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Basic Marketing Research: Volume 1 Handbook for Research Professionals Basic Marketing Research: Volume 1 Handbook for Research Professionals Official Training Guide from Qualtrics Scott M. Smith | Gerald S. Albaum © Copyright 2012, Qualtrics Labs, Inc. ISBN: 978-0-9849328-1-8 © 2012 Qualtrics Labs Inc. All rights reserved. This publication may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from Qualtrics. Errors or omissions will be corrected in subsequent editions. Author Information Scott M. Smith is Founder of Qualtrics, Professor Emeritus of Marketing, Brigham Young University. Professor Smith is a Fulbright Scholar and has written numerous articles published in journals such as Journal of Consumer Research, Journal of the Academy of Marketing Science, Journal of Business Ethics , International Journal of Marketing Research, Journal of Marketing Research, and Journal of Business Research. He is the author, co-author, or editor of books, chapters, and proceedings including An Introduction to Marketing Research. Qualtrics, 2010 (with G. Albaum); Fundamentals of Marketing Research. Thousand Oaks, CA : Sage Publishers 2005 (with G. Albaum); Multidimensional Scaling. New York: Allyn and Bacon 1989 (with F. J. Carmone and P. E. Green), and Computer Assisted Decisions in Marketing. Richard D. Irwin 1988 (with W. Swinyard). Gerald S. Albaum is Research Professor in the Marketing Department at the Robert O. Anderson Schools of Management, the University of New Mexico, Professor Emeritus of Marketing, University of Oregon. Professor Albaum has written numerous articles published in journals such as Journal of Marketing Research, Journal of the Academy of Marketing Science, Journal of the Market Research Society, Psychological Reports, Journal of Retailing, Journal of Business and Journal of Business Research. He is the author, co-author, or editor of twenty books including International Marketing and Export Management. Pearson Education Limited (UK), Fourth Edition, 2002 (with J. Strandskov, E. Duerr); Fundamentals of Marketing Research. Thousand Oaks, CA : Sage Publishers 2005 (with S.M. Smith); Research for Marketing Decisions. Englewood Cliffs, NJ: Prentice-Hall, Fifth Edition, 1988 (with P. Green and D. Tull) EDITOR: Michael Rutter PRODUCTION EDITORS: Marcilyn Mann, Tyler Page COPY EDITOR: Elizabeth Dabczynski-Bean COVER DESIGNER: Myntillae Nash Published by Qualtrics Labs, Inc. 2250 N. University Parkway #48C Provo, Utah, 84604, USA +1.801.374.6682 Website Address www.Qualtrics.com Qualtrics and the Qualtrics logos are registered trademarks of Qualtrics Labs, Inc. CONTENTS CHAPTER 1 CHAPTER 5 An Introduction to Marketing Research Interviewing Modes: Personal - Call - Send 1 What is Marketing Research? 59 Personal Interviews 2 Focusing Your Research 52 The Telephone Interview 5 The Basic Research Process 65 The Mail Interview 5 Stage 1: Formulating the Problem 68 Web & Email interviews 7 How to Formulate the Research Problem 70 Probability & Nonprobability Survey Approaches 9 Stage 2: Method of Inquiry 72 Strategies of Data Collection 10 Stage 3: Research Method 73 Summary 10 Stage 4: Research Design 10 Stage 5: Data Collection Techniques CHAPTER 6 11 Stage 6: Sample Design Qualitative Research and Observation 11 Stage 7: Data Collection 12 Stage 8: Analysis & Interpretation 75 Focus Groups 12 Stage 9: The Research Report 78 Indirect Interviews & Qualitative Research 12 Resource Planning for Your Study 81 Means-End Analysis 13 Summary 85 Observation 89 Summary CHAPTER 2 CHAPTER 7 Focusing Your Research Design Sampling Procedures in Research 15 Exploratory Studies 16 Descriptive Studies 91 Planning the Sample 17 Casual Studies 97 Non-Probability Sampling Procedures 18 Sources of Marketing Information 100 Probability Sampling Procedures 20 Types of Errors of Research Results 103 Determining Sample Size 21 Respondent Selection Errors 107 Summary 24 Errors Related to Accuracy of Responses 25 Methods for Dealing with Potential Errors CHAPTER 8 27 Choosing Research Design Experimentation 27 Summary 109 The Nature of Experimentation 118 Structuring Experiments Online CHAPTER 3 123 Summary Secondary Sources of Information 29 Reasons for Obtaining Secondary Information 125 CONCLUSION 31 Types of Secondary Information 32 Sources of External Secondary Data 126 REFERENCES & FURTHER READINGS 27 Summary 130 GLOSSARY OF TERMS CHAPTER 4 Conducting Interviews 151 SUBJECT INDEX 39 The Interview 44 Reducing Response and Non-Response Bias 51 Reducing Internet Survey Error 57 Summary 4 | INTRODUCTION It’s been said that information is power. This simple cliché underscores the market control and business success that information yields. Marketing research is about collecting information. While it applies to a wide range of situations, marketing research gives decision-makers the information they need to find solutions to business problems, such as the following • How satisfied are customers with your product and service offering? • How will customers react to a decision to change a price or product? • What are service representatives hearing from customers? • What responses to competition will bring you success in a given market? Simply put, the solution to most business problems can be found through marketing research. While the foundations of research have existed for thousands of years, technological advances during the last century have made a wider range of studies possible. Increased Internet access in the last 15 years has made research available at a much lower cost and, therefore, more accessible to organizations of all sizes. As a result, the research field has exploded with new opportunities and methodologies, and organizations have more information at their disposal than ever before. At Qualtrics, we see all types of researchers: from students starting their first studies to elite researchers who have been conducting studies since before Internet surveys were even possible. The goal of this text is to help Qualtrics users improve their understanding of research so they can improve future studies. This text, along with its companion volumes, is designed to provide an introduction to all things marketing research. This first book in the research series addresses research methods, while the second focuses on analyzing data and interpreting results. Two other volumes are the Qualtrics Guidebook, a users’ guide to Qualtrics and 50 Perfect Surveys, a basic introduction to survey building. | 5 This first volume starts with research basics. Chapter one provides an introduction to marketing research. It explains the nine-step process of how to design a study. Chapter two discusses how to focus your research and minimize error. Chapter three explores the secondary sources of information that are available to researchers. General principles for conducting interviews and minimizing error within them are the subject of chapter four. Chapter five, Interviewing Modes, delves deeper and explores specific modes of survey data collection. In chapter six, we discuss focus groups, hierarchical value mapping and other qualitative research methods. Chapter seven describes sampling procedures, including the computation of sample size, and we conclude with an introduction to the basics of experimental design in chapter eight. This book and its companion will be useful as you develop and implement your own research. An Introduction to Marketing Research 1 Successful entrepreneurs must adapt to an ever-changing business environment. In addition to the everyday aspects of running a business, a company has to consider materials, energy shortages, inflation, economic recessions, unemployment, and technological changes. A profitable company must also respond to the market with its products and advertising. A critical tool for measuring the market and keeping competitive is effective marketing research. In this chapter, we will introduce marketing research and discuss the tools you need to be successful. WHAT IS MARKETING RESEARCH? Think of marketing research as a search for information that will help you succeed in capturing market share. To begin, let’s consider the differences between fundamental and applied research. Fundamental research seeks to extend the boundaries of knowledge in a given area and doesn’t necessarily solve your immediate problems. Nevertheless, it has useful applications. It reveals information and relationships that could be useful at a later date. For example, The Green Yogurt company conducted fundamental research about consumer preferences for certain combinations of fruits, nuts, and caramel that differ in sugar type and strength of sweetness. Applied research gathers information to solve a specific problem or set of problems. For instance, customers engaged in a blind taste test would respond with what they specifically liked or disliked about a new yogurt product compared to a competitor’s product. You would use this information to tune your business plan, focus your advertising campaign, or improve your product. 2 | MARKetinG Research FOCUSING YOUR RESEARCH Marketing research focuses on understanding the customer, the company, and the competition. These relationships are at the core of marketing research. Companies must understand and respond to what customers want from their products. However, this relationship is always influenced by competitors and how their products are received by your market. Thus, you must clearly identify the customer, company,
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