Marketing Chapter 4 Four The Human Side Marketing Research The Human Side Marketing

Chapter Four: The Human Side of Marketing Research

Chapter 4

The Human Side of Marketing Research:

Organizational and Ethical Issues

AT-A-GLANCE

I. Introduction

II. Who Should Do the Research?

A. Do it yourself or let your fingers do the walking?

III. Working in the Marketing Research Field

A. Research suppliers and contractors

1. Syndicated service

2. Standardized research services

B. Limited research service companies and custom research

C. Size of the marketing research firm

2. Mid-sized firms

3. Large firms

D. The director of marketing research as a manager

E. Cross-functional teams

IV. Conflict Between Marketing Management and Marketing Research

A. Research that implies criticism

B. Money

C. Time

D. Intuitive decision making

E. Future decisions based on past experience

F. Reducing conflict between management and researchers

V. Ethical Issues in Marketing Research

A. Ethical questions are philosophical questions

2. Idealism

B. General rights and obligations of concerned parties

C. Rights and obligations of the research participant

1. Participant’s right to privacy

2. The obligation to be truthful

a. Kid’s stuff is complicated

4. Protection from harm

Chapter Four: The Human Side of Marketing Research

D. Rights and obligations of the client sponsor (user)

1. Ethical behavior between buyer and seller

3. An open relationship with interested parties

E. Privacy

F. Rights and obligations of the researcher

1. The purpose of research is research

a. Mixing sales and research

2. Misrepresentation of research

a. Honesty in presenting results

4. Confidentiality

G. The role of society at large

VI. The Researcher and Conflicts of Interest

LEARNING OUTCOMES

1. Know when research should be conducted externally and when it should be done internally.

3. Become sensitive to the often conflicting relationship between marketing management and

researchers.

5. Appreciate the rights and obligations of a) research respondents – particularly children, b)

research clients or sponsors, c) marketing researchers and d) society.

6. Avoid situations involving a conflict of interest in performing marketing research.

CHAPTER VIGNETTE: If it Feels Green then it is Green?

Environmental concerns influence consumers in myriad ways, but research suggests that even

“environmentally aware” consumers cannot discern the most green product alternative even half

of the time. Imagine being a young researcher, hired to conduct marketing research for a family

owned farm that grows grapes. The manager wants to tap into consumers’ green sensitivities by

using green plastic packaging with the word “sustainable” printed on it. In particular, the

researcher examines whether or not consumers perceive this national brand as better than other

national brands and the locally grown grapes that it competes with regionally. One thing seems

clear: buying green makes consumers feel better, another reason why packaging decisions are

meaningful to the company.

Chapter Four: The Human Side of Marketing Research

SURVEY THIS!

Students are asked to examine items in the questionnaire that pertain to several issues. Were

students required to identify themselves? Can the results be linked to respondents by name? Do

any of the items need to be tied to a name to be useful to the researcher? Are the survey results

anonymous? Should they be?

RESEARCH SNAPSHOTS

➢ The True Power of Research

J.D. Power rates competing companies products and services in many industries based on

feedback from thousands of customers. In addition to rating consumer preferences for

automobiles, they also rate preferences for tires and paint brands. Often, consumers’ number

➢ Learning Marketing Research Can Pay!

Careers in marketing research can be very lucrative, particularly if one is a good people

person with good quantitative skills and a higher-level education (a master’s degree is

preferable to an undergraduate degree). The rise of big data has increased opportunities for

➢ When Nobody is Looking?

An old adage says that one’s character is not defined by doing the right thing when people are

looking, but by the actions one takes when nobody is looking. This holds true for marketing

researchers, who may experience pressure to conduct research in potentially unethical ways.

➢ Research Not Advocate

Customers of research and the producers of research have an ethical responsibility to act in

ways that will promote truthful results as well as an accurate interpretation of results.

However, client or societal forces can sometimes create demands for research only if it seems

Chapter Four: The Human Side of Marketing Research

TIPS OF THE TRADE

➢ A good way to get started in the marketing research industry is to target either a large

marketing research firm or a local research firm with offers to serve as an intern. An

internship will provide insight and experience that can provide a leg up on others in getting

the job.

➢ Those involved in research should consider the position of others involved in the process.

When considering conducting or using research in some manner, one way to help ensure fair

➢ Research with particularly vulnerable segments such as children involves special care. When

doing research with children under the age of 16, the researcher nearly always needs parental

consent.

OUTLINE

I. INTRODUCTION

A. The researcher in the chapter vignette faces a number of dilemmas.

B. This serves as an introduction to marketing research ethics.

II. WHO SHOULD DO THE RESEARCH?

A. Research is sometimes performed in-house, meaning that employees of the company

that will benefit from the research project actually perform the research.

B. If it is performed by an outside agency, that means that the company that will benefit

from the research results hires an independent, outside firm to perform a research

project.

C. Do It Yourself of Let Your Fingers Do the Walking?

1. The following situations favor an outside agency. An outside agency:

a. Often can provide a fresh perspective

2. Conditions that make in-house research more attractive:

a. The research project needs to be completed very quickly

b. Project will require the close collaboration of many other employees from

Chapter Four: The Human Side of Marketing Research

III. WORKING IN THE MARKETING RESEARCH FIELD

A. About three-fourths of all U.S. organizations have a department or individual

responsible for marketing research.

2. Marketing research clearly has a presence and this is particularly true for larger

firms.

B. Placement of marketing research within a firm’s organizational structure and the

structure of the research department depends on the firm’s degree of:

C. Research departments should be positioned to provide credible information both

upstream and downstream within the marketing organization.

D. The term “client” is used by the research department to refer to line management for

whom services are being performed.

E. Research Suppliers and Contractors

2. Provide varied services which can be classified into several types

3. Syndicated Service

a. A marketing research supplier that provides standardized information for

4. Standardized Research Services

a. These companies develop a unique methodology for investigating a business

specialty area (i.e., Retail Forward provides location services for retail

firms).

F. Limited Research Service Companies and Custom Research

2. Full-service research suppliers sometimes contract these companies.

3. Custom research projects are ones that are tailored specifically to a client’s

unique needs.

G. Size of the Marketing Research Firm

2. Small Firms

a. Fewer than 100 employees

Chapter Four: The Human Side of Marketing Research

C. Money

2. Managers often want to spend as little as possible on research, and researchers

resist cutting corners on conducting research.

3. Successful research projects often are those that are based on compromise.

D. Time

1. It can take some time to complete a research project.

2. When studies are rushed, the following sources of error become more prominent

than they would be otherwise:

a. Conducting a study that is not needed – taking more time to perform a

3. However, a sudden event can make it necessary to acquire data quickly, and the

researcher is obligated to point out the study’s limitations.

E. Intuitive Decision Making

2. Although research is a valuable decision-making tool, it does not relieve the

executive of the decision-making task.

3. Many researchers view themselves as technicians and may spend more time on

technical details than on satisfying managerial needs.

F. Future Decisions Based on Past Experience

1. Managers wish to predict the future, but researchers measure only current or past

events.

G. Reducing Conflict between Management and Researchers

2. Early involvement increases the likelihood that managers will accept and act on

the results.

4. Effective communication of the research findings and research design is

important.

V. ETHICAL ISSUES IN MARKETING RESEARCH

A. Ethical Questions Are Philosophical Questions

1. Marketing ethics is the application of morals to behavior related to the exchange

environment.

3. Ethical dilemma refers to a situation in which one chooses from alternative

part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

3. An Open Relationship with Interested Parties

a. Conclusions should be based on data – not conjecture.

b. Advocacy research – research undertaken to support a specific claim in a

legal action or to represent some advocacy group

c. Researchers often conduct advocacy research in their role as an expert

witness.

E. Privacy

2. The client and the research supplier have the obligation to maintain respondents’

privacy.

F. Rights and Obligations of the Researcher

1. Several professional organizations have written and adopted codes of ethics (e.g.,

the American Marketing Association, the Marketing Research Society).

2. Researchers have rights, too:

3. The Purpose of Research Is Research

a. Mixing Sales and Research

i. The FTC has indicated that it is illegal to use any plan, scheme, or ruse

that misrepresents the true status of a person seeking admission to a

prospect’s home, office, or other establishment.

b. Research That Isn’t Research

i. Manager wants research that will justify a decision that already has been

c. Push Polls

Chapter Four: The Human Side of Marketing Research

part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

d. Service Monitoring

i. Researchers are often asked to design satisfaction surveys that may

identify the customer so they may be contacted by the company.

ii. The customer should be asked whether it is okay for someone to follow

up in an effort to improve his or her satisfaction.

4. Misrepresentation of Research

a. The statistical accuracy of a test should be stated precisely and the meaning

of findings should not be under or overstated.

i. Both the researcher and the client share this obligation.

b. Honesty in Presenting Results

5. Honesty in Reporting Errors and Limitation

a. Any major error that has occurred during the course of the study should not

6. Confidentiality

a. The marketing researcher often is obligated to protect the confidentiality of

both the research sponsor and the research participant.

G. The Role of Society at Large

2. Business, society, and individuals all have ethical responsibilities.

3. Marketing research value is diminished when any party breeches a responsibility.

VI. THE RESEARCHER AND CONFLICTS OF INTEREST

A. Conflict of interest – when one researcher works for two competing companies

QUESTIONS FOR REVIEW AND CRITICAL THINKING/Answers

1. What are the conditions that make in-house research preferable? What are the conditions that

make outside research preferable? Would the company in the opening vignette have been

better off to do the marketing research desired in-house rather than out-house?

part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

2. Read a recent news article from The Wall Street Journal or other key source that deals with a

new-product introduction. Would you think it would be better for that firm to do research in-

house or to use an outside agency? Explain.

3. Why is marketing research such an attractive career today?

4. What might the organizational structure of the research department be like for the following

organizations?

part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

5. What problems do marketing research directors face in their roles as managers?

6. What are the managerial motivations that prove a source of conflict with marketing research?

7. What researcher motivations prove a source of conflict with management?

part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

19. How do societal forces play a role in shaping research ethics?

20. [Ethics Question] Comment on the ethics of the following situations:

a. A warehouse club advertises “savings up to 30 percent” after a researcher presented

management with survey results suggesting store prices ranged from 5 percent above the

competition to 30 percent below the average competitor prices.

b. A researcher requests the names of guests attending a professional conference, the titles

of any movies (in-room) they purchased, a list of products consumed from the mini-bar

and a list of room service purchases.

c. A researcher tells a potential respondent that an interview will last ten minutes rather than

the thirty minutes he or she actually anticipates.

d. A respondent tells an interviewer that she wishes to cooperate with the survey, but her

time is valuable and, therefore, she expects to be paid for the interview.

e. An academic researcher performs basic research based on Facebook comments from guys

talking about women acquaintances using salacious terms.

part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

consent before using participants’ comments, even in an online environment.

f. A manager for a data service firm asks a researcher for the IP addresses of research

respondents to a short consumer survey investigating factors leading to the likelihood of

changing service providers.

This violates the research respondents’ right to privacy.

21. [Ethics Question] Go back and review the example of a researcher wishing to conduct

research about consumers and tattoos discussed in the chapter. A) What ethical concepts does

the example illustrate? B) Describe a way in which the research could be designed to avoid

any ethical issues.

RESEARCH ACTIVITIES

1. Find the mission statement of at least 3 of the top research firms described earlier in the

chapter (see Exhibit 4.2). What career opportunities exist at these firms? Would you consider

each a small, mid-sized or large firm? How might a job with one of these firms differ from

starting your own research business?

part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

password-protected website for classroom use.

CASE 4.2 Big Brother Is Watching?

Objective: To encourage students to think about the ethical issues surrounding individuals’

privacy and the impact on research.

Summary: Technology is making our behavior more and more difficult to keep secret. Mobile

phones, RFID tags and GPS (Global Positioning Satellite) devices are ways that your location and

movements might be tracked. While legitimate uses of this type of technology exist and may

assist in easing traffic patterns and provide better locations for retail establishments, at what point

does the collection of such information become a concern?

Question

Suppose a GIS (Geographic Information Systems) research firm is approached by the state

legislature and asked to provide data about vehicle movement within the state for all cars with a

This question brings up two points: the rights of participants and the obligation of the researcher.

Participants have a right to privacy, and in this case, a GIS research firm is collecting data from

respondents passively. If this information is to be shared with a third party (i.e., the government)