MarketingResearchEighth EditionInternational Student Version

Carl McDaniel, Jr.University of Texas

at Arlington

Roger GatesDSS Research

John Wiley & Sons, Inc

Preface xxv

1 Introduction to Marketing Research 2Nature of Marketing 4

The Marketing Concept 4Opportunistic Nature of Marketing Research 4External Marketing Environment 5Let's Meet Some New Market Researchers 6

Marketing Research and Decision Making 6Marketing Research Defined 7Importance of Marketing Research to Management 7Proactive Role of Marketing Research 9Applied Research versus Basic Research 10Nature of Applied Research 10Decision to Conduct Marketing Research 11

Profound Impact of the Internet on Marketing Research 13Development of Marketing Research 15

Inception: Pre-1900 15Early Growth: 1900-1920 16Adolescent Years: 1920-1950 16Mature Years: 1950-Present 17

3 PRACTICING MARKETING RESEARCH: WHAT IS GOOD ABOUT MARKETING

RESEARCH TODAY 17

B Discussion Questions 18M Summary 18H Key Terms & Definitions 19B Questions for Review & Critical Thinking 20H Courtyard by Marriott 21H Real-Life Research 1.1:1 Want My Satellite Radio 21• Real-Life Research 1.2: Young Consumers Searching for a

Bank Still Want the Personal Touch 22

2 Ethical Decision Making in the Marketing Research Industry 24Evolving Structure of the Marketing Research Industry 26

Primary Information Users (Client Organizations)Consumer and Industrial Goods and Services Producers 26

3 GLOBAL RESEARCH: SOUTHEAST ASIA 28

Federal, State, and Local Governments 29Media Companies 29Retailers and Wholesalers 29Marketing Research Suppliers 29Marketing Research Supplier Service Firms 30

viii I Contents

Consumer and Industrial Corporate Marketing ResearchDepartments 30Research Suppliers 303 FROM THE FRONT LINE: WHY I CHOSE A CAREER IN MARKETING RESEARCH AND

THE BIGGEST SURPRISE I HAVE FACED IN DOING RESEARCH 32

Custom Research Firms 34Syndicated Service Firms 34Limited Function Research Firms 35Marketing Research Supplier Service Firms 35

Using Marketing Research—A Corporate Perspective 36External Clients 37Internal Clients 38

The State of the Marketing Research Industry 403 PRACTICING MARKETING RESEARCH: LOOK FOR THE DANGER SIGNALS WHEN

EVALUATING RESEARCH SUPPLIERS 41

Marketing Research Ethics 42Ethical Theories 42Research Supplier Ethics 43Black Box Branding 46Client Ethics 47Field Service Ethics 48Data-Collection Code of Ethics 48Respondents' Rights 50Ethics and Professionalism 51

3 GLOBAL RESEARCH: SAFE HARBOR IN A PRIVACY STORM 52

H Summary 54B3 Key Terms & Definitions 550 Questions for Review & Critical Thinking 55H Working the NET 56• Real-Life Research 2.1: Coke Juices Up a Market Test 56• Real-Life Research 2.2: Budget Rent a Car Drives

a Message Home 58

3 Steps in the Research Process 64Critical Importance of Correctly Defining the Problem 66

Recognize the Problem or Opportunity 67Find Out Why the Information is Being Sought 67Understand the Decision-Making Environment withExploratory Research 68

3 PRACTICING MARKETING RESEARCH: GETTING IT RIGHT THE

FIRST TIME 69

Use the Symptoms to Clarify the Problem 713 PRACTICING MARKETING RESEARCH: DRIVING ACTION-PRODUCING

RESEARCH 72

Translate the Management Problem into a MarketingResearch Problem 72Determine Whether the Information Already Exists 73Determine Whether the Question Can Be Answered 73

Contents ix

3 PRACTICING MARKETING RESEARCH: IMPORTANCE OF TOP MANAGEMENT'S

DEFINITION OF THE MANAGEMENT PROBLEM 74

State the Research Objectives 743 FROM THE FRONT LINE: GET YOUR OBJECTIVES IN ORDER BEFORE

You START 75

Marketing Research Process 76Creating the Research Design 76Choosing a Basic Method of Research 78Selecting the Sampling Procedure 79Collecting the Data 79Analyzing the Data 79Writing and Presenting the Report 80Following Up 80

Managing the Research Process 81The Research Request 81Request for Proposal 81

3 PRACTICING MARKETING RESEARCH: INTERNAL CLIENTS ARE NOT

ALWAYS EASY TO DEAL WITH 82

The Marketing Research Proposal 83What to Look for in a Marketing ResearchSupplier 85

3 GLOBAL RESEARCH: TAPPING THE CHINA MARKET 86

What Motivates Decision Makers to UseResearch Information? 88

3 PRACTICING MARKETING RESEARCH: THE CLIENT AND THE MARKETING

RESEARCHER—A FABLE 88

Hi Summary 89H Key Terms & Definitions 90B Questions for Review & Critical Thinking 91H Working the Net 9211 Real-Life Research 3.1: I'll Eat Frozen Pizza But I Don't

Have to Like It! 92• Real-Life Research 3.2: Cessna Aircraft 93Appendix 3-A: A Marketing Research Proposal 94

Background 95Objectives 95Study Design 95Areas of Questioning 95Data Analysis 96 /Personnel Involved 96Specifications/Assumptions 96Services 97Cost 97Timing 97

4 Using Secondary Data 98Nature of Secondary Data 100

Advantages of Secondary Data 100

Contents

3 PRACTICING MARKETING RESEARCH 101

Limitations of Secondary Data 102Internal Databases 104

Creating an Internal Database 104Growing Importance of Internal Database Marketing 104

3 PRACTICING MARKETING RESEARCH: LOOKING FOR INTELLIGENCE IN

ICE CREAM 105

3 PRACTICING MARKETING RESEARCH: DATABASE DESIGN AND

IMPLEMENTATION 106

Data Mining 107Battle over Privacy 109Marketing Research Aggregators 112

3 PRACTICING MARKETING RESEARCH 113

Information Management 113Geographic Information Systems 114Decision Support Systems 116

• Summary 117• Key Terms & Definitions 118• Questions for Review & Critical Thinking 118• Working the Net 118• Real-Life Research 4.1: Michelle's Store for Runners 119• Real-Life Research 4.2: Sanitized to Perfection 120Appendix 4-A: How to Efficently Search on Google 123

5 Focus Groups, Depth Interviews, and Other Non-quantitativeResearch Methods 130Nature of Qualitative Research 132

Qualitative Research versus Quantitative Research 132Popularity of Qualitative Research 132Limitations of Qualitative Research 133

The Importance of Focus Groups 134Popularity of Focus Groups 134Conducting Focus Groups 135

3 PRACTICING MARKETING RESEARCH: RECRUITING TRICKS OF THE TRADE 138

3 PRACTICING MARKETING RESEARCH: THE VOICE AT THE HEAD OF

THE TABLE 140

3 PRACTICING MARKETING RESEARCH: DR. MURRAY SIMON OFFERS SEVERAL

GUIDELINES TO CONSIDER IN DEVELOPING A DISCUSSION GUIDE 144

3 PRACTICING MARKETING RESEARCH 146

3 GLOBAL RESEARCH: PLANNING GLOBAL FOCUS GROUPS 146

Benefits and Drawbacks of Focus Groups 1473 PRACTICING MARKETING RESEARCH: GETTING GREAT INFORMATION

AND RESULTS FROM FOCUS GROUPS 149

3 FROM THE FRONT LINE: SECRETS OF CONDUCTING GOOD FOCUS

GROUPS AND/OR IN-DEPTH INTERVIEWS 150

Other Qualitative Methodologies 151Individual Depth Interviews 151

3 PRACTICING MARKETING RESEARCH: MASTERING THE QUALITATIVE

REPORT 154

Projective Tests 155Future of Qualitative Research 160

Contents xi

I Summary 160I Key Terms & Definitions 161I Questions for Review & Critical Thinking 162I Working the Net 163I Real-Life Research 5.1: Repositioning Scotland 163I Real-Life Research 5.2: Fossil Watch, Inc. 165

6 Methods of Survey Research 168Popularity of Survey Research 170Types of Errors in Survey Research 170

Sampling Error 171Systematic Error 171

Types of Surveys 176Door-to-Door Interviews 176Executive Interviews 176

3 GLOBAL RESEARCH: CONDUCTING MARKETING RESEARCH

IN CHINA 177

Mall-Intercept Interviews 178Telephone Interviews 178Self-Administered Questionnaires 181

3 PRACTICING MARKETING RESEARCH: WHAT WOULD

You Do? 182Mail Surveys 183

Determination of the Survey Method 186Sampling Precision 186Budget 187Requirements for Respondent Reactions 188Quality of Data 188,Length of the Questionnaire 188Incidence Rate 189Structure of the Questionnaire 190Time Available to Complete the Survey 190

Marketing Research Interviewer 190H Summary 191H Key Terms & Definitions 192• Questions for Review & Critical Thinking 193• Real-Life Research 6.1: Dairy Management Inc. 193• I Real-Life Research 6.2: Paramount Parks Where the Theme Is Fun 194

7 Using the Internet for Marketing Research 196The Online World 198Using the Internet for Secondary Data 198

Sites of Interest to Marketing Researchers 198Newsgroups 198Blogs 201

Internet Search Strategies 202Creating a Database from a Web Site—A Marketer's Dream 205

Online Qualitative Research 206The Popularity of Online Focus Groups 206

xii Contents

3 PRACTICING MARKETING RESEARCH: ONLINE FOCUS GROUP

BEST PRACTICES 210

3 FROM THE FRONT LINE: EIGHT TIPS FOR CONDUCTING

SUCCESSFUL BULLETIN BOARD FOCUS GROUPS 212

Survey Research on the Internet 214Advantages of Online Surveys 214Disadvantages of Online Surveys 215Methods of Conducting Online Surveys 216

Commercial Online Panels 2173 PRACTICING MARKETING RESEARCH: FORMATTING

A SURVEY FOR SUCCESS 219

Panel Management 2203 GLOBAL RESEARCH: TIMING IS EVERYTHING IN SURVEY

INVITATIONS 221

Open versus Closed Recruitment 2223 PRACTICING MARKETING RESEARCH: PREVENTING

PROFESSIONAL SURVEY TAKERS 223

Respondent Cooperation 223Controlling the Panel 224Mobile Internet Research—The Next Step 225Interactive Marketing Research Organization 228

3 FROM THE FRONT LINE: WHY ISN'T ALL DATA COLLECTION

MOVING TO THE INTERNET? 228

• Summary 229• Key Terms & Definitions 230• Questions for Review & Critical Thinking 230• Woking the Net 231M Real-Life Research 7.1: Grocery Shoppers Just

Want to Save Money 231H Real-Life Research 7.2: Good Things Come to

Brands That Give 233

8 Ethnography, Scanner-based Research, and OtherObservation Techniques 234Nature of Observation Research 236

Conditions for Using Observation 236Approaches to Observation Research 236Advantages of Observation Research 238Disadvantages of Observation Research 238

Human Observation 239Ethnographic Research 239

3 GLOBAL RESEARCH: ETHNOGRAPHICS ARE AN ENRICHING PROCESS 242

Mystery Shoppers 2423 PRACTICING MARKETING RESEARCH: TAKING ETHNOGRAPHY ONLINE 243

3 PRACTICING MARKETING RESEARCH: ADVANCES IN MYSTERY SHOPPING 245

One-Way Mirror Observations 246Audits 246

3 PRACTICING MARKETING RESEARCH: UNDERCOVER WITH A HOTEL SPY 247

Machine Observation 248Traffic Counters 248

Contents xiii

Physiological Measurement Devices 248Opinion and Behavior Measurement Devices 250The Portable People Meter and Project Apollo 251

' Scanner-Based Research 252Observation Research on the Internet 255

Predictive Customer Intelligence 256Observation Research and Virtual Shopping 258H Summary 259• Key Terms & Definitions 260H Questions for Review & Critical Thinking 261M Working the Net 262H Real-Life Research 8.1: A Glad Trash Bag

Breakthrough 262IB Real-Life Research 8.2: Continental Airlines Online

Advertising 263

9 Primary Data Collection: Experimentation and Test Markets 268What Is an Experiment? 270Demonstrating Causation 270

Concomitant Variation 270Appropriate Time Order of Occurrence 271Elimination of Other Possible Causal Factors 271

Experimental Setting 271Laboratory Experiments 272Field Experiments 272

Experimental Validity 2723 PRACTICING MARKETING RESEARCH: KNOW YOUR POTENTIAL CUSTOMERS,

PSYCHOLOGICALLY SPEAKING 273

Experimental Notation 273Extraneous Variables 274

Examples of Extraneous Variables 274Controlling Extraneous Variables 276

Experimental Design, Treatment, and Effects 276Limitations of Experimental Research 277

High Cost of Experiments 277Security Issues 278Implementation Problems 278

Selected Experimental Designs 278Pre-Experimental Designs 279

3 GLOBAL RESEARCH: WHAT HAPPENS WHEN YOUR SELECTION BIAS IS THE

INTERVIEWER'S GENDER? 280

True Experimental Designs 280Quasi-Experiments 282

Test Markets 283Types of Test Markets 284

3 GLOBAL RESEARCH: WHAT'S SO ATTRACTIVE ABOUT

CALGARY'S DEMOGRAPHICS? 285

Costs of Test Marketing 286Decision to Conduct Test Marketing 287Steps in a Test Market Study 287

xiv Contents

3 GLOBAL RESEARCH: BEST GLOBAL TEST MARKETS?

DANES ARE QUICK, KOREANS LOVE TECH 289

3 PRACTICING MARKETING RESEARCH: QUICK SCANS OF PRODUCT-SPECIFIC

TEST MARKETS 292

3 PRACTICING MARKETING RESEARCH: WHEN IN ROME . . . 293

. Other Types of Product Tests 295• Summary 295El Key Terms & Definitions 296E3 Questions for Review & Critical Thinking 29803 Working the Net 29913 Real-Life Research 9.1: Millennium Marketing Research Simulated Test

Market 299IS Real-Life Research 9.2: Healthco 300

10 The Importance of Proper Measurement 302Measurement Process 304Step One: Identify the Concept of Interest 305Step Two: Develop a Construct 305Step Three: Define the Concept Constitutively 305Step Four: Define the Concept Operationally 305Step Five: Develop a Measurement Scale 307

Nominal Level of Measurement 307Ordinal Level of Measurement 307

3 GLOBAL RESEARCH: CONSTRUCT EQUIVALENCE PROBLEMS OFTEN

OCCUR IN GLOBAL MARKETING RESEARCH 309

Interval Level of Measurement 310Ratio Level of Measurement 310

3 FROM THE FRONT LINE: TIPS ON MAKING SURE YOU HAVE THE RIGHT LEVEL OF

SCALING 311

Step Six: Evaluate the Reliability and Validity of the Measurement 311Reliability 313

3 PRACTICING MARKETING RESEARCH: TRUTH ABOUT WHAT

RESPONDENTS SAY 314

Validity 3163 PRACTICING MARKETING RESEARCH: THE ANONYMITY GRADIENT 317

Reliability and Validity—A Concluding Comment 3203 PRACTICING MARKETING RESEARCH: TIPS FOR MANAGERS ON PUTTING

MEASUREMENT TO WORK 321

B Summary 322M Key Terms & Definitions 323S Questions for Review & Critical Thinking 324B Working the Net 325B Real-Life Research 10.1: It's True—Not All Men or

All Women Are Alike! 325H Real-Life Research 10.2: Measuring Customer

Satisfaction at GE 328

11 Attitude Measurement 330Attitudes, Behavior, and Marketing Effectiveness 332

Contents xv

Link between Attitudes and Behavior 332Enhancing Marketing Effectiveness 333

Scaling Defined 3333 PracticiNG MARKETING RESEARCH: WHAT MAKES A GOOD SCALE? 334'Attitude Measurement Scales 334

Graphic Rating Scales 334Itemized Rating Scales 335Traditional One-Stage Format 338Two-Stage Format 338

3 PRACTICING MARKETING RESEARCH: BE CAREFUL WHEN

AVERAGING SCALE DATA 338

Rank-Order Scales 339Q-Sorting 340Paired Comparisons 341Constant Sum Scales 342Semantic Differential Scales 342

3 GLOBAL RESEARCH: BE CAUTIOUS IN INTERPRETING SCALES

USED IN GLOBAL RESEARCH 344

Stapel Scales 344Likert Scales 345Purchase Intent Scales 348

3 PRACTICING MARKETING RESEARCH 348

The Net Promoter Score (NPS) 351Scale Conversions 352

Considerations in Selecting-a Scale 353The Nature of the Construct Being Measured 353Type of Scale 354Balanced versus Nonbalanced Scale 354Number of Scale Categories 354Forced versus Nonforced Choice 355

3 PRACTICING MARKETING RESEARCH: SCALE BALANCE 355

Attitude Measures and Management Decision Making 357Direct Questioning 357

3 PRACTICING MARKETING RESEARCH: WHAT IS THE SCALE

REALLY TELLING YOU? 358

Indirect Questioning 360Observation 360Choosing a Method for Identifying DeterminantAttitudes 361

3 Summary 361• Key Terms & Definitions 362M Questions for Review & Critical Thinking 363H Working the Net 364M Real-Life Research 11.1: Coffee Culture as a

Global Phenomenon 364B Real-Life Research 11.2: Frigidaire Refrigerators 365

12 Questionnaire Design 368Role of a Questionnaire 370Criteria for a Good Questionnaire 371

Does It Provide the Necessary Decision-Making

xvi Contents

Information? 371Does It Consider the Respondent? 371Does It Meet Editing and Coding Requirements? 372

3 PRACTICING MARKETING RESEARCH: ARE HEAVY RESPONDERS TAKING ALL THE

MARKET RESEARCH SURVEYS? 373

3 PRACTICING MARKETING RESEARCH: TIPS FOR MAXIMIZING USER RESPONSE IN

ONLINE SURVEYS 374

Questionnaire Design Process 375Step One: Determine Survey Objectives, Resources,and Constraints 375Step Two: Determine the Data-Collection Method 376Step Three: Determine the Question Response Format 377

3 PRACTICING MARKETING RESEARCH: USEFUL OPEN-ENDED QUESTIONS 379

3 PRACTICING MARKETING RESEARCH: WHEN RESPONDENTS DISTORT THEIR OWN

DATA: SURVEY RESPONSE ERRORS 382

Step Four: Decide on the Question Wording 3853 GLOBAL RESEARCH: SURVEY BIAS FROM ETHNICITY AND GENDER OF INTERVIEWERS

AND RESPONDENTS 386

Step Five: Establish Questionnaire Flow and Layout 3883 PRACTICING MARKETING RESEARCH: SOME PROBLEMS AND POTENTIAL SOLUTIONS

WITH SCREENING QUESTIONS 390

Step Six: Evaluate the Questionnaire 393Step Seven: Obtain Approval of All Relevant Parties 394Step Eight: Pretest and Revise 394

3 PRACTICING MARKETING RESEARCH: TIPS FOR WRITING A

• GOOD QUESTIONNAIRE 395

Step Nine: Prepare Final Questionnaire Copy 396Step Ten: Implement the Survey 396Field Management Companies 398

Impact of the Internet on Questionnaire Development 3983 FROM THE FRONT LINE: SIX SECRETS OF GOOD QUESTIONNAIRE DESIGN 399

Software for Questionnaire Development 4003 GLOBAL RESEARCH: SURVEY CONTAMINATION FROM NATIONAL DIFFERENCES IN

RESPONSE STYLES 403

Costs, Profitability, and Questionnaires 403B Summary 405• Key Terms & Definitions 406M Questions for Review & Critical Thinking 407• Working the Net 408El Real-Life Research 12.1: Understanding Buyer Behavior 408• Real-Life Research 12.2: Singles Dinner Club 410

13 Basic Sampling Issues 412Concept of Sampling 414

Population 414Sample versus Census 414

3 PRACTICING MARKETING RESEARCH: CELL PHONE-ONLY HOUSEHOLDS—THE NEED

TO BROADEN THE POLLING SAMPLE 415

Developing a Sampling Plan 416Step One: Define the Population of Interest 416

Contents xvii

3 PRACTICING MARKETING RESEARCH: DRIVER'S LICENSES AND VOTER REGISTRATION

LISTS AS SAMPLING FRAMES 417

Step Two: Choose a Data-Collection Method 418' Step Three: Identify a Sampling Frame 418

3 GLOBAL RESEARCH: SAMPLING FRAME EXPERIMENTATION TO COLLECT RELIABLE

MEDICAL DATA 420

3 PRACTICING MARKETING RESEARCH: DON'T CALL US, WE WON'T CALL YOU

EITHER—NEW PROBLEMS IN TELEPHONE SAMPLING 421

Step Four: Select a Sampling Method 4233 PRACTICING MARKETING RESEARCH: WHY THIS ONLINE SAMPLE WAS NOT A

PROBABILITY SAMPLE 424

3 PRACTICING MARKETING RESEARCH: WHEN ADDRESS-BASED TELEPHONE SURVEYS

OUTPERFORM RANDOM-DIGIT DIALING 425

Step Five: Determine Sample Size 425Step Six: Develop Operational Procedures for Selecting SampleElements 426Step Seven: Execute the Operational Sampling Plan 426

Sampling and Nonsampling Errors 4263 FROM THE FRONT LINE: SECRETS OF SAMPLE MANAGEMENT 428

Probability Sampling Methods 429Simple Random Sampling 429Systematic Sampling 429Stratified Sampling 430Cluster Sampling 432

3 GLOBAL RESEARCH: AREA SAMPLING FRAME USED TO TALLY LIVESTOCK

POPULATION FOR DISEASE CONTROL 433

Nonprobability Sampling Methods 435Convenience Samples 435Judgment Samples 436Quota Samples 436Snowball Samples 436

3 PRACTICING MARKETING RESEARCH: E-MAIL SURVEYS OF WEB SITE USAGE—WHEN

SNOWBALLING FAILS TO SNOWBALL 437

Internet Sampling 438• Summary 439• Key Terms & Definitions 440IB Questions for Review & Critical Thinking 441B Working the Net 442• Real-Life Research 13.1: The Research Group 442M Real-Life Research 13.2: New Mexico National Bank 443

14 Sample Size Determination 444Determining Sample Size for Probability Samples 446

Budget Available 446Rule of Thumb 446Number of Subgroups Analyzed 446

3 PRACTICING MARKETING RESEARCH: SAMPLE SIZE PLANNING—TECHNICAL

SUGGESTIONS FROM A STATISTICIAN 447

3 PRACTICING MARKETING RESEARCH: FACTORS TO CONSIDER IN DETERMINING

OPTIMAL SAMPLE SIZE 448

Traditional Statistical Methods 449

xviii Contents

Normal Distribution 449General Properties 449Standard Normal Distribution 450

Population and Sample Distributions 452Sampling Distribution of the Mean 452

Basic Concepts 4533 GLOBAL RESEARCH: NONRESPONSE BIAS IN A DUTCH ALCOHOL CONSUMPTION

STUDY 455

Making Inferences on the Basis of a Single Sample 456Point and Interval Estimates 457Sampling Distribution of the Proportion 457

3 GLOBAL RESEARCH: WHEN YOUR EFFECTIVE SAMPLE SIZE CAN BE AS SMALL AS

ONLY 5 458

Determining Sample Size 459Problems Involving Means 459

3 PRACTICING MARKETING RESEARCH: HARRIS POLL ON "MARGIN OF ERROR" FINDS

IT IS WIDELY MISUNDERSTOOD 461

Problems Involving Proportions 462Determining Sample Size for Stratified and Cluster Samples 463Population Size and Sample Size 463

3 PRACTICING MARKETING RESEARCH: CONFIDENCE LEVEL AND SAMPLE SIZE—

WHAT'S THE IDEAL RELATIONSHIP? 464

Determining How Many Sample Units Are Needed 4653 PRACTICING MARKETING RESEARCH: ESTIMATING WITH PRECISION HOW MANY

PHONE NUMBERS ARE NEEDED 466

Statistical Power 467B Summary 468• Key Terms & Definitions 470H Questions for Review & Critical Thinking 470• Working the Net 471• Real-Life Research 14.1: Millennium Telecom 471B Real-Life Research 14.2: HealthLife 472H SPSS Exercises for Chapter 14 473

15 Data Processing and Fundamental Data Analysis 476Overview of the Data Analysis Procedure 478Step One: Validation and Editing 478

Validation 4783 GLOBAL RESEARCH: EMPIRICAL LESSONS FROM GERMANY ON FAKED SURVEY

INTERVIEWS 4793 GLOBAL RESEARCH: PSYCHOLOGISTS STUDY THE MOTIVATIONS OF INTERVIEW

FALSIFIERS IN AFRICA 480

Editing 4813 PRACTICING MARKETING RESEARCH: TIPS TO AVOID INTERVIEW FRAUD AT THE LEVEL

OF THE DATA-COLLECTION COMPANY 482Step Two: Coding 4863 PRACTICING MARKETING RESEARCH: PUSH POLLING: WHEN INTERVIEW DATA

ACCURACY IS SKEWED BY POLITICS 487Coding Process 488Automated Coding Systems 489

Contents xix

Step Three: Data Entry 490Intelligent Entry Systems 490The Data Entry Process 490Scanning 491

Step Four: Logical Cleaning of Data 491Step Five: Tabulation and Statistical Analysis 493

One-Way Frequency Tables 493Cross Tabulations 497

3 PRACTICING MARKETING RESEARCH: SIX PRACTICAL TIPS FOR EASIER CROSS

TABULATIONS 498

3 FROM THE FRONT LINE: SECRETS OF DEVELOPING A GOOD

SET OF TABLES 499

Graphic Representations of Data 500Line Charts 501Pie Charts 501Bar Charts 502

3 PRACTICING MARKETING RESEARCH: EXPERT TIPS ON MAKING

BAD GRAPHICS EVERY TIME 503

Descriptive Statistics 505Measures of Central Tendency 505Measures of Dispersion 506Percentages and Statistical Tests 508

M Summary 508H Key Terms & Definitions 509• Questions for Review & Critical Thinking 510• Working the Net 512B Real-Life Research 15.1: Taco Bueno 512H Real-Life Research 15.2: Tan Fans 513• I SPSS Exercises for Chapter 15 514

16 Statistical Testing of Differences and Relationships 518Evaluating Differences and Changes 520Statistical Significance 520Hypothesis Testing 521

Steps in Hypothesis Testing 5213 PRACTICING MARKETING RESEARCH: WHY WE NEED STATISTICAL TESTS OF

DIFFERENCES 522

Types of Errors in Hypothesis Testing 5243 PRACTICING MARKETING RESEARCH: WHY IN MEDICINE A TWO-TAILED TEST IS

PREFERABLE TO A ONE-TAILED TEST 526

Accepting Ho versus Failing to Reject (FTR) Ho 527One-Tailed versus Two-Tailed Test 527Example of Performing a Statistical Test 527

3 FROM THE FRONT LINE: TIPS ON SIGNIFICANCE TESTING 528

Commonly Used Statistical Hypothesis Tests 531Independent versus Related Samples 531Degrees of Freedom 531

Goodness of Fit 532Chi-Square Test 532

xx I Contents

3 PRACTICING MARKETING RESEARCH: A SIMPLE FIELD APPLICATION

OF CHI-SQUARE GOODNESS OF FIT 534

Hypotheses about One Mean 538ZTest 538

3 PRACTICING MARKETING RESEARCH: TAKING THE ZTEST INTO THE CLASSROOM

AND COURTROOM—Two PRACTICAL USES 539

tTest 5403 PRACTICING MARKETING RESEARCH: t TESTS AND THE EXCEPTIONAL,

OR EXCEPTIONALLY POOR, SALESPERSON 541

Hypotheses about Two Means 545Hypotheses about Proportions 546

Proportion in One Sample 546Two Proportions in Independent Samples 547

Analysis of Variance (ANOVA) 5483 PRACTICING MARKETING RESEARCH: 12 COINS, 3 SHOPS, 2 MICROBIOLOGISTS,

AND 1 TEST—ANOVA 550p Values and Significance Testing 553H Summary 554B Key Terms & Definitions 554B Questions for Review & Critical Thinking 555B Working the Net 558fl Real-Life Research 16.1: I Can't Believe It's Yogurt 558• Real-Life Research 16.2: New Mexico Power 559B SPSS Exercises for Chapter 16 560

17 Bivariate Correlation and Regression 564Bivariate Analysis of Association 566Bivariate Regression 566

Nature of the Relationship 566Example of Bivariate Regression 567

3 PRACTICING MARKETING RESEARCH: BIVARIATE REGRESSION ANALYSIS SHOWS

HIGHER CANCER RATES AMONG CALIFORNIA FARM WORKERS 569

3 PRACTICING MARKETING RESEARCH: WHEN LEAST-SQUARES REGRESSION CAN BIAS

THE DATA—FOUR ALTERNATIVES 570

Correlation Analysis 580Correlation for Metric Data: Pearson's Product-Moment Correlation 580

3 PRACTICING MARKETING RESEARCH: A NOVEL APPLICATION:

USING THE PEARSON PRODUCT-MOMENT CORRELATION TO

STUDY SAYINGS IN THE GOSPEL OF THOMAS 581

3 GLOBAL RESEARCH: RETHINKING THE APPLICABILITY OF PEARSON'S

PRODUCT-MOMENT CORRELATION 582

3 GLOBAL RESEARCH: PEARSON'S PRODUCT-MOMENT CORRELATION FINE-TUNES

MEDICAL STATISTICS 584

3 PRACTICING MARKETING RESEARCH: WHEN BIVARIATE AND MULTIVARIATE

CORRELATION COMBINED GIVE THE BEST PICTURE 585

B Summary 586B Key Terms & Definitions 587B Questions for Review & Critical Thinking 587B Working the Net 589

Contents xxi

El Real-Life Research 17.1: Axcis Athletic Shoes 589S Real-Life Research 17.2: Find Any Error? 590H SPSS Exercises for Chapter 17 591

18 Multivariate Data Analysis 594Multivariate Analysis Procedures 596Multivariate Software 597Multiple Regression Analysis 597

Applications of Multiple RegressionAnalysis 598Multiple Regression Analysis Measures 598Dummy Variables 599Potential Use and Interpretation Problems 600

3 PRACTICING MARKETING RESEARCH: TOURISM MARKETING STRATEGY AND HOW

MULTIVARIATE ANALYSIS CAN DRIVE IT 601

Example of Multiple Regression Analysis 602Multiple Discriminant Analysis 606

Applications of Multiple Discriminant Analysis 607Example of Multiple Discriminant Analysis 607

Cluster Analysis 610Procedures for Clustering 611

3 GLOBAL RESEARCH: WHO IS USING ALL THOSE INTERNET-CONNECTED

MOBILE PHONES? CLUSTER ANALYSIS REVEALS THEIR

DEMOGRAPHICS 612

Example of Cluster Analysis 6133 GLOBAL RESEARCH: CLUSTER ANALYSIS IDENTIFIES EXERCISE MOTIVATIONAL

FACTORS IN BRITISH TEENAGERS 615

Factor Analysis 616 ,Factor Scores 617Factor Loadings 618

3 FROM THE FRONT LINE: SECRETS TO FINDING THE RIGHT NUMBER

OF FACTORS 619

Naming Factors 620Number of Factors to Retain 620Example of Factor Analysis 620

Perceptual Mapping 621Example of Perceptual Mapping 622

3 PRACTICING MARKETING RESEARCH: HOW PERCEPTUAL MAPPING HELPED

MARKETERS TAILOR A CHRISTMAS THEME 623

Conjoint Analysis 624Example of Conjoint Analysis 625

3 GLOBAL RESEARCH: BRITISH PHYSICIANS FAVOR CONJOINT ANALYSIS IN

HEALTHCARE RESEARCH 625

3 GLOBAL RESEARCH: HOW CONJOINT ANALYSIS HIGHLIGHTED PUBLIC ATTITUDES

ABOUT WIND FARMS 630

Limitations of Conjoint Analysis 631MB Summary 631B Key Terms & Definitions 632E3 Questions for Review & Critical Thinking 633M Working the Net 635

xxii Contents

B Real-Life Research 18.1: Satisfaction Research for Pizza Quik 635B Real-Life Research 18.2: Custom Car Wash Systems 637

Appendix: United Wireless Communications Data Set 638Research Objectives 638Methodology 638Description of the Data Set 638Ethical Dilemma 641

H SPSS Exercises for Chapter 18 642

19 The Research Report 646The Research Report 648

Organizing the Report 648Interpreting the Findings 649

3 PRACTICING MARKETING RESEARCH: THE IMPORTANCE OF CONSISTENCY IN REPORT

WRITING—THE STYLE SHEET 650

3 FROM THE FRONT LINE: HOW TO WRITE A GOOD REPORT 652

Format of the Report 653Formulating Recommendations 653

3 PRACTICING MARKETING RESEARCH: COLLEGE STUDENTS LEARN BETTER IN

POWERPOINT-DRIVEN CLASSES 654

3 PRACTICING MARKETING RESEARCH: SIX FASHION TRENDS AND FOUR COGNITIVE

SCIENCE TIPS FOR POWERPOINT 655

The Presentation 656Making a'Presentation 659

3 PRACTICING MARKETING RESEARCH: TOO MANY EXTRA GRAPHICS CAN SKEW

DECISION MAKING IN VIEWERS 660

Presentations on the Internet 6613 PRACTICING MARKETING RESEARCH: PRESENTING

MORE CONFIDENTLY 662

B Summary 663HO Key Terms & Definitions 663H Questions for Review & Critical Thinking 664• Working the Net 664H Real-Life Research 19.1: Zotech Dog Collars 664B Real-Life Research 19.2: TouchWell Tracking Research 665

20 Planning, Organizing, and Controlling the Research Function 670Marketing Research Supplier Management 672

What Do Clients Want? 672Communication 672Managing the Research Process 673

3 PRACTICING MARKETING RESEARCH: DOING HIGH-QUALITY WORK—

ON TIME 674

3 PRACTICING MARKETING RESEARCH: MANAGING A MARKETING

RESEARCH FIRM FOR PROFITABILITY 677

Client Profitability Management 679Staff Management and Development 680

3 FROM THE FRONT LINE: TIPS FOR MANAGING DIFFICULT CLIENTS 681

Managing a Marketing Research Department 682

Contents | xxiii

Allocating the Research Department Budget 682Selecting the Right Marketing Research Suppliers 684Moving Marketing Research into a Decision-Making Role 685

H Summary 689H Key Terms & Definitions 690B Questions for Review & Critical Thinking 690I I Working the Net 69113 Real-Life Research 20.1: Benson Research Deals with Growth 691• Real-Life Research 20.2: Maxwell Research Considers Outsourcing to

Cross-Tab in India 692

Photo Credits 694

Appendix One: Comprehensive Cases A-1A Biff Targets an Online Dating Service for College Students A-2B Freddy Favors Fast Food and Convenience for College Students A-5C Superior Online Student Travel—A Cut Above A-9D Rockingham National Bank Visa Card Survey A-13

Appendix Two: Considerations in Creating a Marketing Plan A-21

Appendix Three: Statistical Tables A-25

Endnotes A-32 ,

Glossary G-1

Index 1-1