Online Marketing Research

1
Online Marketing Research

• Chapter 6

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The Internet a background

• August 2005, 69 of US households have Internet
  access.
• Upper-income, white-collar, highly educated, male
  dominated core.
• Online surveying reduced costs and turnaround
  time.
• People use stronger words (positive and negative)
  and are more honest.

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United States Average Web UsageMonth of August
2005Home Panel
Source Nielson NetRatings Sept. 2005
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Broadband Growth Trend
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Chapter overview

• Email survey error
• Probability and nonprobability survey approaches
• Internet survey software
• Online survey capabilities and technologies
• Online qualitative research

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Major sources of survey error

• Coverage error
• Sampling error
• Nonresponse error
• Measurement error

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Major sources of survey error

• Coverage error
• When the sample group does not represent the
  population as a whole
• Sampling error
• Nonresponse error
• Measurement error

8
Major sources of survey error

• Coverage error
• When the sample group does not represent the
  population as a whole
• Sampling error
• When a non-representative sample is drawn from
  the sampling frame
• Nonresponse error
• Measurement error

9
Major sources of survey error

• Coverage error
• When the sample group does not represent the
  population as a whole
• Sampling error
• When a non-representative sample is drawn from
  the sampling frame
• Nonresponse error
• Factors the length of the survey, the use of
  reminders, the respondents computer, the speed
  of the data lines
• Measurement error

10
Major sources of survey error

• Coverage error
• When the sample group does not represent the
  population as a whole
• Sampling error
• When a non-representative sample is drawn from
  the sampling frame
• Nonresponse error
• Factors the length of the survey, the use of
  reminders, the respondents computer, the speed
  of the data lines
• Measurement error
• The difference between the information generated
  on the measurement scale and the real value of
  the information
• Factors faulty wording, misinterpretation, poor
  images
• To minimize it logic checks, randomized order of
  questions and multiple choice answers, good
  layout of text

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Online Nonprobability Surveys

• Well-recognized nonprobability surveys HotWired,
  National Geographic, ACNielsen BASES and
  Harris-Black panels.
• They are continually redefined to match the
  demographic characteristics of the telephone and
  mall intercept interviews.

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NonProbability Survey
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NonProbability Survey
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Test Marketing Plugs into the
Internet

• Standard test markets actual launches in smaller
  markets including complete marketing support.
• Rating best possible read of the market at he
  highest possible cost with the longest execution
  time. Open to competitive attack.
• Controlled test markets panel of stores with
  good geographic dispersion that carry new
  products controlling for displays, promotions and
  pricing.
• Rating accurate barometer of trade reception.
  Affordable.
• Simulated test markets consumers use seed money
  to buy new items in a laboratory store and
  researchers follow up.
• Rating Lowest execution costs, high accuracy,
  minimal security issues and the fastest feedback.

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The e-Panel concept

• Share vs. Sales
• This unit vs. share dilemma was one of the
  reasons that led to the development of the BASES
• simulated test approach in the late 1970s. BASES
  yields a two year volume number rather than a
• market share estimate.
• BASES recruits respondents at shopping malls,
  then shows them concept boards and preliminary
  packaging ideas to gather feedback early in the
  new product development process.
• Underlying BASES is a simple premise ask
  consumers what they plan to do and theyll tell
  you. People never do exactly what they say,
  they always do something related to their claim.
  In a matched comparison of more than 800 cases,
  BASES volume estimates fell within /- 20 percent
  of actual in-market results nine out of ten
  times.
• Worldwide, the BASES model has been applied
  successfully to more than 28,000 new product
  concepts from food and beverage to household
  items, personal care, over-the-counter drugs, pet
  products and other consumer packaged goods ideas.
  Today, BASES holds a 60 percent global share of
  all simulated test marketing for consumer
  packaged goods. BASES

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The e-Panel concept

• BASES
• Seismic Changes
• mall traffic, the BASES input, plummeted in
  1990s.
• Internet gained foothold in American households.
• BASES spent more than 1M developing and testing
  the e-Panel concept.
• The panelist profile proved to be virtually
  indistinguishable from the mall recruits.
• The e-Panel yields savings of 20 per study.

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Online Probability Surveys

• Allow researcher to estimate the effects of
  sampling error and thereby provide inferences
  about the target population through hypothesis
  testing.
• Targeting the population of interest
• Pop-up surveys presented randomly to visitors
  when first entering the site.
• Pre-recruited online panels (through random-digit
  telephone dialing)
• Mixed mode designs (provide alternatives for
  respondents via online or other)

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Internet Survey Software

• E-mail Submission Form
• The researcher builds an HTML or rich-text survey
• Self-Hosted Server Software
• The researcher posts the survey to the server for
  distribution by e-mail or Web hosting
• Online Application Service Provider (ASP)
• Requires thin client technology, meaning that
  is accessed through the simple use of a browser
• Doesnt require user software, user server, or
  user-provided IT support

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Online Qualitative Research

• Bulletin Boards
• Midway on a continuum that extends between
  in-depth personal interviews and focus groups
• Advantages
• Participants can be recruited from a broad
  geographic area
• Participants are able to provide feedback at
  their own convenience
• Participants are able to spend time that they
  require to provide thoughtful comments
• Participants are allowed to start and stop their
  participation so that they can carry out other
  activities including experimenting suggested
  productsQUALTALK

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Online Focus Groups

• Disadvantages
• They cannot incorporate taste, smell, touch,
  sound and sight into the setting
• Difficult to pick up on non-verbal components
• Advantages
• Flexibility of scheduling and format
• Convenience of office or home access
• Geographical dispersal of participants for a more
  representative or more targeted group
• Streaming video for presenting points of
  discussion
• Remote and on-demand access for a client from
  anyplace in the world

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Anatomy of an Online Focus Group

• Screeners, Recruitment and Virtual Facilities
• Invitation and Preparations
• Preparation for Groups
• Show rates and Selecting Final Respondents
• Moderating
• Transcripts, Analysis and Reporting