Chapter 10: Market Research and Information Systems

5 Steps of the Marketing Research Process

1. Defining the objectives and research needs

2. Designing the research

3. Collecting the data

4. Analyzing the data and developing insights

5. Developing and implementing an action plan

active analytics tools

AI algorithms that are used to analyze input gathered by the Internet of Things

big data

Data sets that are too large and complex to analyze with conventional data management and data mining software

churn (or churn rate)

The number of consumers who stop using a product or service divided by the average number of consumers of that product or service

customer lifetime value (CLV)

The expected financial contribution from a particular customer to the firm’s profits over the course of their entire relationship

data

Raw numbers or facts

data mining

Statistical tools used to uncover previously unknown patterns or relationships among variables stored in the big databases

data warehouses

A large computer file containing data including sales transactions, CRM systems, websites, social media, blogs, locational devices, wearables, etc.

descriptive analytics tools

Methods that help firms organize, tabulate, and depict their available data, usually in easy-to-understand reports, tables, and charts

experimental research

A type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable

focus group interview

A research technique in which a small group of 8-12 people come together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry

in-depth interview

An exploratory research technique in which trained researchers ask questions, listen to and record the answers and then pose additional questions to clarify or expand on a particular issue

information

Organized, analyzed, interpreted data that offer value to marketers

marketing analytics

Techniques that use advanced technologies and models to gather data so that markets can improve their decision making, optimize their returns, and make appropriate customer-related decisions

marketing research

A set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, or ideas

observation

An exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny

panel data

Contains information collected from a group of consumers

predictive analysis tools

Methods that rely on historically available data to forecast the future

prescriptive analysis tools

Analyses that use simulations, which ask a series of what-if type questions, and optimization techniques, which find the most effective or best result, to help firms better understand what they should do

primary data

Data collected to address specific research needs

qualitative research

Informal research methods, including observation, following social media sites, in-depth interviews, and focus groups

quantitative research

Structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data

questionnaire

A form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers’ objectives; question can be unstructured or structured

sample

A group of customers who represent the customers of interest in a research study

scanner data

A type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at checkout corners

secondary data

Pieces of information that have already been collected from other sources and are usually readily available

structured questions

Closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

survey

A systematic means of collecting information from people that generally uses a questionnaire

syndicated data

Data available for a fee from commercial research firms such as IRI, NDP Group, and Nielsen

unstructured questions

Open-ended questions that allow respondents to answer in their own words

value (of big data)

The more valuable the data are to users, the better they are

variety (of big data)

Inherent quality of big data that infers that big data contain both numeric and textual data and are obtained from different media formats

velocity (of big data)

Inherent quality of big data that infers that data are collected and can be analyzed and accessed quickly

veracity (of big data)

Inherent aspect of big data that infers that big data users must evaluate the accuracy and reliability of the collected data

volume (of big data)

Inherent quality of big data that infers that big data contain a large amount of data

Types of Qualitative research

Observation

In-depth interviews

Focus groups

Types of Quantitative research

Survey

Panel

Scanner

Experiments

Advantages of Primary Research

Specific to the immediate data needs and topic at hand

Offers behavioral insights generally not available from secondary research

Disadvantages of Primary Research

Costly

Time-consuming

Requires more sophisticated training and experience to design study and collect data

Advantages of Secondary Research

Saves time in collecting data because it is readily available

Free or inexpensive (besides syndicated data)D

Disadvantages of Secondary Research

May not be precisely relevant to information needs

Information may not be timely

Sources may be unoriginal and not useful

Data collection methods used may be inappropriate

Data sources may be biased

The 5 Vs of Big Data

Volume

Variety

Velocity

Veracity

Value