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Chapter Four: Marketing Research Concept Review: Generally, the concept questions are designed to achieve a single purpose – to encourage students to test their knowledge and understanding of the theoretical content of the chapter. These questions encourage recall and reflection, which will better prepare students to answer the marketing applications questions based on their understanding of the theory. 1. Is marketing research necessary? Defend your answer. Marketing research improves decision-making substantially and thus it is considered necessary among marketers. It does not guarantee success but it can serve as a roadmap to direct you from where you are to where you want to be, help to avoid costly mistakes, reveal unforeseen opportunities, and improve marketing strategy and marketing efforts. Marketing research can range is scope from a small-scale observational study or examining the company sales records to large-scale, rigorous study involving several data collection methods and respondents. The scope of the study or the research techniques used will invariably be based on the research question or problem at hand, the time available before answers are needed (i.e. the urgency), and the cost of undertaking the study. Marketers often make trade-offs between cost and time but should not compromise the rigour and quality of the research. A reduced scope that is conducted in a rigorous manner is preferable than cutting corners just to speed-up the process or cut costs. Poor marketing research could lead to poor or faulty decisions or action plans. 2. Briefly describe the steps in the marketing research process. Explain why it is important to clearly define the problem and research objectives from the very outset of the process. Step 1: Defining the Problem and Objectives - define the problem correctly and the questions that need to be answered Step 2: Designing the Research Project - identify the type of data needed and determine the type of research necessary to collect it Step 3: Data Collection Process – perform the collection of date, either exploratory or conclusive research. Step 4: Analysing Data - analyse and interpret the data—should be both thorough and methodical Step 5: Presenting Results - prepare the results and present them to the appropriate decision makers Clear definition of the problem is critical because if you define the problem incorrectly, you will more than likely end up with the wrong solution even though the rest of the process is done perfectly. Even more dangerous, this solution may be accepted as right and acted on after the cost and time invested in the research. 3. What is the difference between secondary and primary data? What are some of the advantages of each type of data? When should each type of data be used? Primary data is new data collected to address specific research needs. The advantage to this type of data is that it is often more relevant, accurate and timely since it is collected with the research problem in mind, and that it can be tailored to meet specific needs. Secondary data is existing data collected from other sources. The benefits here are lower costs, and the ready availability of this data. Secondary data are usually not collected with the particular research question in mind. Each data type is appropriate in different cases – and some motivating factors are a) budget available, b) importance of project or inherent risk assumed, and c) availability of existing data. 4. In data collection methods, researchers may choose between exploratory research methods or conclusive research methods or use both methods. What considerations guide their choice of data collection methods? There are many considerations to the choice of data collection methods. Often exploratory research is used when little is known about the topic, or when the problem lacks clear definition. Conclusive research works to prove or disprove a hypothesis, and is used when firm answers are needed. Also, other factors can influence the type of research performed, such as time, (how quickly the marketer needs an answer to the research question), availability of skilled or experienced researchers to collect data, and available budget. 5. Today, information and communications technologies (ICT) including the Internet are not only changing the way marketing is practiced but how market research is conducted. In response, many companies are using a wide variety of observational methods (GPS, RFID, Video Camera, Audio devices, ethnography, etc.) to gather customer data. Discuss the ethical issues underlying the increasing use of observational research methods using technology. Many ethical issues arise with respect to technology. The primary issues pertain to informed consent and violation of privacy. Observing uninformed consumers very well may lead to important insights that would not otherwise be discovered, however, it is unethical to observe a customer without his/her informed consent. The customer being unaware they are being observed will not know what the data will be used for – the purpose for collecting the data, who will have access to the data, and with whom the information will be shared. Thus, there are no guarantees with respect to anonymity and confidentiality. 6. Marketing research is designed to help marketers make better decisions on various aspects of their businesses. The quality of research findings is as good as the quality of the data on which they are based. What are some things marketers could do to ensure that they obtain the best quality data? Some ways to ensure accurate data are: 1) use large sample sizes and correct sample units i.e. customers who fit your sampling criteria, 2) use a sampling plan that would reduce sampling bias, researcher bias, and self-selection bias, 3) use a multiple data collection methods and different sources, 4) the survey questionnaire or interview protocol must be clear, concise, easy to understand, and minimise recall that goes too long back in time. 7. Explain the main advantages and disadvantages of using the Internet for marketing research versus conventional offline methods. Advantages include higher response rates to online surveys, inexpensive access to many respondents, and quick turnaround times. Disadvantages of internet research include inability to verify the source, inability to observe respondents and conflicting information available. 8. Identify and explain the ways in which the design of a market research study could reduce the reliability and validity of the study. Can a market research study that has high reliability lack validity? Can a study that has high validity lack reliability? Explain your answers. A poorly designed market research study could reduce reliability and validity in a number of ways. The main ways this could happen are during the design stage, where a survey or other data collection method is poorly designed, or during the collection phase, if the sample is chosen in an improper way, or if the data collection method (e.g., survey or focus group) is administered poorly. A market study that has high reliability but lacks validity could easily exist. For example, if you wanted to ask teenagers about clothing choices, you could survey high school students every Tuesday at lunch time and get the same answers consistently, proving reliability. However, if you only visited high schools in one region, the data would not be valid for the entire province – it would only reflect one region’s tastes. A market study that has high validity but lacks reliability could exist. A market research firm could design an online survey to send to Canadians in every province, asking them scaled questions about their opinions on Canadian Blood Services. The questions could be designed properly, without bias, and with clear language, asking if the respondents are familiar with the organisation’s work. If they performed the survey on the same random sampling of Canadians three separate times – January, June and November, and received completely different replies each time, the survey would not be reliable. 9. What do you think are some of the differences between exploratory data collection methods, which are mainly qualitative, and conclusive research methods, which are more quantitative in nature? Which type of methods should a research prefer and why? The main difference between the two types is depth of response. Qualitative or exploratory methods generate in-depth information that is often difficult or impossible to capture with more quantitative methods (e.g., respondents’ body language or detailed in focus groups, interviews, or other observational methods). The sample sizes are usually much smaller, they tend to take a longer time to administer, and there is substantial room for researcher’s bias. Quantitative or conclusive research methods provide more standardised answers to the same questions, which can be analysed using statistical analysis methods. There tends to be less researcher’s bias, they are faster to administer, easier to analyse, and cost less to administer. However, poorly designed survey instruments could lead to misinterpretation of the question and therefore incorrect answers. Conclusive research is generally used to confirm hypotheses whereas exploratory research is used to get abetter understanding of the research question or problem. Thus, exploratory research is usually followed up with conclusive research. 10. Explain some of the problems and challenges market researchers face in the data analysis and interpretation stage of the marketing research process. Should they report these problems when presenting their research report? Why or why not? It is important for market researchers to analyse and interpret the data in an objective manner and do not try to hide or skew findings. Misinterpreting the findings or manipulating the statistics could lead to the wrong decision, which could have serious consequences for marketers. The temptation to lie with statistics is something market researchers have to always be aware of and try to avoid. Any assumptions or calculation methods used during these stages must be clearly reported in the results in order to avoid misunderstandings and to provide the best possible information to readers, users or managers. Marketing Applications 1. A large department store collects data about what its customers buy and then stores these data in a data warehouse. If you were the store’s buyer for children’s clothing, what would you want to know from the data warehouse that will help you become a more successful buyer? As the buyer for children's clothing at a large department store, accessing the data warehouse would offer invaluable insights into consumer behavior and preferences. Here are some key aspects I would want to explore: Trend Analysis: I'd like to track trends in children's fashion over time. This includes understanding which styles, colors, and patterns are currently popular among different age groups. By analyzing historical data, I can anticipate upcoming trends and adjust my purchasing decisions accordingly. Seasonal Variations: Understanding seasonal fluctuations in demand is crucial. I would want to know which types of clothing sell best during different seasons, holidays, or events. This insight would help me plan inventory levels and promotional strategies effectively. Customer Segmentation: Segmenting customers based on demographics, purchasing behavior, or preferences allows for targeted marketing and product selection. Knowing which segments have the highest demand for children's clothing helps tailor my assortment to meet their needs. Product Performance: Analyzing sales data for specific products can reveal which items are best-sellers and which ones are underperforming. This information guides decisions on product assortment, pricing, and promotions. Inventory Management: Maintaining optimal inventory levels is essential for minimizing stockouts and markdowns. By analyzing inventory turnover rates and stock levels, I can ensure that popular items are always available while avoiding overstocking less popular ones. Competitive Analysis: It's crucial to stay informed about competitors' offerings and pricing strategies. Accessing data on market share, pricing trends, and customer preferences helps me identify areas where I can differentiate my assortment and attract more customers. Customer Feedback: Utilizing customer feedback and reviews stored in the data warehouse provides valuable insights into product satisfaction and areas for improvement. This information can influence future purchasing decisions and help enhance the overall shopping experience for customers. By leveraging these insights from the data warehouse, I can make informed decisions that drive sales, enhance customer satisfaction, and ultimately contribute to the success of the children's clothing department within the store. Instructor’s Notes: In answering this question, students must not only express their understanding of data warehouses and data mining but also consider what information might be important in this scenario. By taking the perspective of a children’s clothing buyer, students should gain a better understanding of the types of data available and their potential uses. • Example answers: o Information about the top-selling items, how frequently they are purchased, who makes the purchase, how much that person usually spends in the store, what that person bought in addition to these items, and whether the purchased items were at full or a discounted price would offer a better profile of the type of people who buy children’s clothing, including how frequently they shop and their cost consciousness. 2. Identify a nonprofit organization that might use marketing research, and describe one example of a meaningful research project that it might conduct. Discuss how this project would be useful to the organization. A nonprofit organization that could greatly benefit from marketing research is an environmental conservation group, such as the World Wildlife Fund (WWF). One meaningful research project they might conduct is assessing public awareness and attitudes towards a specific endangered species, let's say sea turtles. This research project could involve surveys, focus groups, and data analysis to understand: Awareness Levels: Determine how many people are aware of sea turtles, their habitats, and the threats they face. This could include questions about whether individuals know about the different species of sea turtles, where they live, and what factors endanger them. Attitudes and Behaviors: Explore people's attitudes towards sea turtles and whether they engage in behaviors that could either harm or help sea turtle conservation efforts. This could involve questions about recycling habits, support for environmental policies, or willingness to volunteer or donate to sea turtle conservation initiatives. Media Consumption: Investigate which media channels people use to gather information about environmental issues and sea turtle conservation in particular. This could include traditional media like television and newspapers, as well as digital media such as social media platforms and environmental websites. Demographic Analysis: Analyze demographic data to identify which segments of the population are most and least aware of sea turtle conservation issues. This could include age, gender, education level, geographic location, etc. How this project would be useful to WWF: Targeted Messaging: With insights from the research, WWF can tailor their messaging and campaigns to effectively reach and engage different segments of the population. For example, if the research shows that younger demographics are less aware of sea turtle conservation issues, WWF can focus on creating educational content that resonates with this group. Strategic Planning: Understanding public attitudes and behaviors towards sea turtles allows WWF to strategically plan their conservation efforts. For instance, if the research reveals that there's widespread support for sea turtle conservation but limited awareness of specific threats like plastic pollution, WWF can prioritize educational campaigns on this topic. Resource Allocation: By knowing which media channels are most effective in reaching their target audience, WWF can allocate their resources more efficiently. They can invest more in channels that have a higher impact and reach, ensuring that their messages reach as many people as possible. Overall, this research project would enable WWF to better understand the public's perceptions and behaviors related to sea turtle conservation, ultimately helping them to develop more effective strategies for protecting these endangered species. Instructor’s Notes: By focusing on a scenario involving a nonprofit organization, this question illustrates that such research can be used by any organization that is trying to market itself to consumers, for-profit businesses, or other nonprofit organizations. • Example answers: o One nonprofit organization that might use marketing research is the United Way, which might conduct in-depth interviews with a random sample of people who have donated in the previous year to determine their motivations for donating. By conducting such research, the United Way could better focus its marketing efforts to highlight those motivations and perhaps increase the amount of donations it receives. 3. Marketing researchers do not always go through the steps in the marketing research process in sequential order. Provide an example of a research project that might not follow this sequence. Let's consider a scenario where a company wants to launch a new product in the market, but they are unsure about the specific features that would resonate best with their target audience. Instead of following the traditional sequential order of the marketing research process, they might opt for a more iterative approach. In this case, the company might start by conducting exploratory research to gather preliminary insights about consumer preferences and market trends. This could involve methods such as online surveys, focus groups, or social media listening. Based on the initial findings, the company might then develop prototype versions of the product with different features or variations. These prototypes could be tested with a small group of consumers through methods like concept testing or product clinics. The feedback obtained from these tests would then inform further refinements to the product, potentially leading to additional rounds of testing and iteration. This iterative process allows the company to gradually refine their understanding of consumer preferences and optimize the product accordingly. Only after several iterations of testing and refinement might the company move on to the later stages of the marketing research process, such as conducting large-scale quantitative research to validate their findings and make final decisions about the product's features, pricing, and positioning. In this example, the research project deviates from the sequential order of the marketing research process by adopting a more flexible and iterative approach that allows for ongoing refinement and adaptation based on emerging insights. Instructor’s Notes: This exercise is designed to test students’ knowledge of the marketing research process and their understanding of how and why that process is not necessarily linear. • Example answers: o An exploratory study focused on observing a group of target consumers using a company’s product might find that the target group does not actually use the product at all, in which case the research project would not follow a traditional sequence. Instead, the company would need to go from the observation stage back to a previous stage to determine if its research addresses the right question, let alone the right target group. 4. A new men’s clothing store is trying to determine if there is a significant market for its type of merchandise in a specific location where it is considering putting a store. Would it be most likely to use primary or secondary data, or a combination of the two, to answer this question? To determine the market potential for its merchandise in a specific location, the new men's clothing store would likely use a combination of primary and secondary data. 1. Secondary Data: • Secondary data refers to information that has already been collected by other sources, such as government agencies, industry reports, or market research firms. • The store could utilize secondary data to gather information about the demographics of the location, including age, income levels, lifestyle preferences, and shopping habits of the target market. • Additionally, they could analyze existing market research reports on the fashion industry to understand trends, competitor analysis, and consumer behavior in similar markets. 2. Primary Data: • Primary data involves collecting new information directly from the target audience through surveys, interviews, focus groups, or observational studies. • The store could conduct surveys or interviews with potential customers in the specific location to gather insights into their preferences, needs, and willingness to purchase their merchandise. • They could also observe foot traffic and shopping patterns in the area to assess the potential demand for their products firsthand. By combining both primary and secondary data, the store can gain a comprehensive understanding of the market dynamics, identify opportunities, and make informed decisions about whether to establish a store in the specific location. Instructor’s Notes: In considering both types of research, students must consider what data might already be available, how to leverage those data to answer specific questions, and in what areas data might be lacking. • Example answers: o The clothing store should use a combination of both primary and secondary data to answer the question. It could use secondary research, such as Census results, the number of clothing stores in the area, and the amount of traffic that passes the location every day, to determine market size, competition, and exposure to passers by. It probably needs primary research to find more up-to-date or unavailable information, such as fashion trends for the targeted demographic and whether men in the area would be willing to buy new clothes. 5. A high-tech firm has just developed a new technology to correct bad vision without surgery or contact lenses. The company needs to estimate the demand for such a service. Would it use primary or secondary data, or a combination of the two? To estimate the demand for a new technology like correcting bad vision without surgery or contact lenses, the high-tech firm would likely use a combination of primary and secondary data. Primary data would involve collecting information directly from potential customers through surveys, interviews, or focus groups. This could help the company understand people's preferences, willingness to pay, and any concerns or barriers they may have regarding the new technology. Secondary data, on the other hand, would involve gathering existing information from sources such as market research reports, academic studies, industry publications, and government databases. This data could provide insights into market trends, competitor offerings, demographics, and other relevant factors affecting demand for vision correction services. By utilizing both primary and secondary data, the company can gain a comprehensive understanding of the market landscape, validate their assumptions, and make more informed decisions regarding pricing, marketing strategies, and product development. Instructor’s Notes: Similar to the previous question, this question prompts students to explore the difference between primary and secondary research in a different business scenario. • Example answers: o The firm should use a combination of primary and secondary research to determine demand, particularly because its offering involves a new technology that consumers will not be familiar with and therefore cannot have researched previously. However, secondary research might gather the percentage of the population that wears contacts or glasses and thus indicate who might be interested in this product. The primary research could then fine-tune this information by, for example, conducting surveys to discover what percentage of wearers of contacts or glasses would consider the new technology. 6. A bank manager notices that by the time customers get to the teller, they seem irritated and impatient. She wants to investigate the problem further, so she hires you to design a research project to figure out what is bothering the customers. What type of research method would you recommend? Is it an exploratory or conclusive method? For this scenario, a combination of exploratory and conclusive research methods would be most effective in identifying the underlying issues causing customer irritation and impatience. 1. Exploratory Research Method: • Conduct interviews or focus groups with both customers and bank tellers to gather qualitative data on their experiences and perceptions. • Use open-ended questions to understand the specific reasons behind customer frustration and impatience. • Employ observational techniques to observe customer behavior and interactions within the bank environment. • Analyze customer feedback from complaint logs, online reviews, and surveys to identify recurring themes or patterns. 2. Conclusive Research Method: • Implement a structured survey administered to a larger sample of bank customers to quantify and validate the findings from the exploratory phase. • Utilize closed-ended questions with rating scales to measure the severity and frequency of customer dissatisfaction. • Compare data across different customer segments (e.g., age, gender, transaction frequency) to identify any variations in experiences. • Conduct statistical analysis to determine correlations between specific factors (e.g., wait times, service quality) and customer irritation. By combining both exploratory and conclusive research methods, the bank manager can gain comprehensive insights into the root causes of customer irritation and impatience. Exploratory methods will help uncover underlying issues and potential factors contributing to customer dissatisfaction, while conclusive methods will validate these findings and provide actionable recommendations for improvement. Instructor’s Notes: Students must recall what the definitions and appropriate uses of exploratory versus conclusive research to develop their answers. • Example answers: o Because the bank manager does not yet know or have a hypothesis about why customers are irritated and impatient, the research should be exploratory in nature; that is, it should explore the potential reasons for this behaviour. Conclusive research would be inappropriate, because it requires preliminary insights or hypotheses that it can validate or disprove. 7. Snapple has developed a new beverage and it wants to determine if it should begin to market it throughout Canada. The company used two separate studies for the advertising campaign: • A focus group to identify the appropriate advertising message for the new beverage, and • A survey to assess the effectiveness of the advertising campaign for the new Snapple beverage. Which study was exploratory and which was conclusive? The focus group would typically be considered exploratory, as its main purpose is to gather insights and ideas regarding the appropriate advertising message for the new beverage. It helps in understanding consumer preferences, attitudes, and perceptions without providing conclusive evidence. On the other hand, the survey is likely to be considered conclusive because it aims to assess the effectiveness of the advertising campaign. It gathers data from a larger sample size and is designed to draw conclusions about the impact and success of the campaign based on measurable metrics such as brand awareness, purchase intent, or message recall. Instructor’s Notes: To further the discussion started in the previous question, students should provide a clearer explanation of the two types of research. • Example answers: o The exploratory study refers to the focus group, which was used to formulate an appropriate marketing message, whereas the conclusive study includes the survey used to confirm whether the previously formulated marketing message was appropriate. 8. What other studies would you recommend Snapple undertake? Snapple could explore several avenues for further studies to enhance its brand and product offerings: 1. Consumer Preferences Research: Conduct surveys or focus groups to better understand consumer preferences regarding flavors, packaging, and product formats. This could help Snapple tailor its offerings to meet specific consumer needs and desires. 2. Health and Wellness Trends Analysis: Investigate current health and wellness trends to identify opportunities for new product development or adjustments to existing products. This could involve exploring the demand for functional beverages, low-sugar options, or natural ingredients. 3. Sustainability Initiatives Assessment: Assess the environmental impact of Snapple's packaging and manufacturing processes. Research sustainable packaging alternatives or explore ways to reduce water usage and carbon emissions throughout the supply chain. 4. Market Expansion Studies: Explore opportunities for expanding into new geographic markets or demographic segments. This could involve analyzing consumer behavior and preferences in different regions or identifying untapped market niches. 5. Ingredient Sourcing and Quality Assurance: Conduct studies on ingredient sourcing practices to ensure the quality and integrity of Snapple products. This could involve working closely with suppliers to maintain high standards for ingredients such as fruits, tea leaves, and sweeteners. 6. Digital Marketing Effectiveness: Evaluate the effectiveness of Snapple's digital marketing strategies, including social media campaigns, influencer partnerships, and online advertising. This could involve analyzing metrics such as engagement rates, website traffic, and conversion rates to optimize marketing efforts. 7. Product Innovation and Development: Invest in research and development to innovate new flavors, product formats, or packaging designs. This could involve experimenting with unique ingredients, exploring flavor combinations inspired by global culinary trends, or developing limited-edition seasonal offerings. 8. Competitive Analysis: Conduct in-depth analysis of competitors' products, marketing strategies, and consumer perception. This could help Snapple identify gaps in the market or areas where it can differentiate itself from competitors. By undertaking these studies, Snapple can stay ahead of evolving consumer trends, enhance its brand reputation, and continue to deliver high-quality products that resonate with its target audience. Instructor’s Notes: To further the discussion started in the two previous questions, students should be able to suggest other research options that may be of benefit when a company considers a new product launch. • Example answers: o Snapple also might consider direct observations of how people react when they first see the new marketing message or in-depth interviews that ask respondents how the marketing message makes them think or feel. 9. Suppose your university wants to modify its course scheduling procedures to better serve students. What are some secondary sources of information that might be used to conduct research into this topic? Describe how these sources might be used. Describe a method you could use to gather primary research data about the topic. Would you recommend a specific order in obtaining each of theses types of data? Explain your answer. Secondary sources of information that could be used to research modifications to course scheduling procedures might include: Academic Journals: Journals focused on education, student services, or university administration often publish research articles on topics related to course scheduling and student satisfaction. These articles can provide insights into best practices, case studies, and the effectiveness of different scheduling methods. Books and Textbooks: Textbooks on educational administration or higher education management may contain chapters or sections devoted to course scheduling processes. These resources can provide comprehensive overviews, historical perspectives, and theoretical frameworks for understanding scheduling issues. Government Publications: Government agencies or departments of education may publish reports or studies related to student success, retention rates, and academic performance. These documents can offer statistical data, policy recommendations, and benchmarks for evaluating scheduling changes. Professional Associations: Organizations such as the American Council on Education (ACE) or the Association for the Advancement of Computing in Education (AACE) often produce reports, white papers, or conference proceedings on topics relevant to higher education administration. These resources may include surveys, interviews, or case studies conducted by experts in the field. Online Databases: Academic databases like ERIC (Education Resources Information Center) or PsycINFO contain a wealth of scholarly articles, dissertations, and conference papers on education-related topics. Researchers can use keyword searches to find studies specifically focused on course scheduling and student outcomes. These secondary sources can be used to gather background information, identify key issues and trends, and develop hypotheses or research questions for further investigation. Once a solid understanding of the existing literature is established, researchers can design a method for gathering primary research data. One method for gathering primary research data on course scheduling procedures could be through surveys administered to students, faculty, and administrators. These surveys could inquire about current scheduling challenges, preferences for class times and formats, perceptions of fairness and transparency in the scheduling process, and suggestions for improvement. Additionally, focus groups or interviews could be conducted to explore participants' experiences and perspectives in more depth. Regarding the order of obtaining data, it's generally recommended to start with secondary sources to gain a comprehensive understanding of the topic and identify gaps in existing knowledge. This background research can then inform the design of primary research methods, ensuring that data collection efforts are focused and relevant. However, the iterative nature of research means that the process is not strictly linear; researchers may revisit secondary sources or refine their research questions based on insights gained from primary data collection. Overall, the key is to strike a balance between building on existing knowledge and generating new insights through empirical investigation. Instructor’s Notes: Every undergraduate student can relate to the scenario of registering for academic courses. Students need to put the various research concepts together to structure a research project that might improve this often frustrating, time-consuming process. • Example answers: o The university could use secondary sources of information such as how the process has been done in the past, the length of time it takes for the average student to register, the number of complaints received, the number of students waitlisted for courses, the amount of drop/add activity after registration, ages, academic class (freshman/sophomore/junior/senior), and gender. This information could indicate how long and arduous the process is; whether students can get the classes they want in the first round of registration, how much class-swapping occurs because of the poor registration process, and whether particular types of students have more trouble than others. In terms of primary research, the school could conduct direct observations of registration, in-depth interviews with students who have gone or are going through the process, focus groups with students who have been through registration and surveys of all registered students immediately after they complete registration. However, because of the limited time and patience that many college undergraduates have, as well as the limited budgets of many schools, the school might consider an initial Web survey to gather more responses for less money. In order, the other methods it should use are direct observation (which is inexpensive and involves students in the process), focus groups (because students could be lured by pizza, for example, to participate actively), and in-depth interviews (with a few randomly selected students to delve deeper into potential issues in the registration process using more open-ended questions). 10. Tony’s company is planning to launch a new shampoo and is trying to decide what features and price would interest consumers. He sends a request for proposal to four marketing research vendors, and three respond, as described in the table below. Vendor A Vendor B Vendor C Tony’s company has used this vendor in the past. It estimates it can complete the job for $200,000 and in two months. The vendor plans to do a telephone-based survey analysis and use secondary data. Tony’s key competitor has used this vendor, which claims that it can get the job done for $150,000 and in one month. This vendor plans to do a telephone-based survey analysis and use secondary data. During a discussion about to its price and time estimates, the vendor indicates it will draw on insights it has learned from a recent report prepared for a competitor. This well-known vendor has recently started to focus on consumer packaged good clients. It quotes a price of $180,000 and a time of one month. The vendor plans to conduct a Web-based survey analysis and use secondary data. Which vendor should Tony’s company use? Explain your rationale for picking this vendor over the others. Based on the information provided, Tony's company should consider Vendor B for their marketing research needs. Here's the rationale: 1. Competitive Advantage: Vendor B has experience working with a key competitor, which suggests they have insights into the industry and competitors' strategies. Drawing on these insights could provide valuable data for Tony's company to inform their decision-making process regarding the new shampoo product. 2. Cost-effectiveness: While Vendor B's initial cost estimate is higher than Vendor C's, it's lower than Vendor A's. However, the potential value of the insights gained from working with a competitor might outweigh the slightly higher cost. 3. Efficiency: Vendor B offers a shorter turnaround time compared to both Vendor A and Vendor C. This quicker delivery could be crucial for Tony's company to make timely decisions regarding the launch of the new shampoo product. 4. Methodology: Vendor B plans to conduct a telephone-based survey analysis and use secondary data. While this is similar to Vendor A's approach, it might be advantageous to leverage the insights gained from Vendor B's previous work with a competitor, which Vendor A lacks. In summary, Vendor B offers a combination of industry experience, competitive insights, reasonable cost, and efficient delivery, making them the most suitable choice for Tony's company's marketing research needs. Instructor’s Notes: Students might believe ethical issues are not at play here and therefore choose a vendor solely on the basis of the price, timeframe, and effectiveness and response rate of the research methods employed; alternatively, they may include ethical business practices as one of the selection criteria. Students’ answers will vary according to the degree to which they consider ethics a viable selection criterion. • Example answers: o In line with ethical business practices, Tony should include ethics as one of his selection criteria, in addition to the cost, timeframe, and research method. Therefore, he should immediately eliminate Vendor B from consideration, because it is unethical to share competitive information, even if it benefits Tony’s company. In comparing Vendor A and Vendor C, Tony should recognize that Vendor C offers to conduct the research faster, for lower cost, and with a more cost-effective research method and a higher potential response rate. Therefore, Tony should choose Vendor C. Net Savvy 1. Go to the Web site of either Decima Research (http://www.decima.com) or Ipsos Canada (www.ipsos.ca) that administers public opinion polls. Search the site for results from any recent survey that is available for free. Print out the results. Identify the objective(s) of the survey. Discuss one of the major findings, and provide an interpretation of the data. 1. Choose a Survey: Decide whether you want to explore Decima Research or Ipsos Canada. Both are reputable organizations known for conducting public opinion polls in Canada. 2. Navigate to the Website: Visit the website of your chosen organization. Look for a section labeled "Research" or "Public Opinion Polls." 3. Find Recent Survey Results: Browse through the available surveys and reports. Many organizations provide summaries or full reports of recent surveys for free. Look for something recent and relevant to your interests. 4. Identify the Objectives: Once you've found a survey report, read the introduction or methodology section to understand the objectives of the survey. These objectives typically outline what the researchers aimed to learn or understand by conducting the survey. 5. Discuss a Major Finding: Choose one of the major findings from the survey results. This could be a statistic, trend, or insight that stands out to you. Make sure it's something you can interpret and discuss in detail. 6. Interpret the Data: Provide your interpretation of the data. Consider the context, possible reasons behind the finding, and its implications. Are there any patterns or correlations worth noting? How does this finding contribute to our understanding of the topic? Remember to cite your sources properly if you're using any specific data or quotes from the survey report. If you need further assistance or have any specific questions, feel free to ask! Instructor’s Notes: This exercise provides students with access to the immense breadth and variety of research that a company like Decima or Ipsos conduct on a regular basis. The sites’ topics range from politics to entertainment, so there should be something to pique each student’s interest. • Example answers: In March 2008, Ipsos Canada reported the results of one of its three studies on Advertising and Brand Tracking for Olympic Sponsors in Canada: Beijing Summer Games 2008 (http://www.ipsos.ca/pdf/Ipsos_ASI_OlympicSponsors.pdf). One of its major findings is that of the 29 partners and sponsors of the Beijing games, the majority have increased their brand recognition since Ipsos started their tracking in October 2007. This finding may help sponsors maximize their Olympic sponsorship effectiveness, Gain an understanding of how Canadians view the Olympics, consume media, how much they watch, and what they watch; and Evaluate consumers’ perceptions of companies, brands, and their relationship with the Olympics. 2. Select two online survey tools (e.g., SurveyMonkey, Qualtrics, Zoomerang, Survey Solutions) and compare and contrast them in terms of their features, capabilities, ease of use, support service, pricing models, clientele, and any other characteristics you think would be useful for a market researcher to know. SurveyMonkey: Features and Capabilities: SurveyMonkey offers a user-friendly interface with a variety of question types, customizable templates, and options for branching logic. It also provides basic analytics and reporting tools. Ease of Use: SurveyMonkey is known for its simplicity and ease of use, making it accessible to users with varying levels of technical expertise. Support Service: SurveyMonkey offers email support to all users, with additional support options available for paid plans. However, the level of support may vary depending on the subscription tier. Pricing Models: SurveyMonkey offers a free plan with limited features, as well as several paid plans with varying levels of functionality and pricing based on the number of responses and additional features required. Clientele: SurveyMonkey is widely used by individuals, small businesses, and organizations of all sizes for conducting surveys and collecting feedback. Qualtrics: Features and Capabilities: Qualtrics provides advanced survey design features, including sophisticated branching and logic options, as well as robust analytics and reporting tools. It also offers integrations with other platforms and systems. Ease of Use: While Qualtrics offers more advanced features compared to SurveyMonkey, it may have a steeper learning curve for new users due to its complexity. Support Service: Qualtrics offers comprehensive support services, including phone and email support, as well as online resources such as tutorials and community forums. Pricing Models: Qualtrics pricing is typically higher than SurveyMonkey, with various subscription tiers based on the features required and the size of the organization. They also offer enterprise-level solutions with custom pricing. Clientele: Qualtrics is popular among large enterprises, academic institutions, and market research firms that require advanced survey capabilities and comprehensive data analysis tools. In summary, SurveyMonkey is a more straightforward and affordable option suitable for individuals and small businesses, while Qualtrics offers advanced features and robust support tailored for larger organizations and research-intensive projects. The choice between the two depends on the specific needs and budget of the market researcher. Instructor’s Notes: Online consumer surveys are becoming increasingly popular and so are the number of tools and vendors available to fulfill this need. Students could develop a better appreciation of the capabilities, costs, limitations and services of the available tools through this exercise. Example answers: Zoomerang MySurveyLab FluidSurveys SurveyMonkey Unlimited surveys yes yes yes yes Templates yes no no yes Branching or skipping yes yes yes yes Language Support yes no no yes Closing page yes yes yes yes Duplicate survey yes yes yes yes Customization yes no no yes Upload email contacts yes yes no yes Publish by URL yes yes yes yes Publish by email yes yes no yes Export to CSV yes yes no yes Free plan yes yes yes yes Starting plan (monthly) $19 currently free $14.95 $19.95 Source: Comparing Survey Applications: http://www.listio.com/reviews/2009/01/comparing-survey-applications-zoomerang-surveymonkey-fluidsurveys-and-mysurveylab/ (accessed October 25, 2011) End-of-Chapter Case Mobile Surveys Provide Real-time Customer Insights What do you consider to be the strengths and limitations of the FACES tool that Shoeless Joe’s is using to capture information to make location decisions based on customers’ insights? Strengths of the FACES tool used by Shoeless Joe's: Real-time Insights: The tool allows Shoeless Joe's to gather customer feedback in real-time, enabling them to make quick and informed decisions regarding their locations based on current trends and preferences. Mobile Accessibility: Being a mobile survey tool, FACES makes it convenient for customers to provide feedback, increasing the likelihood of participation and yielding more comprehensive data. Customization: FACES likely offers customization options, allowing Shoeless Joe's to tailor surveys to specific demographics or locations, thus obtaining more relevant insights. Cost-effectiveness: Compared to traditional methods like focus groups or paper surveys, mobile surveys through FACES may be more cost-effective, reducing expenses associated with data collection and analysis. Limitations of the FACES tool: Sampling Bias: Responses collected through mobile surveys might not represent the entire customer base, potentially leading to sampling bias and skewed insights. Limited Depth: Mobile surveys often have constraints in terms of the length and complexity of questions, which might limit the depth of insights gathered. Technology Dependence: The effectiveness of the tool relies heavily on the availability and reliability of technology, including internet connectivity and smartphone usage, which might vary across different locations or demographics. Lack of Context: Without the ability to engage customers in face-to-face interactions, Shoeless Joe's may miss out on contextual cues and nuances that could provide deeper understanding beyond the survey responses. Overall, while the FACES tool offers valuable advantages in terms of real-time insights and accessibility, Shoeless Joe's should be mindful of its limitations and consider complementing it with other research methods for a more comprehensive understanding of customer preferences. Instructor’s Notes: This question is designed to get students to think about the strengths and limitations of using technologies, specifically mobile devices, to capture data. The setting must also be considered. Students may find this question challenging. • Example answers: o The FACES tool is basically and hand-held device (much like PDA) that is preloaded with a short questionnaire, which patrons at Shoeless Joe’s are asked to “fill-out” while visiting the restaurant. While the actual hand-held device does not have any drawbacks in itself (except some patron may have difficulty reading on a small screen), there are drawbacks in the way it is being used to administer the survey. Employees ask patrons the questions and input their answers or patrons are given the device with the questionnaire and asked to fill in their answers to the questions. Experience with this technology may be a factor to consider in whether patrons complete the survey or not. Those who are familiar with the device may not have any problem but others who are not may inadvertently submit an incomplete survey or ask for a second attempt. Such an event will add noise to the data. Also, in a social setting, some patrons may be hesitant or uncomfortable filling out the survey because of the risk of being embarrassed. The benefits of FACES are that it provides instant results and feedback from actual patrons and most consumers may find it easy to use given the widespread use of PDAs in Canada. The impact of the setting is discussed below in questions 2 & 3. 2. What are the methodological drawbacks from the way in which Shoeless Joe’s employees go about collecting survey responses from customers? The employees of Shoeless Joe's could potentially face several methodological drawbacks in the way they collect survey responses from customers: 1. Sampling Bias: If employees only approach certain types of customers or those who have had particularly positive or negative experiences, the sample may not accurately represent the broader customer base. 2. Response Bias: Customers may feel obligated to give positive feedback if approached directly by an employee, especially if they feel their response could affect the employee's job or the overall atmosphere of the establishment. 3. Limited Sample Size: Depending solely on employee interactions may limit the number of responses collected, resulting in a smaller sample size that may not be representative of the entire customer population. 4. Social Desirability Bias: Customers may provide responses they believe are socially acceptable or expected rather than their true opinions, particularly when speaking directly to an employee. 5. Lack of Anonymity: Customers may feel uncomfortable providing honest feedback directly to an employee, especially if their comments are critical or could be perceived as negative. 6. Inconsistent Approach: Different employees may approach customers in different ways or at different times, leading to inconsistencies in data collection methods and potentially skewing the results. 7. Limited Reach: Relying solely on employee interactions may not reach all customer demographics, particularly those who may visit the establishment less frequently or during off-peak hours. To mitigate these drawbacks, Shoeless Joe's could consider supplementing employee surveys with other methods such as online surveys, suggestion boxes, or follow-up emails to ensure a more comprehensive and unbiased collection of customer feedback. Instructor’s Notes: This question is designed to get students to think of methodological issues associated with data collection involving electronic surveys and how they are administered. Students may find this question challenging. • Example answers: o Employees can introduce their own biases by selecting patrons they think would answer the questions or they believe are the right candidates. This could lead to a situation where there are no ground rules for selecting patrons or no way of ensuring if there are rules, that they were followed. o Employees may select the option they think patrons are suggesting or they may even suggest answers to patrons when patrons seems unsure or unaware of the answers o The number of patrons chosen on any given day may depend on how busy the restaurants are and so there may be little consistency from one data collection point to the next o Patrons may provide answers that they think employees want to hear o In a social setting such as in a bar, friends and family members sitting at the table may influence the answers provided. Thus, this would be a group response as opposed to an individual response, thereby adding noise to the data. 3. How do the drawbacks identified in question 2 above, affect the validity and reliability of the data collected? Discuss? The drawbacks identified in question 2 can significantly impact the validity and reliability of the collected data. Let's delve into how each drawback affects these crucial aspects: Low response rate: A low response rate can introduce selection bias, where the respondents who do participate may not be representative of the entire population. This undermines the validity of the data because the sample may not accurately reflect the opinions or characteristics of the target population. Moreover, if certain groups are disproportionately underrepresented, it can skew the results and lead to erroneous conclusions. Reliability is also compromised because the findings may not be consistently replicable if the sample composition varies widely between different survey administrations. Non-response bias: Non-response bias occurs when the characteristics of those who choose not to respond differ systematically from those who do respond. This can distort the findings, as the opinions and perspectives of non-respondents are not captured. As a result, the data may not accurately represent the true sentiments or behaviors of the population, affecting both validity and reliability. If non-respondents differ significantly from respondents, the reliability of the data decreases because the findings may not be consistently applicable to the broader population. Social desirability bias: Social desirability bias occurs when respondents provide answers that they perceive as socially acceptable or desirable, rather than their true beliefs or behaviors. This can lead to over-reporting of socially desirable traits or under-reporting of socially undesirable ones, resulting in a distortion of the data. The validity of the findings is compromised because they may not reflect the reality of respondents' attitudes or actions. Additionally, reliability is affected because the consistency of responses across different administrations of the survey may be questionable if respondents alter their answers based on perceived social norms. Questionnaire design issues: Poorly constructed questions or response options can introduce measurement error, affecting both validity and reliability. Ambiguous or leading questions may elicit responses that do not accurately reflect respondents' true opinions or experiences, reducing the validity of the data. Similarly, response options that are too limited or do not adequately capture the range of possible answers can lead to misinterpretation of respondents' views, further undermining validity. Reliability is compromised because inconsistent or confusing questionnaire items may yield varying responses upon repeated administration of the survey. In summary, the identified drawbacks can weaken the validity and reliability of collected data by introducing biases, measurement error, and inconsistencies. Addressing these issues through careful sampling techniques, questionnaire design, and data analysis methods is crucial to mitigate these concerns and ensure the trustworthiness of research findings. Instructor’s Notes: This question is designed to get students to think about what factors would reduce the reliability and validity of the study. Validity will not be affected by the way the study is administered but by the appropriateness or accuracy of the items that measure certain constructs (see definition of validity). Reliability will, however, be affected by the way the survey is administered since it will be difficult to replicate if there are no fixed criteria or they were not followed and monitored to ensure compliance. Most students will find this question difficult. Example answers: o Employees’ bias in selecting the sample respondents without always following a set criteria o Employees may select patrons that appear friendly or may even ask several members from the same table in order to quickly reach the quota for the day – this may lead to group think or patrons giving misleading answers o The setting may not be conducive for respondents to offer their true opinions or they may be influenced by friends or family o Respondents provide information that they think employees want to hear especially if employees are reading the questions and filling-in the responses. 4. Would you recommend that Shoeless Joe’s also uses other methods to collect the data it needs? What are the advantages of the methods you would recommend over the method it currently uses Yes, incorporating additional methods for data collection can enhance the insights gained by Shoeless Joe’s. Here are some recommendations along with their advantages over the current method: Customer Surveys: Conducting surveys either through email, on-site tablets, or QR codes can provide direct feedback from customers. This method allows Shoeless Joe’s to gather specific information about customer preferences, satisfaction levels, and areas for improvement. Unlike relying solely on social media comments, surveys can yield structured data that is easier to analyze quantitatively. Loyalty Programs: Implementing a loyalty program can incentivize customers to provide information about their preferences and behaviors in exchange for rewards or discounts. This method encourages repeat visits and builds a database of customer profiles, enabling Shoeless Joe’s to tailor their offerings more effectively. Additionally, loyalty program data can provide insights into customer spending habits and frequency of visits. Point-of-Sale (POS) Data Analysis: Leveraging POS systems to analyze transaction data can reveal patterns in customer behavior, such as peak hours, popular menu items, and average spending per customer. This method provides real-time insights and allows Shoeless Joe’s to make data-driven decisions on pricing, promotions, and inventory management. POS data can also be integrated with customer relationship management (CRM) systems for a comprehensive view of customer interactions. In-depth Interviews and Focus Groups: Conducting qualitative research through interviews and focus groups can uncover deeper insights into customer preferences, motivations, and perceptions. Unlike social media comments, which may lack context or depth, in-depth interviews allow Shoeless Joe’s to explore specific topics in detail and gain a nuanced understanding of customer needs. This method can also help identify emerging trends or unmet needs that may not be apparent through quantitative data alone. Overall, incorporating these additional methods for data collection can complement Shoeless Joe’s current approach and provide a more comprehensive understanding of customer preferences and behaviors. By leveraging a mix of quantitative and qualitative data sources, Shoeless Joe’s can make more informed decisions to enhance the customer experience and drive business growth. o Instructor’s Notes: This question is designed to get students to think about how different data collection methods can be combined to generate data that either corroborates other data or reveal new insights. Students will find this question fairly easy although they may not always provide complete answers. Example answers: o Shoeless Joe’s may consider replicating its FACES survey using a telephone survey in order to get comparative data, which may shed light on whether the setting influences the responses. o They may also choose to conduct in-depth interviews with loyal customers or even use focus groups to get a deeper understanding of patrons’ views and perceptions. Video Activities Video: Kraft: Marketing Research To Aid Kraft's Launch of Ritz Chips Learning Objective: LO 4 Page Number in Text: 128 Description: This video provides a clear view of the nature and importance of market research in the launch of new products even from highly successful and recognizable consumer brand marketers. Key Words: market research; product development; focus group Activity: Ask students to view the video and then (1) identify the main problem Kraft was trying to address and how did that problem ultimately influence the outcome, (2) discuss what kinds and sources of information Kraft used to get insights to solve their problem, (3) use a table to match the kinds of information to the sources of information and the purpose they serve in terms of the problem at hand, e.g., kinds of information (e.g. primary data - give details), sources of information (e.g. company records & research), and purpose (to understand customer perception of differences between chips and crackers), and (4) explain to what extent and why they believed the success of the new Kraft Chip was due to the market research undertaken. 1. Main Problem and Influence on Outcome: Kraft was aiming to launch Ritz Chips successfully. The main problem they were trying to address was understanding consumer preferences and perceptions regarding the new product. This problem influenced the outcome significantly because it guided Kraft in tailoring their product development and marketing strategies to meet consumer needs and preferences more effectively. 2. Kinds and Sources of Information Used by Kraft: • Primary Data: This includes information collected directly from consumers through methods like surveys, focus groups, and taste tests. • Secondary Data: Information obtained from existing sources such as market reports, competitor analysis, and internal company records. • Qualitative Research: Insights gained from focus groups, in-depth interviews, and observations. • Quantitative Research: Data gathered through surveys, sales figures, and statistical analysis. 3. Table Matching Information Types, Sources, and Purpose: 4. Success of Ritz Chips and Market Research: The success of the new Kraft Chip can be attributed significantly to the thorough market research undertaken. By understanding consumer preferences and perceptions through various research methods, Kraft was able to tailor the product features, marketing messages, and distribution strategies to better align with consumer needs. This led to a more successful launch and acceptance of Ritz Chips in the market, resulting in higher sales and positive brand perception. Therefore, the market research played a crucial role in shaping the success of the product. Solution Manual for Marketing Dhruv Grewal, Michael Levy, Shirley Lichti, Ajax Persaud 9780071320382, 9780070984929
