MKTG 448 Exam 1 - FLASHCARDS - Market Intelligence
What is the five step research process for market intelligence?
- Formulate the problem or question
- Determine the source of information and design a research process
- Choose the appropriate data collection method
- Collect the data
- Analyse and interpret the data
What is secondary data?
Data that was previously gathered by someone else for a separate purpose
What is primary data?
Collection of new data gathered by you or your firm
Why would someone use secondary data?
• Enables better problem definition
• Suggests further data to use
• Substitutes for primary data when you can’t get it
• Provides comparative data
True or false: secondary data is almost always faster and less expensive than using primary data?
TRUE
What type of data is already collected by the company itself?
Internal secondary data
What type of data is already collected by another party?
External secondary data
True or false: Any data that is internal secondary data should be gathered at the beginning of the collection process, as it is readily available with limited cost?
TRUE
What is an example of commonly used internal secondary data?
company accounting data, such as cost of goods sold, sales by product, expenditures by time period, etc
What are the two types of primary data?
experimental and non-experimental
What is the key characteristic of experimental research?
It involves exposing subjects to different conditions (e.g., A/B testing) and measuring the results.
Why is A/B testing commonly used in online marketing?
It is easy to implement and allows precise measurement of purchasing impacts.
What is the primary trade-off in experimental research?
Internal validity (control) vs. external validity (generalizability).
Why are lab experiments beneficial for internal validity?
They provide strong control over variables, reducing bias.
What is the advantage of field experiments over lab experiments?
They measure real-world behavior, allowing causal inferences.
Name three forms of non-experimental research.
Observational research, interviews, focus groups, and surveys.
What is the main purpose of observational research?
To collect primary data by observing people’s behavior and interactions.
Why is observational research useful in marketing?
It captures behaviors that people may be unable or unwilling to report.
What is a key limitation of observational research?
Some behaviors are private and cannot be observed.
What distinguishes an individual interview from a focus group?
Interviews are one-on-one, while focus groups involve multiple participants discussing a topic.
What is a semi-structured interview?
An interview with a guide but no fixed questions, allowing open-ended responses.
What is a key limitation of interviews?
They are expensive and cannot be generalized.
Why are focus groups useful for market research?
They encourage group discussion on products, ads, or market trends.
What is the ideal size of a focus group?
8-12 people.
How can a moderator influence a focus group?
Their characteristics may shape the discussion, potentially introducing bias.
What are two disadvantages of focus groups?
They can be expensive, and dominant participants may influence quieter ones.
What is a key advantage of surveys?
They provide structured data on knowledge, attitudes, and preferences.
What are some challenges of survey research?
Wording issues, dishonest responses, and memory errors.
What is the goal of market research?
To understand customer preferences and perceptions relative to competitors.
What is a perceptual map?
A visual representation of customer perceptions of competing products.
What is a preference map?
A visual display of customer preferences for product attributes.
How does a joint space map differ from a perceptual map?
It combines perceptions and preferences in one visualization.
What statistical method helps determine consumer trade-offs in product features?
Conjoint analysis.
What is the purpose of conjoint analysis?
To understand how consumers value different product attributes.
How is a trade-off analysis used in marketing?
It determines what features customers are willing to prioritize over others.
How does market-share forecasting help businesses?
It predicts how a new product will perform against competitors.
What is the role of cost-benefit analysis in product development?
It balances customer preferences for features with associated costs.
