Presentation on theme: "MARKETING RESEARCH AND MARKETING INFORMATION SYSTEMS"— Presentation transcript:
1 MARKETING RESEARCH AND MARKETING INFORMATION SYSTEMS Marketing Information Systems (MkIS)Primary vs. secondary dataAdvantages and disadvantages of eachMarketing research tools
2 Learning Objectives Appreciate the costs and benefits of research Appreciate the uses of both primary and secondary market researchAppreciate the respective advantages and disadvantages of different primary research methodsDevelop an understanding of research method problems that can lead to misleading or incorrect conclusions.Understand the proper sequence of research activities.
3 Marketing Research An “investment” to reduce uncertainty Can help guide decisions onWhether to enterProduct characteristicsPromotional strategyPositioningMust weigh costs and benefits of researchMoneyTime spentNo perfect method—tradeoffs between methods
4 Marketing Information Systems (MkIS) Set of procedures and methods for regular collection and analysis of information for marketing decisionsDatabases (internal information—e.g., sales volumes)Market researchPrimarySecondary
5 Data MiningProcessing of vast amounts of data to find relationships between variables—e.g.,Items frequently purchased together “strategic adjacencies” (items placed together in retail setting)Seasonal patterns in salesCustomer segments
7 Primary Research Methods Exploratory MethodsObservation (can be more definitive with larger sample sizes and focus on specific behavior)In-depth interviewsFocus groupsProjective techniquesPrecision Methods (“Conclusive”)ExperimentsSurveysPanelScanner data
8 Choosing a Primary Research Method Can the respondent answer accurately? (What someone consciously believes may differ from “deeper” opinions; beliefs about hypothetical products may not be well developed.)Does the question involve OPINIONS or BEHAVIOR?OPINIONSBEHAVIORNOCan the relevant behavior be observed in the customer’s natural environment?PROJECTIVEMETHODSYESEXPLORATORY or PRECISION research?YESNOSCANNER DATA (e.g., brand choice, impact of advertising, previous purchases, competing brands, demographics)EXPERIMENTATION (determine causality—e.g., impact of product design, advertising message)EXPLORATORYPRECISIONOBSERVATION (e.g., how long does the shopper spend? What does he or she look at? Is anyone else involved?)PHYSIOLOGICAL (e.g., determine reactions, attention, arousal)INDIVIDUAL INTERVIEWSSURVEYSFOCUS GROUPS
9 Surveys Forms Planned questions Mail (self-administered, single time)Mail panel (self-administered, multiple surveys administered over time)Telephone (from central location)Mall InterceptComputer/InternetPlanned questionsOpen-endedClosed-endedNeed large sample sizes for precise conclusionsSURVEY COSTS:USUALLY LOW
10 Characteristics of Some Problematic Questions Difficult to answer—respondent may not have knowledge neededAmounts spent annually on specific product categories may not be knownSensitive (embarrassing)Two in one—e.g., “On a scale from 1 to 10, how fast and reliable are Microsoft programs?”Leading questions—giving the feeling of the “desired” response“Do you agree that soft drinks with sugar are bad for you?”Non-exhaustive questionNon-mutually exclusive answers
11 Troublesome Questions Note that respondents may not clearly remember this information. Responses may not be accurate.
13 Continuum QuestionsQuestions rating the degree of a characteristic (e.g., agreement or product usage) tend to be more effective than binary “Yes/No” questionsE.g.,Strongly Neither StronglyAgree Agree Agree Nor Disagree DisagreeDisagree
20 Some Areas Suited for Continuum Ratings InterestPurchase likelihoodSatisfaction/ DissatisfactionBrand loyaltyPrice sensitivityKnowledgeExperienceInvolvementDecision controlFrequency or level of useAwarenessInformation searchPersonality traitsVariety seeking
21 Experimentation Subjects in different groups treated differently E.g., for some, “target” product is given better shelf spaceE.g., some get couponCan help isolate causesSubject is not biased by questions—does not know how others are treatedEXPERIMENT COSTS:HIGH
22 My Simulated Store…A shopper in the everyday low price condition…
23 Ash’s Instant Coffee Study GROCERY SHOPPING LISTGround beefPotatoesApplesFlourSugarLaundry detergentInstant coffee6 cups of yogurtPaper towelsBananasGROCERY SHOPPING LISTGround beefPotatoesApplesFlourSugarLaundry detergentGround coffee6 cups of yogurtPaper towelsBananasRespondents were asked to describe their impressions of a housewife based only on her shopping list. These shopping lists differ only on one item.
24 DefinitionConfound: The tendency of some phenomenon to be caused at least in part by some variable other than the one of interest.E.g., does having more toys cause children to be more intelligent?
25 Confounds What is cause, what is effect, and what is coincidence? Correlation is not necessarily cause“Lurking” factors may be real cause ofDoes sitting in front of the room cause higher grades?Do vaccinations cause autism?Does Prozac cause suicide?Do fish-heavy diets cause stomach cancer?Does fraternity/sorority membership cause higher grades?
26 (DEPENDING ON CODING AND ObservationLooking at consumes in the field—e.g.,Searching for product category areaNumber of products inspected and time spent on eachApparent scrutiny of labels or other informationInvolvement of othersBehavior under limiting circumstances (e.g., time constraints)OBSERVATION COSTS:LOW TO HIGH(DEPENDING ON CODING ANDANALYSIS NEEDED)
27 Taste Tests Not experiments unless “Triangle” Measure Two or more groups of people are treated differently (e.g., get different food version) orThe same person is being treated differently at separate times (e.g., half the participants receive new formulation, then current; half the participants receive in the opposite order)“Triangle” MeasureEach respondent is given three items: One current, one new, and one duplicate of either old or newAsked to identify the one that is different and explain why
28 (ESPECIALLY FOR THE AMOUNT OF INFORMATION COLLECTED) Focus GroupsGroups of 8-12 consumers assembledStart out talking generally about context of productGradually “focus” in on actual productMOSTAPPROPRIATEAS EARLYSTAGE METHODUsually NOT the best approach. Should NOT be chosen as default research method!FOCUS GROUP COSTS:HIGH(ESPECIALLY FOR THE AMOUNTOF INFORMATION COLLECTED)
29 REMINDERFocus groups are most useful for identifying issues that should be studied in more detail with more precise methodsDue to the small sample size and social influence on individual responses, it is difficult to generalize much from focus groups
30 In-depth interviews Structured vs. unstructured interviews Generalizing to other consumersBiasesSubtle, inadvertent feedbackIN-DEPTHINTERVIEW COSTS:HIGH
31 Projective Techniques Getting at motivations that may not be consciously known— “Tell a story about this picture.”Measurement of attitudes consumers are unwilling to expressIt is easier to admit something embarrassing about someone elseConsumer discusses what other consumer might think, feel, or doPROJECTIVE METHODS COSTS:USUALLY HIGH IF PERSONAL INTERVIEWS OR EXTENSIVEINTERPRETATION IS NEEDED
32 Projective Examples“Please tell me a story of what is going on in this picture.”
38 Physiological Measures Consumer bodily responses are watched at various phases of advertisement or other marketing exposureTracking ofEye movementsFor areas of focusFor attention, involvementHeart rateSkin conductivityBrain wavesState of mindAttentionPHYSIOLOGICALMETHODS COSTS:HIGH
39 Online Research—Analysis of Customer Search Queries Unmet demand—search for product not found on siteMessage comprehension—comparison of search terms to media messageConsumer vocabularyFeedback analysisONLINE SURVEY COSTS:USUALLY LOW
40 Online Surveys Conditional branching—direct skip to relevant question Quality of responseTime pressuresWillingness to write out answers or respond to multiple closed-ended questionsWillingness to read and follow instructions is limitedReliability and browser compatibility issues
41 Conditional Branching Traditional surveys: Have you bought a new car during the last six months? If not, please skip to Question 11.Conditional branching: Respondent will be taken to the appropriate question according to answerCustomization of questionsE.g., consumer lists three brands subsequent questions ask about these specific brands by name
42 Other Online Tools“Click Stream Analysis:” Analysis of “clicking” path—how does the consumer get to a desired page or product?Shopping cart analysisCOSTS: HIGH START-UP COSTS;LOW VARIABLE COSTSPOSSIBLE WITH DEVELOPEDALGORITHMSUSUALLY LOWCOSTS: HIGH START-UP COSTS;LOW VARIABLE COSTSPOSSIBLE WITH DEVELOPEDALGORITHMSUSUALLY LOW
43 Searching for Reports of Personal Experience SourcesBlogs (blogsearch.google.com)Photos (e.g., Flickr, Webshots, Picasaweb, Google image search)Video (e.g., Youtube)CautionsMay be “staged” or sensationalizedMay represent what the writer or photographer wants to showMay be limited entries on certain “mundane” tasks such as dishwashingSome issuesJoy, enjoymentDecisionsAnxietySocial setting and influence
44 Consumers rate several “profiles” (combinations of features) Conjoint Analysis: Determining the Relative Importance of Product AttributesConsumers rate several “profiles” (combinations of features)Statistical analysis is used to “decompose” ratings into preferences17
45 Example Car #1 Car #2 Gas mileage: 30 mpg Gas mileage: 20 mpg Price: $18,200Safety record: AveragePerformance HighReliability PoorHow would you rate car #1 overallon a scale from 1 (Very poor) to7 (Excellent?)Car #2Gas mileage: mpgPrice: $15,200Safety record: ExcellentPerformance PoorReliability ExcellentHow would you rate car #2 overallon a scale from 1 (Very poor) to7 (Excellent?)Each subject will evaluate several (usually 16+) combinations. A statistical technique determines the importance of each feature.18
46 Conjoint Analysis: Advantages Reveals ultimate preferences of consumers when competing influences existAble to predict desirability of combinations not actually exploredCan estimate contribution of each factor and assess its cost effectivenessWill consumers pay $ to reduce the weight of a laptop computer by 2 lbs?19
47 Conjoint Analysis: Disadvantages May be difficult for subjects to rate many combinationsMay need a large number of subjects for accurate measurement/sufficient precisionMust identify relevant attributes and levels in advanceSubject must know about product category (attributes must be meaningful)20
48 COSTS: HIGH START-UP COSTS; POSSIBLE WITH DEVELOPED Scanner DataPanel members in test communities agree toSwipe a card prior to each purchaseHave purchases matched toDemographic profilesMedia/coupon exposurePromotional status of competing brandsPast purchasesProblems:Aggregation over householdAggregation bias--averages of disparate segments obscure!Only available for grocery and some drugstore productsCOSTS: HIGH START-UP COSTS;LOW VARIABLE COSTSPOSSIBLE WITH DEVELOPEDALGORITHMSUSUALLY LOW
49 Scanner Data Research RECORDED PURCHASES TELEVISION EXPOSURE HOUSEHOLD Purchase on occasion: Yes, noTime since previous purchasePrevious purchasesCurrent pricePrevious priceCurrent promotional statusPrevious promotional statusCurrent display statusPrevious display statusDisplay status of competing brandsPromotional status of competing brandsCoupon used: Yes, noCoupon available: Yes, noCoupon available for other brands? Yes, noAmount of couponNo. of ads seen by shopperAds seen for competing brands“Split cable”RECORDEDPURCHASESTELEVISIONEXPOSUREHOUSEHOLDFILEDEMOGRAPHICINFORMATIONANALYSISFamily sizeOccupationIncomeHome ownership
50 Choosing a Primary Research Method Can the respondent answer accurately? (What someone consciously believes may differ from “deeper” opinions; beliefs about hypothetical products may not be well developed.)Does the question involve OPINIONS or BEHAVIOR?OPINIONSBEHAVIORNOCan the relevant behavior be observed in the customer’s natural environment?PROJECTIVEMETHODSYESEXPLORATORY or PRECISION research?YESNOSCANNER DATA (e.g., brand choice, impact of advertising, previous purchases, competing brands, demographics)EXPERIMENTATION (determine causality—e.g., impact of product design, advertising message)EXPLORATORYPRECISIONOBSERVATION (e.g., how long does the shopper spend? What does he or she look at? Is anyone else involved?)PHYSIOLOGICAL (e.g., determine reactions, attention, arousal)INDIVIDUAL INTERVIEWSSURVEYSFOCUS GROUPS