Online MARKETING RESEARCH

1
Online MARKETING RESEARCH

• Presented by
• Howard Dover
• Shweta Singh
• Danny Liu
• Jasmine Lin
• Sue Liang

2
Definition Online Marketing Research

• A very broad term that covers a whole range of
  activities from surfing for information on the
  web to conducting customized surveys or online
  focus groups on the web.
• With respect to Marketing Research, it tends to
  refer more to methods that use internet
  technology to collect data from respondents.

3
Internet Changing life/Business

• 150 million by the end of the year.
• Nascent Growing sector, as opposed to
  traditional brick and mortar but has immense
  potential.

4
Market Research on Internet

• How the Internet can be used as an effective and
  viable research tool?
• The advantages and disadvantages of online
  research
• key applications of the Internet

5
Type of questions for MRI
6
Disadvantage of Traditional MR

• Time consuming
• Paper-intensive
• Separate phases of design, data-collection, and
  analysis

7
Advantages as compared to Traditional

• Relatively inexpensive
• High speed associated with data collection
• Uses graphics and visual aids
• Visitors tend to be loyal to particular sites and
  are willing to give up time to complete the forms

8
Advantages(Cont.)

• Ability to reach otherwise hard-to-find and
  geographically dispersed target groups
• Ease and convenience for respondents to
  participate

9
Disadvantages of MRI

• Representation Approx. 40 have internet access
  in US. The elderly, poor, uneducated and rural
  residents are underrepresented.
• Interactiveness Participants cannot interact
  with products as well as they can in real life.
  Essence of focus group lost using a computer
  screen. Most of time, body language and
  expression not seen.

10
Disadvantages(Cont.)

• Anonymity a drawback.
• Only surveys current, not potential customers.
• Needs knowledge of software to set up
  questionnaires and methods of processing data
• May deter visitors from your website
• Difficult to maintain security for information
  about new product concepts
• Is online respondents representative of target
  population?

11
What must a researcher ask before considering the
Internet?

• Can a representative sample of participants be
  drawn?
• How confidential is the material and questions to
  be distributed on the Web?
• How complex is the research interview process?

12
Current Techniques For MR

• E-mail surveys
• Web-based surveys
• Online focus groups
• Internet Panel Research
• Disks-by-mail

13
Current Technology( cont.)

• Email
• Long survey and surveys with skip pattern are
  difficult to administer using standard email
  technology

14
Current Technology(cont.)

• Web-browser-based
• Most popular
• Most firm use it
• Examples
• IBM
• AOL

15
Current Technology

• Qualitative Online research
• On-line focus group
• In-depth interviews
• In-depth bulletin boards
• List-serve discussions

16
Online Focus Group

• Cost
• 8-10 people
• From 90 minutes to 2 hours
• Chat room
• Controlled environment
• Two-day online focus group

17

• Source www.surveysite.com

18
In-depth Interview

• 25 or more participants
• From 1-2 days
• Gain extraordinary amount of qualitative
  information
• Allows respondents to react to and build on each
  others ideas

19
Analytical Methods being Used Online

• Conjoint Analysis
• Perceptual Mapping
• Shopping Cart Analysis
• Discrete Choice Modeling

20
Online Conjoint Analysis

• Basic concept
• Example
• Choice simulation
• Data collection
• Why it works
• Requires tradeoffs that are similar to those in
  the market
• Simplification in conjoint may mirror that in the
  market
• Conjoint profiles are orthogonal
• Conjoint simulators account for heterogeneous
  Tastes in a Market
• Who use it?

21
Perceptual Mapping

• Source www.surveysite.com

22
Shopping cart analysis

• To answer WHY
• Pop-up Survey Software
• the attitudes and opinions of online shoppers are
  captured immediately after they have made the
  decision not to purchase.

23
Discrete Choice Modeling(DCM)

• Forecast price elasticity of demand and sales
  potential
• Determine critical pricing pointsto impact
  preference
• Increase sample sizes
• Access hard-to-reach populations.

24
Which Internet data collection methodologies work
best?

• Source www.infotech.com

25
(Cont.)
26
(Cont)
27
Future of Online MR

• Present static or moving-picture advertisements
• Virtual Product Displays
• Automated Response Monitoring
• Increase Bandwidth Computer Speed
• Intelligent Consumer Devices will be installed in
  more household

28
Future of Online MR (cont.)

• Online Experimental Research Methods will
  globalize
• Virtual Shopping Experiments
• Microsoft ODRT
• Artificial intelligent agents
• Fast changing technology will be a challenge to
  Market Researcher

29
Issues in Online MR

• Heavy traffic
• Lacking sufficient bandwidth
• Suffer from self-administered surveys
• Reliability and Validity of online measures
• retest, parallel forms of a scale
• Sampling issue

30
Issue-sampling (cont.)

• Difficult to specify a sampling frame
• No centralized listing of users
• Mobile customers and global customers
• Bias Self-selected panels
• Non-representative
• Internet users are a representative of adult user
  or of segment?
• Knowledge Networks Approach

31
Ethical issue

• Privacy
• Cookies
• Data-augmented URL strings
• Click-stream
• Spamming (unsolicited email)

32
Conclusion

• As Online shopping increases in the future, MR
  will increasingly move to that arena to measure
  online shoppers behaviors
• On-line medium is the integration of research
  with product testing, advertising promotion,
  product display, pricing strategy, sales order
  track, processing and fulfillment

33

• Any
• Question?