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Chapter Outline

1) Overview

2) What does Marketing Research Encompass


3) The Nature of Marketing Research

4) Definition of Marketing Research


5) A Classification of Marketing Research

6) The role of Marketing Research in MIS and DSS


7) Marketing Research Suppliers and Services

8) Selecting a Research Supplier

Chapter Outline (cont.)


9) Careers in Marketing Research

10) Marketing Research Process


11) The Department Store Patronage Project

12) International Marketing Research


13) Ethics in Marketing Research

14) Internet and Computer Applications


15) Focus on Burke

16) Summary
17) Key Terms and Concepts
18) Acronyms

RIP 1.1

The American Marketing Association


Redefines Marketing Research

Marketing research is the


function which links the
consumer, customer, and
public to the marketer
through

Used to identify and


define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance
Improve understanding of
marketing as a process

Fig 1.1

The Role of Marketing Research


Customer Groups

Consumers
Employees
Shareholders
Suppliers
Uncontrollable
Environmental
Factors

Controllable
Marketing
Variables

Marketing
Research

Product
Pricing
Promotion
Distribution
Assessing
Information
Needs

Providing
Information

Marketing
Decision
Making

Marketing Managers

Market Segmentation
Target Market Selection
Marketing Programs
Performance & Control

Economy
Technology
Laws & Regulation
Social & Cultural
Factors
Political Factors

Market Research
Specifies the information
necessary to address these
issues
Manages and implements the
data collection process
Analyzes the results
Communicates the findings
and their implications

Fig 1.2

A Classification of Marketing Research


Marketing Research

Problem
Identification Research
Market potential research
Market share research
Market characteristics research
Sales analysis research
Forecasting research
Business trends research

Problem Solving
Research

Segmentation Research
Product Research
Promotion Research

Distribution Research

Table 1.1

Problem Solving Research

Determine the basis of segmentation


Establish market potential and
responsiveness for various
segments
Select target markets
Create lifestyle profiles:demography,
media, and product image
characteristics

Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing

Control score tests

Table 1.1 Contd.


PRICING RESEARCH

Importance of price in brand selection


Pricing policies

$ALE

Product line pricing


Price elasticity of demand
Initiating and responding to price changes

PROMOTIONAL RESEARCH

0.00% APR

Optimal promotional budget


Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Claim substantiation
Evaluation of advertising effectiveness

Table 1.1 Contd.


Determine
Types of distribution

Attitudes of Channel members


Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets

Fig 1.3

Management Information Systems


Versus Decision Support Systems
MIS

DSS
problems

Structured Problems

Unstructured Problems

Use of Reports

Use of Models

Rigid Structure

User Friendly Interaction

Information Displaying Restricted

Adaptability

Can Improve Decision Making

Can Improve Decision Making

by Clarifying Data

by Using What if Analysis

Figure 1.4

RESARCH
SUPPLIERS

INTERNAL

FULL SERVICE
Syndicate
Services
Standardized
Services

Internet
Services
Customize
d
Services

EXTERNAL

LIMITED SERVICE
Branded
Products
and Services

Field
Services
Coding and
Data Entry
Services

Analytical
Services

Data
Analysis
Services

RIP 1.2

Organization of Marketing
Research at Oscar Mayer

Brand Research
Conducts Primary & Secondary
Research
Serves As Marketing
Consultants
Analyzes Market Trends
Advances the State of the Art in
Marketing Research

Marketing Systems and


Analytics (MSA)
Performs Sales Analysis
Based on Shipment & Store
Scanner Data

Supports Computer End


Users within Marketing
Department
Serves as Source of
Marketing Information

RIP 1.3

Rank
1997
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Top 50 Marketing
Research Organizations
Percent and
Total research
revenues from
Revenues from
revenues*
outside U.S.
outs ide U.S.
1996 Organization
(millions)
(millions)
(millions )
1 AC Nielsen Corp.
$1,391.6
77.7%
1081.6
2 Cognizant Corp.
1,339.1
49.2
659.1
3 Information Resources Inc.
456.3
19.6
89.6
6 Westat Inc.
182.0
0
0
8 NFO Worldwide Inc.
190.0***
21.4
35.8
4 the Arbitron Co.
165.2
0
0
7 Maritz Marketing Research Inc.
146.0
20
29.2
9 The Kantar Group Ltd.
127.1
20.2
25.7
10 The NPD Group Inc.
110.3
18.3
20.2
11 Market facts Inc.
100.1
7
7
5 Pharm. Marketing Services Inc.
91.6
46.0
42.1
12 Audits & Surveys Worldwide Inc.
68.9
43.5
30
14 BASES Worldwide
57.6
19.7
11.4
13 The M/A/R/C Group Inc.
57.3
1.5
0.1
15 Opinion Research Corp.
53.9
32.7
17.6
16 SOFRES Intersearch
53.0
15
8.5

RIP 1.3 Contd.


19
20
21
22
23
24
25
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

22
19
23
17
21
38
26
22
19
23
17
21
38
26
28
25
27
24
29
34
33
30
31
39
32

Burke Inc.
Macro International Inc.
Roper Starch Worldwide Inc.
Abt Associates Inc.
Elrick & Lavidge
IntelliQuest Inc.
Wirthlin Worldwide
Burke Inc.
Macro International Inc.
Roper Starch Worldwide Inc.
Abt Associates Inc.
Elrick & Lavidge
IntelliQuest Inc.
Wirthlin Worldwide
Total Research Corp.
MORPACE International
C&R Research Services Inc.
Walker Information
Lieberman Research Worldwide
Diagnostic Research International Inc.
IPSOS-ASI Inc.
Yankelovich Partners Inc.
Custom Research Inc.
Harris Black International Ltd.
Market Strategies Inc.

43.8
42.9
40.0
39.3
37.1
36.5
35.5
43.8
42.9
40.0
39.3
37.1
36.5
35.5
33.1
31.2
31.1
30.9
28.6
26.7
26.7
26.4
25.8
25.7
25.2

22.8
38.5
17.8
0
5.7
29
16
22.8
38.5
17.8
0
5.7
29
16
27.2
17.9
0
21.8
13.3
3.1
0
0
0
7.4
1.6

10
16.5
7.1
0
2.1
10.6
5.7
10
16.5
7.1
0
2.1
10.6
5.7
9
5.6
0
6.7
0
0.8
0
0
0
1.9
0.4

RIP 1.3 Contd.


35 39 Harris Black International Ltd.
36 32 Market Strategies Inc.
37 37 ICR-Int'l Communications Research
38 36 Data Development Corp.
39 35 Chilton Research Services
40 40 Market Decisions
41 -- National Research Corp.
42 43 Response Analysis Corp.
43 -- Marketing and Planning Systems
44 46 MATRIXX Marketing Research
45 41 RDA Group Inc.
46 45 Guideline Research Corp.
47 48 Directions Research Inc.
48 44 Conway/Milliken & Associates
49 49 TVG Inc.
50 50 Savitz Research Center Inc.

25.7
25.2
22.3
22.2
21.5
18.2
16.3
15.9
14.2
14.1
14.0
13.3
13.2
13.0
12.3
12.0
Subtotal, Top 50
$5,479.7
All other (124 CASRO member companies not included 535.7

7.4
1.6
0
8.7
0
0
0
0
6
41.1
30
2.3
0
0
0
0
39.30%

1.9
0.4
0
1.9
0
0
0
0
0.9
5.8
4.2
0.3
0
0
0
0
$2,153.20

RIP 1.4

Full Services Versus Limited Service


Marketing Research Firms

Susan Adelman and Kevin Heaken of Survey Service, Inc. and


Heaken Research, both field survey firms, find that more often
today clients will perform the problem definition and design the
survey instrument in-house to subcontract the data collection. This
is done in order to cut costs in market research. This has also
changed the method and approach of the full-service companies to
meet new customer needs. Burke Marketing Research, a large fullservice company, has replaced many in-house departments for endusers who have cut their in-house staff because of a downsizing
trend. An example would be Ocean Spray or Quaker Oats which
have cut marketing staff and subcontract all marketing research to
companies such as Burke and Maritz Marketing Research.

RIP 1.5 Contd.

So now, the end-user simply provides the full-service company with


a management decision problem, which is interpreted and
articulated into the marketing research problem by a full-service
company and the other steps are also performed by the market
research company. Some companies believe that they can reduce
costs by going straight to the field-service companies. However,
according to Cathy Kneidl, VP for Quality Control Services, a
branch of Maritz, this is a mistake because the steps leading up to
the data collection are omitted, which renders the market research
questionable. The approach and process of market research are
critical to obtain data that can be useful or can be interpreted to
improve or make sound management decisions. The issue is
determining if the company requires a full-service company, which
would undertake the entire research process, or is field research
satisfactory, as in the case of Samsonite. Samsonite wanted to test
the market for responses to various suitcase colors. For this
research, a full-service firm was not necessary, only a survey had to
be administered to confirm trends or preferences.

Fig 1.5

Selected Marketing Research


Career Descriptions

Vice-President of Marketing Research: The senior position in marketing


research. The vice president (VP) is responsible for the entire marketing
research operation of the company and serves on the top management team.
This person sets the objectives and goals of the marketing research
department.
Research Director: Also a senior position. The research director has the
general responsibility for the development and execution of all the marketing
research projects.

Assistant Director of Research: Serves as an administrative assistant to the


director and supervises some of the other marketing research staff members.
(Senior) Project Manager: Has overall responsibility for design,
implementation, and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on theory and
application of statistical techniques. Responsibilities include experimental
design, data processing, and analysis.

Selected Marketing Research


Career Descriptions
Vice President of Marketing
Research

Part of companys top management


team

Directs companys entire market

research operation

Sets the goals & objectives of the


marketing research department

Research Director
Also part of senior
management
Heads the development
and execution of all
research projects

Assistant Director of Research


administrative assistant to director
supervises research staff members

Senior Project Manager


Responsible for design, implementation, &
research projects

Senior
Analyst
Fig 1.5
Contd.

Participates in the development of


projects
Carries out execution of assigned
projects
Coordinates the efforts of analyst,
junior analyst, & other personnel
development of research design
and data collection
Prepares final report

Statistician/Data Processing

Serves as expert on theory and


application on statistical techniques
Oversees experimental design, data
processing, and analysis

Analyst

Handles details in execution of


project
Designs & pretests questionnaires
Conducts
Preliminary analysis of data

Junior Analyst

Secondary data analysis


Edits and codes questionnaires
Conducts preliminary analysis of data

Field Work Director

Handles selection, training,


supervision, and evaluation of
interviewers and field workers

RIP 1.5

A Sample of
Marketing
Research Jobs

RIP 1.6

Marketing Research at
Marriott Corporation

Marriott functions in three main areas: lodging (Marriott


Hotels and Resorts, Marriott Suites, Residence Inns,
Courtyard Hotels, and Fairfield Inns), contract services
(Marriott Business Food and Services, Education, HealthCare, In-Flight Services, and Host International, Inc.) and
restaurants (family restaurants, Travel Plazas, and Hot
Shops). It is probably best known, however, for its lodging
operations.
Marketing research at Marriott is done at the
corporate level through the Corporate Marketing
Services (CMS). CMSs goals include providing
the management of the different areas of Marriott
with the information they need to better
understand the market and the customer.

RIP 1.6 Contd.

CMS conducts many different types of research. They use


quantitative and qualitative research approaches such as
telephone and mail surveys, focus groups, and customer intercept
to gain more information on market segmentation and sizing,
product testing, price sensitivity of consumers, consumer
satisfaction, and the like.
The process of research at Marriott is a simple stepwise
progression. The first step is to better define the problem to be
addressed and the objectives of the client unit and to develop an
approach to the problem. The next step is to formulate a research
design and design the study. CMS must decide whether to
conduct its own research or buy it from an outside organization.

RIP 1.6 Contd.

If the latter option is chosen, CMS must decide whether or not to


use multiple firms. Once a decision is made, the research is carried
out by collecting and analyzing the data. Then, CMS presents the
study findings. The final step in the research process is to keep a
constant dialogue between the client and the CMS. During this
stage, CMS may help explain the implications of the research
findings or may make suggestions for future actions.
Marketing Research

RIP 1.7

Marketing Research Associations


Online

Domestic
AAPOR: American Association for Public Opinion Research
(www.aapor.org)
AMA: American Marketing Association (www.ama.org)

ARF: The Advertising Research Foundation (www.amic.com/arf)


CASRO: The Council of American Survey Research Organizations
(www.casro.org)
MRA: Marketing Research Association (www.mra-net.org)
QRCA: Qualitative Research Consultants Association
(www.qrca.org)
RIC: Research Industry Coalition (www.research industry.org)

RIP 1.7 Contd.

International
ESOMAR: European Society for Opinion and Marketing Research
(www.esomar.nl)
MRS: The Market Research Society (UK)
(www.marketresearch.org.uk)
MRSA: The Market Research Society of Australia
(www.mrsa.com.au)
PMRS: The Professional Marketing Research Society (Canada)
(www.pmrs-aprm.com)

Defining the Marketing


Research Problem and
Developing an Approach

Chapter Outline
1) Overview

2) Importance of Defining a Problem


3) The Process of Defining a Problem and
Developing an Approach
4) Tasks involved in Problem Definition
i. Discussions with Decision Makers
ii. Interviews with Industry Experts
iii. Secondary Data Analysis
iv. Qualitative Research

Chapter Outline (cont.)


5) Environmental Context of the Problem
i.

Past information and Forecasts

ii. Resources and Constraints


iii. Objectives
iv. Buyer Behavior
v. Legal Environment
vi. Economic Environment

vii. Marketing and Technological Skills


6) Management Decision Problem and
Marketing Research Problem

Chapter Outline (cont.)


7) Defining the Marketing Research Problem
8) Components of an Approach
i. Objective / Theoretical Foundations
ii. Analytical Model
iii. Research questions
iv. Hypothesis
v. Relevant Characteristics

9) International Marketing Research


10) Ethics in Marketing Research

11) Internet and Computer Applications

Chapter Outline (cont.)


12) Focus on Burke
13) Summary

14) Key Terms and Concepts


15) Acronyms

RIP 2.1

Chain Restaurant Study


One day I received a
phone call from a
research analyst who
introduced himself as one
of our alumni.
He was working for a
restaurant chain in town
and wanted help
analyzing the data he had
collected while
conducting a marketing
research study.O

When we met, he presented me with a copy of the


questionnaire and asked how he should analyze the
data. My first question to him was,

When he looked
perplexed, I
explained that data
analysis in not an
independent
exercise.

Rather, the goal of data analysis is to PROVIDE


INFORMATION RELATED TO THE PROBLEM
COMPONENTS.

I was surprised to learn that he


did not have a clear
understanding of the marketing
research problem and that a
written definition did not exist.
So before going any further, I had
to define the marketing research
problem.
Once that was done, I found that
much of the data collected was not
relevant to the problem. In this
sense, the whole study was a waste of
resources. A new study had to be
designed and implemented to
address the problem defined.

Fig. 2.1

The Problem Definition Process


Tasks Involved

Discussion
with
Decision Maker(s)

Interviews
with
Experts

Secondary
Data
Analysis

Qualitative
Research

Environmental Context of the Problem

Step I: Problem Definition


Management Decision Problem
Marketing Research Problem

Step II: Approach to the Problem

Objective/
Theoretical
Foundations

Analytical
Model:
Verbal,
Graphical,
Mathematical

Research
Questions

Hypotheses

Step III: Research Design

Characteristics/
Factors
Influencing
Research
Design

Factors to be Considered in the


Environmental Context of the Problem

Fig. 2.2

PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS


OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT
MARKETING AND TECHNOLOGICAL
SKILLS

Fig. 2.3

Proper Definition of the


Research Problem
Marketing Research Problem
Broad Statement

Specific Components

Table 2.1

The Role of Theory in


Applied Marketing Research

Research Task

Role of Theory

1. Conceptualizing

Provides a conceptual foundation and understanding of the basic processes underlying

and identifying

the problem situation. These processes will suggest key dependent and independent

key variables

variables.

2. Operationalizing

Theoretical constructs (variables) can suggest independent and dependent variables

key variables

naturally occurring in the real world.

3. Selecting a

Causal or associative relationships suggested by the theory may indicate whether a causal

research design

or descriptive design should be adopted.

4. Selecting a

The theoretical framework may be useful in defining the population and suggesting

sample

variables for qualifying respondents, imposing quotas, or stratifying the population (see
Chap. 11).

5. Analyzing and

The theoretical framework (and the models, research questions and hypotheses based on

interpreting data

it) guide the selection of a data analysis strategy and the interpretation of results (see
Chap. 14).

6. Integrating

The findings obtained in the research project can be interpreted in the light of previous

findings

research and integrated with the existing body of knowledge.

Fig. 2.4

Development of Research
Questions and Hypotheses
Components of the
Marketing Research Problem

Objective/
Theoretical
Framework

Research Questions

Analytical
Model
Hypotheses

RIP 2.2

At United, Food is Uniting the Airline


With Travelers

United Airlines, as other major airlines, had to


deal with passenger loyalty (management
decision problem: how to attract more and more
loyal passengers). The broad marketing research
problem was to identify the factors that influence
loyalty of airline travelers.

The basic answer is to improve service. Exploratory


research, theoretical framework, and empirical
evidence revealed that the consumers choice of an
airline is influenced by: safety, price of the ticket,
frequent-flyer program, convenience of scheduling,
and brand name.

RIP 2.2 Contd.

A graphical model stipulated that


consumers evaluate competing
airlines based on factors of the
choice criteria to select a preferred
airline. The problem was that
major airlines were quite similar
on these factors. Indeed, "airlines
offer the same schedules, the same
service, and the same fares.
Consequently, United Airlines had
to find a way to differentiate itself.
Food turned out to be the solution.

Secondary data, like the J. D Power & Associates'


survey on "current and future trends in airline
food industry", indicated that "food service is a
major contributor to customers loyalty". This
survey also emphasized the importance of food
brands.

RIP 2.2 Contd.

The airline's Marketrak survey told United Airlines that


"customers wanted more varied and up-to date food.
The following research questions and hypotheses may be
posed.

RQ1 How important is food for airline customers?


H1:

Food is an important factor for airline travelers

H2:

Travelers value branded food

H3:

Travelers prefer larger food portions, but with


consistent quality

H4: Travelers prefer exotic food

RIP 2.2 Contd.

Characteristics which influence the research design


included the identification of competing airlines (Delta,
American, etc.), factors of the choice criteria (already
identified), measurement of airline travel and loyalty.

This kind of research helped United Airlines to define their


marketing research problem, and develop the approach. Focus
groups and surveys were conducted to check customers'
perceptions of food in United Airlines' aircraft. The results
provided support for all the hypotheses (H1 to H4). United
Airlines then made a few changes: new "culinary menus,"
larger portions of food, new coffee and branded products (e.g.,
Godiva chocolates). This resulted in better service, increasing
customer satisfaction and fostering loyalty.

RIP 2.3

The home page for the Coca Cola Enterprises


(http://www.cce.com) provides:

A quiz relating the 150 brands of the cold drinks sold


by coca cola in over 200 countries.
A user group interaction, in which answers on
different topics are received from thousands of
customers.
The Chairmans report.
Relevant statistics on sales of various products.
Balance sheet information.
Further, a lot of information about the coca cola
company can be obtained from the home page, e.g.,
company overview, production cycle, contacts,
products, statistics, territories, news releases,
chronology, summary of financial information, etc.

Chapter III

Research Design

Chapter Outline
1) Overview
2) Research Design: Definition
3) Research Design: Classification
4) Exploratory Research
5) Descriptive Research
i. Cross-Sectional Design
ii. Longitudinal Design
iii. Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
6) Causal Research
7) Relationships Among Exploratory, Descriptive, and
Causal Research

Chapter Outline (cont.)


8) Potential Sources of Error
i. Random Sampling Error
ii. Non-sampling Error
a. Non-response Error
b. Response Error
9) Budgeting and Scheduling
10) Marketing Research Proposal
11) International Marketing Research

Chapter Outline (cont.)


12) Ethics in Marketing Research
13) Internet and Computer Applications
15) Focus on Burke
14) Summary
15) Key terms and Concepts
16) Acronyms

definition
_
_
_

Framework or blueprint
Details the procdure discussed in prv step
nuts and bolts of implementing that
approach.

Fig. 3.1

A Classification of Marketing
Research Designs
Research Design
Conclusive
Research Design

Exploratory
Research Design

Descriptive
Research
Cross-Sectional
Design
Single CrossSectional Design

Casual
Research

Longitudinal
Design

Multiple CrossSectional Design

Tasks
_
_
_
_
_

Describe the exploratory phase of research.


Define info needed
Specify measurement and scaling procedure
Construct questionaries
Sampling process and size.

Table 3.1

Objective:

Difference between Exploratory and


Conclusive Research
Exploratory

Conclusive

To provide insights and


understanding.

To test specific hypotheses


and examine relationships.

Character- Information needed is


istics:
defined only loosely.
Research process is flexible
and unstructured. Sample
is small and nonrepresentative. Analysis of
primary data is qualitative.

Information needed is clearly


defined. Research process is
formal and structured. Sample
is large and representative.
Data analysis is quantitative.

Findings
/Results:

Conclusive.

Tentative.

Outcome: Generally followed by


further exploratory or
conclusive research.

Findings used as input into


decision making.

Table 3.2

A Comparison of Basic Research Designs


Exploratory

Objective:

Discovery of
ideas and
insights

Causal

Describe market
characteristics or
functions

Determine cause
and effect
relationships

Marked by the prior


formulation of
specific
hypotheses

Manipulation of
one or more
independent
variables

Often the front


end of total
research design

Preplanned and
structured design

Control of other
mediating
variables

Expert surveys
Pilot surveys
Secondary data
Qualitative
research

Secondary data
Surveys
Panels
Observation and
other data

Experiments

Characteristics: Flexible,
versatile

Methods:

Descriptive

Table 3.3

Consumption of Soft Drinks by


Various Age Cohorts

Age

1950

1960

1969

1979

8-19
20-29
30-39
40-49
50+

52.9
45.2
33.9
23.2
18.1

62.6
60.7
46.6
40.8
28.8
C1

73.2
76.0
67.7
58.6
50.0
C2

81.0
75.8
71.4
67.8
51.9
C3

C1: cohort born prior to 1900


C2: cohort born 1901-10
C3: cohort born 1911-20
C4: cohort born 1921-30

C8
C7
C6
C5
C4

C5: cohort born 1931-40


C6: cohort born 1940-49
C7: cohort born 1950-59
C8: cohort born 1960-69

Table 3.4

Relative Advantages and Disadvantages of


Longitudinal and Cross-Sectional Designs

Evaluation
Criteria

Cross-Sectional Longitudinal
Design
Design

Detecting Change
Large amount of data collection
Accuracy
Representative Sampling
Response bias

+
+

Note: A + indicates a relative advantage over the


other design, whereas a - indicates a relative
disadvantage.

+
+
+
-

Table 3.5

Cross-Sectional Data May


Not Show Change

Brand Purchased

Brand A
Brand B
Brand C
Total

Time Period
Period 1
Survey

Period 2
Survey

200
300
500
1000

200
300
500
1000

Table 3.6

Brand
Purchased
in Period 1
Brand A
Brand B
Brand C
Total

Longitudinal Data May


Show Substantial Change
Brand Purchased in Period 2
Brand A

Brand B

Brand C

100
25
75
200

50
100
150
300

50
175
275
500

Total
200
300
500
1000

RIP 3.1

NASCAR Tries to Shed Redneck Image

The National Association of Stock Car Auto Racing


(NASCAR) in the past has appealed to Southerners
with lower incomes that work in laborer-type jobs.
NASCAR, in an attempt to increase its audience,
chose to make-over its stereotyped image and used
exploratory and descriptive research to generate
ideas for reaching a more affluent market.

NASCAR conducted exploratory


research to identify ways to penetrate
the non-race market, reach younger
fans, and build its brand image
across the nation.

Extensive focus groups revealed that:


(1) NASCAR had a rural sports image,
(2) that this image was not necessarily
negative, and
(3) companies that supported sports were
viewed positively.

RIP 3.1 Contd.

Survey research showed that:


29% of fans had income over
$50,000
27% worked as professionals or
managers
73% had a positive rural sports
image of NASCAR
71% of fans purchased products of
companies that support the sport

NASCAR, of course, sought to increase these


percentages and developed marketing plans
that would build on the image of NASCAR as a
rural sport by emphasizing that most of America
is suburbs and small towns.

NASCAR moved to
reach all of America,
not just the traditional
Southern market.

Fig. 3.2

Potential Sources of Error in


Research Designs
Total Error

Non-sampling
Error

Random Sampling
Error

Response
Error

Researcher
Error
Surrogate Information Error
Measurement Error
Population Definition Error
Sampling Frame Error
Data Analysis Error

Interviewer
Errors
Respondent Selection Error
Questioning Error
Recording Error
Cheating Error

Non-response
Error

Respondent
Error
Inability Error
Unwillingness Error

Citicorp Banks on Exploratory, Descriptive, and


Causal Research
Marketing Research at Citicorp is typical in that it is
used to measure consumer awareness of products,
monitor their satisfaction and attitudes associated
with the product, track product usage and
diagnose problems as they occur. To accomplish
these tasks Citicorp makes extensive use of
exploratory, descriptive, and causal research. Often
it is advantageous to offer special financial
packages to specific groups of customers. In this
case, a financial package is being designed for
senior citizens.

RIP 3.2

The following seven step process was taken by


marketing research to help in the design.

RIP 3.2 Contd.

1) A taskforce was created to better define the market


parameters to include all the needs of the many
Citicorp branches. A final decision was made to
include Americans 55 years of age or older, retired and
in the upper half of the financial strata of that market.

2) Exploratory research in the form of secondary data


analysis of the mature or older market was then
performed and a study of competitive products was
conducted. Exploratory qualitative research involving
focus groups was also carried out in order to determine
the needs and desires of the market and the level of
satisfaction with the current products.
In the case of senior
citizens, a great deal
of diversity was found
in the market. This
was determined to be
due to such factors as
affluence, relative age,
and the absence or
presence of a spouse.

RIP 3.2 Contd.

3) The next stage of research was brainstorming. This


involved the formation of many different financial
packages aimed for the target market. In this case, a
total of 10 ideas were generated.

4) The feasibility of the 10 ideas generated in step 3 was


then tested. The ideas were tested on the basis of
whether they were possible in relation to the business.
The following list of questions was used as a series of
hurdles that the ideas had to pass to continue on to the
next step.
Can the idea be explained in a manner that the target
market will easily understand it?
Does the idea fit into the overall strategy of
Citicorp?

RIP 3.2 Contd.

Is there an available description of a specific target


market for the proposed product?
Does the research conducted so far indicate a
potential match for target market needs and is the
idea perceived to have appeal to this market?
Is there a feasible outline of the tactics
and strategies for implementing the program?
Have the financial impact and cost of the program
been thoroughly evaluated and determined to be in
line with company practices?
In this study, only one idea generated from the
brainstorming session made it past all the listed
hurdles and on to step 5.

5) A creative work-plan was then generated. This plan


was to emphasize the competitive advantage of the
proposed product as well as better delineate the
specific features of the product.

6) The previous exploratory research was now


followed up with descriptive research in the form of
mall intercept surveys of people in the target market
range. The survey showed that the list of special
features was too long and it was decided to drop the
features more commonly offered by competitors.
RIP 3.2 Contd.

7) Finally, the product was test


marketed in six of the Citicorp
branches within the target market.
Test marketing is a form of causal
research.
Given successful test
marketing results, the product is
introduced nationally.

RIP 3.3

The Greenfield of Online Research

Greenfield Online Research Center, Inc.


(http://www.greenfieldonline.com), based in
Westport, Connecticut, is a subsidiary of the
Greenfield Consulting Group. The Online
Research Center conducts focus groups,
surveys, and polls over the Internet. The
company has built up a panel of close to
200,000 Internet users, from which it draws
survey samples. The samples may be used
for descriptive research designs like single
or multiple cross sectional designs, as well
as longitudinal designs. Causal designs can
also be implemented. Respondents may also
be chosen from the registered Internet users.

RIP 3.3 Contd.

Internet users wishing to take part in surveys and


other projects begin by registering online at the
companys Web site. The registration consists of a
sign-up survey that asks for e-mail address, type of
computer used, personal interests and information
about the respondents household. Once an Internet
user is registered, Greenfield Online matches the
user with research studies that are well-suited to his
or her interests.
Incentives to take part in focus groups or special
surveys are offered by the companies whose
products or services are being researched. This
incentive is cash or valuable prizes. Incentives are
also offered to Internet users to encourage them to
register with Greenfields Internet panel.
New
registrants automatically qualify for prizes that are
awarded in monthly drawings.

Chapter V
Exploratory Research Design:
Qualitative Research

Chapter Outline
1) Overview
2) Primary Data: Qualitative versus Quantitative
Research
3) Rationale for using Qualitative Research Procedures
4) A Classification of Qualitative Research Procedures

5) Focus Group Interviews


i. Characteristics
ii. Planning and Conducting Focus Groups
iii. Telesessions
iv. Other Variations in Focus Groups
v. Advantages And Disadvantages of Focus Groups
vi. Applications of Focus Groups
6) Depth Interviews
i. Characteristics
ii. Techniques
iii. Advantages and Disadvantages of Depth Interviews
iv. Applications of Depth Interviews

7) Projective Techniques
i. Association Techniques
ii. Completion Techniques
a. Sentence Completion
b. Story Completion
iii. Construction Techniques
a. Picture Response
b. Cartoon Tests
iv. Expressive Techniques
a. Role Playing
b. Third-Person Technique
v. Advantages and Disadvantages of Projective
Techniques
vi. Applications of Projective Techniques

8) International Marketing Research


9) Ethics in Marketing Research
10) Internet and Computer Applications
11) Focus on Burke
12) Summary
13) Key Terms and Concepts
14) Acronyms

Fig. 5.1

A Classification of Marketing
Research Data
Marketing Research Data

Secondary Data

Primary Data

Qualitative Data

Descriptive
Survey
Data

Observational
and Other Data

Quantitative Data

Causal
Experimental
Data

Table 5.1

Qualitative versus Quantitative


Research
Qualitative Research

Quantitative Research

Objective

To gain a qualitative
understanding of the
underlying reasons and
motivations

To quantify the data and


generalize the results from
the sample to the population
of interest

Sample

Small number of nonrepresentative cases

Large number of
representative cases

Data Collection Unstructured

Structured

Data Analysis

Non-statistical

Statistical

Outcome

Develop an initial
understanding

Recommend a final course of


action

Fig. 5.2

A Classification of Qualitative
Research Procedures
Qualitative Research
Procedures

Direct (Non
disguised)

Focus Groups

Association
Techniques

Indirect
(Disguised)

Projective
Techniques

Depth Interviews

Completion
Techniques

Construction
Techniques

Expressive
Techniques

RIP 5.1

Sample Costs of a Focus Group

Item
Developing outline and screening participants
Moderators fee
Facility rental, recruiting
Food
Respondent incentives ($30*10 people)
Analysis and report

Cost
$ 200
500
800
100
300
500
$2,450

Extras
Videotaping
Travel costs for moderator and observers
Total

350
1,200
$4,000

Table 5.2

Characteristics of Focus Groups

Group Size

8-12

Group Composition

Homogeneous, respondents,
prescreened

Physical Setting

Relaxed, informal atmosphere

Time Duration

1-3 hours

Recording

Use of audiocassettes and videotapes

Moderator

Observational, interpersonal, and


communication skills of the moderator

RIP 5.2

Key Qualifications of
Focus Group Moderators

1. Kindness with firmness: The moderator must combine a


disciplined detachment with understanding empathy so as to
generate the necessary interaction.
2. Permissiveness: The moderator must be permissive yet alert to
signs that the groups cordiality or purpose is disintegrating.
3. Involvement: The moderator must encourage and stimulate
intense personal involvement.
4. Incomplete understanding: The moderator must encourage
respondents to be more specific about generalized comments by
exhibiting incomplete understanding.

RIP 5.2 Contd.

5. Encouragement: The moderator must encourage unresponsive


members to participate.
6. Flexibility: The moderator must be able to improvise and alter the
planned outline amid the distractions of the group process.
7. Sensitivity: The moderator must be sensitive enough to guide the
group discussion at an intellectual as well as emotional level.

Fig. 5.3

Procedure for Planning and


Conducting Focus Groups

Determine the Objectives of the Marketing Research Project and Define the Problem
Specify the Objectives of Qualitative Research
State the Objectives/Questions to be Answered by Focus Groups
Write a Screening Questionnaire
Develop a Moderators Outline
Conduct the Focus Group Interviews
Review Tapes and Analyze the Data
Summarize the Findings and Plan Follow-Up Research or Action

RIP 5.3

Use of Focus Group at GM

Buick division of General Motors used focus groups and


survey research to help develop the Regal two-door, six
passenger coupe. Buick held 20 focus groups across the
country to determine what features customers wanted in a
car. The focus groups told GM they wanted a stylish car,
legitimate back seat, at least 20 miles per gallon, and 0 to
60 miles per hour acceleration in 11 seconds or less.

5.3 contd.

Based on these results, Buick engineers created clay


models of the car and mock-ups of the interior.
These were shown to another set of focus groups of
target buyers. These respondents did not like the
oversized bumpers and the severe slope of the hood,
but liked the four-disc brakes and independent
suspension.

VO

Y K 7 49

RIP 5.3 Contd.

Focus groups also helped refine the advertising campaign for


the Regal. Participants were asked which competing cars
most resembled Buick in image and features. The answer was
Oldsmobile, a sister GM division. In an effort to differentiate
the two, Buick was repositioned above Oldsmobile by
focusing on comfort and luxury features.

5.3 contd..

The tag line for the 1998 Regal, official car of the
Supercharged family, was based on focus group findings.
This repositioning has greatly aided the sales of Buick Regal.

Figure 5.4

A Cartoon Test
Sears

Lets see if we can


pick up some
housewares at Sears

Table 5.3

Criteria

Comparison of Focus Groups, Depth


Interviews, and Projective Techniques
Focus Groups

Depth Interviews

1. Degree of Structure
Relatively high
2 Probing of individual
Low
respondents
3. Moderator bias
Relatively medium
4. Interpretation bias
Relatively low
5. Uncovering
Low
subconscious
information
6. Discovering innovative High
information
7. Obtaining sensitive
Low
information
8. Involve unusual
No
behavior or questioning
9. Overall usefulness
Highly useful

Projective
Techniques

Relatively medium Relatively low


High
Medium
Relatively high
Low to high
Relatively medium Relatively high
Medium to high
High

Medium

Low

Medium

High

To a limited
extent
Useful

Yes
Somewhat useful

Chapter VI
Descriptive Research Design
Survey and Observation

Chapter Outline
1) Overview
2) Survey Methods
3) Survey Methods Classified by Mode of Administration
i. Telephone Methods
a. Traditional Telephone Interviews
b. Computer-Assisted Telephone Interviewing (CATI)
ii. Personal Methods
a. Personal In-home Interviews
b. Mall-Intercept Personal Interviews
c. Computer-Assisted Personal Interviewing (CAPI)
iii. Mail Methods
a. Mail Interviews
b. Mail Panels
iv. Electronic Methods
a. E-mail Surveys
b. Internet Surveys

4) A Comparative Evaluation of Survey Methods


i. Flexibility of Data Collection
ii. Diversity of Questions
iii. Use of Physical Stimuli
iv. Sample Control
v. Control of the Data Collection Environment
vi. Control of Field Force
vii. Quantity of Data
viii. Response Rate
ix. Perceived Anonymity
x. Social Desirability/ Sensitive Information
xi. Potential for Interviewer Bias
xii. Speed
xiii. Cost

5) Selection of Survey Method(s)


6) Observation Methods
i. Structured vs. Unstructured Observation
ii. Disguised vs. Undisguised Observation
iii. Natural vs. Contrived Observation
7) Observational Methods Classified by Mode of
Administration
i. Personal Observation
ii. Mechanical Observation
iii. Audit
iv. Content Analysis
v. Trace Analysis

8) A Comparative Evaluation of Observational Methods


i. Degree of Structure
ii. Degree of Disguise
iii. Ability to Observe in Natural Setting
iv. Analysis Bias
v. General Remarks
9) A Comparison of Survey and Observational Methods
i. Relative Advantages of Observation
ii. Relative Disadvantages of Observation

10) International Marketing Research


11) Ethics in Marketing Research
12) Internet and Computer Applications
13) Focus on Burke
14) Summary
15) Key Terms and Concepts
16) Acronyms

RIP 6.1

Survey Research is in the Cards


for DEC

Digital Equipment Corporation (DEC) has made a conscious


effort in the past years to shift from a product-driven focus to
a more market-and consumer-driven focus. The product focus
is not unusual in companies manufacturing hi-tech products.
There is a serious need for market research in these hi-tech
companies as they direct their products to the market. Still,
market research in this arena is difficult. It is complicated by
the rapid change of technology as well as the sheer size of the
application market. Often the technology will be employed in
many different industries.

RIP 6.1 Contd.

This holds true for the computer market where DEC is a key
player. Computers are bought by individuals in every walk of
life as well as by businesses in every market imaginable. The
breadth of the market makes useful market research a
formidable task. This task is being undertaken at DEC in their
Corporate Marketing Services (CMS) Division.

6.1 contd..

Digitals Corporate Marketing Services


Division has been a core element in the
companys transition to a market-driven
strategy.

CMS is coordinating the companys strategy to


redefine their product from simply computers to a
broader view of the business solutions. The CMS has
employed many research techniques to gain a better
understanding of the business solutions market.
Both primary and secondary data are collected.

RIP 6.1 Contd.

Primary data are obtained through the use of phone and


mail surveys as well as seminars and focus groups. Phone
surveys have been used to define customer needs better and
to direct products to the customers better. Mail surveys
have been used to study customer purchasing habits as well
as future purchasing plans. Seminars are held to gain
feedback on the long-term production plans at DEC.
Finally, focus groups are used to determine whether the
chosen strategy is good and one that will effectively
manage and use the markets potential. Without CMS and
marketing research, DEC would be facing the unknowns of
their technology as well as the market. This combination of
obstacles would have made the transition from a productfocused to a market- and consumer-focused company an
impossibility.

A Classification of Survey Methods

Fig. 6.1

Survey
Methods

Telephone

Personal

In-Home

Traditional
Telephone

Mall
Intercept

Computer-Assisted
Telephone
Interviewing

Mail

Computer-Assisted
Personal
Interviewing

Mail
Interview

Electronic

E-mail

Mail
Panel

Internet

Table 6.1

Some Decisions Related to the


Mail Interview Package

Outgoing Envelope
Outgoing envelope: size, color, return address
Postage
Method of addressing
Cover Letter
Sponsorship
Type of appeal Postscript
Personalization Signature
Questionnaire
Length
Size
Layout
Format
Content
Reproduction
Color
Respondent anonymity
Return Envelope
Type of envelope Postage
Incentives
Monetary versus non-monetary. Prepaid versus promised amount.

Table 6.2

A Comparative Evaluation of Survey Methods

Criteria
Flexibility of data
collection

MallPhone/C In-Home
Intercept
ATI
Interviews Interviews

CAPI

Mail
Surveys

Mail
Panels

E-Mail

Internet

Moderate
to high

High

High

Moderate
to high

Low

Low

Low

Moderate
to high

Diversity of questions

Low

High

High

High

Moderate

Moderate

Moderate

Use of physical stimuli

Low

High

High

Moderate

Moderate

Low

Moderate

Moderate

Low

Low

High

High

Low

Moderate
to high
Low

Low

Moderate
Low
Moderate

Moderate
to high
Potentiall
y high
Moderate
to high
Low
High
High

Moderate
to high
Moderate

Moderate
Moderate
High

Moderate
Moderate
High

High
Moderate
Low

High
High
Moderate

High
Moderate
Low

Moderate

Low

Low

Low

High

High

Moderate

High
Moderate
Very
Low
High

Moderate
High

High
Low

High
Low

Low
High

Low
High

Moderate
Moderate

Low
High

Moderate

High

High

High
Low to
moderate
Low

None

None

None

None

High

Moderate

Low to
moderate
Low to
moderate

High

High

Moderate
to high
Moderate
to high

Low

Moderate

Moderate
to high
Moderate
to high

Very
high
Low

Sample control
Control of data collection
environment
Control of field force
Quantity of data
Response rate
Perceived anonymity of
the respondent
Social desirability
Obtaining sensitive
information
Potential for interviewer
bias
Speed
Cost

Moderate
to high
Moderate

Low

Low

Low to
moderate
Low

Fig. 6.2

Random Digit Directory Designs

Adding a Constant to the Last Digit


An integer between 1 and 9 is added to the telephone
number selected from the directory. In plus-one sampling
the number added to the last digit is 1.
Number selected from directory: 953-3004 (exchangeblock). Add one to the last digit to form 953-3005. This is
the number to be included in the sample.
Randomizing the r Last Digits
Replace the r (r = 2, 3, or 4) last digits with an equal number
of randomly selected digits.
Number selected from directory: 881-1124. Replace the last
four digits of the block with randomly selected numbers 5,
2, 8, and 6 to form 881-5286.

Two-Stage Procedure
The first stage consists of selecting an exchange and
telephone number from the directory. In the second stage, the
last three digits of the selected number are replaced with a
three-digit random number between 000 and 999.
Cluster 1
Selected exchange: 636
Selected number: 636-3230
Replace the last three digits (230) with randomly selected 389
to form 636-3389.
Repeat this process until the desired number of telephone
numbers from this cluster is obtained.

RIP 6.2

Sample Mailing Lists

List Title
Advertising agencies
Banks, branches
Boat owners
Chambers of Commerce
Personal computer owners
Families
Hardware wholesalers
Magazines, consumers
Photographic, portrait
Sales executives
Wives of professional men
YMCAs

Number on List
3892
11089
4289601
6559
2218672
76000000
7378
4119
33742
190002
1663614
1036

* Price shown is per 1000 names (/M), except where noted.

Price
$45/M
$85/M
$50/M
$45/M
Inquire
Inquire
$45/M
$45/M
$45/M
$55/M
$60/M
$85

A Classification of Observation
Fig. 6.3
Methods
Classifying

Observation
Methods

Observation Methods

Personal
Mechanical
Observation Observation

Audit

Content
Analysis

Trace
Analysis

RIP 6.3

Building Accord According to Personal


Observation

Honda Motor Co. had a lot of complaints on their sporty, restyled


Accord (not big enough for U.S. drivers, not stylish enough for the
Japanese drivers). Being afraid to lose its market, Honda sent
teams to visit U.S. families and observe how the Americans used
their Honda Accords. By personal observation, the teams found
out that the Americans like lots of compartments for storing maps
and change. The teams also actually took U.S. road trips in
Accord and in Ford Taurus and Toyota Camry as its rivals in
midsize cars. The results of this observation study were used to
design a new 1998 Accord for U.S. drivers which has 101.7 cubic
feet for passenger space compared to 101.5 cubic feet for Ford
Taurus and 97.9 cubic feet for Toyota Camry. Moreover, Accord
also delivered higher customer value by cutting the price. With
these changes, Honda executives are expecting to increase U.S.
sales to a total of 1 million units by the year 2000.

Using the results of personal observation studies, Honda customizes


the Accord to world markets. U.S. Accord is designed as a family car
by providing extra headroom and a roomy interior to keep up with the
demands of its aging baby-boomers customers, while Japanese
Accord is designed as a compact, sporty car loaded with high-tech
gizmos aimed at young professionals. It is also smaller to adjust to
narrower roads in Japan. Honda also paid attention to its European
market. The 1998 Accord for European version was a short, narrow
body customized to tiny streets in Europe but not losing its stiff and
sporty ride aimed at the Old World drivers.

Table 6.3

Criteria

Degree of structure
Degree of disguise
Ability to observe
in natural setting
Observation bias
Analysis Bias

A Comparative Evaluation
of Observation Methods
Personal
Mechanical
Observation Observation

Audit
Analysis

Content
Analysis

Trace
Analysis

Low
Medium
High

Low to high
Low to high
Low to high

High
Low
High

High
High
Medium

Medium
High
Low

High
High

Low
Low to
Medium
Can be
intrusive

Low
Low

Medium
Low

Medium
Medium

General remarks Most flexible

Expensive

Limited to
Method of
communications last resort

A Comparative Evaluation of Survey Methods


Table 6.4 for International Marketing Research
Criteria
Telephone
Personal
Mail
High sample control
+
+
Difficulty in locating
+
+
respondents at home
Inaccessibility of homes
+
+
Unavailability of a large
+
+
pool of trained interviewers
Large population in rural areas
+
Unavailability of maps
+
+
Unavailability of current
+
telephone directory
Unavailability of mailing lists
+
+
Low penetration of telephones
+
+
Lack of an efficient postal system
+
+
Low level of literacy
+
Face-to-face communication culture +
Poor access to comps. & Internet
+
+
?
Note: A (+) denotes an advantage, and a () denotes a disadvantage.

Electronic
+
+
+
+
+
+
+
-

Chapter VII

Causal Research Design:


Experimentation

Chapter Outline
1) Overview
2) Concept of Causality
3) Conditions for Causality

4) Definition of Concepts
5) Definition of Symbols

6) Validity in Experimentation
7) Extraneous Variables

8) Controlling Extraneous Variables

Chapter Outline (cont.)


9) A Classification of Experimental Designs

10) Pre-experimental Designs


11) True Experimental Designs
12) Quasi Experimental Designs
13) Statistical Designs
14) Laboratory vs. Field Experiments
15) Experimental vs. Non-experimental Designs
16) Limitations of Experimentation
17) Application: Test Marketing

Chapter Outline (cont.)


18) Determining a Test Marketing Strategy
19) International Marketing Research

20) Ethics in Marketing Research


21) Internet and Computer Applications
22) Focus on Burke
23) Summary
24) Key Terms and Concepts
25) Acronyms

Figure 7.1

A Classification of Experimental
Designs
Experimental Designs

Pre-experimental

True
Experimental

Quasi
Experimental

One-Shot Case
Study

Pretest-Posttest
Control Group

Time Series

Randomized
Blocks

One Group
Pretest-Posttest

Posttest: Only
Control Group

Multiple Time
Series

Latin Square

Static Group

Solomon FourGroup

Statistical

Factorial
Design

Figure 7.2

Selecting a Test-Marketing Strategy

Very +ve
Other Factors

Simulated Test Marketing

Very +ve
Controlled Test Marketing
Other Factors
Standard Test Marketing
National Introduction
Overall Marketing Strategy

-ve
-ve
-ve
-ve

Need for Secrecy

Very +ve New Product Development


Other Factors Research on Existing Products
Research on other Elements

Stop and Reevaluate

Socio-Cultural Environment

Competition

Evidence of Concomitant Variation between


Purchase of Fashion Clothing and Education
Purchase of Fashion Clothing, Y
Education, X

Table 7.1

High

Low

High

363 (73%)

137 (27%)

500 (100%)

Low

322 (64%)

178 (36%)

500 (100%)

Table 7.1

Purchase of Fashion Clothing by


Income and Education
Low Income
Purchase
Low

High 122 (61%) 78 (39%) 200 (100%)


Low

171 (61%) 129 (43%) 300 (100%)

High
Education

Education

High

High Income
Purchase
Low

High 241 (80%) 59 (20%) 300


Low 151 (76%) 49 (24%) 200

Table 7.4

An Example of a Randomized
Block Design
Treatment Groups

Block
Store
Commercial
Number Patronage
A
1
2
3
4

Heavy
Medium
Low
None

Commercial
B

Commercial
C

Table 7.5

An Example of Latin Square Design

Store Patronage

High

Heavy
Medium
Low and none

B
C
A

Interest in the Store


Medium
A
B
C

Low
C
A
B

Table 7.6

An Example of a Factorial Design

Amount of Store
Information
Low
Medium
High

Amount of Humor
No
Medium
High
Humor
Humor
Humor

Table 7.7

Laboratory versus Field Experiments

Factor

Laboratory

Field

Environment
Control
Reactive Error
Demand Artifacts
Internal Validity
External Validity
Time
Number of Units
Ease of implementation
Cost

Artificial
High
High
High
High
Low
Short
Small
High
Low

Realistic
Low
Low
Low
Low
High
Long
Large
Low
High

RIP 7.1

Criteria for the Selection of


Test Markets

Test Markets should have the following qualities:


1) Be large enough to produce meaningful projections. They

should contain at least 2% of the potential actual population.


2) Be representative demographically.
3) Be representative with respect to product consumption behavior.
4) Be representative with respect to media usage.
5) Be representative with respect to competition.
6) Be relatively isolated in terms of media and physical distribution.
7) Have normal historical development in the product class
8) Have marketing research and auditing services available
9) Not be over-tested

RIP 7.2

Dancer Fitzgeralds Sample List of


Recommended Test Markets

Albany-Schenectady-Troy, N
Boise, ID

Knoxville, TN
Lexington, KY

Buffalo, NY
Cedar Rapids-Waterloo, IA
Charlotte, NC

Little Rock, AR
Louisville, KY
Minneapolis, MN

Cincinnati, Oh
Cleveland, OH
Colorado Springs-Pueblo, CO
Columbus, OH
Des Moines, IA
Erie, PA

Nashville, TN
Oklahoma City, OK
Omaha, NE
Orlando-Daytona Beach, FL
Phoenix, AZ
Pittsburgh, PA

RIP 7.2

Dancer Fitzgeralds Sample List of


Recommended Test Markets

Evansville, IN
Fargo, ND
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Chapter X

Questionnaire and
Form Design

Chapter Outline
1) Overview
2) Questionnaire & Observation Forms
i. Questionnaire Definition
ii. Objectives of a Questionnaire

3) Questionnaire Design Process


4) Specify the Information Needed

5) Type of Interviewing Method


6) Individual Question Content
i. Is the Question Necessary?
ii. Are Several Questions Needed Instead of One

Chapter Outline (cont.)


7) Overcoming Inability to Answer

i. Is the Respondent Informed?


ii. Can the Respondent Remember?

iii. Can the Respondent Articulate?


8) Overcoming Unwillingness to Answer

i. Effort Required of the Respondent


ii. Context

iii. Legitimate Purpose


iv. Sensitive Information
v. Increasing the Willingness of Respondents

9) Choosing Question Structure

Chapter Outline (cont.)

i. Unstructured Question
ii. Structured Question
10) Choosing Question Wording
i.

Define the Issue

ii. Use Ordinary Words


iii. Use Unambiguous Words
iv. Avoid Leading or Biasing Questions
v. Avoid Implicit Alternatives
vi. Avoid Implicit Assumptions
vii. Avoid Generalizations & Estimates
viii.Dual Statements: Positive & Negative

Chapter Outline (cont.)


11) Determining the Order of Questions
i. Opening Questions

ii. Type of Information


iii. Difficult Questions
iv. Effect on Subsequent Questions

Layout of Form
Layout of Form

v. Logical Order
12) Form & Layout

13) Reproduction of the Questionnaire


14) Pre-testing

15) Observation Forms


16) International Marketing Research

Question 1
Question 2
Question 3

Question 4

Chapter Outline (cont.)


17) Ethics in Marketing Research
18) Internet & Computer Applications
19) Focus on Burke
20) Summary
21) Key Terms and Concepts
22) Acronyms

RIP 10.1

Youth Research Achieves Questionnaire Objectives


Youth research (YR) of Brookfield, Connecticut, conducts an omnibus survey of
children every quarter. Typically, YR interviews 150 boys and girls between ages
6 and 8, along with 150 boys and girls between ages 9 and 12. YR uses mall
intercepts of mothers to recruit for its one-on-one interviews, which last eight
minutes. The study obtains childrens views on favorite snack foods, television
shows, commercials, radio, magazines, buzzwords, and movies.

10.1 contd.
YR intentionally keeps its questionnaire to eight minutes because of attention
span limits of children. YR President Karen Forcade notes that some clients
attempt to meet all their research objectives with one study, instead of
surveying, fine-tuning objectives, and re-surveying. In doing so, these clients
overlook attention limits of young respondents when developing questionnaires.

The questionnaires keep going through the


approval process and people keep adding
questions, Well lets ask this question, lets add
that question, and why dont we talk about this
also, Forcade said. And so you end up
keeping children 25 minutes in a central
location study and they get kind of itchy. The
response error increases and the quality of data
suffers.

Forcade notes other lessons from interviewing children. When asking questions,
interviewers should define the context to which the questions refers. It involves
getting them to focus on things, putting them in a situation so that they can
identify with it, Forcade said. For example, when asking about their radio
listening habits we said, What about when youre in Moms car, do you listen to
radio? rather than, How often do you listen to radio? More than once a day,
once a day, more than once a week? Those are kind of big questions for little
children.
Questionnaires designed by
Youth Research to obtain
children views on favorite
snack foods, television shows,
commercials, radio,
magazines, buzzwords, and
movies attempt to minimize
response error.

Fig. 10.1

Questionnaire Design Process


Specify the Information Needed
Specify the Type of Interviewing Method
Determine the Content of Individual Questions

Design the Question to Overcome the Respondents Inability and


Unwillingness to Answer
Decide the Question Structure
Determine the Question Wording
Arrange the Questions in Proper Order
Identify the Form and Layout
Reproduce the Questionnaire

Eliminate Bugs by Pre-testing

Fig. 10.2

Flow Chart for Questionnaire Design


Introduction

Ownership of Store, Bank,


and Other Charge Cards
Purchased Products in a Specific Department
Store during the Last Two Months
Yes
How was Payment made?
Credit

Cash
Other

No
Ever Purchased in a
Department Store?
Yes
No

Store
Charge
Card

Bank
Charge
Card

Other
Charge
Card
Intentions to Use Store, Bank,
and other Charge Cards

RIP 10.2

Example of a Precoded Survey


The American Lawyer
A Confidential Survey of Our Subscribers
(5-1)

(Please ignore the numbers alongside the answers. They are only to help us in
data processing.)
(6)

1. Considering all the times you pick it up, about how much time, in total, do you
spend in reading or looking through a typical issue of THE AMERICAN
LAWYER?
Less than 30 minutes.....................-1
11/2 hours to 1 hour 59 minutes.........-4
30 to 59 minutes............................-2

2 hours to 2 hours 59 minutes...........-5

1 hour to 1 hour 29 minutes..........-3

3 hours or more.................................-6

Table 10.1

Questionnaire Design Checklist

Step 1. Specify The Information Needed


Step 2. Type of Interviewing Method
Step 3. Individual Question Content

Step 4. Overcome Inability and Unwillingness to Answer


Step 5. Choose Question Structure
Step 6. Choose Question Wording
Step 7. Determine the Order of Questions
Step 8. Form and Layout

Step 9. Reproduce the Questionnaire


Step 10. Pretest

Table 10.1

Questionnaire Design Checklist

Step 1 Specify the Information Needed


1.

Ensure that the information obtained fully addresses all the


components of the problem. Review components of the problem and
the approach, particularly the research questions, hypotheses, and
characteristics that influence the research design.

2.

Prepare a set of dummy tables.

3.

Have a clear idea of the target population.

Step 2 Type of Interviewing Method


1.

Review the type of interviewing method determined based on


considerations discussed in Chapter 6.

Table 10.1 Contd.

Step 3

Individual Question Content

1.

Is the question necessary?

2.

Are several questions needed instead of one to obtain the


required information in an unambiguous manner?

3.

Do not use double-barreled questions

Step 4 Overcoming Inability and Unwillingness to Answer


1.

Is the respondent informed?

2.

If respondents are not likely to be informed, filter questions that


measure familiarity, product use, and past experience should be asked
before questions about the topics themselves.

3.

Can the respondent remember?

4.

Avoid errors of omission, telescoping and creation.

5.

Questions which do not provide the respondent with cues can


underestimate the actual occurrence of an event.

6.

Can the respondent articulate?

Table 10.1 Contd.

Step 4 Overcoming Inability and Unwillingness to Answer


7.

Minimize the effort required of the respondents.

8.

Is the context in which the questions are asked appropriate?

9.

Make the request for information seem legitimate.

10.

If the information is sensitive:

a.

Place sensitive topics at the end of the questionnaire.

b.

Preface the question with a statement that the behavior of interest is


common.

c.

Ask the question using the third-person technique.

d.

Hide the question in a group of other questions which respondents are


willing to answer.

e.

Provide response categories rather than asking for specific figures.

f.

Use randomized techniques, if appropriate.

Step 5 Choosing Question Structure

Table 10.1 Contd.

1.

Open-ended questions are useful in exploratory research and as opening


questions.

2.

Use structured questions whenever possible.

3.

In multiple-choice questions, the response alternatives should include the


set of all possible choices and should be mutually exclusive.

4.

In a dichotomous question, if a substantial proportion of the respondents


can be expected to be neutral, include a neutral alternative.

5.

Consider the use of the split ballot technique to reduce order bias in
dichotomous and multiple-choice questions.

6.

If the response alternatives are numerous, consider using more than one
question to reduce the information processing demands on the
respondents.

Step 6 Choosing Question Wording

Table 10.1 Contd.

1.

Define the issue in terms of who, what, when, where, why, and way (the
six Ws).

2.

Use ordinary words. Words should match the vocabulary level of the
respondents.

3.

Avoid ambiguous words: usually, normally, frequently, often,


regularly, occasionally, sometimes, etc.

4.

Avoid leading questions that clue the respondent to what the answer
should be.

5.

Avoid implicit alternatives that are not explicitly expressed in the


options.

6.

Avoid implicit assumptions.

7.

Respondent should not have to make generalizations or compute


estimates.

8.

Use positive and negative statements.

Step 7 Determine the Order of Questions

Table 10.1 Contd.

1.

The opening questions should be interesting, simple, and nonthreatening.

2.

Qualifying questions should serve as the opening questions.

3.

Basic information should be obtained first, followed by classification,


and, finally, identification information.

4.

Difficult, sensitive, or complex questions should be placed late in the


sequence.

5.

General questions should precede the specific questions.

6.

Questions should be asked in a logical order.

7.

Branching questions should be designed carefully to cover all possible


contingencies.

8.

The question being branched should be placed as close as possible to


the question causing the branching, and (2) the branching
questions should be ordered so that the respondents cannot anticipate
what additional information will be required.

Step 8 Form and Layout

Table 10.1 Contd.

1.

Divide a questionnaire into several parts.

2.

Questions in each part should be numbered.

3.

The questionnaire should be pre-coded.

4.

The questionnaires themselves should be numbered serially.

Step 9 Reproduction of the Questionnaire


1.

The questionnaire should have a professional appearance.

2.

Booklet format should be used for long questionnaires.

3.

Each question should be reproduced on a single page (or double-page


spread).

4.

Vertical response columns should be used.

5.

Grids are useful when there are a number of related questions which
use the same set of response categories.

6.

The tendency to crowd questions to make the questionnaire look


shorter should be avoided.

7.

Directions or instructions for individual questions should be placed as


close to the questions as possible.

Step 10 Pre-testing

Table 10.1 Contd.

1.

Pre-testing should be done always.

2.

All aspects of the questionnaire should be tested, including question


content, wording, sequence, form and layout, question difficulty, and
instructions.

3.

The respondents in the pretest should be similar to those who will be


included in the actual survey.

4.

Begin the pretest by using personal interviews.

5.

Pretest should also be conducted by mail or telephone if those methods


are to be used in the actual survey.

6.

A variety of interviewers should be used for pretests.

7.

The pretest sample size is small, varying from 15 to 30 respondents for


the initial testing.

8.

Use protocol analysis and debriefing to identify problems.

9.

After each significant revision of the questionnaire, another pretest


should be conducted, using a different sample of respondents.

10.

The responses obtained from the pretest should be coded and analyzed.