In Marketing Research, 11th Edition, authors Carl McDaniel & Roger Gates share their industry experience to teach students how to make critical business decisions through the study of market research. Designed for marketing research courses, the authors' practical, applications-based approach features Real Data, Real People, and Real Research, to prepare students to conduct and use market research for future careers in business.
Marketing Research, 11th Edition features new trends, features and cases throughought, with updated chapters featuring new examples of companies and research firms, from Ilycaffe, the famous Italian coffee brand, Twitter, ESPN, Ford and General Motors. Co-author Roger Gates, President of DSS Research, infuses the text with a practitioner perspective, helping students learn how to use marketing research through a practical presentation of theory and practice.
Table of Contents
Preface vii
1 The Role of Marketing Research in Management Decision Making 1
Nature of Marketing 1
The Marketing Concept 2
Opportunistic Nature of Marketing Research 2
External Marketing Environment 2
Marketing Research and Decision Making 3
Marketing Research Defined 3
Importance of Marketing Research to Management 3
Understanding the Ever-Changing Marketplace 4
Social Media and User-Generated Content 4
Proactive Role of Marketing Research 5
Applied Research versus Basic Research 6
Decision to Conduct Marketing Research 6
Development of Marketing Research 8
Inception: Pre-1900 8
Early Growth: 1900-1920 9
Adolescent Years: 1920-1950 9
Mature Years: 1950-2000 10
The Connected World: 2000-2010 10
Big Data and Data Analytics: 2010-Present 12
Summary 14
Key Terms 14
Questions for Review & Critical Thinking 14
Real-Life Research 1.1: Acxiom - The Data Giant 15
Real-Life Research 1.2: Can Anyone Be a Market Researcher? 15
2 The Marketing Intelligence Universe and Research Ethics 17
Rapidly Changing Structure of the Marketing Research Industry 17
Organizations Involved in Marketing Intelligence 18
Consumer and Industrial Goods and Services Producers 18
Governments and Universities 20
Media Companies 20
Custom Research Firms 20
Syndicated Service Firms 21
Digital Companies 22
Competitive Intelligence 22
Limited-Function Research Firms 22
Online and Mobile Tracking Firms 22
Big Data Analytic Firms 23
Specialized Service Suppliers 23
Consumer and Industrial Corporate Marketing Research Departments 24
Research Suppliers 25
Consumer Watch 25
Consumer Buy 27
Using Marketing Research - A Corporate Perspective 27
External Clients 28
Internal Clients 28
Marketing Research Ethics 30
Ethical Theories 30
Research Supplier Ethics 31
Client Ethics 34
Field Service Ethics 36
Respondents’ Rights 37
Ethics and Professionalism 38
Summary 41
Key Terms 41
Questions for Review & Critical Thinking 41
Working the Net 42
Real-Life Research 2.1: Hey, No One Is Perfect 42
Real-Life Research 2.2: Coke Juices Up a Market Test 43
3 Problem Definition, Exploratory Research, and the Research Process 44
Critical Importance of Correctly Defining the Problem 44
Recognize the Problem or Opportunity 45
Find Out Why the Information Is Being Sought 46
Understand the Decision-Making Environment with Exploratory Research 46
Use the Symptoms to Clarify the Problem 49
Translate the Management Problem into a Marketing Research Problem 49
Determine Whether the Information Already Exists 50
Determine Whether the Question Can Be Answered 50
State the Research Objectives 51
Research Objectives As Hypotheses 51
Marketing Research Process 51
Creating the Research Design 51
Choosing a Basic Method of Research 54
Selecting the Sampling Procedure 55
Collecting the Data 55
Analyzing the Data 55
Writing and Presenting the Report 55
Following Up 56
Managing the Research Process 56
The Research Request 56
Request for Proposal 57
The Marketing Research Proposal 58
What to Look for in a Marketing Research Supplier 59
What Motivates Decision Makers to Use Research Information? 60
Summary 61
Key Terms 62
Questions for Review & Critical Thinking 62
Working the Net 63
Real-Life Research 3.1: Let’s Go Out to Eat! 63
4 Secondary Data, Big Data, and Data Analytics 70
Nature of Secondary Data 70
Advantages of Secondary Data 71
Limitations of Secondary Data 72
Internal Databases 74
Creating an Internal Database 74
Data Mining 74
Behavioral Targeting 75
Big Data Analytics 76
Defining Relationships 76
The Big Data Breakthrough 77
Making Big Data Actionable 79
Data Visualization 79
Battle over Privacy 80
Decision Support Systems 83
Summary 84
Key Terms 84
Questions for Review and Critical Thinking 85
Working the Net 85
Real-Life Research 4.1: The Interesting and Curious World of Nate Silver 85
Real-Life Research 4.2: United Upgrades Airline Safety 86
5 Qualitative Research 88
Nature of Qualitative Research 88
Qualitative Research versus Quantitative Research 89
Popularity of Qualitative Research 89
Limitations of Qualitative Research 90
Focus Groups 91
Popularity of Focus Groups 91
Conducting Focus Groups 92
Focus Group Trends 98
Benefits and Drawbacks of Focus Groups 100
Other Qualitative Methodologies 101
Individual Depth Interviews 101
Projective Tests 105
Future of Qualitative Research 110
Summary 110
Key Terms 111
Questions for Review & Critical Thinking 111
Working the Net 112
Real-Life Research 5.1: A Sound Approach for the Sound 112
6 Traditional Survey Research 115
Popularity of Survey Research 115
Types of Errors in Survey Research 116
Sampling Error 116
Systematic Error 117
Types of Surveys 122
Door-to-Door Interviews 122
Executive Interviews 123
Mall-Intercept Interviews 124
Telephone Interviews 124
Self-Administered Questionnaires 127
Mail Surveys 127
Determination of the Survey Method 129
Sampling Precision 129
Budget 130
Requirements for Respondent Reactions 131
Quality of Data 131
Length of the Questionnaire 132
Incidence Rate 132
Structure of the Questionnaire 133
Time Available to Complete the Survey 133
Summary 133
Key Terms 134
Questions for Review & Critical Thinking 134
Real-Life Research 6.1: Retail Categories Are Starting to Blur 135
7 Online Marketing Research: The Growth of Mobile and Social Media Research 136
The Online World 137
Using the Internet for Secondary Data 137
Online Qualitative Research 137
Online Bulletin Boards 137
Webcam Focus Groups 138
Using the Web to Find Focus Group Participants 140
Online Individual Depth Interviews (IDIs) 140
Online Survey Research 141
Advantages of Online Surveys 141
Disadvantages of Online Surveys 142
Tools for Conducting Online Surveys 143
Commercial Online Panels 145
Panel Recruitment 145
Open Recruitment 145
Closed Recruitment 146
Respondent Participation 147
Panel Management 147
Mobile Internet Research - The Future Is Now 148
Advantages of Mobile 148
A Few Bumps at the Beginning 149
Designing a Mobile Survey 149
Social Media Marketing Research 150
Conducting Surveys 150
Summary 151
Key Terms 152
Questions for Review & Critical Thinking 152
Working the Net 152
Real-Life Research 7.1: Procter & Gamble Uses Its Online Community to Help Develop Scents for a New Product Line 152
8 Primary Data Collection: Observation 154
Nature of Observation Research 154
Conditions for Using Observation 155
Approaches to Observation Research 155
Advantages of Observation Research 157
Disadvantages of Observation Research 158
Human Observation 158
Ethnographic Research 158
Mobile Ethnography 162
Mystery Shoppers 162
One-Way Mirror Observations 163
Machine Observation 164
Neuromarketing 164
Facial Action Coding Services (FACS) 168
Gender and Age Recognition Systems 169
In-Store Tracking 169
Television Audience Measurement and Tracking 170
Symphony IRI Consumer Network 170
Tracking 171
Magazines Now Track Online Readers 172
Social Media Tracking 172
Virtual Reality Research 175
Summary 176
Key Terms 177
Questions for Review & Critical Thinking 177
Working the Net 178
Real-Life Research 8.1: Bausch & Lomb Fine-Tune the Details 178
9 Primary Data Collection: Experimentation and Test Markets 180
What Is an Experiment? 181
Demonstrating Causation 181
Concomitant Variation 182
Appropriate Time Order of Occurrence 182
Elimination of Other Possible Causal Factors 182
Experimental Setting 183
Laboratory Experiments 183
Field Experiments 183
Experimental Validity 184
Experimental Notation 185
Extraneous Variables 185
Examples of Extraneous Variables 185
Controlling Extraneous Variables 187
Experimental Design, Treatment, and Effects 188
Limitations of Experimental Research 189
High Cost 189
Security Issues 189
Implementation Problems 190
Selected Experimental Designs 190
Preexperimental Designs 190
True Experimental Designs 192
Quasi-Experiments 193
Test Markets 195
Types of Test Markets 197
Costs of Test Marketing 199
Decision to Conduct Test Marketing 199
Steps in a Test Market Study 200
Other Types of Product Tests 204
Summary 205
Key Terms 205
Questions for Review & Critical Thinking 206
Working the Net 207
Real-Life Research 9.1: Coyote Beer 207
Real-Life Research 9.2: Alcon 208
10 The Concept of Measurement 209
Measurement Process 209
Step One: Identify the Concept of Interest 210
Step Two: Develop a Construct 211
Step Three: Define the Concept Constitutively 211
Step Four: Define the Concept Operationally 211
Step Five: Develop a Measurement Scale 213
Nominal Level of Measurement 214
Ordinal Level of Measurement 214
Interval Level of Measurement 215
Ratio Level of Measurement 215
Step Six: Evaluate the Reliability and Validity of the Measurement 216
Reliability 219
Validity 221
Reliability and Validity - A Concluding Comment 225
Summary 226
Key Terms 226
Questions for Review & Critical Thinking 226
Working the Net 227
Real-Life Research 10.1: Beer Drinkers’ Tastes Change With the Season 227
11 Using Measurement Scales to Build Marketing Effectiveness 228
Attitudes, Behavior, and Marketing Effectiveness 228
Link between Attitudes and Behavior 229
Enhancing Marketing Effectiveness 230
Attitude Measurement Scales 231
Graphic Rating Scales 231
Itemized Rating Scales 232
Traditional One-Stage Format 235
Two-Stage Format 235
Rank-Order Scales 235
Paired Comparisons 236
Constant Sum Scales 237
Semantic Differential Scales 237
Stapel Scales 239
Likert Scales 240
Purchase-Intent Scales 242
Scale Conversions 244
Net Promoter Score (NPS) 245
Considerations in Selecting a Scale 246
The Nature of the Construct Being Measured 246
Type of Scale 246
Balanced versus Nonbalanced Scale 247
Number of Scale Categories 247
Forced versus Nonforced Choice 248
Attitude Measures and Management Decision Making 250
Direct Questioning 250
Indirect Questioning 252
Observation 252
Choosing a Method for Identifying Determinant Attitudes 253
Summary 253
Key Terms 254
Questions for Review & Critical Thinking 254
Working the Net 254
Real-Life Research 11.1: When 8.5 Is Less Than 6.2 255
12 Questionnaire Design 257
Role of a Questionnaire 257
Criteria for a Good Questionnaire 258
Does It Provide the Necessary Decision-Making Information? 258
Does It Consider the Respondent? 259
Does It Meet Editing and Coding Requirements? 259
Does It Solicit Information in an Unbiased Manner: Questionnaire Design Process 260
Step One: Determine Survey Objectives, Resources, and Constraints 261
Step Two: Determine the Data-Collection Method 262
Step Three: Determine the Question Response Format 262
Step Four: Decide on the Question Wording 269
Step Five: Establish Questionnaire Flow and Layout 273
Model Introduction/Opening 275
Model Closing 276
Step Six: Evaluate the Questionnaire 276
Step Seven: Obtain Approval of All Relevant Parties 278
Step Eight: Pretest and Revise 278
Step Nine: Prepare Final Questionnaire Copy 278
Step Ten: Implement the Survey 279
Field Management Companies 279
Impact of the Internet and Mobile Phones on Questionnaire Development 280
Adapting to Mobile Device Questionnaires 283
Costs, Profitability, and Questionnaires 285
Summary 287
Key Terms 287
Questions for Review & Critical Thinking 287
Working the Net 288
Real-Life Research 12.1: Understanding the Internet of Things 288
Real-Life Research 12.2: Sonic Goes Mobile 289
13 Basic Sampling Issues 290
Concept of Sampling 290
Population 291
Sample versus Census 291
Developing a Sampling Plan 292
Step One: Define the Population of Interest 292
Step Two: Choose a Data-Collection Method 293
Step Three: Identify a Sampling Frame 296
Step Four: Select a Sampling Method 296
Step Five: Determine Sample Size 298
Step Six: Develop Operational Procedures for Selecting Sample Elements 298
Step Seven: Execute the Operational Sampling Plan 299
Sampling and Nonsampling Errors 299
Probability Sampling Methods 300
Simple Random Sampling 301
Systematic Sampling 301
Stratified Sampling 302
Cluster Sampling 304
Nonprobability Sampling Methods 305
Convenience Samples 305
Judgment Samples 306
Quota Samples 306
Snowball Samples 306
Internet Sampling 307
Summary 308
Key Terms 308
Questions for Review & Critical Thinking 309
Working the Net 309
Real-Life Research 13.1: The Research Group 310
Real-Life Research 13.2: Florida National Bank 310
14 Sample Size Determination 311
Determining Sample Size for Probability Samples 312
Budget Available 312
Rule of Thumb 314
Number of Subgroups Analyzed 314
Traditional Statistical Methods 315
Normal Distribution 315
General Properties 315
Standard Normal Distribution 316
Population and Sample Distributions 318
Sampling Distribution of the Mean 318
Basic Concepts 319
Making Inferences on the Basis of a Single Sample 322
Point and Interval Estimates 322
Sampling Distribution of the Proportion 323
Determining Sample Size 324
Problems Involving Means 324
Problems Involving Proportions 326
Determining Sample Size for Stratified and Cluster Samples 327
Sample Size for Qualitative Research 327
Population Size and Sample Size 327
Determining How Many Sample Units Are Needed 329
Statistical Power 330
Summary 331
Key Terms 332
Questions for Review & Critical Thinking 332
Working the Net 332
Real-Life Research 14.1: Sky Kitchens 333
Real-Life Research 14.2: Building a Village 333
15 Data Processing and Basic Data Analysis 337
Overview of Data Analysis Procedure 338
Step One: Validation and Editing of Paper Surveys 338
Validation 338
Editing 341
Step Two: Coding 346
Coding Process 346
Automated Coding Systems and Text Processing 348
Step Three: Data Capture 350
Intelligent Capture Systems 350
The Data Capture Process 351
Scanning 351
Step Four: Logical Cleaning of Data 352
Step Five: Tabulation and Statistical Analysis 352
One-Way Frequency Tables 353
Cross Tabulations 355
Death of Crosstabs? 356
Graphic Representations of Data 358
Line Charts 359
Pie Charts 359
Bar Charts 360
Descriptive Statistics 362
Measures of Central Tendency 362
Measures of Dispersion 364
Percentages and Statistical Tests 365
Summary 365
Key Terms 366
Questions for Review & Critical Thinking 366
Working the Net 368
Real-Life Research 15.1: Waffle World 368
Real-Life Research 15.2: Tico Taco 369
16 Statistical Testing of Differences and Relationships 373
Evaluating Differences and Changes 374
Statistical Significance 374
Hypothesis Testing 377
Steps in Hypothesis Testing 377
Types of Errors in Hypothesis Testing 382
Accepting H0 versus Failing to Reject (FTR) H0 384
One-Tailed versus Two-Tailed Test 384
Example of Performing a Statistical Test 384
Commonly Used Statistical Hypothesis Tests 388
Independent versus Related Samples 388
Degrees of Freedom 389
Goodness of Fit 389
Chi-Square Test 389
Hypotheses about One Mean 396
Z Test 396
t Test 397
Hypotheses about Two Means 400
Hypotheses about Proportions 402
Proportion in One Sample 402
Two Proportions in Independent Samples 403
Analysis of Variance (ANOVA) 405
P Values and Significance Testing 407
Summary 408
Key Terms 409
Questions for Review & Critical Thinking 409
Working the Net 411
Real-Life Research 16.1: Analyzing Global Bazaar Segmentation Results 411
Real-Life Research 16.2: Texas New Mexico Power 412
17 Bivariate Correlation and Regression 416
Bivariate Analysis of Association 416
Bivariate Regression 417
Nature of the Relationship 417
Example of Bivariate Regression 419
Correlation for Metric Data: Pearson’s Product-Moment Correlation 431
Summary 437
Key Terms 437
Questions for Review & Critical Thinking 437
Working the Net 439
Real-Life Research 17.1: Road Runner 439
Real-Life Research 17.2: Lambda Social Hotspot 439
18 Multivariate Data Analysis 443
Multivariate Analysis Procedures 443
Multivariate Software 445
Multiple Regression Analysis 446
Applications of Multiple Regression Analysis 447
Multiple Regression Analysis Measures 447
Dummy Variables 448
Potential Use and Interpretation Problems 449
Multiple Discriminant Analysis 450
Applications of Multiple Discriminant Analysis 451
Cluster Analysis 451
Procedures for Clustering 451
Factor Analysis 454
Factor Scores 455
Factor Loadings 456
Naming Factors 457
Number of Factors to Retain 457
Conjoint Analysis 457
Example of Conjoint Analysis 457
Considering Features Conjointly 459
Estimating Utilities 459
Simulating Buyer Choice 461
Limitations of Conjoint Analysis 462
Big Data and Hadoop 462
Predictive Analytics 463
Using Predictive Analytics 465
Privacy Concerns and Ethics 467
Commercial Predictive Modeling Software and Applications 468
Summary 468
Key Terms 469
Questions for Review & Critical Thinking 469
Working the Net 471
Real-Life Research 18.1: Satisfaction Research for Pizza Quik 471
Real-Life Research 18.2: Acme Car Wash Systems 472
19 Communicating the Research Results 477
The Research Report 477
Organizing the Report 479
Interpreting the Findings 480
Format of the Report 482
Formulating Recommendations 483
The Presentation 484
Making a Presentation 487
Presentations by Internet 492
Summary 493
Key Terms 493
Questions for Review & Critical Thinking 494
Working the Net 494
Real-Life Research 19.1: Francie Dog Collars 494
Real-Life Research 19.2: TouchWell Storefront Concept and Naming Research 495
20 Managing Marketing Research 501
Marketing Research Supplier Management 502
What Do Clients Want? 502
Consolidating the Number of Acceptable Suppliers 504
Communication 504
The Key Role of the Project Manager 505
Managing the Research Process 505
Organizing the Supplier Firm 505
Data Quality Management 507
Time Management 508
Cost Management 509
Client Profitability Management 511
Staff Management and Development 512
Managing a Marketing Research Department 514
Allocating the Research Department Budget 514
Prioritizing Projects 515
Retaining Skilled Staff 515
Selecting the Right Marketing Research Suppliers 517
Moving Marketing Research into a Decision-Making Role 519
Measuring Marketing Research’s Return on Investment 524
Summary 525
Key Terms 525
Questions for Review & Critical Thinking 525
Working the Net 526
Real-Life Research 20.1: Greg Harris Research Deals with Growth 526
Real-Life Research 20.
