This discussion will allow us to discuss how predictions about the 2016 and 2020 presidential elections were inaccurate due to sampling related issues and gain an appreciation for the complexity of designing appropriate samples.
Your task: Review this week’s course materials. Pay particular attention to textbook Chapter 8 (Sampling Procedures) and the pre-recorded Powerpoint lecture on sampling found in the media gallery and indicated in the required resources section of this unit’s module. Then review the following videos:
-Pew Research Center Video: https://youtu.be/sfBAPn7-hDg
-NPR:
https://www.npr.org/2020/11/19/936317341/why-were-…
ESSENTIALS of
MARKETING
RESEARCH
Putting Research Into Practice
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Library of Congress Cataloging-in-Publication Data
India
Clow, Kenneth E.
SAGE Publications Asia-Paciic Pte. Ltd.
Essentials of marketing research : putting research into
practice / Kenneth E. Clow, Karen E. James.
3 Church Street
#10-04 Samsung Hub
Singapore 049483
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4129-9130-8 (pbk.)
1. Marketing research. I. James, Karen E. II. Title.
Acquisitions Editor: Patricia Quinlin
Associate Editor: Maggie Stanley
HF5415.2.C56 2014
658.8′3—dc23
2012037172
This book is printed on acid-free paper.
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12 13 14 15 16 10 9 8 7 6 5 4 3 2 1
Brief Contents
Preface
SECTION 1: INTRODUCTION TO MARKETING RESEARCH
xvii
1
1. The Role of Marketing Research
2
2. The Marketing Research Process
25
SECTION 2: TYPES OF MARKETING RESEARCH
61
3. Secondary Data and Research
62
4. Qualitative Research
95
5. Observation Research
127
6. Survey Research
161
7. Experimental Research
192
SECTION 3: SAMPLING AND MEASUREMENT
223
8. Sampling Procedures
224
9. Measurement Methods
253
10. Marketing Scales
284
11. Questionnaire Design
322
SECTION 4: ANALYZING AND REPORTING MARKETING RESEARCH
357
12. Fundamental Data Analysis
358
13. Analysis of Differences and Regression Analysis
396
14. Research Reports and Presentations
432
Appendix: Careers in Marketing Research
Notes
Photo Credits
Index
About the Authors
464
468
481
482
497
Detailed Contents
Preface
SECTION 1: INTRODUCTION TO MARKETING RESEARCH
1. The Role of Marketing Research
Learning Objectives
Introduction
Marketing Research
Functions of Marketing Research
Applied Versus Basic Research
The Philosophy of Science
The Scientific Method
Marketing Research and Decision Making
Segmentation and Targeting
Product Development
Marketing Communications and Media Selection
Market and Competitive Analyses
Pricing and Forecasting
Site Selection and Distribution
Brief History of Marketing Research
The Marketing Research Industry Today
Conducting Research In-House Versus Outsourcing
Full-Service and Boutique Market Research Firms
Sample Aggregators
Emerging Trends in Marketing Research
Telecommunications Technology
Economics
Competition
Overview of the Text
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
xvii
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2. The Marketing Research Process
Learning Objectives
Introduction
Types of Research Design
Exploratory Research
Descriptive Research
Causal Research
Overview of the Marketing Research Process
Research Purpose
Research Design
Sample Selection
Data Collection
Data Analysis
Research Report
Preparing the Research Proposal
Qualitative and Quantitative Research
Qualitative Research
Quantitative Research
Social Media: An Illustration of the
Marketing Research Process
Ethical Considerations in Designing Research Studies
Ethics and the RFP
Ethics and the Research Proposal
Ethics and the Research Process
Ethics and Respondents
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
SECTION 2: TYPES OF MARKETING RESEARCH
3. Secondary Data and Research
Learning Objectives
Introduction
It All Begins With Secondary Data
Advantages of Secondary Data
Disadvantages of Secondary Data
Evaluating the Accuracy of Secondary Data
Key Uses of Secondary Data
Sources of Secondary Data
Internal Sources of Secondary Data
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Open Access Sources of Secondary Data
Published Sources of Secondary Data
Syndicated Sources of Secondary Data
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
4. Qualitative Research
Learning Objectives
Introduction
The Role of Qualitative Research
Focus Groups
Develop Study Parameters
Compose Interview Questions
Select Participants
The Focus Group Session
Debriefing
Written Report
Disadvantages of Focus Groups
Online Qualitative Research
Online Focus Groups
Discussion Boards, Online Communities, and Chat Rooms
In-Depth Interviews
Projective Techniques
Sentence Completion
Cartoon Tests
Picture or Photo Sorts
Word Association
Storytelling
Third-Person Technique
ZMET (Zaltman Metaphor Elicitation Technique)
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
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5. Observation Research
Learning Objectives
Introduction
Observation Research Conditions
Dimensions of Observation Research
Natural Versus Contrived
Open Versus Disguised
Direct Versus Indirect
Unstructured Versus Structured
Human Versus Mechanical
Overview of Observation Research
Human Observation
In-Person Observation
Camera/One-Way Mirror Observation
Mystery Shoppers
Ethnographic Research
Online Observation
Social Media Monitoring
Text Mining
Web Tracking
Link Analysis
Mechanical Observation
Market Basket Analysis
Radio and Television Monitoring
Eye Tracking
Cognitive Neuroscience
Physiological Measures
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
6. Survey Research
Learning Objectives
Introduction
Why Use Survey Research
Survey Research Time Frame
Types of Errors in Survey Research
Sample Design Error
Respondent Error
Measurement Error
Data Collection Alternatives
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Telephone Surveys
Mail Surveys
Personal Interviews and Intercept Studies
Internet Surveys
Mixed Modes
Survey Selection Considerations
Budget, Time Frame, and Precision
Questionnaire Length and Structure
Incidence Rate
Sample Characteristics
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
7. Experimental Research
Learning Objectives
Introduction
Nature of Causal Research
Concomitant Variation
Time Order of Occurrence
Elimination of Extraneous Factors
Basic Elements of Experimental Design
Experimental Notation
Control and Treatment Groups
Ethics in Experimentation
Internal and External Validity
Extraneous Variables
History
Maturation
Testing
Instrumentation
Selection
Attrition
Preexperimental Designs
One-Shot Preexperimental Design
One-Shot Static Group Design
One-Group Pretest-Posttest Design
True Experimental Designs
Pretest-Posttest Control Group Design
Posttest-Only Control Group Design
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Quasi-Experimental Designs
Time Series Design
Time Series Control Group Design
Test Markets
Challenges of Test Markets
Competitive Reactions
Novel Versus Normal Behavior
Test Market Opportunities
Issues in Selecting a Test Market
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
SECTION 3: SAMPLING AND MEASUREMENT
8. Sampling Procedures
Learning Objectives
Introduction
Introduction to Sampling
The Sampling Process
Define the Population
Identify the Sample Frame
Choose a Sampling Procedure
Decide on the Sample Size
Select the Sample
Nonprobability Sampling Methods
Convenience Sample
Judgment Sample
Quota Sample
Snowball Sample
Probability Sampling Methods
Simple Random Sample
Systematic Random Sample
Stratified Sample
Cluster Sample
Determining the Sample Size
General Practice
Previous Studies
Statistical Formula
Sample Size Calculators
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Sample Size Tables
Online Research Panels
Benefits of Online Research Panels
Concerns With Online Research Panels
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
9. Measurement Methods
Learning Objectives
Introduction
The Concept of Measurement
Nominal Scales
Ordinal Scales
Interval Scales
Ratio Scales
Deciding Which Scale to Use
Validity and Reliability
Reliability
Test-Retest Reliability
Equivalent Form Reliability
Internal Consistency Reliability
Validity
Face Validity
Content Validity
Predictive Validity
Construct Validity
Relationship of Validity and Reliability
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
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10. Marketing Scales
284
Learning Objectives
Introduction
284
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Measuring Attitudes
Scale Development
Characteristics of a Good Scale
Marketing Scales
Rank-Order Scales
Q-Sort
Paired Comparisons
Constant Sum
Graphical Rating Scales
Itemized Rating Scales
Semantic Differential Scales
Stapel Scales
Likert Scales
Scale Category Considerations
Number of Categories
Balanced Versus Unbalanced Scales
“No Opinion” and “Don’t Know” Options
Forced Versus Nonforced Choices
Type of Category Description
Validity and Reliability Measurement
Correlation Analysis
Factor Analysis
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
11. Questionnaire Design
Learning Objectives
Introduction
The Questionnaire Design Process
Question Format
Open-Ended Questions
Closed-Ended Questions
Types of Closed-Ended Questions
Dichotomous Questions
Multiple-Choice Questions
Scaled-Response Questions
Questionnaire Development
Demographic or Classification
Knowledge
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Attitudes
Preferences
Intentions
Behaviors
Question Phrasing
Ambiguity, Jargon, and Clarity
Vocabulary and Scales
Limitations of Human Memory and Either/Or Questions
Double-Barreled and Leading Questions
Questionnaire Layout
Instructions
Screening Questions
Survey Questions
Demographic Information
Closing
Design Considerations
Invitation or Cover Letter
Split-Questionnaire Design
Evaluating the Questionnaire
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
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SECTION 4: ANALYZING AND REPORTING
MARKETING RESEARCH
357
12. Fundamental Data Analysis
358
Learning Objectives
Introduction
Preparing Data for Analysis
Data Validation
Data Collection Process
Proper Screening
Fraud
Data Completeness
Data Usability
Data Coding
Coding Closed-Ended Questions
Coding Open-Ended Questions
Data Entry
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Data Cleaning
Precoding Questionnaires
Tabulation
One-Way Tabulations
Cross-Tabulations
Basic Descriptive Statistics
Graphing Data
Global Concerns
Statistics Review
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
13. Analysis of Differences and Regression Analysis
Learning Objectives
Introduction
Hypothesis Testing
Step 1: State the Hypothesis
Step 2: Select the Statistical Test
Step 3: Determine the Decision Rule
Step 4: Calculate the Test Statistic
Step 5: State the Conclusion
Statistical Significance Versus Practical Importance
Misuses of Statistical Significance
Relevancy and Statistical Significance
Types of Error
Chi-Square Test
One-Way Frequency
Cross-Tabulations
Testing for Differences in Means
t-Tests and z-Tests
Analysis of Variance
Regression Analysis
Simple Regression
Multiple Regression
Global Concerns
Dealing With Data
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
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14. Research Reports and Presentations
Learning Objectives
Introduction
Goals of Reports and Presentations
Effectively Communicate Findings
Provide Interpretations of Findings
Drawing Conclusions
Provide Insight
Make Recommendations
Discuss Limitations
Preparing Research Reports
Title Page
Table of Contents
Executive Summary
Introduction
Research Methodology
Data Analysis Findings
Conclusions and Recommendations
Appendices
Executive-Ready Report
Oral Presentations
Creating Effective Presentations
Creating Effective Visuals
Making PowerPoint Presentations Come Alive
Creating Charts and Graphs
Pie Charts
Line and Area Charts
Bar/Column Charts
Global Concerns
Summary
Glossary of Key Terms
Critical Thinking Exercises
Continuing Case Study: Lakeside Grill
Marketing Research Portfolio
Student Study Site
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Appendix: Careers in Marketing Research
464
Notes
Photo Credits
Index
About the Authors
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497
Preface
T
he only thing constant in life is change.” This famous quote, largely attributed to French
philosopher François de la Rochefoucauld, seems custom-made for marketing research.
Clearly the field is changing. New technologies and emerging social trends make marketing research one of the most interesting and possibly volatile career choices possible.
We developed Essentials of Marketing Research: Putting Research Into Practice because we
concluded that the methods used to teach today’s emerging new marketing research need to
be different. Further, we believe that the currently available texts do not meet the needs of the
majority of students enrolled in the marketing research course required for most marketing
majors. Toward that end, this book features four themes that make it distinct from other books
and more useful to marketing students. These include:
•
•
•
•
Strong emphasis on how to use marketing research to make better management decisions
Focus on understanding and interpreting marketing research studies
Application of marketing research to marketing and business situations
Integration of data analysis, interpretation, application, and decision making throughout the
entire text
First, then, as the book title notes, we put research into practice in every chapter. The goal is
to show students how research is used by marketing professionals to make more informed decisions. While uncertainty cannot be eliminated, marketing research can reduce the uncertainty
managers face in the decision-making process.
Second, the book has a focus on understanding and interpreting marketing research studies.
While statistics and analytical techniques are presented in the text and are important, the focus
of this text is on how to understand those findings and more importantly how to interpret the
findings in a practical manner. Data analysis may show something to be significantly different,
but what does that mean? How can it be interpreted, and is it of managerial significance? These
types of questions are answered in every chapter of the text in a way that allows students to see
how marketing research is used by businesses in the 21st century.
Third, this text focuses on the application of marketing research to marketing and business
situations. The marketing situations faced by businesses today are different from what businesses faced even 10 years ago. Social media especially have revolutionized the way consumers
communicate and how businesses market their brands. These changes have also impacted
marketing research, especially in terms of data collection. But, they have also impacted
reporting of results and the role marketing researchers have in the development of marketing strategies.
xvii
x v iii
E SSE N TI A L S O F M A R K ETI NG RESEA RCH
KEY FEATURES
This textbook was designed to help students learn, understand, and apply the concepts and
theories of marketing research. A variety of methods are used to reach this goal. Each has a
special purpose that addresses a component of learning.
Chapter Openings
Each chapter begins by describing the results of a research study that apply to the topics being
presented in that chapter. These are taken from a variety of industries, with a greater emphasis
on social media and the Internet. This approach allows students to better understand how firms
use marketing research to make decisions. It also exposes students to research findings of practical value. Thus students not only benefit from a better understanding of how research results
guide decision making, but their understanding of marketing tactics and marketing decision
making is also enhanced.
Statistics Review
Beginning with Chapter 2, each chapter has a “Statistics Review” section that reviews basic
principles of statistics. Rather than focusing on theory and formulas (as is common in statistical
textbooks), the “Statistics Review” section of this text emphasizes the practical interpretation
and application of the statistical principle being reviewed. Because many students take statistics
two to four semesters prior to the marketing research class, this content provides a necessary
and helpful refresher of statistical topics. Furthermore, the section addresses a common problem among undergraduate students in that many suffer from a disconnect between statistical
theory, as explained in statistics courses, and practical application and usage of statistics, as
required in marketing research courses.
Dealing With Data
As with the “Statistics Review,” each chapter has a feature called “Dealing With Data.” Most
marketing research textbooks wait until the final few chapters to present data analysis and
interpretation. Starting with Chapter 2, this text provides students with multiple opportunities to practice how to interpret and apply results to marketing decisions throughout
the entire semester. When the section is used on a regular basis, repetition helps students
to internalize the information, allowing for true learning to occur. Because students begin
dealing with data in Chapter 2 and continue through the rest of the book, they develop a
superior understanding of how to interpret and apply research results. Multiple SPSS data
sets are provided at the textbook’s accompanying website for instructor/student use. These
data sets can be used for the purposes outlined in each chapter’s “Dealing With Data” section
or can be adapted by the instructor for use with additional assignments. For instructors who
do not want to spend time teaching SPSS during class, step-by-step instructions for running
analyses in SPSS are available at the textbook website. These instructions can also be used by
students for review of the analytical process.
PREFACE
xix
Continuing Case Study: Lakeside Grill
The “Lakeside Grill” is a comprehensive case and is positioned at the end of each chapter.
The unique feature of this case is that it was conducted by students and as such can be a
valuable teaching tool in a number of ways. While the team of students made some very
good decisions in the research process, they also made some decisions that were not optimal.
Questions follow each chapter segment of the case. These can be used for class discussion,
in-class group work, or individual assignments. Because it is a continued case, it shows
potential trade-offs, difficulties, and flaws that often occur during the implementation of
a research project. Students can critically evaluate the decisions made, as well as how they
were implemented, and suggest improvement. When assigned on a regular basis, this section is useful for reinforcing the chapter material, and very helpful in terms of developing
students’ critical thinking and analytical reasoning skills.
Glossary of Key Terms
Terms presented in bold are defined at the end of each chapter. This helps students to both
review the chapter and reexamine the terms to make sure they understand them.
Presentation of Research Findings
This text has an emphasis on the presentation of research results. Graphs, tables, and figures
are used extensively to present research findings. Early exposure to the use of graphing to
present findings allows students to better understand when and how different types of charts
or graphs should be used, as well as the necessity of using legends and meaningful titles. Plus,
Chapter 14 discusses the most current presentation practices used by research practitioners,
which differ radically from those of the past that are discussed by most textbooks. The applied
focus in Chapter 14 helps students understand not only what information should be presented,
but how it can be done most effectively.
Critical Thinking Exercises
These are not review questions. These critical thinking exercises are applied in nature, and
emphasize key chapter concepts as well as understanding marketing research results and how
they can be applied to decision making. They require students to utilize critical thinking and
analytical skills. These exercises can easily be incorporated into class discussion, or assigned
on a daily basis as homework. They may also be used as exam questions for those who prefer
short-answer or problem-oriented testing.
Marketing Research Portfolio
The “Marketing Research Portfolio” section provides more challenging opportunities for students to apply chapter knowledge on an in-depth basis, and thus “learn by doing.” A summary
of each “Marketing Research Portfolio” is offered at the end of each chapter. The full “Marketing
xx
E SSE N TI A L S O F M A R K E TI NG RESEA RCH
Research Portfolio,” containing expanded client information, key facts, tasks to be performed,
and questions to be answered, is available on the open-access companion website: www.sagepub
.com/clowess. With the exception of the final two chapters, each “Marketing Research Portfolio”
can function as a stand-alone assignment, though some may incorporate tasks that span multiple
chapters. These assignments challenge students to apply text material in an advanced fashion;
critical thinking and secondary research skills can be honed in this manner. The “Marketing
Research Portfolio” assignments can be used as individual or group assignments, in-class group
tasks, or testing. If used extensively, the student will develop a portfolio of work that could be
helpful when interviewing for jobs in the research industry.
Global Concerns
Firms competing in the global arena now more than ever need accurate information to enhance
their decision making. Conducting research in foreign countries involves some unique challenges that are highlighted in each of the chapters of this text.
RESOURCES FOR STUDENTS
Several resources are available to students via the www.sagepub.com/clowess student website:
“Dealing With Data” Resources: Students have access to the “Dealing With Data” SPSS data
sets, data collection instruments that accompany the data sets, and an expanded set of the SPSS
instructions with embedded screenshots that will facilitate students’ understanding of SPSS and
various data analysis techniques.
SAGE Journal Articles: A “Learning From SAGE Journal Articles” feature provides access to
recent, relevant full-text articles from SAGE’s leading research journals. Each article supports
and expands on the concepts presented in the chapter. This feature also provides discussion
questions to focus and guide student interpretation.
Web Resources: These links to relevant websites direct both instructors and students to additional resources for further research on important chapter topics.
eFlashcards: These study tools reinforce students’ understanding of key terms and concepts
that have been outlined in the chapters.
Web Quizzes: Flexible self-quizzes allow students to independently assess their progress in
learning course material.
RESOURCES FOR PROFESSORS
One of our goals in creating this textbook is to make sure professors can augment what is
written in each chapter with additional teaching resources available at the textbook website,
www.sagepub.com/clowess. The total package for this book includes the following.
Test Bank (Word ): This Word test bank offers a diverse set of test questions and answers for
each chapter of the book. Multiple-choice, true/false, short-answer, and essay questions for
every chapter help instructors assess students’ progress and understanding.
PREFACE
xxi
PowerPoint® Slides: Chapter-specific slide presentations offer assistance with lecture and
review preparation by highlighting essential content, features, and artwork from the book.
Lecture Notes: These lecture notes summarize key concepts on a chapter-by-chapter basis to
help instructors prepare for lectures and class discussions. Chapter objectives and an outline
of each chapter’s material are also provided.
Sample Syllabi: Two sample syllabi—for semester and quarter courses—are provided to help
professors structure their course.
Data Sets: Data files are provided that relate to the Lakeside Grill questions in the text. Data sets
used in the “Statistics Review,” certain critical thinking questions, and a “Marketing Research
Portfolio” exercise are also available for instructor download and usage. Questionnaires
accompanying the larger data sets are also provided.
SAGE Journal Articles: A “Learning From SAGE Journal Articles” feature provides access to
recent, relevant full-text articles from SAGE’s leading research journals. Each article supports
and expands on the concepts presented in the chapter. This feature also provides discussion
questions to focus and guide student interpretation.
Web Resources: These links to relevant websites direct both instructors and students to
additional resources for further research on important chapter topics.
Answers to In-Text Questions: Answers to the in-text critical thinking questions are provided
to help instructors with lectures and grading.
Marketing Research Portfolio: An expanded version of the “Marketing Research Portfolio”
case is available to instructors.
ACKNOWLEDGMENTS
There are many persons who have assisted us in the development of this textbook.
We would like to thank the following individuals who assisted in the preparation of the
manuscript through their careful and thoughtful reviews.
Gary J. Bamossy
Georgetown University
Dr. Pola B. Gupta
Wright State University
Hyejeung Cho
University of Texas at
San Antonio
Jared M. Hansen, PhD
University of North Carolina at Charlotte
David Crockett
Moore School of Business at
the University of South Carolina
Bill Hauser, PhD
Department of Marketing &
International Business
The University of Akron
Ronald E. Goldsmith
The Florida State University
Joel Herche
University of the Pacific
James S. Gould
Pace University
Alexandra Hutto
Metropolitan State College of Denver
x x ii
E S SE N TI A L S O F M A R K ETI NG RESEA RCH
Gauri Kulkarni
Loyola University Maryland
Srivatsa Seshadri
University of Nebraska Kearney
Vaidotas Lukosius
Tennessee State University
Chris Y. Shao
Midwestern State University
Sanjay S. Mehta
Sam Houston State University
Ross B. Steinman
Widener University
Camelia Micu
Fairfield University
Gail Tom
College of Business Administration
California State University,
Sacramento
Mark S. Nagel
University of South Carolina
Tom Reilly
Virginia Polytechnic Institute and
State University
Boonghee Yoo
Hofstra University
Finally, Kenneth Clow would like to thank many of the individuals at the University of
Louisiana at Monroe. They continue to provide an exciting and accommodating work environment. He would also like to thank his sons Dallas, Wes, Tim, and Roy, who offer continuing
encouragement and support.
Karen James would like to thank Douglas Bible and the management and marketing faculty
at LSU Shreveport for their support. She also wishes to thank and acknowledge many former
students, who served as “guinea pigs” for critical thinking and dealing with data exercises.
We would like to especially thank our spouses, Susan Clow and Marc James, for being
patient and understanding during those times when the work seemed monumental. They have
been enthusiastic and supportive for many, many years.
SECTION 1
Introduction to
Marketing Research
CHAPTER
1
The Role of Marketing Research
LEARNING OBJECTIVES
After reading this chapter, you should be able to
1. Discuss the basic types and functions of marketing research.
2. Identify marketing research studies that can be used in making marketing decisions.
3. Discuss how marketing research has evolved since 1879.
4. Describe the marketing research industry as it exists today.
5. Discuss the emerging trends in marketing research.
Objective
1.1:
Discuss the
basic types
and functions
of marketing
research.
INTRODUCTION
Social media sites such as Facebook, Twitter, YouTube, and LinkedIn have changed the way people
communicate. Accessing social media sites is now the number-one activity on the web. Facebook
has over 500 million active users. The average Facebook user has 130 friends; is connected to
80 pages, groups, or events; and spends 55 minutes per day on Facebook. In 2011, marketers
wanting to take advantage of this activity posted over 1 trillion display ads on Facebook alone.
Facebook is not the only social media site being used by consumers. LinkedIn now has over
100 million users worldwide. YouTube has exceeded 2 billion views per day, and more videos are
posted on YouTube in 60 days than were created by the three major television networks in the
last 60 years. Twitter now has over 190 million users, and 600 million–plus searches are done
every day on Twitter.1
Social networks and communication venues such as Facebook and Twitter are where consumers
are increasingly spending their time, so companies are anxious to have their voice heard through
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CHAPTER 1: THE ROLE OF M A RKETI NG RESEA RCH
3
these venues. But, getting consumers to become a fan or agree to receive e-mails is only half of the
battle. Engaging them with the brand and encouraging them to become active followers through
these social media tactics is equally, if not more, difficult. While consumers join a company’s
Facebook page, or agree to receive e-mails and tweets, many are also opting out after a short time.
For companies using social media, understanding why individuals opt out after agreeing to be a fan
is important information. To gather this information, ExactTarget CoTweet surveyed 1,561 online
users in the United States.2 Figure 1.1 shows the results of the survey.
The top reason consumers quit being a brand fan on Facebook is because the company authors
too many posts, which in turn clutters the recipients’ wall with marketing information. The fact
that messages tend to be repetitive, boring, and irrelevant, and are perceived by many fans as
being overly promotional, is also an important factor in influencing fans to quit a brand’s Facebook
page. Companies can use these results to modify their marketing approach and how they author
Facebook posts.
This type of information is provided by marketing research, which is defined as the systematic
gathering and analysis of marketing-related data to produce information that can be used in
decision making. Marketing research involves following a systematic sequence of steps that will
produce reliable and valid data. Through analysis and interpretation the data are transformed into
information suitable for decision-making purposes by managers. Typically, data alone are simply
not usable. It is the analysis and interpretation of the data that makes them useful to managers.
Figure 1.1 Top Reasons Consumer Quit Brands on Facebook
50%
Percent of Respondents
45%
44%
43%
40%
38%
35%
30%
24%
25%
19%
20%
15%
10%
5%
0%
Too many
posts
Wall cluttered
with marketing
Messages
repetitive
and boring
Posts overly
promotional
Content
irrelevant
Source: Author-created with data from “The Social Break-up,” Report #8, ExactTarget CoTweet, 2011, http://www.exacttarget.com/
Resources/SFF8.pdf (retrieved June 9, 2012).
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S EC TI O N 1 : I N TRO D U C T I ON TO M A RKETI NG RESEA RCH
Figure 1.2 provides an example of marketing researchers turning data into useful information.3
In this situation, consumers were asked the question, “In a typical week, how many hours do you
spend with each of the following media?” The marketing researcher took the raw data, which was
the number of hours spent with each type of media, and converted it into the percentage of time
spent with each type of media. This allowed marketers to see that consumers now spend almost
as much time with the Internet as they do with television. Further, almost 70% of consumer media
time is spent either with television or with the Internet.
Figure 1.2 Percent of Time Consumers Spend With Each Media
Magazines, 6%
Newspapers, 7%
Radio, 18%
Internet, 34%
Television, 35%
Source: Author-created with data from Shar VanBoskirk, “US Interactive Marketing Forecast, 2009 to 2014,” Forrester Research Inc.,
July 6, 2009 (updated July 20, 2009).
MARKETING RESEARCH
Marketing research may be conducted internally by the firm’s marketing department or
performed externally by a marketing research firm. The information gathered is then used to
make decisions related to the marketing mix or other marketing functions. The marketing mix
is the specific combination of product, pricing, promotional, and distribution decisions made
for the purpose of targeting a particular group of consumers. Some of the more common
marketing uses of research information include market segmentation, identifying specific
target markets and their media habits, analyzing consumer behavior and needs, tracking
customer satisfaction, developing new products, and evaluating various forms of advertising
executions and pricing tactics. But, the use of marketing research information is not limited to
just the marketing department. It can be used by all levels of management to make decisions
CHAPTER 1: THE ROLE OF M A RKETI NG RESEA RCH
5
that impact other aspects of a firm’s operation. It can guide top management in making
strategic decisions about acquisitions, divestitures, and expansion. It can be used by middle
managers to develop production schedules, purchase raw materials, develop departmental
budgets, and determine appropriate staffing levels.
Functions of Marketing Research
As shown in Figure 1.3, marketing research serves four primary functions within an organization. The exploratory function of marketing research occurs when researchers have a limited
understanding or no knowledge at all about a marketing situation or a particular outcome. For
example, a company may be losing customers or sales may
be declining, but managers are not sure why. Marketing
Figure 1.3 Functions of
research can be used to explore some of the possible causes
Marketing Research
of lost sales or customers. Alternatively, a firm may be considering offering a new product in a category with which
• Exploratory
it has little experience. In this case, marketing research
• Descriptive
could be used to delve deep into a consumer’s mind to
• Diagnostic
uncover some of the hidden reasons or thought processes
• Predictive
that go into making a purchase decision for the type of
good being considered.
Marketing research often serves a descriptive function, which refers to the gathering and presentation of information about a marketing phenomenon or situation. For
example, marketing research can be used to describe the primary consumer of a product,
such as a Panasonic HDTV or a John Deere tractor. It can be used to describe the process a
customer uses in deciding on a restaurant for dinner, such as Romano’s Macaroni Grill or
Outback Steakhouse. Figure 1.4 illustrates the descriptive function of marketing research
since it shows the primary reason individuals watch the Super Bowl football game. While
the majority, 55%, are mostly interested in the football game, some watch it specifically to
see the commercials (15%), and others watch for the social aspect of being with family and
friends (27%).4
The diagnostic function of marketing research is particularly helpful in many situations.
Here, data analysis techniques are used to investigate relationships and phenomena within data
that have been gathered through marketing research. The analysis may show that females eat
at Olive Garden more frequently than males. It may show the reasons individuals opt out of
subscribing to a Facebook brand page, as was shown in Figure 1.1. Further analysis of the data
may show different reasons for opting out of a Twitter feed and an e-mail permission program.
The diagnostic function is important to marketers because it allows marketers to discover
interrelationships with data.
The predictive function of marketing research allows data to be used to predict or forecast
the results of a marketing decision or consumer action. Retailers use predictive research to
determine what items a consumer is likely to purchase together so suggestive selling can be used.
Barnes & Noble utilizes this technique when website customers select a particular book and the
software then suggests other books they might also want to purchase. Marketing research can
be used to estimate the impact of a coupon or another sales promotional offer. It is often used
to estimate the market share of a brand extension or new product introduction.
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S EC TI O N 1 : I N TRO D U C T I ON TO M A RKETI NG RESEA RCH
Figure 1.4 Primary Reason Individuals Watch the Super Bowl
Other reasons, 3%
To be with
family/friends, 27%
To see football
game, 55%
To see the
advertisements, 15%
Source: Author-created with data from “Super Bowl Sunday Consumer Survey,” Super Bowl XLV (January 2011), Lightspeed
Research, p. 17.
Applied Versus Basic Research
Marketing research can be either applied or basic. Applied marketing research is designed to
solve a specific marketing problem, to investigate a particular marketing phenomenon, or to understand the results of
previous decisions. The previous research investigating why
consumers opt out of a brand’s Facebook page and why
individuals watch the Super Bowl are examples of applied
research. Most commercial marketing research and research
conducted internally by research departments is applied
research since companies are seeking solutions to problems
or information that can help them exploit potential opportunities. Marketing research should provide information
that will allow managers to make better marketing decisions.
Basic marketing research is more theoretical in
nature and is conducted to advance marketing knowledge
in general or to verify a proposed marketing theory or
concept. Findings from basic research studies cannot be
implemented by managers in the short run. This is because
basic research is typically not conducted in the context of
a particular brand or firm, or for the purpose of solving a
Understanding why individuals watch
specific marketing problem or exploiting an opportunity
the Super Bowl football game is an
facing
a given brand or firm.
example of applied research.
CHAPTER 1: THE ROLE OF M A RKETI NG RESEA RCH
7
Most basic marketing research is conducted by academicians in an effort to advance our
knowledge of marketing. For instance, many research studies use questions to assess how consumers claim they will act when confronted with a given situation. A recent basic research study
evaluated four different methods by which consumers’ willingness to pay for an item is commonly
measured in consumer research studies, and compared the results with actual purchase data in
an effort to ferret out the relative strengths and weaknesses of each measurement technique.5
The results of this study cannot be immediately applied to any particular problem facing a firm,
but rather serve to advance our knowledge of marketing research practices. However, in the
future, the results of the study may influence the types of questions asked as part of an applied
research study commissioned by a firm that needs to investigate consumers’ willingness to pay
for their product as part of a larger research study.
The Philosophy of Science
The philosophy of science underlies researchers’ efforts to make sense of the world and its various
activities and events in a wide variety of disciplines. The philosophy of science assumes that for
a given event or activity, causes or “antecedents” can be identified, meaning that things don’t just
happen; they happen for a reason. Thus, scientific research seeks rational and logical explanations
for activities or events that are true the vast majority of the time. Most marketing researchers
desire to be 95% confident that the results of their research efforts are accurate and unlikely to
have occurred by chance. The philosophy of science also tends to value a more general understanding of events or phenomena (i.e., why Facebook fans quit “liking” brands), as opposed to
understanding of a particular event (i.e., why Facebook fans of Diet Coke quit “liking” the brand).
This is because such knowledge is useful in forming theories and because it allows a scientific law
to be generalized, meaning it can be applied to a larger group of activities or events. By contrast,
the reasons why Diet Coke Facebook fans “quit” liking the brand may be unique to Coca-Cola,
and though this information would be helpful to the firm from a broad scientific standpoint, the
information would be not at all useful in the formulation of theory or scientific law.
Another characteristic inherent in the philosophy of science is that science, by its very
nature, is empirically verifiable, meaning that the theories and laws created can be tested
through the collection and analysis of data. The nature of science and empirical testing is
such that we can never totally prove a theory to be true; however, the more a theory is subjected to testing under different conditions, and the more empirical testing fails to disprove
the theory, the more confident researchers can be in the validity, or truthfulness, of the
results. So part of the research process is to also investigate the specific conditions under
which a law or theory could be disproved.
Finally, the philosophy of science requires that researchers remain open to the possibility
of change and modification. It is common for a scientific theory to be tested over time and
eventually disproven in too many circumstances, ultimately leading to better theories with
greater explanatory value.6
The Scientific Method
In conducting marketing research, it is important that researchers follow the scientific method
shown in Figure 1.5. The research process begins with a thorough investigation of current
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knowledge. Whether applied or basic research, marketing researchers should examine current knowledge on the topic and review prior research. This typically involves examining
past research studies, academic articles, news articles, and facts, figures, and statistics from a
variety of sources. From this state of current knowledge, researchers can develop a theory that
explains the nature of what is being studied, followed by one or more hypotheses. The next
step is to design a study and then collect the data to test the hypothesis. It is important to state
the hypothesis prior to collecting data to prevent the data from biasing the hypothesis in any
way. From the data, the researcher can draw conclusions, advance theories, and create new
knowledge that can be used for future research. The cycle then begins again.
Figure 1.5 The Scientific Method
Theory
and
Hypothesis
Hypothesis
Test
Conclusion
Theory
Advancement
Current
Knowledge
New
Knowledge
Objective
1.2: Identify
marketing
research studies
that can be
used in making
marketing
decisions.
MARKETING RESEARCH AND DECISION MAKING
The primary objective of conducting marketing research is to support marketing decisions.
Managers will never have perfect knowledge, and as a result there will always be some uncertainty
in choosing a course of action. But, through marketing research, the amount of uncertainty can
be reduced, allowing the manager to be more confident the correct or best decision is being
made. Marketing research plays a role in
a number of marketing areas, as shown in
Figure 1.6 Marketing Research and Marketing
Figure 1.6.
Decisions
Segmentation and
Targeting
Marketing research provides essential
information for decisions on segmentation
and targeting. Benefit and lifestyle studies
examine the similarities and differences
consumers seek in products and how these
• Segmentation and targeting
• Product development
• Marketing communications and media
selection
• Market and competitive analysis
• Pricing and sales potential/forecast studies
• Site selection and distribution studies
CHAPTER 1: THE ROLE OF M A RKETI NG RESEA RCH
9
benefits fit into particular lifestyles. This information is then coupled with target market analysis, which provides basic demographic, geographic, psychographic, and behavioral information
about specific target markets. From these research studies, marketers can decide which segments
best match the features of their brands. Details such as usage patterns, attitudes, preferences, and
lifestyles will allow a company to make better segmentation and targeting decisions.
Product Development
Marketing research is used in all stages of product development. Research can be used in the
concept stage to gather customer input on ideas for a new product or modifications of a current product. Product testing studies identify how a product fits the needs of consumers and
what changes need to be made to the product to make it more attractive. Test markets can be
conducted to provide information on how well a new product or product modification will do
before the product is launched. Modifications and decisions that will increase the probability
that the new product will be successful can be made based on the results of the test market.
Marketing Communications and Media Selection
Marketing research can provide valuable information concerning marketing communications
(MarCom) and media selection. Advertising effectiveness research examines the effectiveness
of advertising and marketing communications. These studies can be conducted on a continuous basis and compared to a benchmark, previous ad campaigns, or competitive advertising.
Input from these research studies allows marketers to develop more effective advertising and
marketing communications. It also can identify when consumers are not paying attention
any longer and allows for detection of when an ad is wearing out. Media studies are used to
identify the most appropriate media to reach a specific target market. In addition to the best
media, media studies will also identify the best vehicles, such as the best magazines or the best
television shows to use.
Market and Competitive Analyses
A market analysis study will examine the current marketing situation faced by a company
or brand and then identify potential markets. While market analysis studies are especially
important for new products or entry into new markets, the studies are also important for current products, as market dynamics change. Companies can lose market share quickly if they
do not stay in touch with current consumer behavior trends. Just like market analysis studies,
competitive analysis studies should be conducted regularly to ensure market share is not lost
to competitors. Many organizations will use a marketing information system to gather market
and competitive information on a continuous basis.
Pricing and Forecasting
Pricing is an important determinant in buying decisions, so pricing studies can be used to
evaluate the elasticity of a brand’s price and the impact pricing changes will have on demand.
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Part of a pricing study is to examine competitors’ prices and determine how consumers (or
businesses) evaluate price relative to other product features. Additional studies, such as sales
forecasts and sales potential studies, are used to estimate future sales. These studies are often
used for budgeting, production, and staffing decisions.
Site Selection and Distribution
Finally, site selection studies help retailers determine the best locations for their stores. Other
research studies can help determine whether a single- or multichannel distribution system will
be most effective, which channels a manufacturer should use, how logistics can be improved,
and so forth.
Marketing research is an essential input into marketing management decisions. The studies previously cited are just a few examples of the types of information marketing research
can provide. Because of the impact marketing decisions make on a firm’s income and profit
generation, obtaining good information through marketing research has become more critical.
Objective
1.3:
Discuss how
marketing
research has
evolved since
1879.
BRIEF HISTORY OF MARKETING RESEARCH
The first documented instance of marketing research was in 1879 and was conducted by the
advertising agency N. W. Ayer. The company surveyed state and local officials about expected
levels of grain production. This information was used by a manufacturer of farm equipment in
the preparation of an advertising schedule. From that first beginning marketing research slowly
evolved. The basic foundation of marketing research was developed during the first 30 years of
the 20th century. The first textbook on marketing research was published in 1921, and the first
marketing research courses taught on college campuses occurred in the 1930s.7
The early years of marketing research focused on methods of sampling, collecting data, and
analytical techniques. Researchers also focused on ways to measure concepts such as opinions,
perceptions, preferences, attitudes, personalities, and lifestyles. The primary goal of marketing
research at that time was to measure marketing phenomena and consumer characteristics. Raw
data were converted to information, which was then passed on to managers to make decisions.
The period of the 1970s and 1980s is often referred to as the “golden age of consumer
research.” During this time marketing research techniques became more scientific. Computing
power made collecting and analyzing data faster, easier, cheaper, and more accurate. Companies
invested substantial dollars into marketing research to better understand the market, the consumer, and the decision process. Few decisions were made that were not supported by marketing research. Research study results became the support or rationale for choosing particular
marketing strategies and marketing tactics.8
During the late 1990s and early 2000s a cultural shift in marketing research began to occur.
Decision makers wanted more than support for marketing decisions. They wanted marketing
researchers to offer insights into what the data meant. Simply describing potential markets,
characteristics of consumers, and the decision process was no longer sufficient. Decision makers
wanted insights into why particular choices were made by consumers and how the results of a
marketing research study could provide a better understanding of the best strategies and tactics. Marketing researchers were no longer just data providers. They were to assist in providing
insights into marketing situations.
CH APTER 1: THE ROLE OF M A RKETI NG RESEA RCH
11
Some marketing researchers believe we are now beginning to enter another, newer phase of
marketing research—the consultative stage. Just providing insights may no longer be enough.
Managers want marketing researchers to be part of the solution, to provide input and direction into marketing decisions. For traditional marketing researchers, this is a challenge. They
were trained and educated in data analysis. Now, they are being asked to assist in developing
marketing strategy. It means not only do the researchers need a thorough understanding
of marketing research; they must also have a thorough understanding of marketing and especially marketing planning and strategy. Figure 1.7 highlights these various stages.
Figure 1.7 Historical Stages of Marketing Research
Foundation
of
Marketing
Research
First
Marketing
Research
1879
1900
1940
Golden Age
of
Marketing
Research
1970
1980
Insight
Stage of
Marketing
Research
1990
Consultative
Stage of
Marketing
Research
2000 2010
THE MARKETING RESEARCH INDUSTRY TODAY
Major catalysts of the significant changes in marketing research in the last two decades
are (1) the rise of international competition and (2) the explosion of communications and
computer technology. Figure 1.8 provides a pictorial illustration of the marketing research
industry as it exists today.9 While it looks complicated, it is not. But, it does illustrate how
interrelated the components of marketing research have become and how a research project
often involves multiple entities.
The client companies illustrated in the figure are numerous firms such as Nike, Kraft Foods,
Home Depot, Toyota, and Sony. These companies are called client companies because they are
the ones seeking information for making decisions through marketing research. Chapter 2 will
provide an overview of the research process and the request for proposal (RFP) that is issued
by client companies.
Conducting Research In-House Versus Outsourcing
When the decision has been made to conduct marketing research, client companies have two
alternatives: (1) They can conduct the research study themselves, or (2) they can hire a marketing research firm. If the company is large and has a research division, then the marketing
research study may be conducted internally within the firm. Even though a company has a
research division, it may not conduct all of the studies that are needed. The department may
be overloaded and need to commission a research firm to conduct particular studies. Or, it may
want an independent research firm to conduct a particular study to prevent internal bias from
impacting the outcome. Also, when commercially available research studies could provide the
Objective
1.4:
Describe the
marketing
research
industry as it
exists today.
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Figure 1.8 Marketing Research Industry Today
Full–Service
Research
Firms
Client
Companies
General
Population
Sample
Firms
Panels
Boutique
Research
Firms
Sample
Firms
Database
Research
Division
Syndicated
Data Firms
Sample
Aggregators
information needed to solve the research problem, the research division may simply purchase
this information from a commercial syndicated data firm. Many full-service market research
firms also subscribe to a wide variety of syndicated data sources.
The decision to conduct research in-house versus hiring a marketing research firm rests
on many factors. Generally, it is less expensive to conduct research in-house, so the budget
available for a given study is one factor. The level of specialization required for the study is
also a critical factor. It would make sense to hire a firm that specializes in Hispanic marketing
research, such as ThinkNow Research, than it would to attempt such research in-house. But,
in other cases, in-house corporate research departments are chosen over external suppliers
when a full-service firm lacks the business or technical knowledge necessary to truly understand the industry or problems facing the firm. The current workload of those employed
by the firm’s internal research division might also be important. However, while one might
reasonably assume that outsourced research projects free up time for the in-house research
staff, surprisingly, a recent online survey of 197 corporate researchers found that making more
time available for the firm’s internal research staff was not a factor in determining whether
or not research duties were outsourced. The study conducted by Research Innovation and
ROI in partnership with Quirk’s Marketing Research Review divided corporate researchers
who responded to the survey into three groups: those whose corporate research departments
relied primarily on full-service firms to conduct their research, those that relied primarily
on their own internal efforts for research, and those that split research duties fairly evenly
13
CH APTER 1: THE ROLE OF M A RKETI NG RESEA RCH
between external suppliers and their own in-house research department. Corporate research
respondents were asked to indicate the importance of each factor in the decision to conduct
the research in-house or outsource the study to an external entity.10 The results of this survey
are shown in Figure 1.9.
82%
90%
44%
48%
30%
28%
30%
36%
29%
40%
34%
40%
48%
50%
56%
60%
52%
70%
53%
64%
80%
77%
Figure 1.9 Pros and Cons of In-House Versus Outsourced Research
20%
10%
0%
Understanding
all relevent aspects
of your business
Proactively
initiating the
right research
Providing high
quality data
Ability to
persuade key
executives
Have strong
relationships
with the
right people
Rely on outside suppliers to design and execute research (n = 66)
Design and execute research in–house (n = 55)
Fairly evenly split between in–house and outsourced work (n = 76)
Source: Author-created with data from Brett Hagins, “Getting to the Big Picture—The Pros and Cons of In-House vs. Outsourced
Research,” Quirk’s Marketing Research Review (May 24, 2011).
The most important factor for all three types of corporate researchers was the quality of
data, though the importance level varied by group. While 82% of those designing and executing
research in-house indicated this factor was important, quality was of lesser importance (64%) to
firms that relied on an outside supplier. When hiring an external supplier, the client firm has no
control over the data collection process. Thus, if high-quality data is an important factor, then
often the decision is to conduct the study in-house because the firms have more control over
the integrity of the data. The least important factors influencing the decision to go in-house or
outsource were the ability of the marketing researcher to persuade key executives concerning
the findings of the research and proactively initiating the right research.
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Full-Service and Boutique Market Research Firms
If the decision is made to hire a marketing research firm, a company has a wide array of choices
from small boutique firms to full-service research agencies. Full-service agencies, called “fullservs” within the industry, have the capability of conducting all types of research, including
focus groups, individual interviews, telephone surveys, mail surveys, Internet surveys, and more.
These companies start with the research objectives the client firms want to accomplish. The
full-serv will then design the study, collect data, analyze the data, and make a report.
While full-service research firms offer a full array of services, boutique firms specialize in
either a particular type of research or a particular type of audience. For instance, ThinkNow
Research focuses only on Hispanic respondents and firms that want to research the Hispanic
market. EC Insights is a boutique research agency that specializes in providing meaningful
insights and strategic guidance for a brand throughout its life cycle. The Realise Group is a
boutique marketing research agency that focuses on mystery shopping in the retail sector providing retailers with a full measurement and evaluation of customer experiences. Axion is a
boutique agency that specializes in creative research methods that utilize focus groups, in-depth
interviews, and other one-on-one approaches.
Sample Aggregators
Both full-service research firms and boutique research firms design the research study, interpret
the data, and make a report to the client. When it comes to collecting the data, the research
firm has three basic choices. First, it can use the general population and one of the sampling
techniques that will be discussed in Chapter 8 of this text. The second option is to use one of the
many companies that specialize in providing samples and collecting data. Third, the research
agency can go to a sample aggregator, which is a firm that collects data through utilizing multiple sample companies. While some full-serv and boutique agencies will collect their own data
using the general population, most are moving away from doing their own data collection and
are using companies that specialize in sampling.
Research firms are shifting the sample selection and data collection to independent companies for two primary reasons: cost and time. It is more cost effective to use sampling firms that
already have sample panels (groups of individuals who have agreed in advance to participate
in research studies) or databases. It is also more time efficient. Both are important as client
companies push for faster, but lower cost, results.
A new player in the research industry is the sample aggregator. This is a company that
knows the sample and data collection industry and can work with either a client company or a
marketing research firm to expedite the data collection process and at the same time provide a
better quality, more valid sample. For instance, if a company wants to survey decision makers
related to the purchase of computer software in medium to large companies internationally,
a sample aggregator such as ReRez can identify various sample firms that have these types of
respondents. It is unlikely any one sample provider will have enough people within its panel or
database to fill the quota desired by the client. Thus, ReRez can contract with a number of different sampling firms throughout the countries specified by the client. Furthermore, extensive
experience with various sampling firms allows the sample aggregator to limit its selection to
only those firms that practice strong quality control practices. As you will learn later, the quality
CH APTER 1: THE ROLE OF M A RKETI NG RESEA RCH
15
of the sample—particularly when it is Internet based—is extremely important in assuring that
the information provided to the client is accurate and meaningful. Thus, an aggregator such as
ReRez can better ensure that the responses are valid and truly represent software decision makers.
Finally, through the firm’s expertise, the data can be collected accurately, and in a timely and
cost-effective manner.
Source: ReRez.
EMERGING TRENDS IN MARKETING RESEARCH
For many years marketing research relied on landline telephones and mail surveys to conduct
research. While other methods were used, these were the mainstay; then came the dawn of the
21st century. A number of significant changes occurred that have had and will continue to
have a profound effect on marketing research. Some of these changes are still occurring, and
the full-service marketing research firms have to adapt quickly or be left behind by smaller,
more nimble start-up research agencies that can see what is occurring. The major factors
influencing the changes are listed in Figure 1.10. While these factors are listed separately and
discussed separately, they are all interrelated, which has created a synergistic impact that is
having a profound effect on the way marketing research is being conducted now and how it
will be conducted in the future.11
Objective
1.5:
Discuss the
emerging
trends in
marketing
research.
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Figure 1.10 Factors Impacting
the Marketing
Research Industry
Telecommunications Technology
Advances in telecommunications, primarily social media
and smartphones, have impacted consumers all over the
world and created a significant change in the way individuals communicate with each other, with brands, and
• Telecommunications
with companies. Social media and smartphones have not
technology
• Economics
just changed the way people communicate, but have cre• Competition
ated cultural changes as well. Individuals now can communicate with one another through social media, such
as Facebook, or through Twitter, instead of talking in
person or even calling on the phone. An individual in Maine can communicate with someone
in California or even in Spain or Japan at a fraction of the cost that talking via phones would
incur. Smartphones allow these individuals to take the Internet with them, which means they
don’t even have to telephone someone to talk. They can use text messages, or access the Internet
and correspond through e-mail, Skype, or some type of social media platform.
This technology has changed the way brands and firms are influenced by word-of-mouth
communication. If consumers have a bad experience with a brand, they are not limited to
telling just a few of their friends and family members verbally. They can now use social media
and Twitter and be “heard” by thousands of consumers all over the world within hours and
many times within minutes. The potential for negative word-of-mouth can be devastating to a
brand. On a positive note, this same technology can be used to engage consumers and stimulate
positive endorsements.
The cultural shift in communications is now beginning to impact the marketing research
industry. Marketing researchers have for decades relied on surveys to gather information.
That approach is quickly shifting to social media. According to Joan Lewis, global consumer
Cell phones, especially smartphones, have changed the way people communicate and as
a result have impacted the way marketing research is conducted.
CH APTER 1: THE ROLE OF M A RKETI NG RESEA RCH
17
and marketing knowledge officer of Procter & Gamble, the marketing research industry
should get away from “believing a method, particularly survey research, will be the solution
to everything. We need to be methodology agnostic. Social-media listening isn’t only replacing
some survey research but also making it harder to do by changing consumer behavior and
expectations.” Taking this thought further, she says, “The more people see two-way engagement and being able to interact with people all over the world, I think the less they want to
be involved in structured research. If I have something to say to that company now, there are
lots of ways to say it.”12
As a result, companies are now monitoring social media. They are listening to what consumers are saying and responding. They see social media as a means of engaging consumers in
two-way communication. For marketing research firms, it is a new avenue for collecting data
and monitoring consumers’ conversations about brands. Smartphones now make the process
of collecting data and monitoring possible 24/7 regardless of where the consumer is located.
This makes data collection faster and easier as it is no longer necessary to reach consumers at
their home or place of business.
Economics
The financial crisis that hit the world in the beginning of the 21st century produced significant
changes in the marketing research industry. It was stressful for traditional marketing research
firms but an opportunity for start-up companies and traditional full-service agencies that
recognized changes were about to occur. Business as usual had vaporized. Tighter corporate
budgets meant finding firms that could produce more results for less money, more quickly than
research had been completed in the past. Faced with these demands from clients, marketing
research firms had two choices: (1) earn less revenue and less profit or (2) find a cheaper and
faster way of conducting marketing research. The solution: both!
Marketing research firms had to do what the rest of the business, private, and governmental sector experienced—tighten their costs and learn to operate on lower revenues and
lower profits, yet produce the same or higher levels of results. Unfortunately, as a result of this
experience, client companies realized they could get the same research done at lower costs and
that huge sums of money were not necessary to fund research studies, an attitude that prevails
today, despite the fact that the economy has recovered somewhat.
Research firms were forced to look for cheaper ways to conduct research. A solution was
to utilize online marketing research via e-mail, Internet survey websites, and online panels and
databases. The cost of conducting a survey online versus in person or by telephone is considerably cheaper and typically faster. Another advantage is that, with smartphones, consumers can
be reached anywhere, anytime. Of course, the survey methodology needs to be changed, but
research firms knew that could be done!
Competition
While tighter client budgets and online research techniques were prompted by changes
in the economic environment, competition sparked two additional changes in marketing
research—accelerated timelines and an increased focus on international research. Because
of global competition, firms are increasingly seeking to conduct research internationally.
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If a brand is distributed in 14 countries, then in most cases, research should be conducted
in all 14 countries. If a company is planning to expand into a new region of the world,
then research should be conducted in that region and within each country or province of
that region.
Coupled with the need to do research in multiple countries, research firms faced a compression of the timeline. Instead of having months to complete a marketing research study,
many companies now expect the entire project to be completed within 6–8 weeks.13 For this
to happen, the data collection component of the research needed to be streamlined. This time
compression for research studies contributed to an increased reliance on firms specializing in
sample provision, primarily with online samples. In almost all cases, online data collection can
occur considerably faster than other methods such as telephone, mail, or in person.
OVERVIEW OF THE TEXT
The textbook is divided into four sections. Section 1 introduces marketing research by providing an overview of marketing research and an explanation of the marketing research process.
Section 2 reviews the various types of marketing research, including secondary research, qualitative research, observation research, experimental research, and survey research. The third
section explains how data are obtained via sampling and measured using scales and survey
questions. Questionnaire design considerations are also addressed. Finally, Section 4 describes
how data are analyzed using fundamental and more advanced statistical methods, and how
they are reported.
Global Concerns
Because of the increase in global competition and due to the elimination of geographic barriers
and lower costs provided by the Internet, marketing research is now being conducted on a
broader scale that involves multiple countries. Compared to the past, fewer studies by major
firms are limited to the United States or just one country. Expanding research into additional
countries involves some unique challenges that will be highlighted in each of the chapters of
this text.
A primary challenge, of course, is the translation of surveys into various languages. English
is a very rich language, and sometimes there is not an equivalent word available in a foreign language, forcing the question to be reworded to ensure a similar meaning. But, more problematic
is the difference in cultures. What is appropriate to ask in one country may be deemed to be
inappropriate in another. For instance, interviewing females in Western countries is perfectly
acceptable. But, to do so in many Middle Eastern countries is not as acceptable unless a male
is present. Furthermore, in most cases it needs to be a female-female surveyor and respondent
relationship.
In some countries like the United States, getting individuals to participate in studies is difficult. That is one reason for the increased usage of online panels and databases. But, in some
of the developing countries, individuals are eager to participate in studies. It is novel and new
to them. Of course, this raises questions of how representative the samples are in both situations, in the United States where participation is difficult to obtain and in other countries where
individuals are eager to participate.
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STATISTICS REVIEW
Statistics are important in marketing research because any data that are obtained must be analyzed
and then converted to useful information. Most courses in marketing research have statistics as a
prerequisite. The ideal would be if students took the course in statistics immediately prior to the
course in marketing research. Seldom does this occur. It may have been one or even two years since
the statistics course was taken.
For this reason, rather than wait until the data analysis chapter of this text to discuss statistics,
a “Statistics Review” section has been incorporated into each chapter. The material presented in this
section should not be new. However, it may appear new depending upon when the statistics course
was taken and how well the concepts were learned. Reviewing these topics in smaller chunks on a
chapter-by-chapter basis will make it easier to relearn the statistical concepts than cramming the entire
content into one or two chapters near the end of the marketing research course.
DEALING WITH DATA
Data are central to marketing research. While some marketing research involves collection of information that is not in the form of data, most marketing research has some type of data. These data
must be examined, analyzed, and converted to information that is useful to managers for decision
making. Rather than wait until the end of this text to discuss data analysis, each chapter contains
a “Dealing With Data” section. The concepts presented and the exercises shown are designed to
allow students to apply the “Statistics Review” section to marketing research data. Exercises and
information in this section should not be new, but as with the “Statistics Review” they may appear
new depending on how long ago the statistics course was taken and how well the material was
learned. The majority of the data sets are provided in SPSS format. SPSS is an advanced statistical
analysis program used by many universities, large corporations, and marketing research firms. Limited
instructions for using SPSS will be incorporated into the “Dealing With Data” section. More detailed
step-by-step instructions for using SPSS can be found on the textbook’s companion website at www
.sagepub.com/clowess.
SUMMARY
Objective 1: Discuss the basic types and
functions of marketing research.
Marketing research studies can perform one or more of the following functions: exploratory,
descriptive, diagnostic, and predictive. Most commercial marketing research studies are applied
research, while basic marketing research is typically conducted in university settings. The philosophy of science and scientific method guides the marketing research process.
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Objective 2: Identify marketing research studies that
can be used in making marketing decisions.
Segmentation and targeting decisions often rest on data obtained via benefit and lifestyle
studies and target market analysis. Product testing studies and test markets provide essential
information as part of the new product development process. Existing brands benefit from
market analysis and competitive analysis studies, which allow decision makers to understand
changes in the dynamic marketplace and how their brands will be affected. Marketing communication decisions are enhanced by data stemming from advertising effectiveness research
and media studies. Pricing studies evaluate the impact that pricing changes have on demand,
and studies of sales potential and sales forecasting efforts are used by many departments
within the firm.
Objective 3: Discuss how marketing research
has evolved since 1879.
The first documented instance of marketing research occurred in 1879 with the basic foundation of marketing research being developed during the first 30 years of the 20th century.
The early years of marketing research focused on methods of sampling, collecting data, and
analytical techniques. The primary goal of marketing research was to measure marketing phenomena and consumer characteristics. During the “golden age of consumer research” (1970s
and 1980s) marketing research techniques become more scientific, and computing power
made collecting and analyzing data faster, easier, cheaper, and more accurate. Marketing
research became the support, the rationale for choosing particular marketing strategies and
marketing tactics. During the late 1990s and early 2000s a cultural shift resulted in researchers
being asked to provide insights into what the data meant and to assist in providing insights
into marketing situations. The current stage of marketing research is “the consultative stage.”
Now, marketing researchers are being asked to assist in developing marketing strategy.
Objective 4: Describe the marketing research
industry as it exists today.
Client firms conduct research in-house or hire full-serv or boutique marketing research firms
to provide information needed for decision making. Data collection can be undertaken with
the general population, or a firm may be hired to provide a sample from its panel or database.
Research agencies are increasingly relying upon sample aggregators to obtain more representative, reliable samples.
Objective 5: Discuss the emerging trends
in marketing research.
Advances in telecommunications technology have changed the ways that consumers interact
with each other, companies, and brands. Marketing researchers now monitor social media as
a result. Economic constraints have tightened client budgets, while competitive pressures have
CH APTER 1: THE ROLE OF M A RKETI NG RESEA RCH
21
compressed deadlines and forced research firms to embrace the Internet as a faster, more costeffective method of data collection. Furthermore, the globalization of business has resulted in
a greater need for multicountry marketing research efforts.
GLOSSARY OF KEY TERMS
Advertising effectiveness research: research that examines the effectiveness of advertising and marketing communications
Applied marketing research: research designed to solve a specific marketing problem, to investigate a
particular marketing phenomenon, or to understand the results of previous decisions
Basic marketing research: research conducted to advance marketing knowledge in general or to verify
a proposed marketing theory or concept
Benefit and lifestyle studies: research that examines the similarities and differences consumers seek in
products and how these benefits fit into particular lifestyles
Competitive analysis studies: research that examines competitors within a market industry
Descriptive function: gathering and presentation of information about a marketing phenomena
or situation
Diagnostic function: data analysis techniques used to investigate relationships and phenomena within
data that have been gathered through marketing research
Exploratory function: occurs when researchers have a limited understanding or no knowledge at all
about a marketing situation or a particular outcome
Market analysis study: research that examines the current marketing situation faced by a company or
brand and then identifies potential markets
Marketing mix: specific combination of product, pricing, promotional, and distribution decisions made
for the purpose of targeting a particular group of consumers
Marketing research: systematic gathering and analysis of marketing-related data to produce information that can be used in decision making
Media studies: research that identifies the most appropriate media to reach a specific target market
Predictive function: marketing research used to predict or forecast the results of a marketing decision
or consumer action
Pricing studies: research that evaluates the elasticity of a brand’s price and the impact pricing changes
will have on demand
Product testing studies: research that identifies how a product fits the needs of consumers and what
changes need to be made to the product to make it more attractive
Sales forecasts: research that estimates future sales for a company or brand
Sales potential studies: research that estimates potential sales for a product industry
Sample aggregator: firm that collects data through utilizing multiple sample companies
Site selection: research study to help retailers determine the best locations for retail outlets
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Target market analysis: research that provides basic demographic, psychographic, and behavioral
information about specific target markets
Test markets: research that provides information on how well a new product or product modification
will do in a limited market before a national or international launch
CRITICAL THINKING EXERCISES
1. Have you ever participated in a marketing research study? If so, describe how the research was conducted. Was the study exploratory, descriptive, diagnostic, or predictive in nature? Justify your answer.
2. What impact do you think social media and smartphones and other forms of emerging technology
will have on the way companies conduct marketing research in the future?
3. Think about the place where you currently work, or a place you have worked in the past. Describe
how marketing research could be used to gather information that would be beneficial to the business
or organization.
4. Interview a professor at your school other than your instructor. Ask the professor about the types
of research he or she conducts. Is it applied or basic research? Show the individual the diagram in
Figure 1.5. Ask if that process applies to his or her research process.
5. A research study investigated the factors that influence and determine a firm’s reputation. The study
included 150 firms from a variety of industries, and several factors that influence or determine firm
reputation under various conditions were identified. Is this an example of applied research or basic
research?
6. Find an article in each of the following journals: Services Marketing Quarterly, Journal of Services
Marketing, Business Communication Quarterly, Journal of Health Care Marketing, and Journal of
Advertising. Identify whether the research is applied or basic in each article. For applied research
studies, briefly describe how the data were collected. If you classified an article as basic research,
explain the theory or concept that was proposed or tested.
7. A student bookstore conducted a series of group interviews with several groups of students in order
to try to understand why textbook sales were declining, despite the fact that enrollment had increased
during the same semester. Which function of research does this illustrate?
8. Give an example of how a health club, fashion retailer, or manufacturer of fishing boats might
conduct four separate studies that exemplify each of the types of research: exploratory, descriptive,
diagnostic, and predictive.
9. Have social media and smartphones changed culture? Explain. Have they changed the way humans
communicate with each other? Explain.
10. Do you use Twitter? Why do you use it? If so, how has it impacted your life? Have you ever used
Twitter to communicate with a company or brand? What happened as a result? If you have not used
Twitter, why not?
11. Are you a Facebook fan of one or more brands? If so, which ones? Why did you join? If you have
stopped being a fan of a brand, which of the reasons shown in Figure 1.1 explain why? Did any other
factors influence you to quit being a fan of a brand?
CH A PTER 1: THE ROLE OF M A RKETI NG RESEA RCH
23
12. Interview five individuals of different ages ranging from young teenagers to a senior. Ask them
about their use of social media, cell phones, and smartphones. Write a short report contrasting the
differences and how age impacts the use of modern technology.
CONTINUING CASE STUDY: LAKESIDE GRILL
As part of their annual service project, five students of the American Marketing
Association student chapter have agreed to conduct marketing research for a local
business—Lakeside Grill.
This “Lakeside Grill (Continuing Case Study)” section provides a summary of how
these students used the information in each chapter for their research project. Because it is a
continuous project that flows throughout the entire text, it will be possible to see a research
project from beginning to end. However, being students, the team does not always make the
most optimal decisions. Following a description of their actions, questions will encourage
a critique of the decisions made by the student team. This section allows a glimpse of a
marketing research project conducted by a team of students from inception to completion.
Critique Questions:
1. How important is it for students to conduct a real-world project while taking a course in
marketing research? What are the pros and cons of doing this?
2. What could a local business realistically expect from a student team conducting a research
project?
3. How much guidance or direction should a faculty member or an instructor of the course
provide for the student team? Explain.
4. If you were part of a student team conducting research for a local business or nonprofit,
what type of business or nonprofit organization would provide the best learning experience? Why?
5. Is it fair to the local marketing research firms for a business to use a student team to conduct research rather than hiring the marketing research firm? Justify your answer.
MARKETING RESEARCH PORTFOLIO
The “Marketing Research Portfolio” mini-cases emphasize “learning by doing,” and provide
an excellent method by which students can practice and apply the skills learned in each
chapter. Beginning with Chapter 2, each mini-case will present relevant client background
information, and then list specific questions to be answered or tasks to be performed. Although
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some chapters use the same client and project, most chapters (with the exception of 13
and 14) can be treated as independent assignments, suitable for either individual or group work.
The marketing research portfolio cases and supplemental files can be found online at www
.sagepub.com/clowess.
STUDENT STUDY SITE
Visit the Student Study Site at www.sagepub.com/clowess to access the following additional
materials:
•
•
•
•
eFlashcards
Web Quizzes
SAGE Journal Articles
Web Resources
CHAPTER
2
The Marketing Research Process
LEARNING OBJECTIVES
After reading this chapter, you should be able to
1. Compare and contrast the three types of research design.
2. Explain the marketing research process.
3. Describe the components of a request for proposal (RFP) and a research proposal.
4. Provide an overview of qualitative and quantitative research.
5. Recite the ethical considerations in designing research studies.
INTRODUCTION
In recent years, marketing managers have become concerned that the millennial generation (individuals born between 1981 and 2000) is influenced less by advertising than older generations.
Often characterized as “stimulation junkies,” members of this generation are the first to grow up
with computers, have known the Internet and cell phones all of their lives, and are used to technology. The group consists of 79 million consumers and has an estimated annual purchasing power
of $178 billion. Reaching these consumers has become a high priority of marketing managers,
especially for products geared to the millennial generation.
A major goal of marketing research is to provide information that managers can use to make
better decisions. In this particular case, research can be used to gain a better understanding of
how advertising influences the millennial generation and what can be done to increase advertising’s effectiveness. A recent study examined the recall rate of four generations from millennials to
seniors. Results are shown in Figure 2.1. An examination of the graph shows that millennials have
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Figure 2.1 Ad Recall for Four Generations
60%
54%
50%
Percent of Sample
54%
50%
43%
40%
30%
24%
23%
21%
20%
18%
10%
0%
Millennials
Generation X
Baby Boomers
Seniors
Generations
Immediate recall
Delayed recall
Source: Author-created with data from Laurie Sullivan, “Millennials Remain Difficult to Reach,” Online Media Daily, January 24,
2012, www.mediapost.com/publications/article/166427 (accessed June 15, 2012).
the lowest immediate recall rate of any generation. They are not paying attention to ads. They
may be involved in multitasking, or it could just be that they do not care about ads. However, their
delayed recall is slightly higher than that of the other generations.1
While the information in Figure 2.1 is good and of interest, it just verifies what marketing
managers already suspected. It does not provide any information that can be used to increase
the effectiveness of advertising to the millennial generation. If the study would have ended at
that point, then the dollars spent and the time involved in conducting the study would have
been seen as a waste. But, the study explored deeper into several facets of advertising among
the generations. Based on additional results, the researchers who conducted the study suggested
that to reach the millennials companies should “show the product longer in ads, make the brand
name more visible, and make more mentions [of the product and the brand] throughout the
ad campaign.”2
This chapter explores the different types of research and the research process that can be used
to obtain information similar to what has just been discussed. Following a detailed research process
allowed the researchers to go beyond collecting data to providing insights that can be utilized by
individuals advertising to the millennial generation. The chapter discusses the two primary types
of research: qualitative and quantitative. Both were used in the previously cited study. Finally, the
chapter concludes with a discussion of ethics and where unethical conduct may creep into marketing research studies.
CH A PTER 2: THE M A RKETI NG RESEA RCH PROCESS
27
TYPES OF RESEARCH DESIGN
Learning
As has already been stated, the purpose of marketing research is to help managers make better decisions. While it is impossible to remove all uncertainty, information can help managers
understand the problem being faced and the possible ramifications of decision options. For
example, many companies are struggling with what to do about providing online reviews of
products. Recent research found that 50% of online shoppers conduct research online for at
least half of their purchases. Further, 64% of online shoppers said they read online reviews prior
to making product decisions.3 Based on these findings, it would appear that companies should
offer some type of online review on their websites. But, what type of reviews? And, if reviews are
provided, how and where should they be posted? An even more pertinent question is revealed
by examining who responded to this particular survey. The study stated online shoppers were
interviewed, which begs the question “Who were the online shoppers, and are they different
from consumers who shop primarily in retail stores?”
While research can provide information, managers must be able to interpret that information and relate it to the problem they are facing and the decisions that need to be made. This
process requires an understanding of the basic types of research design, shown in Figure 2.2.
Exploratory Research
As the name implies, exploratory research involves a preliminary examination of a problem
or situation to identify parameters to be studied further and in some cases to even define the
problem itself. Researchers will often launch exploratory research when the problem they are
facing is not clear. They have symptoms, such as declining sales or a decrease in market share,
but do not fully understand what is causing the sales or market share to decline. The goal of
exploratory research in such cases is to help researchers understand the situation, the problem
being faced, and perhaps even some possible solutions. Exploratory research is not definitive. It
is designed to be used by managers not for making decisions, but rather to guide the development of future research projects or to better understand a situation.
Exploratory research is often used in the first stage of a more comprehensive research study.
In addition to shedding light on the problem, exploratory research can provide clues as to the
variables that should be studied. Additional types of research can then be used to determine
the relationships among variables and any cause-and-effect relationships that may exist.
Exploratory research can provide information that can be used to develop hypotheses.
A research hypothesis states an expected research outcome relevant to one or more variables
that seems reasonable in light of existing information. In simpler terms, research hypotheses
represent educated guesses with respect to what the researcher expects to find after analyzing the
Figure 2.2 Types of Research Design
Exploratory
Research
Descriptive
Research
Causal
Research
Objective 1.1:
Compare and
contrast the
three types of
research design.
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research data. For example, if a marketing researcher wished to explore the impact of consumers’
online shopping behavior in greater detail, he or she might develop the following hypothesis
after reading the article about how consumers use online reviews, ratings, and searches.
Hypothesis: When researching branded products online prior to purchasing, 50% or more of consumers will start with a search engine.
Methods of exploratory research include secondary research, focus groups, in-depth interviews, case studies, and even pilot studies. With the widespread availability of the Internet and
easy access to large article databases, conducting secondary research can be done rather quickly
and inexpensively. After all, someone else may have faced a similar problem. Articles relating
to the situation may provide useful information and understanding, and possibly help lead to
hypothesis development. Internally, the firm can review previous research studies that may
shed some light on the issue at hand.
Focus groups and in-depth interviews will be discussed in more detail in a later chapter,
but both methods allow researchers to gather information from individuals. With the focus
group, researchers talk with a small group of individuals about a specific topic, exploring their
thoughts and ideas in detail. With in-depth interviews, the researcher is talking to individuals
one-on-one to explore a particular topic in greater depth or to better understand the thinking
behind an individual’s actions or behaviors. Both forms of research can provide rich, detailed
information and consumer insights that can help researchers to better understand important
aspects of a current situation.
Occasionally, a researcher will launch a pilot study, which is an abbreviated study with a
limited number of respondents designed to provide information to the researcher in developing a larger, more definitive study. A researcher may not know exactly what questions to ask.
A pilot study can be helpful, especially by asking open-ended questions. Suppose a researcher
wants to study the impact of various factors on the consumer decision process that is used in
determining whether online reviews will be consulted before purchasing a product. A pilot study
might be used and respondents asked to identify what factors influence whether they conduct an
online search for information prior to making a purchase decision. Pilot studies are also useful
in testing aspects of research methodology, such as sampling and data collection procedures.
Descriptive Research
As the name implies, descriptive research answers the questions who, what, when, where, and
how in describing the characteristics of consumers, brands, and other marketing phenomena.
In contrast to exploratory research, marketers who use descriptive research already have a
good understanding of the marketing problem or situation. They are just seeking additional
information in order to make a more informed decision.
Consider the example of descriptive research findings presented in …