Marketing Research Process

1
Marketing Research Process

• 1. Formulate Problems 6. Research
  Report
• - Specify Research
• Objectives
• 2. Research Design 5. Data
  Analysis
• - Exploratory, -
  Interpretation
• Descriptive, Causal
• 3. Data Collection Method 4. Sample
  Design
• -Primary, secondary -
  Sampling frame,
• -Questionnaire Design sample
  selection,
• -Attitude Measurement sample
  size

2
Perceptual Mapping Overview

• How do consumers evaluate products?
• What is a perceptual map?
• How to use perceptual maps?
• How to construct perceptual maps?

3
Product Evaluation

• What is the main difference between these two
  brands?
• Newspaper 1. SCMP 2. Ming Pao
• Supermarket 1. ParkNShop 2. Wellcome
• Car 1. Volvo 2. Honda
• Transportation 1. MTR 2. Taxi

4
Product Evaluation

• Only certain dimensions are keys in comparing
  products.
• Breakfast Snack glazed donut, toast, muffin,
  etc.
• 1. Easy to Prepare 2. Sweetness
• Pain reliever Tylenol, Advil, Dartil, etc.
• 1. Gentleness 2. Effectiveness
• Soft drink Coke, Pepsi, 7up,Diet Coke, Diet
  7-up.
• 1. Cola - noncola 2. Diet - nondiet

5
What is a Perceptual (Positioning) Map?

• Represent consumer perceptions and preferences
  spatially by means of a visual display.
• Axes represent underlying dimensions that
  respondents use to form perceptions and
  preferences of brands.

6
Ford Taurus
Pontiac Grand Am
Buick Century
Chevrolet Corsics
Toyota Camry
Ford Tempo
Honda Accord
Ford Thunderbird
7
Perceptual Map Soft drink

• Sprite
• 7 Up
• Coke
  Diet Coke
• Pepsi
  Diet Pepsi

8
Use of Perceptual Maps

• New product testing perception of a product
  concept.
• Test whether new product concept achieved
  intended positioning.
• Example breakfast concept intended to compete
  with donuts.
• New product development directions for R D
  efforts.
• Needs information on ideal point, that is, what
  feasible point on the map represents ideal
  combination of attributes for different customer
  groups.
• Example Pain reliever, childrens Tylenol.

9
New Product Testing Breakfast

• Easy to
  Prepare
• Glazed Donut
  Corn Muffin
• 
  and Butter
• Jelly Donut Coffee
  New
• Cake
  Concept
• 
  Sweetness
• Toast, tart
• 
  Butter Toast Jelly

10
Example Pain Reliever

• Competing brands Tylenol, Extra Strength
  Tylenol,
• Datril, Generic
  acetaminophen,
• Bufferin, Advil
• Three main segments
• 1. Kids lt 5 years old
• 2. 20 40 years old
• 3. 60 80 years old.
• Ideal points ideal combination for consumers.
• Brand Choice A consumer chooses the product
  closest to her ideal point
• Question a. which brands should do best in
  sales?
• b. any opportunities for new
  products?

11
Pain Relievers
Gentleness
Age lt10 Use fever
Age gt60 Use arthritis
Tylenol
Extra-strength Tylenol
Dartil
Age 20 40 Use Aches
Advil
Effectiveness
12

• How to construct perceptual map?
• Method one attribute-based ratings.
• Step 1 Identify list of attributes, and obtain
  ratings on each attribute.
• Step 2 Use factor analysis to identify key
  attributes and calculate ratings on key
  attributes.
• Use industrial products, and consumer products
  with explicit attributes like computers, cars and
  mobile phone.
• Method two similarity-based ratings.
• Step 1 measure similarity between pairs of
  brands.
• Step 2 use Multi-dimensional Scaling (MDS) to
  identify key attributes and computer ratings on
  key attributes.
• Used for consumer products without explicit
  attributes such as perfume, shampoo, beer,

13
Perceptual Mapping Summary

• Consumers evaluate products based on key
  attributes.
• Perceptual map represents consumers quality
  perception on a spatial map.
• Perceptual maps can be productively used to test
  new products and identify opportunity for new
  products.
• Perceptual maps are constructed with factor
  analysis or multi-dimensional scaling.