Dr. Michael R. Hyman, NMSU

Types of Marketing Research

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Marketing Research Types

Basic research

Applied research

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Basic Research

• Attempts to expand the limits of knowledge

• Not directly involved in the solution to a pragmatic problem

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Basic Research Methods

• Surveys

• Experiments

• Secondary data

• Observation

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Basic Research Example

Do consumers experience cognitive dissonance in low-involvement situations?

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Applied Research

Conducted when a decision must be made about a specific real-life problem

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Applied Research Example

• Should McDonalds add Italian pasta dinners to its menu?

• Marketing research told McDonald’s it should not?

• Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?

• Research showed Crest Whitestrips would sell well at a retail price of $44

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Types of Research

• Exploratory

• Descriptive

• Causal

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COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences the Type of Research

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Exploratory Research Descriptive Research Causal Research(Unaware of Problem)(Aware of Problem) (Problem Clearly Defined)

“Our sales are declining and “What kind of people are buying “Will buyers purchase more of we don’t know why.” our product? Who buys our our products in a new package?

competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?” “What features do buyers prefer campaigns is more effective?”

in our product?”poss

ible

situ

atio

n

Degree of Problem Definition

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Exploratory Research

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Exploratory Research Techniques: Two Examples

• Secondary data (historical data)

– Previously collected

– Census of population

– Literature survey

• Pilot study

– A number of diverse techniques

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Exploratory Research

• Initial research conducted to clarify and define the nature of a problem

• Does not provide conclusive evidence

• Subsequent research expected

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Descriptive Research

• Describes characteristics of a population or phenomenon

• Some understanding of the nature of the problem

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Descriptive Research Example

• Weight Watchers average customer

• Woman about 40 years old

• Household income of about $50,000

• At least some college education

• Trying to juggle children and a job

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Descriptive Research Example

• Men’s fragrance market

• 1/3 size of women’s fragrance market

• But growing at a faster pace

• Women buy 80 % of men’s fragrances

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Causal Research

• Conducted to identify cause and effect relationships

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Identifying Causality

• A causal relationship is impossible to prove.

• Evidence of causality:1. The appropriate causal order of events

2. Concomitant variation--two phenomena vary together

3. An absence of alternative plausible explanations

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Research-Directed Marketing: Minimizing Risk, Maximizing Profits

Source: AMA Best Practice WebcastsSponsored by:  Vividence Webcast Date: July 22, 2004Time: 55 minutesPresenter: Dr. Bonny Brown, Director of Research, Vividence Corporation

Click here for free webcast (you’ll need to register on the AMA site; introduces many topics covered in this course)