Marketing research
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Transcript of Marketing research
Marketing Research Methods
Quantitative Research
• Statistical basis
• Gathers statistically valid, numerically measurable data
• Usually related to the data on the market-size, growth and market shares
• Sampling plays a key role
• Data obtained through surveys
• Conducted with obtaining hard data
Qualitative Research
• Subjective and personal
• Concerned with finding out soft information
• Main purpose is to understand consumer behavior, attitudes and perceptions
• Obtained by methods designed to get detailed responses e.g. interviews
• Research topics are usually explored in some depth
The Marketing research process• Define the problem
• Define research objectives
• Choose data sources
• Choose research methods
• Construct sample
• Set budget and deadlines
• Undertake research
• Analysis and evaluation
Methods of collecting data
• Desk Research- in which secondary data is collected. Secondary data is defined as the reusing the data that already exists.
• Field Research- collecting original data known as primary data.
• Data collecting is only one stage in the process.
• The has to be analyzed and evaluated.
• Conclusions and recommendations have to be drawn.
Secondary data sources
1. Internal
• Sales figures
• Customer reports
• Trend data
• Sales report
• Cost data
• Company reports
• MIS report
2. External
• Competitor information
• Government publications
• Commercial publications
• Trade association data
• Retail audits
• Directories
Field research to collect primary data
• Experiments
• Observations
• Surveys
• Interviews
• Focus groups
• Panels
Field Research Methods
Experiments under
controlled conditions
Observation watching behavior
Surveys panel and interview asking people
Experiments
• A method of obtaining primary research data.
• The aim is measure and evaluate customers’ reactions to changes in the marketing mix.
• Can be done under controlled conditions or in the field.
• Examples: test markets, simulated test market, extended user test, blind test.
• Pilot trials of new products are a common use of experiments as it provides a chance to test how things work out before a large scale roll-out. It reduces risk and uncertainty.
Observation
• A data gathering approach in which information is collected without questions being asked.
• Involves watching people behave, noting and analyzing their reactions.
• It is useful to find out how people buy products, where they shop, what appears to interest them.
• Can be carried out under controlled (laboratiry) conditions or in real life situations(on field)
• Common methods: traffic audits, TV and radio panels and retail audits.
Observation: Strengths
• What people do rather than say
• Carried out without customers’ knowledge
• Does not rely on memory or honesty of respondents
• Potential for bias is reduced
• Counters the refusal rate associated with some methods of MR
Observation: Weaknesses
• Time consuming and costly
• Does not answer the why question
• Tells nothing about motivation
• Easy to misinterpret behavior
• Only gives partial information
Surveys
• The key research method to obtain information from large samples
• Wide range of users: to ascertain facts, belifes, opinions, attitudes
• Various methods to complete surveys: interviews, telephones, face to face, postal, online
Postal surveys: Strengths
• Wide coverage
• Low cost
• No interviewer bias
• Respondents convenience
• Lack of embarrassment
• Piggybacking
• Avoids travel costs
Postal surveys: Weaknesses
• Low response rate
• Lack of control of respondent
• Limited scope for open ended questions
• Limited to short questionnaires
• Long response time
• Biased response
• Misinterpretation of questions
Telephone surveys: Strengths• Saves time
• Higher response rate
• Greater control over respondent than with postal surveys.
• Sample less likely to be biased
• Cost limited to time spent on phone
• Avoids cost of travel
• Allows probing
Telephone surveys: Weaknesses• Questions may be more limited than with postal
surveys
• Respondent has little time to consider questions
• Data may not be available easily
• Intrusion into privacy
• Can be time consuming
Face to face interviews: Strengths• Interviewer can prompt the respondent
• Can see the respondents reaction
• Respondent have more time to think
• Detailed responses
• Can get opinions
• Respondents give full attention
• Flexible
• Allows probing
• Trust can be built up to get more reliable data
Face to face interviews: Weaknesses• High cost
• Time consuming
• Risk of bias
• Requires interview skills
Comparison of survey methodsMethod Response
rateCost Time Non
response bias
Face to face
High High Slow Low
Postal Low Low Slow High
Phone Moderate Moderate Fast Moderate
Electronic Moderate Low Fast High
Focus groups
• Used for quantitative data gathering
• Usually consists of 8-10 respondents and a moderator
• Moderator introduces the topic and guides the conversation
• The aim is to seek opinions and find out attitudes
• Composition of the group should reflect target audience
Focus groups: Strengths
• Inexpensive
• Quick
• Range of attitudes
• Detailed qualitative information obtained
• Flow of discussion encourages ideas and participation
Focus groups: Weaknesses
• Need to build rapport
• Discussions must stay focused
• Needs good control by the moderator
• Some members may be in habited
• Time consuming
• Expensive
Panels
• Continuous rather than ad hoc
• Useful in assessing shifts of attitude and opinions over time
• A consumer panel consist of a representative sample of people
• Panel members are usually induced to be permanently available by means of small payments or free samples
Panels: Strengths
• A good trend indicator
• Useful for analyzing changes
• More probing
Panels: Weaknesses
• Expensive
• Bias sample of people
• Panelists may adopt uncharacteristic behavior during panel sessions
• Panels have to be replaced periodically
• When novelty wears off members become less-coperative
Electronic/online surveys: Strengths• Cheap compared to other methods
• No internal boundaries
• Versatile
• Quick
Electronic/online surveys: Weaknesses• Incomplete directory of names
• Unrepresentative sample
• Brevity of e-mail responses can be a problem
• Respondents select themselves
• Little control over sample
Marketing Research: Limitations• Problem related to survey and sampling
methods
• Sampling errors
• Non-response errors
• Data collection errors
• Analytical and reporting errors
• Market research information can quickly become dated