Marketing
Chapter 9
Marketing Research
and Information
Systems
Dhruv Grewal
Michael Levy
McGraw-Hill/Irwin
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.
9-2
Harrah’s Entertainment, Inc.



82% of revenue came from 26%
of customers
Not high rollers but middle aged
workers and seniors
Three tier reward structure
designed to meet the needs of
those customers
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-3
Marketing Research
Marketing research: Consists of a set of
techniques and principles for systematically
collecting, recoding, analyzing and
interpreting data that can aid decision
makers involved in marketing goods,
services or ideas.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-4
Using Marketing Information Systems
to Create Better Value

Marketing Information
System (MkIS)

Data warehouse

Data mining
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-5
The Ethics of Using Customer Information
Bottom Line: Marketing research should be used only
to produce unbiased, factual information.
Council of American Survey Research Organizations Code of Ethics
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-6
What Would You Do?
Consider Aaron, a marketing researcher


He has just finished giving a
successful presentation to a major
client.
The client has asked for a list of
companies that participated in the
study and copies of all the
completed surveys.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-7
Test Your Knowledge
When conducting research, why must researchers assure
respondents that the information they provide will be treated as
confidential?
A)
It is the law
B)
Customers will be more likely to make purchases
C)
Customers will be more likely to provide
honest responses
D)
It is a requirement of the AMA
9-8
The Marketing Research Process
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-9
Step 1: Defining the Objectives and
Research Needs
What information is needed
to answer specific research
questions?
How should that
information be
obtained?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-10
Step 2: Designing the Research Project
Secondary data
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Primary data
9-11
Syndicated Data
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-12
Test Your Knowledge
How does syndicated data differ from secondary data?
A)
Secondary data tends to be more reliable
B)
Syndicated data only provides pricing trends
C)
Secondary data is not as readily available as
syndicated data
D)
Syndicated data is purchased from a research
firm
9-13
Advantages and Disadvantages of
Secondary and Primary Data
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-14
Adding Value 9.2: Using Weblog
Information



3.2 Million Weblogs or blogs
available worldwide
Provide a source of information
for marketers
Companies now track blogs to
gain customer insight
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-15
Step 3: Data Collection Process
Exploratory research
Conclusive research
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-16
Exploratory Versus Conclusive Data
Collection
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-17
Exploratory Methods



Observation
In-depth interview
Focus group
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-18
Test Your Knowledge
Which of the following research methods gathers qualitative
data about initial reactions to a new or existing product or
service, opinions about different competitive offerings, or
reactions to market stimuli?
A)
focus groups
B)
in-depth interviews
C)
projective research
D)
all of these are correct
9-19
Using Exploratory Research
How can a firm use exploratory research to uncover
consumers’ attitudes toward their product/service?
9-20
Case in Point: Kit Kat Bars
Challenge
Answer
Results
Kit Kat bars were losing appeal
among younger consumers
while remaining popular with
consumers aged 25 -40.
Qualitative interviews were
conducted with younger
consumers. New forms of Kit Kat
bars were sampled. The interviews
were followed with focus groups.
The introduction of the Kit Kat
chunky, a single large Kit Kat bar.
9-21
Ethical Dilemma 9.1: Watching
Consumers



Marketing research firms dedicated to
watching consumers.
Gather data that would not otherwise be
available.
Should researchers get consent prior to
observing?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-22
Conclusive Research Methods
Can be either:
Descriptive
Experimental
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-23
Survey Research
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-24
What Not to Do When Designing a
Questionnaire
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-25
Web Surveying

Response rates are
relatively high

Respondents may lie less

It is inexpensive

Results are processed
and received quickly
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-26
Test Your Knowledge
What is the typical response rate for online surveys?
A)
1 – 2 percent
B)
10 – 15 percent
C)
30 – 35 percent
D)
40 – 45 percent
9-27
Using Web Surveying
How do firms successfully use web surveying?
9-28
Case in Point: Derham Marketing
Research, Ltd.
Challenge
Answer
Results
Derham Marketing Research Limited was
looking for a reliable means of writing,
delivering and analyzing online surveys.
Partnering with Form Artist software that
allowed the firm to have internal control
over their online surveys.
Derham has saved money, kept costs
down, increased control. Quantifiable
benefits: saved on average 2 days at
least in project turnaround, and often up
to a week. Reporting can be the same
day, also saving up to a week. Electronic
files saved paper and clarified the
reporting procedure. The capacity to copy
and paste has saved further re-handling
and ensured accuracy of any information
carried across to the clients' own
systems.
9-29
Experimental Research
Variable 1 (e.g., price)
systematic manipulation
Variable 2 (e.g., quantity)
Profitability
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-30
Using Experimental Research
How can firms use experimental research to improve
value for customers and the firm?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-31
Case in Point: It’s Beginning to Smell a
Lot Like Christmas
Challenge
Answer
Results
Retailers need to get shoppers
into the holiday spending mood.
Use an experiment to determine what
factors in the retail environment
contribute to customers “holiday
spending mood”.
Retailers who used holiday music
and holiday scents together were
viewed more favorably, the
merchandise in the store was rated
higher, and purchase intentions
increased compared to retailers who
used either alone or non-congruent
music and scent.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-32
Scanner Research
Information Resources, Inc.
AC Nielsen
What if I
reduce my
price by
10%?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-33
Panel Research
Group of
consumers
Survey or
sales receipts
What are they
buying or not
buying?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-34
Step 4: Analyzing Data
Converting data into information to explain, predict and/or
evaluate a particular situation.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-35
Step 5: Presenting Results





Executive Summary
Body
Conclusions
Limitations
Supplements
–
–
–
Tables
Figures
Appendixes
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
9-36
Test Your Knowledge
Which of the following should NOT be included in a marketing
analysis results report?
A)
recommendations to management
B)
technical jargon
C)
supportive tables and figures
D)
methodology used
9-37
Chapter 9 Glossary










Conclusive research: Provides the information needed to confirm preliminary insights,
which managers can use to pursue appropriate courses of action.
Data mining: Technique that uses a variety of statistical analysis tools to extract
valuable database information and uncover previously unknown patterns in the data or
relationships among variables.
Data warehouse: Large computer files of individual data consisting of customer
information and purchase history.
Exploratory research: Attempts to begin to understand the phenomenon of interest; it
also provides initial information when the problem lacks any clear definition.
Focus group: An exploratory research technique in which trained researchers ask
questions, listen to and record answers, and then pose additional questions to clarify or
expand on a particular issue.
In-depth interview: An exploratory research technique in which trained researchers ask
questions, listen to and record the answers, and then pose additional questions to clarify
or expand on a particular issue.
Marketing Information System (MkIS): A set of procedures and methods that apply to
the regular, planned collection, analysis, and presentation of information that then may
be used in marketing decisions.
Observation: Exploratory research method that entails examining purchase and
consumption behaviors through personal or video camera scrutiny.
Primary data: Data collected to address specific research needs.
Secondary data: Pieces of information that have already been collected
from other sources and usually are readily available.