Short Video Discussion Paper Homework Help

Short Video Discussion Paper Homework Help

 
Extra Credit- Informational Interviewing (OPTIONAL) Below is the recording of Thursday's presentation on informational interviewing. The video goes black for about 20 seconds within the first minute, but it does come back. For your assignment, play the talk (~40 min.) and write 5 key points that you took away from the talk. A lot of students really enjoyed the presentation! Before you write 5 key points, read PowerPoint (chapters 8, 9, 10 and 10) first to easy for you. EDITION 4 Basic Marketing Research Integration of Social Media NARESH K. MALHOTRA Nanyang Technological University and Georgia Institute of Technology Boston Amsterdam Delhi Columbus Cape Town Mexico City Indianapolis Dubai New York London Sao Paulo Sydney Madrid San Francisco Milan Hong Kong Munich Seoul Upper Saddle River Paris Montreal Singapore Taipei Toronto Tokyo Editorial Director: Sally Yagan Editorial Project Manager: Meeta Pendharkar Director of Marketing: Patrice Lumumba Jones Executive Marketing Manager: Anne Fahlgren Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director: Janet Slowik Art Director: Steven Frim Text Designer: Wee Design Group Cover Designer: Wee Design Group Manager, Rights and Permissions: Hessa Albader Media Project Manager: Lisa Rinaldi Media Assistant Editor: Denise Vaughn Full-Service Project Management: Jennifer Welsch/ BookMasters, Inc. Composition: Integra Software Services Printer/Binder: R.R. Donnelley/Willard Cover Printer: Lehigh-Phoenix Color/ Hagerstown Text Font: 10/12 Times Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. Screen shots and icons reprinted with permission from the Microsoft Corporation. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation. Copyright © 2012, 2009, 2006, 2002 by Pearson Education, Inc., publishing as Prentice Hall. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Malhotra, Naresh K. Basic marketing research : integration of social media / Naresh K. Malhotra.—4th ed. p. cm. Includes bibliographical references and index. ISBN 978-0-13-254448-1 (hardcover : alk. paper) 1. Marketing research. I. Title. HF5415.2.M288 2012 658.8’3—dc23 2011019806 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-254448-2 ISBN 13: 978-0-13-254448-1 To my wife and best friend, Veena, with love. “A prudent wife is from the LORD.” PROVERBS 19:14 “Husbands, love your wives, even as Christ also loved the church, and gave himself for it.” EPHESIANS 5:25 This page intentionally left blank Brief Contents PART 1 Introduction and Early Phases of Marketing Research Chapter 1 Chapter 2 PART 2 Research Design Formulation Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 PART 3 63 Research Design 64 Exploratory Research Design: Secondary Data 92 Exploratory Research Design: Syndicated Sources of Secondary Data 120 Exploratory Research Design: Qualitative Research 146 Descriptive Research Design: Survey and Observation 182 Causal Research Design: Experimentation 216 Measurement and Scaling: Fundamentals and Comparative Scaling 244 Measurement and Scaling: Noncomparative Scaling Techniques 270 Questionnaire and Form Design 296 Sampling: Design and Procedures 332 Sampling: Final and Initial Sample-Size Determination 364 Data Collection, Analysis, and Reporting Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 1 Introduction to Marketing Research 2 Defining the Marketing Research Problem and Developing an Approach 32 389 Fieldwork: Data Collection 390 Data Preparation and Analysis Strategy 408 Data Analysis: Frequency Distribution, Hypothesis Testing, and Cross-Tabulation 436 Data Analysis: Hypothesis Testing Related to Differences 472 Data Analysis: Correlation and Regression 510 Report Preparation and Presentation 546 Running Case With Real Data 570 Comprehensive Critical Thinking Cases 575 Comprehensive Cases with Real Data 581 Comprehensive Brief Harvard Business School Cases Online Video Cases 605 Appendix of Statistical Tables 606 597 v Contents Foreword xxii Preface xxiii Acknowledgments xxx About the Author xxxii PART 1 Introduction and Early Phases of Marketing Research 1 Chapter 1 Introduction to Marketing Research 2 Learning Objectives 2 How Reebok Fits Shoes 3 Overview 4 Definition of Marketing Research 5 A Classification of Marketing Research Marketing Research Process 8 7 Step 1: Defining the Problem 9 Step 2: Developing an Approach to the Problem 9 Step 3: Formulating a Research Design 9 Step 4: Doing Fieldwork or Collecting Data 9 Step 5: Preparing and Analyzing Data 10 Step 6: Preparing and Presenting the Report 10 The Role of Marketing Research in Marketing Decision Making Marketing Research and Competitive Intelligence 13 The Decision to Conduct Marketing Research 13 An Overview of the Marketing Research Industry 15 Selecting a Research Supplier 18 Careers in Marketing Research 19 The Role of Marketing Research in MIS and DSS 20 Summary Illustration Using the Opening Vignette 22 Application to Contemporary Issues 23 International Marketing Research 23 Marketing Research and Social Media 24 Ethics in Marketing Research 26 SPSS Windows and Excel 28 11 Summary 28 • Key Terms and Concepts 29 • Suggested Cases and Video Cases 29 • Live Research: Conducting a Marketing Research Project 29 • Acronym 30 • Review Questions 30 • Applied Problems 30 • Group Discussion 31 • Hewlett-Packard Running Case 31  ONLINE VIDEO CASE 1.1: Burke: Learning and Growing Through Marketing Research 31 Chapter 2 Defining the Marketing Research Problem and Developing an Approach 32 Learning Objectives 32 The World’s First Sports Utility Wagon Overview 34 vi 33 CONTENTS The Importance of Defining the Problem 34 The Process of Defining the Problem and Developing an Approach 36 Tasks Involved in Problem Definition 37 Discussions with Decision Makers 37 Interviews with Industry Experts 40 Secondary Data Analysis 41 Qualitative and Exploratory Research 41 Environmental Context of the Problem 43 Past Information and Forecasts 43 Resource Constraints and Objectives 43 Buyer Behavior 44 Legal, Economic, Marketing, and Technological Environments 45 Management-Decision Problem and Marketing Research Problem 46 Defining the Marketing Research Problem 48 Components of the Approach 49 Analytical Framework and Models 50 Research Questions and Hypotheses 51 Specification of Information Needed 52 Summary Illustration Using the Opening Vignette International Marketing Research 54 Marketing Research and Social Media 56 Approach to the Problem 53 56 Ethics in Marketing Research 57 Summary 58 • Key Terms and Concepts 59 • Suggested Cases and Video Cases 59 • Live Research: Conducting a Marketing Research Project 60 • Acronym 60 • Review Questions 60 • Applied Problems 61 • Group Discussion 61 • Hewlett-Packard Running Case 62  ONLINE VIDEO CASE 2.1: Accenture: The Accent Is in the Name 62 PART 2 Research Design Formulation Chapter 3 Research Design 63 64 Learning Objectives 64 Marketing Research Helps Spiegel Redesign Its Product Lines Overview 66 What Is a Research Design? 66 Basic Research Designs 68 Exploratory Research 70 Descriptive Research 72 Cross-Sectional Designs 73 Longitudinal Designs 74 Cross-Sectional Versus Longitudinal Designs 75 Causal Research 76 Relationships Among Exploratory, Descriptive, and Causal Research 78 Tasks Involved in Formulating a Research Design 80 Research Design and the Value of Marketing Research 81 Budgeting and Scheduling the Project 81 Marketing Research Proposal 82 Summary Illustration Using the Opening Vignette 83 International Marketing Research 84 Marketing Research and Social Media 86 Ethics in Marketing Research 87 65 vii viii CONTENTS Summary 88 • Key Terms and Concepts 89 • Suggested Cases and Video Cases 89 • Live Research: Conducting a Marketing Research Project 89 • Acronym 90 • Review Questions 90 • Applied Problems 90 • Group Discussion 90 • Hewlett-Packard Running Case 91  ONLINE VIDEO CASE 3.1: National Football League: The King of Professional Sports 91 Chapter 4 Exploratory Research Design: Secondary Data 92 Learning Objectives 92 Secondary Data Vindicate the Vindicator! 93 Overview 94 Primary Versus Secondary Data 95 Advantages and Uses of Secondary Data 96 Disadvantages of Secondary Data 97 Criteria for Evaluating Secondary Data 98 Specifications: Methodology Used to Collect the Data Error: Accuracy of the Data 98 Currency: When the Data Were Collected 99 Objective: The Purpose for the Study 99 Nature: The Content of the Data 99 Dependability: How Dependable Are the Data? 100 Classification of Secondary Data Internal Secondary Data 101 98 100 Customer Databases 101 Data Warehousing and Data Mining 102 Customer Relationship Management and Database Marketing External Secondary Data 102 103 Business/Nongovernmental Data 104 Guides 105 Indices and Bibliographies 104 Directories 105 Business/Nongovernmental Statistical Data 105 Government Sources 105 Census Data 105 Other Government Sources 106 How to Conduct an Online Search for External Secondary Data Combining Internal and External Secondary Data 107 108 Geo-Demographic Coding 109 Geo-Visual Databases 109 Summary Illustration Using the Opening Vignette International Marketing Research 111 Marketing Research and Social Media 113 Ethics in Marketing Research 114 110 Summary 116 • Key Terms and Concepts 117 • Suggested Cases and Video Cases 117 • Live Research: Conducting a Marketing Research Project 117 • Acronym 117 • Review Questions 118 • Applied Problems 118 • Group Discussion 118 • Hewlett-Packard Running Case 118  ONLINE VIDEO CASE 4.1: The Mayo Clinic: Staying Healthy with Marketing Research 119 Chapter 5 Exploratory Research Design: Syndicated Sources of Secondary Data 120 Learning Objectives 120 A Casual Affair 121 Overview 122 CONTENTS The Nature of Syndicated Data 122 A Classification of Syndicated Services 124 Syndicated Data from Households/Consumers 125 Surveys 125 Periodic Surveys 125 Panel Surveys 126 Psychographics and Lifestyles 127 Advertising Evaluation 127 General Surveys 128 Uses of Surveys 128 Advantages and Disadvantages of Surveys 128 Purchase and Media Panels 129 Purchase Panels 130 Media Panels 130 Uses of Purchase and Media Panels 131 Advantages and Disadvantages of Purchase and Media Panels Electronic Scanner Services 132 Volume-Tracking Data 132 Scanner Panel Data 133 Scanner Panels with Cable TV 133 Uses of Scanner Data 134 Advantages and Disadvantages of Scanner Data 134 Syndicated Data from Institutions 131 134 Retailer and Wholesaler Audits 134 Uses of Audit Data 135 Advantages and Disadvantages of Audit Data 135 Industrial Firms/Organizations 136 Uses of Industry Services 136 Advantages and Disadvantages of Industry Services 136 Combining Information from a Variety of Sources: Single-Source Data Summary Illustration Using the Opening Vignette 137 International Marketing Research 138 Marketing Research and Social Media 139 Ethics in Marketing Research 141 137 Summary 142 • Key Terms and Concepts 143 • Suggested Cases and Video Cases 143 • Live Research: Conducting a Marketing Research Project 143 • Acronym 144 • Review Questions 144 • Applied Problems 144 • Group Discussion 144 • Hewlett-Packard Running Case 145  ONLINE VIDEO CASE 5.1: eGO: Reinventing Wheels 145 Chapter 6 Exploratory Research Design: Qualitative Research 146 Learning Objectives 146 Gillette Supports Equal Rights for Women: A Close Shave 147 Overview 148 Primary Data: Qualitative Versus Quantitative Research 149 A Classification of Qualitative Research Procedures 151 Focus-Group Interviews 152 Conducting a Focus Group 152 Designing the Environment 153 Recruiting and Selecting Focus-Group Participants 153 Selecting a Moderator 154 Preparing the Discussion Guide 154 Conducting the Group Interview 155 Preparing the Focus-Group Report 155 Advantages and Disadvantages of Focus Groups 157 Online Focus Groups 158 Advantages of Online Focus Groups 159 Disadvantages of Online Focus Groups 159 ix x CONTENTS Applications of Focus Groups Depth Interviews 161 160 Conducting Depth Interviews 161 Advantages of Depth Interviews 162 Disadvantages of Depth Interviews 162 Applications of Depth Interviews 163 Projective Techniques 164 Association Techniques 165 Completion Techniques 165 Construction Techniques 166 Expressive Techniques 167 Advantages of Projective Techniques 168 Disadvantages of Projective Techniques 168 Applications of Projective Techniques 168 Other Qualitative Research Techniques Analysis of Qualitative Data 170 Qualitative Research Software 169 170 Summary Illustration Using the Opening Vignette International Marketing Research 172 Marketing Research and Social Media 173 Focus Groups 174 Depth Interviews 174 Projective Techniques 175 Sentence Completion 175 Picture-Response Techniques Role Playing 175 Limitations 175 Ethics in Marketing Research 171 175 176 Summary 178 • Key Terms and Concepts 178 • Suggested Cases and Video Cases 179 • Live Research: Conducting a Marketing Research Project 179 • Acronyms 179 • Review Questions 180 • Applied Problems 180 • Group Discussion 180 • Hewlett-Packard Running Case 181  ONLINE VIDEO CASE 6.1: Nike: Associating Athletes, Performance, and the Brand 181 Chapter 7 Descriptive Research Design: Survey and Observation 182 Learning Objectives 182 Procter & Gamble’s New Marketing Platform: Everyday Low Pricing and Brand Extensions 183 Overview 184 Survey Methods 185 Advantages and Disadvantages of Survey Research 186 Survey Methods Classified by Mode of Administration Telephone Methods 187 Traditional Telephone Interviews 187 Computer-Assisted Telephone Interviewing 187 Advantages and Disadvantages of Telephone Interviewing 188 Personal Methods 190 Personal In-Home Interviews 190 Advantages and Disadvantages of In-Home Interviewing 190 Mall-Intercept Personal Interviews 191 Advantages and Disadvantages of Mall Intercepts 191 Computer-Assisted Personal Interviewing 192 Advantages and Disadvantages of CAPI 192 Mail Methods 193 186 CONTENTS Mail Interviews 193 Mail Panels 193 Advantages and Disadvantages of Mail Surveys 194 Electronic Methods 195 E-Mail Surveys 195 Internet Surveys 196 Advantages and Disadvantages of Electronic Methods 196 Electronic Surveys Software and Sites 196 Free/Low Cost Survey Sites 197 Some Other Survey Methods 197 Criteria for Selecting a Survey Method 198 Improving Survey Response Rates 199 Prior Notification 199 Incentives 199 Follow-Up 200 Other Facilitators of Response Observation Methods 200 201 Personal Observation 201 Mechanical Observation 202 A Comparison of Survey and Observation Methods 204 Relative Advantages of Observation 204 Relative Disadvantages of Observation 204 Ethnographic Research 204 Other Methods of Descriptive Research 205 Summary Illustration Using the Opening Vignette International Marketing Research 206 Marketing Research and Social Media 208 205 Surveys 208 Advantages of Social Media for Conducting Surveys 209 Disadvantages of Social Media for Conducting Surveys 209 Observation 210 Ethics in Marketing Research 211 Summary 212 • Key Terms and Concepts 213 • Suggested Cases and Video Cases 213 • Live Research: Conducting a Marketing Research Project 213 • Acronym 214 • Review Questions 214 • Applied Problems 214 • Group Discussion 214 • Hewlett-Packard Running Case 215  ONLINE VIDEO CASE 7.1: Starbucks: Staying Local While Going Global Through Marketing Research 215 Chapter 8 Causal Research Design: Experimentation Learning Objectives 216 Muzak: An Uncommon Remedy for the Common Cold Overview 218 The Concept of Causality 218 Conditions for Causality 220 Concomitant Variation 220 Time Order of Occurrence of Variables 220 Absence of Other Possible Causal Factors 220 Role of Evidence 221 What Is Experimentation? 221 Independent Variables 222 Test Units 222 Dependent Variables 222 Extraneous Variables 222 Random Assignment to Experimental and Control Groups Experimental Design 223 222 216 217 xi xii CONTENTS Definition of Symbols 223 Validity in Experimentation 224 Internal Validity 224 External Validity 224 Extraneous Variables 225 History 225 Maturation 225 Testing Effects 225 Instrumentation 225 Statistical Regression 225 Selection Bias 225 Mortality 226 Controlling Extraneous Variables Randomization 226 Matching 226 Statistical and Design Control 226 226 A Classification of Experimental Designs Pre-Experimental Designs 228 One-Shot Case Study 228 One-Group Pretest–Posttest Design Static Group Design 229 True Experimental Designs 226 228 229 Pretest–Posttest Control Group Design 230 Posttest-Only Control Group Design 230 Quasi-Experimental Designs Time Series Design Statistical Designs Factorial Design 231 231 232 232 Selecting an Experimental Design 233 Laboratory Versus Field Experiments 233 Limitations of Experimentation 234 Time 234 Cost 234 Administration 235 Application: Test Marketing 235 Summary Illustration Using the Opening Vignette International Marketing Research 236 Marketing Research and Social Media 237 Ethics in Marketing Research 238 235 Summary 240 • Key Terms and Concepts 241 • Suggested Cases and Video Cases 241 • Live Research: Conducting a Marketing Research Project 241 • Acronym 242 • Review Questions 242 • Applied Problems 242 • Group Discussion 243 • Hewlett-Packard Running Case 243  ONLINE VIDEO CASE 8.1: AFLAC: Marketing Research Quacks a Duck 243 Chapter 9 Measurement and Scaling: Fundamentals and Comparative Scaling 244 Learning Objectives 244 Scaling the Olympics 245 Overview 246 Measurement and Scaling 246 Scale Characteristics and Levels of Measurement Description 248 Order 248 247 CONTENTS Distance 248 Origin 248 Primary Scales 249 Nominal Scale 249 Ordinal Scale 252 Interval Scale 254 Ratio Scale 254 Selecting a Level of Measurement 255 Nominal Scale 255 Ordinal Scale 255 Interval Scale 256 Ratio Scale 256 A Classification of Scaling Techniques 256 Comparative Scaling Techniques 257 Paired Comparison Scaling 257 Rank Order Scaling 259 Constant Sum Scaling 260 Relationship of Measurement and Scaling to the Marketing Research Process 261 Summary Illustration Using the Opening Vignette 262 International Marketing Research 264 Marketing Research and Social Media 264 Ethics in Marketing Research 265 Summary 267 • Key Terms and Concepts 267 • Suggested Cases and Video Cases 267 • Live Research: Conducting a Marketing Research Project 268 • Acronyms 268 • Review Questions 268 • Applied Problems 268 • Group Discussion 269 • Hewlett-Packard Running Case 269  ONLINE VIDEO CASE 9.1: Procter & Gamble: Using Marketing Research to Build Brands 269 Chapter 10 Measurement and Scaling: Noncomparative Scaling Techniques 270 Learning Objectives 270 Noncomparative Scaling Techniques Result in an Incomparable Hit Movie 271 Overview 272 Noncomparative Scaling Techniques 272 Continuous Rating Scale 274 Itemized Rating Scales 275 Likert Scale 276 Semantic Differential Scale 277 Stapel Scale 278 Noncomparative Itemized Rating-Scale Decisions Number of Scale Categories 280 Balanced Versus Unbalanced Scale 280 Odd or Even Numbers of Categories 281 Forced or Nonforced Choice 281 Nature and Degree of Verbal Description 281 Physical Form or Configuration 282 Multi-Item Scales 283 Scale Evaluation 284 Reliability 284 Test–Retest Reliability 285 Alternative-Forms Reliability 285 280 xiii xiv CONTENTS Internal-Consistency Reliability 285 Validity 286 Content Validity 286 Criterion Validity 286 Construct Validity 286 Relationship Between Reliability and Validity 287 Choosing a Scaling Technique 287 Summary Illustration Using the Opening Vignette International Marketing Research 288 Marketing Research and Social Media 290 Ethics in Marketing Research 290 288 Summary 292 • Key Terms and Concepts 293 • Suggested Cases and Video Cases 293 • Live Research: Conducting a Marketing Research Project 293 • Acronym 294 • Review Questions 294 • Applied Problems 294 • Group Discussion 295 • Hewlett-Packard Running Case 295  ONLINE VIDEO CASE 10.1: Nivea: Marketing Research Leads to Consistency in Marketing 295 Chapter 11 Questionnaire and Form Design 296 Learning Objectives 296 World Vision Imparts Donors a Vision for Caring Overview 298 Importance of the Questionnaire 298 Questionnaire Definition 297 300 Questionnaire Design Process 300 Specify the Information Needed 301 Specify the Type of Interviewing Method 302 Determine the Content of Individual Questions Is the Question Necessary? 303 Are Several Questions Needed Instead of One? 303 303 Design the Question to Overcome the Respondent’s Inability to Answer 304 Is the Respondent Informed? 304 Can the Respondent Remember? 305 Can the Respondent Articulate? 305 Design the Questionnaire to Overcome the Respondent’s Unwillingness to Answer 306 Effort Required of the Respondent Legitimate Purpose 306 Sensitive Information 306 306 Decide on the Question Structure 307 Unstructured Questions 307 Structured Questions 309 Multiple-Choice Questions 309 Dichotomous Questions 310 Scales 310 Determine the Question Wording Define the Issue 311 Use Simple Words 312 Use Unambiguous Words 312 Avoid Leading or Biasing Questions Balance Dual Statements 314 311 313 Arrange the Questions in Proper Order Opening Questions 314 Type of Information 315 Difficult Questions 315 314 CONTENTS Effect on Subsequent Questions Logical Order 316 315 Choose the Form and Layout 317 Reproduce the Questionnaire 318 Pretest the Questionnaire 318 Observational Forms 320 Software for Questionnaire Design 321 Summary Illustration Using the Opening Vignette International Marketing Research 322 Marketing Research and Social Media 323 Ethics in Marketing Research 324 321 Summary 325 • Key Terms and Concepts 326 • Suggested Cases and Video Cases 326 • Live Research: Conducting a Marketing Research Project 326 • Acronyms 327 • Review Questions 327 • Applied Problems 328 • Group Discussion 329 • Hewlett-Packard Running Case 329  ONLINE VIDEO CASE 11.1: Dunkin’ Donuts: Dunking the Competition 329 Appendix 11A Global Airline Performance Questionnaire 330 Chapter 12 Sampling: Design and Procedures 332 Learning Objectives 332 Old Spice Red Zone Invisible Solid Spices Growth in the Deodorant Market 333 Overview 334 Sample or Census 334 The Sampling Design Process 337 Define the Target Population 337 Determine the Sampling Frame 337 Select a Sampling Technique 339 Determine the Sample Size 339 Execute the Sampling Process 340 A Classification of Sampling Techniques 341 Nonprobability Sampling Techniques 341 Convenience Sampling 341 Judgmental Sampling 343 Quota Sampling 343 Snowball Sampling 344 Probability Sampling Techniques 345 Simple Random Sampling 346 Systematic Sampling 347 Stratified Sampling 348 Cluster Sampling 349 Choosing Nonprobability Versus Probability Sampling Internet Sampling 353 351 Issues in Online Sampling 353 Online Sampling Techniques 354 Summary Illustration Using the Opening Vignette International Marketing Research 356 Marketing Research and Social Media 358 Ethics in Marketing Research 358 355 Summary 360 • Key Terms and Concepts 360 • Suggested Cases and Video Cases 361 • Live Research: Conducting a Marketing Research Project 361 • Acronym 361 • Review Questions 361 • Applied Problems 362 • Group Discussion 362 • Hewlett-Packard Running Case 363  ONLINE VIDEO CASE 12.1: Motorola: Projecting the Moto Lifestyle 363 xv xvi CONTENTS Chapter 13 Sampling: Final and Initial Sample-Size Determination 364 Learning Objectives 364 Sizing the Sample-Size Problem 365 Overview 366 Definitions and Symbols 367 The Sampling Distribution 368 Statistical Approach to Determining Sample Size The Confidence Interval Approach 370 369 Sample-Size Determination: Means 371 Sample-Size Determination: Proportions 375 Adjusting the Statistically Determined Sample Size Incidence Rate 377 Completion Rate 378 Combined Adjustment 378 Online Sampling Adjustments 377 378 Summary Illustration Using the Opening Vignette International Marketing Research 380 Marketing Research and Social Media 380 Ethics in Marketing Research 381 379 Summary 382 • Key Terms and Concepts 383 • Suggested Cases and Video Cases 383 • Live Research: Conducting a Marketing Research Project 383 • Acronym 383 • Review Questions 384 • Applied Problems 384 • Group Discussion 384 • Hewlett-Packard Running Case 385  ONLINE VIDEO CASE 13.1: Subaru: “Mr. Survey” Monitors Customer Satisfaction 385 Appendix 13A: The Normal Distribution 386 PART 3 Data Collection, Analysis, and Reporting Chapter 14 Fieldwork: Data Collection 389 390 Learning Objectives 390 Gallup’s Galloping Fieldwork 391 Overview 392 The Nature of Fieldwork 392 Fieldwork/Data Collection Process 393 Selection of Field-Workers 394 Training of Field-Workers 394 Supervision of Field-Workers 397 Validation of Fieldwork 398 Evaluation of Field-Workers 398 Using the Internet in Fieldwork 399 Summary Illustration Using the Opening Vignette 400 International Marketing Research 401 Marketing Research and Social Media 403 Ethics in Marketing Research 403 Summary 405 • Key Terms and Concepts 405 • Suggested Cases and Video Cases 405 • Live Research: Conducting a Marketing Research Project 405 • Acronyms 406 • Review Questions 406 • Applied Problems 406 • Group Discussion 406 • Hewlett-Packard Running Case 407  ONLINE VIDEO CASE 14.1: Intel: Building Blocks Inside Out 407 CONTENTS Chapter 15 Data Preparation and Analysis Strategy Learning Objectives 408 Database Awakens a Sleeping Giant Overview 410 The Data Preparation Process 411 Questionnaire Checking 411 Editing 412 Coding 413 408 409 Coding Structured Questions 413 Coding Open-Ended Question 414 Coding of Open-Ended Question Responses Developing a Data File 415 415 Transcribing 418 Data Cleaning 419 Consistency Checks 419 Treatment of Missing Responses 420 Variable Respecification and Recoding 420 Selecting a Data-Analysis Strategy 421 Summary Illustration Using the Opening Vignette International Marketing Research 422 Marketing Research and Social Media 424 422 Data Collection 424 Text Coding and Categorization 424 Text-Mining and Visualization 424 Ethics in Marketing Research Software Applications 427 425 SPSS and Excel Computerized Demonstration Movies SPSS and Excel Screen Captures with Notes 427 SPSS Windows 427 428 Detailed Steps: Overview 428 Detailed Steps: Variable Respecification 428 Detailed Steps: Variable Recoding 429 Excel 431 Detailed Steps: Overview 431 Detailed Steps: Variable Respecification 431 Detailed Steps: Variable Recoding 431 Summary 432 • Key Terms and Concepts 432 • Suggested Cases and Video Cases 433 • Live Research: Conducting a Marketing Research Project 433 • Acronym 433 • Review Questions 433 • Applied Problems 434 • Group Discussion 434 • Hewlett-Packard Running Case 434  ONLINE VIDEO CASE 15.1: Marriott: Marketing Research Leads to Expanded Offerings 435 Chapter 16 Data Analysis: Frequency Distribution, Hypothesis Testing, and Cross-Tabulation 436 Learning Objectives 436 Consumers Consume Coupons 437 Overview 438 Frequency Distribution 439 Statistics Associated with Frequency Distribution Measures of Location 443 Mean 443 Mode 443 Median 443 443 xvii xviii CONTENTS Measures of Variability 445 Range 445 Variance and Standard Deviation 445 Introduction to Hypothesis Testing 446 A General Procedure for Hypothesis Testing 446 Step 1: Formulating the Hypothesis 446 Step 2: Selecting an Appropriate Test 448 Step 3: Choosing Level of Significance 448 Type-I Error 448 Type-II Error 448 Power of a Test 448 Step 4: Data Collection 448 Step 5: Determining the Probability (Critical Value) 449 Steps 6 and 7: Comparing the Probability (Critical Value) and Making the Decision Step 8: Marketing Research Conclusion 450 Cross-Tabulation 451 Statistics Associated with Cross-Tabulation Chi-Square 454 Phi Coefficient 456 Contingency Coefficient Cramer’s V 456 454 456 General Comments on Cross-Tabulation 457 Cross-Tabulation in Practice 457 Summary Illustration Using the Opening Vignette Marketing Research and Social Media 458 Software Applications 462 SPSS and Excel Computerized Demonstration Movies SPSS and Excel Screen Captures with Notes 463 SPSS Windows 449 458 463 464 Detailed Steps: Overview 464 Detailed Steps: Frequencies 464 Detailed Steps: Cross-Tabulations 464 Excel 466 Detailed Steps: Overview 466 Detailed Steps: Frequencies 466 Detailed Steps: Cross-Tabulations 466 Summary 467 • Key Terms and Concepts 467 • Suggested Cases and Video Cases 468 • Live Research: Conducting a Marketing Research Project 468 • Acronyms 468 • Review Questions 469 • Applied Problems 469 • Group Discussion 471 • Hewlett-Packard Running Case 471  ONLINE VIDEO CASE 16.1: Marriott: Marketing Research Leads to Expanded Offerings 471 Chapter 17 Data Analysis: Hypothesis Testing Related to Differences 472 Learning Objectives 472 Loyalty Versus Promiscuity and Convenience Versus Price Overview 474 Hypothesis Testing Related to Differences 474 The t Distribution 475 Hypothesis Testing Based on the t Statistic One-Sample t-Test 477 Test for a Single Mean 477 Test for a Single Proportion 479 476 473 CONTENTS Two-Sample t-Test 480 Two Independent Samples 480 Means 480 Proportions 488 Paired Samples 485 Means 486 Proportions 488 Testing Hypotheses for More Than Two Samples 488 Means for More Than Two Samples 488 Identify the Dependent and Independent Variables 489 Decompose the Total Variation 489 Measure the Effects 490 Test the Significance 490 Interpret the Results 491 Illustrative Applications of One-Way Analysis of Variance 491 Proportions for More Than Two Samples 492 Summary Illustration Using the Opening Vignette Marketing Research and Social Media 494 Software Applications 498 SPSS and Excel Computerized Demonstration Movies SPSS and Excel Screen Captures with Notes 499 SPSS Windows 499 499 Detailed Steps: Overview 499 Detailed Steps: One-Sample t-Test 500 Detailed Steps: Two-Independent-Samples t-Test Detailed Steps: Paired-Samples t-Test 501 Detailed Steps: One-Way ANOVA 501 Excel 494 500 502 Detailed Steps: Overview 502 Detailed Steps: One-Sample t-Test 503 Detailed Steps: Two-Independent-Samples t-Test Detailed Steps: Paired-Samples t-Test 504 Detailed Steps: One-Way ANOVA 504 503 Summary 505 • Key Terms and Concepts 505 • Suggested Cases and Video Cases 505 • Live Research: Conducting a Marketing Research Project 506 • Acronym 506 • Review Questions 506 • Applied Problems 506 • Group Discussion 508 • Hewlett-Packard Running Case 508  ONLINE VIDEO CASE 17.1: Marriott: Marketing Research Leads to Expanded Offerings 509 Chapter 18 Data Analysis: Correlation and Regression Learning Objectives 510 Regression Models Model the Marketing Strategy of Adidas 511 Overview 512 Product Moment Correlation 513 Regression Analysis 519 Bivariate Regression 519 Conducting Bivariate Regression Analysis 519 Scatter Diagram 519 Bivariate Regression Model 521 Estimation of Parameters 521 Standardized Regression Coefficient 522 Significance Testing 524 510 xix xx CONTENTS Strength and Significance of Association Prediction Accuracy 527 Assumptions 527 525 Multiple Regression 528 Conducting Multiple Regression Analysis 529 Partial Regression Coefficients 529 Strength of Association 530 Significance Testing 531 Examination of Residuals 532 Summary Illustration Using the Opening Vignette Marketing Research and Social Media 535 Software Applications 537 SPSS and Excel Computerized Demonstration Movies SPSS and Excel Screen Captures with Notes 538 SPSS Windows 534 538 538 Detailed Steps: Overview 539 Detailed Steps: Correlation 539 Detailed Steps: Bivariate and Multiple Regression 539 Excel 540 Detailed Steps: Overview 540 Detailed Steps: Correlation 540 Detailed Steps: Bivariate and Multiple Regression 541 Summary 541 • Key Terms and Concepts 542 • Suggested Cases and Video Cases 542 • Live Research: Conducting a Marketing Research Project 542 • Acronym 542 • Review Questions 543 • Applied Problems 543 • Group Discussion 545 • Hewlett-Packard Running Case 545  ONLINE VIDEO CASE 18.1: Marriott: Marketing Research Leads to Expanded Offerings 545 Chapter 19 Report Preparation and Presentation 546 Learning Objectives 546 Research Reports Make United’s Friendly Skies Even More Friendly Overview 548 Importance of the Report and Presentation 548 The Report Preparation and Presentation Process 549 Report Preparation 550 Report Format 551 Title Page 551 Letter of Transmittal 551 Letter of Authorization 552 Table of Contents 552 Executive Summary 552 Problem Definition 552 Approach to the Problem 552 Research Design 552 Data Analysis 552 Results 552 Limitations and Caveats 552 Conclusions and Recommendations 553 Report Writing 553 Guidelines for Tables 554 Title and Number 554 Arrangement of Data Items 554 Basis of Measurement 554 Leaders, Rulings, Spaces 554 Explanations and Comments: Headings, Stubs, and Footnotes Sources of the Data 554 554 547 CONTENTS Guidelines for Graphs 555 Geographic and Other Maps 555 Pie Charts 555 Line Charts 555 Pictographs 556 Histograms and Bar Charts 556 Schematic Figures and Flowcharts 556 Oral Presentation and Dissemination Research Follow-Up 559 Assisting the Client 559 Evaluating the Research Project 558 559 Technology and Reporting 560 Summary Illustration Using the Opening Vignette International Marketing Research 561 Marketing Research and Social Media 562 Ethics in Marketing Research 564 Software Applications 565 560 Summary 565 • Key Terms and Concepts 566 • Suggested Cases and Video Cases 566 • Live Research: Conducting a Marketing Research Project 566 • Acronyms 567 • Review Questions 567 • Applied Problems 568 • Group Discussion 568 • Hewlett-Packard Running Case 568  ONLINE VIDEO CASE 19.1: Marriott: Marketing Research Leads to Expanded Offerings 569 RUNNING CASE WITH REAL DATA 570 Case 1.1 Hewlett-Packard (HP): Using Marketing Research to Gain a Competitive Edge 570 COMPREHENSIVE CRITICAL THINKING CASES 575 Case 2.1 American Idol: A Big Hit for Marketing Research? 575 Case 2.2 Baskin-Robbins: Can It Bask in the Good ‘Ole Days? 577 Case 2.3 Kid Stuff?: Determining the Best Positioning Strategy for Akron Children’s Hospital 579 COMPREHENSIVE CASES WITH REAL DATA 581 Case 3.1 Bank of America: Leading the American Way 581 Case 3.2 McDonald’s: The World’s Number One Fast Food Company! Case 3.3 Boeing: Taking Flight 592 586 COMPREHENSIVE BRIEF HARVARD BUSINESS SCHOOL CASES 597 Case 4.1 TruEarth Healthy Foods: Market Research for a New Product Introduction (4065) 597 Case 4.2 The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues (2510) 599 Case 4.3 Metabical: Positioning and Communications Strategy for a New Weight-Loss Drug (4240) 601 Case 4.4 Saxonville Sausage Company (2085) 603 ONLINE VIDEO CASES 605 Appendix of Statistical Tables Endnotes 618 Index 629 606 xxi Foreword It is a pleasure to write this foreword. Dr. Naresh K. Malhotra is a very well-known and highly successful author, researcher, and teacher. Basic Marketing Research: Integration of Social Media, Fourth Edition, is yet another outstanding textbook that he has written. Basic Marketing Research has been a very successful book with several editions and translations. His other book, Marketing Research: An Applied Orientation, now in its sixth edition, has also been translated into several languages including Chinese, Spanish, Portuguese, French, Russian, Hungarian, Indonesian, and Japanese. It has been published in several English editions including North American, International, European, Filipino, Indian, and Australian editions. Basic Marketing Research: Integration of Social Media, Fourth Edition, carries Dr. Malhotra’s expertise in marketing research and pedagogical skills even further. With its focus on contemporary issues like international marketing research, social media and new technologies, and ethics, the book effectively captures the current environment. The application of Web-based marketing research is integrated in a pervasive way throughout the book, which reflects the state-of-the-art orientation of the material presented in this text. Particularly noteworthy is the pervasive and innovative emphasis on social media, both as a domain in which to conduct marketing research and as an application of marketing research. This is just one of the ways in which the fourth edition is leading the field of marketing research. This book is rich in tangible and illustrative examples that bring the student closer to the business world and everyday realities of the marketplace. The opening vignettes, interwoven throughout the respective chapters, further illustrate the marketing research concepts in real-life settings. The Be an MR! and Be a DM!, What Would You Do?, and Experiential Learning exercises provide a rich and hands-on experience. The Research in Action examples, case studies, and online video case studies are great learning tools and further reinforce the highly applied and managerial orientation of the text. Particularly noteworthy are the running case, comprehensive critical thinking cases, and several other cases that include questionnaires and real-life data. New to this edition are brief comprehensive Harvard Business School cases that are appropriate for undergraduate students. There are several diagrams, figures, and concept maps in each chapter that truly enhance learning. The lessons are conceptually sound, technically accurate, and communicate the basic research concepts with simplicity and clarity. The book is strong in qualitative concepts and imparts the necessary quantitative knowledge and skills with the use of SPSS, Excel, and other statistical software. The SPSS and Excel demonstration movies, screen captures, step-by-step instructions, and study guide and technology manual provide the greatest resources available anywhere for students to learn these programs. Basic Marketing Research, Fourth Edition, provides a strong foundation that we believe every student should have in order to be successful. This book is unsurpassed as a basis for undergraduate students to become researchers and intelligent users of marketing research. Dr. Chuck Chakrapani Editor, Marketing Research President, Leger Marketing (Toronto) Distinguished Visiting Professor, Ryerson University Ted Rogers School of Management Toronto, Canada xxii Preface The Fourth Edition—Helping Students Learn Marketing Research Marketing research is an integral part of marketing. The task of marketing research is to assess the information needs and provide management with relevant, accurate, reliable, valid, and current information to aid marketing decision making (see Figure 1.5). Companies use marketing research to stay competitive and to avoid high costs associated with making poor decisions based on unsound information. If you are a marketing major, understanding the various customer groups (consumers, suppliers, channel partners, employees, etc.), competitors, and the environment is the foundation for developing effective marketing programs. Such an understanding is gained by conducting marketing research. This course will help you succeed in your marketing career. If you are not a marketing major, consider all of the marketing research around you in the form of information available from the Internet, newspapers, magazines, government, commercial firms, and other sources. Any company or organization you work for will be involved in making use of such information for making decisions. It is important to understand how such information is generated and how it should be evaluated to assess its relevance, accuracy, and usefulness. The research process that we describe in this book is very general and can be applied to conduct research in any area of management, not just marketing. Only the context in which we illustrate the research is marketing. Therefore, this course and this book will help you to be more effective in your job, regardless of the specific area in which you work. This knowledge also will provide you with a better understanding of those involved in marketing in the organization where you will work, and it will equip you with better information to function as a consumer. The fourth edition integrates the use of social media for conducting marketing research in a pervasive way. Since research is best learned by doing it, this book emphasizes a handson, do-it-yourself approach. We created Basic Marketing Research: Integration of Social Media, Fourth Edition, in part, to help students understand and learn the importance of sound information to make marketing decisions and to see the interaction between marketing research and marketing management decisions. We provide you with several opportunities to experience these interactions through pedagogical tools such as the opening vignette, Be an MR!, Be a DM!; Experiential Learning; What Would You Do?; Research in Action; cases; Brief Harvard Business School cases; online video cases; extensive review questions; applied problems; and group discussions. The data-analysis chapters involve a tight integration of SPSS and Excel, illustrating each step in running these programs in detail. We provide four distinct ways in which you can learn these programs on your own. SPSS and Excel files are provided for all data sets; outputs and screen captures are posted on the Web site. This book provides the most extensive help available to marketing research students in learning SPSS and Excel. We prepared this textbook and all of the additional materials in a way that will best help you to understand the fundamental principles of marketing research and their applications in real-life marketing situations. Students need opportunities to apply concepts to real-life situations. This helps them clearly understand and retain the ideas. As a result, we have prepared a variety of end-of-chapter materials that are designed to help you practice using the concepts. These materials include review questions, applied problems, group discussion questions, cases, Brief Harvard Business School cases, and online video cases. The data-analysis chapters include several reallife data sets where the files have been provided in both SPSS and Excel. New to the Fourth Edition While retaining the desirable features of the previous editions, the fourth edition contains major revisions. Several significant changes have been made. These changes were identified by xxiii xxiv PREFACE conducting surveys of professors (users and nonusers) and students, and by obtaining critical reviews and detailed evaluations. Major changes include the following: Social Media 1. Integration of Social Media. The fourth edition features an innovative and pervasive integration of social media. There is a separate section titled “Marketing Research and Social Media” in every chapter, including the data-analysis chapters. In addition, the use of social media is discussed in several other sections of the chapter, including end-of-chapter questions, the Hewlett-Packard running case, and all the online video cases. The major occurrences of social media are highlighted with an icon. We focus on social media both as an application of marketing research and as a domain in which to conduct marketing research. Although we do not expect social media research to replace traditional marketing research, we predict that social media will become an increasingly important domain that complements traditional marketing research. 2. Comprehensive Brief Harvard Business School Cases. Four Brief Harvard Business School cases have been added. All these cases are brief and suitable for use at the undergraduate level. All the cases have rich marketing research content and show the interaction between marketing research and marketing management decisions in real-life contexts. All have been written recently. These cases are comprehensive in that marketing research questions have been posed for every chapter, including the data-analysis chapters. These cases are: Case 4.1 TruEarth Healthy Foods: Market Research for a New Product Introduction (4065) Case 4.2 The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues (2510) Case 4.3 Metabical: Positioning and Communications Strategy for a New Weight-Loss Drug (4240) Case 4.4 Saxonville Sausage Company (2085) 3. Updated SPSS and Excel Computerized Demonstration Movies and Screen Captures with Notes. The fourth edition has computerized demonstration movies and screen captures with notes for IBM SPSS 19 and for Excel 2010. The steps in the book for running every statistical procedure have also been updated to reflect these latest versions. The computerized demonstration movies and screen captures with notes for the earlier versions of SPSS and Excel are also posted on the instructor’s as well as students’ Web site for the book. 4. Chapter Modifications. Each chapter has been modified to present new ideas, update existing materials, or, in some instances, to further clarify concepts. These changes are extensive in most of the chapters. For example, in Chapter 1, a new figure (Figure 1.6) has been added to amplify the decision to conduct marketing research, and the structure of the marketing research industry has been revised to reflect recent changes (revised Figure 1.7 and Table 1.1). A new section titled “Marketing Research and Competitive Intelligence” has been added. Such changes have been made in all the chapters. 5. New and Updated Examples. Several new examples have been added, some old ones deleted, and the remaining examples have been updated as appropriate. Thus, the fourth edition reflects the current marketing and research environment. 6. New and Updated Cases and Online Video Cases. The Hewlett-Packard running case, the Comprehensive Critical Thinking Cases, Comprehensive Cases with Real Data, and the Online Video Cases have all been updated to reflect the current environment. Online Video Cases 15.1, 16.1, 17.1, and 18.1 have been added for the data analysis chapters. Integrated Learning Package We have created several devices that are designed to help you learn the materials in this text. If you take advantage of them, you might find this textbook interesting and even fun. Even those who are not marketing majors may discover that marketing research and all of the activities involved are enjoyable subjects to talk about and study.  Lead-In Vignettes. Each chapter begins with a vignette that is related to the topic being presented. The majority of the vignettes revolve around success stories about companies PREFACE          and products most will recognize, such as Reebok, Gillette, P&G, Olympics, Sears, Spiegel, and United Airlines. The opening vignette is used as a running example throughout the chapter. After discussing the main concepts in each chapter, we refer to the opening vignette to summarize and illustrate the concepts in a section titled “Summary Illustration Using the Opening Vignette.” Integration of Social Media. The fourth edition features an innovative and pervasive integration of social media. There is a separate section titled “Marketing Research and Social Media” in each chapter, including the data-analysis chapters. In addition, the use of social media is discussed in several other sections of the chapter, including end-of-chapter questions, the Hewlett-Packard running case, and all the online video cases. The major occurrences of social media are highlighted with an icon. We focus on social media both as an application of marketing research and as a domain in which to conduct marketing research. Although we do not expect social media research to replace traditional marketing research, we predict that social media will become an increasingly important domain that complements traditional marketing research. Stimulating Critical Thinking. The principles for critical thinking, including Socratic questioning, critical reading and writing, higher order thinking, and assessment, have been embodied in the three comprehensive critical thinking cases, end-of-chapter review questions, applied problems, and group discussions. These materials have been designed based on the guidelines provided by the Foundation for Critical Thinking. A Hands-On Orientation. Be an MR!, Be a DM!; Experiential Learning; and What Would You Do? require students to actually do some research and make marketing research and marketing management decisions through a hands-on orientation. This hands-on orientation is further reinforced by cases, online video cases, review questions, applied problems, and group discussions. Interrelationships Among Concepts. Substantial research shows that concept maps aid in student learning. One or more concept maps have been given in each chapter to illustrate the interrelationships among concepts. These maps have been developed based on the principles and tools provided by the Institute for Human and Machine Cognition. These maps will help you acquire a better understanding of the various concepts. Please be sure to review them! Real-Life Examples and Illustrations. Several real-life examples are presented in each chapter and titled “Research in Action.” These examples describe in detail the kind of marketing research conducted to address specific managerial problems and the decisions that were based on the findings. Where appropriate, the sources cited have been supplemented by additional marketing research information to enhance the usefulness of these examples. In addition, there are several other examples and illustrations that are blended in the text. Comprehensive Cases with Real Data. Each chapter of the book contains the Hewlett-Packard running case (Case 1.1) that features an actual questionnaire and real-life data. The questions for HP appear at the end of each chapter while the case appears toward the end of the book. There are additional comprehensive cases with actual questionnaires and real-life data (Case 3.1 Bank of America, Case 3.2 McDonald’s, and Case 3.3 Boeing). Comprehensive Brief Harvard Business School Cases. Four Brief Harvard Business School cases have been added to the fourth edition. All these cases are brief and suitable for use at the undergraduate level. All the cases have rich marketing research content and show the interaction between marketing research and marketing management decisions in real-life contexts. All have been written recently. These cases are comprehensive in that marketing research questions have been posed for every chapter, including the data-analysis chapters. These cases have been listed in the previous section. Online Video Cases with Streaming Video. Video cases referenced at the end of each chapter are located on the text’s companion Web site (www.pearsonhighered.com/malhotra). These online cases include the actual written cases and questions as well as streaming video for students to see the application of chapter concepts to real business situations. Extensive and Pervasive Internet Coverage. The Internet has become part and parcel of our lives. The text discusses how the Internet can be integrated in each step of the marketing research process and how it can be used to implement the concepts discussed in each chapter. The coverage of the Internet is so extensive and pervasive that it has not been Social Media xxv xxvi PREFACE          singled out. Internet applications are ubiquitous. For example, all the Be an MR! exercises require you to research the Internet, including social media. International Focus. Many of you have traveled to other countries. Most of you interact with students from other countries. Global, international business is all around. This makes understanding international marketing research issues important. Every chapter, except the data-analysis Chapters 16, 17, and 18, has a section titled “International Marketing Research.” This section discusses how the concepts of that chapter should be implemented while conducting marketing research in an international setting. Note that data analysis in international marketing research is discussed in Chapter 15. Ethics Focus. Ethical issues are pervasive in marketing research. Every chapter, except the data-analysis Chapters 16, 17, and 18, has a section titled “Ethics in Marketing Research.” This section presents the salient ethical issues involved while implementing the concepts of that chapter. These ethical issues are discussed from the perspectives of the four stakeholders: the client, the marketing research firm, respondents, and the general public. Note that the ethical issues pertinent to data analysis are discussed in Chapter 15. Contemporary Focus. A contemporary focus has been achieved by illustrating the applications of marketing research to current topics such as customer value, satisfaction, loyalty, customer equity, brand equity and management, innovation, entrepreneurship, return on marketing, relationship marketing, sustainability, and socially responsible marketing throughout the text. These examples cover a diversity of products and companies that are of interest to undergraduate students. Opening Diagrams. Each chapter, except the first, opens with a diagram that gives the focus of that chapter, its relationship to the previous chapter(s), and its relationship to the marketing research process. This diagram is an excellent way to see the linkages between chapters and to trace the entire marketing research process throughout the book. We also include a diagram that provides an overview of the chapter, showing the major topics and linking them to figures and tables. There is an abundance of diagrams in each chapter. SPSS, Excel, SAS, and Minitab. Data-analysis procedures are illustrated with respect to SPSS, Excel, SAS, and Minitab, along with other popular computer programs. However, the emphasis is on SPSS and Excel. Detailed, step-by-step instructions are given for running the various statistical procedures using SPSS and Excel. SPSS and Excel files are provided for all data sets, and outputs are provided for the analyses contained in the chapters. SPSS and EXCEL Computerized Demonstration Movies. We have created computerized demonstration movies illustrating step-by-step instructions for each data-analysis procedure—SPSS and EXCEL—available for downloading from the Web site for this book (see Exhibit 15.2). You can view these movies to promote self-learning. SPSS and EXCEL Screen Captures. In addition to the demonstration movies, we have also provided screen captures with notes illustrating step-by-step instructions for running each data-analysis procedure presented in the book using SPSS as well as EXCEL. These are on the text Web site for downloading. Conducting a Live Marketing Research Project. Toward the end of each chapter is a section titled “Live Research: Conducting a Marketing Research Project.” These sections show how to implement one or more live marketing research projects in the course. The approach is flexible and can handle a variety of organizations and formats. The entire class could be working on the same project with each team working on all aspects of the project or each team could be assigned a specific responsibility (e.g., a specific component of the problem or a specific aspect of the project like collection and analysis of secondary data). Alternatively, the class could be working on multiple projects with specific teams assigned to a specific project. If your course includes a class project, your instructor will choose the approach that is best for you! Acronyms. Each chapter contains one or more helpful acronyms that summarize the salient concepts. Acronyms are the most popular mnemonic technique used by undergraduate students. Theoretical and empirical evidence supporting the effectiveness of mnemonic techniques and their usefulness as a pedagogical tool has been discussed in a paper I published in the Journal of the Academy of Marketing Science (Spring 1991): 141–150. PREFACE You Can Learn SPSS and Excel on Your Own! Many students complain that they spend a substantial amount of time learning SPSS or Excel. We have addressed this situation. The fourth edition provides four ways in which you can learn SPSS and Excel on your own. Help for running the SPSS and Excel programs used in each chapter is provided in four ways: (1) detailed step-by-step instructions are given in the chapter; (2) you can download (from the Web site for this book) computerized demonstration movies illustrating these step-by-step instructions; (3) you can download screen captures with notes illustrating these step-by-step instructions; and (4) extensive instructions for SPSS and Excel are given in the study guide, a supplement that accompanies this book. Thus, we provide the most extensive help available anywhere to learn SPSS and Excel! Tips on How to Use This Textbook We want to offer you a few tips on how to use this book and suggestions on how to master the material presented.       Read the Chapter. Start by reading the chapter. Be sure to look at the learning objectives and opening diagrams, and read the overview so you will know what is in the chapter. Often this is skipped because students don’t believe it is important. Review the Key Terms. It is important read through these new terms to be sure you understand each one. Key terms are often targets of quiz and exam questions. Answer the Review Questions. Go through the review questions and see if you can answer them without looking in the chapter. When you are finished, go back and check to see if you got each one correct. For the ones you couldn’t answer, go back and locate the correct information in the chapter. Do the Applied Problems. Pick several problems you believe would be interesting. Spend some time thinking about the question and the concepts being explored. You can make these problems fun to do as you analyze the concepts at a deeper level. Have Some Fun with Critical Thinking. Go to one of the critical thinking cases (2.1 American Idol, 2.2 Baskin-Robbins, and 2.3 Akron Children’s Hospital). These cases are comprehensive and contain questions on all the chapters except the data-analysis chapters. Based on the knowledge you have learned in the chapter and the case information, answer the critical thinking questions as well as the technical questions. Doing these cases will help you understand and apply the concepts in real-life situations from a critical thinking perspective. Experience Harvard Business School. Pick one of the four brief Harvard Business School cases that interest you the most. Answer the marketing research questions that have been posed for each chapter, including the data-analysis chapters. These will help you apply the marketing research concepts to real-life situations and also give you a taste of how they teach at Harvard. Suggestions for Preparing for Exams If you have followed the tips provided in the previous section, you will almost be ready for the exam. A brief review of the key terms and a scan of the chapter will be all that you need. But, if you have not followed all of the tips, here is a sequence of activities you can follow that will aid in learning the material.        Read the chapter. Review the concept maps. Review the key terms. Answer the review questions. Read the chapter overview. Read the chapter summary. Go through the chapter and locate all of the bold and italic words. Read the context of each term to make sure you understand that term. xxvii xxviii PREFACE    Start at the beginning of the chapter and read the topic sentence of each paragraph. These sentences should provide a good summary of that paragraph. Re-read the chapter summary. Review the key terms. Congratulations! You are now ready for the exam. Relax—you will do well. Learning Aids for Students Companion Web site with Online Video Cases (0132544512) Housed at www.pearsonhighered.com/malhotra, the companion Web site offers Naresh K. Malhotra’s valuable additional resources for Basic Marketing Research, Fourth Edition, for instructors as well as students. This site is not password protected so that these materials can be accessed freely. Online Video Cases referenced at the end of each chapter are located on this companion Web site and include the case, questions, and the accompanying streaming video. This site also offers downloads of data files and additional material for use in conjunction with the textbook. Specifically, the Companion Web site contains the following materials:          Data for Cases 1.1 Hewlett-Packard, 3.1 Bank of America, 3.2 McDonald’s, and 3.3 Boeing, given in the book (SPSS and Excel). Online video cases for each chapter, including streaming video and questions to help you apply chapter learning objectives. Files for all the Experiential Learning exercises. Data files for all the Applied Problems (SPSS and Excel). Data file for the data set(s) used in each data-analysis chapter (SPSS and Excel). Output files for the analysis in each data-analysis chapter (SPSS and Excel) SPSS and Excel computerized demonstration movies. SPSS and Excel screen captures. Additional materials that supplement the topic discussed in the book. Student Supplements and Value Packs The book is supported by a useful set of supplements to further enhance your learning. 1. Student Versions of SPSS. A student version of SPSS 18 can be obtained as an optional value package with this book. 2. Study Guide with Technology Manual (0132544563). A study guide to enhance your learning is available in print format. Teaching Aids for Instructors The password protected Instructor Resource Center offers several teaching aids that can be accessed only by instructors. These include: PowerPoint Presentations (0132544520) A comprehensive set of PowerPoint slides can be used by instructors for class presentations or by students for lecture preview or review. Instructor’s Manual (0132544504) A complete instructor’s manual, prepared by the author, can be used to prepare lecture or class presentations, find answers to the end-of-chapter application exercises, and even to design the course syllabus. The manual also contains solutions to all the cases (HP Running Case, Comprehensive Critical Thinking Cases, Comprehensive Cases with Questionnaires and Real Data, Comprehensive Brief Harvard Business School Cases) and Online Video Cases. Test Item File (0132544539) The test bank for the fourth edition contains multiple-choice and true/false questions for every chapter. PREFACE This Test Item File supports Association to Advance Collegiate Schools of Business (AACSB) International Accreditation. Each chapter of the Test Item File was prepared with the AACSB learning standards in mind. Where appropriate, the answer line of each question indicates a category within which the question fails.1 This AACSB reference helps instructors identify those test questions that support that organization’s learning goals. One of the criteria for AACSB accreditation is the quality of the curricula. Although no specific courses are required, the AACSB expects a curriculum to include learning experiences in such areas as: WHAT ARE AACSB LEARNING STANDARDS?        Communication abilities Ethical understanding and reasoning abilities Analytical skills Use of information technology Dynamics of the global economy Multicultural and diversity understanding Reflective thinking skills These seven categories are AACSB Learning Standards. Questions that test skills relevant to these standards are tagged with the appropriate standard. For example, a question testing the moral questions associated with externalities would receive the ethical understanding and reasoning abilities tag. Tagged questions help you measure whether students are grasping the course content that aligns with AACSB guidelines. In addition, the tagged questions may help to identify potential applications of these skills. This, in turn, may suggest enrichment activities or other educational experiences to help students achieve these goals. HOW CAN I USE THESE TAGS? Other Teaching Aids The password protected Instructor Resource Center also contains the following:         1 Data for cases 1.1 Hewlett-Packard, 3.1 Bank of America, 3.2 McDonald’s, and 3.3 Boeing, given in the book (SPSS and Excel) Files for all the Experiential Learning exercises Data files for all the Applied Problems (SPSS and Excel) Data file for the data set(s) used in each data analysis chapter (SPSS and Excel) SPSS and Excel Computerized Demonstration Movies SPSS and Excel Screen Captures SPSS and Excel Output files for data analyses presented in Chapters 15 to 18, and for solutions to all Experiential Learning exercises, Applied Problems, and Cases Additional materials that supplement the topic discussed in the book. Please note that not all test questions indicate an AACSB category. xxix Acknowledgments Several people have been extremely helpful in writing this textbook. I would like to acknowledge Professor Arun K. Jain (State University of New York at Buffalo), who taught me marketing research in a way I will never forget. My students, especially former doctoral students, as well as several MBA research assistants, have been helpful in many ways. The students in my marketing research courses have provided useful feedback, as the material was class-tested for several years. Michael Baumgardner, President and CEO, Burke Inc., William D. Neal, Founder and Senior Executive Officer of SDR Consulting, Terry Grapentine, Principal at Grapentine Company LLC, and Ken Athaide, Senior Vice President, Market Strategies International, have been very helpful and supportive over the years. The reviewers have provided many constructive and valuable suggestions. Among others, the help of the following reviewers is gratefully acknowledged. Reviewers for the First Edition Dennis B. Arnett University of Texas at San Antonio Jerry Katrichis University of Hartford Paul L. Sauer Canisius College Alan G. Sawyer University of Florida Reviewers for the Second Edition Ronald E. Goldsmith Florida State University Manish Kacker Tulane University John S. Kakalik Western Connecticut State University Alyse Lancaster University of Miami Tom Schmidt Simpson College Larry Seibert University of Central Oklahoma Donald E. Stem, Jr. Washington State University R. Greg Surovick Lehigh University Reviewers for the Third Edition Aliosha Alexandrov University of Wisconsin, Oshkosh Karen Barr xxx ACKNOWLEDGMENTS Nicolet College and Technical Institute Jacqueline Eastman Georgia Southern University Amit Ghosh Cleveland State University James Gould Pace University Sertan Kabadayi Fordham University, Rose Hill Luke Kachersky Fordham University, Rose Hill Erika Matulich The University of Tampa Norm McElvany Johnson State College Paul Young Liberty University The team at Prentice Hall provided outstanding support. Special thanks are due to Sally Yagan, editorial director; Meeta Pendharkar, editorial project manager; Anne Fahlgren, senior marketing manager; Kelly Warsak, senior production project manager; and Elisabeth Scarpa, editorial assistant. Special recognition is due to the several field representatives and salespeople who have done an outstanding job. I want to acknowledge, with great respect, my parents, the late Mr. H. N. Malhotra and Mrs. S. Malhotra. Their love, encouragement, support, and the sacrificial giving of themselves have been exemplary. My heartfelt love and gratitude go to my wife Veena, and my children Ruth and Paul, for their faith, hope, and love. Most of all, I want to acknowledge and thank my Savior and Lord, Jesus Christ, for the abundant grace and favor He has bestowed upon me. This book is, truly, the result of His favor— “For thou, LORD, wilt bless the righteous; with favor wilt thou compass him as with a shield” (Psalm 5:12). I praise God and give Him all the glory. Undoubtedly, the most significant event in my life was when I accepted the Lord Jesus Christ as my personal Savior and Lord. “For whosoever shall call upon the name of the Lord shall be saved” (Romans 10:13). Naresh K. Malhotra xxxi About the Author Dr. Naresh K. Malhotra is Nanyang Visiting Professor, Nanyang Business School, Nanyang Technological University, Singapore and Regents’ Professor Emeritus, College of Management, Georgia Institute of Technology, USA. He has been listed in Marquis Who’s Who in America continuously since the 51st Edition in 1997 and in Who’s Who in the World since 2000. He received the prestigious Academy of Marketing Science CUTCO/Vector Distinguished Marketing Educator Award in 2005. In 2010, he was selected as a Marketing Legend, and his refereed journal articles will be published in nine volumes by Sage with tributes by other leading scholars in the field. In 2011, he received the Best Professor in Marketing Management, Asia Best B-School Award. In an article by Wheatley and Wilson (1987 AMA Educators’ Proceedings), Professor Malhotra was ranked number one in the country based on articles published in the Journal of Marketing Research (JMR) during 1980–1985. He also holds the all-time record for the maximum number of publications in the Journal of Health Care Marketing. He is ranked number one based on publications in the Journal of the Academy of Marketing Science (JAMS) since its inception through Volume 23, 1995. He is also number one based on publications in JAMS during the 10-year period 1986–1995. (See Tables 6 and 7 of JAMS, Vol. 24, No. 4, Fall 1996, p. 297). In an editorial by Schlegelmilch (JIM, 11(1), 2003), Malhotra was ranked number one based on publications in the International Marketing Review (IMR) from 1992–2002. He is also ranked number one based on publications in the International Marketing Review since its inception (1983) to 2003. (See Table V, IMR, 22(4) (2005).) He is also ranked number one based on publications in the International Marketing Review from 1996–2006 based on a study by Xu et al., published in the Asia Pacific Journal of Management (2008) 25: 189–207. In a landmark study by Ford et al. (2010) examining publications in the top four marketing journals (JMR, JM, JAMS, and JCR) over a 25-year period from 1977–2002, Professor Malhotra has three top-three rankings: ranked number three based on publications in all the four journals combined, ranked number three based on publications in JMR, and ranked number one based on publications in JAMS. He has published 10 papers in JMR. He has published more than 125 papers in major refereed journals, including the Journal of Marketing Research, Journal of Consumer Research, Marketing Science, Management Science, Journal of Marketing, Journal of Academy of Marketing Science, Journal of Retailing, Journal of Health Care Marketing, and leading journals in statistics, management science, information systems, and psychology. In addition, he has also published numerous refereed articles in the proceedings of major national and international conferences. Several articles have received best paper research awards. He was Chairman, Academy of Marketing Science Foundation, 1996–1998; President, Academy of Marketing Science, 1994–1996; and Chairman, Board of Governors, 1990–1992. He is a Distinguished Fellow of the Academy and Fellow, Decision Sciences Institute. He is the founding editor of Review of Marketing Research (published by the Emerald Group); served as an associate editor of Decision Sciences for 18 years; and has served as section editor, Health Care Marketing Abstracts, Journal of Health Care Marketing. Also, he serves on the editorial board of eight journals. His book titled Marketing Research: An Applied Orientation, Sixth Edition, was published by Prentice-Hall, Inc., in 2009. This book has been translated into Chinese, Spanish, Russian, Portuguese, Hungarian, French, Bahasa Indonesia, and Japanese. In addition to the eight translations, this book also has several English editions, including North America, International, Europe, India, and Australia and New Zealand. The book has received widespread adoption at both the graduate and undergraduate levels with more than 144 schools using it in the United States and is being studied in over 75 countries. His book, Basic Marketing Research: A Decision-Making Approach, Third Edition, was published by Prentice Hall in 2008 and is likewise a global leader in the field. Dr. Malhotra has consulted for business, nonprofit, and government organizations in the United States and abroad and has served as an expert witness in legal and regulatory proceedings. He has special expertise in data analysis and statistical methods. He is the winner of numerous awards and honors for research, teaching, and service to the profession, including the Academy of Marketing Science, Outstanding Marketing Teaching Excellence Award, 2003. Dr. Malhotra is an ordained minister of the Gospel, and a member and Deacon the First Baptist Church, Atlanta. He has been married to Veena for more than 30 years, and they have two children, Ruth and Paul. xxxii PART 1 Introduction and Early Phases of Marketing Research Source: Art Life Images–Royalty Free/© Exactostock/SuperStock. 1 Introduction to Marketing Research LEARNING OBJECTIVES After reading this chapter, the student should be able to: 1. Define marketing research and distinguish between problem-identification and problem-solving research. 2. Describe a framework for conducting marketing research as well as the six steps of the marketing research process. 3. Understand the nature and scope of marketing research and its role in designing and implementing successful marketing programs. 4. Discuss the role of marketing research in gathering competitive intelligence. 5. Explain how the decision to conduct marketing research is made. 6. Discuss the marketing research industry and the types of research suppliers, including internal, external, full-service, and limited-service suppliers. 7. Describe careers available in marketing research and the backgrounds and skills needed to succeed in them. 8. Explain the role of marketing research in decision support systems in providing data, marketing models, and specialized software. 9. Acquire an appreciation of the international dimension and the complexity involved in international marketing research. 10. Social Describe the use of social media as a domain to Media conduct marketing research. 11. Gain an understanding of the ethical aspects of marketing research and the responsibilities each of the marketing research stakeholders have to themselves, one another, and the research. As a user of marketing research, I gain so much from a well-crafted research “project. You can implement marketing programs so much more vigorously when you are confident you understand what is currently important to the customer. ” Justin Stead VP International, Fossil, Inc., Richardson, Texas How Reebok Fits Shoes Reebok, which was acquired by Adidas in 2006, designs, markets, and distributes sportswear and athletic footwear and equipment. In order to provide “complete comfort” for athletes and consumers, Reebok invests a lot of effort into its marketing research. Although the slogan belongs to Nike, when it comes to marketing research, Reebok just does it! Reebok uses “time-use” research to determine how consumers spend their spare time. This type of information enables Reebok to identify opportunities for new products and markets and then design its marketing program to take advantage of them, as illustrated by the recently introduced line of custom-designed Ventilator shoes. The company uses a variety of methods to research time-use trends, including analysis of secondary data (data collected for other purposes, e.g., data available from publications, the Internet, social media, and commercial sources). It also uses qualitative research, such as focus groups (interviews with 8 to 12 people as a group); survey research via telephone, in the malls, and on the Internet; in social media; and interviews at consumers’ homes. Management wanted to identify ways that Reebok could increase its market share. Analysis of secondary data showed that health club memberships had increased more than 10 percent in the early 2000s. Focus groups indicated that a new popular fitness activity was step aerobics (standard aerobics made more intense by the addition of a 3- to 7-inch platform, the “step”). Reebok then conducted a survey to determine the market potential of step aerobics and found that health club members were spending less time in the clubs by an average of 12 percent. The research also showed that the percentage of adults who exercised in the home had grown from 20 percent in 1990 to more than 30 percent in 2010. In response to these results, several research questions were framed around exercising at home. Based on the results of this research, Reebok redesigned its home–step aerobics line, including home steps, videotapes, aerobic shoes, and body weights. Product research indicated a strong consumer preference for the home–step aerobics line, and the new line was launched nationally. The home–step aerobics line has been very successful, and the popularity of these products has resulted in a Reebok step-workout program on ESPN. Reebok’s in-house marketing research specialists were actively involved in defining and designing the research. However, Reebok contracted data collection and data analysis to external suppliers, who collected and analyzed the data using appropriate statistical techniques. External suppliers can also be used in writing the report, but presentation of the results to the management and assistance in implementation is the responsibility of Reebok’s in-house marketing research department. Reebok makes use of full-service suppliers who provide assistance in all the steps of the marketing research process, as well as limited-service suppliers who might handle only one or a few steps of the process. Its in-house marketing research department has helped Reebok introduce many successful products and marketing programs, enabling it to become a premier sportswear and athletic footwear company. When time-use research revealed in 2010 that women all over the world were spending considerable time, money, and effort in toning and strengthening leg muscles, Reebok designed and marketed its EasyTone shoes as “an innovative footwear solution designed to tone and strengthen key leg muscles with every step.”1 4 PART 1 • INTRODUCTION AND EARLY PHASES OF MARKETING RESEARCH Overview FIGURE 1.1 Introduction to Marketing Research: An Overview Marketing research is one of the most important and fascinating aspects of marketing. As the opening vignette illustrates, marketing research provides a company with valuable information that guides all of its marketing activities. In this chapter, we define and describe the two broad forms of marketing research: (1) research designed to identify problems and (2) research designed to solve problems. We explain the six steps of the marketing research process and take a look at how marketing research fits into the entire marketing decision process. We discuss the role of marketing research in making marketing decisions and gathering competitive intelligence. The marketing research industry consists of a variety of firms, and the field offers exciting career opportunities. We describe the contribution of marketing research to marketing information systems (MIS) and decision support systems (DSS). The Internet has become integral to conducting marketing research and is used extensively in all phases of the marketing research process. Hence, information on the use of the Internet in marketing research is interwoven into each chapter, rather than discussed in a separate section of the chapter as was done in the earlier editions. Throughout this book, we also discuss applications to contemporary issues of importance in the current marketing and marketing research environment: international marketing research, social media, and ethics. This first chapter provides an introduction to these important application areas; an overview is presented in Figure 1.1. As can OPENING VIGNETTE Definition of Marketing Research Figure 1.2 A Classification of Marketing Research Figure 1.3 Marketing Research Process Figure 1.4 Be a DM! • Be an MR! • Experiential Learning The Role of Marketing Research in Decision Making Figure 1.5 What Would You Do? The Decision to Conduct Marketing Research Figure 1.6 Marketing Research Industry Table 1.1 Figure 1.7 Selecting a Research Supplier Careers in Marketing Research The Role of Marketing Research in MIS and DSS Figures 1.8 and 1.9 APPLICATION TO CONTEMPORARY ISSUES Figure 1.10 International Social Media Ethics Figure 1.11 CHAPTER 1 • INTRODUCTION TO MARKETING RESEARCH be seen in Figure 1.1, the opening vignette and Application to Contemporary Issues encompass all of the topics discussed in each chapter. We encourage a hands-on approach through the use of “Be an MR!” (Be a Marketing Researcher!) and “Be a DM!” (Be a Decision Maker!) boxes found in each chapter. These hands-on exercises use the Internet and other electronic sources to focus on the interaction between marketing research and marketing decision making. To further highlight this interaction, sometimes the “Be an MR!” box appears first, whereas at other times “Be a DM!” appears first. The research–decision-making interaction also is emphasized in each chapter by the “What Would You Do?” situation facing a real company. The situation is described and opportunities are provided to address the marketing research and the marketing management decisions facing the company. This hands-on orientation is further reinforced through the “Experiential Learning” exercises. Thus, we provide a better overall understanding of the key concepts and illustrate how applications can be made in other important areas that are discussed throughout the book. Definition of Marketing Research In this book, we emphasize the importance of research in marketing decision making. Marketing research is the systematic and objective identification, collection, analysis, dissemination, and use of information that is undertaken to improve decision making related to identifying and solving problems (also known as opportunities) in marketing. This definition gives marketing research a broad scope, and several aspects of the field are noteworthy. Marketing research involves the identification, collection, analysis, and dissemination of information (see Figure 1.2). Each phase of this process is important. Marketing research begins with the identification or definition of the research problem or opportunity. Problems often lead to opportunities in business, so from a research perspective, the two words often are used interchangeably. An investigation of each follows the same research process. For example, the discovery that adults were spending less time in health clubs and more time exercising at home represented a problem as well as an opportunity for Reebok. The problem was that when people were spending less time in health clubs, they also were using athletic shoes and equipment to a lesser extent, which resulted in decreased demand. The opportunity was more time spent exercising at home, which represented greater potential for shoes and home exercise equipment. The range of data collection methods and the sources used to obtain the data vary in sophistication and complexity. The methods used depend on the specific requirements of the project, including budget and time constraints. The data are then analyzed, and the results are formally presented to the client and used in decision making. IDENTIFICATION OF INFORMATION NEEDED COLLECTION OF DATA ANALYSIS OF DATA DISSEMINATION OF RESULTS USE OF INFORMATION IN DECISION MAKING IDENTIFYING AND SOLVING MARKETING PROBLEMS marketing research The systematic and objective identification, collection, analysis, dissemination, and use of information that is undertaken to improve decision making related to identifying and solving problems (also known as opportunities) in marketing. FIGURE 1.2 Definition of Marketing Research 5 6 PART 1 • INTRODUCTION AND EARLY PHASES OF MARKETING RESEARCH Marketing research is systematic, which means that it follows a predictable path. A marketing research project is planned and documented. It has a scientific basis in that data are collected and analyzed to draw conclusions. The time-use research reported in the Reebok vignette is an example of this. Marketing research obtains its value from its objectivity. It should be conducted impartially, free from the influence of personal or political biases. This is easier said than done, because companies sponsoring the research sometimes pressure the researcher or research firm to generate “support” for a certain desired outcome. However, bending to this sort of pressure is a breach of the ethical codes of conduct that guide the profession. The notion that it provides an unbiased “outside,” or objective, opinion gives marketing research its value. Without that objectivity, results cannot be trusted, and the entire discipline is undermined. The Internet is fast becoming a useful tool in the identification, collection, analysis, and dissemination of information related to marketing research. The Interactive Marketing Research Organization (www.imro.org), which was formed in 2000, is a worldwide association of researchers dedicated to providing an open forum for the discussion of best practices and ethical approaches to research being conducted via the Internet. Research in Action A CEO’s View of Marketing Research What does a time-pressed senior executive expect from in-house marketing researchers? Southern Company’s (www. southerncompany.com) former chairperson, president, and CEO Allen Franklin offers some valuable insights on this question. Franklin described one manager–researcher exchange of which he was part as follows: MARKETING RESEARCHER: “What do you want?” FRANKLIN (RESPONDING “What do you have?” SLOWLY AND FEELING SLIGHTLY EMBARRASSED FOR NOT HAVING A READY ANSWER): MARKETING RESEARCHER: “I don’t have anything, yet. That’s why I am here.” FRANKLIN (GROWING “Well, then, get out of here! You are keeping me from what I need to be doing!” INCREASINGLY IRRITATED): The implication of this exchange is that the researcher needs to understand the current context for decision makers. Researchers Be an MR! can develop this understanding by scanning the business press, following developing stories, attending conferences within the industry, as well as conducting focused research projects. In short, the researcher needs to be curious and be one of the best learners in the firm. Franklin says it this way: “It is not data that are critical, but the people between the data and the management decision maker. Senior managers will tend to work with those who make the managers more comfortable. Comfort is not increased by 2-hour presentations that leave management saying to itself, ‘What are we going to do with that?’” Here is one way a marketing researcher should approach a senior executive like Allen Franklin: MARKETING RESEARCHER: “We know the firm currently has this problem. We can resolve or minimize it by doing this study and acting upon what we learn.” Fortune magazine has named Southern Company the “most admired” electric and gas utility in America, in no small part due to its reliance on marketing research.2 Be a DM! Inside the World of Coca-Cola Social Media Visit Coca-Cola’s Web site at www.coca-cola.com and click on the USA button. How does this site collect marketing research information? How would you improve the Web site in order to collect more or better marketing research information? How could social media be used in this respect? As the brand manager for Coca-Cola, how would you use information collected on the Web site to market your brand more effectively? The next section elaborates on this definition of marketing research by classifying the types of marketing research. CHAPTER 1 • INTRODUCTION TO MARKETING RESEARCH 7 A Classification of Marketing Research Our definition states that organizations engage in marketing research for two reasons: to identify and to solve marketing problems. This distinction serves as a basis for classifying marketing research into problem-identification research and problem-solving research, as shown in Figure 1.3. Problem-identification research involves going below the surface to identify the underlying problem that the marketing manager is facing. Often these problems are not readily apparent or they are likely to arise in the future. Problem-identification research can be designed to analyze market potential, market share, brand or company image, market characteristics, and sales. It can also be used in short-range forecasting, long-range forecasting, and uncovering business trends. For example, Polo Ralph Lauren might undertake research to determine the size of the market for men’s shirts, the projected growth rate of this market, and the market share of major brands. This research might reveal a problem. Say that although Polo’s sales of men’s shirts have been increasing, they have not been keeping pace with industry growth. Moreover, market research might determine that Polo has been gradually losing market share to competitors, such as Tommy Hilfiger. Problem identification is the more common of the two forms of research and is undertaken by virtually all marketing firms. This type of research is used to assess the environment and diagnose problems. Information regarding changes in the market provides an initial alert to potential opportunities or problems. A firm that is operating in a growing market but suffering from a declining market share might be dealing with company-specific problems, such as ineffective advertising or high turnover in its sales force. In other instances, problems, such as declining demand, might be common to all the firms in the industry. Considering the economic, social, cultural, or consumer behavior trends can help to identify such problems or opportunities. Once a problem or opportunity has been identified, a firm undertakes problem-solving research to address the problem. Most marketing firms conduct problem-solving research as well. Problem-solving research addresses many topics, including market segmentation and product, pricing, promotion, and distribution. Problem-identification research and problemsolving research go hand in hand, and a given marketing research project can combine both types of research. • • • • Market Potential Research Market Share Research Image Research Market Characteristics Research • Forecasting Research • Business Trends Research PROBLEMSOLVING RESEARCH • • • • • Research undertaken to help identify problems that are not necessarily apparent or that are likely to arise in the future. problem-solving research Research undertaken to help solve specific marketing problems. FIGURE 1.3 A Classification of Marketing Research MARKETING RESEARCH PROBLEMIDENTIFICATION RESEARCH problem-identification research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research 8 PART 1 • INTRODUCTION AND EARLY PHASES OF MARKETING RESEARCH Research in Action The Arch of Marketing Research at the Golden Arches classical music, and new paint and wall graphics. Re-imaged restaurants attract more customers and enhance perceptions of McDonald’s as a place adults, not just kids, enjoy. The company plans to eventually incorporate the new look in all of its 13,700 franchised and company-owned U.S. locations. As of 2011, the company is the world’s leading food service retailer, with more than 32,000 restaurants in 117 countries serving more than 55 million customers each day. McDonald’s success is a direct result of the problem-identification and problem-solving research that it undertakes on an ongoing basis.3 Source: © Jeff Green/CORBIS/All Rights Reserved. In the 1960s, McDonald’s (www.mcdonalds.com) earned about $170 million domestically; today, the company earns more than that in 2 days. Marketing research has played a vital role in fostering this growth. In 1968, McDonald’s formed its marketing research department, which has grown dramatically since its creation. The most prominent aspect of its operation is that 85 percent of all McDonald’s are franchises. McDonald’s marketing research department actively supports these restaurants by conducting problem-identification and problem-solving research. In 2005, problem-identification research in the form of customer satisfaction surveys (market characteristics research) revealed that in-store atmosphere and décor were becoming an increasingly important part of the customers’ dining experience, even in fast-food restaurants. Based on subsequent problem-solving (segmentation and product) research, in 2006 McDonald’s introduced its “Forever Young” brand by remodeling its restaurants, the first major redesign since the 1970s. This was done to keep the brand relevant and appealing to a younger generation of consumers. The new design includes the traditional McDonald’s yellow and red colors, but the red is muted to terra cotta, the yellow is now golden for a more “sunny” look, and olive and sage green have been added. The concept consists of a new building design, as well as interior changes, such as recessed lighting, Classifying marketing research into two main types is useful from a conceptual as well as a practical viewpoint. The McDonald’s example illustrates that these two types of research often go hand in hand with problem-identification research leading to problem-solving research. Marketing research discovered that in-store atmosphere and décor were becoming an increasingly important part of the customers’ dining experience (problem identification), and the solution was the introduction of the “Forever Young” brand by remodeling restaurants (problem solving). The Reebok vignette also illustrates this point. Problem identification involving analysis of secondary data, focus groups, and a market potential survey revealed that adults were spending less time in health clubs and more time exercising at home. Problem-solving research in the form of product research led to the redevelopment and introduction of the successful home–step aerobics line. Be a DM! Be an MR! Major League Baseball Is Tickled Pink Social Media As the marketing director of Major League Baseball (MLB), what marketing strategies would you formulate to target female fans? marketing research process A set of six steps that defines the tasks to be accomplished in conducting a marketing research study: problem definition, developing an approach to the problem, research design formulation, fieldwork, data preparation and analysis, and report preparation and presentation. You have been hired by MLB to devise a marketing strategy for female fans. Visit www.mlb.com and search the Internet— including social media—as well as your library’s online databases to obtain information on women’s attitudes toward MLB. What kind of marketing research would you recommend? Marketing Research Process The marketing research process consists of six steps (see Figure 1.4). This process is a general one and can be followed for conducting research in any functional area (e.g., marketing, finance, accounting, and so forth). Each of these steps is discussed in greater detail in subsequent chapters. We will provide only a brief overview here. CHAPTER 1 • INTRODUCTION TO MARKETING RESEARCH STEP 1: DEFINING THE PROBLEM STEP 2: DEVELOPING AN APPROACH TO THE PROBLEM STEP 3: FORMULATING A RESEARCH DESIGN STEP 4: DOING FIELDwORK OR COLLECTING DATA STEP 5: PREPARING AND ANALYZING DATA STEP 6: PREPARING AND PRESENTING THE REPORT Step 1: Defining the Problem The first step in any marketing research project is to define the problem. Researchers accomplish problem definition through discussions with decision makers, interviews with industry experts, analysis of secondary data including social media, and, perhaps, some qualitative research, such as focus groups. Problem definition involves defining the management-decision problem (what should the management do) and the marketing research problem (what information is needed). In the opening vignette, the management-decision problem was: What should Reebok do to increase its market share? The marketing research problem for Reebok was assessing the market potential for home–step aerobic products. Once the problem has been defined, the research can be designed and conducted properly. (See Chapter 2.) Step 2: Developing an Approach to the Problem Developing an approach to the problem includes formulating an analytical framework and models, research questions, and hypotheses. This process is guided by the same tasks performed to define the problem. (See Chapter 2.) In the opening vignette, several research questions were investigated related to exercising at home. Step 3: Formulating a Research Design A research design is a framework or blueprint for conducting the marketing research project. It details the procedures needed to obtain the required information. A study might be designed to test hypotheses of intere...