SMU Marketing Research Ch-13

UNIT 13 APPLICATIONS OF MARKETING RESEARCH-I

Structure

13.1 Introduction

Objectives

13.2 Consumer marketing research

13.3 Business to business marketing research

13.4 Product research

13.5 Pricing research

13.6 Motivational research

13.7 Distribution research

13.8 Other techniques

13.8 Summary

13.9 Glossary

13.10 Terminal Questions

13.11 Answers

13.12 Case Study

13.1 INTRODUCTIONIn the previous unit you have learnt the process of preparing a research report, types of research report, their style and layout and the components of a report. Further you have studied the concept of revising and finalizing the report text, presentation of a report, presentation plan and responsibilities of a market research report writer as well. You have also learnt the essential qualities of a research report. Now you will focus on the application part of marketing research.Marketing research is a systematic process which can be applied to a variety of marketing challenges and problems. The main objective of marketing research is to identify those key elements of the marketing mix which directly impact the behavior and attitude of the consumer. This research is further classified into two basic categories: consumer marketing research and business to business marketing research. Consumer

Sikkim Manipal University Page No. 1

Marketing Management Unit 1

marketing research can be defined with the help of applied sociology that basically focus on the understanding of consumer behaviour, tastes and preferences. On the other hand B2B marketing research is more complicated term as compared to consumer marketing research. In B2B researcher have to prepare a multi facet approach for managing the consumer relationship. Further you need to focus on other elements of marketing research which includes product, pricing, motivational and distribution research. In this unit you will study a wide variety of applications of marketing research. Firstly you will focus on two basic elements of marketing research known as consumer marketing research and business to business marketing research. Then you will study the other elements of marketing research such as product and pricing marketing research and motivational and distribution marketing research.

Objectives

After studying this unit, you should be able to:

describe the concept of consumer marketing research

discuss business to business marketing research

explain the concept of product and pricing research

learn the concept of motivational and distribution research

know the other techniques of application of marketing research

CASELETFair’s fair for Ericsson

As the world’s largest supplier of mobile systems and a leading player in fixed line networks, Ericsson operates in more than 140 countries. It provides total solutions from systems and applications to services and core technology for mobile handsets. Its customers are network operators from around the world; indeed, the top ten largest mobile operators are all customers of Ericsson. Telecoms companies like Ericsson recognise that trade shows play a crucial role in building the brand as well as providing showcases to demonstrate new products and technologies. They also provide the means to nurture and develop relationships by meeting and entertaining customers and other parties.Ericsson has a clearly defined strategy for participation at trade shows and typically takes part in the 3GSM World Congress (France), CTIA (USA), CeBIT (Germany), Communic Asia (Singapore) and ITU Telecom Asia



(Hong Kong). Given the high levels of expenditure to participate and the importance of this communication channel, Ericsson determined that they needed to ensure that:

the return on investment in a show could be measured; best practice guidelines were developed;

the Ericsson brand was being communicated consistentlyIn order to support the decisions involved in these areas, Ericsson used marketing research to provide feedback in five key areas:

the ‘quality’ of visitors; their performance at an individual show; the impact on customer/employee relationships; the impact on the brand; the value of participation relative to other communication tools

Working with the research company BPRI, an array of research techniques were used. Depending upon the nature of their target audience, CAPI, ethnography, telephone, Web and self-completion surveys were used. The CAPI approach was used daily and enabled them to capture findings from the previous day and to make changes to the visitor experience. For example, at the beginning of the 3GSM World Congress, some concern was expressed about the processes used for directing visitors to key Ericsson staff, as well as about the need for a more tailored approach. The daily briefings by the BPRI team highlighted these areas of concern and alternative solutions to these issues were implemented on the same day. Marked improvement was subsequently reflected in much higher scores for these aspects of performance.

Activity 1Select a country, keeping in mind the environmental characteristics to explain why in-home interviewing does not work particularly well as a survey technique.

13.2 CONSUMER MARKETING RESEARCHThere is one form of applied sociology which is known as Consumer Marketing Research. It focuses on the consumer attitudes, their behaviour and their understanding in a market based economy. The main objective of consumer marketing research is to know the effects and success of marketing campaign. The field of consumer marketing research was first initiated by Arthur Nielson with the founding of AC Nielsen Company in 1923.In consumer marketing research, Projective technique is a measure used to know the tastes, preferences, thoughts, attitudes and behaviour of the



consumer in indirect way. Straightforward questioning doesn’t help in knowing the consumer likings and disliking. Thus asking indirectly would be a better solution to know about the consumer.Projective techniques can be classified into four headings:

1. Association tasks2. Completion tasks3. Construction tasks4. Expressive tasks

1. Association task: it is termed as brand personification. It means association of a brand/product with a specific person. In this task few numbers of words and pictures are given to the respondents and asked to choose or select those words or pictures which they can easily associate with a brand/product. Respondents are also asked for the specific reason behind their selection of words/pictures.

2. Completion tasks: in completion tasks respondents are given an incomplete story, conversation, sentence or an argument and are asked to complete it. There are two specific procedures of task completion:a) Task of sentence completionb) Task of story completion

Sentence completion task: here respondents are asked to complete a sentence in any manner as they find it suitable. This method should be used with a great frequency because it can help in collecting significant amount of information in a short period of time.

For example:” I drink Pepsi because it is ________.”

Task of story completion: in story completion task, respondent’s emotional level towards their brand/product can be examined. This task is very simple. Respondents are only instructed to cite a story about their favorite brand. In some cases some messages with pictures are shown to the respondents and asked to create a story by using those pictures.

For example: why you believe in Surf Excel only for cleaning your clothes?

3. Construction task: third person questioning and bubble drawing method are the main method used in construction task. Further respondents are asked to give their views and opinions of third person’s



reaction, behaviour and attitude. They are asked to present their opinions freely without getting personalized. With the help of this, researcher can also be aware about the respondent’s feeling in such subjects.

4. Expressive task: in this task of projected technique, respondents are asked to act, draw or paint a particular situation.

For example: in role playing, respondents are asked to play a role of a particular brand/product. In a similar situation, construction task is also analysed. As respondents project their opinions onto the thinking of the person in the role playing it becomes the base for a researcher to match the respondent’s reaction with the third person reaction.

Self assessment questions

1. The field of consumer marketing research was first initiated by Arthur Nielson with the founding of AC Nielsen Company in 1923. (True/False)

2. ________ technique is a measure used to know the tastes, preferences, thoughts, attitudes and behaviour of the consumer in indirect way.

13.3 BUSINESS TO BUSINESS MARKET RESEARCH

Business to business research is a more complex process than consumer research. It is very important to find out the right respondent in B2B research though they are very busy and show little interest in participation. Thus it depends upon the skills of B2B researcher that how he “opens up” their business clients by encouraging them. A business researcher must also have the knowledge of developing strategies which further helps in research findings and finally acceptable to the business clients.The following are the key factors which make B2Bmarketing as special and different for consumers:

B2Bmarketing research focus on a small number of consumers who are very large in their product consumption in comparison to consumer markets.

B2Bmarketing research has more complex decision making unit than in consumer markets



Personal relationships are given vital importance in B2Bmarketing research.

B2B products and their applications are more complex than consumer products.

For example: A European software supplier hires a research professional to know which American markets would have the highest sales potential for his/her company, while considering an existing or new product/service.

B2B market research

There are various terms used in B2Bmarketing research which a professional generally use while doing the research study. They are: competition analysis, product market combination test, pinpoint analysis and market development analysis. These marketing research techniques are further divided into two categories:

How much potential a market has?

How to establish your position in that market?

Market potential

Before introducing a new product/service in the market firstly you should know what the potential of that market is so you can take decision whether to launch the product or not.

Positioning in the market

Here researcher uses the technique of product –market combination test. This test helps to evaluate how you should position yourself and by using which tools and resources you should reach the market to become successful. There are various questions which needs to be answered like:

Who are your competitors and what are their products/services?

What kind of requirements a market has?

How do you make differentiation with your competitors?

What is the best target group for me to focus on?

B2B market research helps in knowing the growth potentials in certain markets. This research is useful for new as well as existing products/services. In case of change in price model, B2B marketing



research helps the business clients in knowing the response of their competitors.

The advantages of B2B market research:

• B2B research helps in choosing the best tool you need to realize the highest ROI.

• B2B research study keeps a track on the position of your product/service in the market.

• This research gives a clear description of the market demand.

• This study identifies the proper market segments with the highest potential.

Self assessment questions3. The process of ________ marketing includes facilitating and

expediting the exchanges of goods.4. Professional buyers play a very minute role in the business to

business marketing research. (True/False)

13.4 PRODUCT RESEARCH

Product market research serves several goals: new product design and market validation research, or assessing existing products. Product research can be undertaken for opportunity scan, concept generation, product quality, refine product concepts and create spin-offs concept testing, product design and market tests in order to increase the probability of optimum decisions and successful market impact.

13.4.1 New Product Development Product development is a sequential decision process. It requires a proper blending of the stage of new product development with the right creative or product market research methods as shown in Exhibit 13.1.:

Stages of New Product DevelopmentEXHIBIT 13.1



New Product Development

Stage

Need

Methods and Tools

Product and Market Opportunity Assessment

Identify target segments. Find gaps in features and benefits

Measure customer satisfaction with brands and product category

Market segmentation research

Positioning research

Consumer attitudes and usage study

Concept Generation

Generate variety of first concepts

Assess internal capabilities

Tap internal ideas

Qualitative research

Idea generation

Qualitative Concept Evaluation

Concept appeal

Strength of component features

Perceived value

Concept screening tests in target (small samples) Conjoint (tradeoff analysis) to find relative value of features

Refine Product Concepts and Create Spin-offs

Don't miss an opportunity

Spin-off idea generation concept testing – Stage 2

Quantitative Concept Testing

Measure concept strength

Establish price points Market Size & Demand Estimates

Concept testing – large quantitative survey

Proto-type Development

Make execution match high score concepts Refine live product

Product testing lab environment using Beta test with key B2B customers

Pre-launch Live Market Test

Get live reactions to real product in real markets.

Confirm Stage 5 estimates

Confined home-use test for consumer products

Distribution tests

13.4.2

Test Market Evaluation

Tools and technique of MR can be used to for real world testing of new products, in the form of actual store tests and/or actual test markets.

13.4.3 Product testing

The most valuable marketing research is product testing. There are various uses of product testing which are as follows:

1. Product testing helps in making product superior as compared to other competitive products.

2. Testing helps in enhancing the performance of a product.

3. It creates customer satisfaction.

4. Product testing helps in identifying the competitor’s threat level in terms of their strength and weaknesses.

5. Product testing helps in measuring the aging effect upon quality of product.

6. The effectiveness of price, packaging or brand name on quality of product can be measured with the help of product testing.

7. Product testing assists the R & D department(Research & Development) of a company in creating new or existing products.

8. This process further provides aids in monitoring the quality of products from different industries by using different distributional channels from year to year.

9. Product testing also ensures the consumer’s acceptance/rejection of products.



Product testing is the single most valuable marketing research that most companies ever do. The great value of product testing is, perhaps, best illustrated by some of its many uses. It can be used to:

1. Achieve product superiority over competitive products.2. Continuously improve product performance and customer satisfaction (i.e., to maintain product superiority, especially as consumer tastes evolve over time).

3. Monitor the potential threat levels posed by competitive products to understand competitive strengths and weaknesses.

4. Cost-reduce product formulations and/or processing methods, while maintaining product superiority.

5. Measure the effects of aging upon product quality (shelf-life studies).

6. Implicitly measure the effects of price, brand name, or packaging upon perceived product performance/quality7. Provide guidance to research and development in creating new products or upgrading existing products.

8. Monitor product quality from different factories, through different channels of distribution, and from year to year.

9. Predict consumer acceptance of new products.

Companies committed to rigorous product testing and continuous product improvement can, in most instances, achieve product superiority over their competitors. Product superiority, in turn, helps strengthen brand share, magnifies the positive effects of all marketing activities (advertising, promotion, selling, etc.), and often allows the superior product to command a premium price relative to competitors.

Few companies know the importance of product testing but unfortunately few don’t. Few companies know the right way of doing the product testing and few companies arrange the enough money to do a serious product testing programme. The above mentioned drawbacks which is found in the majority of firms helps in giving better chance to the minority of firms who are totally committed to their product development.

Self Assessment Questions:

5. Product development is a sequential decision process. (True/False)

6. Tools and technique of ______ can be used to for real world testing of new products, in the form of actual store tests and/or actual test markets.

Most companies, unfortunately, do very little product testing. Few companies really understand the power of continuous product improvement and product testing. Even fewer companies know how to do product testing



the right way. Fewer yet budget enough money to support a serious product-testing programme. These shortcomings in the majority of companies create opportunities for the minority of companies who are dedicated to continuous product improvement.

13.5 PRICING RESEARCH

For measuring the customer perception of pricing and value, the quantitative research tools are preferred over qualitative tools as they provide more precise results. The quantitative approach is generally used to study the pricing research problems like customers' willingness to pay, price sensitivity, perceived value and the impact of perceived value on different customer groups. But there are certain limitations like expertisation, timely updated data as per the requirement, time and costs suggest that the quantitative research should be used as a supplement and not as a substitute for other type of research.

13.5.1 Data collection For Pricing Research

Data can be collected from various sources from within and external to the organization to analyze the pricing research objectives.

Internal sources: The internal sources can be customer transactions, company financials, feedback of the stakeholders and proprietary research.

External Sources: The external sources can be customer feedback, syndicated research, desk research, survey research

13.5.2 Tools and Techniques

Given below are the three most popular tools used by pricing researchers.

1. Price Sensitivity Meters: The price sensitivity meter can be used to study the perceived value of the product or service by asking the respondents the following questions:

i) At what price would you think the product is Too Expensive to consider?

ii) At what price would you think the product is Inexpensive (a bargain)?iii) At what price would you think the product is Too Cheap to be of

value?iv) At what price would you think the product is Expensive but worth

considering?v) At this price, how often would you buy this product in next month?



At what price would you say the product is Inexpensive (a bargain)?

(ii) At what price would you say the product is Too Expensive to consider?

(iii) At what price would you say the product is Expensive but worth considering?

(iv) At what price would you say the product is Too Cheap to be of value?

(v) On a scale of 0 to 100 percent, how likely would you be to purchase the product at the Inexpensive price you mentioned (bargain price)?

(vi) On a scale of 0 to 100 percent, how likely would you be to purchase the product at the Expensive price you mentioned?(vii) At this price, how often would you purchase this product in next month?

This tool utilizes a survey based approach where information about price points, product descriptions areis collected through mails, internet phone. Evaluation of a series of price points and rate each price is done by the respondents on a scale from “too cheap” to “too expensive”. The respondents are asked to evaluate a series of price points, and rate each price on a scale from "too cheap" to "too expensive.

Benefits:

(i) This technique Easy can be easily to understand and interpreted;

(ii) This technique helps in identifying the range of acceptable price points.

Helps identify the range of acceptable price points; and

(iii) This method Hhelps to in assessing the various pricing strategies like (penetration, revenue maximizing, etc).

Drawbacks:

(i) Requires awareness about product offering/concept.

(ii) Sensitive to product context (brand, attributes, etc.).(iii) No strong theoretical framework.

2. Conjoint Analysis Techniques: : this analysis refers to a group of techniques rather using a single technique.



i) Self-Explicated Conjoint: "direct" questions are asked from the respondents about the desirability for a particular list of products and profiles.

(ii) Ratings/Rankings Based Conjoint:

ii) Ratings/Rankings Based Conjoint: Respondents asked required to "Rank or "Rate" or "Rank" the likelihood of purchase for two products at a timeat once.

(iii) Adaptive Conjoint:Conjoint: it includes the interactive exercises in which each solution to an alternative choice determines the next alternative.

Interactive exercise in which each answer to a choice task determines the next questio(iv) Discrete Choice: respondents are asked to make a selection between the relative importance weights and multiple products for each of the attributes that are computed indirectly.

Respondents choose between multiple products and the relative importance weights for each of the attributes are calculated indirectly.

3. Discrete Choice Models: A discrete choice model is a survey-based approach which is used at times when respondents make simulated purchase decisions.

Discrete choice models are one of several possible approaches, but are favoured for pricing research. Here, a survey-based approach is used in which respondents make simulated purchase decisions. The results provide insights into the relative significance of product attributes and price points.

Benefits:

(i) It helps in taking purchase decision with the help of simulation model. It also provides insight into the key elements of the decision related to price, brand etc.

It gives a simulated model of a purchase decision and insight into the key drivers of the decision (brand, price, etc.).

(ii) It gives estimate of price elastic ties.

(iii) Market share can be estimated and simulate with the help of this model.

It provides basis for market share estimation and simulation.



Drawbacks:

(i) Respondents may not be familiar with product or have the ability to comprehend offerings.

(ii) When respondents are exposed to multiple price points, it may generate an artificial sensitivity to price.

(iii) If more consideration is given to the research design then the process of research can become unmanageable.

iv) To analyze the results of the research, this model needs the statistical expertise.

Exposure of respondents to multiple price points may create an artificial sensitivity to price.

(iii) Research design can easily become large and unwieldy if too many attributes considered.

(iv) Requires statistical expertise (regression analysis) to analyze the results.

Illustration 1: Choice Based Conjoint (Discrete Choice) Imagine about the next time you buy a bathing soap, select the option that best describes the brand you would mostly like to buy. Or, choose "none of these".

Source: Marketing Research, Avinash Kapoor, Ch-13

A Regression Technique (multinomial logit) is used to analyze the choices.

4. Demand Estimation tool: in this technique, existing data is the main source used for analyzing the impact of price on the sales demand. Some statistical models are also used to identify the key elements of the demand which further help in estimating the separate demand functions for different segment. Regression model is one of them used for the analysis.



Brand A Picture

Brand B Picture

Brand C Picture

No Cream and Moisturizer

Cream and Moisturizer

Cream and No Moisturizer

150 gms 100 gms 75 gms

No Money Back Guarantee

Money Back Guarantee

Money Back Guarantee

Rs 27 Rs 33 Rs 30

Would not buy

any of these.

Demand estimation technique uses existing data to analyze the impact of price (and other factors) on sales demand. It uses regression analysis to identify and quantify the significant drivers of demand, and to estimate separate demand functions for different segments. Internal data like sales transactions, volume (no. of units Sold), price levels/promotions and External data like price of substitute products and demographics (Income etc.) are utilized for demand estimation.

Benefits

(i) (i)This model helps in estimating the price elasticity.

(ii) This model isolates the impact of the individual of each element on demand, remaining other influences constant.

(iii) This technique uses the real world transaction data.

Isolates individual impact of each driver on demand, holding other influences constant.

(ii) Uses real world transaction data (may be supplemented with demographics).

(iii) Provides the estimate of price elasticity (as well as other key elasticities).

Drawbacks

(i) (i)This method needs statistical expertise like in regression analysis and more.

(ii) This model is not deterministic in nature as it uncovers the relationship but does not determine the cause.


7. Data can be collected from various sources from ______ and _____ the organization to analyze the pricing research objectives.

8. If more consideration is given to the research design then the process of research can become more manageable. (True/False)

Requires skill level in regression analysis (model specifications/diagnostics).

(ii) Not deterministic – uncovers relationships, doesn't determine cause.

13.6 MOTIVATIONAL RESEARCH



Motivational research is a systematic process of analyzing the human motives behind their purchasing decision. This method helps in assessing the behaviour and attitudes of the consumers towards their products/ services. The marketers and advertisers especially use this method to identify the consumer behaviour. This research study also tries to identify the soft unspoken beliefs and motives of the consumers and their future aspects related to a product or brand category.

It is a systematic analysis of the motives behind consumer decisions, used especially by advertisers and marketers to assess attitudes towards products and services. Motivational research seeks to thoroughly understand the soft-unspoken motives and beliefs held by customers and prospects in regard to a brand or product category.This qualitative research is conducted in a personal one-on-one interviewing setting, photo ethnography to "see" the behaviours and underlying motives - through diary reports and depth interviews. The focus of such non directive qualitative research is on listening to people talk in response to a minimal number of specific questions, which are for the most part open-ended. Respondents' thinking is stimulated by using projective techniques i.e., the respondents are exposed to visual or aural stimulus then allowed to describe their needs and wants and how they are being met in relation to the stimulus given.

There are three major techniques of motivational research:a) Observation

b) Focus group

c) Depth interview

a) Observations: Observation techniques help in deriving hypothesis about motives behind consumer decisions. Social scientists have initiated the development of this technique. Observations can be done by interacting with the people or sometimes with the help of videos. However, personal observation method is very expensive in nature and mostly consumers are not interested to live with a social scientist for a month or two because of their research study.

For example: it is easy to observe the consumers when they are buying something but it is difficult to observe them at their homes. Here observation can be in person or with the help of video cameras. Usually video cameras are not so effective for observation than an in person.



b) Focus Group: This technique is used with the help of a skilled moderator. To enhance the full potential of motivational research, the group interview should be largely in nondirective way. It totally depends upon the reinforcement of the mutual group that helps in revealing the underlying human behaviour and motives. The discussion under focus group is organized by the moderator which rarely generates motivational insights. Direct questioning of respondents rarely will yield the motivational understanding. However, the focus group is a legitimate technique of motivation.

c) In Depth Interview: The main technique of motivational research is in depth interview. This technique is considered to be the heart and soul of motivational research. This type of interview is conducted for more than 2 hours. The strength point of depth interview lies upon the skills, insight, knowledge and sensitivity of the motivational researcher.While conducting the personal interview, motivational researcher helps:

To create a feeling of rapport To enhance an empathic relationship with each respondent To create mutual trust and understanding

In this technique, motivational researcher creates that type of environment in which respondents feel free to express their feelings and thoughts. In addition, researcher gives assurance to the respondents that their opinions are very important during their work, no matter what those opinions are.

Self Assessment Questions:9. The marketers and advertisers rarely use motivational research to

identify the consumer behaviour. (True/False)10. To enhance the full potential of _________, the group interview

should be largely in nondirective way.

13.7 DISTRIBUTION RESEARCH

This research is the process of doing investigation of different channels, protocol, hierarchy and process of a company. It helps in identifying the information, directions, recommendations, facts and figures of different channels of a company that further enhance the efficiency and effectiveness of sales.

This kind of research is conducted for tracking changes in channel preferences among consumers and businesses and providing tools to assist with local market planning. Research on behalf of manufacturers and distributors is usually related to customer-based marketing and distribution



management reform and involves the activities like establishment of strategy for chains, strategic distribution planning, establishment of sales strategy and reform of distribution, development of new retail patterns and distribution businesses channel policies and channel development of local products, retail location research – number and location of sales representatives.

In order to improve the sales, distribution researcher requires keeping specific and in-depth understanding of all the channels, intermediaries, reseller and consumer. He must focus on the design and collection part of the data. In order to fulfill the needs of end user, a researcher must focus on the following points:

Awareness and in depth knowledge of distribution channels and intermediaries

Segmentation of channels of distribution

Within specific sales channel, insight of position of company

A proper understanding and identification of centers that influence the sales process.

Knowledge for managing sales channels properly

For example: East bridge conducted telephone interviews to find out both the companies and broker’s perceptions of the strengths and weaknesses of those competitors.


11. _______ is conducted for tracking changes in channel preferences among consumers and businesses and providing tools to assist with local market planning.

12. In order to improve the _____, distribution researcher requires keeping specific and _____ of all the channels, intermediaries, reseller and consumer.

13.8 OTHER TECHNIQUES

In addition to above mentioned applications there are some other techniques which are classified as follows:



1. Launching of new product and test marketing in India, It require marketing research tools to help in decision making.

For example: when Hindustan Lever introduced “LIRIL” soap at all India level then company adopted classic test marketing for launching. HLL tested this product in two zones: Hyderabad and Lucknow.

Experimental research is used in this type of research. The best tool suitable for this research is analysis of variance.

2. Measuring the effectiveness of sales promotion and advertising: in this good field experiment should be done. In order to measure the sales growth, analytical statistical methods should be used such as paired t test and ANOVA model.

3. Planning and determination of media and media mix: this can be done with the help of many advertising and private firms. To decide optimal media mix, stimulation and linear programming models should be used.

4. Communication research: there should be a proper channel of communication while doing marketing research. When a researcher presents a new idea in front of society it must be clear and specific.

For example: when a company conveys a message to the target audience, he must try to find out whether the message is perceived in the same sense as required.

Activity 2Suppose you are the marketing manager of XYZ Company. You are going to launch a new product in Bangalore city. What kind of product testing technique you will use to get positive response from the market?

Self Assessment Questions:13. Name the best tool suitable for launching a new product.

a) Regression analysisb) Analysis of Variancec) Correlationd) Factor analysis

14. There should not be a proper channel of _______ while doing marketing research.

13.9 SUMMARY



Let us recapitulate the important concepts discussed in this unit:

Marketing research is a systematic process which can be applied to a variety of marketing challenges and problems.

The main objective of marketing research is to identify those key elements of the marketing mix which directly impact the behavior and attitude of the consumer.

Consumer marketing research can be defined with the help of applied sociology that basically focus on the understanding of consumer behaviour, tastes and preferences.

B2B marketing research is more complicated term as compared to consumer marketing research. In B2B marketing researcher have to prepare a multi facet approach for managing the consumer relationship.

Product market research serves several goals: new product design and market validation research, or assessing existing products.

To study the pricing research problems, the quantitative approach is generally used. The problems can be like customers' willingness to pay, price sensitivity or perceived value and the impact of perceived value on different customer groups.

Motivational research helps in assessing the behaviour and attitudes of the consumers towards their products/ services. The marketers and advertisers especially use this method to identify the consumer behaviour.seeks to thoroughly understand the soft-unspoken motives and beliefs held by customers and prospects in regard to a brand or product category.

This research is the process of doing investigation of different channels, protocol, hierarchy and process of a company.

Except the main key elements of applications of marketing research other techniques should also be kept in mind like test marketing used for launching a new product, determination of media mix, measurement of advertising and sales promotion effectiveness and communication research.

13.10 GLOSSARY



Business to Business marketing: it is a term used to explain the industrial marketing, business marketing and organisational marketing.B2B marketing means the business that sell the products to other business.

Internal sources: when the data is collected from within the organisation it is termed as internal sources. The internal sources can be customer transactions, company financials, feedback of the stakeholders and proprietary research.

External Sources: when the data is collected from outside the organisation it is termed as external sources. The external sources can be customer feedback, syndicated research, desk research, survey research.

Discrete Choice Models: A discrete choice model is a survey-based approach which is used at times when respondents make simulated purchase decisions.

Motivational research: it is a systematic process of analyzing the human motives behind their purchasing decision.It is a systematic analysis of the motives behind consumer decisions, used especially by advertisers and marketers to assess attitudes towards products and services.

Distribution research: This research is the process of doing investigation of different channels, protocol, hierarchy and process of a company.

13.11 TERMINAL QUESTIONS

1. Define the term consumer marketing research.

2. Elaborate the concept of business to business marketing research.

3. Explain the methods of projective techniques.

4. How consumer marketing research is differentiated from business marketing research

5. What is product and pricing research?

6. Discuss the term motivational and distributional research.

7. Explain the other techniques of marketing research.

8. Describe the techniques of pricing marketing research.

13.12 ANSWERS

Self-Assessment Questions



1. True

2. Projective

3. B2B

4. False

5. True

6. Marketing research

7. Within, outside

8. False

9. False

10. Motivational research

11. Distribution research

12. Sales, in depth knowledge

13. ANOVA (b)

14. Communication

Terminal questions

1. There is one form of applied sociology which is known as Consumer Marketing Research. …Refer 13.2

2. Business to Business marketing is a term used to explain the industrial marketing, business marketing and organisational marketing…..refer 13.3

3. In consumer marketing research, Projective technique is a measure used to know the tastes, preferences, thoughts, attitudes and behaviour of the consumer…. Refer 13.2



4. The following are the key factors which make B2Bmarketing as special and different for consumers… refer 13.3

5. Product market research serves several goals: new product design and market validation research, or assessing existing products……refer 13.4 & 13.5

6. Motivational research is a systematic process of analyzing the human motives behind their purchasing decision. …refer 13.6 & 13.7

7. In addition to above mentioned applications there are some other techniques which are classified…refer 13.8

8. three most popular tools used by pricing researchers… refer 13.5.2

13.13 CASE STUDY Revenue loss in telecoms

Problem: A survey was carried out of how telecom operators saw the problem of ‘revenue loss’ caused by billing problems, resulting in a failure to charge for calls, or by deliberate fraud. This was of major concern in the industry and the survey was designed to assess: the extent to which the problem was recognised; quality perceptions of the amount of revenue lost in this way, and approaches to detecting and minimising loss. A total of 50 telephone in-depth interviews were carried out, in more than 30 countries, using a list of fixed and mobile operators assembled by a leading consultancy.Challenges: In this case, note that a specialist consultancy was used to develop a sampling frame. A further difficulty faced even when the name and telephone number were listed in the sampling frame was identifying the sample elements. Identifying the relevant decision-maker in each business was difficult as the persons responsible for limiting revenue loss had a wide variety of titles, e.g. Manager Network Operation, Vice President – Finance, Controller, Risk Management Manager, etc.Once these were tracked down, the next challenge was persuading them that the survey was bona-fide and worth responding to. In the end the survey was a success given that a wide range of companies participated despite the clearly sensitive nature of the subject matter.

Solution: Connell also presents some generalised observations of cultural differences in applying b2b marketing research which are worth debating:

Telephone and Web interviews with b2b respondents can be very difficult to achieve in China. Managers are often unwilling to discuss important issues without the reassurance of face-to-face contact. On



the other hand, personal interviews, once started, can yield as much information and ideas as anywhere in the world, though it can be difficult to tie down respondents to precise appointments in advance.

B2B respondents in other countries, including some Southern European countries where marketing research is less familiar, require more reassurance about confidentiality and security. Faxes explaining the research agency, the sponsoring client and the project credentials are more likely to be required after initial contact by telephone (for a telephone or face-to-face survey). Once the interview is granted, excellent information can be provided.

Telephone and self-completion questionnaires sometimes elicit less detailed and informative responses from Nordic (Denmark, Finland, Iceland, Norway, Sweden) respondents than elsewhere. In this region b2b respondents were more cautious, using formal ways to respond to unstructured questions, although this behaviour can be modified in the context of a face-to-face interview.

Summary: This latter observation was certainly the same experience as in the Global Cash studies. The Nordic/Scandinavian respondents were most cautious in responding to the more sensitive questions, with the Danes having the highest non-response levels to questions that referred to their experiences of specific banks.With the spread of globalisation and increase of international trade, international marketing research has similarly grown. The marketing research industry has had to respond to the challenges set, with major agencies developing account or relationship teams that serve the worldwide operations of their customers.Questions:

1. What is the issue behind the case of telecoms?2. What challenges the company faced during this problem?3. What is the conclusion for the study?

REFERENCES

F.E. Brown, Marketing Research Addison-Wesley Publishing Company, Paul F. Green and Donald S. Tull, Research for Marketing Decisions, Prentice Hall of India.Marketing Research: Applications and Problems - Arun K. Jain, Christian Pinson and Brian T. Rachford, New York, Wiley,. Marketing Research: An Applied Approach Thomas C. Kroner and James R. Taylor, Singapore, McGraw Hill.



Marketing Research An Applied Approach, updated Second European Edition, by Naresh K Malhotra, David F. Birks, Prentice Hall, Financial Times

E references:http://en.wikipedia.org/wiki/Marketing_researchhttp://www.decisionanalyst.com/Downloads/MotivationalResearch.pdfhttp://www.eurojournals.com/ibba_5_04.pdfhttp://publications.theseus.fi/bitstream/handle/10024/23411/Arkhipova_Pustovalova.pdf?sequence=1http://www.pulse-logic.com/distribution-research/



http://www.pulse-logic.com/distribution-research/

http://publications.theseus.fi/bitstream/handle/10024/23411/Arkhipova_Pustovalova.pdf?sequence=1

http://publications.theseus.fi/bitstream/handle/10024/23411/Arkhipova_Pustovalova.pdf?sequence=1

http://www.eurojournals.com/ibba_5_04.pdf

http://www.decisionanalyst.com/Downloads/MotivationalResearch.pdf

http://en.wikipedia.org/wiki/Marketing_research

SMU Marketing Research Ch-13

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