Mini Projects

Differentiated InstructionInterpersonal Learners Divide the class into small groups. Have them discuss the process of data analysis and devise a method to teach the concept. Students might use visuals, repetition, or other ideas. Ask a volunteer from each group to explain the concept to the class. The process involves compiling, analyzing, and interpreting results of primary and secondary data collection. This data may be organized into a chart or other visual aid to clearly present the results.

Students with Learning Disabilities Divide the class into small groups. Have groups work together to learn the Content and Academic Vocabulary terms for this section (see vocabulary list on page 678). Students might make a card game in which they write the words and defi nitions on separate index cards and then match each word to its defi nition. After they learn the words, have students use them in original sentences.


Introduction (includes the problem under study, its importance, definitions, limitations of the study, and basic assumptions)

Review of the research information (including the results of any secondary data reviewed for the research effort)

Procedures used (research technique or techniques used to obtain primary data)

Findings Recommendations Summary and conclusions Appendixes

Bibliography

After You Read Section 29.1

For help, go to the Math Skills Handbook located at the back of this book.

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Check your answers.

Practice AcademicsScience 4. Locate the U.S. Census Bureau’s Web site and the County Business Patterns

Economic Profile for your county. Identify the number of employees in your county and the annual payroll for your county. Find the total estimated employment by size of business and industry that employs the most people. Make a pie or bar graph of the data that you find.

Mathematics 5. New research shows that 75 percent of an ice cream shop’s customers live

within one mile of the store, another 15 percent live within two miles of the store, and the remaining 10 percent live within five miles of the store. If the total number of customers is 6,820 at the ice cream shop, how many customers live within one mile of the store?

Math Concept Number and Operations: Percents A percent is a ratio that compares values to 100. A percentage can also be thought of as a part of a whole.

Starting Hints Convert the percent representing customers who live within one mile of the store to a decimal by moving the decimal point two places to the left. Multiply the decimal by the total number of customers to get the number of customers who live within one mile of the store.

Review Key Concepts 1. Name four sources of secondary data information for research studies.

2. Identify the three methods used to collect primary data.

3. Explain the difference between survey research and observation research.

NSES E Develop abilities of technological design, understandings about science and technology.

NCTM Number and Operations Understand the meanings of operations and how they relate to one another.


STEP 5: APPLYING THE RESULTSIn evaluating any research, managers may find

that the study was inconclusive and that additional research is needed. They may also conclude that the research suggests specific changes or new courses of action.

After the research has been completed and any actions are taken, a business should carefully monitor the results of those changes. A business needs to know whether the specific actions taken are successful. The research effort can be considered a success if the resulting decisions lead to higher profits in the form of increased sales, greater efficiency, or reduced expenses.

Question: How would you rate the quality of service provided by A-P Super Service, Inc.? (N = 120)

Rating Men WomenExcellent 30% 60%

Good 15% 10%

Average 20% 20%

Fair 20% 5%

Poor 15% 5%

As you can see, female customers of A-P Super Service, Inc., have a more favorable impression of the quality of service than the male customers have. This information shows the owner that the shop’s image among its male customers needs to be improved.

DATA MININGData mining is a computer process that uses

statistical methods to extract new information from large amounts of data. A database may contain subtle relationships or patterns that only a mathematical search process can identify. Competitive, demographic, site, and location data obtained through data mining assists in forecasting and predicting sales opportunities.

Data mining also allows researchers to generate lists of potential survey respondents and to design surveys for primary data collection. Marketing information data is stored, sorted, and used to improve new and existing products and services.

STEP 4: RECOMMENDING SOLUTIONS TO THE PROBLEM

Conclusions drawn from research are usually presented in an organized and detailed written report. Recommendations must be clear and well supported by the research data. A typical research report includes the following elements: Title page Acknowledgments of people who assisted in the

research effort Table of contents List of tables, figures, charts, and graphs

Experimental research can provide useful information. However, it is used less frequently than other methods. It is used less often because people usually respond differently in actual buying situations.

Impact of Technology Computer technologies have had a tremendous

impact on marketing research. Quantitative and qualitative survey research can be done on the Internet through e-mail and Web surveys, computer-aided Web interviewing, and focus group sessions. Audio-visual effects, graphics, company logos, and brands can be included in Internet surveys.

Computer-assisted, telephone-dialing surveys allow a prerecorded voice to qualify a respondent, and then to ask a series of survey questions. Automated dialers can be used to increase the number of telephone survey responses by placing multiple calls and automatically rejecting those with busy signals, answering machines, and voicemail.

Fax broadcasting allows businesses to send questionnaires to a select group of fax numbers. Interactive voice response is similar to voicemail as callers are greeted by a recorded voice that leads them through a series of questions. Responders use the telephone keypad to provide their answers.

STEP 3: ANALYZING THE DATAThe third step in the marketing research process

is data analysis. Data analysis is the process of compiling, analyzing, and interpreting the results of primary and secondary data collection.

A-P Super Service, Inc., created a customer survey about the quality and efficency of the auto mechanics’ repair service. A-P Super Service received 120 completed surveys. Answers were organized so that the percentage of men and women responding to each question was clearly shown. Data were cross-tabulated to determine such things as how men and women differ in their perceptions of the service. The answers to a question about the quality of service might be presented as shown in the following table. The number of respondents is given in parentheses after the question.


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ENGAGE EXPLORE EXPLAIN ELABORATE EVALUATESection 29.1

EVALUATE

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Answer Key Send students to the Online Learning Center to check their answers.

Practice AcademicsScience 4. Answers are dependent on information specific to

your county. Students should identify the number of employees in your county and the annual payroll for your county, find the total estimated employment by size of business and industry that employs the most people, and make a pie chart or bar graph of the data that they find.

Mathematics 5. The answer is 5,115 (6,820 × .75).

Review Key Concepts 1. Answers may include any four of the following: a

business’s marketing information system, Internet resources, government sources, specialized research companies, business publications and trade organizations.

2. The three methods of collecting primary data are the survey method, the observation method and the experimental method.

3. The survey method gathers information through surveys or questionnaires. The observation method collects data by observing people.


Graphic OrganizerDisplay this graphic organizer Ask students: What are the five steps of the marketing research process? Step 1: Defining the Problem; Step 2: Obtaining Data; Step 3: Analyzing Data; Step 4: Recommending Solutions; and Step 5: Applying the Results. Then ask students to provide details about each step. Sample answers are provided in the graphic organizer.

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Critical ThinkingDivide the class into small groups. Ask students the following question: After completing all five steps of the marketing research process, how will a company know if its research effort was a success? Have groups discuss the question and list as many answers as they can. Then have the groups come together and generate a class list of answers to the question. Answers may include: The company should monitor the decisions made as a result of the research; if the decisions lead to increased profits through better sales, increased efficiency, or reduced expenses, then the research was successful.

Step 5: Applying the Results Monitor changes made based on research results

Step 4: Recommending Solutions Present clear and well-supported conclusions in organized, detailed report

Step 3: Analyzing Data Compile, analyze, and interpret the results of primary and secondary data collection

Step 2: Obtaining Data Collect primary and secondary data; examine data in terms of problem(s) being studied; secondary data more cost effective; primary data may be more reliable

Step 1: Defining the Problem Identify a research question and the information that is necessary to answer it; create objectives that will help answer the problem; use objectives to construct questions


ENGAGE

Anticipation ActivityImproving Student Achievement Have students brainstorm a list of three problems for which a business might use marketing research. Display each problem as a column heading. Sample problems: to find out customers’ satisfaction with a product; to learn whether a new product might be successful. Then have each student choose one of the problems and write three questions that could be asked about the problem on a research questionnaire. Write their questions in the appropriate column. Then ask: Are the questions open-ended or forced-choice? Answers will vary depending on the type of questions students came up with.

Objectives• Design a marketing research survey. A valid and reliable

questionnaire must have questions that are well written and correctly formatted.

• Administer a marketing research survey. Basic guidelines include deadlines for completion and clear, concise instructions.

Graphic Organizer

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Conducting Marketing Research

Guidelines for Writing Questions Formatting Administering

In-person surveys

Incentives

Writing Questions1. Open-ended2. Forced-choice

a. two-choice b. multiple choice c. rating scales d. level of agreement


A questionnaire is a set of questions used to generate data in order to answer the research problem and accomplish the objectives of the study. Questionnaires should provide data that have validity.

A questionnaire has validity when the survey questions measure what was intended to be measured. For example, a researcher designs a questionnaire to measure customer satisfaction with a hotel’s lodging services. Questionnaires that are poorly written or that do not address lodging services will not have validity.

Compare What are the similarities between written survey instruments and scripted interviews?

As You Read

Research questionnaires should also have reliability. Reliability exists when a research technique produces nearly identical results in repeated trials. Reliability requires that the questions ask for the same type of information from all the respondents.

Questions should be clear and easily understood so that all participants understand the question in the same way. Asking a question in a restaurant survey such as “Was your food hot?” would not yield a reliable answer. “Hot” could be interpreted as either the level of spiciness or the temperature of the food.

A valid and reliable questionnaire must be well written, correctly formatted, and properly administered. A questionnaire directed at hotel guests may not be appropriate for the purchaser of a new vehicle. It is also important to ask questions only of customers who have actually used the product or service in question.

A well-constructed survey motivates people to complete questions and provide accurate information.

TYPES OF QUESTIONS Survey questions can be either open-ended

or forced-choice. Forced-choice questions ask respondents to choose answers from possibilities given on a questionnaire. Forced-choice questions are the simplest questions to write and also the easiest to tabulate. They can be two-choice, multiple-choice, or rating-scale questions. A two-choice question might ask respondents to provide a simple yes-or-no answer or to choose between one of two given answers. A multiple-choice question presents a short list of answers from which to choose. A rating-scale question asks for a ranking, such as "between 1 and 5." Respondents may also be asked to rank a list of specific activities or task in order of preference.

Open-ended questions ask respondents to construct their own response to a question. “What changes or additions to your hotel room would you recommend?” is an example of an open-ended question.

Some surveys have a space for general comments or suggestions. This type of open-ended question allows respondents to give opinions in their own words. Open-ended questions generate a wide variety of responses that are sometimes difficult to categorize and tabulate. As a result, most researchers prefer forced-choice questions.

CONSTRUCTING THE QUESTIONNAIRE

The Marketing SurveySe

ctio

n 29

.2


READING GUIDE

ACADEMIC

English Language Arts NCTE 1 Read texts to acquire new information.NCTE 12 Use language to accomplish individual purposes.

Mathematics NCTM Problem Solving Apply and adapt a variety of appropriate strategies to solve problems..

NCSS National Council for the Social Studies

NCTE National Council of Teachers of English

NCTM National Council of Teachers of Mathematics

NSES National Science Education Standards

Common Core Writing Conduct short as well as more sustained research projects based on focused questions, demonstrating understanding of the subject under investigation.

STANDARDS

Graphic Organizer Draw or print this chart to outline this section by listing headings, subheadings, and key concepts.

Objectives

• Design a marketing research survey.

• Administer a marketing research survey.

The Main Idea Marketing researchers must construct survey instruments that will provide valid and reliable information needed to make good business decisions.

VocabularyContent Vocabulary• validity • reliability • forced-choice questions • open-ended questions

Academic Vocabulary You will find these words in your reading and on your tests. Make sure you know their meanings.

• mutually • accurate

Predict Why is the survey method an important way to collect information?

Before You Read

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Print this graphic organizer. MARKETING CORE FUNCTION

Marketing InformationManagement

Writing Questions1.2. Forced-Choice a. b. c. d.

Guidelines forWriting QuestionsFormattingAdministering

Conductingmarketingresearch


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29.2

EXPLORE

Section 29.2

PROFESSIONALDEVELOPMENT

ELL: Elaborating on Student ResponsesGo to the Online Learning Center to view a video in which a teacher uses explanatory language to elaborate on a student response and places it in the context of the lesson.

Before You Read

Read the question aloud: Why is the survey method an important way to collect information? Surveys can be collected in organized and systematic ways to gather information about customer demographics, reasons for purchases, income levels, knowledge of competitor’s products, and customer satisfaction.

Preteaching VocabularyHave students go to the Online Learning Center at glencoe.com for the Section 29.2 Preteaching Vocabulary online quiz.

Content VocabularyDisplay the vocabulary terms for the class: validity, reliability, forced-choice questions, and open-ended questions. Ask students to predict the meanings of the terms. validity—questions asked on a questionnaire measure what was intended to be measured; reliability—a research technique produces nearly identical results in repeated trials; forced-choice questions—questions that ask respondents to choose answers from possibilities given on a questionnaire; open-ended questions—questions that require respondents to construct their own answers

Academic VocabularyMutually—Usage Read the following sentence to students: When constructing multiple-choice questions, it is important to make the options mutually exclusive and comprehensive enough to include every possible response. Tell students that in this sentence, mutually must be paired with exclusive to understand the usage. The term mutually exclusive, in terms of writing multiple-choice questions, means that the answers cannot all be true at the same time. To help students better understand this concept, display the days of the week for everyone to view. Ask students: Which is your favorite day of the week? Help students understand that there can be only one true answer to the question—the options are mutually exclusive.

CONSTRUCTING THE QUESTIONNAIRE Explain to students that constructing a good questionnaire involves much more than just writing some questions. Ask these guiding questions to focus the discussion on questionnaire construction.

Guiding Questions

Explain When does a research questionnaire have validity and reliability?

A questionnaire has validity when the questions measure what was intended to be measured. Reliability exists when a research technique produces nearly identical results in repeated trials.

Differentiate What is the difference between forced-choice questions and open-ended questions?

Forced-choice questions ask respondents to choose answers from possibilities provided on the questionnaire. Open-ended questions ask respondents to construct their own response to a question.

As You Read

Read the As You Read question aloud: What are the similarities between written survey instruments and scripted interviews? They both represent organized methods to ensure that the research questions are asked in a complete and well-defined systematic manner. Both methods usually survey a sample of the population and include some type of incentive to participate.

Expert AdviceRead the quote to students:

A well-constructed survey motivates people to complete questions and provide accurate information.

Ask students: Why would a well-constructed survey motivate people to complete it? If a survey seems too difficult or too confusing, people will not bother to complete it.

The Marketing Survey


Graphic OrganizerDisplay this chart. Ask students to provide other type questions discussed in the text. Possible answers:

Critical ThinkingTo help students better understand the concept of yes/no questions, provide them with the following example questions and ask them to explain why the questions are poorly constructed. Then ask students to rewrite and improve the questions.

• Was your hotel experience enjoyable and problem-free? The respondent may have different answers to “enjoyable” and “problem-free” but they are being asked to answer both in one question. Improvement: Was your hotel experience enjoyable? Was your hotel experience problem-free?

• Do you support the mayor’s view on education? The question assumes the respondent already knows the mayor’s view on education. Improvement: The mayor’s official view on education is . Do you support her view on education?

• Will you ever return to Los Angeles? The respondent may not know his future plans. Improvement: Do you plan to return to Los Angeles within the next year?

Open-ended Questions

Types of Questionnaire

Questions

Yes/no Questions

Rating-scale Questions

Multiple-choice Questions

Forced-choice Questions

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EXPLORE


RATING SCALE STATEMENTSIn some surveys respondents answer

statements rather than questions. They respond to belief or behavior statements to describe their attitudes, opinions, or preferences. A seven-point rating scale for a level of agreement rating scale might include completely agree (CA), somewhat agree (SA), agree (A) neither agree nor disagree (N), disagree (D) somewhat disagree (SD), and completely disagree (SD).

Below are examples of statements that might be used to measure attitudes and opinons in a health care questionnaire. The respondents relate their personal experiences to the statements when responding.

As you can see, if someone had to answer yes or no to these questions, the researcher might not get an accurate picture. That is why it is often easier to use descriptive statements for research on attitudes and opinions.

Indicate your level of agreement with the following statements:

Completely Agree

Somewhat Agree

Agree Neither Agree Nor Disagree

Disagree Somewhat Disagree

Completely Disagree

“I am extremely health conscious.”

CA □ SA □ A □ N □ D □ SD □ CD □“I do not like vegetables.”

CA □ SA □ A □ N □ D □ SD □ CD □“Eating low-cholesterol foods is important to me.”

CA □ SA □ A □ N □ D □ SD □ CD □“The cafeteria should serve heart-healthy foods.”

CA □ SA □ A □ N □ D □ SD □ CD □

Lost Respondents

Abandonment Rate by # of Questions70%

60%

50%

40%

30%

20%

10%

0%

1-5

6 -10

11-15

16-20

21-25

26-30

31-35

36-40

41-45

46-50

51-55

56-60

61-65

66-70

71-75

76-80

81-85

86-90

91-95

96-100

This graph shows the number of people who do not complete a survey based upon the number of survey questions. Based upon the data provided in this graph, what implications about survey research rates can you draw?


YES/NO QUESTIONS Two-choice questions give the respondent only

two options, usually yes or no. Yes-or-no questions should be used only when asking for a response on one issue. You could use a yes-or-no question to ask questions like these:

“Did you have a problem during your stay?”

□ YES □ NO

“If YES, did you report it to the staff?

□ YES □ NO

You would not ask: “Did you have a problem and did you report it?” The customer may have different answers for the two issues that the question addresses.

Having a question that asks about more than one issue decreases validity and reliability. Yes-or-no questions are most often used as filter questions. Filter questions help to guide respondents to answer only those questions that apply. In cases in which there is a range of choices and yes-or-no questions are not appropriate, you would use multiple-choice questions or rating-scale questions for your survey.

MULTIPLE-CHOICE QUESTIONS Multiple-choice questions give the respondent

several choices. When constructing multiple-choice questions, it is important to make the options mutually exclusive and comprehensive enough to include every possible response.

In order to be sure that all options are covered, many surveys have a space for the option “other.” For example, a rental company might ask its customers the following question:

When you have a choice of the car rental companies listed below, which do you prefer? (check one)

□ Alamo □ Hertz

□ Avis □ National

□ Budget □ Thrifty

□ Dollar □ Other _______

□ Enterprise

Offering the choice of “other” increases the reliability of a questionnaire. If “other” was not an option, respondents who use an unlisted car rental service might not give an answer at all, or they might choose an inaccurate answer from the list based on their limited choices. Either of these actions by respondents would result in misleading survey results.

RATING-SCALE QUESTIONS Other forced-choice questions may ask

respondents to rate a product or service based upon a scale. A variety of customer conditions, perceptions, and situations can be measured using rating scales.

Some of the most common rating scales measure levels of agreement, beliefs, frequency, importance, quality, satisfaction, and use. Examples of wording include a satisfaction scale that ranges from completely satisfied to completely dissatisfied, a quality scale that ranges from excellent to poor, or an amount-of-use scale that ranges from never use to frequently use.

Some questionnaires ask respondents to rate a product or service based on a percentage scale, on which 100 would be a perfect score. Others ask for ratings based on a numerical scale. Many consumer Web sites ask users to give products they purchase ratings of between 1 and 5 stars.

Research indicates that questionnaires which use five-point and seven-point rating scales result in the most reliability and validity. The following is an example of a five-point rating questionnaire used to rate the quality of front desk staff.

How would you rate the quality of service provided by the hotel’s front desk?

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Visual LiteracyLost Respondents Caption Answer Read the caption question to students. Based upon the data provided in this graph, what implications about survey research rates can you draw? The graph shows that the longer the survey, the higher the abandonment rate. Students should conclude that shorter questionnaires are more likely to be answered by respondents.

RATING SCALE STATEMENTSAsk these guiding questions about rating scale statements.

Guiding Questions

Explain Why is it often easier to use descriptive statements for research on attitudes and opinions?

It is difficult to get an accurate picture or a person’s attitudes or opinions with yes or no questions.

Predict Which would be easier to analyze the answers to yes/no questions or the answers to rating-scale questions?

It is more difficult to analyze the answer to rating-scale questions because there are more possible answers.

ExtensionWrite Multiple-Choice Questions Bring to class examples of multiple-choice surveys from the Internet. Have students guess what kind of company distributed each survey. Then ask students to guess the problem the survey was designed to address. Next, ask students to select a topic that interests them. Have them create their own survey about this topic to distribute to classmates. The survey should include 10–20 multiple-choice questions. Have students distribute the survey and compile the results. Ask students to share their results with the class.

Write Rating-Scale Questions Ask students to consider the following scenario: A small bookstore has been losing money since a larger bookstore opened in the same area. Some customers have mentioned that the new bookstore has a coffee bar and a reading lounge—things the small bookstore does not have. The owners are willing to expand their small bookstore, but need to know what customers really want. Ask students what questions the owners should ask if they distribute a survey to their current customers. Then have students write fi ve rating-scale questions to be used in the survey.

Mini Projects

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eMarketing Worksheet Activity Send students to the Online Learning Center to download an eMarketing worksheet activity.

Web Panels—Online Focus GroupsConsumer Web panel research is conducted by marketing research fi rms with access to a representative population in a geographic area. Since the marketing research fi rm has the demographic information of its panel members, the sample can be statistically accurate for any target population regarding age, gender, marital status, education level, etc. Online focus groups are essentially forum discussion groups (chat rooms) that take place online led by trained moderators. Effective online focus groups are usually limited to ten or fewer pre-selected participants. Open-ended discussion question scripts usually work best and allow the moderator to interject questions in response to what is discussed by the participants. Online focus groups are easily recorded so marketers can study transcripts of the sessions.

Innovate and CreateHave students design an online focus group for a topic of their choice. They should base their research on a specifi c research question and objectives. Their script (open-ended questions) needs to be correlated with the objectives in order to produce the information needed to answer the research question. For this exercise to be effective, it is best to keep the research question simple, appropriate for teens, and of interest to students. A research question may be “How can the school lunch program be improved? Or “How can school spirit be improved?” Objectives for the each of those studies may be to determine: current satisfaction; areas that need to be addressed; ideas for improving the current programs; and how students can be instrumental in implementing those ideas. The written report should include: research methodology, the specific research question, objectives, sample script (questions), findings, conclusions, and recommendations.

EXPLAIN


EXPLAIN BASIC GUIDELINES FOR WRITING QUESTIONS

Tell students that there are a number of guidelines that must be followed to create the best survey possible. Ask students these questions to focus the discussion about guidelines for writing questions.

Guiding Questions

Decide Determine whether the following question is a leading question: “How many people in your neighborhood are renters?” Explain your decision.

No, a leading question suggests a correct answer. This question will probably require guessing on the respondents’ part.

Analyze Why is it important that questions be written clearly and as briefl y as possible?

Possible answers: Respondents are more likely to understand the question if it is written clearly and more likely to complete a survey if the questions aren’t too long.

Answer Read the English Language Arts Activity: You have agreed to write a level-of-agreement survey for Ranch Market to assess consumers’ environmental attitudes. First, write three statements to assess beliefs or opinions. Next write three statements that assess whether consumers would buy green products at the market. Statements may assess their values (“The environment is important to me”), identity, and opinions. Statements should focus on behavior: “I always choose green products over conventional ones” or “I would pay more for green products at Ranch Market.”

The REEN arketerThe GREEN MarketerGREENGREEN

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Worksheet Activity Send students to the Online Learning Center to get a Green Marketer worksheet activity.


It is good practice to vary the format between the questions and the options. For example, you might set the questions in sentence format and options to questions or statements capitalized or set in boldface type. Another format would be to set the questions in sentence format and boldface type with options in sentence format. Questions and multiple-choice answer selections should be short. Instructions and other text used in the survey should use common language so they will be understood by respondents. Varying the format is also a good way to keep the survey interesting for the respondents.

You should place boxes □, circles �, or brackets [ ] next to your possible options. These symbols tell the respondents where they should place their answers.

CONTENT FORMATTING Directions for completing written surveys must be clear

for each section or group of questions. All of the questions need to be numbered. Questions generally follow a sequence starting with screening questions, and then leading to more specific questions.

Screening questions are asked at the beginning of the survey. For example, if an interviewer wanted to study the views of young adults, he or she might ask, “Are you between the ages of 18 and 29?” If the respondent answers yes, the interviewer administers the survey. If the answer is no, then the person would not be included in the study. Such information is placed at the beginning of a questionnaire only to “screen” or qualify a respondent. General and specific questions about the business are asked next.

Demographic questions are used to identify such traits as gender, age, ethnic background, income, and education. Demographic questions can help a business to determine, for example, that most of its customers live in the Northeast, are between the ages of 30 and 55, and have incomes between $45,000 and $65,000. Demographic profiles are typically grouped together at the end of a questionnaire. This is because respondents are more likely to answer personal questions after completing the other questions.

Lastly, many surveys provide an open-end section for comments and suggestions. Companies frequently ask permission to follow-up and provide a contact point, if respondents desire additional information.

Recall What are three types of questions used on surveys?

Reading Check

Scott LudwigsenExecutive Vice President

Phoenix Marketing International

Career Chatroom

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Read more about this career and complete a Career Exploration Activity.

I help clients determine how satis-fied their customers are, and what they can do to promote satisfac-tion. To accomplish this, I deter-mine the best marketing research methodology (phone survey, online survey, in-person intercepts, focus group), write the survey, and pro-vide status updates. I collaborate with colleagues, who analyze the data, and then present findings to the client.

Get along with those around you, be an active listener, and don’t be afraid to ask questions. Have a good work ethic. Arrive to meetings prepared and on time, and give credit to others where it is due. Set goals for your career and enjoy what you do.

Math and verbal skills are important to analyze data and explain your findings to others. It is important to learn to write questions in a way that will not bias responses.

What do you do at work?

What is your key to success?

What skills are most important to you?


BASIC GUIDELINES FOR WRITING QUESTIONS

Each question should be written clearly and as briefly as possible. Use the same rating scales for all similar questions. It is important not to ask leading questions, which suggest a correct answer. An example of a leading question is: “Do you prefer X or the more reasonably priced Z?” The phrase “more reasonably priced” could influence the respondents to answer Z.

You should avoid any bias, which is a systematic error introduced by encouraging one outcome or answer over the others. It is also important to avoid questions that might cause a respondent to guess at the meaning of your question. The following is an example of a question that might cause a respondent to guess:

How many students in your high school drink coffee on a daily basis?

□ Less than 10

□ 10–49

□ 50–99

□ 100–149

□ 150–199

□ over 200

Without asking every student in school, the respondent cannot answer the question without guessing.

When a survey questionnaire is finished, it is a good idea to pretest the wording of the questions. This pretest allows for correction of any misleading questions, directions, or problems on the questionnaire.

FORMATTING Questionnaires must have good visual appearance and

ample white space for respondents. Different colors and typefaces can add to the design appeal, but use no more than two different ink colors and typefaces. The preferred color for most surveys is black on light paper and an easy-to-read font, such as Times Roman.

The questionnaire should be short enough to be answered quickly. Distinct headings should be placed on all individual survey sections. Numbers should be placed on all individual questions. If your questionnaire requires more than one page, place a note on the bottom of each page to continue to the next page.

Convincing the Green ConsumerConsumers’ spending does not always match their attitudes. Many Americans say they value environmentalism, yet relatively few buy green products. Market research shows that consumers are more likely to switch to green items, however, if they are told about their specific benefits.

Package Benefits Seventh Generation®, for example, states on its packaging that if every family replaced just one roll of nonrecycled toilet paper with a recycled roll, we could save 448,000 trees every year.

English Language ArtsCreate You have agreed to write a level-of-agreement survey for Ranch Market to assess consumers’ environmental attitudes. First, write three statements to assess beliefs or opinions. Next write three statements that assess whether consumers would buy green products at the market.

NCTE 12 Use language to accomplish individual purposes.

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Get an activity on green marketing.

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ELABORATE

Section 29.2

Graphic OrganizerDisplay this chart. Record students’ answers in a list. Possible answers:

Formatting Questionnaires

1. Provide good visual appearance and ample white space.

2. Use different colors and typefaces.

3. Use black ink on white paper and easy-to-read font.

4. Make it short enough to be answered quickly.

5. Place distinct headings on all individual survey sections.

6. Number individual questions.

7. Place a note to remind respondents to go to next page if needed.

8. Vary the format between questions and options.

9. Provide clear directions for each section or group of questions.

10. Include screening questions if appropriate.

11. Include demographic questions if needed.

12. Provide for comments and suggestions if desired.

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Critical ThinkingTo reinforce students’ understanding of appropriate formatting techniques for questionnaires, have them list fi ve ways to strengthen the visual appearance of a questionnaire. Answers may include: provide ample white space, use different colors, use different typefaces, use black ink on white paper, and use an easy-to-read font. Then have students fi nd or create an example of a well-formatted questionnaire and an example of a poorly-formatted questionnaire. Have students write a two- or three-sentence critique of each questionnaire and share them with the class. Critiques will vary but should show students’ understanding of what a well-formatted questionnaire should look like. Then share with students this scenario: Your coworker has developed a survey but the appearance and content are too casual. They would be appropriate for friends, but not for a formal survey. Write a memo to your coworker tactfully explaining how the survey could be revised. Memos should be tactful but clearly explain why they survey is too casual.

Read the Reading Check question to students: What are three types of questions used on surveys? yes/no questions, multiple choice, and rating scale questions

Reading Check Answer

Mini Project

EnrichmentAnalyze Online Surveys Have students locate and take an Internet survey designed specifi cally for teens. After they complete the survey, have them print out a copy to bring to class. Divide the class into groups, and have groups analyze the survey questions. Students should determine the types of questions used, whether there are leading questions, if the wording is clear, and so on.

Career Chatroom

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Career Exploration Send students to the Online Learning Center to fi nd more information about this career and to get a Career Exploration activity.

Use these questions to focus the discussion about the feature.

Guiding Questions

Explain What does Mr. Ludwigsen mean when he says to “be an active listener”?

Remind students that in Chapter 8 they learned how to be an effective (active) listener. Active listeners identify the purpose, look for a plan, give feedback, search for a common interest, evaluate the message, listen for more than verbal content, listen for a conclusion, and take notes.

Analyze Why do you think the fi rst skill Mr. Ludwigsen mentioned is “get along with those around you”?

Possible answer: In any business you must be able to get along with those around you to be able to build good working relationships and provide customers with what they need.


ELABORATE

Visual LiteracyPersonal Interviews Caption Answer Read the caption question to students: What are some of the expenses involved with personal or in-depth interviews? Answers may include: Paying for training for the interviewers, analyzing the data, and transportation. Ask: Have you ever participated in a personal interview? If so, where was it conducted? Students may have participated in mall-intercept interviews or other types of store-related or on-the-street interviews.

Critical ThinkingAsk students to imagine that they are going to conduct a survey to learn where hip, young people like to shop for clothing. Ask: What type of survey would you create? Explain your answer. Answers may include: an online survey because hip, young people often spend time on the Internet; a mall-intercept because you can talk to the people face-to-face and determine whether they really are hip and young. Ask students to share their answers and reasoning with the class.

ADMINISTERING QUESTIONNAIRES Ask students these guiding questions to focus the discussion on administering questionnaires.

Guiding Questions

Identify What two things must surveys always have?

deadlines for completion and clear and concise instructions

Analyze What are some benefi ts of in-person surveys?

They can provide very detailed information; they can be used to explore issues and options to a greater extent than written surveys; reactions to visual materials can be collected.


INCENTIVES Many marketing researchers offer incentives

and set deadlines for completing surveys to increase response rates. For example, to get a quicker response, a company may enter the first 100 respondents into a drawing for a cash prize; or each participant may receive a gift card or a discount on the company’s product. Other incentives might include token gifts such as notepads, pens, refigerator magnets, mini calendars, key rings, participation in a raffle or lottery, or a donation to a charity in the respondent’s name. Studies have shown that incentives do work to increase response rates, so it may be a wise investment for companies to consider.



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Check your answers.

Practice AcademicsEnglish Language Arts 4. Perform library or online research on a recent opinion poll or survey of a

local, state, or national issue. Write a one-page summary, noting when the poll was conducted, the issue that was researched, and the findings.

Mathematics 5. A gift store conducts a study to estimate yearly sales. Use the following data

to estimate yearly sales for the gift store: 700 people pass the store each day, 5 percent enter the store and spend an average of $23, and the store is open 356 days during the year.

Math Concept Problem Solving: Multi-Step Problems When solving problems that require multiple steps, list the information given in the problem as well as the particular points that need to be resolved.

Starting Hints Determine the number of people that enter the store by multiplying the decimal equivalent of 5 percent by the total number of people that pass the store each day. Multiply the number of people that enter the store each day by the average amount of money spent by each person to determine the average sales each day.

Review Key Concepts 1. Explain the difference between validity and reliability.

2. Discuss important considerations for constructing options for multiple-choice questions.

3. Explain why it is important that surveys have a strong visual appearance.

NCTE 1 Read texts to acquire new information.

NCTM Problem Solving Apply and adapt a variety of appropriate strategies to solve problems.

The Right Number When conducting personal interview surveys, you should have between 7 to 15 times more names than the number of completed surveys that you desire.

H O T CT O P I C

H O T O T T O P I CPIC


Personal interviews can be useful when you need to collect detailed information from a relatively small group of people. Interviews can be used to explore issues and options to a greater extent than written surveys. In a personal interview, reactions to visual materials, such as ads or actual product samples, can be collected.

ADMINISTERING QUESTIONNAIRES Include a well-written cover letter. The

respondent’s next impression comes from the cover letter. The cover letter provides your best opportunity to convince the respondent to complete the survey. The cover letter or introductory remarks should explain the purpose of the survey. It also should clearly state the deadline for returning the questionnaire. A postage-paid return envelope should be included with the questionnaire for the respondent’s convenience. However, you should also print the return address on the questionnaire itself because questionnaires are easily separated from the reply envelopes.

E-MAIL AND WEB SURVEYSAs with traditional mailed surveys, e-mail and

Web surveys should be brief. E-mail and Web surveys should limit the number of screens that respondents have to scroll through to answer questions or statements.

Graphics and images can enhance the appearance of a Web survey. However, too many graphics or excessive use of animation can be distracting. Annoyed respondents are not likely to complete the survey. Internet surveys should allow respondents to stop and complete the survey at a later time.

IN-PERSON SURVEYS Questionnaires that are not mailed should

have a brief explanation of the survey’s purpose placed on the questionnaire itself. A plan should be established for selecting participants in an unbiased way. Whether done in the repondent’s home, over the phone, or in a mall, it is important that the interviewer be skilled and discreet. The interviewer should have the ability to answer questions from the respondents. The interviewer should recognize when it may be appropriate to ask more complex or sensitive questions.

Personal interviews can provide very detailed information, but they require special training to conduct effectively, can be time-consuming, and might be difficult to analyze and interpret.

Personal Interviews

This expensive marketing research technique is used when expert opinions are needed or to get very detailed information from customers. What are some of the expenses involved with personal or in-depth interviews ?


The response rate for most surveys is only ten percent or less, so proper administration can improve response rates. All surveys should have deadlines for completion. All surveys should also include clear and concise instructions on how to complete the questionnaire. These must be very easy to understand, so use short sentences and basic vocabulary.

Types of SurveysMailed Surveys E-mail Surveys

In-Person Surveys Web Surveys

MAILED SURVEYSA mailed questionnaire should be sent first-

class with a hand-signed cover letter, and it should be personalized if the potential respondent is known. First impressions are important, so make the envelope stand out. Envelopes with bulk mail permits or generic labels are perceived as unimportant. This will generally produce a lower response rate.

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EVALUATE

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Send students to the Online Learning Center to check their answers.

Practice AcademicsEnglish Language Arts 4. Answers will vary depending on the issues students

chose to research. Accept all reasonable answers that list when the poll was conducted, identifies the issue, and summarizes the findings.

Mathematics 5. $286,580 (700 × .05 × $23 × 356)

Review Key Concepts 1. Validity is when the questions asked measure what

was intended to be measured. Reliability exists when a research technique produces nearly identical results in repeated trials.

2. Options must be mutually exclusive and comprehensive enough to include every possible response.

3. Questionnaires must have an excellent visual appearance and design to appeal to respondents.


Graphic OrganizerDisplay this diagram. After students have read the Administering Questionnaires section, ask them to provide details for administering each of the three types of surveys discussed in the text. Write their answers in the diagram. Possible answers:

Administering Questionnaires

Mailed Surveys• Include well-

written, hand-signed cover letter

• Personalize letter if possible

• Send first class• Explain purpose

of survey• Include postage-

paid return envelope

E-mail and Web Surveys

• Make them brief• Limit the number

of screens respondents must scroll through

• Use graphics and animations carefully

In-person Surveys

• Include explanation of purpose

• Conduct interview skillfully and discreetly

• Recognize when appropriate to ask more complex or sensitive questions

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The Right Number Ask students to do online research to � nd the results of completed surveys. Have them � nd the response rate to the surveys and compare to the average response rate of ten percent or less.

H O TH O T T O P I CT O P I CH O T H O T

T O P I C TO P I C

EVALUATE

Visual Summary Express Creativity Ask students to develop their own visual summary of a concept in the chapter. Encourage students to use different formats for their visual summaries, such as a storyboard, a timeline, a table, a tree diagram, or a word web. Visual summaries will vary depending on the concept depicted. Questions to ask when assessing a visual summary include:

• Is the summary clear, economical, and simple?• Are any important steps left out?• Are steps or concepts arranged in the same order as the

original?• Does the summary reveal a pattern that connects the details?• Does the summary locate and highlight the most important

information?

Review Content Vocabulary and Academic Vocabulary 1. problem definition—process by which a business identifi es a

problem

primary data—data obtained for the fi rst time and used for an issue under study

secondary data—data that have been collected for some other purpose

survey method—a technique in which information is gathered through the use of surveys

sample—a part of the target population

observation method—technique in which people’s actions are watched

point-of-sale research—research that combines natural observation with personal interviews

experimental method—technique in which a researcher observes the results of changing one or more marketing variables

data analysis—process of compiling, analyzing, and interpreting the results data collection

validity—when questions asked on a questionnaire measure what was intended to be measured


Review and Activities

Assess for Understanding 2. Sequence What are the steps for designing and conducting marketing

research?

3. Define What do the terms primary data and secondary data mean?

4. Explain How do marketers apply the data-analysis process to collect marketing information?

5. List What are the elements in a marketing research report?

6. Evaluate What are important design features for constructing a marketing research survey?

7. Identify What procedures are used to administer a marketing research survey?

8. Contrast What is the difference between the definitions of open-ended questions and forced-choice questions?

9. Provide What is an example of interviewer bias being introduced into a questionnaire?

Content Vocabulary• problem definition (p. 679) • primary data (p. 681) • secondary data (p. 681) • survey method (p. 684) • sample (p. 684) • observation method (p. 685)• point-of-sale research (p. 685)• experimental method (p. 685)

• data analysis (p. 686) • validity (p. 689) • reliability (p. 689) • forced-choice questions

(p. 689)• open-ended questions

(p. 689)

Academic Vocabulary • determine (p. 681) • specific (p. 683) • mutually (p. 690) • accurate (p. 691)

Review Content Vocabulary and Academic Vocabulary 1. Write each of the vocabulary terms below on an index card, and the definitions

on separate index cards. Work in pairs or small groups to match each term to its definition.

Written Summary• The five steps that a business follows when conducting marketing research are defining the problem, obtaining

data, analyzing data, recommending solutions, and applying results.

• Steps are performed sequentially to find solutions or research an issue.

• Questionnaires should provide data that are valid and reliable.

• Marketing surveys may include open-ended and forced-choice questions.

• Forced-choice questions include yes/no, multiple-choice, rating scale, and level of agreement questions.

• To obtain unbiased data and increase response rates, market researchers must follow guidelines when constructing, formatting, and administering surveys.


Visual Summary

Questionnaires use different types of questions and surveys have different formats to obtain information from respondents.

Conducting marketing research involves these steps: defining the problem, obtaining data, analyzing data, recommending solutions, and applying results.

Conducting Marketing Research

Chapter 29

MARKETING RESEARCH

QUESTIONNAIRES

Types of Questions

Yes-or-No Multiple-Choice Scale

Types of Surveys

Mail In Person E-mail Web


STEP 2: Obtain the Data

STEP 3: Analyze the Data

STEP 4: Recommend

SolutionsSTEP 5: Apply

the ResultsSTEP 1: Define the Problem

y


EVALUATE

Chapter 29

Review Content Vocabulary and Academic Vocabulary (continued)

reliability—when a technique produces nearly identical results in repeated trials

forced-choice questions—questions that ask respondents to choose answers from a questionnaire

open-ended questions—questions that require respondents to construct their own answers.

Assess for Understanding 2. The five steps for designing and conducting marketing research

are: (1) defining the problem; (2) obtaining data; (3) analyzing data; (4) recommending solutions; and (5) applying the results.

3. Primary data are obtained to address the problem under study. Secondary data are collected for some other purpose and are also readily available at little or no cost, should be used before primary data.

4. Marketers compile, analyze, and interpret marketing information to better understand the market and to increase sales and profitability.

5. The elements in a marketing research report include: title page; acknowledgments; table of contents; list of tables, figures, charts, and graphs; introduction; review of the research; procedures used; findings; recommendations; summary and conclusions; appendixes; and bibliography.

6. Important design features for constructing a marketing research survey include: excellent visual appearance and ample white space; use of dark ink; easy-to-read typefaces; surveys that are designed to be short; all sections are identified; all questions are numbered; questions are short; use of common language; and use of symbols for answers.

7. Procedures to administer a survey include the following for mailed questionnaires: use cover letter, explain the purpose, indicate deadline, and use a postage-paid return envelope. For Internet surveys: limit the screens, use graphics, allow respondents to stop and complete survey later. For in-person surveys: state purpose, select people in an unbiased way. All methods can use incentives and deadlines to encourage rapid and completed surveys.

8. Open-ended questions require respondents to construct their own answers, while forced-choice questions ask respondents to choose answers from possibilities provided on a questionnaire.

9. Answer should demonstrate an understanding of the concept of bias; bias could be introduced by asking leading questions, or asking questions that require respondents to guess the answer.


EVALUATE

Communication Skills 10. Accept all reasonable responses that identify the person

interviewed, the local company, and how the company collects demographic information on its customers (name, address, phone numbers, occupation, age, spending patterns, and so on) and how the information is used. All outlines should be well-organized, use proper grammar, and be free of spelling errors.

Financial Literacy Skills 11. $53.50 per interviewee ($600 + $3,800 + $200 + $750 =

$5350 ÷ 100).

Everyday Ethics 12. Reports should summarize students’ findings from their survey

of five teens and should include primary data collected, as well as a discussion about the ethics of targeting teens with limited funds. Ethical opinions will vary and should be supported with reasonable arguments. Reports should be one-page in length and be free of grammatical and spelling errors.

e-Marketing Skills 13. Accept all reasonable answers for teams that develop a ten-

question Internet survey. The survey must be well-designed. Questions must be properly formatted, grammatically correct, and be free of spelling errors. Possible techniques: surveys should limit the number of screens that respondents have to scroll through to answer questions or statements; limited use of distracting graphics or animation; Internet surveys should allow respondents to stop and complete the survey at a later time.


Connection Role Play

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Download the Competitive Events Workbook for more Role-Play practice.

Marketing Research ConsultantPopular BandSituation You are working with the manager of a band (judge) that is popular among teens. The band recently completed a nationwide tour. The tour was a huge success, playing to sold-out audiences at each venue. The band-related merchandise sold at the concerts was also a huge success.

The band manager (judge) is considering adding concert and band merchandise that fans could purchase on the band’s Web site. The addition of merchandise sales to the Web site will require hiring personnel to process and ship items, and to manage the merchandise sales. The band members agree that the idea is a good one and worth trying.

Before beginning the merchandise sales, the manager (judge) and band want to gather information about whether fans would buy merchandise from the Web site and, if so, what types of merchandise would they be likely to purchase. The band manager (judge) has decided to ask fans visiting the band’s Web site to complete a questionnaire about buying band merchandise from the Web site.

Activity You are to prepare recommendations about the design of the questionnaire. Your recommendations should include the types of questions that should be asked, the length of the questionnaire, and the formatting. You will then present your recommendations to the band manager (judge).

Evaluation You will be evaluated on how well you meet the following performance indicators:

1. Describe methods to design research studies.

2. Describe options businesses use to obtain marketing-research data.

3. Discuss the nature of sampling plans (i.e., who, how many, how chosen).

4. Evaluate questionnaire design.

5. Explain the use of descriptive statistics in marketing decision making.

Test-Taking TipLook for key words in test directions and test questions, such as choose, describe, explain, compare, identify, similar, except, not, and but, to help guide your responses.

Standardized Test PracticeDirections Read the following questions. On a separate piece of paper, write the best possible answer for each one.

1. Which of the following marketing research methods combines natural viewing with personal interviews to get people to explain buying behavior?

A. Experimental method

B. Observation method

C. Point-of-sale method

D. Survey method

2. Forced-choice questions ask respondents to construct their own responses to a question.

T

F

3. When survey questions measure what was intended to be measured, the survey is said to have __________.



Review and Activities

NCTM Number and Operations Compute fluently and make reasonable estimates.

NCTE 3 Apply strategies to interpret texts.

NCTE 1 Read texts to acquire new information.

Build Academic SkillsEnglish Language Arts 14. Research Services Perform online research, locating the Web page of Quirk’s

Marketing Research Review to find a marketing research firm in your city or state that performs marketing research. Identify the research that is done by the firm and the services that the firm provides to clients in a one-page outline.

English Language Arts 15. Marketing Research Trends Perform library or online research about a recent

trend in marketing research. Identify the name of the article, its source, and the marketing research trend. Write a one-page summary of the research trend that you investigated.

Mathematics 16. Internet Survey Costs Calculate the total cost to complete an Internet survey

for 50,000 people, given the following costs: $250 to create/deliver the survey, and $0.02 per person to convert data.

Math Concept Problem Solving: Calculating Costs When calculating business costs, be sure to include all components that contribute to the cost. Per-person costs need to be distinguished from costs that are not related to head count.

Communication Skills 10. Information Mining Interview an owner or

manager of a company in your community to discover how the company collects demographic information about its customers. Write a two-page outline identifying the company, the person interviewed, how customer information (name, address, phone numbers, occupations, age, spending patterns, and so on) is collected. Explain how the information is used for marketing purposes.

Financial Literacy Skills 11. Calculating Personal Interviewing Costs What

are the per-person costs to complete a personal-interview survey for 100 people, given the following costs: $600 for travel and meals expenses; $3,800 for interviewer wages; $200 for printing survey instruments; and $750 for data entry and analysis?

Everyday Ethics 12. Spa Trends The term “spa” originated from the

name of the Belgian town Spa, known for its healing mineral baths. A new market for spas is teenagers. More than 30 percent of spas offer teen packages. Popular treatments include facials, head-and-shoulder massage, and manicures. Gather primary data by interviewing five teenagers on what spa services they would want and how much they would spend for the services. Consider if targeting teens who have limited funds is ethical. Summarize your findings and opinions in a one-page report.

e-Marketing Skills 13. Internet Research Imagine you and a classmate are

employed by a marketing research firm. The firm uses Internet survey research for product satisfaction studies. Your team has been assigned to develop a ten-question satisfaction survey about a product of your choice.

• List the techniques that you must use to develop an Internet survey.

• Identify the types of questions your team will use to complete the Internet survey.

Chapter 29


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Chapter 29

Build Academic SkillsEnglish Language Arts 14. Accept all reasonable answers that identify the name of the

research company, research performed, and cover the marketing research services provided to clients. Outline reports should be one-page in length, use proper grammar, and be free of spelling errors.

15. Accept all reasonable answers that identify the name of the article, source of information, and a recent trend in marketing research. Summary reports should be one-page in length, use proper grammar, and be free of spelling errors.

Mathematics 16. $1,250.00 (50,000 × $0.02 + $250)

Standardized Test Practice 1. C Point-of-sale method

2. False

3. validity

Evaluations will be based on these performance indicators:

1. Describe methods to design research studies. The five steps for conducting marketing research are defining the problem, obtaining data, analyzing the data, recommending solutions, and applying the results. Each step is performed in this order to arrive at solutions to a problem or issue.

2. Describe options businesses use to obtain marketing-research data. Primary data are obtained for the first time and used specifically for the problem or issue under study. Sources include: surveys, interviews, observations, and experiments. Secondary data have already been collected. Sources include: Internet sites, U.S. and state government sources, specialized research companies, and business publications and trade organizations.

3. Discuss the nature of sampling plans. A sample is a part of the target population that represents the entire population. The size of the sample depends on how much a company can spend and the accuracy needed. Generally, a larger sample gives more accurate results.

4. Evaluate questionnaire design. Questionnaires must have good visual appearance and ample white space. Different colors and typefaces can add to the design appeal, but no more than two ink colors and typefaces should be used. The preferred color for most surveys is black with an easy-to-read font. The questionnaire should be short enough to answer quickly. Distinct headings should be placed on all sections. Numbers should be placed on all individual questions. If the questionnaire requires more than one page, a note should be placed on the bottom of each page to continue to the next page.

5. Explain the use of descriptive statistics in decision making. In evaluating statistics, managers may find that the research was inconclusive and that more is needed. Or they may find that the research suggests specific courses of action. After the research has been completed and changes made, a business should carefully monitor the results. A business needs to know if the specific actions taken are successful. The research effort can be deemed a success if resulting decisions lead to greater profits through better sales, increased efficiency, or reduced expenses.

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