Descriptive Research Design Descriptive Research Design Survey and ObservationSurvey and Observation

Chapter VIChapter VI

Chapter OutlineChapter Outline1) Overview1) Overview

2) Survey Methods2) Survey Methods

3) Survey Methods Classified by Mode of Administration3) Survey Methods Classified by Mode of Administration i. Telephone Methodsi. Telephone Methods a. Traditional Telephone Interviewsa. Traditional Telephone Interviews b. Computer-Assisted Telephone Interviewing (CATI)b. Computer-Assisted Telephone Interviewing (CATI) ii. Personal Methodsii. Personal Methods

a. Personal In-home Interviewsa. Personal In-home Interviews b. Mall-Intercept Personal Interviewsb. Mall-Intercept Personal Interviews c. Computer-Assisted Personal Interviewing (CAPI)c. Computer-Assisted Personal Interviewing (CAPI)

iii. Mail Methodsiii. Mail Methods a. Mail Interviews a. Mail Interviews b. Mail Panelsb. Mail Panels iv. Electronic Methodsiv. Electronic Methods a. E-mail Surveys b. Internet Surveysa. E-mail Surveys b. Internet Surveys

4) A Comparative Evaluation of Survey Methods4) A Comparative Evaluation of Survey Methods

i. Flexibility of Data Collectioni. Flexibility of Data Collection

ii. Diversity of Questionsii. Diversity of Questions

iii. Use of Physical Stimuliiii. Use of Physical Stimuli

iv. Sample Controliv. Sample Control

v. Control of the Data Collection Environmentv. Control of the Data Collection Environment

vi. Control of Field Forcevi. Control of Field Force

vii. Quantity of Datavii. Quantity of Data

viii. Response Rateviii. Response Rate

ix. Perceived Anonymityix. Perceived Anonymity

x. Social Desirability/ Sensitive Informationx. Social Desirability/ Sensitive Information

xi. Potential for Interviewer Bias xi. Potential for Interviewer Bias

xii. Speedxii. Speed

xiii. Costxiii. Cost

5) Selection of Survey Method(s) 5) Selection of Survey Method(s)

6) Observation Methods6) Observation Methods

i. Structured vs. Unstructured Observationi. Structured vs. Unstructured Observation

ii. Disguised vs. Undisguised Observationii. Disguised vs. Undisguised Observation

iii. Natural vs. Contrived Observation iii. Natural vs. Contrived Observation

7) Observational Methods Classified by Mode of 7) Observational Methods Classified by Mode of

AdministrationAdministration

i. Personal Observationi. Personal Observation

ii. Mechanical Observationii. Mechanical Observation

iii. Auditiii. Audit

iv. Content Analysisiv. Content Analysis

v. Trace Analysisv. Trace Analysis

8) A Comparative Evaluation of Observational Methods8) A Comparative Evaluation of Observational Methods

i. Degree of Structurei. Degree of Structure

ii. Degree of Disguiseii. Degree of Disguise

iii. Ability to Observe in Natural Settingiii. Ability to Observe in Natural Setting

iv. Analysis Biasiv. Analysis Bias

v. General Remarksv. General Remarks

9) A Comparison of Survey and Observational Methods 9) A Comparison of Survey and Observational Methods

i. Relative Advantages of Observationi. Relative Advantages of Observation

ii. Relative Disadvantages of Observationii. Relative Disadvantages of Observation

10) International Marketing Research10) International Marketing Research

11) Ethics in Marketing Research11) Ethics in Marketing Research

12) Internet and Computer Applications12) Internet and Computer Applications

13) Focus on Burke13) Focus on Burke

14) Summary14) Summary

15) Key Terms and Concepts15) Key Terms and Concepts

16) Acronyms16) Acronyms

Survey Research is in the Cards Survey Research is in the Cards for DECfor DEC

RIP 6.1RIP 6.1

Digital Equipment Corporation (DEC) has made a conscious effort in the past years to shift from a product-driven focus to a more market-and consumer-driven focus. The product focus is not unusual in companies manufacturing hi-tech products. There is a serious need for market research in these hi-tech companies as they direct their products to the market. Still, market research in this arena is difficult. It is complicated by the rapid change of technology as well as the sheer size of the application market. Often the technology will be employed in many different industries.

This holds true for the computer market where DEC is a key player. Computers are bought by individuals in every walk of life as well as by businesses in every market imaginable. The breadth of the market makes useful market research a formidable task. This task is being undertaken at DEC in their Corporate Marketing Services (CMS) Division, however. research data are used.

RIP 6.1 Contd.RIP 6.1 Contd.

“Digital’s Corporate Marketing Services Division has been a core element in the company’s transition to a market-driven strategy.”

CMS is coordinating the company’s strategy to redefine their product from simply computers to a broader view of the business solutions. The CMS has employed many research techniques to gain a better understanding of the “business solutions” market. Both primary and secondary

6.1 contd..

Primary data are obtained through the use of phone and mail surveys as well as seminars and focus groups. Phone surveys have been used to define customer needs better and to direct products to the customers better. Mail surveys have been used to study customer purchasing habits as well as future purchasing plans. Seminars are held to gain feedback on the long-term production plans at DEC. Finally, focus groups are used to determine whether the chosen strategy is good and one that will effectively manage and use the market’s potential. Without CMS and marketing research, DEC would be facing the unknowns of their technology as well as the market. This combination of obstacles would have made the transition from a product-focused to a market- and consumer-focused company an impossibility.

RIP 6.1 Contd.RIP 6.1 Contd.

Survey Survey MethodsMethods

TelephoneTelephone PersonalPersonal MailMail

In-HomeIn-Home Mall Mall InterceptIntercept

Computer-Assisted Computer-Assisted Personal Personal

InterviewingInterviewing

Traditional Traditional TelephoneTelephone

Computer-Assisted Computer-Assisted Telephone Telephone InterviewingInterviewing

Mail Mail InterviewInterview

Mail Mail PanelPanel

A Classification of Survey MethodsA Classification of Survey MethodsFig. 6.1Fig. 6.1

ElectronicElectronic

E-mailE-mail InternetInternet

Outgoing Envelope Outgoing envelope: size, color, return addressPostage Method of addressingCover LetterSponsorship Type of appeal PostscriptPersonalization SignatureQuestionnaireLength Size Layout FormatContent Reproduction Color Respondent anonymityReturn EnvelopeType of envelope PostageIncentivesMonetary versus non-monetary Prepaid versus promised amount

Some Decisions Related to theSome Decisions Related to theMail Interview PackageMail Interview Package

Table 6.1Table 6.1

A Comparative Evaluation of Survey MethodsA Comparative Evaluation of Survey MethodsTable 6.2Table 6.2

Flexibility of data collection Moderateto high

High High Moderateto high

Low Low Low Moderate tohigh

Diversity of questions Low High High High Moderate Moderate Moderate Moderate tohigh

Use of physical stimuli Low Moderateto high

High High Moderate Moderate Low Moderate

Sample control Moderateto high

Potentiallyhigh

Moderate Moderate Low Moderateto high

Low Low tomoderate

Control of data collectionenvironment

Moderate Moderateto high

High High Low Low Low Low

Control of field force Moderate Low Moderate Moderate High High High HighQuantity of data Low High Moderate Moderate Moderate High Moderate ModerateResponse rate Moderate High High High Low Moderate Low Very LowPerceived anonymity of therespondent

Moderate Low Low Low High High Moderate High

Social desirability Moderate High High High Low Low Moderate LowObtaining sensitiveinformation

High Low Low Low tomoderate

High High Moderate High

Potential for interviewer bias Moderate High High Low None None None NoneSpeed High Moderate Moderate

to highModerateto high

Low Low tomoderate

High Very high

Cost Moderate High Moderateto high

Moderateto high

Low Low tomoderate

Low Low

Criteria Phone/CATI

In-Home Interviews

Mall-Intercept

InterviewsCAPI

Mail Surveys

Mail Panels E-Mail Internet

Random Digit Directory DesignsRandom Digit Directory Designs Fig. 6.2Fig. 6.2

Adding a Constant to the Last DigitAdding a Constant to the Last DigitAn integer between 1 and 9 is added to the telephone number selected from the directory. In plus-one sampling the number added to the last digit is 1.Number selected from directory: 953-3004 (exchange-block). Add one to the last digit to form 953-3005. This is the number to be included in the sample.

Randomizing the r Last DigitsRandomizing the r Last DigitsReplace the r (r = 2, 3, or 4) last digits with an equal number of randomly selected digits. Number selected from directory: 881-1124. Replace the last four digits of the block with randomly selected numbers 5, 2, 8, and 6 to form 881-5286.

Two-Stage ProcedureTwo-Stage ProcedureThe first stage consists of selecting an exchange and telephone number from the directory. In the second stage, the last three digits of the selected number are replaced with a three-digit random number between 000 and 999.

Cluster 1Cluster 1Selected exchange: 636Selected number: 636-3230Replace the last three digits (230) with randomly selected 389 to form 636-3389. Repeat this process until the desired number of telephone numbers from this cluster is obtained.

Sample Mailing ListsSample Mailing ListsRIP 6.2RIP 6.2

List TitleList Title Number on ListNumber on List Price Price

Advertising agencies 3892 $45/MBanks, branches 11089 $85/MBoat owners 4289601 $50/MChambers of Commerce 6559 $45/MPersonal computer owners 2218672 InquireFamilies 76000000 InquireHardware wholesalers 7378 $45/MMagazines, consumers 4119 $45/MPhotographic, portrait 33742 $45/MSales executives 190002 $55/MWives of professional men 1663614 $60/MYMCA’s 1036 $85

* Price shown is per 1000 names (/M), except where noted.

A Classification of Observation A Classification of Observation MethodsMethods

Observation Methods

Personal Observation

Mechanical Observation

Audit Content Analysis

Trace Analysis

Fig. 6.3Classifying

Observation

Methods

Building Accord According to Personal Building Accord According to Personal ObservationObservation

RIP 6.3RIP 6.3

Honda Motor Co. had a lot of complaints on their sporty, restyled Honda Motor Co. had a lot of complaints on their sporty, restyled Accord (not big enough for U.S. drivers, not stylish enough for the Accord (not big enough for U.S. drivers, not stylish enough for the Japanese drivers). Being afraid to lose its market, Honda sent Japanese drivers). Being afraid to lose its market, Honda sent teams to visit U.S. families and observe how the Americans used teams to visit U.S. families and observe how the Americans used their Honda Accords. By personal observation, the teams found their Honda Accords. By personal observation, the teams found out that the Americans like lots of compartments for storing maps out that the Americans like lots of compartments for storing maps and change. The teams also actually took U.S. road trips in and change. The teams also actually took U.S. road trips in Accord and in Ford Taurus and Toyota Camry as its rivals in Accord and in Ford Taurus and Toyota Camry as its rivals in midsize cars. The results of this observation study were used to midsize cars. The results of this observation study were used to design a new 1998 Accord for U.S. drivers which has 101.7 cubic design a new 1998 Accord for U.S. drivers which has 101.7 cubic feet for passenger space compared to 101.5 cubic feet for Ford feet for passenger space compared to 101.5 cubic feet for Ford Taurus and 97.9 cubic feet for Toyota Camry. Moreover, Accord Taurus and 97.9 cubic feet for Toyota Camry. Moreover, Accord also delivered higher customer value by cutting the price. With also delivered higher customer value by cutting the price. With these changes, Honda executives are expecting to increase U.S. these changes, Honda executives are expecting to increase U.S. sales to total of 1 million units by the year 2000.sales to total of 1 million units by the year 2000.

Using the results of personal observation studies, Honda customizes Using the results of personal observation studies, Honda customizes the Accord to world markets. U.S. Accord is designed as a family car the Accord to world markets. U.S. Accord is designed as a family car by providing extra headroom and a roomy interior to keep up with the by providing extra headroom and a roomy interior to keep up with the demands of its aging baby-boomers customers, while Japanese demands of its aging baby-boomers customers, while Japanese Accord is designed as a compact, sporty car loaded with high-tech Accord is designed as a compact, sporty car loaded with high-tech gizmos aimed at young professionals, it is also smaller to adjust to gizmos aimed at young professionals, it is also smaller to adjust to narrower roads in Japan. Honda also paid attention to its European narrower roads in Japan. Honda also paid attention to its European market. The 1998 Accord for European version was a short, narrow market. The 1998 Accord for European version was a short, narrow body customized to tiny streets in Europe but not losing its stiff and body customized to tiny streets in Europe but not losing its stiff and sporty ride aimed at the Old World drivers.sporty ride aimed at the Old World drivers.

..

Criteria Personal Mechanical Audit Content Trace Observation Observation Analysis Analysis Analysis

Degree of structure Low Low to high High High MediumDegree of disguise Medium Low to high Low High High Ability to observe High Low to high High Medium Low in natural setting Observation bias High Low Low Medium MediumAnalysis Bias High Low to Low Low Medium

Medium General remarks Most flexible Can be Expensive Limited to Method of intrusive communications last resort

A Comparative EvaluationA Comparative Evaluationof Observation Methodsof Observation Methods

Table 6.3Table 6.3

Criteria Telephone Personal Mail ElectronicHigh sample control + + - -Difficulty in locating + - + + respondents at homeInaccessibility of homes + - + +Unavailability of a large + - + +pool of trained interviewersLarge population in rural areas - + - -Unavailability of maps + - + +Unavailability of current - + - +telephone directoryUnavailability of mailing Lists + + - +Low penetration of telephones - + + -Lack of an efficient postal system + + - +Low level of literacy - + - -Face-to-face communication culture - + - -Poor access to computers and Internet? + ? -Note: A + denotes an advantage, and a - denotes a disadvantage.

A Comparative Evaluation of Survey Methods A Comparative Evaluation of Survey Methods for International Marketing Researchfor International Marketing ResearchTable 6.4Table 6.4