Marketing 302 Ch 1

Marketing Research
The function that links an organization to its market through the gathering of information
How do organizations use marketing research?
1. To identify new product opportunities
2. To develop advertising strategies
3. To implement new data-gathering methods to better understand customers
4 Ps
Price, Promotion, Product, Place
Perceptual Mapping
A technique that is often used to picture the relative position of products on two or more dimensions important to consumers in making their choice to purchase

It reflects the criteria customers use to evaluate brands, typically representing major product features important to customers in selecting products or services

What 2 questions does product testing answer?
1. How does a product perform for the customer?
2. How can a product be improved to exceed customer expectation?
Retailing Research
Research investigators that focus on topics such as trade area analysis, store image/perception, in-store traffic patterns, and location analysis

Helps retailers know what kind of merchandise to stock

Behavioral Targeting
Displaying ads at one website based on the users previous surfing behavior
Shopper Marketing
Marketing to consumers based on research of the entire process consumers go through when making a purchase
3 most common research tactics in integrated marketing communications
1. Advertising effectiveness studies
2. Attitudinal research
3. Sales tracking
Benefit and Lifestyle studies
Examine similarities and differences in customers’ needs. Researchers use these studies to identify two or more segments within the market for a particular company’s products
What are 5 important things to consumers across a wide variety of services contexts?
1. reliability
2. empathy
3. responsiveness
4. assurance
5. tangibles
Internal research provider
Organizational units that reside within a company
ex) IBM, Proctor and Gamble, Kraft Foods, Kodak all have this
External research provider
Firms that operate on a fee basis and commonly submit a research proposal to be used by client for evaluation and decision purposes.

Do everything from study design, questionnaire production, interviewing, data analysis, and report preparation (more objective approach)

Customized Research Firms
Research firms that provide tailored services for clients
Standardized Research Firms
Research firms that provide general results following a standard format so that results of a study conducted for one client can be compared to norms

ex) AC Nielsen, Burke Market Research, Arbitron Ratings

Syndicated Business Services
Services provided by standardized research firms that include data made or developed from a common data pool or database

ex) purchasing diary panels, audits, and advertising recall data

Skills searched for by employers
1. The ability to understand and interpret secondary data
2. Presentation skills
3. Foreign-language competency
4. Negotiation Skills
5. Computer proficiency
Major sources of ethical
1. The research information providers
2. The research information users
3. The respondents
3 potential ethical pitfalls for research providers
1. price issues
2. client confidentiality issues
3. use of “black box” methodologies
Branded “black-box” methodologies
Methodologies offered by research firms that are branded and do not provide information about how the methodology works
Curbstoning
Data collection personnel filling out surveys for fake respondents

Occurs when the researcher’s trained interviews or observers, rather than conducting interviews or observing respondents’ actions as directed in the study, will complete the interviews themselves or make up “observed” respondents’ behaviors

Abuse of respondents
Research firms may not provide the promised incentive (contest awards, gifts, or money) to respondents for completing interviews or questionnaires

State the interview is short when in reality it’s very long

Subject debriefing
Fully explaining to respondents any deception that was used during research
Sugging / Frugging
“Research” conducted for the purpose of collecting names

Completely unethical and has a negative impact on the entire industry because it leads to consumers turning down legitimate research inquiries because they do not want to be solicited

Marketing Research Association (MRA)
Association that has developed guidelines for Internet marketing research issues

Prohibit market researchers from de-anonymizing data

De-anonymizing data
Combining different publicly available information usually unethically, to determine consumers identities especially on the Internet
The primary unethical practice of respondents or subjects is…
providing dishonest answers or faking behavior
5 major trends are becoming evident:
1. Increased emphasis on secondary data collection methods
2. Movement toward technology-related data management (optical scanning data, database technology, customer relationship management)
3. Expanded use of digital technology for information acquisition and retrieval
4. A broader international client base
5. Movement beyond data analysis toward a data interpretation / information management environment
Which is NOT the reason why marketing research is better than managerial intuition?
The industry evolves very quickly and the decisions are under time pressure
The research conducted for Akron’s Children’s Hospital to determine the most effective communication messages to use in a new ad campaign being developed by the hospital is an example of _____.
Promotion research
Which is a technique that is used to picture the relative position of products on two or more product dimensions important to consumer purchase decisions?
Perceptual Mapping
Research investigations that focus on topics such as trade area analysis, store image/perception, in-store traffic patterns, and location analysis are collectively called
Retailing research
A marketing firm launched a major advertising campaign to position its brand as superior to competitors. After the campaign had run for 6 months, the marketing team wanted to use marketing research to determine if it had achieved its objective. Which function of marketing research is carried out by the firm?
Evaluation of marketing actions
What is true of marketing research?
It draws heavily on the social sciences both for methods and theory.
Which of the following is ethical in marketing research practices?
a) de-anonymizing
b) frugging
c) sugging
d) curbstoning
e) debriefing
Debriefing
Marketing research depicts the Saturn Motorcycle shopper as a middle-aged, college-educated individual with an average annual income of $75,000. This is an example of _____
Market segmentation research
In the case of “Oreos entering the China market”, which of the following is NOT the reason why Oreos began a marketing makeover?

a) Little emotional attachment to Oreos
b) The total demand for cookies and crackers shrunk
c) The local did not like the taste of Oreos
d) The market share of Oreos in cookies and crackers dropped

b) the total demand for cookies and crackers shrunk
Which of the following terms refers to an information process with respect to a particular “geographical area”?

a) area research
b) geographical research
c) market research
d) marketing research

Market research
Test marketing _____.

A) identifies two or more segments within the market for a particular company’s products.
B) provides information for decisions on product improvements and new-product introductions.
C) includes choosing and evaluating locations, channels, and distribution partners.
D) focuses on database development through optical scanning at the point of purchase.
E) involves understanding how one’s target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to the benefit of all stakeholders.

B. provides information for decisions on product improvements and new-product introductions.
Which of the following pertains to the creation of a perceptual map?

A. Retailers focus on database development through optical scanning at the point of purchase.
B. Marketers have to work on branding of both new and existing products.
C. Marketing research considers the total performance of a promotional program as each effort often affects others in the promotional mix.
D. Consumers have to indicate how similar or dissimilar a group of relevant brands or products are to each other.
E. Consumer behavior activities embedded in a cultural context are studied by marketers using ethnographic research.

D. Consumers have to indicate how similar or dissimilar a group of relevant brands or products are to each other.
A new supermarket, The Factory, has installed closed circuit cameras and TVs to find out the category of products and the specific brands favored by customers. This is done so that space allocated to different products can be revised. This is an example of:

A. perceptual mapping.
B. test marketing.
C. retailing research.
D. logistical assessment.
E. demand analysis.

C. retailing research.
Sally was browsing different kinds of skirts at Pop.com. Based on Sally’s action, Little Kite Inc., an apparel company, displayed ads of their various skirts. Which of the following techniques was applied by Little Kite Inc.?

A. Perceptual mapping
B. Test marketing
C. Behavioral targeting
D. Shopper marketing
E. Concept positioning

C. Behavioral targeting
The three most common research tasks in integrated marketing communications are advertising effectiveness studies, sales tracking, and:

A. in-store traffic patterns.
B. attitudinal research.
C. location analysis.
D. trade area analysis.
E. store image studies.

B. attitudinal research.
Along with segmentation studies, which of the following would provide marketers with detailed information about cultures or subcultures that businesses seek to serve?

A. Behavioral targeting
B. Shopper marketing
C. Curbstoning
D. Sugging
E. Ethnography

E. Ethnography
Services provided by standardized research firms that include data made or developed from a common data pool or database are called _____ services.

A. debriefed
B. syndicated business
C. customized
D. highly tailored
E. branded “black-box”

B. syndicated business
Aura Inc. is a research firm that conducts audits of unauthorized software for a number of banks. It uses a standard format for functioning across all banks. Aura Inc. is a(n) _____ research firm.

A. customized
B. highly tailored
C. standardized
D. adaptable
E. convertible

C. standardized
The practice of data collection personnel filling out surveys for fake respondents is called _____.

A. sugging
B. frugging
C. curbstoning
D. debriefing
E. de-anonymizing

C. curbstoning
Research providers may occasionally conduct research that does not meet professional standards because clients:

A. obtain first drafts of questionnaires and use the information to perform the research project themselves.
B. may not provide sufficient budgets to do research projects.
C. overlook the long-term promises made to the research companies.
D. are tempted to overstate results of a marketing research project.
E. are unable to get sufficient insight into the method’s strengths and weaknesses prior to purchase.

B. may not provide sufficient budgets to do research projects.
Which of the following illustrates abuse of respondents in marketing research?

A. Selling of unnecessary or unwarranted research services
B. Not providing the promised incentive for completing interviews or questionnaires
C. Having friends and relatives fill out surveys
D. Not using the designated sample of respondents but rather anyone who is conveniently available to complete the survey
E. A researcher revealing its client to respondents

B. Not providing the promised incentive for completing interviews or questionnaires
Which of the following illustrates an unethical activity of the client?

A. Decision makers requesting detailed research proposals from research providers
B. Not using the designated sample of respondents but rather anyone who is conveniently available to complete the survey
C. Obtaining first drafts of questionnaires and using the information to perform the research project themselves
D. Prohibiting market researchers from de-anonymizing data
E. Not following up on the established callback procedures indicated in the research procedure

C. Obtaining first drafts of questionnaires and using the information to perform the research project themselves