M2 - 09 Marketing Research

Question 1

Why do marketers research?

Answer 1

To get trustworthy information that helps us make decisions.
• Be Objective
• Be Ethical/transparent
• “Be professional”: Analyze situation, before calling your research responsible

Question 2

What is the Scientific Method?

Answer 2

A decision-making approach that focuses on being objective and orderly in testing ideas before accepting them

Hypothesis => Test => Demonstration or Refutation

Question 3

How do you break up the primary hypothesis into a more complex secondary hypothesis?

Answer 3

Secondary Hypothesis are “easier to test” (mathematically measurable) –> Stating and testing Hypotheses helps making objective decisions.

example: Packaging size is a qualifying dimension, when making a purchase decision
(consumers care about the amount they buy each time)
1) Small and Big Packs (amt. product per purchase) are equally available.
2) Consumer buy more small packs of the product than big ones.

Question 4

What is the 5 step application of the scientific method in the marketing research process?

Answer 4

1) Define the Problem
2) Analyze the Situation
3) Get specific data (about the Problem)
4) Interpret the data you have gathered
5) Solve the Problem

Question 5

Describe step 1 in the marketing research process.

Answer 5

step 1 = defining the problem and research objectives

Identify the PROBLEM AREA and the NEEDED INFORMATION about it:
– Do you know your Target Market?
– Do you know how to work out your Marketing Mix?
-will you need exploratory, descriptive, or casual research?

Question 6

Describe step 2 in the marketing research process.

Answer 6

Analyzing the Situation

• • A Situation Analysis is an informal study of what information is already available in the problem area (Secondary Data vs. Primary Data).
    
    • defines problem and info need for research by having a full understanding

MK Manager and Research Specialist: different people, different views. Make sure you have a deep understanding of the Problem, and Get your research specialist to look for the right information!!

Question 7

Describe step 3 in the marketing research process.

Answer 7

Getting Problem specific Data
- Look for primary data: Obtaining Primary Data is EXPENSIVE, so you had better be realistic:
– What information do you really need?
– How much does it cost? Will it yield a profit to make the effort?
– Will your Marketing Decision (due to Research conclusions) pay?

There are many approaches to gathering Primary Data. Examples may be:

• Observational Research: Observing relevant people, actions and situations. (ethnographic)

– Survey Research: Asking people about their experiences, attitudes, preferences…

– Experimental Research: Administering different treatments and checking the
response of selected matching groups.

Question 8

explain the 3 different techniques for getting problem specific data in Marketing Research.

Answer 8

Survey:

1) focus group
2) in-depth interview
3) Personal Survey
4) Other Surveys (electronic, mail, phone)
5) Panels

Observational:

1) Mystery Shopping
2) Audits and Store Checks
3) Ethnographic (visit habitat)
4) Equipment observation methods

Experimental:

1) Market Tests
2) deconstruction of a satisfaction index
3) Laboratory tests

Question 9

Describe the qualities of a focus group survey technique. (Step 3)

Answer 9

• Qualitative survey
• Based on a personal interview to 6 to 10 people at a time
• Guided by a trained interviewer that “focuses” the group’s attention
• Specially recommended for:
– Complex situation analysis (Consumers’ Perceptions involved)
– Product & Product Concept tests: Qualifying Dimensions/ Attributes
– Advertising pre-tests
• Conditionings:
– Make sure the sample is right: Statistically non-representative, but…
– Interpretation is key!!

Question 10

Describe the qualities of an in-depth interview survey technique. (Step 3)

Answer 10

• Qualitative survey – May include Ethnographical aspects, or not
  • Based on individual extensive interviews to members of the Target
  • Guided by an interviewer that centers attention in the interesting topics
  • Specially recommended for:
  – Understanding perceptions and motivations (Why’s!)
  – Product Concept tests: Qualifying Dimensions/ Attributes
  – Advertising pre-tests
  • Conditionings:
  – Interpretation is key!!
  – Non-representative conclusions

Question 11

Describe the qualities of an Quantitative Surveys technique. (Step 3)

Answer 11

Contact Methods:
– Mail questionnaires
– Telephone Interviews (personal or automatized)
– Personal interviews (paper, CATI…)
• Specially recommended for:
– Information that has to be representative of real Population (Universe)
– Estimating demand, Understanding market trends, consumption
patterns…
• Conditionings:
– Sampling (representative?!): Who, How many, How are chosen.
– Costly
– Closed-end Questionnaires

Question 12

Describe the qualities of an Quantitative Surveys technique. (Step 3)

Answer 12

A Quantitative survey regularly conducted over a static sample.
• Contact Methods:
– Direct questionnaires
– Equipment (“audio-meters”, bar-code scanners…)
• Specially recommended for:
– Analyzing evolution of consumption trends
– Analyzing decision making in POS
– Analyzing current/constant evolution information (e.g. TV Audience)
– Analyzing distribution
• Conditionings:
– Constant: Expensive/ not feasible for a Company (has to be bought)

Question 13

Describe the qualities of a Store-check observational research technique. (Step 3)

Answer 13

Observational approach
• Contact Methods:
  – Real visit to the Point of Sale
• Specially recommended for:
  – Analyzing shelf-space
  – Finding new competitive launches
  – Analyzing POS Promotions
• Conditionings:
  – Needs lots of field work to be representative (disperse POS…)

Question 14

Describe the qualities of a Mystery Shopping observational research technique. (Step 3)

Answer 14

Observational approach

• Contact Methods:
– Visit to the POS + Interaction with the salesclerk
– Equipment (camera)

• Specially recommended for:
– Analyzing POS factors (as in store-checks)
– Sales process:

• Customer service
• Product knowledge and Endorsement by sales assistants

• Conditionings:
– Needs lots of field work to be representative (disperse POS)
– Need for a trained MS Team
– Detection

Question 15

Describe the qualities of an Equipment-Based Observation methods research technique. (Step 3)

Answer 15

Observational approach
• Contact Methods:
– mechanic, computerized or other technical or technological tools

• Specially recommended for:
– Purchase Behavior / Behavior in POS
– Response to Promotional messages

• Conditionings:
– Expensive equipment
– Rarely found professionals
– Interpretation (gives you the what’s, but not the why’s)

Question 16

Describe the qualities of a Market test experimental method research technique. (Step 3)

Answer 16

Observational approach
• Consists on applying a different treatments to different groups of consumers,
and analyzing their response

• Usually use isolated groups (geographically disperse markets)

• Specially recommended for:
– New Product development & launch or Changes in Product/Service
– Response to Promotional activity

• Conditionings:
– Risky (it is the “real world”)
– Needs analysis of the ability of the group to represent the Universe
– Interpretation (gives you the what’s, but not the why’s)

Question 17

Describe the qualities of a Laboratory tests experimental research technique. (Step 3)

Answer 17

Observational approach
• Consists on applying a different treatments to different groups of consumers,
and analyzing their response, in a laboratory environment that simulates a
real situation.

• May use mechanic, computerized or other technical or technological tool

• Specially recommended for:
– Analyzing POS behavior
– New Product development & launch
– Response to Promotional activity

• Conditionings:
– Laboratory situations tend to modify Consumers real behavior
– Others, as in conventional Market tests

Question 18

type of research based on classification criteria for research:

1) What is research conducted for?

Answer 18

it is conducted per its objectives. is the information your looking for exploratory (gathering preliminary info), descriptive (goals to describe an environment), causal (cause/effect test/hypothesis)

Question 19

What are the five criteria that should be considered when classifying types of research?

Answer 19

1. What is the Research conducted for?
   - Exploratory / Descriptive / Causal
2. Is the consumer an “active part” of the research?
   - Observational / Ethnographic / Survey
3. From inside the Company, or elsewhere?
   - Internal vs. external
4. Is it Newly gathered or already Available?

primary vs. secondary

5. Statistical data treatment or unitary case analysis?

quantitative vs. qualitative

6. Does it describe reality (what’s, when’s, who’s, why’s…) or does it create a controlled environment to look for causal relationships between variables?

Question 20

type of research based on classification criteria for research:

2. Is the consumer an “active part” of the research?

Answer 20

depends on the research approach. for example:

• observational approach, observing in and outside the natural environment
• ethnographic approach, observing in habitat (home visits)
• Survey (questioning consumers)

Question 21

type of research based on classification criteria for research:

3. From inside the Company, or elsewhere?

Answer 21

your data source will determine if the research will be done within or outside of the company itself.
source data = internal or external.

Question 22

type of research based on classification criteria for research:

4. Is it Newly gathered or already Available?

Answer 22

the timeliness of your data depends on its origins… is it a primary or secondary source.

Question 23

type of research based on classification criteria for research:

5. Statistical data treatment or unitary case analysis?

Answer 23

the applicability of your data will depend on the representativeness of your info; whether your research is qualitative or quantitative.

Question 24

Describe quantitative research.

Answer 24

n the social sciences, Quantitative Research refers to the systematic empirical investigation of social
phenomena via statistical, mathematical or computational techniques. It is generally defined by:
1. Asking specific, narrow question (close-ended questions)
2. Collecting numerical data from participants (Sample)
3. Analyzing the data with the help of statistics
4. Hoping for the numbers to yield an unbiased result
5. Generalizing the result to a larger population (Universe)

The objective of quantitative research is to develop and employ mathematical models, theories and/or hypotheses
pertaining to phenomena. The process of measurement is central to it, because it provides the fundamental connection
between empirical observation and mathematical expression of quantitative relationships. Quantitative data is any data
that is in numerical form such as statistics, percentages, etc.

Question 25

describe qualitative research.

Answer 25

Qualitative research, on the other hand, asks broad questions and collects word data from participants.
The researcher tries to find (Objective) themes and describes (Process) the information in themes and patterns that are
exclusive to that set of participants (data are not representative: conclusions cannot be generalized).
Qualitative methods produce information only on the particular cases studied, and any more general conclusions are
only hypotheses; while Quantitative methods can be used to verify which of such hypotheses are true

Question 26

type of research based on classification criteria for research:

6. Does it describe reality (what’s, when’s, who’s, why’s…) or does it create a
   controlled environment to look for causal relationships between variables?

Answer 26

(Mix of Objective –it is Causal– and Approach –it is Observational–) Experimental (as opposed to Descriptive)

Experiment: Methodical trial and error procedure carried out with the goal of verifying, falsifying, or establishing the
validity of a hypothesis. In other words, it is a method of testing - with the goal of explaining - the nature of reality. Experiments can vary from personal and informal (e.g. tasting a range of colas to find a favorite), to highly controlled
(e.g. tests requiring complex apparatus overseen by many scientists…)

Experiment: Methodical trial and error procedure carried out with the goal of verifying, falsifying, or establishing the
validity of a hypothesis. In other words, it is a method of testing - with the goal of explaining - the nature of reality.
Experiments can vary from personal and informal (e.g. tasting a range of colas to find a favorite), to highly controlled
(e.g. tests requiring complex apparatus overseen by many scientists…)

Question 27

Ethnographic research can be classified under which technique for collecting primary date?

Answer 27

observational

Question 28

describe the primary data collecting technique of panels. (step 3)

Answer 28

• -> A Quantitative survey regularly conducted over a static sample.
• -> • Contact Methods:
  
  • Direct questionnaires
  • Equipment (“audio-meters”, bar-code scanners…)

–> Specially recommended for:
– Analyzing evolution of consumption trends
– Analyzing decision making in POS
– Analyzing current/constant evolution information (e.g. TV Audience)
– Analyzing distribution

–> Conditionings:
Constant: Expensive/ not feasible for a Company (has to be bought)

Question 29

Describe step 4 in the marketing research process.

Answer 29

4) Interpret the data you have gathered

• Experts (i.e., psychologists) needed when based on Qualitative techniques
• Easier when Research is based on Quantitative techniques:
  – Statistical Packages for data analysis
  – Closed-end Questions (yes/no, 1 to 5, etc…)
• About Quantitative Research, question the following:
  – Is it Representative?? (random does not mean haphazard!)
  – Is it Valid?? (measures what we want to measure?)
  – Is it Accurate?? (Does it measure it adequately?)
• Importance of the Sample (a part of the relevant population).
  – Sampling Unit & Sample Size
  – Sampling method (random vs non-random)
  – Statistical properties…

Question 30

What decision(s) are we going to make in step 5 of the marketing research process.?

Answer 30

The one(s) that will solve the Problem
we have already “discovered” and analyzed.
Research has to have an action implication: There’s something to do!
- Choose a Target?
- Change the policy in one of the 4P’s?