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Chapter 8 Marketing Research and Information System Chapter Outline Nature of Marketing Research Marketing Information Sources Secondary Research - Private Sources - Public Sources Primary Research Sampling Chapter Outline - Basic Methods of Data Collection Observation Questioning Measurement Conceptual Equivalence Instrument Equivalence Linguistic Equivalence Response Style Measurement Timing External Validity Chapter Outline Marketing Information System - System Development - Desirable Characteristics - Subsystems Marketing Research Marketing research involves the “systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services.” This definition provides a useful description of the nature of marketing research, but it fails to include preresearch analysis, which is an important aspect of the research process. 5 STEPS for proper Research Step 1: Identifying the Research Problem Step 2: Developing a Research Plan Step 3: Collecting Data Step 4: Analyzing Research Data Step 5: Presenting The Findings Marketing Information Sources Primary data - information collected firsthand to answer specific, current research questions - advantages: specific, relevant, and up-to-date information - disadvantages: high cost and amount of time PRIMARY RESEARCH When secondary data are unavailable, irrelevant, or obsolete, the marketer must turn to primary research. One decision that must be made is whether to compile or buy the information. In other words, the question to be decided is whether outside agencies such as marketing research firms should be used to collect the information needed or whether the firm should use its own personnel for this purpose. Marketing Information Sources Secondary data - information already been collected for other purposes - advantages: lower cost and time - disadvantages: less meaningful data Basic Methods of Data Collection There are two principal methods for the collection of primary data: (1) observation, and (2) the administration of survey questions. In the case of observation, respondents are visually observed, regardless of whether they realize it or not. When the survey question method is used, respondents are asked certain questions relating to their characteristics or behavior. OBSERVATION The principal advantage of the observation method is that, on a theoretical basis, it is supposed to be more objective than the use of survey questions. When using observation, a researcher does not have to depend on what respondents say or are willing to say. Another reason why the observation method tends to yield more objective information lies in the fact that there is no influence exerted by an interviewer, regardless of whether such influence would be real or imagined by respondents. QUESTIONING With questioning, data can be collected quickly and at a minimum cost because the researcher does not have to waste time waiting for an event to happen to be observed. The survey question method is also quite versatile, because it can be used to explore virtually all types of marketing problems. Survey questions can be employed to acquire information on the past, present, and future. They are even useful to learn about a consumer’s internal workings – such as motives and attitudes – that are not immediately observable. There are three basic ways of administering questions: personal interview, telephone interview, and mail questionnaire. Basic Methods of Data Collection Observation - advantages: more objective data - disadvantages: not as versatile, higher cost, and more time Questioning - advantages: versatility, speed (time), and cost - disadvantages: less objective data Measurement Reliability - instrument yielding consistent results Internal Validity - instrument measuring what it is supposed to measure External Validity - ability to generalize research result to other populations Measurement Issues Conceptual Equivalence - a concept being interpreted in the same manner in various cultures Functional Equivalence - an object performing the same function in various countries Definitional or Classification Equivalence - an object being defined or classified in the same way in various countries Measurement Issues Instrument Equivalence - emic instrument: instrument designed to be used in only one culture - etic instrument: instrument designed to be applied in various cultures Linguistic Equivalence - translation that is equivalent to the original language Measurement Issues - Response style acquiescence extreme responding use of the middle response category on the rating scales socially desirable responding Measurement Timing simultaneous sequential independent MARKETING INFORMATION SYSTEM A marketing information system (MIS) is an integrated network of information designed to provide marketing managers with relevant and useful information at the right time and place for planning, decision making, and control. As such, the MIS helps management identify opportunities, become aware of potential problems, and develop marketing plans. The MIS is an integral part of the broader management information system. For example, Benetton’s stores around the world are linked by computer. When an item is sold, its color is noted. The data collected make it possible for Benetton to determine the shade and amount of fabric to be dyed each day, enabling the firm to respond to color trends very quickly. In spite of computer and other advanced technologies, “dark age” methods of data collection and maintenance are still prevalent. There is often a misconception that an MIS must be automated or computerized. Although many firms’ systems are computerized, it is possible for a company to set up and use a manual system that can later be computerized if desired. With modern technology and the availability of affordable computers, it seems quite worthwhile for an international firm to install a computerbased information system. Yet no one should assume that the computer is a panacea for all system problems, especially if flaws are designed into the MIS. A poorly designed system, whether computerized or not, will never perform satisfactorily.