Case Notes Part 1

WRITTEN AND VIDEO CASES
Cases provide an alternative to a project emphasis and offer a hands-on supplement to the Discussion Questions,
Close-Ups, Bringing Research to Life, Snapshots, and Classic and Contemporary Readings !e enjoy case use and
find that it enlivens evening and "ee#end courses as "ell as other course structures that have longer session
duration $lso, many instructors use cases to augment or replace projects Some instructors also find cases an
e%cellent evaluation e%ercise, using them to replace multiple choice tests
&he ninth edition of Business Research Methods contains 'oth "ritten and video cases (our ne" video cases,
prepared 'y the te%t authors, appear on the video cassette )leven ne" "ritten cases, as "ell as several smaller
"ritten cases from the "or# of other *r"in+,c-ra"-.ill authors/ Bryant and Smith 0 Practical Data Analysis: Case
Studies in Business Statistics); Dillon, ,adden, and (irtle 0Marketing Research in a Marketing Environment, third
edition, *r"in, 122345 and, one case from Siegel 0Practical Business Statistics, third edition, *r"in, 12264
7ideo cases and cases "ith data sets are indicated "ith special icons in the te%t case section at the end of each
chapter &he majority of the cases have data sets that add further integration to the learning o'jectives 'y
connecting statistical tools to concept understanding
Video Cases by Chapter Use
Video Titles 1 8 9 3 : ; 6 < 2 1= 11 18 19 13 1: 1; 16 1< 12 8= 81
Covering >ids "ith
.ealth Care
X X X X X
Cummins )ngines X X X
Data Development
Corporation
X X X X
)ndries (asteners X X X
)nvirosell, *nc
-oodyear?s $@uatred X X X X
Aohn Deere and
Company
X
>BSD San Diego X X X X X X
Le%us SC 39= X X X
Cut'oard ,arine
Corporation
X X X X
De''le Beach Co X X X X X X X
Star'uc#s, Ban# Cne,
and 7isa Launch
Star'uc#s Card Duetto
7isa
X X X X
US&$/ Come Cut
S"inging
X X X X X X X X X
7ol#s"agen?s Beetle X X X X
1
Written Cases by Chapter Use
Written Titles 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
$ -), of a Study X X X X X
$gri Comp X X X
$*DS Rates for (emales X
BBQ Droducts Crosses
Cver the Lines of 7aried
&astes
X X X
Calling up attendance X X X X X
Camp'ell-)"ald Dumps
$"areness into the
$merican .eart
$ssociation
X X
Camp'ell-)"ald/ R-)-S-
D-)-C-& Spells Loyalty
X X X X X
Can Research Rescue the
Red Cross
X X X
Can the Study Be SavedE X X
Covering >ids "ith
.ealth Care
X X X
Donatos/ (inding the
Be" DiFFa
X X X X X X X X
.ealthy Lifestyles X
.eroBuilderscom X X X X X
.i&ech )ngineering X
*n@uiring minds "ant to
#no"--BC!G
X X X X X X X X X X X
,astering &eacher
Leadership
X X X X X X X X X X X X
,atching !its "ith
Aason on Sampling
&heory
X
,cDonaldHs &ests
Catfish Sand"ich
X X X X
,edical La'oratories X
BCRCC/ &eeing up a
Be" Strategic Direction
X X X X X X X X X X X X X X
BetConversions
*nfluences >elley Blue
Boo#
X X X X
Cpen Doors/ )%tending
.ospitality to &ravelers
"ith Disa'ilities
X X X
Cverdue Bills X X
Derformance )valuations X X X
Ramada Demonstrates its
Dersonal Best
X X X X X X X X
Retailers Unhappy "ith
Displays from
,anufacturer
X X X X
Ru''ergate X
State (arm/ Dangerous
*ntersections
X X X X X X
Written Titles (cont) 1 8 9 3 : ; 6 < 2 1= 11 18 19 13 1: 1; 16 1< 12 8= 81
Sturgel Division X X X
8
&he BraFing Cperation X X
&he Catalyst for !omen
in (inancial Services
X X X X X X X X
&-Shirt Designs X X X
US&$/ Come Cut
S"inging
X X X X X X
7iolence on &7 X X
!aste Daper X X
Iero% $'uses X X
JahooG/ Consumer Direct
,arries Durchase ,etrics
to Banner $ds
X X X

X

Teaching Tips
&he videos accompanying this te%t "ere selected for discussion of the concepts in Business Research Methods 2th
edition )ach video synopsis that follo"s highlights ho" that video might 'e used, as "ell as descri'ing the video
and identifying the principals spea#ing on the videos
&he videos offer e%amples from 'oth consumer goods and services and industrial goods companies !ith video
lengths ranging from 1=-16 minutes, each video is designed to 'e discussed "ithin a one-class format
*f you have not previously used video cases in teaching Business Research Methods, the follo"ing ideas suggest
"ays you might use the accompanying video cases
(or an INDIVIDUAL EXERCISE OR ASSIGNMENT/
Sho" the video during or outside of class, possi'ly through a campus ca'le net"or# or at assigned
times during several days prior to the case discussion
$ssign a series of 'ac#ground and analytical @uestions for "hich the student must prepare ans"ers
Questions may include/
!hat are the 'ac#ground facts relating to the caseE
.o" does the management!research "uestion hierarchy apply to the video caseE
.o" are one or more distinct te%t concepts relevant to the caseE
.o" do the various concepts interrelate to each other "ithin the caseE
!hich concepts might 'e applied differently if the video-case firm "ere a different type of
organiFation or in a different stage of development or facing a different management
pro'lemE
During the su'se@uent class, select an individual to ans"er each @uestion, "ith one or more
additional students chosen to contri'ute further detail or analysis to the initial student?s ans"er
,ove progressively from case fact or definition @uestions to analytical @uestions that tie case
facts to the te%t concepts
Sho" the video during class
$ssign each student the responsi'ility for focusing on ho" one or more distinct te%t concepts are
relevant to the case
$ssign each student a set of analytical @uestions that form the foundation of the su'se@uent
discussion
Jou can assign more than one student to each concept
$llo" students appro%imately 1= minutes follo"ing the video to draft ans"ers to the @uestion set
Call on individual students to present their ans"ers to the assigned @uestions, "ith additional
students called to develop a full understanding of an appropriate ans"er to each @uestion
9
(or a TEAM EXERCISE/
Divide the class into teams/
Sho" the video outside of class, possi'ly through a campus ca'le net"or# or at assigned times during
several days prior to the case discussion
$ssign each team the responsi'ility for discussing a series of analytical @uestions
Jou can assign each team 'ac#ground @uestions, as "ell as analytical @uestions
Jou can assign each team the same or different @uestions
.ave each team select a spo#esperson to present that team?s analysis
Sho" the video during class
$ssign each team the responsi'ility for discussing a series of @uestions
organiFation or in a different stage of development or facing a different management
pro'lemE
Jou can assign each team the same or different @uestions
.ave each team select a spo#esperson to resent that team?s analysis
(or a COMBINATION e%ercise/
$ssign a series of 'ac#ground and analytical @uestions for "hich the student must prepare ans"ers
organiFation or in a different stage of development or facing a different management pro'lemE
Sho" the video outside of class, possi'ly through a campus ca'le net"or# or at assigned times during
several days prior to the case discussion
During the su'se@uent class session/
Divide the students into teams
$ssign each team the responsi'ility of developing a full analysis of the @uestions
.ave each team select a particular individual to share the team?s analysis for each @uestion
)very student in the team should serve as team spo#esperson for at least one @uestion
Conduct a class discussion of the @uestions su'se@uent to this team discussion
Start the discussion of each @uestion "ith a different team, "ith a spo#esperson from each of
the other teams contri'uting further detail or an alternative analysis to the initial team?s ans"er
,ove progressively from case fact or definition @uestions to analytical @uestions that tie
case facts to the te%t concepts and each other
3
Video Cases
Coering !ids "ith #ealth Care Duration/ 1; minutes
#o"$When Use%
&o discuss the ,anagement-Research Question .ierarchy
&o discuss multi-stage research design
&o discuss e%ploration as a critical research step
&o discuss sampling design
o Sampling frame
o Screening of participants
&o discuss ho" research findings "ere incorporated into mar#eting materials
Co&pany 'ac(gro)nd
Robert Wood 1ohnson Foundation: &his health care philanthropic organiFation, among is 'roader mission, see#s to
improve the health and health care of all $mericans 'y assuring that all $mericans have access to @uality health care at
reasona'le cost *t supports training, education, research 0e%cluding 'iomedical research4, and projects that demonstrate
the effective delivery of health care services Rather than paying for individual care, it concentrates on improving the
effectiveness of health care systems and the conditions that promote 'etter health
Wirthlin Worldwide is a full-service research organiFation Communication strategy development and consulting is one
of its core competencies *t serves as a strategic partner to corporations and their agencies on the full process of
advertising+pu'lic relations development and evaluation
GMMB is a full-service advertising agency "ith special e%pertise in "or#ing "ith non-profit organiFations
Co&pany UR*s%
Ro'ert !ood Aohnson (oundation/ """+r",-+org
!irthlin !orld"ide/ """+"irthlin+co&
-,,B/ """+g&&b+co&
$dvertising Research (oundation 0$R(4/ """+ar-site+org
Video Content and Disc)ssion%
&his video descri'es the research done 0focus groups, survey, ad testing4 to increase enrollment in the federal
governmentHs SC.*D program ,anaged at the state level, the State ChildrenHs .ealth *nsurance Drogram provides 'asic
health coverage for the children of the nationHs "or#ing poor Research 'y !irthlin !orld"ide needed to discover "hy
families "ho "ere eligi'le for the assistance "erenHt enrolling $n early, une%pected finding 0that "or#ing families
thought they "erenHt eligi'le 'ecause they "ere "or#ing and earning money4 changed the direction of the campaign &he
findings "ere used 'y -,,B, *nc to develop a major advertising and pu'lic relations initiative to increase enrollment
"hich "as @uite successful &he initial "ave of the campaign resulted in the enrollment of more than one million eligi'le
families Be" research "as planned and might no" 'e availa'le to prove the continuing success of the multi-year
campaign &he research and su'se@uent mar#eting campaign "ere sponsored 'y the Ro'ert !ood Aohnson (oundation
Video Presenters:
Stuart Schear, Senior Communications
Cfficer, Ro'ert !ood Aohnson (oundation
David Richardson, Dresident !irthlin
!orld"ide
David Smith, Dartner, -,,B Aean Statler, Senior 7D, !irthlin !orld"ide
$nnie Burns, Senior Dartner, -,,B ,aury -iles, Senior Research )%ecutive,
!irthlin !orld"ide
Video Content:
:
Issues Video Content
!hat is the SC.*D Drogram and "hen "as the la"
passed that ena'led the programE
State ChildrenHs .ealth *nsurance Drogram
0SC.*D4 "as created 'y &itle II* of the
(ederal Balanced Budget $ct of 1226 *t is
jointly financed 'y the (ederal and State
governments and is administered 'y the States
!ithin 'road (ederal guidelines, each State
determines the design of its program, eligi'ility
groups, 'enefit pac#ages, payment levels for
coverage, and administrative and operating
procedures SC.*D provides a capped amount
of funds to States on a matching 'asis for
(ederal fiscal years 0(J4 122< through 8==6
(ederal payments under title II* to States are
'ased on State e%penditures under approved
plans effective on or after Ccto'er 1, 1226
!hat is Ro'ert !ood Aohnson (oundationE !hy
"as Ro'ert !ood Aohnson (oundation "illing to
sponsor the researchE
R!A( is a health care philanthropic
organiFation that see#s to improve the health
and health care of all $mericans 'y assuring
that all $mericans have access to @uality health
care at reasona'le cost
!hat is the management dilemma driving the
researchE
,any families eligi'le for SC.*D have not
enrolled $t the time of this research, more than
11 million children "ere "ithout health
insurance
!hat is the research @uestion driving the research
designE
.o" do "e convince "or#ing families "ithout
health insurance that SC.*D is for them and
that they should sign up for this coverage
R!A( used an independent consultant to manage
the R(D process .o" "as the proposal process
conductedE !hat did the independent contractor
add to the processE
R!A( supervises many grants related to health-
care initiatives $n independent consultant
gave this particular program a coordinator "ho
"as undistracted 'y other projects
!hat type of research firm is !irthlin !orld"ideE
!hy "ere they chosen for the researchE
(ull service research firm &hey had a previous
relationship "ith -,,B, the agency hired to
develop the communication program
*n "hat "ays "as -,,B, the advertising agency
chosen to develop the mar#eting campaign,
involved in the researchE
&hey "ere an e@ual partner in planning the
design, influencing the @uestionnaire used for
the survey, and the copy testing
!hile names and other contact information of
eligi'le families "ere #no"n to government
officials, it couldnHt 'e accessed to develop a
sample frame due to privacy la"s .o" did
!irthlin develop the sampling designE
!irthlin used screening procedures to identify
"hether the household they "ere spea#ing "ith
"as eligi'le for SC.*D
!hat "ere some of the original hypotheses a'out
"hy families "erenHt enrolling for SC.*D
'enefitsE
&hat people "erenHt enrolling 'ecause of the
K"elfareH sigma associated "ith government
health care initiatives
&hat people "erenHt enrolling 'ecause
healthcare for their children "asnHt a priority
Doverty, "elfare, charityLthese are 'elieved to 'e
e%ceedingly sensitive issues to the "or#ing poor
.o" did !irthlin desensitiFe these issuesE
&hey used a laddering intervie" process that
reached for the emotional drivers 'eneath
parenting decision ma#ing
!hy "ere focus groups used and "hat did they
revealE
&hey "ere used to understand the attitudes of
the "or#ing poor a'out preventative health
care, and to determine if their attitudes differed
;
from those of other families "ithout health care
insurance
!hy "as a phone survey chosenE *t "as the @uic#est "ay to reach the largest
num'ers of a national population of "or#ing
poor
!irthlin needed to screen large num'ers of
families to determine "hich "ere li#ely eligi'le
for SC.*D and therefore a mem'er of the
relevant population5 phone screens "ere
e%pedient
!hat #ey findings "ere critical in the development
of the su'se@uent mar#eting materialsE
&hat <;M felt 'eing a good parent meant
providing healthcare insurance for their
children 0disproved early hypothesis4
&hat families "erenHt enrolling 'ecause they
thought that such programs "ere not for them,
'ut for families "here the head of the
household didnHt "or# or made far less money5
they needed to #no" that an income of 9:,===
or less @ualified them for the coverage in most
states
,ajor 'arrier to enrollment "as lo" a"areness
of the program
!hat are the criteria on "hich the $R( David
Cgilvy $"ard for )%cellence in $dvertising
ResearchE
)ach year, the $dvertising Research
(oundation honors research that has 'een
sho"n to ma#e an important contri'ution to
creating, identifying and improving great
advertising &he a"ard is named after the
legendary adman, David Cgilvy, 'ecause of his
passion for the role of research in crafting great
advertising Research case studies su'mitted
for consideration must demonstrate measura'le
success and descri'e research that shaped the
communication strategy, the actual advertising,
the evaluation and strengthening of the
advertising, or guided the media e%posure
!ey Research .acts
$fter the advertising,
38M of eligi'le households in the test group "ere a"are of the program
::M of SC.*D-eligi'le families #ne" a'out any options
88M of SC.*D-eligi'le families #ne" a'out SC.*D
6=M to ;==M increase in SC.*D hotline calls across all states
*n test mar#et/ ; of 1= sa" the ads5 8:M of those called the hotline
2:M of parents calling learned a'out the program from advertising, not DR efforts
$ds and DR efforts reached 6<,<:=,=== families
$d "ith the 'roadest appeal "as Nhard choicesO 0pin# hair4Psho"n in the video
Other Web sites o- interest%
ARF/Ogilvy Award/ http/++"""arfsiteorg+a"ards+ogilvyQintrohtml
Covering >ids/ """covering#idsorg
Additional in-or&ation o- Interest%
6
*n 8==3, according to the Ro'ert !ood Aohnson (oundation "e'site, NBearly 33 million $mericans, over < million of them
children, go "ithout health insurance &his is the single greatest 'arrier to o'taining timely, appropriate health care servicesO
!ey /raphics in Case%
C)&&ins Engines Duration/ 13 minutes
#o"$When Use%
&o discuss ho" statistical @uality control is used to enhance @uality
&o discuss data from a statistical @uality control program can 'e used in other functional areas of 'usiness
&o discuss longitudinal studies 0Customer Council4, and "hen and ho" they are used
&o discuss ho" a communication "e' site can also 'e used for compiling information
<
&o discuss ho" special events 0Cummins Signature ;== &our4 can 'e used for competitive intelligence
gathering
Co&pany 'ac(gro)nd%
Cummins )ngines is a (ortune :== company founded in 1212 "ith its head@uarters in Colum'us, *ndiana *t ma#es
advanced, fuel-efficient diesel po"er systems and engine related components, and specialiFes in customiFed diesel
engine production, shipping more than 1=== engines per day to customers and dealers on every continent and
purchasing engines for use in every conceiva'le situation and climate Cummins has a long history of innovation,
from pole performance at the *ndianapolis :== to the first natural gas fueled engine to pass California?s tough
emissions regulations Cummins operates four strategic 'usiness units/ po"er generation, automotive, industrial,
and filtration !ith more than 8:,=== people around the "orld and :3== authoriFed Cummins distri'utors,
Cummins has the "orld covered &he Signature ;== engine is the ne"est and most advanced diesel engine on the
mar#et *t is so po"erful and smooth in operation that it captured the competitor?s attention during the #ic#-off
promotional event

Co&pany UR*: """+c)&&ins+co&

&he Signature ;== engine is the ne"est and most advanced diesel engine on the mar#et *t is so po"erful
and smooth in operation that it captured the competitor?s attention during the #ic#-off promotional event Darts of
this video are e%tracted from a corporate video introduction to Cummins? @uality control programs &he video
descri'es ho" customer and supplier relationships, and the information shared "ithin these relationships led to the
Signature ;== engine
Video presenters:
none
Video Content:
Issues Video content
!hat type of data is generated 'y
Cummins statistical @uality control
programE $nd "hat does the collection
of this information permit Cummins to
doE
Cummins electronic and advanced
statistical control programs allo" every
employee to trac# every engine during its
manufacture
&hese programs also/
time the delivery of parts and
components to assem'ly, as needed,
permit each plant to
operate on a Fero defects precision
standard,
operate "ithout inventory, and
manage a ro'otic manufacturing
process 0such as engine painting4
permit monitoring of critical ?clean
environment? measures of temperature
and dust--"hich impact engine
performance
.o" is longitudinal study data different Cummins formed a Customer Council as
2
than cross-sectional study dataE part of its alliance program to produce
more customer-focused products &he
council "ould generate trac#a'le attitudes
over time that could 'e matched to
manufacturing innovations #$deas are
the %o&er 'ehind Cummins4,
product alterations 0#eeping Cummins
on the leading edge of advanced, fuel-
efficient engines4 , or
changes in employee training or
motivations programs
.o" might employee input influence
the creation of a ne" po"erful engine
li#e the Signature ;==E
Seasoned, s#illed line employees "ere used
during the design of the Signature ;==
engine
.o" could managers of the various
strategic 'usiness units use trac#ing of
"e' connections 'y customers and
suppliersE
*t?s e%tensive "e' site offers customers and
dealers/
"iring diagrams,
sensor locations,
a glossary of technical terms,
shop-tal# tips for ma#ing engine
repairs, and
a mechanism for locating the closest
supplier "ithin Cummins? e%tensive
customer service net"or#
.o" can 'oth Cummins and its
competitors 0li#e Caterpillar4 use
special promotional events, li#e the
Signature ;== tour, to collect
informationE
Drospective Cummins customers had an
opportunity to test-drive the engine during
the tour *ntervie"ing drivers "ould allo"
Cummins to verify performance and spot
potential pro'lems "ithin a "ider group of
users
Cummins representatives as# @uestions and
collected comments made 'y potential
customers
&hese could 'e used in the preparation
of second generation promotional
materials for dealers
Cummins could use competitor
comments and @uestions to identify
potential advantages or disadvantages
that the Signature ;== might face "hen
it is availa'le to the diesel purchasing
mar#et
Competitors studied the engine and the
customers? reactions to the test-drive and
performance discussions &his could 'e
used in their formation of a counter-attac#
strategy
1=
Data Deelop&ent Corporation Duration/ 11 minutes
#o"$When Use%
&o provide an overvie" of some of the issues facing the research industry
&o discuss the pros and cons of various sampling techni@ues
&o discuss various research design issues
Co&pany 'ac(gro)nd%
(ounded in 12;=, this Be" Jor# head@uartered research firm is one of the United State?s largest research firms
"ith a reputation for @uality custom, @ualitative, and @uantitative research !ith five offices and a staff that
averages more than 8= years of e%perience, DDC has completed more than 16,=== domestic and international
studies $ leader in in-home and office personal intervie"ing, DDC !$&S centers have 16= C$&* 0Computer-
$ssisted &elephone *ntervie"ing4 e@uipped stations &hey offer a net"or# of C$D* 0Computer-$ssisted Dersonal
*ntervie"ing4 in more than 1<= mall locations, *nteractive Soft"are 0S&CR)4 simulations of store shelving,
'uildings, etc to develop and evaluate logos, signage, pac#aging, etc DDC?s *nternet Survey -roup offers "e'-
'ased studies
Co&pany UR*% """+datadc+co&
Video Content 0 Disc)ssion% Cfficers and project directors for Data Development Corp descri'e themselves as a
?generalist? research firm &hey specialiFe in mar#eting research, 'ut they do all types of research using a variety of
research methods Dresident Aoe -oldstein emphasiFes that research is ?mostly art and partly science? &he video
touches on numerous issues as the DDC officers descri'e "hat types of research they do, and ho" and "hy they do
these types of research
Video Presenters/ Several DDC officers and project directors contri'ute their ideas in the video/
David Rausch, Sr
7D
Chip Lister, Sr 7D
,orris Cohen, Sr 7D
Shoshana Shapiro, Sr 7D
Aoe -oldstein,
Dresident and
,anaging Director
Video Content
Issue Video Content
!hy research is used 'y 'usinesses Business o"ner+manager loses o'jectivity
the more involved they 'ecome "ith a
project
Due to the high cost of ne" product
decision, managers need to predict "ith
accuracy "hat is li#ely to happen 'efore it
happens
!hat ma#es good researchE *nformation "here error is lo"
*nformation "here the data is logical and
ma#es sense
*mpact of technology on research
methodology
$'ility to use hand held computers and
computer soft"are to replace hand sorting
of ?cards? used to measure comple% attitude
measurements
11
Issue Video Content
Dro'lems plaguing the research
industry
Declining "illingness to participate in any
type of research
Competition for possi'le respondents time
from telemar#eters selling products and
services
Research that attempts to evaluate very
minor differences or proposed changes,
that results in consumer confusion
$ppropriate sampling methods ,easuring attitudes demands a longer time
frame 01:-8= minutes4 and often leads to
purposive sampling rather than pro'a'ility
sampling 0eg mall intercept intervie"s4
Random-digit dialing is an appropriate
method for phone intervie"ing to get a
more scientific sample
Research Design issues (ace to face intervie"s are 'est to measure
attitudes, eg personal intervie"s in the
home and mall intercepts are mentioned
Dhone intervie"s are appropriate "hen you
don?t need the respondent to respond to
visual stimuli
&ype of research gaining favor Customer satisfaction 0determining
"hether your customer is happy "ith your
offering and ho" happy they are4
Endries .asteners Duration/ ; minutes
#o"$When Use%
&o discuss difference 'et"een pro'lem-focused and opportunity-focused research
&o discuss o'servation studies for generating information
&o discuss process mapping as a research techni@ue
&o discuss )lectronic Data *nterchange 0)D*4 as a research and communications techni@ue
&o discuss data mining, the use of internally-generated secondary data in 'usiness decision ma#ing
&o discuss partnerships or alliances "ith customers or suppliers in data collection and information
management
Co&pany 'ac(gro)nd%
)ndries (asteners, no" )ndries *nternational is a "holesaler of parts to C),s 0original e@uipment manufactures4
and repair service companies Located in Brillion, !isconsin, this company employs 8== people

Co&pany UR*% """+endries+co&
18
Video Content and Disc)ssion% &he president of )ndries (asteners and Supply, *nc discusses the outcome of
data collection, 'oth internal and from its customers, "hich resulted in the development of ne", profita'le customer
services that provide significant cost savings for its customers
Video presenters:
Bo' )ndries, Dresident
Video Content:
!hat are ?soft costs? for a 'usiness or
organiFationE
Soft costs include activities not related to
the product, such as 'uying, storing,
handling, @uality inspection, and invoicing
Several levels "ithin a channel may
duplicate a soft cost-activity 0eg @uality
inspection4 that generates e%cessive and
unnecessarily high soft costs
)liminating soft cost-activities or their
duplication can yield significant savings
&rends contri'uting to the discovery of
opportunity
*ncreasing use of just-in-time
manufacturing
*ncreasing concentration of purchasing
among a one or small group of partner-
suppliers
Research on soft cost-activities that
"ere duplicated or unnecessarily high
)ndries (asteners ?follo"ed? each part it
supplied to its C), or repair service
customers
!hat soft-cost activities "ere
discovered as possi'le candidates for
cost-saving programsE
Quality inspection of parts 0@uality audits4
*nvoicing
.o" )D* 'ecame part of the
communication process
)ndries no" uses )D* "ith some of its
customers
!hat value added functions created
savings for its customers
Reduced manufacturer inventories
,anage procurement of parts
)liminate multiple invoicing, in some cases
reducing invoices to one
Speeding communication 'et"een )ndries
and its customers
Enirosell Duration/ 1= ,inutes
#o"$When Use%
&o discuss o'servation studies
&o discuss mechanical vs human o'servation
19
&o discuss alternative arenas for mechanical o'servation research 0other than the mar#eting and operations
issues descri'ed here4
&o discuss alternative mechanical devices used for o'servation
&o discuss "ays of presenting data to clients
&o discuss privacy issues involved "ith filming unsuspecting participants
&o discuss the role technology has in o'servation studies 0'oth generation of information and analysis of
that information4
Co&pany 'ac(gro)nd%
(ounded in 1262 as )nvironmental $nalysis R Dlanning Consultants, the firm changed its name in 12<2 to
)nvirosell, *nc )nvirosell specialiFes in 'ehavioral research, specifically in the retail environment )nvirosell?s
specialty is e%amining consumer-shopping 'ehavior, and it has done this for (ortune :== companies including
'an#s, stores, restaurant chains, as "ell as consumer product companies )nvirosell has offices in Be" Jor#,
,ilan 0*taly4, Sydney 0$ustralia4, and Sao Daulo 0BraFil4, "ith some thirty percent of total company revenue
generated offshore Daco Underhill, its founder, sees himself as a ?retail anthropologist? )nvirosell has si%teen
full-time and thirty part-time staff mem'ers in its Be" Jor# City head@uarters *t films 'et"een :=,=== and
6=,=== shoppers annually !hile )nvirosell is a for-profit-institution, Envirosellers regard themselves as
consumer advocates and thrill to see the results of their "or# in stores, sho"rooms, restaurants, 'an#s, ur'an
streets, shopping malls and airports around the "orld $ccording to their "e' site, SLife is a'out casting
shado"s and "e are proud of oursS

Co&pany UR*% www.envirosell.com
Video Content and Disc)ssion% &he managing director, research director, and senior analyst share information
from several o'servational studies done in 'an#s, as "ell as music, general merchandise, and other retail
environments )nvirosell strives to understand "hat people 'uy and ho" to get them to 'uy more ,anaging
Director Underhill descri'es the process as an e%ercise in Ten/ analysts "atch video or time-lapsed still images
repeatedly loo#ing for clues that often emerge only in the eighth or tenth vie"ing
Video Presenters/ Several DDC officers and project directors contri'ute their ideas in the video/
Daco Underhill,
,anaging Director
$nne ,arie Luthro,
Senior $nalyst
Bar'ara !eisfelt,
Research Director
Video Content/ &he video touches on numerous issues as the )nvirosell contri'utors descri'e the types of
research they do or have done ho" these studies "ere conducted and reported to the client, and "hat they
"ant to see as the result of their involvement
Issue Video content
*n "hat scenarios is an o'servation
study superior to a communication
study for studying 'ehaviorE
Study participants remem'er and perceive
their 'ehavior differently than their actual
'ehavior &his is not a result of intentional
lying, 'ut rather an ina'ility to perceive
reality
&he environments in "hich
o'servation studies are conductedE
7ideo descri'es domestic and international
studies and their results in 'an#s, music,
grocery, and general merchandise retail
environments
13
Issue Video content
.o" )nvirosell?s studies are
conductedE
Survey, time-lapsed fill cameras, video
cameras
!hat an )nvirosell study might
impact
Cverall floor plans for retailers can 'e
affected
&raffic patterns can 'e changed 'y moving
fi%tures
$isle "idth can 'e adjusted
Display locations are modified
,erchandise can 'e move to a different
height on a shelving fi%ture
Signage can changeLin location and
content
.o" o'servation information is
presented to a client
)nvirosell uses time-involvement maps,
"here different colors on a map indicate
the duration of time spent in any one
location and arro"s indicate direction of
movement
Other So)rces o- In-or&ation%
Bumerous articles have 'een "ritten a'out research in the retail environment and )nvirosell &hese articles can 'e
found in an archive on the )nvirosell "e' site or via one of the numerous *nternet search engines
Cne article of particular interest for students might 'e/
La'ich, >enneth S$ttention Shoppers/ &his ,an is !atching JouS (ortune, Auly 12, 1222
(or retail managers interested in learning more a'out this type of research, Daco Underhill has a 'oo# on the
mar#et, )hy )e Buy: *he Science o+ Sho%%ing Simon R Schuster, 1222
/oodyear1s A2)atred Duration/ 13 minutes
#o"$When Use%
&o discuss the coordination of a series of research projects involved in any large-scale management project
&o discuss the strengths of various types of research designs to ans"er the various management and research
@uestions
&o discuss the differences in sample design in researching the t"o different relevant populations of interest/
customers and $@uatred dealers
&o discuss different "ays to gain competitive intelligence
&o discuss the management-research @uestion hierarchy
Co&pany 'ac(gro)nd%
-oodyear &ire and Ru''er Co "as esta'lished in 1<2< in $#ron, Chio (rom its start manufacturing 'icycle and
carriage tires, -oodyear has 'ecome on of the "orld?s largest corporations -oodyear operates in the US and 9=
other countries, "ith more than 8<,=== investors and 1=:,=== associates !ith more than U19 Billion in 1222 sales,
their mission for the ne" millennium is to 'e the 'est tire and ru''er company in the "orld and the uncontested
leader in innovation *n 1229, the $@uatred tire, "inner of more than a doFen a"ards, including Aapan?s prestigious
1:
S-ood Droduct Design $"ard,S reached t"o million units in the United States &his revolutionary tire pumps a"ay
over t"o gallons of "ater per second as you drive at high"ay speeds $nd a ne" tread ru''er compound provides
road-hugging traction and e%tends the treadlife By 1223, the highly popular $@uatred tire line had e%panded "ith
the introduction of a ne" a@uachannel tire, the !rangler $@uatred for light truc#s and multi-purpose vehicles
Driven 'y $@uatred?s success, all-time record sales for 1223 "ere U189 'illion, "ith record income of U:;6
million By 1226, "ith sales of U198 'illion and earnings of U;11 million, -oodyear completed its 26-year history
once more in record territory (iscal 8=== sales "ere 1U133 'illion "ith earnings of U3= million5 8==1 sales "ere
U138 'illion, "ith a loss of U8=;3 million $ccording to the ,--. Annual Re%ort, N&he -oodyear $@uatred tire,
the most successful ne" product in the history of the tire industry, is a prime e%ample of Va mar#et driven strategyW
!e created the "et-traction tire category and have led it for a decadeO
Co&pany UR*% """+goodyear+co&

Video Content and Disc)ssion% &his video profiles the genesis of the -oodyear $@uatred tire
Video presenters:
,arco ,olinari
7D Sales R ,ar#eting
Aohn ,ontgomery
Director of ,ar#eting Communications
Video Content:
!hat pro'lem or opportunity drove the
research for -oodyearE
-oodyear regularly trac#ed its customer
satisfaction
&he 1228 study revealed a trou'ling
development/ a commodity mentality
among tire 'uyer, most of "ho thought ?a
tire is a tire?
!hat research revealed the "et-traction
mar#et segment "ithin the tire
aftermar#etE
-oodyear does on-going consumer
trac#ing studies as part of its monitoring of
the mar#et -oodyear also did focus groups
to understand tire 'uyers needs
-oodyear "as in the midst of a consumer
study to understand the criteria tire 'uyers
use to choose tires "hen it discovered the
commodity mentality dilemma *ts results
sho"ed the follo"ing criteria/ tread life
01=4 and "et traction 0;84 "ere the most
po"erful criteria, follo"ed 'y handling
01<4, sno" traction 0164 and dry traction
064
-iven the -oodyear consumer study
findings on tire 'uying criteria, "hat
measurement strategy "as employedE
-ood year "as using a rating scale, or a
composite $ ten represented the highest
value possi'le and the num'er on the 'ar
chart "as an average of the rating of the
sample
!hat "as competition doingE -oodyear?s competitive analysis indicated
they "ere e%ecuting a high-mileage
1;
strategy 0going after the treadlife segment4
8 ne" tires "ith more than <=,=== miles
treadlife "ere a'out to 'e introduced
!hat strategy did -oodyear pursueE -oodyear decided to pursue a ?"et traction
to drive a safety response? strategy
-oodyear "anted to ?position -oodyear as
the undisputed leader in "e' traction, and
hence the perceived leader in safetyS
!hat research "as done to hone in on
this strategyE
(ocus groups
1-on-1 personal depth intervie"s
nation"ide customer surveys
!hat decisions "ere made 'ased on the
researchE
Deep a@ua-channel design
Bame/ $@uatred
Decision to mar#et to the tire aftermar#et
rather than to the automo'ile company as
an original e@uipment tire
Decision to price the tire at a 1=M premium
Decision not to discount the tire at its
introduction
!hat additional information "as
collected via customer researchE
Drice elasticity
Durchase intent
,edia ha'its
!hat information "as #no"n a'out the
dealer given the promotional program
underta#en to ma#e them part of the
$@uatred teamE
&he "ay they used point of sale 0DCS4
displays and literature
&hat persuasive selling "as used "ith
customers and that e%periencing the tire on
"et pavement "as critical to such
persuasion/ 0ride and drive events held in
<= US cities4
!hat "as the dealer structureE ;== franchised dealers
1=36 company o"ned stores
33== independent dealers
!here did -oodyear esta'lish dealer
contactE
$t the annual industry trade sho" in Las
7egas
!hat promotion decisions "ere madeE -oodyear used print and 'roadcast directed
pu'licity 0earned coverage in numerous
ne"spapers and magaFines as "ell as
&oday and -ood ,orning $merica4
-oodyear used &7 rather than magaFine
advertising, "ith the rest on ca'le or
syndicated sho"s
Launch message/ safety 'enefits of "et
traction 0achieve a"areness, stimulate
interest4
(ollo"-up message/ $@uatred "on
16
numerous a"ards 0precede from li#ing to
preference4
8
nd
(ollo"-up approach/ sho" product
demonstration 0from conviction to
purchase4
Other Disc)ssion 3)estions%
$pply the management -Research
@uestion hierarchy to the $@uatred
scenario
,anagement dilemma/ "hy does the tire
'uyer see all tires as essentially
compara'leE
,anagement @uestion/ "hat can "e do to
distinguish -oodyear tires as superiorE
!ill the tire 'uyer pay a premium for
safetyE
Research Question/ !hat is the tire 'uyer
loo#ing for in a tire and "hyE
*nvestigative @uestions/ "hat are the "ants,
fears, needs, driving ha'its, and purchase
'ehaviors of the tire user
Sampling Sample frame "ould have 'een readily
availa'le for -oodyear?s dealer net"or#5
earning participation "ould have 'een the
challenge
-iven that -oodyear tires are original
e@uipment on many ne" cars, an alliance
"ith auto manufacturers could have
generated an appropriate sample frame for
the consumer study to gage the aftermar#et
4ohn Deere and Co&pany Duration/ 18 minutes
#o"$When Use%
&o discuss environmental scanning as a critical 'usiness information component
&o discuss plausi'le sources of information as part of an environmental scanning
&o discuss management research hierarchy
&o discuss plausi'le e%ploratory research to shed light on pro'lems or opportunities identified during
environmental scanning
&o discuss sampling strategy
Co&pany 'ac(gro)nd%
Aohn Deere has a rich 1;=-year history of serving the agricultural, construction, forestry and la"n care mar#ets *t?s
emphasis on helping its customers achieve 'etter productivity, has made it possi'le to successfully operate in more
1<
than 1:= countries, in := currencies and every time Fone of the "orld During the 126=s, 12<=s, and 122=s the
company faced numerous challenges to its core 'usinesses, yet its attention to environmental scanning and staying
close to its customers permitted it to prosper "hen competitors have a'andoned "hole segments of the 'usiness for
industrial e@uipment or gone out of 'usiness altogether
Co&pany UR*% """deerecom
Video Content and Disc)ssion% &he company?s need for information is dependent on its volatile environment
&he video traces the environmental influences on the company from the early 126=s through the late 122=s &he
goal for Aohn Deere "as to dou'le its sales from the mid-122=s 'y 8===
Video presenters:
,ar# Rostvold, Senior 7ice Dresident, CR C)
Division
Video Content:
&he environmental arenas that Aohn
Deere felt it necessary to monitor
Dolitical-legal
Competitive
Cultural-social
Demographic
&rends contri'uting to strategic
planning turmoil at Aohn Deere
Dresident Aimmy Carter impose an em'argo
on sale of grain products to Soviet Union
or its allies 012624
Loss of sales to US farmers at a time
"hen they "ere highly leveraged
Dramatic increase in farm 'an#ruptcies
-overnment introduction of Dayment-in-
>ind su'sidies, "hich paid farmers to
lo"er their production 'y holding 'ac#
acreage from cultivation
Continued shift a"ay from agriculture as
an occupation
$ging of the 'a'y-'oomers and their
gro"ing interest in gardening as a ho''y
Recession in the agriculture and
construction industries in the early 122=s
$ging e@uipment 'y late 122=s
Rising farm incomes 'y late 122=s
Lo" interest rates 'y late 122=s
*ncreased acreage in cultivation 'rought
a'out 'y the 122; (arm $ct
Be" environmental regulations in late
122=s dealing "ith
*ncreasing soil erosion
)ngine e%haust emissions
12
!ater pollution 'y agricultural run-off
*ncreasing interest in and practice of
?precision farming? in the 122=s 0the use of
glo'al positioning satellite technology to
enhance grain yields 'y matching acreage
productivity to seed and fertiliFer
practices4
$ctions Aohn Deere too# in response to
its environment
)%panded into financial services 0Aohn
Deere Credit4
)ngaged in e%tensive R R D to improve
@uality
Strengthened its dealer net"or#
)ntered the la"n care industry
Became the supplier of e@uipment to the
Drofessional -olf $ssociation tournament
golf courses 0to enhance its image in this
mar#et segment4
&eamed up "ith B$SC$R, introducing the
Aohn Deere racing team, for more e%posure
Cpen its Aohn Deere .ealthcare program to
non-employees
!NSD San Diego Duration/ 1: minutes
#o"$When Use%
&o discuss research design issues
&elephone survey Random digit
dialing
Sample siFe
Sample (rame Survey length )%tracting sensitive information
Longitudinal studies Dreliminary Data
$nalysis
Reporting Results
&o discuss investigative @uestions and different response strategies feasi'le for measurement @uestions
&o discuss ho" syndicated research can 'e com'ined "ith custom research for 'etter understanding of
respondents? motivations
&o discuss ho" research information can enhance a ?product? for a company doing 'usiness "ith other
'usinesses
&o discuss university-'ased research programs
Co&pany 'ac(gro)nd%
BBC 6+92 got its start as an U.( station in 12;: *t affiliated "ith BBC in 1266 and changed its call letters to
>BSD in 12<< $ccording to its "e' site, N*n 122=, >BSD "as a"arded the )mmy for Cutstanding Be"s Station
in San Diego &he station never lost this title, and has 'een a"arded more )mmys this decade than all other stations
in San Diego com'ined Cn Bovem'er 8=, 122;, after a successful year as San Diego?s most "atched television
station, >BSD "as purchased 'y BBC Cn Aanuary 1, 1226, it 'ecame #no"n as BBC 6+92 BBC 6+92 is no"
8=
o"ned and operated 'y the television net"or# considered 'y many the "orld-leader in ne"s, entertainment and
sports programmingO *n 8==8, >BSD sees the follo"ing as its mission/ NCur efforts "ill 'e focused on
understanding and serving our community, 'enefiting the people of San Diego, attracting the largest possi'le
audience, fulfilling the needs of our advertisers and increasing the profita'ility of our stationO
7$LS, a research service of SR* 0SR* Consulting Business *ntelligence4, is Sone of the first major consumer
segmentation systems 'ased on lifestyle characteristics Consumer products and services companies throughout the
United States have used 7$LS to improve product development, product positioning, advertising effectiveness and
corporate imageS *n 12<2, SR* introduced 7$LS8, Sa ne" segmentation system that incorporates recent lifestyle
trendsS Recently introduced, -eo7$LS po"ers the 7$LS segmentation system "ith geocoded demographics
Co&pany UR*%
"""n'csandiegocom """sric-'icom
Video Content and Disc)ssion% &he video descri'es the S>Bo" San DiegoS research project, underta#en so that
advertisers purchasing time on this BBC-o"ned station "ould have a 'etter understanding of "hich programs
attracted "hich potential target audiences *t descri'es the use of the 7$Ls profiling developed 'ased on a scaling
system developed 'y SR* 0Stanford Research *nstitute4
Video presenters:
&"o >BSD anchors
Video Content:
!hy "as the >BSD project startedE &o learn more a'out the vie"ers of >BSC
programs, especially vie"ers of its a"ard-
"inning ne"s programs, so that advertising
could 'e sold more effectively
.o" "as the study doneE &elephone intervie"s "ere conducted "ith
1=== adults, :== men and :== "omen
Random Digit Dialing "as used to select
the household &he study is repeated
annually to trac# changes in attitudes and
'ehavior
$t "hat confidence level "as the study
conductedE
2:M 0BC&)/ &he video e%plains in
layman?s terms "hat the confidence level
means4
!hat type of information "as collected
from respondentsE
Darticipants "ere as#ed numerous
@uestions a'out their &7 vie"ing,
entertainment, shopping, and other
'ehaviors, as "ell as a'out their attitudes,
li#es and disli#es DoFens of investigative
@uestions are ver'aliFed in the video
0BC&)/ &he actual measurement @uestions
are on a 3-point scale of agreement4
.o" "as the information usedE 7$LS segmentation profiles "ere used to
81
help advertisers select programs on "hich
to advertise
Dr Depper advertising is used as a case $n
a"ard-"inning &7 campaign "hich
promoted peer acceptance 0Dr Depper
made a pepper out of me4 didn?t increase
sales, sales actually decreased $fter
applying 7$LS, a ne" campaign
repositioned the soft drin# for non-
conformists 0.old out for the unusual4
Lost sales "ere recaptured and ne"
customers "ere attracted
Other in-or&ation%
http%$$ """+sric5bi+co&$VA*S$pres)rey+sht&l
Students can learn more a'out 7$LS and ta#e a sample survey &he results are processed @uic#ly and the
student is assigned to one of the eight 7$LS segments !ith the results they receive lin#s to learn more a'out
the segmentation system and their particular classification, as "ell as 'ehavior and purchase patterns typical for
that 'ehavior
*e6)s SC 789 Duration/ < minutes
#o"$When Use%
&o provide an e%ample of the use of syndicated research
&o discuss the integration of @ualitative and @uantitative techni@ues
&o reveal a comple% research design "ith many phases
&o discuss ho" intercept personal intervie"s might 'e done
Co&pany 'ac(gro)nds%
Tea& One Adertising% &eam Cne $dvertising is a full-service agency, including comprehensive relationship
mar#eting, event mar#eting+promotions, and interactive services .ead@uartered in )l Segundo, Calif, and
a division of Saatchi R Saatchi, the agency has regional offices in Be" Jor#, Chicago and $tlanta
*e6)s% Le%us, the lu%ury vehicle division of &oyota ,otor Sales, US$, *nc, mar#ets and sells lu%ury cars and
sport utility vehicles through 1<6 dealers in the United States *t is one of the fastest gro"ing lu%ury
nameplates in the industry
Company URL: """+tea&onead+co&: """+le6)s+co&
&his video case follo"s the research used to develop the ne"est Le%us, the SC 39=, its hardtop converti'le (rom
auto sho" intervie"s to Qual-Quant clinics and positioning analysis, students "ill learn a'out ho" &eam Cne
$dvertising, Le%usHs US agency, used research to position this latest entry into the cro"ded sport coupe category
&his research "on &eam Cne and Le%us the 8==8 David Cgilvy Research $"ard, Dura'les Category
Video Presenters//
Unspecified )%ecutive at the auto sho"
88
Video Content
!hat role did the Detroit $uto
Sho" play in the research
*t "as the first o'servation study of the
reaction of sho" attendees to the prototype
SC39=Hs design
Site of intercept personal intervie"s, getting
reactions to the car
!hat motivates people to 'uy cars
and ho" did &oyota discover this
&oyotaHs Consolidated Dynamic Study CDS4
revealed that t"o primary factors influence
purchase/ Rational 0right4 reasons and
)motional 0real4 reasons Research revealed
that Le%us did "ell on the rational reasons
'ut not the emotional ones Le%us SC 39=
"as specifically developed to 'e the
emotional flagship for the Le%us 'rand
repositioning
!hat do the motivators affectE &oyotaHs CDS revealed four #ey dynamics/
'rand dominance, model leadership, user
needs and "ants, and segment imagery
!hat cars "ere primary competitors
for the lu%ury coupe mar#et
Corvette 0leader4, Aaguar I>), ,ercedes and
Dorsche
.o" did Le%us use syndicated
researchE
$llison-(ischer *nternational does several
syndicated studies for the automo'ile
industry
$utomotive *ntensions R Durchases
Study 0@uarterly, trac#s demand, lin#s
'rand e@uity to shopping and purchase
'ehavior4
$utomotive Shopping Study 0records
internet and dealer shopping activity
and ho" retail process interacts "ith
demand and sales performance5 reveals
the 'ehavioral 'asis for automotive
mar#et segments
$dvanced $utomotive (eatures Study
reveals purchase interest of auto
features among ne" vehicle intenders5
trac#s interest in e%isting options5
evaluates ne" features R technologies
RL Dol# measures trends in the lu%ury and
lu%ury coupe segment
.o" did &oyota use @ualitative
researchE
&hey invited 1:3 people to Dallas to
participate in several @ualitative e%ercises,
including
focus groups 0done 'y -rieco Research
-roup4Lto descri'e the typical driver in
terms of financial security, affluence,
professional success, and status
89
consciousness
image sorts 0done 'y &hompson Consulting4
Lto capture references that people had
difficulty putting into "ords 'ut that "ould
influence the positioning related to the use of
D)S*R)
.o" "as the advertising that "as
ultimately created tested 'efore it
"as airedE
Diagnostic Research tested the ads via
Nclutter reelO methodology Le%us ad "as
'uried in the middle position of other product
ads and the audience dial tested their interest
in the ad $lso, intervie"s "ere done "ith
participants
Car "as seen to 'e se%y and seductive,
alluring, sophisticated, and distinctively
styled
!hat did post-advertising trac#ing
studies revealE
&hat the car "as distinctive loo#ing, sporty,
lu%urious, had e%cellent acceleration and
handling
Did the "e' play a role in the
researchE
Jes, they trac#ed visitors to the &oyota and
Le%us "e' sites over several months
7isits increased :;M over the month
immediately 'efore the advertising
,ore than 9==,=== visitors to the SC 39=
"e' site in several months after the ad
campaign
!as Sales trac#ing included in the
researchE
Jes, sales met or e%ceeded the monthly goal
in each of the seven months follo"ing the
campaign
Additional In-or&ation%
$t time of press, the Le%us commercial campaign that resulted from this research "as unavaila'le due to a pending
la" suit Dlease "atch the Business Research Methods "e' site5 "hen this campaign 'ecomes availa'le "e "ill
ma#e it availa'le there
O)tboard ;arine Corporation Duration/ 18 minutes
#o"$When Use%
&o discuss data mining, secondary data
&o discuss research design and sampling design
&o discuss ho" the environment of research affects its design 0industrial vs consumer goods4
Co&pany 'ac(gro)nd%
&he three Aohnson 'rothers 'egan 'uilding this "orld class outdoor recreational products company "ith the
development of a t"o-cycle in'oard marine engine in 12=9 ,ean"hile Cle )vinrude of !isconsin "as inventing
the first successful vertical-cran#shaft out'oard motor &hese t"o technology innovators "ould eventually merge to
83
'ecome Cut'oard ,arine and ,anufacturing Company in 129;, then shorten its name to Cut'oard ,arine
Corporation in 12:;
SCut'oard ,arine Corporation 0!au#egan, *L4 is a leading manufacturer and mar#eter of internationally-#no"n
'oat 'rands, including Chris-Craft, (our !inns, Seas"irl, Aavelin, Stratos, Lo"e, .ydra-Sports, and Drincecraft5
marine accessories and marine engines, under the 'rand names of Aohnson and )vinrude5 and (*C.& Ram *njection
X the "orldHs premier lo"-emission t"o-stro#e out'oard engine technologyS
1
&he company?s history is rich "ith
a"ards for its innovations $ccording to Soundings &rade Cnly, S&he need to serve t"o different masters -
government as "ell as consumers - has driven engine ma#ers in recent years to develop the most innovative
out'oard technology the industry has seen in a generationS
1
(or the nine months ended Sept 9=, 1222 C,CHs net
sales increased 38 percent, to U<:=8 million
1
&he recreational products division of Bom'ardier *nternational purchased the )vinrude and Aohnson assets of C,C
on ,arch 18, 8==1 Bom'ardier *nc, a diversified manufacturing and service company head@uartered in
Canada, is a N"orld leading manufacturer of 'usiness jets, regional aircraft, rail transportation e@uipment
and motoriFed recreational products *t is also a provider of financial services and asset management *n
8==8, the Corporation employed :;,=== people in 18 countries in Borth $merica, )urope and $sia, and
more than 2=M of its revenues are generated outside CanadaO
8
1
"""omc-onlinecom $ccessed Aune 8===
8
NBom'ardier (inaliFes $c@uisition of C,CHs )ngine $ssetsO Dress Release 9+13+8==1
Co&pany UR*% www.bombardier.com
Video Content and Disc)ssion% &his video discusses the evolution of a product and the importance of #eeping
competition off 'alance 'y continually Sattac#ingS your o"n 'est product and developing replacements that they
competition cannot match or cannot as cost-effectively produce &he e%ample used is the standard for 'ass
fisherman, the 1:=hp )vinrude *ntruder 1:= Bo specific research is mentioned
Video presenters:
Bo' Shaughnessy, 7D Sale and ,ar#eting
Video Content:
!hat type of data must C,C collect in
order to e%ecute its Sattac# your o"n
'est productS strategyE !hich of that
data can 'e internally data minedE
!hich must come from secondary
sourcesE !hat must 'e ne"ly
collectedE
C,C needs information a'out its
customers/
"hat they have 'een 'uying 0data
mined4
"hat competitive they consider "hen
comparing engines 0data mined or
secondary source e%ploration, or
primary data collection4
&he features and attri'utes they see# in
their pleasure crafts and engines 0customer
"ishes and e%pectations need primary
data--video indicates these are al"ays
changing4
C,C needs information a'out leading-
8:
edge technology affecting speed,
performance, and other attri'utes 0'oth
secondary data searches and data mining
their o"n product development logs4
C,C needs information a'out competitors?
current products and competitive
intelligence a'out product development
0com'ination of secondary data searching
and primary data via reverse engineering of
competitors products4
*nformation a'out "hat competitors are
advertising 0secondary data searching4
Build the management-research
@uestion hierarchy
management dilemma 1:= hp 'ass-fishing motor is nearing the
end of its life cycle5 it is losing mar#et
share
management @uestion 1 !hat should replace the current 1:=hpE
8 !hat can 'e done to e%tend the life of the
current 1:= hp motorE
9 !hat can 'e done to reduce costs and
increase gross margins associated "ith
producing the current 1:= hpE
3 !hat cele'rities "ould 'e appropriate to
endorse the ne" 1:= hp motorE
research @uestion 014
!hat features and 'enefits "ill attract
today?s 'ass fishermanE
!hat is attractive a'out the current features
of the 1:= hp that "ill attract "ater s#iers,
offshore fishersE
Jou could hypothesiFe a'out processes,
materials, and supplier relationships here
!ould >en Coo# or some other "inning
'oatman 'e appropriate for the ne" 1:=hp
,easurement and *nvestigative
@uestions
Student could 'e as#ed to offer suggestions
'ased on one of the a'ove research
@uestions
Design an appropriate design for
determining customer preferences and
e%pectations
7ideo features trade sho"s5 this
environment "ould allo" C,C to cost-
effectively reach 'oatman and+or dealers
0t"o plausi'le relevant populations for
research4
*nformation needed is motivational so
communication is necessary at some level
.o" does the environment and industry
affect research designE
&his is a technology driven industry, so
product life is relatively short, research
design must ma#e choices so that
8;
information is collected and shared
@uic#ly
Dealers are mentioned as important
Research may 'e done more @uic#ly and at
a more detailed level if sample respondent
is a dealer rather than a 'oat 'uyer
Droduct is e%pensive, 'ut 'oatmen have
repeatedly 'een "illing to pay for state-of-
the-art &hese characteristics may indicate
that C,C could communicate "ith its
relevant population in a high-tech
environment/ computer administered or
!e' surveying should 'e e%plored
Design must not reveal C,C?s plans to its
competitors as product life is so short5 this
might lead to an in-house managed
research process vs outsourcing to a
research firm
Additional in-or&ation% """soundingstradeonlycom
<ebble 'each Co+ Duration/ 11 minutes
#o"$When Use%
&o discuss types of research needed "ithin an organiFation?s strategic planning
&o discuss types of research needed to 'enchmar# the achievement of the organiFation?s vision
&o discuss various issues involved "ith research design
&o discuss sampling issues, including special pro'lems sampling the very rich
&o discuss the role that employee research could play at De''le Beach Resorts in its achievement of its seven
core values
Co&pany 'ac(gro)nd%
Samuel ,orse, "ho ac@uired the e%tensive real estate in the ,onterey Deninsula once held 'y Dacific *mprovement
Co "hich he managed, founded De''le Beach De''le Beach Company, a :9== acre comple% in ,onterey 0C$4,
offers three lodging options 0Casa Dalmero opened in Septem'er 1222, *nn at Spanish Bay opened in 12<2 and the
Lodge at De''le Beach opened in 12124, four golf courses, plus a ne" :-hole ?golf lin#s?, < restaurants, and an
ocean-side Beach R &ennis Clu' &he tennis clu'Hs ne"ly remodeled state-of-the-art tennis facility offers ten hard
surface and t"o clay courts and an e%tensive pro shop &he professional staff is availa'le to arrange golf or tennis
lessons and clinics for players of any cali'er &he Spa at De''le Beach, opened Decem'er 1222, is a Slu%urious
sanctuary designed to help guests rela%, restore and rejuvenateS De''le Beach has repeatedly "on a"ards as
$merican?s 'est travel resort and is the host to the $&R& Dro-$mateur championship, the 1222 $mateur
championship, and the US Cpen in 8=== *n Aanuary of 1222 &he *nn at Spanish Bay "as granted the coveted
,o'il (ive-Star a"ard from the 1222 ,o'il &ravel -uide De''le Beach achieves its @uality status 'y focusing on
seven core values De''le Beach Company, "hich employs 1;== people, targets the upscale golf enthusiast
Co&pany UR*% """pe''le'eachcom
86
De''le Beach achieves its "orld-class standing 'y focusing on seven core values &he company is also
land-loc#ed so it must develop ever-creative "ays to ma#e the facilities it has more intensively profit-generating
!hile research methodology is descri'ed only superficially, the video can 'e used to discuss the "ide range of
research that a corporation might need to maintain an a"ard-"inning reputation
Video Presenters/
Richard (o"ler, Ban@uet $sst ,gr *nn at Spanish Bay
Several unnamed De''le Beach employees contri'ute to this video
Issue Video Content
!hat are the core values at De''le
BeachE
Service/ Scustomers deserve our 'est effortS
&eam"or#
Constant *mprovement
(ulfilled )mployees
Being a -ood Beigh'or
Caring for the )nvironment
Building (inancial 7alue
!hat 'usiness practices are employed
to e%ecute its core valuesE
Service R &eam"or#
,o"s golf courses at da"n to avoid
interrupting play
&eam"or# and (ulfilled )mployees/
surveys employees
.olds to"n meetings "ith
employees
)%tends golf privileges to
employees
RecogniFes employees "ith
service a"ards
Being a good neigh'or
Support employees volunteer
efforts at ;3 charities
Donates land for community
purposes
(inances the De''le Beach
(oundation
Build (inancial 7alue
)ncourages local patronage of
its restaurants
8
nd
largest employer,
contri'uting U<= million through
employee "ages and 'ringing in U3:=
million to community through tourist
e%penditures
8<
Issue Video Content
Developed the De''le Beach
'rand into a variety of merchandise
offerings
Starb)c(s= 'an( One= and Visa *a)nch the Duration/ 1= minutes
Starb)c(s Card D)etto Visa
#o"$When Use%
&o discuss multi-stage research designs
&o discuss the integration of @ualitative and @uantitative research
&o discuss the use of !e' surveys
&o discuss focus groups as an e%ploratory tool to refine a su'se@uent @uantitative study
&o have the students generate measurement @uestions from the e%tensive list of investigative @uestions
presented
&he Star'uc#s story is also featured in a "ritten case on the CD that provides additional information, and is
featured in a snapshot in Chapter 16
Co&pany 'ac(gro)nds%
Starb)c(s% Star'uc#s Coffee Company is the leading retailer, roaster and 'rand of specialty coffee in the "orld,
"ith more than <,6== retail locations in Borth $merica, Latin $merica, )urope, the ,iddle )ast and the
Dacific Rim *n addition to its retail operations, the Company produces and sells 'ottled (rappuccinoY
coffee drin#s, Star'uc#s Dou'leShotZ coffee drin#, and a line of superpremium ice creams through its
joint venture partnerships
'an( One% Ban# Cne is part of the ne" AD,organ Chase created on Auly 1, 8==3 upon completion of the holding
company merger 'et"een AD,organ Chase R Co and Ban# Cne Corporation &he mergers of the
'ro#er+dealer, credit card companies, and lead 'an#s "ill 'e completed over the ne%t nine months &he
Ban# Cne 'rand continues to 'e used in the mar#etplace *t is the num'er one issuer of 7isa cards in the
"orld AD,organ Chase has assets of appro%imately U11 trillion and operations in more than := countries
Visa% 7isa is the "orld?s leading payment 'rand and largest payment system, ena'ling 'an#s to provide their
consumer and 'usiness customers "ith a "ide variety of payment alternatives Cardholders in more than
1:= countries carry more than 1 'illion 7isa-'randed cards, accepted at millions of locations "orld"ide
!ithin the United States, nearly 13,=== financial institutions issue 92; million 7isa cards, accounting for
more than U1 trillion in annual transaction volume
Company URLs: """+starb)c(s+co&: """+ban(one+co&: """+isa+co&
Video Content%
*n the very mature financial services industry, it is rare for a ne" financial product to garner much attention, let
alone 'e named one of Business)eekHs outstanding products of the year But "hat started as a "ay for Star'uc#s to
add value to its e%isting Star'uc#s Card program developed into a financial product that many other institutions are
interested in e%ploring &his case reveals the research that "as done to develop this ne" payment option for
Star'uc#s customers
Video Presenters//
Bone
Video Content
82
!hat research led Star'uc#s to
choose 7isaE
Star'uc#s contacted several of financial
institutions and credit card companies to
determine their interest
0Not in the ideo% Before the selection "as
made, they visited the 7isa card operations of
Ban# Cne to determine if their operations
"ere as customer focused as Star'uc#Hs o"n
operations4
!hat investigative @uestions drove
the research once the partners "ere
chosenE
!ould customers 'e confused 'y the dual
function of the card
!ould they feel the Duetto card "as
valua'leE
0(or the loyalty aspect of the card4 !hat
,onthly re"ards "ould have the greatest
appealE
!ould instant re"ards from the card prompt
customers to use the Duetto 7isa rather than
another credit card that also offered re"ards
0airlines, hotels, etc4
!hat is the 'est "ay to deliver the re"ardsE
!hat is the difference 'et"een a
stored-value card and the Duetto
cardE
$ stored-value cardLli#e a de'it cardL
"hile the Duetto had 'oth the stored-value
feature and the credit card feature 08
functions on the same card4
.o" did Star'uc#s use @ualitative
researchE
&hey used four focus groups comprised of
current Star'uc#s customers5 t"o groups of
those "ho had used the stored-value
Star'uc#s card and t"o groups of those "ho
had not used the stored-value card
&he groups "ere used to determine ho" to
e%plain the dual functionality in the
@uantitative study, to determine the appeal of
different monthly a"ards 'eing considered
and ho" to deliver them5 to determine if past
negative credit-card e%perience "ould carry
over to the Star'uc#s Duetto card5 and to
determine if the paring of the card "ith the
Star'uc#s foundation "ould 'e an important
feature of the card
.o" many @uantitative studies "ere
done 'efore the Duetto "as
introduced
&"o/ a product functionality study and a
product optimiFation study5 'oth "ere done
online
!hy do you thin# these @uantitative
studies "ere done onlineE
0not in the video/ speed, easy availa'ility of
data'ase of customer e-mails5 in-store
intercepts "ere considered 'ut Star'uc#s and
Ban# Cne "anted to #no" the differences in
geographic patterns4
.o" "ere @uantitative studies used Droduct (unctionality Study, among current
9=
users+non users of the Star'uc#s stored value
card, "as used to determine
if the dual function "as understood
the impact on the 'rand
the li#elihood of future purchases if person
o"ned the Duetto 7isa
'arriers to using the Duetto 7isa
perceptions of the different card attri'utes
Droduct CptimiFation Study, among current
users+non users of the Star'uc#s stored value
card, "as used to
(orecast sign-ups for the Duetto 7isa
Determine "hich Duetto card attri'utes
"ere most important
Determine impact of the different card
features
*dentify Ksurprise and delightH 'enefits
Develop a profile of the li#ely Duetto 7isa
applicant
!ho "as the launch announcement
used for research purposesE
$nnouncement contained information a'out
ho" interested customers could get early e-
mail notification of the card
&ens of thousands of customers re@uested
early notification through the Star'uc#s "e'
site
!hat research follo"ed the launch
of the Duetto 7isa
,ajor Brand &rac#ing study "as done online
to determine a"areness of the card,
understand ho" the cardHs 'enefits "ere
understood, determine intension to apply as
"ell as those "ho had already applied, and
"hy or "hy not
Quarterly 'rand trac#ing studies evaluate the
perception of the 'rand, num'er of cards
issued, percent of card holders "ho use the
card as their primary card, and the dollar
value of purchases made "ith the card
Ban# Cne also trac#s
Ratio of approved accounts to applications
,ar#et cost of account ac@uisition
Bum'er of accounts "ith actual purchases
&rends in monthly activity
Datterns of spending on an account over
time
$ Brand Loyalty Study measures "ho is
using the card, using one or 'oth functions,
and using the Duetto 7isa to activate the auto
reload feature of the stored-value function of
the card
91
!as the product introduction
successfulE
Jes, all partners said the card "as meeting
their e%pectations
Special Content to ;ention
Star'uc#s Card Duetto
&,
"as selected 'y Business)eek as one of the outstanding products of 8==95 it "as
the only financial product to receive that recognition
&he launch mar#eting program 'ased on the research that is descri'ed in this video "on a 8==9 Silver
S$BR) a"ard 0Silver S$BR)s are a"arded for the 'est programs in specific industry sectors Drograms can
involve "or# in any practice area, including mar#eting communications, pu'lic affairs, crisis or issues
management, investor relations, or employee communications, for an organiFation in the relevant industry4
&he Star'uc#s Card Duetto
&,
7isa "as named Card&ra#Hs &op Card of 8==9
98
U+S+T+A+% Co&e O)t S"inging Duration/ 11 minutes
#o"$When Use%
&o discuss telephone surveys
&o discuss t"o-stage surveys
&o discuss post-advertising testing
&o discuss ethnographic intervie"ing
&o discuss sample siFe and sampling issues
99
&his case also has a "ritten counterpart that comes complete "ith survey instruments
Co&pany 'ac(gro)nd%
The Taylor Research and Cons)lting /ro)p% $ privately-held company esta'lished in 12<6 'y Scott &aylor, it
provides @ualitative and @uantitative mar#et and opinion research and consulting services to 'usinesses in a
variety of industries
United States Tennis Association% )sta'lished in 1<<1, the US&$ is the national governing 'ody for the sport of
tennis and the recogniFed leader in promoting and developing the gro"th of tennis on every level in the
United States - from local communities to the cro"n je"el of the professional game, the US Cpen
Vigilante% $n ur'an advertising and mar#eting agency esta'lished in 1226, 7igilante crafts mar#eting
communication programs relevant to the consumers of ur'an culture using 'oth traditional and non-
traditional channels including advertising, sales promotion, events, street and entertainment mar#eting,
media planning, strategic planning and research
Co&pany UR*s% """+)sta+co&: """+igilantenyc+co&: """+thetaylorgro)p+co&
Video Content and Discussion:
&he United States &ennis $ssociation funded one of the most aggressive surveys ever underta#en a'out a
single sport in order to revitaliFe tennis in the minds of consumers &he survey results "ere supplemented "ith
@ualitative research 'y 7igilante, a specialist in ur'an communication campaigns !hat resulted "as a full-scale
mar#eting initiative involving the esta'lishment of &ennis !elcome Centers and the Come /ut S&inging
advertising, merchandising, and pu'lic relations campaigns &his case reveals the research and ho" the mar#eting
initiative developed from it
Video presenters:
none
Video Content:
!hat is the 'asic research designE
&"o rounds of phone surveys "ere follo"ed
'y 9=-3= street ethnography *D*s, and post
advertising 'ehavior trac#ing, "hich included
7isits to tennis"elcomecentercom
*n@uiries at tennis facilities
Lesson sign-ups at tennis facilities
Sales of rac#ets, 'alls, and apparel
!hy did the study include 8:,===[
households
US&$ needed a 'enchmar# study that
provided data in each of its 16 sections and
that detailed information 'ased on
ethnicity, age,
!hat "as the underlying management
dilemma driving the researchE
&ennis participation, "hile flat, suffered
from the lea#y-'uc#et syndrome/ : million
young players started each year, 'ut :
million young adult players lapsed each
year
93
&ennis is vie"ed as an elitist sport of
"ealthy Caucasian country-clu''ers
!hat "as the research @uestionE .o" can "e get people to see tennis as the
"ell-rounded sport it is, one offering
fitness, socialiFation and competition that
appeals to all ethnic groupsE
!hat "ere the major investigative
@uestions driving the :-minute random-
dialed phone surveyE
!ho plays tennisL'y demographic
segmentE
!hy do people playE !hy donHt they playE
!ho plays+doesnHt play tennis in the
household 0among people over ; years of
age4E
!hat types of measurement @uestions
"ere used in the shorter phone surveyE
Dretested @uestions used on earlier surveys
Cpen-ended @uestions to get peopleHs
perceptions
!hat "ere the various cells defined for
the longer 1=-1: minute phone survey
among 8=98 participantsE
&hree groups "ere defined/
Current players
(ormer players
Bever played
!hat types of measurement @uestions
"ere used in the longer phone surveyE
Dretested @uestions for comparison to
earlier surveys
Closed @uestionsLfor greater ease in
analysis
!hat "ere some of the findingsE ,inority participation "as gro"ing
:M of current players are $frican-
$merican5 yet 1=M of ne" players are
1;M of current players are .ispanic-
$merican5 yet 88M of ne" players are
Una"are of &ennis facilities in their area
&ennis is not perceived as a good fit
N&ennis is not for meO
Culturally, ethnically, and financially
people didnHt thin# tennis fit them
7igilante "as charged "ith coming up
"ith an ad campaign that could ma#e
tennis appear Ncool, relevant, cutting
edgeO and accessi'le to former players
!hat research did they use to guide
campaign developmentE
&heir Street Spies methodology used street
ethnography 09=-3= *D*s4
7ideo-taped intervie"s done as
intercepts
*ntervie"ers matched participants in
age, ethnicity and lifestyle
Did the findings confirm or refute the
@uantitative studyE
Confirmed
N* canHt afford itO
N*tHs too e%pensiveO
N*Hd rather play 'as#et'all or soccer or
video gamesO
NDonHt have a clue a'out ho" to startO
9:
)thnography revealed the edginess that
tennis offered to satisfied players that "as
the genesis of the NCome Cut S"ingingO
tagline and Ncampaign rallying cryO
)thnography revealed the characteristics
used for cele'rity selection criteria/ Nno
holds 'arredO attitude, physically fit
!hat research "ent into selection of
7igilante as the ad agencyE
*dentified three agencies that had a good
trac# record "ith sport related positioning
ad campaigns
7igilante "as one identified and they had a
reputation for ethnically-'ased campaigns
.o" "as the @uantitative research used
to guide the campaignE
US&$ provided 7igilante "ith all the
results of the e%tensive telephone survey
Survey revealed the four primary target
audiences for the campaign/ seniors,
Caucasian men R "omen, ethnic players,
youth players
Survey revealed the #ey communication
messages for the campaign 0fitness,
socialiFation, competition4
!hy "asnHt ad testing done 'efore the
print advertising campaign "as used
0Bot in the video4 Budget "as too small to
do 'oth the @uantitative study the section
leaders "anted and e%tensive pre-campaign
research
Vol(s"agen1s 'eetle Duration/ 1; minutes
#o"$When Use%
&o discuss ho" the ?pro'lems? driving 'usiness change over time and ho" failure to recogniFe the change can
'lind-side a 'usiness
&o discuss plausi'le e%ploratory research 7ol#s"agen could have done to prevent disenfranchising its
customer group in the mid-6=s
&o discuss ho" @ualitative research is conducted
&o discuss ho" @ualitative research supports manufacturing and mar#eting decisions
&o discuss the advantages and disadvantages of trade sho"s and other special events as research venues
Co&pany 'ac(gro)nd%
Cut of the ru''le of !orld !ar **-torn )urope, the Beetle "as originally introduced in the United States in 1232
(erdinand Dorsche designed the original 7ol#s"agen Beetle "hile *van .urst masterminded production &he
Beetle 'ecame a sym'ol of the 12;=?s re'elliousness, 'ut lost the love of a generation "hen it stressed engineering
over style and lo"-cost operation, "hat the 'a'y-'oomers considered crucial in the 126=s By 1263, the Beetle had
lost ground to its aggressive Aapanese rivals for the value segment of the US automo'ile mar#et $nd 'y 1262 you
could no longer 'uy a Bug in the States But the Beetle still had a franchise in the US, as one spo#esperson
comments/ S!here ever it is introduced, the ne" Beetle garners the same reaction/ people smileS *n 122< "hen the
Beetle "as reintroduced in the United States, it surpassed all sales estimates &he second year it dou'led its sales
9;
.istorically, the Beetle is the "orld?s 'est selling car, having sold in more countries than any other automo'ile,
more than 81 million in its lifetime 8==8 model year "as the fifth for the Be"Beetle *n Decem'er 8==8
7ol#s"agen introduced the first 1<= horsepo"er version of the 1< & called the Be" Beetle &ur'o S
Co&pany UR*% """v"com
Video Content and Disc)ssion% &he video profiles the history of the original Beetle in the US mar#et from its
introduction in 1232 to its demise in 1262, then follo"s the initial t"o years of the B)! Beetle?s re'irth 122<-22
*t is ideal for discussing @ualitative research, as the advertising profiled is dependent on an in-depth understanding
of the needs of today?s small-car segment Research is alluded to, 'ut not descri'ed
Video presenters:
Aac# Dol'y, &7 $nchorman R
Barrator
,aria Leonhauser, spo#esperson for
7!
Unspecified ,an-on-the-street
Video Content:
!hat management dilemmas should
have led 7ol#s"agen to research its
US mar#etE
)mphasis on engineering, not style, "hen
mar#et "as interested in more ?flash? or
piFFaFF
)ngineering "as state-of-the-art 'ut
e%terior styling stayed relatively constant5
mar#et couldn?t value "hat it didn?t #no"
Cil em'argo of the early 126=s forced
gasoline prices up and generated long lines
By necessity, cars "ith e%ceptional gas
mileage "ere favored over superior
performance vehicles
Aapanese entered the mar#et "ith more
stylish and more cost efficient cars
*s the reveal of the design of a ne" 0or
re'orn4 car the first research that
7ol#s"agen "as li#ely to have doneE
!hat type of research "ould 'e done at
such an eventE
*s the attendee at such a sho" li#ely to
'e mem'ers of the relevant sample
populationE
&he 0conce%t .0, "hat a 122=s Beetle "ould
loo#, li#e earned enthusiastic revie"s at
auto sho"s around the "orld
Beetle arrived "ith due pomp and
circumstance, under spotlights, "ith the
"orld?s journalists snapping and filming the
arrival
,any concept cars are revealed at the
major "orld auto sho"s
!hat management
dilemma+opportunity led to the
reintroduction of the Beetle in the
122=sE
Aapanese cars? prices had increased 'eyond
the value-car segment?s a'ility to 'uy
)uropean styling "as once again gaining
favor around the "orld
!hat @ualitative research could have
revealed the major themes used in the
Cne enthusiastic 'uyer relates the nostalgia
that the car evo#es, 'ut also claims that
96
advertising that re-introduced the
BeetleE
everyone can see themselves in the Beetle
'ecause of its great engineering and great
?curves?
$ds stress the
po"er of the engineering--'ecause
people thought the original Beetle "as
under-po"ered 0Less flo"er ,ore
po"er4
Color 0!hat color do you dream inE4
&echnology 0Reverse engineered from
U(Cs4
$ttitude of Bostalgia 0)ngine?s in front,
'ut the heart?s in the same place4
Other in-or&ation -ro& VW <ress%
$pril =3, 8==1
7CL>S!$-)B *S $!$RD)D &!C B)S& C$R D*C>S (RC, ,CB)J ,$-$T*B)
NLthe 7ol#s"agen Be" BeetleLearned a five-star safety rating, ma#ing it the only car in its class to achieve these
outstanding results !ith high safety standards, a uni@ue style and e%cellent driving capa'ilities, it is not a surprise
that the Be" Beetle "as a"arded ,oneyHs Best Dic# in the small car category
$fter ma#ing its de'ut in 122<, the Be" Beetle has proven itself as much more than a se@uel to its legendary
namesa#e *t has "on several distinguished automotive a"ards, including NBorth $merican Car of the Jear,O as
selected 'y the continentHs top automo'ile "riters and ,otor &rendHs *mport Car of the year &he Be" Beetle has
esta'lished itself as a totally modern creation, 'oth functional and fun to drive
,oney ,agaFine descri'es the Be" Beetle is descri'ed as, NL pure passion on "heels L it offers more than just
loo#s/ &he Be" Beetle is a terrific small carO
&uesday, Bovem'er =8, 1222
VOLKSWAGEN SALES UP 65.4 PERCENT-BEST OCTOBER IN 25 YEARS -BEST 1ETTA AND
PASSAT OCTOBER EVER-NEW BEETLE UP 21 PERCENT
7ol#s"agenHs popular Be" Beetle again posted healthy sales gro"th *n Ccto'er, 7ol#s"agen sold 6,92= Be"
Beetles &his is a 81 percent increase over last yearHs sales of ;,1=2 So far in 1222, Be" Beetles sales are ;2,;81,
an increase of ;:8 percent over the same period in 122< "hen sales "ere 38,13;
!ednesday, Aanuary =;, 1222
AUTOMOBILE MAGAZINE ANNOUNCES ITS 1999 AUTOMOBILE OF THE YEAR, THE
VOLKSWAGEN NEW BEETLE, AT THE NORTH AMERICAN INTERNATIONAL AUTO SHOW
$utomo'ile ,agaFineHs )ditor and Du'lication Director David ) Davis, Ar stated/ S*t gives us great pleasure to
recogniFe the Be" Beetle for its character, its @uality, its value, its impact on the glo'al automotive industry, and
the sheer joy it 'rings to anyone "ho drives it, sits in it, or sees it on the road *t is the most important automo'ile to
de'ut in the 1222 model year and our #ind of carGS
9<
&uesday, Aanuary =:, 1222
VOLKSWAGEN RECORDS BEST SALES SINCE 1981-BEST DECEMBER IN 17 YEARS
N*n 122<, 7ol#s"agen sold 812,;62 ne" cars in the US, up :29 percent over 1226 *t "as the 'est 7ol#s"agen
total in the US since 12<1 "hen the -erman automa#er sold 86<,:19O
&uesday, Ccto'er 18, 1222
&.) 8=== 7CL>S!$-)B B))&L)
Since its introduction, the Be" Beetle has garnered numerous distinguished automotive a"ards, including NBorth
$merican Car of the Jear,O as selected 'y the continentHs top automo'ile "riters, $utomo'ile ,agaFineHs
$utomo'ile of the Jear, ,otor &rend ,agaFineHs 1222 *mport Car of the Jear, AD Do"er and $ssociatesH ,ost
$ppealing Small Car, )uropean Car ,agaFineHs -rand Dri% 122< "inner, Consumers DigestHs Best Buy,
,otor!ee#Hs DriversH Choice $"ard for Best of the Jear, &ime ,agaFineHs &he Best of 122< Design, Business
!ee#Hs Best Be" Droducts, $frican $merican on !heels Ur'an Car of the Jear, Dopular ScienceHs Best of !hatHs
Be" for 122<, and many others
Aune <, 122<
VW'S NEW LOVE BUG STIRS BUYER PASSION: SUPPLIES SHORT, CONSUMERS PAY
PREMIUMS, AND LOCAL CAR DEALERS ARE RIDING HIGH, Crain?s Chicago Business,
7ol#s"agen of $merica *nc 0$u'urn .ills, ,*4 has shipped just ;=8 ne" Beetles to authoriFed dealers in Chicago
since rolling out its reincarnation of the 12;=s classic in late ,arch Customers pay up to U1=,=== more than the
model?s U1:,8== list price for the hottest color/ yello" $rea 7! sho"rooms are dra"ing dou'le the usual num'er
of customers -- and seeing total sales soar 3=M to :=M ,ean"hile, the -erman automa#er is overhauling other
product lines, positioning its dealers to regain mar#et share from their Aapanese competitors for the first time in a
generation Customers? ardor hasn?t 'een dampened 'y the -erman automa#er?s ,ay recall of 1=,1== Beetles to
correct a "iring pro'lem that could cause engine fires 7ol#s"agen is no" poised to recapture some of the
customer 'ase it lost to Aapanese 'rands after it pulled the plug on the original Bug in 1262 7! has redesigned the
Dassat and this fall "ill unveil an overhauled -olf compact that is already garnering high praise in )urope Since
rolling out the Beetle nationally in $pril, total US sales for 7ol#s"agen are up 38M over compara'le 1226 totals
92
Written Cases
Case% A /E; o- a St)dy
Abstract/ &he -lo'al )ntrepreneurship ,onitor )ntrepreneurial $ssessment, a joint project of &he
>auffman Center for )ntrepreneurial Leadership at Ba'son College and &he London Business School,
has underta#en a long-term, large-scale project to prove the causal lin#s 'et"een a government?s
economic policies and initiatives, the resulting entrepreneurial activity and su'se@uent economic
gro"th &his case descri'es multiple-stage research, including thousands of intervie"s in several
countries 'y esta'lished research firms
&his case deals "ith the concept of causal studies vs descriptive studies and "hat needs to 'e included in the
research design of each study type *t also deals "ith "hat constitutes control in research design5 in this conte%t it is
'est used "ith chapters 3-2 &his is also a great case to use to discuss constructs vs concepts, as )%hi'it C--),-
11 clearly has struggled "ith defining numerous constructs and multiple-measurement varia'les and, therefore,
could 'e used to further e%plore te%t )%hi'it 8-9 &he case also mentions the use of standardiFed data5 in this
conte%t you could use the case to e%plore ho" SstandardiFedS data from different countries really is and "here the
student see#s such country-specific data
1 Using the -), Conceptual ,odel, students should first identify that the de%endent varia'le the study purports
to measure is the construct of economic gro&th through -DD and jo's But they might also note that the
construct of 'usiness dynamics is also a dependent varia'le of interest, as it contains ne" firm+jo' creation,
firm+jo' gro"th, firm+jo' dissolution, and firm+jo' shrin#age
&he independent varia'les in the study are numerous and contained "ithin the -), Conceptual ,odel as the
constructs of general national +rame&ork conditions, entre%reneurial o%%ortunities, entre%reneurial
+rame&ork conditions, and entre%reneurial ca%acity )ach of these constructs contains numerous other
concepts and constructs .ere is an e%cellent opportunity to discuss the nature of constructs and the importance
of 'rea#ing do"n such comple% entities in terms of more concrete and truly measura'le elements as is done in
)%hi'it 8-9
8 ,any of the varia'les leading to the dependent varia'le could 'e seen as e%traneous, intervening or moderating,
as easily as they can 'e identified as independent )%traneous varia'les are descri'ed in Chapter 8 as almost
infinite in num'er and treated Sas independent or moderating varia'lesS and Sassumed or e%cluded from the
studyS &he -), authors too# great care in trac#ing as many of these varia'les as possi'le, and chose at the
outset to use most as independent varia'les having some, hopefully measura'le, influence of the chosen
dependent varia'le0s4 ,any of the attitudinal varia'les in the model are treated as moderating varia'les--a
class of Sindependent varia'les 'elieved to have a significant contri'utory or contingent effect on the *7-D7
relationshipS
&he 'usiness start-up rate "as found to have a high correlation "ith people?s perceived opportunities 0=<<4 and
"ith the -), Cpportunity Derception *nde% 0=624--"hich factors in perception of positive opportunity in a
person?s country to start a 'usiness, the capacity 0s#ills and motivation4 to pursue the opportunities, the level of
respect for entrepreneurial efforts 'y others in the society, and the level of resentment against those "ho do
"ell in an entrepreneurial venture4
Jou could use this @uestion to discuss factors not mentioned in the -), Conceptual ,odel that might
contri'ute to 'usiness+jo' formation and ultimately to higher -DD Cne factor that usually comes up in such a
discussion is creativity of ideas &his can generate a lively discussion a'out ho" the study could have measured
for ?creativity? Students might also mention demographic characteristics of the country, such as median age
3=
Using Bill -ates as a model, you can e%pect many students to 'elieve in the notion that entrepreneurial
ventures are generally started 'y young adults &hey might point out after you sho" the graphs 'elo" that
Aapan has a median age of almost 3= years compared to 939 for the US $lso, the percentage of the
population under the age of 1: in the US is 88M, compared "ith Aapan at only 1:M $dditionally, students
may raise the issue of economic sta'ility -iven the unprecedented economic gro"th e%perienced in the US in
the latter part of the 8=
th
century, they may "ant to use economic sta'ility as a moderating varia'le
SCURC)/ 1EM .222 34 E5ecutive Re%ort
Such varia'les need to 'e assumed, discounted, or controlled in order for causation to 'e proven "ith some
degree of certainty $ great effort has 'een e%pended in this study to achieve high levels of 'oth validity
and relia'ility &his @uestion is designed to e%hi'it a lively discussion in the conte%t of control as it is
descri'ed in Chapter 19
9 Chapter 1: and sampling concerns are the focus of this @uestion &he study has e%tracted information from
t"o different samples in the participant countries/ a survey of 1=== adults and an in-depth personal
intervie", plus a follo"-on survey, "ith 3= #ey informants
$ key in+ormant is an e%pert "ith su'stantial e%perience in each of the nine entrepreneurial frame"or#
conditions >ey informants "ere as#ed to identify the Ssingle most important critical issue facing the
entrepreneurial sector in their countryS *t "as assumed that these e%perts "ould focus on factors "ith the
highest correlations "ith 'usiness start-up rates Bational teams of intervie"ers "ere created and as#ed to
31
develop a list of such #ey informants in their country $ discussion could focus on the issue of pro'a'ility
vs nonpro'a'ility samples, and a'out the "ay that such individuals "ere chosen
&his @uestion is also suita'le for discussing ho" a national pro'a'ility study could 'e conducted in each
country, and the special considerations that "ould have to ta#e place to conduct such a study in 1=
countries "ith numerous languages, as "ell as cultural and social mores &he national study of 1=== adults
"as randomly selected in each country, 'ut no sample frame is discussed in any of the methodology
sections in the reports $ "ell-esta'lished research firm, "ith international offices in numerous countries,
dre" each sample and conducted each study Using statistical profiles on age and education for each
country, the research firm 'uilt a representative sample using random digit dialing procedures in 2 of the 1=
countries 0personal intervie"s "ere used in Aapan4
3 &his @uestion addresses research design issues &he multi-stage study first identified critical issues
affecting entrepreneurial activity &hese issues "ere dra"n from face-to-face, personal intervie"s "ith as
fe" as 3 e%perts per country Detailed intervie" records "ere compiled on each country?s intervie"s
(ollo"ing his or her intervie", each #ey informant also completed a detailed, 18-page @uestionnaire
,ultiple-item indices "ere developed from these intervie"s then used to developed the 1=-item yes+no
@uestion survey given to the sample of 1=== adult in each country Survey information "as then com'ined
"ith statistical data collected, via government and not-for-profit organiFations, in each country to develop
comparative indices for each country
Jou might as# students to discuss the value of pre-selecting e%perts to refine the focus of each
measurement @uestion, the purpose and uses of multi-stage studies, and the types of 'ias or error 'uilt into
the study 'y the multi-stage process
: &his final @uestion as#s "hether this study @ualifies as a causal study 0vs a descriptive study4 Depending
on "hen you use the case in your course, some students may 'e encouraged to use the sym'ols of
e%perimentation in Chapter 11 to descri'e this study &heir result "ill li#ely not reflect any of the standard
models Students should 'e further encouraged to address issues of relia'ility and validity, and as#ed ho"
the study stac#s up in this regard Some students may conclude that the act of calculating correlation
statistics ma#es this a causal study Cthers "ill suggest that 'uilding the -), Conceptual ,odel is a stage
of the research design preliminary to the actual causal study &hey may indicate that the model needs to 'e
tested over time 0in not only the countries included in the preliminary study 'ut in other countries not
included in these early-stage tests4 'y manipulating one or more varia'les comprising one of their indices
and measuring the net effects &his last stance is li#ely the most via'le, as -),-study designers plan
su'se@uent measures over time on each of their multiple-item indices, and simultaneous trac#ing changes
in the factors "hich comprise their model
Case% AgriCo&p
Abstract: $griComp, a supplier of computer systems for farmers, has surveyed it dealers on "hether to change
its procedure for settling "arranty claim disputes Currently local dealers handle "arranty services for
customers via local repair follo"ed 'y a reim'ursement claim to $gri Comp Denied claims follo" an internal
company appeal process Dealers have 'een complaining a'out the fairness of the appeal process and in a
recent survey "ere as#ed to respond to an alternative process, an impartial mediator &he student is as#ed to
revie" survey results and determine "hether the costly e%ternal mediator process "ould 'e "orth
implementing to #eep the dealers happy
38
&his case offers a chance for students to deal "ith the data 'efore it?s crossta'ulated Bothing very fancy is
re@uired, 'ut the students "ill need to recogniFe that a crossta'ulation is in order 0or at the very least that some
separate ta'ulations are needed4 &he dealer preferences are different for those "ho have used the e%isting appeals
process than for those "ho haven?t &he more they?ve used the process, the less they perceive a need for change *f
the data are ta'ulated in the aggregate, this trend is not apparent
1. 1ody wonders just how important the process is to the dealers? Was there widespread discontent or had
he just heard from a few malcontents at the dealers' meeting?
Jou can start "ith a @uestion li#e S.o" do the dealers feelES and follo" it up "ith SDo all of the dealers
feel that "ayES &his "ill normally 'ring out a cross ta'ulation or something li#e the series of ,*B*&$B dotplots
given 'elo" &hen you should turn the discussion to ho" 'est to summariFe or display the conclusions )ither some
sort of crossta'ulation 0using appropriate percentages instead of counts4 or plots li#e those 'elo" "ill "or# &he
main point is to 'e sure students don?t simply declare a SsignificantS lac# of independence and let it go at that &hey
should have to say something a'out "hat #ind of dependence they find, not just assert the a'sence of independence
&he more the dealers have used the e%isting appeals process, the less they agree "ith the statement that it
should 'e replaced, so it appears that Aody "as hearing from some malcontents &he cross-ta'ulation of responses
'y num'er of uses is given on the ne%t page &he corresponding chi-s@uared is <81; on 18 degrees of freedom, so
something is clearly going on Students may offer a variety of summaries of just "hat is going on, and you should
prompt them for such summaries if all they offer is chi-s@uared &he general trend is illustrated 'y such diagrams as
the dotplots given on the page follo"ing the crossta'ulation
39
Crosstabulation (count) of REP by USE
USE
REP 0 1 2 3
+------+------+------+------+
1 | 12 | 12 | 4 | 6 |34
+------+------+------+------+
2 | 6 | 2 | 1! | 12 |63
+------+------+------+------+
3 | ! | 1! | 16 | 1! |60
+------+------+------+------+
4 | 4 | " | ! | #2 |3
+------+------+------+------+
# | 1 | 12 | 12 | 3 |62
+------+------+------+------+
31 ! #! 12# 2"2
USE ($%rc%nt)
REP 0 1 2 3
+------+------+------+------+
1 | 3!& | 1#&3 | 6&" | 4&! |34 11&6'
+------+------+------+------+
2 | 1"&4 | 34&6 | 31&0 | "&6 |63 21&6'
+------+------+------+------+
3 | 2#&! | 23&1 | 2&6 | 14&4 |60 20&#'
+------+------+------+------+
4 | 12&" | 11&# | 13&! | 41&6 |3 2#&0'
+------+------+------+------+
# | 3&2 | 1#&# | 20& | 2"&6 |62 21&2'
+------+------+------+------+
31 ! #! 12# 2"2
100&0 100&0 100&0 100&0
33
(ot$lot of REP by USE
USE 0
)
) )
) ) )
) ) ) )
) ) ) ) &
1 2 3 4 #
USE 1
&
)
)
)
)
) )
) )
) )
) ) ) )
) ) ) & )
) ) ) ) )
) ) ) ) )
) ) ) ) )
) ) ) ) )
1 2 3 4 #
USE 2
)
) )
) )
) ) )
) ) )
) ) ) )
) ) ) )
) ) ) ) )
) ) ) ) )
1 2 3 4 #
USE 3 (Eac* +ot r%$r%s%nts 3 $oints)
)
)
) &
) )
) )
) )
) ) )
) ) ) )
) ) ) ) )
1 2 3 4 #
3:
Case% AIDS Rates -or .e&ales
Abstract: *n the early 12<=s, $*DS "as not generally considered a 'ig issue for "omen &he student is as#ed
to e%amine 1221 data from the US Department of .ealth and .uman Services to present summary date that
"ill reveal if this "as the case a decade later, and to highlight salient features or any important trends
&his case is richer than it may loo# Beither formal techni@ue nor 'usiness #no"ledge is re@uired Com-
puting a fe" percentages and plotting or ta'ulating the results "ill handle just a'out everything here, 'ut to ans"er
the underlying @uestion, the student must thin# hard a'out the underlying data gathering process and the @uality of
the data *t re@uires no computer access 0though students familiar "ith spreadsheets often choose to use them for
the graphics pac#ages that come "ith them4 *t?s a good case to assign early in the semester *t forces the students to
formulate the @uestion, decide "hat #ind of num'ers "ould help ans"er it and summariFe those num'ers &he
student "ho has a good general education has as much to offer here as the technically advanced one, perhaps more
*t deals "ith a topic of current interest, is moderately sensitive 0to some4, and helps to ma#e the point that statistics
is supposed to 'e a real e%ercise that helps us understand real things, not just a mathematics e%ercise
&he class discussion should focus on the follo"ing !hat trends do you find in the ne" cases of $*DS for
females in the USE !hat @uantities in 0or computed from4 the data measure those trendsE Do the data suggest these
trends "ill continueE !hat assumptions are you ma#ing in your ans"erE
Students often approach a course in research methods "ith the idea that there must 'e one right ans"er to
every study !e "ould li#e them to discard this idea in favor of the idea that "hile some ans"ers may 'e 'etter
than others, generally the different approaches illuminate different aspects of the situation *t?s easy to discourage
those "ho aren?t used to offering their vie"s if you get too specific in "hat you say, so "e prefer to 'egin
discussion of this case in a general "ay, "ith some @uestion li#e S!hat?s going on "ith these dataES
$ follo"-up @uestion li#e SCan you e%plain "hat features of the data led you to conclude thatES seems to
"or# fairly "ell Something li#e S!hat "ould 'e a good "ay to summariFe "hat you?ve just said so as to
communicate it to othersES may lead to a discussion a'out the strengths and "ea#nesses of various ta'les or charts
$t some fairly early point, you should as# for other approaches, too, 'oth as to the @uantities to 'e com-
puted and the form of their presentation *f a good climate has 'een esta'lished, there "ill 'e at least t"o general
#inds of analysis and four or five different forms of presentation &hese provide motivation for a summary of the
alternatives, discussions of ratios versus a'solute num'ers, ta'les versus graphs, different forms of graph, and so
on
$t its 'est, this case points out to the mathematically oriented that they had 'etter pay attention to the
pro'lem and to the data, not just to the e@uations, and points out to the mathopho'es that it may not 'e as 'ad as
they feared--simple techni@ues and some clear thin#ing go a long "ay
Likely Results
,ost students "ill provide some sort of ta'le or plot sho"ing that the a'solute num'er of ne" $*DS cases
in females has risen fairly sharply over the years ,ost conclude that "hether $*DS "as a pro'lem for "omen in
the past or not, it certainly seems to 'e 'ecoming one no"
,any of the students "ill also point out that the mi% of sources of transmission of $*DS has also changed,
"ith heterose%ual transmission rising to over 9=M of the ne" cases 'y 122= *ntravenous drug and heterose%ual
transmission no" account for a'out three-@uarters of the ne" cases in females
&he sharp drop in ne" cases in 1221 is the com'ined result of the reporting delays to CDC and the fact that
the 1221 figures are only for si% months &he delays affect the 122= results, too Students usually notice the missing
si% months in 1221, 'ut have varying levels of success in recogniFing the pro'lem "ith the reporting delays 0though
it seems as though there "as enough information in the case to alert them to this possi'ility4 &here are usually
some "ho conclude, though, that Sa"areness has increased and the trend is leveling off,S or something li#e that
0"hich later data "ould not confirm4 Students might 'e encouraged to chec# in their li'raries for later figures for
female $*DS cases to see ho" the trends for 122= and 1221 loo# after more complete data are availa'le 0see
3;
'elo"4 $lternatively, you could suggest using the information given in the case 0:=M to ;=M reported "ithin 9
months, etc4 to derive appro%imate figures, and discuss their strengths and "ea#nesses *f you "ant more updated
statistics, chec# our "e' site or try http/++"""cdcgov+hiv+graphics+"omenhtm 0active Aune, 8===4
Some students may have difficulty in discussing the topic, particularly the parts a'out se%uality &his may
come out as hemming and ha"ing or reluctance to participate &he instructor "ill "ant to 'e sure he or she has
esta'lished a climate of mutual respect to help "ith this *t?s an opportunity to point out that real pro'lems involving
statistics don?t come as antiseptic little modules at the end of the chapter5 they come complete "ith strong feelings
Dart of the art of statistics is to identify the part of those issues that can 'e dealt "ith statistically
Case% ''3 <rod)cts Cross Oer the *ines o- Varied Tastes
Abstract/ &his case as#s students to assess measurement and scaling issues in the conte%t of the
introduction of a froFen, micro"avea'le BBQ product line into the southeast 'y Rich Droducts,
Buffalo, BJ &he ne" line is 'eing introduced "ith commercials depicting Ru'y, a fictitious "aitress
at Dor#-C-Rama "ho prefers the taste of the ne" froFen line
&his case deals "ith measurement and scaling issues &he student must select a method to measure
attitudes to"ard the product category and the specific 'rand *n addition, the student must decide on a
measurement method to measure preference among a num'er of 'rands in the product category Student
may attac# issues such as validity and relia'ility of the measures
1 !hat measurement and scaling issues should 'e considered "hen developing a study to measure
consumersH attitudes to"ard 'ar'ecue in general and specifically Rich Droducts Bar'e@ueE
Chapter 19 presents difference methods for measuring attitudes &he student should select a method
and defend "hy they chose that method &heir defense should rest on the issues of validity and
relia'ility Some additional issues that may 'e addressed are/
$ .o" "ill the managers use the attitude measuresE *f they simply "ant to determine the overall
attitude to"ard RichHs 'ar'ecues then different approaches are availa'le .o"ever, if they are
interested in developing advertising copy, employing segmentation, or altering the product then
the measurement device must collect information on the salient attri'utes *n essence, the student
must decide "hether they "ant to collect formative or reflective indicators of the attitude
B $ fundamental issue for the collection of attitudes for RichHs product is consumer a"areness of
the 'rand &he 'rand is ne", conse@uently, "ill people have an attitude to"ard itE !ill the
company need to develop concept story 'oards, allo" consumers to try the product, etcE
C $nother issue is the target mar#et *t "ould appear that some consumers "ill have "ell developed
attitudes to"ard 'ar'ecue 'ut others "ill not &he @uestion is/ Can the same instrument or
measurement device 'e used for 'oth types of consumersE
8 $ssume RichHs "anted to test peopleHs preferences for their 'ar'ecue versus the other leading 'rands
0of "hich there are five4 !hat "ould you recommend to measure these preferencesE
$ &he first choice the student "ill have to ma#e is "hether to use comparative or noncomparative
methods Comparative scaling results in data that must 'e interpreted in relative terms and has
ordinal data properties $n attractive feature of comparative scaling is that relatively small
differences among o'jects 'eing compared can 'e detected *t must 'e remem'ered that the
respondent is instructed to directly compare o'jects5 conse@uently, differences are forced to
surface Comparative scales are, in general, easily understood 'y respondents 'ut can 'ecome
36
time consuming as the num'er of o'jects to rate increases X leading to respondent fatigue
B !ith noncomparative scaling the respondent is not instructed to compare the o'ject 'eing rated
against "ither another o'ject or some specified standard .ence, small differences among o'jects
may not surface
C Cnce students have discussed these issues they should choose a particular method and defend
their choice &he advanced student may "ant to discuss other potential analysis for the data such
as multidimensional scaling approaches
Case% Calling Up Attendance
Abstract/ $ study 'y Drince ,ar#eting for &CS ,anagement -roup, "hich mar#ets &eleCenter
System soft"are, measures customer satisfaction "ith the current edition of the soft"are and aims to
predict attendance at a t"o-day educational event, Users (orum
&his case has numerous tie-ins to various chapters Used "ith Chapter 9, you can 'uild the management-research
@uestion hierarchy Used "ith Chapter 3, your students can 'uild the research process model up through data
collection Used "ith Chapter 1:, you can discuss sample frames, and screening for @ualified respondents, as "ell
as various methods for dra"ing a sample from a sample frame 0customer list4 Used "ith Chapter ; you can discuss
the types of data 'eing collected as "ell as relia'ility and validity issues Used "ith Chapter 19 you could discuss
"hy a rating scale is appropriate to evaluate customer service and li#ely attendance Used "ith Chapter 1= you can
discuss the appropriate communication methods Used "ith Chapter 18, you could discuss preliminary analysis
planning Used "ith Chapter 1;, you could discuss "hat to do "ith the 1;M of the sample that felt ill-e@uipped to
ans"er the issue @uestions and "hat preliminary analysis "ould 'e appropriate to ans"er the management
@uestions
; &his @uestion gets the student in the ha'it of formulating the management-research @uestion hierarchy 0Chapter
94 as the 'eginning step of a research project &he management dilemma facing &CS is ho" to prepare for the
scheduled Users (orum "hen it doesn?t #no" "hat specific presentations to 'uild into the program, nor ho"
many people to e%pect at the Cpryland .otel event
Management questions/ !hat topics should 'e addressed in the presentations or materials distri'uted
at the Users (orumE .o" should solutions 'e delivered, given the attendance e%pected 0"ritten
materialsE "hole session devoted to the issueE4E
Research questions/ !hat issues cause the most concern among the current users of the &eleCenter
System soft"areE .o" many current users see attendance at Users (orum as a via'le means to address
trou'lesome issues, such as ease of use, technical support access and responsivenessE
Investigative questions/ !hat is the current users? evaluation of customer service, especially on ease
of use, soft"are-generated reports, technical support service, and effectiveness of soft"are for its
intended purposeE !ho, if anyone, from a current user?s company "ill attend the Users (orumE Do
ne" users of the soft"are have different concerns than more esta'lished usersE .o" many
representatives from a single company may come to the Users (orumE !hat type of respondent 0user
or manager4 is most li#ely to attend the (orumE Do the different types of respondents have different
concerns "ith &eleCenter System soft"areE
Measurement questions/ !e don?t have the actual instrument, 'ut "e #no" that Drince ,ar#eting
collected information relative to investigative @uestions using a 6-point rating scale, "here S6S "as the
most positive on the scale !e also #no" they "ere a'le to classify the respondent as a soft"are user or
call center manager
3<
6 &he o'vious choice, as indicated 'y )%hi'it 1=-8, is the telephone intervie" Because &CS needs the
information is a relatively short amount of time, one must e%clude personal intervie"ing as a collection
method -iven the technical s#ills of the respondents, self-administered via computer "as a possi'ility, if &CS
had e-mail addresses or Drince felt the response timeframe "ould 'e met Drince ,ar#eting chose a phone
intervie" 'ecause of the a'ility to control the process and meet their three-"ee# promise, 'ut also 'ecause of
the limited num'er of data varia'le they "ere collecting &hey could choose any of the three methods 0human,
C$&*, or computer-delivered4, 'ut human-administered definitely gives Drince and &CS the most control
C$&*, ho"ever, gives the telephone intervie"er the a'ility to enter the responses in process, permitting Drince
to tally the results more @uic#ly possi'ly ma#ing them availa'le to &CS in real time, so they could prepare for
presentations "ithout "aiting for the formal estimate of attendance
< &he re@uest for a preliminary analysis plan relates "ell to )%hi'its 11-1 and 11-8 and "ould 'e fairly simple
for this study &CS "ould "ant to fre@uencies on the attitudinal-scale varia'les $nd "e "ould "ant to cross-
ta'ulate such varia'les 'y "hether the respondent definitely "ould 'e, might 'e, or definitely "ould not 'e in
attendance at the Users (orum (re@uencies 0or cross-ta'ulated fre@uencies4 "ould tell us the most pressing
issues, assuming Drince has done a good jo' of anticipating issues in the design of the data collection
instrument or "as a'le to transform the data during data preparation into homogenous groups of responses on
issues !e also "ant to 'e a'le to predict attendance, so "e "ould "ant fre@uencies on the attendance
varia'le, as "ell as their interest in more information a'out attending the Users (orum .opefully "e can cross-
ta'ulate this information against classification varia'les such as industry of the firm and years of soft"are use
that "ould 'e readily availa'le from the customer data'ase the &CS provided to Drince ,ar#eting
2 *n data analysis, the ne" users "ho felt ill-e@uipped to evaluate the soft"are ease of use @uestion 01;M of the
sample4, "ould li#ely not 'e included 0counted as missing cases4 in the analysis of this issue .o"ever, their
li#ely attendance could still 'e important to the prediction of attendees overall *f some of these ne" users did
identify soft"are installation, technical support, or use concerns, you could cross-ta'ulate a status varia'le 0ne"
user vs esta'lished user4 against the various issues varia'les Such data e%ploration actions may very "ell lead
to Users (orum sessions e%clusively designed for ne" users
1= Jou can use this @uestion to tie the trends cited 'elo" and )%hi'it 1-1 to the communication data collection
approach Jou could also tie this @uestion 'ac# to Chapter : and the su'ject?s right to privacy &he issue of
incorporating mar#eting promotion "ithin the conte%t of customer satisfaction research is commonly done,
although it can 'e a t"o-edged s"ord (rom a mar#eter?s perspective, you have a potential attendee on the
phone and you could efficiently use his or her time 'y telling them a'out the Users (orum (rom a professional
researcher?s perspective, such a com'ination use of the survey is totally inappropriate and contri'utes to the
gro"ing refusal rate among potential respondents *f research is accompanied 'y a sales presentation, potential
respondents have the right to 'e angry "hen they agreed to participate only in a survey Such a change in
orientation and purpose is a violation of the su'ject?s right to privacy
Trends in Research <ro-ession What ;anagers Sho)ld Watch .or
&he Dositive &rends
Budding recognition of the importance of the researcher
participating in strategic planning
Strategic planning initiatives that have an appropriate
research component
)merging return to the strong, internal research group or a
long term partnership "ith an e%ternal research supplier
Better methodologies performed 'y #no"ledgea'le
professionals generating significant value to management
decision ma#ing
32
Trends in Research <ro-ession What ;anagers Sho)ld Watch .or
The Negatie Trends
*ncreasing pressure for rapid measurement and feed'ac# ,ethodologies that raise @uestions a'out
representativeness of samples
Drojects fielded "ithout thoroughly understanding the
management dilemma, "hich results in information of
little value to solve the dilemma
*ncreasing pressure on research specialists to interpret
research results and provide strategic recommendations
Research providers "ho may 'e technically competent
"ith e%pertise in @uantitative s#ills, 'ut "ho are not
trained or have limited training in management
*ncreasing demand for information privacy, reducing
respondent "illingness to cooperate
Research providers "ho are #no"ledgea'le a'out
e%tracting valua'le #no"ledge from internal data'ases
0data mining4
-eneral consulting firms moving to"ard functional
specialiFation and increasingly doing their o"n research
Consultants "ho lac# the technical s#ill in research
methodologies creating a lac# of transition from
management dilemma to research protocol
Consultants sharing information among specialiFed
clients, generating a loss of intellectual capital that fosters
distinctive competenciesPthe 'asis of competitive
advantage
Continued perception of research as an e%pense rather than an
investment in reducing uncertainty
Research 'udgets 'eing cut during economic do"nturns
*ncreasingly "ide range of competence among those offering
services in the research industry
*nsufficient @uality of credentials among research
professionals 'eing used or considered
$ssignment of projects to researchers "ith insufficient
technical 'ac#ground to the @uality research
!idening cultural mindset gap 'et"een 'usiness strategists
and research specialists
Brea#do"n in communication 'et"een researcher and
manager "ho "ill use the research results, resulting in
information, not #no"ledge
Consulting and industryHs e%pectation that ne" hires have
received scientific research training in college
$ssuring that curricular demands placed on the ne" hires
at their collegiate institutions have included research
methodologies
Decrease or decay in intellectual transfer 'et"een academia
and research profession
$ssuring that firms hired as research specialists #eep
a'reast of the ne"est methodologies through continuing
education efforts
&hese trends are dra"n from various presentations at the annual $merican ,ar#eting $ssociationHs ,ar#eting Research conference since 1226
Case% Ca&pbell5E"ald <)&ps A"areness into the A&erican #eart Association
Abstract/ Jou "ouldnHt thin# that an organiFation that does as much good as the $merican
.eart $ssociation "ould have lo" a"areness, 'ut at the start of the descri'ed research program its unaided
a"areness level "as just 1; percent (or a company reliant on contri'utions, lo" a"areness is a major pro'lem
&his case profiles the research 'ehind the $merican .eart $ssociationHs first-ever paid advertising campaign
"""+ca&pbell5e"ald+co&: """+a&ericanheart+org
1. After watching the ads, take the Learn and Live quiz. Take a position on the tracking of individuals
taking the quiz as a measure of direct response of the ad`s effectiveness; defend your position.
(http://www.americanheart.org)
Jou might find it useful to use this discussion @uestion as a class e%ercise Jou can divide your class into pro+con
teams and have each come up "ith the arguments for that position
:=
$rguments for using involvement "ith the online @uiF as a means of ad trac#ing might include/
&hat getting audience mem'ers to the !e' site "as clearly an important action o'jective of the ad
)ngaging visitors 'y involving them in the ta#ing of a @uiF is more li#ely to reveal their understanding
of the underlying message of the ad campaign
$rguments for not using involvement "ith the online @uiF as a means of ad trac#ing might include/
&hat many individuals that see+hear and understand the message may not 'e encouraged to visit the
!e' siteLso the communication o'jective may 'e met "hile the action o'jective may not
*ndividuals that see+hear the ad and understand the message may not have access to a computer Since
computer access "as not a varia'le in choosing the media for the campaign to e%clude this portion of
the relevant population "hen trac#ing ad results creates error
2. What are the advantages and disadvantages of using secondary data in this particular case?
&he primary reason Camp'ell-)"ald 0C-)4 used secondary data during their preparation of the $.$Hs pitch for the
advertising account "as to gain a 'etter understanding of the organiFation and of heart disease, as "ell as
understand "hat motivated giving to a non-profit organiFation Using secondary data shortened the time they
"ould spend on research $lso, they @uic#ly discovered the scope of the potential pro'lem facing $.$ !hile they
"ouldnHt have "anted to craft a creative strategy 'ased solely on secondary data, effective use of secondary data
collected during e%ploration is actually e%pected in 'usiness research *t "as the intervie" of Aohn Daling 0primary
data4 a'out ho" people perceived ris#, ho"ever, that gave them the insight to develop the approach that "on C-)
the $.$ 'usiness
3. Discuss the role of Diagnostic Research in the American Heart Association`s selection of the personal
stories creative approach.
Diagnostic Research "as hired to pretest the various creative approaches that evolved from the focus group
discussions, the intervie" "ith Aohn Daling, and the secondary data search DR sho"ed the animatic prepared 'y
C-) to a sample of 1=== adults in a mall setting &he $.$ animatic "as positioned "ithin a pod of animatics for
other products and services, similar to the "ay the audience "ould see the real $.$ commercial &he su'se@uent
intervie"s measured 'rand recall and the main idea that the audience o'tained from the ad
&he DR methodology indicated that all three creative approaches tested "ould generate appropriate 'rand recall
and message capture &hat meant the C-) might need additional research to correctly select the 'est creative
approach or they "ould need to use their vast e%perience to recommend the 'etter approach for $.$ to ta#e at this
particular time in $.$ history &his is good time to mention that even great research doesnHt ma#e the decision for
the manager Rather, research provides the undecided manager "ith evidence to s"ay his judgment in one direction
or another, or it su'stantiates a direction in "hich the decision-ma#er might 'e leaning
4. Explain why both qualitative and quantitative research techniques were used to develop the personal
stories campaign?
&he use of more than one research techni@ue in 'uilding an advertising campaign is fairly common in 'usiness
research &he @uantitative data derived from previous $.$ surveys and from the DR animatic testing allo"ed
C-) to @uantify the ris# of each campaign *t "as the @ualitative research, first the intervie" "ith Aohn Daling
that gave C-) its understanding of personal ris#, as "ell as the focus groups that put a face to real, heart-disease
stories that gave C-) their strategic approach to the pro'lem of raising $.$ a"areness and that, ultimately,
provided the "inning campaign creative approach
Jou might "ant to discuss "hether the mall setting "as conducive to either the vie"ing of the animatic or
"hether patrons of malls represent an appropriate group from "hich to dra" a sample *f DR has facilities in
the mall, as many such firms do, then the group from "hich it dra"s its sample might suffer from over-testing
and thus inject error into the process
:1
Depending on how much you wish to discuss advertising, other discussion opportunities include:
Discuss ho" students "ould test "hich of the personal stories ads "as most effective
Discuss "hether the appropriate sample should have 'een "eighted more to"ard females than males
Discuss "hat research could 'e used to determine "hether an ad campaign "ould 'e more effective in raising
a"areness and understanding of the $.$, compared "ith other promotional methods
Case% Ca&pbell5E"ald% R5E5S5<5E5C5T Spells *oyalty
Abstract/ &he case descri'es a detailed study conducted 'y Camp'ell-)"ald, "ho sought to su'stantiate the
importance of NrespectO "hen dealing "ith customers in different 'usiness related sectors &his agency, steadfast in
its success through customer satisfaction principles, esta'lishes through its research that the construct of respect is
held in high regard 'y customers and therefore plays a significant role, "hen determining, among other things, the
longevity of client relationships
1. How would you operationally define the construct of respect? Take the perspective
of each of the three client sectors: insurance, air travel, and retail.
&his @uestion is fitting for discussions concerning concepts and constructs *t prepares students to identify the
similarities and differences involved "ith the use of 'oth scientific terms 0Chapter 84 and ho" dictionary meanings
differ from those used in testing Both terms are inherently similar yet the construct has specificity necessary for
measurement and replication of a study Constructs are not easily o'serva'le, created for the e%press purpose of
testing, and generally more comple% &he construct of respect though similar in various theories, assumes
variations "hen operationally defined in the research literature and "hen vie"ed from the perspective of these three
client sectors &he term res%ect as used in conversation has more individualiFed e%periences attached to it and is
idiosyncratic to individual spea#ers &hus it is difficult to find agreement among students in this definition during a
discussion Jou "ill find that through 'rainstorming, students may indicate that the definitions overlap and they
may point out difficulties "hile trying to NoperationallyO define them !hen such constructs are used in pure
research, measurement scales are essential to further specify meanings &he important thing for students to grasp is
that through operational definitions, a person should 'e a'le to measure or conceptualiFe the construct, given the
specific purpose of the research $dvise students that operational definitions often serve the same purpose for
researchers, as common jargon does for narro" language groups .ere are some student definitions of respect after
reading the case/
*nsurance/ tailor products for specific customer needs5 maintain the individualHs right to privacy "hen
dealing "ith client information5 sho" concern for unfortunate mishaps5 provide contractually correct
compensation in a timely fashion, refraining from unethical and dishonest conduct
$ir &ravel/ strive to meet e%pectations in chec#-in, 'oarding, on'oard services, de'ar#ing, and luggage
handling5 providing appropriate reim'ursements or compensation to customers "hen necessary5 sho"
concern for safety and on-time schedules
Retail/ maintain a polite and cordial demeanor "hen dealing "ith the pu'lic5 listen to customersH specific
needs and match your product accordingly5 remain professional "hen faced "ith unpleasant circumstances,
regardless of "ho is at fault
2. Map the overall design of the research described here.
&he nature of this @uestion gets students into the ha'it of identifying the different types of designs and the steps
involved "hen conducting research *t allo"s students to 'ecome more familiar "ith the various methodologies
utiliFed and is an opportune time to e%plore data collection techni@ues and the constraints researchers sometimes
:8
encounter "hen utiliFing such techni@ues $s such this @uestion is @uite applica'le to Chapter ;, "hich discusses
design strategies as "ell as 11, "hich e%plores data collection methods
&he first step involved Camp'ell-)"aldHs e%ploratory attempts to discover the reasons for the
disconnect 'et"een respect 'onds and its customers Camp'ell-)"ald discovered firms "ere
accustomed to using Customer Relationship ,anagement 0CR,4 soft"are, as a mechanism for
trac#ing satisfaction 'ehavior among customers .o"ever, research revealed that investment in
technology and soft"are to model li#ely 'ehavior "as not achieving its desired goal $mong the
reasons for Camp'ell-)"ald interest "as the apparent connection 'et"een customer satisfaction and
customer loyalty and purchase 'ehavior &his stage also tapped into feed'ac# from -artner -roup and
$ccenture, relationship e%perts such as Dr Dhil and Steven Covey5 and information garnered from
e%isting literature on the dynamics of people relationships
o &his is an opportunity to as# students "hat other e%ploratory avenues that Camp'ell-)"ald
might have pursued
o &his is also an opportunity to discuss the different 'et"een pure and applied research &he
Camp'ell-)"ald clients in the three sectors did not have specific relationship management
issues they "ere researching "hen they signed on as part of the respect research initiative
&he second stage of the research --data collection-- revealed the use of t"o levels of primary data
&hrough partnership "ith Synovate, Camp'ell-)"ald first utiliFed SynovateHs omni'us *elenation
0nationally representative telephone survey4 to ascertain "hether the pu'lic vie"ed respect as an issue
"hen they dealt "ith companies &his data "as used to justify Camp'ell-)"aldHs 'elief that respect
"as a salient issue to customers .ere you can discuss the implications involved "ith using an omni'us
study and ho" the process of as#ing a fe" @uestions to a national pro'a'ility study can prove helpful to
a researcher Camp'ell-)"aldHs decision to e%plore this data may have yielded significant findings,
"hich further validated their conclusion that Nrespect truly mattersO Jou can as# students their vie" of
ho" credi'le the use of an omni'us study data is and "hy
&o esta'lish the varying perspectives of respect concerning the different sectors 0insurance, airline and
retail4 Synovate utiliFed a sample of 18 focus groups, four each in the a'ove named sectors &his stage
e%plored the scope of the research @uestion and seeded the su'se@uent 3-page @uestionnaire &o 'etter
allo" for a representative sample, the focus groups included men and "omen from 'oth Chicago and
Detroit &his is an apt time to discuss the advantages and disadvantages of using focus groups
Considering the sample usedPfour each in three sectorsPraises @uestions a'out accuracy and
representative results from t"o mar#et areas (eed'ac# from the focus groups "as used to design
measurement @uestions for the mail survey sent to Camp'ell-)"aldHs clientsH customer lists from each
sector &he focus groups "ere used fairly traditionally in this case to see a more detailed @uantitative
study
&he final data collection phase of the research "as a national pro'a'ility mail survey conducted 'y
Synovate Cne possi'le discussion @uestion is/ !hy did Camp'ell-)"ald choose BC& to use the
Synovate panel to increase the response rate to the survey VCamp'ell-)"ald feared it "ouldnHt 'e
representative of the three sectorsW $nother might relate to the non-response error inherent in a mail
study and ho" it is handled !ith only a small response rate 0less than 2M4 could Camp'ell-)"ald
have concluded that respect matters to only a small portion of the relevant population and the
remainder simply didnHt careE -enerally this is a good time to discuss the strengths and "ea#nesses of
mail surveys
A. What types of studies were involved in Campbell-Ewald`s respect initiative?
:9
&here "ere three study types involved in Camp'ell-)"aldH respect initiative Jou can use this time to as#
students ho" they "ould relate the case to other types of studies Jou can also discuss the characteristics of these
studies and the purposes each serve in research -iven the outlines of each study, you can as# the student to
indicate its strengths and "ea#nesses
)%ploratory study Camp'ell-)"ald used secondary data searches to define the construct 0including
studies pu'lished 'y -artner -roup and $ccenture, 'oo#s 'y authors such as Dr Dhil and Steven Covey,
and information from other e%isting literature4, and focus groups to help refine attitudinal statements to
'e used in later @uantitative research &he t"elve focus groups study completed the e%ploratory phase of
the research and segued into the survey
Descriptive Study Camp'ell-)"ald utiliFed data from SynovateHs &elenation telephone survey, "hich
served as a preliminary step in the large @uantitative study "hich follo"ed
)%planatory study .ere Camp'ell-)"aldHs research team attempted to isolate the components of
respect and e%amine its relationship to satisfaction and loyalty &hey "ere interested in discovering
ho" customers vie"ed the issue of respect "hen dealing "ith companies &hey aimed to ascertain
"hat caused customers to remain loyal to 'usinesses and in so doing Nidentify the tenets of strong
personal relationships &his effort aided in the creation of its five NDeople DrinciplesO !ith its
e%tensive clientele, "hich included customers in different sectors 0insurance, travel, retail and
government4 Camp'ell-)"ald sought to discover, 'ased on their five principles, ho" respect "as
vie"ed in each sector &o 'uild on this, Camp'ell-)"ald capitaliFed on SynovateHs e%perience in
conducting large scale mail surveys, "hich "as a significant source in the data collection process
*ts sophisticated analytical techni@ues, namely its Nproprietary 'rand propensity modelO called N&he
,omentum )ngine,O aided in providing more detailed information in analyFing relationships "ith
sales gro"th -iven its varying client list, therefore its sample siFe, Camp'ell-)"ald desired a more
comprehensive feed'ac#
B. What are the strengths and weaknesses of the various methodologies?
&his @uestion is applica'le to Darts 8 and 9 of the te%t "here the methods of primary data collection are
presented
Mail Surveys (Self Administered Surveys)/ &he use of this methodology, though often cost effective in
research, can 'e pro'lematic "hen it comes to response rates ,ail surveys are typically ine%pensive
.o"ever, lo" cost is no guarantee that responses "ill 'e su'stantial (ive thousand surveys "ere distri'uted,
and the amount returned 0:M X 2 M4 opens the discussion to nonresponse 'ias Response rates for mail
surveys are typically lo", 'ut steps can 'e ta#en to adjust this &his is an apt time to discuss the pros and cons
of using different survey methods and the challenges researchers sometimes encounter !as the survey too
lengthy at four pagesE Did that contri'ute to the lo" response rateE !ere participants just not interested in
the "hole issue of respect from the companies they dealt "ithE &he siFe of the dataset for each sector 08==-
:== cases4 o'scures the fact that "hile the data are sufficient for statistical analysis, representativeness is in
@uestionE Jou can as# the student/
!hat steps could Synovate ta#e to increase response ratesE
.o" can a researcher minimiFe nonresponse errorE
.o" effective "ould incentives 'e given sample siFe and costE

Camp'ell-)"aldHs decision to disguise their clients, 'y sending surveys under SynovateHs letterhead could
have increased or decreased response rates By disguising the surveyHs sponsor participants may 'e less
inclined to complete the survey ,any might have 'een unfamiliar "ith "ho Synovate, further reducing
:3
their li#elihood of response Some participation in any survey is dependent on participants recogniFing the
value they 'ring and on the rapport 'et"een participant and researcher, participants may 'e more li#ely to
participate in the survey "hen they are familiar "ith the organiFation or feel some sense of loyalty to it $t
the same time, disguising the name may have proven helpful, as this "ould give respondents the
opportunity to give an honest opinion of ho" they felt Camp'ell-)"aldHs clients treated them, or ho" they
vie"ed the issue of respect
Focus Groups/ &he use of focus groups, as a "ay of developing measurement @uestions that "ould clarify
the core motivational drivers in categories 'eing studied, proved useful as a "ay of defining the parameters
of respect .o"ever, having clients actively involved in this process of creating the measures and the
su'se@uent development of the survey can, potentially, create some 'ias $s such, measurement @uestions
could 'e created that only defines ho" specific NclientsO may conceptualiFe respect and not necessarily 'e
applica'le to all mem'er firms in a sector Since a communication agency rarely represents more than one
firm in a category, having the measurement @uestions apply more to one firm 0eg, Continental4 in a
category rather than all other firms in the sector is really not pro'lematic &he use of mainly Ntop
customersO as the sample frame, 'egs the @uestion as to ho" representative that sample may 'e for pure
research
Telephone Omnibus Survey: $n omni'us survey has a very short turn-around "hile it limits the num'er
of @uestions contri'uted 'y any one sponsor &herefore, the omni'us can sometimes represent a 'undle of
@uestions that have little direct connection &his leap from topic to topic can sometimes confuse a
participant and as a result the sponsor may get less than the clarity hoped for (or an undefined construct
li#e respect, the omni'us survey should have 'een a comforta'le respite from more product+store+issue
specific @uestions &he lo"er cost and shorter turn-around "ould have prevented the larger study from
'eing slo"ed
C. How do the methodologies complement each other?
&he use of the focus groups for ideation and creating measurement @uestions is a useful "ay of getting first
hand #no"ledge as to the type of issues that customers "ere most concerned a'out in each sector "hen it
came to respect Using feed'ac# from the focus groups, Synovate "as a'le to create and appropriately tailor
the measurement @uestions that participants could relate to Camp'ell-)"aldHs decision to actively engage its
clients in this process, further ena'led them to seed the survey @uestions $dditionally, the incorporation of a
:-point scale complements the attitudinal nature of the investigation

3. Analyze the use of the 5-point scale for measurement of respect dimensions. What other statements
would you add to the sample provided in Exhibit C-E-1?
&his type scale as a measurement tool is a simple and useful "ay of recording responses !ith the attitude
statements connected to a five-point Nstrongly agree to strongly disagreeO scale, comparisons 'et"een
sectors is more efficient for data analysis of attitudes -iven the length of the survey, this is an easy "ay to
allo" participants to indicate their opinion, "hile providing them "ith a middle ground, in the event they
neither agree nor disagree
::
&hough the scale channels a response "ithin a specific conte%t, participants responding to comple%
construct such as respect may either add to measurement error 'y responding to statements "ith "hich they
have no e%perience or desire to ma#e additional "ritten clarification
Using some open-ended @uestions could have 'een advantageous $ useful comparison is the evaluation
surveys that students complete at the close of each semester, "here they rate their professors and the
course &o generate a discussion you can as# students ho" li#ely they are to complete open-ended
@uestions on such surveys, and "hyE Jou can also as# students to suggest statements they "ould include in
the Camp'ell-)"ald study as opened-ended @uestions
Camp'ell-)"ald and its partners used correlation, multiple regression, and other multivariate analyses in an
effort to identify customers "ith the greatest potential to drive sales gro"th Bonmetric scales "ould have
presented severe data analysis pro'lems since the lac# the po"er to e%tract the information re@uired 'y the
research @uestion
E6hibit C5E5> Sa&ple o- Attit)dinal State&ents
Researchers as#ed participants their degree of agreement "ith several respect validation statements $ sample of these
statements, developed from focus group discussions, appears 'elo"
Strongly Agree Neither Disagree Strongly
Agree Agree nor Disagree
/eneral Respect Initiaties= across categories
Is interested in listening to what is important to me as a customer
Places their own interests above those of the customer
Notifies me in advance of sales and special promotions
Rewards me for repeat business
Honor commitments/promises theyve made to me
Speci-ic Respect Initiaties= "ith category
Accepts returns without a hassle (retail
!lights ta"e off and land on schedule (airline travel
Handles claims in a timely manner (insurance
4. Discuss the pros and cons of the sampling plan for the mail survey.
Camp'ell-)"ald received names of customers from their clients &hese clients provided names mostly
from their top customers Synovate distri'uted five thousand surveys to each sector/ insurance, air travel
and retail .o"ever, the case did not indicate as to ho" customers "ere chosen as part of the sample to
determine if this "as done in a randomiFed manner *t also did not indicate if criteria "ere set to choose
customers, such as length of time "ith a particular client or company, their gender, or age groups
Considering that clients provided names of their mostly from their top customers, esta'lishing "hether or
not this is a representative sample of their customer population, is pertinent information Su'se@uently,
"ith the target population 'eing mostly Ntop customersO this potentially limits the a'ility to ma#e
inferences a'out the general population and inevita'ly raise @uestions as to the accuracy of the findings
-iven the nature of the research, and the fact that five thousand surveys "ere sent out to each sector "ith a
small return, it is safe to assume that not every customer relevant sampling element is represented &his is a
good time to discuss "ith students, the pros and cons of using pro'a'ility versus nonpro'a'ility sampling
:;
Students may argue that this "as the most cost effective method to ta#e, "hile others may argue that the
sample produces much 'ias and therefore @uestions the accuracy of the results
Case% Can Research Resc)e the Red Cross?
Abstract/ &he $merican Red Cross, #no"n for its "orld"ide efforts in providing disaster relief and
assistance to the sic# and needy, comes under intense scrutiny and attac# for the misappropriation of
post Septem'er 11 donations &he case descri'es the concerns e%pressed 'y 'oard mem'ers of the Red
Cross "ith regard to ho" such pro'lems could 'e prevented in future fundraising efforts *t also
outlines ho" this organiFation sought to address its e%isting dilemma of changing the pu'licHs
perception of the "ay in "hich funds are managed and "hether pu'lic donations "ere 'eing used
appropriately
&his case is @uite applica'le to Chapters 1 through 9, "here students are introduced to the research process and the
different types of studies that the Red Cross could have underta#en to avoid their e%isting dilemma &he case also
ties in to Chapter 9 and prepares students for the creation of the management-research @uestion hierarchy 0)%hi'it
9-8, ,anagement-Research Question .ierarchy4 $dditionally, it allo"s for discussions on the decisions made 'y
researchers "hen designing samples 0Chapter 1:4 By descri'ing and discussing the dilemma faced 'y the Red
Cross, students "ill 'e a'le to use )%hi'it 9-9, (ormulating the Research Question, to identify management
dilemmas and in so doing formulate appropriate research @uestions that the Red Cross could consider for
discovering 'etter "ays of funds management Used "ith Chapter 18 and 19, students can discuss the types of
measurement scales *n addition, the case ties into the data collection methods descri'ed in Chapters 1= R 114
1. If you had been McLaughlin or Decker, what research would you want done?
Jou can 'egin discussions of this @uestion 'y having students suggest ho" ,cLaughlin or Dec#er might define
the dilemma Some may suggest that the dilemma faced 'y the Red Cross lies in ho" to 'etter manage and
appropriately ma#e use of pu'lic donations Cthers may see the dilemma as ho" to overcome the negative
perception that donors may have of the Red CrossHs fund raising activities and regaining pu'lic trust Cthers
might see the dilemma as one of education of the pu'lic and ho" 'est to do such activities Students may also
suggest that the Red Cross needs to find "ays to reassure donors that their donations "ill 'e distri'uted
appropriately Both ,cLaughlin and Dec#er could 'enefit from e%ploring ho" current funds are pooled and
distri'uted, ho" informed donors are of the "ays in "hich the Red Cross manages and distri'utes donations
,anagement could also e%plore if its decision to use a portion of the Li'erty (und as reserve for future disaster,
"as consistent "ith its mission and previous fundraising strategies
2. Create the Management-Research Question hierarchy for the research you think might help the Red
Cross make decisions related to public relations efforts and future advertising soliciting donations.
)%hi'it 9-8 and 9-: are useful as a guide for this discussion/ !e suggest using the management dilemma facing
the Red Cross as the pu'licHs perception of its mismanagement of donations &he Red Cross must change ho"
it is perceived 'y donors "ho may @uestion "hether their donations are 'eing used for the causes for "hich the
Red Cross "as perceived to 'e soliciting funds &he Red Cross must a'le to provide services 'ased on the
contri'ution it receives from pu'lic donors *f it "ere to continue to 'e seen as engaging in activities
inconsistent "ith its mission, the Red Cross could face a significant decrease in its funding sources &his may
also place a negative stigma on the nonprofit charita'le sector and its future fundraising activities &herefore,
:6
the Red Cross must regain and maintain its credi'ility in the pu'licHs eyes, so as to 'e a'le to ensure the
continued receipt of donations
Some of the options students might generate are/
;anage&ent 3)estions Research 3)estions Inestigatie 3)estions
$ll management @uestions are
not e@ually addressed 'y
research .o"ever considering
the gravity of the e%isting
dilemma, ho" should the Red
Cross ma#e donors clearly a"are
of their policies "ith regard to
ho" contri'utions are e%pendedE
.o" should the Red Cross
change the "ay it advertises is
policies "ith respect to
donation allocationE
!hat is donor understanding of the
e%isting policies relating to ho"
donations are raised and spentE
Should the Red Cross consider
revising its policies relating to
ho" donorsH contri'utions are
pooled and distri'utedE
Should the Red Cross use
separate fund-raising activities
for each disaster or should it
solicit funds only for the
general fund that may 'e
allocated to any disaster "here
neededE
!hat practice 0specific fund or
general fund4 is more li#ely to
generate more largesse among
donorsE
!hat level of trust do donors have
that the Red Cross "ill spend its
donations "iselyE
!hat are the donation patterns/
primarily to specific pleas for help
or have donors simply donated to
further the general mission of the
organiFationE
.o" can the Red Cross 'etter
manage the funds it receives
from fundraising activities,
specifically funds raised in
e%cess of the amount needed for
a specific disasterE
Should the Red Cross utiliFe a
predetermined donation goal,
redirecting funds to the general
fund after that goal for
donations is received, and
communicate this goal to the
potential donorsE
.o" is a dollar estimate of a
donation need level determinedE
!hat is the potential donorHs
understanding of this estimation
processE
!ill a dollar donation goal for a
particular disaster relief fund
discourage donations once that
goal is reachedE
.o" "ould potential donors "ant
to learn a'out progress to"ard goal
achievementE
3. If you created a RFP, what would it contain?
Chapter 3 introduces the R(D, "hich is supplemented 'y the sample on your te%t D7D, and provides additional
insight as to the contents and assessment of a Re@uest for Droposal &he proposal "ould contain/
Definition of the pro'lem facing the Red Cross 0the management dilemma4
*dentifying the limitations involved
:<
Droviding a description of the policies relating to Red CrossHs fundraising
-uidelines
4. What considerations should influence sampling decisions in any research the Red Cross would do on this
issue?
-iven that the $merican Red Cross is a national organiFation and their reputation "as at sta#e, the
selection of an appropriate pro'a'ility sampling techni@ue is indicated
&he larger @uestion is "hether sample units should 'e stratified in some "ay Students should 'e
encouraged to 'rainstorm all the possi'le su'groups "ithin the donor population ,any donors may have
made contri'utions to the Red Cross via its "e'site, "here they "ere given the option of contri'uting to a
particular cause &o allo" for accuracy and effectively address the issue of the e%isting policies relating to
ho" donations are raised and spent, a sample could 'e dra"n from persons "ho have 'een previous
donors to a particular fund Dersons "ho visit the "e'site for general information and not for donation
purposes could also 'e targeted as possi'le sampling units
Students should also 'e encouraged to identify the sample frames availa'le to the Red Cross due
to its past fundraising practices ,a#e sure that students donHt just focus on "e' site contri'utors as a
sample frame "hen ma#ing sampling decisions, as the Red CrossHs population of donors e%tends 'eyond
"e'site contri'utors
Cnce students have focused on a type of pro'a'ility sample, they should also consider sampling
procedures for dra"ing that sample (or e%ample, if they have decided that a stratified sample is
appropriate, and that the larger Kformer non-profit donor populationH is the 'asis for sample unit selection,
ho" might such donors 'e screened to determine "hether they have donated previously to the Red Cross
general or disaster-specific funds
5. If a survey is used, what scales would be most appropriate?
Jou can use this @uestion as a group activity "here students can formulate or use the class-
generated investigative @uestions to argue for specific types of measurement @uestions Cne de'ate to
e%pect is the use of ran#ing versus rating scales, or for specific types of ran#ing or rating scales, for
e%ample Li#ert versus paired comparison scale *n Chapter 19, the section on Selecting a ,easurement
Scale along "ith )%hi'its 19-8 and 19-2 provides the conte%t for decision ma#ing
Students should also 'e challenged to as# for the appropriate type of survey !hether the
students choose phone, intercept, or "e' survey should influence the types of scales used
$lso, given the large siFe of a national pro'a'ility sample of donors, simplicity and
practicality should 'e considerations in selecting appropriate scales Students "ill li#ely offer that
numerical and Li#ert scales meet such criteria $nd 'oth also allo" for the production of ordinal and
interval data, suita'le for e%tensive analysis !ith respect to the li#elihood of donors ma#ing donations to
a particular cause or a general fund, or having them indicate their preference to "here their funds should
'e spent, the Constant Sum or (orced Ran#ing scales may also 'e offered and "ould 'e appropriate
:2
Case% Can this St)dy be Saed?
Abstract: &his case depicts a discussion 'et"een individuals "ho are trying to assess the @uality of
research 'ased on the sampling procedure and the results 'ased on the sampling process *t as#s the
student to evaluate the sampling process and ma#e recommendations to use the collected data or
resample Data ta'le included
1. Do you agree that drawing a second sample was a good idea?
*tHs not entirely clear that this "as a good idea and it may "ell have 'een unnecessary &here are
several issues here/
$ !hile itHs usually 'etter to have more information, it is not al"ays "orth the e%tra cost
B &he second sample may not have 'een necessary 'ecause the standard error of the first
sample initial returns 0U:66<\<328;+
81;
4 is already less than the U1== to "ithin "hich
they "ant to #no" average spending
C &hose "ho chose to respond initially may not 'e entirely representative Rather than choose a
ne" sample and receive another 'iased group of responses, the follo"-up of non-respondents
is prefera'le
D .o"ever, there is nothing fundamentally "rong "ith choosing a second sample for the
purpose of o'taining more information *t is permissi'le to dra" t"o random samples and
then com'ine them, forming a single random sample "ith a larger siFe, provided the decision
to dra" the second sample "as not 'ased on estimates o'tained from the first sample
2. Were the follow-up mailings were a good idea? Explain.
Jes, these pro'a'ly "ere a good idea Since the 3== in the initial mailing of the first sample "ere
chosen to represent the entire mem'ership, the opinions of the initial non-respondents are
important *t can happen that those "ho respond initially are different from the others/ perhaps they
have more time, or are more actively involved in the issues Since the purpose is to survey the
mem'ership 0and not just the most active mem'ers4 these e%tra efforts should help ensure
representation
3. Which of the results are useful? Are these data sufficient to solve the management problem or
is further study needed?
$ &here are some useful results here, 'ut even after follo"-up efforts, only a'out 6=M have
responded !e still lac# information from a'out 9=M of these people &he follo"-up
averages are much lo"er than the others )vidently there is a relationship 'et"een planned
spending and sending in the @uestionnaire &hose "ith high spending "ere more li#ely to
send it in Differences from one sample to the other are important Considering the
differences 'et"een initial mailing and follo"-up responses, these 9=M could "ell 'e 'elo"
any of the reported averages !e donHt #no" *n the real "orld, there often is non-response
that cannot 'e eliminated as a pro'lem
B &he pilot study should pro'a'ly not 'e com'ined "ith the other responses &he pilot study
"as not a random sample to 'egin "ith and has served its purpose in testing the
;=
@uestionnaire &he pilot study averages are very much higher than any of the others $s these
"ere not randomly dra"n, "e have no reason to consider them representative of the
mem'ership in general
C *t might 'e argued that all other responses 0first and second sample, initial mailings and
follo"-up responses4 are useful and should 'e com'ined &he resulting average 0U9,9634 has
a standard error of U;3, "hich is less than the U1== re@uired &his then represents the planned
spending of the appro%imately 6=M of mem'ers "ho are li#ely to ans"er these
@uestionnaires
D *deas for further study could include different design methods or additional follo"-up of non-
respondents
Case: Donatos: Finding the new Pizza
Abstract/ &he case descri'es a multi-stage study conducted 'y Donatos, an independent,
premium piFFa restaurant chain, aimed at trac#ing interest and response rates to a ne"ly
introduced BC DCU-. piFFa concept &he research conducted 'y Donatos is an attempt to
test and su'se@uently meet the needs of its lo"-car'ohydrate diet mar#et *n so doing, it also
aims to measure customer satisfaction "ith the ne" piFFa concept
1. Map the research design used by Donato`s for new product development.
&his @uestion provides an appropriate introduction for students to the various descriptors of research design
discussed in Chapter ;, )%hi'it ;-8 Descriptors of Research Design .ere the frame"or# and procedures for
research activity is outlined Students "ill 'e a'le to discuss the e%ploratory steps ta#en 'y Donatos, such as their
monthly !$SSUD ,eetings, e-mail comments from customers and monitoring of eating trends from different
sources &he case also allo"s students to distinguish 'et"een different data collection methods, such as the self-
administered intercept survey and call-'ac# phone survey employed 'y Donatos Secondary data "as also used
during the e%ploratory stages from sources that documented and monitored eating trends &herefore, students can
discuss the pros and cons of using this type of data &he e%perimental design also utiliFed "ill allo" for discussions
relating to the taste tests conducted among employees and ho" DonatoHs decision to e%clude its Nspecial ingredients
from the "e'site may have affected the yielded responses
&he case indicates that Donatos has monitored different sources, such as the syndicated data, BDD )ating &rends,
"hich provides indications of changes in eating ha'its &hey have also garnered feed'ac# from comments
customers send via e-mail from their "e'site, in addition to the !$SSUD meetings held on a monthly 'asis, "here
employees "ere as#ed to provide feed'ac# on e%isting social and cultural trends &hese steps then esta'lish the
e%ploratory stages of their research &hrough this stage, Donatos "as a'le to discover that there "as an e%isting
interest in lo"-car'ohydrate eating plans
Stage 8 of the study, the research-'ased product development phase, involved development of the product
prototype .ere data "as collected from employee taste testing5 in restaurant tests, "here participants
"ould complete self-administered intercept surveys5 call-'ac# phone surveys for customers "ho "ere
serviced through delivery and concept screen activities "here participants "ere sho"n photographs of
food products and then @uestioned Jou can use this time to discuss/
!hy a phone survey and self-administered intercept survey "as used
&he pros and cons of using the self-administered intercept and phone survey 0Use )%hi'it 1=-:
;1
Comparison of Communication $pproaches as a guide4
.o" relia'le "ould the feed'ac# 'e from employee taste testing activitiesE
Stage 9 involved choosing a mar#eta'le name for the ne" piFFa concept, here
Donatos tested three different names using a "ee#end omni'us phone survey &he case indicates that
their typical ne"-product development research "ould routinely ta#e 18-13 months to complete -iven
the time constraints that Donatos faced 0the possi'le short-term nature of the lo"-car'ohydrate trend4,
you can as# students to discuss the implications of the findings yielded from the phone survey completed
over a "ee#end period
Stage 3, the final stages of the design, addressed the trac#ing of response rates "here Donatos employed
ongoing telephone trac#ing studies, in restaurant comment cards and e-mails from customers through its
"e'site Jou can as# students to discuss the usefulness of this stage of the research Some may indicate
that for the purposes of future research, Donatos can 'enefit from the findings in terms of strategies that
"ere or "ere not employed, or other data collection techni@ues 0personal intervie"s or mail surveys4 and
sampling methods
2. Evaluate the WASSUP meetings as an exploratory methodology to help define the research question.
&he !$SSUD meetings underta#en 'y Donatos, served as an e%ploratory step to further identifying the dilemma
faced, that 'eing ho" to address increasing interest in lo"-car'ohydrate diets &hese meetings not only
supplemented revie"s done of other sources, namely the feed'ac# via e-mails and monitoring of eating trends, 'ut
it provided additional insight into the dynamics of other social and cultural trends &he )ASS3P meeting is
essential to Donatos, as it is a'le to gather useful information a'out the mar#et from employees, and create a
synthesis of this information to 'est determine ho" its decision "ill affect not only the general pu'lic, 'ut also
persons of different cultures &his feed'ac# from the meeting "ill also 'e helpful "hen tailoring research @uestions,
as through e%ploring #no"ledge from different cultures 0li#es and disli#es4 Donatos can then esta'lish a central
focus and design specific research @uestions Jou can have students suggest possi'le research @uestions that "ould
'e applica'le to the study, "hich Donatos could ta#e to solve the e%isting pro'lem or address concerns a'out the
lo"-car'ohydrate diet mar#et Chapter 9 0)%hi'it 9-3 (ormulating the Research Question for ,ind!riter4 can 'e
used as a guide Donatos may suggest the follo"ing e%amples as research @uestions/
Should "e introduce a ne" piFFa concept to satisfy the lo"-car'ohydrate diet mar#etE
Should the crust-free piFFa concept 'e modifiedE
Should the soy crisp recipe 'e used or should "e introduce another protein rich alternativeE
3. Evaluate the test market Donato`s used. What were its pros and cons?
)valuation of the test mar#et relates "ell to Chapters 1:, "hen discussing the intricacies of sampling and Chapter
11 on )%periments and &est ,ar#ets &his @uestion also 'ecomes useful "hen preparing students for data
collection in research 0Dart 34 and discussing ethical implications involved "hen dealing "ith participants 0Chapter
:4 &he test mar#et 0customer reactions to the product in t"o stores in one mar#et4 used 'y Donatos raises
important relia'ility @uestions
First, one city is rarely used in a test mar#et as researchers have found distinct eating preferences 'y geography
;8
Second, "hile the test "as conducted over several days in the t"o stores, unli#e the introduction of many ne" food
products no promotion "as done to attract customers to the restaurant for the purpose of purchasing the BC
DCU-. piFFa &his might 'e indicative of a sample of customers "ho did not match the profile of the potential
customer/, those individuals follo"ing a lo"-car'ohydrate diet $s the test mar#et continued over time, a screening
@uestion a'out "hether a customer came to Donatos specifically to purchase the BC DCU-. piFFa could have
'een used to distinguish these desired sample units from those "ho "ere li#ely not the primary target mar#et
segment for the lo"-car'ohydrate piFFa
Third, the ideal situation for a true e%periment "ould 'e test products prepared under controlled conditions ,ost
test mar#ets, ho"ever, use actual mar#et conditions "ith limits the availa'ility of control &he case indicates that
1;-16 year old employees "ere preparing the BC DCU-. piFFas that "ere used during the test mar#et5 this "ould
'e typical in most DonatosH restaurants $ discussion of the type of e%periment 'eing conducted is appropriate here
&here are some advantages as "ell as disadvantages that this test mar#et 'rings to the study $s a class activity, you
can as# students to suggest possi'le pros and cons of the test mar#et and instrument used, these may include the
follo"ing/
$n restaurant tests-
Pros:
Reduced research cost 'y virtue of having its o"n current customers as testers
&he a'ility to capitaliFe on a greater speed of data collection
Re@uires less supervision and manpo"er as test "as conducted on site
)liminates the need for higher-cost product-testing facilities
Cons:
!al#-in customers may not 'e representative of the target mar#et for lo"-car'ohydrate piFFa as
piFFa "as not at the time considered a lo"-car'ohydrate option
Call!'ack %hone survey-
Pros:
$llo"s for feed'ac# from a "ide range of customers
Delivery customers may provide useful responses, given that the call must 'e initiated 'y them
$'ility to reach customers "ho other"ise "ould 'e inaccessi'le
Customers can remain anonymous if they choose to e%press negative vie"s a'out the taste of the
piFFa
Cons:
Donatos cannot guarantee that customers "ill 'e "illing to ta#e the time to participate in a call-
'ac# phone survey, thus non-response error could 'e very large
&he study did not indicate some form of incentive for customers, upon ma#ing the call (ailure to
do this may not encourage customers to "ant to participate
Customer-initialed calls create a self-selection sample "hich might not 'e indicative of the desired
sample unit
-iven that intervie"ers are needed to facilitate the survey, Donatos may incur additional costs
"ith this type of instrument
;9
4. What measurement scales would you have used on the survey used as part of the in-restaurant product
tests?
Jou can 'egin 'y discussing the different types of rating and ran#ing scales that may 'e appropriate for the in-
restaurant tests, using )%hi'it 19-8, Sample Rating Scales, as an initial guide Jou can have students de'ate the
usefulness of rating scales, such as the Li#ert or Bumerical scales, "here the li#es and disli#es of a product can
'e easily rated Some may argue that utiliFing ran#ing or paired-comparison scales "ould 'e most effective, as
Donatos could provide other types of piFFas or different lo"-car'ohydrate ingredients and as# customers to
ma#e comparisons and choose their preferences &o 'egin the discussion you can have students 'rainstorm the
different types of piFFas Donatos "ould sell and have them compare the types of ingredients+toppings that
"ould most appeal to lo"-car'ohydrate eaters Jou can also have them rate and+or ran# their suggestions &his
can serve as a preface to discussions relating to ran#ing and rating scales
(or the in-restaurant tests, a numerical scale or Li#ert scale "ould 'e the most appropriate measurement scales
Both "ould allo" participants the opportunity to indicate their Nli#ingO or NpreferenceO attitude to"ard the
product &he Li#ert scale "ould allo" Donatos to compare a customerHs preference to others, "hile the
numerical scale provides the fle%i'ility of using 'oth ordinal and interval data for the purposes of analysis
N*ntention to purchaseO is another dimension that can 'e easily measured 'y the Li#ert or numerical scale
$nother important advantage of the use of these scales is the simplicity involved in administering them
Case% #ealthy *i-estyles
Abstract: &he case provides state 'y state data from the Centers for Disease Control and Drevention?s 0CDC in
$tlanta4 $nnual Behavioral Ris# (actor Surveillance Survey &he student is as#ed to present a summary of the
data
Jou might start the discussion 'y as#ing students ho" their state 0the one in "hich they are currently
residing or the one in "hich their college is located4 fares in the healthy lifestyle race Unless you live in one of the
si% unrecorded states, your students "ill 'e interested in finding out "here your state falls relative to others &he
@uestion helps students to personaliFe the data set, "hich ma#es them more interested in studying the num'ers
&here "ill pro'a'ly 'e at least one surprise in the num'ers, no matter "here you live *f your state is not
listed, choose ,ichigan or Utah Utah falls 'elo" the averages in all categories e%cept seat 'elt use, and ,ichigan
e%ceeds the averages e%cept in seat 'elt use
1. Report any interesting (i.e., unexpected, humorous, or odd) differences between the states.
&here are lots of une%pected results, too Borth and South Da#otans, for instance, don?t seem to li#e to "ear
seat 'elts !isconsin has the highest D!* rate 0'ut, of course, "e don?t #no" "hether this is more drin#ing and
driving or a greater "illingness to admit to this 'ehavior--may'e people from !isconsin are simply more honest
than those in other statesG4 $lso, higher percentages of sedentary respondents in a state tend to relate to lo"er
percentages of 'ingers
2. Devise a weighted index of all seven lifestyle variables. The weighted index is to serve as an overall or
composite measure of health lifestyles. Apply your weight to the states of Minnesota, Florida, and
California as an example of what your weighted index shows.
&his @uestion "ill pro'a'ly create a spirited de'ate &here is no right or "rong ans"er, 'ut can 'e a
marvelous lead-in to "eighted averages 0or, in this case, "eighted proportions4
;3
3. Discuss any noteworthy limitations of the survey or the data set.
Students "ill have to face missing data and "ill 'e frustrated/ the data set clearly indicates missing data for
$las#a, $r#ansas, >ansas, and !yoming, 'ut fails to add the states of Bevada and Be" Aersey to the Smissing
informationS list &he moral of the study--just 'ecause you?ve got a data set doesn?t mean it?s all there
Jour students "ill li#ely have more @uestions than ans"ers 'y the time they finish digging through the data
set (or instance, there is no real clue in the case a'out "hy si% of the states "ere e%cluded, nor if those states "ere
someho" atypical &he !)* varia'le is not "ell defined
&he means and standard deviations are/
SMK WEI SED ACT ALC DWI SEA
,)$B 899:; 883<2 :6<;6 8221 138<2 8611 8<<=
S&D)7 86<1 83=2 ;326 6=; 33:= 181< 186;
,ost of the dotplots tend to 'e fairly symmetric and 'ell shaped in appearance, e%cept for $LC, "hich
loo#s to 'e some"hat 'imodal ,ost of the interesting outcomes are clear from direct state-'y-state compari son of
items in the ra" data
Several interesting correlations arise S,> and !)* are positively correlated 0=39:4 Several of the cor -
relations "ill 'e very difficult to understand5 for e%ample, $C& is the percentage of people indicating no lei sure
time activity Jour students "ill struggle "ith the correlation of -=;;9 'et"een $C& and $LC Before leaving the
classroom discussion, 'e sure that you mention the limitations of loo#ing at correlations among aggregate
@uantities
Case% #ero')ilders+co&
Abstract/ &his case descri'es a study conducted 'y the president of .eroBuilderscom, "hose entrepreneurial Feal
led to the creation of an e-commerce toy company C"ing to the increased demands for the creation of Nhero dolls,O
research "as conducted to ascertain the via'ility of mar#eting action figure dolls to the then competitive
commercial environment
&his case relates "ell to Chapter 1, "here students "ill 'e introduced to the role of research in 'usiness, and ho"
the application of different types of studies aids in furthering effective research strategies *t also e%poses students
to the mechanisms involved in e%ploratory studies and the 'enefits associated "ith its use 0Chapters 9, 6, R <4
1. Which of the four types of studies are presented in this case?
Jou can 'egin 'y discussing the usefulness of 7icaleHs e%ploratory findings and as# students to suggest other types
of e%ploration they "ould pursue 'efore launching such a 'usiness5 and, ho" he 'enefited from completing this
stage of his research Jou can as# students to create a list of the information needs they "ould prepare 'efore
starting an e-commerce 'usiness to sell dolls made in the image of modern day heroes &he most appropriate study,
as presented in this case, is an e%ploratory one .ere the researcher attempts to gain additional insight as to the
via'ility of mar#eting an action figure &his type of study gives the researcher the opportunity to e%plore the
commercial mar#et of action figure dolls to determine the pros and cons of such a venture *t also presents other
prospects "here 7icale choose to conduct @ualitative research, "here he consulted "ith a la"yer to determine the
legal implications involved "ith mar#eting dolls in the image of living heroes or political figures Uncertain of the
potential of starting an action figure 'usiness, 7icale also e%plored retail stores that mar#eted action figure dolls, to
;:
further determine the possi'ility of products gaining distri'ution .ere he 'enefited from #no"ing that an e%tensive
action figure mar#et did e%ist, and identifying the companies involved in the production of action figure dolls
*f you use this case during discussions of Chapters 9 and <, you can also use this @uestion as a preface to
discussions of other data collection methods
2. Evaluate the research that HeroBuilders.com conducted prior to launching its hero and villain action
figures using the criteria in Exhibit 1-8.
&he research conducted 'y .eroBuilderscom prior to launching its hero and villain action figures presents some
limitations 'ased on the criteria listed in the e%hi'it
Purpose clearly defined:
&he purpose of the research "as clearly defined .ere 7icale aimed to e%plore the potential of the action figure
'usiness .o"ever he failed to indicate the scope of the research "ith regard to the creation of villain action
figures &he case indicates that his initial survey of the mar#et primarily involved only hero action figures
Research process detailed:
&he case indicates that 7icale e%plored the e-commerce 'usiness to sell dolls 'y revie"ing the *nternet sites of
other companies involved in the mar#eting of action figure dolls5 he also loo#ed at the retail environment, "here he
further discovered the e%tent of the action figure mar#et *n addition, he sought legal advice to determine the
implications of creating prototypes of political figures &here "as no indication of an intervie" guide or a
@uestionnaire used to guide data collection, nor "as there evidence of an o'servation chec#list used in his discovery
trips to retail toy stores &his is a good time to discuss the inconsistencies that might 'e introduced in research
studiesPeven e%ploratory onesPif the researcher doesnHt have a mechanism for collecting compara'le data Jou
might as# students to develop a list of @uestions that 7icale might have used "hen, for e%ample, he visited the
action figure sections of toy or general merchandise stores
Research design thoroughly planned:
&he research designHs plan also lac#ed important detail *t "as not clear if considera'le thought "as given to ho"
the research "ould 'e e%ecuted 7icale conducted the research himself, "hich raises @uestions as to the o'jectivity
of his results and "hether his personal 'ias did not play a role in its relia'ility &he assessment of the retail
environment 0toy stores4 that he e%plored did not ma#e clear ho" he chose the types of stores visited, "hat process
"as used, or if location "as a factor in his consideration
High ethical standards applied:
-iven that 7icale conducted his research independently provided him much fle%i'ility in e%ecuting this study, it
"ould therefore 'e difficult to determine if high standards of ethics "ere applied
&he case did not indicate "hether 7icale encountered limitations during his e%ploratory research Students should
'e as#ed to detail "hat limitations 7icale might have encountered &hey should have limited difficulty in listing
such limitations as a limited sample of stores that this 'usy e%ecutive might have visited, or the failure to chec# out
different types of stores that also might 'e used for distri'utionPother than toy stores, or his o'vious potential 'ias
to"ard the idea of producing such dolls
.eroBuilderscom proceeded "ith the e-commerce 'usiness of ma#ing action figure dolls, "hich indicates that the
mode of analysis 0not revealed4 applied to the data received may have 'een favora'le .o"ever, given that the
research process "as highly su'jective as it "as carried out 'y the o"ner of the company, coupled "ith the
limitations evident in the research process and design, one may @uestion the conclusions dra"n from this study
;;
Some students #no" instinctively that not all research employs every criteria listed and many studies possess fla"s
although not crippling to the result ,oreover, some researchers may 'e limited 'y cost and time factors that
conse@uently affect the usefulness of their research
3. What other issues other than those Vicale chose to evaluate, would you have included in your research
plan for HeroBuilders.com?
&he decision made 'y 7icale, to capitaliFe on the action figure 'usiness "ith the incorporation of his modern day
hero concept, "as apparently given much thought .o"ever, an across-the-'oard study of the costs involved in
such a venture could have 'een 'eneficial, considering the competitive nature of the e%isting mar#et *n addition to
conducting research on the mar#eta'ility of dolls in the image of heroes, it may also prove helpful to e%plore ho"
the general mar#et "ould respond to dolls patterned after villains such as Csama Bin Laden and Saddam .ussein
Despite the numerous re@uests for villain dolls, this introduction could 'e damaging to the sale of dolls depicted in
a Nhero li#e imageO Considering the delicate nature of 211 issues, patriotic $mericans may find it distasteful that
villain images such as those introduced 'y .eroBuilderscom are mar#eted Despite the apparent profit motive
involved, this mar#et should 'e further e%plored prior to the introduction of such dolls, to evaluate long term
implications
$s outlined, a majority of the responses that 7icale received regarding the creation of the product came from
Nfriends and ac@uaintancesO $s such, it may have 'een "orth"hile to perform a 'roader survey to esta'lish other
mar#eting factors 0eg, ho" much persons "ould 'e "illing to pay for a such a doll, their primary motivation for
purchasing such a figure and for "hom they "ould 'e purchasing the doll, or ho" they "ould li#e to learn a'out
the doll4, 'ut also ho" the general mar#et of doll 'uyers felt a'out villain dolls 7icale could have also ta#en his
research of the retail mar#et a step further 'y e%ploring the cost+profit factors "ith individual stores and "e' sites
that mar#eted action figures and toys
Case% #iTech Engineering
Abstract: &he student is as#ed to evaluate the effectiveness of a variety of promotional approaches
used 'y this designer and manufacturer of industrial products Based on the data, the student is as#ed to
identify the most effective method currently employed or a com'ination of approaches
1. What is the most effective type of advertising for HEI to undertake? Do you have any
recommendations on the appropriate mix of the five different types of advertising?
&he ans"er to the promotional method evaluation depends on ho" students interpret the "ord
effective *f the goal is to find the media "ith the highest average num'er of responses 0leads4, then
postcards are the "ay to go *f the goal is to minimiFe costs per response generated, then ne"s releases,
postcards, and literature all appear to 'e via'le
$ nice lead-in to the discussion of this case is to as#/ S!hat do you thin# management had in mind
"hen they used the "ord effective, and ho" did your interpretation factor into your analysisES Let the
students discuss the issue of responses versus cost per response
$t some point, lead the discussion to"ard via'ility of $BC7$ "ith une@ual variances $s# at
some point "hether there are any pro'lems "ith the data 0Dostcards have three Fero values, "hich is
unusual given the apparent effectiveness of postcards Cne might suspect that these "ere actually missing
o'servations replaced "ith Feroes in the coding of the data set4 $s# ho" these pro'lems did, or should
have, influenced the chosen statistical methodology
;6
*t is crucial to mention that these data may not ans"er the real @uestion that should 'e as#ed--ho"
many dollars in sales, not just leads, are 'eing derived from .i&ech?s advertising e%pendituresE !hile
personal selling is a #ey promotional method for most industrial products, and the success of various sales
representatives differ, the degree to "hich SleadsS generated 'y a particular advertising approach is not
addressed 'y the data
Results are suspect for several reasons 7ariances are une@ual 'et"een groups and some of the data
might 'e "rong &hese issues can generate lively classroom discussions $ very important point a'out this
case, "hich only a fe" of your students "ill identify, is that the data set doesn?t really ans"er the critical
@uestion &he 'ottom line to management is "hether spending translates into sales, not just re@uests for
more information &his issue cannot 'e addressed "ith the given data set &he data set is also amena'le to
$BCC7$ methods
Typical Results and Approaches
$BC7$ rejects e@ual means for 'oth R)SDCBS) and U+L)$D 0a generated varia'le defined to 'e
SD)BD+R)SDCBS)4 $verage R)SDCBS) is greatest for postcards, and average U+L)$D is lo"est for
postcards, ne"s releases, and literature, as illustrated 'y the printouts that follo"
Analysis of Variance Printout for RESPONSE
,-,./S0S 12 3,R0,-CE 1- RESP1-SE
S1URCE (2 SS 4S 2 $
4E(0, 4 1!!#16 4142" 3#&4 0&000
ERR1R !0 1063246 132"1
515,. !4 2"4!"62
0-(030(U,. "# PC5 C06S 21R 4E,-
7,SE( 1- P11.E( S5(E3
.E3E. - 4E,- S5(E3 -+---------+---------+---------+-----
4,8S 1 4&4 34& (---9---)
P1S5 1 44#&" 23"&3 (---9--)
E(05 1 46&0 2!& (---9---)
-E:S 1 "4&6 43& (--9---)
.05 1 !!&! 2&# (---9---)
-+---------+---------+---------+-----
P11.E( S5(E3 ; 11#&3 0 1#0 300 4#0
Case% In2)iring ;inds Want to !no"@No"A
Abstract/ &his case descri'es a multi-stage, communication study underta#en 'y the research department
of Denton ,edia, a pu'lisher of 'usiness trade magaFines, to determine the long-term via'ility of a reader
and advertiser service, the reader service card, a post-card siFed device used 'y readers to re@uest
additional information from a particular advertiser
&he discussion @uestions guide the student through the research process $s such, the case may 'e used throughout
the course@especially through Chapter 13@simply 'y assigning different discussion @uestions as e%ercises during
different points in the course
1 !e suggest using )%hi'it 9-8 for this discussion5 it is helpful if you can project the graphic on the screen in
front of the class
;<
$ &he management dilemma is a declining num'er of reader service cards returned "hich is causing a
smaller num'er of in@uiries and thus a smaller num'er of sales leads for Denton advertisers Students
"on?t have too much difficulty in identifying the management dilemma, 'ut you might use this
opportunity to discuss that research can 'e proactivePactually preceding the development of a pro'lem
*f Denton sa" this as a value enhancing service for advertisers, shouldn?t they have 'een trac#ing the
change in rate of response card return at the very leastE Denton also should have 'een trac#ing
advertisers? continued interest in the reader service card program--after all, the reader service card
program has a cost associated "ith each issue 0card printing, return postage, and card handling and
for"arding4 that needs to 'e offset 'y perceived value on the part of the advertiser Students are usually
@uic# to point out that advertisers don?t al"ays trac# the success of their advertising 0not as true an
o'servation for 'usiness-to-'usiness advertising as it is for consumer advertising4 'ecause not all
advertising as#s for a specific action But in the case of advertising designed to generate leads, Denton
clearly had the a'ility to trac# reader service card activity 0a research activity in its o"n right4
B ,anagement @uestion/ !hat should 'e done to ensure that advertisers and readers ali#e are getting the
information they need and "antE
C Research Question/ Should the reader service card program 'e maintained, discontinued or modifiedE
Rather than three alternatives, Denton may have only loo#ed at maintaining or discontinuing the reader
service card Bothing in the @uestionnaire indicates that they "ere e%ploring other unspecified options
D *nvestigative @uestions/ !hat means do advertisers offer to o'tain information a'out advertisers?
products and servicesE !hat influences a trade magaFine reader in their choice of response methodE
!hat types of information are most fre@uently soughtE !hat is the time frame in "hich information is
neededE Do purchasing agents have different needs than supervisorsE .o" many advertisers offer "e'
access to informationE .o" many readers use company "e' sites for informationE $re readers changing
their methods of response in the last : yearsE :-1= yearsE Do shifts in response methods parallel the
decline in reader service card returnsE Does a reader?s gender, age, or jo' e%perience affect their choice
of information retrieval methodE &o "hat degree do advertisers value the reader service card programE
) ,easurement @uestions/ see instrument in te%t
8 Using )%hi'it :-1 is appropriate for this e%ercise Since Denton is conducting this research internally, most of
the sponsor?s rights are covered Su'ject?s rights are much 'igger issues here
$voiding Su'ject Deception/ Su'jects are all su'scri'ers to Denton?s trade magaFines, and the names are
dra"n from the magaFine?s su'scri'er lists 0the sample frame4 &he cover letter states that the study is
'eing conducted to help Scompanies 'etter understand and respond to your re@uest for informationS !hile
it doesn?t clearly state the reader service card is 'eing considered for elimination, modification or
replacement, any reader "ho has 'een reading the magaFine for any length of time "ill #no" that the
reader service card is one response option li#ely to 'e evaluated &his small deception is unli#ely to offend
or distort data from a reader responding to the survey
Su'ject?s right of informed consent 0implied4/ &he cover letter invites readers to participate, so they have
the right to choose
Students may "ant to discuss the right of privacy, 'elieving that the magaFine has used information
e%tracted from reader service cards and su'scri'er records in "ays that the reader never intended
Su'ject?s right to confidentiality Denton offered an inducement--a dra"ing for a hand-held color &7--to
participate, 'ut that is not li#ely to alter the information that respondents are "illing to share But to o'tain
that entry right, the respondent must provide their contact information 0S&o ensure a correct entry in the
random dra"ing for the held-held color &7, please ma#e and necessary changes to your mailing la'elS4,
"hich affects their right of confidentiality
9 &he sampling plan called for using the su'scri'er data'ase 016 million4 as the sample frame &he case clearly
specifies that they used a stratified disproportionate random sample, sending out 3=== surveys to o'tain the 61=
completed surveys of "hich ;6; "ere considered usea'le 0came from purchasing decision-ma#ers4 Jou can
;2
also discuss the sampling plan for the stage 8 study of ad content $nd students might "ant to discuss "hy they
didn?t dra" a sample of advertisers to participate in a parallel study
*n terms of sample siFe, Denton mailed 3=== magaFine su'scri'ers and received ;6; usa'le out of 61=
completed survey Denton chose a stratified sample in order to chec# response patterns in different su'sets 038
in all4 of the 'usiness-to-'usiness mar#et Jou can use this opportunity to discuss several sampling issues/
&he effect of such stratification on sample siFe
&he effects of self-selection "ithin a mail survey on the @uality of the data 0and non-response error4
&he importance of data preparation and "hy certain returned surveys may not 'e used *n Denton?s case, the
discarded instruments "ere not completed 'y purchase decision-ma#ers, the only @ualified respondent from
the vie"point of the advertisers
&he effect of error as it is introduced 'y the @uality of the sample frame
3 Denton had started their project "ith e%ploratory research that revealed that advertisers perceived they "ere
getting fe"er via'le sales leads "ith the advertising in 122< than they "ere in earlier years Denton could have
'een conducting monitoring research "ith their advertisers or might have 'een receiving increasing complaints
or comments in normal dealings "ith them
Stage 8 involved an o'servation study of 199= past advertising placed in Denton magaFines in t"o years,
1228 0;3<4 and 1226 0;2=4 &his did sho" a change in advertiser 'ehavior !hat "as missing at this stage
"as an indication of change in respondent in@uiry 'ehavior &his "ould lead us to 'elieve that as Denton
did not data mine for this information, that it "as not trac#ing the ads that generated response card
in@uiries .aving the response cards in their possession it "ould have 'een @uite easy to do a tally on a
periodic 'asis for each issue?s reader service cards
Stage 9 involved a mail survey of su'scri'ers, "hich involved an inducement to participate--a hand-held,
color television givea"ay &he mail survey "as pretested in t"o "ays/ 'y phone, and then 'y mail &his is
a perfect time to discuss/
7arious types of pretesting using )%hi'its 13-3 and 13-2
!hy the mail survey "as tested t"ice
!hy a mail survey "as preliminarily tested 'y a means other than that chosen for the survey itself
!hen such inducements might cause error, "hen they might inject ethical issues, and "hat typical
inducements are used/ money, merchandise, and coupons for discounts are common
Stage 3 involved 3= personal intervie"s Sto gain a deeper understanding of their 'ehavior and attitudesS
&his is the perfect time to discuss the limitations of a survey for collecting the nuances of attitudes, and the
strengths of the personal intervie" communication methodology
: &he easiest "ay to conduct this e%ercise is for the students, armed "ith the issues list from their te%t, to
criti@ue the data collection instrument as an out-of-class assignment Jou could have them criti@ue the
"hole instrument, or you might divide the class up into teams, "ith several teams dealing "ith a @uestion-
level criti@ue and others dealing "ith the instrument as a "hole &he follo"ing chec#list might 'e used for
such a criti@ue
Question Level Criti@ue
Should this @uestion 'e as#edE
*ssue 1/ Durposeful vs *nteresting

*s the @uestion of proper scope and coverageE
*ssue 8/ *ncomplete or unfocused

*ssue 9/ ,ultiple Questions

6=
*ssue 3/ Drecision

Can the respondent ans"er ade@uatelyE
*ssue :/ &ime for thought

*ssue ;/ participation at e%pense of accuracy

*ssue 6/ presumed #no"ledge

*ssue </ Recall and memory decay

*ssue 2/ Balance 0general vs specific4

*ssue 1=/ C'jectivity

!ill the respondents ans"er "illingly
*ssue 11/ Sensitive information

*ssue 18/ Shared voca'ulary

*ssue 19/ Unsupported $ssumptions

*ssue 13/ (rame of Reference

*ssue 1:/ Biased !ording

*ssue 1;/ DersonaliFation

*ssue 16/ $de@uate $ns"ers

*ssue 1</ C'jective of the Study

*ssue 12/ &horoughness of Drior &hought

*ssue 8=/ Communication S#ill

*ssue 81/ Respondent ,otivation

*nstrument Level Criti@ue
*ntroduction R screening

*nstructions

Crder+@uestion se@uencing

&ransitions 'et"een sections

Conclusion R disposition of instrument

On an instrument level, students should compare their investigative @uestions developed in discussion
@uestion 1 to identify "hether the 'oundaries of information re@uest methodologies have 'een ade@uately
covered *t appears the researcher "as very thorough in this regard $lthough the layout has 'een modified to
fit the page format of the te%t, students should loo# at the layout of the instrument in terms of structure &he
layout of the scaled response strategy is clear, and @uestions clearly delineate 0'old te%t4 the time frame of the
intention or actual 'ehavior
Students should 'e as#ed to address the instrument?s scope/ Does it include all necessary @uestionsE $re
@uestions included that seem e%traneousE Student?s might o'serve that the instrument scope goes farther than
might 'e technically necessary 'y as#ing the desired information response that advertiser?s could provide &his
@uestion 094 fulfills the S"hat?s in it for meES @uery that most respondents as# prior to participating in a survey
$s a result, it might 'e 'etter placed earlier in the instrument Cthers might as# "hy the respondent is not as#ed
directly ho" they "ould feel a'out eliminating the reader service card6
&his is the opportune time to as# "hether the communication method 0mail4 "ould have re@uired a different
order or instructions if the survey had 'een done 'y phone !hile early placement of the screening @uestion 014
"ould serve a purpose in a telephone survey, in this instrument it serves as classification data and could 'etter
'e placed in the end $lso, an intervie"er instruction sheet, for repeating response scales, offering s#ip
directions, pro'ing for reasons for chosen method of response "ould 'e necessary if the survey "as done 'y
phone
61
Concerning instructions and transitions, if a respondent "ere to chec# the 3
th
column in @uestion 3 for every
option, it doesn?t tell them to discontinue S#ip directions also could have 'een offered in @uestion ;a, to allo"
the respondent to s#ip @uestion ;' Students should 'e as#ed a'out the a'rupt change 'et"een the core target
@uestions and the classification @uestions &he purpose of a 'etter transition 'et"een the target @uestions and
the classification @uestions is to indicate "hy or ho" the personal information "ill 'e used, in order to gain full
participation in these @uestions used for measuring association &his instrument loses that opportunity 'y its
a'rupt transition
(inally the students should discuss the end of the survey Both a conclusion and disposition instructions should
follo" the last @uestion, telling the respondent, again, to return the completed survey in the postage-paid
envelope and than#ing them for their participation *t "ouldn?t hurt to repeat the re@uest to correct the address
la'el to insure an ade@uate entry for the television dra"ing &he information that is captured "ith the
respondent?s identify "ill provide other crucial association varia'les
At the question level, as# your students if they feel the chosen response strategies 0multiple choice-single
response, chec#list, free-response4 are appropriate, and "hy or "hy not $dditionally, as# your students if any
operational definitions are missing Some students, for e%ample, may not #no" "hat ?fa%-on-demand? is Jou
might as# them to come up "ith operational definitions for those terms they feel the respondent might not #no"
or "hich might cause confusion Students should 'e a'le to determine if the correct concept and construct has
'een measured in each @uestion 0increase7decrease in activity for @uestion 3, use7e5%ected use of *nternet in
@uestion 6, etc4
; .ave your students code the survey for analysis, identifying the num'er of varia'les, the numerical codes
for each li#ely response, and the varia'le la'els &his is also a great opportunity for discussing the coding
of free response @uestions as @uestions 8, 3', :a, :', 6', 1=, and 11 use the free response strategy
Q # V Data Q #V Data Q # V Data Q #V Data
1 6 Bominal 3' 1: Crdinal ;' 1 Bominal 2 1 Bominal
8 3: Bominal :a 1 Bomina
l
6a < Bominal 1= 1 Ratio
9 1; Crdinal :' Bomina
l
6' < Bominal 11 1 Ratio
3a 1: Crdinal ;a 1 Bomina
l
< 1 Bominal
6 &his @uestion as#s the student to 'uild a preliminary analysis plan then fulfill it *t also allo"s you to
discuss "hether it is the researcher?s role to provide a recommendation or merely to report the findings
Jou can also use this @uestion to compare te%tual presentation 0as is used 'y the case4 "ith ta'ular and
graphical formats (inally, as# this @uestion to determine "hat should 'e done "ith those original 38
su'sets of interest, and "hat might have 'een used as the factor of incidence for this study Jou might "ant
to as# students to prepare 'oth ta'ular and graphic depictions of the data and compare the results !ithout a
direct @uestion a'out eliminating the reader service card any recommendation is pro'lematic given the
data presented .o"ever, one statistic "ill stand out as revealing to the student/ 'et"een ;2-61M responded
'y mail during the last year "hen they didn?t have an immediate need &his might e%plain "hy advertisers
don?t perceive reader service card respondents as good sales leads--these in@uires may 'e primarily from
potential purchasers "hose need is not clearly defined or "hose purchase is too far into the future to
connect "ith that early reader service card in@uiry *s this enough to ma#e a Scontinue the reader service
card? recommendationE See 'elo"
68
< )very survey has limitations 'ased on scope and methodology &his is a perfect time to discuss sources of
error in this survey &he limitation of most concern is the non-response error &hat same 61M "ho had used
a reader service card in the past year loo#s very different "hen you loo# at the total original mailing &he
323 respondents translates to only 189M of the original sample 61= of the original 3=== respondent,
166:M Cne could hypothesiFe that those "ho did not respond feel that they have sufficient "ays to reach
advertisers a'out their products or services, therefore they are not interested in preserving one method
versus another Could those "ho responded have some ulterior motive for "anting to #eep the reader
service cardE Jou should also raise the concern a'out "eighting the responses 'ased on the
disproportionate stratified sample that "as dra"n Does this create or solve a limitationE
2 $s# your students if a decision could 'e made 'ased on the information provided &his is an opportunity to
discuss the ris# associated "ith decision ma#ing in the a'sence of perfect information and the value of a
decision Denton o'viously thought there "as some ris# to this decision or they "ouldn?t have underta#en
such a comprehensive study Some students might suggest an e%periment at this point Create a split run of
an upcoming issue, one group gets ads tied to a reader service card "hile a second group gets ads not tied
to a reader service card Be sure to 'ring out additional cost 0t"o different ads created for each advertiser,
shorter production runs, more time 'efore ma#ing a decision on the issue at hand4 of this e%periment during
the discussion Cther students might suggest trac#ing the returned reader service card use during the ne%t
several months 0another descriptive study4 Cthers could argue that the appropriate sample for the original
study "as incorrect, that it should have 'een advertisers5 if advertisers thought the reader service card "as
no longer of value, then, and only then, should the device 'e eliminated
Case% ;astering Teacher *eadership
Abstract/ $ multi-stage, communication study of teachers 'y !itten'erg University?s Department of )ducation to
determine the via'ility of starting a ,aster of )ducation program for Chio-certified teachers "or#ing "ithin school
districts serving a five-county area
&he discussion @uestions guide the student through the research process $s such, the case may 'e used throughout the
course@especially through case 1:@simply 'y assigning different discussion @uestions as e%ercises during different
points in the course !ith the comprehensive data set availa'le on the CD, this case can also 'e used for the data
analysis chapters
Bot all research projects are "ell designed, and this one has some very o'vious fla"s that "ill 'e revealed during the
discussion of the seven discussion @uestions &his is a good case to use to discuss "hether @uestiona'le data helps
reduce the ris# of poor decision ma#ing Jou can also tie this case 'ac# to the concerns in Chapter 1 a'out research
'eing done 'y those untrained in research &hose in charge of this project "ere all highly educated, and they had 'een
schooled in their doctoral programs to do research for their dissertations But they "ere clearly not trained in 'usiness
research methods as the research design, sampling and survey instrument demonstrate
: !e suggest using )%hi'it 9-8 for this discussion, 'y projecting the graphic on the screen in front of the class
,anagement dilemma/ &his is research 'ased on an opportunity rather than a pro'lem, so the symptom
"hich starts this research is the passage of a la" 'y the State of Chio that re@uires teachers to o'tain a
master of education degree prior to their second licensure rene"al 'et"een years : and 6
,anagement @uestion/ !hat should 'e !itten'erg?s role in meeting teacher certification re@uirementsE
&he survey straddles the issue of professional development course"or# vs master of education degree
course"or#
Research @uestion/ Should !itten'erg offer a ,aster of $rts degree in )ducationE
69
*nvestigative @uestions/ .ere are some @uestions your students should generate .o" many teachers "ill
need to o'tain a ,aster of $rts degree to 'ecome re-certified "ithin the ne%t five yearsE !hat do teachers
see# in professional development programs in general and "hat "ould they see# in a masters programE
.o" many teachers "ill pursue a ,asters degreeE .o" li#ely "ould these teachers 'e to attend
!itten'ergE .o" many teachers are currently enrolled in masters programsE !hy did they choose the
programs they didE .o" many teachers are in the mar#et area, especially Clar# CountyE !hen "ould
teachers 'e li#ely to ta#e coursesE .o" far "ill they drive to ta#e coursesE !hat are the price, structure,
and content of competitive schools? ,aster of $rts in education programsE .o" many teachers might leave
the profession 0or Chio4 rather than comply "ith the ne" standardsE
,easurement @uestions/ see survey
; &his @uestion is designed to reveal the purpose and methodology for the e%ploratory data stage of most research
projects &his @uestion can 'e used "ith material from Chapter 6, especially )%hi'its 6-1 and 6-8 Jou might first
as# students to detail "hich information from their list of investigative @uestions 0Q 1 a'ove4 might 'e e%tracted
from a secondary source &hen you might as#/ !hat information dra"n from a secondary source is profiled "ithin
the caseE .o" and "here+from "hom might that information have 'een collectedE Jou also might as# students to
apply the five criteria for evaluation 0purpose, scope, authority, audience and format4 to each element of secondary
data and its source $nd you could as# students to construct @uery statements to do an electronic search for li#ely
secondary data during this e%ploratory phase of research (inally you can as# students to summariFe the e%ploratory
findings
*nformation !ittCDD collected and profiled in the case came from the follo"ing sources/
!e'sites and catalogs provided competitor information on num'er, structure, format, and content of
,aster of $rts programs in education
&he school 'oards representing the various school districts in the mar#et area provided turnover and hiring
information
&he Chio Board of Regents and the Chio Department of )ducation provided documents detailing the ne"
teacher certification standards
Student teacher evaluation forms collected during the 122=s provided teacher attitudes a'out @uality of
!itten'erg?s undergraduate teacher preparation
6 !ittCDD o'tained a mailing list of all 1;== teachers in the county--li#ely from the various school 'oards (irst,
students should evaluate the sample frame &here is no mention in the case that this sample frame grouped the
teachers 'y age, years of teaching e%perience, area of e%pertise, or any other classification varia'le that "as
pertinent to the study 'ased on the ne" teacher certification standards
Jou may use the ta'ular )%hi'it 1:-1 for this discussion )ach teacher received a survey, so in essence !ittCDD
allo"ed each teacher to self-select themselves into the sample rather than designing a sampling plan &his is a good
place to discuss census vs sample Students should then 'e as#ed to define the type of sample !ittCDD o'tained
Some "ill argue that the results are a simple random pro'a'ility sample 'ecause every teacher had an e@ual chance
of 'eing included in the sample Cthers "ill argue that !ittCDD started out ta#ing a census 'ut didn?t follo"
through and "hat is left is no 'etter than a non-pro'a'ility convenience sample at "orst, or a purposive judgment
sample at 'est *f "e loo# at one measure of sample @uality, accuracy, the very large non-response error ma#es us
@uestion this sample?s accuracy Some students may argue that !ittCDD used Scurrent teachersS as a surrogate for
teachers "ho "ill really 'e affected 'y the ne" standards &eachers "ho "ill 'e affected "ill 'e first certified in or
after 8==8 ,ost of those plan-to-'e teachers "ould have not yet enrolled in an undergraduate program
< &his @uestion uses the chapters on measurement, scaling, and instrument structure
63
$ &he cover letter clearly states the t"o-fold purpose of the study, 'ut it could have 'een "ritten from a different
perspective--the teachers *f so, the letter could have alluded to the ne" state re@uirements and !itten'erg?s
assessing their role in helping area teachers comply Several of the students "ill challenge the use of
classification data at the 'eginning of the instrument, especially if one purpose of the early @uestions is to 'uild
interest and motivation to respond to the target @uestions *f !ittCDD had used @uestion 9 to screen
respondents that "ould have no interest in a masters 'ecause they already possessed one, it "ould ma#e sense
to have classification @uestions early But, as the a'sence of 'ranching or s#ip directions indicates, this "as not
done
Students should assess the length of the instrument &he actual layout of the instrument too# 9 pages, "hich on
receipt might have appeared e%cessive $s# your students to SpretestS the length of the instrument and
determine "hether the cover letter "as sufficient to encourage participation in an instrument of that length Bo
transition appears 'et"een classification and target @uestions, 'ut the survey does have a conclusion and
disposition directions &he ran#ing @uestions do possess sufficient directions

B !ith reference to response strategy appropriateness, numerical ran#ing, multiple choice-single response, and
chec#list strategies are all appropriate for the data they "anted But clearer instructions 0chec# one only4 could
have 'een provided for @uestion 19 Changing constructs "ithin a @uestion are trou'lesome 0eg @uestion ;
as#s a'out enroll, 'ut responses offer the construct apply4
Clearly !ittCDD is concerned a'out the mar#et?s perception of price as 'eing too e%pensive Students might
raise the issue of "hether discounting cost as an issue 0@uestions :, ;4 the designer further elevated the issue
*n ran#ing @uestions, three is an accepta'le level *t might have helped if the teacher had 'een as#ed to put all 6
elements on a ran#ing @uestion--"ithout including the other to muddy the understanding
-iven the space, @uestion 2 "ould 'e more informative as a rating scale that a chec#list !e don?t #no" ho"
trou'lesome each chec#ed item might 'e
2 Data coding can 'e part of this e%ercise, at least to the point of identifying the num'er of varia'les related to each
@uestion in the instrument Cf course, savvy students could go to the data set and count the num'er of varia'les 06;,
ignoring C$S)4
)%hi'it C-!ittCDD-1 provides the actual code sheet for the survey !ithout this your students must guess at the
varia'les in the dataset
&he preliminary analysis plan should start "ith descriptive statistics/ fre@uencies "ith cross-ta'luations against the
varia'les in @uestions 1-9, as most of the data is nominal or ordinal &here might 'e enough information from the
various school 'oards to determine if the sample is representative or if the fre@uencies of some su'groups need to
'e "eighted more than others in loo#ing at the total data set &he student?s preliminary plan should detail ho"
missing data "ill 'e handled "ith internal coding C'viously some su'sets of the sample 0those "ithout the ,asters
degree, those "ith fe" years of service4 "ould 'e of more interest than others
1= Students "ill see the real-life application "hen analyFing a real data set, even one "ith some @uestiona'le data
&his is good preparation for analysis of their o"n data, and "ill point out the pro'lems "ith preliminary analysis
plans &his is a good e%ercise for interpreting hypothesis statistics, too, and to demonstrate that a researcher can
cran# out any statistic they desire 'ut that some are not relevant to the data type provided
11 Because they started "ith a geographic varia'le 0address4, and 'ecause respondents have 'een as#ed to provide
their names and addresses if they "ant more information, mapping data using -eographic *nformation System
6:
0-*S4 soft"are is possi'le Because various service divisions of the City of Springfield have done several -*S
projects "ith the University, -*S codes for every address in the county are readily availa'le So a plot of those "ho
have no degree yet sho" a high level of interest 'y giving their name and address "ould 'e possi'le Using the -*S
'loc# codes for those people and referencing it "ith the location of teachers "ith similar patterns might give
!ittCDD information that could 'e used for promoting the ne" program, if they decide to move for"ard Jou
might assign students to chec# for current status of the project at/
http/++""":"itten'ergedu+academics+educ+mastershtml
Exhibit C-WittCPD-1: Variable and Value Codes for WittMasters.xls
1 Counting this year, ho" many years have you taughtE 07\Q14
\1 =-: years \8 ;-1= years \9 11-1: years \3 1;-12 years \: 8= or more years
8 Drofessional Responsi'ility and Su'ject (ield Chec# all that apply
Grade Level (VQ2GRADE) Subject Area 0internal code 1\chec#ed, 8\no
chec#ed4
Dreschool to -rade three \1 $rt 07\Q8Q1SUB4 ,usic 07\Q8Q;UB4
-rade four to -rade eight \8 Business+)conomics
07\Q8Q8SUB4
D)+.ealth
07\Q8Q6UB4
-rade nine to 18 \9 )nglish 07\Q8Q9UB4 Social
Studies07\Q8Q<SUB4
Special )ducation \3 Languages 07\Q8Q3UB4 Science
07\Q8Q2SUB4
$dministration \: ,athematics 07\Q8Q:UB4 Cther
QQQQQQQQQQQQQQQQQQQQ
Cther/ \;QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
9 .ighest level of education o'tained Dlease select one from the list 'elo"
07\Q9, internal code/ 1\chec#ed, 8\not chec#ed4
Less than a B$+BS B$+BS
B$+BS plus graduate "or# Currently in ,$+,S program
,$+,S DhD or currently enrolled in DhD program
,$+,S plus additional graduate
"or#
*f you are currently enrolled in a graduate program, "hich college or university are you attendingE
QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
3 !hich of the follo"ing @ualities are most important to you in a graduate programE 0Dlease ran# the top three
@ualities "ith S1S 'eing of most importance, andS8S 'eing of ne%t most importance, etc4 07alue codes internal
code/ 1\chec#ed, 8\not chec#ed4
QQQQ Reputation 07\Q3Q14 QQQQ Quality of *nstruction 07\Q3Q34 QQQQ Class SiFe 07\Q3Q;4
QQQQ Schedule (le%i'ility 07\Q3Q84
QQQQ Cost 07\Q3Q94
QQQQ Closeness to home 07\Q3Q:4
QQQQ Cther 07\Q3Q<4
QQQQ *ndividual $ttention
07\Q3Q64
: *f costs "ere #ept competitive, ho" li#ely "ould you 'e to apply to a master?s degree program in education at
!itten'ergE QQQQ Cther 07\Q:4
6;
\1 definitely "ould apply \8 might apply \9 "ould not apply
; *f costs "ere #ept competitive, ho" li#ely "ould you 'e to enroll in graduate courses at !itten'erg to enhance
s#ills "ithout pursuing a master?s degreeE 07\Q;4
\1 definitely "ould apply \8 might apply \9 "ould not apply
6 Dlease indicate the three most important reasons for your interest in graduate education at !itten'erg, "ith S1S
'eing your most important reason, S8S your ne%t most important reason, etc 07alue code is actual ran#4
QQDrofessional re@uirements 07\Q6Q14 QQQQ *ncreased employa'ility 07\Q6Q;4
QQDrofessional advancement 07\Q6Q84 QQQQ $dditional money 07\Q6Q64
QQDersonal satisfaction 07\Q6Q94 QQQQ >eep certification 07\Q6Q<4
QQ (uture re@uirement 07\Q6Q34 QQQQ Upgrade certification 07\Q6Q24
QQ Career change 07\Q6Q:4 QQQQ *mproving s#ills 07\Q6Q1=4
Cther/ 07\Q6Q114QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
< Dlease chec# the t"o most important reasons for your lac# of interest in graduate education at !itten'ergE
07alue code is actual ran#4
QQQQ Cost 07\Q<Q14 QQQQ Live too far a"ay 07\Q<Q:4
QQQQ (amily Responsi'ilities 07\Q<Q84 QQQQ &oo near retirement 07\Q<Q;4
QQQQ &ime to complete the degree 07\Q<Q94 QQQQ Lac# of information 07\Q<Q64
QQQQ Drofessional Commitments 07\Q<Q34 QQQQ $lready have a master?s degree 07\Q<Q<4
QQQQ )nrolled in master?s program 07\Q<Q24
Cther/ 07\Q<Q1=4QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
2 Dlease indicate from the list 'elo" "hich of the follo"ing might 'e anticipated as an o'stacle to your enrolling in
a masterHs level or graduate classes at !itten'ergE 07alue code/ 1\chec#ed, 8\not chec#ed4
QQQQ Child+)lder Care 07\Q2Q14 QQQQ &ravel 07\Q2Q34
QQQQ (inancial Beed 07\Q2Q84 QQQQ )mployment Schedule 07\Q2Q:4
QQQQ (amily Commitments 07\Q2Q94
Cther/ 07\Q2Q14QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
1= !hat professional development areas most interest youE Dlease ran# the top three professional development areas
that interest you, "ith S1S 'eing your are of strongest interest, S8S 'eing your area of ne%t strongest interest, etc
07alue code/ 1\chec#ed, 8\not chec#ed4
QQ )nhancing su'ject matter #no"ledge 07\Q1=Q14 QQ &eaching $rts 07\Q1=Q<4
QQ Using &echnology in the classroom 07\Q1=Q84 QQ &eaching Social Studies 07\Q1=Q24
QQ Child development 07\Q1=Q94 QQ &eaching )nglish+Language $rts 07\Q1=Q1=4
QQ &eaching reading+"riting 07\Q1=Q34 QQ &eaching ,ath 07\Q1=Q114
QQ Specific learning disa'ilities 07\Q1=Q:4 QQ &eaching Science 07\Q1=Q184
QQ &eacher Leadership Development 07\Q1=Q;4 QQ Ur'an Social Bac#grounds 07\Q1=Q194
QQ Developing social s#ills in students 07\Q1=Q64 QQ ,oral and Character Development 07\Q1=Q134
Cther/ 07\Q1=Q1:4QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
11 .o" far "ould you have to drive to attend &CE 07\Q114
\1 under 1= minutes \8 1=-8= minutes \9 81-9= minutes
66
\3 91-3: minutes \: 3;-;= minutes \; more than ;= minutes
18 !hen during the year "ould you 'e a'le to ta#e graduate coursesE 0Chec# all that apply4
(all 0$ug - Dec4 07\Q18Q14 Spring 0Aan - $pril4 07\Q18Q84 Summer 0,ay - Auly4 07\Q18Q94
19 !hich day and time scheduling option 'elo" most appeals to youE 07alue codes/ 1\chec#ed, 8\not chec#ed4
07\Q19Q14 (all through Spring/ Day 0</== am - 3/== pm4
07\Q19Q84 (all through Spring/ Late $fternoon 03/== pm - ;/== pm4
07\Q19Q94 (all through Spring/ )vening 0;/== pm - 1=/== pm4
07\Q19Q34 (all through Spring/ Saturday
07\Q19Q:4 Summer Day 0</== am - 3/== pm4
07\Q19Q;4 Summer )vening/ 0;/== pm - 1=/== pm4
*f you "ould li#e to receive more information a'out graduate programming in education at &C, please put your
name and mailing address 'elo"
Bame/ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
$ddress/ QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ
&han# you for your time and assistance Dlease return the survey in the postage-paid envelope 'y ,arch 8=
Case% ;atching Wits "ith 4ason on Sa&pling Theory
Abstract/ &his case ta#es the format of a de'ate 'et"een researcher Aason .enry and the ne" mar#et
development 7D of a 'an#, Aasmine SAaFFS Rogers &hey are discussing the appropriate sample siFe for a study
re@uired 'y the 'an# of small 'usiness applying for a loan to e%pand its operations &he student is as#ed to
anticipate sampling decisions and e%plain the rationale for each sampling decision
&his case is a perfect opportunity for students to delve into sampling theory, including 14 "hen the various formula
are used, 84 the concept of incidence and ho" it affects sample siFe, 94 the role of pilot samples to determine
incidence measures 0or "hat to use "hen no such measures e%ist4, 34 the effect of small population siFes "hen
dra"ing pro'a'ility samples, and :4 ho" data collection procedures, li#e call'ac#s, affect sample siFe
Jou might assign this case as an in-class e%ercise, dividing the class into teams "ith one set of teams playing
Aason?s role, "ith the second set of teams playing the role of AaFF )ach team could 'e as#ed to "rite the dialog of
their character at the appropriate place in the story or list the points that their character must ma#e to "in the
de'ate
Belo" each challenge "e?ve included the dialog that might actually follo" each de'ate challenge, as "ell as "hat
you might e%pect the students to argue
1 Well, we've set the stage for you. Now see if you can anticipate how 1ason will convince 1azz to accept a
small sample rather than a larger sized sample she obviously has in mind. Assume 1ason wants to win
this battle of wits. What would he argue?
6<
&he students? natural inclination "ill 'e to 'ring up the idea of sample siFe 'eing calculated using ar'itrary
decisions a'out desired confidence level and precision 0accepta'le confidence interval around the sample
estimate4
-iven the nature of the study 'eing discussed, a portion of the students? dialog should focus on a li#ely
incidence factor Since the Chevron manager, $udrey, "ants to e%pand station hours and stay open from :
am to midnight, a logical factor of incidence "ill li#ely 'e "or#-related 0eg, M of residents "ho go to
and from "or# 'efore ; am or after 2 pm, assumed current hours4 or lifestyle-related 0eg, M of residents
that currently purchase car-care services at times other than ;-2, or M of residents "ho drive for pleasure
reasons 'efore ; am or after 2 pm4
After the discussion and sharing of ideas, share the following story continuation with your students:
4ason% N&hen let me try &a#e the first @uestion you "ant K$re you currently retired from "or#EH &his
is "hat "e call a proportions @uestion &hat is, a certain proportion of people "ill say they are retiredO
4aBB% NJes,O said the 'an#er NSuppose 8= percent of the e%isting customer 'ase says they are retired *
"ould ta#e that as a very 'ad omen for a station that opens early and closes late !hy "ould a retired
person "ant to drop his car off at ; amEO
4ason: N)%actly "ell, say 8= percent of the people sampled say they are retired &hatHs a
proportion of 8=, rightE &his means that, of the full 1,===-odd customers "ho comprise the
Kpopulation,H the actual proportion falls in a confidence interval centering around 8=O
8 Assume 1ason interrupts 1azz before she specifies her error interval. What will 1ason come back with if
he is mentally calculating sample size?
&he student?s natural inclination "ill 'e to estimate the interval 'ased on the fact that AaFF chose the most
commonly used confidence level 02:M4 Aason is trying to convince AaFF that a small sample siFe is
appropriate for $udrey, the Chevron station o"ner So he?ll have to ma#e a larger confidence interval
accepta'le to AaFF $ standard accepta'le confidence interval 0[ 9M4 "ould re@uire too large a sample siFe
4ason: NSo you "ill settle for a 2: percent confidence interval Jou remem'er your statistics, *
can see !ell, "e need to compute the standard error of the proportion in order to compute the "idth of
the confidence interval &o compute the standard error, "e "ill use the formula O
9 Is 1azz correct? Or has 1ason won this point? What will 1ason tell 1azz to do to improve her estimate?
&he students should 'e encouraged to recreate AaFF?s formula &o do so, they need to first realiFe that AaFF is
estimating the confidence interval using her hypothetical incidence factor of 8=M retired people in a
hypothetical sample &o do this, she needs the F value for 2:M confidence 012;4 $nd Aason?s proposed
sample siFe of 1== )ven though the F value is 12;, AaFF is using 8 as a rough estimate 0[ 12; from the
sample estimate includes 2:M of all estimates in the distri'ution4 &his is an opportunity to use some
simple alge'ra on the sample formula for proportions and recreate it solving for confidence interval
62
4ason% N&hatHs very good, AaFF, and *Hm going to let you #eep that stra" But you failed to consider a
significant factor !ould you care to improve your estimateEO
3 Assume 1ason lets 1azz keep the straw even though she could have done her calculation differently. What
might be considered 1azz's error(s)?
Aason 'elieves AaFF can improve her estimate 'ased on the fact that the population siFe is small, 1=== $t
least one student "ill remem'er 0or you can remind them4 that "hen a calculated sample siFe is greater
than :M of the population siFe that you can reduce the sample siFe "ithout sacrificing the @uality of the
data
$t least one student "ill note that AaFF too# li'erties in calculating her estimate and suggest these "ere not
appropriate shortcuts to ta#e Jou "ant to ma#e sure that students #ne" she "as using 8 as an estimate for
12;
4aBB/ N.ah,O she said, N* should have used 22 instead of 1== KB X 1H .ahGO and she reached for
another stra" from the tum'ler, 'ut Aason snatched the stra" from her hands and set it on his side of
the des# Bo" each of them had a stra"
4ason/ N&hatHs too small a correction to matter Jou loseO
4aBB/ NC>,O she said "ith moc# annoyance, N* should have multiplied 'y 12; instead of 8 &hatHs it,
isnHt itEO $nd she reached for another stra", 'ut Aason clapped his hand over the tum'ler
4ason/ NSorry,O he said, NthatHs true, 'ut again too small a correction to 'other "ith Jou should have
allo"ed for the fact that she is sampling 1== out of a population of 1,=== &hat shrin#s the standard
error of the mean 'y the s@uare root of 2==+222, "hich comes to O
4aBB/ N&oo small a correction to 'other "ith,O shouted AaFF "ith glee N&a#e your hands a"ay from
my stra"sG
: 1ason's being put through his paces here. What should his answer be this time? Look at the nature of the
second question to determine the correct formula to use.
<=
&he second @uestion, 8)hat time do you leave your home in the morning to go to &ork9: "ill generate a
mean estimate rather than a proportion, so Aason needs to apply a different formula &his mean time is a
second incidence factor
*f the interval estimate around the mean time is unaccepta'ly large, then the sample siFe "ill need to 'e
increased from the 1== proposed, even though the confidence interval around the proportion of retired
customers 0[=<4 "as accepta'le to AaFF &his is a perfect time to indicate that "hen there is more than one
critical measurement @uestion that you al"ays accept the largest sample siFe that is calculated to ensure the
necessary confidence and precision in all estimates generated 'y all measurement @uestions
4ason/ N!ell, "e use a slightly different version of the formula this time &his time "e divide the
estimated standard deviation of the error 'y the s@uare root of 1== to get the standard error of the
meanO
; This is 1ason's last chance to impress 1azz.and win. What must he know and where might he have
gotten this information, for a quick answer to the standard error of the sample?
AaFF has challenged Aason that ~one can?t #no" the standard error of the sample until the sample has 'een
ta#en But "e #no" that prior #no"ledge "ill almost al"ays reduce sample siFe So Aason "ants a pro%y
measure for this purpose &he value of prior #no"ledge is "hy large proposed studies almost al"ays
include pilot tests--not just to refine instruments 'ut to collect critical information a'out incidence factors,
reducing the sample siFe needed and there'y reducing the costs associated "ith large studies
4ason% N!ell, then you are "rong Because * happen to #no" that the morning rush hour e%tends
from a'out ;/9= to 2/9=, a period of 1<= minutes, and applying the rule of thum' that the standard
deviation is roughly one-si%th of the range, * arrived at a rough value of 9= minutes for the standard
deviation, "hich gives a standard error of the mean of 9 minutes, "hich is all the precision you could
possi'ly "antO .e reached for the stra", 'ut this time she pulled it a"ay
4aBB% N!ait a second, ,r Statistician !here did you get that rule of thum'EO
4ason% N* donHt #no",O he admitted, N* pic#ed it up during my graduate student daysO
4aBB% N.ah,O she e%ulted N>eep your stra"-pic#inH fingers a"ay from my stra"sGO
4ason% N.o"ever,O he said, Non returning to my office * did have a t"inge of dou't a'out giving this
advice to $udrey, so * called the planning department of the local 'us company, "hich #eeps
enormously detailed statistical records as part of the re@uirement for their federal transportation
su'sidy, and they confirmed that the ridership of their num'er 3: 'us through our to"n, and indeed the
ridership of practically every other 'us on the system, has a standard deviation of 82 minutesO .e
e%tracted the stra" Bo" he had t"o, to her one
6 So what's 1ason's final rebuttal?
<1
)ncourage your students to loo# at the data collection procedures $ mail study is 'eing discussed Jou
might mention that initial response to such a survey is often "ell 'elo" the :=M that AaFF is estimating
$s# students "hat might 'e done "ithin the conte%t of a mail study to increase response Students have
often received mail studies themselves and "ill share the inducements that came "ith the survey/ money,
entry into a dra"ing for a vacation givea"ay, coupons for theme par# visits or free meals or merchandise
Duplicate mailings "ill also li#ely 'e suggested, 'ut you should remind your students that $udrey is trying
to #eep her costs do"n She is, after all, 'orro"ing money to erect improvements so she can #eep her
'usiness open longer hours to increase sales and profits
Call'ac#s are an o'vious choice since 14 the sample siFe is small, 84 the firm conducting the research is
#no"n to the sample respondent and the respondent presuma'ly values the relationship, and 94 the
researcher has a daughter "ho "ill li#ely "or# for su'-standard "ages
4ason/ NBot if her daughter ma#es follo"-up phone calls,O said Aason
.)ll Script
.ere is the full Close-Up as it appeared in the ;
th
edition &he 'old te%t is "hat has 'een omitted in the case that
appears in the <
th
edition
NDo you #no" if the post office accepts chec#sEO as#ed $udrey, the 'usiness manager at the Chevron station
NCouldnHt say,O Aason replied
NBecause * am going to spend a fortune on stamps and * donHt "ant to carry a lot of cash do"n thereO She "aved a thic#
folio of three-up mailing la'els N*Hve got to survey our customers Cur 'an#er insists Jou #no" that ne" loan officerE &he
,B$E &he one named Aasmine, "ho calls herself KAaFFHEO !e as#ed her for U:=,=== so "e can open at : $, and stay open
until midnightP"e have to put up a fence and some shru''ery, so as not to distur' the apartments in 'ac#, and install t"o ne"
'aysPand she told us to survey our customers to find out if many of them are retirees "ho go to 'ed early and "a#e up late
and "ouldnHt use our service $nd find out "hen the others leave for "or# in the morning and come home at nightO
NSo you have to do a surveyO
NJes &hree or four @uestions, may'ePnothing complicated Li#e the t"o * mentioned and K.o" long have you 'een our
customerEH O
N.o" many years have you 'een our customer,O Aason murmured refle%ively
NCh, yeah, right ,ore precise, isnHt itEO $udrey said NBut the point is, do you #no" "hat it costs to "rite to 1,===
customersEO
.e crunched the num'ers in his head Dostage to send out the survey Dostage prepaid to have it mailed 'ac# Daper and
printing Cne envelope out'ound and one in'ound Stuffing the out'ound and opening and coding the in'ound N,inimum of
U1:= a survey,O he said, Nif your #ids do the stuffing and opening and encoding ,ay'e more Jou generate la'els from your
computer, so you donHt pay for la'els, "hich saves a mint, may'e 8: cents a nameO
NRight $ U1:= times 1,=== Dlus the #idsH time, if * can pry them a"ay from Little League, ,&7, and personal callsO
NJou donHt need to survey 1,=== customers you #no"O
N!haaatEO
NDic# 1== at random from your computer list JouHll get a 1= percent margin of error and save U1,9:=, plus the #idsH timeO
N&hatHs hard to 'elieveO
NBut itHs true,O he said NLoo#, "hy donHt you ta#e some of the money you save, and instead of just sampling 1== from your
e%isting customer 'ase, also do a separate survey of every 8=th person from the Cham'er of Commerce directory JouHll have
one survey of customers and another of potential customers, and youHll still end up saving over U1,===O
She thought for a moment N&he 'an#er "ill never 'elieve this,O she o'jected
N&he ne%t time * ma#e a deposit, *Hll e%plain it to herO
NJou do that,O she said, Nand "eHll "a% your car every three months for the ne%t t"o yearsO
<8
Aason "as e%cited 'y the idea of having his car "ashed and "a%ed at no charge .e #ne" he "as trading consulting services
cheaply for automotive services, 'ut it felt free, so the ne%t day "hen he "ent to the 'an# he approached the ne" 'an# officer
Pthe ne" mar#et development 7D, actuallyP"ith carefully disguised e%citement &his "as going to 'e more fun than
"or#ing for money
-osh, she "as a tall "oman Aasmine Rogers &hirty-five, he guessed, ; feet 8 inches or even ; feet 9 .ard to tell "hen she
"as sitting She sat grandly 'ehind a mahogany des# in a cu'icle "ith three glass "alls But the 'ac# "all "as coveredP'y
sports memora'ilia $ 'as#et'all shirt said, N,organ StateP$frican &our, 12<:,O and there "as another shirt that said,
N.arvard B-School *ntramuralsO &here "ere crossed field hoc#ey stic#s, too, and a 'oomerang, and a picture of her holding
the 'oomerang "ith small fol#s he supposed "ere $ustralian nationals casting admiring glances at this tall $merican "oman
She came out to greet him and propelled himPalmost lifted himPto a seat in her cu'icle
NSo, "hatHs up, AasonE $re "e ta#ing good care of youE Do you need another doFen computersE !hatEO
N* "anted to tal# to you a'out the survey you as#ed $udrey to ma#e She and Auan o"n the Chevron station O
NCh, sure $udrey and Aohnny -ood people Say, if you are thin#ing of getting a B,!, * can give you a good rate on a
loanO
N!ell, *Hm not in that 'rac#et, AaFF Loo#, you told $udrey to ta#e a survey of her customers, and thatHs "hat * "anted
to discussO
N* didnHt intend her to have to hire a high-po"ered 'usiness consultantO
N!ell, actually, this is more or less a favor, you see O
She chuc#led .e thought she had a nice disposition for a 'an#er N$ favorE By any means did she offer to "a% your car
a'out a million times for this favorE * had to turn do"n that particular offer, 'eing her loan officer Conflict of interest, you
#no" But if you "ant to help her, hey, * say thatHs greatO
N!ell, this is no 'ig deal, AaFF ,ore or less a 'ac#-of-the-envelope computation, you see )%cept * did it in my head, as
there "as no envelope handyO
N*n your headE *mpressive * "as on the math team in high school O
N.ereHs the thing $udrey "as a'out to do a census of her customers O
N$ censusE Surely not a survey of all her customers * "anted just a sample She must have misunderstoodO
N!ell, thatHs the thing * mean, * 'elieve that a sample of may'e 1== customers "ill do the tric#O
N* too# 'usiness research in B-school, Aason, and "hile * certainly donHt "ant to 'rea# $udreyHs 'ac#, a sample of 1==
seems #ind of "ell, thinO
N,ay'e * can convince youO
N,ay'eO She steepled her fingers thoughtfully and smiled "ic#edly N$re you a 'etting man, AasonEO She placed a tall
glass tum'ler holding several doFen drin#ing stra"s 'et"een them N* am "illing to 'et you cannot convince meO
N&hen let me try &a#e the first @uestion you "anted K$re you currently retired from "or#EH &his is "hat "e call a
proportions @uestion &hat is, a certain proportion of people "ill say they are retiredO
NJes,O said the 'an#er NSuppose 8= percent of the e%isting customer 'ase says they are retired * "ould ta#e that as a very
'ad omen for a station that opens early and closes late !hy "ould a retired person "ant to drop his car off at ; $,EO
~Exactly . . . well, say 20 percent of the people sampled say they are retired. That`s a proportion of .20, right? This
means that, of the full 1,000-odd customers who comprise the population,` the actual proportion falls in a confidence
interval centering around .20.
NLet me jump ahead here, Aason, 'ecause lunch approaches rapidly * am "illing to settle for a 2: percent chance of
correctly locating the population proportion "ithin an interval O
~So you will settle for a 95 percent confidence interval. You remember your statistics, I can see. Well, we need to
compute the standard error of the proportion in order to compute the width of the confidence interval. To compute the
standard error, we will use the formula. . . .
AaFF leaned for"ard and grasped AasonHs left hand "ith her right hand, to prevent him from "riting formulas in the air, and
held up the inde% finger of her left hand for attention NCne second, Aason * am "illing to 'et you this,O she e%tracted one
drin#ing stra" from the glass, Nthis valua'le drin#ing stra", that * can tell you the formula to use !e ta#e 8 and multiply 'y
<, and divide 'y 1== 0"hich is your proposed num'er of su'jects4, and ta#e the s@uare root, "hich is, um ,O she rolled her
eyes to the ceiling, N"hich is =3 $nd "e multiply 'y 8 So the 2: percent confidence interval e%tends 'et"een 8= plus and
minus ==<, from 18 to 8<O She laughed merrily and moved the stra" closer to her side of the des# NCome on, Aason, play
this game to "in * "onHt ta#e it out on $udreyO
~That`s very good, 1azz, and I`m going to let you keep that straw. But you omitted to consider a significant factor.
Would you care to improve your estimate?
~Hah, she said, ~I should have used 99 instead of 100. N - 1.` Hah! and she reached for another straw from the
tumbler, but 1ason snatched the straw from her hands and set it on his side of the desk. Now each of them had a straw.
~That`s too small a correction to matter. You lose.
<9
~OK, she said with mock annoyance, ~I should have multiplied by 1.96 instead of 2. That`s it, isn`t it? And she
reached for another straw, but 1ason clapped his hand over the tumbler.
~Sorry, he said, ~that`s true, but again too small a correction to bother with. You should have allowed for the fact
that she is sampling 100 out of a population of 1,000. That shrinks the standard error of the mean by the square root of
900/999, which comes to. . . .
~Too small a correction to bother with, shouted 1azz with glee. ~Take your hands away from my straws! OK, I`ll
give that to you, 1ason, a sample of 100 will give me all the precision I want for that question.
NBut "hat a'out the ne%t @uestion, K!hat time do you leave your home in the morning to go to "or#EHEO AaFF as#ed
~Well, we use a slightly different version of the formula this time. This time we divide the estimated standard
deviation of the error by the square root of 100 to get the standard error of the mean.
She reached into the tum'ler and "ithdre" another stra" N!ait just a second, Aason * "ill 'et you this stra" that you donHt
#no" the standard error of the sample until after you have ta#en the sampleO
~Well, then you are wrong. Because I happen to know that the morning rush hour extends from about 6:30 to 9:30, a
period of 180 minutes, and applying the rule of thumb that the standard deviation is roughly one-sixth of the range, I
arrived at a rough value of 30 minutes for the standard deviation, which gives a standard error of the mean of 3
minutes, which is all the precision you could possibly want. He reached for the straw, but this time she pulled it away.
~Wait a second, Mr. Statistician. Where did you get that rule of thumb?
~I don`t know, he admitted, ~I picked it up during my graduate student days.
~Hah, she exulted. ~Keep your straw-pickin` fingers away from my straws!
~However, he said, ~on returning to my office I did have a twinge of doubt about giving this advice to Audrey, so I
called the planning department of the local bus company, which keeps enormously detailed statistical records as part of
the requirement for their federal transportation subsidy, and they confirmed that the ridership of their number 45 bus
through our town, and indeed the ridership of practically every other bus on the system, has a standard deviation of . . .
29 minutes. He extracted the straw. Now he had two, to her one.
NC>, Aason, you "in Jou have convinced me *f she can retrieve 1== surveys, *Hll 'e satisfied But *Hll 'et she "ill have to
send out 8== surveys to get 1== repliesO
~Not if her daughter makes follow-up phone calls, said 1ason.
Case% ;cDonaldCs Tests Cat-ish Sand"ich?
Abstract/ &his case descri'es the test mar#eting for ,cDonald?s catfish sand"ich in the Southeastern
US$ *t as#s the student to assume they are the ne"-product development team and assess the research
design descri'ed
&his case re@uires the student to assess the representativeness of the ten test cities in "hich the ne" catfish
sand"ich is 'eing served in relation to three states in "hich this product "ill 'e rolled out &o assess the
representativeness of the test cities in relation to the rollout plan, the student "ill have to collect secondary
data on each of the test cities and the three states &here are a "ide variety of sources that students can ma#e
use of !e have compiled some preliminary data on each of the test cities as sho"n in the accompanying
ta'le &his "as a'stracted from the .22, Rand Mc;ally Commercial Atlas and Marketing 1uide
<3
City/State Population Per
Capita
Income
No. of
H.H
Median
H.H.
Income
Food
Store
Sales
Total
Retail
Sales
R.McNally
City Rating
Bo"ling -reen,
>J
3=,;31 1=,228 1;,=== 1<,=2; 1=:,9:= ;2=,<23 9-$
,emphis, &B ;1=,996 18,111 891,9== 89,882 ;16,=;2 :,91;,296 8$$
Chattanooga, &B 1;8,3;; 18,=82 ;8,3== 81,989 8<:,888 1,289,;82 8-$
Aac#son, &B 3<,232 18,16< 12,8== 88,2=; 1=2,2:2 ;8;,:99 9-$
.untsville, $L 1:2,6<2 1;,:<< ;3,=== 98,=6= 8;:,8=: 1,6;2,98; 9-$$
Aones'oro, $> 3;,:9; 18,8;1 1<,1== 81,<83 <1,92= :8<,613 9-$
Colum'us, ,S 89,622 1=,8<3 2,1== 1<,9<6 :;,2<2 968,88< 9-$
&upelo, ,S 9=,;<: 18,82< 11,<== 83,:8; ;;,168 328,16< 9-$
-reenville, ,S 3:,88; <,821 1:,8== 1;,;;2 6=,2=8 9;8,32< 9-$
-reen"ood, ,S 1<,2=; <,638 6,=== 13,<8; 9<,<23 8=9,36: 3-B
<:
Case% ;edical *aboratories
Abstract/ $ hospital faces a 8=M price increase from its outside testing la' 'ased on rising costs of testing and
diminishing profits &he student is as#ed to analyFe data from 1; different medical la's and ma#e a
recommendation a'out the financial health of each la', supporting or refuting the 'asis of the proposed price
increase
-eneral Comments
&he tric# to this data set involves the first tas# re@uested in the case--to 'uild a model of CD$SS&S $s it
turns out, the multiple regression model is an accounting identity &he CD$SS&S varia'le "as created 'y the
e@uation/ CD$SS&S \ DD) [ $SS)&S - L*$B &he value for DD) of firm 1 in 12<; is actually 19:8:, "hich "as
changed to 19:8; in the data set to permit calculation of the regression diagnostics Jour students "ill get an
ans"er from the multiple regression, 'ut should 'e tipped off 'y t ratios for the estimated slope coefficients of
several hundred thousandG
&he reason "e created this case is that every semester "hen students are as#ed to design their o"n project
and collect their o"n data, one or more students invaria'ly comes up "ith a deterministic model (or instance, one
group proposed studying total electricity consumption in Denver as a function of consumption from residential,
commercial, and manufacturing sectors, a tautology &he confusion li#ely arises from the message that higher R8
values are 'etter, yet "e don?t generally tal# a'out "hat it means to have an R8 of 1==M &his case "ill allo" you
to rediscover "ith your students the difference 'et"een stochastic and deterministic models and the fundamental
nature of residuals and residual analysis to multiple regression model-'uilding
Discussion Questions
1 *s the e%ternal medical facility justified in claiming that la's around the country are e%periencing hard
timesE .o" should you decide to ans"er this @uestionE
8 !hat are the major financial determinants of CD$SS&SE
Suggestions for Discussion
&he interesting part of the class discussion involves the matter of the 1==M R
8
Some students "ill overloo#
the perfect R
8
value and simply "rite up the report, 'ragging a'out "hat a fine model they have derived Cthers
"ill finally discover the tric# to the case &he 'est "ay to lead the class discussion in our e%perience is to plead
total ignorance to the issue of the accounting identity $ct as if you are completely sur prised 'y the outcomes 'eing
reported 'y your students &hen let them ta#e control of the discussion
!hen the tric# is finally uncovered, as# your students a'out the general nature of the error term in regression
analysis $s# them the purpose of the error term, "here and ho" the error term comes into play in generating the
regression statistics, and "hat it means to have an e@uation "ith Fero residual values
&ypical Results and $pproaches
&he @uestion of "hether your medical la'oratory should 'e passing on higher costs can 'e addressed 'y
loo#ing at the 'ehavior over time and across firms of the CD$SS&S varia'le $lthough CD$SS&S dropped from
1:6: to 1369 on average over the 12<; to 12<< period, CD$SS&S appears to 'e on its "ay 'ac# up thereafter, and
reaches the level of 1;62 'y 122= .o"ever, "hen loo#ing at the means for each firm over the five years, there is a
su'stantial difference in CD$SS&S among different firms &his vie" of the data suggests that your particular la'
may 'e e%periencing some difficulty, 'ut not all la's are having the same pro'lem (urther investigation into their
claims seems to 'e "arranted 'y these data
<;
Cn the model-'uilding portion of this case, some students may actually discover the accounting identity
inherent to the multiple regression model of CD$SS&S on DD), $SS)&S, and L*$B and solve the puFFle 'y
leaving out one or t"o of the predictors .ere?s a printout that you can ta#e to class that sho"s the essence of the
case
R%<r%ssion of 1P,SS5S on PPE= ,SSE5S an+ .0,7
1P,SS5S ; -0&000010 + 1&00 PPE + 1&00 ,SSE5S - 1&00 .0,7

Pr%+ictor Co%f St+%> t-ratio $
Constant -0&00000"#3 0&000014!! -0&64 0&#24
PPE 1&00000 0&00000 436""&66 0&000
,SSE5S 1&00000 0&00000 !23#&12 0&000
.0,7 -1&00000 0&00000 -"0"""&63 0&000

s ; 0&0001033 R-s? ; 100&0' R-s?(a+@) ; 100&0'

,nalysis of 3arianc%
S1URCE (2 SS 4S 2 $
R%<r%ssion 3 42164 140## 1&31!E+12 0&000
Error 6 0 0
5otal " 42164

Unusual 1bs%r>ations
1bs& PPE 1P,SS5S 2it St+%>&2it R%si+ual St&R%si+
1 13&# 6&"330 6&"33! 0&0000 -0&000! -!&6"RA
2 1#&1 6&2060 6&20#! 0&0000 0&0002 1&!# A
46 3#&" "0&"630 "0&"62" 0&0000 0&0001 0&"6 A
4" 20&4 26&#40 26&#40 0&0001 0&0000 0&10 A
#4 33&2 43&2##0 43&2##0 0&0001 -0&0000 -0&43 A
## 33&3 3!&2410 3!&2411 0&0000 -0&0001 -1&0 A

R +%not%s an obs& Bit* a lar<% st& r%si+&
A +%not%s an obs& B*os% A >alu% <i>%s it lar<% influ%nc%.
<6

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