Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 3

MARKETING RESEARCH: AN AID TO DECISI ON MAKING

Eoncustomers engage in a variety of behaviors. Examples include shopping, purchase, return,

complaint behavior, and so forth. A local fast food manager might simply observe the expres-

sion on customers'

as they eat a new sandwich. More formal observation techniques

are also employed. Video cameras or audio systems can be targeted at customers. Researchers

can also be hired to do license plate surveys in parking lots or simply record observations

in a prescribed manner. There are even observational techniques that are quite intrusive.

For instance, in the case of a pantry (cabinet) audit, the researcher comes to the consumer's home and actually takes an inventory of products found. Ethnography requires that the

researcher practically move in with the

and observe various relevant behaviors.

This technique is illustrated in the Newsline box that follows.

NEWSLINE: WHERE 'S TH E BEEF?

A woman in suburban Baltimore is shopping for her family's meals

for the week. She cruises past the poultry section, stopping only

momentarily to drop a couple of packages of boneless chicken breasts

into her cart. Then, the dreaded sea of red looms before her. Tenta-

tively, she picks up a package of beef. "This cut looks good, not too

fatty," she says, juggling her two-year-old on her hip. "But 1 don't

know what it is. I don't know how to cook it," she confesses, and

trades it for a small package of sirloin and her regular order of

ground beef.

Scenes like these are replayed daily in supermarkets across the

country. But this time, it's being captured on videotape by New York

City-based PortICo Research, part of a recent ethnographic study of

beef consumers for the National Cattleman's Beef Association (NCBA)

and major grocery retailers. And due in part to the trepidation of this

one mother in Baltimore, many grocers' meat cases are now being

rearranged to display beef by cooking method, rather than by cuts of

meat. Simple, three-step cooking instructions will soon be printed on

the packages

Ethnographic research, which combines intense observation with

customer interviews, shows companies how people live with

products-how they purchase and use them in their everyday lives.

Knowing what consumers do with beef is vital to the NCBA. The study

cost th e NCBA a pproxim ately $60,000 (studies might range from

$5,000 to $800,000). PortiCo videotaped consumer's purchasing

behavior as well as their preparation habits at home. The researchers

interviewed them each step of the way what they thought about beef,

why they did (or didn't) select particular cuts, and how they prepared

the family meal. The r etailers couldn't believe how little consumers

knew about somethin g that seemed as familiar to them as sliced

bread or soft drinks.

Sources: Kendra Parker, "How Do You Like Your Beef?" American Demograph-

ics, January 2000, pp. 35-38; Jennifer Lach , "Meet You in Aisle Three," American Demograpnics, April 1999, pp. 41-42.

The observation technique can proVIde important research insights, especially if con-

sistent patterns are noted. This method is relatively inexpensive and can be implemented

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PROCEDURES AND TECHNIQUES IN MARKETING RESEARCH

63

and completed quickly. Unfortunately, interpreting an observation is still very subjective

and mistakes arc made.

Gathering information through a questionnaire format reflects the most popular research technique. There are two interrelated issues: the design of the questionnaire and the administration of the questionnaire.

There are several rules of thumb that should be followed when designing a ques-

tionnaire. For example, a good questionnaire should be like a well-written story: it should

be logical, relevant, easy to follow, and interesting to the reader/respondent. There are also

a host of techniques and related guidelines. For example, Figure 3.4 illustrates the forms

questions can take. A yes/no question is considered a closed-ended dichotomous question;

i.e., respondenl must check one of two possible answers. Questions 4 and 5 are two types of scaled questions. Questions 6-8 are open-ended, in that respondent can provide any answer

desired. Closed-ended questions are best used when the researcher desires a particular set

of answers or feels the respondent is unli kely to come up with an original answer. Open-

ended questions allow the respondent to come up with personal answers . Of course, there

is a risk that the respondent will have no answer.

Other considerations are whether to place the easier questions at the beginning of the

questionnaire, group similar questions, or place demographic questions at the end of the

questionnaire. Again, the goal is to enaole the respondent to answer the questionnaire eas-

ily and accuratejy.

The design of a questionnaire is a function of how the questionnaire is administered,

and vice versa. Four techniques for administering a questionnaire are currently used: mail ,

telephone, personal interview, and online. In the mail technique, the questionnaire is distributed and returned through the mail. A typical packet might contain a cover letter explain-

ing the purpose of the research, a copy of the questionnaire, a stamped self-addressed return

envelope, and an incentive for compliance (cash, merchandise, contribution to charity, or

copy of report). Mail questionnaires allow the researcher to ask a large number of ques-

tions over a broad range of topics. They also allow the respondent to answer the question-

naire at their leisure . Finally, the standardized format does not allow for subjective bias .

Unfortunately, these advantages can become limitations. The longer the questionnaire, the

less likely the individual will respond. in fact, a response rate of 10-20% is common with-

out an incentive. Control is lost through the mail process. Did the targeted person answer

the questionnaire? Did the respondent understand the questions? Did she/he complete the

questionnaire? Was the questionnaire returned on time? The loss of control also means that

the interviewer cannot probe further into an interesting or controversial answer.

A more convenient and faster way of gathenng marketing information is to conduct

a telephone survey. Names and related telephone numbers can be obtained directly from a telephone directory or from an intcrnally or externally generated database. Telephone surveys are limited in several important ways, such as the difficulty of reaching the correct

respondent, the problem of completing the interview if the respondent decides to hang up,

and the inability to eliminate the bias introduced by not interviewing those without phones

or individuals WIth unlisted numbers. Also, 10- 15 questions are likely to be the maximum

number to be asked. Therefore, only a limited number of topics can be addressed. In spite

of these

the telephone survey method has grown in popularity. The costs are

relatively low, research

can provide well-trained and technically supported inter-

viewers, and the technique works if the research questions are limited and require a quick

answer. Still, it would be better if they didn't call while you were eating dinner.

Although often very costly and time-consuming, personal interviews may constitute

the best way of collecting survey information. Once compliance is gained, the well-trained

interviewer can make sure the right person is answering, ask as many questions as necessary,

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