Marketing Management 4 Conducting Marketing Research
4-2Marketing Research Defined Systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company.
4-3The Marketing Research Process• Define the problem• Develop the research plan• Collect information• Analyze information• Present findings• Make decision
4-4Step 1 • Define the problem • Specify decision alternatives • State research objectives
4-5Three types of objectives• Exploratory research ▫ Research to gather preliminary information that will help define problems and suggest hypothesis• Descriptive ▫ To better describe marketing problems, situations, or markets such as market potential for a product or the demographics and attitudes of consumers• Causal research ▫ To test hypotheses about cause-effect relationship
4-6Step 2• Data sources ▫ Primary ▫ Secondary• Research approach• Research instruments• Sampling plan• Contact methods
4-9Question Types—Dichotomous In arranging this trip, did you contact Air India? Yes No
4-10Question Types—Multiple ChoiceWith whom are you traveling on this trip? No one Spouse Spouse and children Children only Business associates/friends/relatives An organized tour group
4-11Question Types—Likert ScaleIndicate your level of agreement with the followingstatement: Small airlines generally give betterservice than large ones. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
4-12Question Types—Semantic Differential Air IndiaLarge ………………………………...…………….SmallExperienced………………….………….InexperiencedModern………………………..………….Old-fashioned
4-13Question Types—Importance Scale Airline food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important
4-14Question Types—Rating Scale Air India’s food service is _____. Excellent Very good Good Fair Poor
4-15Question Types—Intention to Buy Scale How likely are you to purchase tickets of Air India if in-flight Internet access were available? Definitely buy Probably buy Not sure Probably not buy Definitely not buy
4-16Question Types—CompletelyUnstructured What is your opinion of Air India?
4-17Question Types—Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ Air India _____________________ Travel ________________________
4-18Question Types—Sentence Completion When I choose an airline, the most important consideration in my decision is _________________________________________ _________________________________________ _________________________________________ _________________________________________ _________________________________________ ___________________________________.
4-19Question Types—Story Completion“I flew Air India a few days ago. I noticed that theexterior and interior of the plane had very brightcolors. This aroused in me the following thoughtsand feelings.” Now complete the story.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
4-21Qualitative Measures• Shadowing ▫ observing people using products, shopping, going to- hospitals, taking the train, using their cell phones• Behavior mapping ▫ photographing people, such as a hospital waiting room, over two or three days• Consumer journey ▫ keeping track of all the interactions a consumer has with a product, service, or space
4-22Qualitative Measures• Camera journals ▫ asking consumers to keep visual diaries of their activities and impressions relating to a product• Extreme user interviews ▫ talking to people who really know — or know nothing about a product or service and evaluating their experience using it.• Storytelling ▫ prompting people to tell personal stories about their consumer experiences.• Unfocused groups ▫ Interviewing a diverse group of people e.g. an artist, a bodybuilder, a podiatrist
4-23Sampling Plan• Sampling unit: Who is to be surveyed?• Sample size: How many people should be surveyed?• Sampling procedure: How should the respondents be chosen?
4-24Types of Samples Probability Nonprobability • Simple random • Convenience • Stratified • Judgment random • Quota • Cluster
4-25Contact Methods• Mail questionnaire• Telephone interview• Personal interview• Online interview
4-26The Measures of Market Demand• Potential market (interested consumers who have sufficient level of interest)• Available market (interested consumers having sufficient income and access to the product (qualified available market)• Target market (part of qualified available market the company decides to pursue)• Penetrated market (set of consumers who are buying the product)
4-27Estimating Future Demand• Survey of buyers’ intentions• Composite of sales force opinions• Expert opinion• Past-sales analysis• Market-test method
4-28Analysis• Most data are initially qualitative: they must bequantified to permit statistical analysis.• Quantitative analysis involves the techniques bywhich researchers convert data to a numerical formand subject it to statistical analyses.
4-29Quantification of Data• Some data, such as age and income, are intrinsically numerical.• Often, quantification involves coding into categories that are then given numerical representations.• Researchers may use existing coding schemes (e.g., Census occupation) or develop their own coding categories. In either case, the coding scheme must be appropriate to the nature and objectives of the study.• A codebook is the document that describes the identifiers assigned to different variables and the codes assigned to represent the attributes of those variables.
4-30Quantitative Analysis• Univariate - describe a case in terms of a single variable.• Subgroup comparisons – describe the similarities and differences between/among groups.• Bivariate - describe a case in terms of two variables simultaneously.• Multivariate - analysis of two or more variables simultaneously.
4-31Univariate Analysis• Univariate analysis is the analysis of a single variable. Because univariate analysis does not involve the relationships between two or more variables, its purpose is descriptive than exploratory.• Several techniques allow researchers to summarize their original data to make them more manageable while maintaining as much of the original detail as possible. Frequency distributions, averages, grouped data, are all ways of summarizing data concerning a single variable.
4-32Average (Central Tendency)• Mean: result of diving the sum of the values by the total number of cases.• Median: middle attribute in the ranked distribution of observed attributes.• Mode: the most frequently occurring attribute.
4-33Dispersion Refers to the way values are distributed around some central value.• Standard Deviation: the most commonly used measure of dispersion.• A higher standard deviation means that the data are more dispersed; a lower standard deviation means that they are more bunched together.Subgroup Comparisons can be used to describe similarities and differences among subgroups with respect to some variables
4-34• Bivariate analysis focuses on relationships between variables rather than comparisons of groups. Bivariate analysis explores the statistical association between the independent variable and dependent variable. Its purpose is usually explanatory rather than merely descriptive.• Multivariate analysis is a method of analyzing the simultaneous relationships among several variables. It may also be used to understand the relationship between two variables more fully
4-35Multivariate Analysis Methods• Two general types of MVA technique ▫ Analysis of dependence Where one (or more) variables are dependent variables, to be explained or predicted by others E.g. Multiple regression ▫ Analysis of interdependence No variables thought of as “dependent” Look at the relationships among variables, objects or cases E.g. cluster analysis, factor analysis
4-36Application Examples• Is one product better than the other?• Which factor is the most important to determine the performance of a system?• What are the relationships between variables?
4-37Major Uses of Multivariate Analysis• Data reduction or structural simplification• Sorting and grouping• Investigation of the dependence among variables• Prediction• Hypothesis construction and testing