Marketing Research: Overview

Jeremy Kees, Ph.D.

What is Marketing Research?

• ….. the process of collecting and using information for marketing decision-making

• Marketing Research is conducted by:– Companies large and small

– Independent Marketing Research Firms

What is Marketing Research?

• Marketing Research helps us:– Assess Market Potential (Target Market

Selection)

– Explore what Product/Service Offerings Customers Want

– Develop New Products

– Develop Effective Promotional Strategies

– Determine price points

– Measure Existing Customer Satisfaction

– Monitor the External Environment

Stages in theResearch Process(ResearchersPerspective)

Determine Research Design

Analyze and Interpret the Data

Design Sample and Collect Data

Formulate Problem

Design Data Collection Method and Forms

Prepare the Research Report

Popular Research Designs

• Exploratory Research– “Discovery”

• Descriptive Research– “Relationships”

• Causal Research– Experiments

Exploratory Research

CausalResearch

DescriptiveResearch

•Formulate problems more precisely•Develop Hypotheses•Establish priorities for research•Eliminate impractical ideas•Clarify concepts

•Literature search•Experience survey•Analysis of select cases•Interviews•Ethnographies•Focus groups•Etc.•Describe segment characteristics

•Estimate proportion of people who behave in a certain way•Make specific predictions

•Longitudinal study•Panels•Sample Survey

•Provide evidence regarding causal relationships•Rule out all other explanations •Laboratory experiment

•Field experiment

Uses Types

Overview of Research Design

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Descriptive Research

Exploratory Research

Causal Research

Relationship Among Research Designs

Qualitative versus Quantitative Research

Data• Quantitative = numeric data

• Qualitative = non-numeric data– Caveat – all qualitative data can be coded and all

quantitative data is based on judgment

• Common Assumption:– Qualitative Data = preliminary

– Quantitative Data = confirmatory

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Qualitative Research

To gain a qualitative understanding of the underlying reasons and motivations

Small number of non-representative cases

Unstructured

Non-statistical

Develop an initial understanding

Objective

Sample

Data Collection

Data Analysis

Outcome

Quantitative Research

To quantify the data and generalize the results from the sample to the population of interest

Large number of representative cases

Structured

Statistical

Recommend a final course of action

Qualitative vs. Quantitative Research

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• Focus groups: small group discussions led by a trained moderator

• Objectives:• Generate ideas• Understand consumer vocabulary• Reveal consumer needs, motives,

perceptions, and attitudes on products and services

• Understand findings from quantitative studies

Focus Groups

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• Advantages:• Generation of fresh ideas• Client interaction• Versatility• Ability to tap special respondents

• Disadvantages:• Representative of the population?• Subjective interpretation• High cost-per-participant

Focus Groups

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Group Size 8-12

Group Composition Homogeneous respondents,

prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Audiocassettes and/or Video

Moderator Observational, interpersonal, and communication skills of the

moderator

Focus Group Characteristics

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• In-Depth interview• Uses a set of probing questions posed one-on-

one to a subject by a trained interviewer so as to gain an idea of what the subject thinks about something or why he or she behaves a certain way

• Ethnographies• developing understandings of the everyday

activities of people in local settings

• Observation• Insight into actual, not reported, behaviors

• Mystery Shopping

Other Popular Qualitative Techniques

Descriptive Research

• Describe what is going on or exists• Estimate how groups of consumers might

behave• Examine relationships between two or

more variables• Predict

Descriptive Research

• Two Basic Types1. Longitudinal

2. Cross-Sectional

Causal Research

• Helps us determine if one or more IVs (treatment, predictors) causes or affects one or more DVs (outcome variables)

• Most demanding design—strongest conclusion• Requires the highest degree of understanding of

the problem

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Scientific investigation in which an investigator manipulatesand controls one or more independent variables and observes the dependentvariable for variation concomitant to themanipulation of the independent variables

Laboratory Experiment

Experiment

Field Experiment

Research study in a realistic situationin which one or more independent variables are manipulated by theexperimenter under as carefully controlled conditions as the situation will permit

Research investigation in which investigator creates a situation with exact conditions, so as to control some, and manipulate other, variables

Types of Experiments

Definitions and Concepts

• Independent variables (IV) are variables or alternatives that are manipulated and whose effects are measured and compared, e.g., price levels.

• Test units are individuals, organizations, or other entities whose response to the independent variables or treatments is being examined, e.g., consumers or stores.

• Dependent variables (DV) are the variables which measure the effect of the independent variables on the test units, e.g., sales, profits, and market shares.

• Extraneous variables are all variables other than the independent variables that affect the response of the test units, e.g., store size, store location, and competitive effort.

– Covariates

Validity

• Internal validity refers to whether the manipulation of the independent variables or treatments actually caused the observed effects on the dependent variables. Control of extraneous variables is a necessary condition for establishing internal validity.

• External validity refers to whether the cause-and-effect relationships found in the experiment can be generalized. To what populations, settings, times, independent variables and dependent variables can the results be projected?

Causal Research (Experimental Design)• Internal Validity

Causal Research (Experimental Design)• External Validity

Design Data Collection and Forms

• Secondary Data• Exploratory Research

– Informal and flexible

– Script

• Descriptive / Causal Research– Rigid and Structured

– Survey

Design Sample and Collect Data

• Why is sampling important??

• Basic Sampling Methods– Probability

– Non-Probability

Analyze and Interpret Data

• Exploratory Research– Identify themes and patterns

– Open for more subjective researcher interpretation

• Descriptive / Causal Research– Statistical Analysis

• Regression, ANOVA, Multidimensional Scaling, Cluster Analysis, etc.

• More “conclusive”

Prepare Research Report

• Key Issues– Try to be objective as possible and honest

with your client

– Take note of the technical sophistication of your client

– Be careful when reporting results versus making inferences / recommendations

Critical Issue

• The MOST important issue to consider throughout the research process is making sure that the research is actionable.

• Avoid “nice to know” research projects!!!