Marketing Research

Marketing Research
Prepared by
D.V. Madhusudan Rao
Associate Professor-Marketing
Avinash Degree College
Kukatpally, Hyderabad

Reference Books
• Marketing Management – Kotler, keller et al
• Marketing Research an Applied Orientation
– Naresh Malhotra & S. Dash
• Business Research Methods
– Cooper & Schindler
• Marketing Research – Text & Cases
– Boyd, Westfall & Stasch

Objectives
• To know Marketing Research
• To understand the difference between
Marketing Research and Market Research
• To develop familiarity on business Research
Methodology
• To understand the relevance of MR for
managerial decision making

4-4
• Marketing research is the systematic
design, collection, analysis, and reporting
of data relevant to a specific marketing
situation facing an organization. - Kotler
• MR is the systematic gathering, recording
and analyzing of data about problems
related to the marketing of goods &
services. - American Marketing
Association
It may be relevant to add the word “continuous” to
the above definition
What is Marketing Research
Marketing research is now about a $16.5 billion industry

Types of Marketing Research Firms
Syndicated-
service
Custom
Specialty-
line
Type Examples
Syndicated-service research firms Gather & sell
Custom marketing research firms hired to carry out
Specialty-line marketing research firms (specialized in services) sells field
interviewing services to other firms.

Need for MR
• A manager takes decisions
• His responsibility is to reduce risk of failure in
decision making
• Risk arises due to lack of relevant information
• A manager always seeks information to
improve quality of decision making
• Information can be collected through MR
• Hence, MR is an important tool for managerial
decision making

Purpose of MR
• To improve quality of decision making process by
providing information
• To help reduce the risk associated with managerial
decision making
– Risk due to two types of uncertainties:
• About the expected outcome
• About the future environment
• To discover opportunity & exploit profitably
For example : Frooti, Velvette, Mother Dairy, Dhara, Pan Parag

Scope of MR
• Consumers of products & services
Buyer behaviour, Influencers, Buying habits, Incentives
• Product & product design
Pricing, Sourcing, Physical attributes
• Distribution Channels
Performance, Dealer Satisfaction, Own vs Multi-brand
• Advertising Impact
Image, Positioning, Media Planning, Message Content & Prioritizing
• Macro Level Phenomenon
Govt spending. Mood of the Industry, State of Economy

MR & Marketing Decisions
• For Production, Finance, Personnel
– Most of the required info are available within the organization; Hence
easy to collect & analyze
– Formal procedures are used to improve quality : Stats Methods for QC,
PERT & CPM, Queuing Theory, Optimization Techniques etc
• For Marketing – information mostly exist outside the
organization
– In consumer behaviour, perception, minds
– In competitive moves
– In new government rules & regulations
– In social & political changes

Contd…
• Other problems for collecting information required
for marketing decisions are
– Being external – collection is cumbersome & expensive
– Variables are often qualitative & dynamic – making
measurements difficult & inaccurate
– Variables are complex & interact with each other

The Manager-Researcher Relationship
• Manager’s obligations
– Specify problems
– Provide adequate background information
– Access to company information gatekeepers
• Researcher’s obligations
– Develop a creative research design
– Provide answers to important business questions

The Management-Research
Question Hierarchy
1 Management Dilemma
Measurement Questions
Investigative Questions
Research Questions
Management Questions
Management Decision
2
3
4
5
6

The Management-Research
Question Hierarchy
1 Why are sales declining in south
while sales are booming in all other
regions?
Conduct an employee survey for
outcomes of change in compensation
structure
If compensation scheme is changed,
will good sales persons leave?
Introduce individual incentive? Quota
based incentive? Advertise more?
Management Decision
2
3
4
5
6
13
How can we improve sales in
south?

4-14
Defining the Problem and Research Objectives
Types of objectives:
• Exploratory research
• Descriptive research
• Causal research
Marketing Research

4-15
Defining the Problem and Research Objectives
• Exploratory research is the gathering of
preliminary information that will help to
define the problem and suggest hypotheses.
• Descriptive research is to describe things
such as market potential for a product or
the demographics and attitudes of
consumers who buy the product.
• Causal research is to test hypotheses about
cause-and-effect relationships.
Marketing Research

Manager-Researcher Conflicts
• Management’s limited exposure to research
• Manager sees researcher as threat to personal
status
• Researcher has to consider corporate culture
and political situations
• Researcher’s isolation from managers

What is Good Research?
• Following the standards of the scientific method
– Purpose clearly defined
– Research process detailed
– Research design thoroughly planned
– Limitations frankly revealed
– High ethical standards applied
• Adequate analysis for decision-maker’s needs
• Findings presented unambiguously
• Conclusions justified
• Researcher’s experience reflected

The Seven Characteristics of Good MR
Scientific method careful observation, formulation of hypotheses,
prediction, and testing
Research creativity innovative ways to solve a problem
Multiple methods two or three methods to increase confidence
Interdependence of
models and data
recognize that data are interpreted from underlying
models that guide the type of information sought
Value and cost of
information
Costs are typically easy to determine, but the value of
research is harder to quantify
Healthy skepticism alert to the problems caused by "marketing myths
Ethical marketing The misuse of marketing research can harm or annoy
consumers

The Marketing Research Process
six steps as
shown in
this Figure

1) Dr. Malhotra’s Case
Dr. Malhotra:
“One day I received a
phone call from a research
analyst who introduced
himself as one of our
alumni.
He was working for a
restaurant chain in town
and wanted help analyzing
the data he had collected
while conducting a
marketing research study.”

“When we met, he presented me with a copy of the
questionnaire and asked how he should analyze the data.
My first question to him was:
What is the problem being addressed?”

“When he looked
perplexed, I
explained that data
analysis is not an
independent
exercise.
Rather, the goal of data analysis is to PROVIDE
INFORMATION RELATED TO THE PROBLEM
COMPONENTS.”

“I was surprised to learn that he did
not have a clear understanding of the
marketing research problem and that
a written definition did not exist. So
before going any further, I had to
define the marketing research
problem.”
“Once that was done, I found that much
of the data collected was not relevant to
the problem. In this sense, the whole
study was a waste of resources. A new
study had to be designed and
implemented to address the problem
defined.”

1) The Problem Definition Process
Fig. 1
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Management Decision Problem
Marketing Research Problem
Pre-step 1: Tasks Involved
Pre-step 2: Environmental Context of the Problem
Step I: Problem Definition
Step II: Approach to the Problem
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Step III: Research Design
Analytical Model:
Verbal,
Graphical,
Mathematical
Specification
of
Information
Needed

2) Pre-step 1: Tasks Involved (Discussion w/ DM)
The problem audit is a comprehensive examination of a marketing problem
with the purpose of understanding its origin and nature. A discussion with
the decision-maker (DM) includes:
1. History of the problem - The events that led to the decision that
action is needed.
2. Alternatives - The alternative courses of action available to the
DM.
3. Criteria - The criteria that will be used to evaluate the alternative courses
of action.
4. Potential Actions - The potential actions that are likely to be suggested
based on the research findings.
5. Information Needed - The information that is needed to answer the DM's
questions.
6. Uses of Information - The manner in which the DM will use each item of
information in making the decision.
7. Cultural Influence - The corporate culture as it relates to decision making.

2) Pre-step 1: Tasks Involved
• Conduct Interviews with Industry Experts
– Survey experiences professionals; useful for new products.
• Conduct Secondary Data Analysis
– Secondary data: data collected for some other purpose
other than the problem at hand; this data already exists.
– Primary data: any data that originated by the researcher
specifically to address the research problem (save this for
later).
• Conduct Qualitative Research
– Qualitative research: an unstructured, exploratory
research methodology based on small samples intended to
provide insight and understanding of the problem setting.
– Examples: focus groups, depth interviews.

3) Pre-step 2:
Consider the Environmental Context of the Problem
PAST INFORMATION AND FORECASTS
FIRM RESOURCES AND CONSTRAINTS
RESEARCH OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIRONMENT
ECONOMIC ENVIRONMENT
MARKETING AND TECHNOLOGICAL SKILLS OF
THE FIRM
Considering the following:

The Problem Definition Process (again)
Fig. 2
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Analytical Model:
Verbal,
Graphical,
Mathematical
Specification
of
Information
Needed

4) Step I: Problem DefinitionManagement Decision Problem Marketing Research Problem
Asks what the DM needs to do  Asks what information is needed
and how it should obtained
EXAMPLE
Should a new product be  What are the consumer preferences
introduced? and purchase intentions for the
proposed new product?
Should the advertising  How effective is the current
campaign be changed? advertising campaign?
Should the price of the  How elastic is the demand?
brand be increased? How will a price change impact
sales and profits?

4) Definition of the Research Problem
Broad Statement
Specific Components
Fig. 3
For example….

4) Department Store Project Example
Problem Definition:
In the department store project, the marketing research problem is to
determine the relative strengths and weaknesses of Sears, vis-à-vis other
major competitors, with respect to factors that influence store patronage.
Specifically, research should provide information on the following questions:
1. What criteria do households use when selecting departmental stores?
2. How do households evaluate Sears and competing stores in terms of the choice
criteria identified in question 1?
3. What is the demographic and psychological profile of the customers of Sears and
competitors?
Broad Statement
Specific Components

Problem Definition Process (again)
Fig. 2.1
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Analytical Model:
Verbal,
Graphical,
Mathematical
Specification
of
Information
Needed

5) Step II: Approach to the Problem
 Objective/Theoretical Foundations
 Research Questions
 Hypotheses
 Analytical Models
 Specification of the Information Needed

5) Objective/Theoretical Foundations
A theory is a conceptual scheme based on foundational statements that are
assumed to be true.
– Theory should be developed using objective,
secondary evidence.
– Theory should be relied upon when…
• developing variables and hypotheses
• operationalizing variables
• choosing research procedures (e.g. survey, experiment, etc.)
• selecting a sample
• analyzing and interpreting data

5) Development of Research Questions and Hypotheses
Components of the
Research Questions
Hypotheses
Objective/
Theoretical
Framework
Analytical Model

5) Research Questions and Hypotheses
• Research questions (RQs) are refined statements
of the specific components of the problem.
– Does preference for Sears lead to patronage?
– What leads to preference for Sears?
• A hypothesis (H) is an unproven statement or
proposition about a factor or phenomenon that is
of interest to the researcher. Often, a hypothesis
is a possible answer to the research question.
– H1: Positive evaluation of Sears leads to preference
for Sears.
– H2: Preference for Sears leads to patronage of Sears.

5) Analytical Models
An analytical model is a set of variables and their
interrelationships designed to represent, in
whole or in part, some real system or process.
The most common forms of analytical models are
• verbal,
• graphical, and
• mathematical models.

In verbal models, the variables and their relationships are stated in
prose form.
Example:
A consumer first becomes aware of a department
store. That person then gains an understanding of
the store by evaluating the store in terms of the
factors comprising the choice criteria. Based on the
evaluation and understanding, the consumer forms
a degree of preference for the store. If preference is
strong, the consumer will patronize the store.
5) Analytical Models, continued

5) Analytical Models, cont.d..
Graphical models state the relationships in
visual form.
Awareness
Understanding
Preference
Patronage
Evaluation

5) Analytical Models, continued
Mathematical models explicitly specify the relationships
among variables, usually in equation form.
Y = Β0 + Β1X
where Β0 is a constant (i.e. starting point), Β1 is the regression coefficient, X is the value of
the independent variable, and Y is the value of the dependent variable. In this case:
• Patronage = Constant + Preference*X
• Preference = Constant + Understanding*X1 + Evaluation*X2
• Understanding = Constant + Awareness*X
• Evaluation = Constant + Awareness*X

5) Specification of Information Needed
• What information should be obtained in the
marketing research project? Focus on:
– each component of the problem,
– the analytical framework/models,
– the research questions, and
– the hypotheses.
– This exercise is carried out for the Supermarket
example on the next few slides…

Specification of Information Needed:
Supermarket Project Example
Component 1: What criteria do households
use when selecting department stores?
• The researcher identified the following
factors as part of the choice criteria:
– quality of merchandise,
– variety and assortment of merchandise,
– returns and adjustment policy,
– service of store personnel,
– prices,
– convenience of location…

Department Store Project Example, cont’d.
• Research Question: Is price the most important criteria
when selecting a department store?
• Hypothesis 1: Price is the most important criteria when
selecting a department store.
Information needed:
• Survey a few hundred department store customers.
• The respondents should be asked to rate the importance
of each factor as it influences their store selection.

Survey Example
D-Mart Big Bazaar Heritage Reliance Fresh
Quality of
merchandise
Variety and
assortment of
merchandise
Returns and
adjustment
policy
Service of store
personnel
Prices
Convenience of
location
Please rate the following Super Markets on the below criteria (1 = worst, 10 =best).

Unit-II Sources of Data
1. Data Collection Method
• Secondary Data
• Primary Data
– Observation
– Survey (Most widely used)
– Experimentation
– Specific Research Instruments
Camera, Tape, People Meter, Tally Sheet, Questionnaire
– Sampling Plan
– Who is to be surveyed? Sampling unit
– How many? Sample size
– How are they to be selected? Sampling Procedure
– How are they to be reached? Sampling Media

4-47
Primary Data Collection
• Research approaches
• Contact methods
• Sampling plan
• Research instruments
Marketing Research

4-48
Research Approaches
• Observational research involves
gathering primary data by observing
relevant people, actions, and situations.
• Ethnographic research involves sending
trained observers to watch and interact
with consumers in their natural
environment.
Marketing Research

4-49
Research Approaches
• Survey research is the most widely used
method and is best for descriptive
information—knowledge, attitudes,
preferences, and buying behavior.
• Flexible
• People can be unable or unwilling to answer
• Gives misleading or pleasing answers
• Privacy concerns
Marketing Research

4-50
Research Approaches
• Experimental research is best for gathering
causal information
• Tries to explain cause-and-effect relationships.
Marketing Research

4-51
Contact Methods
Mail questionnaires
• Collect large amounts of information
• Low cost
• Less bias with no interviewer present
• Lack of flexibility
• Low response rate
• Lack of control of sample
Marketing Research

4-52
Contact Methods
Telephone interviewing
• Collects information quickly
• More flexible than mail questionnaires
• Interviewers can explain difficult questions
• Higher response rates than mail questionnaires
• Interviewers communicate directly with respondents
• Higher cost than mail questionnaires
• Potential interviewer bias
Marketing Research

4-53
Contact Methods
Mail, telephone, and personal interviewing
• Personal interviewing
• Individual interviewing
• Group interviewing
Marketing Research

4-54
Contact Methods
• Personal interviewing
• Individual interviewing
• Involves talking with people at home or the
office, on the street, or in shopping malls
• Flexible
• More expensive than telephone interviews
• Group interviewing or focus group
interviewing
• Involves inviting 6 to 10 people to talk with
a trained moderator
Marketing Research

4-55
Contact Methods
Online marketing research
• Internet surveys
• Online panels
• Online experiments
• Online focus groups
Marketing Research

4-56
Contact Methods
Online marketing research
• Low cost
• Speed to administer
• Fast results
• Good for hard-to-reach groups
• Hard to control who’s in the sample
• Lack of interaction
• Privacy concerns
Marketing Research

Research Approaches
Observation
Focus Group
Survey
Behavioral Data
Experimentation
Ethnographic

Step 2: Develop the Research Plan
Data
Sources
Contact
Methods
Research
Instruments
Sampling
Plan
Research
Approach

Research Instruments
Questionnaires
Qualitative Measures
Technological Devices

Questionnaire Do’s and Don’ts
• Ensure questions are free of
bias
• Make questions simple
• Make questions specific
• Avoid jargon
• Avoid sophisticated words
• Avoid ambiguous words
• Avoid negatives
• Avoid hypotheticals
• Avoid words that could be
misheard
• Use response bands
• Use mutually exclusive
categories
• Allow for “other” in fixed
response questions

Question Types—Dichotomous
In arranging this trip, did you contact American
Airlines?
 Yes  No

Question Types—Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group

Question Types—Likert Scale
Indicate your level of agreement with the following
statement: Small airlines generally give better service
than large ones.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree

Question Types—Semantic Differential
American Airlines
Large ………………………………...…….Small
Experienced………………….….Inexperienced
Modern……………………….…..Old-fashioned

Question Types—Importance Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important

Question Types—Rating Scale
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor

Question Types—
Intention to Buy Scale
How likely are you to purchase tickets on American
Airlines if in-flight Internet access were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy

Question Types—Completely Unstructured
What is your opinion of American Airlines?

Question Types—Word Association
What is the first word that comes to your mind when
you hear the following?
Airline ________________________
American _____________________
Travel ________________________

Question Types—
Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
__________________________________________
__________________________________________
__________________________________________
__________________________________________
__________________________________________
______________________________.

Question Types—Story Completion
“I flew American a few days ago. I noticed that the
exterior and interior of the plane had very bright
colors. This aroused in me the following thoughts and
feelings.” Now complete the story.
____________________________________________
____________________________________________
____________________________________________
____________________________________________
____________________________________________
______________

Question Types—Picture
(Empty Balloons)

Question Types—Thematic Apperception Test
Make up a story that reflects what you think is
happening in this picture.

Qualitative Measures
Word Association
Projective Techniques
Visualization
Brand Personification
Laddering

Technological Devices
Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS

Nielsen Outdoor Leverages GPS to Track
Billboard Reach

Sampling Plan
• Sampling unit: Who is to be surveyed?
• Sample size: How many people should be
surveyed?
• Sampling procedure: How should the
respondents be chosen?

Table 4.2 Types of Samples
Probability Samples
• Simple random
• Stratified random
• Cluster
Non-probability Samples
• Convenience
• Judgment
• Quota

Contact Methods
Mail Questionnaire
Telephone
Interview
Personal
Interview
Online
Interview

Pros and Cons of Online Research
Advantages
• Inexpensive
• Fast
• Accuracy of data, even
for sensitive questions
• Versatility
Disadvantages
• Small samples
• Skewed samples
• Technological problems
• Inconsistencies

Case Study: American Airlines (AA)
American Airlines (AA) is constantly looking for new ways to serve its passengers; it was one of the first
companies to install phone handsets.
Now it is reviewing many new ideas, especially to cater to its first-class passengers on very long flights, many
of whom are businesspeople whose high-priced tickets pay most of the freight.
Among these ideas are:
(1) to supply an Internet connection with limited access to Web pages and e-mail messaging;
(2) (2) to offer 24 channels of satellite cable TV; and
(3) (3) to offer a 50-CD audio system that lets each passenger create a customized play list of music and
movies to enjoy during the flight.
The marketing research manager was assigned to investigate how first-class passengers would rate these
services and how much extra they would be willing to pay if a charge was made. He was asked to focus
specifically on the Internet connection. One estimate says that airlines might realize revenues of $70
billion over the next decade from in-flight Internet access, if enough first-class passengers would be
willing to pay $25 for it. AA could thus recover its costs in a reasonable time. Making the connection
available would cost the airline $90,000 per plane.6
• FIG. The Marketing Research Process

Case Study: American Airlines (AA)
The marketing research manager was assigned to investigate
1) how first-class passengers would rate these services and
2) how much extra they would be willing to pay if a charge was made.
He was asked to focus specifically on the Internet connection.
One estimate says that airlines might realize revenues of $70 billion
over the next decade.
if enough first-class passengers would be willing to pay $25 for it.
AA could thus recover its costs in a reasonable time.
Making the connection available would cost the airline $90,000 per
plane.

Defining the Problem
Will offering an in-flight Internet service create
enough incremental preference and profit for
American Airlines to justify its cost against
other possible investments American might
make?"

Research Objectives
Research objectives:
• What types of first-class passengers would respond most to
using an in-flight Internet service?
• How many first-class passengers are likely to use the Internet
service at different price levels?
• How many extra first-class passengers might choose American
because of this new service?
• How much long-term goodwill will this service add to
American Airlines' image?
• How important is Internet service to first-class passengers
relative to providing other services such as a power plug, or
enhanced entertainment?

Research Types
Exploratory—research: its goal is to shed light on the
real nature of the problem and to suggest possible
solutions or new ideas.
Descriptive—research: is it seeks to ascertain certain
magnitudes, such as how many first-class passengers
would purchase in-flight Internet service at $25.
Causal—research: Its purpose is to test a cause-and-
effect relationship.

Developing Research Plan
Designing a research plan calls for decisions on
the data sources, research approaches,
research instruments, sampling plan, and
contact methods

Data sources
Data sources: Primary data can be collected in
five main ways:
Observation,
Focus groups,
Surveys,
• behavioral data, Customers leave traces of their
purchasing behavior in store scanning data,
catalog purchases, and customer databases.
Experiments.

Behavioral Data
Customers leave traces of their purchasing
behavior in store scanning data, catalog
purchases, and customer databases.

Survey Research
Companies undertake surveys to learn about
people's knowledge, beliefs, preferences, and
satisfaction, and to measure these
magnitudes in the general population.

Focus Group
is a gathering of six to ten people who are
carefully selected based on certain
demographic, psychographic, or other
considerations and brought together to
discuss at length various topics of interest.

Experimental Research
The most scientifically valid. The purpose of experimental
research is to capture cause-and-effect relationships by
eliminating competing explanations of the observed findings.
• Experiments call for selecting matched groups of subjects,
subjecting them to different treatments, controlling
extraneous variables, and checking whether observed
response differences are statistically significant.

three main research instruments in collecting
primary data:
1) questionnaires,
2) qualitative measures, and
3) mechanical devices.
RESEARCH INSTRUMENTS

Qualitative research
QR techniques are relatively unstructured
measurement approaches that permit a range
of possible responses, and they are a creative
means of ascertaining consumer perceptions
that may otherwise be difficult to uncover.

• Shadowing— observing people using products, shopping, going to
hospitals, taking the train, using their cell phones.
• Behavior mapping—photographing people within a space, such as a
hospital waiting room, over two or three days.
• Consumer journey—keeping track of all the interactions a consumer has
with a product, service, or space.
• Camera journals—asking consumers to keep visual diaries of their
activities and impressions relating to a product.
• Extreme user interviews—talking to people who really know—or know
nothing—about a product or service and evaluating their experience using
it.
• Storeytelling—prompting people to tell personal stories about their
consumer experiences.
• Unfocus groups—interviewing a diverse group of people: To explore ideas
seven techniques

Mechanical Devices
• Mechanical devices are occasionally used in
marketing research.
• After each exposure, the respondent describes
everything he or she recalls.
• Eye cameras study respondents' eye movements to
see where their eyes land first, how long they linger
on a given item, and so on.
• Audiometers can be attached to television sets in
participating homes to record when the set is on and
to which channel it is tuned.

SAMPLING PLAN
SAMPLING PLAN After deciding on the research
approach and instruments, the marketing
researcher must design a sampling plan.
1. Sampling unit: Who is to be surveyed?
2. Sample size: How many people should be surveyed?
3. Sampling procedure: How should the respondents
be chosen?7o

• Simple random sample: Every member of the population
has an equal chance of selection.
• Stratified random sample: The population is divided into
mutually exclusive groups (such as age groups), and random samples are
drawn from each group.
• Cluster (area) sample: The population is divided into
mutually exclusive groups (such as city blocks), and the researcher draws a
sample of the groups to interview.
A. Probability Sample

B. Non-probability Sample
• Convenience sample: The researcher selects the most
accessible population members.
• Judgment sample: The researcher selects population
members who are good prospects for accurate information.
• Quota sample: The researcher finds and interviews a
prescribed number of people in each of several categories.

CONTACT METHODS
Once the sampling plan has been determined, the marketing researcher
must decide how the subject should be contacted:
1)mail,
2) telephone,
3)personal, or
online interview.

Step 3: Collect the Information
• Getting the right respondents is critical.
• In the case of surveys, four major problems arise.
1) Some respondents will not be at home and must be
contacted again or replaced.
2) Other respondents will refuse to cooperate.
3) Others will give biased or dishonest answers. Finally,
4) some interviewers will be biased or dishonest.

Step 4: Analyze the Information
The next-to-last step in the process is to extract
findings from the collected data.
The researcher tabulates the data and develops
frequency distributions.
Averages and measures of dispersion are computed for
the major variables.
The researcher will also apply some advanced statistical
techniques and decision models in the hope of
discovering additional findings.

Step 5: Present the Findings
As the last step, the researcher presents the
findings. The researcher should present
findings that are relevant to the major
marketing decisions facing management.

The main survey findings for the American
Airlines case show that:
The chief reasons for using in-flight Internet
service are to pass the time surfing, and to
send and receive messages from colleagues
and family. The charge would be put on
passengers' charge accounts and paid by
their companies.

The main survey findings for the American
Airlines case show that:
About 5 first-class passengers out of every 10 would use the Internet service
during a flight at $25;
about 6 would use it at $15. Thus, a charge of $15 would produce less
revenue ($90 = 6 x $15) than $25 ($125 = 5 X $25).
• By charging $25, AA would collect $125 per flight.
• Assuming that the same flight takes place 365 days a year, AA would
annually collect $45,625.
• Since the investment is $90,000, it will take approximately two years
before American Airlines breaks even.

Step 6: Make the Decision
• The last step is decision-making process
Evaluating the decision made
• The decision process itself
• Two questions should be asked:
1) Was the decision made (analyst do not make
decisions)?
2) Was the decision right?

Marketing Debate
 What is the best type of marketing
research?
Take a position:
1. Marketing research should be quantitative.
or
2. Marketing research should be qualitative.

Marketing Discussion
 When was the last time you
participated in a survey?
 How helpful do you think the
information you provided was?
 Could the research have been done
differently?

Any Questions Pl.??
Thank You!

Marketing Research

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