Week 1 Flashcards
Theory
Marketing Decision Problem
A business needs to decide what to do (e.g., Should we launch a new product?).
Action Oriented
Sees obvious measurable symptoms (such as: unhappy customers, loss of sales)
Marketing Research Problem
The company needs to gather information to support the decision (e.g., What do consumers want in a new product?).
Information oriented
Focuses on the underlying causes of the symptoms
Sees Real Problems (such as: low-quality products, poor image, unethical treatement of customers)
Nominal Level of Measurement
Nominal (level of measurument) includes measuring nominal variables:
Nominal Variable is a type of categorical (non metric) variable that represents different categories without any order.
Key Points:
No Order: The categories have no ranking (e.g., “Red” is not higher or lower than “Blue”).
Distinct Categories: Each observation fits into one category only.
Example:
Favorite Color: Categories like “Red,” “Blue,” “Green,” and “Yellow” are nominal. They just name different colors without any ranking.
Ordinal Level of Measurement
Ordinal (level of measurument) includes measuring ordinal variables:
Ordinal Variable is a type of categorical variable where the categories have a meaningful order or ranking, but the differences between the categories are not necessarily equal.
This means you can say that one category is higher or lower than another, but you cannot quantify the difference between them.
Ranking based on some qualitative criteria
Example:
Educational Levels: Categories like “high school diploma,” “bachelor’s degree,” “master’s degree,” and “Ph.D.” can be ordered, but the differences in education level aren’t quantitatively equal.
Interval Level of Measurement
Interval (level of measurument) includes measuring interval variables:
Interval Variable a type of a metric variable that has the following characteristics:
Order: can be ranked in a meaningful order.
For example: a temperature of 30°C is higher than 20°C.
Equal Intervals: The difference between values is consistent and meaningful.
For example, the difference between 20°C and 30°C is the same as the difference between 30°C and 40°C
No True Zero Point: Unlike ratio variables, interval variables do not have a true zero point.
For example, in temperature measured in Celsius, 0°C does not mean “no temperature”; it is simply a point on the scale.
Ratio (scale) Level of Measurement
Ratio (level of measurument) includes measuring ratio variables:
Ratio Variable: a type of a metric variable that is same as interval variable, with the added feature of having a true zero point.
For example, a weight of 0 kg means no weight, and a length of 0 meters means no length.
Meaningful Ratios: Since there is a true zero point, you can make meaningful comparisons using ratios.
For example, if one person weighs 60 kg and another weighs 120 kg, you can say that the second person is twice as heavy as the first.
Bc of this, Ratio variables can be used for a wide range of statistical analyses. This makes them one of the most informative types of data in quantitative research.
Quantitative Research
focuses on measuring and analyzing numerical data.
Aims to find patterns, relationships, or trends by using statistics and data analysis.
For example: “How many people bought this product?” and then use numbers to describe the results.
Qualitative Research
explores people’s thoughts, feelings, and experiences in-depth
It focuses on understanding the why and how behind behaviors, rather than measuring them with numbers.
uses methods like interviews, focus groups, and observations to gather detailed insights.
For example, “Why do people like this product?”
Exploratory Research
used to explore a problem when there is limited knowledge.
Its goal is to gather insights and generate ideas for future, more detailed research.
Often used at the beginning stages of a project to help define a problem, identify potential causes, or discover patterns.
For example, a company might conduct exploratory research to understand why sales are dropping.
Descriptive Research
Describing characteristics of a population, event, or phenomenon
Aims to provide a detailed picture of the subject being studied.
For example, gathering data on customer preferences or buying behaviour
Difference between Exploratory and Descriptive Research
DIFFERENCE: Exploratory research is for discovering new insights, while Descriptive research focuses on giving detailed information
Causal Research
Understanding the impact of one factor on another
To identify cause-and-effect relationships between variables.
Often involves controlled experiments
Example:
Whether a marketing campaign leads to increased sales, they might implement the campaign in one area and not in another, then compare the sales figures to see if there is a significant difference.
Secondary Data
Data previously collected for puposes other than the current research question/ objective
Internal - Accounting, operating records Customer transaction databases,
External - market and industry research publishers, trade associations, government agencies
Primary Data
Data collected specifically to asnwer the research question(s)
Types of Primary Data:
Demogrpahics, Attitudes, Knowledge, Motivation, Behaviour
Collecting Primary Data:
Communication: Asking respondents questions (Surveys, focus groups)
Observation: Watching the situation and recording the relevant behaviour
Syndicated Research
Large-scale, conducted by 3rd party (research firm) and sold to multiple subscribers (multiple clients), providing market research data (example: data website, you pay, they give you insights)
Example:
Nielsen conducts syndicated research on consumer purchasing behaviour and sells this data to various clients (who want to understand their market dynamics).
