Business Research Skills:
Essentials of Market Research
WLU MBA BU 610 Workshop
F.H.Rolf Seringhaus
Professor
Saturday, January 15, 2005
Marketing Research 7th Edition
Aaker, Kumar, Day
Marketing Research 7th Edition
Aaker, Kumar, Day
Introduction
The Market Research Process
The Research Design
Methods of obtaining Information
What Information do we want?
Summary
Marketing Research 7th Edition
Aaker, Kumar, Day
Introduction
Marketing Research 7th Edition
Aaker, Kumar, Day
Role of Market Research
Specifies information required
Designs method for collecting information
Manages and implements data collection
process
Interprets results & communicates
findings
Marketing Research 7th Edition
©
Aaker, Kumar, Day
Marketing Research 7th Edition
Aaker, Kumar, Day
Ethics in Marketing Research
Ethics of the Sponsor

Overt and covert purposes

Dishonesty in dealing with suppliers

Misuse of research information
Ethics of the Supplier

Violating client confidentiality

Improper execution of research
Respondents Abuse

Falsifying answers
Marketing Research 7th Edition
©
Aaker, Kumar, Day
Marketing Research in Practice
Programmatic Research

Develops market options through market segmentation,
market opportunity analysis, or consumer attitude and
product usage studies
Selective Research

Tests different decision alternatives such as new product
testing, advertising copy testing, pre-test marketing, and
test marketing
Evaluative Research

Evaluation of performance of programs
Marketing Research 7th Edition
Aaker, Kumar, Day
The Market Research Process
Marketing Research 7th Edition
Aaker, Kumar, Day
Overview of Research Process
MR Process Evolves From Answers to
Five Key Questions

Why should we do research?

What research should be done?

Worth doing the research?

How should the research be designed to
achieve the research objectives?

What will we do with the research?
Marketing Research 7th Edition
Aaker, Kumar, Day
1.Problem definition & research questions
2.Exploratory research
Secondary
data
Preliminary
interviews
Observation
3. Formal research design
(e.g., survey, experiment)
4. Data collection
& analysis
Marketing Research 7th Edition
5. Interpreting &
reporting results
Aaker, Kumar, Day
Translate Problem into
Research Objective…
Problem/question:
should our bank offer web banking (WB)?
In which of three possible versions should the
service be offered?
Marketing Research 7th Edition
Aaker, Kumar, Day
…Translate Problem into
Research Objective…
Research questions:
Are consumers aware of WB systems?
What are consumer reactions to WB?
How do consumers react to service form A,B,C?
What are the perceived benefits of each form of
service?
Marketing Research 7th Edition
Aaker, Kumar, Day
…Translate Problem into
Research Objective
Research objectives:
Determine consumer awareness with aided
recall
Measure attitudes and beliefs about WB
Obtain ratings and rankings for each form of
service
Identify perceived benefits of, and objections to,
WB
Marketing Research 7th Edition
Aaker, Kumar, Day
Manager’s checklist:
When to use exploratory research
when existing background information is limited
to more clearly define problems or opportunities
to clearly establish research objectives
to determine if conclusive research is needed
to help design a questionnaire for conclusive
research
to investigate in more depth the findings of a
conclusive study
Marketing Research 7th Edition
Aaker, Kumar, Day
The Research Design
Marketing Research 7th Edition
Aaker, Kumar, Day
Research Design and
Implementation
Research Design

The detailed blueprint to guide the
implementation of a research study
toward the realization of its objectives
Marketing Research 7th Edition
Aaker, Kumar, Day
Three types of market research
degree of
problem
definition
possible
situation
exploratory
unaware
descriptive
aware
sales decline? who’s buying?
interest in
what features
product idea? preferred?
Marketing Research 7th Edition
causal
clearly
defined
what do they
prefer?
which campaign
more effective?
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The Sampling Concept
Universe > Sampling Frame > Sample > Respondents
Sample minus respondents = non-respondents
Respondents plus non-respondents = sample
Marketing Research 7th Edition
Aaker, Kumar, Day
Marketing Research 7th Edition
Aaker, Kumar, Day
The Concept of Sampling
Population
Sampling Frame
Sample
Respondents
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Our Poll shows 92% don’t tell the truth on Polls
Marketing Research 7th Edition
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Accuracy of Measurement
Validity
Reliability
an attitude
measurement has
validity when it
measures what it is
supposed to measure
consistency with which
the measure
produces the same
results with the
same or comparable
population
Marketing Research 7th Edition
Aaker, Kumar, Day
Methods of obtaining
Information
Marketing Research 7th Edition
Aaker, Kumar, Day
Basic Survey Methods
Personal Interview
Telephone Interview
Mail Survey
Internet Surveys
Marketing Research 7th Edition
Aaker, Kumar, Day
Personal Interviews: Advantages
Can arouse and keep interest
Can build rapport
Ask complex questions with the help of visual and other
aids
Clarify misunderstandings
High degree of flexibility
Probe for more complete answers
Accurate for neutral questions
Do not need an explicit or current list of households or
individuals
Marketing Research 7th Edition
Aaker, Kumar, Day
Personal Interviews: Disadvantages
Bias of Interviewer
Response Bias

Embarrassing/personal questions
Time Requirements
Cost Per Completed Interview Is High
Marketing Research 7th Edition
Aaker, Kumar, Day
Telephone Interviewing:
Advantages
Central location, under supervision, at own hours
More interviews can be conducted in a given time

Travelling time is saved
More hours of the day are productive
Repeated call backs at lower cost
Absence of administrative costs
Lower cost per completed interview
Intrusiveness of the phone and ease of call backs

Less sample bias
Marketing Research 7th Edition
Aaker, Kumar, Day
Marketing Research 7th Edition
Aaker, Kumar, Day
Telephone Interviewing: Limitations
Inability to employ visual aids or complex tasks
Can't be longer than 5-10 min. or they get boring
Amount of data that can be collected is relatively
less
A capable interviewer essential
Sample bias

As all people do not have phones, or are not listed
Marketing Research 7th Edition
Aaker, Kumar, Day
Mail Surveys: Advantages
Lower cost
Better results, including a shorter response
time
Reliable answers as no inhibiting
intermediary
Survey answered at respondents discretion
Marketing Research 7th Edition
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Mail Surveys: Disadvantages
The identity of the respondent is inadequately
controlled
No control over whom the respondent consults before
answering the questions
The speed of the response can't be monitored
No control on the order in which the questions are
exposed or answered
Respondent may not understand questions
No control over omissions, appropriateness of
response
Long response time
Marketing Research 7th Edition
Aaker, Kumar, Day
Mail Surveys: Disadvantages
The respondent may not clearly understand
the question and no opportunity to clarify
No long questionnaires
Subject to availability of a mailing list
Response rate is generally poor
Number of problems such as obsolescence,
omissions, duplications, etc
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Internet Surveys: some thoughts
respondent needs computer skills
respondent
completion
can
choose
own
schedule
for
easy to incorporate complex branching questions
can easily use respondent-generated words in
questions throughout survey
can accurately measure response
respondents to key questions
time
of
can easily display variety of graphics and directly
relate them to questions
eliminates need to encode data from paper
speedier data collection, coding, analysis
Marketing Research 7th Edition
Aaker, Kumar, Day
What Information do we want?
Marketing Research 7th Edition
Aaker, Kumar, Day
What kind of information do
we want to obtain?
What people say they want > attitudes
What people think is true
> beliefs
What people do
> behaviour
What people are
> attributes
Marketing Research 7th Edition
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Marketing Research 7th Edition
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Examples
Attitudes
a) should Personal Financial Advisors be
legislated?
Yes/No
b) how do you feel about legislating
Personal Financial Advisors?
1 - strongly oppose… 5 - strongly favour
Marketing Research 7th Edition
Aaker, Kumar, Day
Examples
Beliefs:
a) is this statement true or false: Personal
Financial Advisors take advantage of
older people: true/false
b) do PFAs take advantage of older
people?
1 - always … 6 - never
Marketing Research 7th Edition
Aaker, Kumar, Day
Examples
Behaviour:
a) have you ever used a Personal
Financial Advisor?
Yes/No
b) do you think you will use the services of
a PFA at some time in the future?
1-no, 2-unlikely, 3-very likely, 4-yes
Marketing Research 7th Edition
Aaker, Kumar, Day
Examples
Attributes:
a) are you currently married?
Yes/No
b) how many children have you had?
None, 1, 2, 3…
c) do you have an investment portfolio?
Yes/No
Marketing Research 7th Edition
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Designing the Questionnaire
Logical Steps to Develop a Good Questionnaire
Plan what to measure
Formulate questions to obtain the needed information
Decide on the order and wording of questions and the
layout of the questionnaire
Using a sample, test the questionnaire for omissions
and ambiguity
Correct the problems (pretest again, if necessary)
Marketing Research 7th Edition
Aaker, Kumar, Day
Open-ended questions
Question: Why did you purchase that automobile?
Individual 1:
it was on sale
Individual 2:
there were so many things I likes about
it. It had a pretty green colour, comfortable seats,
an AM/FM radio and CD player, got good gas
mileage, had an 80,000 km warranty, a V6
engine. Oh, yes, it was also on sale, so I got a
good deal on it.
Marketing Research 7th Edition
Aaker, Kumar, Day
Closed-response Questions
There Are Two Basic Formats for Closed
Ended or Structured Questions
Choice from a list of responses
Appropriate single-choice rating on a scale
Marketing Research 7th Edition
Aaker, Kumar, Day
Closed-response Questions:
Advantages
Easier to answer
Require less effort by the interviewer
Tabulation and analysis is easier
Less potential error in the way the question
is asked and the way it is recorded
The responses are directly comparable from
respondent to respondent
Marketing Research 7th Edition
Aaker, Kumar, Day
Closed-response Questions:
Limitations
Disagreement among researchers on the type of
responses that should be listed
The answer to a closed response question will be
received no matter how relevant or irrelevant the
question is in that context
May not produce meaningful results
Dichotomous questions are prone to a large
amount of measurement error because the
alternatives are polarized
Marketing Research 7th Edition
Aaker, Kumar, Day
Order Bias: Does The Question
Create The Answer?
Questions Preceding Buying Interest
Question
Percentage of
Respondents “Very Much
Interested” in Buying New
Product
1. No question asked
2.8
2. Asked only about advantages
16.7
3. Asked only about disadvantages
0.0
4. Asked about both advantages and
disadvantages
5.7
Marketing Research 7th Edition
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Guidelines for writing questions
use simple words
do not be vague
keep it short
be specific
avoid bias
do not be too specific
do not talk down to respondents
avoid objectionable questions
avoid hypothetical questions
Marketing Research 7th Edition
Aaker, Kumar, Day
Sequence And Layout Decisions
Open with an easy and non threatening
question
The questionnaire should flow smoothly
and logically from one topic to the next
Proceed from broad general questions
to the more specific
Marketing Research 7th Edition
Aaker, Kumar, Day
Proposal Development
Manager describes
problem & states
management question
Researcher translates
management question into
research question
Researcher
explores
alternative
approaches
They
disagree
Researcher
refines research
question
They
agree
Researcher elaborates
research question into
investigative question (s)
Marketing Research 7th Edition
Researcher
prepares
proposal
Manager & researcher
discuss proposal, clarify
& redefine problem &
objectives of project
Not
accepted
Manager
reviews
proposal
accepted
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Study
begins
Summary:
What’s important in market research
Understanding the role of market research
Conduct research ethically
Translating problem into research objective
A clear research design
Selecting the appropriate sample
Choosing the right survey method
Creating a clear, user-friendly questionnaire
Pre-test before launching the survey
Marketing Research 7th Edition
Aaker, Kumar, Day