Market Research Professor Lawrence Feick University of Pittsburgh.
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Transcript of Market Research Professor Lawrence Feick University of Pittsburgh.
Market Research
Professor Lawrence Feick
University of Pittsburgh
Outline
• Definition: what is market research?
• Examples of market research problems
• Who does market research?
• Glossary: types of data, studies, variables
• Focus on focus groups, surveys, observation, experiments
• Sampling
• Market research in 1998
What is market research?
• Collection and organization of information to be used for marketing decision making
Examples of market research problems
• Target market selection
• Product studies
• Pricing studies
• Distribution studies
• Promotion studies
• Sales research
Who does market research?
• Managers or market researchers in the firm producing the product (clients)
• Market research firms (suppliers)
• Advertising agencies (agencies)
• Organizations that produce market research information as a byproduct of other activities
Source: Advertising Age May 25, 1998
The Largest Market Research Firms 1997
Firm 1997 Revenue 1997 Rank 1996 Rank
A C Nielson Corp $1,392MM(20% US)
1 1
IMS Health $981MM(40% US)
2 2
IRI (InformationResources Inc.)
$456MM(80% US)
3 3
Nielson Media $359MM(all US)
4 4
VNU MarketingInfo. Services
$285(75% US)
5 6
ResearchInternational
$268MM(9 % US)
6 5
Market research suppliers:types of services
• Custom research
• Syndicated research
A glossary of research terms
• Types of data
• Types of studies
• Type of variables
Types of data
• Secondary data– collected for another purpose– there is always relevant data available– sources of secondary data
• Primary data– collected to answer the current question
Types of studies
• Quantitative– quantity data: amounts, means, percentages– surveys, experiments, observation methods
• Qualitative– richness, depth of understanding– directional, not quantified results– depth interviews, focus groups
Types of variables
• Independent variable– a variable that has an effect on another– a predictor or explanatory variable
• Dependent variable– a variable that is affected by another
• Examples:– purchase patterns and income
Focus on: Focus Groups
Focus groups
• Most frequently used qualitative method
• Involves moderated group discussion
• Typically 1.5 hours
• Example usage: product concept testing, name tests
Focus on: Surveys
Surveys
• Data collected by asking questions
• Art and science of asking questions
• Descriptive technique that yields:– averages: potato chip consumption– relationships: is potato chip consumption
related to age? to income?
Interviewer-administered questionnaires
• Personal interview surveys
• Telephone surveys
Self-administered questionnaires
• Mail surveys
• Fax surveys
• Computer surveys
Comparing methods of collecting survey data
Criterion Mail, fax Telephone Personal
Response rate
Cost per completion
Complicated questions
Ability to probe
Avoid question bias
Avoid interviewer bias
Protect respondentanonymity
Radisson Hotels Customer Satisfaction SurveyRadisson Hotels Customer Satisfaction Survey
Radisson Hotels Customer Satisfaction SurveyRadisson Hotels Customer Satisfaction Survey
Architectural DigestArchitectural Digest 1998 Rate Card 1998 Rate Card Survey: First pageSurvey: First page
Architectural DigestArchitectural Digest 1998 Rate Card 1998 Rate Card Survey: Last pageSurvey: Last page
Focus on: Observation
Observation
• Data collected by recording information
• Avoid bias from contact that influences responses
• UPC scanners, Nielson Media’s black boxes, hidden cameras
Focus on: Experiments
Experiments
• Involve manipulated independent variables– provide insight into cause and effect
• Data collected with surveys and observation
• Package design tests, ad copy tests, test markets
Sampling: an aside
• Population
• Census versus sample
• Types of samples– probability samples– nonprobability samples
• Sampling and statistics
Market research in the late 1990s:
linked data• Supermarkets loyalty cards
– purchase data from scanners
– demographic data from membership
– tailored promotions to members, neighborhoods
• Reader’s Digest direct mail system– tailored mailings based on expected response
and expected profitability
– uses purchase data, survey data, purchased lists
Market research in the late 1990s:
single source data• Uses a consumer panel• Combines:
– demographics from surveys– observed black box data – observed scanner data
• Provides linkages among:– customer demos, media habits, purchases
• Split cable experiments
Market research in the late 1990s:
brand anthropology• Developing new ways to understand brand
meaning in consumers– collages– thick description– in-home observation
Market research: the bottom line
• Market research defined--reprise– Collection and organization of information to
be used for marketing decision making
• Market research, to be useful,– focuses on manager’s problems– answers the right questions– affects decision making