Market Research (Second Edition)

Author: Naresh K. Malhotra
Publisher:
Publish Date: 1998-08-01
Features: This market research (photocopy edition) is systematic and clear, with easy-to-understand and practical content. It emphasizes both the theoretical framework of market research and its practical applications; it equally focuses on qualitative research and quantitative analysis, and sufficiently demonstrates statistical analysis methods and the application of computers in modern market research. The book uses numerous pictures, graphs, tables, and examples to explain basic concepts. It is suitable as a textbook for undergraduate and graduate students in business administration departments of universities, as well as a training manual or reference book for business professionals. This is a book that reflects the latest trends in the field of modern international market research. The author treats market research as a complete process, providing a detailed introduction to its theory, methods, techniques, and strategies. The book is divided into six parts, organized according to the basic procedures of market research, covering the definition of research problems, research design, methods of collecting market research data, questionnaire design, sampling design, methods of organizing and analyzing market research data, etc.
Excerpt:
Marketing Research
Marketing research comprises one of the most important and fascinating facets of marketing. In this chapter, we describe the nature of marketing research, emphasizing its role in providing information for marketing decision-making and provide several real-life examples to illustrate the basic concepts of marketing research. We give a formal definition of marketing research and subdivide it into two areas: problem identification and problem-solving research. We show that marketing research is also an integral part of marketing information systems or decision support systems. Next, we provide an overview of marketing research suppliers and services, along with guidelines for selecting a supplier. Because of the demand for well-executed marketing research, there are many exciting career opportunities in this field. We discuss these opportunities, along with ethical issues, and describe the stages of the marketing research process. To illustrate this process, we examine the department store patronage project, which was an actual marketing research project conducted by the author, and use it as an example throughout the book. The topic of international marketing research is introduced and systematically discussed in the subsequent chapters. The ethical aspects of marketing research and the responsibilities that stakeholders of marketing research have to themselves, each other, and to the research project are presented and developed in more detail throughout the text. This chapter concludes with an applications-oriented discussion on the use of mainframe and microcomputers in marketing research, another emphasis that pervades the entire book.
WHAT DOES MARKETING RESEARCH ENCOMPASS?
The term marketing research is broad in meaning; it is related to all aspects of marketing. The following examples provide a flavor of the varied nature of marketing research.
EXAMPLE Baby Bell, IJp
The breakup of America's telecommunications industry in 1983 put the burden of building public understanding and support on the resulting "Baby Bell" companies. The St. Louis-based Southwest Bell uses marketing research to measure customer perceptions of its services. The company has been successful in building public support with the help of a telephone survey called the Customer Attitudes Survey (CAS). This periodic survey has helped Southwest Bell identify and address customer concerns. For example, when customers complained about difficulty with the billing format, a new, easier-to-read and understand format was implemented. As a result of CAS, positive customer attitudes toward the company are at an all-time high. Customer attitude surveys have helped Southwest Bell to establish a favorable image—"The one to call on." Southwest Bell.
EXAMPLE The Making of a President
President Bill Clinton used market research to develop policies and to polish those policies once they were in place. Clinton and his team made extensive use of focus groups (group interviews), telephone and personal surveys, and interview-style meetings to understand what people were expecting from the policies that were being developed. In the eyes of the President, the taxpayers of the country were his administration's "customers." His first big test came during his first State of the Union address when he unveiled his "product of uncertain demand," a new economic package that included higher taxes. The White House used market research to smooth the rough edges of the new package and to sell it to the American people. The raising of taxes was the ultimate hard sell. Clinton made use of focus groups and telephone surveys to determine how to make the new package palatable. The research indicated that the public was willing to pay higher taxes to reduce the national debt, but the research also revealed that it expected both the President and Congress to deal with wasteful federal spending. Thus, deficit reduction was an important aspect of this package. One advertising executive noted that "instituting a new policy is the same as offering a new product. When you market anything, you need to concentrate on the end benefit." Bill Clinton attempted to do just that by making extensive use of market research.
EXAMPLE Marketing Research Cives NECaTall Neck
When redesigning its personal computer notebook, NEC, a Japanese electronics company, first went to business users rather than its engineers. Many users were observed as to how they used their notebook computers. This observation process revealed that people using a notebook are generally performing multiple tasks when they open the machine. Therefore, a two-handed latch was inconvenient. With this information in hand, the company designed a latch system that required only one hand to operate. Further research was conducted using focus groups and computer-assisted personal interviewing (CAPI). It was found that versatility and modularity were important features to most business people. NEC redesigned their notebook to have snap-off parts to allow versatility in configuration, including a screen that could be detached and turned around for others to see. Modularity was also very important, and many consumers needed extended battery life when traveling long distances without access to an electrical outlet. NEC's new design incorporated several battery packs to allow for extended battery use. Other findings that emerged from focus groups and CAPI were that people were increasingly taking their notebooks with them everywhere they went and that the machines were becoming more a part of the normal businessperson's life. With this in mind, NEC designed the UltraLite Versato have more rounded features than other notebooks and to give the notebook the look and feel of a consumer appliance rather than an office product.