chapter three types of marketing research. chapter objectives distinguish between exploratory...
TRANSCRIPT
Chapter Objectives
• Distinguish between exploratory research and conclusive research and discuss the role each plays in research projects
• Illustrate five approaches for conducting exploratory research
• Distinguish between the two types of conclusive research: descriptive research and experimental research
Chapter Objectives (Cont’d)
• Distinguish between conducting a cross-sectional descriptive study and a longitudinal descriptive study
• Understand how to conduct experimental research
• Determine which type of research to conduct
Maytag Innovation through Customer Driven Research
• Maytag– Strategic Initiatives Group used a mix of
qualitative and quantitative studies
– Discovered through exploratory research that baby boomers were driving the market for high-end products
– Based on descriptive research it was determined the new line would carry the Jenn-Air brand
Design for the Luxury Market
• Fitch-Worldwide is a leading design consulting firm was brought in.– Used ethnographic, observational and focus
group techniques to understand luxury consumers
– A result is the Attrezzi Stand Mixer.
– With lots of optional features, it’s “simply too beautiful to put away”
Exploratory Research
• Develop initial hunches or insights• Provide direction for any further research
needed• Purpose
– To shed light on the nature of the situation and to identify any specific objectives or data needs
Conclusive or Confirmatory Research
• To verify insights and to aid decision-makers in selecting a specific course of action
PURPOSE: to aid in the decision-making process from Chapter 1
Decision-making activity
Marketing Research
Organization’s internal and
external environments
Marketing situation calling for decision(s)
Final decision(s)
Conclusive or Confirmatory Research (Cont’d)
Saver’s Nations Bank
• Facts– Growing competition from variety of financial
institutions offers a unique set of financial services– Bank performing well and experiencing rapid growth
since inception• Problem
– Bank wants to ascertain the demographic composition of customers and their perceptions of the bank’s strengths and weaknesses
• Solution: Conduct conclusive research
Trent Eating Association
• Facts– Operates a chain of restaurants in eight
communities– Maintains image of high-class restaurant chain
serving excellent food at premium prices• Problem
– Wondering whether a 15% reduction in prices would hurt or help
• Solution: Conduct conclusive research
Differences Between Exploratory and Conclusive Research
• Research Project Components: Research Purpose– Exploratory Research
• General: To generate insights about a situation
– Conclusive Research• Specific: To verify insights and aid in selecting
a course of action
Differences Between Exploratory and Conclusive Research (Cont’d)
• Research Project Components: Data needs– Exploratory Research
• Vague
– Conclusive Research• Clear
Differences Between Exploratory and Conclusive Research (Cont’d)
• Research Project Components: Data sources– Exploratory Research
• Ill-defined
– Conclusive Research• Well-defined
Differences Between Exploratory and Conclusive Research (Cont’d)
• Research Project Components: Data collection form – Exploratory Research
• Open-ended, rough
– Conclusive Research• Usually structured
Differences Between Exploratory and Conclusive Research (Cont’d)
• Research Project Components: Sample– Exploratory Research
• Relatively small; subjectively selected to maximize generalization of useful insights
– Conclusive Research• Relatively large; objectively selected to permit
generalization of findings
Differences Between Exploratory and Conclusive Research (Cont’d)
• Research Project Components: Data collection– Exploratory Research
• Flexible; no set procedure
– Conclusive Research• Rigid; well-laid-out procedure
Differences Between Exploratory and Conclusive Research (Cont’d)
• Research Project Components: Data analysis– Exploratory Research
• Informal; typically non-quantitative
– Conclusive Research• Formal; typically quantitative
Differences Between Exploratory and Conclusive Research (Cont’d)
• Research Project Components: Inferences/recommendations– Exploratory Research
• More tentative than final
– Conclusive Research• More final than tentative
Types of Data for Exploratory Research
• Key informant• Focus groups• Secondary data• Cast studies• Observational data
Key Informant--Interviews with Knowledgeable People
• Silicon Graphics’ key customers– Industries needing realistic generated images
for film• Boeing • Disney • NASA
• Silicon Graphics decides to explore some new product development
Silicon Graphics Is Using the Key Informant Technique
• Key Customer– Industries needing realistic generated images for film
– Silicon Graphics needs to identify key industry experts within their customer base
• Through interviews they determine industry needs• They develop new visual graphics software
– They then filter this into their product development ideas
P&G
• A leader in the detergent market– Interested in developing a new detergent to
arrest sagging profits in a mature market
• P&G looks to conduct research with managers in appliance industries and key lead users from dry cleaning industries?
Muscular Dystrophy Family Foundation®
• MDFF wants to start a new program to aid people with serious physical handicaps
• They are wondering about what kinds of charitable programs to begin and what strategies to develop in order to seek donations from the public – Who should the MDFF talk to?
• Officers in well-established public service organizations, such as the United Way, the American Red Cross, and the American Cancer Society
Srivats Software Solutions
• Interested in developing high resolution images– Who should they talk to?
• Hollywood animation researchers, NASA researchers, and X-ray specialists
• 8 to 12 individuals• Moderator (a well-trained researcher)• Informal discussion about research topic
Individuals
Moderator
Discussion
Focus Groups
Duties of a Moderator
• Guide discussion• Ensure key aspects of the topic are
discussed• Observe• Record
Using Secondary Data
• Data that is conducted for another purpose• Fast inexpensive was of conducting
exploratory research• Often reveals that no further analysis is
necessary
Kaplan Higher Education
• Currently serving 15 states and looking to expand into other states and more profitable markets
• Relied primarily on secondary data to determine new markets
• This technique provided a fast, cost-efficient method to answer Kaplan’s research question
Case Studies
• In depth examination of a unit of interest• Possible units
– Customer
– Website
– Store
– Salesperson
– Firm
Case Studies (Cont’d)
• Possible Examination Factors– Store
• Morale• Size • Product lines• Layout• Trade area characteristics
Allied Associates Company
• National chain of discount stores with 500 retail outlets across the country
• Profitability during the past few years has remained above industry average– Top management needs to identify key elements
crucial to the company’s success and to capitalize on those elements
– Question: Where and how can one accomplish top management’s objectives?
– CASE STUDY METHOD: Study three best performing stores and three worst performing stores in depth on numerous dimensions
Observation
• Human or mechanical observation of what subjects actually do in a particular situation
• Record information as events occur or compile evidence of past events
• Assesses behavior which can be translated into new products or improvements of current products
Types of Conclusive Research
• Descriptive– Generates data on the composition and
characteristics of a specific group such as customers, sales people, and market areas
• Experimental– Generates data to determine causal
relationships
Voice of the Leaders Survey
• Annual, global survey conducted by The World Economic Forum
• Objective is to understand world leaders’ opinions on a variety of issues affecting today’s business world
• Results found that members believe that the next generation is most likely to live in a prosperous, but unsafe, world
• Also found that the quality of products or services, corporate brand reputation/integrity, and profitability are the three most important measures of corporate success
Descriptive Research--Proportion of High- and Low-Income Customers in Saver’s Nations Bank Clientele
• What does this data indicate to you about the relationship between income and perceptions of location?
Descriptive Research
• Cross-sectional studies– Data collected at a single period in time from a
cross-sectional sample of the unit of interest that is disbanded after the data collection
• Longitudinal studies– Repeated measurements taken over a long
period of time from a panel group or sample of the unit that is maintained for future measurements
Cross-sectional Studies
• Data collected at a single period in time from a cross-sectional sample of the unit of interest that is disbanded after the data collection– Conducted in a single time period
– Uses a cross-sectional sample of the unit
– Once the study is complete the sample is disbanded and not used again
Longitudinal Studies
• Repeated measurements taken over a long period of time from a panel group or sample of the unit that is maintained for future measurements– Measurements taken during many different
time periods – Measurements taken from a panel – A PANEL is a sample of units that is
maintained for multiple measurements taken during multiple time periods
Longitudinal Studies (Cont’d)
• Types of Panels– OMNIBUS PANEL: different subjects are
pulled from the panel for each time period• Drawbacks: data is not as reliable
– TRUE PANEL: the same subjects are used for the panel every time data is collected
• Drawbacks: members sometimes evolve out of the desired study group or are induced by the study to change their practices thus tainting the data
Experimental
• A consumer goods firms wants to determine the impact of advertising on sales.
• How should they measure the impact of advertising on sales?
Multi-group Design
ControlGroup
All variables stay the same
ExperimentalGroup
Change one variable
Units
Measure the differences.
Experimental (Cont’d)
Research Continuum
Most projects fall in here, aspects of both descriptive and experimental.
Purely Descriptive
Purely Experimental