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Growth of the Need for Marketing Research
• The Industrial Revolution led to manufacturers producing goods for distant markets.
• Manufacturers needed to know about faraway consumers.
• This led to the growing need for marketing research.
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The Marketing Research Process
Steps1 Establish Need2 Define Problem3 Research Objectives
4 Determine Design5 Identify Information Sources6 Decide Data Collection
Method7 Design Questionnaire8 Determine Sample Plan &
Size
9 Collect Data
10 Analyze Data11 Write and Present Report
Figure out what to research (Chapters 2 & 4)
Design the way to do the research (Chapters 5-13)
Gather data from respondents (Chapter 14)
Generate findings and interpret them (Chapters 15-20)
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Caveats: The Marketing Research Process• Not always presented as an 11-
step process • Not all studies use all 11 steps
Few studies follow the steps in order
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Step 1: Establish the Need for Marketing Research
• When is marketing research NOT needed?
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Classifying Firms in the Marketing Research Industry
• Research Suppliers– Internal Suppliers–External Suppliers• Limited Service Suppliers• Full Service Suppliers
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Industry Structure: Internal Suppliers
• Internal suppliers: an entity within the firm supplies marketing research
• Methods of Organization• Marketing function: ad research,
product research, pricing research, channel…• Research process: data analysis, data
collection…• Area of application: brands,
customers...3-7
Industry Structure:External Suppliers
• External suppliers: outside firms hired to fulfill a firm’s marketing research needs
• Methods of Organization– Function: data analysis & collection…– Type of research application: ad
research…–Geography: domestic, international…– Types of customers, finance, health–Combination of the above
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The Marketing Research Industry
Classification of Marketing Research Suppliers
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ETHICS
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Some Ethical Marketing Research Situations: Class Exercises
Is this Ethical?
1. A research company decides to leave a message on prospective respondents’ answering machines telling them that if they call back in the next 24 hours, they will receive a valuable prize if they take part in a survey.
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Is this Ethical?
2. Upon completion of an interview, the respondent is asked to provide the names and telephone numbers of others he or she thinks should take part in the survey.
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Is this Ethical?
3. A door-to-door salesman finds that by telling people that he is conducting a survey, they are more likely to listen to his sales pitch.
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Is this Ethical?
4. The cover letter of a mail questionnaire says that it will "only take a few minutes to fill out." But pretests have shown that at least fifteen minutes are needed to fill it out.
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Is this Ethical?
5. Telephone interviewers are instructed to assure the respondent of confidentiality only if the respondent asks about it.
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Is this Ethical?
6. A client insists on inspecting the completed questionnaires to assess their validity, but the researcher suspects that the client is really interested in finding out what specific respondents said about the client.
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Is this Ethical?
7. In the appendix of the final report, the researcher lists the names of all respondents who took part in the survey, and places an asterisk beside the names of those who indicated agreement to be contacted by the client's sales personnel.
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Ethical Issues with Online Surveys
• Spam surveys…
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Why are Ethical Issues Problematic?
• Two competing ethical philosophies:– Deontology holds that if an (any)
individual's rights are violated, then the behavior is not ethical.
– Teleology says to judge a given behavior in terms of its benefits and costs to society: if there are individual costs but group benefits, then there are net gains (versus net losses) and the behavior is judged to be ethical.
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Ethical Issues – Research Integrity
• Sugging – selling under the guise of conducting research
• Frugging – fund-raising under the guise of conducting research
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Ethical Issues – Research Integrity
• Misrepresentation and omission of pertinent research data– Changing results to suit need–Making up results from scratch
• Treat clients, suppliers, and the public fairly
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Ethical Issues with Respondents
• Respondent cooperation has been going down
• Marketing researchers should:–Eliminate or keep deception to a
minimum– If promised, guarantee
anonymity or confidentiality–Fight invasions of privacy such as
telemarketing and SPAM3-22
Panels• Marketing research companies are
making greater use of panels• Recruiting respondents who agree
to participate in future studies• Panel Equity, the value of having
access to a large number of consumers willing to cooperate in studies, will increase in the future
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