Introduction and Early Phases of Marketing Research

7/30/2019 Introduction and Early Phases of Marketing Research

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Introduction and Early Phases

of Marketing Research

Chapter 1


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Redefining Marketing Research

The American Marketing Association (AMA)

redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer

throughINFORMATION


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Used to identify anddefine market

opportunities and

problems

Generate, refine, andevaluate marketing

performance

Monitor marketing

performance

Improve understanding

of marketing as a

process

Information

Redefining Marketing Research


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Definition of Marketing Research

Marketing research is the systematic and objective

identification

collection

analysis dissemination

and use of information

For the purpose of improving decision making related

to the

identification and

solution of problems and opportunities in marketing


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Market Research

Specifies the information necessary toaddress these issues

Manages and implements the data

collection process Analyzes the results

Communicates the findings and theirimplications

Helps managers use this information tomake decisions


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Classification of Marketing Research

Problem-Identification Research

Research undertaken to help identify problems which are not

necessarily apparent on the surface and yet exist or are likely

to arise in the future. Examples: market potential, market

share, image, market characteristics, sales analysis,forecasting, and trends research.

Problem-Solving Research

Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing,

promotion, and distribution research.


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Marketing Research Process

Step 1 : Problem Definition

Step 2 : Development of an Approach to the Problem

Step 3 : Research Design Formulation

Step 4 : Fieldwork or Data Collection

Step 5 : Data Preparation and Analysis

Step 6 : Report Preparation and Presentation


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Marketing Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report


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The Role of Marketing Research

Controllable

Marketing

Product

Pricing

Promotion

Distribution

Variables

Marketing

Research

Marketing

DecisionMaking

Providing

Information

Assessing

Information

Needs

Marketing Managers

Market Segmentation

Performance & Control

Target Market Selection

Marketing Programs

Uncontrollable

Environmental

Factors

Economy

Technology Laws &

Regulations

Social & CulturalFactors

Political Factors

Fig. 1.2 Consumers Employees Shareholders Suppliers

Customer Groups


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Marketing Research Suppliers & Services

LIMITED SERVICE

Other

Services

Technical

and Analytical

Services

Focus Groups

and Qualitative

Services

Field

Service

s

FULL SERVICE

Syndicat

e

ServicesStandardize

d

Services

Customize

d

Services

Internet

Service

s

RESEARCH

SUPPLIERSEXTERNAL

INTERNAL


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Selected Marketing Research Career Descriptions

Vice President of Marketing Research:The senior position inmarketing research. The vice president (VP) is responsible for theentire marketing research operation of the company and serves on thetop management team. This person sets the objectives and goals ofthe marketing research department.

Research Director:Also a senior position. The research director hasthe general responsibility for the development and execution of all themarketing research projects.

Assistant Director of Research:Serves as an administrativeassistant to the director and supervises some of the other marketingresearch staff members.

(Senior) Project Manager:Has overall responsibility for design,implementation, and management of research projects.

Statistician/Data Processing Specialist:Serves as an expert ontheory and application of statistical techniques. Responsibilities includeexperimental design, data processing, and analysis.

Fig. 1.5


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Selected Marketing Research Career Descriptions

Vice President of Marketing Research

Part of companys top management

team

Directs companys entire market

research operation

Sets the goals & objectives of the

marketing research department

Research Director

Also part of senior

management

Heads the development

and execution of all

research projects

Assistant Director of Research

Administrative assistant to director

Supervises research staff members

Senior Project Manager Responsible for design, implementation, & research

projects

Fig. 1.5 cont.


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Analyst Handles details in execution of

project Designs & pretests questionnaires Conducts preliminary analysis of data

Junior Analyst Secondary data analysis Edits and codes questionnaires Conducts preliminary analysis of data

Fieldwork DirectorHandles selection, training,

supervision, and evaluation of

interviewers and field workers

Senior Analyst Participates in the development of projects Carries out execution of assigned projects Coordinates the efforts of analyst, junior analyst, & other personnel in the

development of research design and data collection Prepares final report

Fig. 1.5 cont.

Statistician/Data Processing Serves as expert on theory and

application on statistical techniques Oversees experimental design, data

processing, and analysis

Selected Marketing Research CareerDescriptions


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Marketing Research Suppliers & Services

Internal suppliers

External suppliers

Full-service suppliers

Syndicated services

Standardized services

Customized services

Internet services

Limited-service suppliers Field services

Focus groups and qualitative services

Technical and analytical services

Other services


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Careers in Marketing Research

Career opportunities are available with marketing researchfirms (e.g., AC Nielsen, Burke)

Careers in business and non-business firms and agencieswith in-house marketing research departments (e.g., Procter& Gamble, Coca-Cola, the Federal Trade Commission, United

States Census Bureau)

Advertising agencies (e.g., BBDO International, Ogilvy &Mather, J. Walter Thompson)

Positions: VP of marketing research, research

director/assistant director, project manager, field workdirector, statistician/data processing specialist, senior/junioranalyst, and supervisor


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Chapter Two

Defining the MarketingResearch Problem andDeveloping an Approach


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Chain Restaurant Study

One day I received aphone call from a

research analyst who

introduced himself as

one of our alumni.He was working for a

restaurant chain in town

and wanted help

analyzing the data hehad collected while

conducting a marketing

research study.


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When we met, he presented me with a copy of the

questionnaire and asked how he should analyze

the data. My first question to him was,

What is the problem being addressed?


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When he looked

perplexed, I

explained that data

analysis is not anindependent

exercise.

Rather, the goal of data analysis is toPROVIDE

INFORMATION RELATED TO THE PROBLEM

COMPONENTS.


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Chain Restaurant StudyI was surprised to learn that he did

not have a clear understanding ofthe marketing research problem

and that a written definition did not

exist. So before going any further,

I had to define the marketing

research problem.

Once that was done, I found that

much of the data collected was not

relevant to the problem. In thissense, the whole study was a waste

of resources. A new study had to be

designed and implemented to

address the problem defined.


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The Problem Definition Process

Fig. 2.1

DiscussionwithDecision Maker(s)

InterviewswithExperts

SecondaryDataAnalysis

QualitativeResearch

Management Decision Problem

Marketing Research Problem

Tasks Involved

Environmental Context of the Problem

Step I: Problem Definition

Step II: Approach to the Problem

Objective/TheoreticalFoundations

ResearchQuestions

Hypotheses

Step III: Research Design

Analytical

Model: Verbal,

Graphical,

Mathematical

Specification

of

Information

Needed


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Tasks Involved in Problem Definition

Discussions with Decision Makers

Interviews with Industry Experts

Secondary Data Analysis

Qualitative Research


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The Problem Audit

The problem audit is a comprehensive examination of a

marketing problem with the purpose of understanding its origin andnature.

1. The events that led to the decision that action is needed,

or the history of the problem

2. The alternative courses of action available to the DM3. The criteria that will be used to evaluate the alternative

courses of action

4. The potential actions that are likely to be suggested basedon the research findings

5. The information that is needed to answer the DM'squestions

6. The manner in which the DM will use each item ofinformation in making the decision

7. The corporate culture as it relates to decision making


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The Seven Cs of Interaction

The interaction between the DM andthe researcher should becharacterized by the seven Cs:

1. Communication

2. Cooperation

3. Confidence

4. Candor

5. Closeness

6. Continuity

7. Creativity


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Factors to be Considered in theEnvironmental Context of the Problem

PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIRONMENT

ECONOMIC ENVIRONMENT

MARKETING AND TECHNOLOGICAL

SKILLS


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Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem

Should a new product be To determine consumer preferences

introduced?and purchase intentions for the

proposed new product

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising

campaign

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales

and profits of various levels of price changes


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Proper Definition of the Research Problem

Marketing Research

Problem

Broad Statement

Specific Components

j


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Department Store Project

Problem DefinitionIn the department store project, the marketing research problem isto determine the relative strengths and weaknesses of Sears, vis--vis other major competitors, with respect to factors that influencestore patronage. Specifically, research should provide informationon the following questions.

1. What criteria do households use when selecting department

stores?2. How do households evaluate Sears and competing stores interms of the choice criteria identified in question 1?3. Which stores are patronized when shopping for specific productcategories?4. What is the market share of Sears and its competitors for

specific product categories?5. What is the demographic and psychological profile of thecustomers of Sears? Does it differ from the profile of customersof competing stores?


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Components of an Approach

Objective/Theoretical Foundations

Analytical Model

Research Questions Hypotheses

Specification of the InformationNeeded

The Role of Theory in Applied Marketing


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The Role of Theory in Applied MarketingResearch

Research Task Role of Theory1. Conceptualizing

and identifying

key variables

Provides a conceptual foundation and understanding of the basic processes

underlying the problem situation. These processes will suggest key dependent

and independent variables.

2. Operationalizing

key variables

Theoretical constructs (variables) can suggest independent and dependent

variables naturally occurring in the real world.

3. Selecting a

research design

Causal or associative relationships suggested by the theory may indicate whether

a causal or descriptive design should be adopted.

4. Selecting a

sample

The theoretical framework may be useful in defining the population and

suggesting variables for qualifying respondents, imposing quotas, or stratifying

the population (see Chapter 11).

5. Analyzing and

interpreting data

The theoretical framework (and the models, research questions and hypotheses

based on it) guide the selection of a data analysis strategy and the interpretation

of results (see Chapter 14).

6. Integrating

findings

The findings obtained in the research project can be interpreted in the light of

previous research and integrated with the existing body of knowledge.


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Models

An analytical model is a set of variables andtheir interrelationships designed to represent, inwhole or in part, some real system or process.

In verbal models, the variables and theirrelationships are stated in prose form. Suchmodels may be mere restatements of the maintenets of a theory.


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Graphical ModelsGraphical models are visual. They are used to

isolate variables and to suggest directions of

relationships but are not designed to provide

numerical results.

Awareness

Understanding: Evaluation

Preference

Patronage


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Mathematical Models

Mathematical modelsexplicitly specify therelationships among variables, usually inequation form.

Where

y = degree of preference

= model parameters to be estimated

statistically

=+=

n

iii xaa

y1

0

aa i,0


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Development of ResearchQuestions and Hypotheses

Components of the

Research Questions

Hypotheses

Objective/Theoretical

Framework

Analytical

Model

Marketing Research Problem


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Research Questions and Hypotheses

Research questions (RQs) are refined statementsof the specific components of the problem.

A hypothesis (H) is an unproven statement orproposition about a factor or phenomenon that isof interest to the researcher. Often, a hypothesisis a possible answer to the research question.

At United Food Is Uniting the Airline with


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At United, Food Is Uniting the Airline withTravelers

United Airlines, as other major airlines, had to deal with

passenger loyalty (management decision problem: howto attract more and more loyal passengers). The broadmarketing research problem was to identify the factors

that influence loyalty of airline travelers.

At United, Food Is Uniting the Airline with Travelers


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The basic answer is to improve service. Exploratory

research, theoretical framework, and empirical evidencerevealed that the consumers choice of an airline isinfluenced by: safety, price of the ticket, frequent-flyerprogram, convenience of scheduling, and brand name.

At United, Food Is Uniting the Airline with


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A graphical model stipulated that

consumers evaluate competing airlines

based on factors of the choice criteria to

select a preferred airline. The problemwas that major airlines were quite

similar on these factors. Indeed, "airlines

offer the same schedules, the same

service, and the same fares.

Consequently, United Airlines had to find

a way to differentiate itself. Food turned

out to be the solution.

At United, Food Is Uniting the Airline withTravelers

At United Food Is Uniting the Airline


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Secondary data, like the J. D Power & Associates'

survey on "current and future trends in the airlinefood industry," indicated that"food service is a major

contributor to customers loyalty." This survey also

emphasized the importance of food brands.

At United, Food Is Uniting the Airlinewith Travelers



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The airline's Marketrak survey told United Airlinesthat "customers wanted more varied and up-to-datefood.

The following research questions and hypotheses

may be posed.RQ1 How important is food for airline customers?

H1: Food is an important factor for airlinetravelers.

H2: Travelers value branded food.

H3: Travelers prefer larger food portions, but withconsistent quality.

H4: Travelers prefer exotic food.




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Characteristics that influence the research design

included the identification of competing airlines (Delta,

American, etc.), factors of the choice criteria (already

identified), measurement of airline travel, and loyalty.


At United, Food Is Uniting the Airline


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This kind of research helped United Airlines define their marketing

research problem and develop the approach. Focus groups andsurveys were conducted to check customers' perceptions of food in

United Airlines' aircraft. The results provided support for all the

hypotheses (H1 to H4). United Airlines then made a few changes:

new "culinary menus," larger portions of food, new coffee, and

branded products (e.g., Godiva chocolates). This resulted in betterservice, increasing customer satisfaction and fostering loyalty.



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Chapter Three


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Chapter Three

Research Design


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Research Design: Definition

A research design is a framework or blueprint for conducting the

marketing research project. It details the procedures necessary

for obtaining the information needed to structure or solve

marketing research problems.

C t f R h D i


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Components of a Research Design

Define the information needed (Chapter 2) Design the exploratory, descriptive, and/or causal

phases of the research (Chapters 3 - 7)

Specify the measurement and scaling procedures

(Chapters 8 and 9) Construct and pretest a questionnaire (interviewing

form) or an appropriate form for data collection(Chapter 10)

Specify the sampling process and sample size(Chapters 11 and 12)

Develop a plan of data analysis (Chapter 14)

A Classification of Marketing Research Designs


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A Classification of Marketing Research Designs

Single Cross-

Sectional Design

Multiple Cross-

Sectional Design

Fig. 3.1

Research Design

Conclusive

Research DesignExploratory

Research Design

Descriptive

Research

Causal Research

Cross-Sectional

Design

Longitudinal

Design

Exploratory & Conclusive Research Differences


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Exploratory & Conclusive Research Differences

Objective:

Character-

istics:

Findings/

Results:

Outcome:

To provide insights and

understanding

Information needed is defined

only loosely. Research process is

flexible and unstructured.

Sample is small and non-

representative. Analysis of

primary data is qualitative

Tentative

Generally followed by further

exploratory or conclusive

research

To test specific hypotheses and

examine relationships

Information needed is clearly

defined. Research process is formal

and structured. Sample is large andrepresentative. Data analysis is

quantitative

Conclusive

Findings used as input into decision

making

Exploratory ConclusiveTable 3.1

A Comparison of Basic Research Designs


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Objective:

Characteristics:

Methods:

Discovery of ideas

and insights

Flexible, versatile

Often the front end

of total research

design

Expert surveysPilot surveys

Case studies

Secondary data:

qualitative analysis

qualitative research

Describe market

characteristics orfunctions

Marked by the prior

formulation of specific

hypotheses

Preplanned and

structured design

Secondary data:quantitative analysis

Surveys

Panels

Observation and other

data

Determine cause

and effectrelationships

Manipulation of

independent

variables, effect

on dependent

variables

Control mediating

variables

Experiments

Exploratory Descriptive CausalTable 3.2


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Uses of Exploratory Research

Formulate a problem or define a problemmore precisely

Identify alternative courses of action

Develop hypotheses Isolate key variables and relationships for

further examination

Gain insights for developing an approachto the problem

Establish priorities for further research

Methods of Exploratory Research


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Methods of Exploratory Research

Survey of experts (discussed in Chapter 2)

Pilot surveys (discussed in Chapter 2)

Secondary data analyzed in a qualitative way (discussed in

Chapter 4) Qualitative research (discussed in Chapter 5)

Use of Descripti e Research


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Use of Descriptive Research

To describe the characteristics of relevantgroups, such as consumers, salespeople,organizations, or market areas

To estimate the percentage of units in aspecified population exhibiting a certainbehavior

To determine the perceptions of productcharacteristics

To determine the degree to which marketingvariables are associated

To make specific predictions


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Methods of Descriptive Research

Secondary data analyzed in a quantitative, as opposed toa qualitative, manner (discussed in Chapter 4)

Surveys (Chapter 6)

Panels (Chapters 4 and 6)

Observational and other data (Chapter 6)


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Cross-Sectional Designs

Involve the collection of information from any given sample of

population elements only once

In single cross-sectional designs,there is only one sample ofrespondents and information is obtained from this sample onlyonce.

In multiple cross-sectional designs, there are two or moresamples of respondents, and information from each sample isobtained only once. Often, information from different samples isobtained at different times.

Cohort analysis consists of a series of surveys conducted atappropriate time intervals, where the cohort serves as the basicunit of analysis. A cohort is a group of respondents whoexperience the same event within the same time interval.

Consumption of Various Soft Drinks by Various Age


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Cohorts

8-19

20-29

30-39

40-49

50+

Age 1960 1969 19791950

52.9

45.2

33.9

23.2

18.1

62.6

60.7

46.6

40.8

28.8

C1

73.2

76.0

67.7

58.6

50.0

C2

81.0

75.8

71.4

67.8

51.9

C3

C8

C7

C6

C5

C4

C1: cohort born prior to 1900C2: cohort born 1901-10

C3: cohort born 1911-20


C5: cohort born 1931-40C6: cohort born 1940-49



Table 3.3

Percentage consuming on a typical day


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Longitudinal Designs

A fixed sample (or samples) of populationelements is measured repeatedly on thesame variables

A longitudinal design differs from a cross-sectional design in that the sample orsamples remain the same over time

C S ti l L it di l


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Cross-Sectional vs. Longitudinal

SampleSurveyed at T1

SampleSurveyed

at T1

SameSamplealsoSurveyedat T2

T1 T2

Cross-Sectional Design

Longitudinal Design

Time

Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs


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Evaluation

Criteria

Cross-Sectional

Design

Longitudinal

Design

Detecting Change

Large amount of data collectionAccuracy

Representative Sampling

Response bias

-

--

+

+

+

++

-

-

Note: A + indicates a relative advantage over the other

design, whereas a - indicates a relative disadvantage.

Table 3.4

Cross Sectional Data May Not Show


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Cross-Sectional Data May Not ShowChange

Brand Purchased Time Period

Period 1 Period 2

Survey Survey

Brand A 200 200

Brand B 300 300

Brand C 500 500

Total 1000 1000

Table 3.5

Longitudinal Data May Show Substantial Change


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g y g

Brand

Purchased

in Period 1

Brand Purchased in Period 2

Brand A Brand B Brand C Total

Brand A

Brand B

Brand C

Total

100

25

75

200

50

100

150

300

50

175

275

500

200

300

500

1000

Table 3.6

U f C l R h


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Uses of Causal Research

To understand which variables are the cause(independent variables) and which variables are theeffect (dependent variables) of a phenomenon

To determine the nature of the relationship between thecausal variables and the effect to be predicted

METHOD: Experiments

Alternative Research Designs


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Alternative Research Designs

Exploratory Research

Secondary DataAnalysisFocus Groups

Conclusive Research Descriptive/Causal


Exploratory ResearchSecondary Data

AnalysisFocus Groups


(a)

(b)

(c)

Potential Sources of Error in Research Designs


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Potential Sources of Error in Research Designs

Surrogate Information Error

Measurement Error

Population Definition Error

Sampling Frame Error

Data Analysis Error

Respondent Selection Error

Questioning Error

Recording Error

Cheating Error

Inability Error

Unwillingness Error

Fig. 3.2Total Error

Non-sampling

Error

Random

Sampling Error

Non-responseError

ResponseError

Interviewer Error Respondent

Error

Researcher

Error

E i M k i R h


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Errors in Marketing Research The total error is the variation between the true mean value in the

population of the variable of interest and the observed mean value

obtained in the marketing research project. Random sampling error is the variation between the true mean value

for the population and the true mean value for the original sample.

Non-sampling errors can be attributed to sources other than sampling,and they may be random or nonrandom: including errors in problem

definition, approach, scales, questionnaire design, interviewing methods,and data preparation and analysis. Non-sampling errors consist of non-response errors and response errors.

Errors in Marketing Research


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Errors in Marketing Research

Non-response error arises when some ofthe respondents included in the sample donot respond.

Response error arises when respondents

give inaccurate answers or their answers aremisrecorded or misanalyzed.

Citicorp Banks on Exploratory, Descriptive, and CausalResearch


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Marketing Research at Citicorpis typical in that it isused to measure consumer awareness of products,monitor their satisfaction and attitudes associatedwith the product, track product usage and diagnose

problems as they occur. To accomplish these tasksCiticorp makes extensive use of exploratory,descriptive, and causal research. Often it isadvantageous to offer special financial packages tospecific groups of customers. In this case, a

financial package is being designed for seniorcitizens.

The following seven-step process was taken by

marketing research to help in the design.



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Research

1) A taskforce was created to better define the marketparameters to include all the needs of the many Citicorpbranches. A final decision was made to include Americans55 years of age or older, retired, and in the upper half ofthe financial strata of that market.

Citicorp Banks on Exploratory,


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2) Exploratory research in the form of secondary data analysis of themature or older market was then performed and a study ofcompetitive products was conducted. Exploratory qualitative researchinvolving focus groups was also carried out in order to determine theneeds and desires of the market and the level of satisfaction with the

current products.

In the case of senior citizens, agreat deal of diversity wasfound in the market. This was

determined to be due to suchfactors as affluence, relativeage, and the absence orpresence of a spouse.

Descriptive, and Causal Research



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3) The next stage of research was brainstorming. Thisinvolved the formation of many different financial packages

aimed at the target market. In this case, a total of 10 ideas

were generated.

Research



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4) The feasibility of the 10 ideas generated in step 3 was then

tested. The ideas were tested on the basis of whether theywere possible in relation to the business. The following list of

questions was used as a series of hurdles that the ideas had to

pass to continue on to the next step.

Can the idea be explained in a manner that the targetmarket will easily understand?

Does the idea fit into the overall strategy of Citicorp?




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Is there an available description of a specific target market for theproposed product?

Does the research conducted so far indicate a potential match for

target market needs, and is the idea perceived to have appeal tothis market?

Is there a feasible outline of the tactics and strategies forimplementing the program?

Have the financial impact and cost of the program beenthoroughly evaluated and determined to be in line with companypractices?

In this study, only one idea generated from the brainstormingsession made it past all the listed hurdles and on to step 5.




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5) A creative work-plan was then generated. This plan was to emphasize the competitiveadvantage of the proposed product as well as better delineate the specific features of the

product.

6) The previous exploratory research was now followed up with descriptive research in

the form of mall intercept surveys of people in the target market range. The survey

showed that the list of special features was too long and it was decided to drop thefeatures more commonly offered by competitors.




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7) Finally, the product was test marketed in six of

the Citicorp branches within the target market.

Test marketing is a form of causal research.

Given successful test marketing results, theproduct is introduced nationally.


Marketing Research Proposal


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Marketing Research Proposal

Executive Summary

Background

Problem Definition/Objectives of the Research

Approach to the Problem

Research Design

Fieldwork/Data Collection

Data Analysis

Reporting

Cost and Time

Appendices

Th G fi ld f O li R h


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The Greenfield of Online Research

Greenfield Online Research Center, Inc.(http://www.greenfieldonline.com), based inWestport, Connecticut, is a subsidiary of theGreenfield Consulting Group. The Online

Research Center conducts focus groups, surveys,and polls over the Internet. The company hasbuilt up a panel of several thousand Internetusers, from which it draws survey samples. Thesamples may be used for descriptive research

designs like single or multiple cross-sectionaldesigns, as well as longitudinal designs. Causaldesigns can also be implemented. Respondentsmay also be chosen from the registered Internetusers.

The Greenfield of Online Research


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Internet users wishing to take part in surveys andother projects begin by registering online at the

companys Web site. The registration consists of asign-up survey that asks for e-mail address, type ofcomputer used, personal interests and informationabout the respondents household. Once an Internetuser is registered, Greenfield Online matches theuser with research studies that are well-suited to hisor her interests.

Incentives to take part in focus groups or specialsurveys are offered by the companies whoseproducts or services are being researched. Thisincentive is cash or valuable prizes. Incentives arealso offered to Internet users to encourage them toregister with Greenfields Internet panel. New

registrants automatically qualify for prizes that are


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Exploratory ResearchDesign:Secondary Data

Primary Vs. Secondary Data


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Primary data are originated by a researcher for the specificpurpose of addressing the problem at hand. The collection ofprimary data involves all six steps of the marketing researchprocess (Chapter 1).

Secondary data are data that have already been collected forpurposes other than the problem at hand. These data can be

located quickly and inexpensively.

A Comparison of Primary & Secondary


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Data

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy

Collection cost High Relatively low

Collection time Long Short

Table 4.1

Uses of Secondary Data


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Identify the problem

Better define the problem

Develop an approach to the problem

Formulate an appropriate research design (forexample, by identifying the key variables)

Answer certain research questions and testsome hypotheses

Interpret primary data more insightfully

A Classification of Secondary Data


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Secondary Data

Ready

to Use

Requires

Further

Processin

g

Published

Materials

Computerized

Databases

Syndicated

Services

Fig. 4.1

Internal External

Type of Individual/Household Level DataAvailable from Syndicated Firms


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Available from Syndicated FirmsI. Demographic Data

- Identification (name, address, email, telephone)

- Sex- Marital status

- Names of family members

- Age (including ages of family members)

- Income

- Occupation- Number of children present

- Home ownership

- Length of residence

- Number and make of cars owned

Type of Individual/Household Level Data Available from Syndicated Firms


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II. Psychographic Lifestyle Data

- Interest in golf

- Interest in snow skiing

- Interest in book reading

- Interest in running

- Interest in bicycling

- Interest in pets

- Interest in fishing

- Interest in electronics

- Interest in cable television

There are also firms such as Dun & Bradstreet and AmericanBusiness Information which collect demographic data on businesses.

A Classification of Published SecondarySources


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Sources

Statistical

DataGuides Directories Indexes Census

DataOther

Government

Publications

Fig. 4.2

Published

Secondary Data

General Business

Sources

Government

Sources

A Classification of ComputerizedDatabases


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Databases

Bibliographic

DatabasesNumeric

Databases

Full-Text

Databases

Directory

DatabasesSpecial-

Purpose

Databases

Fig. 4.3

Computerized

Databases

Online Off-LineInternet

Published External Secondary Sources


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Published External Secondary SourcesGuides

An excellent source of standard or recurring information

Helpful in identifying other important sources of directories, tradeassociations, and trade publications

One of the first sources a researcher should consult

Directories

Helpful for identifying individuals or organizations that collect specific data

Examples: Consultants and Consulting Organizations Directory,Encyclopedia of Associations, FINDEX: The Directory of Market ResearchReports, Studies and Surveys, and Research Services Directory

Indices

Helpful in locating information on a particular topic in several differentpublications

Cl ifi ti f C t i d D t b


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Classification of Computerized Databases

Bibliographic databases are composed of

citations to articles Numeric databases contain numerical and

statistical information

Full-text databases contain the complete text of

the source documents comprising the database Directory databases provide information on

individuals, organizations, and services

Special-purpose databasesprovide specializedinformation

Syndicated Services


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Syndicated services are companies that collect and

sell common pools of data of known commercial valuedesigned to serve a number of clients

Syndicated sources can be classified based on the unitof measurement (households/consumers or institutions)

Household/consumer data may be obtained from

surveys, diary panels, or electronic scanner services

Institutional data may be obtained from retailers,wholesalers, or industrial firms

A Classification of Syndicated


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A Classification of SyndicatedServices

Unit of

Measurement

Fig. 4.4

Households/

Consumers Institutions

SyndicatedServices: Consumers


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Fig. 4.4 cont.

Psychographic

& LifestylesGeneral

Advertising

Evaluation

Households /

Consumers

Scanner

Panels withCable TV

Surveys Volume

Tracking Data

Scanner

Panels

Electronic

scanner servicesPurchase Media

Panels

Syndicated Services: Institutions


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Audits

Direct

Inquiries

Clipping

Services

Corporate

Reports

Fig. 4.4 cont.

Institutions

Retailers Wholesalers Industrial firms

Overview of Syndicated Services


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Table

4.3

Type Characteristics Advantages Disadvantages UsesSurveys Surveys conducted at

regular intervals

Most flexible way of

obtaining data;

information onunderlying motives

Interviewer errors;

respondent errors

Market

segmentation,

advertising themeselection and

advertising

effectiveness

Purchase

Panels

Households provide

specific information

regularly over an

extended period of

time; respondent

asked to record

specific behaviors as

they occur

Recorded purchase

behavior can be

linked to the

demographic/

psychographic

characteristics

Lack of

representativeness;

response bias;

maturation

Forecasting sales,

market share and

trends; establishing

consumer profiles,

brand loyalty and

switching; evaluating

test markets,

advertising, and

distribution

Media Panels Electronic devicesautomatically

recording behavior,

supplemented by a

diary

Same as purchasepanel

Same as purchasepanel

Establishingadvertising rates;

selecting media

program or air time;

establishing viewer

profiles



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Table 4.3 cont.

Scanner Diary Panels

with Cable TV

Scanner panels of

households that

subscribe to cable TV

Data reflect actual

purchases; sample

control; ability to link

panel data to household

characteristics

Data may not be

representative; quality

of data limited

Promotional mix

analyses; copy testing;

new product testing;

positioning

Audit services Verification of

product movement by

examining physicalrecords or performing

inventory analysis

Relatively precise

information at the

retail and wholesalelevels

Coverage may be

incomplete; matching

of data on competitiveactivity may be

difficult

Measurement of

consumer sales and

market share;competitive activity;

analyzing distribution

patterns; tracking of

new products

Industrial Product

Syndicated Services

Data banks on

industrial

establishments createdthrough direct inquiries

of companies, clipping

services, and corporate

reports

Important source of

information on

industrial firms,particularly useful in

initial phases of the

projects

Data are lacking in

terms of content,

quantity, and quality

Determining market

potential by geographic

area; defining salesterritories; allocating

advertising budget

Single-Source Data


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Single-source data provide integrated informationon household variables, including media consumption

and purchases, and marketing variables, such asproduct sales, price, advertising, promotion, and in-store marketing effort

Recruit a test panel of households and meter eachhome's TV sets

Survey households periodically on what they read

Grocery purchases are tracked by UPC scanners

Track retail data, such as sales, advertising, andpromotion

A Classification of International Sources


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C ass ca o o e a o a Sou ces

International

OrganizationsGovernment

SourcesNongovernment

SourcesGovernments

Trade

Associations

Domestic

Organizations in

the United States

International

Organizations in

the United States

Organizations in

Foreign

Countries

International Secondary Data


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100/125


101/125

Exploratory ResearchDesign:Secondary Data



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Primary data are originated by a researcher for the specificpurpose of addressing the problem at hand. The collection ofprimary data involves all six steps of the marketing researchprocess (Chapter 1).

Secondary data are data that have already been collected forpurposes other than the problem at hand. These data can belocated quickly and inexpensively.

A Comparison of Primary & SecondaryData


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Data

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy

Collection cost High Relatively low

Collection time Long Short

Table 4.1

Uses of Secondary Data


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Identify the problem

Better define the problem

Develop an approach to the problem

Formulate an appropriate research design (forexample, by identifying the key variables)

Answer certain research questions and testsome hypotheses

Interpret primary data more insightfully

Criteria for Evaluating Secondary Data


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Specifications: Methodology Used to Collect the Data

Error: Accuracy of the Data

Currency: When the Data Were Collected

Objective(s): The Purpose for Which the Data Were Collected

Nature: The Content of the Data

Dependability: Overall, How Dependable Are the Data

Criteria for Evaluating Secondary Data


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Criteria Issues Remarks

Specifications &

Methodology

Error & Accuracy

Currency

Objective

Nature

Dependability

Data collection method, response rate,

quality & analysis of data, sampling

technique & size, questionnaire

design, fieldwork.

Examine errors in approach,

research design, sampling, data

collection & analysis, & reporting.

Time lag between collection &

publication, frequency of updates.

Why were the data collected?

Definition of key variables, units ofmeasurement, categories used,

relationships examined.

Expertise, credibility, reputation, and

trustworthiness of the source.

Data should be reliable,

valid, & generalizable to

the problem.

Assess accuracy by

comparing data from

different sources.

Census data are updated

by syndicated firms.

The objective determines

the relevance of data.

Reconfigure the data toincrease their usefulness.

Data should be obtained

from an original source.

Table 4.2



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Secondary Data

Ready

to Use

Requires

Further

Processin

g

Published

Materials

Computerized

Databases

Syndicated

Services

Fig. 4.1

Internal External

Internal Secondary Data


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Department Store Project

Sales were analyzed to obtain: Sales by product line

Sales by major department (e.g., men's wear,house wares)

Sales by specific stores Sales by geographical region

Sales by cash versus credit purchases

Sales in specific time periods

Sales by size of purchase

Sales trends in many of these classifications werealso examined

Type of Individual/Household Level DataAvailable from Syndicated Firms


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yI. Demographic Data

- Identification (name, address, email, telephone)

- Sex- Marital status

- Names of family members

- Age (including ages of family members)

- Income

- Occupation

- Number of children present

- Home ownership

- Length of residence

- Number and make of cars owned

Type of Individual/Household Level Data Available from Syndicated Firms


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II. Psychographic Lifestyle Data

- Interest in golf

- Interest in snow skiing

- Interest in book reading

- Interest in running

- Interest in bicycling

- Interest in pets

- Interest in fishing

- Interest in electronics

- Interest in cable television

There are also firms such as Dun & Bradstreet and AmericanBusiness Information which collect demographic data on businesses.

A Classification of Published SecondarySources


111/125

StatisticalData

Guides Directories Indexes CensusData

Other

Government

Publications

Fig. 4.2

Published

Secondary Data

General Business

Sources

Government

Sources

InfoUSA: Here, There, Everywhere


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InfoUSA (www.infousa.com) markets subsets of its data in a number

of forms, including the professional online services (LEXIS-NEXIS andDIALOG), the general online services (CompuServe and Microsoft

Network), the Internet (look-ups), and on CD-ROM. The underlying

database on which all these products are based contains information

on 115 million residential listings and 14 million business listings, as

of 2005. These are verified with over 17 million phone calls annually.The products derived from these databases include sales leads,

mailing lists, business directories, mapping products, and also

delivery of data on the Internet.

A Classification of ComputerizedDatabases


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Bibliographic

DatabasesNumeric

Databases

Full-Text

Databases

Directory

DatabasesSpecial-

Purpose

Databases

Fig. 4.3

Computerized

Databases

Online Off-LineInternet

Published External Secondary SourcesG id


114/125

yGuides

An excellent source of standard or recurring information

Helpful in identifying other important sources of directories, tradeassociations, and trade publications

One of the first sources a researcher should consult

Directories

Helpful for identifying individuals or organizations that collect specific data

Examples: Consultants and Consulting Organizations Directory,Encyclopedia of Associations, FINDEX: The Directory of Market ResearchReports, Studies and Surveys, and Research Services Directory

Indices Helpful in locating information on a particular topic in several different

publications

Classification of Computerized Databases


115/125

C ass ca o o Co pu e ed a abases

Bibliographic databases are composed of

citations to articles Numeric databases contain numerical and

statistical information

Full-text databases contain the complete text ofthe source documents comprising the database

Directory databases provide information onindividuals, organizations, and services

Special-purpose databasesprovide specializedinformation

Syndicated Services


116/125

Syndicated services are companies that collect and

sell common pools of data of known commercial valuedesigned to serve a number of clients

Syndicated sources can be classified based on the unitof measurement (households/consumers or institutions)

Household/consumer data may be obtained from

surveys, diary panels, or electronic scanner services

Institutional data may be obtained from retailers,wholesalers, or industrial firms

A Classification of SyndicatedS i


117/125

Services

Unit of

Measurement

Fig. 4.4

Households/

Consumers Institutions

SyndicatedServices: Consumers


118/125

Fig. 4.4 cont.

Psychographic

& LifestylesGeneral

Advertising

Evaluation

Households /

Consumers

Scanner

Panels withCable TV

Surveys Volume

Tracking Data

Scanner

Panels

Electronic

scanner servicesPurchase Media

Panels

Syndicated Services: Institutions


119/125

Audits

Direct

Inquiries

Clipping

Services

Corporate

Reports

Fig. 4.4 cont.

Institutions

Retailers Wholesalers Industrial firms


3Type Characteristics Advantages Disadvantages Uses


120/125

Ta

ble

4.3

Type Characteristics Advantages Disadvantages UsesSurveys Surveys conducted at

regular intervals

Most flexible way of

obtaining data;

information onunderlying motives

Interviewer errors;

respondent errors

Market

segmentation,

advertising themeselection and

advertising

effectiveness

Purchase

Panels

Households provide

specific information

regularly over an

extended period of

time; respondent

asked to record

specific behaviors as

they occur

Recorded purchase

behavior can be

linked to the

demographic/

psychographic

characteristics

Lack of

representativeness;

response bias;

maturation

Forecasting sales,

market share and

trends; establishing

consumer profiles,

brand loyalty and

switching; evaluating

test markets,

advertising, and

distribution

Media Panels Electronic devices

automatically

recording behavior,

supplemented by a

diary

Same as purchase

panel

Same as purchase

panel

Establishing

advertising rates;

selecting media

program or air time;

establishing viewer

profiles

Overview of Syndicated ServicesTable 4 3 cont


121/125

Table 4.3 cont.

Scanner Diary Panels

with Cable TV

Scanner panels of

households that

subscribe to cable TV

Data reflect actual

purchases; sample

control; ability to link

panel data to household

characteristics

Data may not be

representative; quality

of data limited

Promotional mix

analyses; copy testing;

new product testing;

positioning

Audit services Verification of

product movement by

examining physical

records or performing

inventory analysis

Relatively precise

information at the

retail and wholesale

levels

Coverage may be

incomplete; matching

of data on competitive

activity may be

difficult

Measurement of

consumer sales and

market share;

competitive activity;

analyzing distribution

patterns; tracking of

new products

Industrial Product

Syndicated Services

Data banks on

industrial

establishments created

through direct inquiries

of companies, clipping

services, and corporate

reports

Important source of

information on

industrial firms,

particularly useful in

initial phases of the

projects

Data are lacking in

terms of content,

quantity, and quality

Determining market

potential by geographic

area; defining sales

territories; allocating

advertising budget

Single-Source Data


122/125

Single-source data provide integrated information onhousehold variables, including media consumption and

purchases, and marketing variables, such as product sales,price, advertising, promotion, and in-store marketing effort

Recruit a test panel of households and meter each home'sTV sets

Survey households periodically on what they read

Grocery purchases are tracked by UPC scanners

Track retail data, such as sales, advertising, and promotion

A Classification of International Sources


123/125

International

OrganizationsGovernment

SourcesNongovernment

SourcesGovernments

Trade

Associations

Fig. 4.5

Domestic

Organizations in

the United States

International

Organizations in

the United States

Organizations in

Foreign

Countries

International Secondary Data


124/125


125/125

Introduction and Early Phases of Marketing Research

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