Mar-3023 Lecture Notes - Lecture 5: Total Quality Management, Cluster Analysis, Dependent And Independent Variables
Day 5: Using Market Research to Assess Needs
Marketing Research: the process of designing, gathering, analyzing, and reporting information that may
be used to solve a marketing problem.
➢ Ex: Product Development, Pricing Studies, Customer Satisfaction Assessments, Distribution
Analysis, Promotion Effectiveness Studies
Marketing research came from the 1980's with the Total Quality Management Movement (Deming &
Juran)
• Marketing research is customer oriented
o Research is done to find customer reaction to the product
o Research is done to compare the product to competitors' products
o Research is done to find problems with the product
Marketing research is important because…
• It gives managers answers to important questions
o If you decrease customer defection by 5%, you can increase profits by 25-100%
o One unhappy customer can tell 9-12 others, making your company look bad
o )t’s five times as costly to attract new customers than it is to retain old ones
o On average, U.S. firms lose half of their customers every five years
• )t’s the foundation for marketing strategy decisions
o Cluster Analysis: a statistical analysis technique that identifies customer segments
o The researcher measures things like price sensitivity & importance of quality & on-time
delivery.
o Cluster analysis identifies groups (segments) of customers that have similar
characteristics
o Firms can then plot the segments against their core competencies and target the groups
with the highest probability of purchasing their products
Types of Research
1. Applied Research: research designed to solve a specific problem – usually for a specific company
(e.g., consulting)
2. Basic Research: research designed to extend knowledge of marketing phenomena.
• Generally published in journals such as… JM, JMR, JCR, MS, JR, JAMS
➢ Brady did basic research on why people don’t complain about bad service experiences… At
McDonald’s, only % 60/00 of the of the daily service complaints are addressed.
The real problem is that what if 1,890 only represents 5% of the dissatisfying experiences?
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Day 5: using market research to assess needs. Marketing research: the process of designing, gathering, analyzing, and reporting information that may be used to solve a marketing problem. Ex: product development, pricing studies, customer satisfaction assessments, distribution. Marketing research came from the 1980"s with the total quality management movement (deming & Juran: marketing research is customer oriented, research is done to find customer reaction to the product, research is done to compare the product to competitors" products, research is done to find problems with the product. Brady did basic research on why people don"t complain about bad service experiences at. Mcdonald"s, only (cid:885)(cid:885)% (cid:523)6(cid:885)0/(cid:884)(cid:884)00(cid:524) of the of the daily service complaints are addressed. Sacrifice (25%), switching (15%), sympathy (9%), atc (2. 5%) Complaints that don"t happen are due to: service provider responsiveness (35%), A recent paper looked at the interplay between a firm"s outward affiliation with a religious group and customers" reactions to a service failure.
