The Observation Method

THE MARKETING RESEARCH PROCESS
CHAPTER 29
Mrs. Simone Seaton
Marketing Management
Objectives
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Explain the steps in designing and conducting
marketing research
Compare primary and secondary data
Collect and interpret marketing information
Identify the elements in a marketing research report
Key Terms
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Problem Definition
Primary Data
Secondary Data
Survey Method
Sample
Observation Method
Point-of-sale research
Experimental Method
Data Analysis
The Marketing Research Process
Defining the Problem
1.

The problem or research issue is identified and goals are set to
solve the problem
Obtaining Data
2.

Researchers obtain data from primary and secondary sources
Analyzing Data
3.

Researchers compile, analyze, and interpret the data.
Recommending Solutions
4.

Researchers come up with potential solutions to the problem and
present them in a report.
Applying the Results
5.

The research results are put into action.
Step 1 - Defining the Problem

Problem Definition
occurs when a business
clearly identifies a
problem and what is
needed to solve it.
Step 2 - Obtaining the Data

Data is collected and
examined in terms of
the problem or
problems being
studied.
Two Types of Data

Primary Data
 Data
obtained for the
first time an used
specifically for the
particular problem or
issue under study.

Secondary Data
 Data
that have
already been collected
for some purpose other
than the current study.
 Secondary are less
expensive to collect.
 Most cost-effective
way of getting data
How Primary Data are obtained

Survey Method

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A sample which is part of the target market is surveyed
Technological Method
On-line survey
 Focus group & chat sessions on the internet
 Automated phone calls


Interviews
Face to face
 Focus group interview under the
direction of a moderator
 Telephone
 Mail survey


The Observation Method

People’s actions are watched and recorded

Ex. Mystery shopping
How Primary Data are obtained (cont.)
 The
Observation Method (cont)
Advantage: Cost effective & customers act normally
Disadvantage: Unable to measure attitudes and motivation.
 Point-of-sale
research
Powerful form of research that combines natural observation with
personal interview to get people to explain buying behavior.
 After the observation, the shopper is approached and asked
questions.

 The

Experimental Method
Research technique in which a researcher observes the results of
changing one or more marketing variables while keeping other
variables constant under controlled conditions. Often used to test
new package designs, media usage, and new promotions.
How Secondary Data are obtained
 Internet
Sources
 Company’s
home page
 Digital dossiers – provides company profiles on public
corporations. Ex. Standard & Poor’s
 U.S.
and State Government Sources
 State
dept of commerce & small business development
centers can provide useful information
 Data collected by the U.S. Gov’t

Example: The Small Business Administration, U.S. Dept of
Commerce, U.S. Census Bureau, and the Bureau of Labor
Statistics
How Secondary Data are obtained (cont.)
 Specialized
Research Companies aka (Syndicated
Services)
 Sell

data which is available in print and electronic form
Example: MediaMark Research, Inc.
 Business
Publications & Trade Organizations
 Publications
such as Forbes, Business Week and the Wall
Street Journal.
 Trade Associations such as Advertising
Research Foundation, etc.
Step 3 - Analyzing the data

The Process of compiling,
analyzing, and interpreting
the results of primary and
secondary data collection .

Data Mining: A computer
process that uses statistical
methods to extract new
information from large
amounts of data
Step 4 – Recommending Solutions to
the Problem

The conclusions drawn from the
research are usually presented in
an organized and well-written
report.
Step 5 – Applying the Results

In evaluating the research,
managers find that the
research was inconclusive,
additional research is
needed, or the research
suggests specific course of
action.
Key Terms – Section 2
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Validity
Reliability
Open-ended Questions
Forced-choice questions
Constructing the Questionnaire
Questionnaires have to constructed in the correct
manner, they should have the following:
1. Validity

This exists if the questions asked on a questionnaire
measures what was intended to be measured.
2. Reliability

This exists when a research technique
produces nearly identical results in
repeated trials.
Writing Questions
Survey questions can be either:
1. Open-ended questions

Respondents construct their own responses
2. Forced-choice questions

Respondents have to choose answers from a list.
Basic Guidelines for Writing Questions
Each question should be written clearly and as
briefly as possible
Use the same ranking or rating scales for all similar
questions.
Formatting the Questionnaire
Questionnaire should have excellent visual
appearance and design to appeal to respondents.
The questionnaire should be short enough to be
answered quickly
Section headings should be included
Numbers should be on all questions
If the questionnaire involved more than one page,
“continued” should be placed at the bottom of the
page.
Administering the Questionnaire
All surveys should have deadlines for completion.
A mailed questionnaire should be sent first class with
a hand-signed cover letter.
The cover letter should explain the purpose of the
survey and the deadline for returning it.
A postage-paid return envelope should be included.
In-Person Surveys & Incentives
Surveys that are not mailed should have a brief
explanation of the survey purpose placed on the
survey
Incentives are given to encourage people to
participate
Questions
1.
2.
3.
4.
Identify in correct order the five steps used in
designing and conducting a research study.
What is the difference between primary and
secondary data? Why should researchers
consider one type first?
Identify the three methods used to collect primary
data.
What is the survey method of research? Describe
4 ways to conduct surveys.