session 2 chap3&4

8/22/2019 Session 2 Chap3&4

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Nature and Scope

of Marketing Research

3 - The Marketing Research Process


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Five Key Questions

Whyshould we do research? (Purpose)

Whatresearch should be done? (Objective)

Is it worth doing the research? (Value of info)

Howshould the research be designed? (Designand data collection)

Whatwill we do with the research? (Dataanalysis and report)


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Research purpose

1- Problem or opportunity identification / analysis

- What is the problem or opportunity ?

- What is the scope ?

- What are the possible reasons ?

Kroger Co. is opening 5 new Signature stores (upscale supermarkets) in

Houston. 1,000 questionnaires were sent to targeted area residents

asking what features they would like to see included in these new stores.Based on the surveys, Kroger added several variations to what already

existed in established stores: (A larger selection of wines, a sit-down

coffee bar, a large all-natural food section, U-Scan Express aisles).


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2 - Decision alternatives

- What alternative actions ?

- What timing ?

- What importance does decision have ?

Kroger Co. wants to upgrade its stores (upscale supermarkets). It can

modernize the existing concept or add new features / services. What

criteria should be considered ? Which alternative should be pursued ?

Research purpose


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3 - Users of research output

- Who are they ?

- What will they use research output for ?

- Will they need frequent updates ?

- What level of detail is needed ?

Every 6 months, Kroger Co. conducts surveys of consumer behavior in

and attitude toward its stores: number of customers per day of week, timespent in store, purchases made, etc.. Should these be maintained ?

Should they be adapted ?

Research purpose


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Research objective

Question: What is the research question to be

answered ? What specific information is needed ?

Hypothesis: What is anticipated ? What reasons are

thought to be true ? Test if the hypothesis is true.

Boundaries: What scope should the research have ?


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Research questionAsks what specific information is required

to achieve the research purpose

Sample questions to determine if a specific advertisement should be run:

Will the advertisement be noticed ?

Will it be interpreted accurately ?

Will it favorably influence attitudes ?

Will it be remembered ?

Will it have an impact on the companys image ?


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Hypothesis Development

A possible answer to a research question.

Generating a hypothesis

Draw on previous research efforts Draw on managers experience with related problems, coupled

with knowledge and the use of judgment


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Value of information

Value depends on:

Importance ofmanagers decision

Uncertainty that surrounds it

Influence of research information on decision

Direct and opportunity cost of getting the information


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Nature and Scopeof Marketing Research

4 - Research Design and Implementation

(Issues in international research are not covered)


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Research Design

= The detailed blueprint to guide the implementation of aresearch study toward the realization of its objectives

Categories of research

Exploratory

Descriptive

Causal


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Exploratory Research

Used when seeking insights into the general nature

of a problem, the possible decision alternatives,

and the relevant variables that need to be

considered :

Discover what people think about a new shampoo

Discover what eating habits people have during the day

Discover what people think of an advertisement

Discover what people look for in a leisure trip Etc.


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Descriptive Research

Provides an accurate snapshot of some aspect of

the market environment, such as:

The proportion of the adult population that supports the

Cancer Society

Consumer evaluation of the attributes of our productversus competing products.

The socioeconomic and demographic characteristics of

the readership of a magazine

The proportion of stores that are carrying, displaying, ormerchandising our products

Etc.


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Causal Research

Used when it is necessary to show that one

variable causes or determines the values of other

variables

Measuring the impact of a change in price on the level of

sales Measuring the impact of an increase in advertising on the

level of awareness

Measuring the impact of product demonstration on

intention to buy

Etc.


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Detective Funnel

The DF combines all three approaches:

Exploratorytechniques generate many possible reasons

for a problem, circumscribes a territory to be further

investigated

Descriptive and Causalapproaches narrow the possible

causes, first by providing more specific input about an

aspect of the subject under consideration, second by

establishing a cause effect link between two variables.


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Data collection methods

Relation between data collection and research category

Exploratory Descriptive Causal

Secondary Sources

Information System a bOutside databases a bSyndicated Services a b b

Primary Sources

Qualitative Research a bSurveys b a bExperiments b a

a = very appropriate, b = somewhat appropriate


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Research Implementation

After choosing the research approach, develop:

The specifics of measurements

What instrument should be used ?

Plan for choosing the sample

What kind of sample, what sample size ?

Methods of analysis

What kind of analysis will provide most informative results ?

Analysis of value versus cost and time involved

Run a more detailed cost / benefit analysis.


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Error in Research Design

Two Components of Errors

Sampling error

Non-sampling error

Sampling Error

Difference between a measure obtained from a

sample of population and the true measure that can

be obtained only from the entire population

Nonsampling Error All other errors associated with a research project


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Sources of Nonsampling Error

Design Error

Selection Error

Population Specification Error

Sampling Frame Error

Surrogate Information Error

Measurement Error

Experimental Error

Data Analysis Error


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Administering Error

- Occurs during the administration of a survey

instrument to the respondents

Questioning Error

Recording Error

Interference Error



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Response Error

Occurs when respondent provides inaccurate

answers to survey questions

Non-response Error

Occurs if

Some members of sample are not contacted Some members provide incomplete or no response to

survey instrument



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Budgeting the Research Project

Two approaches to budgeting

Estimate the dollar costs associated with each

research activity

Used for unusual or expensive projects

Determine the activities to be performed in hours and

apply standard cost estimates to these hours

Used for routine projects or when researcher has knowledge ofcosts


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Research Proposal

Describes a plan for conducting and controlling a

research project

Basis for a written contract between manager andresearcher

Basis for reviewing important decisions

Used to choose among competing suppliers and

influence decision to fund study


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Basic Contents of a Research Proposal

Executive Summary

Purpose and Scope

Objectives

Research Approach

Time and Cost Estimates

Appendices

session 2 chap3&4

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