McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual
CHAPTER 1 CHAPTER SUMMARY
This chapter serves as an introduction to marketing research. It starts by defining
Steps in Creating Market marketing research and then explaining its various roles. Social media has changed
the relationship between firms and their customers and this is briefly addressed.
Insights and the Growing Role Also addressed is the role of analytics in marketing and marketing research.
of Marketing Analytics The chapter then describes the research process. This begins with a description of
the problem (or opportunity) definition process. It then moves to a discussion of
what information/data is required for the research and how ultimately a decision
LEARNING OBJECTIVES will be made. Next, the chapter discusses the types of research that can be
performed, such as exploratory or secondary data analysis. Once the data needs
1. Comprehend the marketing environment within which managers must have been identified, the book discusses checking to see if that data already exists.
make decisions. If it does, the firm does not need to spend time and money to generate the data.
2. Examine the growing impact of marketing analytics. Next, it describes the research objectives and how to convert these to hypotheses.
3. Analyze the problem definition process.
4. Learn the steps involved in the marketing research process. Next, the chapter discusses basic methods of research like surveys, observations,
5. Understand the components of the research request. and experiments. As part of this, it discusses sampling procedures, collecting the
6. Appreciate the importance of the marketing research proposal. data, analyzing the data, and then reporting on the data.
7. Comprehend the impact of marketing analytics, big data, and the growth
of unsupervised learning. The chapter then discusses how to manage the research process. It describes the
8. Examine what motivates decision makers to use marketing research research request, an RFP, a proposal, and what to look for in a supplier. It then
information. explains the impact of ―big data‖ and marketing analytics. The chapter closes with
a discussion of what motivates managers and decision makes to actually use the
KEY TERMS resulting research information.
Big data Case analysis Casual studies
Descriptive function Descriptive studies Diagnostic function
Experience surveys Experiments Exploratory research
Hypothesis Management decision Marketing research
problem
Marketing research Marketing research online Marketing research
objective community problem
Marketing strategy Nonprobability sample Observation research
Opportunity identification Pilot studies Predictive function
Probability sample Request for proposal (RFP) Research design
Research request Situation analysis Structural data
Supervised learning Survey research Unstructured data
Unsupervised learning Variable
Copyright © 2021 John Wiley & Sons, Inc. 4-1 Copyright © 2021 John Wiley & Sons, Inc. 4-2
,McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual
completely applicable at the local level. Marketing research could help the owner
QUESTIONS FOR REVIEW & become familiar with the favorite foods in the local geographic market.
CRITICAL THINKING
4. Why is marketing research important to marketing executives? Give several
1. The role of marketing is to create exchanges. What role might marketing reasons.
research play in facilitating the exchange process? Marketing research is important to marketing executives because it gives them
Exchange can take place when two or more parties have something of potential value additional information on which to make decisions. Some of that information
to each other and can communicate and deliver these desired goods or services. includes:
Marketing research helps these parties to determine what goods or services are desired It discovers trends in the market.
by other parties and at what price level these goods and services become of value. In
It gauges customer attitudes toward products, services, and advertising.
other words, marketing research aids managers in determining who wants benefits
It explains what effect changing an element of the marketing mix would have on
from goods or services and where, when, and at what price an exchange can occur.
sales.
It predicts the results of a planned marketing decision.
It determines the level of services customers‘ desire at a given price.
2. Marketing research has traditionally been associated with manufacturers of
consumer goods. Today an increasing number of organizations, both profit and
nonprofit, are using marketing research. Why do you think this trend exists?
Give some examples. 5. What differences might you note among marketing research conducted for (a) a
retailer, (b) a consumer goods manufacturer, (c) an industrial goods
Marketing research helps all organizations follow the principle of the ―marketing manufacturer, and (d) a charitable organization?
concept.‖ Profit-making organizations face increasing amounts of competition from
U.S. companies, as well as from global companies. Also, both profit-making and Each of these organizations would use marketing research to help accomplish the
nonprofit organizations are serving an increasingly diverse clientele. Marketing strategic mission of their organization or the goals that were determined to be most
research helps to identify target customers and their needs in a rapidly changing important. For example:
environment. A retailer might use marketing research to track trends in demographics, to determine
effective advertising strategies, and to find products or services desired by the
customer.
3. Comment on the following statement by the owner of a restaurant in a A consumer goods manufacturer might use marketing research to help determine the
downtown area: ―I see customers every day whom I know on a first-name basis. probability of success of a new product or to keep current on its competitors‘
I understand their likes and dislikes. If I put something on the menu and it activities and success. It might also use it to ascertain the best target market for
doesn’t sell, I know that they didn’t like it. I also read the magazine Modern current products.
Restaurants, to keep up with industry trends. This is all of the marketing
research that I need to do.‖ An industrial goods manufacturer might use marketing research to project future
needs of customers or to determine the level of products that will be demanded.
This restaurant owner may know customers by name, but the assertion about
understanding their tastes may be over-confident. An item on the menu may not sell A charitable organization might use marketing research to determine what services
because the customers are not familiar with it. Or, it may be perceived as too are most needed in a demographic target market and to find the most effective vehicle
expensive. There could be many reasons why a product might not sell as well as the for delivering those services. It might also use marketing research to identify potential
owner wants it to. By conducting marketing research, the owner could better donors and to find the most effective way to appeal to them.
determine the preferences of customers and potential customers. This would save the
money, effort, and time of changing the menu selection. While a national magazine
can determine national trends in the restaurant business, these trends are not always
Copyright © 2021 John Wiley & Sons, Inc. 4-3 Copyright © 2021 John Wiley & Sons, Inc. 4-4
,McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual
6. Comment on the following: Ralph Moran is planning to invest $1.5 million in a 9. Explain the concept of Big Data.
new restaurant in Saint Louis. When he applied for a construction financing Big data is the accumulation and analysis of massive quantities of information that is
loan, the bank officers asked whether he had conducted any research. Ralph especially, but not exclusively, related to human behavior and interactions.
replied, ―I checked on research and a marketing research company wanted
$20,000 to do the work. I decided that with all the other expenses of opening a
new business, research was a luxury that I could do without.‖
11. How has the Internet changed the field of marketing research?
If Mr. Moran is willing to spend $1.5 million on a new restaurant without conducting
marketing research, he should be prepared to lose that money. Without marketing The reach, economy, and speed of the Internet have had significant effects in the
research, he may not know his potential customers or their desires. Nor will he know recent past, and promise to have even more profound impact in the future. Secondary
if those desires or needs are currently being met by existing businesses, or at what information for exploratory research can be obtained from literature reviews and Web
price or quality level the customers would be willing to try a new restaurant. His pages. The capacity for capture and communication of primary data will make
advertising may be at best ineffective or at the worst offensive. For example, what if descriptive research more effective. Consumers can be surveyed on-line, and the
he were to advertise barbecue pork ribs in an area that is predominantly Jewish? results analyzed instantly. Project sponsors and researchers will be able to
Given all of this, $20,000 seems a small price to pay to increase the chances of communicate and collaborate more easily. In addition, research results and reports can
success of a business with so large an investment. be disseminated over a wide audience, again in real-time.
12. Explain the concept of Big Data.
7. Why do you think that marketing analytics has become so important to
businesses? Big Data as the accumulation and analysis of massive quantities of information
especially related to human behavior and interactions
Marketing Analytics is the discovery, interpretation, and communication of
meaningful patterns in data. These insights enable marketing managers to understand
markets and create the right marketing mix to drive customer satisfaction and 10. The definition of the research problem is one of the critical steps in the research
retention. This is especially important since it allows managers to explore new process. Why? Who should be involved in this process?
products and ideas without the need to produce prototypes or first performed detailed Correctly defining the problem is the crucial first step in the marketing research
research. process. If the research problem is defined incorrectly, the research objectives will
also be wrong, and the entire marketing research process will be a waste of time and
money.
8. What is structured and unstructured data? Give examples of each.
Clearly, marketing managers should be involved in this process. For larger issues,
Structured data is defined data types that are found in numeric fields. Examples higher level managers should be involved as well. Managers and researchers at the
include: income, age, number in household, buying frequency, and purchase research firm will be involved to help the managers define and refine the research
transactions. process.
Unstructured data does not have a predefined data model or is not organized in a
predefined manner. Examples include social media postings, YouTube videos
watched, tweets, in-store aisle cameras, and sensor data.
Copyright © 2021 John Wiley & Sons, Inc. 4-5 Copyright © 2021 John Wiley & Sons, Inc. 4-6
, McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual
11. What role does exploratory research play in the marketing research process? 13. Critique the following methodologies and suggest more appropriate alternatives:
How does exploratory research differ from other forms of marketing research? a. A supermarket is interested in determining its image. Cashiers drop a short
Exploratory research is preliminary research conducted to increase the understanding questionnaire into the grocery bag of each customer prior to bagging the
of a concept, to clarify the exact nature of the problem to be solved, or to identify groceries.
important variables to be studied. This would only reach customers who continue to shop at the supermarket. Any
Exploratory research is different from other forms of marketing research because the customers who had concerns about their image might not shop there and would
process is not well-defined at the start of the research. Rather, much exploratory not be reached by the survey. Additionally, the same customer might be surveyed
research is highly flexible, with researchers following ideas, clues, and hunches as more than once and the response rate would likely be low.
long as time and money constraints permit. A better approach would be to begin by identifying the area from which the
supermarket is likely to draw customers and the characteristics of customers
within that area. With that information, a research method could be designed to
12. Give some examples of symptoms of problems and then suggest some underlying reach these.
real problems.
b. To assess the extent of its trade area, a shopping mall stations interviewers in
A symptom is a phenomenon that occurs because of the existence of something else. the parking lot every Monday and Friday evening. After people park their
For example, managers often talk about the problem of poor sales, declining profits, cars, interviewers walk up to them and ask them for their zip codes.
increased customer complaints, or defecting customers. Each of these is a symptom of
a deeper problem. That is, something is causing a company‘s customers to leave. This is an expensive and time consuming approach to find out information that
More examples include: should be much more readily available. Additionally, as designed, it would not
identify if customers who drive long distances do so for the mall overall or for
Lower college enrollment being a symptom of declining numbers of young adults individual stores.
of college age.
Assuming individual stores are willing to share the data, customer credit card
Lower voter turnout being a symptom of inconvenient poll locations and/or receipts would allow the malls to quickly-and-easily identify both their service
inconvenient poll hours. area and the extent to which the service area varies for different stores.
Lower sales being a symptom of declining income for the firm‘s customer base. c. To assess the potential for new horror movies starring alien robots, a major
studio invites people to call a 900 number and vote yes if they would like to
see such movies or no if they would not. Each caller is billed a $2 charge.
When a respondent must pay to participate in a survey, only those respondents
with very strong opinions are likely to participate.
One approach students might suggest is using the same type of poll, only using an
Internet approach so respondents do not pay to participate. While this is better, it
still requires the studio to identify potential respondents, will still reach only
respondents with strong opinions since they must take the time to log into the
website, and is vulnerable to someone with very strong opinions responding more
than once.
A better approach would be to survey movie goers who are leaving the type of
movie that would be of interest to viewers of this new movie to see if they are
interested.
Copyright © 2021 John Wiley & Sons, Inc. 4-7 Copyright © 2021 John Wiley & Sons, Inc. 4-8
CHAPTER 1 CHAPTER SUMMARY
This chapter serves as an introduction to marketing research. It starts by defining
Steps in Creating Market marketing research and then explaining its various roles. Social media has changed
the relationship between firms and their customers and this is briefly addressed.
Insights and the Growing Role Also addressed is the role of analytics in marketing and marketing research.
of Marketing Analytics The chapter then describes the research process. This begins with a description of
the problem (or opportunity) definition process. It then moves to a discussion of
what information/data is required for the research and how ultimately a decision
LEARNING OBJECTIVES will be made. Next, the chapter discusses the types of research that can be
performed, such as exploratory or secondary data analysis. Once the data needs
1. Comprehend the marketing environment within which managers must have been identified, the book discusses checking to see if that data already exists.
make decisions. If it does, the firm does not need to spend time and money to generate the data.
2. Examine the growing impact of marketing analytics. Next, it describes the research objectives and how to convert these to hypotheses.
3. Analyze the problem definition process.
4. Learn the steps involved in the marketing research process. Next, the chapter discusses basic methods of research like surveys, observations,
5. Understand the components of the research request. and experiments. As part of this, it discusses sampling procedures, collecting the
6. Appreciate the importance of the marketing research proposal. data, analyzing the data, and then reporting on the data.
7. Comprehend the impact of marketing analytics, big data, and the growth
of unsupervised learning. The chapter then discusses how to manage the research process. It describes the
8. Examine what motivates decision makers to use marketing research research request, an RFP, a proposal, and what to look for in a supplier. It then
information. explains the impact of ―big data‖ and marketing analytics. The chapter closes with
a discussion of what motivates managers and decision makes to actually use the
KEY TERMS resulting research information.
Big data Case analysis Casual studies
Descriptive function Descriptive studies Diagnostic function
Experience surveys Experiments Exploratory research
Hypothesis Management decision Marketing research
problem
Marketing research Marketing research online Marketing research
objective community problem
Marketing strategy Nonprobability sample Observation research
Opportunity identification Pilot studies Predictive function
Probability sample Request for proposal (RFP) Research design
Research request Situation analysis Structural data
Supervised learning Survey research Unstructured data
Unsupervised learning Variable
Copyright © 2021 John Wiley & Sons, Inc. 4-1 Copyright © 2021 John Wiley & Sons, Inc. 4-2
,McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual
completely applicable at the local level. Marketing research could help the owner
QUESTIONS FOR REVIEW & become familiar with the favorite foods in the local geographic market.
CRITICAL THINKING
4. Why is marketing research important to marketing executives? Give several
1. The role of marketing is to create exchanges. What role might marketing reasons.
research play in facilitating the exchange process? Marketing research is important to marketing executives because it gives them
Exchange can take place when two or more parties have something of potential value additional information on which to make decisions. Some of that information
to each other and can communicate and deliver these desired goods or services. includes:
Marketing research helps these parties to determine what goods or services are desired It discovers trends in the market.
by other parties and at what price level these goods and services become of value. In
It gauges customer attitudes toward products, services, and advertising.
other words, marketing research aids managers in determining who wants benefits
It explains what effect changing an element of the marketing mix would have on
from goods or services and where, when, and at what price an exchange can occur.
sales.
It predicts the results of a planned marketing decision.
It determines the level of services customers‘ desire at a given price.
2. Marketing research has traditionally been associated with manufacturers of
consumer goods. Today an increasing number of organizations, both profit and
nonprofit, are using marketing research. Why do you think this trend exists?
Give some examples. 5. What differences might you note among marketing research conducted for (a) a
retailer, (b) a consumer goods manufacturer, (c) an industrial goods
Marketing research helps all organizations follow the principle of the ―marketing manufacturer, and (d) a charitable organization?
concept.‖ Profit-making organizations face increasing amounts of competition from
U.S. companies, as well as from global companies. Also, both profit-making and Each of these organizations would use marketing research to help accomplish the
nonprofit organizations are serving an increasingly diverse clientele. Marketing strategic mission of their organization or the goals that were determined to be most
research helps to identify target customers and their needs in a rapidly changing important. For example:
environment. A retailer might use marketing research to track trends in demographics, to determine
effective advertising strategies, and to find products or services desired by the
customer.
3. Comment on the following statement by the owner of a restaurant in a A consumer goods manufacturer might use marketing research to help determine the
downtown area: ―I see customers every day whom I know on a first-name basis. probability of success of a new product or to keep current on its competitors‘
I understand their likes and dislikes. If I put something on the menu and it activities and success. It might also use it to ascertain the best target market for
doesn’t sell, I know that they didn’t like it. I also read the magazine Modern current products.
Restaurants, to keep up with industry trends. This is all of the marketing
research that I need to do.‖ An industrial goods manufacturer might use marketing research to project future
needs of customers or to determine the level of products that will be demanded.
This restaurant owner may know customers by name, but the assertion about
understanding their tastes may be over-confident. An item on the menu may not sell A charitable organization might use marketing research to determine what services
because the customers are not familiar with it. Or, it may be perceived as too are most needed in a demographic target market and to find the most effective vehicle
expensive. There could be many reasons why a product might not sell as well as the for delivering those services. It might also use marketing research to identify potential
owner wants it to. By conducting marketing research, the owner could better donors and to find the most effective way to appeal to them.
determine the preferences of customers and potential customers. This would save the
money, effort, and time of changing the menu selection. While a national magazine
can determine national trends in the restaurant business, these trends are not always
Copyright © 2021 John Wiley & Sons, Inc. 4-3 Copyright © 2021 John Wiley & Sons, Inc. 4-4
,McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual
6. Comment on the following: Ralph Moran is planning to invest $1.5 million in a 9. Explain the concept of Big Data.
new restaurant in Saint Louis. When he applied for a construction financing Big data is the accumulation and analysis of massive quantities of information that is
loan, the bank officers asked whether he had conducted any research. Ralph especially, but not exclusively, related to human behavior and interactions.
replied, ―I checked on research and a marketing research company wanted
$20,000 to do the work. I decided that with all the other expenses of opening a
new business, research was a luxury that I could do without.‖
11. How has the Internet changed the field of marketing research?
If Mr. Moran is willing to spend $1.5 million on a new restaurant without conducting
marketing research, he should be prepared to lose that money. Without marketing The reach, economy, and speed of the Internet have had significant effects in the
research, he may not know his potential customers or their desires. Nor will he know recent past, and promise to have even more profound impact in the future. Secondary
if those desires or needs are currently being met by existing businesses, or at what information for exploratory research can be obtained from literature reviews and Web
price or quality level the customers would be willing to try a new restaurant. His pages. The capacity for capture and communication of primary data will make
advertising may be at best ineffective or at the worst offensive. For example, what if descriptive research more effective. Consumers can be surveyed on-line, and the
he were to advertise barbecue pork ribs in an area that is predominantly Jewish? results analyzed instantly. Project sponsors and researchers will be able to
Given all of this, $20,000 seems a small price to pay to increase the chances of communicate and collaborate more easily. In addition, research results and reports can
success of a business with so large an investment. be disseminated over a wide audience, again in real-time.
12. Explain the concept of Big Data.
7. Why do you think that marketing analytics has become so important to
businesses? Big Data as the accumulation and analysis of massive quantities of information
especially related to human behavior and interactions
Marketing Analytics is the discovery, interpretation, and communication of
meaningful patterns in data. These insights enable marketing managers to understand
markets and create the right marketing mix to drive customer satisfaction and 10. The definition of the research problem is one of the critical steps in the research
retention. This is especially important since it allows managers to explore new process. Why? Who should be involved in this process?
products and ideas without the need to produce prototypes or first performed detailed Correctly defining the problem is the crucial first step in the marketing research
research. process. If the research problem is defined incorrectly, the research objectives will
also be wrong, and the entire marketing research process will be a waste of time and
money.
8. What is structured and unstructured data? Give examples of each.
Clearly, marketing managers should be involved in this process. For larger issues,
Structured data is defined data types that are found in numeric fields. Examples higher level managers should be involved as well. Managers and researchers at the
include: income, age, number in household, buying frequency, and purchase research firm will be involved to help the managers define and refine the research
transactions. process.
Unstructured data does not have a predefined data model or is not organized in a
predefined manner. Examples include social media postings, YouTube videos
watched, tweets, in-store aisle cameras, and sensor data.
Copyright © 2021 John Wiley & Sons, Inc. 4-5 Copyright © 2021 John Wiley & Sons, Inc. 4-6
, McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual McDaniel & Gates – Marketing Research, 12th Edition Instructor‘s Manual
11. What role does exploratory research play in the marketing research process? 13. Critique the following methodologies and suggest more appropriate alternatives:
How does exploratory research differ from other forms of marketing research? a. A supermarket is interested in determining its image. Cashiers drop a short
Exploratory research is preliminary research conducted to increase the understanding questionnaire into the grocery bag of each customer prior to bagging the
of a concept, to clarify the exact nature of the problem to be solved, or to identify groceries.
important variables to be studied. This would only reach customers who continue to shop at the supermarket. Any
Exploratory research is different from other forms of marketing research because the customers who had concerns about their image might not shop there and would
process is not well-defined at the start of the research. Rather, much exploratory not be reached by the survey. Additionally, the same customer might be surveyed
research is highly flexible, with researchers following ideas, clues, and hunches as more than once and the response rate would likely be low.
long as time and money constraints permit. A better approach would be to begin by identifying the area from which the
supermarket is likely to draw customers and the characteristics of customers
within that area. With that information, a research method could be designed to
12. Give some examples of symptoms of problems and then suggest some underlying reach these.
real problems.
b. To assess the extent of its trade area, a shopping mall stations interviewers in
A symptom is a phenomenon that occurs because of the existence of something else. the parking lot every Monday and Friday evening. After people park their
For example, managers often talk about the problem of poor sales, declining profits, cars, interviewers walk up to them and ask them for their zip codes.
increased customer complaints, or defecting customers. Each of these is a symptom of
a deeper problem. That is, something is causing a company‘s customers to leave. This is an expensive and time consuming approach to find out information that
More examples include: should be much more readily available. Additionally, as designed, it would not
identify if customers who drive long distances do so for the mall overall or for
Lower college enrollment being a symptom of declining numbers of young adults individual stores.
of college age.
Assuming individual stores are willing to share the data, customer credit card
Lower voter turnout being a symptom of inconvenient poll locations and/or receipts would allow the malls to quickly-and-easily identify both their service
inconvenient poll hours. area and the extent to which the service area varies for different stores.
Lower sales being a symptom of declining income for the firm‘s customer base. c. To assess the potential for new horror movies starring alien robots, a major
studio invites people to call a 900 number and vote yes if they would like to
see such movies or no if they would not. Each caller is billed a $2 charge.
When a respondent must pay to participate in a survey, only those respondents
with very strong opinions are likely to participate.
One approach students might suggest is using the same type of poll, only using an
Internet approach so respondents do not pay to participate. While this is better, it
still requires the studio to identify potential respondents, will still reach only
respondents with strong opinions since they must take the time to log into the
website, and is vulnerable to someone with very strong opinions responding more
than once.
A better approach would be to survey movie goers who are leaving the type of
movie that would be of interest to viewers of this new movie to see if they are
interested.
Copyright © 2021 John Wiley & Sons, Inc. 4-7 Copyright © 2021 John Wiley & Sons, Inc. 4-8
