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Marketing Research Aaker, Kumar, Day and Leone Ninth Edition Instructor’s Presentation Slides.

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1 Marketing Research Aaker, Kumar, Day and Leone Ninth Edition Instructor’s Presentation Slides

2 Chapter Seven 2 Marketing Research on The Internet Marketing Research 10th Edition http://www.drvkumar.com/mr10/

3 Current Trends in Web Usage 55% of American households have access to internet at home (US Census Bureau 2003 population survey) 68% of adults use the internet (Pew Internet and American Life Project 2005) 32% of adult Internet users purchased products or services online in 2005 (Census report) Online advertising revenue is $12 billion in 2005 33.2 million people between 50-64 years of age online in 2005 (eMarketer) Senior-specific sites for Pfizer Inc., Fidelity Investments and Charles Schwab Corp. 3 Marketing Research 10th Edition http://www.drvkumar.com/mr10/ Retail E-Commerce (in USD Bn.) E-Commerce as % of Total Retail Sales 19985.00.2 199915.00.5 200028.01.0 200135.31.1 200246.81.5 200360.01.8 200476.32.2 200587.42.4 2006106.62.7 E-Commerce Spending Summary, 1998 - 2006 SOURCE: Compiled from Annual Retail Trade Surveys, U.S. Census Bureau

4 Internet – Uses & Usage 4 Marketing Research 10th Edition http://www.drvkumar.com/mr10/ Activity Rural Internet Users (%) Urban & Suburban Internet Users (%) Buy or make a reservation for travel 5165 Online banking3443 Online classifieds3037 Read a blog2128 Download screensavers2822 Download computer games2520 Class for credit1511 Fantasy sports97 Uses for Online Services Typical Uses of the Internet SOURCE: Pew Internet & American Life Project.

5 Online Advertisements 5 Top Companies by Sponsored Link Impressions as on August, 2008 Marketing Research 10th Edition http://www.drvkumar.com/mr10/ Company Impressions (in millions) True2,924.8 Amazon.com1,787.1 Zencon Technologies LLC1,664.1 Internet Made Simple1,258.9 InterActiveCorp920.3 SOURCE: Nielsen Online, 2008. “Advertising Placements by Industry and Top Sponsored Links, August 2008,” September 15, 2008, http://www.clickz.com/showPage.html?page=3630843 http://www.clickz.com/showPage.html?page=3630843 Search Engine Advertising Local Media Advertising Contextual Advertising

6 Primary Research on the Internet E-mail Surveys Interactive Forms Online Panels Online Focus Groups User Generated Reviews 6 Marketing Research 10th Edition http://www.drvkumar.com/mr10/

7 Email Surveys Advantages ↑ Greater speed of delivery of questionnaires ↑ Higher speed of delivering responses and feedback ↑ Cost-savings benefits over regular mail surveys ↑ No intermediaries ↑ Asynchronous communication Disadvantages ↓ Low security ↓ No guarantee for anonymity 7 Marketing Research 10th Edition http://www.drvkumar.com/mr10/

8 Comparison of Information Sources Internet (www, Usenet) Professional Databases (e.g., Lexis/Nexis) Commercial On- line Services (e.g, CompuServe) Speed a Low to highHighLow to high Information Structure Structure not very good Very well structuredWell structured Information scopeVery broadDepends on the database, mostly narrow Medium to broad Overall information quality Low to highHigh to very highMedium to high Search toolsLimited, not completeExtensive, accurateMostly accurate User supportLimitedVery goodGood CostLowHigh to very highMedium 8 a Depending on modem, server and database structure Marketing Research 10th Edition http://www.drvkumar.com/mr10/ 8

9 Secondary Research on the Internet Custom Search Service Agents Free Information Providers 9 Marketing Research 10th Edition http://www.drvkumar.com/mr10/

10 The Seven Deadly Sins of Online Searching Pride Assuming one does not need to read the manual or other material for the search process HasteRushing into a search before thinking through your search goals Avarice Trying to perform an extensive search when only a few good pieces of information are necessary ApathyNot thinking creatively about what sources would best cover the subject SlothUsing the same old sources for every search Narrow mindedness Trying only one formulation of the search IgnoranceNot knowing the on-line system’s tricks and tools 10 Marketing Research 10th Edition http://www.drvkumar.com/mr10/ 10

11 The Internet & Marketing Research Developments Intranets Speed 11 Marketing Research 10th Edition http://www.drvkumar.com/mr10/

12 Where The Users Are 12 Marketing Research 10th Edition http://www.drvkumar.com/mr10/ Country Number of hosts in December 2007 % Growth in a Year Number of Hosts per 1000 Inhabitants United States274,101,00018.9915.5 Japan36,803,71919.3260.9 Germany20,659,10557.8250.6 United Kingdom 20,000,000N.A331.2 Italy16.730,59120.8282.9 France14.356,74738.9234.0 China13,113,985N.A10.0 Canada11,000,000N.A340.9 Australia10,707,13924.6539.3 Netherlands10,540,08316.9644.4 Brazil10,151,59236.844.9 Mexico10,071,37050.474.0 Spain9,000,000N.A202.0 Poland7,134,97642.7187.1 India7,000,000N.A6.3 Country Number of hosts in December 2007 % Growth in a Year Number of Hosts per 1000 Inhabitants Taiwan5,121,60715.9222.3 Sweden3,886,31320.1428.0 Finland3,728,55117.0706.6 Russia3,647,60952.225.6 Belgium3,618.49514.8343.3 Switzerland3,308,68428.7443.6 Denmark3,256,13416.0597.8 Argentina3,128,97570.380.3 South Korea3,000,000N.A63.1 Norway2,725,03115.0582.2 Austria2,589,31611.1312.7 Turkey2,425,78953.433.2 Czech Republic 2,093,49739.3204.2 Romania2,014,22072.393.2 Hungary1,689,45643.6168.6 SOURCE: http://www.gandalf.it/data/data1.htm


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