Marketing Research Process Chapter 29

What factors influence restaurants to add low fat menu items? How can they determine success of items? Journal Entry

Steps in the MR Process 1.Defining the problem 2.Obtaining data –Primary –Secondary 3.Analyzing the data 4.Recommending solutions to the problem 5.Applying the results

Step 1: Defining the Problem Business clearly identifies problem or issue & the information that is necessary to solve Ex. Sales are declining obtain info on who is buying product, competitors, & why customers stopped buying products

Objectives Used to develop research questions Objections & questions must correlate Ex. Objective: Determine Guest Satisfaction On a scale of 1 to 5 (5 being excellent, how would you rate the resort facilities?

Step 2: Obtaining Data Data (facts) collected and examined in terms of problem(s) being studied Two types of data: –Primary –Secondary

What is primary and secondary data? Primary Data: collected 1 st time by researcher; specifically for research project; new data gathered to help solve the problem at hand. Secondary Data: Published accessible data from a variety of sources for research and other purposes Data collected for another purpose, but may be reanalyzed in a subsequent study

How do you Obtain Individual company research Commercial research Nielson, Arbitron, MR firm etc. How do you Obtain Internal Sources (within company External Sources (gov’t, business journals, library, trade publications) Advantages Specific to your study First hand information May get money if successful and someone else buys research Advantages Obtained quickly Purchased from info companies Less expensive Disadvantages Takes long to obtain Expensive More work involved Disadvantages Existing data may not be suitable or available Data may be dated (census every 10 years) Primary DataSecondary Data

Primary Data is collected by 3 methods 1.Survey method 2. Observation method 3. Experimental method

Survey Method Information gathered directly through survey Most used method Sample: a part of the target populations that is assumed to represent the entire population –Size depends on money and time –Larger the sample more accurate the results

Data collection instruments Personal interview: face-to-face Focus group: 8-12 people who evaluate product/service/ads with moderatorFocus group Telephone interview Mail survey Internet Survey

Type of Collection DescriptionAdvantagesDisadvantages Personal Interview Face-to-face questioning People prefer to talk to you not write expensive Focus Group 8-12 people with moderator People prefer to talk Expensive; only as good as leader Telephone Interview Calling to give survey on phone Quick, efficient, inexpensive Many unwilling to respond on phone Mail Survey Sending survey by mail Inexpensive, reach large audience 10-20% return rate Internet- Computer Survey Web polls, invitation only, discussion groups Quick, eliminate data entry Limited to individuals who have web access

Observation Method Actions of people are observed & recorded Get information about customer behavior & preferences View the interaction between customers & employees If observation is properly performed, results are often better then survey technique What people actually do is usually better than what they SAY they will do! Cannot measure attitude; only provides info on what person does, not WHY they do it

Observations can be… Point of Sale Research: Observe shoppers for specific patterns and then approach to ask questions when finished Combines natural observation with personal interviews

Experimental Method Researchers observe under controlled conditions Change 1 or more variables & keep others constant Used for new package design, new promotions, media usage Used least often & costly People respond different in controlled situations Research less valuable

Step 3: Analyzing the Data Data Analysis: compiling, analyzing, and interpreting of the results of primary and secondary data collection

Step 4: Recommending Solutions to the Problem Successful research results in information that helps managers make decisions about problems Conclusions drawn from research are usually present at report

Step 5: Applying the Results If data gathered does not help answer questions, results are inconclusive and more research is needed If data gathered does help, recommendations are acted on and monitored

Constructing the Questionnaire they should have… Validity: when the questions asked measure what was intended to be measured –All questions should relate to problem at hand Reliability: research technique produces nearly identical results in repeated trials –Question should ask same type of information of all respondents

Writing Questions Open-ended: respondents construct own response Forced-choice questions: choose answer from possibilities given on questionnaire –Yes/no questions –Multiple choice –Rating scale –Level of agreement –Closed-ended –Partially closed ended –Belief –Attitude

Guidelines for Writing Questions Clear and brief Clear directions Use same rating scale Should have different types of questions –MC, T/F, Y/N, open Good visual appearance Items numbered No more than one page

Administering/Distributing Questionnaire Brief explanation of survey purpose at top Selection is unbiased (every 3 rd person) Dress business like No probing questions Polite Do not be offended if people say NO Carry clipboard or folder Pens/Pencils for customers