M370 Chapter 10 In-Class Activity

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Feb 20, 2024

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M370 Chapter 10 In-Class Activities 1. Defining Objectives and Research Needs What factors must be considered to decide whether to conduct research? Cost, Time, and Availability of Expertise 2. Designing the Research The researcher must decide on the research type and type of data to use. Exploratory – gather preliminary info that will clarify problems and suggest hypotheses to test on larger representative samples in the future Descriptive – describe marketing problems, situations, or market potential Experimental – test hypotheses about cause-and-effect relationships, why things happen 3. Collecting the Data Secondary Data: Collected prior to the start of the research project; External as well as internal data sources; Already exists Primary Data: Data that you have to collect; Collected to address specific research needs Examples: focus groups, in-depth interviews, surveys Sample: Choose a group of customers who represent the customers of interest and generalize their opinions to the market segment Quantitative Measures: Surveys Good for broad insights Qualitative Measures: Focus groups, in-depth interviews Good for helping clarify research problem Unstructured Good for in-depth analysis 1
4. Analyzing the Data and Developing Insights Survey Research in Action A gas station located near an exit along a major interstate recently conducted some customer satisfaction surveys to measure customers’ evaluations of the station on several features: 1. Speed with which customers can fill their gas tank 2. Cleanliness of the restrooms 3. The selection of foods and snacks inside the station’s store 4. Friendliness of the employees 5. The quality of the car wash All service features were measured of a 7-point scale; where 1 = very poor, and 7 = very good. Below are the results: Customer Evaluations of Gas Station Service Features (1 = very poor; 7 = very good) 5.1 5.2 5 2.2 1.9 0 1 2 3 4 5 6 Gas Filling Speed Restroom Cleanliness Snack Selection Friendly Employees Car Wash Quality What do you recommend? What managerial decisions would you make based on these results? - Keep cleaning the restrooms - Tell employees to be friendlier - Make sure pumps are newer and speed is good What else do you need to know? - Availability of a pump - Competitiveness of pricing - Proximity of competitors 2
Survey Research in Action Continued Customers were also asked to rate the importance of each service feature. On the screen are the complete results. Now what do you recommend? What managerial decisions would you make now? - Focus on the bathrooms How should results be presented? - With context Ethics in Research Reporting How ethical is the claim in the advertisement presented? - It isn’t fully ethical, but isn’t unethical 5. Developing and Implementing an Action Plan What is the difference between an Executive Summary and an Introduction? - An executive provides insights and recommendations (less than 1 page) - An introduction is a brief overview of what the report is about Secondary Data Marketing Research Industry – Secondary Data Providers A. Go to greenbook.org . Do a search for marketing research companies in Chicago from the “Firms” tab using “By Location” field. How many are there? Pick one and provide a brief description of their services. There are 85 in the Chicago area. Proactive worldwide: We examine competitors, suppliers, customers, regulatory issues, and more—through advanced competitive, market, and customer intelligence—to deliver a more complete picture of the decision-making environment with a far-reaching perspective that uncovers hidden opportunities and key threats. B. Then go to quirks.com . First provide a brief description of what you can find from one of the menus along the top, investigate it more deeply and describe briefly what you discover. WebMD: Medscape is the leading source of clinical news, health information and point- of-care tools for health care professionals in the U.S. and globally. Medscape offers health care professionals the most robust and integrated medical information and educational tools. On an annual basis our U.S. visitor count exceeds 730,000 active U.S. physicians and 1.9 million health care professionals. In EU4, our count of active physicians exceeds 500,000. Our sample includes physician specialists and primary care physicians, pharmacists, nurses, NPPA’s, hospital administrators, lab technicians and many other types of health care professionals. 3
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C. Go to easidemographics.com. Then from the On Demand tab click Single Ring Study - Executive (it says $15 but you can access the sample for free). Explore the data to make meaning of what you see and then answer the following questions. What type of information and features does a ring study provide? - Demographic information How would a ring study be beneficial for a fine dining restaurant looking to open a new location? They could use this information to find the best place to put their restaurant in an affluent area. Primary Data Probability versus non-probability sampling – what is the difference? Probability means everyone has an equal chance of being selected for a survey Non-probability ex. convenience sample 1. Survey Research – asking people questions about their knowledge, attitudes, preferences, and buying behavior. When are customers more likely to provide research information? When customers see value in the exchange 2. Observation Research – the systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them. Online observation research is behavioral targeting. 3. Ethnographic Research – the study of human behavior in its natural context. Participation is the distinguishing factor. 4. Experimental Research – selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. It is best suited for collecting causal information. Which research method is most used for primary research? Survey research 4
Comparison of Primary versus Secondary Research Primary Research Secondary Research Advantages Specific Related/relevant Quicker Cheaper Readily Accessible Disadvantages Expensive Takes longer Availability of expertise Biased Unreliable Unrelated Survey Design and Wording Wording to Avoid… Hard to Answer, Vague, Answer Likely not Readily Known Overly Sensitive Two Issues with Only One Response Leading Questions that Influence the Consumer Response One-Sided Questions that Only Present One Perspective Identify what is bad about the question. Offer a corrected version. Poor Version of the Question What’s the Error? Good Version of the Question When your toddler wants to ride in the car with you when you run some errand or pick up your older children at school, practice, or some friend’s home, do you use an infant car seat? Too long and too many scenarios Do you use an infant car seat? or How often do you use an infant car seat? If using an infant car seat is not convenient for you to use, or when you are in a hurry and your toddler is crying, do you still go ahead and use the infant car seat? Leading questions What situations would cause you not use a car seat? How much do you think you should pay for an infant seat that protects One-Sided Questions that How much is a reasonable cost for a car seat? 5
your toddler in case someone runs into your car or you lose control of your car and run into a light post or some other object? Only Present One Perspective Shouldn’t concerned parents of toddlers use infant car seats? Leading/one sided Indicate the level of importance for using an infant car seat from 1-5. Do you believe that good parents and responsible citizens use infant car seats? Hard to answer - 6
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Ethics in Consumer Research Creating Thieves in the Name of Research! Several years ago, a company developed a device that was said to use subliminal auditory messages that would affect behavior. The company had received a great deal of publicity in the press by claiming that its “black boxes” would play subliminal messages over a company’s sound system and that these messages could, for example, cause real estate agents to get more listings and cause shoppers and employees to reduce shoplifting. When retailers learned there was a way to reduce their high costs due to shoplifting, the company making the black box received numerous calls to install it. Executives viewed this wonderful new product as a way of stimulating employees to excel and, for retailers, curbing shoplifting without using invasive tactics. But some asked, “Does this new method, based on subliminal messages, actually work?” Marketing researchers were involved in a project designed to measure the effects of subliminal messages on shoplifting behavior. The research design consisted of researchers recruiting respondents passing by an office building to take part in a study of the “attitudes and opinions of the public.” Respondents were told that if they agreed to complete the short survey, they would be given a choice of several nice gifts, including a watch, pen set, or expensive glassware. Respondents agreeing to the study were then escorted into a private “research office,” given a bogus survey measuring attitudes and opinions, and shown a large supply of the free gifts nearby. As the respondents began to take the survey, the researcher interrupted them to tell the respondents that they had to take a break and asked if it would be OK with the respondents to “just select one of the free gifts and lock the door when you leave.” Surrounded by many nice products and without any supervision, this situation was designed to create the maximum likelihood that someone would steal. On a random basis, half of the respondents were exposed to subliminal messages consisting of the same message the black-box company claimed would reduce shoplifting. The other half of the respondents was not exposed to any message. If the subliminal message worked, there would be less stealing when the subliminal message was being played than in the condition when the message was not played. 1. Do you think this study is ethical? Why? Why not? 2. Do you think deception is used in the study? If so, what type of deception? 3. Should this study have been conducted? Why or why not? 7