In what area of marketing research does arbitron specialize

Case Study

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M arketing Research

Marketing Research EIGHTH EDITION

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1. Features to make reading more interesting

FEATURE DESCRIPTION BENEFIT

Opening vignettes Each chapter begins with a short description of a marketing research company’s features or an organization’s services such how firms deal with survey data quality.

Previews the material in the textbook by showing you how it is used in marketing research

Current insights from indus- try professionals

“War stories” and recommendations from seasoned practitioners of marketing research

Illustrates how the technique or theory should be applied or gives some hints on ways to use it effectively

Global Applications Examples of global marketing research in action Fosters awareness that over one-half of marketing research is per- formed in international markets

Ethical Considerations Situations that show how ethical marketing researchers behave using the actual code of marketing research standards adopted by the Marketing Research Association

Reveals that marketing researchers are aware of ethical dilemmas and seek to act honorably

Practical Applications “Nuts and bolts” examples of how marketing research is performed and features new techniques such as neuromarketing

Gives a “learning by seeing” perspective on real-world marketing research practice

Digital Marketing Research Applications

Information is provided on how technology is impacting marketing research both as a source of information and the creation of new products designed to cultivate the information

You will see how new innovations create opportunities for mar- keting research firms to add new services designed to provide information created by the new information sources

2. Features to help you study for exams

FEATURE DESCRIPTION BENEFIT

Chapter objectives Bulleted items listing the major topics and issues addressed in the chapter

Alerts you to the major topics that you should recall after reading the chapter

Marginal notes One-sentence summaries of key concepts Reminds you of the central point of the material in that section

Chapter summaries Summaries of the key points in the chapter Reminds you of the chapter highlights

Key terms Important terms defined within the chapter and listed at the end of the chapter.

Helps you assess your knowledge of the chapter material and review key topics

Review questions Assessment questions to challenge your understanding of the theories and topics covered within the chapter

Assists you in learning whether you know what you need to know about the major topics presented in the chapter

Companion website The student resources on this website include chapter outlines, case study hints, online tests, and PowerPoint slides

Offers online pre- and post-tests, PowerPoint files, case study hints, and SPSS tutorials and datasets

3. Elements that help you apply the knowledge you’ve gained

FEATURE DESCRIPTION BENEFIT

End-of-chapter cases Case studies that ask you to apply the material you’ve learned in the chapter

Helps you learn how to use the material that sometimes must be customized for a particular marketing research case

Synthesize Your Learning Exercises that ask you to apply and integrate material from across three to four chapters

related across chapters

Integrated Case A case study running throughout the book which you study through end-of-chapter exercises across most of the steps in the marketing research process

Integration of IBM SPSS Statistics Version 23

The most widely adopted statistical analysis program in the world, with annotated screenshots and output, plus step-by-step “how to do it” instructions

Teaches you the statistical analysis program that is the standard of the marketing research industry.

Online SPSS datasets SPSS data sets for cases in the textbook, including the integrated case at www.pearsonglobaleditions.com/Burns worrying about set-up or clean-up

SPSS student assistant Stand-alone modules with animation and annotated screen shots to show you how to use many SPSS features at www.pearsonglobaleditions.com/Burns

Handy reference for many SPSS functions and features, including statistical analyses

A BRIEF GUIDE TO GETTING THE MOST FROM THIS BOOK

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E I G H T H E D I T I O N G L O B A L E D I T I O N

MARKETING RESEARCH

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Alvin C. Burns Louisiana State University

Ann Veeck Western Michigan University

Ronald F. Bush University of West Florida

MARKETING RESEARCH

E I G H T H E D I T I O N G L O B A L E D I T I O N

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Authorized adaptation from the United States edition, entitled Marketing Research, 8th Edition, ISBN 978-0-13-416740-4 by Alvin C. Burns, Ann Veeck, and Ronald F. Bush, published by Pearson Education © 2017.

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Only we know how much our spouses, Jeanne, Greg, and Libbo, have sacrificed during the times we have devoted to this book. We are fortunate in that, for all of us, our spouses are our best friends and smiling supporters.

Al Burns, Louisiana State University

Ann Veeck, Western Michigan University

Ron Bush, University of West Florida

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Preface 21

Chapter 1 Introduction to Marketing Research 32

Chapter 2 The Marketing Research Industry 48

Chapter 3 The Marketing Research Process and Defining the Problem and Research Objectives 66

Chapter 4 Research Design 90

Chapter 5 Secondary Data and Packaged Information 114

Chapter 6 Qualitative Research Techniques 142

Chapter 7 Evaluating Survey Data Collection Methods 170

Chapter 8 Understanding Measurement, Developing Questions, and Designing the Questionnaire 204

Chapter 9 Selecting the Sample 236

Chapter 10 Determining the Size of a Sample 262

Chapter 11 Dealing with Fieldwork and Data Quality Issues 288

Chapter 12 Using Descriptive Analysis, Performing Population Estimates, and Testing Hypotheses 314

Chapter 13 Implementing Basic Differences Tests 350

Chapter 14 Making Use of Associations Tests 376

Chapter 15 Understanding Regression Analysis Basics 406

Chapter 16 The Research Report 432

Endnotes 461 Name Index 477 Subject Index 481

Brief Contents

6

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Preface 21

Chapter 1 Introduction to Marketing Research 32 1- 1 Marketing Research Is Part of Marketing 34

The Philosophy of the Marketing Concept Guides Managers’ Decisions 36 The “Right” Marketing Strategy 36

1- 2 What Is Marketing Research? 37 Is It Market ing Research or Market Research? 37 The Function of Marketing Research 37

1- 3 What Are the Uses of Marketing Research? 38 Identifying Market Opportunities and Problems 38 Generating, Refining, and Evaluating Potential Marketing Actions 38

Selecting Target Markets 39 Product Research 39 Pricing Research 39 Promotion Research 39 Distribution Research 39

Monitoring Marketing Performance 40 Improving Marketing as a Process 40 Marketing Research Is Sometimes Wrong 41

1- 4 The Marketing Information System 41 Components of an MIS 42

Internal Reports System 42 Marketing Intelligence System 42 Marketing Decision Support System (DSS) 42 Marketing Research System 43

Summary 44 • Key Terms 45 • Review Questions/ Applications 45 Case 1. 1 Anderson Construction 46 Case 1. 2 Integrated Case: Auto Concepts 46

Chapter 2 The Marketing Research Industry 48 2- 1 Evolution of an Industry 50

Earliest Known Studies 50 Why Did the Industry Grow? 50 The 20th Century Led to a “Mature Industry” 51

2- 2 Who Conducts Marketing Research? 51 Client-Side Marketing Research 51 Supply-Side Marketing Research 53

2- 3 The Industry Structure 53 Firm Size by Revenue 53 Types of Firms and Their Specialties 54 Industry Performance 54

Contents

7

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8 CONTENTS

2- 4 Challenges to the Marketing Research Industry 56 New and Evolving Sources of Data and Methods 56 Effective Communication of Results 58 Need for Talented and Skilled Employees 58

2- 5 Industry Initiatives 58 Industry Performance Initiatives 58

Best Practices 58 Maintaining Public Credibility of Research 58 Monitoring Industry Trends 59 Improving Ethical Conduct 59 Certification of Qualified Research Professionals 60 Continuing Education 61

2- 6 A Career in Marketing Research 62 Where You’ve Been and Where You’re Headed! 63

Summary 63 • Key Terms 63 • Review Questions/ Applications 64 Case 2. 1 Heritage Research Associates 64

Chapter 3 The Marketing Research Process and Defining the Problem and Research Objectives 66 3- 1 The Marketing Research Process 67

The 11-Step Process 67 Caveats to a Step-by-Step Process 68

Why 11 Steps? 68 Not All Studies Use All 11 Steps 69 Steps Are Not Always Followed in Order 69

Introducing “Where We Are” 69 Step 1: Establish the Need for Marketing Research 69

The Information Is Already Available 70 The Timing Is Wrong to Conduct Marketing Research 70 Costs Outweigh the Value of Marketing Research 71

Step 2: Define the Problem 71 Step 3: Establish Research Objectives 71 Step 4: Determine Research Design 72 Step 5: Identify Information Types and Sources 72 Step 6: Determine Methods of Accessing Data 72 Step 7: Design Data Collection Forms 72 Step 8: Determine the Sample Plan and Size 73 Step 9: Collect Data 73 Step 10: Analyze Data 73 Step 11: Prepare and Present the Final Research Report 74

3- 2 Defining the Problem 74 1. Recognize the Problem 75

Failure to Meet an Objective 75 Identification of an Opportunity 75

2. Understand the Background of the Problem 76 Conduct a Situation Analysis 76 Clarify the Symptoms 77 Determine the Probable Causes of the Symptom 77 Determine Alternative Decisions 78

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CONTENTS 9

3. Determine What Decisions Need to Be Made 78 Specify Decision Alternatives 78 Weigh the Alternatives 78

4. Identify What Additional Information Is Needed 79 Inventory the Current Information State 79 Identify the Information Gaps 79

5. Formulate the Problem Statement 80 3- 3 Research Objectives 80

Using Hypotheses 81 Defining Constructs 81

What Is the Unit of Measurement? 82 What Is the Proper Frame of Reference? 83

3- 4 Action Standards 83 Impediments to Problem Definition 84

3- 5 The Marketing Research Proposal 85 Elements of the Proposal 85 Ethical Issues and the Research Proposal 86

Summary 86 • Key Terms 87 • Review Questions/ Applications 87 Case 3. 1 Golf Technologies, Inc. 88 Case 3. 2 Integrated Case: Auto Concepts 89

Chapter 4 Research Design 90 4- 1 Research Design 92

Why Is Knowledge of Research Design Important? 92 4- 2 Three Types of Research Designs 93

Research Design: A Caution 94 4- 3 Exploratory Research 94

Uses of Exploratory Research 95 Gain Background Information 95 Define Terms 95 Clarify Problems and Hypotheses 95 Establish Research Priorities 96

Methods of Conducting Exploratory Research 96 Secondary Data Analysis 96 Experience Surveys 96 Case Analysis 96 Focus Groups 98

4- 4 Descriptive Research 98 Classification of Descriptive Research Studies 99

4- 5 Causal Research 102 Experiments 102 Experimental Design 103

Before-After with Control Group 104 How Valid Are Experiments? 105 Types of Experiments 106

4- 6 Test Marketing 107 Types of Test Markets 107

Standard Test Market 107 Controlled Test Markets 107

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10 CONTENTS

Electronic Test Markets 108 Simulated Test Markets 109

Selecting Test-Market Cities 109 Pros and Cons of Test Marketing 109

Summary 110 • Key Terms 111 • Review Questions/ Applications 111 Case 4. 1 Memos from a Researcher 112

Chapter 5 Secondary Data and Packaged Information 114 5- 1 Big Data 116 5- 2 Primary Versus Secondary Data 116

Uses of Secondary Data 118 5- 3 Classification of Secondary Data 119

Internal Secondary Data 119 External Secondary Data 120

Published Sources 122 Official Statistics 123 Data Aggregators 124

5- 4 Advantages and Disadvantages of Secondary Data 124 Advantages of Secondary Data 124 Disadvantages of Secondary Data 124

Incompatible Reporting Units 124 Mismatched Measurement Units 124 Unusable Class Definitions 125 Outdated Data 125

5- 5 Evaluating Secondary Data 125 What Was the Purpose of the Study? 125 Who Collected the Information? 126 What Information Was Collected? 126 How Was the Information Obtained? 126 How Consistent Is the Information with Other Information? 128

5- 6 The American Community Survey 128 5- 7 What Is Packaged Information? 129

Syndicated Data 129 Packaged Services 131

5- 8 Advantages and Disadvantages of Packaged Information 132

Syndicated Data 132 Packaged Services 132

5- 9 Applications of Packaged Information 132 Measuring Consumer Attitudes and Opinions 133 Market Segmentation 133 Monitoring Media Usage and Promotion Effectiveness 133 Market Tracking Studies 134

5- 10 Social Media Data 134 Types of Information 134

Reviews 135 Tips 135 New Uses 135 Competitor News 135

Advantages and Disadvantages of Social Media Data 135 Tools to Monitor Social Media 136

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CONTENTS 11

5- 11 Internet of Things 136 Summary 138 • Key Terms 139 • Review Questions/ Applications 139 Case 5. 1 The Men’s Market for Athleisure 140

Chapter 6 Qualitative Research Techniques 142 6- 1 Quantitative, Qualitative, and Mixed Methods Research 143 6- 2 Observation Techniques 146

Types of Observation 146 Direct Versus Indirect 146 Covert Versus Overt 147 Structured Versus Unstructured 147 In Situ Versus Invented 147

Appropriate Conditions for the Use of Observation 147 Advantages of Observational Data 148 Limitations of Observational Data 148

6- 3 Focus Groups 149 How Focus Groups Work 150 Online Focus Groups 151 Advantages of Focus Groups 151 Disadvantages of Focus Groups 152 When Should Focus Groups Be Used? 152 When Should Focus Groups Not Be Used? 152 Some Objectives of Focus Groups 152 Operational Aspects of Traditional Focus Groups 153

How Many People Should Be in a Focus Group? 153 Who Should Be in the Focus Group? 153 How Many Focus Groups Should Be Conducted? 154 How Should Focus Group Participants Be Recruited and Selected? 154 Where Should a Focus Group Meet? 154 When Should the Moderator Become Involved in the Research Project? 155 How Are Focus Group Results Reported and Used? 155 What Other Benefits Do Focus Groups Offer? 155

6- 4 Ethnographic Research 156 Mobile Ethnography 156 Netnography 157

6- 5 Marketing Research Online Communities 158 6- 6 Other Qualitative Research Techniques 159

In-Depth Interviews 159 Protocol Analysis 160 Projective Techniques 161

Word-Association Test 161 Sentence-Completion Test 161 Picture Test 162 Cartoon or Balloon Test 162 Role-Playing Activity 162

Neuromarketing 163 Neuroimaging 163

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12 CONTENTS

Eye Tracking 164 Facial Coding 164 The Controversy 164

Still More Qualitative Techniques 164 Summary 166 • Key Terms 167 • Review Questions/ Applications 167 Case 6. 1 The College Experience 168 Case 6. 2 Integrated Case: Auto Concepts 169

Chapter 7 Evaluating Survey Data Collection Methods 170 7- 1 Advantages of Surveys 172 7- 2 Modes of Data Collection 174

Data Collection and Impact of Technology 174 Person-Administered Surveys 175

Advantages of Person-Administered Surveys 175 Disadvantages of Person-Administered Surveys 176

Computer-Assisted Surveys 177 Advantages of Computer-Assisted Surveys 177 Disadvantages of Computer-Assisted Surveys 177

Self-Administered Surveys 178 Advantages of Self-Administered Surveys 178 Disadvantages of Self-Administered Surveys 178

Computer-Administered Surveys 179 Advantages of Computer-Administered Surveys 179 Disadvantage of Computer-Administered Surveys 180

Mixed-Mode Surveys 180 Advantage of Mixed-Mode Surveys 180 Disadvantages of Mixed-Mode Surveys 180

7- 3 Descriptions of Data Collection Methods 181 Person-Administered/Computer-Assisted Interviews 182

In-Home Surveys 182 Mall-Intercept Surveys 183 In-Office Surveys 184 Telephone Surveys 184

Computer-Administered Interviews 188 Fully Automated Survey 188 Online Surveys 189

Self-Administered Surveys 191 Group Self-Administered Survey 191 Drop-Off Survey 191 Mail Survey 192

7- 4 Working with a Panel Company 193 Advantages of Using a Panel Company 194 Disadvantages of Using a Panel Company 194 Top Panel Companies 195

7- 5 Choice of the Survey Method 196 How Fast Is the Data Collection? 197 How Much Does the Data Collection Cost? 197 How Good Is the Data Quality? 197 Other Considerations 198

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Summary 199 • Key Terms 200 • Review Questions/ Applications 200 Case 7. 1 Machu Picchu National Park Survey 201 Case 7. 2 Advantage Research, Inc. 202

Chapter 8 Understanding Measurement, Developing Questions, and Designing the Questionnaire 204 8- 1 Basic Measurement Concepts 205 8- 2 Types of Measures 206

Nominal Measures 206 Ordinal Measures 207 Scale Measures 207

8- 3 Interval Scales Commonly Used in Marketing Research 209 The Likert Scale 209 The Semantic Differential Scale 210 The Stapel Scale 212 Two Issues with Interval Scales Used in Marketing Research 213 The Scale Should Fit the Construct 214

8- 4 Reliability and Validity of Measurements 215 8- 5 Designing a Questionnaire 216

The Questionnaire Design Process 216 8- 6 Developing Questions 217

Four Dos of Question Wording 218 The Question Should Be Focused on a Single Issue or Topic 218 The Question Should Be Brief 218 The Question Should Be Grammatically Simple 218 The Question Should Be Crystal Clear 219

Four Do Not’s of Question Wording 219 Do Not “Lead” the Respondent to a Particular Answer 219 Do Not Use “Loaded” Wording or Phrasing 220 Do Not Use a “Double-Barreled” Question 220 Do Not Use Words That Overstate the Case 220

8- 7 Questionnaire Organization 222 The Introduction 223

Who is Doing the Survey? 223 What is the Survey About? 223 How did You Pick Me? 223 Motivate Me to Participate 223 Am I Qualified to Take Part? 224

Question Flow 224 8- 8 Computer-Assisted Questionnaire Design 227

Question Creation 227 Skip and Display Logic 228 Data Collection and Creation of Data Files 228 Ready-Made Respondents 228 Data Analysis, Graphs, and Downloading Data 228

8- 9 Finalize the Questionnaire 229 Coding the Questionnaire 229 Pretesting the Questionnaire 230

Summary 232 • Key Terms 232 • Review Questions/ Applications 233

CONTENTS 13

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Case 8. 1 Extreme Exposure Rock Climbing Center Faces The Krag 234 Case 8. 2 Integrated Case: Auto Concepts 235

Chapter 9 Selecting the Sample 236 9- 1 Basic Concepts in Samples and Sampling 238

Population 238 Census 238 Sample and Sample Unit 239 Sample Frame and Sample Frame Error 239 Sampling Error 240

9- 2 Reasons for Taking a Sample 240 9- 3 Probability Versus Nonprobability Sampling Methods 241 9- 4 Probability Sampling Methods 242

Simple Random Sampling 242 Systematic Sampling 245 Cluster Sampling 248 Stratified Sampling 250

9- 5 Nonprobability Sampling Methods 253 Convenience Samples 253 Purposive Samples 255 Chain Referral Samples 256 Quota Samples 256

9- 6 Online Sampling Techniques 256 Online Panel Samples 257 River Samples 257 Email List Samples 257

9- 7 Developing a Sample Plan 257 Summary 258 • Key Terms 258 • Review Questions/ Applications 259 Case 9. 1 Peaceful Valley Subdivision: Trouble in Suburbia 260 Case 9. 2 Jet’s Pets 261

Chapter 10 Determining the Size of a Sample 262 10- 1 Sample Size Axioms 265 10- 2 The Confidence Interval Method of Determining Sample Size 265

Sample Size and Accuracy 266 p and q: The Concept of Variability 267 The Concept of a Confidence Interval 269 How Population Size ( N ) Affects Sample Size 271

10- 3 The Sample Size Formula 271 Determining Sample Size via the Confidence Interval Formula 271

Variability: p × q 272 Acceptable Margin of Sample Error: e 272 Level of Confidence: z 272

10- 4 Practical Considerations in Sample Size Determination 274

How to Estimate Variability in the Population 275 How to Determine the Amount of Acceptable Sample Error 275

14 CONTENTS

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CONTENTS 15

How to Decide on the Level of Confidence 275 How to Balance Sample Size with the Cost of Data Collection 276

10- 5 Other Methods of Sample Size Determination 276 Arbitrary “Percent Rule of Thumb” Sample Size 277 Conventional Sample Size Specification 278 Statistical Analysis Requirements Sample Size Specification 278 Cost Basis of Sample Size Specification 279

10- 6 Three Special Sample Size Determination Situations 280 Sampling from Small Populations 280 Sample Size Using Nonprobability Sampling 281 Sampling from Panels 283

Summary 283 • Key Terms 284 • Review Questions/ Applications 284 Case 10. 1 Target: Deciding on the Number of Telephone Numbers 286 Case 10. 2 Scope Mouthwash 287

Chapter 11 Dealing with Fieldwork and Data Quality Issues 288 11- 1 Data Collection and Nonsampling Error 289 11- 2 Possible Errors in Field Data Collection 290

Intentional Fieldworker Errors 290 Unintentional Fieldworker Errors 291 Intentional Respondent Errors 293 Unintentional Respondent Errors 293

11- 3 Field Data Collection Quality Controls 296 Control of Intentional Fieldworker Error 296 Control of Unintentional Fieldworker Error 297 Control of Intentional Respondent Error 298 Control of Unintentional Respondent Error 299 Final Comment on the Control of Data Collection Errors 299

11- 4 Nonresponse Error 300 Refusals to Participate in the Survey 301 Break-offs During the Interview 301 Refusals to Answer Specific Questions (Item Omission) 301 What Is a Completed Interview? 301 Measuring Response Rate in Surveys 302

11- 5 How Panel Companies Control Error 304 11- 6 Dataset, Coding Data, and the Data Code Book 305 11- 7 Data Quality Issues 306

What to Look for in Raw Data Inspection 307 Incomplete Response 307 Nonresponses to Specific Questions (Item Omissions) 307 Yea- or Nay-Saying Patterns 307 Middle-of-the-Road Patterns 308 Other Data Quality Problems 308 How to Handle Data Quality Issues 308

Summary 310 • Key Terms 310 • Review Questions/ Applications 310 Case 11. 1 Skunk Juice 311 Case 11. 2 Sony Televisions Ultra HD TV Survey 312

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Chapter 12 Using Descriptive Analysis, Performing Population Estimates, and Testing Hypotheses 314 12- 1 Types of Statistical Analyses Used in Marketing Research 317

Descriptive Analysis 317 Inference Analysis 318 Difference Analysis 318 Association Analysis 318 Relationships Analysis 318

12- 2 Understanding Descriptive Analysis 319 Measures of Central Tendency: Summarizing the “Typical” Respondent 319

Mode 319 Median 319 Mean 320

Measures of Variability: Relating the Diversity of Respondents 320 Frequency and Percentage Distribution 320 Range 321 Standard Deviation 321

12- 3 When to Use a Particular Descriptive Measure 322 12- 4 The Auto Concepts Survey: Obtaining Descriptive Statistics with SPSS 323

Integrated Case 323 Use SPSS to Open Up and Use the Auto Concepts Dataset 324 Obtaining a Frequency Distribution and the Mode with SPSS 325 Finding the Median with SPSS 326 Finding the Mean, Range, and Standard Deviation with SPSS 327

12- 5 Reporting Descriptive Statistics to Clients 329 Reporting Scale Data (Ratio and Interval Scales) 329 Reporting Nominal or Categorical Data 330

12- 6 Statistical Inference: Sample Statistics and Population Parameters 331 12- 7 Parameter Estimation: Estimating the Population Percent or Mean 332

Sample Statistic 333 Standard Error 333 Confidence Intervals 335 How to Interpret an Estimated Population Mean or Percentage Range 336

12- 8 The Auto Concepts Survey: How to Obtain and Use a Confidence Interval for a Mean with SPSS 337 12- 9 Reporting Confidence Intervals to Clients 338 12- 10 Hypothesis Tests 340

Test of the Hypothesized Population Parameter Value 340 Auto Concepts: How to Use SPSS to Test a Hypothesis for a Mean 342

12- 11 Reporting Hypothesis Tests to Clients 344 Summary 345 • Key Terms 345 • Review Questions/ Applications 345 Case 12. 1 L’Experience Félicité Restaurant Survey Descriptive and Inference Analysis 346 Case 12. 2 Integrated Case: Auto Concepts Descriptive and Inference Analysis 348

16 CONTENTS

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Chapter 13 Implementing Basic Differences Tests 350 13- 1 Why Differences Are Important 351 13- 2 Small Sample Sizes: The Use of a t Test or a z Test and How SPSS Eliminates the Worry 354 13- 3 Testing for Significant Differences Between Two Groups 355

Differences Between Percentages with Two Groups (Independent Samples) 355 How to Use SPSS for Differences Between Percentages of Two Groups 358 Differences Between Means with Two Groups (Independent Samples) 358

Integrated Case: The Auto Concepts Survey: How to Perform an Independent Sample 360 13- 4 Testing for Significant Differences in Means Among More Than Two Groups: Analysis of Variance 364

Basics of Analysis of Variance 364 Post Hoc Tests: Detect Statistically Significant Differences Among Group Means 366

Integrated Case: Auto Concepts: How to Run Analysis of Variance on SPSS 366

Interpreting ANOVA (Analysis of Variance) 369 13- 5 Reporting Group Differences Tests to Clients 369 13- 6 Differences Between Two Means Within the Same Sample (Paired Sample) 369 Integrated Case: The Auto Concepts Survey: How to Perform a Paired Samples t test 371 13- 7 Null Hypotheses for Differences Tests Summary 372 Summary 373 • Key Terms 373 • Review Questions/ Applications 373 Case 13. 1 L’Experience Félicité Restaurant Survey Differences Analysis 375 Case 13. 2 Integrated Case: The Auto Concepts Survey Differences Analysis 375

Chapter 14 Making Use of Associations Tests 376 14- 1 Types of Relationships Between Two Variables 378

Linear and Curvilinear Relationships 378 Monotonic Relationships 379 Nonmonotonic Relationships 380

14- 2 Characterizing Relationships Between Variables 380 Presence 380 Direction (or Pattern) 380 Strength of Association 381

14- 3 Correlation Coefficients and Covariation 382 Rules of Thumb for Correlation Strength 382 The Correlation Sign: The Direction of the Relationship 383 Graphing Covariation Using Scatter Diagrams 383

14- 4 The Pearson Product Moment Correlation Coefficient 384 Integrated Case: Auto Concepts: How to Obtain Pearson Product Moment Correlation(s) with SPSS 387 14- 5 Reporting Correlation Findings to Clients 389

CONTENTS 17

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14- 6 Cross-Tabulations 389 Cross-Tabulation Analysis 390 Types of Frequencies and Percentages in a Cross-Tabulation Table 390

14- 7 Chi-Square Analysis 393 Observed and Expected Frequencies 393 The Computed x 2 Value 394 The Chi-Square Distribution 394 How to Interpret a Chi-Square Result 396

Integrated Case: Auto Concepts: Analyzing Cross-Tabulations for Significant Associations by Performing Chi-Square Analysis with SPSS 398 14- 8 Reporting Cross-Tabulation Findings to Clients 400 14- 9 Special Considerations in Association Procedures 400 Summary 402 • Key Terms 402 • Review Questions/ Applications 403 Case 14. 1 L’Experience Félicité Restaurant Survey Associative Analysis 404 Case 14. 2 Integrated Case: The Auto Concepts Survey Associative Analysis 405

Chapter 15 Understanding Regression Analysis Basics 406 15- 1 Bivariate Linear Regression Analysis 407

Basic Concepts in Regression Analysis 408 Independent and Dependent Variables 408 Computing the Slope and the Intercept 408

How to Improve a Regression Analysis Finding 408 15- 2 Multiple Regression Analysis 410

An Underlying Conceptual Model 410 Multiple Regression Analysis Described 412

Basic Assumptions in Multiple Regression 412 Integrated Case: Auto Concepts: How to Run and Interpret Multiple Regression Analysis on SPSS 415

“Trimming” the Regression for Significant Findings 416 Special Uses of Multiple Regression Analysis 417

Using a “Dummy” Independent Variable 417 Using Standardized Betas to Compare the Importance of Independent Variables 418 Using Multiple Regression as a Screening Device 418 Interpreting the Findings of Multiple Regression Analysis 419

15- 3 Stepwise Multiple Regression 422 How to Do Stepwise Multiple Regression with SPSS 422 Step-by-Step Summary of How to Perform Multiple Regression Analysis 422

15- 4 Warnings Regarding Multiple Regression Analysis 423 15- 5 Reporting Regression Findings to Clients 425 Summary 428 • Key Terms 428 • Review Questions/ Applications 428 Case 15. 1 L’Experience Félicité Restaurant Survey Regression Analysis 430 Case 15. 2 Integrated Case: Auto Concepts Segmentation Analysis 430

18 CONTENTS

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Chapter 16 The Research Report 432 16- 1 The Importance of the Marketing Research Report 435

Improving the Efficiency of Report Writing 435 16- 2 Know Your Audience 435 16- 3 Avoid Plagiarism! 436 16- 4 Elements of the Report 437

Front Matter 437 Title Page 438 Letter of Authorization 438 Letter/Memo of Transmittal 439 Table of Contents 440 List of Illustrations 441 Abstract/Executive Summary 441

Body 442 Introduction 442 Research Objectives 442 Method 442 Method or Methodology? 442 Results 443 Limitations 443 Conclusions and Recommendations 443

End Matter 444 16- 5 Guidelines and Principles for the Written Report 444

Headings and Subheadings 444 Visuals 444 Style 445

16- 6 Using Visuals: Tables and Figures 446 Tables 446 Pie Charts 446 Bar Charts 449 Line Graphs 449 Flow Diagrams 451

16- 7 Producing an Appropriate Visual 451 16- 8 Presenting Your Research Orally 452 16- 9 Alternative Ways to Present Findings 452

Videos 454 Infographics 455

16- 10 Disseminating Results Throughout an Organization 455 Dashboards 455

Summary 456 • Key Terms 457 • Review Questions/ Applications 457 Case 16. 1 Integrated Case: Auto Concepts: Report Writing 458 Case 16. 2 Integrated Case: Auto Concepts: Making a PowerPoint Presentation 459

Endnotes 461 Name Index 477 Subject Index 481

CONTENTS 19

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What’s New and What’s Tried and True in the Eighth Edition?

■ New! Ann Veeck, Co-author. The eighth edition of Marketing Research heralds a sig- nificant change in authors. For the past seven editions, this textbook has been authored by Al Burns and Ron Bush. Ron shifted into retirement soon after the seventh edition was published, and Ann Veeck came aboard. Ann has impeccable credentials, includ- ing a Master of Marketing Research degree from the Terry College of Business at the University of Georgia. Ann has taught marketing research and used Burns and Bush textbook editions for a number of years. Ann’s contributions appear throughout the eighth edition and especially in coverage of the marketing research industry, the market- ing research process and problem definition, research design, secondary and packaged information, and qualitative research techniques. Ann is also on top of digital market- ing research and big data analytics. Those adopters who have used previous editions of Marketing Research will nevertheless recognize coverage and contributions by Ron Bush and, while Ron is not an active writer of the eighth edition, we have retained his name as co-author for this reason. So the eighth edition of Marketing Research marks the transition of Burns and Bush to Burns, Veeck, and Bush, with the expectation that the ninth edition will be Burns and Veeck.

Benefit: As a longtime user of Marketing Research and an accomplished teacher of countless marketing research students, Ann’s contributions continue the tradition of intuitive and immediately understandable coverage of this subject matter.

■ New! Big Changes in the Industry, Subtle Shifts in the Textbook. Those of us in the marketing research business cannot help but notice the huge changes taking place. Big data and marketing analytics have arrived; social media marketing research practices are on the scene; qualitative research has become much more common; technological innovations happen daily; panels have become the way of surveys; data visualization, infographics, and dashboards are the preferred presentation vehicles. As seasoned marketing educators and perceptive textbook authors, we are well aware that instruc- tors intensely dislike dramatic changes in new editions of textbooks they have used for some time. So, we have addressed the big changes in marketing research not with a major rewriting of the tried-and-true coverage in prior editions but with a more evolu- tionary approach by adding new sections, composing Marketing Research Insights as illustrations, and recasting some chapter sections to be consistent with current practice. We advise the adopters of the eighth edition to do as we do. When teaching marketing research to our own students, we use the text book coverage as a springboard to current practices and examples that we glean by keeping up with Quirk’s Marketing Research Review , GreenBook , and other marketing research industry news sources.

Benefit: Adopters of the eighth edition will notice the modernization of coverage, but they will not be shocked or inconvenienced by huge changes in organization, topic coverage, and flow of material in the text book .

■ New! Digital Marketing Research. We firmly believe that new technologies, princi- pally computer-based innovations, are profoundly changing the practice of marketing research, and while we termed it social media marketing research and mobile marketing research in our previous edition, those terms do not completely capture what is happen- ing. So, we have opted to use digital marketing research as our catchphrase, which we

21

Preface to Marketing Research, Eighth Edition

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22 PREFACE

believe subsumes social media marketing and mobile marketing research, all techno- logical shifts such as the huge popularity of online panels, the growth of Internet-based qualitative techniques, infographics, and so on. Thus, many of these are highlighted by Digital Marketing Research Applications in Marketing Research Insights throughout the book . Under the umbrella of digital media, many references will pertain exclusively to the subcategory of social media data (as in the section in Chapter 5 on social media as a form of secondary research) and will be labeled as such.

Benefit: Students have the latest information on industry practices regarding technol- ogy’s impacts on marketing research. Students will be able to appreciate how rapidly changing and evolutionary is the contemporary practice of marketing research.

■ New! Big Data. In the era of “big data,” students need to be aware of traditional sources of data as well as exciting new sources. Chapter 5 , Secondary Data and Packaged In- formation, now begins with an introductory section on big data that defines the phrase and explains why the multiplying types and volume of data are met with both anticipa- tion and apprehension by marketing research professionals. One of these increasingly important sources of data is the user-generated data (UGD) that can be mined from social media websites ; an extensive section on the use, as well as the strengths and weaknesses, of social media data has been added to Chapter 5 . Another form of secondary digital data that is becoming increasingly useful is the Internet of Things (IoT) , and a section on the future potential of these sources of “passive data” now concludes Chapter 5 .

Benefit: Students will have a better understanding of the current and potential use of emerging sources of data and how they can develop skills to be well equipped for careers in the marketing research industry.

■ New! Updated Marketing Research Practical and Global Insights. Marketing Research Insights—short illustrations and descriptions of marketing research practices— have been an integral part of Marketing Research from the first edition. In addition to the new Digital Marketing Research Insight element, we have retained those that have evolved over previous editions. Namely, Practical Marketing Research Insights and Global Marketing Research Insights appear in every chapter with fresh examples. These inserts help to illustrate concepts we discuss in the text or to introduce students to some unique application being used in practice. All of these are new and reflect current issues and practices in the industry.

Benefit: Students are introduced to real-world applications in the marketing research industry. By focusing on four categories, students see how current issues that are important to the industry are being addressed by today’s practitioners.

■ New! Marketing Research Company Vignettes. In past editions of Marketing Re- search , we leveraged the relationships we have developed in the industry by inviting key players to contribute a thumbnail company description or comment on a particular marketing research topic at the beginning of each chapter. With the eighth edition, all company vignettes are fresh. However, we opted, for the most part, to invite only the most innovative marketing research companies to contribute. Thus, we issued an invitation to companies identified in the Top 50 Most Innovative Supplier Companies in Marketing Research in the 2015 GreenBook Research Industry Trends Report. Several responded with thumbnail descriptions, photos of the CEO or other company principal, and company logo. With each one, curious students are encouraged to visit the com- pany’s website. Because most of these companies are innovative and cutting edge, they do not fit the “mold” of chapter coverage as did companies in past editions. Instead, instructors should treat these company vignettes as interesting success stories about contemporary marketing research practices.

Benefit: Students get more than an academic perspective of marketing research. They benefit from reading about (and seeing, if they visit the websites) innovative marketing research practitioners solving real problems.

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PREFACE 23

■ New! New End-of-Chapter Cases. In many chapters, we provide new cases to reflect much of the current material in this eighth edition. We strive to make the cases interest- ing to the students and illustrate real-world applications. We have developed new short cases that are fictitious but written with a goal of stimulating students’ interest and curiosity.

Benefit: Students can apply concepts they have just learned in the chapter to a real- world setting. This allows students to see how valuable the information they have learned is in a practical example.

■ Tried and True! Retained Organization and Shorter Length. With the previous edi- tion, we responded to adopters’ desires for a more concise approach. We reduced the number of chapters to 16 instead of the 20 or more chapters you’ll see in many texts. We accomplished this aim by combining some chapters and streamlining the material. For example, we combined the chapters on steps in the research process and determin- ing the problem into one chapter. This streamlined approach keeps the focus on the core lessons to be learned. Because this organization and shorter list of chapters proved successful both in terms of sales and adopters’ comments, we have retained this format in the eighth edition.

Benefit: The book is better synchronized with a 15- or 16-week semester. Students now have a comprehensive learning experience in a more manageable package.

■ Tried and True! Annotated Integration IBM® SPSS® Statistics software (“SPSS”) 23.0. This eighth edition is fully integrated with SPSS 23.0. We started this integration in 1995, and we enhance the integration of SPSS by offering your students step-by-step screen captures that help them learn the keystrokes in SPSS. This allows you to spend more time teaching what the analysis technique is, when to use it, and how to interpret it. Illustrated keystrokes for the latest edition of SPSS are presented in this text with clear, easy-to-follow instructions.

Benefit: Students learn the latest version of SPSS, considered to be the “gold stand- ard” among marketing researchers. By following our step-by-step screen captures, students will see the necessary menu operations and learn how to read SPSS output. Just by reading this book , they can learn a great deal about SPSS by “seeing” it oper- ate before they get to a computer to practice.

■ Tried and True! Guidelines on Reporting Statistical Analyses to Clients. We have noticed that after teaching our students to properly conduct a statistical analysis using SPSS, they have trouble when it comes to writing down what they have done. In our sixth edition, we added an element that would address this problem. We believe it is a significant improvement, and we have retained and streamlined it in the eighth edition. In our data analysis chapters, we include information on how to write up the findings for the client. We offer easy-to-follow guidelines and examples.

Benefit: Most books teach data analysis. Students reading this book will benefit by not only knowing how to perform data analysis but also how to report what they find. This should make students better research report writers.

■ Tried and True (but tweaked)! Integrated Case. Through our own teaching, we have found that an integrated case is an excellent teaching tool. One case example that de- velops over the semester allows students to see the linkages that exist in the real world all the way from formulating the problem through data analysis. Our integrated case follows a marketing research company project from start to finish. To freshen the inte- grated case, we changed the client company from Global Motors to Auto Concepts and modernized the automobile models being researched. The case focuses on a manager who must determine the type of automobiles the auto market will demand in the future. Students using this case will learn how to examine attitudes and opinions (for example, attitudes about global warming) that may influence consumer choice, how to determine the most preferred models, and how to identify market segment differences between the

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24 PREFACE

different models. Students are shown how SPSS tools can aid them in analyzing case data to make important decisions. The dataset is streamlined with fewer variables, and the “integrated” aspect has been cut back to nine end-of-chapter cases rather than one in every chapter. Of course, the dataset is used extensively in analysis chapters so students can replicate the examples and practice.

Benefit: The Auto Concepts integrated case offers the benefit of allowing stu- dents to examine the critical steps in a marketing research project and to more easily see how data are used to help managers choose from among decision alternatives.

■ Tried and True! Inclusion of Code of Ethics Passages as Ethical Marketing Research Insights. A fourth Marketing Research Insight is entitled Ethical Considera- tion, which also harkens back to our text book ’s inception. In our previous edition, we decided to treat the topic of ethics the way it is treated in the industry, so we included excerpts from the Code of Marketing Research Standards as presented by the Market- ing Research Association (MRA). We have long had a good relationship with the MRA, which has given us permission to present excerpts from the current standards. We continue this approach with the eighth edition. We understand that a text book cannot teach someone to be ethical. Rather, we tie together issues of ethical sensitivity in the conduct of marketing research practices described in each chapter by specific reference to ethical code passages.

Benefit: Students are introduced to areas of ethical sensitivity in the practice of mar- keting research using the actual codes/standards that practitioners use. As a result, students should have knowledge of potential “ethical dangers,” whether as a future buyer or supplier of research.

■ Tried and True! YouTube Examples. Current thinking on how millennial students approach their education emphasizes the importance of social media and Internet-based learning. With the previous edition, we experimented by searching for and including YouTube video references, and we have continued this learning resource in the eighth edition. YouTube references in the text provide useful insights ranging from problem definition to statistical analysis to report writing.

Benefit: For students who like video learning, our YouTube references provide dif- ferent perspectives and how-to insights on topics covered in the text.

■ Tried and True! Active Learning Challenges. We innovated in the sixth edition with the inclusion of short exercises embedded at strategic points in each chapter where stu- dents are tasked with using the concept(s) they have just learned to experiment with or apply to some illustrative situation. We believe these exercises serve to solidify learning on the relevant concepts, and we have retained these Active Learning features in the eighth edition.

Benefit: Active learning allows students to practice or apply some concept or technique they have just read about. Learning is facilitated by reading and then “doing.”

■ Tried and True! Synthesize Your Learning. We have also retained this feature from the sixth edition to help students synthesize the knowledge they have gained across several chapters. The exercises require students to go back to previous chapters and in- tegrate material into answers for the exercise. The Synthesize Your Learning exercises are found at the end of sets of three or so chapters with the goal of showing how topics covered in these chapters work together to solve a marketing research case exercise.

Benefit: This feature allows students to integrate material that is learned in “chunks” to see how the material is related. Students benefit by learning how integrated the marketing research process really is.

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PREFACE 25

The Intended Market for This Book When we fi rst conceptualized this text book in the early 1990s, we wanted to write it for undergraduate students who were taking marketing research for the fi rst time. We saw other texts that were trying to be “all things to all people.” Even though they were positioned as research texts for undergraduates, much of the material was advanced, and instructors either never used them or endured struggling students when covering these topics. This eighth edi- tion, like its seven predecessors, was written specifi cally for undergraduate students who need a solid, basic understanding of marketing research. With so many marketing research tools that are easily accessible today, it is better to foster savvy do-it-yourself (DIY) generalists than to spawn marginally prepared technique specialists.

However, as is the case with all things marketing, our customers, both students and instructor-adopters, have changed. As we ourselves strive for perfection in our own edu- cational pedagogies, so have we constantly sought to revise Marketing Research toward satisfying the requirements for success with (now) millennial student learners. With every edition, we have conscientiously tried to think about how to improve the presentations in the text so as to be intuitively understandable to the mainstream undergraduate student. Early editions of this text book sought to equip marketing students with tools to be eff ective clients of marketing research services providers. Today the need is to provide marketing students with a basic knowledge of good marketing research practice that they will prob- ably attempt to execute themselves. That is, we are now teaching the DIY generation of marketing research students.

Our Approach Given our intended market, throughout all eight editions we strived to provide instructors with a book designed for undergraduates who wanted to know the “nuts and bolts” of mar- keting research. For example, our chapter on measurement teaches students the basic ques- tion formats, the scales of measurement, the primary uses of each type of scale, and the common methods used to measure popular constructs. It does not dwell on diff erent forms of reliability and validity or the method used to develop valid and reliable multi-item scales. In our analysis chapters, we cover the basic “bread-and-butter” statistical procedures used to analyze data, but we do not cover multivariate techniques or nonparametric statistics in the book itself.

Our approach and writing style have probably been the two main reasons the book has been the market leader for well over two decades. Student evaluations indicate that we de- liver on our intent to write at the level that people studying marketing research for the fi rst time understand. We hope your teaching evaluations regarding the text will arrive at the same appraisal.

Recommended Prerequisites To prepare for this course, we feel students should have taken an introductory course in mar- keting. We assume students know what we mean when we talk about marketing strategy and the elements of the marketing mix. Students having had an introduction to marketing course will better appreciate the role that marketing research plays in helping managers make better marketing decisions. We also recommend that students take an introductory statistics course prior to taking this course. It helps for them to know concepts such as the area under the normal curve, z scores, and the basics of statistical testing, including interpretation of p values. How- ever, since we both have taught for many years, we are well aware that many students will not recall many of these concepts and, where necessary, we provide some review of these basics.

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26 PREFACE

AACSB Guidelines The Association to Advance Collegiate Schools of Business–International (AACSB), our accreditation society, infl uences us a great deal. We strive to keep current with AACSB’s recommendations and guidelines, such as including material that will aid in your course as- sessment eff orts, covering ethical issues, and pointing out global applications.

We include a number of items that should help in assessing your students’ understanding of the course content. Each chapter begins with learning objectives. Embedded in each chap- ter are Active Learning exercises that allow students to apply the knowledge just acquired to some real-world resource. Synthesize Your Learning exercises in this edition require that students revisit chapters to integrate their knowledge from those chapters. For our test bank, Pearson has adopted guidelines established by AACSB. We discuss this in a following section.

Other Features in the Eighth Edition

■ Online Link to Careers in Marketing Research. Some students will be interested in marketing research as a career. Beginning with the sixth edition and continued for the eighth, we provide an online Careers link. This gives us the opportunity to post new happenings in the industry as they occur. Students will find descriptions of positions, salary information, educational requirements, and links to actual position openings.

There are some excellent master’s programs in marketing research. Our Careers link also provides information on these programs. Go to http://www.pearsonglobaleditions .com/Burns and click on the link for the Companion Website for Marketing Research , eighth edition. When you open any chapter, you will see the list of links in the left margin. Click on “Careers.”

Benefit: Students have the most up-to-date information about careers. ■ Advanced Data Analysis Modules. Even undergraduate students taking their first course

in marketing research may need some knowledge of statistical analyses other than those we have provided in the text. Many times these issues arise as a result of a particular need associated with a real-world class project. We wanted to make some of these techniques available to you online, so we have written several additional data analysis modules. The emphasis in these modules is on explaining the basics of the analysis and when it is appropriate. We also provide an example. Topics covered are the following: ■ When to Use Nonparametric Tests ■ Nonparametric: Chi-square Goodness-of-Fit Test ■ Nonparametric: Mann-Whitney U Test ■ Nonparametric: Wilcoxon Test ■ Nonparametric: Kruskal-Wallis H Test ■ When to Use Multivariate Techniques ■ Factor Analysis ■ Cluster Analysis ■ Conjoint Analysis

Students can access the modules by going to the text book website and opening up any chapter. They will see a link to “Online Data Analysis Modules.”

■ Datasets. We offer datasets associated with our cases that can be downloaded. Of course, we provide the dataset for our integrated case, Auto Concepts. We also offer the L’Experience Félicité (formerly Hobbit’s Choice) dataset for professors who wish to use this case. These datasets and the chapter locations of the relevant data analysis cases are as follows: ■ Auto Concepts (Auto Concepts.sav)—integrated case dataset used in Chapters

12 – 16

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PREFACE 27

■ Auto Concepts Recoded (Auto Concepts.Recoded.sav)—integrated case dataset with ordinal demographic variables recoded using midpoints of ranges to convert these variables to scales to be used as independent variables in multiple regression analysis

■ L’Experience Félicité Restaurant (L’Experience.sav)— dataset for end-of-chapter cases used in Chapters 12 – 15 .

To access these datasets, go to http://www.pearsonglobaleditions.com/Burns and click on the link for the Companion Website for Marketing Research , eighth edition. When you open any chapter, see the list of links in the left margin and click on “SPSS Student Downloads.”

Instructor Resources At the Instructor Resource Center, www.pearsonglobaleditions.com/Burns , instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit http://support.pearson .com/getsupport for answers to frequently asked questions and toll-free user support phone numbers.

The following supplements are available with this text:

■ Instructor’s Resource Manual ■ Test Bank ■ TestGen® Computerized Test Bank ■ PowerPoint Presentation ■ Student Companion Website

Student Supplements SPSS Student Assistant. With previous editions, we created the SPSS Student Assistant, a stand-alone tutorial that teaches students how to use and interpret SPSS. The SPSS Student Assistant may be downloaded from the Companion Website. Installation on a personal computer is simple, and the SPSS Student Assistant will reside there for easy, immediate access. The videos show cursor movements and resulting SPSS operations and output. There is a test for each Student Assistant session so that students may assess how well they have learned the material.

Go to http://www.pearsonglobaleditions.com/Burns and click on the link for the Companion Website for Marketing Research , eighth edition. When you open any chapter, see the list of links in the left margin and click on “SPSS Student Downloads” for more information.

Acknowledgments Many people were involved in putting this eighth edition together. We are fortunate to have Pearson as our publisher. Over the years, we have been impressed with the professional- ism and dedication of the people at Pearson and the people we worked with on this edi- tion were no exception. We wish to thank our Senior Sponsoring Editor, Neeraj Bhalla, for his support and leadership. We have worked with Becca Richter Groves, Senior Production Project Manager, on several past editions, and we are grateful for her responsiveness and effi ciency. This has been another successful collaboration with the Pearson team and we look forward to many more editions!

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28 PREFACE

We have benefi ted from the input of Heather Donofrio, Ph.D., Business Communica- tions, for several editions. Heather helped us keep the reporting, writing, and presentation chapter current. Ashley Roberts has worked behind the scenes for us on two previous editions. Parts of this eighth edition benefi ted greatly from the work of Ali Russo. We are fortunate to have these bright and enthusiastic people working with us.

We devote a major eff ort toward developing and maintaining relationships with our colleagues who practice marketing research. Their knowledge and insights are interwoven throughout these pages. Many of these people have been our friends for many years, and we appreciate their contributions. Professionals who contributed signifi cantly to one or more of our eight editions include the following:

David Almy, CEO, Marketing Research Association

Eduardo Carqueja, NPolls

Kristen Darby, COO, Marketing Research Association

Andrea Fisher, Burke, Inc.

Raleigh Floyd, Nielsen

Chris Forbes, Research Reporter

Steven H. Gittelman, President and CEO, Mktg., Inc.

Erika Harriford-McLaren, Strategic and Corporate Communications Manager, ESOMAR

Lauren Hersch, Client Relationship Manager, IBISWorld

Kees de Jong, Vice Chairman of the Board, Survey Sampling International

Frankie Johnson, Research Arts

Shari Johnson, Business Librarian, University of West Florida

Jackie Lorch, Vice President, Global Knowledge Development, Survey Sampling International

Ramana Madupalli, Director, Master of Marketing Research Program, Southern Illinois University–Edwardsville

Jeff Minier, Co-President, GfK Kynetec

Leonard Murphy, Editor-in-Chief, GreenBook

William D. Neal, Founder and Senior Partner, SDR Consulting

Darren Mark Noyce, Founder and Managing Director, SKOPOS Market Insight

Kartik Pashupati, Research Manager, Research Now

Anne Pettit, Vice President, Conversition

Henry Schafer, Executive Vice President, The Q Scores Company

Jessica Smith, Vice President, Offl ine Client Services, Survey Sampling International

Eelco Snip, Market Intelligence Analyst, ESOMAR

Doss Struse, Managing Partner, Defi nitive Insights

Naoufel Testaouni, Mirametrix

Liz Tanner, Communications Director, Qualtrics Labs, Inc.

Leslie Townsend, President and Founder, Kinesis

Sima Vasa, Partner and CEO, Paradigm Sample

Mike Webster, Senior Vice President, Research Solutions, Burke, Inc.

Brendan Wycks, Executive Director, Marketing Research and Intelligence Association

Of course, we owe a debt of gratitude to our colleagues in academia who provide reviews of our work. Among the reviewers for the eighth edition were the following:

Linda Coleman, Salem State University

Michael Pepe, Siena College

Feng Shen, St. Joseph University

Minakshi Trivedi, State University at Buff alo

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PREFACE 29

We also thank those who reviewed the previous seven editions of this book. Many of their suggestions and insights are still incorporated in this edition.

Manoj Agarwal, Binghamton University

Linda Anglin, Mankato State University

Silva Balasubramanian, Southern Illinois University

Ron Beall, San Francisco State University

Jacqueline J. Brown, University of Nevada, Las Vegas

Joseph D. Brown, Ball State University

Nancy Bush, Wingate University

E. Wayne Chandler, Eastern Illinois University

Tung-Zong Chang, Metropolitan State University

Kathryn Cort, North Carolina A&T State University

Thomas Cossee, University of Richmond

B. Andrew Cudmore, Florida Institute of Technology

Joshua Fogel, Brooklyn College

Yancy Edwards, University of South Florida

Eric Freeman, Concordia University

Anthony R. Fruzzetti, Johnson & Wales University

Stanley Garfunkel, Queensborough Community College

Corbett Gaulden Jr., University of Texas of the Permian Basin

Ronald Goldsmith, Florida State University

Ashok Gupta, Ohio University

Perry Haan, Tiffi n University

Douglas Hausknecht, University of Akron

Stacey Hills, Utah State University

M. Huneke, University of Iowa

Ben Judd, University of New Haven

Karl Kampschroeder, St. Mary’s University

James Leigh, Texas A&M University

Aron Levin, Northern Kentucky University

Bryan Lilly, University of Wisconsin

Joann Lindrud, Mankato State University

Subhash Lonial, University of Louisville

Gary McCain, Boise State University

Sumaria Mohan-Neill, Roosevelt University

Thomas O’Conner, University of New Orleans

V. Padmanabhan, Stanford University

Diane Parente, State University of New York, Fredonia

Jean Powers, Ivy Tech Community College

James A. Roberts, Baylor University

Angelina M. Russell, West Virginia University of Technology

Joel Saegert, University of Texas at San Antonio

Don Sciglimpaglia, San Diego State University

Srivatsa Seshadri, University of Nebraska at Kearney

Terri Shaff er, Southeastern Louisiana University

Birud Sindhav, University of Nebraska at Omaha

Bruce L. Stern, Portland State University

John H. Summey, Southern Illinois University

Scott Swain, Boston University

Nicolaos E. Synodinos, University of Hawaii

Peter K. Tat, University of Memphis

William Thomas, University of South Carolina

Paul Thornton, Wesley College

Jeff W. Totten, Southeastern Louisiana State University

R. Keith Tudor, Kennesaw State University

Steve Vitucci, University of Central Texas

Bernard Weidenaar, Dordt College

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30 PREFACE

Carrie White, West Liberty State College

Beverly Wright, East Carolina University

Bonghee Yoo, Hofstra University

Eric Yorkston, Neeley School of Business, Texas Christian University

Charles J. Yoos II, Fort Lewis College

Heiko de B. Wijnholds, Virginia Commonwealth University

Xin Zhao, University of Utah

Zahir Quraeshi, Western Michigan University

Tom Mahaff ey, St. Francis Xavier University

Finally, we wish to thank our spouses, Jeanne, Greg, and Libbo, respectively. Our spouses sacrifi ce much in order to allow us to work on our book. We are fortunate in that, for all three of us, our spouses are our best friends and smiling supporters.

Al Burns,

Louisiana State University

Ann Veeck,

Western Michigan University

Ron Bush,

University of West Florida

Contributors Nina von Arx-Steiner, University of Applied Sciences and Arts, Northwestern Switzerland FHNW

Nils Magne Larsen, UIT—The Arctic University of Norway

Oh Yoke Moi, Taylor’s University

Valdimar Sigurdsson, Reykjavik University

Jon Sutherland

Diane Sutherland

G. Swathy

Pearson would like to thank the following people for their work on the Global Edition:

Reviewers Per Bergfors, Copenhagen Business School

Richard Beswick, SBS Swiss Business School

Amro Maher, Qatar University

Milena S. Nikolova, American University in Bulgaria

Hamed Shamma, The American University in Cairo

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Alvin C. Burns, Professor of Marketing, is the former Ourso Distinguished Chair of Marketing/ Chairperson of Marketing in the E. J. Ourso College of Business Administration at Louisi- ana State University. He received his doctorate in marketing from Indiana University and an M.B.A. from the University of Tennessee. Al has taught undergraduate and master’s courses as well as doctoral seminars in marketing research for over 40 years. During this time, he has supervised a great many marketing research projects conducted for business-to-consumer, business-to-business, and not-for-profi t organizations. His articles have appeared in the Jour- nal of Marketing Research , Journal of Business Research , Journal of Advertising Research , and others. He is a Fellow in the Association for Business Simulation and Experiential Learn- ing. He resides in Baton Rouge, Louisiana, with his wife, Jeanne.

Ann Veeck is Professor of Marketing at Western Michigan University. She received her Ph.D. in business, with a major in marketing and a minor in statistics, from Louisiana State University and her Master of Marketing Research degree from the University of Georgia. She has taught marketing research and related courses to thousands of undergraduate and M.B.A. students for over 17 years—using this marketing research text, of course. The main focus of her research is family and food consumption patterns in developing nations with an em- phasis on China. She has also published extensively on best learning practices in marketing. She received the Haworth College of Business Teaching Award in 2013 and a national award for innovative teaching from the Marketing Management Association in 2012. Ann lives in Kalamazoo, Michigan, with her husband, Gregory Veeck.

Ronald F. Bush is Distinguished University Professor of Marketing, Emeritus, at the Univer- sity of West Florida. He received his B.S. and M.A. from the University of Alabama and his Ph.D. from Arizona State University. With over 40 years of experience in marketing research, Professor Bush worked on research projects with fi rms ranging from small businesses to the world’s largest multinationals. He served as an expert witness in trials involving research methods, often testifying on the appropriateness of research reports. His research is published in leading journals, including the Journal of Marketing, Journal of Marketing Research, Jour- nal of Advertising Research, Journal of Retailing, and Journal of Business, among others. In 1993, he was named a Fellow by the Society for Marketing Advances. Ron retired in 2013, and he and his wife, Libbo, live on the Gulf of Mexico, although they may be anywhere in North America on an Air Stream trip.

31

About the Authors

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LEARNING OBJECTIVES In this chapter you will learn: 1- 1 What the relationship of

marketing research to marketing, the marketing concept, and marketing strategy is

1- 2 How to defi ne marketing research

1- 3 The function and uses of marketing research

1- 4 How to describe a marketing information system (MIS) and understand why marketing research occupies a place in an MIS

Quirk’s Marketing Research Media: Welcome to the World of Marketing Research!

I started at Quirk’s just about the time the Inter-

net started changing all of our lives forever

and it has been fascinating to see the market-

ing research industry react and adapt to all

things online. Once traditional in-person focus

groups and telephone and mail-based surveys

were the gold standards. At fi rst, the hue and

cry was all about the Web-based methods’

lack of statistical validity. While wrestling with

that issue, the industry also struggled might-

ily to adopt old-style paper-and-pencil-based

approaches to the digital age.

But one look at the array of tools available to researchers today

will show you that the struggle was worth it. Thanks to the smartphone,

myriad forms of in-the-moment research are now possible, from mobile

ethnography to location-based surveys, giving marketers and research-

ers access to new and different types of insights.

Despite the outside impression of researchers as rule-following

introverts, obsessed with getting the numbers to line up just so, the

industry is full of smart, creative, and innovative people. So while big

data and do-it-yourself research tools loom as two formidable threats

to the traditional marketing researcher’s job, the same adaptable, entre-

preneurial spirit that enabled the transition from the pre-Internet days

to the smartphone era will help current and future research profession-

als to keep delivering the insights to drive their organizations’ strategic

decisions.

1 Introduction to Marketing Research

Joe Rydholm is editor of Quirk’s Marketing Research Media.

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33

About Quirk’s In the decades before he founded and began publishing Quirk’s Marketing

Research Review in 1986, Tom Quirk worked on all sides of the marketing research

process as a corporate or client-side researcher and later as a research company

executive. A fi rm believer in the merits of marketing research, he found himself

regularly having to educate potential users of marketing research services on the

value of investigating consumer wants, needs, and opinions and the various tech-

niques that could be used to do so. Ever the entrepreneur, and seeing the need for a publi-

cation that would promote the use, understanding, and value of marketing research across

all industries, he created Quirk’s Marketing Research Review , a monthly trade magazine for

marketing research clients and the vendors that partner with them.

Armed with a newly minted B.A. in journalism from the University of Minnesota,

I interviewed with Tom in the summer of 1988 to become the magazine’s second-ever

editor-in-chief. I was impressed by his enthusiasm for marketing research and, perhaps more

importantly, by his insistence that the articles in Quirk’s , while generally aiming to promote

the value of research, should be as objective, informative, and practical as possible. His aim

was to show the many ways marketing research could be used and to give readers real-world,

concrete examples of how the methods could be applied.

In the nearly 30 years since then, the staff and I have used Tom’s words as a guide. From

its beginnings as a monthly magazine, Quirk’s Media now offers a feature-packed website and

curates and produces marketing research–related content in a variety of forms, from e-news-

letters to blogs and Webinars—all free of charge to qualifi ed marketing research and insights

professionals.

—Joe Rydholm

Source: Text and photos courtesy of Joe Rydholm and Quirk’s Marketing Research Media.

Events in recent years have brought many changes to the world of business. As Joe Rydholm points out, these changes have profoundly influenced the marketing research industry. These are exciting times in marketing research! Globalization has added real meaning to the phrase “the business world.” Digital and other technological innovations have allowed us to realize the promises of the “information age” in a few short years. New technologies continue to change the competitive landscape with much greater frequency than ever before. Digital media have expanded at unprecedented rates. Wide- spread adoption of mobile devices and apps provides consumers with information 24 hours a day. Many objects used by people collect and send information on an ongoing basis, creating the Internet of Things (IoT). Significantly, consumers have the power, through these online innovations, to create their own information, developing consumer-generated feedback in real time.

Visit Quirk’s Marketing Research Media at www.quirks.com

Marketing research provides managers with new information to help them make decisions.

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34 CHAPTER 1 • INTRODUCTION TO MARKETING RESEARCH

This new era of big data and digital media not only challenges managers to keep pace but also to under- stand and respond to a changing world economy. Entire countries grapple with solvency. Political revolution has changed much of the world, and continued unrest threat- ens more change. 1 Businesses must anticipate what these changes will mean for their markets and capital- ize on economic growth where it is occurring. Managers must determine what products to make or what services to off er, which methods of advertising are most eff ective, which prices will help their fi rm realize its target return on investment (ROI), and which distribution system will add the greatest value to the supply chain.

This is where marketing research becomes impor- tant. Marketing research is the process of gathering information to make better decisions. This book will help you learn the process of marketing research so that you will better understand how to use marketing research to develop actionable insights as you aim to manage in a world of unprecedented change.

1- 1 Marketing Research Is Part of Marketing To fully appreciate the role of marketing research, it is helpful to understand its role in and relationship to marketing. What is marketing ? A short defi nition is “meeting needs profi t- ably.” 2 When Apple designed the iPad, it met a growing need among those seeking greater computer portability in a tablet format. Amazon has been successful in creating the fi rst gen- eration of online book readers with its Kindle tablets. 3

The American Marketing Association off ers a more detailed defi nition:

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging off erings that have value for customers, clients, partners, and society at large. 4

Over recent years marketing thought has evolved to a service-centered view that (a) identifi es core competencies, (b) identifi es potential customers who can benefi t from these core competen- cies, (c) cultivates relationships with these customers by creating value that meets their specifi c needs, and (d) collects feedback from the market, learns from the feedback, and improves the values off ered to the public. Note that this view of marketing implies that fi rms must be more than customer oriented (making and selling what fi rms think customers want and need). In addi- tion, they must collaborate with and learn from customers, adapting to their changing needs. A second implication is that fi rms do not view products as separate from services. “Is General Motors really marketing a service, which just happens to include a by-product called a car ?” 5

Our objective here is not to discuss how marketing thought is evolving but to emphasize a crucial point: To practice marketing, marketing decision makers need to make decisions. What are our core competencies? How can we use these core competencies to create value for our consumers? Who are our consumers and how can we collaborate with them? Managers have always needed information to make better decisions. In our opinion, to practice market- ing well in today’s environment requires access to more and better information. As you will learn,