MKTG 390, Exam 3 1. Marketers often mislead consumers by misrepresenting marketing research findings in ads and sales presentations. What are six ways in which they do this? (1). Incomplete or misleading reporting of survey or product testing results; (2). Reporting only the percentage of survey respondents answering in a given way (for example, “55% of those surveyed said…. ”) but not the absolute numbers or the sample size; (3). Misleading specification of the competitors tested in reported comparative tests; (4).
Using survey techniques that confuse respondents or bias their answers, but not revealing the questions and interview procedure. Sometimes corporate researchers intentionally design the company’s product testing and marketing research studies so as to generate deceptive findings. (1). Testing the company’s drug against a comparison during theta is well known not to work well. (2). Testing the company’s drug against too low a dose of the comparison product, to make the company’s drug appear “more effective” , or against too high a dose of the comparison product to make the company’s drug appear “less toxic”. 3). Reporting only that part of a product trial that favors the company’s drug, and hiding the rest of the results. (4). Funding many different studies about the same product but reporting only the one or two that make the company’s product look desirable. 1) Tell lies about risks or limitations 2) Omit disclosing risks or limitations entirely 3) Bury or conceal disclosures among other information 4) Report only % of respondents who answer in a specific way 5) Incomplete reporting of testing results 6) Using survey techniques that confuse respondents 2.
Explain the “number of subgroups” method for determining sample size. In any sample size determination problem, consideration must be given to the number and anticipated size of various subgroups of the total sample that must be analyzed and about which statistical inferences must be made. For example, a researcher might decide that a sample of 400 is quite adequate overall. However, if male and female respondents must be analyzed separately and the sample is expected to be 50 percent male and 50 percent female, then the expected sample size for each subgroup is only 200.
Is this number adequate for making the desired statistical inferences about the characteristics of the two groups? If the results are to be analyzed by both sex and age, the problem gets even more complicated. Assume that it is important to analyze four subgroups of the total sample: men under 35, men 35 and over, women under 35, and women 35 and over. If each group is expected to make up about 25 percent of the total sample, a sample of 400 will include only 100 respondents in each subgroup.
The problem is that as sample size gets smaller, sampling error gets larger, and it becomes more difficult to tell whether an observed difference between two groups is a real difference or simply a reflection ofsampling error. Other things being equal, the larger the number of subgroups to be analyzed, the larger the required total sample size. It has been suggested that a sample should provide, at a minimum, 100 or more respondents in each major subgroup and 20 to 50 respondents in each of the less important subgroups. Number of Subgroups to Be Analyzed . Subgroups–the number and anticipated size of various subgroups of the total sample that must be analyzed and statistical inferences must be made should be seriously considered. b. Sample Size–dependent on the number of subgroups to be analyzed–the more needed the larger the required total sample size. c. Minimum Needs–100 or more respondents in each major subgroup and 20 to 50 respondents in each of the less important subgroups. 3. You need to hire a marketing research firm to work with you on a new product research project.
Five factors you might consider in choosing among different research firms are the price they charge, their apparent honesty, their punctuality (ability to meet deadlines on a project), their flexibility, and their capacity to deliver the specified work. What are five other important factors for you to consider in making your choice? Briefly explain why each of these five factors is important. Maintains client confidentiality Provide high-quality output Responsive to the clients’ needs High quality-control standards Customer oriented in interaction with clients Keep clients informed throughout a project (1).
Maintains client confidentiality (2). Delivers against project specifications (3). Provides high-quality output (4). Is responsive to the client’s needs (5). Has high quality-control standards (6). Is customer oriented in interactions with client (7). Keeps the client informed throughout a project 4. What two aspects of a research firm’s chosen research method and data collection process can decrease the firm’s ability to meet a deadline for completing a research project? What two aspects of a research firm’s internal management operations can decrease the firm’s capacity to meet key deadlines for a research project? 1) A discussion of questionnaires would not be complete without mentioning their impact on costs and profitability. Factors affecting costs and profits include overestimating, overbidding, incidence rate, roadblocks to completed interviews, and premature interview terminations. (2) Generally research firms do not have design and analytical capabilities. This means that their clients may, on occasion, need to seek other providers to meet their fully service needs. It also could decrease the firms’ capacity to meet key deadlines for a research project. not pretty sure yet) 5. A research firm’s “flexibility” is an important factor for clients to consider in deciding whether to hire that firm. Why is flexibility important and what information would you seek to learn about a firm’s flexibility? Flexibility is important to see how a firm reacts in a crisis-management situation. Unexpected happenings occur often and flexibility shows how a firm will react to these situations. Flexibility also refers to a firm’s control over internal operations, and how they handle personnel issues, such as personnel turnover. . Research management has eight important goals. Three of these are (a) excellent communication, (b) staff development and retention, and (c) cost management. What are four other goals in successful research management? Briefly explain these four goals. (1). Organizing the supplier firm: large suppliers have separate departments for sampling, questionnaire programming, field, coding, tabulation, statistics, and sales? Even the client service staff may be separate from those who manage projects and write questionnaires and reports.
Each of these departments has a head who is expert in the functions of that department and manages work assignments within the department. So in response to problems like this, some companies are organizing by teams. (2). Data Quality Management: this is the most important objective of the research management. Marketing research managers can help assure high-quality data by having policies and procedures in place to minimize source of error. Marketing researchers must not only attempt to minimize error, but must also do a better job of explaining the term margin error.
Also, managers must have in place procedures to ensure the careful proofing of all text, chart, and graphs in written reports and other communications provided to the clients. (3). Time management:it is very important becasue clients often have a specified time schedule that they must meet. Two problems that can play havoc with time schedules are inaccuracies in estimates of the incidence rate and the interview length. The project manager must have early information regarding whether or not a project can be completed on time.
Time management requires that systems be put in place to inform management as to whether or not the project is on schedule. (4). Client Profitability Management: while marketing research departments may be able to focus on doing “on-demand” projects for internal clients, marketing research suppliers have to think about profitability. Customer Research Incorporated (CRI) divided its clients into four categories based on the client’s perceived value to CRI’s bottom line. CRI spent too much time and too many valuable employee resources on too many unprofitable customers. (5).
Outsourcing:One way that research firms are cutting costs is outsourcing. The term outsourcing as used in this text is having personnel in another country perform some, or all, of the functions involved in a marketing research project. When a research firm sets up a wholly-owned foreign subsidiary, it is called captive outsourcing. Simple outsourcing is where a domestic research company enters into a relationship with a foreign company that provides a variety of marketing research functions. For example, Cross-Tab Services of Mumbai, India, offers online survey programming, data processing, data analysis, and other services.
Other services that are beginning to be outsourced are data management and panel management. A number of issues need to be considered when one is outsourcing, as shown in Exhibit 15. 10. India is most likely the world leader in marketing research outsourcing firms. Over 110 marketing research outsourcing firms in India (noncaptive) employ over 9,000 people. The country’s revenues Research management has seven important goals beyond excellent communication: building an effective organization, assurance of data quality, adherence to time schedules, cost control, client profitability management, and staff management and development. ) Building an effective organization–having an organization in which people work in their areas of highest strength (technical people doing tech stuff and charismatic people doing customer service activities) 2) Assurance of data quality–to ensure the integrity of the data produced 3) Adherence to time schedules (time management)–keep the project on schedule with specific time schedules the client has specified 4) Client profitability management–projects for clients are a priority but the bottom line is the most important; make sure the clients you’re serving are maximizing profitability and not stretching yourself too thin. . To retain key staff members, a research firm can help them develop their professional skills and meet their goals. What are three specific things a research supply firm can do to help retain key marketing research staff members, beyond paying them well? a. Conduct regular performance reviews that give continuing feedback on a job well done—or offer ways to improve. Many staff members think their bosses play favorites during performance reviews. So department heads try to use clear performance criteria for each position and offer objective appraisals for everyone. . Offer public recognition for great work. Some groups mention great work during staff meetings; post client comments on a “wall of fame” in the department; have bosses send personal letters to staff members at home, praising their work; hold pizza parties for teams that have performed “above and beyond”; or simply have the head of the department stop by a staff member’s office to offer congratulations and thanks. c. Give differential pay raises that recognize superior performance.
While across theboard, uniform pay increases are often used (because they are the easiest to administer), they do not recognize the high performers—and they allow the lower performers to believe they are doing adequate work. d. Vary the work. In order to keep everyone interested, some research groups identify one-off projects and then allow staff members to volunteer for them. Examples of special projects could include a project that will feed into the firm’s strategic plans, formation of a high-visibility cross-functional team, or a project that uses a new technique or addresses an unusually interesting topic. 8.
What is “stratified sampling”? What are the three steps involved in implementing a stratified sample? A stratified sampling procedure divides a population by a specific strata (some demographic characteristic pertinent to the population of interest) then people are chosen randomly within each stratum, usually proportionate to the total number of people in each stratum. Stratified samples are probability samples that are distinguished by the following procedural steps: (1). The original, or parent, population is divided into two or more mutually exclusive and exhaustive subsets (for example, male and female). (2).
Simple random samples of elements from the two or more subsets are chosen independently of each other. Three steps are involved in implementing a properly stratified sample: (1). Identify salient (important) demographic or classification factors. Factors that are correlated with the behavior of interest. For example, there may be reason to believe that men and women have different average consumption rates of a particular product. To use gender as a basis for meaningful stratifi cation, the researcher must be able to show with actual data that there are significant differences in the consumption levels of men and women.
In this manner, various salient factors are identifi ed. Research indicates that, as a general rule, after the six most important factors have been identifi ed, the identification of additional salient factors adds little in the way of increased sampling efficiency. (2). Determine what proportions of the population fall into the various subgroups under each stratum (for example, if gender has been determined to be a salient factor, determine what proportion of the population is male and what proportion is female).
Using these proportions, the researcher can determine how many respondents are required from each subgroup. However, before a final determination is made, a decision must be made as to whether to use proportional allocation or disproportional, or optimal, allocation. (3). Select separate simple random samples from each stratum. This process is implemented somewhat differently than traditional simple random sampling. Assume that the stratified sampling plan requires that 240 women and 160 men be interviewed.
The researcher will sample from the total population and keep track of the number of men and women interviewed. At some point in the process, when 240 women and 127 men have been interviewed, the researcher will interview only men until the target of 160 men is reached. In this manner, the process generates a sample in which the proportion of men and women conforms to the allocation scheme derived in step 2. Stratified samples are not used as often as one might expect in marketing research. The reason is that the information necessary to properly stratify the sample is usually not available in advance.
Stratification cannot be based on guesses or hunches but must be based on hard data regarding the characteristics of the population and the relationship between these characteristics and the behavior under investigation. Stratified samples are frequently used in political polling and media audience research. In those areas, the researcher is more likely to have the information necessary to implement the stratification process. 9. The American Marketing Association’s Code of Professional Ethics cites data collection principles that all marketing research firms should follow.
One is “treat the respondent with respect and do not influence a respondent’s opinion or attitude on any issue through direct or indirect attempts, including the framing of questions. ” What are six other data collection principles that are cited in the AMA Code? Explain each of these briefly. (2). will conduct themselves in a professional manner and ensure privacy and confidentiality. (3). will ensure that all formulas used during bidding and reporting during the data collection process conform with the MRA/Council of American Survey Research Organizations (CASRO) Incidence Guidelines. 4). will make factually correct statements to secure cooperation and will honor promises made during the interview to respondents, whether verbal or written (5). will give respondents the opportunity to refuse to participate in the research when there is a possibility they may be identifiable even without the use of their name or address (e. g. , because of the size of the population being sampled). (6). will not use information to identify respondents without the permission of the respondent except to those who check the data or are involved in processing the data.
If such permission is given, the interviewer must record it, or a respondent must do so, during all Internet studies, at the time the permission is secured. (7). will adhere to and follow these principles when conducting online research: ¦ Respondents’ rights to anonymity must be safeguarded. ¦ Unsolicited e-mail must not be sent to those requesting not to receive any further e-mail. ¦ Researchers interviewing minors must adhere to the Children’s Online Privacy Protection Act (COPPA). ¦ Before collecting, using, or disclosing personal information from a child, the researcher must obtain verifiable parental consent from the child’s parent. 8). for Internet research, will not use any data in any way contrary to the provider’s published privacy statement without permission from the respondent. (9). will respect the respondent’s right to withdraw or refuse to cooperate at any stage of the study and will not use any procedure or technique to coerce or imply that cooperation is obligatory. (10)will obtain and document respondent consent when it is known that the personally identifiable information of the respondent may be passed by audio, video, or Interactive Voice Response to a third party for legal or other purposes. 11). will obtain permission and document consent of a parent, legal guardian, or responsible guardian before interviewing children 13 years of age or younger. Prior to obtaining permission, the interviewer should divulge the subject matter, length of interview, and other special tasks that may be required of the respondent. (12). will ensure that all interviewers comply with any laws or regulations that may be applicable when contacting or communicating to any minor (18 years old or younger) regardless of the technology or methodology utilized. (13). ill not reveal any information that could be used to identify clients without their written authorization. (14). will ensure that companies, their employees, and subcontractors involved in the data collection process adhere to reasonable precautions so that multiple surveys are not conducted at the same time with a specific respondent without explicit permission from the sponsoring company or companies. (15). will consider all research materials provided by the client or generated as a result of materials provided by the client to be the property of the client.
These materials will not be disseminated or disposed of without the verbal or written permission of the client. (16). will, as time and availability permit, give their client the opportunity to monitor studies in progress to ensure research quality. (17). will not represent a nonresearch activity to be opinion and marketing research, such as: ¦ the compilation of lists, registers, or data banks of names and addresses for any nonresearch purposes (e. g. , canvassing or fund raising). ¦ industrial, commercial, or any other form of espionage. ¦ the acquisition of information for use by credit rating services or similar organizations. sales or promotional approaches to the respondent. ¦ the collection of debts. Companies engaged in data collection: (1) Will treat the respondent and the respondent’s opinions or beliefs with respect, and not influence a respondent’s opinion or belief on any issue through direct or indirect behavior, including the framing of questions or verbal or non-verbal reactions to what a respondent says. (2) Will ensure privacy and confidentiality (3) Will ensure that respondents are given information needed for “informed consent” to participate, e. , purpose, tasks, type of questions, length, right to refuse/withdraw. (4) Will make truthful statements to secure cooperation and will honor promises made before and during the interview to respondents, verbal or written (5) Will explain, promise and respect the respondent’s right to withdraw or refuse to answer at any stage of the study, and will not try to coerce or to imply that cooperation and completion is obligatory. (6) Will give respondents the opportunity to refuse to participate when there is a possibility they may be identifiable even without using name or address (e. . , a small population of respondents). (7) Will obtain permission and document consent of a parent, legal guardian, or responsible guardian before interviewing any person under 13 years old. (8) Will disclose the study’s subject matter, length of interview, and special tasks required of before participation begins, to parents and guardians of children under 13. (9) Will not misrepresent as opinion research or marketing research any non-research activity. (10)Will not disclose to respondents any information that could identify a client without the client’s permission. ) Ensure privacy and confidentiality. 2) Assure that respondents are given information needed for “informed consent” to participate, e. g. , purpose, tasks, types of questions, length, right to refuse/withdraw. 3) Make truthful statements to secure cooperation and honor promises made before and during the interview to respondents verbal or written. 4) Explain and promise respect of the respondent’s right to withdraw or refuse to answer any stage of the study and will not try to coerce or to imply that cooperation and completion is obligatory. ) Give respondents the opportunity to refuse to participate when there is a possibility they may be identifiable even without using their name or address. 6) Will obtain permission and document consent of a parent, legal guardian, or responsible guardian before interviewing any person under 13 years old. 10. Snowball sampling is one method for doing “non-probability sampling”. Explain how and why “snowball sampling” is done. How? In snowball samples, sampling procedures are used to select additional respondents on the basis of referrals from initial respondents.
This procedure is used to sample from low-incidence or rare populations—that is, populations that make up a very small percentage of the total population. The costs of finding members of these rare populations may be so great that the researcher is forced to use a technique such as snowball sampling. For example, suppose an insurance company needed to obtain a national sample of individuals who have switched from the indemnity form of healthcare coverage to a health maintenance organization in the past 6 months. It would be necessary to sample a very large number of consumers to identify 1,000 that fall into this population.
It would be far more economical to obtain an initial sample of 200 people from the population of interest and have each of them provide the names of an average of four other people to complete the sample of 1,000. Why? The main advantage of snowball sampling is a dramatic reduction in search costs. However, this advantage comes at the expense of sample quality. The total sample is likely to be biased because the individuals whose names were obtained from those sampled in the initial phase are likely to be very similar to those initially sampled.
As a result, the sample may not be a good cross section of the total population. There is general agreement that some limits should be placed on the number of respondents obtained through referrals, although there are no specific rules regarding what these limits should be. This approach may also be hampered by the fact that respondents may be reluctant to give referrals. Snowball Sampling–involves the selection of additional respondents on the basis of referrals from the initial respondents. a. Main advantage– the dramatic reduction in search costs. b.
Disadvantage–reduction in sample quality. Snowball sampling procedures ask respondents to recommend other individuals who share the characteristic of interest. If you are looking for individuals who have been a victim of a particular crime, and you know there is a victim support network in the area, you might use this technique. There may be no other way to obtain the respondent’s names. The danger associated with this type of sample is, of course, the bias that may occur because of the method. The sample may not be a good cross section, also respondents may be reluctant to give referrals. 1. What are the first five steps in the questionnaire design process? Explain briefly what each step involves. 1. Determine survey objectives, resources, and constraints: know objective and information want to get out of the survey 2. Determine the data collection method: Way to gather info such as internet, phone ect… 3. Determine the question response format: open ended, yes/no, multiple choice (check al that apply to you, age/ethnicity questions), scaled-response questions 4. Decide on the question wording: clear, avoids bias, willingness to answer 5.
Establish questionnaire flow and layout: screening questions to find people qualified for the survey, first question brings in interest, capitalize important things Step 1: Determine Survey Objectives, Resources, and Constraints The research process often begins when a marketing manager, brand manager, or new product development specialist has a need for decision-making information that is not available. a. Survey objectives–should be spelled out as clearly and precise as possible, as well as the available resources and budget and other constraints.
Step 2: Determine the Data-Collection Method Given the variety of ways in which survey data can be gathered, such as via the Internet, telephone, mail, or self-administration, the research method will have an impact on questionnaire design. An in-person interview in a mall will have constraints (such as a time limitation) not encountered with an Internet questionnaire. A self-administered questionnaire must be explicit and is usually rather short; because no interviewer will be present, respondents will not have the opportunity to clarify a question.
A telephone interview may require a rich verbal description of a concept to make certain the respondent understands the idea being discussed. In contrast, an Internet survey can show the respondent a picture or video or demonstrate a concept. Step 3: Determine the Question Response Format Once the data-collection method has been determined, a decision must be made regarding the types of questions to be used in the survey. Three major types of questions are used in marketing research: open-ended, closed-ended, and scaled-response questions. Step 4: Decide on the the Question Wording 1). Make Sure the Wording Is Clear a. The questions must be stated so that it means the same thing to all respondents. b. Clarity is the goal. The questionnaire designer must use terminology native to the target respondent group and not use research jargon. It should custom-tailor the wording to the target respondent group. c. State the purpose of the survey. d. Avoid double-barreled questions–two questions in one. (2). Avoid Biasing the Respondent a. Leading questions. b. Biased wording of the question. c. Sponsor identification early in the interviewing process. (3).
Consider the Respondent’s Ability to Answer the Questions a. A respondent may have never acquired the information to answer the question. b. A respondent may have forgotten details. c. To avoid this problem, keep the referenced time periods short. (4). Consider the Respondent’s Willingness to Answer the Question. a. Embarrassing topic must be phrased in a careful manner to minimize measurement error. b. Ask the question in the third person. c. Ask about “most people”. d. Using counterbiasing statements technique–state that the behavior or attitude is not unusual prior to asking the question.
Step 5: Establish Questionnaire Flow and Layout (1). Use Screening Questions to Identify Qualified Respondents (2). Begin with a Question That Gets the Respondent’s Interest (3). Ask General Questions First (4). Ask Questions That Require “Work” in the Middle (5). Insert “Prompters” at Strategic Points (6). Position Sensitive, Threatening, and Demographic Questions at the End (7). Allow Plenty of Space for Open-Ended Responses (8). Put Instructions in Capital Letters (9). Use a Proper Introduction and Closing 12. Step 6 in the questionnaire design process is “Evaluate the questionnaire”.
What are three key issues in evaluating a draft of the questionnaire? (1) Is the Question Necessary? Perhaps the most important criterion for this phase of questionnaire development is the necessity for a given question. Sometimes researchers and brand managers want to ask questions because “they were on the last survey we did like this” or because “it would be nice to know. ” Excessive numbers of demographic questions are very common. Asking for education data, numbers of children in multiple age categories, and extensive demographics on the spouse simply is not warranted by the nature of many studies.
Each question must serve a purpose. Unless it is a screener, an interest generator, or a required transition, it must be directly and explicitly related to the stated objectives of the particular survey. Any question that fails to satisfy at least one of these criteria should be omitted. (2) Is the Questionnaire Too Long? At this point, the researcher should role-play the survey, with volunteers acting as respondents. Although there is no magic number of interactions, the length of time it takes to complete the questionnaire should be averaged over a minimum of five trials.
Any questionnaire to be administered in a mall or over the telephone should be a candidate for cutting if it averages longer than 20 minutes. Sometimes mall-intercept interviews can run slightly longer if an incentive is provided to the respondent. Most Internet surveys should take less than 15 minutes to complete. Common incentives are movie tickets, pen and pencil sets, and cash or checks. The use of incentives often actually lowers survey costs because response rates increase and terminations during the interview decrease.
If checks are given out instead of cash, the canceled checks can be used to create a list of survey participants for follow-up purposes. A technique that can reduce the length of questionnaires is called a split-questionnaire design. It can be used when the questionnaire is long and the sample size is large. The questionnaire is split into one core component (such as demographics, usage patterns, and psychographics) and a number of subcomponents. Respondents complete the core component plus a randomly assigned subcomponent. (3) Will the Questions Provide the Information Needed to Accomplish the Research Objectives?
The researcher must make certain that the questionnaire contains sufficient numbers and types of questions to meet the decision-making needs of management. A suggested procedure is to carefully review the written objectives for the research project and then write each question number next to the objective that the particular question will address. For example, question 1 applies to objective 3, question 2 to objective 2, and so forth. If a question cannot be tied to an objective, the researcher should determine whether the list of objectives is complete.
If the list is complete, the question should be omitted. If the researcher finds an objective with no questions listed beside it, appropriate questions should be added. Tips for writing a good questionnaire are provided in the Practicing Marketing Research feature on page 263. (1). Is the Question Necessary? a. Each question must serve a purpose. b. Is it directly and explicitly related to the stated objectives of the particular survey? (2). Is the Questionnaire Too Long? a. Mall or telephone administered questionnaires should be limited to 20 minutes. b. Internet surveys should be less than 15 minutes. . Incentives can lower the cost of surveys because the response rates increase and terminations decrease. (3). Will the Qu
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