Marketing

Research
Eighth Edition
International Student Version
Carl McDaniel, Jr.
University of Texas
at Arlington

Roger Gates
DSS Research

John Wiley & Sons, Inc

Preface

xxv

1 Introduction to Marketing Research 2

Nature of Marketing 4
The Marketing Concept 4
Opportunistic Nature of Marketing Research 4
External Marketing Environment 5
Let's Meet Some New Market Researchers 6
Marketing Research and Decision Making 6
Marketing Research Defined 7
Importance of Marketing Research to Management 7
Proactive Role of Marketing Research 9
Applied Research versus Basic Research 10
Nature of Applied Research 10
Decision to Conduct Marketing Research 11
Profound Impact of the Internet on Marketing Research 13
Development of Marketing Research 15
Inception: Pre-1900 15
Early Growth: 1900-1920 16
Adolescent Years: 1920-1950 16
Mature Years: 1950-Present 17
3

B
M
H
B
H
H

PRACTICING MARKETING RESEARCH: WHAT IS GOOD ABOUT MARKETING

RESEARCH TODAY
17

Discussion Questions 18
Summary 18
Key Terms & Definitions 19
Questions for Review & Critical Thinking 20
Courtyard by Marriott 21
Real-Life Research 1.1:1 Want My Satellite Radio 21
Real-Life Research 1.2: Young Consumers Searching for a
Bank Still Want the Personal Touch 22

2 Ethical Decision Making in the Marketing Research Industry 24

Evolving Structure of the Marketing Research Industry 26
Primary Information Users (Client Organizations)
Consumer and Industrial Goods and Services Producers 26
3

GLOBAL RESEARCH: SOUTHEAST ASIA

28

Federal, State, and Local Governments 29

Media Companies 29
Retailers and Wholesalers 29
Marketing Research Suppliers 29
Marketing Research Supplier Service Firms 30

viii I Contents
Consumer and Industrial Corporate Marketing Research
Departments 30
Research Suppliers 30
3

FROM THE FRONT LINE: WHY I CHOSE A CAREER IN MARKETING RESEARCH AND
THE BIGGEST SURPRISE I HAVE FACED IN DOING RESEARCH 32

Custom Research Firms 34

Syndicated Service Firms 34
Limited Function Research Firms 35
Marketing Research Supplier Service Firms 35
Using Marketing ResearchA Corporate Perspective
External Clients 37
Internal Clients 38
The State of the Marketing Research Industry 40
3

36

PRACTICING MARKETING RESEARCH: LOOK FOR THE DANGER SIGNALS WHEN

EVALUATING RESEARCH SUPPLIERS

41

Marketing Research Ethics 42

Ethical Theories 42
Research Supplier Ethics 43
Black Box Branding 46
Client Ethics 47
Field Service Ethics 48
Data-Collection Code of Ethics 48
Respondents' Rights 50
Ethics and Professionalism 51
3

GLOBAL RESEARCH: SAFE HARBOR IN A PRIVACY STORM

52

H Summary 54
B3 Key Terms & Definitions 55
0 Questions for Review & Critical Thinking 55
H Working the NET 56
Real-Life Research 2.1: Coke Juices Up a Market Test
Real-Life Research 2.2: Budget Rent a Car Drives
a Message Home 58

56

3 Steps in the Research Process 64

Critical Importance of Correctly Defining the Problem 66
Recognize the Problem or Opportunity 67
Find Out Why the Information is Being Sought 67
Understand the Decision-Making Environment with
Exploratory Research 68
3

PRACTICING MARKETING RESEARCH: GETTING IT RIGHT THE

FIRST TIME
69

Use the Symptoms to Clarify the Problem

3

71

PRACTICING MARKETING RESEARCH: DRIVING ACTION-PRODUCING

RESEARCH 72

Translate the Management Problem into a Marketing

Research Problem 72
Determine Whether the Information Already Exists 73
Determine Whether the Question Can Be Answered 73

Contents
3

PRACTICING MARKETING RESEARCH: IMPORTANCE OF TOP MANAGEMENT'S

DEFINITION OF THE MANAGEMENT PROBLEM 74

State the Research Objectives

3

74

FROM THE FRONT LINE: GET YOUR OBJECTIVES IN ORDER BEFORE

You START 75

Marketing Research Process 76

Creating the Research Design 76
Choosing a Basic Method of Research 78
Selecting the Sampling Procedure 79
Collecting the Data 79
Analyzing the Data 79
Writing and Presenting the Report 80
Following Up 80
Managing the Research Process 81
The Research Request 81
Request for Proposal 81
3

PRACTICING MARKETING RESEARCH: INTERNAL CLIENTS ARE NOT

ALWAYS EASY TO DEAL WITH
82

The Marketing Research Proposal 83

What to Look for in a Marketing Research
Supplier 85
3

GLOBAL RESEARCH: TAPPING THE CHINA MARKET

86

What Motivates Decision Makers to Use

Research Information? 88
3

PRACTICING MARKETING RESEARCH: THE CLIENT AND THE MARKETING

RESEARCHERA FABLE 88

Hi Summary 89
H Key Terms & Definitions 90
B Questions for Review & Critical Thinking 91
H Working the Net 92
11 Real-Life Research 3.1: I'll Eat Frozen Pizza But I Don't
Have to Like It! 92
Real-Life Research 3.2: Cessna Aircraft 93
Appendix 3-A: A Marketing Research Proposal 94
Background 95
Objectives 95
Study Design 95
Areas of Questioning 95
Data Analysis 96 /
Personnel Involved 96
Specifications/Assumptions 96
Services 97
Cost 97
Timing 97

4 Using Secondary Data 98

Nature of Secondary Data 100
Advantages of Secondary Data

100

ix

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3

PRACTICING MARKETING RESEARCH

101

Limitations of Secondary Data 102

Internal Databases 104
Creating an Internal Database 104
Growing Importance of Internal Database Marketing

104

PRACTICING MARKETING RESEARCH: LOOKING FOR INTELLIGENCE IN

ICE CREAM
105
PRACTICING MARKETING RESEARCH: DATABASE DESIGN AND
IMPLEMENTATION

106

Data Mining 107

Battle over Privacy 109
Marketing Research Aggregators
3

PRACTICING MARKETING RESEARCH

112
113

Information Management 113

Geographic Information Systems 114
Decision Support Systems 116
Summary 117
Key Terms & Definitions 118
Questions for Review & Critical Thinking 118
Working the Net 118
Real-Life Research 4.1: Michelle's Store for Runners 119
Real-Life Research 4.2: Sanitized to Perfection 120
Appendix 4-A: How to Efficently Search on Google 123

5 Focus Groups, Depth Interviews, and Other Non-quantitative

Research Methods 130
Nature of Qualitative Research 132
Qualitative Research versus Quantitative Research 132
Popularity of Qualitative Research 132
Limitations of Qualitative Research 133
The Importance of Focus Groups 134
Popularity of Focus Groups 134
Conducting Focus Groups 135
3
3
3
3
3

PRACTICING MARKETING RESEARCH: RECRUITING TRICKS OF THE TRADE

138
PRACTICING MARKETING RESEARCH: THE VOICE AT THE HEAD OF
THE TABLE
140
PRACTICING MARKETING RESEARCH: DR. MURRAY SIMON OFFERS SEVERAL
GUIDELINES TO CONSIDER IN DEVELOPING A DISCUSSION GUIDE
144
PRACTICING MARKETING RESEARCH
146
GLOBAL RESEARCH: PLANNING GLOBAL FOCUS GROUPS
146

Benefits and Drawbacks of Focus Groups

3
3

147

PRACTICING MARKETING RESEARCH: GETTING GREAT INFORMATION

AND RESULTS FROM FOCUS GROUPS
149
FROM THE FRONT LINE: SECRETS OF CONDUCTING GOOD FOCUS
GROUPS AND/OR IN-DEPTH INTERVIEWS
150

Other Qualitative Methodologies 151

Individual Depth Interviews 151
3

PRACTICING MARKETING RESEARCH: MASTERING THE QUALITATIVE

REPORT
154

Projective Tests 155

Future of Qualitative Research

160

Contents
I Summary 160
I Key Terms & Definitions 161
I Questions for Review & Critical Thinking 162
I Working the Net 163
I Real-Life Research 5.1: Repositioning Scotland
I Real-Life Research 5.2: Fossil Watch, Inc. 165

163

6 Methods of Survey Research 168

Popularity of Survey Research 170
Types of Errors in Survey Research 170
Sampling Error 171
Systematic Error 171
Types of Surveys 176
Door-to-Door Interviews 176
Executive Interviews 176
3

GLOBAL RESEARCH: CONDUCTING MARKETING RESEARCH

IN CHINA

177

Mall-Intercept Interviews 178

Telephone Interviews 178
Self-Administered Questionnaires
3

181

PRACTICING MARKETING RESEARCH: WHAT WOULD

You Do? 182

Mail Surveys 183
Determination of the Survey Method 186
Sampling Precision 186
Budget 187
Requirements for Respondent Reactions 188
Quality of Data 188,
Length of the Questionnaire 188
Incidence Rate 189
Structure of the Questionnaire 190
Time Available to Complete the Survey 190
Marketing Research Interviewer 190
H Summary 191
H Key Terms & Definitions 192
Questions for Review & Critical Thinking 193
Real-Life Research 6.1: Dairy Management Inc. 193
I Real-Life Research 6.2: Paramount Parks Where the Theme Is Fun

7 Using the Internet for Marketing Research 196

The Online World 198
Using the Internet for Secondary Data 198
Sites of Interest to Marketing Researchers 198
Newsgroups 198
Blogs 201
Internet Search Strategies 202
Creating a Database from a Web Site
A Marketer's Dream 205
Online Qualitative Research 206
The Popularity of Online Focus Groups 206

194

xi

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Contents
3
3

PRACTICING MARKETING RESEARCH: ONLINE FOCUS GROUP

BEST PRACTICES
210
FROM THE FRONT LINE: EIGHT TIPS FOR CONDUCTING
SUCCESSFUL BULLETIN BOARD FOCUS GROUPS

Survey Research on the Internet 214

Advantages of Online Surveys 214
Disadvantages of Online Surveys 215
Methods of Conducting Online Surveys
Commercial Online Panels 217
3

Panel Management

219

220

GLOBAL RESEARCH: TIMING IS EVERYTHING IN SURVEY

INVITATIONS

221

Open versus Closed Recruitment

3

216

PRACTICING MARKETING RESEARCH: FORMATTING

A SURVEY FOR SUCCESS

212

222

PRACTICING MARKETING RESEARCH: PREVENTING

PROFESSIONAL SURVEY TAKERS
223

Respondent Cooperation 223

Controlling the Panel 224
Mobile Internet ResearchThe Next Step 225
Interactive Marketing Research Organization 228
3

FROM THE FRONT LINE: WHY ISN'T ALL DATA COLLECTION

MOVING TO THE INTERNET?

228

Summary 229
Key Terms & Definitions 230
Questions for Review & Critical Thinking 230
Woking the Net 231
Real-Life Research 7.1: Grocery Shoppers Just
Want to Save Money 231
H Real-Life Research 7.2: Good Things Come to
Brands That Give 233

8 Ethnography, Scanner-based Research, and Other

Observation Techniques 234
Nature of Observation Research 236
Conditions for Using Observation 236
Approaches to Observation Research 236
Advantages of Observation Research 238
Disadvantages of Observation Research 238
Human Observation 239
Ethnographic Research 239
3

GLOBAL RESEARCH: ETHNOGRAPHICS ARE AN ENRICHING PROCESS

Mystery Shoppers
3
3

PRACTICING MARKETING RESEARCH: TAKING ETHNOGRAPHY ONLINE

243
PRACTICING MARKETING RESEARCH: ADVANCES IN MYSTERY SHOPPING
245

One-Way Mirror Observations

Audits 246
3

242

242

246

PRACTICING MARKETING RESEARCH: UNDERCOVER WITH A HOTEL SPY

Machine Observation 248

Traffic Counters 248

247

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Physiological Measurement Devices 248
Opinion and Behavior Measurement Devices 250
The Portable People Meter and Project Apollo 251
' Scanner-Based Research 252
Observation Research on the Internet 255
Predictive Customer Intelligence 256
Observation Research and Virtual Shopping 258
H Summary 259
Key Terms & Definitions 260
H Questions for Review & Critical Thinking 261
M Working the Net 262
H Real-Life Research 8.1: A Glad Trash Bag
Breakthrough 262
IB Real-Life Research 8.2: Continental Airlines Online
Advertising 263

9 Primary Data Collection: Experimentation and Test Markets

What Is an Experiment? 270
Demonstrating Causation 270
Concomitant Variation 270
Appropriate Time Order of Occurrence 271
Elimination of Other Possible Causal Factors 271
Experimental Setting 271
Laboratory Experiments 272
Field Experiments 272
Experimental Validity 272
3

PRACTICING MARKETING RESEARCH: KNOW YOUR POTENTIAL CUSTOMERS,

PSYCHOLOGICALLY SPEAKING

273

Experimental Notation 273

Extraneous Variables 274
Examples of Extraneous Variables
Controlling Extraneous Variables
Experimental Design, Treatment, and
Limitations of Experimental Research
High Cost of Experiments 277
Security Issues 278
Implementation Problems 278
Selected Experimental Designs 278
Pre-Experimental Designs 279
3

274
276
Effects
277

276

GLOBAL RESEARCH: WHAT HAPPENS WHEN YOUR SELECTION BIAS IS THE

INTERVIEWER'S GENDER?

280

True Experimental Designs 280

Quasi-Experiments 282
Test Markets 283
Types of Test Markets 284
3

268

GLOBAL RESEARCH: WHAT'S SO ATTRACTIVE ABOUT

CALGARY'S DEMOGRAPHICS?
285

Costs of Test Marketing 286

Decision to Conduct Test Marketing
Steps in a Test Market Study 287

287

xiii

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Contents
3
3

GLOBAL RESEARCH: BEST GLOBAL TEST MARKETS?

DANES ARE QUICK, KOREANS LOVE TECH
289
PRACTICING MARKETING RESEARCH: QUICK SCANS OF PRODUCT-SPECIFIC

TEST MARKETS
292
PRACTICING MARKETING RESEARCH: WHEN IN ROME . . .

293

. Other Types of Product Tests 295

Summary 295
El Key Terms & Definitions 296
E3 Questions for Review & Critical Thinking 298
03 Working the Net 299
13 Real-Life Research 9.1: Millennium Marketing Research Simulated Test
Market 299
IS Real-Life Research 9.2: Healthco 300

10 The Importance of Proper Measurement 302

Measurement Process 304
Step One: Identify the Concept of Interest 305
Step Two: Develop a Construct 305
Step Three: Define the Concept Constitutively 305
Step Four: Define the Concept Operationally 305
Step Five: Develop a Measurement Scale 307
Nominal Level of Measurement 307
Ordinal Level of Measurement 307
3

GLOBAL RESEARCH: CONSTRUCT EQUIVALENCE PROBLEMS OFTEN

OCCUR IN GLOBAL MARKETING RESEARCH

309

Interval Level of Measurement 310

Ratio Level of Measurement 310
3

FROM THE FRONT LINE: TIPS ON MAKING SURE YOU HAVE THE RIGHT LEVEL OF
SCALING
311

Step Six: Evaluate the Reliability and Validity of the Measurement

Reliability 313
3

PRACTICING MARKETING RESEARCH: TRUTH ABOUT WHAT

RESPONDENTS SAY
314

Validity
3

316

PRACTICING MARKETING RESEARCH: THE ANONYMITY GRADIENT

Reliability and ValidityA Concluding Comment

3

317

320

PRACTICING MARKETING RESEARCH: TIPS FOR MANAGERS ON PUTTING

MEASUREMENT TO WORK
321

B
M
S
B
B

Summary 322
Key Terms & Definitions 323
Questions for Review & Critical Thinking 324
Working the Net 325
Real-Life Research 10.1: It's TrueNot All Men or
All Women Are Alike! 325
H Real-Life Research 10.2: Measuring Customer
Satisfaction at GE 328

11 Attitude Measurement 330

Attitudes, Behavior, and Marketing Effectiveness

332

311

Contents
Link between Attitudes and Behavior 332
Enhancing Marketing Effectiveness 333
Scaling Defined 333
3 PracticiNG MARKETING RESEARCH: WHAT MAKES A
'Attitude Measurement Scales 334
Graphic Rating Scales 334
Itemized Rating Scales 335
Traditional One-Stage Format 338
Two-Stage Format 338
3

PRACTICING MARKETING RESEARCH: BE CAREFUL WHEN

AVERAGING SCALE DATA
338

Rank-Order Scales 339

Q-Sorting 340
Paired Comparisons 341
Constant Sum Scales 342
Semantic Differential Scales
3

342

GLOBAL RESEARCH: BE CAUTIOUS IN INTERPRETING SCALES

USED IN GLOBAL RESEARCH
344

Stapel Scales 344

Likert Scales 345
Purchase Intent Scales
3

GOOD SCALE?

348

PRACTICING MARKETING RESEARCH

348

The Net Promoter Score (NPS) 351

Scale Conversions 352
Considerations in Selecting-a Scale 353
The Nature of the Construct Being Measured
Type of Scale 354
Balanced versus Nonbalanced Scale 354
Number of Scale Categories 354
Forced versus Nonforced Choice 355
3

353

PRACTICING MARKETING RESEARCH: SCALE BALANCE

355

Attitude Measures and Management Decision Making

Direct Questioning 357
3

PRACTICING MARKETING RESEARCH: WHAT IS THE SCALE

REALLY TELLING YOU?

M
H
M
B

357

358

Indirect Questioning 360

Observation 360
Choosing a Method for Identifying Determinant
Attitudes 361
Summary 361
Key Terms & Definitions 362
Questions for Review & Critical Thinking 363
Working the Net 364
Real-Life Research 11.1: Coffee Culture as a
Global Phenomenon 364
Real-Life Research 11.2: Frigidaire Refrigerators

12 Questionnaire Design 368

Role of a Questionnaire 370
Criteria for a Good Questionnaire 371
Does It Provide the Necessary Decision-Making

365

334

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Contents
Information? 371
Does It Consider the Respondent? 371
Does It Meet Editing and Coding Requirements?

372

PRACTICING MARKETING RESEARCH: ARE HEAVY RESPONDERS TAKING ALL THE

MARKET RESEARCH SURVEYS?

373
PRACTICING MARKETING RESEARCH: TIPS FOR MAXIMIZING USER RESPONSE IN
ONLINE SURVEYS

374

Questionnaire Design Process 375

Step One: Determine Survey Objectives, Resources,
and Constraints 375
Step Two: Determine the Data-Collection Method 376
Step Three: Determine the Question Response Format 377
3
3

PRACTICING MARKETING RESEARCH: USEFUL OPEN-ENDED QUESTIONS

379
PRACTICING MARKETING RESEARCH: WHEN RESPONDENTS DISTORT THEIR OWN
DATA: SURVEY RESPONSE ERRORS

382

Step Four: Decide on the Question Wording

3

385

GLOBAL RESEARCH: SURVEY BIAS FROM ETHNICITY AND GENDER OF INTERVIEWERS

AND RESPONDENTS

386

Step Five: Establish Questionnaire Flow and Layout

3

Step Six: Evaluate the Questionnaire 393

Step Seven: Obtain Approval of All Relevant Parties
Step Eight: Pretest and Revise 394
3

388

PRACTICING MARKETING RESEARCH: SOME PROBLEMS AND POTENTIAL SOLUTIONS

WITH SCREENING QUESTIONS
390

394

PRACTICING MARKETING RESEARCH: TIPS FOR WRITING A

GOOD QUESTIONNAIRE
395

Step Nine: Prepare Final Questionnaire Copy 396

Step Ten: Implement the Survey 396
Field Management Companies 398
Impact of the Internet on Questionnaire Development 398
3

FROM THE FRONT LINE: SIX SECRETS OF GOOD QUESTIONNAIRE DESIGN

Software for Questionnaire Development

3

399

400

GLOBAL RESEARCH: SURVEY CONTAMINATION FROM NATIONAL DIFFERENCES IN

RESPONSE STYLES

403

Costs, Profitability, and Questionnaires 403

B Summary 405
Key Terms & Definitions 406
M Questions for Review & Critical Thinking 407
Working the Net 408
El Real-Life Research 12.1: Understanding Buyer Behavior
Real-Life Research 12.2: Singles Dinner Club 410

408

13 Basic Sampling Issues 412

Concept of Sampling 414
Population 414
Sample versus Census 414
3

PRACTICING MARKETING RESEARCH: CELL PHONE-ONLY HOUSEHOLDSTHE NEED

TO BROADEN THE POLLING SAMPLE
415

Developing a Sampling Plan 416

Step One: Define the Population of Interest

416

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3

PRACTICING MARKETING RESEARCH: DRIVER'S LICENSES AND VOTER REGISTRATION

LISTS AS SAMPLING FRAMES 417

Step Two: Choose a Data-Collection Method

' Step Three: Identify a Sampling Frame 418

418

GLOBAL RESEARCH: SAMPLING FRAME EXPERIMENTATION TO COLLECT RELIABLE

MEDICAL DATA
420
PRACTICING MARKETING RESEARCH: DON'T CALL US, WE WON'T CALL YOU
EITHERNEW PROBLEMS IN TELEPHONE SAMPLING
421

Step Four: Select a Sampling Method

3
3

423

PRACTICING MARKETING RESEARCH: WHY THIS ONLINE SAMPLE WAS NOT A

PROBABILITY SAMPLE
424
PRACTICING MARKETING RESEARCH: WHEN ADDRESS-BASED TELEPHONE SURVEYS
OUTPERFORM RANDOM-DIGIT DIALING

425

Step Five: Determine Sample Size 425

Step Six: Develop Operational Procedures for Selecting Sample
Elements 426
Step Seven: Execute the Operational Sampling Plan 426
Sampling and Nonsampling Errors 426
3

FROM THE FRONT LINE: SECRETS OF SAMPLE MANAGEMENT 428

Probability Sampling Methods 429

Simple Random Sampling 429
Systematic Sampling 429
Stratified Sampling 430
Cluster Sampling 432
3

GLOBAL RESEARCH: AREA SAMPLING FRAME USED TO TALLY LIVESTOCK

POPULATION FOR DISEASE CONTROL

Nonprobability Sampling Methods

Convenience Samples 435
Judgment Samples 436
Quota Samples 436
Snowball Samples 436
3

433

435

PRACTICING MARKETING RESEARCH: E-MAIL SURVEYS OF WEB SITE USAGEWHEN

SNOWBALLING FAILS TO SNOWBALL

437

Internet Sampling 438

Summary 439
Key Terms & Definitions 440
IB Questions for Review & Critical Thinking 441
B Working the Net 442
Real-Life Research 13.1: The Research Group 442
M Real-Life Research 13.2: New Mexico National Bank

14 Sample Size Determination 444

Determining Sample Size for Probability Samples
Budget Available 446
Rule of Thumb 446
Number of Subgroups Analyzed 446
3
3

443

446

PRACTICING MARKETING RESEARCH: SAMPLE SIZE PLANNINGTECHNICAL

SUGGESTIONS FROM A STATISTICIAN
447
PRACTICING MARKETING RESEARCH: FACTORS TO CONSIDER IN DETERMINING
OPTIMAL SAMPLE SIZE
448

Traditional Statistical Methods

449

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Contents
Normal Distribution 449
General Properties 449
Standard Normal Distribution 450
Population and Sample Distributions 452
Sampling Distribution of the Mean 452
Basic Concepts 453
3

GLOBAL RESEARCH: NONRESPONSE BIAS IN A DUTCH ALCOHOL CONSUMPTION

STUDY
455

Making Inferences on the Basis of a Single Sample

Point and Interval Estimates 457
Sampling Distribution of the Proportion 457
3

456

GLOBAL RESEARCH: WHEN YOUR EFFECTIVE SAMPLE SIZE CAN BE AS SMALL AS

ONLY 5
458

Determining Sample Size 459

Problems Involving Means 459
3

PRACTICING MARKETING RESEARCH: HARRIS POLL ON "MARGIN OF ERROR" FINDS

IT IS WIDELY MISUNDERSTOOD 461

Problems Involving Proportions 462

Determining Sample Size for Stratified and Cluster Samples
Population Size and Sample Size 463
3

PRACTICING MARKETING RESEARCH: CONFIDENCE LEVEL AND SAMPLE SIZE

WHAT'S THE IDEAL RELATIONSHIP? 464

Determining How Many Sample Units Are Needed

3

463

465

PRACTICING MARKETING RESEARCH: ESTIMATING WITH PRECISION HOW MANY

PHONE NUMBERS ARE NEEDED 466

Statistical Power 467

B Summary 468
Key Terms & Definitions 470
H Questions for Review & Critical Thinking 470
Working the Net 471
Real-Life Research 14.1: Millennium Telecom 471
B Real-Life Research 14.2: HealthLife 472
H SPSS Exercises for Chapter 14 473

15 Data Processing and Fundamental Data Analysis

Overview of the Data Analysis Procedure 478
Step One: Validation and Editing 478
Validation 478
3
3

GLOBAL RESEARCH: EMPIRICAL LESSONS FROM GERMANY ON FAKED SURVEY

INTERVIEWS
479
GLOBAL RESEARCH: PSYCHOLOGISTS STUDY THE MOTIVATIONS OF INTERVIEW
FALSIFIERS IN AFRICA
480

Editing
3

481

PRACTICING MARKETING RESEARCH: TIPS TO AVOID INTERVIEW FRAUD AT THE LEVEL

OF THE DATA-COLLECTION COMPANY 482

Step Two: Coding

3

476

486

PRACTICING MARKETING RESEARCH: PUSH POLLING: WHEN INTERVIEW DATA

ACCURACY IS SKEWED BY POLITICS

Coding Process 488

Automated Coding Systems

487

489

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Step Three: Data Entry 490
Intelligent Entry Systems 490
The Data Entry Process 490
Scanning 491
Step Four: Logical Cleaning of Data 491
Step Five: Tabulation and Statistical Analysis
One-Way Frequency Tables 493
Cross Tabulations 497
3
3

PRACTICING MARKETING RESEARCH: SIX PRACTICAL TIPS FOR EASIER CROSS

TABULATIONS
498
FROM THE FRONT LINE: SECRETS OF DEVELOPING A GOOD
SET OF TABLES
499

Graphic Representations of Data

Line Charts 501
Pie Charts 501
Bar Charts 502
3

493

500

PRACTICING MARKETING RESEARCH: EXPERT TIPS ON MAKING

BAD GRAPHICS EVERY TIME
503

Descriptive Statistics 505

Measures of Central Tendency 505
Measures of Dispersion 506
Percentages and Statistical Tests 508
M Summary 508
H Key Terms & Definitions 509
Questions for Review & Critical Thinking 510
Working the Net 512
B Real-Life Research 15.1: Taco Bueno 512
H Real-Life Research 15.2: Tan Fans 513
I SPSS Exercises for Chapter 15 514

16 Statistical Testing of Differences and Relationships

Evaluating Differences and Changes 520
Statistical Significance 520
Hypothesis Testing 521
Steps in Hypothesis Testing 521
3

PRACTICING MARKETING RESEARCH: WHY WE NEED STATISTICAL TESTS OF

DIFFERENCES
522

Types of Errors in Hypothesis Testing

3

518

524

PRACTICING MARKETING RESEARCH: WHY IN MEDICINE A TWO-TAILED TEST IS

PREFERABLE TO A ONE-TAILED TEST
526

Accepting Ho versus Failing to Reject (FTR) Ho 527

One-Tailed versus Two-Tailed Test 527
Example of Performing a Statistical Test 527
3

FROM THE FRONT LINE: TIPS ON SIGNIFICANCE TESTING

Commonly Used Statistical Hypothesis Tests 531

Independent versus Related Samples 531
Degrees of Freedom 531
Goodness of Fit 532
Chi-Square Test 532

528

xix

xx I Contents
3

PRACTICING MARKETING RESEARCH: A SIMPLE FIELD APPLICATION

OF CHI-SQUARE GOODNESS OF FIT
534

Hypotheses about One Mean

ZTest 538
3

538

PRACTICING MARKETING RESEARCH: TAKING THE ZTEST INTO THE CLASSROOM

AND COURTROOMTwo PRACTICAL USES

tTest
3

539

540

PRACTICING MARKETING RESEARCH: t TESTS AND THE EXCEPTIONAL,

OR EXCEPTIONALLY POOR, SALESPERSON

541

Hypotheses about Two Means 545

Hypotheses about Proportions 546
Proportion in One Sample 546
Two Proportions in Independent Samples
Analysis of Variance (ANOVA) 548
3

547

PRACTICING MARKETING RESEARCH: 12 COINS, 3 SHOPS, 2 MICROBIOLOGISTS,

AND 1 TESTANOVA

550

p Values and Significance Testing 553

H Summary 554
B Key Terms & Definitions 554
B Questions for Review & Critical Thinking 555
B Working the Net 558
fl Real-Life Research 16.1: I Can't Believe It's Yogurt
Real-Life Research 16.2: New Mexico Power 559
B SPSS Exercises for Chapter 16 560

558

17 Bivariate Correlation and Regression 564

Bivariate Analysis of Association 566
Bivariate Regression 566
Nature of the Relationship 566
Example of Bivariate Regression 567
3
3

PRACTICING MARKETING RESEARCH: BIVARIATE REGRESSION ANALYSIS SHOWS

HIGHER CANCER RATES AMONG CALIFORNIA FARM WORKERS
569
PRACTICING MARKETING RESEARCH: WHEN LEAST-SQUARES REGRESSION CAN BIAS
THE DATAFOUR ALTERNATIVES

570

Correlation Analysis 580

Correlation for Metric Data: Pearson's ProductMoment Correlation 580
3

3
3
3

B
B
B
B

PRACTICING MARKETING RESEARCH: A NOVEL APPLICATION:

USING THE PEARSON PRODUCT-MOMENT CORRELATION TO
STUDY SAYINGS IN THE GOSPEL OF THOMAS
581
GLOBAL RESEARCH: RETHINKING THE APPLICABILITY OF PEARSON'S
PRODUCT-MOMENT CORRELATION
582
GLOBAL RESEARCH: PEARSON'S PRODUCT-MOMENT CORRELATION FINE-TUNES
MEDICAL STATISTICS
584
PRACTICING MARKETING RESEARCH: WHEN BIVARIATE AND MULTIVARIATE
CORRELATION COMBINED GIVE THE BEST PICTURE
585

Summary 586
Key Terms & Definitions 587
Questions for Review & Critical Thinking
Working the Net 589

587

Contents
El Real-Life Research 17.1: Axcis Athletic Shoes 589
S Real-Life Research 17.2: Find Any Error? 590
H SPSS Exercises for Chapter 17 591

18 Multivariate Data Analysis 594

Multivariate Analysis Procedures 596
Multivariate Software 597
Multiple Regression Analysis 597
Applications of Multiple Regression
Analysis 598
Multiple Regression Analysis Measures 598
Dummy Variables 599
Potential Use and Interpretation Problems 600
3

PRACTICING MARKETING RESEARCH: TOURISM MARKETING STRATEGY AND HOW

MULTIVARIATE ANALYSIS CAN DRIVE IT

601

Example of Multiple Regression Analysis 602

Multiple Discriminant Analysis 606
Applications of Multiple Discriminant Analysis 607
Example of Multiple Discriminant Analysis 607
Cluster Analysis 610
Procedures for Clustering 611
3

GLOBAL RESEARCH: WHO IS USING ALL THOSE INTERNET-CONNECTED

MOBILE PHONES? CLUSTER ANALYSIS REVEALS THEIR
DEMOGRAPHICS
612

GLOBAL RESEARCH: CLUSTER ANALYSIS IDENTIFIES EXERCISE MOTIVATIONAL

FACTORS IN BRITISH TEENAGERS
615

Example of Cluster Analysis

Factor Analysis 616

Factor Scores 617
Factor Loadings 618
3

613

FROM THE FRONT LINE: SECRETS TO FINDING THE RIGHT NUMBER

OF FACTORS
619

Naming Factors 620

Number of Factors to Retain 620
Example of Factor Analysis 620
Perceptual Mapping 621
Example of Perceptual Mapping 622
3

PRACTICING MARKETING RESEARCH: HOW PERCEPTUAL MAPPING HELPED

MARKETERS TAILOR A CHRISTMAS THEME
623

Conjoint Analysis 624

Example of Conjoint Analysis
3
3

625

GLOBAL RESEARCH: BRITISH PHYSICIANS FAVOR CONJOINT ANALYSIS IN

HEALTHCARE RESEARCH
625
GLOBAL RESEARCH: HOW CONJOINT ANALYSIS HIGHLIGHTED PUBLIC ATTITUDES
ABOUT WIND FARMS
630

Limitations of Conjoint Analysis 631

MB Summary 631
B Key Terms & Definitions 632
E3 Questions for Review & Critical Thinking
M Working the Net 635

633

xxi

xxii

Contents
B Real-Life Research 18.1: Satisfaction Research for Pizza Quik
B Real-Life Research 18.2: Custom Car Wash Systems 637
Appendix: United Wireless Communications Data Set 638
Research Objectives 638
Methodology 638
Description of the Data Set 638
Ethical Dilemma 641
H SPSS Exercises for Chapter 18 642

635

19 The Research Report 646

The Research Report 648
Organizing the Report 648
Interpreting the Findings 649
3
3

PRACTICING MARKETING RESEARCH: THE IMPORTANCE OF CONSISTENCY IN REPORT

WRITINGTHE STYLE SHEET 650
FROM THE FRONT LINE: HOW TO WRITE A GOOD REPORT 652

Format of the Report 653

Formulating Recommendations
3
3

The Presentation 656

Making a'Presentation
3

659

PRACTICING MARKETING RESEARCH: TOO MANY EXTRA GRAPHICS CAN SKEW

DECISION MAKING IN VIEWERS 660

Presentations on the Internet

3

653

PRACTICING MARKETING RESEARCH: COLLEGE STUDENTS LEARN BETTER IN

POWERPOINT-DRIVEN CLASSES 654
PRACTICING MARKETING RESEARCH: SIX FASHION TRENDS AND FOUR COGNITIVE
SCIENCE TIPS FOR POWERPOINT 655

661

PRACTICING MARKETING RESEARCH: PRESENTING

MORE CONFIDENTLY 662

B Summary 663
HO Key Terms & Definitions 663
H Questions for Review & Critical Thinking 664
Working the Net 664
H Real-Life Research 19.1: Zotech Dog Collars 664
B Real-Life Research 19.2: TouchWell Tracking Research

665

20 Planning, Organizing, and Controlling the Research Function

Marketing Research Supplier Management 672
What Do Clients Want? 672
Communication 672
Managing the Research Process 673
3
3

PRACTICING MARKETING RESEARCH: DOING HIGH-QUALITY WORK

O N TIME
674
PRACTICING MARKETING RESEARCH: MANAGING A MARKETING
RESEARCH FIRM FOR PROFITABILITY 677

Client Profitability Management 679

Staff Management and Development 680
3

FROM THE FRONT LINE: TIPS FOR MANAGING DIFFICULT CLIENTS

Managing a Marketing Research Department

682

681

670

Contents | xxiii
Allocating the Research Department Budget 682
Selecting the Right Marketing Research Suppliers 684
Moving Marketing Research into a Decision-Making Role 685
H Summary 689
H Key Terms & Definitions 690
B Questions for Review & Critical Thinking 690
I I Working the Net 691
13 Real-Life Research 20.1: Benson Research Deals with Growth 691
Real-Life Research 20.2: Maxwell Research Considers Outsourcing to
Cross-Tab in India 692
Photo Credits

694

Appendix One: Comprehensive Cases A-1

A Biff Targets an Online Dating Service for College Students A-2
B Freddy Favors Fast Food and Convenience for College Students
C Superior Online Student TravelA Cut Above A-9
D Rockingham National Bank Visa Card Survey A-13

Appendix Two: Considerations in Creating a Marketing Plan

Appendix Three: Statistical Tables

Endnotes A-32

Glossary

Index 1-1

G-1

A-25

A-21

A-5