part 1 n.
Skip this Video
Download Presentation

Loading in 2 Seconds...

play fullscreen
1 / 148

PART 1 - PowerPoint PPT Presentation

  • Uploaded on

PART 1. INSERT COURSE OUTLINE. MARKETING CASE REPORT FORMAT. Executive Summary: Self-Contained Document, one to two pages Statement of Purpose and Issues to be Addressed Research Method Used to Address Issues Salient Findings (Appears before Table of Contents). Table of Contents

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'PART 1' - asasia

Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
marketing case report format
  • Executive Summary: Self-Contained Document, one to two pages
    • Statement of Purpose and Issues to be Addressed
    • Research Method Used to Address Issues
    • Salient Findings

(Appears before Table of Contents)

Table of Contents
    • Subject and Page Numbers Including All Exhibit References
    • Introduction
      • Background
      • Purpose and/or Problem Definition
      • Objectives of Report
    • Methodology
      • Specific Methodology – Why!!!
      • Data/Information to be Studied
    • Case Analysis
      • Application of Specific Methodology to Case
      • Discussion/Explanation of Analysis
      • Interpretation of Tables and Charts. (It is not acceptable to merely refer to Tables, e.g., see Table X)
Findings and/or Conclusions
  • Appendices
  • Other Requirements
    • Paragraph and Sub Paragraph headings
    • Identification of all exhibits which are to be explained and referenced in text
    • No Misspellings!!!!
    • Proper Grammar
    • Interesting Style
    • On Time Delivery of Oral and Written Report
marketing research and the four ps
Marketing Research and the Four Ps
  • Products
    • New Products
    • Evaluating Packaging and Brand Designs
    • Compassion Studies With Competitor’s Products
    • Consumer Evaluation of Current Products
  • Place (Distribution Channels)
    • Analysis of Different Storage or Transportation Methods
    • Analysis of Alternative Sites
    • Determination Of Inventory Levels
    • Growth Rates of Different Channels
  • Promotion
    • Testing Different Ad. Messages
    • Establishing Sales Territories
    • Selecting Media
    • Evaluating Ad. Effectiveness
  • Pricing
Research on Markets
  • Forecasting Demand
  • Providing Information of General Trends
  • Providing Information For Segmenting Markets
  • Developing Customer Profiles
  • Identifying New Markets For Existing Products
  • Identifying New Product Needs
  • Foreign Markets
elements of the marketing mix that compose a cohesive marketing program





Elements Of The Marketing Mix That Compose A Cohesive Marketing Program

Marketing Manager



Brand name









Stock level



Personal selling

Sales promotion



List price



Credit terms

Payment period

introduction to marketing research

Introduction to Marketing Research

Dr. Doherty

Tobin College of Business

St. John’s University

marketing research
Marketing Research
  • Definition:
  • A scientific approach to
  • (a) the collection; (b) analysis; and (c) presentation
    • of data/information to be used in the management decision making process

Three Generic Approaches

  • Exploratory
  • Descriptive
  • Casual/Experimental

Applications: See Tables 1 and 2

the exploratory approach
The Exploratory Approach

Purpose: Identify Potential Relevant Factors (Don’t try to solve the problem!)

  • Develop Hypothesis
  • Establish priorities for further research
  • Identify information and data sources
  • Clarify concepts
  • Increase analysts’ familiarity with problem(s)
  • Identify potential causes
the exploratory approach1
The Exploratory Approach

Five Popular Exploratory Approaches:

  • Literature Search
  • Experience Survey
  • Analysis of Selected Cases
  • Focus Groups
  • “Small” Sample/Surveys/Interviews
the descriptive approach
The Descriptive Approach

Purpose: Test Hypothesis

  • Analyze Data
  • Develop Findings/Conclusions

Two Types (Depending on Type of Data)

  • Longitudinal (Time Series)
    • True Panel
    • Omnibus Panel
  • Cross Sectional
    • Field Survey
    • Field Study
true panel application
True Panel Application

The Brand Switching Matrix or Turnover Table (see your textbook!)

applications of turnover table
Applications of Turnover Table


  • Price Changes
  • Promotional Campaigns
  • New Packaging
  • New Products
  • Results can be integrated with other databases to determine customer profiles and media habits
causal experimental research design
Causal/ExperimentalResearch Design
  • Scientific Criteria
    • Concomitant Variation
    • Time Sequence
    • Elimination of Other Causes
  • Controlled Experiment
    • Reflects 1.
    • Lab vs. Field
    • Validation
    • Two Groups: Experimental and Control
  • Basic Concepts Defined
    • Experiment : Process
    • Treatments : Alternatives
    • Test Units : Entities
    • Dependent Variables : Measures
    • Extraneous Variables
      • Hold Constant
      • Randomize Assignment of Treatments
      • Specific Design
      • ANCOVA
types of evidence that support a causal inference
Types of Evidence That Support a Causal Inference
  • Concomitant Variation– evidence of the extent to which X and Y occur together or vary together in the way predicted by the hypothesis
  • Time order of occurrence of variables- evidence that shows X occurs before Y
  • Elimination of other possible causal factors- evidence that allows the elimination of factors other than X as the cause of Y

X– the presumed cause

Y– the presumed effect

types of experiments
Types of Experiments

Laboratory Experiment

Research investigation in which investigator creates a situation with exact conditions so as to control some, and manipulate other, variables.


Scientific investigation in which an investigator manipulates and controls one or more independent variables and observes the dependent variable for variation concomitant to the manipulation of the independent variables

Field Experiment

Research study in a realistic situation in which one or more independent variables are manipulated by the experimenter under as carefully controlled conditions as the situation will permit.

types of extraneous factors that can contaminate research results
Types of Extraneous Factors That Can Contaminate Research Results

History—Specific events external to an experiment, but occurring at the same time, which may affect the criterion or response variable.

Maturation—Processes operating within the test units in an experiment as a function of the passage of time per se.

Testing—Contaminating effect in an experiment due to the fact that the process of experimentation itself affected the observed response.

Main testing effect—The impact of a prior observation on a later observation.

Interactive testing effect—The condition when a prior measurement affects the test unit’s response to the experimental variable.

Instrument Variation—Any and all changes in the measuring device used in an experiment that might account for differences in two or more measurements.

Statistical Regression—Tendency of extreme cases of a phenomenon to move toward a more central position during the course of an experiment.

Selection Bias—Contaminating influence in an experiment occurring when there is no way of certifying that groups of test units were equivalent at some prior time.

Experimental Mortality—Experimental condition in which test units are lost during the course of an experiment.

test marketing
Test Marketing
  • Who?
  • Objectives
    • Forecasts: Sales, Market Share; CANNALBALISTIC EFFECTS
    • Pretest Market Mix
    • Serendipity
  • Key Decisions
    • How Many Cities?
      • 2 To 6
      • Importance of Regional Differences Degree of Uncertainty
    • Which Cities?

Syracuse Leonia Dayton Des Moines

    • Length Of Test?
      • 2 Months to 2 Years
      • Average Repurchase Period
      • Competition Concern
      • First to Market Importance
test marketing cont d
Test Marketing Cont’d
    • What Data?
      • Warehouse Shipments
      • Store Audits
      • Consumer Panels
      • Buyer Surveys
      • Trade Attitudes
  • What Action?
computation of expected values from bayesian work table
Computation of Expected Values From BAYESIAN Work Table


Z1 (Test MKT. Results show Light D)

EV(A1)= 100(.858) + 50 (.122) + -50(.02)= $90.9M

EV(A2)= 50 (.858) + 100(.122) + -25(.02)= $54.6M

EV(A3)= -50 (.858) + 0 (.122) + 80 (.02)= -$41.3M

Z2 (Test MKT. Results Show Moderate D)

EV(A1)= 100(.364) + 50 (.545) + -50(.091)= $59.1M

EV(A2)= 50 (.364) + 100(.545) + -25(.091)= $70.4M

EV(A3)= -50 (.364) + 0 (.545) + 80 (.091)= -$10.9M

Z3 (Test MKT. Results Show Heavy D)

EV(A1)= 100(.333) + 50 (.333) + -50(.333)= $33.3M

EV(A2)= 50 (.333) + 100(.333) + -25(.333)= $41.6M

EV(A3)= -50 (.333) + 0 (.333) + 80 (.333)= $10.0M

prob of obtaining each test mkt result
Prob. OF Obtaining Each Test MKT. Result

P(Zk) = j=1 k P(Sj) P(Zk/Sj)

P(Z1) = P(S1)P(Z1/S1) + P(S2)P(Z1/S2) +P(S3)P(Z1/S3)

= (.6) (.7) + .3(.2) + .1(.1)

= 0.49

P(Z2) = P(S1)P(Z2/S1) + P(S2)P(Z2/S2) +P(S3)P(Z2/S3)

= .6(.2) + .3(.6) + .1(.3)

= 0.33

P(Z3) = P(S1)P(Z3/S1) + P(S2)P(Z3/S2) +P(S3)P(Z3/S3)

= .6(.1) + .3(.2) + .1(.6)

= 0.18

prob of obtaining each test mkt result1
Prob. OF Obtaining Each Test MKT. Result

FORECASTS Decision Acts Opt. EV Prob.

Z1 A1 90.9 0.49

Z2 A2 70.4 0.33

Z3 A3 41.6 0.18

EV(Research) = 90.9(.49) + 704.(.33) + 41.6(.18)

= $75.26M

EV(U) = ’70.0M

Max Price For Res. = EV(R)-EV(U)= 75.26 – 70.0 = $5.26M

causal experimental research design1
Causal/ExperimentalResearch Design
  • Validation
    • Internal vs. External
  • Internal
    • History
    • Maturation
    • Mortality
    • Regression
    • Instrumentation
    • Selection Bias
    • Main Testing Effect
    • Interactive Testing Effect
  • Four Types of Experimental Research Designs
    • Pre Exp (3)
    • True Exp (3)
    • Quasi (3)
    • Advanced Statistical Design (4)
causal experimental research design2
Causal/ExperimentalResearch Design
  • Pre-Exp. Design (3)
    • After Only: X O
    • Before After: O X O
    • Static Group Comparisons: X O1 O2

Major Errors: H, SB

causal experimental research design3
Causal/ExperimentalResearch Design
  • True Experimental Design
  • Solomon 4 Group
  • Before/After with Randomization (R) and Control (C)

EXT = ?

ITE = ?

X = ?

  • After Only with R and C


O1 = 100

O2 – 160

O3 = 106

O4 = 140

O5 = 150

O6 = 135

causal experimental research design4
Causal/ExperimentalResearch Design
  • Quasi Exp (3)
    • Single Time Series

O1 O2 O3 X O4 O5 O6

    • Multiple Time Series

O'1 O'2 O'3 X O'4 O'5 O'6

    • Separate Sample Before/After Design:

Main Problem of Quasi Approach: History

(Note: 9A is typical of consumer panel investigation data.)

causal experimental research design5
Causal/ExperimentalResearch Design
  • Advanced Statistical Design (4)
    • CRD
    • RBD
    • LSD
    • Factorial
part 2a decision making under uncertainty

Part 2ADecision Making Under Uncertainty

Criteria for Selecting the Best Option





value of information
Value of Information
  • Payoff (Decision) Table

AI : Decision Acts

Ej : Events (or Sj = States of Nature)

Eij : Payoff or Consequences

Pj : Prob. Associated with Ej

bayesian case
Bayesian Case

Objective: Determine Value of Research

computation of expected values from bayesian work table1
Computation of Expected Values from BAYESIAN Work Table


Z1 (Test MKT. Results show Light D)

EV(A1) = 100(.858) + 50(.122) + -50(.02) = $90.9M

EV(A2) = 50(.858) + 100(.122) + -25(.02) = $54.6M

EV(A3) = -50(.858) + 0(.122) + 80(.02) = $-41.3M

Z2 (Test MKT. Results show Moderate D)

EV(A1) = 100(.364) + 50(.545) + -50(.091) = $59.1M

EV(A2) = 50(.364) + 100(.545) + -25(.091) = $70.4M

EV(A3) = -50(.364) + 0(.545) + 80(.091) = $-10.9M

Z3 (Test MKT. Results show Heavy D)

EV(A1) = 100(.333) + 50(.333) + -50(.333) = $33.3M

EV(A2) = 50(.333) + 100(.333) + -25(.333) = $41.6M

EV(A3) = -50(.333) + 0(.333) + 80(.333) = $10.0M

probability of obtaining each test mkt result
Probability of Obtaining Each Test MKT. Result

P(Zk) = P(Sj)P(Zk/Sj)

P(Z1) = P(S1)P(Z1/S1) + P(S2)P(Z1/S2) + P(S3)P(Z1/S3)

= (.6)(.7) + (.3)(.2) + (.1)(.1)

= 0.49

P(Z2) = P(S1)P(Z2/S1) + P(S2)P(Z2/S2) + P(S3)P(Z2/S3)

= (.6)(.2) + (.3)(.6) + (.1)(.3)

= 0.33

P(Z3) = P(S1)P(Z3/S1) + P(S2)P(Z3/S2) + P(S3)P(Z3/S3)

= (.6)(.1) + (.3)(.2) + (.1)(.6)

= 0.18

probability of obtaining each test mkt result cont d
Probability of Obtaining Each Test MKT. Result (cont’d)

EV(Research) = 90.0(.40) + 70.4(.33) + 41.6(.18)

= $75.26M

EV(U) = 70.0M

Max Price For Res. = EV(R) – EV(U)

= 75.26 – 70.0


Case Description

Newco is a manufacturer of natural soft drink beverages. It has recently experienced a decline in market share. To reverse this decline, management is considering a new promotional program that will cost $1 million. Management believes that the program may have three possible effects:

1. Very Favorable: 10% increase in market share; $4 million increase in profits.

2. Favorable: 5% increase in market share; $1 million increase in profits.

3. Unfavorable: (No Effect on Sales) – incremental loss of $1 million, the cost of the program.

Abbey Normal, Director of Marketing Research, estimates the probability of the three events as follows:

S1: Very Favorable Consumer Reaction = 0.30

S2: Favorable Consumer Reaction = 0.40

S3: Unfavorable Consumer Reaction = 0.30

Newco is considering a proposal made by Marketing Testing Experts (MTE), a private consulting firm, to asses the potential effects of the program.

MTE has advised Newco that based on its past experience of assessing promotional programs that the following results on average have been obtained:

MTE proposes a charge of $250,000 for conducting the research.

  • Construct the relevant payoff table.
  • What are the maximin and maximax solutions?
  • What is the solution according to the expected value criterion?
  • What is the value of perfect research information?
  • Should Newco except MTE’s proposal? Why?
  • What price would Newco be willing to pay for the study?
  • What probabilities are critical to the outcome of the study?
  • How could the various probabilities that are needed for such a study be obtained in practice?

Note: There are many computer software packages, that can be run on a PC, mainframe and microcomputer that can be used to solve this problem. See, for example, D.A. Schellinck and R.N. Maddox, Marketing Research: A Computer Assisted Approach, The Dryden Press, 1987.

secondary sources of data



    • P&L
    • Balance Sheet
    • Sales Figure
    • Sales-Call Reports
    • Invoices
    • Inventory Records
    • Prior Research Studies
    • Business Periodicals Index (Monthly Publications that provide a list of business articles appearing in a wide variety of business publications).
    • Standard & Poor’s Industry surveys (provides updated statistics and analyses of industries).
    • Moody’s Manuals (financial data and names of executives in major corporations).
    • Encyclopedia of Associations (provides information on every major trade and professional association in the U.S.
    • Marketing Journals
    • Trade Magazines (Advertising Age, Chain Store Age progressive Grocer, Sales and MKT. MGT, Stores).
    • Business Magazines (Fortune, Business Week, Forbes, Barrons, Harvard Business Review, etc.)
    • A.C. Nielsen Co.
      • Retail Index Service (data on products and brands sold through retail outlets)
      • Scan track (Supermarket scanner data)

Electronic Test MKT

        • Scanner Cards for Panel Members
        • Demographics
        • TV Viewers Habit of Panel Members
      • Media Research Services (Television Audience)
      • Neodata Service Inc. (Magazine Circ.)
      • Home Services – National Purchase Diary Panel
    • MRCA – National Purchase Diary Panel

National Menu Census (data on home food consumption)

  • Claritas – buying habits of 250,000 U.S. neighborhoods
  • Information Resources Inc. – provide supermarket scanner data
    • (InfoScan); also
    • Promotio Scan – IMPACT of supermarket promotions

Provides reports on warehouse withdrawals to food stores in selected market areas (SAMI reports) and supermarket scanner data (SAMSCAN)

  • SIMMONS Market Research Bureau (MRB Group)

Provides annual reports covering television market, sporting goods, proprietary drugs.

Giving demographic data by sex; income; age and brand preference (selective market and media reaching them)

  • Other

Audit Bureau of Circulation Arbitron

Audit and Surveys

Dunn and Bradstreet

National Family Opinion

Standard Rate and Data Service


    • Statistical Abstract of MKT Sources (updated annually)

Provides summary data on: demographic, economy, social and other aspects of the U.S. economy and society.

    • County and City Data Book (updated every three years)

-Presented statistical information for counties, cities and other geographical units regarding:

- population, education, employment

- aggr. And med. Income – housing

- bank deposit, retail sales, etc.

    • U.S. Industrial Outlook

-Projections of industrial activity by industry and includes data on:





Marketing Information Guide

Provides a monthly annotated bibliography of marketing information.

  • Other

- Annual Survey of Manufacturers

- Business Statistics

- Census of Manufacturers

- Census of Retail Trade, Wholesale Trade and Selected Service Industries

- Census of Transportation

- Federal Reserve Bulleting

- Monthly Labor Review

- Survey of Current Business

- Vital Statistics Report


Definition: A collection of numeric data and/or textual information that is available on computer readable form.

e.g.: Bibliographic




          • 1990 Census Data

Donnelly MKT


          • Nielsen Retail Product Movement


          • SPI (Strategic Planning Institute) -250 Companies


Work Index:

Sponsored by Cornell University’s School of Industrial Labor Relations and Human Resource Executive magazine, this site provides links to resources on labor relations, benefits, training, technology, staffing, recruiting, leadership, legal issues and related topics.


Advertising World Links to resources in selected areas of marketing and advertising.

American Association of Advertising Agencies Provides membership information, recent bulletins, and links to related resources.

American Marketing Association Provides information on membership, publications, and conferences.

Guerrilla Marketing Online Provides access to recent articles in marketing and links to relevant sites.

Marketing Cont’d

Institute for the Study of Business Markets (ISBM) Features current information about seminars and research projects. Includes marketing links.

John W. Hartman Center for Sales, Advertising & Marketing History (Duke University Libraries) Center promotes study of sales, marketing, and advertising history. Features “Ad*Access,” an image database of over 7,000 advertisements printed in U.S. and Canadian newspapers between 1911 and 1955. Database allows keyword searching.

Project 2000 Home Page Provides access to working papers, course syllabi, and related links.

Yahoo – Business and Economy: Marketing Provides links to marketing web sites

Marketing Information: A Bibliography

Statistical Sources

Business Resources on the Web: Economic Statistics, Government Statistics, and Business Law Maintained by Boise State University’s Albertsons Library, contains extensive links to statistics sources for the economy, population, international trade, statistics by state, etc. Primarily dedicated to statistics sources, but also contains a business law component

Fisher College of Business Financial Data Finder Links to financial and economic data on the web and elsewhere.

dr doherty tobin college of business st john s university
Dr. Doherty

Tobin College of Business

St. John’s University

Profiling Customers
  • Dun’s Market Identifiers (DMI)
    • D&B’s market information service. A record of over 7 million establishments updated monthly
  • Enhanced DMI extends 4 digit S/C codes to 6 and 8 digits to allow clients to target specific customer groups
  • Geodemographers
    • R.L. Pole

Product for Retailers: Vehicle Origin Survey

Samples cars parked in retailer parking lots and identifies (from the Vehicle Registration Database) their home location. Can also match location with Census data and via their TIGER files provide a demographic profile of customers

    • Claritas

Uses 500+ demographic variables in its Prigm (Potential Ratings for Zip markets) database to classify 250,000 neighborhoods

40 types based on consumer behavior and lifestyle

(shotguns, pickups, patios and pools, etc.)

  • Diary Panels
    • NPD (13,000 HHs)

30 Product Categories

        • 29 Miniature Panels
        • Quota Sampling
        • Applications
          • Brand Shares
          • Brand Switching Behavior
          • Frequency of Purchase and Amounts
          • Evaluation of Price and Promotions
          • Changes in Channels and Distribution
          • Size of Market
  • Store Audits
    • Nielsen Retail Index

(Drug stores, Mass media indexes and liquor stores)

    • Now Use Scanners

Beginning Inventory and Net purchase (from wholesalers and manufactures) – Ending Inventory

= Sales

      • Audit Includes
        • Sales
        • Purchases by retailers
        • Inventories
        • Number of Days of Supplies
        • Out-of-stock stores
        • Prices (retail and wholesale)
        • Special factory packs
        • Promotions and Advertising
  • Disaggregate data by
    • Competitors
    • Geographic area
    • Store type
  • Nielsen’s Scantrack supplements its Retail index (since 1970’s)
    • 11 digit WPC code
    • Evaluates
      • Promotions
      • Price changes
      • Channel trends
      • Product trends
    • 40,000 HHs using scanner wands
  • Behavior Scan (provided by Information Resources)
    • 3,000 HHs provided scanner cards
    • Supermarkets and Drugstores provided with scanner
    • With coorperation from Cable TV Companies It links view habits with purchase (Black Boxes)
    • Distinguishes Users from nonusers of products WRT …/promotions
  • Television
    • Nielsen TV Index
      • Audimeters attached to TV sets and tied into a central computer. Replaced by People Meters in 1988.
      • Aggregate ratings by 10 socioeconomic groups and demographic characteristics, including territory, ed. Of head of H.H., age of woman in house, etc.
  • Radio
    • Arbitron
      • Panel of HHs are randomly selected who have agreed to complete diaries. Radio marketing are rate 1-4 times age during the “Sweeps” period (April/May). Focus on age, sex, and individual (USHH) behavior
  • Print Media
    • Starch Readership Service
    • Evals. 50,000 ads in 1000 print media (mag., bus. Publications, newspapers); u=75,000 person interview
    • Recognition method: 3 degrees
      • Noted. Remembers any part of ad
      • Associated (1) plus recalls brand or advertise
      • Read Most recalls 50% or more of the written material
multimedia services
Multimedia Services
  • Simmons Media/Mkt Service
    • Prob. Sample of 19,000+
    • Cross references product usage and media exposure
    • 4 different interviews with each respondent
      • Magazine, TV, Newspaper, Radio
    • Results disaggregated by sex
    • Self –administered questions covering 500 product categories
    • TV view behavior gathered by means of a personal diary; Radio via both personal and telephone interviews
    • Demographics collected
    • Application Segmentation and targeting by firms
  • Mediamark
    • Similar service, problem sample of 20,000
    • Tends to establish audience rate 10% higher than Simmons (see p 252)
  • Mail Panels
    • NFO Research
      • Quota Sample of 400,000 HHs
      • Rebuilt every two years
      • Self-adm q
    • Market Facts, Inc,
      • Quota Sample of 275,000
      • Cross Tabulation of Aug. Criterion Variable (Adv. Sales, etc) with anyone or number of demographic variables (Age, sex, automobile,…, pets ordered, etc)
determining market potential

Determining Market Potential

Dr. Doherty

Tobin College of Business

St. John’s University

determining market potential1
Determining Market Potential
  • Multiple-Factor Index Method

(“Annual Survey of Buying Power” published by Sales and Marketing Management )

Purpose: Measure the relative consumer buying power in different region, state, and metropolitan areas.

determining market potential2
Determining Market Potential

Bi = 0.5yi + 0.3ri + 0.2pi


Bi : % of total national buying power found in area i

yi: % of national DI in area i

ri: % of nat’l retail sales in area i

pi: % of nat’l population in area i

Example 1: drug sales

Suppose N.Y. State has:yi = 5.0%, ri = 10.0%, pi = 8.0%

Bi = 0.5(5.0) + 0.3 (10.0) + 0.2(8.0) = 7.1

Thus, 7.1% of the nation’s drug sales would be expected to occur in NY. If the total drug sales are $50 Billion, sales in the NY market should be

$50B x .071 = $3.55B

determining market potential3
Determining Market Potential

Bi = 0.5yi + 0.3ri + 0.2pi


Bi : % of total national buying power found in area i

yi: % of national DI in area i

ri: % of nat’l retail sales in area i

pi: % of nat’l population in area i

Example 2: Actual 1992 Values for NY

yi = 8.0%, ri = 6.7%, pi = 7.2%

Bi = 0.5(8.0) + 0.3 (6.7) + 0.2(7.2) = 7.45

Thus, 7.45% of the nation’s drug sales would be expected to occur in NY. If the total drug sales are $50 Billion, sales in the NY market should be

$50B x .0745 = $3.725B

u s population effective buying income and retail sails for selected states 1991
U.S. Population, effective buying income, and retail sails for selected states, 1991

Source: Adapted from “1992 Survey of Buying Power,” Part I. Sales and Marketing Management (August 24, 1992), pp. B-2, B-3, B-4.

measuring attitude five approaches1
Measuring Attitude: Five Approaches
  • Self Reports
    • Most Common Procedure
  • Observation of Behavior
  • Indirect Techniques
    • Word Association
    • Sentence Completion
    • Storytelling
    • Graphics Interpretation
  • Performance of Objective Tasks
  • Physiological Reactions
    • Galvanic Skin Response Technique
    • Pupilometer
qualitative research techniques 1 focus group
Qualitative Research Techniques 1. Focus Group

Skilled moderator leads a small group (6-12) of participants in an unstructured discussion of a particular topic.

  • Advantages
    • Flexibility
    • Controllable
    • Group Interaction
    • Openness (encourages participants to be honest and direct)
    • Opportunity for quick execution
qualitative research techniques 1 focus group1
Qualitative Research Techniques1. Focus Group

Skilled moderator leads a small group (6-12) of participants in an unstructured discussion of a particular topic.

  • Disadvantages
    • Lack of scientific validity
    • Prone to bias (moderator)
    • Offers false sense of security (Results should be considered inconclusive)
    • Measurement difficulties
    • Subject to “Squeaky Wheel Syndrome”
qualitative research techniques 2 depth interviews
Qualitative Research Techniques2. Depth Interviews

Structured or Unstructured, one-on-one interview.

  • Advantages
    • Offers greater comfortability for sensitive topics
    • More detailed and revealing
    • Easier to schedule
    • Can handle more complex topics (e.g. Interviewing financial experts)
qualitative research techniques 2 depth interviews1
Qualitative Research Techniques2. Depth Interviews

Structured or Unstructured, one-on-one interview.

  • Disadvantages
    • No interaction effects
    • Expensive
    • Inconsistency among interviewers and levels of energy (Diminishing Returns)
    • Interpretational errors produce inconsistency and unreliability
    • Lack statistical validity
qualitative research techniques 3 projective techniques
Qualitative Research Techniques3. Projective Techniques

Based on the theory that people may not be aware of their innermost attitudes and/or may not wish to express certain attitudes.

qualitative research techniques 3 projective techniques1
Qualitative Research Techniques3. Projective Techniques
  • Techniques
    • Word Association Ex. Detergents
qualitative research techniques 3 projective techniques2
Qualitative Research Techniques3. Projective Techniques
  • Techniques
    • Picture Interpretation
      • Thematic Apperception Test (TAT)

Respondent is shown abstract visual stimuli and describes what is going on in the pictures and what will happen

qualitative research techniques 3 projective techniques3
Qualitative Research Techniques3. Projective Techniques
  • Techniques
    • Sentence Completion

Ex. Toothpaste

      • I brush my teeth because _________.
      • I use my brand of toothpaste because _________.
      • My toothpaste tastes like _________.
      • When I brush my teeth, I _________.
qualitative research techniques 3 projective techniques4
Qualitative Research Techniques3. Projective Techniques
  • Techniques
    • Third-person technique and role playing
    • Cartoons
      • Blank bubbles appear above the cartoon characters
      • Ex. New car models
qualitative research techniques 3 projective techniques5
Qualitative Research Techniques3. Projective Techniques
  • Disadvantages of Projective Techniques
    • Subjectivity of scoring procedures low reliability
    • Low validity
    • Absence of substantial evidence of “Basic Assumption,” namely, that respondents project their true feelings on ambiguous stimuli
    • Small samples and unstructured formats limit generalization
basic measurement scale concepts
Basic Measurement/Scale Concepts


Assignment of numbers to characteristics of objects


A material or physical configuration. Can be seen and/or touched


Qualities associated with objects that give such objects identifying traits

Measurement Scale:

A plan that is used to assign numbers to characteristics of objects


The “something” that is being measured

semantic differential scale
Semantic Differential Scale
  • Origin: Research designed to investigate the underlying structure of words used to describe objects, events, processes, attitude, etc.
  • Rational: Three independent (orthogonal) dimensions can be used to describe an object using a bipolar adjective scale.
semantic differential scale1
Semantic Differential Scale
  • Three Uncorrelated Dimensions
    • Potency
      • Strong - Weak
      • Shallow - Deep
      • Powerful - Powerless
    • Evaluation
      • Good – Bad
      • Sour – Sweet
      • Informative – Uninformative
      • Helpful – Unhelpful
      • Useless – Useful
    • Activity:
      • Dynamic – Static
      • Orderly – Chaotic
      • Aggressive – Non aggressive
      • Dead – Alive
      • Slow - Fast
semantic differential scale2
Semantic Differential Scale
  • Marketing Application
    • Develop profiles for products, firms, markets or whatever is being measured
    • Studies often use adjective that are not anonyms or single words and use phrases to anchor scales
    • 7-Point Scale is common
semantic differential scale3
Semantic Differential Scale
  • Marketing Application
    • Purification Stage (often times skipped)
    • Item Analysis. Product Moment Formula is used to compare score of each item with total score. Or,
    • T-test of significance between mean scores of “low” and “high” total scores groups on an item-by-item basis.
example of semantic differential scale
Example of Semantic Differential Scale








likert scale
Likert Scale
  • Allows an expression of intensity of feeling
  • Purification Stage (same as SD scale)
    • Representative Sample of Target Population
  • Final Selection of Questions
    • Same as SD Scale
  • Generally a 5-Point Scale
  • Mixes Statements as to Positive or Negative Expression
example of likert scale
Example of Likert Scale

Neither Agree nor Disagree

Strongly Disagree

Strongly Agree



stapel scale
Stapel Scale
  • Adjectives or descriptive phrases are tested rather than bipolar adjective pairs.
  • Generally, a 10 point scale is used. Points, on scale are identified by number.
  • Results my differ according to the manner in which statement is phrased.
basic rating scales 3
Basic Rating Scales (3)
  • Itemized Rating Scale:

Most commonly used. Attitudes are measured by the choice of positions on a continuum.

  • Graphics Rating Scale:

Attitudes are expressed along a line or graphic continuum running from one extreme to the next.

  • Comparative Rating Scale:

Uses an explicit reference point for comparison.

      • Rank order
      • Pairwise comparison
examples of the rating scales itemized rating scale
Examples of the Rating Scales:Itemized Rating Scale

Please evaluate each of the following attributes of compact disc players according to how important the attribute is to you personally by placing an “X” in the appropriate box.

examples of the rating scales graphic rating scale
Examples of the Rating Scales:Graphic Rating Scale

Please evaluate each of the following attributes of compact disc players according to how important the attribute is to you personally by placing an “X” at the position on the horizontal line that most accurately reflects your feelings.

examples of the rating scales comparative rating scale
Examples of the Rating Scales:Comparative Rating Scale

Please divide 100 points between the following attributes of compact disc players according to the relative importance of each attribute to you.

q sort technique
Q-Sort Technique
  • Similar to Thurstone approach. Respondents place questions into different piles to form a known probability distribution, e.g., normal or log normal
  • Subjects reflect their attitude toward an object
  • Focus is on individuals and not the object(s)
  • Used for cluster and segmentation applications
consumer decision making models attribute analysis of valence and salience properties
Consumer Decision Making ModelsAttribute Analysis of Valence and Salience Properties

1. Product Examples

2. Illustration: PC


3. Decision Models

  • Ideal Brand Model
  • Constrained Brand Model
  • Conjunctive Model

Minimum attribute levels screen out competition brands to yield reduced set. Ex. PC brands equals or exceeds (7,6,7,2)

questionnaire anatomy

Questionnaire: Anatomy

Dr. Doherty

Tobin College of Business

St. John’s University

questionnaire anatomy1
Questionnaire: Anatomy

Definition: A formalized schedule (document) that is designed to achieve three purposes:

  • Obtain Relevant Information;
  • Direct the Questioning Process; and
  • Set the format for recording and evaluating data.
eight step process
Eight Step Process

Step 1: Define Marketing Problem

  • Write a paragraph
  • List data to be collected
  • Anticipate use of data
  • State objectives
  • Develop a Plan of Analysis
  • Client “Sign Off”
eight step process1
Eight Step Process

Step 2: Interviewing Process

  • Personal
    • Structured vs. Unstructured
    • Interviewer Administered vs. Self Administered
  • Telephone
  • Mail
  • Internet
eight step process2
Eight Step Process

Step 3: Evaluate Question Content

Four Rules:

  • Will the Respondent understand the question?
  • Will the Respondent have the information?
  • Will the Respondent provide information?
  • Will the Analyst understand the Respondent’s response?
eight step process3
Eight Step Process

Step 4: Q/A Format

  • Open Ended
    • Free Response
    • Probing
    • Projective (e.g. association, construction, sentence completion)
  • Close Ended
    • Dichotomous
    • Multichotomous
    • Scales
    • Ranking
    • Check List
eight step process4
Eight Step Process

Step 5: Determine Wording of Question

Three Rules:

  • Unambiguous
  • Simple and Familiar Words
  • Specific Words or Options

Ex.) Why did you fly to Chicago on U.S. Airlines?

eight step process5
Eight Step Process

Step 6: Sequence of Questions

  • Screening (if necessary)
  • Gain Confidence and Interest
  • Groups Like Topics Together
  • Funneling
  • Demographics at End
  • Thank You!
eight step process6
Eight Step Process

Step 7: Physical Characteristics of Questionnaire (especially by mail)

Step 8: Pretest - Revise - Formalize - Finalize

  • Personal
  • Planned Method of Administration
guidelines for question wording
Guidelines for Question Wording
  • Use simple words and questions
  • Avoid ambiguous words and questions
  • Avoid leading questions
  • Avoid implicit alternatives
  • Avoid implicit assumptions
  • Avoid generalizations and estimates
  • Avoid double-barreled questions
communication methods
Communication Methods









comparison of three communications media on ten factors
Comparison of Three Communications Media on Ten Factors

© 1987 by Prentice-Hall, Inc.

A division of Simon & Schuster

Englewood Cliffs, NJ 07632

part 6




Major Principles




  • From A, B, and C



  • Rewriting (1)



  • Also, from (1)


Let =100, Z=2,andE=10

n=(22x 1002)  102 = 400

Let =100, Z=2,andE=5

n=(22 x 1002)  52 = 1600


  • Solving for Sample Size


determinants of sample size 3
Determinants of Sample Size (3)
  • Variance of Population
  • Error Allowance
  • Probability of Realizing Error Allowance


LetP =0.2, Z=2,andE=0.02

Suppose that P =0.3from (5)

  • From A, B, and C: Binomial




  • Similar to (3), for Binomial





LetP =0.2, Z=2,andE=0.02

Suppose that Pfound=0.3from (5)

  • From A, B, and C: Binomial




  • Similar to (3), for Binomial



stratified sampling
Stratified Sampling

1) Proportionate




stratified sampling1
Stratified Sampling

2) Disproportionate



stratified sampling illustration
Stratified Sampling Illustration



90% Confidence Level:


1) Proportionate

stratified sampling illustration1
Stratified Sampling Illustration



90% Confidence Level:


2) Disproportionate

part 7



sales performance of reps under three different sales training programs



























Sales Performance of REPS under Three Different Sales Training Programs



Accept H0

Reject H0


Step I: SST

Step II: SSB



Note: SST = SSB + SSE

698 = 250 + 448


Step IV: Fcalc. Value

Accept H0. No significant difference among samples at 5% level

chi square
  • Definition
  • Applications

B. Goodness of Fit Test

A. Contingency Table (r by le)

chi square1

3. Illustration

Problem: Children's Commercials:

Does the level of Understanding (Levels I, II, and III) vary with a child's age (5-7 vs 8-10 vs. 11-12)

Sample Test:

chi square2



4. Solution

chi square3

4. Solution (continued)

dependent samples t test

H0: Consumers are Indifferent Between Alternatives, that is,

Dependent Samples: t-Test

Test Statistic:


n = number of sample (retail outlets)

dependent samples t test2
Dependent Samples: t-Test

Illustration (continued)