Marketing Research (Midterm 1)

Question 1

Primary Research

Answer 1

YOU DO THE RESEARCH, targets a specific issue or problem, expensive.

Question 2

Secondary Research

Answer 2

OTHERS HAVE ALREADY DONE IT, broad but relatively cheap or free and saves a lot of time.

Question 3

Good Market Research

Answer 3

1) specific questions
2) relevant data sample
3) clear answers (methods fit the research)
4) strategic direction/how-to’s
5) flavored w/voice of customer

Question 4

Market Research Process

Answer 4

1) Define
2) Design
3) Collect
4) Analyze
5) Act

Question 5

Correlation

Answer 5

A and B occur simultaneously. Don’t assume that causality leads to a correlation!!! A could cause B OR B could cause A or C could cause A and B!

Question 6

Causality

Answer 6

A causes B

Question 7

Coverage Error

Answer 7

sample doesn’t represent population of interest (screening questions)

Question 8

Sampling Error

Answer 8

small sample, large population (increase sample size)

Question 9

Measurement Error

Answer 9

questions don’t measure what you want to measure (ask the right questions!)

Question 10

Non-response Error

Answer 10

obtained sample differs from original selected sample (non/late respondents)

Question 11

Regression analysis

Answer 11

Relationship between a dependent variable and one or more independent or predictor variables. How does a predictor variable change the outcome variable? WEEKEND SKI TICKET SALES, READERSHIP OF MEDICAL JOURNALS, HAMBURGER BUN SALES

Question 12

factor analysis

Answer 12

factor analysis is used reduce data, to simplify a data set by identifying highly correlated variables and grouping them into factors. TAKE 14 MEASURED CUSTOMER ATTITUDES (GROCERY STORE) AND GROUP THEM INTO FOUR

Question 13

cluster analysis

Answer 13

Grouping objects or people into groups based on similarities (demographics/behaviors), Divide markets into segments

Question 14

discriminant analysis

Answer 14

factor analysis + cluster analysis=Ability of predictor variables to discriminate between categories, Generate perceptual maps depicting relationships btwn brands and brand attributes. ATTRIBUTES OF DIFFERENT CARS, ATTRIBUTES OF SODA (tart vs sweet, socially aceptable).

Question 15

MaxDiff analysis

Answer 15

Measures most/least important or most/least appealing Determine choice preferences TURF–>which combination of products is most profitable?

Question 16

conjoint analysis

Answer 16

1) deconstructs products into component attributes
2) estimates the value of each component attribute
3) reconstructs existing and potential products in a way that allows researchers to estimate the value of each product.

Used to aid product development and pricing choices & build market simulations to measure the impact of those choices. VIDEO OF WOOZLES, SWISS KNIFES which attributes are most important and at what price should they be sold. determines trade-offs customers are willing to make.

Question 17

Cross Tabs

Answer 17

Frequency counts, Conditions, attitudes, and/or behaviors that occur most often (specific attitudes or behaviors that occur more often than would be expected) ICE CREAM COUNT

Question 18

Analysis of variance

Answer 18

Analysis of variance is based on averages and variability around an average. Researchers are looking for averages that differ well beyond what their variability would suggest WHICH PLACEMENT OF CEREAL IS MOST PROFITABLE

Question 19

Marketing Research Rule

Answer 19

If the cost of a wrong assumption is less than the cost of research, don’t do the research!

If the cost of a wrong assumption is more than the cost of research, do the research!