Research Methods in Marketing (MBA 8601)

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Research Methods in Marketing(MBA 8601)

• Jeremy Kees, Ph.D.

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My Research

• Advertising
• Kees et. al (Journal of Advertising, forthcoming)
• Kees, Jeremy (JCIRA, forthcoming)
• Framing Effects
• Pharma Fair Balance
• Kees et al. (Psychology and Marketing, 2008)
• Nutrition
• Burton et al. (American Journal of Public Health,
  2006)
• Menu Labeling

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My Research

• Smoking/Tobacco
• Kees et al. (Journal of Public Policy and
  Marketing, 2006)
• Graphic Warning Labels
• Pricing
• Jensen et. al (Journal of Interactive Marketing,
  2003)
• Reference Prices
• Finance
• Howlett et al. (Journal of Consumer Affairs,
  2008)
• Temporal Orientation and Long-Term Financial
  Planning

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The Value of Marketing Research

• Reduces risk in decision making
• Lets move away from making decisions based on
  anecdotal evidence (i.e., information or casual
  observation that is not based on facts or careful
  study)

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Important Topics

• Part I Non-data research issues
• Research Process
• Problem Identification
• Study Design
• Sampling
• Part II Data Analysis
• Crosstabs / Correlation
• Regression / t-tests / ANOVA
• Conjoint / Perceptual Mapping

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How does research fit into the broader scope of
marketing management??
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Review of Marketing Management
target
market
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The External Environment
Economic Environment
Political and Legal Environment
Competitive Environment
Customer Value and Behavior
Marketing Strategy
Technological Environment
Social Environment
Natural Environment
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Marketing research is the function which links
the consumer, customer, and public to the
marketer through information--information used to
identify and define marketing opportunities and
problems generate, refine and evaluate marketing
actions monitor marketing performance and
improve understanding of marketing as a
process. - American Marketing Association
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Marketing Research Defined

• Marketing research is the systematic and
  objective
• identification
• collection
• analysis
• dissemination
• and use of information
• For the purpose of improving decision making
  related to the
• identification of problems and opportunities and
• solution of problems and opportunities in
  marketing.

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Using Information.
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The need for information

• MR focuses on the use of information as a source
  of strategic advantage
• As marketers, we should strive for a thorough
  knowledge of customers, and their attitudes,
  tastes, preferences
• We should also want to keep an eye on competition
  (e.g., benchmarking)
• This information will help us making strategic
  marketing decisions (e.g., 4 Ps)

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• To sum.the function of marketing research is to
  provide managers with information

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Users of Market Research

• Fortune-500 Firms
• e.g., Product tweeks, shelf location
• Entrepreneurs
• e.g., Market size, growth potential, viability
• And everyone in-between

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Marketing research can tell us

• How our customer service is perceived by our
  customers and what particular areas we can
  improve on or emphasize
• How customers shop and how we can adjust our
  atmospherics to maximize sales
• What new products or new product features do
  customers want
• How customers perceive us in relation to our key
  competitor (or do they even recognize us as a key
  player in the industry)
• Who our most loyal customers are and how do we
  cater to this important segment
• Who our prototypical customer is
• How can we segment the market in more manageable
  groups
• What marketing communications are most effective
  at reaching various segments of the market
• What is going to be the demand for a new product
  or an existing product in a new market
• Where should we build our next retail location
• At what price point we can maximize profitability
  and maintain consumer demand
• Which media vehicles will be most effective to
  communicate our advertising message
• Etc.

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Project vs. Info Systems

• Information Systems Approach (MISMarketing
  Information System)
• Ongoing decision tool
• Interactive / Non-technical models
• Database Marketing
• e.g., Retail Link
• Project-Based (the focus of this discussion)

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Research are spent on
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How Might Each of These Institutions Use
Marketing Research?

• An outdoor advertising firm
• A local bank
• The Los Angeles Lakers
• The Food and Drug Administration

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The Research Process
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Just to reemphasize

• Marketing research is the marketers link to
  understanding the consumer and the external
  environment
• The SOLE purpose of marketing research is to
  inform decisions
• Every research project is different...

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Step 1 Problem Formulation

• A well-defined study begins with a clearly
  defined objective
• The formulation of a problem is often more
  essential than its solution - Albert Einstein
• The problem is rarely clear-cut
• Slight variations in research questions can lead
  to substantial changes in the research process
  (so be careful)
• Drives decisions related to research design,
  measurement, sampling, analysis, etc.

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Step 1 Problem Formulation
Stage in the Process Typical Questions
Formulate problem What is the purpose of the study (i.e., to solve a problem? Identify an opportunity?) Is additional background information necessary? What are specific research questions and what information is needed to make the decision? How will the information be utilized? Has a decision already been made? Should research be conducted?
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Step 1 Problem Formulation

• Attacking the Obesity Epidemic An Examination
  of the Potential Health Benefits of Nutrition
  Information Provision in Restaurants, American
  Journal for Public Health (2006)
• Formulate Problem
• Obesity is the 2nd leading cause of preventable
  death in the US
• What can be done?
• Can the provision of nutrition information help
  consumers make better (healthier) food
  consumption decisions? (decision problem)
• How good (accurate) are consumers at estimating
  the nutritional content of restaurant foods? and
  Can providing objective nutrient information
  improve food evaluation and choice (research
  problems)
• State hypotheses to be tested based on theory
• Based on Expectancy disconfirmation theory
• H3a When objective nutrition information is
  less favorable than consumers expect, nutrition
  information provision will have a greater
  negative influence on product attitudes and
  purchase intentions and a greater positive
  influence on perceived likelihood of weight gain
  and heart disease.

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Step 2 Determine Research Design

• Dictated by the problem or research question
• Exploratory Research
• Discovery
• Descriptive Research
• Relationships
• Causal Research
• Experiments

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Step 2 Determine Research Design
Stage in the Process Typical Questions
Determine research design How much is already known? Can a hypothesis be formulated? What types of questions need to be answered? What type of study will best address the research questions?
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Step 2 Determine Research Design

• Attacking the Obesity Epidemic An Examination
  of the Potential Health Benefits of Nutrition
  Information Provision in Restaurants, American
  Journal for Public Health (2006)
• Determine Research Design
• Two research problems (questions) require two
  designs
• How good (accurate) are consumers at estimating
  the nutritional content of restaurant foods?
• Simple survey that asks participants to estimate
  nutritional content of common restaurant foods
• Can providing objective nutrient information
  improve food evaluation and choice
• Between-subjects experiment

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Step 3 Design Data Collection Forms

• Secondary research not necessary
• Survey Research
• Lots of ways to collect data
• Measurement
• Constructs / Variables

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Step 3 Design Data Collection Forms
Stage in the Process Typical Questions
Determine data collection method and forms Can existing data be used to advantage? What is to be measured? How? What is the source of the data? Can objective answers be obtained by asking people? How should people be questioned? Should the questionnaires be administered in person, over the phone, or through the mail? Should electronic or mechanical means be used to make the observations? Should structure or unstructured items be used to collect the data? Should the purpose of the study be made known to the respondents? Should rating scales be used in the questionnaire?
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Step 3 Design Data Collection Forms

• Attacking the Obesity Epidemic An Examination
  of the Potential Health Benefits of Nutrition
  Information Provision in Restaurants, American
  Journal for Public Health (2006)
• Design Data Collection and Forms
• Quantitative data needed
• Questionnaires with estimations, multi-item
  attitudinal/risk/intentions variables

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Step 4 Design Sample and Collect Data

• Determine your target market
• Determine necessary sample size
• Sampling Methodology
• Logistics
• Cost
• Ethics

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Step 4 Design Sample and Collect Data
Stage in the Process Typical Questions
Design sample and collect the data Who is the target population? Is a list of population elements available? Is a sample necessary? Is a probability sample desirable? How large should the sample be? How should the sample be selected? Who will gather the data? How much supervision is needed? What operational procedures will be followed? What methods will be used to ensure the quality of the data collected?
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Step 4 Design Sample and Collect Data

• Attacking the Obesity Epidemic An Examination
  of the Potential Health Benefits of Nutrition
  Information Provision in Restaurants, American
  Journal for Public Health (2006)
• Design Sample and Collect Data
• Adult Sample
• Recruited by undergrads
• Mail panel

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Step 5 Analyze and Interpret the Data

• Edit / clean / code the data
• Analyze
• Interpret

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Step 5 Analyze and Interpret the Data
Stage in the Process Typical Questions
Analyze and interpret the data Who will handle the editing of the data? How will the data be coded? Who will supervise the coding and keypunching? What tabulations / statistical tests / analysis techniques will be used?
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Step 6 Analyze and Interpret the Data

• Attacking the Obesity Epidemic An Examination
  of the Potential Health Benefits of Nutrition
  Information Provision in Restaurants, American
  Journal for Public Health (2006)
• Analyze and interpret the data
• Crosstabs and other simple computations
• ANOVA / MANOVA / Chi-Square
• Results show that most consumers are unaware of
  high levels of calories, fat, saturated fat, and
  sodium found in many menu items. Provision of
  nutrition information on restaurant menus could
  potentially have a positive impact on public
  health by reducing the consumption of less
  healthful foods

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Step 6 Analyze and Interpret the Data

• Know your audience
• Sell your findings

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Step 7 Prepare Research Report
Stage in the Process Typical Questions
Prepare the research report Who will read the report? What is their technical level of sophistication? Are managerial recommendations called for? What will be the format of the written report? Is an oral report necessary? How should the oral report be structured?
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Step 7 Prepare Research Report

• Attacking the Obesity Epidemic An Examination
  of the Potential Health Benefits of Nutrition
  Information Provision in Restaurants, American
  Journal for Public Health (2006)
• Prepare Research Report
• Manuscript prepared for journal submission

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Form Groups and

• Contrast the process we have just talked about
  with that of Andreasen