chapter6.ppt 897KB Jan 08 2004 10:32:40 PM

Chapter VI
Descriptive Research Design
Survey and Observation

Chapter Outline
1) Overview
2) Survey Methods
3) Survey Methods Classified by Mode of Administration
i. Telephone Methods
a. Traditional Telephone Interviews
b. Computer-Assisted Telephone Interviewing (CATI)
ii. Personal Methods
a. Personal In-home Interviews
b. Mall-Intercept Personal Interviews
c. Computer-Assisted Personal Interviewing (CAPI)
iii. Mail Methods
a. Mail Interviews
b. Mail Panels
iv. Electronic Methods

4) A Comparative Evaluation of Survey Methods

i. Flexibility of Data Collection
ii. Diversity of Questions
iii. Use of Physical Stimuli
iv. Sample Control
v. Control of the Data Collection Environment
vi. Control of Field Force
vii. Quantity of Data
viii. Response Rate
ix. Perceived Anonymity
x. Social Desirability/ Sensitive Information
xi. Potential for Interviewer Bias
xii. Speed
xiii. Cost

5) Selection of Survey Method(s)
6) Observation Methods
i. Structured vs. Unstructured Observation
ii. Disguised vs. Undisguised Observation
iii. Natural vs. Contrived Observation
7) Observational Methods Classified by Mode of

Administration
i. Personal Observation
ii. Mechanical Observation
iii. Audit
iv. Content Analysis
v. Trace Analysis

8) A Comparative Evaluation of Observational Methods
i. Degree of Structure
ii. Degree of Disguise
iii. Ability to Observe in Natural Setting
iv. Analysis Bias
v. General Remarks
9) A Comparison of Survey and Observational Methods
i. Relative Advantages of Observation
ii. Relative Disadvantages of Observation

10) International Marketing Research
11) Ethics in Marketing Research
12) Internet and Computer Applications

13) Focus on Burke
14) Summary
15) Key Terms and Concepts
16) Acronyms

RIP 6.1

Survey Research is in the Cards
for DEC

Digital Equipment Corporation (DEC) has made a conscious
effort in the past years to shift from a product-driven focus to
a more market-and consumer-driven focus. The product focus
is not unusual in companies manufacturing hi-tech products.
There is a serious need for market research in these hi-tech
companies as they direct their products to the market. Still,
market research in this arena is difficult. It is complicated by
the rapid change of technology as well as the sheer size of the
application market. Often the technology will be employed in
many different industries.

RIP 6.1 Contd.

This holds true for the computer market where DEC is a key
player. Computers are bought by individuals in every walk of
life as well as by businesses in every market imaginable. The
breadth of the market makes useful market research a
formidable task. This task is being undertaken at DEC in their
Corporate Marketing Services (CMS) Division, however.
research data are used.

6.1 contd..

“Digital’s Corporate Marketing Services
Division has been a core element in the
company’s transition to a market-driven
strategy.”

CMS is coordinating the company’s strategy to
redefine their product from simply computers to a

broader view of the business solutions. The CMS has
employed many research techniques to gain a better
understanding of the “business solutions” market.
Both primary and secondary

RIP 6.1 Contd.

Primary data are obtained through the use of phone and mail
surveys as well as seminars and focus groups. Phone surveys
have been used to define customer needs better and to direct
products to the customers better. Mail surveys have been used
to study customer purchasing habits as well as future
purchasing plans. Seminars are held to gain feedback on the
long-term production plans at DEC. Finally, focus groups are
used to determine whether the chosen strategy is good and one
that will effectively manage and use the market’s potential.
Without CMS and marketing research, DEC would be facing
the unknowns of their technology as well as the market. This
combination of obstacles would have made the transition from
a product-focused to a market- and consumer-focused

company an impossibility.

A Classification of Survey Methods

Fig. 6.1

Survey
Methods

Telephone

Personal

In-Home

Traditional
Telephone

Mall
Intercept

Computer-Assisted
Telephone
Interviewing

Mail
Computer-Assisted
Personal
Interviewing
Mail
Interview

Electronic

E-mail

Mail
Panel

Internet

Table 6.1

Some Decisions Related to the
Mail Interview Package

Outgoing Envelope
Outgoing envelope: size, color, return address
Postage
Method of addressing
Cover Letter
Sponsorship
Type of appeal
Postscript
Personalization Signature
Questionnaire
Length
Size
Layout
Format

Content
Reproduction
Color
Respondent anonymity
Return Envelope
Type of envelope Postage
Incentives
Monetary versus non-monetary Prepaid versus promised amount

Table 6.2

A Comparative Evaluation of Survey Methods

MallPhone/C In-Home
Mail
Intercept CAPI
ATI
Interviews Interviews
Surveys
Flexibility of data collection Moderate

High
High
Moderate
Low
to high
to high

Mail
Panels

E-Mail

Internet

Low

Low

Moderate to
high

Diversity of questions

Low

High

High

High

Moderate

Moderate

Moderate

Use of physical stimuli

Low

High

High

Moderate

Moderate

Low

Moderate

Moderate

Low

Low

High

High

Low

Moderate
to high
Low

Low

Lowto
moderate
Low

Moderate
Low
Moderate
Moderate

Moderate
to high
Potentially
high
Moderate
to high
Low
High
High
Low

Moderate to
high
Moderate

Moderate
Moderate
High
Low

Moderate
Moderate
High
Low

High
Moderate
Low
High

High
High
Moderate
High

High
Moderate
Low
Moderate

High
Moderate
Very Low
High

Moderate
High

High
Low

High
Low

Low
High

Low
High

Moderate
Moderate

Low
High

Moderate
High

High
Moderate

None
Low

None
Very high

High

None
Lowto
moderate
Lowto
moderate

None
High

Moderate

High
Moderate
to high
Moderate
to high

High
Lowto
moderate
Low
Moderate
to high
Moderate
to high

Low

Low

Criteria

Sample control
Control of data collection
environment
Control of field force
Quantityof data
Response rate
Perceived anonymityof the
respondent
Socialdesirability
Obtaining sensitive
information
Potential for interviewer bias
Speed
Cost

Moderate
to high
Moderate

Low

Fig. 6.2

Random Digit Directory Designs

Adding a Constant to the Last Digit
An integer between 1 and 9 is added to the telephone
number selected from the directory. In plus-one sampling
the number added to the last digit is 1.
Number selected from directory: 953-3004 (exchangeblock). Add one to the last digit to form 953-3005. This is
the number to be included in the sample.
Randomizing the r Last Digits
Replace the r (r = 2, 3, or 4) last digits with an equal number
of randomly selected digits.
Number selected from directory: 881-1124. Replace the last
four digits of the block with randomly selected numbers 5,
2, 8, and 6 to form 881-5286.

Two-Stage Procedure
The first stage consists of selecting an exchange and
telephone number from the directory. In the second stage, the
last three digits of the selected number are replaced with a
three-digit random number between 000 and 999.
Cluster 1
Selected exchange: 636
Selected number: 636-3230
Replace the last three digits (230) with randomly selected 389
to form 636-3389.
Repeat this process until the desired number of telephone
numbers from this cluster is obtained.

RIP 6.2

Sample Mailing Lists

List Title
Advertising agencies
Banks, branches
Boat owners
Chambers of Commerce
Personal computer owners
Families
Hardware wholesalers
Magazines, consumers
Photographic, portrait
Sales executives
Wives of professional men
YMCA’s

Number on List
3892
11089
4289601
6559
2218672
76000000
7378
4119
33742
190002
1663614
1036

* Price shown is per 1000 names (/M), except where noted.

Price
$45/M
$85/M
$50/M
$45/M
Inquire
Inquire
$45/M
$45/M
$45/M
$55/M
$60/M
$85

A Classification of Observation
Fig. 6.3
Methods
Classifying

Observation
Methods

Observation Methods

Personal
Mechanical
Observation Observation

Audit

Content
Analysis

Trace
Analysis

RIP 6.3

Building Accord According to Personal
Observation

Honda Motor Co. had a lot of complaints on their sporty, restyled
Accord (not big enough for U.S. drivers, not stylish enough for the
Japanese drivers). Being afraid to lose its market, Honda sent
teams to visit U.S. families and observe how the Americans used
their Honda Accords. By personal observation, the teams found
out that the Americans like lots of compartments for storing maps
and change. The teams also actually took U.S. road trips in
Accord and in Ford Taurus and Toyota Camry as its rivals in
midsize cars. The results of this observation study were used to
design a new 1998 Accord for U.S. drivers which has 101.7 cubic
feet for passenger space compared to 101.5 cubic feet for Ford
Taurus and 97.9 cubic feet for Toyota Camry. Moreover, Accord
also delivered higher customer value by cutting the price. With
these changes, Honda executives are expecting to increase U.S.
sales to total of 1 million units by the year 2000.

.

Using the results of personal observation studies, Honda customizes
the Accord to world markets. U.S. Accord is designed as a family car
by providing extra headroom and a roomy interior to keep up with the
demands of its aging baby-boomers customers, while Japanese
Accord is designed as a compact, sporty car loaded with high-tech
gizmos aimed at young professionals, it is also smaller to adjust to
narrower roads in Japan. Honda also paid attention to its European
market. The 1998 Accord for European version was a short, narrow
body customized to tiny streets in Europe but not losing its stiff and
sporty ride aimed at the Old World drivers.

Table 6.3

Criteria
Degree of structure
Degree of disguise
Ability to observe
in natural setting
Observation bias
Analysis Bias

A Comparative Evaluation
of Observation Methods
Personal
Mechanical
Observation Observation

Content
Analysis

Trace
Analysis

Low
Medium
High

Low to high
Low to high
Low to high

High
Low
High

High
High
Medium

Medium
High
Low

High
High

Low
Low to
Medium
Can be
intrusive

Low
Low

Medium
Low

Medium
Medium

General remarks Most flexible
resort

Audit
Analysis

Expensive

Limited to
Method of
communications last

A Comparative Evaluation of Survey Methods
Table 6.4 for International Marketing Research
Criteria
Telephone
Personal
Mail
High sample control
+
+
Difficulty in locating
+
+
respondents at home
Inaccessibility of homes
+
+
Unavailability of a large
+
+
pool of trained interviewers
Large population in rural areas
+
Unavailability of maps
+
+
Unavailability of current
+
telephone directory
Unavailability of mailing Lists
+
+
Low penetration of telephones
+
+
Lack of an efficient postal system
+
+
Low level of literacy
+
Face-to-face communication culture +
Poor access to computers and Internet?
+
?
Note: A + denotes an advantage, and a - denotes a disadvantage.

Electronic
+
+
+
+
+
+
+
-