Chapter 7 - Marketing Research: From Customer Insights to Actions

Marketing Research

The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.[cite: 3, 4]

Decision

A conscious choice from among two or more alternatives.[cite: 3]

Five-Step Marketing Research Approach

(1) Define the problem, (2) Develop the research plan, (3) Collect relevant information, (4) Develop findings, (5) Take marketing actions.[cite: 3, 4]

Research Objectives

Specific measurable goals the decision maker seeks to achieve in conducting the marketing research.[cite: 3, 4]

Measures of Success

Criteria or standards used in evaluating proposed solutions to the problem, leading to clear-cut marketing actions.[cite: 3, 4]

Constraints

The restrictions placed on potential solutions to a problem, such as time and money limitations.[cite: 3, 4]

Concepts

Ideas about products or services.[cite: 3, 4]

Methods

The approaches that can be used to collect data to solve all or part of a research problem.[cite: 3, 4]

Sampling

Selecting representative elements from a population in order to ask them questions and treat their answers as typical of that population.[cite: 3]

Statistical Inference

Drawing conclusions or generalizing the results from the data obtained from the sample taken to the larger population.[cite: 3]

Data

The facts and figures related to the project, which are divided into secondary and primary data.[cite: 3, 4]

Secondary Data

Facts and figures that have already been recorded prior to the project at hand.[cite: 3, 4]

Primary Data

Facts and figures that are newly collected for the project.[cite: 3, 4]

Observational Data

Facts and figures obtained by watching how people actually behave, which can be collected by mechanical, personal, and neuromarketing methods.[cite: 3, 4]

Ethnographic Research

A specialized form of observational research in which trained observers seek to discover subtle emotional reactions as consumers encounter products in their natural use environments.[cite: 3]

Neuromarketing

Observing responses to non-conscious stimuli using sensors to scan brain waves and understand consumers.[cite: 3, 4]

Questionnaire Data

Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.[cite: 3, 4]

Focus Groups

Informal sessions of 6 to 10 past, present, or prospective customers in which a discussion leader asks for opinions about the firm's and competitors' products.[cite: 3, 4]

Open-Ended Question

A question format that allows respondents to express opinions, ideas, or behaviors in their own words without being forced to select predetermined choices.[cite: 3, 4]

Dichotomous Question

The simplest form of a fixed alternative question that has only a "yes" or "no" response.[cite: 3, 4]

Semantic Differential Scale

A five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings.[cite: 3, 4]

Likert Scale

A five-point scale in which the respondent indicates the extent to which he or she agrees or disagrees with a statement.[cite: 3, 4]

Panel

A sample of consumers or stores from which researchers take a series of measurements to see if consumers change their behavior over time.[cite: 3, 4]

Experiment

Obtaining data by manipulating factors under tightly controlled conditions to test cause and effect.[cite: 3, 4]

Big Data

A term used to describe large amounts of data collected from a variety of sources and analyzed with an increasingly sophisticated set of technologies.[cite: 3, 4]

Data Analytics

The process of transforming the huge amount of data into useful information.[cite: 3, 4]

Data Mining

The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.[cite: 3, 4]

Predictive Modeling

Statistical models that use data mining and probability analysis to foretell outcomes using variables that affect the likelihood of future sales.[cite: 3, 4]

Trend Extrapolation

Extending a pattern observed in past data into the future to forecast sales.[cite: 3, 4]