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Marketing
Chapter 5
Marketing Research:
Information and Technology
Gilbert A. Churchill, Jr.
J. Paul Peter
Slide
5-1
Marketing Research
Definition
The function that links the consumer, customer, and public to the
marketer through information.
The process of planning, collecting, and analysis of data relevant
to marketing decision making.
The process of designing, gathering, analyzing and reporting of
information that may be used to solve a specific marketing
problem.
The systematic and objective process of generating information
for aid in making marketing decisions.
Slide
5-2
Table
5.1
Questions Marketing Research Can Help
Answer
Questions about Markets
Buyers
Demand
Channels
What kinds of people buy
our products?
Is demand for our
products increasing or
decreasing?
Do channels of distribution for
our products need changing?
Questions about Marketing Mix
Product
Pricing
Placement
Promotion
Which product
design is likely to be
most successful?
What price should
we charge for our
new products?
Where, and by
whom, should our
products be sold?
How much should
we spend on
promotion?
Questions about Performance
Market Share
Customer Satisfaction
Reputation
What is our market share
overall?
Are customers satisfied
with our products?
How does the public perceive
our organization?
Slide
5-3
Figure
5.1
Basics of a Marketing Decision
Support System
Data in
Database
Models in
Model Base
Dialogue
System
Information
Data used to
make decisions
A coordinated collection of data, system tools, and techniques with supporting software and
hardware by which an organization gathers and interprets relevant information and turns it
into a basis for making management decisions.
Slide
5-4
Primary Data
Advantages
• Up-to-date
• Directly Relevant
• Known Source
Disadvantages
• More Expensive
• More Time Consuming
Types
• Observation
• Survey
• Experimental
Data collected specifically for the purpose of
the investigation at hand
Slide
5-5
Secondary Data
Advantages
• Less Expensive
• Requires Less Time
Disadvantages
• May Be Obsolete
• May Not Be Relevant
Types
• Internal
• External
Data collected for some purpose other than
the immediate study at hand
Slide
5-6
Sources of Secondary Data
Source
Description
Internal Information
Sales Invoices, Accounting Records, Previous
Market Research
Market Research Firms
Companies Such As A.C. Nielsen, Arbitron,
IMS International, Prizm
Trade Associations
Associations Such As National Industrial
Conference Board, National Retail Merchants
Association
University Research Bureaus, Variety of Nonprofit Organizations
Professional Associations,
Foundations
Commercial Publications
Advertising Age, Sales Management, Product
Marketing, Buying Power Index
Government Data
Federal Government publications such as
Census of Housing, Census of Manufacturers,
Economic Indicators
Slide
5-7
Table
5.3
Information Available from the
Population Census
Population
Household relationship
Sex
Race
Age
Marital status
Hispanic Origin
Education - enrollment and attainment
Place of birth, citizenship, and year of entry
Ancestry
Language spoken at home
Migration
Disability
Fertility
Veteran status
Employment and unemployment
Occupation, industry and class of worker
Housing
Number of units in structure
Number of rooms in unit
Unit owned or rented
Vacancy characteristics
Value of owned unit or rent paid
Source of water and method of
sewage disposal
Autos, light trucks and vans
Kitchen facilities
Year structure built
Year moved into residence
Number of bedrooms
Shelter costs, including utilities
Condominium status
Plumbing
Telephone
Slide
5-8
Figure
5.3
Steps in the Marketing
Research Process: Step 1
Formulate
the Problem
Plan a
Research Design
Collect Data
Analyze and
Interpret Data
Prepare the
Research Report
Slide
5-9
Figure
5.3
Steps in the Marketing
Research Process: Step 2
Formulate
the Problem
Plan a
Research Design
Collect Data
Analyze and
Interpret Data
Prepare the
Research Report
Slide
5-10
Basic Research Designs
Initial research conducted to
clarify & define the problem
and generate hypotheses
Exploratory Research
(Unaware of Problem)
Research designed to
describe characteristics of
a population
Descriptive Research
(Aware of Problem)
Research conducted to
identify cause-and-effect
relationships among variables
Causal Research
(Problem Clearly Defined)
“Our sales are declining and
we don’t know why.”
“What kind of people are buying “Will buyers purchase more of
our product? Who buys our
our products in a new package?
competitor’s product?”
“Would people be interested
in our new product idea?”
“What features do buyers prefer
in our product?”
The plan for how to
collect and analyze data
“Which of two advertising
campaigns is more effective?”
Slide
5-11
Figure
5.3
Steps in the Marketing
Research Process: Step 3
Formulate
the Problem
Plan a
Research Design
Collect Data
Analyze and
Interpret Data
Prepare the
Research Report
Slide
5-12
Observational Research
Mystery shopping
The collection of
data by recording the
actions of consumers
or events in the
marketplace
One way mirror
Shopper Patterns
Physical trace evidence
Common
Forms of
Observational
Research
Traffic counters
Physiological measurement
People Meters
Slide
5-13
Survey Research
In-Home Interview
The researcher
interacts with people to
obtain facts, opinions,
and attitudes
Mall Intercept
Telephone (Interviewer)
Telephone (Central)
Common
Forms
of Survey
Research
Focus Group Interview
One-Time Mail Survey
Mail Panel Surveys
Slide
5-14
Figure
5.3
Steps in the Marketing
Research Process: Step 4
Formulate
the Problem
Plan a
Research Design
Collect Data
Analyze and
Interpret Data
Prepare the
Research Report
Slide
5-15
Analyze and Interpret Data
Data
Sample
Sampling
Error
Descriptive
Statistics
Census
Key Terms and
Concepts
Statistical
Inference
Probability
Sample
Nonprobability
Sample
Coding
Editing
Slide
5-16
Figure
5.3
Steps in the Marketing
Research Process: Step 5
Formulate
the Problem
Plan a
Research Design
Collect Data
Analyze and
Interpret Data
Prepare the
Research Report
Slide
5-17
Application of New Technology
• Geographic Information System (GIS) is a term used when
we combine various kinds of demographic data with
geographic information on maps.
• Electronic Data Interchange (EDI) is the term used when
one company’s computer systems is integrated directly with
another company’s proprietary computer system.
• Technical-market Research is research incorporating
customers by demonstrating a product in 3-D on a computer
screen and asking customers to evaluate it.
• Usenet is a network of Internet addresses for electronic mail.
Slide
5-18a
Table
5.5
Areas of Ethical Concern in Marketing
Research
Area of Concern
Example
Ethical Standards
Preserving
participant’s
anonymity
Keeping the names of survey
This is a basic standard of
respondents anonymous, even
ethical research/
though the client would like to use
them to create a mailing list
Exposing
participants to
mental stress
Arriving late for a scheduled
interview; conducting
experiments in which subjects
are embarrassed at their lack
of knowledge about products
When stress is unavoidable,
researcher should debrief
subjects afterward.
Asking
participants
questions
against their
self-interest
Asking about the acceptability
of various prices in order to
plan a price increase
Such issues tend to place
ethical standards in conflict
with technical standards for
accurate research.
Using special
Using equipment to measure
equipment and physiological responses to a
techniques
product or promotional
message
These must be properly
maintained to avoid injury.
Slide
5-18b
Table
5.5
Areas of Ethical Concern in Marketing
Research
Area of Concern
Involving
participants in
research
without their
knowledge
Using
deception
Using
coercion
Depriving
participants of
their right to
selfdetermination
Example
Ethical Standards
Secretly observing the behavior of Informed consent is a basic
shoppers
ethical standard unless
minimal risk to subjects is
involved and the research
could not be practically carried
out with consent.
Showing subjects sample
Incompletely informed consent
advertisements without telling
is considered ethical only if
them that they will have to take
there is minimal risk to
a recall test afterward
subjects and research cannot
be practically carried out
another way.
Harassing by repeatedly
Coercion is unethical and
requesting telephone interviews
tends to bias results.
Changing participants in ways
Researchers should try to
they could not expect, such as a
restore participants to their
taste test in which they cannot
original condition when this
identify their preferred brand and occurs.
unexpectedly lose confidence in
their ability to judge
Source: Adapted from Gilbert A. Churchill, Jr. Basic Marketing Research, 3rd ed. (Fort Worth: The Dryden Press, 1996), pp.67-71.
© 1992 by the Dryden Press, reprinted by permission of the publisher.