Chapter 07 Marketing Research

Chapter 07 - Marketing Research Chapter 07 Marketing Research Multiple Choice Questions The term "marketing research" refers to: A a strategic way of developing a marketing plan by mixing the controllable elements B an area of study concerned with managing the resources and activities of a firm C a series of actions that help in enhancing the performance of firms D a set of techniques for systematically collecting, recording, analyzing, and interpreting useful data E a procedure that a marketer follows when developing a market plan Marketing research is a key prerequisite to successful decision making; it consists of a set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas 7-1 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process Political consultants have been using market research for decades to help their candidates understand: A who makes up the voting public and how to reach them B what ethical lapses they can get away with C which consumers spend the most money D what are the food habits of the public E how to sell their votes Political parties have been slicing and dicing the voting public for decades to determine relevant messages for different demographics Politicians desperately want to understand who makes up the voting public to determine how to reach them Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process Which of the following is NOT a step in the marketing research process? A Design the research plan B Define mission statement and objective C Analyze data D Collect data E Determine action plan Define mission statement is not a step in marketing research process 7-2 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process Which of the following is the first factor that managers consider before embarking on a marketing research project? A The cost of undertaking the project B The usefulness of the project to a firm C The time limit of the project D The sample size to be used in the research E The questions to be used in a questionnaire Managers consider several factors before embarking on a marketing research project First, will the research be useful? Marketing research can be very expensive, and if the results won't be useful or management does not abide by the findings, it represents a waste of money Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process Assuming that a particular market research study will reduce uncertainty associated with the proposed project, which of the following is the second question that needs to be addressed before starting the study? A How will the results be presented? B Will observation research be considered intrusive? C Is top management committed to the study? D How will the questions be defined? E Who will manage the research? Managers consider several factors before embarking on a marketing research project First, will the research be useful? Will it provide insights beyond what the managers already know and reduce uncertainty associated with the project? Second, is top management committed to the project and willing to abide by the results of the research? 7-3 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process Which of the following statements best describes the market research process? A It ideally begins by collecting and analyzing data B Research design takes place prior to formulating and identifying the research problem C It is rigid in nature, and all companies have to follow the steps in the right sequence D Research design begins immediately after data collection E It usually ends with presenting an action plan In the final phase of the marketing research process, an analyst prepares the results and presents them to decision makers, who undertake appropriate marketing actions and strategies Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process The first step in a market research project is to: A design a research plan B analyze data and develop insights C define objectives and research needs D present an action plan E collect data Because research is both expensive and time consuming, it is important to establish in advance exactly what problem needs to be solved Correctly defining the problem is one of the most important elements of the marketing research process 7-4 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process APR Consulting is an integrated marketing solutions company When approached by clients who want to market a new product, APR Consulting will ideally start the market research process by: A identifying the target market and customer needs B deciding how much time and money the clients are willing to spend C defining the research problem and objectives D defining the alternatives and uncertainties E developing and implementing the research plan APR Consulting will ideally start the market research process by defining the research problem and objectives Because research is both expensive and time consuming, it is important to establish in advance exactly what problem needs to be solved Correctly defining the problem is one of the most important elements of the marketing research process Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-02 Step 1: Define the Research Problem and Objectives As a marketing researcher, one should differentiate between a real problem and a symptom of the real problem Which one of the following is likely to be a symptom of the problem? A Change in customers' preferences B Change in size of the market C Customer preference of the new product features D Market share decline E New competitor entrance Market share decline is a symptom of a real problem A company may lose market due to bad pricing, promotion, or product offering The researcher job is to make sure to define the real problem 7-5 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-02 Step 1: Define the Research Problem and Objectives 10 The term "secondary data" refers to the data that has been collected: A to address specific research needs B from in-depth interviews and surveys C prior to the start of the focal project D from a particular focus group E to address questions currently under investigation Secondary data are pieces of information that have been collected prior to the start of the focal research project Secondary data include both external and internal data sources Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-03 Step 2: Design the Research Plan 11 Raw numbers or other factual information that, on their own, have limited value to marketers can be termed as: A data B samples C information D hypotheses E observation To generate meaningful information, researchers analyze and make use of the collected data In this context, data can be defined as raw numbers or other factual information that, on their own, have limited value to marketers 7-6 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-04 Step 3: Collect Data 12 Data that has been organized, analyzed, interpreted, and converted into a useful form for decision makers is called: A samples B hypotheses C information D observation E codes When the data are interpreted, they become information, which results from organizing, analyzing, and interpreting the data, and putting it into a form that is useful to marketing decision makers Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-04 Step 3: Collect Data 13 Which of the following is a source of secondary data? A Focus groups B Surveys C In-person interviews D Census data E Experiments A marketing research project often begins with a review of the relevant secondary data Secondary data might come from free or very inexpensive external sources such as census data, information from trade associations, books, journal articles, and reports published in magazines and newspapers 7-7 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-05 Step 4: Analyze Data and Develop Insights 14 Which of the following is an internal source of secondary data? A Government agencies B Syndicated services C Directories D Journal articles E Customer lists Secondary sources can be accessed through internal sources, including the company's sales invoices, customer lists, and other reports generated by the company itself Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-05 Step 4: Analyze Data and Develop Insights 15 Commercial research firms such as Nielsen, Leger Marketing, and National Purchase Diary Panel are sources of: A experimental data B focus group data C control group data D syndicated data E biased data Although secondary data is either free or inexpensive and can be quickly accessed, they may not always be adequate to answer the research objective Under these circumstances, marketers may find it useful to purchase external secondary data called syndicated data, which are data available for a fee from commercial research firms such as SymphonyIRI Group, National Purchase Diary Panel, Nielsen, and Leger Marketing 7-8 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-05 Step 4: Analyze Data and Develop Insights 16 Caroline needs to research information about income and age distribution in Fort McMurray, an urban service area in Alberta Which of the following would be the most useful source of data for Caroline in terms of being easily accessible at a low cost? A Door-to-door surveys B Focus group interviews C Syndicated data D Sales invoices at public libraries E Census data In terms of easy access at low cost, the source of secondary data that would be most useful to Caroline would be census data Census data is a source of secondary data that can be accessed quickly and at a relatively low cost Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-07 Secondary Data 17 If Bell Canada obtains purchase history of its current customers to send them promotions for a new product, what data source Bell Canada uses? A Primary data B Internal secondary data C Survey research D External secondary data E Scanner data Customer data has already collected and existed within the organization; therefore, Bell Canada uses internal secondary data source 7-9 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-07 Secondary Data 18 The type of quantitative research that uses data obtained from readings of UPC codes at checkout counters is called: A panel data B exploratory research C survey research D syndicated data E scanner data Scanner data are obtained from scanner readings of UPC codes at checkout counters and used in quantitative research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-07 Secondary Data 19 The data obtained from which of the following research techniques is likely to be acquired by leading marketing research firms to help other firms assess the market activity? A Scanner research B Panel research C Survey research D Experimental research E Exploratory research Scanner data are obtained from scanner readings of UPC codes at checkout counters and used in quantitative research Whenever you go into your local grocery store, your purchases are rung up by using scanner systems This information helps leading consumer packaged goods firms assess what is happening in the marketplace 7-10 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-08 Primary Data Collection Techniques 104 Collected data can be biased when a sample does not represent an entire population of interest TRUE Biased data results when, for example, the sample does not represent the entire population, researchers inject their own biases by the way they ask questions or try to get respondents to answer in specific ways, or the respondents may be the wrong people or provide answers they think researchers want to hear Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-08 Primary Data Collection Techniques 105 Reliability is the extent to which a study measures what it is supposed to measure FALSE Reliability is the extent to which you will get the same result if the study is repeated under identical situations Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-08 Primary Data Collection Techniques 106 Focus groups gather qualitative data about initial reactions to a new or existing product or service, opinions about different competitive offerings, or reactions to marketing stimuli TRUE Focus groups gather qualitative data about initial reactions to a new or existing product or service, opinions about different competitive offerings, or reactions to marketing stimuli 7-56 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 107 Ethnography is often used to determine how consumers might use a product TRUE Ethnography is an observational method that studies people in their daily lives and activities in their homes, work, and communities It is often used to determine how consumers might use a product Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 108 In-depth interviews are particularly useful in providing historical context for a phenomenon when they include industry experts or experienced consumers TRUE In-depth interviews have quite a few benefits They can provide an historical context for the phenomenon of interest, particularly when they include industry experts or experienced consumers 7-57 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 109 Qualitative research is the most cost-effective method for reaching a large sample of consumers FALSE Arguably a survey is the most popular type of quantitative, primary data collection method used in marketing research It is widely used to study consumers' attitudes, preferences, behaviours, and knowledge about products and brands It is generally more cost-effective than other methods for reaching a large sample of consumers Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 110 Qualitative research is clear, contains structured questions, and has well-defined data sources FALSE Quantitative research provides the information needed to confirm preliminary insights, which managers can use to pursue appropriate courses of action Quantitative research is clear, usually contains structured questions, and has well-defined data sources 7-58 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 111 Panel research is a type of qualitative research FALSE Panel research is a type of quantitative research that involves collecting information from a group of consumers (the panel) over time; data collected may be from a survey or a record of purchases Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-10 Quantitative Research Methods 112 Structured questions are easier for respondents to answer TRUE Structured questions are closed-ended questions for which a discrete set of response alternatives is provided Whereas, the unstructured questions are open-ended and respondents need to spend more time completing the questions 7-59 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-10 Quantitative Research Methods 113 Experimental research is a type of qualitative research in which subjects are provided a scenario and asked to express their thoughts and feelings about it FALSE Experimental research is a type of quantitative research that systematically manipulates one or more variables to determine which variable(s) have a causal effect on another variable A projective technique is a type of qualitative research in which subjects are provided a scenario and asked to express their thoughts and feelings about it Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-10 Quantitative Research Methods 114 Marketing research should be used only to produce unbiased, factual information TRUE Marketing research should be used only to produce unbiased, factual information A major advantage of primary research is that it can be tailored to fit research questions Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 07-04 Outline ethical issues firms encounter when conducting marketing research Topic: 07-11 The Ethics of Using Customer Information 7-60 Chapter 07 - Marketing Research Short Answer Questions 115 What are the factors that have to be considered before starting a marketing research project? Managers consider several factors before embarking on a marketing research project First, will the research be useful? Will it provide insights beyond what the managers already know and reduce uncertainty associated with the project? Second, is top management committed to the project and willing to abide by the results of the research? Related to both of these questions is the value of the research Marketing research can be very expensive, and if the results won't be useful or management does not abide by the findings, it represents a waste of money Third, should the marketing research project be small or large? A project might involve a simple analysis of data that the firm already has, or it could be an in-depth assessment that costs hundreds of thousands of dollars and takes months to complete Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-01 The Marketing Research Process 116 Mention any two sources of secondary data and provide one example for each Student answers will vary Some of the sources of secondary data include the following: • census data • magazines and newspapers • journal articles • information from trade associations • books • the Internet 7-61 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-07 Secondary Data 117 What is syndicated data? Syndicated data or external secondary data is the data available for a fee from commercial research firms such as SymphonyIRI Group, National Purchase Diary Panel, Nielsen, and Leger Marketing Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-07 Secondary Data 118 Differentiate between primary data and secondary data Discuss a situation that primary data should be collected and a situation that primary data is required Primary data are those data collected to address the specific research needs/questions currently under investigation Secondary data, in contrast, are pieces of information that have been collected prior to the start of the focal project A marketing research project often begins with a review of the relevant secondary data 7-62 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-07 Secondary Data Topic: 07-08 Primary Data Collection Techniques 119 What is biased data? Many fast food restaurants measure customer satisfaction after customer make a purchase Explain how biased data could be an issue for fast food restaurants Biased data results when the sample does not represent the entire population, researchers inject their own biases by the way they ask questions or try to get respondents to answer in specific ways, or the respondents may be the wrong people or provide answers they think researchers want to hear Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Difficult Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-07 Secondary Data 120 What are the disadvantages of secondary research? • The information may not be precisely relevant to information needs • The information may not be as timely as needed • The sources may not be original; therefore, usefulness is an issue • The methodologies for collecting data may not be relevant or may contain bias in the subject matter 7-63 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-07 Secondary Data 121 What are the advantages of primary research? • The information obtained is specific to the immediate data needs and topic at hand • The information obtained offers behavioural insights generally not available from secondary research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-07 Secondary Data 122 What is quantitative research? If a firm is ready to move beyond preliminary insights gained from qualitative research, it is likely ready to engage in quantitative research, which provides the information needed to confirm those insights and that managers can use to pursue appropriate courses of action For marketing researchers, quantitative research offers a means to confirm implicit hunches through surveys, formal studies such as specific experiments, scanner and panel data, or some combination of these Quantitative research also enables researchers to test their prediction or hypothesis, which is a statement or proposition predicting a particular relationship among multiple variables 7-64 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-10 Quantitative Research Methods 123 Explain the method of projective technique used for data collection in market research Provide one example A projective technique is a type of qualitative research in which subjects are provided a scenario and asked to express their thoughts and feelings about it For example, consumers may be shown a cartoon that has a consumer looking at a shelf display in a supermarket with a text box above the consumer The respondents would write in their thoughts on the issue in the text box Thus, the cartoon allows respondents to visualize the situation and project their thoughts or feelings by filling out the text box Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 124 What are the guidelines provided by the Canadian Marketing Association for conducting marketing research? • The Canadian Marketing Association prohibits selling or fundraising under the guise of conducting research • The Canadian Marketing Association supports maintaining research integrity by avoiding misrepresentation or the omission of pertinent research data • The Canadian Marketing Association encourages the fair treatment of clients and suppliers 7-65 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 07-04 Outline ethical issues firms encounter when conducting marketing research Topic: 07-11 The Ethics of Using Customer Information 125 Branson, a marketing research firm, has been hired to conduct marketing research for a particular software company Briefly describe the first two steps that Branson would take in its marketing research process Branson would take the following two steps: Step 1: Define the Research Problem and Objectives Correctly defining the marketing problem is one of the most important elements of the marketing research process Once the research problem is defined, marketers must specify the research objectives or questions to be answered Marketing research efforts and resources can be wasted if the research objectives are poorly defined Thus, market researchers devote considerable effort to defining the problem and trying to separate the symptoms of a problem from the actual problem Step 2: Design the Research Project The second step in the marketing research project involves design In this step, researchers identify the type of data needed and determine the type of research necessary to collect it The marketer must now decide whether the data required to make a decision should be obtained from secondary sources or primary sources 7-66 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-02 Step 1: Define the Research Problem and Objectives Topic: 07-03 Step 2: Design the Research Plan 126 Explain the final step in the market research process In the final phase of the marketing research process, an analyst prepares the results and presents them to the appropriate decision makers, who undertake appropriate marketing actions and strategies A typical marketing research presentation includes an executive summary, the body of the report (which discusses the research objectives, methodology used, and detailed findings), the conclusions, the limitations, and appropriate supplemental tables, figures, and appendices To be effective, written reports must be short, interesting, methodical, precise, lucid, and free of errors Furthermore, the reports should use a style appropriate to the audience, be devoid of technical jargon, and include recommendations that managers can actually implement Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 07-01 Identify the five steps in the marketing research process Topic: 07-06 Step 5: Determine Action Plan 127 What is syndicated data? List any three firms that provide syndicated data and the type of data they offer Syndicated data is a type of external secondary data available for a fee from commercial research firms such as the Bureau of Broadcasting Measurement, Nielsen, and Leger Marketing Student answers will vary according to the firms they choose that provide syndicated data • Bureau of Broadcasting Measurement: Provides broadcast measurement and consumer behaviour data, as well as intelligence to broadcasters, advertisers, and agencies on audience behaviours during and after broadcasts • Leger Marketing: Provides polling services and marketing research on all aspects of marketing, including loyalty, branding, media analysis, pricing, position, image enhancement, customer satisfaction, focus groups, online panels, and surveys across many industries • Nielsen: With its market measurement services, the company tracks the sales of consumer packaged goods, gathered at the point of sale in retail stores of all types and sizes 7-67 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Difficult Learning Objective: 07-02 Describe the various secondary data sources Topic: 07-07 Secondary Data 128 Robarts, a marketing research firm, is researching a problem that has not been clearly defined What type of research is Robarts conducting? Explain any one method that Robarts could use for this research Robarts is conducting qualitative research Qualitative research attempts to begin to understand the phenomenon of interest; it also provides initial information when the problem lacks clear definition Student answers about qualitative research methods will vary • In-depth interview: A research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue In-depth interviews have quite a few benefits They can provide an historical context for the phenomenon of interest, particularly when they include industry experts or experienced consumers They also can communicate how people really feel about a product or service at the individual level, a level that rarely emerges from other methods that use group discussions Finally, marketers can use the results of in-depth interviews to develop surveys In-depth interviews, however, are relatively expensive and time consuming • Focus group: A research technique in which a small group of persons (usually to 12) comes together for an in-depth discussion about a particular topic Using an unstructured method of inquiry, a trained moderator guides the conversation on the basis of a predetermined general outline of the topics of interest Researchers usually record the interactions on videotape or audiotape so they can carefully comb through the interviews later to catch any patterns of verbal or nonverbal responses In particular, focus groups gather qualitative data about initial reactions to a new or existing product or service, opinions about different competitive offerings, or reactions to marketing stimuli, such as a new ad campaign or point-of-purchase display materials 7-68 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 129 The Canadian Wireless Communication is a $50 billion industry The number of Canadian cell phone subscribers exceeds 30 million and 99% of the Canadian population has access to wireless services In 2014, the big three players of this industry Rogers, TELUS and Bell have 37.3%, 31.6%, and 31.1% of market share respectively These big three make up for 29.45 million subscribers and the remaining 1.25 million will be made up all new entrant and small carries (WIND, Moblicity, Videotron, Shaw, or Public Mobile) With the intense competition and slow growth of new subscribers, companies are trying to improve their retention strategy Assume you are hired by Bell Canada, who lost market share to TELUS and new entrants in the last two years, as a marketing consultant to provide guidance about current customers' plan preferences and competitors' practices Explain how you would design a marketing research project to obtain required information (make sure to explain the marketing research process, including problem definitions, your formal research design, sampling, data collection etc) Students answer will vary They need to define research problem and objectives, discuss the design of research plan, indicate how to collect data, analyze the data, and determine the action plan Students must discuss the sampling strategy and method of data collection (i.e internal secondary data, surveys) 7-69 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-02 Step 1: Define the Research Problem and Objectives Topic: 07-03 Step 2: Design the Research Plan Topic: 07-04 Step 3: Collect Data Topic: 07-05 Step 4: Analyze Data and Develop Insights Topic: 07-06 Step 5: Determine Action Plan 130 Romney, a manufacturer of children's clothing, wants to launch an exclusive line of shoes and accessories for children Romney hires TrendSmart to conduct market research on its behalf TrendSmart is ready to move beyond preliminary insights and needs to confirm these insights Briefly describe any three methods TrendSmart can use to conduct this research Student answers will vary TrendSmart is ready to move beyond preliminary insights gained from exploratory research and is likely ready to engage in conclusive research, which provides the information needed to confirm those insights and which managers can use to pursue appropriate courses of action For marketing researchers, because it is often quantitative in nature, conclusive research offers a means to confirm implicit hunches through surveys; formal studies such as specific experiments, and scanner and panel data; or some combination of these Conclusive research also enables researchers to test their prediction or hypothesis, which is a statement or proposition predicting a particular relationship among multiple variables TrendSmart could use the three methods mentioned below • Experimental research: A type of quantitative research that systematically manipulates one or more variables to determine which variable has a causal effect on another variable • Scanner research: A type of quantitative research that uses data obtained from scanner readings of UPC codes at checkout counters Whenever you go into your local grocery store, your purchases are rung up by using scanner systems The data from these purchases are likely to be acquired by leading marketing research firms, such as SymphonyIRI Group or Nielsen They use this information to help leading consumer packaged goods firms assess what is happening in the marketplace • Panel research: A type of quantitative research that involves collecting information from a group of consumers (the panel) over time; data collected may be from a survey or a record of purchases Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 07-03 Describe primary data collection techniques and summarize the differences between secondary data and primary data Topic: 07-09 Qualitative Research Methods 7-70 ... Learning Objective: 07- 01 Identify the five steps in the marketing research process Topic: 07- 01 The Marketing Research Process Which of the following is NOT a step in the marketing research process?... the research? 7-3 Chapter 07 - Marketing Research Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 07- 01 Identify the five steps in the marketing research. .. Objective: 07- 01 Identify the five steps in the marketing research process Topic: 07- 01 The Marketing Research Process The first step in a market research project is to: A design a research plan