1. Steps in a Marketing Research Project
Chapter 8 Decision Support Systems and Marketing Research
Steps in a Marketing Research Project
LO3
Describe the steps involved in conducting a marketing research project
Notes:
The scope of a marketing research project may range from several hundred dollars to millions of dollars. In any case, the same general research process should be followed.

2. The Marketing Research Process
Chapter 8 Decision Support Systems and Marketing Research
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Collect
Data
Specify
Sampling
Procedure
Plan Design/
Primary Data
Define
Problem
Analyze
Prepare/
Present
Report
Follow Up 1 2 3 4 5 6 7
Notes:
Exhibit 8.1 traces the steps in the marketing research process.
The research process begins with the recognition of a marketing problem or opportunity. As changes occur in the firm’s external environment, marketing managers must decide on changes to the existing marketing mix.
The Marketing Research Process

3. Marketing Research LO3 Marketing Research Problem Objective Management
Chapter 8 Decision Support Systems and Marketing Research
Marketing Research
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Marketing
Research
Problem
Objective
Management
Decision
Determining what information is needed and how that information can be
obtained efficiently and effectively.
The specific information needed
to solve a marketing research problem;
the objective should provide insightful decision-making information.
A broad-based problem that
requires marketing research in order
for managers to take proper actions.
Notes:
The marketing research problem is information oriented.
The marketing research objective is to provide decision-making information.
In contrast, the management decision problem is action oriented.

4. Chapter 8 Decision Support Systems and Marketing Research
Secondary Data
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Secondary Data
Data previously collected for any purpose other than the one at hand.
Notes:
Secondary data is a valuable tool particularly in the problem/opportunity identification stage.

5. Sources of Secondary Data
Chapter 8 Decision Support Systems and Marketing Research
Sources of Secondary Data
Government Agencies
Trade and Industry Associations
Business Periodicals
News Media
Internal Corporate Information
Online
Coca-Cola Store
When you are asked for your opinion on the Coke Store Web site, is Coca-Cola doing marketing research, or gathering information for a DSS? Read the whole survey before deciding. Which did you pick and why?
Online
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6. Advantages of Secondary Data
Chapter 8 Decision Support Systems and Marketing Research
Advantages of Secondary Data
Saves time and money if on target
Aids in determining direction for primary data collection
Pinpoints the kinds of people to approach
Serves as a basis of comparison for other data
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7. Disadvantages of Secondary Data
Chapter 8 Decision Support Systems and Marketing Research
Disadvantages of Secondary Data
May not give adequate detailed information
May not be on target with the research problem
Quality and accuracy of data may pose a problem
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8. The New Age of Secondary Information: The Internet
Chapter 8 Decision Support Systems and Marketing Research
The New Age of Secondary Information: The Internet
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Analyze your topic
Test run a word or phrase in a search engine
Learn as you go and vary your approach
Don’t bog down in strategy that doesn’t work
Go back to earlier steps better informed
Notes:
Before the availability of the Internet’s widely accessible information, collection of secondary information was tedious and boring, often requiring visits to the library or communication with government agencies, trade associations or other secondary data providers.
By typing a description of the desired secondary data into a Web browser, the Internet may provide a wide range of information. However, keep in mind that the Internet is a self-publishing medium and the information quality may vary.

9. Planning the Research Design
Chapter 8 Decision Support Systems and Marketing Research
Planning the Research Design
LO3
Which research questions must be answered?
How and when will data be gathered?
How will the data be analyzed? ?

10. Chapter 8 Decision Support Systems and Marketing Research
Primary Data
LO3
Primary Data
Information collected for the first time. Can be used for solving the particular problem under investigation.

11. Advantages of Primary Data
Chapter 8 Decision Support Systems and Marketing Research
Advantages of Primary Data
Answers a specific research question
Data are current
Source of data is known
Secrecy can be maintained
Notes:
The main advantage of primary data is that they will answer a specific research question that secondary data cannot answer.
Primary data are current and the source of data is known.
Moreover, the information is proprietary.
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12. Disadvantages of Primary Data
Chapter 8 Decision Support Systems and Marketing Research
Disadvantages of Primary Data
Disadvantages are usually offset by the advantages of primary data.
Expensive
“Piggybacking” may confuse respondents
Quality declines if interviews are lengthy
Reluctance to participate in lengthy interviews
Notes:
The cost of primary data may range from a few thousand dollars for a limited survey to several million for a nationwide study.
To save money, firms may cut back on the number of interviews, or piggyback studies by gathering data on two different projects using one questionnaire.
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13. Chapter 8 Decision Support Systems and Marketing Research
Survey Research
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Survey Research
The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

14. Forms of Survey Research
Chapter 8 Decision Support Systems and Marketing Research
Forms of Survey Research
Focus Groups
Executive Interviews
Mail Surveys
Telephone Interviews
Mall Intercept Interviews
In-Home Interviews
Notes:
In home personal interviews: Provide high-quality information, but are expensive because of travel time and mileage costs for the interviewer. Not a popular survey tool.
Mall Intercept interviews: Conducted in shopping malls or in a marketing research office in the mall. Surveys must be brief. It is hard to get a representative sample of the population. However, probing is possible.
Telephone interviews: Cost less and provide one of the best samples of any traditional survey procedure. Many facilities for telephone interviews utilize computer-assisted interviewing, where information is directly input into a computer application. The federal “Do Not Call” law does not apply to survey research.
Mail Surveys: Benefits are the low cost, elimination of interviews, centralized control, and anonymity for respondents. However, mail questionnaires usually produce low response rates. Consequently, the resulting sample may not represent the surveyed population. However, mail panels, consisting of a sample of households recruited to participate for a given period, yield response rates of 70 percent.
Executive interviews: Survey involves businesspeople at their offices regarding industrial products or services. This type of interviewing is expensive, due to the process of finding, qualifying, and interviewing respondents.
Focus groups: A type of personal interviewing, characterized by seven to ten people gathered in a meeting place. The interaction provides group dynamics, with an interplay of responses yielding richer information than individual interviews.
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15. Forms of Survey Research
Chapter 8 Decision Support Systems and Marketing Research
Forms of Survey Research
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Mall Intercept Interview
Survey research method that involves interviewing people in the common areas of shopping malls.
Executive Interview
A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services.

16. Forms of Survey Research
Chapter 8 Decision Support Systems and Marketing Research
Forms of Survey Research
LO3
Focus Groups
Seven to ten people who participate in a group discussion led by a moderator.

17. Questionnaire Design LO3 Open-Ended Question Closed-Ended
Chapter 8 Decision Support Systems and Marketing Research
Questionnaire Design
LO3
Open-Ended
Question
Closed-Ended
Scaled- Response
An interview question that encourages an answer phrased in respondent’s own words.
An interview question that asks
the respondent to make a selection from a limited list of responses.
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
Notes:
Questionnaires contain three basic types of questions:
Open-ended questions
Closed-ended questions
Scaled-response questions.
Examples of these types of questions are shown in Exhibit 8.4.

18. Reasonable terminology
Chapter 8 Decision Support Systems and Marketing Research
Questionnaire Design
LO3
Clear and concise
No ambiguous language
Unbiased
Reasonable terminology
Only one question
Online
CreateSurvey.com
Design a marketing questionnaire to post on your class Web site using the tools offered by Create Survey. Visit the demo polls on the site for ideas and tips.
Online

19. Observation Research LO3
Chapter 8 Decision Support Systems and Marketing Research
Observation Research
LO3
Observation Research
A research method that relies on three types of observation:
people watching people
people watching an activity
machines watching people
Notes:
Observation research is the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them.

20. Observational Situations
Chapter 8 Decision Support Systems and Marketing Research
Observational Situations
Situation
People watching people
People watching phenomena
Machines watching people
Machines watching phenomena
Example
Mystery shoppers in a supermarket
Observer at an intersection counting traffic
Video cameras recording behavior
Traffic-counting machine monitoring traffic flow
Online
Brand Marketing International
Learn more about mystery shopping by requesting a mystery shopper kit from BMI and reading its shopper application.
Notes:
Observation research depends on watching what people do. It may be conducted by human observers or machines.
Online
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21. Ethnographic Research
Chapter 8 Decision Support Systems and Marketing Research
Ethnographic Research
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Ethnographic Research
The study of human behavior in its natural context; involves observation of behavior and physical setting.
Notes:
Ethnographic research comes from the field of anthropology, and is becoming popular in commercial marketing research. Ethnographers directly observe the population they are studying to gain richer insights into the culture and behavior of people.

22. The Sampling Procedure
Chapter 8 Decision Support Systems and Marketing Research
The Sampling Procedure
LO3
Sample
A subset from a large population.
Universe
The population from which
a sample will be drawn.
Notes:
Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Not all possible users of a new product can be interviewed, therefore a firm must select a sample of the larger population.
The population or universe must first be defined. Then it is determined if the sample must be representative of the population. If the answer is yes, a probability sample is needed.

23. Non-Probability Samples
Chapter 8 Decision Support Systems and Marketing Research
Sampling Procedure
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Universe
Sample
Probability Samples
Non-Probability Samples

24. Non-Probability Samples
Chapter 8 Decision Support Systems and Marketing Research
Types of Samples
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Probability Samples
Simple Random Sample
Stratified Sample
Cluster Sample
Systematic Sample
Non-Probability Samples
Convenience Sample
Judgment Sample
Quota Sample
Snowball Sample
Notes:
Exhibit 8.6 describes each of these types of samples.

25. Probability Samples LO3 A sample in which every element in
Chapter 8 Decision Support Systems and Marketing Research
Probability Samples
LO3
Probability
Sample
A sample in which every element in
the population has a known statistical likelihood of being selected.
Random
Sample
A sample arranged so that every element of the population has an equal chance of being selected.
Notes:
The most desirable feature of a probability sample is that statistical rules can be used to ensure that the sample represents the population.
One type of probability sample is the random sample—where every element of the population has an equal chance of being selected as part of the sample.

26. Nonprobability Samples
Chapter 8 Decision Support Systems and Marketing Research
Nonprobability Samples
LO3
Nonprobability
Sample
Any sample in which little or
no attempt is made to get a representative cross-section
of the population.
Convenience
Sample
A form of nonprobability sample
using respondents who are
convenient or readily
accessible to the researcher.
Notes:
A nonprobability sample is a sample where little or no attempt is made to get a representative cross section of the population.
A common form of nonprobability sample is the convenience sample, a selection of convenient respondents such as employees, relatives, or friends. Because of their lower cost, nonprobability samples are the basis of much marketing research.

27. Types of Errors LO3 Error when there is a difference Measurement
Chapter 8 Decision Support Systems and Marketing Research
Types of Errors
Measurement
Error
Error when there is a difference
between the information desired and the information provided by research
Sampling
Error
Error when a sample somehow does not represent the target population.
Frame
Error
Error when a sample drawn from a
population differs from the
target population.
Notes: Error is common to all surveys, yet it is often not reported or is underreported. When errors are ignored, misleading results can result in poor information and bad decisions.
Whenever a sample is used in marketing research, major types of errors may occur: measurement error and sampling error.
Frame error arises if the sample drawn from a population differs from the target population.
Random error occurs when the selected sample is an imperfect representation of the overall population.
Random
Error
Error because the selected sample is
an imperfect representation of
the overall population.
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28. Field Service Firms Focus group facilities Mall intercept locations
Chapter 8 Decision Support Systems and Marketing Research
Field Service Firms
Provide:
Focus group facilities
Mall intercept locations
Test product storage
Kitchen facilities
Retail audits
Notes:
Most primary data is collected by marketing research field service firms.
Field service firms conduct interviews, provide focus-group facilities, mall intercept locations, test product stores, and kitchen facilities to prepare test food products.
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29. Chapter 8 Decision Support Systems and Marketing Research
Analyzing the Data
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Cross- Tabulation
A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions.
Notes:
After data is collected, the next step is to analyze data. The purpose of data analysis is to interpret and draw conclusions from the collected data.
Data is organized by one-way frequency counts, cross-tabulations, and sophisticated statistical analysis.
One-way frequency counts record the responses to a question. They provide a general picture of the study’s results.
A cross-tabulation looks at the associations between certain responses, such as association between gender and product choice.

30. Preparing and Presenting the Report
Chapter 8 Decision Support Systems and Marketing Research
Preparing and Presenting the Report
Concise statement of the research objectives
Explanation of research design
Summary of major findings
Conclusion with recommendations
Notes:
After data analysis is completed, the report is prepared, and conclusions and recommendations are communicated to management.
The report should be tailored to the audience, beginning with a statement of research objectives, followed by a brief explanation of the research design. A summary of major findings is next, followed by a conclusion with recommendations.
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31. Following Up LO3 Were the recommendations followed?
Chapter 8 Decision Support Systems and Marketing Research
Following Up
Were the recommendations followed?
Was sufficient decision-making information included in the report?
What could have been done to make the report more useful to management?
Notes:
The final step in the marketing research process is to follow up. The researcher should determine why management did or did not carry out the recommendations of the report.
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32. REVIEW LEARNING OUTCOME
Chapter 8 Decision Support Systems and Marketing Research
LO3
REVIEW LEARNING OUTCOME
Steps in a Marketing Research Project