Unit 4. Types ofMarketing Research
Unit 4. Types of Marketing Research
MarketingResearchMarketingresearchprovides information toreduce uncertainty.It helps focus decision-making.Sometimes marketing researchersknowexactly what their marketing problems areanddesign careful studies to test specifichypotheses.For example,a soft drink companyintroducing a new clear cola might want to knowwhether a gold or silver label would make thepackaging more effective.This problem isfullydefined and an experiment may be designed toanswer the marketingquestion with littlepreliminaryinvestigation
Marketing Research Marketing research provides information to reduce uncertainty. It helps focus decisionmaking. Sometimes marketing researchers know exactly what their marketing problems are and design careful studies to test specific hypotheses. For example, a soft drink company introducing a new clear cola might want to know whether a gold or silver label would make the packaging more effective. This problem is fully defined and an experiment may be designed to answer the marketing question with little preliminary investigation
Types of MarketingResearchGathers preliminary informationExploratorythat will help define the problemResearchand suggesthypothesesDescribes things as marketDescriptivepotential fora productortheResearchdemographicsand consumersattitudes.CausalTesthypothesesaboutcauseResearchand-effect relationships
3 Types of Marketing Research Exploratory Research Descriptive Research Causal Research •Test hypotheses about causeand-effect relationships. •Gathers preliminary information that will help define the problem and suggest hypotheses. •Describes things as market potential for a product or the demographics and consumers’ attitudes
TypesofMarketingResearch(SeeP59-60)Marketing research can be classified on the basis ofeither technigueor function.Experiments,surveys,and observational studies are just a few commonresearchtechniques.Classifying researchbyitspurpose or function shows how the nature of themarketing problem influences the choice ofmethods.The nature of the problem will determinewhethertheresearchis(1)exploratory,(2)descriptive,or(3)causal.Exploratoryresearchis conductedto clarifythenatureofambiguousproblems.Management may have discoveredageneral problem,but it may need researchto gain a betterunderstandingof the dimensions of the problemand to aidanalysis
4 ◼ Marketing research can be classified on the basis of either technique or function. Experiments, surveys, and observational studies are just a few common research techniques. Classifying research by its purpose or function shows how the nature of the marketing problem influences the choice of methods. The nature of the problem will determine whether the research is (1) exploratory, (2) descriptive, or (3) causal. ◼ Exploratory research is conducted to clarify the nature of ambiguous problems. Management may have discovered a general problem, but it may need research to gain a better understanding of the dimensions of the problem and to aid analysis. Types of Marketing Research (See P59-60)
ExploratoryresearchExploratoryresearchisnot intended to provideconclusive evidencefrom which todetermine a particularcourse of actionUsuallyexploratoryresearchis conductedwith the expectationthat subsequentresearch will berequired to providesuch conclusiveBmFaiancomevidence
Exploratory research ◼ Exploratory research is not intended to provide conclusive evidence from which to determine a particular course of action. Usually exploratory research is conducted with the expectation that subsequent research will be required to provide such conclusive evidence
Rushing intodetailedsurveysbeforelessexpensive and more readilyavailable sourcesofinformation havebeen exhausted canleadtoserious mistakes.For example,suppose a Chinesefast-food restaurant chain is consideringexpanding its hours and product line with abreakfast menu,Exploratory research witha smallnumber of Current customers might find a strongnegative reaction to eating a spicyvegetablebreakfast at a Chinese fast food outlet. Thus,exploratoryresearch might helpcrystallizeaproblem andidentify information needed forfuture research
◼ Rushing into detailed surveys before less expensive and more readily available sources of information have been exhausted can lead to serious mistakes. For example, suppose a Chinese fast-food restaurant chain is considering expanding its hours and product line with a breakfast menu, Exploratory research with a small number of Current customers might find a strong negative reaction to eating a spicy vegetable breakfast at a Chinese fast food outlet. Thus, exploratory research might help crystallize a problem and identify information needed for future research
DescriptiveResearchThe majorpurposeof descriptiveresearch,asthe name implies,isto describe characteristicsofa population.Marketing managers frequentlyneedto determine who purchases a product,portraythe size of the market,identify competitors'actions,and so on.Descriptive research seekstodetermine the answers to why,what,whenwhere,and how guestions.Infiniti learned fromdescriptive research that Americans generallystartto shop for a car by considering six models.Theythen narrow the field and usually visitthree showrooms before they settle on a model.This takesanaverage of two weeks
Descriptive Research ◼ The major purpose of descriptive research, as the name implies, is to describe characteristics of a population. Marketing managers frequently need to determine who purchases a product, portray the size of the market, identify competitors' actions, and so on. Descriptive research seeks to determine the answers to why, what, when, where, and how questions. Infiniti learned from descriptive research that Americans generally start to shop for a car by considering six models. They then narrow the field and usually visit three show rooms before they settle on a model. This takes an average of two weeks
These descriptive findings,combined with knowledge thattheyfaced competition fromdozens of luxurymodels onthe market, influenced Infinitito encourage dealers toemphasize thequality of theconsumer's shoppingexperience
These descriptive findings, combined with knowledge that they faced competition from dozens of luxury models on the market, influenced Infiniti to encourage dealers to emphasize the quality of the consumer's shopping experience
However,buyers of luxury cars typically take twiceaslong to complete thedecision and make apurchase.These descriptivefindings, combinedwith knowledgethattheyfaced competitionfromdozens of luxury models on the market, influencedInfiniti to encourage dealers to emphasize thequality of the consumer's shopping experience.Thecompany made sizableinvestments in dramaticarchitecturefor showrooms and elegantfurnishingssuch as fountains and indoor bridges.Some Infinitishowroomshavecontemplationzones-designatedareas where customers can sit without harassmentto consider carpurchases in silence
◼ However, buyers of luxury cars typically take twice as long to complete the decision and make a purchase. These descriptive findings, combined with knowledge that they faced competition from dozens of luxury models on the market, influenced Infiniti to encourage dealers to emphasize the quality of the consumer's shopping experience. The company made sizable investments in dramatic architecture for showrooms and elegant furnishings such as fountains and indoor bridges. Some Infiniti showrooms have contemplation zones-designated areas where customers can sit without harassment to consider car purchases in silence
Magazinestypicallyconduct descriptivesurveystoidentify the characteristics of their audience. Foryears Teen magazine managers sensed that 12 to15 year-old girls cared a lot about fragrances,lipstick,andmascara,buttheylackedanyquantitative evidence.Their descriptive researchfound that 94.1 percent of 12 to 15-year old girlsuse creamrinse/conditioner86.4percent usefragrance,and 84.9 percent use lip-gloss.Of thegirls using Fragrance,73 percent preferredusingtheir own brand, 17 percent shared their brandand 6 percent used someone else's brand.Resultsshowed that most girls use cosmetics.Brandloyaltybeginsearly,and12-to-15year-oldsprefer using and choosing their own brands
◼ Magazines typically conduct descriptive surveys to identify the characteristics of their audience. For years Teen magazine managers sensed that 12 to 15 year-old girls cared a lot about fragrances, lipstick, and mascara, but they lacked any quantitative evidence. Their descriptive research found that 94.1 percent of 12 to 15-year old girls use cream rinse/conditioner, 86.4 percent use fragrance, and 84.9 percent use lip-gloss. Of the girls using Fragrance, 73 percent preferred using their own brand, 17 percent shared their brand, and 6 percent used someone else's brand. Results showed that most girls use cosmetics. Brand loyalty begins early, and 12-to-15 year-olds prefer using and choosing their own brands