Research Methods in Marketing (MBA 8601) Jeremy Kees, Ph.D

Research Methods in Marketing(MBA 8601)

Jeremy Kees, Ph.D.

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

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

The Value of Marketing Research

• Reduces risk in decision making

• Let’s move away from making decisions based on anecdotal evidence (i.e., information or casual observation that is not based on facts or careful study)

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

How does research fit into the broader scope of marketing management??

Review of Marketing Management

product price

placepromotion

target

market

The External Environment

CompetitiveCompetitiveEnvironmentEnvironment

TechnologicalTechnologicalEnvironmentEnvironment

NaturalNaturalEnvironmentEnvironment

SocialSocialEnvironmentEnvironment

PoliticalPoliticaland Legaland Legal

EnvironmentEnvironment

EconomicEconomicEnvironmentEnvironment

MarketingStrategy

CustomerValue andBehavior

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

10

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.

Marketing Research Defined

11

Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

Using Information….

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 P’s)

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

14

Marketing Research

Problem /OpportunityIdentification Research

Problem-Solving Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product Research

Pricing Research

Promotion Research

Distribution Research

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…

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.

Project vs. Info Systems

• Information Systems Approach (MIS—Marketing Information System)– “Ongoing” decision tool– Interactive / Non-technical models– Database Marketing– e.g., Retail Link

• Project-Based (the focus of this discussion)

Research $$ are spent on…

19

*An outdoor advertising firm

*A local bank

*The Los Angeles Lakers

*The Food and Drug Administration

How Might Each of These Institutions Use Marketing Research?

The Research Process

Just to reemphasize…

• Marketing research is the marketer’s link to understanding the consumer and the external environment

• The SOLE purpose of marketing research is to inform decisions

• Every research project is different...

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.


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?

“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.


Step 2: Determine Research Design

• Dictated by the problem or research question

• Exploratory Research– “Discovery”

• Descriptive Research– “Relationships”

• Causal Research– Experiments



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?


• 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


Step 3: Design Data Collection & Forms

• Secondary research – not necessary

• Survey Research– Lots of ways to collect data

• Measurement– Constructs / Variables



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?


• Design Data Collection and Forms– Quantitative data needed

– Questionnaires with estimations, multi-item attitudinal/risk/intentions variables


Step 4: Design Sample and Collect Data

• Determine your “target market”

• Determine necessary sample size

• Sampling Methodology

• Logistics

• Cost

• Ethics



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?


• Design Sample and Collect Data– Adult Sample

• Recruited by undergrads

• Mail panel


Step 5: Analyze and Interpret the Data

• Edit / clean / code the data

• Analyze

• Interpret



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?


• 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



• Know your audience

• Sell your findings

Step 7: Prepare Research Report


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?


• Prepare Research Report– Manuscript prepared for journal submission

Step 7: Prepare Research Report

Form Groups and…

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

Documents

Research Methods in Marketing (MBA 8601) Jeremy Kees, Ph.D