Download Is Advertising Research Used Unethically to Manipulate Consumers?

CHAPTER SEVEN
RESEARCH: GATHERING INFORMATION
FOR ADVERTISING PLANNING
OBJECTIVES
The main objective for this chapter is to examine how advertisers gain information about the
marketplace and how they apply their findings to marketing and advertising decision making.
After studying this chapter, your students will be able to:
1. Discuss how research helps advertisers locate market segments and identify target markets.
2. Explain the basic steps in the research process.
3. Discuss the differences between formal and informal research and primary and secondary
data.
4. Explain the methods used in qualitative and quantitative research.
5. Define and explain the concepts of validity and reliability.
6. Recognize the important issues in creating survey questionnaires.
7. Explain the challenges international advertisers face in collecting research data abroad.
8. Debate the pros and cons of advertising testing.
TEACHING TIPS AND STRATEGIES
After reading this chapter students should be able to understand what makes an effective ad. I
take the video that came with the text (for instructors) and play several of the commercials. I
ask students the following questions:
 What are they trying to sell?
 Is the ad effective why or why not?
The purpose of this exercise is to convey to students the problems with interpretation of what
an ad is really intended to do (normally, students will be split on what is a good or bad ad).
Advertisers/ Ad Agencies constantly tweak and research the ads messages, and purposes they
are trying to convey. As you know the advertisers do this through research. If research was
infallible wouldn’t every ad be impact and help sell a product or service? Luckily there are
some programs and established steps that help to reduce the likelihood of a failed advertising
campaign.
I had a program called TVscan that helped to depict the different demographics, ratings,
reach, and frequency of a campaign over a certain time period. This program would help me
to create detailed media plans that worked for my clients. For instance, if an advertiser told
me that they wanted to target woman 25-54, I could input this information into TVscan as an
attribute and it would run the numbers for me. It would come up with a detailed frequency,
reach, GRP etc, based on the different television shows I picked for this campaign.
Advertisers constantly try to gauge consumer sentiment about ads, by using focus groups, and
surveys. One of the problems with surveys is to make sure we are asking the question that we
think we are asking. We also need to make sure that the answer customer are giving are their
true answers and not one they think they are being forced into.
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A good example that is not advertising related, yet is market research related is the debacle
with Coke launching New Coke in the eighties. I like to delve into this example and what
happened with Coke, because it indicates to students that even though marketing research
conveys that something is true (the need for new Coke) it isn’t really true or accurate
sometimes. This is something I emphasize for students to keep in mind. The downside of
research is we might not want to believe what it is really telling us, and sometimes it is off
base, and sometimes…..
LECTURE OUTLINE
I. Introduction: the story of Healthtex (pp. 205-206)
II. The Need for Research in Marketing and Advertising (p. 206) –– Advertising is expensive and
companies want to do everything possible to help insure the investment will result in effective
advertising. Research also enables companies to determine the effectiveness of past marketing
programs and ad campaigns. Research helps to provide information so that companies can
have some information to base their decisions for this investment. Good research allows the
company to devise a sophisticated, integrated mix of product, price distribution, and
communication elements. Helps managers decide which strategies will enhance the brand’s
image and lead to grater profits.
A. What is Marketing Research (p. 206)- marketing research is a systematic procedures for
gathering, recording and analyzing new information to help managers make marketing
decisions.
(1) It helps identify consumer needs and market segments, (2) it provides the information
necessary for developing new products and devising marketing strategies, (3) it enables
managers to assess the effectiveness of marketing programs and promotional activities, (4)
and it is useful in financial planning, economic forecasting and quality control.
3 purposes of market research: (1) recruit new customers-may research different market
segments and create product attributes models to match buyers with the right products and
services.
(2) retain customers-may research using customer satisfaction studies
(3) regain lost customers-look for patterns prior to the cancellation of services and devise
a plan to regain customers.
Exhibit 7-1 Top 10 research companies by worldwide revenues (p. 207)
B. What is Advertising Research (p. 208) advertising research uncovers information needed
to make advertising decisions. The type of information that a company needs to know
prior to developing an advertising campaign:
1. How people perceive its products
2. How people view the competition
3. What brand or company image would be most credible
4. What ads offer the greatest appeal
III. Applying Research to Advertising Decision Making (p. 208)- purposes of advertising research:
Exhibit 7-2 Categories of research in advertising development (p. 209)
A7-1 (p.209)
A7-2 Healthtex advertisement demonstrating that research discovered people wanted not just
cute clothing but practical clothing as well for their children (p. 210)
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A. Advertising Strategy Research (p. 209) advertising strategy research is seeking
information about any or all of the creative mix ( product concept, target audience,
communication media and the creative message)
1. Product Concept
2. Target Audience Selection
3. Media Selection-media research is used to develop media strategies, select media
vehicles and evaluate their results
4. Message-Element Selection
B. Developing Creative Concepts (p. 211)
C. Pretesting and Posttesting
1. The Purpose of Testing-pretesting-trying the advertisement campaign in a sample of
the total audience. Posttesting-determining the effectiveness of an advertisement
campaign after it has run.
2. Testing Helps Make Important Decisions about these 4 elements of an advertisement
a. Merchandise-the product concept
b. Markets-various audience groups
c. Motives-what compels customers to act
d. Message-what an ad communicates to a customer
e. Media-media classes- print, electronic, digital interactive, direct mail, and out-ofhome.
media subclasses- newspapers, magazines, radio, television
media vehicle- the particular publication or program
media units- the size or length of an ad: half-page, full-page ads, 15 or 30
second commercials
f. Overall results- advertisers want to determine how well they met their objectives
Exhibit 7-3 Media categories (p. 214)
IV. Steps in the Research Process (p. 214)
A7-3 (p.214)
Exhibit 7-4 The Marketing research Process (p. 214)
A7-4 (p.214)
A. Step 1: Analyzing the Situation and Defining the Problem-Marketing information
system (MIS)-a sophisticated set of procedures designed to generate a continuous orderly
flow of information for use in making marketing decisions.
B. Step 2: Conducting Informal (Exploratory) Research- informal or exploratory researchinformation gathered about the market, competition and business environment that helps
to better define the problem, primary data-information gathered from the market place
about a specific problem, secondary data-information previously gathered and published,
usually for another purpose, by the firm or another organization.
1. Assembling Internal Secondary Data
2. Gathering External Secondary Data
Example: The Internet is one source of secondary data (p. 216)
3. Using Secondary Data for International Markets
C. Step 3: Establishing Research Objectives- market share- the amount of the total market
that a company controls, research objectives-statement of the problem that is
specific and measurable.
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D. Step 4: Conducting Formal Research- formal research is the type of research that occurs
when a company wants to gather information directly from the market place.
Two types of formal research:
qualitative research-where the type of information gather will provide a general
impression of the market, the consumer, or product and enables the researchers to gain
insight into both the population whose opinion will be sampled and the subject matter
itself.
quantitative research-hard numbers about specific marketing situations, the type of
information gathered will be performed with use of a survey or use some other method of
collecting quantitative data (observation, experiment and survey)
Exhibit 7-5 Differences between qualitative and quantitative research (p. 217)
1. Basic Methods of Qualitative Research-qualitative research methods open-ended
questions that elicit in-depth responses rather than yes, no questions.
a. Projective techniques-designed to understand people’s underlying or
subconscious feelings, attitudes, interests, opinions, needs, and motives by asking
indirect questions and involving customers in a situation they can express feeling
about the problem or product.
b. Intensive techniques- in-depth interview (carefully planned but loosely
structured questions that help the interviewer probe respondent’s deeper feelings)
focus group (group of 6 or more people, usually a sample of the target market,
invited to discuss a product, service, or marketing situation in a group forum).
2. Basic Methods of Quantitative Research (p. 219)
a. Observation- observation method-where a researcher monitors people’s
reactions,
Universal Product Code (UPC)-one method to collect observations
electronically by using a label with an identifying series of vertical bars with an
optical scanners
b. Experiment- experimental method- a method used to measure actual cause-andeffect relationships. Method used primarily for new product and new campaign
introductions. Difficult to use due to having to control numerous variables and very
expensive. Test market is a type of method used in an experiment. A smaller sample of
customers that we hope will represent the larger customer target market.
c. Survey-most common method of gathering primary data. The survey can provide
information on attitudes, opinions, motivations by questioning current or
prospective customers (political polls are a common type of survey)
Exhibit 7-6 Comparison of data collection methods (p. 220)
3. Basic Method for Testing Ads (p. 221)
a. Pretesting methods1. direct questioning-asking the customer about the key copy points.
2. central location tests-respondents are shown videotapes of test
commercials, usually in shopping centers and questions are asked before
and after exposure.
3. clutter tests-test commercials are shown with noncompeting control
commercials to determine their effectiveness, measure comprehension and
attitude shifts, and detect weaknesses.
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See Checklist for Methods for Pretesting Ads (p. 221)
b. The Challenge of pretesting- halo effect-rate the first ads that make an impression
the highest
Example: Tabasco pretested its exploding mosquito ad prior to running it during the
1998 Super Bowl (p. 222)
c. Posttesting methods-attitude tests-measures a campaign’s effectiveness in creating
a favorable image for a company, its brand, or its products.
d. The challenge of postesting-recall test, inquiry tests, sales tests
A7-5 An example of an Hanes Silk Reflections ad that was post tested in Starch
Readership Reports
(p. 223)
E. Step 5: Interpreting and Reporting the Findings (p. 224)
Ethical Issue: “Research Statistics Can Be Friends or Foes” (pp. 224, 225)
Exhibit 7-7 The cost of professional research (p. 224)
V. Important Issues in Advertising (p. 225)
A. Considerations in Conducting Formal Quantitative Research
1. Validity and Reliability- validity, reliability
Exhibit 7-8 The reliability/validity diagram (p. 226)
A7-6 (p.226)
B. Sampling Methods- universe, sample, sample units, random probability samples,
nonprobability samples
C. How Questionnaires Are Designed
Exhibit 7-9 Typical questions that might be used in a survey for a retail store (p. 227)
See Checklist-Developing an Effective Questionnaire (p. 228)
Exhibit 7-10 Different ways to phrase research questions (p. 228)
A7-7 (p.228)
D. Data Tabulation and Analysis
E. Collecting Primary Data in International Markets
A7-12 Demonstration of the difficulties inherent in international advertising (p. 229)
Checklist (p.221) Methods for Pretesting Ads
Checklist (p. 222) Methods for Posttesting Ads
Checklist (p. 228) Developing an Effective Questionnaire
ETHICAL ISSUE “Research Statistics Can Be Friends or Foes”(pp. 224-225)
1. Are there any circumstances that might justify a portrayal of research findings in a biased or
distorted fashion?
The answer to this question will vary. The problem with justifying anything, is no matter what we can
justify anything. If someone kills someone, there was always a reason. If someone cheats on his or
her wife in most cases it is not their fault it is the wives fault, or it was not suppose to happen.
Unfortunately people do dishonest things for different reasons, I do not believe that any research
should be distorted. I think there is plenty of ways to make money in this capitalist society without
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having to lie or manipulate anything. The sad thing is many times companies that are caught at this
type of behavior suffer dire consequences, not to mention the employees who were involved.
2. Why is it so important when discussing scientific research results with a client to report all the
results, not just those that put the client in a good light?
By having this conversation clients will hopefully appreciate the companies’ honesty and hopefully
will be able to make better decisions based on all of the information.
REVIEW QUESTIONS
1. How does research help advertisers meet the challenge of the three R’s of marketing?
The three R’s of marketing are recruiting new customers, retaining current customers and
regaining lost customers. Advertising tends to help increase the awareness of a brand or service in
a fast fashion.
2. Give an example that demonstrates the difference between marketing research and market
research? (p.206)
Marketing research is a systematic procedure for gathering, recording and analyzing new
information to help managers make marketing decisions. Market research is information
gathering about a particular market or market segment. The difference is the scope of the
information gathered.
An example of marketing research would be answering the question: Do customers prefer liquid,
bar or powdered soap? An example of market research would be answering a narrower question
about a particular market or market segment: How do adolescents prefer to use Dial soap?
3. Which kind of research data is more expensive to collect, primary or secondary? Why? (p. 215)
Primary data is more expensive to collect, because we are acquiring this data from scratch.
Secondary data is available through many different published outlets.
4. How have you personally used observational research? (p. 219)
The answer to this question will vary based on students’ experiences.
5. Do people use quantitative or qualitative research to evaluate movies? Explain. (Exhibit 7-5, p.
217-218)
The use both types of research to evaluate movies. The box office draw is usually analyzed
compared to other movies to see how well the movie did. Critics will then go over the movie and
how they felt about it and gauge audiences’ reactions (qualitative).
6. Which of the major surveying methods is most costly? Why? (p. 217-218).
I believe that qualitative can be more costly, because it takes longer to do and it is more involved
then running a data set (quantitative).
7. How could the halo effect bias a pretest for a soft-drink ad? (p. 222)
If consumers were first impressed by the ad, it can make a real difference in the way they view the
soft drink. It does not necessarily mean they would buy the soft drink.
8. When might research offer validity but not reliability? (p. 225-226)
Research can be conducted and suggest validity. The true test of reliability is when an experiment
can be repeated.
9. How would you design a controlled experiment to test the advertising for a chain of men’s
clothing stores? (p. 228-229)
I like to use Likert Scales because they are easier in my opinion to validate. I would then find the
variables that I was trying to test and implement them in the scales.
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10. When could research help in the development of an advertising strategy for an international
advertiser? Give an example. (p. 228-230)
The book has some excellent examples on the above page numbers. The key is standardarization
as Arens explains. 99% of international sales is knowing your market. As the book depicted
Mattel was having trouble selling Barbie, yet when Takara (a Japanese company) took the license
in Japan they reduced Barbie’s’ breasts and legs. This led to selling over 2 million dolls.
EXPLORING THE INTERNET
The Internet Exercises for Chapter 7 address the following areas related to marketing and advertising
research: marketing research organizations and publications (Exercise 1) and market research
companies (Exercise 2)
1. Marketing Research Organizations and Publications
Many advertisers choose to perform their own research. When collecting research data by
themselves there are a number of advertising- and marketing-specific research sources available
on the Web. Visit the research organizations and publications’ websites and answer the questions
that follow.
 Advertising Research Foundation (ARF) www.arfsite.org
 Journal of Advertising Research www.arfsite.org/webpages/jarpages/jarhome.htm
 American Marketing Association www.marketingpower.com
 Marketing Research Association (MRA) www.mra-net.org
a. What research group sponsors the site? Who is/are the intended audience(s)?
b. What is the site’s purpose? Does it succeed? Why?
c. What range of services is offered?
d. What is the organization’s purpose?
Sample Answer:
2. Market Research Companies
marketers and advertisers depend heavily on timely and accurate research in preparation for
advertising planning. There are many market research companies available to serve nearly every
marketing and advertising research need. Visit the following syndicated and independent research
companies’ websites and answer the questions that follow.
 A.C. Nielsen www.acnielsen.com
 ASI market Research Center www.asiresearch.com
 Audits & Surveys Worldwide www.surveys.com
 Burke www.burke.com
 Dun & Bradstreet www.dnb.com
 FIND/SVP www.findsvp.com
 The Gallup Organization www.gallup.com
 Millward Brown IntelliQuest www.intelliquest.com
 International Data Corporation (DC) www.idc.com
 J.D. Power and Associates www.jdpower.com
 Research International www.research-int.com
 Roper ASW www.roper.com
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
a.
b.
c.
d.
e.
SRI Consulting www.sriconsulting.com
What type of research does the company specialize in?
What industries/companies would be best suited to utilize the company’s resources?
What specific services, products, or publications does the company offer?
Are the information services offered by the company primary or secondary data?
How useful is the company for conducting advertising and marketing research? Why?
Sample Answer:
A.C. Nielsen
a. A.C. Nielsen specializes in consumer research.
b. The company’s services are most appropriate for large corporations, advertisers, advertising
and media agencies, and various broadcast media, who rely heavily on the company’s wealth
of syndicated media and retail research.
c. A.C. Nielsen offers the following services:
 Media Measurement
 Retail Measurement
 Marketing and Sales Applications
 Merchandising Services
 Internet Research Services
 Consumer Panels
 Modeling and Analytics
 Information delivery Services
 Customized research
 The company offers both primary and secondary data to its clients.
d. The information services offered by the company are primary data.
e. A.C. Nielsen is extremely useful for advertisers and marketers because it is the world's leading
provider of market research, analysis, and information to the consumer products and services
industries. It has more than 9,000 clients in more than 100 countries, and has become the
standard by which many professionals trust and depend on to increase sales and profits.
IMPORTANT TERMS
advertising research, 208
advertising strategy research, 209
attitude test, 223
central location test, 221
clutter test, 221
direct questioning, 221
experimental method, 220
focus group, 218
formal research, 217
halo effect, 222
message, 213
motives, 213
nonprobability samples, 226
observation method, 219
postesting, 213
pretesting, 212
primary data, 215
projective techniques, 218
qualitative research, 217, 218
quantitative research, 217, 219
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in-depth interview, 218
informal research, 215
inquiry test, 223
intensive techniques, 218
marketing information system (MIS), 215
marketing research, 206
markets, 213
media classes, 213
media research, 211
media subclass, 213
media units, 214
media vehicles, 213
merchandise, 213
random probability samples, 226
recall test, 223
reliability, 226
sales test, 223
sample, 226
sample unit, 226
secondary data, 215
survey, 220
test market, 220
Universal Product Code (UPC), 219
universe, 226
validity, 225
ANCILLARY
ACTIVITIES & EXERCISES
1. Have students contact a local business in the area regarding how the company conducts market
research. Have the students present a 10-minute presentation to the class on the results of their
discussion.
2. This is a fun exercise! Have the students create a survey online using the trial version of
Zoomerang available at http://www.zoomerang.com/Login/index.zgi. Have the students send the
survey via the email tools of Zoomerang and have the other students answer the survey before the
next class meeting. Have students bring the results of the survey and try to give an indication of
what the results mean. Discuss with students the pros and cons of using the web as a research
vehicle.
3. Have students select an advertisement in a publication that they enjoy reading featuring a product
that is of interest to them. Have them list the kinds of information the advertiser might have
wanted to appear in the advertisement.
4. Have the students choose a local small business owner and ask permission to develop a survey
questionnaire about the store or a particular product/service offered. Ask current and prospective
customers the questions. The students could work in teams, with one asking customers who
entered the store and another student positioned on a nearby corner asking the same questions of
prospective customers. The team could then compile a summary of the results to be shared with
the business owner and the class.
5. Randomly select ten to twelve students to participate in a focus group. The rest of the class will
act as the observers. The instructor, who will act as the moderator, will hand out a list of topics to
lead the group. Ensure that all members of the group have the opportunity to participate in the
discussion. The objective of a focus group is to have people talk candidly about some topic with
one another while observers evaluate the interview. After about 30 minutes, the observers should
be asked their reaction and input to the interview.
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DEBATABLE ISSUE
Is Advertising Research Used Unethically to Manipulate Consumers?
Research has an important role in advertising. Its findings are used to support advertisers' claims and
to inform consumers which products are superior. Since these findings influence consumer-buying
decisions, their accuracy is essential. But some critics charge that advertising research is not always
conducted or interpreted honestly. They claim it is used unethically to manipulate and mislead
consumers.
PRO
Advertising research is used unethically to manipulate consumers because ...
Researchers sometimes use statistically inadequate samples to obtain findings, such as "4 out of 5
doctors recommend brand X." What they fail to reveal is that only a small fraction of the total number
of doctors were surveyed. A far larger sampling must be taken to obtain valid predictions.
Product testing is often conducted unscientifically or under unnatural conditions. Fuel economy claims
made in new car commercials, for example, may result from tests conducted in controlled
environments that fail to duplicate normal stop-and-go traffic conditions. Thus, these claims rarely
coincide with car buyers' experiences.
Just as research is used to determine which words convey the right image or set the right moods, it can
also be used to find euphemisms for describing negative results. This allows the advertiser to be less
than forthright.
CON
Advertising research is not used unethically to manipulate consumers because ...
Advertisers are very careful to avoid using inadequate or inappropriate research samples since the
findings produced by such faulty trials could cause them to make erroneous marketing and advertising
decisions. These could result in weak consumer response, poor product sales, and ultimately waste
their advertising budget.
Most researchers are scientists who take professional pride in their work. They strive to achieve
accurate and representative findings by applying their knowledge of advertising, marketing, behavioral
science, and mathematics. It is unlikely they would jeopardize their reputations by resorting to
unethical practices.
The main objective of researchers in experimenting with words and images is to identify and eliminate
communication barriers. This understanding allows the advertiser’s message to effectively
communicate the product’s utility and benefits as quickly as possible.
Claims that researchers skew data to prove their point does not necessarily mean that the results are
inaccurate. Each researcher has their individualized style of analyzing complex data. And even the
best researchers may inadvertently distort findings because of the inherent complexity of high-level
number crunching. These situations can occur, for example, when choosing a methodology for
averaging test results — choosing to use the mean can produce different answers than using the
median or mode as an averaging technique. Researchers are generally aware of the consequences of
mixing various testing and analysis techniques. However, as complexity rises, they may use their own
special blend of techniques — and even arrive at different answers — but still be ethical.
Consumers are intelligent and aware enough to detect distorted research. Besides, advertising is not
the only influence on their buying decisions. Word of mouth, brand reputation, and previous product
experience greatly influence consumer-buying decisions.
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Questions
1. What other arguments, pro and con, can you offer?
2. What personal experiences have you had that cause you to feel that one particular side of this issue
is stronger?
IMAGES FROM THE TEXT
Images are available as color acetates through your local McGraw-Hill/Irwin sales
representative.
A7-1
A7-2
A7-3
A7-4
A7-5
A7-6
A7-7
Exhibit 7-1
Exhibit 7-3
Exhibit 7-4
Exhibit 7-8
Exhibit 7-10
Top 10 research companies by U.S. research revenues in 2001 (p. 207)
Healthtex ad (p.210)
Media categories (p. 214)
The marketing research process (p. 214)
Hanes ad (p.223)
The reliability/validity diagram (p. 226)
Different ways to phrase research questions (p. 228)
REFERENCE LIBRARY
Located on the McGraw-Hill
Contemporary Advertising website:
www.mhhe.com/arens04
RL 7-1
RL 7-2
Marketing research sources for new vitamin product development
Software for PC research analysis
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