Chapter 3 Summary

Distinguish types of pragmatic and scientific information needed to determine and resolve information problems or questions.

Today's decision makers are faced with new sets of challenges that directly influence their firm's competitive market structure, organization structure, and marketing mix strategies. Decision makers cannot rely strictly on subjective information to address and resolve those problems or to successfully exploit market opportunities. The need for additional information should be met by using scientific methods to generate secondary and primary information (i.e., facts, estimates, predictions, and relationships). Decision makers must concern themselves with both the complexity and the quality of the information, as well as the availability and degree-of-manipulation factors associated with the information they use to resolve identifiable problems and opportunities.

Describe the nature and purpose of a marketing research project.

A marketing research project involves activities designed to secure information for decision making. In order to ensure that the appropriate information is collected, a detailed research plan must be developed. Phase I of the information research process (Determination of the Information Research Program) must be successfully completed prior to developing the research design.

Illustrate and explain the critical elements of problem definition in marketing research.

Phase I of the research process consists of three important task steps: (1) determine and clarify management's information needs; (2) redefine the decision problem as a research problem; and (3) establish research objectives and evaluate the value of information. The most critical step to the success of any research endeavor is the second one. Before redefining the initial decision problem as a set of more specific research questions, the decision maker needs to work with the researcher to determine or clarify the true information needs of the situation. Defining the decision problem correctly required the use of a five-step model that includes uncovering the decision maker's purpose, understanding the complete problem situation, separating out the measurable symptoms, determining the appropriate unit of analysis, and determining the most relevant factors of the situation. Defining decision problems as research questions allows the researcher to focus on the how, what, which, who, when, where, and why questions needed to guide the formulation of the research objectives and clarify the pertinent information requirements. All the effort, time, and money spent to execute marketing research will be wasted if the true information research problems are misunderstood.

Determine the expected value of information obtainable through marketing research.

Marketing research should be conducted only when the expected value of information to be obtained exceeds the cost of obtaining it. While it is difficult to evaluate information, certain criteria can be used. First, focus on only the important issues of the problem. Second, never try to do too much in a single project; realize that limitations do exist. Third, explore all potentially available methods for collecting data-some are less expensive than others. Finally, subjectively assess the major benefits to be generated by the marketing research information.

Identify and discuss both the procedural and methodological factors used in evaluating a marketing research project.

It is always considered good practice for the client to have an understanding of various procedural and methodological issues for evaluating any proposed marketing research project. While these issues will certainly vary according to the type of project being performed, several general topics can be used to help the client understand project requirements; the cost of the study, maintaining objectivity, protecting client confidentiality, inaccurate data collection, and data validation.

Discuss how price is determined and how it affects marketing research.
While the cost of any marketing research endeavor is normally negotiated between the client and the researcher, direct costs and overhead associated with the project play an important role in pricing. In addition to knowing the fee for professional services, the client should request an itemized list of activities with assigned dollar values. Also, cost overruns and underestimates should figure in the project's final cost.

Identify and explain the characteristics used to evaluate a supplier of marketing research.

Industry best practices suggest the most important variables when evaluating a research supplier are technical competency, marketing knowledge, reliability or service, conformance to standards, and overall reputation. These variables can translate into the level of expertise, trustworthiness, and credibility that the research supplier brings the client.

Discuss ethics in the marketing research industry.

Ethical decision making affects all industries, including marketing research. Ethical dilemmas in marketing research are likely to occur among the research information user, the research information provider, and the selected respondents. Specific unethical practices among research providers include unethical pricing practices, failure to meet obligations to respondents, respondent abuse, and selling unnecessary services. Unethical behavior by clients includes requesting research proposals with no intent to follow through and unethical practices to secure low-cost research services. The falsification of data and duplication of actual responses are unethical practices associated with the research firm.