1. 1-1 Copyright © 2010 Pearson Education, Inc. Exam One: Marketing Research Exam One Review

2. 1-2 Copyright © 2010 Pearson Education, Inc. Ch. 1) Classification of Marketing Research Problem-Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Example: conduct research on emerging trends in the market. Problem-Solving Research Research undertaken to help solve specific marketing problems. Examples: conducting research on your pricing strategy; test marketing a new product.

3. 1-3 Copyright © 2010 Pearson Education, Inc. Ch. 1) Marketing Research Process Step 1: Defining the Problem (Chapter 2) Step 2: Developing an Approach to the Problem (Chapter 2) Step 3: Formulating a Research Design (Chapter 3-12) (Data desired, measurement decision, survey design, sampling decisions) Step 4: Doing Field Work or Collecting Data (Chapter 13) Step 5: Preparing and Analyzing Data (Chapters 14-21) Step 6: Preparing and Presenting the Report (Chapter 23)

4. 1-4 Copyright © 2010 Pearson Education, Inc. Ch. 2) The Problem Definition Process Fig. 2.1 Discussion with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research Management Decision Problem Marketing Research Problem Pre-step 1: Tasks Involved Pre-step 2: Environmental Context of the Problem Step I: Problem Definition Step II: Approach to the Problem Objective/ Theoretical Foundations Research Questions Hypotheses Step III: Research Design Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed

5. 1-5 Copyright © 2010 Pearson Education, Inc. Ch. 2) Approach to the Problem  Objective/Theoretical Foundations  Research Questions  Hypotheses  Analytical Models  Specification of the Information Needed

6. 1-6 Copyright © 2010 Pearson Education, Inc. Ch. 2) Research Questions and Hypotheses Research questions (RQs) are refined statements of the specific components of the problem. Does preference for Sears lead to patronage? What leads to preference for Sears? A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question. H1: Positive evaluation of Sears leads to preference for Sears.

7. 1-7 Copyright © 2010 Pearson Education, Inc. Ch. 3) A Comparison of Basic Research Designs Objective: Characteristics: Methods: Discovery of ideas and insights Flexible, versatile Often the front end of total research design Expert surveys Pilot surveys Case studies Qualitative & quantitative secondary data Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Quantitative secondary data Surveys Panels Observation and other data Determine cause and effect relationships Manipulation of independent variables, effect on dependent variables Control mediating variables Experiments ExploratoryDescriptive Causal Table 3.2

8. 1-8 Copyright © 2010 Pearson Education, Inc. Ch. 3) Descriptive Research Descriptive research can be used to: determine the degree to which marketing variables are associated make specific predictions Descriptive research can be further classified into: Cross-sectional designs involve the collection of information from any given sample of population elements only once (e.g., cohort analysis) A longitudinal design involves a fixed sample (i.e., panel) of population elements that is measured repeatedly on the same variables.

9. 1-9 Copyright © 2010 Pearson Education, Inc. Ch. 3) Errors in Marketing Research Random sampling error is the difference between the true mean value for the population and the true mean value for the original sample. Non-sampling errors can be attributed to sources other than sampling, and they may be random or nonrandom: Non-response error arises when some of the respondents included in the sample do not respond. Response error arises when respondents give inaccurate answers or their answers are misrecorded or misanalyzed.

10. 1-10 Copyright © 2010 Pearson Education, Inc. Ch. 4) Primary Vs. Secondary Data Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process (Chapter 1). Secondary data are data that have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively. Can be internal or external.

11. 1-11 Copyright © 2010 Pearson Education, Inc. Ch. 4/23) Reliability, validity, and generalizability Reliability: the extent to which a measurement gives results that are consistent. Validity: the degree to which an assessment measures what it is supposed to measure (accuracy). Generalizability: the ability to extend a concept/finding to less- specific criteria.

12. 1-12 Copyright © 2010 Pearson Education, Inc. Ch. 5) Qualitative Vs. Quantitative Research Qualitative Research To gain a qualitative understanding of the underlying reasons and motivations Small number of non- representative cases Unstructured Non-statistical Develop an initial understanding Objective Sample Data Collection Data Analysis Outcome Quantitative Research To quantify the data and generalize the results from the sample to the population of interest Large number of representative cases Structured Statistical Recommend a final course of action Table 5.1

13. 1-13 Copyright © 2010 Pearson Education, Inc. Ch. 5) Classification of Qualitative Research Procedures Focus Groups an interactive group discussion led by a moderator unstructured (or loosely structured) discussion free flow of ideas encouraged; group dynamics are useful Groups are generally homogenous Depth Interviews interview is conducted one-on-one best method for in-depth probing of opinions, beliefs, etc. Techniques include: laddering, hidden issue questioning, and symbolic analysis Projective Techniques unstructured prompts or stimuli encourage the respondent to project their underlying motivations, beliefs, or feelings onto an ambiguous situation they are all indirect techniques that attempt to disguise the purpose of the research

14. 1-14 Copyright © 2010 Pearson Education, Inc. Ch. 5) Definition of Projective Techniques In projective techniques, respondents are asked to interpret the behavior of others. Types of Projective Techniques: Association – word association Completion – sentence and story completion Construction – picture response and cartoon tests Expressive technique – role playing and third person

15. 1-15 Copyright © 2010 Pearson Education, Inc. 6) A Comparative Evaluation of Survey Methods PhoneInterviewsMailEmail/Internet Diversity/flexibility of questionsLowHighLowModerate Use of physical stimuliLowHighLowModerate Response RateModerateHighLow Quantity of DataLow High Potential for Interviewer Bias?ModerateHighLow CostModerateHighLow SpeedModerate LowHigh Perceived anonymityModerateLowHigh

16. 1-16 Copyright © 2010 Pearson Education, Inc. Ch. 6) A Few Notes on Sampling A probability sampling scheme is one in which every unit in the population has a chance (greater than zero) of being selected in the sample. This sampling makes it possible to produce unbiased estimates of population totals. Nonprobability sampling is any sampling method where some elements of the population have no chance of selection. Exclusion bias exists in these types of samples.

17. 1-17 Copyright © 2010 Pearson Education, Inc. Observational research (or field research) is a social research technique that involves the direct observation of phenomena in their natural setting. Observational methods are usually conducted in natural settings. Ch. 6) Observational Research Observational research has more external validity (it’s generalizable beyond that study) but it is difficult to control for confounding variables, which can be a problem.

18. 1-18 Copyright © 2010 Pearson Education, Inc. Ch. 15/23) Frequency Distributions/ Histograms

19. 1-19 Copyright © 2010 Pearson Education, Inc. Ch. 15) Descriptive Statistics Mean Median Mode Range Standard Deviation Variance Be able to read the descriptive output in SPSS. Understand the following:

20. 1-20 Copyright © 2010 Pearson Education, Inc. Ch. 15) Descriptive Statistics Skewness Kurtosis

21. 1-21 Copyright © 2010 Pearson Education, Inc. Ch. 15) Hypothesis Testing A null hypothesis is a statement of the status quo, one of no difference or no effect. If the null hypothesis is not rejected, no changes will be made. An alternative hypothesis is one in which some difference or effect is expected. Accepting the alternative hypothesis will lead to changes in opinions or actions.

22. 1-22 Copyright © 2010 Pearson Education, Inc. Ch. 15) Crosstabs Independent Variable (IV) = Gender Variable is free to vary Dependent Variable (DV) = Internet Usage Variable is dependent on the IV

23. 1-23 Copyright © 2010 Pearson Education, Inc. Ch. 15) Spurious and Suppressed Relationships A spurious relationship exists when two events or variables have no direct causal connection, yet it may be wrongly inferred that they do, due to either coincidence or the presence of a certain third, unseen variable (referred to as a "confounding variable" or "lurking variable”). E.g.: a relationship between a college degree and owning an expensive car may be spurious. Income may be the “lurking variable.” When the effect of a third variable is controlled, the suppressed association between an IV and a DV is revealed. E.g.: when gender is introduced as a third variable, a relationship between age and desire to travel abroad is revealed.

24. 1-24 Copyright © 2010 Pearson Education, Inc. Ch. 15) Chi-square in SPSS The chi-square statistic is used to test the statistical significance of the observed association in a cross-tabulation. H 0 : there is no association between the two variables. We say this is the H 0 because we believe that some association does exist! Not significant; we cannot find an association between variables.

25. 1-25 Copyright © 2010 Pearson Education, Inc. Ch. 15) Paired Samples T-test in SPSS The t-test is good for testing if there is a difference between groups/two sets of data. The mean for Millennials is higher than for Baby Boomers The difference is significant

26. 1-26 Copyright © 2010 Pearson Education, Inc. Ch. 15) Independent Samples T-test in SPSS The mean for Males is higher than for Females But the difference is not significant