282 Part 3 Target Market Selection
global markets, particularly through the government
i. One major information source is the U.S. government,
which offers a wealth of information through its
dedicated website, Export.gov.It provides data by
c. When conducting international studies, companies must be
prepared to deal with the following challenges:
i. Language issues—communicating the message in the
most effective way
ii. Cultural issues—capturing local citizens’ interests while
avoiding missteps that could unintentionally offend them
iii. Business environment—political and economic
conditions, trade regulations that affect research studies
and data collection, and potential for short- and long-
term growth
iv. Adjustments in the data collection methods are needed
for primary research in other countries as some
methods do not easily transfer across national
boundaries
2. Mail surveys are usable only in developed
3. Telephone surveys may not be suitable in areas
where many people do not have phones
4. Focus groups may be difficult to arrange due to
social and cultural issues
2. Interpretative research
a. Interpretative research is an observational method developed by
social anthropologists to explain behavior that operates below
conscious thought
b. It provides insights into consumer behavior and the ways in
which consumers interact with brands
i. It is often called as ethnographic studies because the
researcher spends an extensive amount of time
studying the culture (“ethnographic” means a researcher
to different cultural influences
c. Interpretative research focuses on understanding the meaning
of a product or the consumption experience in a consumer’s life
Chapter 10 Marketing Research in the Era of Big Data 283
d. It captures what they actually do, not what they say they do
Assessment check questions
6.1. What are some U.S. organizations that can serve as sources of international
secondary marketing data? The Departments of Commerce and State offer
6.2. What is the most common method of primary data collection outside the
United States? Face-to-face interviewing remains the most common method for
6.3. How is interpretative research typically conducted? Interpretative research
6.4. When should ethnographic research be employed? Ethnographic research
is used to look at the consumer behavior of different groups of people.
ANSWERS AND TEACHING NOTES TO CHAPTER EXERCISES
Chapter 10 Assurance of Learning Review
1. Outline the development and current status of the marketing research function.
Answer: In 1879 the first organized marketing research project took place. In the early 20th century, the
first commercial research department was established. Early research was unsophisticated until the
1930s, when statistical methods led to improved sampling techniques. Today, most leading U.S.
manufacturers have marketing research departments, and the size and organizational form of the
2. What are the differences between full-service and limited-service research suppliers?
Answer: Full-service research suppliers are organizations that contract with clients to conduct complete
marketing research projects (providing qualitative and quantitative data from field studies, face–to-face
3. How does the era of big data present opportunities and challenges to marketing researchers?
4. How do the activities of data mining and predictive analytics work together?
5. List and explain the steps in the marketing research process. Trace a hypothetical study through the
stages in this process.
Chapter 10 Marketing Research in the Era of Big Data 285
Imagine that the management at a firm making frozen pizzas would perceive the need for more
information if the product’s market share dropped from 8 to 5 percent in six months. To define the
problem, the firm looks for underlying causes of market share loss. It conducts exploratory research,
discussing the problem with informed sources within the firm and with wholesalers, retailers, customers,
and others outside the firm. It also examines secondary data sources. Through its customer and retailer
research, it learns that consumers are dissatisfied with the flavor of the pizza sauce. Customers pointed
to this as a major difference between the firm’s brand and other more successful market brands. Based
6. Distinguish between primary and secondary data. When should researchers collect each type of data?
Answer: Primary data is information collected for the first time specifically for a marketing research study,
through observation, survey, or controlled experiment. Secondary data is information from previously
published or compiled sources (such as U.S. Census data), so it has the advantage of being less
expensive to gather and taking less time to locate and use. Researchers should collect primary data
7. What is sampling? Explain the differences between probability and nonprobability samples and identify
the various types of each.
8. Distinguish among surveys, experiments, and observational methods of primary data collection. Cite
examples of each method.
9. Define and give an example of each of the methods of gathering survey data. Under what
circumstances should researchers choose a specific approach?
10. Describe the experimental method of collecting primary data and indicate when researchers should
use it.
Chapter 10 Marketing Research in the Era of Big Data 287
Projects and Teamwork Exercises
1. Answer: Start a discussion on Nielsen and the ways in which it collects data via optical scanners from
the United Kingdom, France, Germany, Belgium, the Netherlands, Austria, Italy, and Finland. Ask
students to explain how this scanner might track sales of UPC-coded products in those nations. Then
have teams (representing retail chains, Internet companies, and toy manufacturers) talk about the types
2. Answer: Have students talk about the challenges Subway may be facing in conducting marketing
research on the possibility of potential new international markets. When a country wants to expand into
foreign nations, what kind of information does it need? What types of research would provide it? In
studying the international markets, what aspects of the potential country will Subway study? Is there any
area that they can ignore?
3. Answer: Have students select a product that is new, or modified. Existing products are to be avoided in
this exercise. Students must select the appropriate, relevant variables, and suggest plans to test market
the product. There are many ways to do test marketing, such as showing it to potential buyers, creating a
4. Answer: Have students share their lists of the ways in which the observational method works to make
existing products appear more appealing or useful. Have them explain how interpretative research can
be used to explore product features such as packaging for food or over-the-counter medication that is
difficult for seniors or the disabled to open. What kind of products did they choose? How would they test
288 Part 3 Target Market Selection
them? Start a discussion on the ways in which interpretative research can be used, and the situations in
5. Answer: Start a discussion on this broad topic. As McDonald’s conducts extensive marketing research for
its new products, it must take into account differences in cultures, tastes, and preferences. But it can’t also use
results of one study for its marketing in another country. What other industries or broad business areas did
students think of that are also limited in this way on a global basis. How can their global research be improved?
And what questions could multinational firms answer? Continue the discussion by having students suggest
Critical-Thinking Exercises
1. Some companies are broadening their markets by updating classic products to appeal to younger
people’s tastes and preferences. What primary and secondary market information would you want to
have if you were planning to reinvigorate an established brand in each of the following categories?
Where and how would you obtain the information?
a. fabric softener
b. gourmet pet food
c. whole wheat pasta
d. electrical appliances
Answer: Students should have little trouble with this exercise assuming they understand the difference
between secondary and primary data, as well as the sources of both. You might want to focus the
2. Marketers sometimes collect primary information by using so-called mystery shoppers who visit stores
anonymously (as if they were customers) and note such critical factors as store appearance and
ambiance, items in stock, and quality of service including waiting time and courtesy of employees.
Prepare a list of data you would want to obtain from a mystery shopper surveying a chain of electronics
Chapter 10 Marketing Research in the Era of Big Data 289
stores in your area. Devise a format for gathering the information that combines your need to compile the
data electronically and the researcher’s need to remain undetected while visiting the stores.
3. Customer loyalty is an important aspect of building a brand, but sales is only one measure of customer
loyalty. Suppose you are a marketer for the goods or services below. For each, list the types of data you
would want to collect to gauge customer loyalty, and the method you would use to gather it.
a. athletic shoes
b. bottled water
c. over-the-counter cold and flu medication
d. self-service car wash
e. travel agency that specializes in adventure vacations
4. The Internet provides ready access to secondary market information but is also a portal to an almost
limitless store of primary information via social networking sites, message boards, chat rooms, email
questionnaires, newsgroups, and website registration forms. What are some specific drawbacks of each
of these methods for obtaining primary information from customers?
Answer: Expect some variation in student responses. Make sure they consider the privacy implications of
Ethics Exercises
Consumer groups sometimes object to marketers’ methods of collecting primary data from customers.
They object to such means as product registration forms; certain types of games, contests, or product
290 Part 3 Target Market Selection
1. Check the websites of a few large consumer products companies. How effectively do you think these
sites are at informing visitors about the use of “cookies” on the sites? Do you think marketers could or
should improve their protection of visitors’ privacy? If so, how?
2. Do you think the AMA’s code of ethics would be violated if marketers compiled a mailing list from
information provided on warranty and product registration cards and then used the list to send customers
new-product information? Why or why not? Does your opinion change if the company also sends list
members special discount offers and private sale notices?
Answer: The exercise deals with several important ethical issues affecting marketing research. It also
illustrates a potential dilemma. On the one hand, product registration forms, contests, and so forth are
Internet Exercises
1. Focus groups. Visit each of the websites listed below. Each discusses the proper way to organize
and conduct a focus group. After reviewing the material, prepare a brief report on the subject.
http://www.businessweek.com/stories/2009–10-08/how-to-conduct-a-focus-group
http://managementhelp.org/businessresearch/focus-groups.htm
http://www.ehow.com/how_4393027_conduct-focus-group.html
Answer: The websites listed above will give students the basic idea of conducting a focus group. They
can even take proactive steps by browsing the Internet and searching for live examples of focus groups,
2. Marketing research firm services. Nielsen is one of the world’s largest marketing research firms. Go
to the firm’s U.S. website (http://en-us.nielsen.com/). Assume you run a small online retailer. What types
of marketing research services could a firm like Nielsen provide to your company? What are some of the
benefits?
Answer: Students must visit Nielsen’s website and take a note of the services offered by them. They may
analyze and identify the services that Nielsen can provide a small online retailer. The potential benefits,
3. Data analysis. The Census Bureau publishes vast amounts of data about the nation each year. Visit
the website shown below. Collect the following data by state: per-capita income, percent of population
living in urban areas, median age, and percent of population with college degrees. Analyze the
relationships between income and urban population, age, and education.
http://www.census.gov
Answer: This exercise is fairly straightforward and students should be able to complete it with minimal
supervision. The exercise will illustrate the range and depth of data available from the U.S. Census
Case 10.1 Gamification: Game Changer for Marketing Research—Questions for Critical Thinking
1. Critics say marketing games manipulate customers into giving away ever more personal information
without the real thrill of game playing. Do you agree? Why or why not?
Answer: Some students may agree to the argument in the question, while others may disagree.
2. Banks say they are cautious about adopting gamification techniques because of concerns about
keeping the collected data secure. Are they right? Why or why not?
Answer: The cautious attitude of banks toward adopting gamification techniques is understandable. If the
collected data falls into the wrong hands, banks around the world will face a major crisis. If the databases
Video Case 10.2 GaGa SherBetter Forecasts Hot Sales, Cold Flavors—Questions for Critical
Thinking
1. How would you define the major problem faced by GaGa that a marketing research program could
resolve? How has this problem affected the marketing of the company’s products? How might marketing
research help?
2. Identify the methods of collecting primary data, and give an example of how GaGa might implement
each method.
Answer: The three methods of collecting primary data are observation, survey, and experiment. GaGa
could observe consumers purchasing different types of frozen desserts at various locations, ranging from
COLLABORATIVE LEARNING EXERCISES
The Marketing Research Process
Purpose:
To help students apply the marketing research process
Background:
On-going marketing research can play a significant role in keeping a business viable over the long
term. This exercise is designed to help students understand how to approach the research
process by applying it to a specific situation.
Relationship to Text:
The Marketing Research Process
Estimated Class Time:
Chapter 10 Marketing Research in the Era of Big Data 293
About 20 minutes
Preparation/Materials:
You may want to copy the scenario and challenge (below) for each student.
Exercise:
After you have reviewed the material on the marketing research process, divide your class into
small groups and distribute the scenario outlined below:
Scenario: You and your partners are the owners of an upscale nightclub called Amnesia Nights
on Sunset Boulevard in Hollywood, California. When you opened the club two years ago, it
The Challenge: You and your team have ten minutes to develop your ideas for marketing
research by responding to the following questions:
• What primary and secondary information would you seek? Why?
• Who would be your research subjects? Why? How would you find them?
• What research methods would you use (e.g. surveys, focus groups, etc.)? Why?
Questions for Reflection:
• Which steps of the marketing research process differ based on the target audience?
• Does product category affect the marketing research process? If so, how?
Sugging
Purpose:
To help students understand more about the ethical issues in marketing research
Background:
Relationship to Text:
The Marketing Research Function
Estimated Class Time:
About 15 minutes
Preparation/Materials:
None needed
294 Part 3 Target Market Selection
Exercise:
Discuss the definition of sugging in the class. Ask students to list some ethical views on this
Questions for Reflection:
• Have you ever been a victim of sugging?
• Do you think sugging is ethical? Why or why not?
Primary Research Methods
Purpose:
To demonstrate a useful projective research technique
Background:
While gathering information through traditional marketing research methods (surveys, focus
Relationship to Text:
Primary Research Methods
Estimated Class Time:
About 10 minutes
Preparation/Materials:
You’ll need to have either dry erase markers or pieces of chalk for five people.
Exercise:
Ask your students to brainstorm a list of five to ten different automobile makes and models that
they know and like. Then, request five volunteers and invite them to the board. Ask each one to
choose a car from the list, and then to draw a picture of how that car would look if it were a person
(assure them that stick figures are fine). Ask them also to complete either a speech or a thought
Questions for Reflection:
• How valid are projective techniques?
• How could you use these methods in conjunction with other types of research?
Chapter 10 Marketing Research in the Era of Big Data 295
Garbology
Purpose:
To explore a rather unorthodox method of primary research
Background:
The text indicates that modern marketing research emerged more than a hundred years ago, due
in large part to a study of garbage for Campbell Soup. Ad salesman Charles Parlin did one of the
first marketing research studies using a very hands-on approach—he counted discarded soup
Relationship to Text:
Primary Research Methods
Estimated Class Time:
Less than 10 minutes
Preparation/Materials:
You may want to do a quick Google search to determine whether searching garbage without
permission in your state is legal.
Exercise:
Share the definition of garbology with your students. (Be prepared for a lot of groans. In fact, you
can tease them and suggest that this exercise involves doing a survey of the garbage can in your
classroom.) Ask them to quickly create a list of things found in a classroom, library, or dorm trash
Questions for Reflection:
• Would garbology be more effective in conjunction with other types of research? Why or why
not?