Marketing Ch. 8

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1. 
Marketing Research
 
is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
 
2. 
Decision
 
is a conscious choice from among two or more alternatives
 
3. 
Decision Making
 
is the act of consciously choosing from alternatives
 
4. 
Exploratory Research
 
Provides ideas about a relatively vague problem.
Ex: General Mills discovered that the initial version of its Hamburger Helper wasn't satisfactory for many consumers, so it interviewed them to get ideas to improve the product
 
5. 
Descriptive Research
 
generally involves trying to find the frequency that something occurs or the extent of a relationship b/w two factors.
Ex: When General Mills wants to study how loyal consumers are to its Wheaties, it can obtain data on the number of households buying Wheaties and competitive products.
 
6. 
Causal Research
 
(the most sophisticated) Tries to determine the extent to which the change in one factor changes another one.
Ex: Fisher-Price decided changing the toy designs is related to changes in the amount of time children play with the toy. Experiments and test markets are examples of causal research.
 
7. 
Research Objectives
 
are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research.
 
8. 
Measures of Success
 
criteria or standards used in evaluating proposed solutions to the problem.
Measures of Success are decided before the research begins
 
9. 
Constraints
 
restrictions placed on potential solutions to a problem.
 
10. 
Ex of Constraints
 
The limitations on the time and money available to solve the problem.
Fisher price might set 2 constraints on its decision to select either the old or new version of the the chatter telephone: decision must be made in 10 weeks, and no budget is available beyond collecting data in a nursery school.
 
11. 
Concepts
 
ideas about products or services
 
12. 
New Product Concept
 
a picture or verbal description of a product or service the firm might offer for sale
 
13. 
Methods
 
are the approaches that can be used to collect data to solve all or part of a problem
 
14. 
Sampling
 
a technique to select a group of distributors, customers, or prospects and treating the information they provide as typical of all those in whom they are interested
 
15. 
Statistical Inference
 
used to generalize the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions
 
16. 
Data
 
facts and figures related to a problem
 
17. 
Secondary Data
 
facts and figures that have already been recorded before the project at hand
 
18. 
Internal Secondary Data
 
data that comes from inside the organization.
Sales breakdowns and order requests
 
19. 
External Secondary Data
 
data comes from outside the organization. data available from the US Census
 
20. 
Primary Data
 
facts and figures that are newly collected for the project
 
21. 
Internal Secondary Sales are often the....
 
starting point for a new marketing research study b/c using this info can result in huge time and cost savings
 
22. 
Syndicated Panel Data
 
answer economic questions that require consistent data collection over time. is a type of external secondary data.
 
23. 
Ex of syndicated panel data
 
how many times did our customers buy our products this year compared to last. Some companies pay households and business to record all this info.
 
24. 
Advantages of Secondary Data
 
time savings and low cost
 
25. 
Disadvantages of Secondary Data
 
data may be out of date, definitions/categories might not be right for a researcher's project, not specific enough
 
26. 
Primary data compared to secondary is more
 
time consuming and expensive, but may be more specific to the problem
 
27. 
Observational Data
 
facts and figures obtained by watching, either mechanically or in person, how people actually behave.
Type of primary data
 
28. 
Mechanical Methods of Observational Data
 
TV ratings using a people meter
 
29. 
People Meter
 
a box that is attached to TVs, satelite dishes, etc. It has a remote that records when a viewer begins and finishes watching a program and sends the info to Media Research.
 
30. 
Mystery Shopper
 
companies pay mystery shoppers to check on the quality and pricing of their products and customer service provided by their employees.
Type of Primary Observational Data
 
31. 
Ethnographic Research
 
a specialized observational approach in which trained observers seek to discover subtle behavior and emotional reactions as consumers encounter products in their "natural use environment", such as the home or car.
A type of Primary Observational Data
 
32. 
Observational data can reveal ___ people do, but it cannot easily determine ____ they do it.
 
what, why
 
33. 
Neuromarketing
 
uses brain scanning to analyze the buying process. 85% of consumers' thoughts, feelings, or preferences towards something are deep within the subconscious part of the brain and can't be understood using traditional techniques.
 
34. 
Questionnaire Data
 
facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
Type of primary data.
 
35. 
Idea Generation Method is? consists of?
 
coming up with ideas.
Individual Interviews, Depth Interviews, Focus Groups, Fuzzy Front End
 
36. 
Individual Interview
 
involves a single researcher asking questions of one respondent (most common way in the past)

 
37. 
Depth Interviews
 
researcher ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings
 
38. 
Focus Groups
 
informal sessions of 6-10 past, present, or prospective customers in which a discussion leader asks their opinions about the firm's and its competitors' products, how they use the products, and special needs they have that these products don't address.
 
39. 
Ex of using focus groups
 
3M used focus groups to hear consumer complaints about steel wool pads scratching their cookware, which led to the Scotch-Brite Never Scratch soap pads
 
40. 
Fuzzy Front End
 
wierd/different methods in which marketing researchers rely on to find "the next big thing"
Ex: trend hunting
 
41. 
Trend Hunting
 
the practice of identifying "emergent shifts in social behavior" which are driven by changes in pop culture that can lead to new products
 
42. 
Idea Evaluation Methods
 
the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions
 
43. 
Idea evaluation methods often involve...
 
conventional questionnaires using personal, mail, telphone, fax, and online surveys of a large sample
 
44. 
Mall Intercept Interviews
 
personal interviews of consumers visiting shopping centers
 
45. 
Open-Ended Questions
 
allows respondents to express opinions, ideas, or behaviors in their own words w/out being forced to choose among alternatives. Captures the "voice" of respondents
 
46. 
Close-end or Fixed Alternative Questions
 
require respondents to select one or more response options from a set of predetermined choices
 
47. 
Dichotomous Questions
 
simplest form of a fixed alternative question that allows only a "yes" or "no" response
 
48. 
a fixed alternative question with 3 or more choices uses a
 
scale
 
49. 
Semantic Differential Scale
 
5 point scale in which the opposite ends have one- or two- word adjectives that have opposite meanings.
Ex: how clean a person believes a restaurant is (can pick point 1 through 5)
 
50. 
Likert Scale
 
respondent indicates the extent to which he or she agrees or disagrees with a statement
 
51. 
Social Networks
 
intimate and frequent contact among people who share a common interest- at a lower cost than other media
 
52. 
Panel
 
a sample of consumers or stores from which researchers take a series of measurements
 
53. 
the word regularly is
 
ambiguous
 
54. 
Experiments
 
involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect, an example of causal research
 
55. 
Experiments want to determine...
 
if changing an independent variable (a cause) will change the behavior of the dependent variable that is studied (the result)
 
56. 
independent variables are also called
 
marketing drivers.
 
57. 
drivers
 
are often one or more of the marketing mix elements
 
58. 
test market
 
a marketing experiment to reduce risk.
Ex: food companies use test markets, which offer a product for sale in a small area to help evaluate potential marketing actions.
 
59. 
the dependent variable usually is a change in
 
purchases (incremental unit or dollar sales)
 
60. 
Information Technology
 
involves operating computer networks that can store and process data
 
61. 
Data Warehouse
 
databases that form the core, where the ocean of data is collected and stored
 
62. 
Sensitivity Analysis
 
used to query the database with "what if" questions to determine how a hypothetical change in a driver such as advertising can affect sales
 
63. 
Data Mining
 
extraction of hidden predictive information from large databases to find statistical links b/w consumer purchasing patterns and marketing actions.
 
64. 
RFID Technology
 
used a "smart tag" microchip on diapers and beer to tell whether they wind up in the same shopping bag at 10 in the evening
 
65. 
Managers are responsible for..
 
action, which is delivering the results in clear pictures, and if possible, in a single page.
 
66. 
Evaluating the Decision Itself
 
involves monitoring the marketplace to determine if action is necessary in the future. Are sales increasing to target segment? is new ad appealing to target group?
 
67. 
Evaluating the Decision Process Used
 
was the marketing research and analysis used to develop the recommendations effective? Was it flawed? Could it be improved for similar situations in the future?
 
68. 
Sales Forecast
 
total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts
 
69. 
___ % of all sales forecasts are simply the judgment of the individual decision maker who must act on the results of the forecast
 
99%
 
70. 
Direct Forecast
 
involves estimating the value to be forecast without any intervening steps.
Ex: how many quarts of milk should i buy? or How much money should I get out of the ATM?
 
71. 
Lost-Horse Forecast
 
involves starting with the alst known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they have a positive or negative impact, and make the final forecast
 
72. 
Survey of Buyers' Intentions Forecast
 
involves asking prospective customers if they are likely to buy the product during some future time period
 
73. 
Salesforce Survey Forecast
 
involves asking the firm's salespeople to estimate sales during a coming period, b/c the people are in contact with customers and are likely to know what customers like and dislike
 
74. 
Trend Extrapolation
 
involves extending a pattern observed in past data into the future
 
75. 
Linear Trend Extrapolation
 
when the patter is described with a straight line
 
76. 
what is the best known statistical method of forecasting
 
trend extrapolation