978-1337116800 Chapter 9 Solution Manual Part 1

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subject Authors Carl Mcdaniel, Charles W. Lamb, Joe F. Hair

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Chapter 9: Marketing Research
1
Chapter 9
Marketing Research
This chapter begins with the learning outcome summaries followed by a set of lesson plans for
instructors to use to deliver the content.
Lecture (for large sections) on page 4
Company Clips (video) on page 6
Group Work (for smaller sections) on page 8
Review and Assignments begin on page 11
Review questions
Application questions
Application exercise
Ethics exercise
Video Assignment
Case assignment
Great Ideas for Teaching Marketing from faculty around the country begin on page 25
Part 2Integrated Case Assignments begin on page 32
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Chapter 9: Marketing Research
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Learning Outcomes
9-1 Define marketing research and explain its importance to marketing decision making
Marketing research is the process of planning, collecting, and analyzing data relevant to a
9-2 Describe the steps involved in conducting a marketing research project
The marketing research process involves several basic steps. First, the researcher and the
decision maker must agree on a problem statement or set of research objectives. Social media
9-3 Discuss the profound impact of the Internet on marketing research
The Internet has simplified the secondary data search process. Internet survey research is surging
9-4 Describe the growing importance of mobile research
Mobile survey traffic now accounts for approximately 30 percent of interview responses. Mobile
surveys are designed to fit into the brief cracks of time that open up when a person waits for a
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
9-5 Discuss the growing importance of scanner-based research
A scanner-based research system enables marketers to monitor a market panels exposure and
9-6 Explain when marketing research should be conducted
Because acquiring marketing information can be time consuming and costly, to acquire
9-7 Explain the concept of competitive intelligence
Competitive intelligence (CI) helps managers assess their competitors and their vendors in order
Key Terms
Behavioral targeting (BT)
Experiment
Open-ended question
Big data
Field service firm
Primary data
Central-location telephone
(CLT) facility
Focus group
Probability sample
Central-location telephone
(CLT) facility
Closed-ended question
Frame error
Random error
InfoScan
Random sample
Competitive intelligence (CI)
Mall intercept interview
Research design
Computer-assisted personal
interviewing
Management decision problem
Sample
Computer-assisted personal
Marketing research
Sampling error
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Chapter 9: Marketing Research
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interviewing
Computer-assisted self-
interviewing
Marketing research objective
Scaled-response question
Convenience sample
Marketing research problem
Scanner-based research
Cross-tabulation
Measurement error
Secondary data
Ethnographic research
Mystery shoppers
Social media monitoring
Executive interview
Neuromarketing
Survey research
Nonprobability sample
Universe
Observation research
Lesson Plan for Lecture
Brief Outline and Suggested PowerPoint Slides
Learning Outcomes and Topics
PowerPoint Slides
LO1 Define marketing research and explain
its importance to marketing decision
making
9-1 The Role of Marketing Research
1. Marketing Research
2. Learning Outcomes
3. Learning Outcomes (continued)
4. The Importance of Understanding
Consumer Behavior
5. Marketing Research
6. Role of Marketing Research
7. Management Uses of Marketing Research
LO2 Describe the steps involved in
conducting a marketing research
project
9-2 Steps in a Marketing Research
Project
8. Steps in a Marketing Research Project
9. Exhibit 9.1: The Marketing Research
Process
10. Components of a Marketing Research
Project
11. Sources of Secondary Data
12. Advantages and Disadvantages of
Secondary Data
13. Big Data
14. Planning the Research Design
15. Primary Data
16. Exhibit 9.2: Characteristics of Traditional
Forms of Survey Research
17. Types of Questions
18. Ways to Improve Clarity in an Interview
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Chapter 9: Marketing Research
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Learning Outcomes and Topics
PowerPoint Slides
19. Observation Research
20. Forms of People-Watching-People
Research
21. Ethnographic Research
22. Experiments
23. Exhibit 9.5: Types of Samples
24. Types of Errors
25. Collecting and Analyzing the Data
26. Exhibit 9.6: Popcorn Cross-Tabulation
27. Preparing and Presenting the Report and
Follow Up
LO3 Discuss the profound impact of the
Internet on marketing research
9-3 The Profound Impact of the Internet
on Marketing Research
28. The Profound Impact of the Internet on
Marketing Research
29. Impact of the Internet
30. Advantages of Internet Surveys
31. Uses of the Internet by Marketing
Researchers
32. Methods of Conducting Online Surveys
33. Online Focus Groups - Advantages
34. Web Community Research
LO4 Describe the growing importance of
mobile research
9-4 The Growing Importance of Mobile
Research
35. The Growing Importance of Mobile
Research
36. Mobile Research
LO5 Discuss the growing importance of
scanner-based research
9-5 Scanner-Based Research
37. Scanner-Based Research
38. Scanner-Based Research
LO6 Explain when marketing research
should be conducted
9-6 When Should Marketing Research
Be Conducted?
39. When Should Marketing Research be
Conducted?
40. When Should Marketing Research be
Conducted?
41. Exhibit 9.7: A Simple Flow Model of the
Customer Relationship Management
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Chapter 9: Marketing Research
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Learning Outcomes and Topics
PowerPoint Slides
System
LO7 Explain the concept of competitive
intelligence
9-7 Competitive Intelligence
42. Competitive Intelligence
43. Sources of Competitive Intelligence
44. Key Terms
45. Key Terms
46. Summary
Suggested Homework
The end of this chapter contains assignments for the Nederlander Organization video and
for the Axe case.
This chapters online study tools include flashcards, visual summaries, practice quizzes,
and other resources that can be assigned or used as the basis for longer investigations into
marketing.
Lesson Plan for Video
Company Clips
Segment Summary: The Nederlander Organization
The Nederlander Organization is at the forefront of using technology to understand its customers
and the ways that those theatregoers purchase tickets. This video clip discusses specific ways the
Nederlander Organization collects data and then leverages that information to the benefit of the
customer.
These teaching notes combine activities that you can assign students to prepare before class, that
you can do in class before watching the video, that you can do in class while watching the video,
and that you can assign students to complete as assignments after watching the video in class.
During the viewing portion of the teaching notes, stop the video periodically where appropriate
to ask students the questions or perform the activities listed on the grid. You may even want to
give the students the questions before starting the video and have them think about the answer
while viewing the segment. That way, students will be engaged in active viewing rather than
passive viewing.
Pre-Class Prep For You
Pre-Class Prep For Your Students
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Chapter 9: Marketing Research
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Preview the Company Clips video segment
for Chapter 9. This exercise reviews
concepts for LO1, LO2, and LO3.
Review your lesson plan.
Make sure you have all of the equipment
needed to show the video to the class,
including the DVD and a way to project
the video.
You can also stream the video HERE.
Have students familiarize themselves with
the following terms and concepts: marketing
research, marketing research process,
marketing research problem, marketing
research objective, management decision
problem, open- and close-ended questions,
research design, primary data, and
secondary data.
Ask students to define and provide a detailed
example of a marketing research problem and
a management decision problem.
Activity
Warm Up
Begin this session by asking students to explain the difference between a
marketing research problem and a management decision problem.
In-Class
Preview
Segue into a review of the importance of marketing research to marketing
decision making.
Have students form teams of up to four members. Ask each team to brainstorm
several ways they can capture data about customers (e.g., frequent shopper
program, credit card databases, internet research, and surveys).
Move from team to team, and prompt them with additional questions.
Examples include How will you turn that data into useful, valuable
information? and What are the risks of not collecting data or collecting the
wrong data?
Have teams remain in place to watch the video segment about The
Nederlander Organization.
Review the Company Clips questions below, and make sure students are
prepared to discuss them with their group after viewing the video.
Viewing
(Solutions
below)
1. What are some of the methods mentioned in the video that the
Nederlander Organization uses to gather primary data?
2. In what way does the Nederlander Organization use secondary data?
Follow-up
Have the student teams re-form to respond to the viewing activity. Again,
move from team to team to respond to questions or redirect discussion.
Take-home activity: Have each student reread the book section on
questionnaire design and then design their own questionnaire on a product or
service of their own choosing to be turned in later.
Solutions for Viewing Activities
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Chapter 9: Marketing Research
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1. What are some of the methods mentioned in the video that the Nederlander
Organization uses to gather primary data? How does the company leverage that
data?
The Nederlander Organization has several ways in which it gathers information about its
theatregoers. Students could mention monitoring activity from the Broadway direct
2. In what way does the Nederlander Organization use secondary data?
The primary use of secondary data mentioned in this clip is using the contact information
Lesson Plan for Group Work
In most cases, group activities should be completed after some chapter content has been covered,
probably in the second or third session of the chapter coverage. (See Lesson Plan for Lecture
above.)
For Class Activity: Pepsi/Coke Taste Test, provide the information and the questions
asked by the class activity.
Application questions 6, 8, and 12 lend themselves well to group work. For those activities,
divide the class into small groups of four or five people. Each group should read the
question and then use their textbooks, or any work that was completed previously, to
perform the exercise. Then, each group should discuss or present their work to the class.
Class ActivityPepsi/Coke Taste Test
Part One
First, ask each student to select either the letter M or Q. Next, ask them to select a number from 1
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Chapter 9: Marketing Research
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to 4. Tally the results.
How did the Pepsi/Coke taste test evolve? In the late 1970s, Pepsi was looking for a creative
promotion for its big problem area: the southwestern United States. Pepsis national market share
was 17 percent at the time but only 8 percent in the Southwest. Pepsi decided to stage a blind
taste test using a sample of loyal Coke drinkers in the Southwest. Pepsi had the volunteers taste
test two colasone labeled M (Pepsi) and one labeled Q (Coke)and state their preference.
In this test, more than half the Coke drinkers chose the product labeled M (Pepsi). Pepsi
advertised the results in a promotion in the Dallas-Fort Worth area, and sales of Pepsi doubled.
The promotion was so successful that Pepsi introduced it into seven other market areas.
At this point, Coca-Cola announced that Pepsis taste test was biased and unfair. Coca-Cola
pointed out that variables other than taste were affecting volunteers choices. One extraneous
variable is that people have a natural preference for the letter M over the letter Q. As a result, the
preference for product M could be based on taste or could be a subconscious preference for the
letter.
In extensive testing, when people were asked to pick either Q or M, 78 percent chose M and 22
percent preferred Q. When people were asked to choose a number from 1 to 4, 70 percent chose
2 or 3, and only 30 percent chose 1 or 4. How do your class results compare?
Part Two
Before Coke introduced its reformulated New Coke in 1985, it conducted almost 200,000
blind taste tests with consumers. The following are the results.
New Coke (55 percent) chosen over original Coke (45 percent)
New Coke (52 percent) chosen over Pepsi (48 percent)
However, after New Coke was introduced, it failed miserably in the market. The original formula
was reintroduced a few months later as Coca-Cola Classic.
You can replicate the taste test comparing Coke Zero, Coca-Cola Classic, and Pepsi in the
following manner:
1. Get 40 small paper cups, and label 10 with the letter R, 10 with S, 10 with T, and 10 with
the letter W.
2. Outside the room, have a student volunteer randomly assign Coke Zero, Coca-Cola
Classic, and Pepsi to the letters R, S, and T. Write down which soft drink goes with which
letter.
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Chapter 9: Marketing Research
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3. At the start of the class, select 10 students as taste testers. The subjects should be regular
consumers of non-diet cola (at least six 12-ounce bottles in the last month). Place the
students at the front of the classroom.
4. Outside the room, the student volunteer should be filling each cup with the appropriate
soda. Fill the W cups with water.
5. Put an R, S, T, and W cup in front of each student, and hand each student a copy of the
Cola Taste Test Form provided.
6. To eliminate order bias, have three of the students begin the taste test with cup R, three
with cup S, and four with cup T. Have them take a sip of water between colas and continue
to sample and test in any order they wish. They can resample as needed to fill out the
questionnaire.
7. Have a student tabulate the answers during class, and share the results at the end of class.
The form could even lend itself to cross-tabulations (between preferences and answers to
questions 5 or 6) if the sample were larger.
Cola Taste Test Form
1. In comparing the tastes of R and S,
____ I prefer R.
____ I am indifferent between R and S.
____ I prefer S.
2. In comparing the tastes of S and T,
____ I prefer S.
____ I am indifferent between S and T.
____ I prefer T.
3. In comparing the tastes of T and R,
____ I prefer T.
____ I am indifferent between T and R.
____ I prefer R.
4. Which of the following brands are R, S, and T?
a. Coke Zero is ____
b. Pepsi Cola is ____
c. Coca-Cola Classic is ____
5. During the past month, estimate your consumption of the three colas so that they total 100
percent:
Coke Zero _______ percent
Pepsi Cola _______ percent
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Coca-Cola Classic _______ percent
Total 100 percent
6. How many 12-ounce cans or bottles of sugared cola have you consumed in the past 30
days?
____ 6 or fewer ____ 13 to 24
____ 7 to 12 ____ 25 or more
Review and Assignments for Chapter 9
Review Questions
1. The task of marketing is to create exchanges. What role might marketing research
play in the facilitation of the exchange process?
2. Give an example of 1) the descriptive role of marketing research, 2) the diagnostic
role, and 3) the predictive function of marketing research.
Descriptive marketing research examples should describe gathering and presenting factual
3. Marketing research has traditionally been associated with manufacturers of
consumer goods. Today, we are experiencing an increasing number of organizations,
both profit and nonprofit, using marketing research. Why do you think this trend
exists? Give some examples.
Students will need to explain that every type of firm should be endeavoring to serve their
4. Why are secondary data sometimes preferred to primary data?
Secondary data is readily available and much less expensive than primary data. Often the
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
the development of primary studies.
5. What is a marketing research aggregator? What role do these aggregators play in
marketing research?
The role of marketing research aggregators is to acquire, catalog, reformat, segment, and
6. Ethnographic research is a new (and expensive) trend in marketing research. Find an
article on ethnographic research. Read and summarize the article. What is your
opinion of ethnographic research? Do you think it will be the wave of the future?
Explain your reasoning.
Students answers may vary widely as they express their opinions of ethnographic
research.
7. Describe the advantages and disadvantages of online surveys.
Advantages of Internet surveys include speed, low cost, creation of longitudinal studies,
8. Why has scanner-based research been seen as the ultimate answer for marketing
researchers? Do you see any disadvantages of this methodology?
Scanner-based research provides an accurate, objective picture of the direct causal
relationship between different kinds of marketing efforts and actual sales. Many non-
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
they buy. Scanner-based research may not be able to isolate certain marketing efforts if
there are many activities going on at once.
Application Questions
1. Write a reply to the following statement: I own a restaurant in the downtown area. I
see customers every day whom I know on a first-name basis. I understand their likes
and dislikes. If I put something on the menu and it doesnt sell, I know that they
didnt like it. I also read the magazine Modern Restaurants, so I know what the trends
are in the industry. This is all of the marketing research I need to do.
Although students answers will vary, they should address some of these points: Making
2. Critique the following methodologies, and suggest more appropriate alternatives:
a. A supermarket was interested in determining its image. It dropped a short
questionnaire into the grocery bag of each customer before putting in the
groceries.
b. To assess the extent of its trade area, a shopping mall stationed interviewers in
the parking lot every Monday and Friday evening. Interviewers walked up to
persons after they had parked their cars and asked them for their ZIP codes.
c. To assess the popularity of a new movie, a major studio invited people to call a
900 number and vote yes (they would see it again) or no (they would not see it
again). Each caller was billed a two-dollar charge.
a. The supermarket should have short intercept interviews or phone interviews to get
more participation. If it does decide to hand out questionnaires, someone should
3. You have been charged with determining how to attract more business majors to your
school. Write an outline of the steps you would take, including the sampling
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procedures, to accomplish the task.
The first step is to define the problem or questions that this research needs to examine. The
4. Discuss when focus groups should and should not be used.
Focus groups are used when a researcher needs detailed information or needs to
5. Divide the class into teams of eight persons. Each group will conduct a focus group on
the quality and number of services that your college is providing to its students. One
person from each group should be chosen to act as moderator. Remember, it is the
moderators job to facilitate discussion, not to lead the discussion. These group
sessions should last approximately 45 minutes. If possible, the groups should be
videotaped or recorded. Upon completion, each group should write a brief report of
its results. Consider offering to meet with the dean of students to share the results of
your research.
This is a project question, and results will vary.
6. Go to http://www.strategicbusinessinsights.com/vals/presurvey.shtml, and take the
VALS Survey. Report on how marketing researchers are using this information.
Students reports will vary.
7. Divide the class into teams. Each team should go to a different opt-in survey site on
the Web and participate in an online survey. A spokesperson for each team should
report the results to the class.
This is a project question and results will vary.
8. Detractors claim that scanner-based research is like driving a car down the road
looking only in the rearview mirror. What does this mean? Do you agree?
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This is a major disadvantage to scanner-based research: it gathers information on the past
but may not be able to predict the future. Students can argue for or against this statement.
9. Why do you think that competitive intelligence (CI) is so hot in todays environment?
10. Prepare a memo to your boss at United Airlines, and outline why the organization
needs a CI unit.
Students responses will vary depending on the specific reasons that the student chooses to
11. Form a team with three other students. Each team must choose a firm in the PC
manufacturing industry. Next, each team will go to the website of the firm and
acquire as much competitive intelligence as possible. Each team will then prepare a
five-minute oral presentation on its findings.
Students results will vary depending on the firm they have chosen. However, they should
12. Why do companies hire mystery shoppers?
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Chapter 9: Marketing Research
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Mystery shoppers are researchers posing as customers who gather observational data about
a store. Companies also hire these shoppers to study customeremployee interactions.
Mystery shoppers also:
Application Exercise
For its Teens and Healthy Eating: Oxymoron or Trend? study, New Yorkbased BuzzBack
Market Research focused on snacking. Among its findings, teens eat an average of three snacks
per day, and breakfast is the meal they skip most often. Though scads of snacks are stacked on
store shelves, when it comes to healthier treats targeting adolescents, its a bit of a teenage
wasteland. BuzzBack asked 532 teen respondents to conjure up new foods theyd gobble up. The
following are some of their ideas:
Travel fruit. Why cant fruit be in travel bags like chips or cookies? Canned fruit is too
messy. Maybe have a dip or something sold with it, too. Female, age 17
A drink that contains five servings of fruits and vegetables. Male, age 16, Caucasian
I would invent all natural and fat-free, vitamin-enhanced cookies and chips that had great
flavor. Female, age 16
I would make fruit-based cookies. Male, age 16, Caucasian
Low-carb trail mix, because trail mix is easy to eat but it has a lot of fat/carbs. Female,
age 15, Caucasian
I would create some sort of microwavable spaghetti. Male, age 16, Caucasian
Something quick and easy to make thats also cheap. Ill be in college next year, and Im
trying to find things that are affordable, healthier than cafeteria food, and easy to make.
Female, age 17
Good vegan mac n cheese. Female, age 18, Caucasian
A smoothie where you could get all the nutrients you need, that tastes good, helps you
stay in shape, and is good for you. Has vitamins A, B3, B12, C, ginkgo. Packaging would
be bright. Female, age 16, African American
A breakfast shake for teens. Something easy that tastes good, not necessarily for dieters
like Slim Fast, etc. Something to balance you off in the morning. Male, age 18
Source: Becky Ebenkamp, The Market Is the Message, What If Teenagers Ruled the R&D
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Roost? Brandweek, July 11, 2005, 16 and 17.
Activities
1. You are a new-product development specialist at Kraft. What guidance can you get from
the BuzzBack study?
2. Choose one of the suggestions from the above list of healthy snack concepts. Imagine that
your company is interested in turning the idea into a new product but wants to conduct
market research before investing in product development. Design a marketing research
plan that will give company managers the information they need before engaging in new-
product development of the idea. Once you have finished your plan, collect the data.
Depending on the data-collection methods you have outlined in your plan, you may need to
make adjustments so that you can collect actual data to analyze.
3. Analyze the data you collected, and create a report for your company, either
recommending that the company pursue the idea you chose or investigate another.
Purpose: To show how marketing research supports all of the marketing functions
Setting It Up: This exercise is well-suited to small group work in class. Once groups have made
their lists, have groups come together to share their results as a class.
This exercise was inspired by the following Great Ideas for Teaching Marketing.
Matthew D. Shank, Northern Kentucky University
Fred Beasley, Northern Kentucky University
Understanding the Importance of Marketing Research (Or Why Do I Have to Take This
Class?)
What three words best describe how students feel about marketing research before entering the
course? Do hard, boring, and unnecessary come to mind? To combat these negative
expectations, an in-class exercise can be used in the first class meeting to hopefully change
students attitudes toward marketing research.
The exercise begins by asking students to list and describe the basic functions of marketing. This
task may be facilitated by providing the students with any product or service (e.g., athletic
footwear, cars, and universities) and asking what functions should be performed to successfully
market this product or service. After discussing the functions, the students are told to list all of
the potential research activities needed to support each of the marketing functions. The typical
list of functions and some of the related marketing research activities are shown below.
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Chapter 9: Marketing Research
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Basic Marketing
Functions
Examples of Research Activities
Promotion Planning
Ad Effectiveness
Media Research
Sales Promotion Effectiveness
Distribution Planning
Retail Image Studies
Site Location Analysis
Price Planning
Price Elasticity
Demand Analysis
Product/Service
Planning
Brand Image Research
Package Design Studies
Test Marketing
Scope of the
Organization
Concept Testing
Market Development Studies
Consumer Analysis
Satisfaction Studies
Attitude and Usage Studies
Environmental
Analysis
Secondary Data Collection Competitive Analysis
Marketing
Management
Target Market Identification
Positioning Studies
Segmentation Studies
The broad purpose of this in-class exercise is to stress the importance of marketing research and
set the tone for the semester. More specifically, the exercise has the following benefits:
It serves as a review of the basic marketing functions.
It provides the students with a basis for developing a list of questions for their initial client
meeting. (Note: Students conduct research for businesses in the community.)
It positions research in the context of the overall marketing discipline.
It explores the critical link between research and the basic marketing functions.
Ethics Exercise
John Michael Smythe owns a small marketing research firm in Cleveland, Ohio, which employs
75 people. Most employees are the sole breadwinners in their families. Johns firm has not fared
well for the past two years and is on the verge of bankruptcy. The company recently surveyed
over 2,500 people in Ohio about new-car purchase plans for the Ohio Department of Economic
Development. Because the study identified many hot prospects for new cars, a car dealer has
offered John $8,000 for the names and phone numbers of people saying they are likely or
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Chapter 9: Marketing Research
19
very likely to buy a new car within the next 12 months. John needs the money to avoid laying
off a number of employees.
1. Should John Smythe sell the names?
This dilemma is particularly tricky because it involves the interests of John as both a
2. Does the AMA Code of Ethics address this issue? Go to
http://www.marketingpower.com, and review the code. Then, write a brief paragraph
on what the AMA Code of Ethics contains that relates to John Smythes dilemma.
The AMA Code of Ethics does have verbiage requiring marketers to apply confidentiality
Video Assignment: The Nederlander Organization
1. Using information collected for Ricky Martins fan club would be considered:
a. primary data
b. meeting the research objective
c. secondary data
d. survey research
2. Broadway Direct offers a collection of people who have signed up to receive a newsletter
about Nederlander theatre events. Most of these individuals also purchased tickets to see a
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show at a Nederlander owned theatre. If used as a sample for a marketing research project,
Broadway Direct would be a:
a. judgment sample.
b. probability sample.
c. observation research.
d. convenience sample.
3. When the Nederlander Organization retargets recipients of email pre-sale blasts (such as
the one used for Evita) based on whether they clicked buy tickets and did not make the
purchase, they are:
a. using behavioral targeting to send follow-up messages.
b. using behaviorscan to understand why they didnt purchase tickets.
c. performing observation research on email marketing success and failure.
d. demonstrating how virtual shopping can use personal selling techniques.
4. When someone opts in to receive Broadway direct newsletters, what step in the CRM
system are they fulfilling for the Nederlander organization?
a. They are helping Nederlander understand its interactions with the current customer
base.
b. They are helping Nederlander capture customer data based on interactions.
c. They are helping Nederlander identify its best customers.
d. They are helping Nederlander leverage stored information.
Case Assignment: FritoLay
FritoLay, which is owned by PepsiCo, always wants to know what is on their customers’ minds

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