Marketing Research Process

Chapter 29

What factors influence restaurants to add low fat menu items?

How can they determine success of items?

Journal Entry

Steps in the MR Process

1. Defining the problem

2. Obtaining data– Primary

– Secondary

3. Analyzing the data

4. Recommending solutions to the problem

5. Applying the results

Step 1: Defining the Problem

• Business clearly identifies problem or issue & the information that is necessary to solve

• Ex. Sales are declining obtain info on who is buying product, competitors, & why customers stopped buying products

Objectives

• Used to develop research questions

• Objections & questions must correlate

• Ex. Objective: Determine Guest Satisfaction

• On a scale of 1 to 5 (5 being excellent, how would you rate the resort facilities?

Step 2: Obtaining Data

• Data (facts) collected and examined in terms of problem(s) being studied

• Two types of data: – Primary – Secondary

What is primary and secondary data?

• Primary Data: collected 1st time by researcher; specifically for research project; new data gathered to help solve the problem at hand.

• Secondary Data: Published accessible data from a variety of sources for research and other purposes

• Data collected for another purpose, but may be reanalyzed in a subsequent study

How do you Obtain•Individual company research•Commercial research•Nielson, Arbitron, MR firm etc.

How do you Obtain•Internal Sources (within company•External Sources (gov’t, business journals, library, trade publications)

Advantages•Specific to your study•First hand information•May get money if successful and someone else buys research

Advantages•Obtained quickly•Purchased from info companies•Less expensive

Disadvantages•Takes long to obtain•Expensive•More work involved

Disadvantages•Existing data may not be suitable or available•Data may be dated (census every 10 years)

Primary Data Secondary Data

Primary Data is collected by 3 methods

1. Survey method

2. Observation method

3. Experimentalmethod

Survey Method

• Information gathered directly through survey• Most used method• Sample: a part of the target populations that

is assumed to represent the entire population– Size depends on money and time– Larger the sample more accurate the results

Data collection instruments

• Personal interview: face-to-face

• Focus group: 8-12 people who evaluate product/service/ads with moderator

• Telephone interview

• Mail survey

• Internet Survey

Type of Collection

Description Advantages Disadvantages

Personal

Interview

Face-to-face questioning

People prefer to talk to you not write

expensive

Focus

Group

8-12 people with

moderator

People prefer to talk

Expensive; only as good as leader

Telephone

Interview

Calling to give survey on phone

Quick, efficient, inexpensive

Many unwilling to respond on phone

Mail Survey Sending survey by mail

Inexpensive, reach large audience

10-20% return rate

Internet-

Computer

Survey

Web polls, invitation only, discussion groups

Quick, eliminate data entry

Limited to individuals who have web access

Observation Method

• Actions of people are observed & recorded

• Get information about customer behavior & preferences

• View the interaction between customers & employees

• If observation is properly performed, results are often better then survey technique

• What people actually do is usually better than what they SAY they will do!

• Cannot measure attitude; only provides info on what person does, not WHY they do it

Observations can be…

Point of Sale Research: Observe shoppers for specific patterns and then approach to ask questions when finished

Combines natural observation with personal interviews

Experimental Method

• Researchers observe under controlled conditions

• Change 1 or more variables & keep others constant

• Used for new package design, new promotions, media usage

• Used least often & costly• People respond different in

controlled situations• Research less valuable

Step 3: Analyzing the Data

• Data Analysis: compiling, analyzing, and interpreting of the results of primary and secondary data collection

Step 4: Recommending Solutions to the Problem

• Successful research results in information that helps managers make decisions about problems

• Conclusions drawn from research are usually present at report

Step 5: Applying the Results

• If data gathered does not help answer questions, results are inconclusive and more research is needed

• If data gathered does help, recommendations are acted on and monitored

Constructing the Questionnaire they should have…

• Validity: when the questions asked measure what was intended to be measured– All questions should relate to problem at

hand

• Reliability: research technique produces nearly identical results in repeated trials– Question should ask same type of

information of all respondents

Writing Questions

• Open-ended: respondents construct own response• Forced-choice questions: choose answer from

possibilities given on questionnaire– Yes/no questions– Multiple choice– Rating scale– Level of agreement– Closed-ended– Partially closed ended– Belief– Attitude

Guidelines for Writing Questions

• Clear and brief

• Clear directions• Use same rating

scale

• Should have different types of questions– MC, T/F, Y/N, open

• Good visual appearance

• Items numbered

• No more than one page

Administering/Distributing Questionnaire

• Brief explanation of survey purpose at top

• Selection is unbiased (every 3rd person)

• Dress business like• No probing questions• Polite• Do not be offended if people

say NO• Carry clipboard or folder• Pens/Pencils for customers