Marketing Research – Exam 1: Intro, Secondary and Primary Data

Marketing definition
Activity and processes for creating, communicating, delivering, and exchanging offerings for customers, clients, partners, and society

*Create value to customers

Marketing Research definition
links consumers, customer, and public to the marketer through information (identify/define marketing opps/ probs)

specifies the info required to address issues, designs methods to collect the info, manages and implements data collection process, analyzes results & communicates implications

Purpose: Help managers MAKE BETTER DECISIONS during marketing management


Marketing Management (mix)
4 Ps
Product (product policy)
Promotion (communication)
Price (pricing policy)
Place (distribution policy)
Who does marketing research
– Large companies (Proctor and Gamble)
– Specialized marketing firms (Nielsen)
– government agencies and universities
WHY it’s important?
*success rate of new products (10-20%) of new products survive)

*marketing research is a way to increase survival rate and probability of success

2. Research Process, Research Design, Exploratory Research
Market Research Process
Step 1: Problem Formulation
Step 2: Research Design
*Stages in Marketing Research (6)
1. FORMULATE problem
2. Determine Research DESIGN
3. Design data collection METHOD and forms
4. Design sample and COLLECT data
5. ANALYZE and interpret data
6 Prepare research report
Formulate Problem-

Decision problem?
Research problem?

Decision problem: determine WHAT needs to be done

ex: should a new product be produced

Research problem: Determines what INFORMATION is needed and how to obtain it

ex: determine consumer preferences and purchase intentions for new product
determine consumer preferences for competition

New Coke — what did they do wrong in formulating problem?

1. Taste NOT ONLY factor
2. During marketing research consumers were not told it would replace old taste

Research Design definition
Framework/ blue print for conducting marketing research project

—- details PROCEDURES necessary for obtaining the information needed to STRUCTURE or SOLVE marketing research problems

Research Design Types: (3)
Exploratory Research

Methods (5)?



WHEN LITTLE IS KNOWN! Ways of getting ideas and insights about research problem and understanding research problem!

literature search, interview, focus groups, observation, projective tests

Characterisitics: less structured, flexible, non conclusive

Purpose: discover new insights and ideas
– develop research problems

Key informant interview?

Individual Depth Interviews?
(advantages – 3)
(disadvantage – 1)

Key informant: talk to insiders (company executives, sale reps)

– generate rich, deep, in-depth information
– LESS influence from others
– good for sensitive topics

– time consuming

Descriptive Research

Methods? (2)

Methods: surveys, scanner data

Characterisitics: pre planned, structured, conclusive

PURPOSES: determine market characteristics/ functions
*Make specific PREDICTIONS

Causal Research -methods, characteristics, purpose?
Methods: Lab experiments, field experiments
Characterisitics: manipulate + control variables
PURPOSE: Determine cause and effect
Exploratory Research (4 types)
Helps understand research problem
– develop hypothesis
– help in questionnaire development
– define concepts

*focus groups
*interviews (individual in depth)
* projective tests
* observation

Focus Groups?

Advantages (5)
Disadvantages (4)

Homogenous group (8-12 ppl)

– synergy (group dynamic stimulates ideas)
– fresh, unstructured reactions
– preference for verbal > write communication
– REDUCED costs
– quick to initiate

– requires well trained moderator
– relies on intrepretation
– small sample size
– suggestive, not conclusive

Projective Tests (3)
Ask individual to: describe, expand upon, build story on

– Word Association: judged on frequency, response time, # of participants that don’t respond

– Sentence completion
– Story Telling with pictures

Observation (2)
Need behavior over opinion data

– mystery shopper
– eye tracker

Secondary Data definition
Data which has already been collected for OTHER purpose than problem at hand
Primary data definition
Originated by researcher for SPECIFIC purpose of addressing problem!
Common Objectives of Secondary Data (2))
Fact Finding
– identifying consumption patterns (and tracking trends)

Model Building
– forecasting sales (estimate market potential, select trade areas/ sights)

Internal Secondary data
Types? Information Received? (4)
START WITH INTERNAL DATA~~~ data that originates within the firm
1. Cash register receipts –> type (cash or credit) and dollar amount of transaction
2. Sales person call reports –> products discussed + customer product needs + usage
3. Sales person expense reports (expenses by day, item)
4. warranty cards (indirect measure of dealer sales, customer information ex–> old age buy screwdrivers)
Usage of receipts data (7)
1. analyze POPULARITY of products
2. behavior pattern across SEASON
3. behavior pattern across TIME/DAY
4. average spending/ receipt
5. purchase sensitivity of promotion
6. compare store brand and national brand
7. popularity of category
External Secondary Data

– Published (5)

– Commercial (3)

outside sources

– directories
– periodicals
– government agencies
– libraries
– internet

– diary panel data
– scanner data
– advertising exposure

Commercial: Info provided from diary panel data? (6)
document household monthly purchases (families choose to participate)

– SIZE of market
– MANUFACTURER and brand share over time
– brand LOYALTY and switching behavior
– FREQUENCY of purchase and amount purchased
– influence of price DEALS and AVERAGE price paid
– characteristics of HEAVY buyers

Commercial: Scanners

Variables (5)

grocery and retail scanned purchases made by consumers; SCANTRACK AC Nielsen

Variables :

store #
brand purchased
quantity purchased
whether any brands on sale
coupon used

Published External Secondary Data (3)
1 Census. gov
– Census of Finance, Insurance, Real Estate…

2 Census of Population
3 American Community Service

**Problem of Accuracy with Secondary Data

3 criteria to judge quality of secondary data?

1. Source – primary source is better than secondary source

2. PURPOSE of publication – if data used to promote sale: suspected

3. General evidence of quality – primary source should provide detail description of methodology (definitions, data collection forms, methods of sampling)

Primary Data vs. Secondary Data
Pros and Cons (2 each)
Secondary Data
PROS – save time and money
CONS – not specific to problem, not timely

Primary Data
PROS – tailored to needs, may generate more insights
CONS – time consuming, expensive

Types of Primary Data (6)
1. Demographic and Socioeconomic Age, gender, race, country of birth, education, occupation, income, etc
– used to cross clarify
predict consumer preferences

2. Psychological and Lifestyle – personality and lifestyle; Activities, Interests, and Opinions
Firm can have more effective strategies to reach target market

3. Attitudes and Opinions – about or towards a product (Do you like Starbucks coffee)

4. Awareness/ Knowledge – about product availability, price, manufacturer, competitive products
*unaided recall (NO prompting)
*aided recall (peripheral prompting)

5. Purchase Intention – definitely will buy, probably will, unlikely, def will not, undecided

6. Purchase/ Usage behavior – WHO in household is buying it, How/when where use it? How often use it? Complementary products?

Values and Lifestyles (VALS)

Classified by what 2 things?

8 segments

agree or disagree: “I like variety”
“I like being in charge”

Primary Motivation – ideals, achievement, self expression

Resources and innovativeness (high vs. low)

1. innovators
2. thinkers (high resource, ideal)
3. believers (low resource, ideal_
4. achievers (high resource, achieve)
5. strivers (low resource, achieve)
6. experiencers (high resource, self express)
7. makers (low resource, self expression)
8. survivors

Unaided Recall?
Aided Recall?
Unaided recall: no prompting
(tell me a product or brand you recently saw an ad for)

Aided recall: peripheral prompting
(did you see ad for PCs)

Recognition: actual product
(did you see ad for Dell XPS?

Types of Primary Data collection methods (2)
1. Communication – ask and interact
2. observation – watch
Communication vs. Observation
(versatility, speed/ cost)

Observation advantages?

– versatility; demographic, socioeconomic, lifestyle, attitude, opinion, intention, motivation
– speed: greater degree of control over data gathering activities
– sometimes lower cost in surveys

– versatility: watch real behavior
– advantages over communication: objective and accurate

Communication Methods – structure and disguised definition
Structure: set responses (survey)
unstructured – free response

Direct: amount of knowledge about purpose of study
undisguised – purpose known
disguised – purpose unknown

Direct, structured?
Direct, unstructured?

Indirect, structured?
Indirect, unstructured?

Direct, structured – questionnaires (most frequent)
Direct, unstructured – interviews, open ended Qs

Indirect, structured – Implicit Association Tests (least used)
Indirect, unstructured – Word association, sentence completion, motivation research, story telling

Questionnaires by method of administration (4)
personal interview
telephone interview

email survey

Observation definition:
Recording behavioral patterns WITHOUT questioning/ communicating with participants
What can be observed? (5)
PHYSICAL actions
(shopping patterns, viewing TV)

VERBAL behavior (sales convo)

SITUATIONAL factors (parent child interaction in store vs out store)

TEMPORAL factors (time shopping, time driving)

EXPRESSIVE behaviors (tone of voice, smiling)

2 Types of observation
1. People watching
2. Machine’s watching people – eye tracking
3 Basic Considerations for Primary Data

Where does observation and communication fall into these categories?

1. Versatility – ability to collect information on many types of data of interest to marketers **communication**

2. Cost and Speed – How much how fast?
**communication often faster, surveys cheap**

3. Data quality – How objective and accurate?
**observation objective and accurate**