Ch.7 Marketing Research: From Customer Insights to Actions – Flashcards

Process of defining a marketing problem and opportunity, systematically collecting and analyzing information and recommending actions.

Conscious choice from among two or more alternatives.

Act of consciously choosing from among alternatives.

1. Define the problem - set research objectives - identify possible marketing actions - measures of success: criteria or standards used in evaluating proposed solutions to a problem 2. Develop the research plan - specify constraints - identify data needed for marketing actions - determine how to collect data - constraints: restrictions placed on potential solutions to a problem - concepts: ideas about products or services - new product concept: picture or verbal description of a product or service the firm might offer for sale - methods: approaches that can be used to collect data to solve all or part of a problem - sampling: selecting a group of distributors, customers, or prospects, asking them questions, and treating their answers as typical of all those in whom they are interested - statistical inference: generalizing the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions 3. Collect relevant information - obtain secondary data - obtain primary data - big data: art and science of amassing and combing through vast amounts of information for insights not possible on a smaller scale - data: facts and figures related to a project - secondary data: facts and figures that have already been recorded prior to the project at hand - primary data: facts and figures that are newly collected for a project - marketing input data: relate to the effort expended to make sales - marketing outcome data: relate to the results of the marketing efforts - syndicated panel: data answer questions that require consistent data collection over time - observational data: facts and figures obtained by watching, either mechanically or in person, how people behave - mystery shopper: companies pay mystery shoppers to check on the quality and pricing of their products and the integrity of and customer service provided by their employees - ethnographic research: specialized observational approach in which trained observers search for subtle behavioral and emotional reactions as consumers encounter products in their natural use environment, such as in their home or car - questionnaire data: facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors - idea generation methods: coming up with ideas - individual interview: involves a single researcher asking questions of one respondent - depth interview: researchers ask lengthy, free flowing kinds of questions to probe for underlying ideas and feelings - focus groups: informal sessions of 6 or 10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products don't address - idea evaluation methods: testing an idea - personal interview surveys: enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials that are very costly - mail surveys: usually biased because those most likely to respond have had especially positive or negative experiences with the product or brand - telephone interviews: allow flexibility, unhappy respondents may hang up on the interviewer, even with the efficiency of computer assisted telephone interviewing (CATI) - online surveys: email and internet - open ended question: allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher - closed end or fixed alternative questions: require respondents to select one or more options from a set of predetermined choices - dichotomous question: simplest form of a fixed alternative question that allows only a "yes" or "no" response - semantic differential scale: five point scale in which the opposite ends have one or two word adjectives that have opposite meanings - likert scale: respondent indicates the extent to which he or she agrees or disagrees with a statement - mall intercept interviews: personal interviews of consumers visiting shopping centers - conversation velocity - share of voice - sentiment - panel: sample of consumers or stores from which researchers take a series of measurements - experiment: involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect - drivers: one or more of the marketing mix elements, such as product's features, price, or promotion (like advertising messages or coupons) - test markets: offer a product for sale in a small geographic area to help evaluate potential marketing actions 4. Develop findings - analyze the data - present the findings - information technology: involves operating computer networks that can store and process data - sensitivity analysis - product or brand drivers: factors that influence the buying decisions of a household or organization can affect sales - data mining: extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions 5. Take marketing actions - make action recommendations - implement action recommendations - evaluate results - evaluating the decision itself - evaluating the decision process used

Criteria or standards used in evaluating proposed solutions to a problem.

Restrictions places on potential solutions to a problem.

1. Concepts - ideas about products or services 2. Methods - approaches that can be used to collect data to solve all or part of a problem

Ideas about products or services.

1. Sampling - selecting a group of distributors, customers, or prospects, asking them questions, and treating their answers as typical of all those in whom they are interested 2. Statistical inference - generalizing the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions

Approaches that can be used to collect data to solve all or part of a problem.

Picture or verbal description of a product or service the firm might offer for sale.

Selecting a group of distributors, customers, or prospects, asking them questions, and treating their answers as typical of all those in whom they are interested.

Generalizing the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions.

Art and science of amassing and combing through vast amounts of information for insights not possible on a smaller scale.

Facts and figures related to a project.

1. Secondary data - facts and figures that have already been recorded prior to the project at hand - internal data (inside the firm): inputs (budgets, financial statements, sales call reports), outcomes (actual sales and customer communications) - marketing input data: relate to the effort expended to make sales - marketing outcome data: relate to the results of the marketing efforts - external data (outside the firm): U.S. Census reports, trade association studies, business periodicals, and internet based reports - syndicated panel: data answer questions that require consistent data collection over time 2. Primary data - facts and figures that are newly collected for a project - observational data (watching people): mechanical methods, personal methods, and neuromarketing methods - questionnaire data (asking people): idea generation methods and idea evaluation methods - other sources of data: social media, panels, and experiments - observational data: facts and figures obtained by watching, either mechanically or in person, how people behave - mystery shopper: companies pay mystery shoppers to check on the quality and pricing of their products and the integrity of and customer service provided by their employees - ethnographic research: specialized observational approach in which trained observers search for subtle behavioral and emotional reactions as consumers encounter products in their natural use environment, such as in their home or car - questionnaire data: facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors - idea generation methods: coming up with an idea - individual interview: involves a single researcher asking questions of one respondent - depth interview: researchers ask lengthy, free flowing kinds of questions to probe for underlying ideas and feelings - focus groups: informal sessions of 6 or 10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products don't address - idea evaluation methods: testing an idea - personal interview surveys: enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials that are very costly - mail surveys: usually biased because those most likely to respond have had especially positive or negative experiences with the product or brand - telephone interviews: allow flexibility, unhappy respondents may hang up on the interviewer, even with the efficiency of computer assisted telephone interviewing (CATI) - online surveys: email and internet - open ended question: allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher - closed end or fixed alternative questions: require respondents to select one or more options from a set of predetermined choices - dichotomous question: simplest form of a fixed alternative question that allows only a "yes" or "no" response - semantic differential scale: five point scale in which the opposite ends have one or two word adjectives that have opposite meanings - likert scale: respondent indicates the extent to which he or she agrees or disagrees with a statement - mall intercept interviews: personal interviews of consumers visiting shopping centers - conversation velocity - share of voice - sentiment - panel: sample of consumers or stores from which researchers take a series of measurements - experiment: involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect - drivers: one or more of the marketing mix elements, such as product's features, price, or promotion (like advertising messages or coupons) - test markets: offer a product for sale in a small geographic area to help evaluate potential marketing actions

Facts and figures that have already been recorded prior to the project at hand.

Facts and figures that are newly collected for a project.

Relate to the effort expended to make sales.

Relate to the results of the marketing efforts.

Data answer questions that require consistent data collection over time.

1. Tremendous time savings because the data have already been collected and published or exist internally 2. Low cost, such as free or inexpensive Census reports

1. Secondary data may be out of date, especially if they are U.S. Census data collected only every 5 or 10 years 2. Definitions or categories might not be quite right for a researcher's project

Facts and figures obtained by watching, either mechanically or in person, how people behave.

Companies pay mystery shoppers to check on the quality and pricing of their products and the integrity of and customer service provided by their employees.

Specialized observational approach in which trained observers search for subtle behavioral and emotional reactions as consumers encounter products in their natural use environment, such as in their home or car; Best Western.

Combine Nielson's existing Tv rating with its new online ratings.

1. Develop the research plan - specifying constraints on the marketing research activity - identifying the data needed for marketing decisions - determining how to collect the data

Uses high tech brain scanning instruments to record the brain's responses to various marketing stimuli (package designs, brand logos, fragrances, Tv ads, etc.) via the five sentences.

1. Idea generation methods - coming up with an idea - individual interview: involves a single researcher asking questions of one respondent - depth interview: researchers ask lengthy, free flowing kinds of questions to probe for underlying ideas and feelings - focus groups: informal sessions of 6 or 10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products don't address 2. Idea evaluation methods - testing an idea - personal interview surveys: enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials that are very costly - mail surveys: usually biased because those most likely to respond have had especially positive or negative experiences with the product or brand - telephone interviews: allow flexibility, unhappy respondents may hang up on the interviewer, even with the efficiency of computer assisted telephone interviewing (CATI) - online surveys: email and internet - open ended question: allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher - closed end or fixed alternative questions: require respondents to select one or more options from a set of predetermined choices - dichotomous question: simplest form of a fixed alternative question that allows only a "yes" or "no" response - semantic differential scale: five point scale in which the opposite ends have one or two word adjectives that have opposite meanings - likert scale: respondent indicates the extent to which he or she agrees or disagrees with a statement - mall intercept interviews: personal interviews of consumers visiting shopping centers

Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors; Marine Midland Bank.

Involves a single researcher asking questions of one respondent.

Researchers ask lengthy, free flowing kinds of questions to probe for underlying ideas and feelings.

Informal sessions of 6 or 10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products don't address.

Enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials that are very costly.

Usually biased because those most likely to respond have had especially positive or negative experiences with the product or brand.

Allow flexibility, unhappy respondents may hang up on the interviewer, even with the efficiency of computer assisted telephone interviewing (CATI).

Email and internet; minimal cost and faster turnaround time when compared to traditional methods of data collection.

Provide periodicals and technical journals, summarize methods and techniques valuable in addressing marketing problems.

Allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher.

Require respondents to select one or more options from a set of predetermined choices.

Simplest form of a fixed alternative question that allows only a "yes" or "no" response.

Five point scale in which the opposite ends have one or two word adjectives that have opposite meanings.

Respondent indicates the extent to which he or she agrees or disagrees with a statement.

Personal interviews of consumers visiting shopping centers.

1. Social media - conversation velocity - share of voice - sentiment 2. Panels and experiments - panel: sample of consumers or stores from which researchers take a series of measurements - experiment: involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect - drivers: one or more of the marketing mix elements, such as product's features, price, or promotion (like advertising messages or coupons) - test markets: offer a product for sale in a small geographic area to help evaluate potential marketing actions

1. Conversation velocity 2. Share of voice 3. Sentiment

Sample of consumers or stores from which researchers take a series of measurements.

Involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect.

One or more of the marketing mix elements, such as product's features, price, or promotion (like advertising messages or coupons).

Offer a product for sale in a small geographic area to help evaluate potential marketing actions.

More flexible and more specific to the problem being studied.

Far more costly and time consuming to collect than secondary data.

Involves operating computer networks that can store and process data.

Factors that influence the buying decisions of a household or organization can affect sales.

Extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

Total sales of a product that a firm expects to sell during a specified time period under specified conditions and its own marketing efforts.

Involves starting with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and making the final forecast.

Involves extending a pattern observed in past data into the future.

When the pattern is described with a straight line; involves extending a pattern observed in past data into the future.

Involves asking prospective customers if they are likely to buy the product during some future time period.

Involves asking the firm's salespeople to estimate sales during a forthcoming period.

Data already collected and exists inside a business firm or organization.

Independent variables of interest that are often one or more of the marketing mix elements, such as a product's features, price, distribution, or promotion (such as advertised using messages or coupons).

Most popular internet portal where users can enter key words or topics for specific searches.

Fixed alternative question with three or more choices uses this.