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In part a), perhaps the best way to select a sample is through the use of stratified sampling,
especially if demand is likely to vary by classification (freshmen, etc.). The student directory
should provide this information. However, quota sampling, which is nonprobabilistic, may suffice
for exploratory research.
In part b), mail surveys may be the cheapest (because of campus mail) and may be suitable for the
Class Exercise 2: Solving Data Collection Problems
This exercise is designed to prompt students to think about how to solve data collection problems.
Students should discuss the merits of alternative data collection methods as they solve each problem.
Obviously, each problem can be solved by more than one collection method. The students should decide
which data collection procedure is best for each situation and be able to defend their choices.
Prompt for Students:
What is the most appropriate data collection method for each of the following research questions?
1. How do consumers in South Dakota feel about Christmas shopping?
2. How do JCPenney customers feel about JCPenney’s customer service?
3. What is the opinion of U.S. consumers toward a Chrysler advertisement that questions the quality
of Japanese cars?
4. How many people nationwide currently live in apartments?
5. How do Sears charge customers view that company’s new pricing policy?
Answers:
1. Telephone interviews or possibly focus group interviews
Class Exercise 3: Designing a Research Study
Recommended as a group activity
Prompt for Students:
98 Chapter 5: Marketing Research and Information Systems
In this chapter you were introduced to the various techniques used by marketers to collect data from
You have been hired by a small used-CD shop to survey its customers about what other types of products
they should stock. The owners have considered the following: comic books, anime, collectible figures,
posters, used DVDs, used video games, and used musical instruments. The owners are uncertain which
products to add to their inventory.
Step 1: Define the problem.
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CHAPTER QUIZ
1. Research design means developing a plan for obtaining the necessary market information. When a
researcher forms an informed guess or assumption about a certain problem, he or she is
a. conducting a search of secondary data.
b. forming a hypothesis.
c. examining research reliability.
d. considering how to collect primary data.
e. examining research validity.
2. The first step in the marketing research process is
a. defining the problem or research issue.
b. designing the research project.
c. collecting data.
d. interpreting research findings.
e. reporting research findings.
3. When a population is divided into distinct groups based on some particular characteristic and a
probability sample is taken from each group, this exemplifies _________ sampling.
4. External sources of secondary data include trade associations, periodicals, government publications,
unpublished sources, and
a. focus groups.
b. exploratory research.
c. personal interviews.
d. experimental research.
e. online databases.
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ANSWERS TO DISCUSSION AND REVIEW QUESTIONS
1. What is marketing research? Why is it important?
Marketing research is the systematic design, collection, interpretation, and reporting of information
2. Describe the five steps in the marketing research process.
Students should be able to describe each of the following steps: 1) Locate and define the problem or
3. What is the difference between defining a research problem and developing a hypothesis?
4. Describe the different types of approaches to marketing research and indicate when each
should be used.
Exploratory research is conducted to gather more information about a problem or to make a
5. Where are data for marketing research obtained? Give examples of internal and external
data.
Data for marketing research can come from internal or external sources. Internal sources may
6. What is the difference between probability sampling and nonprobability sampling? In what
situation would random sampling be best? Stratified sampling? Quota sampling?
In probability sampling, every element in the population being studied has a known chance of being
selected for study. In nonprobability sampling, there is no way to calculate the likelihood of
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7. Suggest some ways of encouraging respondents to cooperate in mail surveys.
Students’ responses may vary but should indicate an understanding of the growing challenges of
8. If a survey of all homes with listed telephone numbers is conducted, what sampling design
should be used?
9. Describe some marketing problems that could be solved through information gained from
observation.
Personal observation can be used to solve problems such as shoplifting, spoilage, and breakage.
10. What is a marketing information system, and what should it provide?
A marketing information system is a framework for the day-to-day management and structure of
11. Define a database. What is its purpose, and what does it include?
A database is a collection of information arranged for easy access and retrieval, usually stored in a
12. How can marketers use online services and the Internet to obtain information for decision
making?
13. What role do ethics play in marketing research? Why is it important that marketing
researchers be ethical?
It is essential that professional standards be established by which research may be judged reliable
14. How does marketing research in other countries differ from marketing research in the United
States?
Marketing research in other countries uses the same five-step process described in this chapter.
102 Chapter 5: Marketing Research and Information Systems
ANSWERS TO APPLICATION QUESTIONS
1. After observing customers’ traffic patterns, Bashas’ Markets repositioned the greeting card
section in its stores, and card sales increased substantially. To increase sales for the
following types of companies, what information might marketing researchers want to
gather from customers?
Students will have to provide a variety of ideas.
2. When a company wants to conduct research, it must first identify a problem or possible
opportunity to market its goods or services. Choose a company in your city that you think
might benefit from a research project. Develop a research question and outline a method to
approach this question. Explain why you think the research question is relevant to the
organization and why the particular methodology is suited to the question and the
company.
Student answers will vary depending on the local business, but students should present a logical
3. Input for marketing information systems can come from internal or external sources.
ACNielsen Corporation is the largest provider of single-source marketing research in the
world. Identify two firms in your city that might benefit from internal sources and two that
might benefit from external sources. Explain why these sources would be useful to these
companies. Suggest the type of information each company should gather.
4. Suppose you are opening a health insurance brokerage firm and want to market your
services to small businesses with fewer than 50 employees. Determine which database for
marketing information you will use in your marketing efforts, and explain why you will use
it.
Students will need to conduct some outside research or visit the business school’s library to get a
5. You work as a marketing researcher for a manufacturer of energy drinks that is targeting a
new product toward college and university students. In order to learn more about their
energy drink habits, the company plans to conduct a mail survey. You know from past
experience that the response rate for mail surveys is approximately 10 percent. Your
manager tells you that he wants at least 550 completed surveys in order to make an
informed decision. You also know that approximately 14 percent of respondents that mail
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surveys back to you fail to answer certain questions. Given the low response rate and the
rate of unfinished surveys, how large will the sample size need to be to comply with your
manager’s request? With this estimated response rate and the number of surveys that the
company plans to distribute, do you feel that this sample will be representative of the entire
population of college and university students?
This is an example of the type of question marketing researchers face. The logic and math behind
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ANSWERS TO INTERNET EXERCISE
European Society for Opinion and Marketing Research
ESOMAR, the European Society for Opinion and Marketing Research, was founded in 1948. It is a
nonprofit association for marketing research professionals. ESOMAR promotes the use of opinion
and marketing research to improve marketing decisions in companies worldwide and works to protect
personal privacy in the research process. Visit the association’s website at www.esomar.org.
1. How can ESOMAR help marketing professionals conduct research to guide marketing
strategy?
This information can be found under the “About ESOMAR” tab. According to the website,
2. How can ESOMAR help marketers to protect the privacy of research subjects when
conducting marketing research in other countries?
3. ESOMAR introduced the first professional code of conduct for marketing research
professionals in 1948. The association continues to update the document to address new
technology and other changes in the marketing environment. According to ESOMAR’s
code, what are the specific professional responsibilities of marketing researchers?
This information can be found in the International code, which is located under the “Knowledge
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ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The information obtained from these questions should assist you in developing various aspects of
your marketing plan found in the Interactive Marketing Plan exercise at www.cengagebrain.com.
1. Define the nature and scope of the questions you must answer with regard to your market.
Identify the types of information you will need about the market to answer those questions.
For example, do you need to know about the buying habits, household income levels, or
attitudes of potential customers?
This question asks students to think seriously about all of the questions they must ask themselves with
2. Determine whether or not this information can be obtained from secondary sources. Visit
the websites provided in Table 5.3 as possible resources for the secondary data.
Students may want to review their understanding of primary versus secondary sources of data before
3. Using Table 5.4, choose the appropriate survey method(s) you would use to collect primary data
for one of your information needs. What sampling method would you use?
The final question asks students to review Table 5.4, which compares different survey methods, and
106 Chapter 5: Marketing Research and Information Systems
COMMENTS ON THE CASES
VIDEO CASE 5.1: MARKETING RESEARCH REVEALS MARKETING
OPPORTUNITIES IN THE BABY BOOMER GENERATION
Summary
This case illustrates how a variety of marketing research techniques can help marketers meet the
needs of a target market. Baby Boomers are a profitable demographic, and with approximately 20
Questions for Discussion
1. Why are Baby Boomers such a lucrative market?
Baby Boomer spending has been increasing, and they are estimated to have $3.4 trillion in annual
2. How has the marketing research process been used to understand how Baby Boomers shop
and interact in stores?
Because marketers often target younger generations of consumers, little thought has been given
3. How have stores used marketing research findings to tailor their stores and products to
appeal to Baby Boomers?
Many businesses have used marketing research findings to customize their retail environments
Chapter 5: Marketing Research and Information Systems 107
CASE 5.2: AT THREADLESS, CUSTOMERS DESIGN THE PRODUCT
Summary
This case discusses how Threadless, a rapidly growing T-shirt company, crowdsources its product
design and gets customers involved in its marketing process. By producing and selling only designs
that customers design and approve with their votes, Threadless keeps costs down and profit margins
high. Winners of Threadless’ design competitions receive $2,000 along with a $500 Threadless gift
card and $500 for every time the design is reprinted. Because of its unique business model,
Threadless not only allows aspiring artists and designers to submit and potentially sell their work, but
it also acts as a forum for market research.
Questions for Discussion
1. How has Threadless used crowdsourcing as the foundation of its marketing research?
Threadless customers design and test T-shirt designs, and other customers vote for their favorite
2. How does Threadless create the equivalent of an online focus group to provide feedback on
designs?
A focus group brings together multiple people to informally discuss a certain topic in a group
3. How has Threadless eliminated the cost of test marketing?
Crowdsourcing ensures that Threadless’ target market provides constant free feedback. By