Marketing Research: Information and Technology Chapter 5 Marketing Research: Information and Technology Gilbert A. Churchill, Jr. J. Paul Peter Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 1 1 1 1 1 1

Questions Marketing Research Can Help Answer Slide 5-1 Questions Marketing Research Can Help Answer Table 5.1 Questions about Markets Buyers Demand Channels What kinds of people buy our products? Is demand for our products increasing or decreasing? Do channels of distribution for our products need changing? Questions about Marketing Mix Product Pricing Placement Promotion Which product design is likely to be most successful? What price should we charge for our new products? Where, and by whom, should our products be sold? How much should we spend on promotion? Questions about Performance Market Share Customer Satisfaction Reputation What is our market share overall? Are customers satisfied with our products? How does the public perceive our organization? Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 2 2 2 2 2 2

Basics of a Marketing Decision Support System Slide 5-2 Basics of a Marketing Decision Support System Figure 5.1 Data in Database Models in Model Base Dialogue System Information Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 3 2 3 3 3 3

Primary Data Advantages • Up-to-date • Directly Relevant Disadvantages Slide 5-3 Primary Data Advantages • Up-to-date • Directly Relevant Disadvantages • More Expensive • More Time Consuming Types • Observation • Survey • Experimental Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 4 3 4 4 4 4

Secondary Data Advantages • Less Expensive • Requires Less Time Slide 5-4 Secondary Data Advantages • Less Expensive • Requires Less Time Disadvantages • May Be Obsolete • May Not Be Relevant Types • Internal • External Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 5 4 5 5 5 5

Information Available from the Population Census Slide 5-5 Information Available from the Population Census Table 5.3 Population Housing Household relationship Sex Race Age Marital status Hispanic Origin Education - enrollment and attainment Place of birth, citizenship, and year of entry Ancestry Language spoken at home Migration Disability Fertility Veteran status Employment and unemployment Occupation, industry and class of worker Number of units in structure Number of rooms in unit Unit owned or rented Vacancy characteristics Value of owned unit or rent paid Source of water and method of sewage disposal Autos, light trucks and vans Kitchen facilities Year structure built Year moved into residence Number of bedrooms Shelter costs, including utilities Condominium status Plumbing Telephone Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 6 5 6 6 6 6

Steps in the Marketing Research Process: Step 1 Slide 5-6 Steps in the Marketing Research Process: Step 1 Figure 5.3 Formulate the Problem Plan a Research Design Analyze and Interpret Data Prepare the Research Report Collect Data Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 7 6 7 7 7 7

Steps in the Marketing Research Process: Step 2 Slide 5-7 Steps in the Marketing Research Process: Step 2 Figure 5.3 Formulate the Problem Plan a Research Design Analyze and Interpret Data Prepare the Research Report Collect Data Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 8 7 8 8 8 8

Steps in the Marketing Research Process: Step 3 Slide 5-8 Steps in the Marketing Research Process: Step 3 Figure 5.3 Formulate the Problem Plan a Research Design Analyze and Interpret Data Prepare the Research Report Collect Data Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 9 8 9 9 9 9

Steps in the Marketing Research Process: Step 4 Slide 5-9 Steps in the Marketing Research Process: Step 4 Figure 5.3 Formulate the Problem Plan a Research Design Analyze and Interpret Data Prepare the Research Report Collect Data Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 10 9 10 10 10 10

Steps in the Marketing Research Process: Step 5 Slide 5-10 Steps in the Marketing Research Process: Step 5 Figure 5.3 Formulate the Problem Plan a Research Design Analyze and Interpret Data Prepare the Research Report Collect Data Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 11 10 11 11 11 11

Areas of Ethical Concern in Marketing Research Slide 5-11a Areas of Ethical Concern in Marketing Research Table 5.5 Area of Concern Example Ethical Standards Preserving participant’s anonymity Keeping the names of survey respondents anonymous, even though the client would like to use them to create a mailing list This is a basic standard of ethical research/ Exposing participants to mental stress Arriving late for a scheduled interview; conducting experiments in which subjects are embarrassed at their lack of knowledge about products When stress is unavoidable, researcher should debrief subjects afterward. Asking participants questions against their self-interest Asking about the acceptability of various prices in order to plan a price increase Such issues tend to place ethical standards in conflict with technical standards for accurate research. Using special equipment and techniques Using equipment to measure physiological responses to a product or promotional message These must be properly maintained to avoid injury. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 12 11 12 12 12 12

Areas of Ethical Concern in Marketing Research Slide 5-11b Areas of Ethical Concern in Marketing Research Table 5.5 Area of Concern Example Ethical Standards Involving participants in research without their knowledge Secretly observing the behavior of shoppers Informed consent is a basic ethical standard unless minimal risk to subjects is involved and the research could not be practically carried out with consent. Using deception Showing subjects sample advertisements without telling them that they will have to take a recall test afterward Incompletely informed consent is considered ethical only if there is minimal risk to subjects and research cannot be practically carried out another way. Using coercion Harassing by repeatedly requesting telephone interviews Coercion is unethical and tends to bias results. Depriving participants of their right to self-determination Changing participants in ways they could not expect, such as a taste test in which they cannot identify their preferred brand and unexpectedly lose confidence in their ability to judge Researchers should try to restore participants to their original condition when this occurs. Source: Adapted from Gilbert A. Churchill, Jr. Basic Marketing Research, 3rd ed. (Fort Worth: The Dryden Press, 1996), pp.67-71. © 1992 by the Dryden Press, reprinted by permission of the publisher. 13 12 13 13 13 13