Chapter 1

Introduction and Early Phases of Marketing Research

Redefining Marketing Research

The American Marketing Association (AMA) redefined Marketing Research as:

The function that links the consumer, the customer, and public to the marketer through INFORMATION

Redefining Marketing Research

Used to identify and define market opportunities and problems

Information

Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process

Definition of Marketing Research

Marketing research is the systematic and objective

identification collection analysis dissemination and use of information

For the purpose of improving decision making related to the

identification and solution of problems and opportunities in marketing

Market Research
Specifies the information necessary to address these issues Manages and implements the data collection process Analyzes the results Communicates the findings and their implications Helps managers use this information to make decisions

Classification of Marketing Research

Problem-Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem-Solving Research Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

Marketing Research Process

Step 1 : Problem Definition Step 2 : Development of an Approach to the Problem Step 3 : Research Design Formulation Step 4 : Fieldwork or Data Collection Step 5 : Data Preparation and Analysis Step 6 : Report Preparation and Presentation

Marketing Research Process

Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report

The Role of Marketing Research

Fig. 1.2
Customer Groups Consumers Employees Shareholders Suppliers

Controllable Marketing Variables Product Pricing Promotion Distribution

Assessing Information Needs

Uncontrollable Environmental Factors Economy Technology Laws & Regulations Social & Cultural Factors Political Factors

Marketing Research

Providing Information

Marketing Decision Making

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control

Marketing Research Suppliers & Services

INTERNAL

RESEARCH SUPPLIERS

EXTERNAL

FULL SERVICE
Syndicat e Services Standardize d Services Internet Service s Customize d Services

LIMITED SERVICE
Field Service s Focus Groups and Qualitative Services Other Services Technical and Analytical Services

Selected Marketing Research Career Descriptions

Fig. 1.5 Vice President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department. Research Director: Also a senior position. The research director has the general responsibility for the development and execution of all the marketing research projects. Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members. (Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects. Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis.

Selected Marketing Research Career Descriptions

Fig. 1.5 cont. Research Director Vice President of Marketing Research Part of companys top management team Directs companys entire market research operation Sets the goals & objectives of the marketing research department Assistant Director of Research Administrative assistant to director Supervises research staff members Senior Project Manager Responsible for design, implementation, & research projects Also part of senior management Heads the development and execution of all research projects

Selected Marketing Research Career Descriptions

Fig. 1.5 cont. Senior Analyst Participates in the development of projects Carries out execution of assigned projects Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collection Prepares final report Analyst Handles details in execution of project Designs & pretests questionnaires Conducts preliminary analysis of data Junior Analyst Secondary data analysis Edits and codes questionnaires Conducts preliminary analysis of data Statistician/Data Processing Serves as expert on theory and application on statistical techniques Oversees experimental design, data processing, and analysis Fieldwork Director Handles selection, training, supervision, and evaluation of interviewers and field workers

Marketing Research Suppliers & Services

Internal suppliers External suppliers

Full-service suppliers
Syndicated services Standardized services Customized services Internet services

Limited-service suppliers
Field services Focus groups and qualitative services Technical and analytical services Other services

Careers in Marketing Research

Career opportunities are available with marketing research firms (e.g., AC Nielsen, Burke) Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, the Federal Trade Commission, United States Census Bureau) Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson) Positions: VP of marketing research, research director/assistant director, project manager, field work director, statistician/data processing specialist, senior/junior analyst, and supervisor

Chapter Two

Defining the Marketing Research Problem and Developing an Approach

Chain Restaurant Study

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

Chain Restaurant Study

When we met, he presented me with a copy of the questionnaire and asked how he should analyze the data. My first question to him was, What is the problem being addressed?

Chain Restaurant Study

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

Rather, the goal of data analysis is to PROVIDE INFORMATION RELATED TO THE PROBLEM COMPONENTS.

Chain Restaurant Study

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

The Problem Definition Process

Fig. 2.1
Discussion with Decision Maker(s)

Tasks Involved

Interviews with Experts

Secondary Data Analysis

Qualitative Research

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem Marketing Research Problem

Step II: Approach to the Problem

Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed

Objective/ Theoretical Foundations

Research Questions

Hypotheses

Step III: Research Design

Tasks Involved in Problem Definition

Discussions with Decision Makers Interviews with Industry Experts Secondary Data Analysis Qualitative Research

The Problem Audit

The problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature. 1. The events that led to the decision that action is needed, or the history of the problem 2. The alternative courses of action available to the DM 3. The criteria that will be used to evaluate the courses of action alternative

4. The potential actions that are likely to be suggested based on the research findings 5. The information that is needed to answer the DM's questions 6. The manner in which the DM will use each item of information in making the decision 7. The corporate culture as it relates to decision making

The Seven Cs of Interaction

The interaction between the DM and the researcher should be characterized by the seven Cs:
1. Communication 2. Cooperation 3. Confidence 4. Candor 5. Closeness 6. Continuity 7. Creativity

Factors to be Considered in the Environmental Context of the Problem

PAST INFORMATION AND FORECASTS RESOURCES AND CONSTRAINTS OBJECTIVES BUYER BEHAVIOR LEGAL ENVIRONMENT ECONOMIC ENVIRONMENT MARKETING AND TECHNOLOGICAL SKILLS

Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem Should a new product be To determine consumer preferences

introduced? and purchase intentions for the proposed new product Should the advertising To determine the effectiveness campaign be changed? of the current advertising campaign Should the price of the To determine the price elasticity brand be increased? of demand and the impact on sales of price changes

and profits of various levels

Proper Definition of the Research Problem

Marketing Research Problem Broad Statement

Specific Components

Department Store Project

Problem Definition
In the department store project, the marketing research problem is to determine the relative strengths and weaknesses of Sears, vis-vis other major competitors, with respect to factors that influence store patronage. Specifically, research should provide information on the following questions.
1. What criteria do households use when selecting department stores? 2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in question 1? 3. Which stores are patronized when shopping for specific product categories? 4. What is the market share of Sears and its competitors for specific product categories? 5. What is the demographic and psychological profile of the customers of Sears? Does it differ from the profile of customers of competing stores?

Components of an Approach

Objective/Theoretical Foundations Analytical Model Research Questions Hypotheses Specification of the Information Needed

The Role of Theory in Applied Marketing Research

Research Task 1. Conceptualizing and identifying key variables 2. Operationalizing key variables 3. Selecting a research design 4. Selecting a sample 5. Analyzing and interpreting data 6. Integrating findings Role of Theory Provides a conceptual foundation and understanding of the basic processes underlying the problem situation. These processes will suggest key dependent and independent variables. Theoretical constructs (variables) can suggest independent and dependent variables naturally occurring in the real world. Causal or associative relationships suggested by the theory may indicate whether a causal or descriptive design should be adopted. The theoretical framework may be useful in defining the population and suggesting variables for qualifying respondents, imposing quotas, or stratifying the population (see Chapter 11). The theoretical framework (and the models, research questions and hypotheses based on it) guide the selection of a data analysis strategy and the interpretation of results (see Chapter 14). The findings obtained in the research project can be interpreted in the light of previous research and integrated with the existing body of knowledge.

Models
An analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. In verbal models, the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory.

Graphical Models
Graphical models are visual. They are used to isolate variables and to suggest directions of relationships but are not designed to provide numerical results.
Awareness

Understanding: Evaluation

Preference

Patronage

Mathematical Models
Mathematical models explicitly specify the

relationships among variables, usually in equation form.

y =
Where

i =1

a x
i

y = degree of preference

a ,a
0

= model parameters to be estimated statistically

Development of Research Questions and Hypotheses

Components of the Marketing Research Problem Objective/ Theoretical Framework Analytica l Model

Research Questions

Hypotheses

Research Questions and Hypotheses

Research questions (RQs) are refined statements

of the specific components of the problem. A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.

At United, Food Is Uniting the Airline with Travelers

United Airlines, as other major airlines, had to deal with passenger loyalty (management decision problem: how to attract more and more loyal passengers). The broad marketing research problem was to identify the factors that influence loyalty of airline travelers.

At United, Food Is Uniting the Airline with Travelers

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

At United, Food Is Uniting the Airline with Travelers

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

At United, Food Is Uniting the Airline with Travelers

Secondary data, like the J. D Power & Associates' survey on "current and future trends in the airline food industry," indicated that "food service is a major contributor to customers loyalty." This survey also emphasized the importance of food brands.

At United, Food Is Uniting the Airline with Travelers

The airline's Marketrak survey told United Airlines that "customers wanted more varied and up-to-date food. The following research questions and hypotheses may be posed. RQ1 How important is food for airline customers? H1: Food is an important factor for airline travelers. H2: Travelers value branded food. H3: Travelers prefer larger food portions, but with consistent quality. H4: Travelers prefer exotic food.

At United, Food Is Uniting the Airline with Travelers

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

At United, Food Is Uniting the Airline with Travelers

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

Chapter Three

Research Design

Research Design: Definition

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems.

Components of a Research Design

Define the information needed (Chapter 2) Design the exploratory, descriptive, and/or causal phases of the research (Chapters 3 - 7) Specify the measurement and scaling procedures (Chapters 8 and 9) Construct and pretest a questionnaire (interviewing form) or an appropriate form for data collection (Chapter 10) Specify the sampling process and sample size (Chapters 11 and 12) Develop a plan of data analysis (Chapter 14)

A Classification of Marketing Research Designs

Fig. 3.1 Research Design

Exploratory Research Design Descriptive Research

Conclusive Research Design

Causal

Research

Cross-Sectional Design

Longitudinal Design

Single CrossSectional Design

Multiple CrossSectional Design

Exploratory & Conclusive Research Differences

Table 3.1 Objective: Characteristics:

Exploratory To provide insights and understanding Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and nonrepresentative. Analysis of primary data is qualitative Tentative Generally followed by further exploratory or conclusive research

Conclusive To test specific hypotheses and examine relationships Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative

Findings/ Results: Outcome:

Conclusive Findings used as input into decision making

A Comparison of Basic Research Designs

Table 3.2 Objective: Exploratory Discovery of ideas and insights Flexible, versatile Descriptive Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Causal Determine cause and effect relationships Manipulation of independent variables, effect on dependent variables Control mediating variables Secondary data: quantitative analysis Experiments Surveys Panels Observation and other data

Characteristics:

Often the front end of total research design Expert surveys Pilot surveys Case studies Secondary data: qualitative analysis qualitative research

Methods:

Uses of Exploratory Research

Formulate a problem or define a problem more precisely Identify alternative courses of action Develop hypotheses Isolate key variables and relationships for further examination Gain insights for developing an approach to the problem Establish priorities for further research

Methods of Exploratory Research

Survey of experts (discussed in Chapter 2) Pilot surveys (discussed in Chapter 2) Secondary data analyzed in a qualitative way (discussed in Chapter 4) Qualitative research (discussed in Chapter 5)

Use of Descriptive Research

To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas To estimate the percentage of units in a specified population exhibiting a certain behavior To determine the perceptions of product characteristics To determine the degree to which marketing variables are associated To make specific predictions

Methods of Descriptive Research

Secondary data analyzed in a quantitative, as opposed to a qualitative, manner (discussed in Chapter 4) Surveys (Chapter 6) Panels (Chapters 4 and 6) Observational and other data (Chapter 6)

Cross-Sectional Designs

Involve the collection of information from any given sample of population elements only once In single cross-sectional designs, there is only one sample of respondents and information is obtained from this sample only once. In multiple cross-sectional designs, there are two or more samples of respondents, and information from each sample is obtained only once. Often, information from different samples is obtained at different times. Cohort analysis consists of a series of surveys conducted at appropriate time intervals, where the cohort serves as the basic unit of analysis. A cohort is a group of respondents who experience the same event within the same time interval.

Consumption of Various Soft Drinks by Various Age Cohorts

Table 3.3

Percentage consuming on a typical day Age 8-19 20-29 30-39 40-49 50+ 1950 52.9 45.2 33.9 23.2 18.1 1960 1969 1979 62.6 60.7 46.6 40.8 28.8 C1 C1: cohort born prior to 1900 C2: cohort born 1901-10 C3: cohort born 1911-20 C4: cohort born 1921-30 73.2 81.0 C8 76.0 75.8 C7 67.7 71.4 C6 58.6 67.8 C5 50.0 51.9 C4 C2 C3 C5: cohort born 1931-40 C6: cohort born 1940-49 C7: cohort born 1950-59 C8: cohort born 1960-69

Longitudinal Designs

A fixed sample (or samples) of population elements is measured repeatedly on the same variables A longitudinal design differs from a crosssectional design in that the sample or samples remain the same over time

Cross-Sectional vs. Longitudinal

CrossSectiona l Design

Sample Surveye d at T1

Sample Longitudina Surveyed l Design at T1

Same Sample also Surveyed at T2 T2

Time

T1

Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs

Table 3.4

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

Cross-Sectional Longitudinal Design Design + + + + + -

Note: A + indicates a relative advantage over the other design, whereas a - indicates a relative disadvantage.

Cross-Sectional Data May Not Show Change

Table 3.5

Brand Purchased

Time Period Period 1 Survey Period 2 Survey

Brand A Brand B Brand C Total

200 300 500 1000

200 300 500 1000

Longitudinal Data May Show Substantial Change

Table 3.6

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

Brand Purchased in Period 2 Brand A Brand B Brand C Total 100 25 75 200 50 100 150 300 50 175 275 500 200 300 500 1000

Uses of Causal Research

To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon To determine the nature of the relationship between the causal variables and the effect to be predicted METHOD: Experiments

Alternative Research Designs

(a)
Exploratory Research Secondary Data Analysis Focus Groups Conclusive Research Descriptive/Causal

(b)

Conclusive Research Descriptive/Causal

(c)

Conclusive Research Descriptive/Causal

Exploratory Research Secondary Data Analysis Focus Groups

Potential Sources of Error in Research Designs

Fig. 3.2 Total Error Non-sampling Error Response Error Researcher Error
Surrogate Information Error Measurement Error Population Definition Error Sampling Frame Error Data Analysis Error

Random Sampling Error

Non-response Error Respondent Error

Inability Error Unwillingness Error

Interviewer Error
Respondent Selection Error Questioning Error Recording Error Cheating Error

Errors in Marketing Research

The total error is the variation between the true mean value in the population of the variable of interest and the observed mean value obtained in the marketing research project. Random sampling error is the variation between the true mean value for the population and the true mean value for the original sample. Non-sampling errors can be attributed to sources other than sampling, and they may be random or nonrandom: including errors in problem definition, approach, scales, questionnaire design, interviewing methods, and data preparation and analysis. Non-sampling errors consist of nonresponse errors and response errors.

Errors in Marketing Research

Non-response error arises when some of the respondents included in the sample do not respond. Response error arises when respondents give inaccurate answers or their answers are misrecorded or misanalyzed.

Citicorp Banks on Exploratory, Descriptive, and Causal Research

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

Citicorp Banks on Exploratory, Descriptive, and Causal Research

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

Citicorp Banks on Exploratory, Descriptive, and Causal Research

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

Citicorp Banks on Exploratory, Descriptive, and Causal Research

3) The next stage of research was brainstorming. This involved the formation of many different financial packages aimed at the target market. In this case, a total of 10 ideas were generated.

Citicorp Banks on Exploratory, Descriptive, and Causal Research

4) The feasibility of the 10 ideas generated in step 3 was then tested. The ideas were tested on the basis of whether they were possible in relation to the business. The following list of questions was used as a series of hurdles that the ideas had to pass to continue on to the next step. Can the idea be explained in a manner that the target market will easily understand? Does the idea fit into the overall strategy of Citicorp?

Citicorp Banks on Exploratory, Descriptive, and Causal Research

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

Citicorp Banks on Exploratory, Descriptive, and Causal Research

5) A creative work-plan was then generated. This plan was to emphasize the competitive advantage of the proposed product as well as better delineate the specific features of the product. 6) The previous exploratory research was now followed up with descriptive research in the form of mall intercept surveys of people in the target market range. The survey showed that the list of special features was too long and it was decided to drop the features more commonly offered by competitors.

Citicorp Banks on Exploratory, Descriptive, and Causal Research

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

Marketing Research Proposal

Executive Summary Background Problem Definition/Objectives of the Research Approach to the Problem Research Design Fieldwork/Data Collection Data Analysis Reporting Cost and Time Appendices

The Greenfield of Online Research

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

The Greenfield of Online Research

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

Chapter Four
Exploratory Research Design: Secondary Data

Primary Vs. Secondary Data

Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process (Chapter 1). Secondary data are data that have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.

Table 4.1

A Comparison of Primary & Secondary Data

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems Collection process Very involved Rapid & easy Collection cost High Relatively low Collection time Long Short

Uses of Secondary Data

Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (for example, by identifying the key variables) Answer certain research questions and test some hypotheses Interpret primary data more insightfully

A Classification of Secondary Data

Fig. 4.1

Secondary Data

Internal

External

Ready to Use

Requires Further Processin g

Published Materials

Computerized Databases

Syndicated Services

Type of Individual/Household Level Data Available from Syndicated Firms

I. Demographic Data - Identification (name, address, email, - Sex - Marital status - Names of family members - Age (including ages of family members) - Income - Occupation - Number of children present - Home ownership - Length of residence - Number and make of cars owned telephone)

Type of Individual/Household Level Data Available from Syndicated Firms

II. Psychographic Lifestyle Data - Interest in golf - Interest in snow skiing - Interest in book reading - Interest in running - Interest in bicycling - Interest in pets - Interest in fishing - Interest in electronics - Interest in cable television There are also firms such as Dun & Bradstreet and American Business Information which collect demographic data on businesses.

A Classification of Published Secondary Sources

Fig. 4.2 Published Secondary Data

General Business Sources

Government Sources

Guides

Directories

Indexes

Statistical Data

Census Data

Other Government Publications

A Classification of Computerized Databases

Fig. 4.3 Computerized Databases

Online

Internet

Off-Line

Bibliographic Databases

Numeric Databases

Full-Text Databases

Directory Databases

SpecialPurpose Databases

Guides

Published External Secondary Sources

An excellent source of standard or recurring information Helpful in identifying other important sources of directories, trade associations, and trade publications One of the first sources a researcher should consult Directories Helpful for identifying individuals or organizations that collect specific data Examples: Consultants and Consulting Organizations Directory, Encyclopedia of Associations, FINDEX: The Directory of Market Research Reports, Studies and Surveys, and Research Services Directory Indices Helpful in locating information on a particular topic in several different publications

Classification of Computerized Databases

Bibliographic databases are composed of citations to articles Numeric databases contain numerical and statistical information Full-text databases contain the complete text of the source documents comprising the database Directory databases provide information on individuals, organizations, and services Special-purpose databases provide specialized information

Syndicated Services
Syndicated services are companies that collect and sell common pools of data of known commercial value designed to serve a number of clients Syndicated sources can be classified based on the unit of measurement (households/consumers or institutions) Household/consumer data may be obtained from surveys, diary panels, or electronic scanner services Institutional data may be obtained from retailers, wholesalers, or industrial firms

A Classification of Syndicated Services

Fig. 4.4 Unit of Measurement

Households/ Consumers

Institutions

Syndicated Services: Consumers

Fig. 4.4 cont. Households / Consumers

Panels Electronic scanner services Scanner Panels with Cable TV

Purchase Surveys

Media Volume Scanner Tracking Data Panels Advertising Evaluation

Psychographic General & Lifestyles

Syndicated Services: Institutions

Fig. 4.4 cont. Institutions

Retailers

Wholesalers

Industrial firms

Audits

Direct Inquiries

Clipping Services

Corporate Reports

Overview of Syndicated Services

Table 4.3
Type
Surveys

Characteristics Advantages

Disadvantages Uses
Market segmentation, advertising theme selection and advertising effectiveness Forecasting sales, market share and trends; establishing consumer profiles, brand loyalty and switching; evaluating test markets, advertising, and distribution Establishing advertising rates; selecting media program or air time; establishing viewer profiles

Surveys conducted at Most flexible way of Interviewer errors; regular intervals obtaining data; respondent errors information on underlying motives

Purchase Panels

Households provide specific information regularly over an extended period of time; respondent asked to record specific behaviors as they occur Electronic devices automatically recording behavior, supplemented by a diary

Recorded purchase behavior can be linked to the demographic/ psychographic characteristics

Lack of representativeness; response bias; maturation

Media Panels

Same as purchase panel

Same as purchase panel

Overview of Syndicated Services

Table 4.3 cont.
Scanner Diary Panels Scanner panels of with Cable TV households that subscribe to cable TV Data reflect actual Data may not be purchases; sample representative; quality control; ability to link of data limited panel data to household characteristics Relatively precise information at the retail and wholesale levels Coverage may be incomplete; matching of data on competitive activity may be difficult Promotional mix analyses; copy testing; new product testing; positioning

Audit services

Verification of product movement by examining physical records or performing inventory analysis

Industrial Product Syndicated Services

Data banks on industrial establishments created through direct inquiries of companies, clipping services, and corporate reports

Important source of information on industrial firms, particularly useful in initial phases of the projects

Data are lacking in terms of content, quantity, and quality

Measurement of consumer sales and market share; competitive activity; analyzing distribution patterns; tracking of new products Determining market potential by geographic area; defining sales territories; allocating advertising budget

Single-Source Data
Single-source data provide integrated information on household variables, including media consumption and purchases, and marketing variables, such as product sales, price, advertising, promotion, and instore marketing effort Recruit a test panel of households and meter each home's TV sets Survey households periodically on what they read Grocery purchases are tracked by UPC scanners Track retail data, such as sales, advertising, and promotion

A Classification of International Sources

International Secondary Data

Domestic Organizations in the United States

International Organizations in the United States

Organizations in Foreign Countries

Government Nongovernment Sources Sources

International Governments Organizations

Trade Associations

Chapter Four
Exploratory Research Design: Secondary Data

Primary Vs. Secondary Data

Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process (Chapter 1). Secondary data are data that have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.

Table 4.1

A Comparison of Primary & Secondary Data

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems Collection process Very involved Rapid & easy Collection cost High Relatively low Collection time Long Short

Uses of Secondary Data

Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (for example, by identifying the key variables) Answer certain research questions and test some hypotheses Interpret primary data more insightfully

Criteria for Evaluating Secondary Data

Specifications: Methodology Used to Collect the Data Error: Accuracy of the Data Currency: When the Data Were Collected Objective(s): The Purpose for Which the Data Were Collected Nature: The Content of the Data Dependability: Overall, How Dependable Are the Data

Criteria for Evaluating Secondary Data

Table 4.2
Criteria Issues Remarks
Data should be reliable, valid, & generalizable to the problem. Assess accuracy by comparing data from different sources. Census data are updated by syndicated firms. The objective determines the relevance of data. Reconfigure the data to increase their usefulness. Data should be obtained from an original source.

Specifications & Data collection method, response rate, quality & analysis of data, sampling Methodology technique & size, questionnaire design, fieldwork. Error & Accuracy Examine errors in approach, research design, sampling, data collection & analysis, & reporting. Currency Time lag between collection & publication, frequency of updates. Objective Why were the data collected? Nature Definition of key variables, units of measurement, categories used, relationships examined. Dependability Expertise, credibility, reputation, and trustworthiness of the source.

A Classification of Secondary Data

Fig. 4.1

Secondary Data

Internal

External

Ready to Use

Requires Further Processin g

Published Materials

Computerized Databases

Syndicated Services

Internal Secondary Data Department Store Project Sales were analyzed to obtain: Sales by product line Sales by major department (e.g., men's wear, house wares) Sales by specific stores Sales by geographical region Sales by cash versus credit purchases Sales in specific time periods Sales by size of purchase Sales trends in many of these classifications were also examined

Type of Individual/Household Level Data Available from Syndicated Firms

I. Demographic Data - Identification (name, address, email, - Sex - Marital status - Names of family members - Age (including ages of family members) - Income - Occupation - Number of children present - Home ownership - Length of residence - Number and make of cars owned telephone)

Type of Individual/Household Level Data Available from Syndicated Firms

II. Psychographic Lifestyle Data - Interest in golf - Interest in snow skiing - Interest in book reading - Interest in running - Interest in bicycling - Interest in pets - Interest in fishing - Interest in electronics - Interest in cable television There are also firms such as Dun & Bradstreet and American Business Information which collect demographic data on businesses.

A Classification of Published Secondary Sources

Fig. 4.2 Published Secondary Data

General Business Sources

Government Sources

Guides

Directories

Indexes

Statistical Data

Census Data

Other Government Publications

InfoUSA: Here, There, Everywhere

InfoUSA (www.infousa.com) markets subsets of its data in a number of forms, including the professional online services (LEXIS-NEXIS and DIALOG), the general online services (CompuServe and Microsoft Network), the Internet (look-ups), and on CD-ROM. The underlying database on which all these products are based contains information on 115 million residential listings and 14 million business listings, as of 2005. These are verified with over 17 million phone calls annually. The products derived from these databases include sales leads, mailing lists, business directories, mapping products, and also delivery of data on the Internet.

A Classification of Computerized Databases

Fig. 4.3 Computerized Databases

Online

Internet

Off-Line

Bibliographic Databases

Numeric Databases

Full-Text Databases

Directory Databases

SpecialPurpose Databases

Guides

Published External Secondary Sources

An excellent source of standard or recurring information Helpful in identifying other important sources of directories, trade associations, and trade publications One of the first sources a researcher should consult Directories Helpful for identifying individuals or organizations that collect specific data Examples: Consultants and Consulting Organizations Directory, Encyclopedia of Associations, FINDEX: The Directory of Market Research Reports, Studies and Surveys, and Research Services Directory Indices Helpful in locating information on a particular topic in several different publications

Classification of Computerized Databases

Bibliographic databases are composed of citations to articles Numeric databases contain numerical and statistical information Full-text databases contain the complete text of the source documents comprising the database Directory databases provide information on individuals, organizations, and services Special-purpose databases provide specialized information

Syndicated Services
Syndicated services are companies that collect and sell common pools of data of known commercial value designed to serve a number of clients Syndicated sources can be classified based on the unit of measurement (households/consumers or institutions) Household/consumer data may be obtained from surveys, diary panels, or electronic scanner services Institutional data may be obtained from retailers, wholesalers, or industrial firms

A Classification of Syndicated Services

Fig. 4.4 Unit of Measurement

Households/ Consumers

Institutions

Syndicated Services: Consumers

Fig. 4.4 cont. Households / Consumers

Panels Electronic scanner services Scanner Panels with Cable TV

Purchase Surveys

Media Volume Scanner Tracking Data Panels Advertising Evaluation

Psychographic General & Lifestyles

Syndicated Services: Institutions

Fig. 4.4 cont. Institutions

Retailers

Wholesalers

Industrial firms

Audits

Direct Inquiries

Clipping Services

Corporate Reports

Overview of Syndicated Services

Table 4.3
Type
Surveys

Characteristics Advantages

Disadvantages Uses
Market segmentation, advertising theme selection and advertising effectiveness Forecasting sales, market share and trends; establishing consumer profiles, brand loyalty and switching; evaluating test markets, advertising, and distribution Establishing advertising rates; selecting media program or air time; establishing viewer profiles

Surveys conducted at Most flexible way of Interviewer errors; regular intervals obtaining data; respondent errors information on underlying motives

Purchase Panels

Households provide specific information regularly over an extended period of time; respondent asked to record specific behaviors as they occur Electronic devices automatically recording behavior, supplemented by a diary

Recorded purchase behavior can be linked to the demographic/ psychographic characteristics

Lack of representativeness; response bias; maturation

Media Panels

Same as purchase panel

Same as purchase panel

Overview of Syndicated Services

Table 4.3 cont.
Scanner Diary Panels Scanner panels of with Cable TV households that subscribe to cable TV Data reflect actual Data may not be purchases; sample representative; quality control; ability to link of data limited panel data to household characteristics Relatively precise information at the retail and wholesale levels Coverage may be incomplete; matching of data on competitive activity may be difficult Promotional mix analyses; copy testing; new product testing; positioning

Audit services

Verification of product movement by examining physical records or performing inventory analysis

Industrial Product Syndicated Services

Data banks on industrial establishments created through direct inquiries of companies, clipping services, and corporate reports

Important source of information on industrial firms, particularly useful in initial phases of the projects

Data are lacking in terms of content, quantity, and quality

Measurement of consumer sales and market share; competitive activity; analyzing distribution patterns; tracking of new products Determining market potential by geographic area; defining sales territories; allocating advertising budget

Single-Source Data
Single-source data provide integrated information on household variables, including media consumption and purchases, and marketing variables, such as product sales, price, advertising, promotion, and in-store marketing effort Recruit a test panel of households and meter each home's TV sets Survey households periodically on what they read Grocery purchases are tracked by UPC scanners Track retail data, such as sales, advertising, and promotion

A Classification of International Sources

Fig. 4.5 International Secondary Data

Domestic Organizations in the United States

International Organizations in the United States

Organizations in Foreign Countries

Government Nongovernment Sources Sources

International Governments Organizations

Trade Associations