Chapter 1

Introduction to Marketing
Research
Definition of Marketing Research
Marketing research is the systematic and objective identification, collection, analysis,
dissemination, and use of information for the purpose of improving decision making related to the
identification and solution of problems and opportunities in marketing.

A Classification of Marketing Research

Our definition states that organizations engage in marketing research for two reasons:
i. To identify the problems.
ii. To solve marketing problems.
 Problem-Identification Research:
Research that is undertaken to help identify problems that are not necessarily apparent on the
surface and yet exist or are likely to arise in the future.
 Problem-Solving Research:
Research that is undertaken to help solve specific marketing problem.

The Marketing Research Process

Marketing research process consists of six steps:
Step 1: Problem Definition
The first step is to define the problem. In defining the problem, the researcher should take into
account the purpose of the study, the relevant background information, the information needed,
and how it will be used in decision making.
Step 2: Development of an Approach to the Problem
Development of an approach to the problem includes formulating an objective or theoretical
framework, analytical models, research questions, and hypotheses and identifying the information
needed.
Step 3: Research Design Formulation
A research design is a framework or blueprint for conducting the marketing research project.
It involves the following steps:
 Definition of the information needed
 Secondary data analysis
 Qualitative research
 Methods of collecting quantitative data
 Measurement and scaling procedures
 Questionnaire design
 Sampling process and sample size
 Plan of data analysis
Step 4: Fieldwork or Data Collection
Data collection involves a field force or staff that operates either in the field, as in the case of
personal interviewing, from an office by phone, through the mail or electronically.
Step 5: Data Preparation and Analysis
Data preparation includes the editing, coding, transcription, and verification of data.
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Step 6: Report Preparation and Presentation
The entire project should be documented in a written report that addresses the specific research
questions identified; describes the approach, the research design, data collection, the data
analysis procedures adopted, and presents the results and the major findings. The findings should
be presented in a comprehensible format so that management can readily use them in the
decision-making process.

The Role of Marketing Research in Marketing Decision Making

The task of marketing research is to assess the information needs and provide management with
relevant, accurate, reliable, valid, current, and actionable information. Today’s competitive
marketing environment and the ever-increasing costs attributed to poor decision making require
marketing research to provide sound information.

Marketing Research and Competitive Intelligence

Competitive intelligence (CI) may be defined as the process of enhancing marketplace
competitiveness through a greater understanding of a firm’s competitors and the competitive
environment. It involves the legal collection and analysis of information regarding the capabilities,
vulnerabilities, and intentions of business competitors, conducted by using information databases
and other “open sources” and through ethical marketing research inquiry.

The Decision to Conduct Marketing Research

Marketing research can be beneficial in a variety of situations, but the decision to conduct
research is not automatic. Rather, this decision should be guided by a number of considerations,
including the costs versus the benefits, the resources available to conduct the research, the
resources available to implement the research findings, and management’s attitude toward
research.

The Marketing Research Industry

The marketing research industry consists of suppliers that provide marketing research services.
Marketing research suppliers and services provide most of the information needed for making
marketing decisions.
Internal Supplier: Marketing research departments located within a firm
Competitive Intelligence: The process of enhancing marketplace competitiveness through a
greater understanding of a firm’s competitors and the competitive environment.
External Suppliers: Outside marketing research companies hired to supply marketing research
data.
Marketing Research Industry: The marketing research industry consists of external suppliers
that provide marketing research services.
Full-Service Suppliers: Companies that offer the full range of marketing research activities.
Customized Services: Companies that tailor the research procedures to best meet the needs of
each client.
Syndicated Services: Companies that collect and sell common pools of data designed to serve
information needs shared by a number of clients on a subscription basis.
Internet/Social Media Services: Companies that specialize in conducting marketing research
on the Internet.

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Limited-Service Suppliers: Companies that specialize in one or a few phases of the marketing
research project.
Field Services: Companies whose primary service offering is their expertise in collecting data for
research projects.
Qualitative Services: Services related to facilities, recruitment, and other services for focus
groups and other forms of qualitative research, such as one-on-one depth interviews.
Technical and Analytical Services: Services related to design issues and computer analysis of
quantitative data, such as those obtained in large surveys.

Selecting a Research Supplier

A firm that cannot conduct an entire marketing research project in-house must select an external
supplier for one or more phases of the project. The firm should compile a list of prospective
suppliers from such sources as trade publications, professional directories, and word of mouth.
When developing criteria for selecting outside suppliers, a firm should keep some basics in mind.
What are the reputations of the suppliers? Do they complete projects on schedule? Are they
known for maintaining ethical standards? Are they flexible? Are their research projects of high
quality? What kind and how much experience do the suppliers have? Have the firms had
experience with projects similar to this one? Do the suppliers’ personnel have both technical and
nontechnical expertise?

Employability in Marketing Research

Employment potential is bright and promising career opportunities are available with marketing
research firms. Equally appealing are careers in business and non-business firms and agencies with
in-house marketing research departments.
To prepare for employment and a career in marketing research, we should:
 Take all the marketing courses you can.
 Take courses in statistics and quantitative methods.
 Knowledge of programming languages is an added asset.
 Take courses in psychology and consumer behaviour.
 Acquire effective written and verbal communication skills.
 Think creatively. Creativity and commonsense command a premium in marketing
research.

The Department Store Patronage Project

A department store patronage project that I conducted is used as a running example throughout
this text to illustrate concepts and data analysis procedures. The purpose of this project was to
assess the relative strengths and weaknesses of a major department store relative to a group of
direct and indirect competitors.

International Marketing Research

The United States accounts for only about 40 percent of the marketing research expenditures
worldwide. Most of the research in Europe is done in the United Kingdom, Germany, France, Italy,
and Spain. Japan, China and Australia are the leader in the Asia-Pacific region, followed by Korea,
and Taiwan. Brazil and Mexico lead the Central and South American markets in terms of marketing
research expenditures. Conducting international marketing research, foreign research (research
carried out in a country other than the country of the research commissioning organization), or
multinational research is much more complex than domestic marketing Research.

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Marketing Research and Social-Media
Social media embody social computing tools commonly referred to as Web 2.0. These are Web
applications that facilitate interactive information sharing, user-oriented design, and collaboration
on the World Wide Web. Examples of social media include social networking sites, video sharing,
photo sharing, music sharing, bookmarking, voice networking, wikis, product and service reviews,
virtual worlds, multiplayer games, Web-based communities, blogs, and microblogs. A handful of
marketing research firms have emerged that specialize in social media conversation mining
services. They listen in on online conversations, report on activity, and assess influence.

Mobile Marketing Research

By mobile marketing research (MMR) we mean marketing research, such as a survey, that is
conducted or administered to potential respondents on their mobile devices. The rapid
development and increasing use of mobile devices such as smartphones, phablets, tablets, and the
Internet of Things (IoT) are creating great opportunities for marketing research. The mobile user
base is huge and is only expected to continue growing. MMR also has several disadvantages.
Surveys must be kept short, succinct, and simple. The norm is to ask no more than 15 questions
with the entire process taking less than 15 minutes; some advocate surveys should take less than
three minutes.

Ethics in Marketing Research

Several aspects of marketing research have strong ethical implications. As explained earlier,
marketing research is generally conducted by commercial firms that are either independent
research organizations or departments within corporations. Most marketing research is conducted
for clients representing commercial firms.
Marketing research has often been described as having four stakeholders:
1. The marketing researcher
2. The client
3. The respondent
4. The public
Ethical issues arise when the interests of these stakeholders are in conflict and when one or more
of the stakeholders are lacking in their responsibilities.
An Overview of Ethical Issues in Marketing Research:
I. Problem Definition
 Using surveys as a guise for selling or fundraising
 Personal agendas of the researcher or client
 Conducting unnecessary research
II. Developing an Approach
 Using findings and models developed for specific clients or projects for other
projects
 Soliciting proposals to gain research expertise without pay
III. Research Design
 Formulating a research design more suited to the researcher’s rather than the
client’s needs
 Using secondary data that are not applicable or have been gathered through
questionable means
 Disguising the purpose of the research
 Soliciting unfair concessions from the researcher
 Not maintaining anonymity of respondents
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  Disrespecting privacy of respondents
 Misleading respondents
 Disguising observation of respondents
 Embarrassing or putting stress on respondents
 Using measurement scales of questionable reliability and validity
 Designing overly long questionnaires, overly sensitive questions, piggybacking
 Using inappropriate sampling procedures and sample size
IV. Fieldwork
 Increasing (dis)comfort level of respondents
 Following (un)acceptable fieldwork procedures
V. Data Preparation and Analysis
 Identifying and discarding unsatisfactory respondents
 Using statistical techniques when the underlying assumptions are violated
 Interpreting the results and making incorrect conclusions and recommendations
VI. Report Preparation and Presentation
 Incomplete reporting
 Biased reporting
 Inaccurate reporting

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 Chapter 2
Defining the Marketing Research
Problem and Developing an
Approach
Importance of defining the problem
 Problem definition involves stating the general problem. and identifying the specific
components of the marketing research problem.
 Only when the marketing research problem has been clearly defined can research be
designed and conducted properly.
 . All the effort, time, and money spent from this point on will be wasted if the problem is
misunderstood or ill defined.
 This point is worth remembering, because inadequate problem definition is a leading cause
of the failure of marketing research projects
 These results lead to the conclusion that the importance of clearly identifying and defining
the marketing research problem cannot be overstated. I cite an episode from personal
experience to illustrate this point.

The Process of Defining the Problem and Developing an Approach

The tasks involved in problem definition consist of discussions with the decision makers, interviews
with industry experts and other knowledgeable individuals, analysis of secondary data, and
sometimes qualities research.

Tasks Involved
 Discussions with Decision Maker
 Interviews with Experts
 Secondary Data Analysis
 Qualitative Research

Environmental Context of the Problem

Step 1: problem definition

Management decision problem

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 Marketing research problem
Step 2: Approach to the Problem
 Objective/ Theoretical Foundations
 Analytical Model: Verbal, Graphical, Mathematical
 Research Questions
 Hypotheses
 Specification of Information Needed

Step 3: Research Design

Problem audit A comprehensive examination of a marketing problem to understand its origin and
nature.

Interviews with Industry Experts

In addition to discussions with the DM, interviews with industry experts, individual’s knowledge
able about the firm and the industry, may help formulate the marketing research problem. These
experts may be found both inside and outside the firm. These experts may be found both inside
and outside the firm. If the notion of experts is broadened to include people very knowledgeable
about the general topic being investigated, then these interviews are also referred to as an
experience survey or the key-informant technique Unfortunately, two potential difficulties may
arise when seeking advice from experts:
 Some individuals who claim to be knowledgeable and are eager to participate may not
really possess expertise.
 It may be difficult to locate and obtain help from experts who are outside the client
organization

Environmental Context of the Problem

The set of factors having an impact on the definition of the marketing research problem, including
past information and forecasts, resources and constraints of the firm, objectives of the decision
maker, buyer behaviour, legal environment, economic environment, and marketing and
technological skills of the firm.

Past Information and Forecasts

 Past Information and Forecasts
 Resources and Constraints
 Objectives
 Buyer Behaviour
 Legal Environment
 Economic Environment
 Marketing and Technological Skills

Management Decision Problem and Marketing Research Problem

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 i) Management decision problem
The problem confronting the decision maker. It asks what the decision maker needs to do.

 Ask what the decision maker needs to do

 Action oriented
 Focus on symptoms

ii) Marketing research problem

marketing research problem A problem that entails determining what information is needed and
how it can be obtained in the most feasible way.

 Ask what information is needed and how it should

 Information oriented
 Focuses on the underlying causes
Components of the Approach
In the process of developing an approach, we must not lose sight of the goal—the outputs. The
outputs of the approach development process should include the following components:
objective/ theoretical framework, analytical models, research questions, hypotheses, and
specification of information needed.

Objective/Theoretical Framework
 Unbiased evidence that is supported by empirical findings.
Analytical Mode
An explicit specification of a set of variables and their interrelationships designed to represent
some real system or process in whole or in part.

Verbal Models
Analytical models that provide a written representation of the relationships between variables.

Graphical Models
Analytical models that provide a visual picture of the relationships between variables.

Research Questions
Research questions are refined statements of the specific components of the problem. Although
the components of the problem define the problem in specific terms, further detail may be needed
to develop an approach. Each component of the problem may have to be broken down into
subcomponents or research questions. Research questions ask what specific information is
required with respect to the problem components.

Hypothesis

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A hypothesis is an unproven statement or proposition about a factor or phenomenon that is of
interest to the researcher. It may, for example, be a tentative statement about relationships
between two or more variables as stipulated by the theoretical framework or the analytical model.
Often a hypothesis is a possible answer to the research question

International Marketing Research

The precise definition of the marketing research problem is more difficult in international
marketing research than in domestic marketing research. Unfamiliarity with the environmental
factors of the country where the research is being conducted can greatly increase the difficulty of
understanding the problem’s environmental context and uncovering its causes.

Marketing Research and Social-Media

 Social media can be used to aid in all the tasks that need to be performed in order to define
the problem. If the decision maker maintains a blog or has a Facebook page, these sources
provide additional information in understanding the decision maker and his or her
objectives.
 Social media can also help in gaining an understanding of the environmental context of the
problem.
 Research approaches built around social computing technologies and open-source thinking
enable us to get a rich understanding of the environmental factors in general and consumer
behaviour in particular

Mobile Marketing Research

Mobile marketing research (MMR) can be useful in defining the problem as well as in developing
an approach to the problem. The mobile phone has become a significant means of communication,
particularly in a business setting, in most countries of the world. Thus, the researcher can use
mobile communication to interact with the decision maker(s) and with the industry experts.

Ethics in Marketing Research

Ethical issues arise if the process of defining the problem and developing an approach is
compromised by the personal agendas of the client (DM) or the researcher. This process is
adversely affected when the DM has hidden objectives such as gaining a promotion or justifying a
decision that has been already made

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 Chapter 3
Research Design
Research Design: Definition
A research design is a framework or blueprint for conducting the marketing research project. It
details the procedures necessary for obtaining the information needed to structure or solve
marketing research problems.
Typically, a research design involves the following components, or tasks:
 Define the information needed
 Design the exploratory, descriptive, and/or causal phases of the research
 Specify the measurement and scaling procedures
 Construct and pretest a questionnaire or an appropriate form for data
collection
 Specify the sampling process and sample size
 Develop a plan of data analysis.

Research Design Classification

Exploratory Research: As its name implies, the objective of exploratory research is to explore
or search through a problem or situation to provide insights and understanding. Exploratory
research could be used for any of the following purposes:
 Formulate a problem or define a problem more precisely.
 Identify alternative courses of action.
 Develop hypotheses.
 Isolate key variables and relationships for further examination.
 Gain insights for developing an approach to the problem.
 Establish priorities for further research

Descriptive Research: As the name implies, the major objective of descriptive research is to
describe something— usually market characteristics or functions. Descriptive research is
conducted for the following reasons:

Cross-Sectional Designs: The cross-sectional study is the most frequently used descriptive
design in marketing research. Cross-sectional designs involve the collection of information from
any given sample of population elements only once. They may be either single cross-sectional or
multiple cross-sectional designs. In single cross-sectional designs, only one sample of respondents
is drawn from the target population, and information is obtained from this sample only once.
These designs are also called sample survey research designs.

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Research Design

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 Relationships Among Exploratory, Descriptive, and Causal Research:
We have described exploratory, descriptive, and causal research as major classifications of research
designs, but the distinctions among these classifications are not absolute. We offer the following
general guidelines for choosing research designs.
 When little is known about the problem situation, it is desirable to begin with
Exploratory Conclusive Research
exploratory research. Exploratory research is appropriate when the problem needs to
Research Design
be defined more precisely. Design
 Exploratory research is the initial step in the overall research design framework. In
most instances, it should be followed by descriptive or causal research.
 It is not necessary to begin every research design with exploratory research. It
depends on the precision with which the problem has been defined and the
Descriptive Casual Research
researcher’s degree of certainty about the approach to the problem.
Research
4. Although exploratory research is generally the initial step, it need not be.
Exploratory research may follow descriptive or causal research.

The relationships among exploratory, descriptive, and causal research are further illustrated by the
department store patronage project.
 Potential Sources of Error Several potential sources of error can affect a research design. A
Cross research design attempts to control the various Longitudinal
good–Sectional sources of error.Design
These errors are
discussed
Designin detail in subsequent chapters, but it is pertinent at this stage to give brief
descriptions.
 Random Sampling Error Random sampling error occurs because the particular sample
selected is an imperfect representation of the population of interest. Random sampling
error is the variation between the true mean value for the population and the true mean
value for the original sample.
Single Cross Multiple Cross Sectional
Non-sampling Error: Non-sampling errors can be attributed to sources other
Sectional Design Designthan sampling,
and they may be random or non-random. They result from a variety of reasons, including errors in
problem definition, approach, scales, questionnaire design, interviewing methods, and data
preparation and analysis.

Non-Response Error: Nonresponse error arises when some of the respondents included in
the sample do not respond.

Response Error: Response error arises when respondents give inaccurate answers or their
answers are mis-recorded or mis-analysed.

Sampling Frame: Sampling error may be defined as the variation between the population
defined by the researcher and the population as implied by the sampling frame used.

Data Analysis: Data analysis error encompasses errors that occur while raw data from
questionnaires are transformed into research findings.

Total Error
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 Random Non-Sampling
Sampling Error
Error

Response Errors Nonresponse Error

Researcher Errors Interviewer Errors Respondent Errors

Surrogate Information Inability Error

Respondent selection
Error
Error Unwillingness
Measurement Error Error
Questioning Error
Population Definition
Recording Error
Error
Cheating Error
Sampling Frame Error
Data Analysis Error

Respondent Selection: Respondent selection error occurs when interviewers select

respondents other than those specified by the sampling design or in a manner inconsistent with
the sampling design.
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Questioning Error: It denotes errors made in asking questions of the respondents or in not
probing when more information is needed.

Recording Error: Recording error arises due to errors in hearing, interpreting, and recording
the answers given by the respondents.

Cheating Error Arises: Cheating error arises when the interviewer fabricates answers to a
part or all of the interview.

Inability Error: Its results from the respondent’s inability to provide accurate answers.
Respondents may provide inaccurate answers because of unfamiliarity, fatigue, boredom, faulty
recall, question format, question content, and other factors.

Unwillingness error: Arises from the respondent’s unwillingness to provide accurate

information.
Marketing Research Proposal Once the research design has been formulated and budgeting and
scheduling of the project accomplished, a written research proposal should be prepared. The
marketing research proposal contains the essence of the project and serves as a contract between
the researcher and management. The research proposal covers all phases of the marketing
research process

Chapter 4

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 Exploratory Research Design:
Secondary and Syndicated Data
Secondary Data: Data that have been collected for purpose other than the problem at hand.
Benefits: Quick, simple, and affordable
Cons: Not relevant to the current research situation.

Primary data: Data that are originated by a researcher for the specific purpose of addressing
the problem at hand.
Benefits: Designed to meet the current research needs.
Cons: Expensive, time-consuming, and complex.

Criteria for Evaluating Secondary Data

Secondary data quality should be routinely assessed using the criteria:

Specifications/Methodology
To identify potential sources of bias, the specifications or methodology used to collect the data
should be critically examined. Methodological considerations include sample size and composition,
response rate and quality, questionnaire design and administration, fieldwork procedures, analysis
and reporting procedures.
Error: Accuracy of the Data
The researcher must determine whether the data is accurate enough for the current study.
Secondary data can contain a variety of sources of error or inaccuracy, such as errors. In the
project's approach, research design, sampling, data collection, analysis, and reporting stages.
Currency: When the Data Were Collected
Secondary data may be out of date, and the time lag between data collection and publication may
be lengthy, as is common with census data. Furthermore, the data may not be updated frequently
enough for the purposes of the current problem.
Objective: The Purpose for Which the Data Were Collected
Data is invariably collected with a goal in mind, and the fundamental question to ask is why the
data was collected in the first place. The purpose for which data is collected will ultimately
determine the purpose for which that information is relevant and useful.
Nature
The Content of the Data The data's nature, or content, should be examined, paying special
attention to the definition of key variables, units of measurement, categories used, and the
relationships investigated. If the key variables are not defined or are defined in a way that
contradicts the researcher's definition, the data's utility is limited. Consider secondary data on
consumer preferences for television shows.
Dependability: How Dependable Are the Data?
Examining the source's expertise, credibility, reputation, and trustworthiness can provide an
overall indication of data dependability. This information can be obtained by speaking with others
who have used the source's information. Data published to promote sales, advance specific
interests, or spread propaganda should be treated with caution.

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Classification of Secondary Data
Secondary data may be classified as
 Internal
 external
Internal data are those generated within the organization for which the research is being
conducted. This information may be available in a ready-to-use format, such as information
routinely supplied by the management decision support system.
External data are those generated by sources outside the organization. These data are available in
the form of business/nongovernment, government sources, syndicated services, and social media
Internal Secondary Data
Customer Databases: Customer database is to transfer raw sales information, such as that
found on sales call reports or invoices, to a computer.
Data Warehouse and Data Mining: Data warehouse is a centralized database that
consolidates companywide data from a variety of operational systems. Data mining involves the
use of powerful computers with advanced statistical packages and other software to analyse large
databases to discover hidden patterns in the data.
CRM and Database Marketing: A CRM system is a decision support system that is used for
managing the interactions between an organization and its customers. Database marketing is the
practice of using CRM databases to develop relationships and highly targeted marketing efforts
with individuals and customer groups.
External Secondary Data
Business/Nongovernment Data: Most of these data can be conveniently accessed over the
Internet. Businesses publish a great deal of information in the form of books, periodicals, journals,
newspapers, magazines, reports, and trade literature.
Government Sources: Government is the largest source of secondary data in this country and
in the world. The data the government collects could not feasibly be collected by private industry.
• CENSUS DATA: Census data include information about household types, sex, age, marital status,
and race.
• OTHER GOVERNMENT SOURCES: federal government collects and publishes a great deal of
statistical data, much of it relevant to business.
Syndicated Sources of Secondary Data
Syndicated services, also referred to as syndicated sources, are companies that collect and sell
common pools of data of known commercial value, designed to serve information needs shared by
a number of clients.
Syndicated Data from Households
o Surveys
o Psychographic and Lifestyles
o Advertising Evaluation
o General
o Panels
o Purchase
o Media
o Electronic Scanner Services
o Volume Tracking Data
o Scanner Panels with Cable TV
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 o Scanner Panels
Syndicated Data from Institutions
o Retailers
o Audits
o Wholesalers
o Audits
o Industrial Firms
o Direct Inquiries
o Corporate Reports
o Clipping Services

Unlike primary data, which originates with the researcher Secondary data are data that were
originally collected for purposes other than the problem at hand. Secondary data can be obtained
quickly and at a low cost inexpensive. They do, however, have limitations and should be avoided
carefully evaluated to determine their suitability for the current issue. The evaluation criteria are
specifications, inaccuracy, currency, objectivity, nature, and dependability.
When institutions are the unit of measurement, the data may be obtained from retailers,
wholesalers, or industrial firms. It is desirable to combine information obtained from different
secondary sources.
There are several specialized sources of secondary data useful for conducting international
marketing research. However, the evaluation of secondary data becomes even more critical as the
usefulness and accuracy of these data can
vary widely. Social media are sources of both internal and external secondary data and can be used
to collect primary data. Mobile marketing research (MMR) can be employed for accessing
secondary data and providing survey-based syndicated services. Ethical dilemmas that can arise
include the unnecessary collection of primary data, the use of only secondary data when primary
data are needed, the use of secondary data that are not applicable, and the use of secondary data
that have been gathered through morally questionable means.

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