Chapter 4

Question 1

Define marketing research

Answer 1

The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

Question 2

What is a decision

Answer 2

a conscious choice from among two or more alternatives

Question 3

What are the 5 steps in the basic market research process

Answer 3

1. define the problem
2. develop the research plan
3. collect relevant information
4. develop findings
5. take marketing actions

Question 4

Describe step 1 (define the problem) of market research process

Answer 4

• clearly define the problem, issue, or opportunity, an to clarify the research objectives
• Set the research objectives and Identify possible marketing actions

Question 5

what are research objectives

Answer 5

these are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research

Question 6

what are measures of success

Answer 6

Criteria or standards used in evaluating proposed solutions to the problem.

Question 7

Describe step 2 (develop the research plan) of market research process

Answer 7

• this requires that researcher:

1. specify the constraints on the marketing research activity
2. identify the data needed for marketing actions
3. determine how to collect the data

Question 8

Define constraints

Answer 8

In a decision, the restrictions placed on potential solutions to a problem

Question 9

what are the two key elements to consider when deciding how to collect the data

Answer 9

1. concepts - ideas about products or services (to find out about customer reactions to a potential new product, researches develop a new product concept which is a picture or verbal description of a product or service the firm might offer for sale)
2. methods - approaches that can be used to collect data or solve all or part of a problem (can use sampling or statistical inference)

Question 10

Describe step 3 (collect relevant information) of market research process

Answer 10

collecting information to make a rational, informed marketing decision sometimes simply means using your knowledge to decide immediately. At other times it entails collecting an enormous amount of information at great expense.

Question 11

Describe data

Answer 11

The facts and figures related to the project that are divided into two main parts: secondary data and primary data.

Question 12

What is secondary data

Answer 12

Facts and figures that have already been recorded by a third party

Question 13

What is primary data

Answer 13

Data that is original and specifically collected for a project.

Question 14

describe secondary data internal - marketing input data

Answer 14

relate to the effort expanded to make sales.

Question 15

describe secondary data internal - marketing outcome data

Answer 15

relates to the result of the marketing efforts

Question 16

What are syndicated panel data

Answer 16

external secondary data - marketing research companies pay households and businesses to record all their purchases using a paper or electronic diary

Question 17

What are the advantages of secondary data

Answer 17

1. the tremendous time savings because that data has already been collected and published or exists internally
2. the low cost, such as free or inexpensive census reports

Question 18

What are the disadvantages of secondary data

Answer 18

1. secondary data may be out of date
2. definitions or categories might not be quite right for a researchers project
3. because the data has been collected for another purpose they may not be specific enough for the project.

Question 19

what should generally be obtained first, secondary or primary data

Answer 19

secondary data

Question 20

what is ethnographic research

Answer 20

specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their natural use environment –> ex. researching consumers in their kitchens

Question 21

How is observational data obtained

Answer 21

by watching how people actually behave, either in person or by using mechanical (like electronic), personal (watching consumers in person) or neuromarketing methods (observe responses to unconscious stimuli)

Question 22

primary data collection is divided into

Answer 22

idea generation methods, idea evaluation methods

Question 23

Describe idea generation methods

Answer 23

collecting data to generate ideas

–> can use in depth interviews - which are Detailed interviews where a researcher questions an individual at length in a free-flowing conversational style in order to discover information that may help solve a marketing problem.

Question 24

What are focus groups

Answer 24

A qualitative research technique where a small group of people (usually six to ten) meet for a few hours with a trained moderator to discuss predetermined areas. these are present, past, or prospective customers

Question 25

Describe idea evaluation methods

Answer 25

the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions - these methods often involve conventional questionnaires using personal, amil, telephone, and online surveys of a large sample of past present or prospective consumers

Question 26

what are open ended questions

Answer 26

allow respondents to express opinions, ideas, or behaviors in their own words - it captures the voice of respondents

Question 27

What are closed end or fixed alternative questions

Answer 27

require respondents to select one or more responses from a set of predetermined options

Question 28

dichotomous quesion

Answer 28

yes or no

Question 29

semantic differential scale

Answer 29

five point scale in which the opposite ends have one or two word adjectives that have opposite meanings

Question 30

likert scale

Answer 30

extent to which they agree or disagree

Question 31

describe a panel

Answer 31

A large sample of respondents that voluntarily complete questionnaires on a regular basis so that researchers can assess changes in behaviour and attitudes.

Question 32

describe an omnibus survey

Answer 32

The voluntary participation of respondents in routine research surveys that allow marketers to add a small number of questions to an existing survey to receive cost-effective data.

Question 33

what is a marketing experiment

Answer 33

In marketing, changing a variable involved in a customer purchase to find out what happens. - responding variable is usually marketing mix elements (these are marketing drivers) - independent variable is usually change in the purchases

Question 34

A/B testing or split testing

Answer 34

marketing experiment wherein you split your audience to test a number of variations of a campaign an determine which performs better

Question 35

Advantages and disadvantages of primary data

Answer 35

ad - more flexible, more specific to problem being studied dis- primary data far more costly and time consuming to collect than secondary data

Question 36

Describe step 4 (Develop findings) in the basic market research process

Answer 36

- analyzing data often involves very sophisticated and complex methods. Examples include big data, data analytics, ai, data mining, and predictive modelling

Question 37

Describe big data

Answer 37

broad term used to describe large amounts of data collected from a variety of sources and analyzed with an increasingly sophisticated set of tech.

Question 38

Define information technology

Answer 38

Includes all of the computing resources that collect, store, and analyze data.

Question 39

We live today in an era of data ______

Answer 39

deluge (flood) - the challenge facing managers is not data collection or storage, but how to transform the huge amount of data into useful information

Question 40

data is transformed into useful information using

Answer 40

data analytics

Question 41

what is data visualization

Answer 41

the presentation of the results of the analysis

Question 42

what is an intelligent enterprise

Answer 42

an organization that successfully converts data into useful information that answers marketing questions and leads to effective marketing actions

Question 43

data mining definition

Answer 43

the processing of large amounts of data using sophisticated software to find insightful correlations and patterns that lead to better business decisions.

Question 44

what is predictive modelling

Answer 44

marketers can foresee consumer behavior Based on statistical models that use data mining and probability analysis to foretell outcomes

Question 45

Define analytics

Answer 45

the process of taking metrics data and applying smart thinking and tech to gain actionable insights that can help make better business decisions

Question 46

An analytics platforms shows what

Answer 46

where the company is today, answers questions, provides customer insights, and predicts patterns that can improve marketing performance

Question 47

What is descriptive analytics

Answer 47

A type of analytics that focuses on what has happened. --> includes web analytics - The measurement and analysis of website data, looking at elements such as page views, time on site, bounce rate, new visitors, returning visitors, and referral traffic. --> includes social analytics - The real-time measurement, interaction, and analysis of social media to assess social media campaign performance, message resonation and amplification, consumer sentiment, and common themes. --> social listening - Research that monitors public online consumer conversations on social media sites such as social networks, blogs, and forums. -->includes RFM analytics - The rating of customers on the basis of how recently products were purchased (recency), how often products were purchased (frequency), and the dollar value of the transactions (monetary value).

Question 48

What is predictive analytics

Answer 48

The combination of data from varied sources to reveal patterns that are modelled to predict what might happen in the future.

Question 49

metrics

Answer 49

numerical data that is collected and grouped to track performance

Question 50

brand development index (BDI)

Answer 50

An index that shows how well a brand’s sales are developed in a region relative to the region’s population size.

Question 51

Describe step 5 (take marketing actions) in the basic market research process

Answer 51

- someone has to identify marketing actions, put them into effect, and monitor how the decisions turn out -evaluate the decision itself and the decision process used

Question 52

sales forecast

Answer 52

The total number of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.

Question 53

Sales forecasting techniques

Answer 53

1. judgements of the decision maker - direct or lost horse forecast 2. surveys of knowledgeable groups - buyers intentions forecast survey, or salesforce survey forecast 3. statistical methods - trend extrapolation

Question 54

direct forecast

Answer 54

estimating the value to be forecast without an intervening steps. ex. how many litres of milk should i buy

Question 55

lost horse forecast

Answer 55

start with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they a have a positive or negative impact, and making the final forecast

Question 56

buyers intention survey forecast

Answer 56

asks prospective customers if they are likely to buy the product during some future time period

Question 57

trend extrapolation

Answer 57

involves extending a pattern observed in past data into the future. When described with a straight line it is linear trend extrapolation