Exam 1 Flashcards
Conjoint Analysis: Best used when?
- the product or service is a complex bundle of attributes
- there is a need to test a company’s value proposition
- you need to understand which combination of attributes will appeal most to customers
Focus group: Best used when?
- the issues are not well understood
- attitudes and motivations must be uncovered
- there is a need to generate ideas to be studied through quantitative research
- the subject would make group interaction useful
In-depth interview: Best used when?
- the issues are not well understood
- attitudes must be uncovered
- there is a need to generate ideas to be studied through quantitative research
- a focus group would be difficult to conduct
Internal data: Best used when?
- budget is small or nonexistent
- data are available in the company’s information systems
Conjoint analysis: Weaknesses
- useful only when the product can be viewed as a bundle of attributes
- limited to informing product-design decisions
Focus group: Weaknesses
- expensive and time-consuming
- does not provide a representative sample
- the moderator and group dynamics can skew results
In depth interviews: Weaknesses
- expensive, especially face-to-face
- does not provide a representative sample
- results may not be easy to interpret or tabulate and may be vulnerable to interviewer bias
Internal data: Weaknesses
- useful in describing what has happened, but not what might happen
Observation and empathetic design: Best used when?
- you are trying to understand how people shop for or use products
- you are probing for unspoken needs and “pain points”
Perceptual mapping: Best used when?
- there is a need to understand the structure of particular product markets and to learn how the competitors’ products are perceived
Review of secondary research: Best used when?
- budget is small or nonexistent
- speed is essential
- you need to focus your primary data search through better understanding key uncertainties about the market
Surveys: Best used when?
- information is need quickly
- budget is limited
- quantifying market issues
- questions can be precisely stated
Observation and empathetic design: Weaknesses
- seldom a stand-alone form of research
- expensive and time consuming
- does not provide a representative sample
Perceptual mapping: Weaknesses
- offers insights into perceptions only; does not address wants, preferences, and likelihood of purchase
Review of secondary research: Weaknesses
- seldom provides the specific data that managers need in making marketing-mix decisions
Surveys: Weaknesses
- results are only as good as the survey design and sample population surveyed
Steps in the market research process
- Formulate the problem or question
- determine the sources of information and design a research process
- choose the most appropriate data collection method
- collect the data
- analyze and interpret the data
Value
Decreased uncertainty
Increased likelihood of a correct decision
Improved marketing performance
cost
Research expenditures
Delay of decision and possible missed opportunities
Internal data examples
Accounting records CRM Prospect database Data mining Sales records Distribution network
External data examples
Government sources Industry reports Press releases Competitor financial data Job postings Syndicated services Social Media aggregators Overlay data
What is an experiment?
Also known as “Causal Research” in which researcher:
- Manipulates the independent variable (IV) to see its effect on the dependent variable (DV)
- Randomly assigns participants to IV conditions
- Eliminates as many confounding variables as possible
- Compares results on DV across the IV conditions
