Conducting Marketing Research

Ch. 29 ME

The Marketing Research Process

Section 29.1

1. Defining the Problem2. Obtaining Data3. Analyzing Data4. Recommending Solutions5. Applying the Results

The Marketing Research Process

Problem definition – occurs when a business clearly identifies a problem and what is needed to solve it

Research can then create objectives that will help to answer problem(s)Objectives are used to develop the actual questions that will be included in the research instruments

Step 1: Defining the Problem

Data are collected and examined in terms of the problem and problems being studied Data means facts Primary Data – are data obtained for the first time and

used specifically for the particular problem or issue under study

Secondary Data – have already been collected for some other purpose other than the current study Cost effective for a company to decide what secondary

data is can use before collecting any primary data

Step 2: Obtaining Data

Obtained from both internal and external sources Secondary data are most often collected in the following

ways: Internet: Company’s homepage & Digital dossiers (business

clearinghouses) US and State Government: State Dept. of Commerce, small

business development centers, US Gov’t. agencies (census, labor statistics, etc.) & government publications (Statistical Abstract of the United States)

Specialized Research Companies: Mediamark Research, Inc. Business Publications and Trade Organizations: Wall

Street Journal and American Marketing Association

How Secondary Data are Obtained

Advantages/Disadvantages of Secondary Data

Advantages

Obtained easily

Disadvantages

Existing data may not be suitable for the problem under study

May be sometimes inaccurate

Obtained through company research projects or specialized research organizations

Primary data are most often collected in the following ways: Survey Method – is a research technique in which

information is gathered from people through the use of surveys or questionnaires Most frequently used method of collecting primary data Census – survey of an entire small target population

This situation cannot occur, and time and money are limited Instead, a sample of the entire target population is used

Sample – is a part of the target population that represents its accurately

How Primary Data are Obtained

Technological Methods Through online surveys and focus group chat session on

the Internet Fax broadcasting Automated dialers Digital surveys Interactive voice response

How Primary Data are Obtained

Interviews Personal interview - involves questioning people face-to-face

Mall Intercept Interview - Conducted in central locations Focus group – involves eight to twelve people who are brought

together to evaluate Advantage – often easier to get people to respond Disadvantage – cost

Telephone Interview – quick, efficient, and relatively inexpensive Mail Survey – is a relatively inexpensive way to reach a

potentially large audience Success rate is only 10%

Internet-based surveys – are quick and eliminate data entry Allows for real-time data collection, multiple-choice questions, and

open-ended, text-based answers

How Primary Data are Obtained

The Observation Method Is a research method technique in which the actions of people are

watched and recorded either by cameras or by observers Properly performed and recorded observations supply better results than

those obtained with survey techniques Mystery shopping – is used to view the interaction between

customers and employees Mystery Shopper – is a researcher who poses as a customer and goes into

a business to observe employees and operations Disadvantages – cannot measure attitudes or motivation; provides what

a person does, not why Advantages – faster; people act normal since they are unaware; cost

effective Point-of-Sale Research – is a powerful form of research that combines

natural observation with personal interviews to get people to explain buying behaviors

How Primary Data are Obtained

The Experimental Method Is a research technique in which a researcher observes the

results of changing one or more marketing variables while keeping other variables constant under controlled conditions

Is infrequently used for marketing research because of cost of setting up the research situation and the inaccuracy of the responses

How Primary Data are Obtained

Data Analysis – is the process of compiling, analyzing, and interpreting the results of primary and secondary data collection Data Mining – is a computer process that uses

statistical methods to extract new information from large amounts of data

Step 3: Analyzing Data

The conclusions drawn from the research are usually presented in an organized and well-written report

Recommendations must be clear and well supported by the research data

Step 4: Recommending Solutions to the Problem

A typical report includes the following: Title page Acknowledgements of people who assisted in the research effort Table of contents List of tables, figures, charts and graphs Introduction (include the problem under study, its importance, definitions,

limitations of the study, and basic assumptions) Review of the research information (including the results of the any secondary

data reviewed for the research effort) Procedures used (research techniques or techniques used to obtain primary

data) Findings Recommendations Summary and conclusions Appendixes Bibliography

Step 4: Recommending Solutions to the Problem

Research may be inconclusive, additional research is needed or the research suggest specific courses of action

Carefully monitor the results Research effort has been a success if decisions made

as a result lead to increased profits through better sales, increased efficiency, or reduced expenses

Step 5: Applying the Results

The Marketing Survey1. Section 29.2

As a major form of quantitative research, questionnaires should provide data that have validity Validity - when questions asked measure what was

intended to be measured Research questionnaires should also have reliability

Reliability – exists when a research technique produces nearly identical results in repeated trials

To be valid and reliable, a questionnaire must be properly written, formatted, and administered

Constructing the Questionnaire

Open-ended Questions – ask respondents to construct their own responses Generate a wide-variety of responses that are

sometimes difficult to categorize and tabulate Forced-choice Questions – ask respondents to

choose answers from possibilities given on a questionnaires Are the simplest questions to write and the easiest to

tabulate

Writing Questions

Yes/No Questions Should only be used when asking for a response on one

issue Having a question that asks about more than one issue

decrease validity and reliability Most often used as filter questions

Multiple-Choice Questions Give the respondent several choices Make the options mutually exclusive and

comprehensive enough to include every possible response

Writing Questions

Rating Scale Questions Rate a product or service based upon a scale Variety of scales may be used

Level of Agreement Questions Are statements that describe attitudes or opinions Often easier to use descriptive statements

Writing Questions

Each question should be written clearly and as briefly as possible

Use the same ranking or rating scales for all similar questions Do not ask leading questions

Which suggest an answer Avoid any bias

Which is a systematic error introduced by encouraging one outcome or answer over the others

Avoid questions that might cause a respondent to guess at the meaning

When finished, pre-test the wording of the questions to correct any mistakes

Basic Guidelines for Writing Questions

Must have excellent visual appearance and design to appeal to respondents

Use dark ink on light paper with easy to read font Short enough to be answered quickly Sections headings or numbered sections Numbers on each questions Note a continue on next page if more than one page Content Formatting

Directions must be clear for each section or group General demographic questions are typically grouped

together at the end

Formatting

All surveys should have deadlines for completion A mailed questionnaire should be sent first-class with a high-

signed cover letter, and it should be personalized if the person is known Include pre-paid postage for return

In-Person Surveys Questionnaires that are not mailed should have brief explanations for

purpose A plan for selection participants in a unbiased way

Incentives Offer incentives to encourage people to participate

Administering the Questionnaire