MARK205 Introductory Marketing

Research
Autumn Semester, 2023
Week 2
AGENDA:
• Quick recap from Week 1
• Research Design & Data Sources (Chapters 4 & 5)
REVISIT: The Marketing Research
Process
Step 1: Establish the need for
Step 7: Design data collection forms
marketing research

Step 2: Define the Problem Step 8: Determine the sample plan

and size

Step 3: Establish research objectives Step 9: Collect data

Step 4: Determine the research design Step 10: Analyze data

Step 5: Identify information types and Step 11: Prepare and present the final
sources research report

Step 6: Determine methods of

accessing data
REVISIT: Problem Statements & Research
Objectives
 A problem statement is a concise description of the problem/opportunity that
management is facing that requires research to make a decision. E.g.:
– An apartment manager wants to increase the proportion of apartment occupancies
per year at his apartment complex.
 A research objective is a goal-oriented statement or question that specifies what
information is needed to solve a problem. It should be clear, specific and actionable.
Should specify from whom the information should be gathered and exactly what
information is needed. Rule of thumb: 3-6 research objectives per project.
REVISIT: The Market Research
Proposal
 The marketing research proposal serves as the basis of a contract as it
documents what the marketing researcher proposes to deliver to the
client for some consideration, typically a fee.
 When a client first contacts a marketing research supplier to conduct
research, the client will generally request a proposal prior to agreeing to
work with the firm in a process called an invitation to bid (ITB) or
request for proposal (RFP).
 Research proposal elements include:
– Statement of the problem
– The research objectives
– The research method
– Statement of deliverables
– Costs (budget)
– Timetable
Research Proposal Elements:
1. Statement of the problem: What this the overall problem that will be addressed?
2. The research objectives: What information will be collected and from whom?
3. The research method: What methods will be used to conduct the research? Will the
research be exploratory, descriptive or causal? Will the research be quantitative, or mixed
method? What are the population, sample frame, sample size, sample method, incidence
rate and response rate? What will the measurement instrument look like? What methods
will be used to analyse the data. Which, if any, subcontractors will be used for what
services?
4. Statement of deliverables: How and when will the research results be communicated? A
written report? An oral presentation? Will there be meetings with clients to discuss
implementation issues?
5. Costs (budget): What are the expenses for the project? Which expenses are to be paid in
advance and on what dates? Which subcontractors are to be paid directly by the client?
6. Timetable: On what dates will the different stages of the research project be completed?

Your research proposal should include (but not be limited to):

Case study for your research proposal: See Moodle

Length Maximum of 3000 words (excluding table of contents, references and appendices)
Weighting 30%
Due 06 Nov 2023 (Monday in Week 8), Final submission time: 11:59pm UAE time.
Style and The research proposal is a group-based assessment that allows you to demonstrate your conceptual and technical understanding of
format the important aspects related to marketing research. Based on a case study (see Moodle), you will be required to develop a
marketing research proposal, accompanied by a data collection instrument (e.g., survey questionnaire).
From your reading of the assigned case study, you need to identify the marketing problem and recommend a marketing decision to
the management team. The proposal must reflect the relevant stages in the marketing research process and the logic for using them,
and clearly describe what information will be needed, and how and from where it will be obtained.
It is essential that you include academic literature in your research proposal to support and justify your ideas and arguments. Any
unsupported statement will not provide credibility to your discussion. Your research proposal should include (but not be limited to):
INTRODUCTION
Background information to the marketing problem; definition of the marketing research problem; description of the marketing
problem; explanation or description of the marketing research problem; specific research questions and objectives underpinning the
proposed marketing research study; justification for the proposed marketing research study.
LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT
Review of relevant studies focusing on a similar marketing research problem; critical analysis of these studies (e.g., what are the
strengths and weaknesses of these studies, why are they useful and relevant, how are they informing my current research, etc.);
discussion of the different variables that have been identified in the literature as critical to solving the marketing research problem;
discussion of relationships among these variables; and proposition of at least three testable hypotheses based on critical analysis of
relevant literature. The focus should be on demonstrating how relevant bodies of knowledge provide a clear linkage to the
hypotheses being proposed.
RESEARCH DESIGN
This section is where you explain and justify the specific methods you will adopt to collect the data required for testing your
hypotheses. This section should address issues related to:
Sample (e.g., who are your target respondents, why should they be included in the sample, how do you ensure the sample is
representative of the target population, etc.)
Procedure (e.g., how are you identifying and approaching the targeted respondents, how are you obtaining information from them,
why is this approach appropriate, etc.)
Measures (e.g., what questions are you asking of your respondents and in what format, why are these questions appropriate, where
are these questions taken from, etc.)
CONCLUSION
Briefly explain how and why the management team might benefit from your proposed research study. Include an overall evaluation
of the research study (e.g., brief discussion clarifying how overall focus and purpose of the research study is addressed), potential
limitations of the study (e.g., what should have been done but has not within the context of the current research study), and
recommendations for future research.
 Chapter 4:

Research Design
 Learning Objectives
In this chapter you will learn:
• What research design is and why it is Marketing research studies are carried out
important in many different ways. Some projects are
• The three major types of research design: food-tasting experiments held in kitchen-
exploratory, descriptive, and causal like labs; others involve focus groups,
• How exploratory research design helps ethnographic research, or large, nationally
the researcher gain understanding of a
representative sample surveys.
problem
Researchers may observe consumers in
• The fundamental questions addressed by
descriptive research and the different
convenience stores or conduct two-hour,
types of descriptive research in-depth, personal interviews in
• What is meant by causal research and to respondents’ homes. Each type of study has
describe types of experimental research unique advantages and disadvantages, and
designs one method may be more appropriate for a
• The different types of test marketing and given research problem than another.
how to select test-market cities
The Marketing Research Process: “WHERE WE
ARE”
Step 1: Establish the need for
Step 7: Design data collection forms
marketing research

Step 2: Define the Problem Step 8: Determine the sample plan

and size

Step 3: Establish research objectives Step 9: Collect data

Step 4: Determine the research design Step 10: Analyze data

Step 5: Identify information types and Step 11: Prepare and present the final
sources research report

Step 6: Determine methods of

accessing data
Research Design
• Research design is a master plan that specifies the methods
that will be used to collect and analyze the information needed
for a research project.
 Why is research design important?
– allows advance planning so that the project may be conducted in
less time and typically at a cost savings due to efficiencies gained in
preplanning.

 Its objectives include:

– To gain background information and to develop hypotheses
– To measure the state of a variable of interest
– To test hypotheses that specify the relationships between two or
more variables

 At times, more than one research design is needed!

Three Types of Research Designs
Types of
Research Designs

Exploratory Descriptive Causal

- partially defined - sharply defined
- ambiguous problems problems problems

collecting information research that describes attempt to uncover what

in an unstructured and the phenomena of factor or factors cause
informal manner. interest. some event.
 Type 1: Exploratory Research
 It is a flexible, unstructured, informal
research that is undertaken to gain more
insights about the general nature of the For example, a Wendy’s
research problem/opportunity. franchisee went through his
restaurant’s cash register
 Usually conducted at the outset of the receipts, which were stamped
research with dates and times. He
observed that weekday
 It is usually conducted when the afternoons between 2:00 and
researcher does not know much about the 4:30 p.m. were his slack
problems and there is not much periods. He then initiated a
information available on it. mobile campaign for a free
order of French fries during
 Uses of exploratory research: this time on weekdays. Traffic
– Gain background information/insights and sales went up.
– Define terms/variables/constructs
– Clarify problems and hypothesis
– Establish research priorities
 Exploratory research methods: (1 of 2)
• Secondary Data Analysis: the process of
searching for interpreting existing information
relevant to the research topic.
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– E.g. Why do customers choose a luxury m/dubai/zuma-difc
restaurant in Dubai?
• Experience Surveys: refers to gathering E.g., nurses might be
interviewed about the
information from those knowledgeable on the
needs of hospital
issues relevant to the research problem patients, and
– Key-informant technique: gathering elementary teachers
information from those thought to be might be surveyed to
knowledgeable on the issues relevant to the gather information
about types of products
problem
that might be developed
– Lead-user survey: used to acquire information to help children learn.
from lead users of a new technology

MARKETING RESEARCH INSIGHT 4. 2

Exploratory research methods: (2 of 2)
• Case Analysis: a review of available
information about a former situation(s) that has
some similarities to the current research
problem
– E.g. How do customers choose medical tourism
destinations?

• Focus Groups: small groups brought together

and guided by a moderator through an
unstructured, spontaneous discussion for the
purpose of gaining information relevant to the
research problem.
Type 2: Descriptive Research
 Descriptive research is undertaken to describe answers to questions of
who, what, where, when, and how.
 It is desirable when we wish to project a study’s findings to a larger
population, if the study’s sample is representative.
 Purpose is to describe characteristics of a population
– Example: Determining who purchases a product, portraying the size of
the market, identifying competitors’ actions etc.
Use of Descriptive Research
 To describe the characteristics of relevant groups, such as
consumers, salespeople, organizations, or market areas
 To estimate the percentage of units in a specified population
exhibiting a certain behavior
 To determine the perceptions of product characteristics
 To determine the degree to which marketing variables are associated
 To make specific predictions

Accuracy is of paramount importance (e.g.

measure the market potential for electric http://mashable.com/2016/08/31/uber-electric-cars-london/
#ixnxKF0NCkqW

cars)
Cross-sectional and Longitudinal
Designs
 A cross-sectional design involves the collection of information
from any given sample of population elements only once.

 In a longitudinal design, a fixed sample (or samples) of population

elements is measured repeatedly on the same variables.

 A longitudinal design differs from a cross-sectional design in that

the sample or samples remain the same over time.

Same
Cross-Sectional Sample Sample
vs. Surveyed also
Longitudinal at T1 Surveyed
Design at T2

Time T1 T2

Are People With High IQs More Successful?

Type 3: Causal Research
 Causality may be thought of as understanding a phenomenon in terms
of conditional statements of the form “If x, then y.”
 These cause-effect relationships are often determined by the use of
experiments.
 An experiment is defined as manipulating an independent variable to
see how it affects a dependent variable, while also controlling the
effects of additional extraneous variables.
– Independent variables are those variables which the researcher has control over
and wishes to manipulate. E.g., 4Ps
– Dependent variables are those variables that are measured in response to
changes in independent variable. E.g., sales, profits or market share.
– Extraneous variables are those variables that may have some effect on a
dependent variable yet are not independent variables. E.g., store size.

McDonald's rebrands to Macca's in Australia

Symbols of Experimental Design
 O = measurement, or observation, of a dependent variable
 X = manipulation, or change, of an independent variable
 R = random assignment of subjects to experimental and control
groups
 E = experimental effect (change in the dependent variable due to
independent variable)

O1 X O2 R X1 O1
R X2 O2
Experimental Designs
• Experimental design is a procedure for devising an experimental setting
such that a change in a dependent variable may be attributed solely to the
change in an independent variable.
– Pretest refers to the measurement of the dependent variable taken prior
to changing the independent variable.
– Posttest refers to measuring the dependent variable after changing the
independent variable.
• Control group: control of extraneous variables is typically achieved by the
use of a second group of subjects
• Experimental group: the group that has been exposed to a change in the
independent variable
Experimental Design
Before-After with Control Group design may be achieved by randomly
dividing subjects of the experiment in two groups
Experimental group (R) O1 X O2
Control group (R) O3 O4
Where
E  (O2  O1 )  (O4  O3 ).
How Valid Are Experiments?
An experiment is valid if:
• The observed change in the dependent variable is due to the
independent variable (internal validity):
– does the experiment measure what you intend to measure?
– The manipulation of the independent variable is the real cause of the
observed effects.
– Need to control of extraneous variables.

• The results of the experiment apply to the “real world” outside the
experimental setting (external validity):
– What populations, settings, times, independent variables, and dependent
variables can the results be projected?
Types of Experiments
• Laboratory experiments are those
in which the independent variable
is manipulated and measures of the
Example: Pepsi uses various
dependent variable are taken in a celebrities in its ads (Beyonce,
contrived, artificial setting for the Messi, Ronaldo, Kaka, Drogba
purpose of controlling the many etc).
possible extraneous variables that
may affect the dependent variable. RQ: Should they continue to use
celebrities? Are their ads effective?
• Field experiments are those in
which the independent variables
are manipulated and the
measurements of the dependent
variable are made on test units in
their natural setting.
Example: Field Experiment
RQ: Does music volume and aroma influence shopper behavior?
Hypotheses: (i) High volume and (ii) vanilla aroma will have a
positive effect on (a) time spent in store, (b) money spent in store,
and (c) customer’s satisfaction with shopping experience.
Treatment conditions: High/Low volume (randomly selected groups,
high volume: experimental group & low volume: control group
– the test units (customers) “Satisfaction levels are
significantly higher in the loud
– independent variables music than in the soft music
(the treatments: high vs. low volume manipulation) condition (means: loud 5.5 v soft
– dependent variables (time, money, satisfaction) 5.1) and they are higher for the
aroma present than the aroma
– extraneous variables (?)
absent condition (means: loud 5.4
v soft 5.1).”
Morrison, M., Gan, S., Dubelaar, C., & Oppewal, H. (2011). In-store music and aroma influences on
shopper behavior and satisfaction. Journal of Business Research, 64(6), 558-564.
Test Marketing
• Test marketing is the phrase commonly used to indicate
an experiment, study, or test that is conducted in a field
setting.
• Main uses of test markets:
– To test sales potential for a new product or service
– To test variations in the marketing mix for a product or service
• Types of test markets:
– Standard test markets: the firm tests the product or marketing mix variables
through the company’s normal distribution channels.
– Controlled test markets are conducted by outside research firms that guarantee
distribution of the product through prespecified types and numbers of distributors.
– Simulated test markets (STMs): are those in which companies test new products
in a staged environment that mimics natural conditions. The purpose of simulated
test markets is to gauge consumers’ reactions to new products, along with
associated elements of the marketing mix. See example in the notes below.
Example: Product Use Testing
 Product use testing means testing the
prototype under normal operating
conditions.
 Also called market acceptance testing.
 Some terms:
• Alpha testing: done in-house
• Beta testing: done with real users
 Typical goals of beta testing: to
determine if the product works and is
free of “bugs.”
 Beta testing is the final round of testing
before releasing a product to a wide
audience.
Pros and Cons of Test Marketing
Advantages: Disadvantages:
• Test markets do not yield
• Test marketing allows infallible/reliable results
for the most accurate
• Competitors may intentionally
method of forecasting
try to sabotage test markets
future sales, and it
allows firms the • Test markets bring about
opportunity to pretest exposure of the product to the
marketing-mix competition
variables. • Test markets may create ethical
problems (is negative publicity
always reported or we hear only
the good news? – also, bias in
selecting the locations).
Ethical issues to consider on research
design…
• Recommending a costlier design than needed.
• Designing a study in which data are collected
for multiple clients at the same time.
• Using information obtained for a client in
another research project.
• Over- or underestimating data collection costs.
• Wrongfully gaining respondent cooperation to
reduce costs.
• Misrepresenting sampling methods.
 Chapter 5:

Secondary Data and

Packaged
Information
 Learning Objectives
In this chapter you will learn:
• The meaning of the term big data
• The differences between primary and secondary data
• The different classifications of secondary data, including
internal and external databases
• The advantages and disadvantages of secondary data “You live in a world
• How to evaluate secondary data where secondary data
•
are readily available
What packaged information is and the differences between
and easily accessed.”
syndicated data and packaged services
• The advantages and disadvantages of packaged information
• The applications of packaged information
• The uses of social media data and their advantages and
disadvantages
• What the Internet of Things is and its future potential
The Marketing Research Process: “WHERE WE
ARE”
Step 1: Establish the need for
Step 7: Design data collection forms
marketing research

Step 2: Define the Problem Step 8: Determine the sample plan

and size

Step 3: Establish research objectives Step 9: Collect data

Step 4: Determine the research design Step 10: Analyze data

Step 5: Identify information types and Step 11: Prepare and present the final
sources research report

Step 6: Determine methods of

accessing data
What Is "Big Data"?
• Big data refers to large amounts of data from multiple sources.
• The term has been popularized in recent years in response to the
numerous types and huge amounts of data to which companies now
have access in real time.
• Marketing analytics is the term often used to refer to the management
and analysis of data to improve marketing decisions.
• According to Gartner, Big Data is comprised of 3V’s:
– Velocity – Denotes the speed at which data is emanating and changes are
occurring between the diverse data sets.
– Volume – Around 6 million people are using the digital media and it is estimated
that about 2.5 quintillion bytes of data is being generated every day.
– Variety – Most of the data is unstructured in nature.

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Big Data Examples in Real Life
• Netflix's Content Recommendation: Netflix utilizes big data to analyze user viewing habits and
preferences. This data is then used to recommend personalized content, enhancing user satisfaction and
retention [1].
• Credit Card Fraud Detection: Financial institutions use big data to detect fraudulent transactions by
analyzing patterns and anomalies in real-time transaction data. This helps protect customers from
unauthorized charges [3].
• Advertising and Marketing: Big data is employed in advertising and marketing to analyze customer
behavior and preferences. This enables targeted advertising campaigns that are more likely to convert,
improving ROI [4].
• Retail Inventory Management: Retailers use big data to optimize inventory levels, ensuring that
products are available when and where customers want them. This minimizes stockouts and excess
inventory costs.
• Healthcare Predictive Analytics: Big data helps healthcare providers predict disease outbreaks,
optimize treatment plans, and improve patient outcomes by analyzing patient data and medical
research [6].
• Smart Cities: Municipalities use big data to monitor traffic patterns, reduce congestion, and improve
public transportation. It also aids in managing resources efficiently and enhancing citizen services.
• Social Media Insights: Social media platforms analyze user-generated content to gain insights into
trends, sentiments, and user behavior. This data is valuable for marketing, product development, and
decision-making.
• E-commerce Personalization: Online retailers like Amazon use big data to personalize product
recommendations and shopping experiences, increasing sales and customer satisfaction [5].
Primary Versus Secondary Data
• Primary data: information that is developed or gathered by the
researcher specifically for the research project at hand.
• Secondary data: information that has previously been gathered by
someone other than the researcher and/or for some other purpose than
the research project at hand.

Primary Data Secondary Data

Collection pur- For the problem For other prob-
pose at hand lems

Collection
Very involved Rapid and easy
process

Collection cost High Relatively low

Collection time Long Short

Uses of Secondary Data
 Secondary data has many uses in marketing research and sometimes
the entire research project may depend on the use of secondary data.
 Applications include economic-trend forecasting, corporate
intelligence, international data, public opinion, and historical data.

 Secondary data rarely provides all answers but helps:

– Identify the problem
– Better define the problem
– Formulate an appropriate research design
– Answer certain research questions and test some hypotheses
– Interpret primary data more insightfully

Exhaust all appropriate secondary data sources before collecting primary data
Classification of Secondary Data
• Internal secondary data are data that have been collected within the
firm, such as sales records, purchase requisitions, and invoices.
• Internal secondary data is used for database marketing.
• Database marketing is the process of building, maintaining customer
(internal) databases and other databases for the purpose of contacting,
transacting, and building relationships. Example: data mining.
• Internal databases consist of information gathered by a company,
typically during the normal course of business transactions.
• Companies use their internal databases for purposes of direct marketing
and to strengthen relationships with customers, which is referred to as
customer relationship management (CRM).

Identify other ways companies use databases?

External Secondary Data
External databases are supplied by organizations
outside the firm:
• Published sources: sources of information prepared
for public distribution and normally found in libraries
or a variety of other entities, such as trade
organizations, research firms, Chamber of
Commerce.
• Official statistics: are information published by
public organizations, including government
institutions and international organizations.
• Data aggregators: are services or vendors that
organize and package information on focused topics.
• Syndicated services data: provided by firms that
collect data in a standard format and make them
available to subscribing firms – highly specialized
and not available in libraries.
Pros and Cons of Secondary Data
Advantages Disadvantages
• Are obtained quickly • Reporting units may be
• Are inexpensive incompatible
• Are readily available • Measurement units do not match
• Enhance existing primary data • Class definitions are not usable
• May achieve research objective • May be outdated
• May not be credible
Evaluating Secondary Data
• What was the purpose of the study?
• Who collected the information?
• What information was collected?
• How was the information attained?
• How consistent is the information with other information?
What Is Packaged Information?
• Packaged information is a type of secondary data in which the data
collected and/or the process of collecting the data are prepackaged for
all users.
• There are two broad classes of packaged information:
– Syndicated data: are a form of external, secondary data that are
supplied from a common database to subscribers for a service fee

– Packaged services: refers to a prepackaged marketing research

process that is used to generate information for a particular user.
– Uses of packaged information
∞ Measuring consumer attitudes and opinions
∞ Market segmentation (often using geodemographics)
∞ Monitoring media usage and promotion effectiveness
∞ Market tracking studies
Social Media Data
• Social media data, also termed user-generated content (UGC), is any
information that is created by users of online systems and intended to be
shared with others
• Social media monitoring (social media listening) involves actively
gathering, organizing, and analyzing social media data to gain consumer
insights.
• Examples: Reviews, Tips, New uses, Competitors etc
• Monitoring social media using sentimental analysis: the ratio of
positive to negative comments posted about products and brands on the
web.
• Some free social media data aggregators: Brand24, Hootsuite &
many others
Advantages Disadvantages
• Currency • Audience may not be representative
• Inexpensive • Consumers not identifiable
• Unprompted • Review websites subject to
• Can track trends manipulation
• Shallow content
Next Week
CHAPTER 6: Qualitative Research
 The differences between quantitative and
qualitative research techniques
 The pros and cons of using observation as a
means of gathering data
 What focus groups are and how they are
conducted and analyzed
 What enthnographic research is and its
strengths and weaknesses
 To learn how marketing research online
communities (MROCs) are used
 Other qualitative methods used by
marketing researchers, including in-depth
interviews, protocol analysis, projective
techniques, and neuromarketing
Copyright

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