lecture 5+6

Question 1

To make good decisions, marketers must have info that is:

Answer 1

1. Accurate
2. Up to date
3. Relevant

Question 2

Key Market Research Issues

Answer 2

• Know what customers want (“unmet needs”)
• Know when customers want it
• Know where customers want it
• Know what the competition is doing

Question 3

Marketing Info Systems

Answer 3

consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.

Question 4

Number of components in a MIS

Answer 4

Data (internal and external)

Question 5

Types of Market Research

Answer 5

Primary: information collected for the specific purpose at hand
Secondary: information that already exists somewhere, having been collected for another purpose

Question 6

Data mining

Answer 6

FOUR OBJECTIVES:
- Customer acquisition
- Customer retention
- Customer abandonment
- Market basket analysis
Goal: seeking commonalities among customers

Question 7

Market research process/steps

Answer 7

1. Define the problem and research objectives

Question 8

Primary research

Answer 8

Exploratory and conclusive

Question 9

Primary research - types of research designs

Answer 9

Type 1: conclusive descriptive: used to describe audience, environment, etc. (the “what” – painting a picture of the audience)
Type 2: conclusive causal: used to understand cause and effect via “experiments”; dependent/independent variables (the “why”)

Question 10

Primary Data Collection Methods

Answer 10

Observational, survey, experimental

Question 11

Data quality

Answer 11

2 Key Criteria: is it valid? Is it reliable?
- The sample: small portion that reflects characteristics of the target population
- Collecting data: usefulness of data is only as good as quality of collection process
- Data analysis + interpretation: analyzing raw data and interpreting creates information
- Present the findings: key learnings and recommendations

Question 12

Consumer behavior

Answer 12

Why people buy?
- Buying = process people go through to pick, purchase, use, and dispose of products
- People buy products to obtain items that satisfy customer needs + wants

Question 13

Buying decision process background

Answer 13

1. Level of involvement (how severe are the consequences of the purchase)
2. Level of perceived risk

Question 14

Types of consumer buying decisions

Answer 14

Routine response behavior (little to no thought - necessities, i.e. toilet paper)

Limited decision making (moderate effort - customer needs to collect data, i.e. clothing)

Extensive decision making (lots of involvement/research needed - i.e. house, car)

Question 15

7 Purchase Decision influences (internal)

Answer 15

1. Perception
2. Motivation (Maslow’s Hierarchy)
3. Learning
4. Attitude
5. Personality
6. Age
7. Lifestyles

Question 16

Purchase decision influences (socio-cultural)

Answer 16

• Culture
• Subculture
• Social class
• Peer groups
• Reference groups
• Gender roles

Question 17

Buyer adoption process stages

Answer 17

1. Awareness
   The consumer becomes aware of the new product but lacks information about it.
2. Interest
   The consumer seeks information about the new product
3. Evaluation
   The consumer considers whether trying the new product makes sense
4. Trial
   The consumer tries the new product on a small scale to improve his or her estimate of its value.
5. Adoption
   The consumer decides to make full and regular use of the new product.

Question 18

Diffusion of innovation

Answer 18

How and at what rate new technologies spread
5 factors that impact success:
1. Relative advantage
2. Compatibility with existing values & practices
3. Complexity - how easy for customers
4. Trial ability - how easily sampled/experienced
5. Observability - how visible to view

Question 19

Diffusion of innovation - chart

Answer 19

Innovators (2.5%) –> early adopters (13.5%) –> early majority (34%) –> late majority (34%) –> laggards (16%)

Question 19

4 Types of B2B Markets

Answer 19

• Producers
• Resellers
• Government
• Not for profits

Question 19

Market Segmentation/Fragmentation

Answer 19

Dividing the target market into many different subgroups based on shared features. Developing solutions catered to these groups.
Variables:
- Demographic
- Behavioral
- Psychographic
- Geographical

Question 20

5 Step Process Buying Decision

Answer 20

1. Need recognition
   Buyer recognizes a problem or need
2. Information search
3. Evaluation of alternatives
4. Product choice/purchase
5. Post-purchase behavior

Question 21

Opinion leader

Answer 21

A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

Question 22

Costs are involved in …… information

Answer 22

Obtaining, analyzing, storing, delivering

Question 23

Data

Answer 23

Hardware/software to store, analyze, create reports Internal: collections of consumer and market information obtained from data sources within the company’s network. External: surveys, audits, syndicated suppliers, trade sources, etc

Question 24

Sample

Answer 24

segment of the population selected for marketing research to represent the population as a whole.

Question 25

Customer insights

Answer 25

Fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships.

Question 26

Exploratory research

Answer 26

Marketing research to gather preliminary information that will help define problems and suggest hypotheses

Question 27

Causal research

Answer 27

Marketing research to test hypotheses about cause-and-effect relationships

Question 28

Observational research (primary)

Answer 28

Gathering primary data by observing relevant people, actions, and situations

Question 29

Survey research (primary)

Answer 29

Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.

Question 30

Experimental research (primary)

Answer 30

Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.

Question 31

Primary Research Contact Methods

Answer 31

- Mail questionnaires: can be used to collect large amounts of information at a low cost per respondent - Telephone interviewing: gathering information quickly, and it provides greater flexibility than mail questionnaires - Interviewing: individual and group - Focus group interviewing: Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues.