CH 5 Marketing

Marketing research process

The systematic process of gathering and analyzing information to help companies make marketing decisions.

Step 1 of the marketing research process

Define the problem.

Step 2 of the marketing research process

Develop a research plan.

Step 3 of the marketing research process

Collect data.

Step 1: Define the problem

Identify the decision the company needs to make, the information needed, the research objectives, the population of interest, and relevant environmental factors.

Why is defining the problem important?

It sets the direction for the research before methods are chosen or data is collected.

Research objectives

Clear goals describing what the company needs to learn or decide.

Example of a research objective

Find out why customers are not booking, test which advertisement works best, or understand negative reviews.

Population of interest

The specific group of people the company wants to study.

Example of a population of interest

College students who fly at least twice per year, first-time customers, or parents traveling with children.

Environmental factors

Outside influences that may affect consumer behavior or research results.

Examples of environmental factors

Seasonality, competitor pricing, economic conditions, news and trends, and technology changes.

Seasonality

Changes in consumer behavior based on the time of year, such as increased summer travel.

Step 1 takeaway

Ask the right question to the right people in the right context.

Step 2: Develop a research plan

Choose the research approach, sampling method, and data collection plan needed to answer the research question.

Exploratory research

Research used to explore an unclear problem, discover insights, and generate ideas for further testing.

When is exploratory research used?

When a company is still figuring out what is happening or why a problem exists.

Example of exploratory research

Interviewing customers to explore why they may be leaving a brand.

Descriptive research

Research used to describe consumer behavior and measure characteristics of a population.

What questions does descriptive research answer?

Who, what, when, where, and how.

Example of descriptive research

Measuring who buys a product, how often they purchase it, or where they discover it.

Causal research

Research used to test whether one variable causes a change in another variable.

How does causal research test cause and effect?

By testing hypotheses, often through controlled experiments.

Example of causal research

Testing whether lowering a product's price increases sales.

Exploratory vs. descriptive vs. causal research

Exploratory discovers; descriptive measures and describes; causal tests cause and effect.

Sampling

The process of selecting people from a population to participate in research.

Probability sampling

A sampling method in which each population member has a known chance of selection; simple random sampling gives everyone an equal chance.

Simple random sampling

Selecting participants randomly, such as drawing names from a hat or using a random number generator.

Advantages of probability sampling

Can reduce selection bias and support more reliable generalizations to the population.

Nonprobability sampling

A sampling method in which individuals do not all have a known or equal chance of selection.

Convenience sampling

Selecting participants who are easiest to reach, such as classmates or people in a student union.

Advantages of convenience sampling

Fast, practical, and usually less expensive.

Disadvantages of convenience sampling

Results may be biased and less representative of the full population.

Probability vs. nonprobability sampling

Probability sampling generally supports stronger generalization; nonprobability sampling is often quicker and more convenient.

Step 3: Collect data

Gather information needed to answer the research question.

Secondary data

Information that already exists and was originally collected for another purpose.

Examples of secondary data

Industry reports, government statistics, research articles, company sales history, social media trends, and reviews.

What is the main advantage of secondary data?

It can save time and money because the information already exists.

Primary data

Information collected specifically to answer the current research question.

Examples of primary data

Surveys, interviews, focus groups, experiments, and direct observations.

Primary vs. secondary data

Primary data is collected for the current study; secondary data already exists from an earlier purpose.

Decision Support System (DSS)

Software that helps a company access and analyze data to make decisions.

What does a DSS help companies do?

Track performance, compare campaign results, forecast demand, and identify problems early.

Examples of decision support systems

Medical diagnosis systems, financial forecasting systems, and retail inventory optimization tools.

Marketing Information System (MIS)

A system that collects, organizes, stores, and distributes marketing information over time.

Examples of MIS-related systems

Customer relationship management systems, inventory management systems, and human resource management systems.

MIS vs. DSS

MIS manages the flow of information; DSS uses data to support specific decisions.

Experimental research

Research that tests cause-and-effect relationships by changing a condition and measuring the result.

Treatment group

The group that receives the change or test condition in an experiment.

Control group

The group that does not receive the experimental change and provides a comparison.

Field experiment

An experiment conducted in a real-world setting rather than a laboratory.

A/B testing

Comparing two versions of something, such as an advertisement or webpage, to determine which performs better.

Neuromarketing-based experimental research

Research that studies consumers' brain activity, emotions, or physiological responses to marketing stimuli.

Quantitative research

Research that uses numerical data to measure behavior, opinions, or other variables.

Observation-based research

Research that watches what people actually do rather than relying only on what they say.

Mystery shoppers

Trained evaluators who act like customers to assess service quality and consistency.

Behavioral targeting

Using people's online behavior, such as searches and clicks, to personalize advertisements and offers.

Social media customer insights

Using social media posts, comments, reviews, and engagement to understand customer opinions and needs.

Blog mining

Analyzing blog content and discussions to identify trends, customer problems, and brand sentiment.

Behavioral tracking in physical stores

Monitoring in-store behavior, such as movement or shopping patterns, to understand how customers shop.

Step 4 of the marketing research process

Analyze data and develop findings or insights.

Step 5 of the marketing research process

Present findings and use them to make decisions. (The exact step labels can vary by textbook.)

Customer journey map

A visual representation of the steps a customer takes when interacting with a brand, from initial awareness through purchase and beyond.

Customer persona

A description of a typical target customer, including behaviors, needs, goals, frustrations, and attitudes.

What questions help build a customer persona?

What the customer does, what their day looks like, their frustrations, their goals, and their attitudes toward the brand.

Customer touchpoint

Any place or moment where a customer interacts with a brand.

Examples of customer touchpoints

Advertisements, websites, apps, airport kiosks, emails, and customer service.

Moment of truth

A critical customer touchpoint where trust is gained or lost and the customer may decide to stay with or leave a brand.

How do touchpoints affect customer experience?

They influence customer perceptions, satisfaction, confidence, and loyalty throughout the customer journey.

Airline touchpoint example

A clear airline app that explains seat selection and baggage fees helps a traveler book with confidence.

Global marketing research

Research conducted across countries or regions to understand customers, competitors, trends, and market opportunities.

Why is global marketing research more complex?

People differ in language, culture, technology access, expectations, and local conditions.

Language barriers in global research

Translation problems can change the meaning of questions and responses.

Cultural differences in global research

Differences in values, norms, and expectations can affect consumer behavior and survey responses.

Technology differences in global research

Access to devices, digital platforms, and technology varies across regions.

Environmental factors in global research

Political, legal, sociocultural, and technological conditions that influence markets and behavior.

Goals of global marketing research

Understand customer needs and competitors, determine product fit by region, and estimate demand and market share.

Market potential

The estimated sales opportunity for a product or service in a market.

Market share

The portion of total market sales captured by a company or brand.

Research ethics

The principles that guide honest, responsible, fair, and respectful marketing research.

Why does research ethics matter?

It protects participants, supports trustworthy findings, and helps prevent misleading or harmful research practices.