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END OF CHAPTER MATERIAL
Discussion Questions
4-1 What is big data, and what opportunities and challenges does it provide for marketers?
(AACSB: Communication; Reflective Thinking)
Answer: The most important consideration is the users of the MIS. A well-designed system
4-2 Explain how internal databases differ from marketing intelligence. What are some
advantages and disadvantages of both? (AACSB: Communication; Reflective Thinking)
Answer: The most important consideration is the users of the MIS. A well-designed system
4-3 What is behavioral targeting? Provide an example of behavioral targeting. How are firms
responding to consumers and public advocates that it is a form of stalking consumers?
(AACSB: Communication; Reflective Thinking)
Answer: Intranets and extranets facilitate the capture of regular data and the periodic capture
of special or time-specific data by an organization. Programs can be used to process the data
4-4 Marketers make heavy use of both open-ended and closed-ended questions in questionnaires.
What are some of the benefits or drawbacks of using each of these ways to ask questions?
(AACSB: Communication; Reflective Thinking)
Answer:
Open-ended questions are especially useful in exploratory research, when the researcher is
trying to find out what people think, but they are not good for measuring how many people
4-5 The marketing research process has several very distinct and important stages that need to be
followed. In your opinion, which is the most important? Justify your view on this. (AACSB:
Communication; Reflective Thinking)
Answer:
The student could, conceivably, choose any one of the four main stages as outlined in the
chapter. The key points to note are that collectively the stages seek to ensure that the market
research produces credible results that are presented in a format that is of direct and
Critical Thinking Exercises
4-6 In a small group, identify the steps a business organization might need to take to carry out
market research in an overseas market. Discuss whether the business would be best advised
to have someone do the research for them, or do it themselves. (Objective 2) (AACSB:
Communication; Reflective Thinking)
Answer: International researchers follow the same steps as domestic researchers, from
defining the research problem and developing a research plan to interpreting and reporting
the results. However, these researchers often face more and different problems. Whereas
domestic researchers deal with fairly homogeneous markets within a single country,
4-7 Suppose you are conducting market research for your favorite soda brand. Sales have been
lagging for two quarters, and you are determined to find out why. You decide to host an
in-person focus group to gain customer insights into your brand’s current product offerings.
You are also interested in obtaining feedback on a new product that your brand plans to
launch in the next six months. Determine the makeup of your focus group. Who should be
invited to the focus group, and why? What types of information would you want to obtain?
Identify possible questions to present to the focus group. (AACSB: Communication;
Reflective Thinking)
Answer:
Student answers will vary, but should discuss some of the following issues.
The target population for the focus group will be consumers that already use the product.
As a market researcher, the job is to find out what consumers really think. The first issue
would be finding out why sales are down. Is it because consumers no longer like the product?
Regarding the new product being tested with the focus group, providing samples will result
in obtaining valuable feedback. Asking the group what they think about the product’s taste,
As a way to thank the focus group participants for their time and feedback, consider offering
4-8 Conduct an online search to learn more about the marketing research industry. Develop a
presentation describing the variety of jobs in the marketing research field along with the
compensation for those jobs. Create a graphical representation to communicate your findings.
(AACSB: Communication; Use of IT; Reflective Thinking)
Answer:
Students’ answers will vary depending upon the websites they access.
One source for job titles, descriptions, and pay data can be found at Quirk’s Marketing
Research Media (see
www.quirks.com/jobs/research-salaries/Market-research-salary-by-title.aspx). This site
provides information on several corporate market research job titles (for example, Customer
APPLICATIONS AND CASES
Online, Mobile, and Social Media Marketing: Online Snooping
Every second of every day, personal information is being indexed and processed. Every device
we use has a unique address which is being broadcast as long as you have wireless networking
switched on. Many of us do not even realize that programs exist to find every picture you may
have ever posted online. They can also pinpoint exactly where you were when you uploaded
them. If you haven’t set the right privacy settings, it will become fairly easy to work out exactly
where you live, your habits and when you are at home and when you are out. Some services are
specifically designed to scare people about the information they are unintentionally leaking to
the world, such as pleaserobme.com. This shows you whether you are sharing your location and
prompts you to change your privacy settings.
4-9 Make a detailed list of all the Web sites, online forums, social networks, and other Web pages
you have visited this week. What data have you left that could be of value to marketers?
(AACSB: Communication; Information Technology)
Answer:
Student answers will vary regarding the accuracy of the assessment. Lists are likely to vary;
the purpose of the exercise is to illustrate the fact that personal data is being left unwittingly
4-10 Monetizing relevant data is the key to revealing its true value. Should marketers have
access to the personal information of billions of people who use the Internet? Discuss how
you would use data trails left by individuals on the Internet if you ran a business. (AACSB:
Communication; Ethical reasoning)
Answer:
Refer to the Mylab for answers to this and all starred Mylab questions.
Marketing Ethics: Metadata
Everyone generates metadata when using technologies such as computers and mobile devices to
search, post, tweet, play, text, and talk. What many people don’t realize, however, is that this
treasure trove of date, time, and location information can be used to identify them without their
knowledge. For example, in analyzing more than a million anonymous credit card transactions,
researchers at the Massachusetts Institute of Technology were able to link 90 percent of the
transactions to specific users with just four additional bits of metadata, such as user locations
based on apps such as Foursquare, the timing of an activity such as a tweet on Twitter, or playing
a mobile game. Since there are more mobile devices than there are people in the United States,
and 60 percent of purchases are made with a credit card, marketing research firms are gobbling
up all sorts of metadata that will let them tie a majority of purchase transactions to specific
individuals.
4-11 Describe at least four applications you use that provide location, time, and date information
that can be tied to your identity. (AACSB Communication; Reflective Thinking)
Answer:
Student answers will vary based on their online habits and device usage. Many mobile device
apps, such as Google Maps and The Weather Channel, use location tracking to be able to
4-12 Debate whether it is ethical for marketers to use metadata to link individual consumers
with specific credit card transactions. (AACSB: Communication; Ethical Reasoning)
Answer:
Student answers will vary. Some of the information that may be presented may come from
the “Your Digital Footprint Matters” exercise above. Their opinion on whether it is ethical
Marketing by the Numbers: What’s Your Sample?
Decisions are often made by businesses on the basis of fairly small samples in relation to the
actual size of the population or number of customers. Thus, the future of products and services is
often determined by relatively small numbers of people. But just how reliable are small-scale
samples? Larger samples cost more money; they take more time and ultimately may not be any
more accurate than a smaller sample. Are businesses and organizations right to rely so heavily on
these small samples? Statistically speaking, a small sample is probably just as accurate.
4-13 Go to www.surveysystem.com/sscalc.htm to determine the appropriate sample size for a
population in your country. Briefly explain what is meant by confidence interval and
confidence level. Assuming a confidence interval of 5, how large should the sample of
households be when desiring a 95 percent confidence level? How large for a 99 percent
confidence level? (AACSB: Communication; Information Technology; Analytical Thinking)
Answer:
The confidence interval is best described as the margin of error (i.e. the confidence interval
suggests that the actual result of the research is plus or minus that figure. The confidence
4-14 What sample sizes are necessary to cover the population of the whole region in which you
live with a confidence interval of 5 and a 95 percent confidence level? Explain the effect
population size has on a required sample size. (AACSB: Written Communication;
Information Technology; Analytical Thinking)
Answer:
Using Singapore as a sample, the population size would have to take in Indonesia and
Malaysia as a minimum. In this calculation, Singapore (5,399,200), Indonesia (248,649,120)
Company Case Notes
Campbell Soup Company: Watching What You Eat
Synopsis
The Campbell Soup Company is one of those veteran companies that has been around for a long
time. And, there isn’t a product category much older than “soup.” But Campbell has maintained
growth and dominance by maintaining a strong marketing research focus. This case highlights
how Campbell has gone beyond traditional paper and pencil survey methods by employing
state-of-the-art neuroscience methods as well as contemporary “deep dive” ethnographic
methods.
Teaching Objectives
The teaching objectives for this case are to:
1. Introduce students to the concept of a marketing information system.
2. Illustrate the importance of a marketing research plan.
3. Explore non-traditional methods for marketing research.
4. Gain perspective for integrating traditional and non-traditional research methods.
Discussion Questions
4-18 What are the strengths and weaknesses of the Campbell Soup Company’s marketing
information system?
Based on the information provided in this case, it is difficult to find weaknesses in
Campbell’s marketing research program. But a true marketing information system goes
On the other hand, the marketing research program Campbell’s has developed is clearly a
4-19 What objectives does Campbell have for the marketing research efforts described in this
case?
The front portion of the case outlines specific challenges faced by CEO Denise Morrison.
These include reversing the declining market share of the Campbell’s brand as well as
looking for growth opportunities in a mature market. But these objectives are top-level
4-20 Compare the effectiveness of Campbell’s biometric research with its deep dive research.
These are two entirely different animals, each effective at different things. The biometric
research is good at determining consumer reactions to specific marketing mix variables such
4-21 Describe how traditional marketing research could be integrated with Campbell’s research
efforts from this case.
Campbell uses all three types: deep dive, biometric, and traditional survey work. There are
many ways that multiple research methods can be used to support one another. For example,
Teaching Suggestions
As the case points out, no one covets soup. It is a staple that many people love, but they take it
for granted. Begin this case discussion by asking students, “What comes to mind when you think
about ‘soup’”? Let student responses drive the discussion. But steer the discussion to bring out
the emotions that students feel about soup. At the same time, ask them how often they buy soup.
Is this a regular item they purchase or consume? Why or why not?
This case was developed for use with Chapter 4. This case also works well with the customer
value chapter (Chapter 1).
Go to mymktlab.com for the answers to the following Assisted-graded writing questions:
4-22 What is neuromarketing and how is it useful in marketing research? Why is this research
approach usually used with other approaches?
4-23 Describe an example in which marketing research could cause harm to participants. Many
companies have a review process similar to that required for following the government’s
“Common Rule.” Write a brief report explaining this rule and how you would apply it to your
example.
ADDITIONAL PROJECTS, ASSIGNMENTS, AND EXAMPLES
Projects
1. Secondary data consists of information that already exists, having been collected for another
purpose. What are some secondary data sources you might take a look at if you were helping
your college or university develop a recruitment strategy?
2. Observational research involves gathering primary data by observing people. Do you see any
potential ethical conflicts with its use?
3. Why would you want to (or not want to) use a mail questionnaire to reach Generation Y
individuals? Give both pros and cons.
4. Focus group interviewing can be an effective interview technique. Under what situations
does it make sense to use this technique?
Small Group Assignments
1. Form students into groups of three to five. Each group should read the opening vignette to
the chapter on Ferrero. Each group should answer the following questions.
In this case, did Ferrero’s approach to marketing research follow a traditional
marketing research approach or was it a more “contemporary” approach? Explain.
Discuss the key social marketing research tools that Ferrero utilized in researching
customer insights. What other tools would you have used, and how would you use
them?
Do you believe the image of the company has changed because of the research and
new products? Why or why not?
What are some other possible advertising themes you might develop based on
Ferrero’s discoveries from its customer insight research?
2. Form students into groups of three to five. Develop a short questionnaire (seven questions)
designed to determine a respondent’s favorite social media site and the reason why it is the
favorite.
Individual Assignments
1. Take a look at Apple’s Web site (www.apple.com). Examine the pages that discuss the
iPhone 7. What customer insights do you believe Apple paid attention to in the redesign of
its famous mobile device?
2. Construct two simple, 5-question surveys that examine student’s attitudes toward life at your
university. One survey should contain open-ended questions only and the other only
closed-ended questions. Be careful of your wording. Which of the two surveys do you
believe would provide the greatest depth of information? Why?
Think-Pair-Share
Consider the following questions, formulate answers, pair with the student on your right, share
your thoughts with one another, and respond to questions from the instructor.
1. What are the four steps of the marketing research process?
2. What are the differences between causal, exploratory, and descriptive research methods?
3. Why does it make sense to use secondary data before you turn to primary data?
4. What are some of the more substantial drawbacks of observational research?
Outside Examples
1. Secondary data consist of information that already exists somewhere, having been collected
for another purpose. One of the main sources of secondary data is the U.S. Census. Take a
look at the 2010 Census (http://www.census.gov/2010census/). Find data that is relevant to
your home state and/or community. How reliable or accurate do you believe that information
to be?
Possible Solution:
The interesting point of this exercise is for students to realize just how dated and unreliable much of the
secondary data we use to make decisions may be. Although the information contained in this census was
2. Using observational research, gather data on your roommate’s eating habits. What do your
findings tell you? More importantly, what do your findings NOT tell you about his/her eating
habits?
Possible Solution:
Students will come up with a variety of observations. It is important to pay attention to what
the students believe they are discovering about their roommate’s eating habits. They will be
