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Chapter Three Types of Marketing Research. Chapter Objectives Distinguish between exploratory research and conclusive research and discuss the role each.

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Presentation on theme: "Chapter Three Types of Marketing Research. Chapter Objectives Distinguish between exploratory research and conclusive research and discuss the role each."— Presentation transcript:

1 Chapter Three Types of Marketing Research

2 Chapter Objectives Distinguish between exploratory research and conclusive research and discuss the role each plays in research projects Illustrate five approaches for conducting exploratory research Distinguish between the two types of conclusive research: descriptive research and experimental research

3 Chapter Objectives (Cont’d) Distinguish between conducting a cross- sectional descriptive study and a longitudinal descriptive study Understand how to conduct experimental research Determine which type of research to conduct

4 Maytag Innovation through Customer Driven Research Maytag –Strategic Initiatives Group used a mix of qualitative and quantitative studies –Discovered through exploratory research that baby boomers were driving the market for high-end products –Based on descriptive research it was determined the new line would carry the Jenn- Air brand

5 Design for the Luxury Market Fitch-Worldwide is a leading design consulting firm was brought in. –Used ethnographic, observational and focus group techniques to understand luxury consumers –A result is the Attrezzi Stand Mixer. –With lots of optional features, it’s “simply too beautiful to put away”

6 Exploratory Research Develop initial hunches or insights Provide direction for any further research needed Purpose –To shed light on the nature of the situation and to identify any specific objectives or data needs

7 Conclusive or Confirmatory Research To verify insights and to aid decision- makers in selecting a specific course of action

8 PURPOSE: to aid in the decision-making process from Chapter 1 Decision- making activity Marketing Research Organization’s internal and external environments Marketing situation calling for decision(s) Final decision(s) Conclusive or Confirmatory Research (Cont’d)

9 Saver’s Nations Bank Facts –Growing competition from variety of financial institutions offers a unique set of financial services –Bank performing well and experiencing rapid growth since inception Problem –Bank wants to ascertain the demographic composition of customers and their perceptions of the bank’s strengths and weaknesses Solution: Conduct conclusive research

10 Trent Eating Association Facts –Operates a chain of restaurants in eight communities –Maintains image of high-class restaurant chain serving excellent food at premium prices Problem –Wondering whether a 15% reduction in prices would hurt or help Solution: Conduct conclusive research

11 Differences Between Exploratory and Conclusive Research Research Project Components: Research Purpose –Exploratory Research General: To generate insights about a situation –Conclusive Research Specific: To verify insights and aid in selecting a course of action

12 Differences Between Exploratory and Conclusive Research (Cont’d) Research Project Components: Data needs –Exploratory Research Vague –Conclusive Research Clear

13 Differences Between Exploratory and Conclusive Research (Cont’d) Research Project Components: Data sources –Exploratory Research Ill-defined –Conclusive Research Well-defined

14 Differences Between Exploratory and Conclusive Research (Cont’d) Research Project Components: Data collection form –Exploratory Research Open-ended, rough –Conclusive Research Usually structured

15 Differences Between Exploratory and Conclusive Research (Cont’d) Research Project Components: Sample –Exploratory Research Relatively small; subjectively selected to maximize generalization of useful insights –Conclusive Research Relatively large; objectively selected to permit generalization of findings

16 Differences Between Exploratory and Conclusive Research (Cont’d) Research Project Components: Data collection –Exploratory Research Flexible; no set procedure –Conclusive Research Rigid; well-laid-out procedure

17 Differences Between Exploratory and Conclusive Research (Cont’d) Research Project Components: Data analysis –Exploratory Research Informal; typically non-quantitative –Conclusive Research Formal; typically quantitative

18 Differences Between Exploratory and Conclusive Research (Cont’d) Research Project Components: Inferences/recommendations –Exploratory Research More tentative than final –Conclusive Research More final than tentative

19 Types of Data for Exploratory Research Key informant Focus groups Secondary data Cast studies Observational data

20 Key Informant--Interviews with Knowledgeable People Silicon Graphics’ key customers –Industries needing realistic generated images for film Boeing Disney NASA Silicon Graphics decides to explore some new product development

21 Silicon Graphics Is Using the Key Informant Technique Key Customer –Industries needing realistic generated images for film –Silicon Graphics needs to identify key industry experts within their customer base Through interviews they determine industry needs They develop new visual graphics software –They then filter this into their product development ideas

22 P&G A leader in the detergent market –Interested in developing a new detergent to arrest sagging profits in a mature market P&G looks to conduct research with managers in appliance industries and key lead users from dry cleaning industries?

23 Muscular Dystrophy Family Foundation® MDFF wants to start a new program to aid people with serious physical handicaps They are wondering about what kinds of charitable programs to begin and what strategies to develop in order to seek donations from the public –Who should the MDFF talk to? Officers in well-established public service organizations, such as the United Way, the American Red Cross, and the American Cancer Society

24 Srivats Software Solutions Interested in developing high resolution images –Who should they talk to? Hollywood animation researchers, NASA researchers, and X-ray specialists

25 8 to 12 individuals Moderator (a well-trained researcher) Informal discussion about research topic Individuals Moderator Discussion Focus Groups

26 Duties of a Moderator Guide discussion Ensure key aspects of the topic are discussed Observe Record

27 Using Secondary Data Data that is conducted for another purpose Fast inexpensive was of conducting exploratory research Often reveals that no further analysis is necessary

28 Kaplan Higher Education Currently serving 15 states and looking to expand into other states and more profitable markets Relied primarily on secondary data to determine new markets This technique provided a fast, cost-efficient method to answer Kaplan’s research question

29 Case Studies In depth examination of a unit of interest Possible units –Customer –Website –Store –Salesperson –Firm

30 Case Studies (Cont’d) Possible Examination Factors –Store Morale Size Product lines Layout Trade area characteristics

31 Allied Associates Company National chain of discount stores with 500 retail outlets across the country Profitability during the past few years has remained above industry average –Top management needs to identify key elements crucial to the company’s success and to capitalize on those elements –Question: Where and how can one accomplish top management’s objectives? –CASE STUDY METHOD: Study three best performing stores and three worst performing stores in depth on numerous dimensions

32 Observation Human or mechanical observation of what subjects actually do in a particular situation Record information as events occur or compile evidence of past events Assesses behavior which can be translated into new products or improvements of current products

33 Types of Conclusive Research Descriptive –Generates data on the composition and characteristics of a specific group such as customers, sales people, and market areas Experimental –Generates data to determine causal relationships

34 Voice of the Leaders Survey Annual, global survey conducted by The World Economic Forum Objective is to understand world leaders’ opinions on a variety of issues affecting today’s business world Results found that members believe that the next generation is most likely to live in a prosperous, but unsafe, world Also found that the quality of products or services, corporate brand reputation/integrity, and profitability are the three most important measures of corporate success

35 Exhibit 3.1 Security and Prosperity – World Economic Forum Survey 2004

36 Exhibit 3.2 Measure of Corporate Success – The Top Three – World Economic Survey, 2004

37 Descriptive Research--Proportion of High- and Low- Income Customers in Saver’s Nations Bank Clientele What does this data indicate to you about the relationship between income and perceptions of location?

38 Descriptive Research Cross-sectional studies –Data collected at a single period in time from a cross-sectional sample of the unit of interest that is disbanded after the data collection Longitudinal studies –Repeated measurements taken over a long period of time from a panel group or sample of the unit that is maintained for future measurements

39 Cross-sectional Studies Data collected at a single period in time from a cross-sectional sample of the unit of interest that is disbanded after the data collection –Conducted in a single time period –Uses a cross-sectional sample of the unit –Once the study is complete the sample is disbanded and not used again

40 Longitudinal Studies Repeated measurements taken over a long period of time from a panel group or sample of the unit that is maintained for future measurements –Measurements taken during many different time periods –Measurements taken from a panel –A PANEL is a sample of units that is maintained for multiple measurements taken during multiple time periods

41 Longitudinal Studies (Cont’d) Types of Panels –OMNIBUS PANEL: different subjects are pulled from the panel for each time period Drawbacks: data is not as reliable –TRUE PANEL: the same subjects are used for the panel every time data is collected Drawbacks: members sometimes evolve out of the desired study group or are induced by the study to change their practices thus tainting the data

42 Table 3.4 Results of Longitudinal Brand Use Study

43 Table 3.5 Changes in Brand Shares: Case 1 What insights can you gain from this table?

44 Table 3.6 Changes in Brand Shares: Case 2 What insights can you gain from this table?

45 Experimental A consumer goods firms wants to determine the impact of advertising on sales. How should they measure the impact of advertising on sales?

46 Multi-group Design Control Group All variables stay the same Experimental Group Change one variable Units Measure the differences. Experimental (Cont’d)

47 Research Continuum Most projects fall in here, aspects of both descriptive and experimental. Purely Descriptive Purely Experimental

48 Exhibit 3.5 Selecting the Appropria te Research Type


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