Learning Objectives

Chapter 6: Marketing Research

1. Define marketing research.2. Describe the reasons for doing marketing

research (the five Cs) and explain why marketing research is sometimes not done.

3. Explain how research is used in each step of the hospitality and travel marketing system.

4. List and describe the five key requirements for good research information.

5. List in order and explain the six steps in the marketing research process.

Learning Objectives

Chapter 6: Marketing Research

6. Describe the internal and external sources of secondary research.

7. Explain the differences between primary and secondary research and list their respective advantages and disadvantages.

8. List and describe the primary research methods and differentiate between quantitative and qualitative research.

9. Explain the advantages and disadvantages of personal interviews, mail, telephone, in-house, self-administered, and online surveys.

Learning Objectives

Chapter 6: Marketing Research

10. Explain the focus group approach and how it can be used in making effective marketing decisions.

Marketing Research

The function that links the consumer, customer, and public to the marketer through information.

The information is used to:1. Identify and define marketing opportunities and

problems.2. Generate, refine, and evaluate marketing

actions.3. Monitor marketing performance.4. Improve understanding of marketing as a

process.

Reasons for Doing Marketing Research: The Five Cs

1. Customers: To determine how well customer needs are being met, investigate new target markets, and assess and test new services and facilities.

2. Competition: To identify primary competitors and pinpoint their strengths and weaknesses.

3. Confidence: To reduce the perceived risk in making marketing decisions.

Reasons for Doing Marketing Research: The Five Cs

4. Credibility: To increase the believability of promotional messages among customers.

5. Change: To keep updated with changes in travelers’ needs and expectations.

Reasons for Not Doing Marketing Research

1. Timing: It will take to much time.2. Cost: The cost of the research is too high.3. Reliability: There is no reliable research method

available for doing the research.4. Competitive intelligence: There is a fear that

competitors will learn about the organization’s intentions.

5. Management decision: Management prefers to use own judgment.

Five Key Requirements of Marketing Research Information

1. Utility: Can we use it? Does it apply to us?2. Timeliness: Will it be available in time?3. Cost-effectiveness: Do the benefits outweigh

the costs?4. Accuracy: Is it accurate?5. Reliability: Is it reliable?

Marketing Research Programs and Projects

Marketing Research Program:A plan or program to investigate several marketing

opportunities or problems (several projects). Marketing Research Project:

An individual element of a marketing research program in which a specific marketing opportunity or problem is investigated.

Marketing Research Process

1. Formulate Problem:a. Define research problemb. Identify research objectives and related

questions2. Select Research Design And Data Collection

Method:a. Collect and analyze secondary informationb. Select research design and primary data

collection method

Marketing Research Process

3. Select Sample And Collect Data:a. Decide on sample design and collect primary

data4. Analyze And Interpret Dataa. Analyze and interpret primary data5. Prepare Research Report:a. Draw conclusions and make recommendations6. Communication of the Research Resultsa. Present results to all interested parties

Sources of Secondary Research Information

Registrations or reservations

Sales or customer mix

Databases

Inquiries

Unfulfilled reservations/turn-aways

Internal Data

Government agencies

WWW. Magazines, journals, newspapers, radio, TV

Associations

Research companies and consultants

Universities and Colleges

External Data

Secondary Research

Secondary and Primary Research

Secondary: Published information available from other

sources, either internal or external

Primary:Data collected for the first time, by a method other

than secondary research, to answer specific questions.

Advantages and Disadvantages of Secondary Research

Advantages1. Inexpensive2. Easily accessible3. Immediately available Disadvantages

1. Frequently outdated

2. Potentially unreliable

3. May not be applicable

Advantages and Disadvantages of Primary Research

Advantages1. Applicable and usable2. Accurate and reliable3. Up-to-date Disadvantages

1. Expensive

2. Not immediately available

3. Not as readily accessible

Primary Research Methods & Techniques

Surveys Personal interview (intercepts) Mail In-house, self-administered Telephone, fax, e-mail, Web

Quantitative Data

Primary Research

Experiments

Mechanical observation

Simulation

Qualitative Data

Case studies

Human observation

Individual depthinterviews

Focus groups

Primary Research Methods

1. Experimental (e.g., test marketing)2. Observational (human and mechanical)3. Survey (mail, telephone, personal interview, in-

house self-administered, online)4. Simulation (mathematical and computer

modeling)5. Focus groups (groups of 8 to 12 people with

moderator trying to reach a consensus of opinions)

Personal Interviews

Advantages

1. High response rate2. Great flexibility (ability to adapt/explain

questions)3. Can show or demonstrate items4. Fuller explanations can be given5. Very timely data

Personal Interviews

Disadvantages

1. Relatively expensive2. Possibility of interviewer bias3. Personal nature of questions (e.g., age or

income)4. Respondents not relaxed (put on the spot)5. Time may not be convenient for respondents

Mail Surveys

Advantages1. Relatively inexpensive2. No interviewer bias3. Consistent questions (for all respondents)4. Large number of respondents can be included5. Anonymity6. Respondents can choose the most convenient

time to answer

Mail Surveys

Disadvantages

1. Low response rates (relative to other survey types)

2. Junk mail syndrome3. Impersonal nature

Telephone Surveys

Advantages1. More flexibility compared to mail surveys2. Quick and inexpensive3. High response rates Disadvantages1. More obtrusive than mail2. Greater difficulties in rapport building3. Long-distance calls are expensive

In-House, Self-Administered Surveys

Advantages1. Completed by customers within the premises of

a hospitality and travel organization2. Convenient Disadvantages1. Generate low response rates

Online Surveys

Advantages1. Relative speed and flexibility2. Large and growing audience Disadvantages1. Technical skills and time required to develop

questionnaires