Chapter 1
The Nature
and Scope of
Marketing
Research
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First Edition
Exhibit 1.1 Role of Marketing Research in
Strategic Planning
and Decision Making
Strategic Marketing Plan:
Organizational Resources,Objectives,Marketing Strategy,
Implementation and Control
informs
Marketing Research
influences
Marketing Strategy/Marketing Mix
Product-Price-Promotion-Distribution
Customer/Society
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1-2
1
Identifying Market Opportunities
and Constraints
• Who are our potential competitors and how strong
are their market positions?
• How satisfied are consumers with current
offerings on the market ? Are there any unmet
consumer needs ?
• How is our offering likely to be perceived by
consumers relative to competitors’ offerings ?
• Marketing Research can help answer these and
other questions of interest to marketers
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1-3
T.G.I.Friday’s: Using Marketing
Research to Identify New Opportunities
• How the Research Was Conducted:
– Formal interviews with parents and children
– Observation of young customers’ likes and
wants
• Research Showed
– Young customers want something beyond
ordinary drinks
– T.G.I Friday’s created special kids’ drinks like
Banana Kong
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1-4
2
Marketing Research to Track Product
Performance and Customer Satisfaction of
Products and Services
• Research Showed
– Consumers wanted abundance of toppings
• Marketing research led to revamping of
pizza toppings
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1-5
Understanding the Competitive
Environment
• Who are Blockbuster’s competitors?
• Direct Broadcast Satellite (DBS)
– Cable movie and pay TV channels
– Supermarket video rentals
• How should Blockbuster react to
competitive threats?
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1-6
3
Developing and Implementing
Marketing Strategies
Develop an effective Marketing Mix
Product
Promotion
Price
Place
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1-7
Developing and Implementing
Marketing Plans
• Renaissance Spirometry -- NPB
– Conducted marketing research
• interviews,focus groups, telephone surveys, usage
experiences, usage frequencies from doctors
– Quality deployment function: translate
customer requirements into engineering
specifications
– Potential users evaluate product through each
step of product development
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1-8
4
Evaluating the Effectiveness of
Marketing Plans
• Controlling or the Control Function
– Getting feedback from the marketplace
– Taking necessary or corrective actions
• Example Questions
– Is the market share rising/declining/not moving? Why?
– Who uses the product?
– Are the answers consistent with company goals?
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1-9
Common Views of Marketing
Research
•
•
•
•
•
•
•
Gathering data from markets
Conducting customer surveys
Determining the needs of customers
Evaluating customer response to advertising
Testing products in the market place
Estimating the potential sales of product
Gathering sales and market share data of
competitors
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5
Marketing Research Definition
• A set of techniques and principles for
systematically collecting, recording,
analyzing, and interpreting data that can aid
decision makers who are involved with
marketing goods, services or ideas
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1-11
The Role of Marketing Research
in Analysis and Interpretation
• Marketing Research can be used to identify
“profitable customers” and “not-profitable
customers”
– Profitable Customers: those who are more
likely to spend large amounts of money and
become repeat customers
– Not-Profitable Customers: those who are more
likely to spend less money on each transaction
and might not return
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6
Importance of Analysis and
Interpretation
Few Customers, Large Volume/per Customer
– Profitable Target Market
Large Number of Customers, Low Volume/per
Customer -- Not-Profitable
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1-13
Research Results and
Management Decisions
• Kellogg sought foreign markets in which to
expand
Latvians prefer a hearty plate of sausage,
cold cuts,potatoes,eggs, and a few slices of
thick, chewy buttered bread.
Mexicans and Indians prefer hot,
spicy breakfasts.
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7
Research Results and
Management Decisions
• Marketing research conducted by Kellogg
did not forecast enthusiastic response in the
countries—Kellogg decided to pursue these
markets, anyway !
• Kellogg cereals’ appeal is limited to a small
health-conscious group.
• Will it work?
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1-15
Marketing Research Applications
•
•
•
•
Gathering data from markets
Conducting customer surveys
Determining the needs of your customers
Evaluating customer response to advertising
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8
Marketing Research Applications (Cont’d)
• Gathering sales and market share data on
your competitors
• Testing your products in the marketplace
• Estimating potential product sales
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1-17
Classification of Marketing
Research
• Basic Research : to generate or create
knowledge
– Journal of Marketing articles
• Applied research
– To solve a problem
– To develop strategies for products and services
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9
Marketing Services
• Claritas Inc -- Specializes in providing marketing
information to companies
• Key supplier of information containing the
profiles and life-styles of U.S. consumers on a zip
code-by-zip code basis
• Developed a information base by combining U.S.
Census Bureau demographic data with lifestyle/attitudinal data generated through various
regional surveys
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In-house Marketing Research
• Formal Marketing Department
– Centralized: one marketing department for all
product lines
– Decentralized: separate marketing departments
for individual product lines
– Hybrid : combination of centralized and
decentralized
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10
External Marketing Research
• Large Commercial Firms:
– AC Nielsen provides full service, planning through
recommendations
• Small Commercial Firms
– Specialize in one part of the process
– Custom Research Inc. provides
marketing research,customer
satisfaction, and database
marketing services
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External Marketing Research
(Cont’d)
Academic Consultants
Professors and students’
research projects
Trade Associations
International trade site
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11
Exhibit 1.4 Illustrative Centralized Marketing
Research Function in a Multibrand Company
Corporate Marketing Research Department
Responsibilities include:
•
Designing Studies
•
Constructing Questionnaires
•
Selecting Samples
•
Collecting Data
Corporate Marketing Department
•
Analyzing Data
•
Preparing Reports
•
Choosing External Research Providers
Research
Reports
Research
Requests
Marketing of
Brand A
Marketing of
Brand B
Marketing of
Brand C
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1-23
Exhibit 1.5 Illustrative Decentralized Marketing
Research Function in a Multibrand Company
Corporate Marketing Department
Marketing of
Brand A
Requests
Marketing of
Brand B
Reports
Marketing Research
Department for Brand A
Requests
Marketing of
Brand C
Reports
Marketing Research
Department for Brand B
Requests
Reports
Marketing Research
Department for Brand C
Responsibilities Include:
Responsibilities Include:
Responsibilities Include:
• Designing Studies
• Constructing Questionnaires
• Selecting Samples
• Collecting Data
• Analyzing Data
• Preparing Reports
• Choosing External Research
Providers
• Designing Studies
• Constructing Questionnaires
• Selecting Samples
• Collecting Data
• Analyzing Data
• Preparing Reports
• Choosing External Research
Providers
• Designing Studies
• Constructing Questionnaires
• Selecting Samples
• Collecting Data
• Analyzing Data
• Preparing Reports
• Choosing External Research
Providers
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1-24
12
Exhibit 1.6 Illustrative Mixed-Structure Marketing
Research Function in a Multibrand Company
Corporate Marketing Research Department
Corporate Marketing Department
Responsibilities include:
•
Collecting Data
•
Analyzing Data
•
Preparing Reports
•
Choosing External Research Providers
Research Reports
Shared
Responsibilities
for Research
Marketing of Brand
A
Marketing of Brand
B
Marketing of Brand
C
Research Requests
Research Requests
Research Requests
Marketing Research
Department for Brand A
Marketing Research
Department for Brand B
Marketing Research
Department for Brand C
Responsibilities Include:
Responsibilities Include:
Responsibilities Include:
• Designing Studies
• Constructing Questionnaires
• Selecting Samples
• Designing Studies
• Constructing Questionnaires
• Selecting Samples
• Designing Studies
• Constructing Questionnaires
• Selecting Samples
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1-25
MR at BK -- Brand Research
and Analysis Department
• Decentralized Function: Four separate groups
within the department help to segment out the
research into areas of specialty
–
–
–
–
Consumer research
Sales analysis group
Competitive/secondary information
Customer satisfaction
• Centralized Function: Director of the department
keeps the 4 groups unified in their goals and task
allocation
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13
Careers In Marketing Research
• The field of marketing research provides a
vast array of job opportunities ranging from
titles such as:
– Data Entry Clerk; Tabulation Specialist;
Programmer
– Interviewer (telephone or field)
– Research Analyst
– Marketing Research Manager/Director
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Careers In Marketing Research
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14
Careers In Marketing Research (Cont’d)
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Chapter 2
The Marketing
Research
Process
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First Edition
15
Colgate-Palmolive- MR in Action
Palmolive was falling behind Nivea in Germany
CAT Test:
Competitive
Advertising Testing
Marketing research determined:
1. Current German advertising focused on functionality
2. Consumers reacted more favorably to advertising with
emotional appeal
Used to quantify
consumer’s
emotional responses
to determine which
competitor’s
advertising is the
most effective
Developed a new Palmolive commercial
Preformed CAT Test:
*100 viewers
*open-end impressions & a structured Viewer Response
Profile (VRP Survey Questionnaire)
CAT Test showed favorable results
Palmolive passed Nivea in German markets!
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2-31
VRP Questionnaire - Colgate
Do Not
Agree
The spot expresses
something important
to me
The ad appeals to me
personally
Fully
Agree
1
2
3
4
5
6
7
1
2
3
4
5
6
7
I would like to see the
spot again
1
2
3
4
5
6
7
The spot is eye catching
1
2
3
4
5
6
7
1
2
3
4
5
6
7
The spot invites me to
dream
1
2
3
4
5
6
7
The spot makes me
curious to try
1
2
3
4
5
6
7
The spot is convincing
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16
Palmolive vs. Nivea
7
Fully Agree
6
5
Level of Agreement
4
Nivea
3
Palmolive
2
Do Not Agree
1
spot invites
me to dream
convincing
curious to try
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2-33
Research Process
• The Research Process is an interrelated
sequence of steps that make up a research
project
• The steps are:
–
–
–
–
Justify the need for marketing research
Define the research objective
Identify data needs
Identify data sources
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17
Research Process (Cont’d)
• The steps are: (cont’d)
– Choose appropriate research design and data collection
method
– Design the research instrument or form
– Identify the sample
– Collect data, including any relevant secondary data
– Analyze and interpret the data
– Present the research findings to decision makers
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2-35
Exhibit 2.1 Research Project Steps
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18
Justify the Need for Marketing
Research
• Four Considerations:
– Potential usefulness of the results
– Management attitudes towards marketing
research
– Resources available for implementation
– Costs vs. benefits
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Defining the Research Objective
• Most Critical Step:
– Establishing the project’s purpose through
effective communication between the decision
maker and the researcher allows them to
establish clear-cut agreed upon research
objectives
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19
Defining the Research Objective
(Cont’d)
• Key: Accurate definition of the problem and all
potential causes
• Marketing Problem
– Exploratory research fueled by client/researcher
communication
– Potential cause
• Decide which causes most directly effect the problem
• Decide if these issues are worth following
• Goal: Decide on clear cut research objectives
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2-39
Pac - N- Sac Paper Products
Company– Defining the Research
Objective
• Marketing Problem: Paper product sales down
– Manager assumes that the potential cause is a
promotional problem
– Team decides if these issues are worth following up on
– They decide that the goal will be to find more effective
promotions
• Actual Problem: Industry sales decreasing
– Because they did not consider all the possible causes,
they missed the true cause of the sales decline
– Faulty research objectives = Faulty recommendations.
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Identifying Data Needs
• Steps
– Scrutinize the research purpose
– List the types of data that will fulfill this
purpose
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Identifying Data Sources
• Primary Data
– Data obtained directly from consumer to fulfill
a specific purpose
• Secondary Data
– Data that are readily available from other
sources
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21
Choosing the Appropriate
Research Design
• Research Proposal:
– Serves as a blueprint for the execution of the product
• Explains:
–
–
–
–
–
–
–
Purpose and scope of the project
The specific design of the project
Sample design
Data collection procedures
The data analysis plan
The project timetable
The estimated cost of the project
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2-43
Choosing the Appropriate
Research Design (Cont’d)
• Example Dialogue Questions:
–
–
–
–
Why am I conducting this research?
How will I tell if my project has been a success?
When and where will data be collected?
Which pieces will be done internally and which will be
done externally?
– How will results be communicated in the organization?
• Goal:
– Stimulate meaningful dialogue between the researcher
and decision maker
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22
Questions That Need to Be
Answered by the Client/Marketing
Researcher Team
•
•
•
•
•
•
Why am I conducting this research ?
How will I tell if my project has been a success ?
What method will be used ?
What questions will be asked ?
Who will be interviewed ?
How will you get contact information for potential
respondents?
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2-45
Questions That Need to Be
Answered by the Client/Marketing
Researcher Team (Cont’d)
• When and where data will be collected ?
• Which pieces will be done internally and which
will be done externally ?
• What statistical analysis will be performed ?
• How will the results be communicated in the
organization?
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23
Design the Research Instrument
or Form
• Relevant when you are using primary data
• Interviews
• Observation
• The type of form used can seriously effect the
nature and/or the quality of the data.
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Identifying The Sample
Who or what type of units?
From where should the
units come?
How should the units be
chosen?
How many units?
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Collecting the Data
• Interviewer-administered Survey
• Self-administered Survey
• Before Data Analysis there are two
processes:
– Editing - ensuring that the data is complete and
correctly filled out
– Coding - transforming into a suitable form for
analysis
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2-49
Analyzing Data and Interpreting
Results
• The types of data analysis used depend on
the nature of the data
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25
Chapter 3
Types of
Marketing
Research
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First Edition
Chapter Objectives
• Distinguish between exploratory research
and conclusive research and discuss the role
each plays in research projects
• Illustrate five approaches for conducting
exploratory research
• Distinguish between the two types of
conclusive research: descriptive research
and experimental research
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26
Chapter Objectives (Cont’d)
• Distinguish between conducting a crosssectional descriptive study and a
longitudinal descriptive study
• Understand how to conduct experimental
research
• Determine which type of research to
conduct
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3-53
Coke Classic is Flat!
•25
•20
•Global
•Market
•Share
•15
•Coke Classic
•Mt. Dew
•Sprite
•10
•5
•0
•1995
•1996
•1997
•1998
•1999
•2000
•2001
•Years
Source: Created from data available at www.beverage-digest.com.
See Special Issues (1996-2001) Beverage Digest/Maxwell Top-10 Data.
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27
Coke’s Global Customers
• Coca Cola Conducts Global Research
– Anthropologists conducted an exploratory study of
Mexican lifestyles
– Ethnographers conducted observational studies of
Europeans and Thais
– Sociologists performed in-depth analyses of Japanese
consumption patterns
– Employees, along with marketing researchers, observed
consumers in different parts of the world
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3-55
Always Coca-Cola to Enjoy!
• Global Research Showed
– “Always Coca-Cola” worked well in the U.S. but did
not in other countries because it meant very little to
Asian consumers
– In Britain, half of all cola drinks are consumed warm—
reduced the potential appeal of Coca-Cola
– Coca-Cola launched new campaign in January 2000 –
based on the theme: “ENJOY”
– Several different commercials –adopted to each country
revolved around the theme “ENJOY”
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28
Exploratory Research
• Develop initial hunches or insights
• Provide direction for any further research
needed
• Purpose:
– To shed light on the nature of the situation and
to identify any specific objectives or data needs
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3-57
Conclusive or Confirmatory
Research
• To verify insights and to aid decisionmakers in selecting a specific course of
action
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29
Conclusive or Confirmatory
Research
PURPOSE: to aid in the decision-making process
from Chapter 1
Marketing
Research
Marketing
situation calling
for decision(s)
Decisionmaking activity
Final
decision(s)
Organization’s
internal and
external
environments
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3-59
Modern Office Designs
• Facts:
– Company that manufactures a broad line of
office equipment and sells to organizations
– Industry experiencing healthy growth in sales
• Problem:
– Modern Office Designs sales and profits are
declining
– Should the company conduct exploratory or
conclusive research?
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30
Modern Office Designs (Cont’d)
• Exploratory Research fueled by
client/researcher communication
• Potential Cause
– Decide which causes most directly effect the
problem
– Decide if these issues are worth following
• Goal: To decide on clear cut research
objectives
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3-61
Saver’s Nations Bank
• Facts:
– Growing competition from variety of financial
institutions offers a unique set of financial services
– Bank performing well and experiencing rapid growth
since inception
• Problem:
– Bank wants to ascertain the demographic composition
of customers and their perceptions of the bank’s
strengths and weaknesses
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31
Trent Eating Association
• Facts:
– Operates a chain of restaurants in eight communities
– Maintains image of high-class restaurant chain serving
excellent food at premium prices
• Problem:
– Wondering whether a 15% reduction in prices would
hurt or help
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3-63
Differences Between Exploratory
and Conclusive Research
• Research Project Components: Research
Purpose
– Exploratory Research
• General: To generate insights about a situation
– Conclusive Research
• Specific: To verify insights and aid in selecting a
course of action
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Differences Between Exploratory
and Conclusive Research (Cont’d)
• Research Project Components: Data needs
– Exploratory Research
• Vague
– Conclusive Research
• Clear
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3-65
Differences Between Exploratory
and Conclusive Research (Cont’d)
• Research Project Components: Data sources
– Exploratory Research
• Ill-defined
– Conclusive Research
• Well-defined
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Differences Between Exploratory
and Conclusive Research (Cont’d)
• Research Project Components: Data
collection form
– Exploratory Research
• Open-ended, rough
– Conclusive Research
• Usually structured
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3-67
Differences Between Exploratory
and Conclusive Research (Cont’d)
• Research Project Components: Sample
– Exploratory Research
• Relatively small; subjectively selected to maximize
generalization of useful insights
– Conclusive Research
• Relatively large; objectively selected to permit
generalization of findings
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3-68
34
Differences Between Exploratory
and Conclusive Research (Cont’d)
• Research Project Components: Data
collection
– Exploratory Research
• Flexible; no set procedure
– Conclusive Research
• Rigid; well-laid-out procedure
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3-69
Differences Between Exploratory
and Conclusive Research (Cont’d)
• Research Project Components: Data
analysis
– Exploratory Research
• Informal; typically non-quantitative
– Conclusive Research
• Formal; typically quantitative
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Differences Between Exploratory
and Conclusive Research (Cont’d)
• Research Project Components:
Inferences/recommendations
– Exploratory Research
• More tentative than final
– Conclusive Research
• More final than tentative
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3-71
Types of Data for Exploratory
Research
•
•
•
•
•
Key informant
Focus groups
Secondary data
Observation studies
Case studies
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Key Informant--Interviews with
Knowledgeable People
• Silicon Graphics’s key customers:
– Industries needing realistic generated images
for film
• Boeing
• Disney
• NASA
• Silicon Graphics decides to explore some
new product development
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3-73
Silicon Graphics Is Using the
Key Informant Technique
• Key Customer:
– Industries needing realistic generated images for film
– Silicon Graphics needs to identify key industry experts
within their customer base
• Through interviews they determine industry needs
• They develop new visual graphics software
– Then they filter this into their product development
ideas
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37
P&G
• A leader in the detergent market
– Interested in developing a new detergent to
arrest sagging profits in a mature market
• P&G looks to conduct research with
managers in appliance industries and key
lead users from dry cleaning industries
• Who else should they talk to?
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3-75
Muscular Dystrophy Family
Foundation®
• MDFF wants to start a new program to aid people
with serious physical handicaps
• They are wondering about what kinds of
charitable programs to begin and about what
strategies to develop in order to seek
donations from the public
– Who should the MDFF talk to?
• Officers in well-established public service organizations, such
as the United Way, the American Red Cross, and the American
Cancer Society.
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Srivats Software Solutions
• Interested in developing high resolution
images
– Who should they talk to?
• Hollywood animation researchers, NASA
researchers, and X-ray specialists
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Allocate Campaign Resources
• George Bush, Jr. President of the United
States, is wondering how to allocate
campaign resources efficiently across
various regions of the country
– Who should he talk to?
• State and local party officials with knowledge about
public sentiment and attitudes in their respective
areas
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Focus Groups
• 8 to 12 individuals
• Moderator (a well-trained researcher)
• Informal discussion about research topic
Individuals
Moderator
Discussion
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Duties of a Moderator
• Guide discussion
• Ensure key aspects of the topic are
discussed
• Observe
• Record
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40
Pharmacia Biotech
Young
Researcher
Doctoral level
persons, ages 24-45
moderator
Young
Researcher
Young
Researcher
Young
Researcher
Young
Researcher
Young
Researcher
Young
Researcher
Young
Researcher
Young
Researcher
Young
Researcher
• Double headed arrow indicates perceptions of
Biotech’s competitive offerings and the
effectiveness of existing communications
• Insight: Young scientific researchers rated
Pharmacia Biotech as dull and out of touch
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3M
• Strongly positioned in the home & leisure
business-sponges, scouring pads,scrub sponges
• Lacked a presence in Wool-Soap-Pads segment
• Conducted focus groups with consumers around
the country
• Finding:standard steel wool pads scratched
consumers’ cookware
• Led to the idea for Scotch-Brite Never Scratch
Soap Pad
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Opening Sears Stores in New
York Using Secondary Data
• Marketing Problem
– The company wanted to open 10 new full-line
department stores in New York, including one in
Manhattan
• Internal Secondary Data
– Examined the sales figures of all Sears stores
• Insight
– Stores in New York already produced second largest
revenue totals, next only to California.
– Sales in the State’s 130 existing retail stores
experienced double-digit growth in the past two years
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Opening Sears Stores in New York
Using Secondary Data (Cont’d)
• Leveraging the Store Loyalty
– New York customers have been very loyal to
Sears --this strength can be leveraged to open
more stores to close gaps in market coverage
• Census Data--External Secondary Data
– Helped to determine how each store could meet
the needs of the community
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Case Studies
• In depth examination of a unit of interest
• Possible units:
–
–
–
–
–
Customer
Website
Store
Salesperson
Firm
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Case Studies (Cont’d)
• Possible Examination Factors:
– Store
•
•
•
•
•
Morale
Size
Product lines
Layout
Trade area characteristics
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Observation
• Human or mechanical observation of what
subjects actually do in a particular situation
• Record information as events occur or
compile evidence of past events
• Assesses behavior which can be translated
into new products or improvements of
current products
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Observation (Cont’d)
• Whirlpool designed new controls for their
appliances after observing users worldwide
• Steelcase created an entirely new officespace-design concept after observing
interactions among client’s employees
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Observation (Cont’d)
• Rubbermaid routinely sends its employees
to consumers’ homes to observe homestorage practices
• Ford has been collecting observational data
using video ethnography-”not so much to
understand what people do, but to
understand who they are and how they live
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Discovering New Market Needs
— 3M Shows the Way
• 3M’s Medical-Surgical Market Division- to
develop a breakthrough product for the surgical
drapes unit
• Sales of the product amounted to $100 million
annually-but the drapes market was languishing
• NEED: To bring in radically new products
• 3M selected developing countries, where
infectious diseases are a major problem
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Discovering New Market Needs
– 3M Shows the Way (Cont’d)
• Observed how doctors work in the
operating room in different countries
• Observational Insight : The hospitals cannot
afford surgical drapes and therefore, require
a cheaper and more effective way to prevent
infections from starting or spreading that
does not depend on antibiotics
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Types of Conclusive Research
• Descriptive
– Generates data on the composition and
characteristics of a specific group such as
customers, sales people, and market areas
• Experimental
– Generates data to determine causal
relationships
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Descriptive Research--Proportion of
High- and Low-income Customers in
Saver’s Nations Bank clientele
S a v e r ’s N a ti o n s B a n k
N u m b e r ( % ) o f C u s t o m e r s P e r c e iv in g S N B a s
Not
C o n v e n ie n t ly
C o n v e n ie n t ly
C u s t o m e r s ’ I n c o m e le v e l
L o ca te d
L ocated
T o ta l
L e s s t h a n $ 3 0 ,0 0 0
450 (90% )
5 0 (10% )
5 0 0 (1 0 0 % )
$ 3 0 ,0 0 0 o r m o r e
150 (30% )
3 50 (70% )
5 0 0 (1 0 0 % )
What is the relationship between customer’s income level
and customer’s perception of location ?
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Descriptive Research
• Cross-sectional Studies
– Data collected at a single period in time from a
cross-sectional sample of the unit of interest
that is disbanded after the data collection
• Longitudinal Studies
– Repeated measurements taken over a long
period of time from a panel group or sample of
the unit that is maintained for future
measurements
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Cross-sectional Studies
• Data collected at a single period in time
from a cross-sectional sample of the unit of
interest that is disbanded after the data
collection
– Conducted in a single time period
– Uses a cross-sectional sample of the unit
– Once the study is complete the sample is
disbanded and not used again
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Longitudinal Studies
• Repeated measurements taken over a long period
of time from a panel group or sample of the unit
that is maintained for future measurements
– Measurements taken during many different time
periods
– Measurements taken from a panel
– A PANEL is a sample of units that is maintained for
multiple measurements taken during multiple time
periods
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Longitudinal Studies (Cont’d)
• Types of Panels
– OMNIBUS PANEL: different subjects are
pulled from the panel for each time period
• Drawbacks: data is not as reliable
– TRUE PANEL: the same subjects are used for
the panel every time data is collected
• Drawbacks: members sometimes evolve out of the
desired study group or are induced by the study to
change their practices thus tainting the data
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Table 3.4 Results of Longitudinal
Brand Use Study
Number of Consumers Using
Brand at the end of
Use of
Period 1
Period 2
Brand X
40
42
Brand Y
30
29
Brand Z
30
29
Total
100
100
What insights can you gain from this table?
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Table 3.5 Changes in Brand
Shares: Case 1
Number of Customers Using Each
Brand at the End of Period 2
Number of Consumers Using Brand
at the end of Period 1
X
Y
Z
Row Total
X
17
21
2
40
Y
23
5
2
30
Z
2
3
25
30
Column Total
42
29
29
100
What insights can you gain from this table?
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Table 3.6 Changes in Brand
Shares: Case 1
Number of Customers Using Each
Brand at the End of Period 2
Number of Consumers Using Brand
at the end of Period 1
X
Y
Z
Row Total
X
38
1
1
40
Y
2
27
1
30
Z
2
1
27
30
Column Total
42
29
29
100
What insights can you gain from this table?
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Experimental
• A consumer goods firms wants to determine
the impact of advertising on sales.
• How should they measure the impact of
advertising on sales?
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Experimental (Cont’d)
Before/After Design
1. Pick similar market
areas
2. Change
advertising
expenditure
within those
market areas
3. Leave other
affecting variables
the same
1
2
3
NewMeasurements
Advertising
Take
Same price
Same promotion
4. Measure changes
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Experimental (Cont’d)
Multi-group Design
Units
All variables stay the same
Change one variable
Control
Group
Experimental
Group
Measure the differences.
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Research Continuum
Most projects fall in here, aspects of both
descriptive and experimental.
Purely
Descriptive
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Purely
Experimental
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No
Is the research purpose
specific and are data
requirements clear?
Conduct exploratory research with
these procedures:
-Key informant technique
-Focus group interviews
-Secondary-data analysis
-Case study method
Yes
Yes
Design conclusive research
Analyze data/interpret findings
No
Is there a need for further research
Does the research purpose call for
testing cause-and-effect
relationships between variables?
Yes
No
Conduct a suitable
descriptive-research study
Conduct an appropriate
experimental-research study
Analyze data/interpret findings
Exhibit 3.6 Selecting the
Appropriate Research
Type
Make recommendations
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