Marketing Research

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Marketing Research

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Marketing Research:

Marketing Research Prepared by D.V. Madhusudan Rao Associate Professor-Marketing Avinash Degree College Kukatpally , Hyderabad

Reference Books:

Reference Books Marketing Management – Kotler, keller et al Marketing Research an Applied Orientation Naresh Malhotra & S. Dash Business Research Methods Cooper & Schindler Marketing Research – Text & Cases Boyd, Westfall & Stasch

Objectives:

Objectives To know Marketing Research To understand the difference between Marketing Research and Market Research To develop familiarity on business Research Methodology To understand the relevance of MR for managerial decision making

Slide4:

4- 4 Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization . - Kotler MR is the systematic gathering, recording and analyzing of data about problems related to the marketing of goods & services. - American Marketing Association It may be relevant to add the word “continuous” to the above definition What is Marketing Research Marketing research is now about a $16.5 billion industry

Types of Marketing Research Firms:

Types of Marketing Research Firms Syndicated- service Custom Specialty- line Type Examples Syndicated-service research firms Gather & sell Custom marketing research firms hired to carry out Specialty-line marketing research firms (specialized in services) sells field interviewing services to other firms.

Need for MR:

Need for MR A manager takes decisions His responsibility is to reduce risk of failure in decision making Risk arises due to lack of relevant information A manager always seeks information to improve quality of decision making Information can be collected through MR Hence, MR is an important tool for managerial decision making

Purpose of MR:

Purpose of MR To improve quality of decision making process by providing information To help reduce the risk associated with managerial decision making Risk due to two types of uncertainties: About the expected outcome About the future environment To discover opportunity & exploit profitably For example : Frooti , Velvette , Mother Dairy, Dhara , Pan Parag

Scope of MR:

Scope of MR Consumers of products & services Buyer behaviour, Influencers, Buying habits, Incentives Product & product design Pricing, Sourcing, Physical attributes Distribution Channels Performance, Dealer Satisfaction, Own vs Multi-brand Advertising Impact Image, Positioning, Media Planning, Message Content & Prioritizing Macro Level Phenomenon Govt spending. Mood of the Industry, State of Economy

MR & Marketing Decisions:

MR & Marketing Decisions For Production, Finance, Personnel Most of the required info are available within the organization; Hence easy to collect & analyze Formal procedures are used to improve quality : Stats Methods for QC, PERT & CPM, Queuing Theory, Optimization Techniques etc For Marketing – information mostly exist outside the organization In consumer behaviour, perception, minds In competitive moves In new government rules & regulations In social & political changes

Contd…:

Contd … Other problems for collecting information required for marketing decisions are Being external – collection is cumbersome & expensive Variables are often qualitative & dynamic – making measurements difficult & inaccurate Variables are complex & interact with each other

The Manager-Researcher Relationship:

The Manager-Researcher Relationship Manager’s obligations Specify problems Provide adequate background information Access to company information gatekeepers Researcher’s obligations Develop a creative research design Provide answers to important business questions

The Management-Research Question Hierarchy:

The Management-Research Question Hierarchy 1 Management Dilemma Measurement Questions Investigative Questions Research Questions Management Questions Management Decision 2 3 4 5 6

The Management-Research Question Hierarchy:

The Management-Research Question Hierarchy 1 Why are sales declining in south while sales are booming in all other regions? Conduct an employee survey for outcomes of change in compensation structure If compensation scheme is changed, will good sales persons leave? Introduce individual incentive? Quota based incentive? Advertise more? Management Decision 2 3 4 5 6 13 How can we improve sales in south?

Slide14:

4- 14 Defining the Problem and Research Objectives Types of objectives: Exploratory research Descriptive research Causal research Marketing Research

Slide15:

4- 15 Defining the Problem and Research Objectives Exploratory research is the gathering of preliminary information that will help to define the problem and suggest hypotheses. Descriptive research is to describe things such as market potential for a product or the demographics and attitudes of consumers who buy the product. Causal research is to test hypotheses about cause-and-effect relationships. Marketing Research

Manager-Researcher Conflicts:

Manager-Researcher Conflicts Management’s limited exposure to research Manager sees researcher as threat to personal status Researcher has to consider corporate culture and political situations Researcher’s isolation from managers

What is Good Research?:

What is Good Research? Following the standards of the scientific method Purpose clearly defined Research process detailed Research design thoroughly planned Limitations frankly revealed High ethical standards applied Adequate analysis for decision-maker’s needs Findings presented unambiguously Conclusions justified Researcher’s experience reflected

The Seven Characteristics of Good MR :

The Seven Characteristics of Good MR Scientific method careful observation, formulation of hypotheses, prediction, and testing Research creativity innovative ways to solve a problem Multiple methods two or three methods to increase confidence Interdependence of models and data recognize that data are interpreted from underlying models that guide the type of information sought Value and cost of information Costs are typically easy to determine, but the value of research is harder to quantify Healthy skepticism alert to the problems caused by "marketing myths Ethical marketing The misuse of marketing research can harm or annoy consumers

The Marketing Research Process:

The Marketing Research Process six steps as shown in this Figure

1) Dr. Malhotra’s Case:

1) Dr. Malhotra’s Case Dr. Malhotra : “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.”

1) Dr. Malhotra’s Case:

1) Dr. Malhotra’s Case “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?”

1) Dr. Malhotra’s Case:

1) Dr. Malhotra’s Case “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.”

1) Dr. Malhotra’s Case:

1) Dr. Malhotra’s Case “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.”

1) The Problem Definition Process:

1) The Problem Definition Process Fig. 1 Discussion with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research Management Decision Problem Marketing Research Problem Pre-step 1: Tasks Involved Pre-step 2: Environmental Context of the Problem Step I: Problem Definition Step II: Approach to the Problem Objective/ Theoretical Foundations Research Questions Hypotheses Step III: Research Design Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed

2) Pre-step 1: Tasks Involved (Discussion w/ DM):

2) Pre-step 1: Tasks Involved (Discussion w/ DM) The problem audit is a comprehensive examination of a marketing problem with the purpose of understanding its origin and nature. A discussion with the decision-maker (DM) includes: 1. History of the problem - The events that led to the decision that action is needed. 2. Alternatives - The alternative courses of action available to the DM. 3. Criteria - The criteria that will be used to evaluate the alternative courses of action. 4. Potential Actions - The potential actions that are likely to be suggested based on the research findings. 5. Information Needed - The information that is needed to answer the DM's questions. 6. Uses of Information - The manner in which the DM will use each item of information in making the decision. 7. Cultural Influence - The corporate culture as it relates to decision making.

2) Pre-step 1: Tasks Involved :

2) Pre-step 1: Tasks Involved Conduct Interviews with Industry Experts Survey experiences professionals; useful for new products. Conduct Secondary Data Analysis Secondary data : data collected for some other purpose other than the problem at hand; this data already exists. Primary data : any data that originated by the researcher specifically to address the research problem (save this for later). Conduct Qualitative Research Qualitative research : an unstructured, exploratory research methodology based on small samples intended to provide insight and understanding of the problem setting. Examples: focus groups, depth interviews.

3) Pre-step 2: Consider the Environmental Context of the Problem:

3) Pre-step 2: Consider the Environmental Context of the Problem PAST INFORMATION AND FORECASTS FIRM RESOURCES AND CONSTRAINTS RESEARCH OBJECTIVES BUYER BEHAVIOR LEGAL ENVIRONMENT ECONOMIC ENVIRONMENT MARKETING AND TECHNOLOGICAL SKILLS OF THE FIRM Considering the following:

The Problem Definition Process (again):

The Problem Definition Process (again) Fig. 2 Discussion with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research Management Decision Problem Marketing Research Problem Pre-step 1: Tasks Involved Pre-step 2: Environmental Context of the Problem Step I: Problem Definition Step II: Approach to the Problem Objective/ Theoretical Foundations Research Questions Hypotheses Step III: Research Design Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed

4) Step I: Problem Definition:

4) Step I: Problem Definition Management Decision Problem Marketing Research Problem Asks what the DM needs to do  Asks what information is needed and how it should obtained EXAMPLE Should a new product be  What are the consumer preferences introduced? and purchase intentions for the proposed new product?   Should the advertising  How effective is the current campaign be changed? advertising campaign?   Should the price of the  How elastic is the demand? brand be increased? How will a price change impact sales and profits?

4) Definition of the Research Problem:

4) Definition of the Research Problem Marketing Research Problem Broad Statement Specific Components Fig. 3 For example….

4) Department Store Project Example:

4) Department Store Project Example Problem Definition : In the department store project, the marketing research problem is to determine the relative strengths and weaknesses of Sears, vis-à-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 departmental stores ? 2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in question 1? 3. What is the demographic and psychological profile of the customers of Sears and competitors? Broad Statement Specific Components

Problem Definition Process (again):

Problem Definition Process (again) Fig. 2.1 Discussion with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research Management Decision Problem Marketing Research Problem Pre-step 1: Tasks Involved Pre-step 2: Environmental Context of the Problem Step I: Problem Definition Step II: Approach to the Problem Objective/ Theoretical Foundations Research Questions Hypotheses Step III: Research Design Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed

5) Step II: Approach to the Problem :

5) Step II: Approach to the Problem Objective/Theoretical Foundations Research Questions Hypotheses Analytical Models Specification of the Information Needed

5) Objective/Theoretical Foundations :

5 ) Objective/Theoretical Foundations A theory is a conceptual scheme based on foundational statements that are assumed to be true . Theory should be developed using objective, secondary evidence . Theory should be relied upon when… developing variables and hypotheses operationalizing variables choosing research procedures (e.g. survey, experiment, etc.) selecting a sample analyzing and interpreting data

5) Development of Research Questions and Hypotheses:

5) Development of Research Questions and Hypotheses Components of the Research Questions Hypotheses Objective/ Theoretical Framework Marketing Research Problem Analytical Model

5) Research Questions and Hypotheses :

5) Research Questions and Hypotheses Research questions (RQs) are refined statements of the specific components of the problem. Does preference for Sears lead to patronage? What leads to preference for Sears? 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. H1: Positive evaluation of Sears leads to preference for Sears. H2: Preference for Sears leads to patronage of Sears.

5) Analytical Models:

5) Analytical 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. The most common forms of analytical models are verbal, graphical, and mathematical models .

5) Analytical Models, continued:

In verbal models , the variables and their relationships are stated in prose form. Example: A consumer first becomes aware of a department store. That person then gains an understanding of the store by evaluating the store in terms of the factors comprising the choice criteria. Based on the evaluation and understanding, the consumer forms a degree of preference for the store. If preference is strong, the consumer will patronize the store. 5) Analytical Models, continued

5) Analytical Models, cont.d..:

5) Analytical Models, cont.d .. Graphical models state the relationships in visual form. Awareness Understanding Preference Patronage Evaluation

5) Analytical Models, continued:

5) Analytical Models, continued Mathematical models explicitly specify the relationships among variables, usually in equation form. Y = Β 0 + Β 1 X where Β 0 is a constant (i.e. starting point), Β 1 is the regression coefficient, X is the value of the independent variable, and Y is the value of the dependent variable . In this case: Patronage = Constant + Preference*X Preference = Constant + Understanding*X 1 + Evaluation*X 2 Understanding = Constant + Awareness*X Evaluation = Constant + Awareness*X

5) Specification of Information Needed:

5) Specification of Information Needed What information should be obtained in the marketing research project? Focus on: each component of the problem , the analytical framework/models , the research questions , and the hypotheses . This exercise is carried out for the Supermarket example on the next few slides…

Specification of Information Needed: Supermarket Project Example:

Specification of Information Needed: Supermarket Project Example Component 1: What criteria do households use when selecting department stores? The researcher identified the following factors as part of the choice criteria: quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location…

Department Store Project Example, cont’d.:

Department Store Project Example, cont’d . Research Question: Is price the most important criteria when selecting a department store? Hypothesis 1 : Price is the most important criteria when selecting a department store. Information needed: Survey a few hundred department store customers. The respondents should be asked to rate the importance of each factor as it influences their store selection.

Survey Example:

Survey Example D-Mart Big Bazaar Heritage Reliance Fresh Quality of merchandise Variety and assortment of merchandise Returns and adjustment policy Service of store personnel Prices Convenience of location Please rate the following Super Markets on the below criteria (1 = worst, 10 =best).

Unit-II Sources of Data:

Unit-II Sources of Data 1. Data Collection Method Secondary Data Primary Data Observation Survey (Most widely used) Experimentation Specific Research Instruments Camera, Tape, People Meter, Tally Sheet, Questionnaire Sampling Plan Who is to be surveyed? Sampling unit How many? Sample size How are they to be selected? Sampling Procedure How are they to be reached? Sampling Media

Slide47:

4- 47 Primary Data Collection Research approaches Contact methods Sampling plan Research instruments Marketing Research

Slide48:

4- 48 Research Approaches Observational research involves gathering primary data by observing relevant people, actions, and situations. Ethnographic research involves sending trained observers to watch and interact with consumers in their natural environment. Marketing Research

Slide49:

4- 49 Research Approaches Survey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior. Flexible People can be unable or unwilling to answer Gives misleading or pleasing answers Privacy concerns Marketing Research

Slide50:

4- 50 Research Approaches Experimental research is best for gathering causal information Tries to explain cause-and-effect relationships. Marketing Research

Slide51:

4- 51 Contact Methods Mail questionnaires Collect large amounts of information Low cost Less bias with no interviewer present Lack of flexibility Low response rate Lack of control of sample Marketing Research

Slide52:

4- 52 Contact Methods Telephone interviewing Collects information quickly More flexible than mail questionnaires Interviewers can explain difficult questions Higher response rates than mail questionnaires Interviewers communicate directly with respondents Higher cost than mail questionnaires Potential interviewer bias Marketing Research

Slide53:

4- 53 Contact Methods Mail, telephone, and personal interviewing Personal interviewing Individual interviewing Group interviewing Marketing Research

Slide54:

4- 54 Contact Methods Personal interviewing Individual interviewing Involves talking with people at home or the office, on the street, or in shopping malls Flexible More expensive than telephone interviews Group interviewing or focus group interviewing Involves inviting 6 to 10 people to talk with a trained moderator Marketing Research

Slide55:

4- 55 Contact Methods Online marketing research Internet surveys Online panels Online experiments Online focus groups Marketing Research

Slide56:

4- 56 Contact Methods Online marketing research Low cost Speed to administer Fast results Good for hard-to-reach groups Hard to control who’s in the sample Lack of interaction Privacy concerns Marketing Research

Research Approaches:

Research Approaches Observation Focus Group Survey Behavioral Data Experimentation Ethnographic

Step 2: Develop the Research Plan:

Step 2: Develop the Research Plan Data Sources Contact Methods Research Instruments Sampling Plan Research Approach

Focus Group in Session:

Focus Group in Session

Research Instruments:

Research Instruments Questionnaires Qualitative Measures Technological Devices

Questionnaire Do’s and Don’ts:

Questionnaire Do’s and Don’ts Ensure questions are free of bias Make questions simple Make questions specific Avoid jargon Avoid sophisticated words Avoid ambiguous words Avoid negatives Avoid hypotheticals Avoid words that could be misheard Use response bands Use mutually exclusive categories Allow for “other” in fixed response questions

Question Types—Dichotomous:

Question Types — Dichotomous In arranging this trip, did you contact American Airlines?  Yes  No

Question Types—Multiple Choice:

Question Types — Multiple Choice With whom are you traveling on this trip?  No one Spouse Spouse and children Children only Business associates/friends/relatives An organized tour group

Question Types—Likert Scale:

Question Types — Likert Scale Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones.  Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree

Question Types—Semantic Differential:

Question Types — Semantic Differential American Airlines Large ………………………………...…….Small Experienced………………….….Inexperienced Modern……………………….…..Old-fashioned

Question Types—Importance Scale:

Question Types — Importance Scale Airline food service is _____ to me.  Extremely important Very important Somewhat important Not very important Not at all important

Question Types—Rating Scale:

Question Types — Rating Scale American Airlines’ food service is _____.  Excellent Very good Good Fair Poor

Question Types— Intention to Buy Scale:

Question Types — Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?  Definitely buy Probably buy Not sure Probably not buy Definitely not buy

Question Types—Completely Unstructured:

Question Types — Completely Unstructured What is your opinion of American Airlines?

Question Types—Word Association:

Question Types — Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________ Travel ________________________

Question Types— Sentence Completion:

Question Types — Sentence Completion When I choose an airline, the most important consideration in my decision is: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.

Question Types—Story Completion:

Question Types — Story Completion “I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Question Types—Picture (Empty Balloons):

Question Types — Picture (Empty Balloons)

Question Types—Thematic Apperception Test:

Question Types — Thematic Apperception Test Make up a story that reflects what you think is happening in this picture.

Qualitative Measures:

Qualitative Measures Word Association Projective Techniques Visualization Brand Personification Laddering

Technological Devices:

Technological Devices Galvanometers Tachistoscope Eye cameras Audiometers GPS

Nielsen Outdoor Leverages GPS to Track Billboard Reach:

Nielsen Outdoor Leverages GPS to Track Billboard Reach

Sampling Plan:

Sampling Plan Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?

Table 4.2 Types of Samples:

Table 4.2 Types of Samples Probability Samples Simple random Stratified random Cluster Non-probability Samples Convenience Judgment Quota

Contact Methods:

Contact Methods Mail Questionnaire Telephone Interview Personal Interview Online Interview

Pros and Cons of Online Research:

Pros and Cons of Online Research Advantages Inexpensive Fast Accuracy of data, even for sensitive questions Versatility Disadvantages Small samples Skewed samples Technological problems Inconsistencies

Case Study: American Airlines (AA):

Case Study: American Airlines (AA) American Airlines (AA) is constantly looking for new ways to serve its passengers; it was one of the first companies to install phone handsets. Now it is reviewing many new ideas, especially to cater to its first-class passengers on very long flights, many of whom are businesspeople whose high-priced tickets pay most of the freight. Among these ideas are: to supply an Internet connection with limited access to Web pages and e-mail messaging; (2) to offer 24 channels of satellite cable TV; and (3) to offer a 50-CD audio system that lets each passenger create a customized play list of music and movies to enjoy during the flight. The marketing research manager was assigned to investigate how first-class passengers would rate these services and how much extra they would be willing to pay if a charge was made. He was asked to focus specifically on the Internet connection. One estimate says that airlines might realize revenues of $70 billion over the next decade from in-flight Internet access, if enough first-class passengers would be willing to pay $25 for it. AA could thus recover its costs in a reasonable time. Making the connection available would cost the airline $90,000 per plane.6 FIG. The Marketing Research Process

Case Study: American Airlines (AA):

Case Study: American Airlines (AA) The marketing research manager was assigned to investigate how first-class passengers would rate these services and how much extra they would be willing to pay if a charge was made. He was asked to focus specifically on the Internet connection. One estimate says that airlines might realize revenues of $70 billion over the next decade. if enough first-class passengers would be willing to pay $25 for it. AA could thus recover its costs in a reasonable time. Making the connection available would cost the airline $90,000 per plane.

Defining the Problem :

Defining the Problem Will offering an in-flight Internet service create enough incremental preference and profit for American Airlines to justify its cost against other possible investments American might make?"

Research Objectives:

Research Objectives Research objectives: What types of first-class passengers would respond most to using an in-flight Internet service? How many first-class passengers are likely to use the Internet service at different price levels? How many extra first-class passengers might choose American because of this new service? How much long-term goodwill will this service add to American Airlines' image? How important is Internet service to first-class passengers relative to providing other services such as a power plug, or enhanced entertainment?

Research Types:

Research Types Exploratory—research: its goal is to shed light on the real nature of the problem and to suggest possible solutions or new ideas. Descriptive—research: is it seeks to ascertain certain magnitudes, such as how many first-class passengers would purchase in-flight Internet service at $25. Causal—research: Its purpose is to test a cause-and-effect relationship.

Developing Research Plan:

Developing Research Plan Designing a research plan calls for decisions on the data sources, research approaches, research instruments, sampling plan, and contact methods

Data sources:

Data sources Data sources: Primary data can be collected in five main ways: Observation, Focus groups, Surveys, behavioral data, Customers leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases. Experiments.

Behavioral Data:

Behavioral Data Customers leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases.

Survey Research:

Survey Research Companies undertake surveys to learn about people's knowledge , beliefs , preferences , and satisfaction , and to measure these magnitudes in the general population.

Focus Group:

Focus Group is a gathering of six to ten people who are carefully selected based on certain demographic, psychographic, or other considerations and brought together to discuss at length various topics of interest.

Experimental Research:

Experimental Research The most scientifically valid. The purpose of experimental research is to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. Experiments call for selecting matched groups of subjects, subjecting them to different treatments, controlling extraneous variables, and checking whether observed response differences are statistically significant.

RESEARCH INSTRUMENTS:

three main research instruments in collecting primary data: questionnaires, qualitative measures, and mechanical devices. RESEARCH INSTRUMENTS

Qualitative research:

Qualitative research QR techniques are relatively unstructured measurement approaches that permit a range of possible responses, and they are a creative means of ascertaining consumer perceptions that may otherwise be difficult to uncover.

Slide95:

Shadowing— observing people using products, shopping, going to hospitals, taking the train, using their cell phones. Behavior mapping— photographing people within a space, such as a hospital waiting room, over two or three days. Consumer journey —keeping track of all the interactions a consumer has with a product, service, or space. Camera journals —asking consumers to keep visual diaries of their activities and impressions relating to a product. Extreme user interviews —talking to people who really know—or know nothing—about a product or service and evaluating their experience using it. Storeytelling— prompting people to tell personal stories about their consumer experiences. Unfocus groups —interviewing a diverse group of people: To explore ideas seven techniques

Mechanical Devices:

Mechanical Devices Mechanical devices are occasionally used in marketing research. After each exposure, the respondent describes everything he or she recalls. Eye cameras study respondents' eye movements to see where their eyes land first, how long they linger on a given item, and so on. Audiometers can be attached to television sets in participating homes to record when the set is on and to which channel it is tuned.

SAMPLING PLAN:

SAMPLING PLAN SAMPLING PLAN After deciding on the research approach and instruments, the marketing researcher must design a sampling plan. Sampling unit: Who is to be surveyed? Sample size: How many people should be surveyed? Sampling procedure: How should the respondents be chosen?7o

Slide98:

Simple random sample: Every member of the population has an equal chance of selection. Stratified random sample: The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group. Cluster (area) sample: The population is divided into mutually exclusive groups (such as city blocks), and the researcher draws a sample of the groups to interview. A. Probability Sample

B. Non-probability Sample :

B. Non-probability Sample Convenience sample: The researcher selects the most accessible population members. Judgment sample: The researcher selects population members who are good prospects for accurate information. Quota sample: The researcher finds and interviews a prescribed number of people in each of several categories.

CONTACT METHODS:

CONTACT METHODS Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contacted: 1)mail, 2) telephone, 3)personal, or online interview.

Step 3: Collect the Information :

Step 3: Collect the Information Getting the right respondents is critical. In the case of surveys, four major problems arise. Some respondents will not be at home and must be contacted again or replaced. Other respondents will refuse to cooperate. Others will give biased or dishonest answers. Finally, some interviewers will be biased or dishonest.

Step 4: Analyze the Information:

Step 4: Analyze the Information The next-to-last step in the process is to extract findings from the collected data. The researcher tabulates the data and develops frequency distributions. Averages and measures of dispersion are computed for the major variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings.

Step 5: Present the Findings:

Step 5: Present the Findings As the last step, the researcher presents the findings. The researcher should present findings that are relevant to the major marketing decisions facing management.

The main survey findings for the American Airlines case show that::

The main survey findings for the American Airlines case show that: The chief reasons for using in-flight Internet service are to pass the time surfing, and to send and receive messages from colleagues and family. The charge would be put on passengers' charge accounts and paid by their companies.

The main survey findings for the American Airlines case show that::

The main survey findings for the American Airlines case show that: About 5 first-class passengers out of every 10 would use the Internet service during a flight at $25; about 6 would use it at $15. Thus, a charge of $15 would produce less revenue ($90 = 6 x $15) than $25 ($125 = 5 X $25). By charging $25, AA would collect $125 per flight. Assuming that the same flight takes place 365 days a year, AA would annually collect $ 45,625. Since the investment is $90,000, it will take approximately two years before American Airlines breaks even .

Step 6: Make the Decision :

Step 6: Make the Decision The last step is decision-making process Evaluating the decision made The decision process itself Two questions should be asked: 1) Was the decision made (analyst do not make decisions)? 2) Was the decision right?

Marketing Debate:

Marketing Debate What is the best type of marketing research? Take a position: Marketing research should be quantitative. or 2. Marketing research should be qualitative.

Marketing Discussion:

Marketing Discussion When was the last time you participated in a survey? How helpful do you think the information you provided was? Could the research have been done differently?

Any Questions Pl.??:

Any Questions Pl.?? Thank You!

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