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    Marketing Research

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    Chapter One

    A Decision MakingPerspective onMarketing Intelligence

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    Business Intelligence

    BI is the ability to access data from multiple sourceswithin an organization for the purpose of analysis.

    It links the disparate operation systems to the end

    users of the data, thus creating an environment withfree flow of information.

    It offers a reliable barometer of the businessperformance.

    The applications of BI tools are immense and can beprofitable across different functions of anorganization.

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    Business Intelligence

    Finance & Accounting

    Intelligence Marketing Intelligence HR Intelligence Operations Intelligence

    Marketing Research

    Define problem & info. needs

    Look forexisting data

    Design study

    Collect & Analyze data

    Use & Report data for decision making

    Back-End Analysis

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    Need for Marketing Intelligence

    MI focuses on the use of information as asource of strategic advantage.

    Need to have a thorough knowledge ofcustomers, their attitudes, tastes andpreferences.

    Need to analyze competition forbenchmarking and making price, product,market and segment decisions.

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    Marketing Research

    Marketing Research, a critical part of MarketingIntelligence helps by providing accurate, relevant andtimely (ART) information.

    Function of Marketing Research is to link an

    organization to its market through information Identify and define marketing opportunity and

    problems

    Generate, redefine and evaluate marketing actions

    Monitor marketing performance

    Improve understanding of marketing as a process

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    Role of Market Research

    Specifies information required

    Designs method for collecting information

    Manages and implements data collectionprocess

    Interprets results & communicates

    findings

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    Marketing Information System

    A continuing and interacting structure of people,equipment and procedures designed to gather,sort, analyze, evaluate, and distribute pertinent,timely and accurate information to marketingdecision making

    MIS Uses 3 Types of Information

    Recurring market and accounting data from market

    analysis and accounting activities Intelligence relevant to future strategy of business

    Marketing research studies not of a recurring nature

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    Role of Marketing Research inManagerial Decision Making

    Four Stages of Market Planning Process

    Situation analysis

    Strategy development

    Marketing program development

    Implementation

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    Situation Analysis

    Analysis of

    Market environment

    Market characteristics

    Consumer behavior

    Research Approaches

    Organize information obtained from priorstudies (secondary)

    Focus groups

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    Strategy Development

    Market Research Provides Information toAssist Management With Three CriticalDecisions

    What business should we be in?

    How will we compete?

    What are the objectives for the business?

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    Marketing Program Development

    Programs embrace specific tasks

    Action program usually focuses on asingle objective in support of one elementof overall business strategy

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    Implementation

    Starts with decision to proceed to a newprogram or strategy

    Commitment to objectives, budgets and

    timetables Specific measurable objectives must be set for

    all elements of marketing program

    "Did the elements achieve their objectives?" Should the marketing program be continued,

    discontinued, revised or expanded?"

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    Factors Influencing MarketingResearch Decisions

    Relevance

    Type and Nature of Information Sought

    Timing

    Availability of Resources Cost-benefit Analysis

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    Ethics in Marketing Research

    Ethics of the Sponsor

    Overt and covert purposes

    Dishonesty in dealing with suppliers

    Misuse of research information

    Ethics of the Supplier

    Violating client confidentiality

    Improper execution of researchRespondents Abuse

    Falsifying answers

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    Conquering Latino Homes

    Hispanics account for nearly 13% of the U.S.population.

    Research shows that Latino households spend

    $600 billion of $1.3 trillion purchasing power ofmulticultural population.

    In 1998 only 2.5% of total advertising dollars inthe United States was focused on Latinos.

    By 2050, Hispanic population would represent25% of US population.

    Who can tell me what the problem is?

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    P & G Luring Women with theirFeminine Toothpaste

    P & G has came out with Rejuvenating Effects agender specific toothpaste targeting the femalecustomers, who do 82% of the grocery shopping.

    The flavor and package of the product was

    decided on the basis of the results from acustomer survey filled out by women.

    Though, the product is priced slightly higherthan the other brands P & G hopes to make

    women think about the toothpaste in the samelight as skin care lotions and shampoo.

    Who thinks they were right to try.

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    Daimler Chrysler Exploring NewMarkets

    Daimler Chrysler entered the small car segment withJava in response to the increased demand for smallfuel efficient cars.

    They envision a three car plan with an ultra small carat the bottom end, Java in the middle range andMercedes A- class at the very top.

    The companys marketing research indicated that

    Java would be a success due to high demand and asthe resultant pollution from small cars is low.

    Who thinks they were right to try

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    Situation

    Analysis

    Strategy

    Development

    Marketing

    Program

    Development

    Implementation

    Understand the environment and the market

    Identify threats and opportunities

    Assess the competitive position

    Define the business scope and served marketsegments

    Establish competitive advantages

    Set performance objectives.

    Product and channel decisionCommunication decisions

    Pricing

    Personal selling decisions

    Performance monitoring

    Refining strategies and program

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    Marketing Research

    Aaker, Kumar, Day

    Eighth EditionInstructors Presentation Slides

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    Chapter Two

    Marketing Research inPractice

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    Marketing Research in Practice

    Programmatic Research

    Develops market options through market segmentation,market opportunity analysis, or consumer attitude andproduct usage studies

    Selective Research

    Tests different decision alternatives such as new producttesting, advertising copy testing, pre-test marketing, and testmarketing

    Evaluative Research

    Evaluation of performance of programs

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    Information System

    A continuing and interacting structure ofpeople, equipment, and procedures,

    designed to gather, sort, analyze, evaluate,and distribute pertinent, timely, andaccurate information to decision makers.

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    Databases

    Contain 3 types of information:

    1st type: Recurring day-to-dayinformation

    2nd type: Intelligence relevant to thefuture strategy of thebusiness

    3rd type: Research studies that arenot of a recurring nature

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    Decision Support Systems (DSS)

    DSS models are developed and adapted tosupport each firms own decision problems

    Used to retrieve data, transform it into usable

    information, and disseminate it to users Allow managers to interact directly with

    database

    To retrieve information

    Provides a modeling function to help interpretinformation retrieved

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    Use of Information Systems (IS)in Marketing Research

    IS emphasizes that market research shouldpart of systematic and continuous effort to

    improve decision-making process Marketing research used to close gaps in

    data bank revealed by use of models and

    IS

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    Marketing Decision SupportSystem

    Combines marketing data from diversesources into a single database, enabling

    product managers, sales planners, marketresearchers, financial analysts, andproduction schedulers to share

    information.

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    Marketing Decision SupportSystems Cont..

    Managers needs for decision relevantinformation:

    Routine comparisons of current performanceagainst past trends on each of the key measuresof effectiveness

    Periodic exception reports to assess which salesterritories or accounts have not matchedprevious years purchases

    Special analyses to evaluate the sales impact ofparticular marketing programs, and to predictwhat would happen if changes were made

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    Marketing Decision Support

    Systems Cont..

    Characteristics of MDSS:

    Interactive

    Flexible

    Discovery oriented

    User friendly

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    Marketing Decision SupportSystems Cont..

    Four components of MDSS:

    Database

    Reports and Displays

    Analysis capabilities

    Models

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    Gaining Insight from a MDSS

    Manager

    Modeling

    Analysis

    Display

    Database

    Environment

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    Suppliers of Information

    Corporate or in-house marketing research

    department External suppliers

    Participants in Marketing Research

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    Participants in Marketing ResearchActivities

    Information Users

    Information Suppliers:

    Inside Company

    Information Suppliers:

    Outside Company

    General management

    Planning

    Marketing and sales managers

    Product managers

    Lawyers

    Marketing research department

    Sales analysis group

    Accounting department

    Corporate strategic planning

    Research consultants

    Marketing research suppliers

    Advertising agencies

    Information suppliers and services

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    Information suppliers and services

    Information

    Supplier

    Corporate In-

    house Supplier

    Structured

    (IndependentDepartment

    Syndicated

    Services

    Customized

    Services

    Standardized

    Services

    External

    Supplier

    Unstructured

    (one or moreMR employees)

    Field

    Services

    Branded

    Product/Services

    Selective

    Services

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    Factors Influencing Choice ofInformation Supplier

    Internal personnel may not have skills orexperience

    Outside help may be called to boostinternal capacity in response tourgent deadline

    Often it is cheaper to go outside

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    Factors Influencing Choice ofInformation Supplier (Contd.)

    Outside suppliers may have specialfacilities or competencies which would be

    costly to duplicate for a single study Political considerations

    Increased credibility of research used in

    litigation or in proceedings beforeregulatory or legislative bodies

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    Type and Nature of Services

    Customized

    Work with individual clients

    Syndicated

    Routinely collect information on several differentissues and provide it to firms that subscribe to theirservices (e.g.,Nielsen television index)

    Standardized

    Projects conducted in standard, prespecified mannerand supplied to several different clients. (e.g., Starchreadership surveys)

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    Type and Nature of Services(Contd.)

    Field Suppliers concentrate only on collecting data for

    research projects

    Selective

    Specialize in just one or two aspects of marketingresearch, mainly concerning data coding data,editing or data analysis

    Brandedproducts / services

    Develop specialized data collection and analysesprocedures to address specific of research problemsthat they market as branded products

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    Criteria For Selecting External Suppliers

    Steps in deciding if supplier can deliver promised data,advice, or conclusions:

    1. A thorough search for companies with an expertise in thearea of study

    2. Selection of a small number of bidders on basis ofrecommendations of colleagues or others with similar needs

    3. Personal interviews with potential project leaders, asking forexamples of previous work, their procedures for working

    with clients, and they should provide references4. Check of references on each potential supplier, with special

    attention on expertise, creativity, and quality and adequacyof resources available

    International Marketing

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    International MarketingResearch

    Definition

    International Marketing Research can bedefined as marketing research conducted to

    aid in making decisions in more than onecountry

    Function

    Provides a systematic, planned approach tothe research process

    Ensures all aspects of the research project areconsistent with each other

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    International MarketResearch Industry

    Percentage of Worldwide MarketResearch Expenditure Per Country

    United States 39%Japan 10%

    Western Europe 40%

    Rest of World 11%

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    Career Opportunities in Marketing Research

    Marketing Research Analyst

    Marketing Information manager

    Project manager

    Director of Market Research

    Research Account manager

    Research Analyst Methodologist

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    Marketing Research

    Aaker, Kumar, Day

    Eighth EditionInstructors Presentation Slides

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    Chapter Three

    The Marketing ResearchProcess

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    Overview of Marketing Research

    Process

    MR Process Evolves From Answers to Five

    Key Questions

    Why should we do research?

    Whatresearch should be done?

    Is itworth doing the research?

    Howshould the research be designed to achieve the

    research objectives?

    Whatwill we do with the research?

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    Marketing Research Process

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    MARKETING PLANNING AND INFORMATION SYSTEM

    Planning system

    Strategic plans

    Tactical plans

    Information system

    Databases

    DSS

    1. AGREE ON RESEARCH PROCESS

    Problems or opportunities

    Decision alternatives

    Research users

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    2. ESTABLISH RESEARCH OBJECTIVES

    Problems or opportunities

    Decision alternatives

    Research users

    Estimate

    the value of

    informationIs benefit >

    cost

    Do not conduct

    marketing research

    NO

    YES

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    2. ESTABLISH RESEARCH OBJECTIVES

    Problems or opportunities

    Decision alternatives

    Research users

    5. COLLECT THE DATA

    7. REPORT THE RESEARCH RESULTS AND PROVIDE

    STRATEGIC RECOMMENDATIONS

    6. PREPARE AND ANALYZE THE DATA

    Th I t ti l M k ti R h

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    The International Marketing Research

    Process

    Marketing research process is consistent for

    both domestic and international markets

    Variety of market environments affect

    international marketing research process

    M j E i t l F

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    Major Environmental Forces

    Influencing International Marketing

    Research Process

    Economic Environment

    Social-cultural Environment Political and Legal Environment

    Technological, Multimedia and Infrastructural

    Facilities

    The Marketing Research Process

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    The Marketing Research Process

    Step 1

    Research Purpose Problem or opportunity analysis

    Which problems or opportunities are anticipated

    What is the scope of the problems and the possible reasons? Evaluation of decision alternatives

    What are the alternatives being studied?

    What are the criteria for choosing among the alternatives?

    Research users

    Who are the decision makers?

    Are there any covert purposes?

    Kroger Opens Signature Store

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    Kroger Opens Signature Store

    Kroger Co. is adding five new Signature stores in

    Houston. More than 1,000 questionnaires weresent to targeted area residents asking what kind offeatures the respondents (or future customers)would like to see included in a new supermarket

    in their neighborhood. Based on the surveys,Kroger added several variations:

    A larger selection of wines A sit-down coffee bar

    The largest all-natural food section

    U-Scan Express aisles

    The Marketing Research Process

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    The Marketing Research Process

    (Contd.)

    Step 2Research Objective

    A statement, in as precise terminology as possible, of

    what information is needed Should be framed to ensure information obtained will

    satisfy research purpose

    Research Question Hypothesis Development

    Research Boundaries

    The Marketing Research Process

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    The Marketing Research Process

    (Contd.)

    Research Question Asks what specific information is required to

    achieve the research purpose

    Sample questions to determine if a specificadvertisement should be run:

    Will the advertisement be noticed?

    Will it be interpreted accurately? Will it influence attitudes?

    The Marketing Research Process

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    The Marketing Research Process

    (Contd.)

    Hypothesis Development A possible answer to a research question.

    Generating a hypothesis

    Draw on previous research efforts

    Borrow from other disciplines such as:

    Psychology

    Sociology

    Marketing

    Economics

    Managers experience with related problems, coupled withknowledge and the use of judgment

    Source

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    Source

    Theory

    Management experience Exploratory research

    Research

    QuestionHypothesis

    Research

    Purpose

    Research

    Design

    Research

    Objective

    The Marketing Research Process

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    The Marketing Research Process

    (Contd.)

    Step 3

    Estimating the Value of Information

    Value depends on: Importance of decision

    Uncertainty that surrounds it

    Influence of research information on the decision

    Illustrative Decision Models

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    Case B

    Case A

    $ 4 million

    $ 1 million

    $ 4 million

    -$ 2.5 million

    Success

    Success

    Failure

    Failure

    Introduce

    Introduce

    Introduce

    Introduce

    Do not

    Do not

    What is an HMO?

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    What is an HMO?A health maintenance organization that involves fixedmonthly payments directly to a group of doctors or a clinic

    that is then responsible for all the health needs covered bythe plan.

    Advantages Total annual cost of an HMO to the consumer is lower than for

    group insurance plans Flat-fee formula discourages doctors from hospitalizing patients

    for longer than necessary Emphasis on preventative care produces fewer seriously ill

    patients.

    Disadvantages Restriction of the choice of physicians and hospitals to those

    affiliated with the HMO

    The International Marketing Research

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    The International Marketing Research

    Process

    Avoid mistakes: Profile you target customers and clients

    Interview target segments to assess how well they match your

    preconceived ideas

    Hire local researchers

    Use a variety of methods to get a well-rounded picture

    Qualitative methods

    Quantitative methods

    Look at the findings and analyze what must be done

    differently, abroad or internationally, in comparison with

    current domestic marketing activities

    F i R h Q i i

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    Framing Research Questions in an

    International Environment

    Possible questions: Do opportunities exist for entry into foreign markets?

    Which foreign markets warrant detailed investigation?

    What are the major economic, political, legal, and otherenvironmental facts in each potential country?

    What mode of entry does the company plan to adopt?

    What is the market potential in these countries?

    Who are the firms present and potential customers? What is the nature of competition in the foreign market?

    What kind of strategy should the firm adopt?

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    Marketing Research

    Aaker, Kumar, Day

    Eighth EditionInstructors Presentation Slides

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    Chapter Four

    Research Design andImplementation

    Research Design and

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    Research Design and

    Implementation

    Research Design

    The detailed blueprint to guide the

    implementation of a research study toward the

    realization of its objectives

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    Categories of Research

    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

    Categories of Research (Cont )

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    Categories of Research (Cont.)

    Descriptive Research Provides an accurate snapshot of some aspect of the

    market environment, such as:

    The proportion of the adult population that supports the

    United Fund

    Consumer evaluation of the attributes of our productversus competing products.

    The socioeconomic and demographic characteristics of

    the readership of a magazine

    The proportion of all possible outlets that are carrying,displaying, or merchandising our products

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    Categories of Research (Cont.)

    Causal Research Used when it is necessary to show that one variable causes or

    determines the values of other variables, a causal research

    approach must be used

    Detective Funnel

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    Detective Funnel

    Uses Combination of All Three ResearchTechniques

    Exploratory techniques generate all

    possible reasons for a problem

    Descriptive and Causalapproaches

    narrow the possible causes

    Problem

    Detective Funnel

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    Exploratory

    Research

    Probable

    Causes

    Causal

    Research

    DescriptiveResearch

    Possible

    causes of the

    problem

    Detective Funnel

    Data Collection Methods

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    Data Collection Methods

    Relationship between Data Collection Method and

    Category of ResearchCategory of Research

    Data Collection Method Exploratory Descriptive CausalSecondary Sources

    Information System a b

    Databanks of other a borganizationsSyndicated Services a b b

    Primary Sources

    Qualitative Research a bSurveys b a bExperiments b a

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    Research Tactics and Implementation

    Once the research approach has been chosen:

    Develop:

    The specifics of measurements

    Plan for choosing the sample

    Methods of analysis

    Analysis of value versus cost and time involved

    Issues in International Research

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    Issues in International Research

    Design

    Determining Information Requirements

    Consider level and type of decision for which

    research is conducted

    Two types of decisions

    Strategic

    Tactical

    Issues in International Research

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    Issues in International Research

    Design (Contd.)

    Global Strategic Decision

    Mostly made at corporate headquarters

    Information required is governed by overallcompany objectives

    Implies long term survival of company

    Deal with macro environment

    Issues in International Research

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    Issues in International Research

    Design (Contd.)

    Tactical Decisions

    Concerned with micro-level implementation

    issues

    Information obtained from primary data

    Concerned with marketing mix strategy for

    country/product markets

    Made at functional or subsidiary level

    Issues in International Research

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    Issues in International Research

    Design (Contd.)

    Unit of Analysis

    Researcher must decide at what level the analysis isdone

    Global level All countries taken simultaneously

    Regional level

    Groups of countries considered homogeneous for macro

    environmental factors

    Country level

    Each country taken as separate unit

    Construct Measurement and Sample

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    Construct, Measurement and Sample

    EquivalenceConstruct Equivalence

    Deals with how both the researcher and the

    subjects see, understand, and code a particular

    phenomenon

    "Are we studying the same phenomenon in

    countries X and Y?"

    Construct, Measurement and Sample

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    Construct, Measurement and Sample

    Equivalence (Contd.)

    Measurement Equivalence

    Deals with the methods and procedures used

    by the researcher to collect and categorize

    essential data and information

    Are the phenomenon in countries X and Y

    measured the same way?"

    Construct, Measurement and Sample

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    Construct, Measurement and Sample

    Equivalence (Contd.)

    Sampling Equivalence

    "Are the samples used in countries X and Y

    equivalent?"

    Key Pitfalls in Conducting and

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    Key Pitfalls in Conducting and

    International Research

    Selecting a domestic research company to doyour international research

    Rigidly standardizing methodologies across

    countries

    Interviewing in English around the world

    Setting inappropriate sampling requirements

    K Pitf ll i C d ti d

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    Key Pitfalls in Conducting and

    International Research (Contd.)

    Lack of systematic international

    communication procedures Misinterpreting multi-country data across

    countries

    Not understanding international differencesin conducting qualitative research

    Error in Research Design

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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 canbe obtained only from the entire population

    Nonsampling Error

    All other errors associated with a research project

    Sources of Nonsampling Error

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    Sources of Nonsampling Error

    Design Errors

    Flaws in research design

    Selection Error

    Population Specification Error Sampling Frame Error

    Surrogate Information Error

    Measurement Error Experimental Error

    Data Analysis Error

    Sources of Nonsampling Error

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    Sources of Nonsampling Error

    (Contd.)

    Administering Errors

    Occur during the administration of a survey

    instrument to the respondents Questioning Error

    Recording Error

    Interference Error

    Sources of Nonsampling Error

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    Sources of Nonsampling Error

    (Contd.)

    Response Error

    Occur when respondent provides inaccurate

    answers to survey questions

    Non-response Error

    Occur if

    Some members of sample not contacted Some members provide incomplete or no

    response to survey instrument

    B d ti th R h P j t

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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

    Determining the activities to be performed in hours

    and apply standard cost estimates to these hours

    Used for routine projects or when researcher has knowledge

    of costs

    S h d li th R h P j t

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    Scheduling the Research Project

    Identifies personnel accountable for each task within a

    given time period

    Scheduling techniques:

    Critical path method (CPM)

    Program evaluation & review techniques (PERT)

    GANTT charts Graphical evaluation & review techniques (GERT)

    Research Proposal

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    Research Proposal

    Describes a plan for conducting and controlling a

    research project

    Basis for a written contract between manager and

    researcher

    Basis for a vehicle for reviewing important

    decisions

    Used to choose among competing supplies andinfluence decision to fund study

    B i C t t f R h P l

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    Basic Contents of a Research Proposal

    Executive Summary

    Purpose and Scope

    Objectives Research Approach

    Time and Cost Estimates

    Appendices

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    Marketing Research

    Aaker, Kumar, Day

    Eighth EditionInstructors Presentation Slides

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    Chapter Five

    Secondary Sources ofMarketing Data

    D t S

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    Data Sources

    Secondary Data

    Primary Data

    PRIMARY

    DATA

    SALES/PATRONAGE RESULTS ( OUTCOMES )MARKETING ACTIVITY ( INPUTS )COST INFORMATION

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    DATA

    SOURCES

    SECONDARY

    DATA

    SOURCES

    SOURCES INTERNAL

    RECORDS

    EXTERNAL

    SOURCES

    PUBLISHED

    DATA

    STANDARDIZED

    SOURCES OF

    MARKETING

    DATA

    INTERNET

    ELECTRONIC

    PRINTED

    STORE AUDITSWAREHOUSE WITHDRAWAL SERVICESCONSUMER PURCHASE PANELSSINGLE SOURCE DATANIELSENS TELEVISION INDEX

    STARCH SCORESARBITRON PANELMULTIMEDIA SERVICES

    DISTRIBUTOR REPORTS AND FEEDBACKCUSTOMER FEEDBACK

    GOVERNMENTTRADE ASSOCIATIONSPERIODICALSNEWSPAPERSBOOKSANNUAL REPORTSPRIVATE STUDIES

    Sources of

    Secondary Data

    Uses of Secondary Data

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    Uses of Secondary Data

    Can solve the problem on hand all by its own

    Can lead to new ideas and other sources

    Helps to define the problem more clearly Can help in designing the primary data

    collections process

    Helps in defining the population / sample

    Can serve as a reference base

    Benefits and Limitations of Secondary

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    Data

    Low cost

    Less effort Less time

    At times, more accurate

    At times, only way to obtain

    data

    Collected for some other purpose

    No control over data collection

    May not be accurate

    May not be in correct form

    May be outdated

    May not meet data requirements

    Assumptions have to be made

    Benefits Limitations

    Internal Sources of Secondary Data

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    Internal Sources of Secondary Data

    Internal Records

    Accounting Data

    Sales Reports Inventory Management

    Customer Database

    External Sources of Secondary

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    y

    Data

    Published data sources (e.G., Census,publications of various trade associations)

    Trade directories

    Computer retrievable databases ("online"

    databases)

    Computer Retrievable Database

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    Based on the Method of

    Storage and Retrieval ofInformation

    Based on the Type of

    Information

    Source ReferenceOn-lineDatabases

    CD-ROMDatabases

    Floppy DiscDatabases

    Indirect

    through

    Networks

    Direct from

    Producer

    Direct from

    Vendors

    Internet

    Computer-Retrievable Methods

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    Computer-Retrievable Methods

    Scope of information

    available

    Speed of information accessand retrieval

    Commercially available

    search procedures provide

    considerable flexibility andefficiency

    Rely solely on the accuracy of

    the abstract author

    Depend on the journal andarticle selection policy of the

    database producer

    Might miss important

    information, or retrieve a lot ofirrelevant data if searching by

    keyword

    LimitationsAdvantages

    Sources of Secondary Data for

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    Sources of Secondary Data for

    International Marketing Research

    Economic Data

    United Nations World Bank

    Business International Publications

    Euromonitor World Casts

    Sources of Secondary Data for

    I i l M k i R h

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    International Marketing Research

    (Contd.)Industry Data United Nations yearbooks

    U.S. Department of commerce The Economist (publication)

    World Casts

    Background Data Dun and Bradstreet publications (e.G. Exporter's guide)

    Price Waterhouse publications

    SIC / NAIC Code

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    Standard Industrial Classification System /

    North American Industrial Classification Uniform numbering systems for classifying firms

    Up to 7 digits

    Total economy is divided into 11 divisions

    Classification SIC # DescriptionMajor group 57 Home furniture and equipment stores

    Subgroup 571 Home furniture and furnishings

    Detailed industry 5712 Furniture stores

    5713 Floor covering stores

    Appraising Secondary Sources

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    Appraising Secondary Sources

    Factors to Be Considered: Who has collected the data (did they have adequate resources)?

    Why was the data collected (how the interests of agency match

    with ours)? How the data was collected (to determine the quality of data on-

    hand)?

    What data was collected (geographic and demographic

    limitations)?

    When the data was collected (how old/obsolete is the data)?

    Applications of Secondary Data

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    Applications of Secondary Data

    Monitoring the Environment

    Demand Estimation

    Applications of Secondary Data

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    (Contd.)

    Census data Standard Industrial

    Classification (SIC)

    Trade association data Experts and authorities

    Press releases Legislation and laws

    Industry news

    Business and practitionerliterature, such as

    magazines

    Demand Estimation Monitoring the Environment

    Applications of Secondary Data (Contd )

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    Applications of Secondary Data (Contd.)

    PRIZM CLUSTER PLUS

    ACORN

    DMI SIC

    TIGER

    Competitors annualreports

    Press releases

    Segmentation and Targeting Developing a BusinessIntelligence System

    Problems Associated with Secondary

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    Problems Associated with Secondary

    Data in International Research

    Data Accuracy

    Comparability of Data

    Applications of Secondary Data in

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    International Research

    There Are Four Types of Data Analysis Usefulin Demand Estimation in International

    Markets

    Lead-lag Analysis

    Surrogate Indicators

    Cross-sectional Data / Barometric Procedures Econometric Forecasting Model

    Growth of Standardized Sources

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    Growth of Standardized Sources

    Factors

    Multitude of information users having

    common information needs

    When cost of satisfying individual user's need

    is prohibitive

    The increasing use of scanner systems at thecheck out points

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    Marketing Research

    Aaker, Kumar, Day

    Eighth Edition

    Instructors Presentation Slides

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    Chapter Six

    Standardized Sources ofMarketing Data

    Growth of Standardized Sources

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    G ow o S d d ed Sou ces

    Factors

    Multitude of information users having common

    information needs

    When cost of satisfying individual user's need is

    prohibitive

    The increasing use of scanner systems at the check

    out points

    Audits and Surveys:

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    y

    National Market Audit

    Bi-monthly audit focused on products

    irrespective of the outlet carrying the product

    Retail Store Audits

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    Every two months a team of auditors from a

    research firm visits a sample of stores to count

    the inventory on hand and record deliveries to

    the store since the last visit

    Beginning inventory + deliveriesending inventory = sales

    Nielsen Retail Index

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    Biggest research company in the world

    Their auditing services cover four groups

    Grocery products Drugs

    Mass merchandisers

    Alcoholic beverages

    Consumer Purchase Panels

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    To Cover the Gap Between Warehouse Withdrawal

    Audits and Actual Purchases Following Methods Can

    Be Used

    Home Audit Approach

    Panel member agrees to permit an auditor to checkthe household stocks of certain product categories at

    regular intervals

    Mail Diary Method

    Panel member records the details of each purchase

    and returns the diary by mail at regular intervals

    Advantages of Consumer Panels

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    g

    Can Provide Information On:

    Aggregate Sales Activity

    Brand Shares

    Shifts in Buyer Characteristics

    Shifts in Retail Outlets

    Limitations of Consumer Panels

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    Limitations of Consumer Panels

    Possibility of Selection Bias

    Mortality Effect

    Testing Effects

    Scanner Services

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    Scanner-Based Audit Services Benefits:

    High degree of accuracy

    Time savingAbility to study very short time periods of

    sales activity

    RFID

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    A new technology that may replace the barcodes. Utilizing a tiny silicon chip to store

    information; a small transmitter would then send

    this information to a scanner. RFID offers more

    benefits than a UPC, such as:

    The ability to store more information

    The ability to change the information on the tag

    The ability to transmit all the information on the

    chip to a scanner without clear line of sight

    Single-source Systems

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    g y

    Usually set up in self-contained communitieswith their own newspapers and cable TV and

    are roughly representative of the demographics

    of the country A test panel of community households is

    recruited and monitored

    Advantages of Single Source Systems

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    Advantages of Single Source Systems

    Availability of exclusive pre-test records

    Immediate availability of test results

    Ability to compare households prior to andafter exposure to the message

    Ability to control settings

    Expert Systems Based on Single-

    source Services

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    source Services

    Since users of scanner data are flooded with massiveamounts of data, expert systems are used to help theusers understand the data quickly

    Examples of Expert Systems Are:

    Apollo Space Management Software

    Cover Story

    Sales Partner

    Promotion Stimulator

    Spotlight

    Media Related Standardized Sources

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    Nielsen Television Index (NTI)

    A system for estimating national T.V. audiences

    Arbitron Diary Panel

    Both regional and national radio and TV panels

    Starch Scores

    Print media

    Multi Media Services

    Measurement Systems

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    Mechanics No wire connections Wired directly to TV andVCR tuners

    Research Methods Data retrieved by

    reading UTCP codes

    Telephone connections

    used to return data

    Method of Data

    Collection

    User logs in/out before

    and after watching TV

    User punches numerical

    code into data-entry

    device

    Reputation as: Media measurement

    business serving the

    ratio industry

    Foremost in TV ratings

    SMART PEOPLE METER

    Marketing Decision Support Systems

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    g pp y

    A typical marketing manager receives some or all of followingdata:

    Factory shipments or order

    Syndicated aggregate (industry) data services

    Sales reports from sales personnel

    Consumer panel data

    Scanner data

    Demographic data

    Internal cost and budget data

    Purpose of MDSS is to combine marketing data from diversesources into single database

    Applications of Standardized Sources

    f D t

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    of Data

    Scanner data Starch scores

    Diary panels NTI

    ArbitronMultimedia services

    Measuring Promotion

    Effectiveness

    Measuring Ad Exposure

    and Effectiveness

    Applications of Standardized Sources

    f D t (C t )

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    of Data (Cont.)

    Diary panels Scanner dataRetail audits Starch scores

    Scanner data Diary panels

    Internal records Internal records

    SIC

    Measuring Product

    Sales and Market Share

    Estimation and

    Evaluation of Models

    Applications of Standardized

    S f D t (C td )

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    Sources of Data (Contd.)

    Measuring product sales and market share

    Measuring advertisement exposure and

    effectiveness

    Measuring promotion effectiveness

    Estimation And evaluation of models

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    Marketing Research

    Aaker, Kumar, Day

    Eighth Edition

    Instructors Presentation Slides

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    Chapter Eight

    Information Collection:

    Qualitative and Observational

    Methods

    Information Collection :

    Qualitative and Observational

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    Qualitative and Observational

    MethodsQualitative Methods

    Recommended to capture the basic feel of a

    problem prior to conducting more analytical

    study

    Observational Methods

    These methods are limited to providing

    information on current behavior

    Qualitative Research Methods

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    Exploratory

    Conducted primarily to explicitly define the problemand formulate hypotheses

    Orientation To learn more about target consumer (e.G. Culture,

    language)

    Clinical

    To gain insights into topics that are difficult in astructured research

    Qualitative Research Methods

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    Four major constraints:

    Volume of data

    Complexity of analysis

    Detail of clarification record

    Time-consuming nature of the clerical effortsrequired

    Computer technology helps alleviate theseproblems and increase the use of qualitativeresearch

    Use of Computers in Qualitative

    Research

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    Research

    Transmitting

    Storing

    Coding Searching and Retrieving

    Building Relationships

    Matrix Building

    Individual In-depth Interviews

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    Nondirective interviews (respondent enjoys

    maximum freedom)

    Semi-structured or focused individual interviews

    Covers a specific list of topics or sub-areas

    Individual in-depth interviews (3 techniques):

    Laddering

    Hidden-issue

    Symbolic Analysis

    Focus Group Discussions

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    Offers participants more stimulation than aninterview; makes new ideas and meaningful

    comments more likely

    Issues to be addressed:

    Outlining the intended direction of the group

    Explaining how participants were recruited

    Reeducating observers on the concepts of random

    selection, statistical reliability, and projectability of

    research results

    Types of Focus Groups

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    Exploratory Focus Groups

    Used in the exploratory phase of the market research process

    Used for generating the hypotheses

    Clinical Focus Groups

    Based on the premise that an individual's true feelings and

    motivations are subconscious in nature

    Experiencing Focus Groups

    Allows the researcher to experience the emotional framework

    in which the product is being used

    Key Factors for Focus Group Success

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    Planning the Agenda

    Recruitment

    Moderation Analysis and Interpretation of the Results

    Ten Tips for Running a Successful Focus Group

    Y d h l i f f

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    1. You can never do too much planning for a focus group.

    2. Manage the recruitment process actively to be sure to get the right people in the

    groups.3. Dont prejudge the participants based on physical appearance.

    4. The best focus group moderators bring objectivity and expertise in the process to a

    project.

    5. Achieving research objectives does not guarantee a successful group project.

    6. The moderator and the client should coordinate their efforts at all stages of theprocess for the research to achieve its objectives.

    7. Most client organizations conduct more focus groups than are necessary to achieve

    the research objective

    8. One of the most important services a moderator can provide is a fast report

    turnaround.

    9. Client observers should be thoroughly briefed about the research objectives before

    the sessions start.

    10. The most valuable service a moderator can provide is objective conclusions based

    on the interpretations of the research, without regard for what the client wants to

    hear.

    Trends in Focus Groups

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    Telephone Focus Groups

    Video Conference

    Two-way focus groups

    Projective Techniques

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    Respondent is asked to comment upon rather

    unstructured or ambiguous object, activity

    The Various Categories of Projective

    Techniques Are

    Word Association

    Completion Test

    Picture Interpretation

    Third Person Techniques

    Role Playing

    Limitations of Qualitative Methods

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    Potential susceptibility of the results to getmisused or misinterpreted

    Results not necessarily representative of the

    whole population

    Moderator or interviewer's role is extremely

    critical can lead to ambiguous or at times

    misleading results

    Observational Methods

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    Casual Observation

    Systematic Observation

    Direct Observation

    Contrived Observation Content Analysis

    Physical Trace Measures

    Humanistic Inquiry Behavior Recording Devices

    Limitations of Observational Methods

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    Cannot be used to observe motives, attitudes orintentions

    More costly and time consuming

    Recent Applications of Qualitative

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    and Observational Methods

    Get inside minds of shoppers by providing tape

    recorders and having them record their thoughts

    while shopping

    Virtual Customers system for evaluating service

    quality

    On-site observation

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    Marketing Research

    Aaker, Kumar, Day

    Eighth Edition

    Instructors Presentation Slides

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    Chapter Nine

    Information from Respondents:

    Issues in Data Collection

    Information From Surveys

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    Used to Capture a Wide Variety of Information:

    Attitude

    Decisions

    Focus on process and not the results

    Measuring the relationship between actions &

    needs, desires, preferences, motives and goals

    Sources of Survey Error

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    The Results Will Be Meaningful If:

    Population has been defined correctly

    Sample is representative of the population

    Respondents selected are able and willing to cooperate

    Questions are understood by the respondents

    Respondents have the knowledge, opinions, attitudes, orfacts required

    Interviewer correctly understands and records theresponse

    Ambiguity Interviewer

    Sources of Survey Error

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    POPULATION RESPONDENT INTERVIEWERSample Question

    Answer

    Sampling error

    Nonresponse

    due to refusals

    or not-at-home

    g y

    of question error

    Ambiguity

    of answer

    Inaccuracy in

    response

    Inability to

    formulate aresponse

    Unwillingnessto respond

    Non-response Errors Due to Refusals

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    Refusals Could Occur Due to:

    Nature of questions and place

    Subject of no interest to the respondent

    Fear

    Invasion of privacy

    Hostility towards sponsor

    Personal bias

    Characteristics of the data collection procedure (e.G.,Presidential polls)

    Non-response Errors Due to Refusals(Cont.)

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    ( )

    Phenotypic Source Characteristics of the data collection procedure

    Question asked

    How question is asked

    Length of interview

    Genotypic Source

    Indigenous characteristics of the respondents

    Age Sex

    Occupation

    Inaccuracy in Response

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    Inability to respond Telescoping

    Averaging

    Omission

    Cannot formulate an adequate answer

    Some of these problems can be solved by:

    Aided-recall techniques

    Unwillingness to Respond Accurately

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    This Could Arise Due to the FollowingReasons:

    Concern about invasion of privacy

    Time pressure and fatigue

    Prestige seeking and social desirability response bias

    Courtesy bias

    Uninformed response bias

    Response style

    Interviewer Error

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    This Depends On: Respondents Impression of the Interviewer

    Questioning, Probing, and Recording

    Fraud and Deceit

    Improving Interviewer Quality

    Methods of Data Collection

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    Personal Interview

    Telephone Interview

    Mail Survey

    Fax Survey

    E-mail Survey

    Web-based Survey

    Factors Affecting the Choice of a

    Survey Method

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    y

    Sampling

    Type of Population

    Question Form

    Question Content

    Response Rate

    Costs

    Available Facilities

    Length of Data Collection

    Ethical Issues in Data Collection

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    Misrepresentation of Data Collection Process StemsFrom:

    Representation of a marketing activity other thanresearch as research

    Abuse of respondents rights during the data collectionprocess, under the rationale of providing better qualityresearch. E.G.,

    Use of survey for selling purposes Use of survey to obtain names and addresses ofprospects for direct marketing

    Ethical Issues in Data Collection

    (Contd.)

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    (Contd.)

    The Rights of the Respondents Can Be Violated By:

    Disguising the purpose of a particular measurement

    Deceiving the prospective respondent as to the true

    duration of the interview

    Misrepresenting the compensation in order to gain

    cooperation

    Ethical Issues in Data Collection

    (Contd.)

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    ( )

    The Rights of the Respondents Can Be Violated By:

    Not mentioning to the respondent that a follow up interview will

    be made

    Using projective tests and unobtrusive measures to circumvent theneed for a respondents consent

    Using hidden tape recorders

    Not debriefing the respondent

    Conducting simulated product tests in which identical product is

    tried by respondent except for variations in color

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    Marketing Research

    Aaker, Kumar, Day

    Eighth Edition

    Instructors Presentation Slides

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    Chapter Ten

    Information from Respondents:

    Survey Methods

    Collecting Data

    G id li

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    Guidelines:

    Reviewing data

    Getting started

    Setting the feedback objective

    Customer presentation

    Sharing responsibility

    Handling issues you cannot fix

    Working the issue resolution with youraccount

    Basic Survey Methods

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    Personal Interview

    Telephone Interview

    Mail Survey

    Personal Interviews

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    There Are Four Entities Involved: Researcher

    Interviewer

    Interviewee

    The Interview Environment

    Personal Interviews (Contd.)

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    Methods: Door to Door Interviewing

    Executive Interviewing

    Mall Intercept Surveys

    Self Administered Interviews

    Purchase Intercept Technique (PIT)

    Omnibus Surveys

    Personal Interviews (Contd.)

    Ad t

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    Advantages:

    Can arouse and keep interest

    Can build rapport

    Ask complex questions with the help of visual and other aids

    Clarify misunderstandings

    High degree of flexibility

    Probe for more complete answers

    Accurate for neutral questions

    Do not need an explicit or current list of households or

    individuals

    Personal Interviews (Contd.)

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    Disadvantages:

    Bias of Interviewer

    Response Bias

    Embarrassing/personal questions

    Time Requirements

    Cost Per Completed Interview Is High

    Telephone Interviewing

    The Important Aspects of Telephone Interviewing:

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    p p f p g

    Selecting telephone numbers Pre-specified list

    A directory

    Random dialing procedure

    Random digit dialing

    Systematic random digit dialing (SRDD)

    Call outcomes

    The introduction When to call

    Call reports

    Telephone Interviewing (Contd.)

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    Advantages:

    Central location, under supervision, at own hours

    More interviews can be conducted in a given time

    Travelling time is saved

    More hours of the day are productive

    Repeated call backs at lower cost

    Absence of administrative costs

    Lower cost per completed interview Intrusiveness of the phone and ease of call backs

    Less sample bias

    Telephone Interviewing (Contd.)

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    Limitations:

    Inability to employ visual aids or complex tasks

    Can't be longer than 5-10 min. or they get boring

    Amount of data that can be collected is relativelyless

    A capable interviewer essential

    Sample bias

    As all people do not have phones, or are not listed

    Mail Surveys

    Requires a broad identification of the individuals to be

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    sampled before data collection begins

    Some Decisions That Need to Be Taken Are:

    Type of Return Envelope

    Postage

    Method of Addressing

    Cover Letter

    The Questionnaire Length, Layout, Color, Format Etc

    Method of Notification

    Incentive to Be Given

    Mail Surveys (Contd.)

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    Advantages:

    Lower cost

    Better results, including a shorter response time

    Reliable answers as no inhibiting intermediary

    Survey answered at respondents discretion

    Mail Surveys (Contd.)

    Di d

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    Disadvantages:

    The identity of the respondent is inadequately

    controlled

    No control over whom the respondent consultsbefore answering the questions

    The speed of the response can't be monitored

    No control on the order in which the questionsare exposed or answered

    Mail Surveys (Contd.)

    Di d (C d )

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    Disadvantages (Contd.):

    The respondent may not clearly understand thequestion and no opportunity to clarify

    No long questionnaires

    Subject to availability of a mailing list

    Response rate is generally poor

    Number of problems such as obsolescence,omissions, duplications, etc

    Factors Affecting the Response Rate

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    Perceived amount of work required, and thelength of the questionnaire

    Intrinsic interest in the topic

    Characteristics of the sample

    Credibility of the sponsoring organization

    Level of induced motivation

    Factors Affecting the Response Rate

    (Cont.)

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    Coping with non-response: Include monetary incentive

    Send a follow-up letter

    Include return envelope

    Alternatives:

    Mail Panels

    Fax Surveys

    Combination of Survey Methods

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    The Telephone Pre-notification Approach The Lockbox Approach

    The Drop-off Approach

    Comprehensive Advantages of

    Various Methods

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    Survey Method: Personal Interviewing

    The best way to implement some sample

    designs Most effective way of enlisting cooperation.

    Advantages of interview questions-probing for

    adequate answers, accurately followingcomplex instructions or sequences arerealized.

    Comprehensive Advantages of Various

    Methods (Cont.)

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    Multi-method data collection are feasible

    Rapport and confidence building are

    possible.

    Probably longer interviews can be done in

    person.

    Comprehensive Disadvantages of

    Various Methods

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    Survey Method: Personal Interviewing

    It is likely to be more costly than alternatives.

    A trained staff of interviewers that isgeographically near the sample is needed.

    The total data collection period is likely to belonger than for most procedures.

    Some samples may be more accessible by someother mode.

    Comprehensive Advantages of

    Various Methods

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    Survey Method: Telephone Interviewing

    Lower costs than personal interviews.

    Random Digit-Dialing (RDD) sampling ofgeneral population.

    Better access to certain populations

    Shorter data collection periods.

    Comprehensive Advantages of Various

    Methods (Cont.)

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    The advantages of interviewer administration (Incontrast to mail surveys).

    Interviewer staffing and management easier than

    personal interviews-smaller staff needed, notnecessary to be near sample, supervision andquality control potentially better.

    Likely better response rate from a list sample

    than from mail

    Comprehensive Disadvantages of

    Various Methods

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    Survey Method: Telephone Interviewing

    Sampling limitations, especially as a result of omitting

    those without telephone

    Nonresponse associated with RDD sampling is higherthan with interviews

    Questionnaires or measurement constraints

    Possibly less appropriate for personal or sensitivequestions if no prior contact

    Comprehensive Advantages ofVarious Methods

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    Survey Method: Self-Administration

    Ease of presenting questions requiring visual

    aids. Asking questions with long or complex

    response categories is facilitated.

    Asking batteries of similar questions ispossible.

    Comprehensive Disadvantages of

    Various Methods

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    Especially careful questionnaire design isneeded.

    Open questions usually are not useful. Good reading and writing skills are needed by

    respondents. The interviewer is not present to exercise quality

    control with respect to answering all questions,

    meeting questions objectives, or the quality ofanswers provided.

    Comprehensive Advantages of

    Various Methods

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    Survey Method: Mail Procedures

    Relatively low cost Can be accomplished with minimal staff and

    facilities. Provides access to widely dispersed samples. Respondents have time to give thoughtful

    answers, look up records, or consult others.

    Comprehensive Disadvantages of

    Various Methods

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    Various Methods

    Ineffective as a way of enlisting cooperation. Various disadvantages of not having

    interviewer involved in data collection.

    Need for good mailing addresses for sample.

    Comprehensive Advantages of

    Various Methods

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    Survey Method: Drop-off questionnaire

    The interviewer can explain the study, answer

    questions, and designate a respondent. Response rates tend to be like those of personal

    interview studies.

    There is more opportunity to give thoughtfulanswers and consult records.

    Comprehensive Disadvantages of

    Various Methods

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    Various Methods

    Costs about as much as personal interviews. A field staff is required.

    Comprehensive Advantages of

    Various Methods

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    Survey Method: Fax Surveys

    Relatively low cost

    Can be accomplished with minimal staff and facilities Provides access to widely dispersed samples.

    Respondents have time to give thoughtful answers.

    Telephone charges are decreasing.

    Comprehensive Advantages of

    Various Methods (Cont.)

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    ( )

    Local faxes are free.

    Administrative costs are fixed.

    It is fast. Technology is improving.

    List management is easy.

    Can send and receive by computer. More reliable than mail in some countries.

    Comprehensive Disadvantages of

    Various Methods

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    Survey Method: Fax Surveys

    Higher fixed costs for computer/fax equipment,

    multiple phone lines. Costs increase with minutes.

    Cost varies by time on line, time of day, distance, andtelephone carrier.

    Currently limited to organizational populations. Loss of anonymity.

    Trends in Survey Methods

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    Computer Interactive Interviewing Fax Surveys

    Electronic Mail Surveys

    Surveys in the International Context

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    Personal

    Dominant mode of data collection outside the US

    Telephone

    Low levels of telephone ownership in some countries

    Poor communication network in some countries

    Mail

    Absence of mailing lists

    Poor mail services in some countries

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    Marketing Research

    Aaker, Kumar, Day

    Eighth Edition

    Instructors Presentation Slides

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    Chapter Eleven

    Attitude Measurement

    Attitude Measurement

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    Majority of questions in marketing research aredesigned to measure attitudes

    Attitudes include

    Information possessed

    Feelings of like and/or dislike

    Intentions to behave

    Management wants to understand and influence

    behavior

    Reasons for Measuring Attitudes

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    Attitudes lead to behavior

    More feasible to ask questions on attitudes than to

    observe and interpret behavior

    Large capacity for diagnosis and explanation

    Learn which features of a new product concept are

    acceptable or unacceptable

    Measure the perceived strengths and weaknesses of

    competitive alternatives

    What Are Attitudes?

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    Mental states used by individuals to structurethe way they perceive their environment and

    guide the way they respond to it

    Components of Attitude

    Cognitive or Knowledge Component

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    Cognitive or Knowledge Component

    Represents apersons information about an object

    Awareness of existence on the object

    Beliefs about the characteristics or attributesof the object

    Judgments about the relative importance of

    each of the attributes

    Components of Attitude (Cont.)

    Affective or Liking Component

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    Affective or Liking Component

    Summarizes a persons overall feelings toward anobject, situation, or person

    On a scale oflike-dislike orfavorable-unfavorable

    When there are several alternatives, liking is

    expressed in terms of preference

    Measured by asking which alternative is mostpreferred or first choice, which is the secondchoice, and so on

    Components of Attitude (Cont.)

    Intention or Action Component

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    Intention or Action Component

    Refers to a persons expectations of future behaviortoward an object

    Intentions are usually limited to a distinct time

    period that depends on buying habits and planninghorizons

    Advantage

    Incorporates information about a respondentsability or willingness to pay for the object, or othertaken action

    Measurement and Scaling

    Measurement

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    Standardized process of assigning numbers or other

    symbols to certain characteristics of objects of interests

    according to pre-specified rules

    Characteristics for Standardization

    One-to-one correspondence between the symbol and the

    characteristic in the object that is being measured

    Rules for assignment should be invariant over time and

    the objects being measured

    Measurement and Scaling (Contd.)

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    Scaling Process of creating a continuum on which

    objects are located according to the amount of

    the measured characteristic that the objectpossesses

    Measurement Scales

    Nominal Scale

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    Nominal Scale

    Objects are assigned to mutually exclusive, labeled

    categories

    No necessary relationships among categories No ordering or spacing are implied

    Only possible arithmetic operation is a count of each

    category

    Measurement Scales (Contd.)

    Ordinal Scale

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    Ordinal Scale

    Rank objects or arrange them in order by some common

    variable

    Does each object have more or less of a variable than

    some other object?

    Does not provide information on how much difference

    between objects

    Arithmetic operations are limited to statistics such as

    median or mode

    Measurement Scales (Contd.)

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    Interval Scale

    Numbers are assigned to objects that represent

    categories, rank orders, as well as how much the object

    is preferred on the attribute being measured Differences can be compared

    Entire range of statistical operations can be employed

    Measurement Scales (Contd.)

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    Ratio Scale Type of interval scale with meaningful zero point

    Possible to say how many times greater or smaller one

    object is than another Magnitude scaling of attitudes has been calibrated

    through numeric estimation

    Attitude Rating Scales

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    Present a respondent with a continuum ofnumbered categories that represent the range

    of possible attitude adjustments

    Single item or multiple item scales

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    Single Item Scales

    Only have one item to measure a construct

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    Only have one item to measure a construct

    Itemized-category scale most widely used bymarketing researchers

    Other single item scales Comparative

    Rank-order

    Q-sort

    Pictorial

    Constant sum

    Single Item Scales (Contd.)

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    Itemized-category Scales Scales in which the respondent selects from a

    limited number of categories

    Comparative Scale

    A judgment comparing one object, concept, orperson against one another

    Single Item Scales (Contd.)

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    Rank-order Scales Scale in which the respondent compares one item

    with another or a group of items against each

    other and ranks them

    Q-sort Scaling

    Respondents sort comparative characteristics into

    normally distributed groups

    Ten or more groups increases accuracy of results

    Single Item Scales (Contd.)

    Constant-sum scale

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    Respondents allocate a fixed number of rating pointsamong serial objects to reflect relative preference

    Pictorial scales

    Various categories of the scale are depicted pictorially Thermometer Scale

    Funny faces scale

    Format must be comprehensible to respond and allowaccurate response

    Single Item Scales (Contd.)

    Paired-Comparison Scales

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    The brands to be rated are presented two at a time, so eachbrand in the category was compared once to every other brand

    Brands are rated on a given 10 pts. that are then divided

    between the two brands

    Advantages

    Performs well on the criteria

    Limitations

    Cumbersome to administer Frame of reference is always the other brand being tested; these

    brands may change over time

    Designing Single Item Scales

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    Number of Scale Categories Types of Poles Used in the Scale

    Strength of the Anchors

    Labeling of the Categories

    Balance of a Scale

    Multiple-item Scales

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    Developed to measure a sample of beliefstoward the attitude objects and combine the set

    of answers into an average score

    Multiple-item Scales (Contd.)

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    Likert Scale Requires respondent to indicate degree of

    agreement or disagreement with a variety ofstatements related to the attitude object

    Summated Scale

    Scores on individual items are summed to give totalscore for respondents

    Likert Scale Is Uni-dimensional

    Multiple-item Scales (Contd.)

    Thurstone Scales

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    Also known as the method of equal-appearing intervals;objective is to obtain a unidimensional scale with

    interval properties

    Step 1: Generate a large number of statements or adjectives reflecting

    all degrees of favorableness toward the attitude of objects

    Step 2:

    A group of judges is given this set of items and asked toclassify them according to their degree of favorableness or

    unfavorableness

    Multiple-item Scales (Contd.)

    Thurstone Scales (Cont.)

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    Advantages

    Easy to administer

    Requires minimum instructions

    Limitations Time consuming

    Expensive to construct

    Not as much diagnostic value as a Likert scale Values depend on the attitudes of the original judges

    Multiple-item Scales (Contd.)

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    Semantic-differential Scale Respondents rate each attribute object on a

    number of five or seven-point rating scales

    bounded by polar adjectives or phrases With bipolar scale, the midpoint is a neutral

    point

    Characteristics of SemanticDifferential

    Scales in Semantic Marketing Applications:

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    Scales in Semantic Marketing Applications:

    Pairs of objects or phrases must be meaningful in market

    being studied and often correspond to product/service

    attributes

    Avoid "halo" effect by placing negative pole on either side

    Category increments are treated as interval scales so group

    mean values can be computed for each object on each scale

    May also be analyzed as a summated rating scale

    Characteristics of Semantic

    Differential (Contd.)

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    Profile Analysis

    Application of semantic differential scale

    Plot mean ratings of each object on each scalefor visual comparison

    Overall comparison of brands hard to grasp withmany brands and attributes

    Not all attributes are independent

    Multiple-item Scales (Contd.)

    Stapel Scales

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    p

    Uses one pole rather than two opposite poles

    Respondents select a numerical response

    category High positive score reflects good fit between

    adjective and object

    Easy to administer and construct No need to assure bipolarity

    Multiple-item Scales (Contd.)

    Associative Scaling

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    g

    Most effective for markets where respondent isknowledgeable only about a small subset of alarge number of choices

    Appropriate to choice situations that involve asequential decision process

    Best suited to market tracking where theemphasis is on understanding shifts in relativecompetitive positions

    Multiple-item Scales (Contd.)

    Continuous Rating Scales

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    Continuous Rating Scales

    Respondents rate objects by placing a mark at

    appropriate position on a line running from one

    extreme of the criterion variable to the other Values can be interpreted as interval or ratio

    scaled data

    It is easy to construct

    Scoring is cumbersome and unreliable

    General Guidelines For Developing A

    Multiple-Item Scale

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    Determine clearly what you are going to

    measure

    Generate as many items as possible

    Ask experts in the field to evaluate the

    initial pool of items

    Determine the type of attitudinal scale

    to be used

    Include some items that will help in the

    validation of the scale

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    Evaluate and refine the items

    Administer the items to an initial

    sample

    Finally, optimize the scale length

    Choosing An Attitudinal Scale

    Problems in choosing

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    There are many different techniques, each with its ownstrengths and weaknesses

    Virtually any technique can be adapted to the

    measurement of any one of the attitude components

    Researchers choice shaped by: The specific information required

    Adabtability of the scale to the data collection method

    and budget constraints

    Compatibility of the scale with the structure of the

    respondents attitude

    Accuracy of Attitude Measurements

    Validity

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    An attitude measure has validity if it measures what it is

    supposed to measure

    Face Validity

    The extent to which the content of a measurement scaleappears to tap all relevant facets of the construct

    Criterion Validity

    Based on empirical evidence that the attitude measurecorrelates with other criterion variables

    Accuracy of Attitude Measurements(Cont.)

    Concurrent va

    lidity

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    Two variables are measured at the same time

    Predictive validity

    The attitude measure can predict some future event

    Convergent validity

    A form of construct validity that represents theassociation between the measured construct and

    measures of other constructs with which theconstruct is related on theoretical grounds

    Discriminant validity

    Accuracy of AttitudeMeasurements (Cont.)

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    A form of construct validity that represents the extent

    to which the measured construct is not associated

    with which the construct is related on theoretical

    groundsConstruct Validity

    A scale evaluation criterion that relates to the

    underlying question "what is the nature of theunderlying variable or construct measured by the

    scale?"

    Accuracy of Attitude Measurements(Contd.)

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    Reliability The consistency with which the measure produces the

    same results with the same or comparable population

    Sensitivity

    Extent to which ratings provided by a scale are able

    to discriminate between the respondents who differ

    with respect to the construct being measured

    Accuracy of AttitudeMeasurements (Contd.)

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    Generalizability Refers to the ease of scale administration and

    interpretation in different research settings and

    situations

    Relevancy

    Relevance = reliability * validity

    Scales in Cross-national Research

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    Responses Can Be Affected by:

    Low literacy and educational levels

    Culture in a country

    Semantic differential scale is closest to pan

    cultural scale

    Adapting response formats, particularly theircalibration, for specific countries and cultures

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    Marketing Research

    Aaker, Kumar, Day

    Eighth Edition

    Instructors Presentation Slides

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    Chapter Twelve

    Designing the Questionnaire

    Designing the Questionnaire

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    Questionnaire buildingis an art!

    A questionnaireis always custom-built!

    The process of questionnaire design

    PLANNING WHAT TO MEASURE

    Revisit the research objectives

    Decide on the research issue of your questionnaire

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    Get additional information on the research issue from secondarydata sources and exploratory research

    Decide on what is to be asked under the research issue

    FORMATTING THE QUESTIONNAIRE

    In each issue, determine the content of each question.

    Decide on the format of each question

    QUESTION WORDING

    Determine how the question is worded

    Evaluate each research question on the basis of comprehensibility,

    knowledge and ability, willingness/inclination of a typical respondent to

    answer the question

    FORMATTING THE QUESTIONNAIRE

    In ea