ESSENTIALS ofMARKETING

RESEARCPutting Research Into Practice

Kenneth E. Clow Karen E. JamesUniversity of Louisiana at Monroe Louisiana State University, Shreveport

USAGELos Angeles | London j New Delhi

Singapore | Washington DC

Preface xvii

SECTION 1: INTRODUCTION TO MARKETING RESEARCH

1. The Role of Marketing ResearchLearning ObjectivesIntroductionMarketing Research

Functions of Marketing ResearchApplied Versus Basic ResearchThe Philosophy of ScienceThe Scientific Method

Marketing Research and Decision MakingSegmentation and TargetingProduct DevelopmentMarketing Communications and Media SelectionMarket and Competitive AnalysesPricing and ForecastingSite Selection and Distribution

Brief History of Marketing ResearchThe Marketing Research Industry Today

Conducting Research In-House Versus OutsourcingFull-Service and Boutique Market Research FirmsSample Aggregators

Emerging Trends in Marketing ResearchTelecommunications TechnologyEconomicsCompetition

Overview of the TextGlobal ConcernsStatistics ReviewDealing With DataSummaryGlossary of Key TermsCritical Thinking ExercisesContinuing Case Study: Lakeside GrillMarketing Research PortfolioStudent Study Site

22245677

99

1010111114141516171718181919192122232324

2. The Marketing Research Process 25Learning Objectives 25Introduction 25Types of Research Design 27

Exploratory Research 27Descriptive Research 28Causal Research 29

Overview of the Marketing Research Process 30Research Purpose 31Research Design 34Sample Selection 36Data Collection 4 37Data Analysis 38Research Report 39

Preparing the Research Proposal J^ ••, 40Qualitative and Quantitative Research 41

Qualitative Research 41Quantitative Research 43Social Media: An Illustration of the

Marketing Research Process 44Ethical Considerations in Designing Research Studies 45- Ethics and the RFP 46

Ethics and the Research Proposal 46Ethics and the Research Process 47Ethics and Respondents 49

Global Concerns 50Statistics Review 50Dealing With Data 52Summary 53Glossary of Key Terms 55Critical Thinking Exercises 56Continuing Case Study: Lakeside Grill 58Marketing Research Portfolio , ' - 59Student Study Site 59

SECTION 2: TYPES OF MARKETING RESEARCH 61

3. Secondary Data and Research 62Learning Objectives J 62Introduction 62It All Begins With Secondary Data 63

Advantages of Secondary Data 64Disadvantages of Secondary Data • 65Evaluating the Accuracy of Secondary Data 65Key Uses of Secondary Data 70

Sources of Secondary Data 74Internal Sources of Secondary Data 74

Open Access Sources of Secondary Data 76Published Sources of Secondary Data 80Syndicated Sources of Secondary Data 81

Global Concerns 86• Statistics Review 87Dealing With Data 89Summary . 89Glossary of Key Terms v 91Critical Thinking Exercises 92Continuing Case Study: Lakeside Grill 93Marketing Research Portfolio 94Student Study Site * 94

4. Qualitative Research x 95Learning Objectives 95Introduction ^ 95The Role of Qualitative Research 96Focus Groups 97

Develop Study Parameters 98Compose Interview Questions 99Select Participants 100The Focus Group Session 102Debriefing 103Written Report 104Disadvantages of Focus Groups 105

Online Qualitative Research 105Online Focus Groups 106Discussion Boards, Online Communities, and Chat Rooms 107

In-Depth Interviews 108Projective Techniques 111

Sentence Completion 111Cartoon Tests 112Picture or Photo Sorts ' , 112Word Association 113Storytelling 114Third-Person Technique 114ZMET (Zaltman Metaphor Elicitation Technique) 115

Global Concerns 115-Statistics Review ^ 116Dealing With Data 118Summary " 119Glossary of Key Terms 121Critical Thinking Exercises 122Continuing Case Study: Lakeside Grill 123Marketing Research Portfolio 125Student Study Site 126

5. Observation Research 127Learning Objectives 127Introduction 127Observation Research Conditions 128Dimensions of Observation Research 129

Natural Versus Contrived 129Open Versus Disguised 131Direct Versus Indirect 132Unstructured Versus Structured 132Human Versus Mechanical 133

Overview of Observation Research 134Human Observation 135

In-Person Observation 135Camera/One^Way Mirror Observation 137Mystery Shoppers J •, 137Ethnographic Research 139

Online Observation - 140Social Media Monitoring 142Text Mining 143Web Tracking 144Link Analysis 145

Mechanical Observation 146Market Basket Analysis 146Radio and Television Monitoring 147Eye Tracking 148Cognitive Neuroscience 149Physiological Measures 150

Global Concerns 150Statistics Review 151Dealing With Data ' 154Summary 155Glossary of Key Terms 156Critical Thinking Exercises 157Continuing Case Study: Lakeside Grill 158Marketing Research Portfolio 160Student Study Site 160

6. Survey Research 161Learning Objectives 161Introduction 161Why Use Survey Research - 162Survey Research Time Frame 163Types of Errors in Survey Research 164

Sample Design Error 165Respondent Error 166Measurement Error 168

Data Collection Alternatives 169

Telephone Surveys 169Mail Surveys 173Personal Interviews and Intercept Studies 175Internet Surveys • , 176

• Mixed Modes 179Survey Selection Considerations 179

Budget, Time Frame, and Precision 180Questionnaire Length and Structure 181Incidence Rate 181Sample Characteristics 182

Global Concerns 182Statistics Review 183Dealing With Data 186Summary {<• 186Glossary of Key Terms ^ ~ 188Critical Thinking Exercises 188Continuing Case Study: Lakeside Grill 190Marketing Research Portfolio 191Student Study Site 191

7. Experimental Research 192Learning Objectives 192Introduction 192Nature of Causal Research 193

Concomitant Variation 194Time Order of Occurrence 194-Elimination of Extraneous Factors 194

Basic Elements of Experimental Design 195Experimental Notation 195Control and Treatment Groups 196Ethics in Experimentation 197Internal and External Validity 197

Extraneous Variables" , 198History 198Maturation 198Testing 199Instrumentation 200Selection 200-Attrition 201

Preexperimental Designs 202One-Shot Preexperimental Design 202One-Shot Static Group Design 203One-Group Pretest-Posttest Design 204

True Experimental Designs 204Pretest-Posttest Control Group Design 205Posttest-Only Control Group Design 206

Quasi-Experimental Designs 206Time Series Design 207Time Series Control Group Design 207

Test Markets 208•Challenges of Test Markets 208Competitive Reactions 209Novel Versus Normal Behavior 210Test Market Opportunities 210Issues in Selecting a Test Market 211

Global Concerns 212Statistics Review 213Dealing With Data ' 215Summary 216Glossary of/Key Terms 218Critical Thinking Exercises / 219Continuing Case Study: Lakeside Grill 221Marketing Research Portfolio 222Student Study Site 222

SECTION 3: SAMPLING AND MEASUREMENT 223

8. Sampling Procedures 224Learning Objectives 224Introduction 224Introduction to Sampling 225The Sampling Process 226

Define the Population 226Identify the Sample Frame 227Choose a Sampling Procedure 229Decide on the Sample Size 230Select the Sample 231

Nonprobability Sampling Methods 231Convenience Sample ' 231Judgment Sample 232Quota Sample 232Snowball Sample 234

Probability Sampling Methods 235Simple Random Sample 235Systematic Random Sample J 236Stratified Sample 236Cluster Sample 237

Determining the Sample Size 238General Practice 238Previous Studies K 239Statistical Formula 239Sample Size Calculators 240

Sample Size Tables 240Online Research Panels 241

Benefits of Online Research Panels 242Concerns With Online Research Panels 243

" Global Concerns 244Statistics Review 244Dealing With Data 246Summary 248Glossary of Key Terms 249Critical Thinking Exercises 250Continuing Case Study: Lakeside Grill 4 251Marketing Research Portfolio 252Student Study Site 252

9. Measurement Methods , 253Learning Objectives 253Introduction 253The Concept of Measurement 255

Nominal Scales 256Ordinal Scales 257Interval Scales 261Ratio Scales 262Deciding Which Scale to Use 265

Validity and Reliability 266Reliability v 267

Test-Retest Reliability 267Equivalent Form Reliability 268Internal Consistency Reliability 268

Validity 269Face Validity ,- 269Content Validity 270Predictive Validity 271Construct Validity > 271

Relationship of Validity and Reliability 271Global Concerns 272Statistics Review 273Dealing With Data 274Summary 276_Glossary of Key Terms 277Critical Thinking Exercises 278Continuing Case Study: Lakeside Grill 280Marketing Research Portfolio 283Student Study Site 283

10. Marketing Scales 284Learning Objectives 284Introduction 284

Measuring Attitudes 285Scale Development 286

Characteristics of a Good Scale 286Marketing Scales 287

Rank-Order Scales 287Q-Sort 291Paired Comparisons 291Constant Sum 293Graphical Rating Scales 296Itemized Rating Scales 297Semantic Differential Scales 298Stapel Scales ' * 301Likert Scales 303

Scale Category Considerations 304Number of Categories J 305Balanced Versus Unbalanced Scales 305"No Opinion" and "Don't Know" Options 306Forced Versus Nonforced Choices . 307Type of Category Description 308

Validity and Reliability Measurement 309Correlation Analysis 309Factor Analysis 311

Global Concerns 311Statistics Review v 313Dealing With Data 314Summary 315Glossary of Key Terms 317Critical Thinking Exercises ~ 318Continuing Case Study: Lakeside Grill 320Marketing Research Portfolio 321Student Study Site 321

11. Questionnaire Design 322Learning Objectives 322Introduction 322The Questionnaire Design Process _ 323Question Format 326

Open-Ended Questions 327Closed-Ended Questions 329

Types of Closed-Ended Questions 331Dichotomous Questions 331Multiple-Choice Questions 332Scaled-Response Questions 332

Questionnaire Development 334Demographic or Classification 334Knowledge 334

Attitudes 335Preferences 335Intentions 336Behaviors 336

• Question Phrasing 337Ambiguity, Jargon, and Clarity 337Vocabulary and Scales 338Limitations of Human Memory and Either/Or Questions 339Double-Barreled and Leading Questions 340

Questionnaire Layout 340Instructions 340Screening Questions 341Survey Questions 342Demographic Information 342Closing J 3A2Design Considerations 343Invitation or Cover Letter 343

Split-Questionnaire Design 344Evaluating the Questionnaire 346Global Concerns 347Statistics Review 347Dealing With Data ' 348Summary 349Glossary of Key Terms 351Critical Thinking Exercises 352Continuing Case Study: Lakeside Grill 354Marketing Research Portfolio 355Student Study Site ~ 355

SECTION 4: ANALYZING AND REPORTINGMARKETING RESEARCH 357

12. Fundamental Data Analysis 358Learning Objectives 358Introduction 358Preparing Data for Analysis 359Data Validation 360

Data Collection Process 360Proper Screening 361Fraud 362Data Completeness, 362Data Usability 363

Data Coding 365Coding Closed-Ended Questions 365Coding Open-Ended Questions 370

Data Entry 372

Data Cleaning 373Precoding Questionnaires 373

-Tabulation 374One-Way Tabulations 374Cross-Tabulations 376Basic Descriptive Statistics 378

Graphing Data 380Global Concerns 384Statistics Review 385Dealing With Data 389Summary 389Glossary of Key Terms 391Critical Thinking Exercises 392Continuing Case Study: Lakeside Grill 394Marketing Research Portfolio J 395Student Study Site 395

13. Analysis of Differences and Regression Analysis 396Learning Objectives 396Introduction 396Hypothesis Testing 397

Step 1: State the Hypothesis 398Step 2: Select the Statistical Test 398Step 3: Determine the Decision Rule 399Step 4: Calculate the Test Statistic 400Step 5: State the Conclusion 401

Statistical Significance Versus Practical Importance 402Misuses of Statistical Significance 402Relevancy and Statistical Significance 403

Types of Error 404Chi-Square Test 406

One-Way Frequency 406Cross-Tabulations ~ ' 407

Testing for Differences in Means 408t-Tests and z-Tests^ 409Analysis of Variance 413

Regression Analysis 416Simple Regression 416Multiple Regression 418

Global Concerns 421Dealing With Data 421Summary 422Glossary of Key Terms 424Critical Thinking Exercises 424Continuing Case Study: Lakeside Grill 429Marketing Research Portfolio 431Student Study Site 431

14. Research Reports and Presentations 432Learning Objectives 432Introduction 432Goals of Reports and Presentations " 433• Effectively Communicate Findings 433

Provide Interpretations of Findings 434Drawing Conclusions 435Provide Insight 436Make Recommendations 437Discuss Limitations 438

Preparing Research Reports 438Title Page " 438Table of Contents 439Executive Summary 439Introduction / 439Research Methodology 440Data Analysis Findings 440Conclusions and Recommendations 441Appendices 442

Executive-Ready Report 442Oral Presentations 443

Creating Effective Presentations 444Creating Effective Visuals 445Making PowerPoint Presentations Come Alive 446

Creating Charts and Graphs 448Pie Charts 448Line and Area Charts 450Bar/Column Charts 452

Global Concerns 456Summary 457Glossary of Key Terms 458Critical Thinking Exercises 459Continuing Case Study: Lakeside Grill 462Marketing Research Portfolio 463Student Study Site 463

Appendix: Careers in Marketing Research 464

Notes 468

Photo Credits 481

Index 482

About the Authors 497