Research Methods in Marketing (MBA 8601)

1. Research Methods in Marketing(MBA 8601) Jeremy Kees, Ph.D.

2. My Research… • Advertising • Kees et. al (Journal of Advertising, forthcoming) • Kees, Jeremy (JCIRA, forthcoming) • Framing Effects • Pharma – “Fair Balance” • Kees et al. (Psychology and Marketing, 2008) • Nutrition • Burton et al. (American Journal of Public Health, 2006) • Menu Labeling

3. My Research… • Smoking/Tobacco • Kees et al. (Journal of Public Policy and Marketing, 2006) • Graphic Warning Labels • Pricing • Jensen et. al (Journal of Interactive Marketing, 2003) • Reference Prices • Finance • Howlett et al. (Journal of Consumer Affairs, 2008) • Temporal Orientation and Long-Term Financial Planning

4. The Value of Marketing Research • Reduces risk in decision making • Let’s move away from making decisions based on anecdotal evidence (i.e., information or casual observation that is not based on facts or careful study)

5. Important Topics… • Part I: Non-data research issues • Research Process • Problem Identification • Study Design • Sampling • Part II: Data Analysis • Crosstabs / Correlation • Regression / t-tests / ANOVA • Conjoint / Perceptual Mapping

6. How does research fit into the broader scope of marketing management??

7. product price promotion place Review of Marketing Management target market

8. The External Environment Economic Environment Political and Legal Environment Competitive Environment Customer Value and Behavior Marketing Strategy Technological Environment Social Environment Natural Environment

9. Marketing research is the “function which links the consumer, customer, and public to the marketer through information--information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.” • - American Marketing Association

10. Marketing research is the systematic and objective identification collection analysis dissemination and use of information For the purpose of improving decision making related to the identification of problems and opportunities and solution of problems and opportunities in marketing. Marketing Research Defined 10

11. Used to identify and define market opportunities and problems Information Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process Using Information…. 11

12. The need for information… • MR focuses on the use of information as a source of strategic advantage • As marketers, we should strive for a thorough knowledge of customers, and their attitudes, tastes, preferences • We should also want to keep an eye on competition (e.g., benchmarking) • This information will help us making strategic marketing decisions (e.g., 4 P’s)

13. To sum….the function of marketing research is to provide managers with information

14. Marketing Research Problem /Opportunity Identification Research Problem-Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research 14

15. Users of Market Research • Fortune-500 Firms • e.g., Product tweeks, shelf location • Entrepreneurs • e.g., Market size, growth potential, viability • And everyone in-between…

16. Marketing research can tell us… • How our customer service is perceived by our customers and what particular areas we can improve on or emphasize • How customers shop and how we can adjust our atmospherics to maximize sales • What new products or new product features do customers want • How customers perceive us in relation to our key competitor (or do they even recognize us as a key player in the industry) • Who our most loyal customers are and how do we cater to this important segment • Who our prototypical customer is • How can we segment the market in more manageable groups • What marketing communications are most effective at reaching various segments of the market • What is going to be the demand for a new product or an existing product in a new market • Where should we build our next retail location • At what price point we can maximize profitability and maintain consumer demand • Which media vehicles will be most effective to communicate our advertising message • Etc.

17. Project vs. Info Systems • Information Systems Approach (MIS—Marketing Information System) • “Ongoing” decision tool • Interactive / Non-technical models • Database Marketing • e.g., Retail Link • Project-Based (the focus of this discussion)

18. Research $$ are spent on…

19. How Might Each of These Institutions Use Marketing Research? • An outdoor advertising firm • A local bank • The Los Angeles Lakers • The Food and Drug Administration 19

20. The Research Process

21. Just to reemphasize… • Marketing research is the marketer’s link to understanding the consumer and the external environment • The SOLE purpose of marketing research is to inform decisions • Every research project is different...

22. Step 1: Problem Formulation • A well-defined study begins with a clearly defined objective “The formulation of a problem is often more essential than its solution” - Albert Einstein • The problem is rarely clear-cut • Slight variations in research questions can lead to substantial changes in the research process (so be careful) • Drives decisions related to research design, measurement, sampling, analysis, etc.

23. Step 1: Problem Formulation

24. Step 1: Problem Formulation “Attacking the Obesity Epidemic: An Examination of the Potential Health Benefits of Nutrition Information Provision in Restaurants,” American Journal for Public Health (2006) • Formulate Problem • Obesity is the 2nd leading cause of preventable death in the US • What can be done? • Can the provision of nutrition information help consumers make better (healthier) food consumption decisions? (decision problem) • How good (accurate) are consumers at estimating the nutritional content of restaurant foods? and Can providing objective nutrient information improve food evaluation and choice (research problems) • State hypotheses to be tested based on theory • Based on Expectancy disconfirmation theory: • H3a: When objective nutrition information is less favorable than consumers’ expect, nutrition information provision will have a greater negative influence on product attitudes and purchase intentions and a greater positive influence on perceived likelihood of weight gain and heart disease.

25. Step 2: Determine Research Design • Dictated by the problem or research question • Exploratory Research • “Discovery” • Descriptive Research • “Relationships” • Causal Research • Experiments

26. Step 2: Determine Research Design

27. Step 2: Determine Research Design “Attacking the Obesity Epidemic: An Examination of the Potential Health Benefits of Nutrition Information Provision in Restaurants,” American Journal for Public Health (2006) • Determine Research Design • Two research problems (questions) require two designs • How good (accurate) are consumers at estimating the nutritional content of restaurant foods? • Simple survey that asks participants to estimate nutritional content of common restaurant foods • Can providing objective nutrient information improve food evaluation and choice • Between-subjects experiment

28. Step 3: Design Data Collection & Forms • Secondary research – not necessary • Survey Research • Lots of ways to collect data • Measurement • Constructs / Variables

29. Step 3: Design Data Collection & Forms

30. Step 3: Design Data Collection & Forms “Attacking the Obesity Epidemic: An Examination of the Potential Health Benefits of Nutrition Information Provision in Restaurants,” American Journal for Public Health (2006) • Design Data Collection and Forms • Quantitative data needed • Questionnaires with estimations, multi-item attitudinal/risk/intentions variables

31. Step 4: Design Sample and Collect Data • Determine your “target market” • Determine necessary sample size • Sampling Methodology • Logistics • Cost • Ethics

32. Step 4: Design Sample and Collect Data

33. Step 4: Design Sample and Collect Data “Attacking the Obesity Epidemic: An Examination of the Potential Health Benefits of Nutrition Information Provision in Restaurants,” American Journal for Public Health (2006) • Design Sample and Collect Data • Adult Sample • Recruited by undergrads • Mail panel

34. Step 5: Analyze and Interpret the Data • Edit / clean / code the data • Analyze • Interpret

35. Step 5: Analyze and Interpret the Data

36. Step 6: Analyze and Interpret the Data “Attacking the Obesity Epidemic: An Examination of the Potential Health Benefits of Nutrition Information Provision in Restaurants,” American Journal for Public Health (2006) • Analyze and interpret the data • Crosstabs and other simple computations • ANOVA / MANOVA / Chi-Square • Results show that most consumers are unaware of high levels of calories, fat, saturated fat, and sodium found in many menu items. Provision of nutrition information on restaurant menus could potentially have a positive impact on public health by reducing the consumption of less healthful foods

37. Step 6: Analyze and Interpret the Data • Know your audience • Sell your findings

38. Step 7: Prepare Research Report

39. Step 7: Prepare Research Report “Attacking the Obesity Epidemic: An Examination of the Potential Health Benefits of Nutrition Information Provision in Restaurants,” American Journal for Public Health (2006) • Prepare Research Report • Manuscript prepared for journal submission

40. Form Groups and… Contrast the process we have just talked about with that of Andreasen