Solution Manual For Marketing Research, 10th Edition Alvin C. Burns Ann Veeck

Solution Manul For Marketing Research, 10th edition Alvin C. Burns Ann Veeck Chapter 1-14 CHAPTER 1 INTRODUCTION TO MARKETING RESEARCH LEARNING OBJECTIVES

1.1 Analyze the relationship of marketing research to marketing, the marketing concept, and marketing strategy 1.2 Define marketing research in several ways 1.3 Identify three uses of marketing research 1.4 Compare different types of marketing research companies 1.5 Explain the industry structure of marketing research 1.6 Outline new challenges to the marketing research industry 1.7 Identify industry initiatives for self-improvement 1.8 Assess areas of ethical sensitivity in the marketing research process 1.9 Investigate careers in the marketing research industry

CHAPTER OUTLINE

Introduction to Marketing Research Marketing Research Is Part of Marketing 

The Philosophy of The Marketing Concept Guides Managers’ Decisions

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Creating The ―Right‖ Marketing Strategy

What Is Marketing Research? 

Is it Marketing Research or Market Research?

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The Function of Marketing Research

What Are the Uses of Marketing Research?

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Identifying Market Opportunities and Problems

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Generating, Refining, and Evaluating Potential Marketing Actions o Selecting Target Markets o Product Research o Pricing Research o Promotion Research o Distribution Research

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Monitoring Marketing Performance

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Improving Marketing as a Process

Who Conducts Marketing Research? 

Client-Side Marketing Research

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Supply-Side Marketing Research

The Industry Structure 

Types of Firms and Their Specialties

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Industry Performance

Challenges of the Marketing Research Industry 

The Need to Incorporate Innovative and Evolving Sources of Data and Technology

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The Need to Effectively Communicate Insights

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The Need to Hire Talented and Skilled Employees

Industry Initiatives Copyright © 2026 Pearson Education, Inc.

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Best Practices

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Maintaining Public Credibility of Research

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Monitoring Industry Trends

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Improving Ethical Conduct

Industry Standards and Ethics

A Career in Marketing Research 

Where You’ve Been and Where You’re Headed!

Job Skills

KEY TERMS Agency

Applied research

Basic research

Client-side research

Crowdsourcing

Do-it-yourself (DIY) research

Frugging

Full-service supplier firms

Function of marketing research

Limited-service supplier firms

Market research

Marketing

Marketing concept

Marketing research

Marketing strategy

National Do Not Call Registry

Sugging

Supplier

Supply-side research

Transparency initiative

TEACHING SUGGESTIONS Copyright © 2026 Pearson Education, Inc.

1. The purpose of the first section in the chapter is to review marketing, the marketing concept, marketing strategy, and the environments that affect marketing activities. A way to test students is to have them role-play as marketing managers for a new brand, or different version of a particular product. In the following examples, what would be the target market, salient marketing activities, positioning strategy, and environmental factors? 

Launching a new brand of sparkling water fruit drink

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Marketing an online apartment finder that assists college students in finding an apartment. The finder would search for apartments based on criteria, check on vacancies, and let the user place a refundable deposit to hold the apartment for 24 hours while he/she checked it out.

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Being the new vice president of the ABC Interactive Television Programs Division

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Positioning the iPhone against other similar products

2. The AMA definition makes clear that marketing research exists to create information to be used in marketing decisions. Product failures are good examples of how marketing information should have been used to design products, packaging, or services. Students can often recall products or services that were disappointing or otherwise failures in their eyes.

Class discussion can be stimulated with the question, ―What product or service can you think of or have encountered that would have benefited from good marketing research?‖ On the flip side, students may relate products that they believe are especially successful, such as Amazon. This is a company most students can relate to. Although many stores now deliver directly to the home, Amazon has created Amazon lockers and other safeguards for the home delivery business. Does this influence a student’s purchase decision? Do students buy from Amazon instead of a local retailer because of these safeguards? The objective with successful product/service examples is the same.

3. The website for Emergent Design Labs is www.emergntdesignlabs.com. As an exercise, tell students to visit the website to see what it is all about. Class discussion can focus on the marketing research aspects of the new product development process outlined and described there and in the services this company provides.

4. To drive home the importance of marketing research information in marketing decisions, ask students what type of restaurant they would build and operate right off campus. They will opt for one that is appropriate for college students—maybe a late night hangout or a takeout service. Then ask what type they would build if the location were beside a university in a distant state. They will most likely give the same answer. Now, move the location to a foreign university (say mainland China where all college students live in dorms, eat in dining halls, have free tuition, don’t drive cars, etc.). If possible, use a country that you are familiar with and that is quite different from your students’ situations. They will come to realize that they need information in order to make reasonable decisions about the restaurant.

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5. Hold a class brainstorming session on marketing opportunities. Select one of the examples below or use your own to generate several different directions in which these companies could go. Ask the class what marketing research information would be useful to evaluate the success potential of each opportunity.

What marketing opportunities are there for: A zoo?

A family restaurant?

A pet food company?

A new phone app?

The first Active Learning exercises featured Google. What are the marketing opportunities for Google?

6. Perhaps using one of your own applied research experiences, such as a consultation, to illustrate the various characteristics of marketing research (applied rather than basic, sometimes inaccurate, and shaped by budget and time constraints). Note: If you use class projects where surveys are done for sponsors, you can bring one of these into the class and describe how it illustrates the characteristics. You may want to bring a recent copy of an academic marketing journal to class to provide some examples of basic research.

You may want to reinforce the idea that marketing research projects, unlike the other components of MIS, are not continuous— they have a beginning and an end. This is why marketing research studies are often referred to as ―projects.‖ Marketing research projects are launched only when there is a justifiable need for information that is not available from internal reports, intelligence, or the DSS. 7. Have the students spend some time focusing on the current business environment. What are some of the challenges that marketing research firms might face? Do they differ from those of a few years ago? Why or why not?

8. Discuss some of the ethical issues in marketing created by the emergence of Generative AI. How can marketing researchers ensure the integrity of their product when they use GenAI? Identify some best practices for using AI.

ACTIVE LEARNING EXERCISES Lego and Crowdsourcing

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Lego is known worldwide for the passion it inspires in consumers of all ages for its sets of building blocks. The company does not have official statistics on the demographics of its users, but it estimates that up to half of its store revenue may come from adult users, or AFoLs (Adult Fans of Lego). To capitalize on the enthusiasm of its fans, Lego has created a web platform called ―Lego Ideas‖ where consumers can post ideas for new concepts (see https://ideas.lego.com/).

Go to the platform and look at the ―In the Shop‖ section to see which ideas made the cut.

This can be a fun exercise for students to experience market research in a personal way.

While the results will vary depending on when the website is accessed, a discussion about the products and crowdsourcing can be meaningful.

Look at some of the challenges Lego has generated for consumers. Can you tell which demographic group each challenge is targeting?

Responses will vary by student and challenge. When developing this marketing tool, it is important to look at a variety of issues that can be tracked with data, and often the less obvious issues can generate more valuable insight. Discuss how Lego might have generated a specific challenge.

Do you have the chops to become a Lego creator? If you have a great idea submit it and see what happens.

Students could submit ideas in class and then debate and vote on which ideas are the best prior to submitting. Have the students justify their ideas and explain why the idea should be successful. This exercise will give the class an example of small-scale marketing research.

Use Google Alerts to Create Your Own Intelligence System Thanks to the information age, Google Alert represents an efficient way for even small firms to maintain their own intelligence system.

The free trial recommended for students is an example of how a constant monitor will alert them to some news or ―happening‖ on their topic. It works like a marketing intelligence system that watches everything on the Internet—news, blogs, videos, etc.—that pertains to the key work search topics.

ANSWERS TO END-OF-CHAPTER QUESTIONS

1-1.

What is marketing? What is the relationship of marketing research to marketing?

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Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

The main role of marketing research is to provide the necessary information that enables managers to market ideas, goods, and services properly.

1-2.

Why is it important for decision makers to have philosophies? What is the marketing concept and what is its relationship to marketing research?

A philosophy may be thought of as a system of values, or principles, by which you live.

There are many different philosophies that managers may use to guide them in their daily decision making.

The marketing concept is a business philosophy that holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.

1-3.

Define marketing research. What is the difference between marketing research and market research?

The textbook definition: Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

The AMA definition: Marketing research is the function that links the consumer, customer, and public to the marketer through information—information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process.

Market research refers to applying marketing research to a specific market area. One definition of market research is: The systematic gathering, recording, and analyzing of data with respect to a particular market, where market refers to a specific customer group in a specific geographic area.

1-4.

Find two outside examples of how companies created new product lines as a result of identifying market opportunities or problems.

Responses will vary by students. Some examples might include ―to-go‖ breakfast foods, drink varieties at coffee shops, or wearable technology such as Fitbit, etc.

1-5.

Name four major uses of marketing research and provide one example of each.

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The chapter describes four uses:  Identify and define marking opportunities and problems—how does the price of gasoline affect the sales of electric vehicles?  Generate, refine, and evaluate marketing actions—are consumers willing to pay more for organic food?  Monitor marketing performance—tracking how many units of a product are sold, and what type of distributor is selling the most product.  Improve understanding of marketing as a process—research conducted for an industry instead of a company or product, such as the cellular phone service industry.

1-6. You are responsible for the launch of a new product by your electronics firm. Describe questions that you will want answered through each of the following types of marketing research: (a) product research, (b) pricing research, (c) promotion research, and (d) distribution research.

Students can provide examples from the text or come up with their own examples.

1-7 List three product failures and explain the most important reason that they failed. Could these failures have been avoided with better research information?

Responses will vary by student, but may include Life-Savers sodas, Colgate food entrees, and Frito-Lay lemonade, as indicated in the text. The marketing concept states that the key to business success lies in being more effective than competitors in creating, delivering, and communicating value to the chosen target market. Companies who focus on products and selling efforts tend to be less successful. New products require a plan to provide value based on consumer wants and needs.

1-8. What example can you give of a company that is using crowdsourcing to create a product?

To develop advertising?

Crowdsourcing is the practice of obtaining services or ideas by asking for assistance from large groups of people, generally inline communities. The firm Cell Zones wanted to create soundproof booths for private cell phone use to create privacy in libraries, restaurants, and so on. Research would have shown that people use smartphones to text, not talk; therefore the need for privacy was less important for the consumer.

Chobani launched an advertising campaign that focused on online advertising instead of traditional media such as TV. Based on the success of the online advertising, Chobani extended and expanded the campaign. Lego is also a great example of a firm that used crowdsourcing for product development.

1-9. Find three examples of articles that describe companies using marketing research in business publications, such as the Wall Street Journal, Advertising Age, Business Week, Fortune, and Forbes. Your local public library should be a good source of business periodicals.

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Application question. This question requires students to find marketing research examples.

This is an exercise for students to use library or online resources to find marketing research examples. There is no ―right‖ answer here.

1-10. Describe the difference between client-side and supply-side research. What other terms are used to refer to companies that are involved in client-side research?

Research that is conducted within an organization is called client-side research. Clientside research is also called end-client research or in-house research. Supply-side research refers to research that is conducted by an outside firm to fulfill a company’s marketing research needs.

1-11. What are some advantages and disadvantages of DIY research?

Do-it-yourself research, (DIY), is considered one of the most important emerging trends for client-side marketing research departments. DIY research can provide the information needed to solve the user’s problem in a cost-effective way. An increasing number of tools powered by AI are being developed for organizations to conduct their own marketing research. However, while DIY has its place, business owners and managers often do not have the time or expertise to feel confident about using DIY for important issues and will hire marketing research professionals to assist them with their information needs.

1-12. What are full-service supplier firms? What types of services do they provide?

Full-service supplier firms can conduct the entire marketing research project for buyer firms. Full-service firms offer clients a broad range of services; they often define the problem, specify the research design, collect and analyze the data, and prepare the final written report. Typically, these are larger firms with the expertise and necessary facilities to conduct a wide variety of research that may range from qualitative studies to large international surveys to modeling the effects of a proposed marketing mix.

1-13. List and describe two different types of marketing research services. What firms offer those services?

There are several different types of services offered by full-service supplier firms including:  Syndicated data services—Analyze the trends and consumer behavior within an industry and sell to many companies.  Digital data analytics—Provide client services associated with measuring online consumer behavior and measurement or online data collection.  Customized services—Provide services customized or tailored to individual clients’ needs.

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 Industry or market segment specialists—Specialize in a particular industry or market

segment.  Self-serve research platforms—Provide software platforms or tools for DIY research.

1-14. What are three challenges facing the marketing research industry? Why? The three primary challenges facing the marketing research industry include the need to incorporate new and evolving sources of data and methodologies, to improve the communication of results, and to hire talented and skilled employees. These are all driven by the rapid pace of technological change in the industry.

1-15. What is the National Do Not Call Registry? What type of communication is exempt from it?

The National Do Not Call Registry was established in 2002. It allows U.S. residents to register their telephone numbers to be protected from receiving unsolicited telemarketing calls. Note, however, that unsolicited phone calls to conduct surveys are exempt from the restrictions imposed by the Do Not Call Registry. In other words, researchers conducting surveys can still legally call U.S. residents.

1-16. Define sugging and frugging. Give an example of each.

Sugging is the practice of ―selling under the guise of research‖—illegal. Telemarketers used sugging for years to entice the public into taking what they thought was an opinion survey but actually was a lead-in for a sales pitch. The industry also discourages the use of enticing unknowing consumers into taking a survey when the real intent is to raise funds. This practice is known as frugging, for ―fundraising under the guise of research.‖ Political parties have used this technique for years.

1-17. Is it ethical for the Republican and Democratic parties to engage in frugging (see MRI 1.3)? Explain.

Frugging has been practiced by both the U.S. Democratic and Republican parties for many years. The marketing research industry condemns frugging. As the American Association of Public Opinion Research states, ―The practice undercuts the legitimacy of our profession, no matter who employs it.‖ Furthermore, it can undermine Americans’ trust in political parties to respect their opinions.

1-18. List three important marketing research codes and provide a brief explanation of what purpose they are intended to serve.

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There are several groups and associations that identify appropriate standards of ethical conduct including: AAPOR (www.aapor.org): Go to Standards & Ethics.

Insights Association (www.insightsassociation.org): Go to Code of Standards.

ESOMAR (www.esomar.org): Go to ICC/ESOMAR International Code.

MRS (www.mrs.org.uk): Go to Standards.

All of them are designed to ensure that marketing researchers behave in an ethical manner in all marketing research activities and business dealings.

CASE SOLUTIONS Case 1.1 Oatly and Plant-Based Milk Sales Case Objective This case illustrates how marketers need to understand the difference between products, specifically cow milk and plant-based milk, and their value in the minds of consumers. There is a great deal that is unknown about the audience’s preference for cow milk and plant-based milk.

Consequently, marketing research can assist by providing information.

Answers to Case Questions 1. Based on the definition of marketing research, do you think that marketing research can help Oatly increase its sales of oat milk? Explain.

Because the purpose of marketing research is to ―…link the consumer to the marketer by providing information that can be used in marketing decisions,‖ this situation calls for marketing research information. One use of marketing research is to identify marketing opportunities.

2. Which of the three uses for marketing research identified in the AMA definition might help Oatly improve oat milk sales? Why? The role of market research as a process is used to define the size, location, and/or makeup of the market for a product or service. Oatly would benefit from researching the makeup of the market for plant-based milk and determine the size of that market. This would allow Oatly to better forecast the demand for plant-based milk.

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3. Marketing research is used in all areas of the marketing mix, including determining target markets and conducting research of products, pricing, promotion, and distribution. Which of these areas do you think would be most useful for Oatly to use to increase plant-based milk sales. Explain.

Oatly might find it useful to consider the pricing and promotion aspects of marketing. If consumers typically value plant-based milk less than dairy products, the pricing structure needs to reflect that view, at least initially in order to stimulate demand. Additionally, Oatly can use a promotional strategy to help educate consumers in the value of plant-based milk, allowing for a more competitive pricing strategy. Health conscious consumers might be particularly interested in the low calorie products if Oatly creates awareness of this benefit.

Case 1.2 Pinnacle Research Case Objective This case describes how marketing research firm Pinnacle Research approached the task of determining whether Delish Donuts should expand to a nearby city. Delish Donuts wants to know more about the competition and whether its products would be successful in the city. Tracy and Josh have been assigned the task of answering these questions for Delish Donuts.

Answers to Case Questions

1. Do you think Josh’s actions are ethical? Explain.

No, Josh’s actions are unethical. He promised to enter the respondents in a drawing to give away an iPad and then did not follow through with his promise. This practice is unethical whether the participants knew of his actions. In addition, he collected contact information without informing the respondents that he would distribute this information.

2. Consult the Insights Association’s Code of Standards and Ethics for Marketing Research and Analytics. Are these standards in line with your judgment of the morality of Tracy and Josh’s actions? Explain.

Tracy and Josh have violated the standard on “Honesty and Transparency” which states “

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Be honest and transparent in all interactions.” Both misrepresented themselves in some fashion. Tracy lied and told the competitor she was conducting research for a college project and Josh lied about the iPad giveaway. Josh also violated the respondents’ right to confidentiality when he distributed contact information to Delish Donuts without informing the respondents he would do so. They were definitely not “Honest, transparent, fair, and straightforward” in their interactions.

3. Do you think that Delish will be pleased with the methods by which Pinnacle Research obtained findings to address their questions? Why or why not?

No, Delish Donuts will not be happy with Pinnacle Research’s tactics. Consumers such as Delish Donuts do not want to do business with unethical firms. In addition, these tactics could make new consumers in the nearby city believe that Delish Donuts was unethical.

CHAPTER 2 THE MARKETING RESEARCH PROCESS LEARNING OBJECTIVES In this chapter you will learn: 2.1 List the steps of the marketing research process 2.2 Define a problem statement 2.3 Formulate research objectives 2.4 Apply action standards to research objectives 2.5 Evaluate the components of the marketing research proposal CHAPTER OUTLINE The Marketing Research Process 

The 11-Step Process

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Caveats to a Step-by-Step Process o Why 11 steps? o Not all studies use all 11 steps o Steps are not always followed in order

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Introducing “Where We Are”

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Step 1: Establish the Need for Marketing Research o The information is already available o The timing is wrong o Costs outweigh the value

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Step 2: Define the Problem

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Step 3: Establish Research Objectives

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Step 4: Determine Research Design

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Step 5: Identify Information Types and Sources

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Step 6: Determine Methods of Accessing Data

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Step 7: Design Data Collection Forms

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Step 8: Determine the Sample Plan and Size

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Step 9: Collect Data

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Step 10: Analyze Data

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Step 11: Communicate the Insights

Defining the Problem 

1. Recognize the Problem o Failure to meet an objective o Identification of an opportunity

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2. Understand the Background of the Problem o Conduct a situation analysis Copyright © 2026 Pearson Education, Inc.

o Clarify the symptoms o Determine the probable cause of the symptom(s) 

3. Determine the Decisions Alternatives

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4. Formulate the Problem Statement

Research Objectives o Using Hypotheses o Defining Constructs Action Standards 

Impediments to Problem Definition

The Marketing Research Proposal 

Ethical Issues and the Research Proposal

KEY TERMS Steps in the marketing research process Action standard Construct

Decision alternatives

Field service firms

Hypotheses

Invitation to bid (ITB)

Key performance indicator (KPI)

Marketing opportunity

Marketing research proposal

Problem statement

Problems

Request for proposal (RFP)

Research objective

Situation analysis

Symptoms

Variables

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TEACHING SUGGESTIONS 1. Students will have some difficulty relating to the differences between managers and researchers. Brainstorm a list of knowledge, skills, and abilities of each as they relate to marketing.

2. If you have had a recent consulting experience with an interesting problem definition dialogue, use it as an example in class. Consider “acting out” the roles of the manager and the researcher in a question and answer format. Alternatively, you can have the class play the role of the researcher, and you play the manager. Exaggerate your manager role by giving cryptic answers and going into detail on irrelevant topics to emphasize that the researcher must be a persistent detective during the problem definition stage.

3. A slightly riskier variation of the dialogue is to actually have a manager come to the class with a marketing problem. You and/or the class play the role of the marketing researcher. You will have to do “stop action” timeouts to explain why certain questions are asked and to explain how the manager’s answers figure into the problem definition process. It is important that the manager agrees to this approach beforehand. If students know that a real marketing manager is coming to class, it may inspire them to study the problem definition material as preparation for the class.

4. We find that students often fail to make the transition from solving marketing problems (which is the orientation of all of their marketing courses to date) to thinking about providing information to help a marketing manager solve a problem (which is the purpose of marketing research). An in-class exercise that can help alleviate this problem is to pose a topic question such as “Should (insert company name) cut its prices by 20%?”

Some students will immediately rush to the recommendation to cut prices, but others will want to have more information. Class brainstorming can identify the needed information. When 10 to12 information topics are noted and agreed upon by the majority of the class as information needs, the instructor can then point out that marketing research activities are necessary to gather this information. That is, the researcher’s task is to gather accurate and timely information, not make the decision.

5. The American Red Cross blood drive example that is continued throughout the chapter is specifically chosen as one that students can relate to. Because blood donations have decreased, the Red Cross wants to determine as many feasible causes for the drop in donations as possible. While not all students will be blood donors, they should be able to relate to this concept. Instructors are encouraged to use the American Red Cross as example in class. For instance, go over this example and make certain that students understand how the list of potential causes was narrowed down to probable causes.

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6. Class discussion can be generated by presenting students with a problem situation and having them work through the step where they specify actions that may solve the problem plus identifying the consequences of each action. Here are some scenarios. 

Perrier notices that it is losing market share to fruit-flavored sparkling water competitors

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The school newspaper finds it increasingly difficult to sell advertising space

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The American Automobile Association thinks that carjacking is the number one fear of its members

7. The concepts of assumptions, uncertainty about these assumptions, and information gaps are somewhat abstract. It is useful to provide students with concrete examples.

One strategy is to identify a student who has a management capacity or who has knowledge of a company, such as a family business. Ask the student what they think the company can do to perform better. Then query the student to determine assumptions, certainty of these assumptions, and where there is uncertainty.

8. An important part of developing research objectives is determining what type of information should be measured. The concept of an operational definition of a construct is not easy for students to understand this early in the course. Instructors may wish to use example operational definitions for commonly used constructs. Additionally, instructors should explain the relationship between variables and constructs. The point of the discussion is that researchers are thinking way ahead of the problem definition and about the actual research methods including how the questions will appear on the questionnaire and how the results will be reported. It illustrates how much difference exists between the orientation of the researcher and the manager.

A “what-if” exercise that is useful to emphasize these differences is to take two or three of the constructs and say, for example: 

“What if the researcher found that 80% of the respondents are unfamiliar with the manager’s brand?”

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“What if the researcher found that most respondents did remember a recent ad for the product?”

The point is that the researcher would stop at reporting these findings, but the manager would go to work on them.

9. The chapter describes generically what is in a research proposal. If you have a research proposal with which you are familiar, such as a consulting project, consider using it as an example because students will relate to a specific example.

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10. Students will have little appreciation of the amount of work that goes into problem definition and proposal development by marketing research companies. They will also underestimate the amount of competition for research business. You may have a colleague in economics or real estate who has done a lot of grant proposal writing. This is analogous to responding to an ITB and ties in with the ITB/RFP aspects of the chapter. Ask your colleague to talk to the class about grant proposals, particularly the (low) success percentage. If you are lucky, he or she may also note some of the political aspects of grant awards. You can also look online for a variety of grant applications and discuss each element, including the research that must be done to create appropriate answers on the grant application REVIEW QUESTIONS/APPLICATIONS 2-1 What are the steps in the marketing research process?

1) Establish the need for marketing research 2) Define the problem 3) Establish research objectives 4) Determine research design 5) Identify information types and sources 6) Determine methods of accessing data 7) Design data collection forms 8) Determine the sample plan and size 9) Collect data 10) Analyze data 11) Communicate the insights 2-2 Are all of the steps in the marketing research process always followed in order? Why or why not? Give an example of a situation in which a step might be skipped in the marketing research project.

It is not always necessary to use all 11 steps in the marketing research process.

Sometimes, for example, a review of secondary research alone may allow the researcher to achieve the research objectives.

Most research projects do not follow an orderly, step-by-step process. For example, in some cases, after gathering the data, it may be determined that the research objectives should be changed.

2-3 Select a real or hypothetical situation where the timing might be wrong for conducting marketing research. Discuss why the timing is critical in that scenario.

Even though automation has sped up some parts of the marketing research process considerably, circumstances may dictate that there is simply not enough time to Copyright © 2026 Pearson Education, Inc.

conduct marketing research. As an example, let’s assume that an auto manufacturer introduces a hydrogen engine that runs on water, and sales of the car are unprecedented in the history of this mode of transportation. Do other auto firms need to do marketing research to determine what the market preferences are? Other examples of innovations could be a new package design, a new flavor, or a new ingredient that causes breakthroughs in sales and market shares. Competitive firms need to react quickly. Timing may also be a factor for products that are nearing the end of their lifecycle. When products have been around for many years and are reaching the decline stage of their life cycle, it may be too late for research to produce valuable results.

2-4 What is meant by the problem? Explain the two sources of marketing problems.

A problem is a situation calling for a manager to make choices among alternatives.

A problem exists when a gap exists between what was supposed to happen and what did happen. This is called a “failure to meet an objective.” This second type of problem, called an opportunity, occurs when there is a gap between what did happen and what could have happened.

2-5 Why is defining the problem the most important step in the marketing research process?

What negative outcomes could result from not properly defining the problem?

If the problem is not defined correctly, all of the following steps in the marketing research process will be wasted. That is, the wrong problem will be investigated, and the findings will not be useful to the marketing manager.

2-6 What is a key performance indicator (KPI)? Give five examples of KPIs. Many companies find it useful to identify KPIs to provide a measure of how well the company is achieving its marketing objectives. The number of KPIs that are tracked should be large enough to provide comprehensive measures of a company’s performance. However, if too many KPIs are measured and displayed, they may begin to lose their impact. The KPIs should be carefully selected in consonance with a company’s goals.

Brand awareness: Ad recall, unique visitors, comments, referrals, retail traffic Engagement: Likes, shares, blog comments, net promoter score, bounce rate Sales: Market share, marketing penetration, orders, revenue, growth, conversion Return on investment: Customer acquisition cost, marketing return on investment, customer lifetime value Quality control: Returns, complaints, review scores 2-7 Define a marketing opportunity. Give an example of a company taking advantage of an opportunity.

An opportunity occurs when there is a gap between what did happen and what could have happened. This situation represents a failure to realize a “favorable Copyright © 2026 Pearson Education, Inc.

circumstance or chance for progress or advancement.” Examples of opportunities might include a new use for a product that is identified on social media, or delivering a service to the door of a desirable target market.

2-8 What is the role of symptoms in problem recognition?

Symptoms are changes in the level of some key monitor that measures the achievement of an objective, so a failure is indicated by the level of the monitor. Or the symptom may imply some current or upcoming opportunity.

2-9 Think of a situation where a company observes a decline in customer satisfaction. List possible symptoms that may indicate this problem and discuss how each symptom could be validated.

The role of a symptom is to alert management to a problem—that is, there is a gap between what should be happening and what is happening. Possible symptoms of declining customer satisfaction include:  Is the product quality declining?  Are customers unhappy with our service?  Is the company’s reputation falling?  What other factors could be contributing to customer satisfaction?

Next, researchers need to assess the symptoms themselves. Can the symptoms be verified by other factors that are identified in the situation analysis? Are the symptoms one of a kind? Are they likely to appear again? In fact, the researcher acts much like a detective. The researcher’s role is to explore and to question, with the aim of properly defining the problem. Once the researcher has validated the symptoms, they are now ready to examine their causes.

When defining the problem, researchers must validate the symptoms that alerted management to the problem in order to ensure that the symptoms are correctly reporting what they portend to report. Researchers should work with managers to determine all possible causes for the symptoms.

2-10 Imagine you are a marketing manager for a struggling retail brand. Identify three potential decision alternatives to improve the brand’s performance. Discuss the potential consequences of each alternative.

Decision alternatives are all the marketing actions that the manager thinks may resolve the problem. Common examples are price changes, product modification or improvement, new promotional campaigns, and adjustments in channels of distribution. During this phase, the researcher’s marketing education and knowledge come fully into play. Often, the manager and researcher brainstorm possible decision alternatives that may serve as solutions. It is important for the Copyright © 2026 Pearson Education, Inc.

manager to specify as many decision alternatives as possible that might address the probable cause of the symptom. Potential outcomes of each decision alternative include increasing brand performance, no change in brand performance, or even a decline in brand performance.

2-11

What is the role of a hypothesis in defining the problem?

Hypotheses are statements that are taken for true for the purposes of argument or investigation. Sometimes hypotheses are used to guide the development of the research objective.

2-12 Discuss the characteristics of effective research objectives. Why is clarity important?

Research objectives should be clear, specific, and actionable. In other words, given the limitations of time, money, and technology, the research objectives should be obtainable through marketing research. Without clarity it will be impossible to implement the study and answer the appropriate questions.

You can formulate a research objective as a statement such as “To determine what college students see as the benefits of donating blood.” You can also formulate research objectives as questions, such as “What do college students see as the benefits of donating blood?”

2-13 Define a construct. What are some questions to ask that will help formulate constructs?

A construct is an abstract idea or concept composed of a set of attitudes or behaviors that are thought to be related.

Consider an example of managers faced with a decision involving four ads. They need to choose the best ad. But what is ―best‖? It is hard to write a research objective without defining this type of criterion. What information will tell us which ad is best? Is it the ad that is most memorable? Most relevant? Most believable? Least likely to be misinterpreted? Most likable? Most likely to produce a favorable attitude? Most likely to produce an intention to buy the advertised product?

2-14 Select a consumer product of your choice. Identify at least three constructs that marketers might consider when assessing consumer preferences for a brand.

Answers will vary based on the product chosen. However, three possible constructs used to assess consumer preferences for a brand include:  Brand loyalty  Intention to buy  Brand reputation Copyright © 2026 Pearson Education, Inc.

It is imperative to measure the right construct. If the correct constructs are not used, a decision cannot be made.

2-15 What is an action standard? How might defining action standards lead to better results?

An action standard is the predesignation in a research objective of some quantity of the attribute or characteristic being measured that must be achieved in order for a predetermined action to take place. The purpose of the action standard is to define what action will be taken given the results of the research findings.

2-16

Give an example of an impediment to problem definition.

The impediments discussed are: (1) managers sometimes fail to realize that they must change their behavior for problem-definition situations and (2) differences such as organizational position, responsibilities, and training between managers and researchers.

2-17

What are the elements of the marketing research proposal?

The components are:  Statement of the problem  The research objectives  The research method  Statement of deliverables  Cost  Timetable Here is a detailed description.

Function Defines the marketing management problem

Specifies the research objectives Details the research method proposed by the researcher to accomplish the research objectives Gives a tentative timetable and budget

Description The problem statement identifies: (1) the client company and principals, (2) symptoms, (3) possible causes of these symptoms, and (4) anticipated uses of the research.

The proposal itemizes the information objectives agreed to by the manager and researcher.

The proposed research method identifies data collection mode, questionnaire design, sample plan, and other aspects of the anticipated marketing research.

There is a time line, or at least an eta for the completion and cost and payment

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provisions.

2-18 Go to your library’s online databases or the internet and look for examples of firms conducting a marketing research study. There are many examples reported in periodicals such as Advertising Age, Marketing News, Business Week, and Forbes.

Identify as many of the steps in the marketing research process as possible that are referred to in the articles you find.

Responses will vary based on the websites students looked at. However, specific examples and steps should be identified.

2-19 Identify what you believe are the three most important key performance indicators (KPIs) that the seafood restaurant Red Lobster should use to measure its success. Explain.

Answers will vary by student but should address marketing objectives indicated in Table 2.2: Brand awareness, engagement, sales, return on investment, and quality control.

2-20 Formulate a problem statement and research objectives for the following situations: a. Six Flags Great America is deciding whether or not to open a new location in the Midwest. b. Chipotle wants to determine whether or not to launch two new salsas. c. Sony is investigating whether it should release a new game called ―Hats and Feathers.‖ d. Lululemon is contemplating releasing a new line of athletic apparel designed for toddlers.

Responses will vary by student. The problem statement should summarize the problem succinctly. Research objectives will be based on the problem statement and should indicate exactly what information needs to be gathered and analyzed to allow managers to make decisions related to the problem. Research objectives must be very clear since they determine the methods used and the content of the measurement instrument.

2-21 Observe a business in your community. Examine what it does, what products or services it provides, how it prices and promotes its products and services, and other aspects of the business. If you managed the business, would you have conducted research to determine the firm’s products, design, features, prices, promotion, and so on? If you decide you would not have conducted marketing research in a given area, explain why.

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Responses will vary by student and type of business and will focus on the types of marketing research most applicable to that business.

1.

Explain the information state when there are information gaps.

This is the state of ―uncertainty.‖ 2.

What is needed to close information gaps?

Research objectives state specifically what information must be produced by the researcher so that the manager can choose the correct decision alternative to solve the problem. They close the gaps.

3.

What are some relevant factors in determining research objectives?

The factors are: • From whom are we going to gather information?

• What construct do we wish to measure?

• What is the unit of measurement?

• Word the information requested of the respondent in his/her frame of reference.

4.

What role do constructs play in the problem definition/research objectives process?

A construct is an abstract idea inferred from specific instances that are thought to be related. They are variables or concepts to be researched.

5.

What is an operational definition and where would it likely be used?

An operational definition defines a construct, such as intention to buy or satisfaction that describes the operations to be carried out in order for the construct to be measured empirically. It is the response scale to be used to measure the construct.

2-22 You are in charge of campus recruiting at your college or university and you wish to conduct research that will assist in boosting enrollment. Explain how you will define your problem statement. Describe how you will use each step in the marketing research process to complete your project successfully. What are three key performance indicators (KPIs) that might be used to measure your success?

Responses will vary by student. All responses should include:  Problem statement  Steps in the marketing process and how they are applied to the problem  The identification of at least three key performance indicators that might be used to measure success.

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CASE SOLUTIONS Case 2.1 Good Food Institute Case Objective This case presents students with a problem definition situation and requires them to solve it.

Answers to Case Questions 1. Visit GFI’s website (https://www.gfi.org). Identify three symptoms that indicate that GFI may have a problem. (Don’t forget that a problem can also represent an opportunity.)

Responses will vary based on which symptoms students identify.

2. Select one problem that GFI is facing (there are multiple problems) and develop a problem statement based on it.

Based on the problem students identified, a problem statement should be created.

The problem statement is a concise description of the problem or opportunity that management is facing that requires research to make a decision.

3. Write several research objectives that stem from the problem statement you created.

Student responses will vary. A problem occurs when there is a gap between what was supposed to happen and what did happen—in other words, management has failed to meet an objective. Marketing managers often formally identify key performance indicators (KPIs), or measures that provide scores of how well a company is performing relative to its objectives.

4. What questions would you like to ask GFI representatives to help clarify your problem statement?

Responses will vary by student.

CHAPTER 3 RESEARCH DESIGN Copyright © 2026 Pearson Education, Inc.

LEARNING OBJECTIVES In this chapter you will learn: 3.1 What research design is and why it is important 3.2 Compare three major types of research design: exploratory, descriptive, and causal 3.3 Analyze how exploratory research design helps the researcher gain understanding of a problem

3.4 Outline the fundamental questions addressed by descriptive research and the different types of descr 3.5 Explain what is meant by causal research and the different types of experimental research design 3.6 Distinguish the different types of test marketing CHAPTER OUTLINE Research Design Three Types of Research Designs Exploratory Research 

Uses of Exploratory Research o Gain Background Information o Define Terms o Clarify Problems and Hypotheses o Establish Research Priorities



Methods of Conducting Exploratory Research o Secondary Data Analysis o Experience Surveys o Case Analysis o Focus Groups

Descriptive Research 

Classification of Descriptive Research Studies

Causal Research 

Experiments Copyright © 2026 Pearson Education, Inc.



Experimental Design o Before-After Testing o A/B Testing



How Valid Are Experiments?



Types of Experiments

Test Marketing 

Types of Test Markets o Standard Test Markets o Controlled Test Markets o Simulated Test Markets



Pros and Cons of Test Marketing

KEY TERMS A/B testing Behavioral economics

Before-after testing Brand-switching studies

Case analysis

Causal research

Causality

Continuous panels

Control group

Controlled test markets

Cross-sectional studies

Dependent variables

Descriptive research

Discontinuous panels

Experience surveys

Experiment

Experimental design

Experimental group

Exploratory research Extraneous variables Independent variables

External validity Field experiments Internal validity Copyright © 2026 Pearson Education, Inc.

Key-informant technique

Laboratory experiments

Longitudinal studies

Market-tracking studies

Omnibus panels

Panels

Posttest

Pretest

Research design

Sample surveys

Simulated test markets

Standard test market

Test marketing

User experience (UX) survey

Virtual test markets

TEACHING SUGGESTIONS 1. (The following will require giving an assignment to students and having them bring their findings to class.) Although students have not been fully exposed to exploratory research methods, they can perform three of them to some extent. Divide the class up into three groups and assign each group one of the following types of exploratory research: (1) secondary data analysis, (2) experience surveys, and (3) case analysis.

Here are some possible “assignment” situations. It is necessary to keep the situations local. 

The university is experiencing a decline (increase) in enrollment and wonders why.

(Chose “decline” or “increase” to fit the situation of your institution. Alternatively, consider using a particular major or a college as it suits your situation and students’ abilities.)



The university bookstore is considering going to an “all rent” policy for textbooks.

(Some universities have this policy in place. Note: the experience survey will pertain to students’ and instructors’ experiences with buying and selling back textbooks.)



The director of your “student life” office is concerned about the high use and possible abuse of credit cards by college students. Under consideration is a self-help program for students to learn about credit card abuse and money management.

Have the groups present their findings and use class discussion to generate hypotheses.

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2. Illustrate the result of a cross-sectional descriptive study by presenting findings from such a study to the class. If you have used team projects in the past, you have many from which to pick. Alternatively, you may use a consulting report, or even the descriptive findings from an academic study may suffice. Use the tables and figures to illustrate the descriptive nature of the findings. For instance, show how the demographic profile describes the sample. If there is product use information, use it to show how it describes the types of product usage.

3. Some students may not readily understand the value of a longitudinal panel. An analogy is that a cross-sectional survey is like a snapshot; whereas a longitudinal panel is like a video.

4. A tangential discussion can be generated by asking students the implications of attrition with an omnibus panel versus a longitudinal panel. In the former case, the lost panel member can be replaced with someone whose profile is identical or very similar. That is, if a female elderly sole survivor living on the West Coast drops out, you would replace her with an elderly sole survivor who lives on the West Coast. However, with a drop out in a longitudinal panel, the string of observations over time is broken, so attrition is a much more serious problem.

5. You can have fun with causality because humans have the inborn tendency to make causal attributions without using good experimental design. Here are some examples. 

It has been documented that human births increase as stork populations grow, so storks bring babies. (Actually, rain causes crops to grow, so agrarian people expand their families, while water affords more protection for stork nests, so more storks are sighted.)



Lizards sometimes jump out of fires, so medieval people believed that lizards were created by fire. (Actually, lizards jump out of logs when lit on fire, because they hide in logs and the fire forces them to leave their hiding places.)



The sun revolves around the earth because one can see it rising and setting. It was believed for centuries that the sun revolved around the earth because of the fallacious assumption that the earth stood still. (In truth, the sun’s gravity causes the earth to revolve around it while the earth spins on its axis.)

6. The descriptions of internal and external validity in the chapter do not utilize terms used in more comprehensive treatments. For internal validity, the terms are history, maturation, instrumentation, pretest effect, equivalence, and mortality, while for external validity, they are sample representativeness, artificiality, and generalizability.

Some instructors may want to introduce these terms to students when reviewing the two types of validity.

7. The two experimental designs without control groups can be used to illustrate the role of a control group. The after-only and one-group, before-after designs suffer from Copyright © 2026 Pearson Education, Inc.

internal validity problems, namely extraneous effects and changes in subjects in both cases, and measure error and subjects guessing for the before-after design. The way to overcome these problems is to let them happen to both the experimental and the control group. That is, you must have a control group to “capture” the internal validity problem, and then subtract it out. The description of the before-after with control group and the causal statement formula where E = (O2 − O1) − (O4 − O3) shows how the control groups O3 and O4 do the subtracting out.

8. There are three types of test markets described: standard, controlled, and simulated.

Ask students who uses each type and why. One factor is the distribution system of the company wishing a test market; another is the type of product being tested; a third factor is the type of information desired. 

Standard test markets fit companies with fully developed distribution systems that are marketing convenience goods such as grocery products, personal care items, or over-the-counter drugs. This is a “do-it-yourself” approach with the information need being primarily to track the test product’s sales.



Controlled test markets fit companies without fully developed distribution systems.

The test-market company establishes the retail structure during the test.

Convenience goods marketers are a good fit. There is more competitive sales information available because all brands are tracked, so the information needs are more specific to what brand is gaining or losing during the test.



The simulated test market is suited to a new product where the innovation is tried and the repurchase rate estimated by mathematical model. The distribution system may be nonexistent, or the cost of other marketing variables needed in the test (e.g., training salespeople to demonstrate it, or a large-scale educational advertising campaign) may be prohibitive. There is an implicit evaluative process and adoption decision on the part of the consumer, and its outcome is the primary information need.

9. Principles of marketing textbooks sometimes list 10 to 20+ U.S. test-market cities. One exercise is to take these listings over the past 10 years and see which cities have been added or deleted from the lists. If one of these is known to students due to its proximity to the university, students may be able to comment on why it was dropped or added.

10. The representativeness issue is paramount in selecting a test market city. Although the cities cited in some textbooks (Tulsa, Oklahoma; Charleston, West Virginia; Lexington-Fayette, Kentucky; Wichita, Kansas; Rockford, Illinois; Omaha, Nebraska; and Midland, Texas) are well known for being similar, in many respects, to the ―average U.S. city,‖ they do not fit the target market definitions of all marketers. Ask students to indicate products, services, or brands whose target markets are not ―average Americans‖ and who would be ill-advised to Copyright © 2026 Pearson Education, Inc.

use these cities in their market tests. Here are some examples of product markets that do not comprise average Americans: In-line skates

Fly fishing equipment

Jazz music CDs

White water rafting adventures

Your students can probably generate a much better list of nonqualifiers.

ACTIVE LEARNING EXCERCISES Use SecondaryData.com to Access Tools to Conduct Secondary Research The website https://www.decisionanalyst.com/ is an excellent resource for tools related to conducting secondary research. Developed by Decision Analyst, Inc., the website has a number of sections, including Marketing, Marketing Research, Free Software for Statistics and Research, Statistics Resources and Information, and Tutorials.

In the search box on the upper right type in “Megatrends” and then read the article “Not Just For Scholars & Economists 6 Global Shifts That Will Impact Your Business,”

by Felicia Rogers. Identify these six trends and think about how they could affect marketing research, depending on your research objectives. Is this information important for marketing decisions? Of course! The entire website is well worth exploring.

This exercise is intended to test our assumptions about markets and to expose students to a variety of marketing research tools available online. As a class, have students discuss some of their favorite companies or brands, and discuss what type of marketing research should be conducted best identify target markets and test-market regions. After identifying products that have regional use, discuss how https://www.decisionanalyst.com/ can be used use to learn more about the aspects of the industries and how those relate to the organization or brand they have identified.

It would also be interesting to have students discuss other types of research they can conduct using secondary data and when primary data research might be the more appropriate research to do.

Omnibus Surveys Let’s learn more about omnibus surveys! Go to www.greenbook.org. At the top left, locate “GreenBook Directory.” Under “Research Services,” select the drop-down menu, and then scroll down and click “Omnibus Surveys.” Besides “consumers,” what other types of samples may be Copyright © 2026 Pearson Education, Inc.

accessed using omnibus surveys? Go to some of the firms and read what they have to say about omnibus surveys. How long does it take them to get results back to clients?

Omnibus surveys are used with dissentious panels and the questions are varied from one panel measurement to the next. They are used for a variety of purposes and can be demographically matched to some larger entity, implying representativeness. Student discussion can center around the types of information generated by these surveys and how marketers can use this information when identifying and developing a target market.

Learn How to Conduct A/B Testing Go to the website: https://www.mida.so/features/ab-testing. This site provides free support for users who want to experiment with their own web pages through A/B testing. There are numerous other sites that provide free A/B testing that you can use. Identify at least two more of these sites. Do some have better documentation than others? Create a table listing the pros and cons of each website and A/B testing tool.

ANSWERS TO END-OF-CHAPTER QUESTIONS 3-1.

What is research design, and how does it serve as a master plan for a research project?

Research design is a set of advance decisions that makes up the master plan specifying the methods and procedures for collecting and analyzing the needed information.

3-2. Explain why it is important for marketing researchers to be knowledgeable about research design.

Almost every research problem is unique in some way or another, and care must be taken to select the most appropriate set of approaches for the unique problem and research objectives at hand.

3-3. What are the uses of exploratory research? List and explain three situations in which exploratory research would be a good choice.

Exploratory research is unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. It is usually conducted when the researcher does not know much about the problem and needs additional information or desires new or more recent information. The purposes of exploratory research are to (1) gain background information, (2) define terms, (3) clarify problems and hypotheses, and (4) establish research priorities.

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Any number of examples exists. The types described in the chapter are: (1) secondary data analysis, (2) experience surveys, (3) case analysis, (4) focus groups, and (5) projective techniques.

For class discussion, ask students what types of exploratory research they would undertake if they were managers of a food service center on campus, and the school newspaper just published a blistering editorial on the poor quality of food and service in their unit. Some exploratory research methods include: Research method

Example

Secondary data analysis

Reading about college food service ―success stories.‖

Experience surveys

Discussing the matter with student leaders.

Asking the newspaper editor for more information.

Asking cashiers what comments students have made to them.

Case analysis

Observing what students do and do not eat in the food service center.

Focus group

Inviting students to participate in an open meeting on how the food service can do better.

Projective techniques

Giving students a sheet of paper and asking them to complete the statement, “This food service center would be a better place if....”

3-4. What are the methods used for conducting exploratory research? Briefly describe each method mentioned in the text.

Some commonly used methods for conducting exploratory research: secondary data analysis, experience surveys, and case analysis.

Secondary data analysis: The process of searching for and interpreting existing information relevant to the research topic is called secondary data analysis. Analyzing secondary data is almost always an important part of a marketing research project.

Secondary information is widespread and readily available.

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Experience surveys: Experience surveys refer to gathering information from individuals thought to be knowledgeable on the issues relevant to the research problem. This technique is also known as the key-informant technique.

Case analysis: Case analysis refers to a review of available information about one or more former situations to gain understanding of a current research problem with similar characteristics.

3-5. What is the difference between longitudinal studies and cross-sectional studies in descriptive research?

By definition, cross-sectional studies measure a population at only one point in time, while longitudinal studies repeatedly measure the same population over a period of time. One might make the analogy that a cross-sectional study is a snapshot and a longitudinal study is a video.

3-6. In what situation would a continuous panel be more suitable than a discontinuous panel? In what situation would a discontinuous panel be more suitable than a continuous panel?

Continuous panels ask panel members the same questions on each panel measurement.

Discontinuous panels vary questions from one panel measurement to the next. Unlike the continuous panel, discontinuous panels may be used for a variety of purposes because the information collected by a discontinuous panel varies from one panel measurement to the next. Continuous panels are noted in the chapter as suited to brand-switching and market-tracking studies, while discontinuous panels are of the “snapshot” variety. That is, comparisons are made between groups (say MasterCard owners versus Discover Card owners) existing within the entire discontinuous panel.

3-7. What is another name for discontinuous panels? What is the primary use for this type of panel?

Discontinuous panels, sometimes referred to as omnibus (“including or covering many things or classes”) panels may be used for a variety of purposes, and the information collected by a discontinuous panel varies from one panel measurement to the next. Essentially, the discontinuous panel’s primary usefulness is that it represents a large group—people, stores, or some other entity that is agreeable to providing marketing research information.

3-8. Nabisco has introduced a new brand of cookies and wants to know how many of their customers purchase their cookies more than once. What type of research should they use?

Nabisco should use a continuous panel for research. Usually, firms are interested in using data from continuous panels because they can gain insights into changes in Copyright © 2026 Pearson Education, Inc.

consumers’ attitudes and behaviors. For example, data from continuous panels can show how members of the panel switch brands from one time period to the next.

Studies examining the extent to which consumers are loyal to one brand versus buying different brands are known as brand-switching studies. Such studies can be invaluable to brand managers because cross-sectional studies that show changes in market shares between several brands can be misleading.

3-9. How can principles of behavioral economics be applied to understand consumer decisions?

Behavioral economics integrates insights from psychology and economics to understand how consumers make decisions, often revealing hidden biases and emotional influences that traditional economic models might overlook. Here are some ways behavioral economics can be applied to understand consumer decisions: 1. Framing: The way information is presented can significantly impact consumer choices.

2. Scarcity: Consumers tend to assign greater value to items perceived as limited or scarce.

3. Anchoring: Providing a reference point, such as the usual price of a product, helps consumers gauge the value of an offer.

4. Loss Aversion: People are motivated to avoid losses more than to achieve gains.

By applying these principles, marketers can design strategies that align with the actual decision-making processes of consumers, leading to more effective campaigns and better consumer engagement.

3-10.

Define each of the following types of variables and give an example of each in an experiment designed to determine the effects of an advertising campaign: independent, dependent, extraneous, control group, and experimental group.

Independent variables are those that the researcher can control and wishes to manipulate. Some independent variables include level of advertising expenditure, type of advertising appeal (humor, prestige), display location, method of compensating salespersons, price, and type of product.

Dependent variables are variables over which we have little or no direct control, yet we have a strong interest in them. We cannot change these variables in the same way we can change independent variables.

Extraneous variables are those that may have some effect on a dependent variable but yet are not independent variables.

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3-11.

Explain the two types of validity in experimentation. Explain why different types of experiments are better suited for addressing one type of validity versus another.

An experiment is valid if (a) the observed change in the dependent variable is, in fact, due to the independent variable, and (b) if the results of the experiment apply to the “real world,” outside the experimental setting. Two forms of validity are used to assess the validity of an experiment: internal and external. Internal validity is concerned with the extent to which the change in the dependent variable was actually due to the independent variable. External validity refers to the extent that the relationship observed between the independent and dependent variable during the experiment is generalizable to the “real world.”

We distinguished between laboratory and field experiments. Laboratory experiments are those in which the independent variable is manipulated, and measures of the dependent variable are taken in a contrived, artificial setting for the purpose of controlling the many possible extraneous variables that may affect the dependent variable. Lab experiments are better suited for addressing internal validity. Field experiments are those in which the independent variables are manipulated, and the measurements of the dependent variable are made on test units in their natural setting.

Field experiments are better suited for addressing external validity.

3-12.

What is the primary use of A/B testing? What advantages and disadvantages does this test have?

A/B testing is testing two alternatives (A and B) simultaneously to see which one performs better. Note that while these types of experiments are generally called A/B testing, more than two alternatives might be tested (A/B/n testing). Often organizations use A/B testing to determine which of two or more alternatives involved in marketing a product is better, such as two pricing levels, two types of packaging, or two different brand names.

Because of its accuracy, speed, and low cost, A/B testing is used on an ongoing basis by many web-based companies to test ideas. Stephen-Davidowitz notes a dark side to the proliferation of A/B testing. Through experimentation, website managers can determine exactly what design characteristics—headlines, fonts, emails, links—can attract users to return to their websites more frequently and stay longer. This may lead to some users spending increasingly lengthy amounts of times interacting with social media websites or playing online games. In other words, online experimentation may play an important role in fostering Internet addiction.

3-13.

Imagine you are a marketing manager for an e-commerce company that sells clothing online. Your team has developed two variations of the product page layout (A and B).

What specific metrics would you use to measure the success of each variation?

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A/B testing is testing two alternatives (A and B) simultaneously to see which one performs better. Note that while these types of experiments are generally called A/B testing, more than two alternatives might be tested (A/B/n testing). Often organizations use A/B testing to determine which of two or more alternatives involved in marketing a product is better, such as two pricing levels, two types of packaging, or two different brand names.

To conduct an A/B test on banner ad placements, you can place two identical banner ads in two different places on the Internet and determine which ad receives the most clicks.

Google Optimize provides free support for users who want to experiment with their own web pages through A/B testing. A search for “Google Optimize” and “A/B Testing” will bring you to a page that explains how to conduct A/B testing. What is the first step to creating an experiment? How long does Google recommend that an experiment run?

What measures will Google Optimize provide to determine the results of the experiment?

3-14. Explain the two types of validity in experimentation. What types of experiments are best suited to address each?

Internal validity is the extent to which a researcher can be certain that a change in the dependent variable is actually due to the independent variable. This is another way of asking if the proper experimental design was used and if it was implemented correctly.

Laboratory experiments are best when measuring internal validity because laboratory experiments are those in which one or more independent variables are manipulated, and measures of the dependent variable are taken in a contrived, artificial setting for the purpose of controlling all extraneous variables that may affect the dependent variable.

External validity refers to the extent that the relationship observed between the independent and dependent variables during the experiment is generalizable to the “real world.” Field experiments are best suited for measuring external validity because field experiments are those in which the independent variables are manipulated and the measurements of the dependent variable are made on test units in their natural setting.

3-15.

Provide a list of pros and cons of test marketing.

The advantages of test marketing are straightforward. Testing product acceptance and marketing-mix variables in a field setting provides the best information possible to the decision maker prior to actually going into full-scale marketing of the product. Test marketing allows for the most accurate method of forecasting future sales, and it allows firms the opportunity to pretest marketing-mix variables. On the downside, first, test markets do not yield infallible results. Second, competitors may intentionally try to Copyright © 2026 Pearson Education, Inc.

sabotage test markets. For example, firms may flood a test market with sales promotions if they know a competitor is test-marketing a product. Another problem with test markets is their cost. The costs of test markets involving several test cities and various forms of promotion can be extremely expensive. Third, test markets bring about exposure of the product to the competition. Competitors get the opportunity to examine product prototypes and to see the planned marketing strategy for the new product via the test market.

Finally, test markets may create ethical problems. Companies routinely report testmarketing results to the press, which allows them access to premarket publicity. But are negatives found in the test market always reported, or do we hear only the good news? Companies eager to get good publicity may select test-market areas that they feel will return favorable results. Perhaps the company already has a strong brand and market power in the market. Is this method of getting publicity ethical? There have been efforts to make reporting of test markets more candid.

3-16. Explain the characteristics and advantages of standard, controlled, and simulated test markets.

The standard test market is one in which the firm tests the product or marketing-mix variables through the company’s normal distribution channels. These markets are generally chosen to be representative of the target audience for the product or campaign. Disadvantages of this type of test market are that they are expensive and time-consuming to develop. In addition, competitors are immediately aware of the new product or service. However, standard test markets are good indicators of how the product will actually perform because they are conducted in real settings.

Controlled test markets are conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

Companies specializing in providing this service provide dollar incentives for distributors to provide them with guaranteed shelf space. Controlled test markets offer an alternative to the company that wishes to gain fast access to a distribution system set up for test-market purposes. The disadvantage is that this distribution network may or may not properly represent the firm’s actual distribution system.

Simulated test markets are those in which companies test new products in a staged environment that mimics natural conditions. The purpose of simulated test markets is to gauge consumers’ reactions to new products, along with associated elements of the marketing mix. The data on consumer response to new products in simulated test markets can be used to create a model that predicts product sales volume. Simulated test markets yield results much faster than standard test markets, and are considerably less expensive to conduct research in. In addition, simulated test markets are confidential, so competitors are less likely to learn about new product tests. Because simulated test markets are highly controlled, there is less potential for interference from extraneous variables. The primary disadvantage of simulated test markets is that Copyright © 2026 Pearson Education, Inc.

the artificial conditions of a simulated test may not provide results that are as accurate as a standard test market.

3-17. Think of a past job that you have held. List three areas in which you, or some other person in the organization, could have benefited from having information generated by research. What would be the most appropriate research design for each of the three areas of research you have listed?

The purpose of this question is to have students relate research design to something with which they are familiar. Students’ work experiences will vary greatly and may prove interesting as a basis for class discussion.

3-18. Can you identify research problems that might be addressed through a search of social media websites? What type of research design would you recommend for these problems?

Responses will vary by student as they identify a type of research problem and how they used social media to conduct the research.

3-19.

Design an experiment. Select an independent variable and a dependent variable. What are some possible extraneous variables that may cause problems? Explain how you would control for the effects these variables may have on your dependent variable. Is your experiment a valid one?

Responses will vary by student. Students might use Google Optimize to build their experiment if they can run the experiment for at least two weeks.

The purpose is to have students apply an experimental design and thus pick out independent, dependent, and extraneous variables as well as assess the internal and external validity of the experiment. Class discussion can be generated by having a student “present” his or her design to the class.

3-20. Wired Beverages has developed two new sodas that they are debating putting on the market. However, they will only be able to release one of them. Develop an experiment design that compares the taste of the two new sodas with each other, and with the leading competitor in the market. List the steps of your experiment. How will you ultimately choose the proper soda to release, if any?

A taste test is an experiment, so students must demonstrate comprehension of experimental design concepts.

There is no need to perform a pretest as there is no baseline to taste tests. Max-Gaff is to be compared to the leading brands, A and B (Maxwell House and Folger’s, for instance). With a taste test, the design can be within subjects or across subjects. For the within design, the same subject tastes all three coffees and rates the taste of each. Typically, a neutral stimulus such as a soda cracker or a drink of water is administered between the randomly ordered stimuli. The panel design would look like the following: X1 O1 N X2 O2 N X3 O3

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Where the Xis are the randomly ordered stimuli, the Ois are the measurements, and the Ns are the neutralizers.

With an across subjects design, three groups are used, each with its own stimulus. Subjects are assigned randomly to each group, and the after-only design diagram looks like this: X1 X2 X3

O1 O2 O3

No control group is used as it does not make sense to have subjects rate the strength of a nonstimulus.

Internal validity is addressed in the following ways. 

Extraneous factors—eliminated if the panel design is random and if the three groups take place in the same circumstances and time frame



Changes in subjects—obviated by the neutral stimulus in the panel and the short time frame in the threegroup design



Measure error—use the same measure



Subjects guessing—could happen but will be random and cancel out



Equivalent groups—use random selection or matching criteria



Drop-out—should be monitored

External validity is an issue as the taste test is conducted in an artificial setting (perhaps at a shopping mall or some other facility), and the subjects are told that they are to rate the taste which means that they will be especially vigilant to the taste. Also, the long-term taste aspects of the coffees are not tested, so if Max-Gaff ―stays with‖ the taster, this factor is not captured by the design. Of course, the sample should be representative of coffee drinkers.

3-21.You are the social media manager for a trendy beverage company launching a new line of exotic fruit-flavored drinks. To determine the most engaging content strategy for the brand’s Instagram account, you decide to conduct an A/B test.

Design a creative A/B testing experiment to compare two different approaches in your social media posts—one emphasizing vibrant visuals and the other focusing on witty and humorous captions. Outline the steps you will use to conduct the project and how you will decide what recommendations to present to the beverage company managers.

Students have been asked to conduct a search of secondary data from social media as a form of exploratory research. Steps in the research would include: 1. Developing a problem definition and research objectives 2. Identifying key search terms 3. Identifying social media data sources 4. Organizing the data 5. Data analysis 6. Presenting the findings 7. Outlining limitations

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8.

Strategizing

3-22.

Coca-Cola markets PowerAde as a sports drink that competes with Gatorade. Competition for sports drinks is fierce where they are sold in the coolers of convenience stores. Coca-Cola is thinking about using a special holder that fits in a standard cooler but moves PowerAde to eye level and makes it more conspicuous than Gatorade. Design an experiment that determines whether the special holder increases the sales of PowerAde in convenience stores. Identify and diagram your experiment.

Indicate how the experiment is to be conducted and assess the internal and external validity of your experiment.

There is one treatment (the cooler holder for PowerAde) and one control situation (the current stocking of PowerAde without the cooler holder). A before-after with control group or an after-only with control group design would be satisfactory. The after-only with control group design looks like the following: X1

O1 O2

The groups are randomly assigned convenience stores such as Circle Ks or 7-11s, and the Os are store sales, and the effect of the PowerAde cooler holder is O1:O2, and if the cooler holder average PowerAde sales are greater than the control group average PowerAde sales, the experiment has shown that the cooler holder has caused the greater sales.

Internal validity is addressed in the following ways:  

Extraneous factors—eliminated groups take place in the same circumstances and time frame Changes in subjects—if groups are matched or random, changes will be the same for all



Measure error—use the same measure—sales of PowerAde



Subjects guessing—no pretest, so no problem



Equivalent groups—use random selection or matching criteria



Drop-out—probably no problem, but should be monitored

External validity is taken care of if the groups are representative of all convenience stores.

The test is realistic and generalizable.

3-23. FitTrack Innovations is a fitness tracker company aiming to optimize its mobile app

user experience. FitTrack has collaborated with a smartphone manufacturer and a popular gym chain for a comprehensive A/B testing initiative. The smartphone manufacturer will push app updates to users’ devices, allowing FitTrack to test variations of the app simultaneously. Additionally, the gym chain will provide access to members’ workout data, which FitTrack can analyze to understand user engagement patterns. FitTrack offers its users exclusive benefits and rewards, such as personalized workout plans, based on their participation in the A/B testing. Approximately 30% of users have opted in to share their workout data and participate in the testing in exchange for bonus points redeemable for fitness-related products. Identify and diagram an experimental design using the FitTrack system. Assess the internal and external validity of FitTrack’s system.

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A/B testing involves evaluating two alternatives (A and B) simultaneously to see which one performs better. Note that while these types of experiments are generally called A/B testing, more than two alternatives might be tested(A/B/n testing). Often organizations use A/B testing to determine which of two or more alternatives involved in marketing a product is better, such as two pricing levels, two types of packaging, or two different brand names.

While A/B testing can be used to directly compare many types of marketing scenarios, the term is most frequently used to describe conducting an experiment on a website or an app.

Online experiments can often be conducted faster and less expensively than offline experiments. Online experiments are easy to design to incorporate random and adequately sized samples. A/B testing is frequently used to test page designs, headlines, ad copy, product descriptions, photos, and many other variations related to the design of websites.

Website traffic can be split between design A and design B, with an important measure, such as clicks, sales, or repeat visitors, compared between the two websites to determine which design is superior.

A/B testing will allow FitTrack to test variations of the app simultaneously. Additionally, the gym chain will provide access to members’ workout data, which FitTrack can analyze to understand user engagement patterns.

Internal validity in an experimental study is the extent to which the researcher is certain that a change in a dependent variable is actually due to the independent variable. All internal validity problems are under control assuming that groups are equivalent, drop-outs are replaced, app ads are seen at the same time, gyms remain constant, etc. The external validity may concern some students who will point out the artificiality of the exclusive user benefits and rewards, such as personalized workout plans,

based on their participation in the A/B testing. Will this generate results that are applicable to the general population?

CASE SOLUTIONS Case 3.1 Skye’s First Day at Atkin Consumer Insights Case Objective This case presents students with three different situations where Skye must determine the appropriate research design and justify her selection. .

The answers are provided in the table below.

Client Case 1A: Exploring

Research Design Reason(s) Exploratory Since there is a need to understand Copyright © 2026 Pearson Education, Inc.

the Plant-Based Trend

research

Case 1B: Understanding Functional Beverage Preferences

Descriptive research

Case 1C : Testing the Effect of Sustainable Packaging

Causal research

consumer preferences in this space, and since there is not a clear idea of what the exact problem is, exploratory research would be best for Case 1A. Here, the client wants to determine consumer preferences for the functional benefits of their product. These questions of who, what, where, when, why, and how are best answered by descriptive research.

The client in Case 1C wants to determine what factors of sustainable package design cause an increase in awareness, preference for, price consumers will pay, and intention to buy the brand. These are causal relationships, and therefore best investigated by causal research.

Case 3.2 Analysis of Coffee Segments with NielsenIQ Panel Data Case Objective This case presents students with alternatives for a marketing campaign designed to attract coffee drinkers.

Answers to Case Questions Andresa Drake is a research analyst for McConnell’s Supermarket, a large supermarket chain located in the Southeast United States. (Note: The supermarket’s name and other details have been disguised.) Andresa has been assigned to examine the category of coffee for McConnell’s and determine what segments the supermarket should target for an upcoming marketing campaign. Specifically, Andresa is interested in who drinks the four major types of coffee: coffee pods, gourmet, ground, and organic. To help with this decision, Andresa has access to panel data from NielsenIQ, a large marketing research company.

Answer the following questions, using the data from the tables and graphs provided by NielsenIQ that display information about the purchase of coffee at McConnell’s Supermarket for the last 12 months.

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1. Table A and Table B have information about the occupation of consumers in the area that McConnell’s serves. Table A shows the information for the whole category of coffee (total coffee). Table B shows the information for the category of organic coffee.

1a. What conclusions can you draw about the people who live within the retailer area, shop at McConnell’s, and purchase coffee from Table A and Table B? Why are the columns “% of Population in the Retail Area” and “% of Population that Shop at McConnell’s” the same in Table A and Table B? There are several conclusions that can be drawn from Table A and Table B. Both tables indicate that the largest purchases of coffee are those who are not in the workforce, perhaps retired or stay-at-home parents. After that segment, more professional/managerial workers buy coffee than any other segment.

1b. What conclusions can you draw about the occupation of the head of household for people that shop for coffee (all coffee) versus organic coffee?

Based on information presented in Tables A and B, it appears that professional/managerial heads of household prefer organic coffee. Those who are not in the workforce prefer to buy coffee that is not organic.

1c. Based on occupation, what consumer should McConnell’s target to reposition the coffee category?

When marketing organic coffee, the best target markets are the professional/managerial heads of household. When marketing coffee in general, those who are not in the workforce are good target markets. Blue-collar workers and professional/managerial employees have a close percentage and should also be marketed to.

Table A: Total Coffee Drinkers by Occupation Head of Household Occupation Professional / Managerial White Collar—Clerical / Sales Blue Collar Not in Work Force Grand Total

% of Population in the Retail Area 28.9 10.8 25.8 34.5 100.0

% of Population That Shop at McConnell’s 30.2 11.1 26.4 32.4 100.0

% of Population That Purchase Coffee 28.6 10.4 27.4 33.6 100.0

% of Population That Shop at McConnell’s 30.2 11.1 26.4

% of Population That Purchase Organic Coffee 40.0 7.6 26.7

Table B: Organic Coffee Drinkers by Occupation

Head of Household Occupation Professional / Managerial White Collar—Clerical / Sales Blue Collar

% of Population in the Retail Area 28.9 10.8 25.8

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Not in Work Force Grand Total

34.5 100.0

32.4 100.0

25.6 100.0

2. Graph A and Graph B have information about the age of consumers in the area that McConnell’s serves. Graph A shows the information for the whole category of coffee (total coffee). Graph B shows the information for the category of organic coffee.

2a. If McConnell’s were to build a marketing campaign based on all coffee drinkers, which female age group would they want to target?

McConnell’s would want to target female coffee drinkers between the ages 45 to 54.

Those who prefer organic and nonorganic coffee make the largest segment based on gender. McConnell’s should also consider launching a marketing campaign for women between the ages 55–64. While these women tend to drink less organic coffee, they still make the largest segment in the nonorganic category.

2b. Would the answer change if McConnell’s wanted to target the organic coffee shopper? If so, why?

Graph A. % of $ Spent on Total Coffee by Females at McConnell’s by Age Graph B. % of $ Spend on Organic Coffee by Females at McConnell’s by Age 3. Table C has information about the types of coffee purchased by “Plain Rural Living” people. McConnell’s coffee category sales have been declining for the past 52 weeks, and the retailer is considering changing the coffee aisle in its stores. Through secondary research, Andresa learns that the majority of shoppers fall into the “Plain Rural Living” lifestyle category. Knowing that sales are declining, what type of coffee is McConnell’s likely stocking too much of? What changes should be made to the types of coffee offered at McConnell’s based on the following information?

Based on the survey of Plain Rural Living people, Andresa should stock ground coffee.

Table C. % of Plain Rural Living People That Purchase Coffee Types

Lifestyle Plain Rural Living Coffee Pods Gourmet Coffee Ground Coffee Organic Coffee

% of Population % of Population % of Population in That Shop at That Purchase Retail Area McConnell’s Category 89.4 85.5 84.6 17.9 17.1 16.7 17.9 17.1 15.8 17.9 17.1 21.7 17.9 17.1 11.5

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Total Coffee

17.9

17.1

18.8

CHAPTER 4 SECONDARY DATA LEARNING OBJECTIVES In this chapter you will learn: 4.1 Analyze the opportunities and challenges of big data 4.2 Distinguish between primary and secondary data 4.3 Evaluate the advantages and disadvantages of secondary data 4.4 Apply techniques for assessing the quality and reliability of secondary data 4.5 Differentiate between internal and external data sources for big data analysis 4.6 Identify the types and uses of published sources and official data in big data research 4.7 Explain the types and uses of syndicated data to gain research insights 4.8 Describe the different types and applications of digital data in big data environments 4.9 Discuss the ethical considerations involved in managing big data CHAPTER OUTLINE Big Data Primary versus Secondary Data Advantages and Disadvantages of Secondary Data  Advantages of Secondary Data 

Disadvantages of Secondary Data o Incompatible Reporting Units o Mismatched Measurement Units o Unusable Class Definitions o Outdated Data o Lack of Information to Assess Data Credibility

Evaluating Secondary Data  What was the Purpose of the Study?

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

Who Collected the Information?



What Information was Collected?



How was the Information Obtained?



How Consistent Is the Information with Other Information?

Classification of Secondary Data  Internal Secondary Data 

External Secondary Data

Published Sources and Official Data  Published Sources 

Official Data

Syndicated Data  Measuring Consumer Attitudes And Opinions 

Identifying Segments



Monitoring Media Usage and Promotion Effectiveness



Tracking Sales



Advantages and Disadvantages of Syndicated Data

Digital Data  Digital Tracking Data 

Social Media Data Types of Social Media Information o Reviews o Tips o New Uses o Competitor News



Advantages and Disadvantages of Social Media Data



Tools to Monitor Social Media

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Internet of Things Big Data and Ethics KEY TERMS Big Data

Cookie

Customer relationship management (CRM)

Database

Device ID

External data

First-party data

Geodemographics

Geolocation data

Internal databases

Internal secondary data

Internet of Things (IoT)

Marketing analytics

Micromarketing

Official data

Open Data Policy

Passive data

Point-of-sale (POS) data

Primary data

Published sources

Record

Secondary data

Sentiment

Social media data

Social media listening

Social media monitoring

Syndicated data

User-generated content (UGC)

Wearable technology

Wearables

TEACHING SUGGESTIONS Students have University library staff members who are invaluable in orienting students on how to use secondary sources. Contact the business reference librarian and arrange for an orientation session on the use of business databases and other online resources of secondary data.

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Large companies typically have library and secondary data specialists on staff. If you have a local contact, invite the company librarian or secondary information specialist to class to describe the secondary sources used by the company’s employees. This person can also be a good resource on internal secondary data. He or she may be able to describe the various types of internal databases maintained in his or her company.

Syndicated data are collected in a standard format and made available to all subscribers for a fee. Firms supplying syndicated data follow standard research formats that enable them to collect the same data over time. Discuss the types of data collected by the syndicated data services identified in this chapter (Marketing Evaluations, Inc., Nielsen Ratings service, Nielsen Audio) and identify how other companies can use this data to make marketing and other business decisions.

One way to introduce students to secondary sources is to give them an assignment that will require them to investigate various secondary sources. Here are some sample assignments to get students in the library or to compel them to use Internet sources to search for information. a. Determine population size, growth and composition for a particular county in your state. Assign different counties to various students or student teams and have them make class presentations on their findings. b. Determine how many and which states have state lotteries, gambling casinos, video poker, and riverboat gambling. c. Determine states or regions of the United States that have high or low rates of: (1) motor vehicle accidents; (2) weather damage (flooding, tornados, hurricanes, drought, and so on); (3) home value assessment; (4) multiple family dwellings; or (5) crime rates. What are the implications of these findings for insurance companies? d. Determine countries or regions in the world that are (1) particularly affluent, (2) densely populated, (3) highly industrialized, (4) largely illiterate, and/or (5) prone to deadly diseases or viruses. What are the marketing implications of these findings?

A more focused assignment would be to have each student select an industry and to search electronic databases and/or printed sources. Here is an example assignment: Instructors should pre-plan the assignment with their reference librarians for online secondary data sources and information databases to make sure the resources are available to students. e. Have students select an industry in which they have a career interest. f. List the major firms (up to 10) in the industry. Rank them in some meaningful way such as by sales volume, number of employees, or profits.

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g. Provide market share data for a selected number of firms (or product/service brands). h. Using ABI Inform or Business Source Premier, identify three articles that have been written relating to some aspects of your chosen industry in the last three years.

There are several secondary information sources for marketing identified in the chapter.

Because these websites are in constant flux, it is not possible to faithfully list their contents.

Instructors may wish to take a few minutes visiting the websites to familiarize themselves with each company’s services and products. With Internet access capability in the classroom, an instructor can visit key websites and demonstrate variety, depth, and specific examples.

Tell students that they have been hired as the corporate intelligence officer for a major garment company. They are to investigate the competition by use of secondary sources. Who are the competitors, how big are they, what are their distinguishing features, and so forth. With a large class, you may want to use several industries, or have student teams concentrate on separate competitors.

Former students are a possible source of the use of syndicated data sources. Some marketing majors take jobs as media salespersons with newspapers, television stations, cable companies, or the like. If you have a former student who is in this occupation, consider calling them and asking if they would talk to your marketing research class about how syndicated data and services are used in preparing presentations for prospective advertising clients.

Many of the syndicated services deal with social media audiences. Ask students why there is so much concern for social media audiences. Who uses the data and how? There are two groups of users: (1) media companies and (2) advertisers. The social media companies use the data to profile their markets (audiences) to see if they are reaching the people they think they are, and to compare their share with the shares of competitors. Firms can use digital tracking data to optimize websites and apps, improve the effectiveness of online advertising, and identify trends. Advertisers use the data to make media choice decisions. They want to select media with audiences that are matched to the target markets for the goods and services advertised. Also, social media salespeople use syndicated data in their sales presentations to persuade advertisers to use their medium.

This edition mentions data mining. There may be a data mining expert among your quantitative business analysis colleagues willing to talk to your class about this analysis and its uses.

ACTIVE LEARNING EXERCISES Use Next Gen Stats to View NFL Player Stats Copyright © 2026 Pearson Education, Inc.

Next Gen Stats tracks NFL players’ performance through RFID tags embedded in players’ shoulder pads and sensors placed throughout the stadium (see later section on wearables).

The website nextgenstats.nfl.com displays some of the statistics gathered through these devices. First, select the “glossary” tab to see definitions of some of the statistics that the website provides. Then, select the “Stats” tab to investigate the statistics related to players’ performance. Answer the following questions for the most recent season: 1. Which player had the fastest sack of the season? How many seconds did it take from the snap of the ball to the sack of the quarterback? 2. Which player had the fastest ball carry of the season? What was the maximum speed (in mph) that the player achieved during the play? Now select the “Charts” tab. Examine the routes of quarterbacks’ passes during the most recent game. If you are a defensive player from an opposing team, what can you learn from studying these routes?

There is a wealth of information on this site for competitors and fans. The search should allow students to learn about the opposition and how to better prepare for the next game, including planning plays to manage the defensive players and create a better offensive game. The search can also yield information about how to attract and nurture fans by providing data about teams and players.

Find Information on Marketing Research Topics on Companies’ Websites The websites of marketing research companies can be great sources of information for all types of research-related topics, such as new consumer habits or innovative technologies. The firms display this content to provide a public service, as well as to demonstrate expertise in a methodology or on an issue. To see examples of the types of information posted by marketing research firms, visit the following three websites. 1. Visit Burke at www.burke.com. Under the “BEYONDMEASURE” scroll down to see reports on topics such as industry trends and best practices in research methodology. Under “What We Do” you can look under the “Case Studies” to see the methods that Burke used for multiple different types of studies. 2. Visit Nielsen at https://www.nielsen.com/insights/.. . What is the focus of some of their recent reports? Select one and see how it applies to marketing research. 3. Visit Human8 at https://www.wearehuman8.com/?brand=gongos. Click on the “Inspiration” tab and then on the “Blog” tab to learn about Human8’s employees’ opinions on topics such as AI, big data, and data visualization.

These searches allow students to collect data on specific topics. Students should be encouraged how this type data can shape marketing activities or lead to other research.

Use data.gov to Explore U.S. Official Statistics Investigate all the free data that are collected by U.S. government agencies and are available by law due to the U.S. Open Data Policy. Go to www.data.gov. The website states on its opening page: “Here you will find data, tools, and resources to conduct research, develop web and mobile applications, design data visualizations, and more.” Note the number of topics Copyright © 2026 Pearson Education, Inc.

represented, including agriculture, business, consumer, manufacturing, and many others.

Click on “Metrics” and you can see the top ten most downloaded dataset files. Why do you think people are interested in these topics?

Identify how organizations use data provided by the government. Are students surprised at the types of data collected and shared by the government? How do students feel about having access to this information? How do students feel about the government collecting data on them specifically, and the ethical implications of having access to the data? Do their opinions change about the data when they realize this data is being collected about them specifically?

Use the American Community Survey to Examine Commuting Patterns The American Community Survey (ACS) is an example of a source of official statistics that are available for free. An offshoot of the U.S. Census, the ACS updates U.S. data on an annual basis.

To explore the ACS, let us consider a scenario where you are deciding where to test-market electric vehicles. One of the markets you are considering is Jacksonville, Florida. As part of your decision, you want to examine the commuting patterns of the residents of Jacksonville.

To use the ACS to learn about Jacksonville’s commuting patterns, conduct the following steps.

1. Go to www.census.gov and select the search icon and then click on “Advanced Data Search.”

Enter the search terms “Commuting to work Jacksonville Florida.” Select the table, “Commuting Characteristics by Sex.” What can you learn from this table about the commuting patterns of Jacksonville residents?

As marketers, does this data provide other insights? Students can also develop potential new uses for this data, for example, maybe the development of bus routes, senior services that take place during off-peak hours, the need for additional roads, etc. Data has many uses and applying the data on this website to the relationship between commuting patterns and electric vehicles is only one of many options.

Use the system1 group webpage to Explore Emotional Reactions to Advertising System1 Group is perennially named the most innovative marketing research supplier in the world by industry peers. To explore why, go to its webpage at www.system1group.com. A wealth of information is available on this website including ways to predict advertising success.

This might be an engaging way to generate class discussion about what audiences respond to and why. What types of information are available on this website? Discuss their usefulness in class.

Use Google Analytics to Track Web Activities Google Analytics is a program that is used to track activities on websites. The basic features of Google Analytics are free, with premium features offered for a price. As a platform to allow Copyright © 2026 Pearson Education, Inc.

marketers to learn how to use Google Analytics, the company provides free access to the data generated by the Google Merchandise Store website. The Google Merchandise Store sells Google-branded goods, such as t-shirts, coffee mugs, and Google Home products. To access the Google Analytics demo site, type “Google Analytics Demo Account” into a search engine. The search will take you to a web page that provides instructions on how to use the demo account.

If you don’t already have a Google account, you will need to create one to access the demo site.

The home page of the Google Analytics demo site features a dashboard that shows many interesting statistics that can be used to profile and track users of the Google Merchandise Store, such as page views, bounce rates, and number of sessions per user. If you hover your mouse over a metric name, you will be provided with the definition of the term. Note the tabs on the left of the web page. First, select the “Demographics” tab. What age group uses the Google Merchandise Store the most? What is the gender breakdown? Next, select the “Geo” tab, and then the “Location” tab. What are the top three nations from which users come?

What country has the most new users? Then, select the “Behavior” tab, followed by the “Session quality” tab. What percentage of site visitors purchased something (sessions with transactions)? What was the conversion rate? These questions represent just a small fraction of the information that Google Analytics provides. Spend some time exploring the demo website to discover the different types of measures provided by Google Analytics to understand website activities and optimize websites Discuss ways organizations can integrate segmentation data into their business model.

Many companies generate advertising targets to specific consumer preferences. A store loyalty card allows that store to send coupons to members for exactly the things they regularly purchase. Websites such as Pinterest track viewing habits and send updates to a member’s email address that ties exactly with the viewer’s interest. While many of us appreciate targeted information, a discussion about the ethics of tracking and using this data should be had.

ANSWERS TO END-OF-CHAPTER QUESTIONS 4-1. What are big data, and why do they represent both an opportunity and a challenge?

Grouped under the term big data, information is available from more sources than ever before. Big data can be defined simply as large amounts of data from multiple sources. The term big data has been popularized in recent years in response to the numerous types and huge amounts of data to which companies now have access in real time. The phrase is often used to indicate alarm and apprehension about the enormous—and multiplying—amounts of data that are being created on an ongoing basis.

The advent of big data has created great challenges for marketing researchers.

Effective use of multiple sources of data requires having the resources and talent Copyright © 2026 Pearson Education, Inc.

available to retrieve, store, integrate, analyze, and report the data. Access to big data also creates great opportunities. Proper management of big data has the potential to increase productivity for companies significantly.

4-2. You are a marketing analyst for a sports team. Propose how data analytics could be used to enhance fan engagement and increase attendance at games.

Three sources of data for sports marketing might include ticket sales, television viewership, and product sales. Information generated from big data and data analytics can be used to improve the game, attract and nurture fans, and provide data to the fans. Data analytics can help you identify potential fans and target that group.

Interactive games with product giveaways when fans attend the games will increase fan engagement.

4-3. What are secondary data, and how do they differ from primary data?

Secondary data have previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand, while primary data refers to information that is developed or gathered by the researcher specifically for the research project at hand.

4-4. Describe three uses of secondary data.

Suggested applications include economic trends forecasting, insights on industries, corporate intelligence, international data, public opinion, and historical data, among others. Data stored in electronic databases may be used for database marketing.

Companies use information recorded in internal databases for purposes of direct marketing and to strengthen relationships with customers. The latter is a process known as customer relationship management (CRM).

4-5. Describe the difference between internal and external data.

Internal secondary data are data that have been collected within the firm. Such data include sales records, purchase requisitions, and invoices. External data are obtained from sources outside the firm. These data sources may be classified as (1) published sources, (2) official statistics, and (3) data aggregators. There are different types of published secondary data, such as trade association publications, periodicals, academic journals, books, marketing research company publications, and more.

4-6. Describe the relationship between a record and a field. How would this look in a database?

A database is a collection of data and information describing items of interest. Each unit of information in a database is called a record. A record could represent a Copyright © 2026 Pearson Education, Inc.

customer, a supplier, a competitive firm, a product, an individual inventory item, and so on. Records are composed of subcomponents of information called fields.

4-7. Describe a database that would be useful to a local pizza restaurant.

A database based on geodemograhics would be useful to a local pizza restaurant as would census.gov as these would include the number of households and/or people living within a radius around the restaurant, income levels, jobs, children per household, etc. A packaged service can be used after the pizza restaurant opens to track data on each particular guest. Such a database would also include the preferences of those potential pizza eaters, such as toppings, crust style, etc.

4-8. What is meant by CRM? What are the benefits of practicing CRM? Companies use their internal databases for purposes of direct marketing and to strengthen relationships with customers, called CRM, customer relationship management. Benefits might include better identification of prospects, deciding which customers should receive a particular offer, deepening customer loyalty, the ability to reactivate customer purchases, and avoiding serious customer mistakes.

4-9. What types of companies collect first-party data? For what purposes?

First-party data refers to information that is collected directly from consumers during their interactions with a business, both online and in person. These data encompass a wealth of details, including purchase history, website browsing behavior, and even in-store interactions tracked through sensor technology. These details are collected through various tools such as website analytics platforms (e.g., Google Analytics), CRM systems (e.g., Salesforce), social media listening platforms (e.g., Brandwatch), and loyalty programs (considered a retailer’s proprietary data). First-party data aids in micromarketing strategies. Companies that want to tailor offerings to specific market segments will use this data.

4-10. You are the marketing manager for a fashion retail store. Using micromarketing strategies, propose how you would tailor promotional offers to specific customer segments based on their previous purchase history, preferences, and demographics. Consider how personalized promotions could be implemented both in-store and through digital channels.

You could implement pop-up ads one may see online after searching for a product. Instore coupons could be delivered to customer smartphones as they browse certain products. Numerous other targeted opportunities exist.

4-11. Provide an example of a current brand that uses micromarketing strategies.

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Responses will vary by student but should include a discussion about how Target collects data on every person who shops at its stores and assigns them a unique guest ID number. One example is based on identifying pregnant customers. Based on data collected, Target rates customers, and is able to identify pregnant customers before other retailers. Target then specifically sends targeted promotions to pregnant women as a micromarket.

4-12. Briefly explain the three different types of external data discussed in the chapter.  



There are three types of external secondary data: Published sources are those sources of information that are prepared for public distribution and are normally found in libraries or through a variety of other entities such as trade associations, professional organizations, or companies.

Official statistics contain information published by public organizations, including government institutions and international organizations. Official statistics are both qualitative and quantitative, and include information related to demographics, economic development, education, consumption patterns, health, education, the environment, and many other topics.

Data aggregators are services or vendors that organize and package information on focused topics. Some of these services are available free of charge, but most are available from commercial sources.

4-13. What are the advantages and disadvantages of secondary data?

The advantages of secondary data are: 1. Can be obtained quickly 2. Inexpensive related to collecting primary data 3. Secondary data are usually available for almost any application 4. Secondary data enhances primary data 5. Secondary data may be all that is needed to achieve the research objective .

The disadvantages of secondary data are: 1. Incompatible reporting units that are not suitable for the researcher’s need 2. Mismatch of the units of measurement as compared to the units needed by the researcher 3. Definitions used to classify the data that are not useful to the researcher 4. The timeliness of the secondary data, meaning it might be outdated.

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4-14. Choose a professional sport. Find a website devoted to that sport that provides data for fans. What are three types of statistics that are provided about that sport’s players?

Answers will vary based on the sport selected and then the team. For example, baseball teams and football teams will collect very different statistics about their players.

4-15. Discuss the role of government policies, such as the U.S. Open Data Policy, in making data available to the public. How has the open data movement influenced the development of profitable companies and apps?

Data collected by U.S. government agencies is available by law due to the U.S. Open Data Policy. There are a number of topics that include data, tools, and resources to conduct research, develop web and mobile applications, design data visualization, etc.

Although these data are in and of themselves interesting, the main challenge for marketing professionals is to seek out relationships among these data that provide new insights. Free public data have been combined with private data sources to produce profitable companies, including Garmin and Zillow.

4-16. What are the five questions marketing researchers should ask when evaluating secondary data?

In order to properly use secondary data, you must evaluate that information before you use it as a basis for decision making. A user must be most cautious when using an Internet source because few quality standards are applied to most Internet sites.

To determine the reliability of secondary information, marketing researchers must answer the following five questions:  What was the purpose of the study?  Who collected the information?  What information was collected?  How was the information obtained?  How consistent is the information with other information?

4-17. What is syndicated data? Give an example of a company that supplies syndicated data and describe the information it provides.

Syndicated data are a form of external secondary data that are supplied from a common database to subscribers for a service fee. Syndicated data refer to data being collected in a standard format and being made available to all subscribers.

The company and types of information it provides will vary by student.

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4-18. What are the advantages and disadvantages of syndicated data?

Advantages of syndicated data are shared costs, high quality of the data, and speed with which data are collected and made available for decision making.

Disadvantages of syndicated data are that there is little control over what data are collected, buyers must commit to long-term contracts, and competitors have access to the same information.

4-19. A beverage company is planning to launch a new energy drink. Outline how syndicated retail sales data can be used to track the performance of competing energy drinks in various regions to inform their marketing strategy.

Four major areas in which syndicated sources may be applied are measuring consumers’ attitudes and opinions, defining market segments, monitoring media usage and promotion effectiveness, and conducting market-tracking studies. This information should be available for your competitors so you can assess the competition and position the launch.

4-20. Describe geodemographics. What computer programs aid in the collection of geodemographics?

Geodemographics is the term used to describe the classification of geographic areas in terms of the socioeconomic characteristics of their inhabitants. Aided by computer programs called geodemographic information systems (GISs), geodemographers can access huge databases and construct profiles of consumers residing in geographic areas determined by the geodemographer. Instead of being confined to fixed geographic reporting units such as a city, county, or state, geodemographers can produce this information for geographic areas thought to be relevant for a given marketing application.

4-21. What type of information is provided through the analysis of digital tracking data?

People increasingly go online to learn about products and services and to buy things. When consumers use the web or apps to research an ailment, shop for athletic shoes, or diagnose a problem with their computer, they leave digital tracks.

Firms can use the data that people generate online to optimize websites and apps, improve the effectiveness of online advertising, and identify trends.

4-22. List the most important tools for tracking online activities. How are these tools used?

Two major tools are used to track consumers’ online activities: cookies and device IDs (identifications). A cookie is a piece of data that is sent from a website to a user’s computer by a web browser that is used to store the user’s browsing history and other information provided by the user. A device ID is a unique identifier that Copyright © 2026 Pearson Education, Inc.

can be traced back to a single device, such as a smartphone or a tablet. Cookies and device IDs allow marketers to assign an ID to a user and track their online behavior.

4-23. What are the main purposes of combining digital tracking data with external data?

Companies can use digital analytical software, such as Google Analytics and Adobe Analytics, to analyze consumers’ activities. These tools allow marketers to examine how their digital offerings are being used, such as who is accessing their websites and apps, where they go, how much time they stay, and at what point they leave.

4-24. Give examples of four types of user-generated information that can be found on social media.

Social media data, also termed user-generated content (UGC), are any information that is created by users of online systems and intended to be shared with others.

Social media information can take a number of forms, including photos, videos, comments, reviews, tweets, podcasts, pins, posts, ratings, emojis, likes, and blogs.

Various types of social media platforms are host to this information, including blogs, microblogs, video-sharing networks, photo-sharing sites, social networks, professional networks, product and service review sites, web-based communities and forums, and news-sharing sites.

4-25. Suppose you work for a food company, and social media data indicate that customers are sharing new and creative ways to use your product. How might you leverage this information for marketing and product development?

One way to leverage this is to hold competitions with prizes for the best new product ideas or creative ways to use your existing product. You might uncover market segments that could be targeted with new ads.

4-26. Define the Internet of Things (IoT) and provide examples of objects that are part of the IoT. An important emerging source of marketing research data is the Internet of Things (IoT), defined as the network of physical objects embedded with software or sensors that allow them to gather and send data. A major category of objects that are part of the IoT are wearables, or wearable technology, which are clothing or accessories that are equipped with computer technology or sensors that allow the collection and sharing of data.

4-27. What are three major responsibilities for marketing researchers who collect, manage, analyze, and communicate data? What do you think is the most important responsibility?

Explain.

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The era of big data offers real promise for greater automation of marketing research, as well as exciting applications for the future. Analyzing consumer data can improve experiences for people by providing marketers with information to personalize their offerings and advertising. At the same time, the management, use, and commercialization of data raise ethical issues related to security, privacy, and the protection of consumers.

Students will have differing opinions about which of these is most important, and explanations will vary based on their opinions.

4-28. Access your library’s online databases. Describe how your library helps categorize the many databases to guide in your selection of sources appropriate for business.

Responses will vary by student and the organizational methods used by the library.

4-29 Go online to your library’s website. Can you locate a database that would be a good choice to find publications such as journal articles, trade publications, or newspapers? What are they?

Responses will vary by students and the databases the library subscribes to.

4-30. As a marketing analyst, you notice a high bounce rate on a specific page of your company’s website. How would you use Google Analytics to investigate and address this issue?

The home page of the Google Analytics features a dashboard that shows many interesting statistics that can be used to profile and track users of the Google Merchandise Store, such as page views, bounce rates, and number of sessions per user. If you hover your mouse over a metric name, you will be provided with the definition of the term. Which customer demographic bounced the most? Can you make changes that will lower that rate? How can you engage potential customers more to lower your bounce rate?

Select the “Behavior” tab, followed by the “Session quality” tab. What percentage of site visitors purchased something (sessions with transactions)? What was the conversion rate?

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These 4-31. Refer to the Active Learning Exercise in this chapter text that uses the U.S. Census data website. Using the direction in the exercise, determine what the average commute is for the location of your university. Is your personal commute shorter or longer than the average commute for that location?

Student responses will vary but should identify the type of information being determined, strong search criteria, and how their commute meets those criteria.

4-32. Name five applications of the Internet of Things for a supermarket.

As more objects have sensors and the ability to share information, the information that is generated, along with their marketing research applications, will surely multiply. For example, if sensors were embedded throughout a store, data could automatically be collected related to the number of people who walked by the store, the number who came into the store, the number who bought something, aisles that people walked through, objects that people picked up, and many other types of information.

Analysis of the data could be used to improve decision making related to retail layouts, stocking, pricing, promotional displays, and much more. Kroger places infrared sensors throughout its stores to monitor store traffic, using that information to automatically calculate how many cashiers are needed. The retailer claims that the sensors have reduced customers’ wait for a cashier by an average of several minutes. Amazon’s new physical convenience store, Amazon Go, has taken automation in retailing to a new level, with technology that allows customers to purchase products without stopping at a cashier. Amazon Go customers just place products in a shopping bag and walk out of the store with them. Imagine the amount and variety of data related to people’s retailing habits that Amazon will be able to collect and use through this technology.

4-33. List and explain which of your activities during the last seven days produced data for the Internet of Things. Do you feel as though the IoT could be an invasion of privacy? If so, what regulations should be mandated to ensure privacy and maintain ethics?

Responses will vary by student based on their activities for the week and their ethical concerns regarding the IoT. CASE SOLUTIONS Case 4.1 Apple Takes on Amazon and Google in Smart-Home Market

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Answers to Case Questions 1. What internal secondary sources does Apple already have that the company could use to gain insights into its smart-home market? Be sure to consider supplier records, retail store records, website information, and sales force records.

In addition to the various sources listed in the prompt, Apple can access sales records, invoices, and complaints. They can also access data on who is using their products and who might be likely to use Apple smart-home products. Apple can also track who is accessing their website.

2. Which external published sources and data aggregators have useful information about Apple’s current position and the potential for the smart-home market? In your investigation, include the following: a. Business publications (e.g., New York Times, Wall Street Journal, Forbes, The Economist, etc.) b. Trade and professional association information (e.g., athleticbusiness.com, wewear.org, etc.) c. Academic journals (search using your library’s database of business journals) d. Industry information (check your library’s sources) Students should conduct a search of secondary information located in several databases. Most of these can be accessed via the library’s online database retrieval system. Business publications will be a good source of information for specific activities

by Apple, Google, and Amazon, such as their product recall. Trade journals will provide information on trends in the marketplace and industry. Academic journals might be less helpful as data could be out of date by the time it is published, and industry journals might offer more updated information.

3. Conduct an investigation of social media to examine user-generated content related to Apple. a. What are the trending topics on social media related to Apple? (Use a free social media aggregator, such as Addictomatic or Twazzup, to investigate.) b. What is the sentiment of the comments related to Apple? Compare the sentiment ratio of Apple to its two primary competitors. What does that mean? c. What other sources of user-generated content can you find on social media? Do consumer perceptions appear to be supportive of the sale of Apple’s smart-home?

Explain.

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Responses will vary based on what type of research the students do, and when they do it. Apple will have different social media “buzz” if something is going on in the organization or the newspaper about the company, and different types of social media comments if there isn’t anything new going on.

4. Integrate your information from the preceding questions to determine whether or not Apple should invest more heavily in its smart-home market. Justify your response using information from your search of secondary data.

Student responses will vary based on what they found during their research of social media sites that mention Apple. The response should identify what information uncovered during research would best determine the feasibility of investing more heavily in the smart-home market.

Case 4.2 Analyzing the Coffee Category with POS Syndicated Data As introduced in Case 3.2, Andresa Drake is a research analyst for McConnell’s Supermarkets, a large supermarket chain located in the U.S. Southeast. Andresa is examining NielsenIQ point of sales (POS) syndicated data for coffee at McConnell’s. She is interested in learning the market shares of different categories of coffee and determining to what extent coffee sales are affected by promotions.

Answers to Case Questions Answer the following questions, using the data from the tables provided by NielsenIQ that display information about the purchase of coffee at McConnell’s Supermarket for the last 12 months.

1. Table A shows the sales (in dollars) for McConnell’s versus all other retail outlets in the categories of Coffee Pods, Ground Coffee, and Gourmet Coffee.

Calculate the market share ($ Share) for McConnell’s and all other retailers for Ground Coffee, Gourmet Coffee, and the Grand Total. The market share for Coffee Pods has already been calculated for you. What is the overall market share for McConnell’s? What category of coffee provides the most revenue (Sales $) for McConnell’s?

Table A. Market Share by Category—McConnell’s versus All Other Retailers CATEGORY COFFEE PODS GROUND COFFEE

McConnell’s Sales $ $72,398,311 $45,192,522

$ Share 18% 17%

All Other Retailers Sales $ $331,305,404 $223,609,534

$ Share 82% 83%

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Grand Total $403,703,714 $268,802,056

GOURMET COFFEE GRAND TOTAL

$39,500,462 $157,091,295

20% 18%

$154,291,666 $709,206,604

80% 82%

$193,792,129 $866,297,899

The overall market share for McConnell’s is roughly 18 %. The category of coffee that provides the most revenue is the coffee pod category with $72,398,311 in sales.

2. Table B shows the top six brands in sales for McConnell’s. Calculate the market share of each of the brands. What brand has the highest share of sales in the Coffee Pod category for McConnell’s? Explain your answer in words and with data.

Table B. Market Share by Brand CATEGORY COFFEE PODS

BRAND BRAND J Z G BRAND L X U BRAND O Q K BRAND T K V BRAND V A Z BRAND X X U PRIVATE LABEL

GRAND TOTAL

Sum OF $ $3,835,961 $4,556,144 $13,352,670 $5,980,626 $12,127,717 $3,354,858 $6,663,616 $72,398,311

$ Share 5% 6.3% 18.45% 8.3% 16.75% 4.6% 9.2% 68.6%

The brand with the highest share of sales in the Coffee Pod category is brand OQK with more than 18% of sales.

3. Table C combines McConnell’s sales plus all other retailers and compares the sales of coffee for the last 52 weeks (Sum of $) versus sales for the prior year (Sum of $YA). Which category of coffee has the highest percentage growth in sales versus year ago? How are the other categories faring?

Explain your answer both in words and with data.

Table C. Change in Sales of Categories CATEGORY

Sum of $

Sum of $ YA

Average of $ % Change

COFFEE PODS

$403,703,714

$403,660,716

0.0%

GROUND COFFEE

$268,802,056

$283,401,743

GOURMET COFFEE

$193,792,129

$184,534,064

0.95%

GRAND TOTAL

$866,297,899

$871,596,523

−6.12%

−5.43%

When compared with the sum of sales for the previous year, the sale of ground coffee has decreased while the sale of gourmet coffee has increased. The grand total for sales has decreased in the current year when compared to the previous year.

4. Table D displays the top six brands in the Gourmet Coffee category at McConnell’s. Calculate the average % discount (average of % promo $) for each brand. The average % discount for Brand ABC has already been Copyright © 2026 Pearson Education, Inc.

calculated for you. Which brand has the top sales (sum of $)? Which brand sells the highest percentage of dollar volume on promotion (sum of any promo $)? Which brand sells the lowest percentage of dollar volume on promotion? Which brand has the highest average percentage discount? Which brand has the lowest average percentage discount?

Table D. Sales on Promotion CATEGORY

BRAND

Sum of $

Sum of Any Promo $

Average of % Promo $

GOURMET COFFEE

BRAND ABC

$10,966,198

$8,061,744

73.5%

BRAND DEF

$6,040,463

$4,116,035

68.14%

PRIVATE LABEL

$4,136,165

$2,380,499

57.55%

BRAND GHI

$3,094,665

$1,215,228

39.27%

BRAND JKL

$2,363,166

$1,333,725

56.44%

BRAND MNO

$2,292,106

$1,607,367

70.13%

The brand with the top sales is Brand ABC with a sum of $10,966,198 in sales. The brand that sells the highest percent of dollar volume on promotion is also Brand ABC. The brand that sells the lowest percent of dollar volume on promotion is Brand GHI. The brand that sells the highest average percent discount is Brand ABC and the brand with the lowest average percent discount is Brand GHI.

5. Table E displays the total revenue for coffee sold on promotion for different sizes of Brand VAZ Gourmet Coffee sales at McConnell’s for the Latest 52 Weeks. Calculate the average promotion price (Promo Price), and the average promotion price per ounce (Promo Price/ OZ). Which size has the highest promoted price per ounce?

Which size has the lowest promoted price per ounce?

Table E. Promotion Sales of Brand VAZ Gourmet Coffee by Size BASE SIZE

Sum of Any Promo $

Sum of Any Promo Units

Promo Price

Promo Price / OZ

<TB>12 OUNCE

$5,359,134

829,263

$6.46

$0.54

20 OUNCE

$1,503,100

132,883

$11.31

$0.57

11 OUNCE

$1,002,204

154,987

$6.47

$0.59

10 OUNCE

$196,976

29,234

$6.74

$0.68

16 OUNCE

$301

24

$12.54

$0.78

4.86 OUNCE

$29

5

$5.80

$1.19

The 4.86 ounce package has the highest promoted price per ounce at $1.19 per ounce. The 12 ounce size has the lowest promoted price per ounce at $0.54 per ounce.

CHAPTER 5 Copyright © 2026 Pearson Education, Inc.

QUALITATIVE RESEARCH TECHNIQUES LEARNING OBJECTIVES In this chapter you will learn: 5.1 Differentiate between quantitative and qualitative research techniques 5.2 Explain the steps involved in conducting an in-depth interview 5.3 Describe what focus groups are and how they are conducted 5.4 State the concept of ethnographic research and discuss its strengths and weaknesses

5.5 Analyze the potential benefits of using marketing research online communities for a specific research 5.6 Describe how observation research is used in marketing research

5.7 List other qualitative methods used by marketing researchers, such as protocol analysis, projective te 5.8 Develop a thematic analysis to extract insights from qualitative data CHAPTER OUTLINE Quantitative, Qualitative, and Mixed Methods Research 

Types of Mixed Methods o Qualitative Before Quantitative o Quantitative Before Qualitative o Quantitative and Qualitative Concurrently o

In-Depth Interviews 

In-Person versus Online In-Depth Interviews



How do In-Depth Interviews Work?



Advantages and Disadvantages of In-Depth Interviews

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Focus Groups 

In-Person versus Online Focus Groups



How Focus Groups Work o o o o o

How Many People Should Be in a Focus Group?

Who Should Be in a Focus Group?

How Many Focus Groups Should Be Conducted?

How Should Focus Group Participants Be Recruited and Selected?

What is a Focus Group Report?

Ethnographic Research 

Mobile Ethnography



Netnography

Marketing Research Online Communities 

Observation Techniques  Types of Observation o Direct versus Indirect o Covert versus Overt o Structured versus Unstructured o In Situ versus Invented 

Advantages and Disadvantages of Observational Data

Other Qualitative Research Techniques 

Protocol Analysis



Projective Techniques o Word-Association Test o Sentence-Completion Test o Picture Test o Cartoon or Balloon Test o Role-Playing Activity



Neuromarketing o Neuroimaging Copyright © 2026 Pearson Education, Inc.

o Eye Tracking o Facial Coding o The Controversy 

Still More Qualitative Techniques

The Analysis of Qualitative Data 

Steps For Analyzing Qualitative Data o Step 1. Organize the Data o Step 2. Get to Know the Data o Step 3. Categorize the Data o Step 4. Identify Themes o Step 5. Identify Substantiating Examples of Themes o Step 6. Communicate Insights



Using Artificial Intelligence to Analyze Qualitative Data

KEY TERMS Archives

Balloon test

Chat online focus group

Covert observation

Direct observation

Ethnographic research

Eye tracking

Facial coding

Focus group report

Focus groups

In-depth interview (IDI)

In situ observation

Indirect observation

Invented observation

Laddering

Marketing research online communities (MROCs)

Mixed methods research

Mobile ethnography

Moderators

Netnography

Neuroimaging

Neuromarketing

Observation methods

Online focus group Copyright © 2026 Pearson Education, Inc.

Overt observation

Physical traces

Picture test

Projective techniques

Protocol analysis

Qualitative research

Quantitative research

Role playing

Sentence-completion test

Shopalong

Structured observation

Substantiating example

Thematic analysis

Unstructured observation

Verbatim

Word-association test

Word cloud

ACTIVE LEARNING LEARN MORE ABOUT QUALITATIVE RESEARCH Go to the Qualitative Research Consultants Association website (www.qrca.org). Click on “About Qualitative Research and QRCA” to access the “What is Qualitative Research.” Next click on the “When to Use Qualitative Research” page. Now let’s consider the example of recommendations made by a university’s faculty senate to the administration. For each of these recommendations, indicate whether qualitative research should be used to evaluate students’ opinions. What are the pros and cons of using this form of research in each case?

1. Require all students to park at a central parking lot two miles from campus and take shuttle buses to campus.

2. Increase tuition by 10%.

3. Schedule classes on Monday/Wednesday or Tuesday/Thursday, leaving Friday for student organization meetings and group project work.

4. Require students to take at least 18 hours of course work during summer school.

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5. Require every student to purchase and bring an iPad to class.

This can be used as an in-class discussion on the merits of qualitative research. While students will have a variety of opinions, most of the opinions can be categorized as agreement, disagreement, or neutral on the subject. Better instructions would result in more specific answers. Some students might offer alternative solutions, for example, taking 9 hours of course work during the summer, instead of 18. Since qualitative research is based on nonstandardized questions, these discussions can be open ended.

Students should work to move beyond the initial response to the questions and work to consider the “why” behind each of these questions.

CONDUCT A THEMATIC ANALYSIS OF SOCIAL MEDIA DATA Identify a brand that is currently facing a problem or an opportunity. For this exercise, it is best to select a brand that is well known and frequently discussed on social media (e.g., Starbucks, Samsung, Netflix). An example of a problem might be a retailer that is losing sales. An example of an opportunity could be a new product extension. Following the steps outlined in Marketing Research Insight 5.3, research this problem or opportunity, identifying social media data that relates to the problem statement. Identify at least three themes (using complete sentences) associated with content on social media that is related to your brand’s problem or opportunity.

Explain each theme and illustrate with at least two examples (e.g., anecdotes, twitter quotes, photos, comments, videos, etc.) from social media sites.

Themes are overriding patterns of the data that relate to the pre-specified research objectives, and can indicate underlying beliefs, ideas concepts, definitions, or behaviors that become evident in the research. All themes should be substantiated through specific examples. Themes can help to provide diverse insights into the problem or opportunity the student has researched.

CONDUCT A WORD CLOUD TO UNDERSTAND CUSTOMERS’ ERCEPTIONS OF A BRAND Find a website that has reviews of products, such as TripAdvisor, Amazon, or Yelp. Select a brand that has at least 10 customer reviews. Copy and paste those reviews into a word cloud generator (one can be found at https://www.jasondavies.com/wordcloud). What insight can you gain into customers’ perceptions of the brand from the word cloud its reviews generate?

Students can use programs such as jasondavies.com or Wordle to visually display qualitative data. Students can create a word cloud on any product. The resulting word cloud can be used to compare and contrast their personal views of the product. This could be used as a quick in class exercise.

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TEACHING SUGGESTIONS 1. The following comparison can be used to emphasize the differences between qualitative and quantitative research.

Factor Purpose

Qualitative Research To explore

Quantitative Research To understand

Questions

Not standardized

Standardized

Instrument

Camera or recorder

Questionnaire

Sample Size

Very Small

Large

Analysis

Subjective

Objective

Result

Tentative

Conclusive

2. To test students on their understanding of physical traces observation, ask them how it can be applied in each of the following cases. Suggested applications are provided.

Case Honda wants to know how safe its vehicles are.

Your university health service wants to know if students are eating junk food.

Possible Physical Trace Research Go to automobile junk yards and determine the severity of damage to Hondas versus other makes.

Search dumpsters or trash containers at dorms and in high traffic areas on campus for junk food packages and wrappings.

3. Students can participate in disguised observation by posing as “secret shoppers.” Select a local retailer, restaurant, or service company, and have specific students (3 or 4 is plenty) approach the company as secret shoppers. Class discussion can be used beforehand to identify areas to observe such as friendliness, promptness, professional attitude, and so forth. If a chain company is used, different student teams can visit different locations and compare findings for consistency. Secret shopper students can bring their observations into the class for discussion.

4. Obtain permission from a local grocery store for students to act as observers of grocery shoppers. Students may masquerade as clerks or pretend to be shoppers themselves.

With structured observations, it will be necessary to identify the types of grocery shoppers and what specific observations are to be made. Have students work with the records in class to illustrate the information processing and interpretation phases of observational research.

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5. There are several ways to teach focus groups. Here are some suggestions. 

Ask a local research company to lend you tape recordings of a focus group that you can play during class for students to observe.



Arrange for a class field trip to a local focus group company that is willing to provide a guided tour.



Arrange for small groups of students to go to a focus group facility and observe a live focus group in progress.



Act as moderator and conduct a focus group in class with students. With a large class, have the nonparticipants play the role of clients who are observing the focus group.



Divide the class into teams of 2–4 students and assign each team the task of recruiting, conducting, and interpreting a focus group using other university students as participants. Audio tape recording will be sufficient. This will require identifying the topic and focus issues ahead of time, perhaps as a class exercise.



A fellow marketing faculty member may have experience in focus groups, perhaps as a moderator or a freelance consultant. He or she may be willing to bring examples into your class.



Some online course management systems have chat room capabilities, or you may have experience with an online chat product. Use it with a small number of students stationed at various locations on PCs to illustrate how an online focus group works.

6. As evidenced in the section on “online focus groups,” this is an area of rapid growth and innovative new approaches. Have selected students research the new forms of focus groups and present their findings to the class. Students can do an Internet search to find this information. Alternatively, students may use a secondary database search service such as ABI/Inform.

7. B2B International has a lot of information on focus groups. Look at their website at www.b2binternational.com and peruse the site. What does this company do? What can you find out about focus groups?

8. The sentence-completion test and the balloon test are amenable to class activity. Select a semi-sensitive topic that students can relate to such as dating, spending money, or cutting classes. Use class discussion to have students volunteer sentence stems, or if artistic students are present, have them attempt to make line drawings for balloon tests. Select the best examples and administer them in a large class such as a Principles of Marketing class. Bring the raw data to class for students to interpret.

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Here are some sentence completion stems for college students’ use of credit cards.

For college students, credit cards are______________________________________________________________.

College students use credit cards to_______________________________________________________________.

When a college freshman gets a new credit card application, he/she____________________________________________________________.

When a college student reaches the limit of his/her credit card, he/she____________________________________________________________.

When a college senior gets a new credit card application, he/she____________________________________________________________.

If parents of college students learned about their children’s credit card situations, they would________________________________________________________.

9. Physiological measure equipment is sometimes used in neuromarketing or psychology experiments. If you have a colleague in this area, he or she may be willing to bring examples to your class and describe to students how the instruments are used.

Subsequent class discussion can take place on the appropriateness of physiological measures in marketing research.

10. There are occasional qualitative research articles in the Journal of Consumer Research, and a few have appeared in the Journal of Marketing Research. Qualitative research papers can also be found in recent volumes of Advances in Consumer Research, which are the proceedings of the annual meetings of the Association for Consumer Research.

Select one that is content-based and present it to the class. Lead class discussion to help students comprehend why qualitative research was necessary to research this topic.

Alternatively, select an expository method-based article to illustrate that the method is not haphazard. For instance, explain what documentation is necessary, how validity is assessed, the role of member checks, and so on.

ANSWERS TO END-OF-CHAPTER QUESTIONS 5-1.

Explain the differences between quantitative and qualitative research techniques.

Provide examples of situations where each approach might be most suitable.

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Quantitative research is defined as research involving the use of structured questions or observations where the response options have been predetermined and a large number of respondents are involved. Quantitative research often involves a sizeable representative sample of the population, and a formalized procedure for gathering data. The purpose of quantitative research is very specific, and the manager and researcher have agreed that precise information is needed.

Data format and sources are clear and well defined, and the presentation of the data that has been gathered follows an orderly procedure, which is largely numerical in nature.

Qualitative research, in contrast, involves collecting, analyzing, and interpreting data by observing what people do and say. Observations and statements are in a qualitative or nonstandardized form. Because of this fact, qualitative data can be quantified but only after a translation process has taken place. For example, Procter & Gamble (P&G) may be interested in improving its Ultra Tide laundry detergent, so it invites a group of 30- to 45-year-old parents to brainstorm how Ultra Tide could perform better, how its packaging could be improved, or other features of the detergent. These ideas may have been the origins of Tide PODS or Tide To Go. Listening to the market in this way can generate excellent packaging, product design, or product positioning ideas.

5-2. What is mixed methods research? What are the three types of mixed methods research?

Give an example of each.

Mixed methods research is the integration of qualitative and quantitative research methods in order to gain the advantages of both.

Three types of mixed methods are: Qualitative before Quantitative. Traditionally, exploratory qualitative techniques precede quantitative techniques. For example, in-depth interviews of selected dealers or a series of focus group discussions with customers might be used to understand how a product or service is perceived in comparison to competitors.

Quantitative before Qualitative. In other cases, a qualitative phase is applied after a quantitative study to help the researcher understand the findings in the quantitative phase. For example, after getting the results of a survey, a company might convene focus groups to gain a greater understanding of the survey findings.

Quantitative and Qualitative Concurrently. In recent years, qualitative and quantitative research have begun to be conducted concurrently in order to provide complementary results. Researchers have found that each type of research can provide different insights to a phenomenon, with the integration of quantitative and qualitative data yielding a richer understanding. For example, Netflix is a big data Copyright © 2026 Pearson Education, Inc.

gathering company that is known for its powerful algorithm that predicts users’ viewing preferences.

5-3. Name one scenario in which a researcher might opt to conduct an in-person, in-depth interview (IDI) and another scenario in which a researcher might opt to conduct an online IDI. A researcher might opt for an in-person in-depth interview (IDI) when exploring sensitive topics, such as personal health issues or trauma, as the face-to-face setting fosters trust and allows observation of nonverbal cues for deeper insights.

Conversely, an online IDI is ideal for accessing hard-to-reach populations, such as busy professionals or individuals in remote areas, offering flexibility in scheduling and reducing logistical costs.

5-4. Can in-depth interviews be used effectively for business-to-business research? If so, how might the approach differ from conducting IDIs with consumers?

Yes, in-depth interviews (IDIs) can be highly effective for business-to-business (B2B) research. They are particularly well-suited for exploring complex decision-making processes, understanding industry-specific challenges, and gaining rich insights from key stakeholders or decision-makers. However, the approach to conducting IDIs in B2B research differs significantly from consumer-focused IDIs due to the unique dynamics of B2B environments. It is often more challenging to recruit B2B participants, business decisions often require input from various stakeholders, and interview content is often more technical. B2B sample sizes tend to be smaller as well.

5-5

What are the key operational aspects to consider before conducting a traditional focus

group?

Because focus groups are made up of a small number of persons who are not representative of the larger population, care must be exercised in using focus groups. If the research objective is to make a prediction, focus groups should not be used. For example, if we show 12 people in a focus group a new product prototype and 6 say they will buy it, it is not defensible to predict that 50% of the general population will buy it.

5-6. Describe at least three different uses of focus groups.

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The chapter lists four uses. They are: (1) to generate ideas, such as in product improvement brainstorming sessions, (2) to understand consumer vocabulary useful when the researcher is working with a product or service category with which he/she is unfamiliar, (3) to reveal needs, motives, perceptions, and attitudes on products or services, which is a common objective of exploratory qualitative research as a front end to a larger, quantitative effort, and (4) to understand findings from quantitative studies, meaning that the researcher or manager has some questions about the interpretation of quantitative findings.

5-7. How are focus group participants recruited, and what is a common problem associated with focus group recruiting?

Focus group participants are normally recruited by telephone and provided a monetary incentive for participating. “No shows” are a common problem, so some focus group companies over-recruit the required number of focus participants.

5-8. Should the members of a focus group be similar or dissimilar? Why? It is generally believed that the best focus groups are ones in which the participants share homogeneous characteristics. The need for similar demographic or other relevant characteristics in the focus group members is accentuated by the fact that the focus group participants are typically strangers. Participants typically feel more comfortable once they realize they have similarities such as similar ages (e.g., they may all be in their early 30s), job situations (e.g., they may all be junior executives’ wives), family composition (e.g., they may all have preschool children), purchase experience (e.g., they may all have bought a new car in the past year), or even leisure pursuits (e.g., they may all play tennis). Furthermore, by conducting a group that is as homogenous as possible with respect to demographic and other characteristics, the researcher is assured that differences in these variables will be less likely to confuse the issue being discussed.

5-9. How might different settings for a focus group affect the overall quality of the research?

A focus group facility is a set of rooms especially designed to conduct focus groups that are found at a marketing research company specializing in conducting focus groups. The focus group room itself contains a large table and comfortable chairs, a relaxing atmosphere, and a one-way mirror so that clients can view the interviewing process. Ample space for video and audio equipment should also be provided.

Focus group participants sit around the large table with a focus group moderator at the head of the table. The client may sit on the other side of the one-way mirror and view the focus group session.

5-10. Should the marketing manager client be a focus group moderator? Why or why not?

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A focus group moderator is a person who conducts the entire session and guides the flow of group discussion across specific topics desired by the client. A good moderator must have excellent observation, interpersonal, and communication skills to recognize and overcome threats to a productive group discussion. The moderator must be prepared, experienced, and armed with a detailed list of topics to be discussed. It is also helpful if the focus group moderator can eliminate any preconceptions on the topic from his/her mind, plus the moderator should be empathic or sensitive to the participants’ situations and comments.

Marketing manager clients are not recommended to be moderators. They are not trained in this capacity, and they are too involved in the topic being researched to conduct the focus group objectively.

5-11. Describe the role of a focus group moderator and the skills required for effective moderation.

Good moderators have excellent observation, interpersonal, and communication skills, which allow them to recognize and overcome threats to a productive group discussion. They must be able to tactfully encourage quieter participants to open up and give their opinions, while making sure that no one participant dominates the group. They are prepared, experienced, and armed with a detailed list of topics to be discussed. It is also helpful if focus group moderators can eliminate any preconceptions on discussion topics from their minds. The best moderators are experienced, enthusiastic, prepared, involved, energetic, and open-minded. With an incompetent moderator, the focus group can become a disaster.

5-12. Indicate how a focus group moderator should handle each of the following cases: (a) A participant is loud and dominates the conversation; (b) a participant is obviously suffering from a cold and goes into coughing fits every few minutes; (c) two participants who are acquaintances persist in a private conversation about their children; and (d) the only minority representative participant in the focus group seems very uncomfortable with the group and fails to make any comments.

Here are the suggested ways to handle these cases.

Problem case (a) A participant is loud and dominates the conversation (b) a participant is obviously suffering from a cold and goes into coughing fits every few minutes

Suggested way for the moderator to handle it Avoid eye contact with the person Ask others by name to respond before the offensive person can Tell the person to let others have a say Offer a cough drop, life saver, or chewing gum to the person Make sure the person has a glass of water handy

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(c) two participants who, it turns out, are acquaintances, persist in a private conversation about their children

(d) the only minority representative participant in the focus group looks very uncomfortable with the group and fails to make any comments

Excuse the person to go outside until the coughing spell subsides Separate the two by placing them at opposite ends of the table Give them a “dirty” look Ask them to postpone their chatting until the break Remind them that the session is being taperecorded and side conversation will garble it Attempt to bring the person into the conversation by: Making eye contact Smiling and nodding at the person Asking him or her direct questions

5-13. What type of data is reported from focus groups? Can these findings be expected to represent the population? Why or why not?

A detailed report will be prepared for the client to review after the researcher analyzes the data. The report will reflect the qualitative aspect of this research method. It will have generalizations of themes apparent and comments on any diversity evident. It will also have numerous verbatim excerpts provided as evidence. Some reports include transcripts of the complete focus group(s).

5-14. A tech company is considering introducing a revolutionary smartphone feature but wants to assess potential user reactions and gather ideas for improvement. Propose a plan for conducting an online focus group to gather insights on consumer expectations, concerns, and suggestions regarding the new feature.

Plan for Conducting an Online Focus Group could include: 1. Define Objectives: Clarify the purpose of the focus group: gather user expectations, concerns, and suggestions about the feature.

2. Identify Target Audience: Recruit 8–12 participants who align with the target demographic (e.g., smartphone users, tech-savvy individuals). Screen for diversity in usage habits and preferences.

3. Select Platform: Use a reliable video conferencing tool (e.g., Zoom, Microsoft Teams) with features like recording and screen sharing.

4. Prepare Discussion Guide: Structure the session with:  Introduction: Explain goals and set ground rules.  Warm-Up: Ask general questions about smartphone habits.  Feature Presentation: Share a demo or mockup.  Key Questions: Explore first impressions, potential concerns, and improvement ideas.

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5. Facilitate Engagement: Encourage active participation through icebreakers, openended questions, and anonymous polls for sensitive feedback.

6. Record and Analyze Feedback: Record the session (with consent), take notes, and use transcription tools to identify themes and actionable insights.

7. Incentivize Participation: Offer rewards such as gift cards or early access to the feature to motivate participants.

8. Summarize Findings: Compile key insights into a report for product development teams, highlighting user expectations and suggested improvements.

5-15. Define ethnographic research and explain its relevance in marketing.

Ethnographic research, an approach borrowed from anthropology, is defined as a detailed, descriptive study of a group and its behavior, characteristics, and culture.

Ethnographic research involves observing consumers in natural settings to monitor their behaviors, relations with others, and emotions.

Ethnographic research is used in marketing to gain a deeper and more comprehensive understanding of the consumer and consumer behavior by studying the behavior where it occurs for prolonged periods. Ethnography is particularly effective for studying trends, personal habits, lifestyle factors, and the effect of social and cultural context on consumption behavior. Ethnography uses several different types of research, including immersion, participant observation, and informal and ongoing in-depth interviewing. Ethnographers pay close attention to words, metaphors, symbols, and stories people use to explain their lives and communicate with one another.

Because ethnographic research may include shopalongs, or being in someone’s home, the researcher may be exposed to various degrees of sensitive information, creating the possibility of being placed in an ethically challenging situation.

5-16. How might an automobile company use ethnography to improve their product?

An automobile company could collect data to better identify why a consumer would choose a certain style of care, price they are willing to pay, what safety and comfort features are important, and how a person’s choice in automobiles might be viewed as an extension of their personality. Students may consider other examples as well.

5-17. What is mobile ethnography, and how has it evolved with the rise of smartphone ownership? Highlight its advantages and limitations.

Mobile ethnography is a type of marketing research in which respondents document their own experiences through their mobile phones. With mobile ethnography, researchers recruit respondents to record their own activities and emotions, using Copyright © 2026 Pearson Education, Inc.

their phones to take photos and videos accompanied by audio explanations. For example, respondents might be asked to document their own participation in milestone events, such as celebrations or funerals, or in more mundane activities such as making breakfast or taking the dog for a walk. Mobile ethnography can be especially useful for documenting private behavior, such as waking up in the morning or administrating medical treatments.

5-18. What two words are combined to make the term netnography? Why is netnography an increasingly popular research method?

Netnography is a combination of InterNET plus ethnography. Netnography as a research tool is increasing because of the use of the Internet to gather data.

Ethnographic research is the study of a group and its behavior, characteristics, and culture. Ethnographic research involves observing consumers in near-natural settings to monitor their behaviors, relations with others, and emotions. One variation of ethnography is netnography, in which online activities are studied.

In recent years, marketing research online communities have become a popular form of research, in which groups from targeted populations are brought together online to interact, provide opinions and ideas, and complete tasks. Online communities are inexpensive and flexible, allowing a wide variety of data to be collected, including social media posts, photos, and videos.

5-19. Define marketing research online communities (MROCs) and discuss how they are utilized in marketing research.

Marketing research online communities (MROCs) are groups of participants that are brought together online to interact, provide opinions and ideas, and complete tasks.

Online communities are inexpensive and flexible, allowing a wide variety of data to be collected including posts, photos, and videos. Online communities can complete a number of tasks, including responding to open-ended questions, providing product and advertising feedback, keeping journals, and taking mini-polls using computers, tablets, or mobile phones. Creative tasks can be assigned to online communities, such as asking members for ideas for a name for a product or requesting recipes that incorporate a food product as an ingredient. Participants are often asked to share photos or videos of themselves interacting with products or services. Online communities are particularly effective for gaining insights from millennials and Generation Z, since younger consumers are the most avid users of social media.

5-20. Imagine you are a marketing manager for a new energy drink targeting young adults.

Design a scenario where creating an MROC would be beneficial for gaining insights into consumer preferences and behaviors.

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Using an MROC ensures the energy drink aligns with young adults’ preferences, improving product-market fit and fostering a loyal customer base. The keys are to recruit members of the target audience and engage them in some way. This group uses social media extensively so samples and contests might work to get the information you need to make a decision.

The benefits include instant feedback, lower cost, and the ability to build brand loyalty with a superior product.

5-21. Choose one projective technique from the list (e.g., word-association test) and describe a hypothetical scenario where it could be effectively applied.

Projective techniques are situations where the participant inserts himself or herself into a unique stimulus situation. Protective techniques all share two features: (1) an ambiguous stimulus is presented to each participant and (2) in reacting to the stimulus the participant will reveal inner feelings that would or could not be revealed through direct questions. These are called “projective” techniques because a participant will project or insert him/herself into the stimulus situation.

Researchers believe that when people project in this way, they will divulge things about themselves they might not reveal under direct questioning. So projective techniques are appropriate in cases where the researcher is convinced that the respondent will be hesitant to relate his/her true opinions. Alternatively, the respondent may be willing, but some latent barrier is believed to exist which deters him/her or otherwise causes an untruthful response to a direct question.

Word-association tests are valuable tools used to study associative memory structures. Researchers might use the test to explore how individuals associate a product or brand. For example, what word immediately comes to mind when you hear the word iPad? This information can help structure advertising and other decisions to ensure your product or brand is associated with positives instead of negatives.

5-22. Describe (a) sentence-completion, (b) word-association, and (c) balloon tests. Create one of each of these that might be used to test the reactions of parents whose children are bed-wetters to absorbent underpants that their children would wear under their nightclothes.

With a sentence completion test, respondents are asked to complete, in their own words, a set of incomplete sentences. The notion here is that the respondent will reveal something about himself in the written response.

Application to the absorbent underpants case.

A child who wets the bed is ________________________________________.

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Absorbent underpants for a child who bed wets is _______________________.

If my young child wet his/her bed, I would ____________________________.

I would have my child wear absorbent underpants to bed if _______________.

With a word association test, a list containing anywhere from a few to more than a 100 words of interest combined with neutral words (designed to preserve the disguised nature of the study) is presented to respondents perhaps by being read aloud one at a time. The respondent must answer with the first word that comes to his/her mind. This approach is an attempt to uncover people’s feelings about new products or services, brand names, or key words being considered for use in advertising copy.

Use of word association would be restricted to the image or associations that parents of bed wetting children have with alternative brand names.

Here are some possible brand names to which informants would be asked to respond.

Brand name

Association that comes to mind

Dry Jams

__________________________

Waterholder

__________________________

Sleep Protector

__________________________

Problem Solvers

__________________________

Mother’s Helper

__________________________

In a balloon test, subjects indicate what they think drawn stick or cartoon figures are thinking by writing in the balloons over the figures’ heads. For example, when shown a line drawing of a situation in which one of the characters is making a statement, ―Here is a gold executive pen that I bought for $399,‖ the participant is asked how the other character in the drawing would respond. Feelings and reactions to the subject are judged based on their answers.

Here is a possible example. The father is waking up his child in the morning of the first night the child wore absorbent underpants. Respondents would write in what the father says or asks the child.

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5-23. What is neuromarketing? Give three examples of neuromarketing techniques.

Neuromarketing is the study of an individual’s involuntary responses to marketing stimuli, including eye movement, heart rate, skin conductance, breathing, and brain activity.

Neuroimaging, or viewing brain activity, may aid marketing researchers to better understand consumers’ unconscious emotions. By using neuroimaging and understanding the neuroscience behind it, marketing researchers hope to more accurately posit what consumers really want (which can be different from what they say they want), what appeals to them, and what drives them to buy. Eye tracking is a technique for measuring eye positions and eye movement. Facial coding is a system that is used to measure universal expressions of emotions, such as happiness, sadness, fear, and surprise, by their appearance on people’s faces.

5-24. Do you think it is ethical for politicians to use findings from neuromarketing research to plan their campaigns? Explain.

Student responses will vary based on their feelings about neuromarketing and how it can be applied to politics.

5-25. Associated Grocery Stores (AGS) has always used paper bags for sacking groceries in its chain of retail supermarkets. Management has noticed that some competitors are offering reusable bags to their customers. AGS management isn’t certain just how strongly consumers in its markets feel about having to bring the reusable bags every time they visit the supermarket.

Select two projective techniques. First, defend your use of a projective technique. Second, describe in detail how your two chosen techniques would be applied to this research problem.

Two potential choices are the balloon test and role playing. Both of these projective techniques could work quite well in this situation.

First, for the balloon test, a cartoon could be presented to customers showing a shopper getting out of his or her car at the grocery store with recycled grocery bags prominently shown in hand, ready to shop. Above the shopper, an empty balloon appears where the customer is asked to fill in something the shopper is thinking or saying as they walk into the store with their recycled bags. This would potentially tell a lot about how customers feel about bringing recycled bags in each time they shop.

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Second, for the role-playing activity, customers could be asked to respond as a friend of a shopper who is returning to the grocery store with recycled bags in tow. The customers could be asked to freely comment to their friend on what they think about any inconvenience associated with them having to bring back bags versus the benefits to Earth that recycling offer. This, too, would produce important information on how customers feel about the recycled bag program.

5-26. Now the Associated Grocery Stores (AGS) has decided to use focus groups to gain insights on offering reusable bags to their customers. Prepare the topics guide for the moderator.

Offering reusable bags is successful only if customers are willing to pay for them, their ability to remember to bring them when shopping, and the customer concern over eliminating plastics from landfills.

Convenience How will customers store bags when not in use?

Availability and ease of purchase What can be done to help customers remember to bring bags to the store?

Options if forgotten Cost Would free bags be more acceptable than having to purchase?

How much are customers willing to spend to buy their own bags?

Will customers save money if they bring their own bags?

Environmental factors Keeping plastic out of landfills Keep bags clean and sanitary It is important to ask students their reactions to the concept and what would entice them to reuse 5-27. Explain why thematic analysis is a useful technique for analyzing qualitative data.

Thematic analysis involves examining qualitative data to uncover themes or patterns which relate to the objectives of the research. The theme is a pattern that is found across the data. These themes, or patterns, can help researcher identify emerging trends that can indicate opportunities or problems.

CASE SOLUTIONS Case 5.1 Mumuni Advertising Agency Explores Virtual Reality Technology Copyright © 2026 Pearson Education, Inc.

Case Objective This case interrogates students’ knowledge and understanding of the uses of qualitative research and its relationship to social media.

Answers to Case Questions 1. Develop a problem statement and research objectives for this marketing research study.

It is important that Mumuni develop a clear problem statement and research objectives, particularly for social media analysis. The problem statement might be: More of Mumuni’s potential customers use voice-activated assistants to receive marketing content.

2. Research social media websites to learn how consumers feel about voice-activated technology and how they are using it. Based on your investigation of social media websites, develop three themes that relate to the research objectives of this study. Each of the themes should be illustrated with at least two substantiating examples (posts, tweets, photos, videos, etc.) from social media. (Hint: Informative social media content may include reviews of VR headsets, videos created by consumers that show how they are using VR technology in their daily lives, and forums with discussions of VR devices.)

Responses will vary by student based on their research. Themes may include types of social media used, ethnography, and research into various online communities. It is important to remember that participants in marketing research online communities are selected according to their demographics or interests. Students may not make up the same demographic and interest levels as Mumuni’s potential customers.

Themes might include demographical data such as age, income, and education levels, along with social media sites used.

3.

Propose two different types of qualitative research to address the marketing research objectives. Explain why each of these qualitative methods is appropriate to study this problem.

One type of qualitative research method that Mumuni could use is a focus group. This research method could determine how a subset of the population interacts with social media and voice-activated assistants. It is important to keep in mind that using a focus group is an exploratory process and the outcome will not necessarily apply to all insurance buys or all those who use voice-activated assistants. Since Mumuni is trying to measure how customers interact with social media, an online focus group might be most meaningful.

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Another type of qualitative research method Mumuni could use is ethnographic marketing research. This could entail observing users interacting on social media or with voice-activated assistants, tracking facial reactions based on outcomes of an interaction, or other documentation of behavior. In this case, mobile ethnography specifically might be most effective, allowing researchers to recruit respondents to record their own activities and emotions using their phones to take photos and videos accompanied by audience explanations.

Case 5.2 Zenith Health Plans the Launch of the Rise and Recharge Breakfast Bar Case Objective This exercise requires students to consider and recommend a comprehensive marketing research proposal to the Zenith Health breakfast bar case. The objective is to gain some information that will assist in the advertising strategies to be used to launch the Rise and Recharge breakfast bar.

Answers to Case Questions How will Anya reach the target market (busy young adults)? In-depth interviews? Marketing research online communities? Focus groups? Other? Develop a proposal for a marketing research study that will ensure the successful launch of the Rise and Recharge Breakfast Bar. Detail exactly which research methods Anya should use in what order, choosing at least three research methods. Explain how these will be used to fulfill each of the research objectives.

There is no one specific proposal that will allow Anya to achieve her objectives. However, to ensure the successful launch of Zenith Health’s Rise and Recharge breakfast bar, Anya Olson should employ a mixed method marketing research approach. This proposal outlines three specific research methods—focus groups, surveys, and in-depth interviews—in a structured sequence to meet the outlined research objectives.

Proposed Research Plan 1. Phase 1: Qualitative Exploration (Focus Groups) Objective Addressed:  Brand Awareness and Image  Target Market Needs and Preferences Methodology: Focus groups will bring together small groups (5–8 participants) of busy millennials and Gen Z consumers. These discussions will explore:  Current awareness and perceptions of Zenith Health’s brand.  Consumer preferences for breakfast bar features such as flavors, ingredients, and functionality.  Emotional and functional needs related to on-the-go breakfast options.

Rationale: Focus groups foster dynamic discussions, revealing nuanced consumer attitudes, Copyright © 2026 Pearson Education, Inc.

motivations, and unmet needs that surveys might overlook. They provide a foundation for understanding how Rise and Recharge fits within Zenith Health’s brand image and uncover gaps in the market.

2. Phase 2: Quantitative Validation (Online Surveys) Objective Addressed:  Brand Awareness and Image  Target Market Needs and Preferences  Pricing Strategy Methodology: An online survey will be distributed to a larger sample (N > 100) of the target demographic.

The survey will include:  Questions to measure brand awareness using aided and unaided recall techniques.  Preferences for specific product attributes (e.g., flavors, adaptogens, packaging).

Rationale: Surveys allow for statistical validation of insights gathered from focus groups and provide a broader understanding of consumer preferences.

3. Phase 3: In-depth Interviews Objective Addressed:  Product Positioning and Messaging  Pricing Strategy Methodology: One-on-one interviews with selected participants from earlier phases will delve deeper into:  Perceptions of competitors’ breakfast bars.  Reactions to proposed messaging strategies emphasizing Rise and Recharge’s unique selling points (e.g., adaptogens for stress relief).

Rationale: In-depth interviews provide rich, personalized insights into consumer decision-making processes. They help refine product positioning by exploring emotional connections and testing messaging strategies in greater depth.

Integration of Findings 1. Brand Awareness & Image: Insights from focus groups and surveys will establish baseline awareness levels and identify brand associations to leverage in marketing campaigns.

2. Target Market Needs: Focus group discussions will inform survey design, ensuring that quantitative data reflects real consumer preferences.

3. Positioning & Messaging: Interviews will test messaging concepts derived from earlier phases, ensuring they resonate with the target audience.

4. Pricing Strategy: Price sensitivity data from surveys will be cross-referenced with qualitative insights from interviews to finalize an optimal price point.

Advertising Strategy Copyright © 2026 Pearson Education, Inc.

To reach busy young adults:  Use social media platforms like Instagram and TikTok for recruitment ads targeting millennials and Gen Z.  Partner with fitness centers or coworking spaces frequented by this demographic.  Offer incentives such as gift cards or product samples to encourage participation.

This comprehensive approach ensures that Rise and Recharge is positioned effectively in the market while aligning with consumer needs, perceptions, and willingness to pay.

Again, there are numerous plans the students can come up with to address these questions.

CHAPTER 6 EVALUATING SURVEY DATA COLLECTION METHODS LEARNING OBJECTIVES In this chapter you will learn: 6.1 Explain the advantages of using surveys in marketing research and classify the various modes of survey administration (e.g., online, in-person, paper, telephone) 6.2 Compare and contrast the advantages and disadvantages of conducting surveys online 6.3 Evaluate the benefits and drawbacks of conducting in-person surveys for marketing research 6.4 Critically evaluate the suitability of paper surveys for marketing research projects 6.5 Analyze the strengths and weaknesses of using telephone surveys in marketing research 6.6 Describe the concept of mixed-mode surveys and their applications in marketing research 6.7 Evaluate the advantages of using panel companies for data collection in marketing research 6.8 Apply criteria such as cost, speed, and data quality to compare different data collection methods for a marketing research project Copyright © 2026 Pearson Education, Inc.

CHAPTER OUTLINE Modes of Data Collection in Survey Research o Standardization o Efficiency o Ease of Administration o Scalability o Suitability for Statistical Analysis Online Surveys 

Advantages and Disadvantages of Online Surveys o Advantages of Online Surveys  Increased Speed  Highly Efficient  Real-Time Data Tracking  User-Friendly Survey Platforms  Use of Images and Audiovisuals  Reduction of Interview Evaluation Concerns in Participants o Disadvantages of Online Surveys  Require Computer-Literate and Internet-Connected Participants  Participant Misrepresentation

In-Person Surveys 

Advantages and Disadvantages of In-Person Surveys o Advantages of In-Person Surveys  Feedback  Rapport  Quality Control  Adaptability o Disadvantages of In-Person Surveys  Humans Make Errors  Slow Speed  High Cost  Social Desirability Bias

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Settings of In-Person Surveys o In Homes o In Public Settings o In Offices Copyright © 2026 Pearson Education, Inc.

Paper Surveys  Types of Paper Surveys o Group Self-Administered Surveys o Drop-Off Surveys o Mail Surveys 

Advantages and Disadvantages of Paper Surveys o Advantages of Self-Administered Surveys  Good Accessibility  Participant Control  Reduced Social Desirability Bias

o Disadvantages of Self-Administered Surveys  Higher Costs  Quality Control Issues  Lack of Monitoring Telephone Surveys  Advantages and Disadvantages of Telephone Surveys o Advantages of Telephone Surveys  Low Cost  High Quality  Quick Turnaround  Wider Reach o Disadvantages of Telephone Surveys  Declining Response Rates  Limited Ability to Use Visuals  No Observation of Body Language or Facial Expressions  Length Limitations  Limitations on Question Type

Mixed-Mode Surveys  

Advantages and Disadvantages of Mixed-Mode Surveys o Advantages of Mixed-Mode Surveys  Multiple Avenues to Achieve Data Collection Goal Disadvantages of Mixed-Mode Surveys

Working with a Panel Company 

Advantages and Disadvantages of Using a Panel Company o Advantages of a Panel Company  Fast Turnaround Copyright © 2026 Pearson Education, Inc.

   

High Quality Database Information Targeted Respondents Integrated Features

o Disadvantages of Using a Panel Company  Not random samples  Overused participants  Higher cost Choosing the Survey Method 

How Fast Is the Data Collection?

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How Much Does the Data Collection Cost?

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How Good Is the Data Quality?

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Other Considerations

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Ethics of Data Collection

KEY TERMS Central location telephone surveying Completely automated telephone survey (CATS) Computer-assisted in-person survey (CAPI) Computer-assisted telephone interviews (CATI) Drop-off survey Group self-administered survey In-home survey In-office survey In-person survey Incidence rate Copyright © 2026 Pearson Education, Inc.

Intercept survey Mail survey Mixed-mode survey Mobile survey Nonresponse Online survey Paper (or paper-and-pencil) survey Self-administered survey Self-selection bias Social desirability bias Survey Telephone survey TEACHING SUGGESTIONS 1. A field trip to a local telephone interview company does a great deal in the way of illustrating how this survey mode operates. If there is an interview service in your city, consider such a field trip, or if this is not feasible, have a representative from the company speak to the class about the company’s operations. Alternatively, with a Google or Bing search, it may be possible to find a telephone (or other data collection) company website with videos on the company’s operations.

2. It is possible to illustrate self-selection bias in students with a quick exercise. Give students the following set of topics and have them indicate how they would respond to an online survey request in each case. Use a show of hands or actual count of the responses to illustrate that some topics are inherently interesting and garner more response than uninteresting topics.

Instructions. You pick up your mail, and you find a mail survey in it. How likely would you be to take 15 minutes to fill out the questionnaire and return it if it concerned each of the following topics?

Topic

Would you fill out the survey and send it back?

Definitely Would

Definitely Would

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Unsure

Not

Automobile maintenance

_________

__________

________

Dental hygiene

_________

__________

________

Personal safety on campus

_________

__________

________

Baby care

_________

__________

________

Recycling

_________

__________

________

Foreign trade with Chile

_________

_________

________

3. A large number of studies have addressed mail survey response rates. Have each student select a single incentive tactic such as advance postcard or monetary incentive, and perform research on it, ideally with some database search service maintained by your university library or otherwise available to your students. Instruct students to prepare a 3–5-minute summary class presentation on their topics.

4. Incidence rates can be illustrated with students’ families. With a show of hands, determine the percentage of students whose parents now own each of the following: (1) a cat, (2) a Ford pickup truck, (3) an iPhone X (or the most recent version), (4) a riding mower, (5) an American Automobile Association membership. The percentages will be analogous to incidence rates.

5. Ask students what creative approaches can be taken when a researcher requires a large amount of information. Suppose, for instance, that a researcher is investigating attitudes toward the preservation of natural habitats, and the survey includes a battery of lifestyle questions, many attitude questions on wildlife and habitat preservation, extensive demographics, plus many opinion questions on specific state parks, national parks, public lands, and recreational areas. The questionnaire takes 60 minutes to complete when self-administered, and 90 minutes to complete when administered by an interviewer. What approaches can be used to overcome this amount of information difficulty?

Some suggestions that may arise from class discussion include: a. Divide the questions into three or four surveys and administer them at separate times to the same respondents b. Provide a very large incentive (say, a lottery of $500) c. Pay respondents for their time Copyright © 2026 Pearson Education, Inc.

d. Send out a huge number of survey invitations and see what comes back e. Pay interviewers extra compensation for completing more than a certain minimum number 6. Describe to your students the survey method selection phase of a recent survey with which you have been involved. Describe the survey’s circumstances, what modes were considered, and how the final selection was made.

7. Privacy issues continually challenge marketing researchers who conduct surveys.

Students protect their privacy just like typical consumers. Ask students to identify the various ways they protect their telephone privacy (such as answering machines, caller identification, etc.), and for each one have them discuss the challenge(s) posed to marketing researchers. What can researchers do to entice consumers to take part in surveys? This topic can quickly degenerate to telemarketer bashing, so be prepared to divert the discussion toward what strategies ethical marketing researchers might consider in order to increase response rates.

8. Computer-assisted interview and web-based formats are common and constantly evolving. There may be articles in the Marketing News, Quirk’s Marketing Research Review, or other marketing research practitioner literature that describe variations or pros and cons of the various types. Alternatively, students can do a simple Internet search and find companies with these products and services. Most have extensive descriptions of their capabilities and many offer trial usage. Have students share their findings either with short presentations or in a discussion format.

9. Panel companies have become one of the most common forms of data collection. A quick Internet search reveals there are a wide range of choices available. Assign students or student teams to investigate specific companies to determine how they relate to the various advantages and disadvantages of using a panel company described in the chapter. Short class presentations or perhaps postings on a discussion board can be done so students can share the findings.

10. Marketing Research Insight (MRI) 6.1 illustrates how chatbots are emerging as a valuable tool for data collection. The chatbots allow one-to-one interaction with customers without the need for a human managing the conversation in real time.

Something to point out to students is that much of the transition from old to new methods took place in the first decade of the 21st century, so it has been a very rapid transition to computer-based data collection methods by the marketing research industry.

ACTIVE LEARNING EXERCISES Experience the Advantages of Surveys Copyright © 2026 Pearson Education, Inc.

Standardization.

How have the response options for Questions 2 and 3 standardized the survey? In other words, what answers might have occurred if you did not give your respondents these specific response categories from which to pick?

By limiting the responses to “yes” or “no” (Question 1), and “Less than 1,” “Between 1 and 2,” “Between 2 and 4,” and “More than 4” the respondents are constrained as to their answers. For Question 1, open-ended answers might be “I don’t know,” “Some,” or “At the sports bar.” For Question 2, open-ended answers might be “I don’t know,” “A few,” “I don’t recall,” or “Mostly.” Unstandardized answers are messy and require content analysis to summarize.

Ease of Analysis.

What percentage of your friends who took part in the survey watched television last night?

What percentage of them watched TV for 4 or more hours? How long did it take you to tabulate the answers to these questions? Also, depending on whether the respondents checked off or voiced the answers, how did this affect the task of analysis?

It makes analysis very quick and easy. All one needs to do is to sum up the check marks for each possible answer and divide by all to obtain percentages.

Ease of Administration.

How difficult was it to administer the survey? One way to answer this is to estimate how long it took you, on average, to obtain each respondent’s answers.

It might take 5 seconds to complete this, 10 at the most. Handing it to the respondent is the simplest administration possible.

Get Beneath the Surface.

Do your friends watch television mostly for entertainment, education, or escape? Tabulate the answers to Question 3 to find out. Notice that with a single question you have discovered the reasons (i.e., motivations) for your friends’ television viewing.

Absolutely, now we know why they watch TV. Subgroup Differences.

Do the answers from the two males differ from those of the two females? Do separate percentage tabulations for each gender and compare them. In a matter of a few minutes, you can spot whether or not differences exist in the subgroups and what the differences are.

All one needs to do is to divide the sheets into males and females and then tabulate the percentages. There may or may not be apparent differences depending on each student’s friends, but the point is that the analysis is greatly facilitated by the questionnaire’s format.

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Setting Up Controls for a Telephone Interview Quality Assurance Procedure

Recommended Procedure

The student team member interviewers should call the right students at the proper times of the day.

They must conduct the interviews correctly by reading the instructions and “skipping” questions as required by the respondent’s answers.

The 20 interviews should be conducted on schedule.

Require them to keep detailed logs of their calling, and do random callbacks of respondents and ask what time of day the survey took place.

Require that they turn in completed questionnaires daily; check their work carefully at first until you are sure they are doing them properly.

Interviewers should be instructed on how to handle “no answers” and answering machines.

A mechanism should be in place to detect bogus interview data in case some interviewers decide to submit false results.

Set up a quota system or expect them to turn in “x” completed questionnaires every so many days.

Keep a calling log and call back these individuals. It is not appropriate to leave a message as the respondents will probably not call when the interviewer is in.

Call back a random sample of each interviewer’s completions to verify that the respondents did, in fact, take part in the survey.

Learn About Online Marketing Research Survey Platforms Students should find and select different online survey software systems such as Qualtrics, Survey Monkey, Google Surveys, etc. The answers below pertain to Qualtrics, but most of such systems are quite similar.

1. How do you create the following question and answers on this system: Have you purchased something at a Best Buy store in the past month?

Yes

No

With Qualtrics, use ―Create a New Question,‖ and the default question is a multiple choice one. Copy or type the question, ―Have you…‖ into the question text area, and copy or type Yes and No into the question responses spots.

2. What is skip logic, and how does it work on this system if you want the respondents who did purchase something at Best Buy to indicate whether they bought a 4K Ultra HD TV?

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Skip logic is a branching operation that determines what is the next question based on the answer to the current question.

Question: Did you purchase a TV at Best Buy in the past, for example, 30 days?

Yes

No

Skip logic: If yes, ask: Was the TV a 4K Ultra HD TV? Yes

No

If the answer is no, skip over the ―Was it…‖ question to the next question.

3. Is the system user friendly? Why or why not?

Qualtrics, like most systems, is ―point and click.‖ Although highly detailed, the system is quite user friendly. (Students may, however, in their first encounter, be overwhelmed with the many features and options in any given system.)

4. What feature best demonstrates that this system is using sophisticated computer and/or Internet technology?

Qualtrics has many sophisticated/Internet technology aspects, including:  Entirely web-based, so no downloading and installing software  Published surveys reside on Qualtrics’ server, so simply provide the survey URL to respondents  Online help and tutorials  Mobile administration format (e.g., on a smartphone or tablet) is an option 

Built-in data analysis and report generation

ANSWERS TO END-OF-CHAPTER QUESTIONS 6-1. List the major advantages of survey research methods over qualitative methods. Can you think of any drawbacks, and if so, what are they?

The advantages are listed in Table 6.1 and repeated following.

Advantage Description Standardization

Ensures that participants get the same questions in the same way with consistent response options

Efficiency

Collects data from a large group quickly and inexpensively

Ease of Administration Can be designed and delivered in various formats (e.g., online, in-person, paper, telephone) Copyright © 2026 Pearson Education, Inc.

Scalability

Sample size can be adjusted to fit the research needs

Suitability to statistical analysis Standardization allows for efficient data analysis using statistical methods The drawbacks are listed under each of the three types of surveys.

For person-administered surveys, personal interviewers are slower. They are prone to errors, and although personal interviewers can handle pictures, videos, and graphics, they cannot accommodate them as easily as a computer. Often, personal interviewers simply record respondents’ answers using pencil and paper, which necessitates a separate data-input step to build a computer data file. Finally, some respondents do become apprehensive about the reactions of a human interviewer to their answers.

Computer-assisted surveys must have some disadvantages. Although computers are relatively inexpensive at present, there are significant costs involved in computer design, programming, debugging, and setup, which must be incurred with each survey.

These costs, including the time factor associated with them, often render computeradministered delivery systems for surveys unattractive relative to other data collection options.

Self-administration places control of the survey in the hands of the prospective respondent. Hence, this class of survey poses the possibilities that respondents will not complete the survey, will fill it out incompletely, will answer questions erroneously, will not respond in a timely manner, or will refuse to return the survey at all.

6-2. What are the two primary reasons for changes in data collection methods due to technology?

In the past two decades, there has been a dramatic decline in the willingness of the general public to take part in surveys, and, second, computer and telecommunications technology has advanced significantly and opened new, efficient ways for marketing researchers to collect data.

CATI systems greatly improved the productivity of telephone interviewers through automated dialing, tracking performance statistics that could be reported back to management, and enabling the programming of skip patterns and other logic.

Telephone surveys have been largely supplanted by Internet-based or online surveys that afford a host of efficiencies. The newest and currently most popular form of data collection is the use of panels, which are immense groups of potential respondents who are recruited and compensated by companies that provide access to them for a fee. Such panel companies, normally online, guarantee researchers access to practically any identified population with maximum speed and minimal data collection errors.

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6-3. What aspects of online surveys make them attractive to marketing researchers? What aspects make them unattractive?

Online surveys offer numerous advantages compared to other forms of surveying. Six of these advantages are increased speed, they are highly efficient, they give researchers the ability to track data in real time, they involve user-friendly platforms, they allow the use of images and audiovisuals, and they reduce the interview evaluation concern in participants.

Disadvantages of online surveys include their need for computer literacy and reliable Internet access, as well as their potential for fraud.

6-4. What aspects of in-person surveys make them attractive to marketing researchers?

In-person surveys have four unique advantages: They offer feedback, rapport, quality control, and adaptability. The presence of an interviewer allows for on-the-spot instructions and helps respondents to stay on task. The drawbacks to using human interviewers are human error, slowness, cost, and interview evaluation.

6-5. What are the advantages of in-person over self-administered paper surveys, and vice versa?

Overall, person-administered surveys have the four unique advantages of feedback, rapport, quality control, and adaptability. Self-administered surveys can have reduced cost, respondent control, and reduced interview evaluation apprehension. The advantages of person-administered surveys over self-administered surveys are rapport and adaptability. The advantages of self-administered surveys over personadministered surveys are reduced cost and respondent control.

6-6. What would be the motivation for a researcher to consider a mixed-mode survey?

With a mixed-mode approach, a researcher uses two or more survey data collection methods to access a representative sample. This mixture is used in order to use the “pluses” or advantages of more than one survey method.

6-7. Indicate the differences between (a) in-home surveys, (b) public setting intercept surveys, and (c) in-office surveys. What do they share in common?

The major differences pertain to location—in-home versus public settings versus inoffice. The common factor is that all three fall under the category of a personadministered survey.

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6-8. What are the advantages and disadvantages of telephone surveys? How do declining response rates and technological changes impact the viability of telephone surveys?

The reasons are embodied in the three advantages of telephone surveys. Advantages of telephone interviews are cost, quality, and speed. Disadvantages include declining response rates, limited ability to use visual aids, no observation of body language and facial expressions, length limitations, and limitations on question type.

6-9. Indicate the pros and cons of telephone surveys.

Advantages of telephone interviews are low cost, high quality, and speed.

Disadvantages include declining response rates, limited ability to use visual aids, no observation of body language and facial expressions, length limitations, and limitations on question type.

6-10. What advantages do online surveys have over telephone surveys?

Online surveys offer real-time data tracking and the ability to use audiovisuals. They are also faster and less costly relative to telephone surveys.

6-11. Explain the characteristics of self-administered surveys, including group selfadministered surveys and drop-off surveys.

It is important that students realize that “self-administered” refers to paper-and-pencil questionnaires as well as online surveys. A group self-administered survey entails administering a questionnaire to participants in groups rather than individually, for convenience and to gain economies of scale. Group self-administered surveys economize in time and money because a group of participants participates at the same time.

Another variation of the self-administered survey is the drop-off survey, sometimes called drop off/pick up (DOPU), in which the survey representative approaches a prospective participant, introduces the general purpose of the survey to the prospect, and leaves it with the participant to complete. Essentially, the objective is to gain the prospective participant’s cooperation. Participants are told that the questionnaire is self-explanatory and that it will be left with them to fill out at their leisure.

Perhaps the representative will return to collect the questionnaires at a certain time, or the participant may be instructed to complete and return it by prepaid mail. In the case of pick-up, the representative will return on the same or the next day to collect the completed questionnaires. In this way, a representative can cover several residential areas or business locations in a single day with one drop-off pass and one pick-up pass.

Drop-off surveys are especially appropriate for local market research undertakings, in which travel is necessary but limited. They have been reported to have quick Copyright © 2026 Pearson Education, Inc.

turnaround, high response rates, minimal interviewer influence on answers, and good control over how participants are selected; plus, they are inexpensive.

6-12. How does a drop-off survey differ from a regular mail survey?

Both are self-administered surveys. A mail survey is sent and returned through the mail system, while a drop-survey is “delivered” by a person to the prospective respondent. It is then either picked up at a later date or the respondent may mail it. A drop-off survey is restricted to a small geographic area such as a subdivision or apartment complex, while a mail survey can be sent to a nationally representative sample. The drop-off method gathers responses in a day or so, while the mail survey takes weeks.

6-13. What is a panel company, and why are such companies dominating survey data collection today?

Rising to the forefront of data collection is a special kind of marketing research institution known as a panel company. A panel company recruits large numbers of potential respondents who agree to take part in surveys for compensation. Some panel companies claim to have hundreds of thousands of members worldwide, and a few claim 1 or 2 million. These respondents agree to reply to any survey quickly and to provide complete and truthful answers. Normally, the panel members are motivated by points or a similar awards system that accumulates as they take part in surveys, which they can redeem for products and/or services.

Panel companies offer fast turnaround, high quality, large databases, access to targeted respondents, and can integrate features and other services for customers.

6-14. How does the incidence rate affect the choice of a data collection mode?

The incidence rate is the percentage of the population that possesses some characteristic necessary to be included in the survey (such as percentage of Amazon Fire users or Kindle owners in the general population).

Expensive data collection modes will result in a large expense just to find qualified respondents in low incidence populations, while less expensive data collection modes will not incur such large costs. By estimating the incidence rate for the survey, the researcher can judge how costly it will be to gain access to qualified respondents with various data collection modes.

6-15. Is a telephone interview inappropriate for a survey that has as one of its objectives a complete listing of all possible advertising media a person was exposed to in the past week? Why or why not?

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This question can be answered by applying the survey time horizon and budget constraints. Phone surveys can be executed very quickly and inexpensively, so there are no reasons to object to a telephone interview on these criteria. With regard to “special considerations,” the question does not specify hard-to-reach individuals or complicated tasks. The questions are straightforward (“Did you read a newspaper in the past week?”), nor are there many questions (newspapers, magazines, television, radio, billboards, and mail), nor are the questions sensitive. So telephone interviewing is appropriate.

6-16. Uber Eats is a food delivery app from Uber that is available seven days a week and most hours of the day or night. By downloading the Uber Eats app, users can identify menu items at local restaurants, place their orders, and be assured that an Uber driver will deliver the food to their location within a specified number of minutes. Uber Eats competes with other food delivery companies such as Takeout Ex-press, Waitr, Grubhub, and Foodler, as well as the delivery services of restaurants themselves. In order to assess its competitiveness, Uber Eats wants to do a survey that measures customer satisfaction with Uber Eats and each of several competitors. Comment on the pros and cons of each of the following possible survey methods for the Uber Eats survey. a. A telephone survey using the cell phone/text numbers of 1,000 recent Uber Eats users Pros: Inexpensive, yields a high-quality sample, and are quick.

Cons: No physical interaction, does not allow for judgments, no observation of body language.

A phone survey by Uber Eats might be effective for measuring short-term customer satisfaction of Uber Eats but may not have a basis of comparison with competitors. b. A mall-intercept survey of recent Uber Eats users Pros: Low cost, regional responses, ease of implementation, interaction with respondents.

Cons: May not represent a larger area, only targets shoppers, nonrepresentativeness.

This may be a less effective option for Uber Eats and the population of mall shoppers may be different than the population that utilizes food delivery services. c. An online survey broadcast via text message with the survey URL to 1,000 recent Uber Eats users

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Pros: Collection of large amounts of data, specifically targets Uber Eats users, standardization, efficiency, ease of administration, can tap the “unseen” sensitive to subgroup differences.

Cons: Respondents must be computer-literate and Internet-connected, respondent fraud.

This may be an excellent option for Uber Eats as they can target specific users of the product. Since users are ordering with an App, it is safe to assume they are computer literate and internet connected, thus eliminating the majority of the cons. d. Placing a post-card sized survey with delivered food asking users to fill it out and drop it in the mail Pros: Self-administered, lists are readily available, can access specific groups.

Cons: High rate of nonresponse and self-section bias.

This is unlikely to be an effective survey technique for Uber Eats. If most of their customers are ordering from mobile technology, those customers are less likely to complete a paper survey than an online survey.

6-17. Discuss the feasibility of each type of survey mode for each of the following cases: a. Polo wants to test a new cologne scent called “Extreme Red.” b. Snagjob needs to determine how many businesses expect to hire temporary administrative assistants for those who go on vacation in the summer. c. Funbrain, an online educational games company, requires information on the degree to which parents of children in elementary school see online math and reading games as worthwhile purchases for their children’s education. d. Sony is considering developing a $1,700 robotic dog with a camera in its nose so it recognizes people and another in its tail to map your home, and wants to know people’s reaction to it. a. Polo In-Home Interview—works but will be expensive Mall-Intercept Interview—works and reasonable in cost In-Office Interview—not appropriate for a consumer product test Copyright © 2026 Pearson Education, Inc.

Central Telephone Interview—cannot use smell Computer-Assisted Telephone Interview—cannot use smell Fully Computerized Interview—difficult to use smell Online survey—cannot use smell Mail Survey—works but low response rate Group Self-Administered Survey—could work but administration difficult Drop-Off Survey—works and reasonable in cost b. Snagjob In-Home Interview—incidence rate too low to work Mall-Intercept Interview—incidence rate too low In-Office Interview—works but relatively expensive Central Location Telephone Interview—works and inexpensive Computer-Assisted Telephone Interview—works but not economical unless national survey Fully Computerized Interview—won’t work due to office “gatekeepers” Online Survey—works if there is a list of individuals at businesses to contact to take part Mail Survey—works but response rate will be low Group Self-Administered Survey—could be used at several national business conventions Drop-Off Survey—works if target companies are in a concise geographic area such as an industrial park or large office building c. Funbrain In-Home Interview—appropriate assuming mothers need to see examples of Funbrain materials Copyright © 2026 Pearson Education, Inc.

Mall-Intercept Interview—appropriate and less costly than in-home In-Office Interview—inappropriate as will miss “at-home” mothers Central Location Telephone Interview—works unless examples and materials must be viewed by respondent Computer-Assisted Telephone Interview—works unless examples and materials must be viewed by respondent Fully Computerized Interview—works unless examples and materials must be viewed by respondent Online Survey—works best with an online panel, but could work if there were a list of qualified respondents to contact via email Mail Survey—could work with proper incentives to increase response rate Group Self-Administered Survey—could work at PTA or PTO meetings Drop-Off Survey—could work but in a limited geographical area d. Sony In-Home Interview—appropriate as system would need to be viewed Mall-Intercept Interview—appropriate assuming mall intercept company has space to set up equipment and allow respondents to view and/or use it In-Office Interview—inappropriate due to set-up time unless target market was executives who might want visual conference call services Central Location Telephone Interview—would work only as a “concept” test Computer-Assisted Telephone Interview—would work only as a “concept” test Fully Computerized Interview—would work only as a “concept” test Online Survey—would work as graphics and even video can be embedded in an online survey. Also, Samsung has a very diverse market, so the wide scope of online surveys is appropriate.

Mail Survey—would work only as a “concept” test but subject to nonresponse

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Group Self-Administered Survey—works if the system can be demonstrated in front of a large group of people Drop-Off Survey—Too limited in scope, might work as a very limited “concept” test 6-18. Google is an American multinational technology company, well-known for its search engine technology. It hosts an annual Google Cloud exhibition showcasing its latest innovations and products. As part of their market research strategy, they implemented an online survey during the exhibition. Attendees are encouraged to take a brief three-minute survey using their mobile phones, leveraging a dedicated online survey QR code provided

by Google. Think carefully and identify what data collection method is being used here.

What limitations of this method are overcome by the way Google implements it? Is this approach consistent with current trends in marketing research surveys?

Google is using an online survey. The Internet-based questionnaire, also called a “web survey” or an “online survey,” allows respondents to answer questions online and has become the industry standard for surveys in virtually all high-Internet-penetration countries. Internet-based online surveys are fast, easy, and inexpensive. The questionnaires accommodate all standard question formats, and they are very flexible, including the ability to present pictures, diagrams, or displays to respondents.

Smartphone versions of online surveys are evolving. Online surveys have earned varying levels of popularity around the world, but online surveys do require some technical skills and have unique practical challenges such as scrolling pages and appearance. These challenges are especially relevant when large numbers of respondents prefer to take surveys using mobile or smartphones. Online data collection has profoundly changed the marketing research landscape, particularly in the case of online panels.

6-19. QuikQuest Engage Corporation has developed a stand-alone computerized interview system that can be adapted to almost any type of survey. It can be loaded onto a tablet computer, which allows participants to directly answer questions using a stylus. Indicate the appropriateness of this interviewing system for each of the following cases: a. A survey of plant managers concerning a new type of hazardous waste disposal system b. A survey of high school principals to see if they are interested in a company’s learning management system for the administration, documentation, tracking, reporting, and delivery of courses c. A survey of consumers to determine their reactions to a nonrefrigerated variety of yogurt

a. A survey of plant managers concerning a new type of hazardous waste disposal system Copyright © 2026 Pearson Education, Inc.

Appropriate. It will save time, keep the managers’ attention, and pictures, diagrams, and tables could be used. b. A survey of high school principals to see if they are interested in a company’s learning management system for the administration, documentation, tracking, reporting and delivery of courses.

Appropriate. Assuming the videos could be previewed on the computer screen and sound was supplied as well, the approach could be effective. c. A survey of consumers to determine their reactions to a nonrefrigerated variety of yogurt Inappropriate. The survey would most probably require a taste test. Even if not, the Compu-Ask approach would be overkill. Traditional methods such as mall-intercept are satisfactory.

6-20. A researcher is pondering what survey mode to use for a client that markets a home security system. The system consists of tiny motion sensors that are pressed onto all of the windows and doors. Once connected with Amazon Echo, Google Home, Apple HomePod, or another digital assistant, when a sensor is activated, the system turns on lights, emits a warning sound, activates webcams, and texts the owner, depending on what devices and capabilities are linked. The client wants to know how many home-owners in the United States are aware of the system, what they think of it, and how likely they are to buy it in the coming year. Which consideration factors are positive and which are negative for each of the possible survey modes: (a) in-home interview, (b) mall intercept, (c) online survey, (d) drop-off survey, and (e) CATI survey?

Students will need to make assumptions about the circumstances of the client and the survey. Reasonable assumptions and their implications for the alternative survey modes are noted below.

Survey data collection time horizon. Assuming it is short, it discourages in-home interviews, but mall intercepts, online survey, drop-off survey, and telephone survey are reasonable.

Survey data collection budget. Assuming it is limited, it discourages in-home interviews and perhaps mall intercepts, while online survey, drop-off survey, and telephone survey are candidates.

CASE SOLUTIONS Case 6.1 Machu Picchu National Park Conducts a Survey of Tourists Copyright © 2026 Pearson Education, Inc.

Case Objective This case will necessitate analysis of the circumstances surrounding a survey and recommending and defending a data collection method.

Answers to Case Questions 1. If the questionnaire is designed as an online survey, will it be successful? Why or why not?

The incidence rate for visitors to Peru and Machu Picchu is so low that even an expensive online survey will probably not gain many respondents. If the park can obtain email addresses of visitors and then contact them a week or more (to allow them to return home) later, an online questionnaire can be successful.

2. If the park department uses a mail survey, what issues must be resolved? Will it be successful? Why or why not?

First, they must obtain the mailing addresses of visitors to Machu Picchu meaning that there must be some registration procedure instituted. International mailing issues and different languages will have to be resolved. Some incentive system will need to be designed as mail surveys have low response rates. The surveys need to go out continuously, so the experiences are fresh in the minds of respondents. A mail survey could be successful if these issues were resolved; however, it will still suffer from selfselection bias.

3. If each of the hotels in the Machu Picchu area desires to know how its customers felt about its services, prices, and accommodations, how might the park department and the hotels work together on data collection to affect a mutually beneficial survey?

The park department and the hotels could use a “drop-off” type of survey that would be distributed in tourists’ hotel rooms. This approach is common in the hotel industry, but there would need to be some coordination among the hotels for “standard” questions as the hotel questions would be the same across all hotels. The other questions would concern the Machu Picchu and Peru visit experiences that are of interest to the park department.

4. Knowing that the Peruvian national park department has meager resources for marketing research, suggest a different method (not online, not mail, and not partnering with the local hotels) that has the potential to yield a high response rate and high-quality responses.

There are two occasions in the Machu Picchu experience when all visitors will have “idle” time. One is during the bus ride down the mountain, and the other is during the train ride back to Cusco. Questionnaires could be handed to tourists as they load on the bus and collected at the end of the bus ride down. Alternatively, the park service could Copyright © 2026 Pearson Education, Inc.

work with Peru Rail, the railway company, to hand out the questionnaires to tourists and ask them to complete them during the 3-hour ride back to Cusco. In either case, the experiences would be fresh in the minds of respondents, and this fact would contribute to the quality of the survey. (In fact, Peru Rail does administer its own satisfaction survey on board on the return trip.)

Case 6.2 Advantage Research Chooses Data Collection Methods for Three Clients’ Surveys Case Objective Students must assess the appropriateness of various data collection methods with the case of Advantage Research, Inc. The survey should yield a respondent profile that reflects the demographic appropriate to various and specific customers.

Answers to Case Questions 1. For each client’s survey, take each of the nine data collection methods identified in this chapter and specify what you think is the strongest and weakest aspects of using that data collection method for the client’s survey situation. a) In-home survey—In-home surveys are useful when the research objective required a respondent’s physical presence to see, read, touch, use, or interact with the research object, such as a product prototype.

Client Client 1: The Rise of Esports

Strongest Aspect Respondent can experience presentations

Client 2: The Sustainable Packaging Solution

Green consumers prefer sustainable packaging but incidence rate may be low if most consumers are indifferent

Client 3: The Fitness App Revolution

High incidence rate

Weakest Aspect Most people do not consume Esports so incidence rate is abysmally low No need for face-to-face interview

Overly expensive to survey United States and Canada

b) Public setting (intercept) survey—This method is one in which respondents are encountered and questioned while visiting a public setting.

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Client Client 1: The Rise of Esports

Strongest Aspect Respondent can experience presentations

Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Higher incidence rate among environmentally conscious individuals High incidence rate

Weakest Aspect Incidence rate may be low due to limited consumer interest No need for face-to-face interview Public setting shoppers do not represent all U.S. and Canada potential buyers

c) In-office survey—This method often works well with businesspeople and may not be appropriate for any of the clients.

Client Client 1 The Rise of Esports Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Strongest Aspect Easy to provide visuals

Weakest Aspect Expensive

None: in-office survey is for business products

B2B product not B2C, so incidence rate is abysmally low

None: in-office survey is for business products

B2B product not B2C, so incidence rate is abysmally low

d) Telephone survey—If physical contact is not necessary, a telephone interview could be an attractive option. The telephone is an inexpensive way to collect high quality information.

Client Client 1: The Rise of Esports

Strongest Aspect Inexpensive

Weakest Aspect Incidence rate may be low due to limited consumer interest (unless use a panel company’s B2C’s Copyright © 2026 Pearson Education, Inc.

Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Inexpensive

Inexpensive

respondents) High refusal rate (may result in nonrepresentative sample) High refusal rate (may result in nonrepresentative sample)

e) Fully automated survey—CATS is an automated telephone survey.

Client Client 1: The Rise of Esports

Strongest Aspect Inexpensive

Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Inexpensive

Inexpensive

Weakest Aspect Very high refusal rate (may result in nonrepresentative sample) Very high refusal rate (may result in nonrepresentative sample) Very high refusal rate (may result in nonrepresentative sample)

f) Online survey—These surveys are fast and inexpensive. They generate a lot of data and are flexible. Many can also be done on a smartphone.

Client Client 1: The Rise of Esports

Strongest Aspect Inexpensive

Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Inexpensive

Inexpensive

Weakest Aspect Incidence rate may be low due to limited consumer interest (unless use a panel company’s B2C’s respondents) High refusal rate (may result in nonrepresentative sample) High refusal rate (may result in nonrepresentative sample)

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g) Group self-administered survey—This survey methodology is best when working for economies of scale. All respondents are in the same location and respond to a written questionnaire. This might be effective for client #1 if a demonstration of the product is given, but less effective for clients #2 and #3. Client #2 needs to determine which method of promotion is best based on location, and all respondents will not be in the same location. Client #3 would need to experience the toothbrush sanitizer and app, which would probably be most effective in a more private area, not in a group setting.

Client Client 1 The Rise of Esports

Strongest Aspect Inexpensive

Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Inexpensive

Inexpensive

Weakest Aspect Incidence rate may be low due to limited consumer interest (unless use a panel company’s B2C’s respondents) High refusal rate (may result in nonrepresentative sample) High refusal rate (may result in nonrepresentative sample)

h) Drop-off survey—This type of survey is given to a prospective respondent and then left with the respondent to fill out on their own.

Client Client 1: The Rise of Esports Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Strongest Aspect Inexpensive Inexpensive

Inexpensive

Weakest Aspect Impractical to drop off surveys to potential viewers Only good for local studies; will not represent four states well Only good for local studies; will not represent the United States and Canada

i) Mail survey—This type of survey does not use interviewers and are inexpensive on a mass-mailing basis. However, there is often a lack of response and a natural selfselection bias with this type of survey.

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Client Client 1: The Rise of Esports Client 2: The Sustainable Packaging Solution Client 3: The Fitness App Revolution

Strongest Aspect Inexpensive

Weakest Aspect Very low response rate

Inexpensive

Very low response rate

Inexpensive

Very low response rate

2. Based on your analysis from the preceding question, and taking into consideration any other relevant aspects, decide which is the best data collection method for each client’s survey. Defend your choice in each case.

The X’s in the following table indicate data collection methods that could work for each of the respective clients. Other methods are less practical, more expensive, and/or fail to obtain representative samples.

Method

Client 1: The Rise of Esports

Client 2: The Sustainable Packaging Solution

Client 3: Sanitize toothbrush with app

In-home interview Public setting (intercept) interview In-office interview Telephone interview

X

Fully automated interview Online survey

X

Group selfadministered survey Drop-off survey Mail survey

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X

3 Assume that you are the project director recommending the data collection method you have chosen for each client’s survey in the preceding question, but during the next daily meeting, Joe and the other project directors vote your recommendations down. What is the next best data collection method in your mind for each client’s survey? Defend your choice in each case.

Responses will vary based on the first methods chosen by the student, and their second choices. There should be a strong argument for the advantages and disadvantages of the new choices.

CHAPTER 7

UNDERSTANDING MEASUREMENT, DEVELOPING QUESTIONS, AND DESIGNING THE QUESTIONNAIRE LEARNING OBJECTIVES In this chapter you will learn: 7.1 Relate the basic concepts of measurement as they pertain to scales use in marketing research 7.2 Differentiate the different types of measures used in marketing research 7.3 Compare various interval scales that are commonly used in marketing research 7.4 Explain reliable and valid measurement scales 7.5 Describe how to design a questionnaire 7.6 Explain the dos and don’ts of question development 7.7 Demonstrate questionnaire organization 7.8 Illustrate how computer-assisted questionnaire design works 7.9 Distinguish coding from pretesting in questionnaire finalization CHAPTER OUTLINE Basic Measurement Concepts Types of Measures Copyright © 2026 Pearson Education, Inc.

 Nominal Measures  Ordinal Measures  Scale Measures Interval Scales Commonly Used in Marketing Research  The Likert Scale  The Semantic Differential Scale  The Stapel Scale  Slider Scales  Two Issues with Interval Scales Used in Marketing Research  The Scale Should Fit the Construct Being Measured Reliability and Validity of Measurements How to Design a Questionnaire  The Questionnaire Design Process Developing Questions  Four Do’s of Question Wording o o o o

Focus on a Single Topic Be Brief Be Grammatically Simple Be Crystal Clear

 Four Don’ts of Question Wording o o o o

Do Not “Lead” the Respondent Do Not “Load” the Question Do Not Use a “Double-Barreled” Question Do Not Overstate the Case

Questionnaire Organization  The Introduction Copyright © 2026 Pearson Education, Inc.

o o o o o

Who Is Doing the Survey?

What Is the Survey Topic?

How Did You Select Me? Why Should I Participate?

Am I Qualified to Participate?

 Question Flow Computer-Assisted Questionnaire Design  Question Creation  Skip and Display Logic  Data Collection and Data Files  Data Analysis Including Graphs Ready-Made Respondents Finalize the Questionnaire  

Coding the Questionnaire Pretesting the Questionnaire

KEY TERMS “All that apply” question Anonymity Classification questions Coding Computer-assisted questionnaire design Confidentiality Disguised survey Display logic Double-barreled question Face validity Copyright © 2026 Pearson Education, Inc.

Halo effect Incentives Interval scale Introduction Leading question Lifestyle inventory Likert scale Loaded question Measurement Nominal measures Nonsymmetric interval scale Objective properties Ordinal measures Overstated question Pretest Properties Question bias Question block Question development Question evaluation Question flow Questionnaire Questionnaire design Copyright © 2026 Pearson Education, Inc.

Questionnaire organization Ratio scale Reliable measure Scale development Scale measures Screening questions Semantic differential scale Skip logic Skip question Slider scale Stapel scale Subjective properties Symmetric interval scale Transitions Undisguised survey Valid measure Warm-up questions TEACHING SUGGESTIONS 1. The measurement of a construct requires an operational definition. Instructors may want to review this concept and elaborate on how an operational definition indicates how a construct’s subjective and/or objective properties are measured on a scale. For instance, “purchase intention” may be operationally defined as a respondent’s indication on a 7-point scale where 1 corresponds to “not at all likely” and 7 pertains to “very likely” to purchase the brand at his/her next purchase.

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2. Scale development in an academic context is much more rigorous than in an applied context. If an instructor desires to bring this difference to students’ attention, Churchill’s scale development paradigm is a good vehicle. A slightly different approach would be to relate the scale development steps reported in a recent scale development article.

3. To help students understand the idea of measurable qualities, have them generate as many different rating aspects of one or more of the following:   

A convenience store A department store A new automobile

Use class discussion to point out how customers may harbor positive ratings on some qualities, but negative ratings on others, and how this information has important marketing implications.

4. Numerical versus letter grades can be used as an example of how higher-level scaling assumptions provide more information than lower-level ones. For instance, take numerical grades. Suppose one student has an 89 average, and another student has an 81 average. Assuming that 80–89 defines the “B” letter grade range, both are B students, but the 89 student is close to an A, while the 81 student is close to a C. This closeness is not contained in the ordinal letter grade system, but it is in the numerical ratio system.

Class discussion can focus on whether it is better to have a ratio scale (1–100 scale) or an ordinal scale (A–F scale) as a way to measure the goodness of students. How would students feel about a nominal system of pass-or-fail? Hopefully students will desire a more sensitive scale rather than a less sensitive one. The point is that with a low level scale, there is little information about the performance of the individual student.

5. It is useful to remind students of the inability of observation and most other qualitative methods to look into the minds of those people being studied. The reason for scaling stems from a need to standardize respondents’ answers into a consistent format that can be used to summarize and compare their answers.

An in-class exercise can be used to illustrate the need for and benefits of using standardized scales. Select some subject with some controversial or emotional aspect to it. Possible college examples include: dropping football from the athletic program to save money, requiring freshmen and sophomores to live on campus, creating a walking campus with no student or faculty vehicles allowed, or not awarding a diploma unless the graduating student signs an agreement to contribute 1% of his or her income to the alumni fund. Have students write down how they “feel” about the issue. Gather up the written comments and assign the task of compiling the reactions to a team of three or Copyright © 2026 Pearson Education, Inc.

four students. Once done, have other students observe how the team goes about the compilation task.

Class discussion should bring out the fact that the qualitative information required judgments along the way by the compilation team. Next, have students rate their feelings on the controversial topic using a 7-point negative-to-positive scale. Have a student team compile these responses with the rest of the class as observers. It should be apparent that the use of a rating scale greatly simplifies the judgments and compilation activities.

6. Lifestyles and their measurement is a good research topic. Assign the topic to a student or a student team to perform library research on it and report findings to the class. You may want to expand the assignment to include the Active Learning Exercise on the college student lifestyle in the chapter.

7. It is sometimes possible to demonstrate the halo effect to students by having them inspect the questionnaires from a survey that used a semantic differential or similar scale. Sometimes a respondent will place check marks all on one side, the other, or down the middle of the scale. Alternatively, students can see that a respondent has used the scale correctly when the check marks are consistent with the reverse positions of the scale items.

8. Contrasting a telephone questionnaire to one that is self-administered will emphasize how telephone administration constrains the choice of scales and further requires the interviewer to describe the scale to the respondent. With self-administered questionnaires, the format and instructions are facilitated by the visual context. Divide the class into two teams and have one team design a telephone questionnaire, while the other designs a mail questionnaire. The topic might be to determine the satisfaction level of car buyers with the automobile’s style, handling, fuel efficiency, and passenger compartment roominess. The need to tailor the questions to the form of data collection can be emphasized by comparing the two questionnaires.

9. The four “do’s” and four “do not’s” described in the chapter are not easy for students to remember. A “divide and conquer” strategy is to assign each student (or student team) one “do” or one “do not” with instructions to formulate a question that illustrates the error quite well. Students can share the questions they formulate in class. You might have a contest by class vote as to which one is the best (easiest to relate to or remember) for each of the four do’s and each of the four do not’s items. Prepare a list of the winners for distribution the next time you teach the class.

10. There are other computer-assisted questionnaire design programs on the market.

Many of these companies have websites, and some allow downloading of evaluation copies of their products. One approach is to have students or student teams review and demonstrate different computer-assisted questionnaire design software. Of course, we are partial to Qualtics, but this approach will reveal alternatives with particular Copyright © 2026 Pearson Education, Inc.

capabilities or features that apply to special types of questionnaire situations or question form. If student need help identifying these programs, here is a list that was supplied on the “SurveyMonkey” website at one time. Some of these may no longer exist but this list gives you an idea of how many different options you should have available given new ones frequently emerge.

Zoomerang™ Infopoll Inquisite Apian Software StatPac InstantSurvey SurveyCrafter Surveywire mantaINSIGHT CustomerSat QuickSense InSite

SuperSurvey Perseus Cool Surveys Hosted Survey SurveyGold EZSurvey PollPro ObjectPlanet Active Websurvey StatSurvey SurveyTrends Websurveyor

Greenfield Online PollCat Survey System SurveyView Survey Select Mercator SurveyHeaven SurveySaid SumQuest SurveySite LiveSurveys

ACTIVE LEARNING EXERCISES Construct a College Student Lifestyle Inventory Students must develop a lifestyle statement for each dimension using the recommendations in the Likert scale section—“With this scale, it is best to use ‘flat’ or plain statements and let the respondent indicate the intensity of his or her feelings by using the agree-disagree response continuum position.” Representative statements are provided in the table.

College Lifestyle Dimension Studying

Your statement I am a studious person.

Going out Working Exercising Shopping Dating Spending money

I enjoy going out.

I work to gain experience in my major.

I exercise regularly Shopping is a large part of my life.

I usually go out on dates as much as the average student.

I like to make purchases.

Identify and Reword “Bad” Questions

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Can you identify what is “bad” about a question and correct it? Here are some questions that might appear on a questionnaire. Each violates at least one of the dos-and-don’ts for question wording presented in this chapter. For each question, write a short description about what makes it problematic, identify the “do” or “don’t” it violates, and suggest a better version.

Bad Version of the Question How do you feel about car seats for infants?

What’s the error?

When your toddler wants to ride in the car with you as you run errands or pick up your older children at school, practice, or some friend’s home, do you use an infant car seat?

If using an infant car seat is not convenient for you to use, or when you are in a hurry and your toddler is crying, do you still go ahead and use the infant car seat?

How much do you think you should have to pay for an infant seat that restrains and protects your toddler in case someone runs into your car or you lose control of your car and run into a light post or some other object?

Shouldn’t concerned parents of toddlers use infant car seats?

Since infant car seats are proven to be exceptionally valuable, do you agree that infant car seats should be used for your loved ones?

Not grammatically simple

Lacks focus

Double barrel (not convenient; in a hurry; toddler is crying)

Not grammatically simple

Leading question Leading and loaded

Better Version of the Question How do you feel about requiring infants to ride in car seats?

Does your toddler usually ride in an infant car seat?

Make into three questions or three question parts: Do you use an infant car seat when: It is not convenient?

You are in a hurry?

Your toddler is crying?

How much do you think you should pay for an infant seat that protects you child in a car accident?

Parents of toddlers should use infant car seats. (agree-disagree scale) To what extent to you agree that infant seats protect infants in car accidents?

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Do you think that parents who are responsible citizens and who are aware of driving dangers use infant car seats?

If you had an accident with your toddler on board, do you believe an infant car seat could protect your child from being maimed?

Double barreled

Should parents use infant seats with their children?

Overstated

Do you believe that infant car seats protect children?

Decide on Question Order in a Questionnaire For a survey to determine the attractiveness of a possible new restaurant, the following table identifies each of the research objectives, as well as a possible measurement scale to be used with each research objective. Using your newly acquired knowledge of question flow and questionnaire organization, for each objective indicate where on the questionnaire you recommend placing the question(s) pertaining to that research objective. Jot down your reasoning for your recommendation on question order as well.

Research Objective and How to measure?

Description Will the restaurant be successful?

Will a sufficient number of people patronize the restaurant?

How should the restaurant be designed?

What about décor, atmosphere, specialty entrées and desserts, wait staff uniforms, reservations, special seating, and so on?

What should be the average price of entrées?

How much are potential patrons willing to pay for the entrées as well as for

Describe the restaurant concept and ask the intentions to purchase there on a scale.

Determine respondents’ preferences for each of the several possible design features on a preference scale.

Describe standard entrées and house specials and obtain how much respondents are willing to pay using price ranges.

Location on the Questionnaire and Reason(s) for This Location Place after the warm-ups as the description takes concentration on the part of the respondent and there is an intentions scale used.

Logically follows the description of the new restaurant so respondents can relate these questions to the restaurant concept.

Logically follows the preferences for new restaurant so respondents can relate these questions to the expected prices.

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the house specials?

What is the optimum location?

How far from patrons’ homes are patrons willing to drive, and are there any special location features (such as waterfront, ample parking, etc.) to take into consideration?

What is the profile of the target market?

Determine farthest driving distance respondents are willing to drive to the new restaurant for each location feature.

Logically follows the description of the new restaurant and may be before or after the preferences so respondents can relate these questions to the expected prices.

Ask for demographics of the respondents.

Demographics are placed at the end of the questionnaire.

Determine normal use of various local media such as newspaper, radio, and television, and obtain specifics such as what newspaper sections are read, what radio programming is heard, and what local television news times are watched.

What are the best social Determine normal use of media? social media such as What social media Facebook, Twitter, should be used to best Instagram, etc., and reach the target market? determine what restaurant review social media (Yelp, Open Table, Zagat, etc.) is used.

These are quick and easy to answer, so they can be warmups or otherwise placed at the beginning of the questionnaire.

What are the best promotional media?

What advertising media should be used to best reach the target market?

Logically flows from the promotional media alternatives.

Placed before demographical information.

SYNTHESIZE YOUR LEARNING Moe’s Tortilla Wraps This learning synthesis exercise requires students to decide on a data collection method and to formulate a survey questionnaire.

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For each set of objectives associated with each target group of consumers, decide on and justify a data collection method.

Survey of Users of Moe’s Tortilla Wraps in San Diego—since users have direct contact with the restaurant, it is reasonable to simply ask customers to take the survey. This could be a hard copy questionnaire (sort of a drop-off concept) that is given to them. They can either do the survey in the restaurant or take it home and return it after competing it.

Alternatively, the survey could be an online one, and customers would be given the URL or website location while they are visiting the restaurant. In both cases, an incentive of some sort (maybe a drawing for free lunch) would be appropriate to enhance the response rate.

Other possible data collection methods are telephone and mail; however, both have very low response rates.

Survey of Nonusers of Moe’s Tortilla Wraps in San Diego—since there is no contact with nonusers, it is necessary to access sandwich restaurant users (the population). Reasonable data collection could be a mall intercept with a qualifier such as “Do you purchase from a local sandwich shop at least one time per month” (or whatever frequency is defined to be a “sandwich shop patron”)? The resulting sample would be biased toward mall shoppers, of course. An online survey could be used with the aid of a panel company that would identify respondents who live in San Diego and use a sandwich shop at least one time per month.

However, while panel companies have hundreds of thousands of panel members, they do not tend to have heavy saturation of a single city, so careful scrutiny of the panel company’s capabilities would be necessary. Other possible data collection methods are telephone and mail; however, both have very low response rates.

Survey of Potential Users of Moe’s Tortilla Wraps in San Francisco, Sacramento, and Los Angeles—here mall intercept survey could work in each of the three target cities. An online survey might work if a panel company can supply sufficient panelists for each city.

Other possible data collection methods are telephone and mail; however, both have very low response rates.

Given your chosen data collection method, design the full questionnaire, including selecting measurement scales, developing questions, and finalizing the appearance of the questionnaire for each of the three Moe’s Tortilla Wraps surveys.

Most students will submit a word processor version of the questionnaires; although, some enterprising ones may use free, trial versions of online survey systems and create online questionnaires. Regardless, the earmarks of good questionnaire design (warm-ups, transitions, skips, etc.) should be demonstrated, and students should make appropriate use of measurement scales for the various constructs.

An effective teaching method is to identify two or three students who have designed excellent questionnaires and to use them as exemplars while discussing this case.

ANSWERS TO END-OF-CHAPTER QUESTIONS Copyright © 2026 Pearson Education, Inc.

7-1. What is measurement? In your answer, differentiate an object from its properties, both objective and subjective.

Measurement is defined as determining the amount or intensity of some characteristic of interest to the researcher. A measurable characteristic is called a property. Objective properties are physically verifiable characteristics such as age, income, number of bottles purchased, store last visited, and so on. Subjective properties are those which cannot be directly observed because they are largely influenced by a person’s judgments or impressions. In this case, the marketing researcher must ask a respondent to translate his or her feelings onto a continuum of intensity.

7-2. Distinguish the three measures used in marketing research.

The three types of measures are nominal (or simple classifications) measures, ordinal measures, and scale measures (which include ratio scale measures and interval scale measures).

Nominal measures are defined as those that use only labels, possessing only the characteristic of description.

Ordinal measures permit the researcher to rank order the respondents or their responses.

Scale measures are those in which the distance between each level is known. There are two types of scale measures: ratio scale measures and interval scale measures.

7-3. How does an interval scale differ from a ratio scale?

Ratio scale measures are ones in which a true zero origin exists—such as an actual number of purchases in a certain time period, dollars spent, miles traveled, number of children in the household, or years of college education. Interval scale measures, on the other hand, are rating scales for subjective properties where, for adjacent levels, the distance is normally defined as one scale unit.

7-4. Explain what is meant by a continuum along which subjective properties of an object can be measured.

Subjective properties are unobservable. When a subjective property such as an attitude or an opinion has intensity, the person’s position can be located on a scale ranging from very negative to very positive. This range of intensity is the measurement continuum.

7-5. What are the arguments for and against the inclusion of a neutral response position in a symmetric scale?

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Those arguing for the inclusion of a neutral option believe that some respondents do not have opinions formed on that item, and they must be given the opportunity to indicate their ambivalence. Proponents of not including a neutral position, however, believe that respondents may use the neutral option as a dodge or a method of hiding their opinions. Eliminating the neutral position forces these respondents to indicate their opinions or feelings.

7-6. Distinguish among a Likert scale, a lifestyle scale, and a semantic differential scale.

With the modified Likert scale, respondents are asked to indicate their degree of agreement or disagreement on a symmetric agree-disagree scale for each of a series of statements. A special application of the modified Likert question form called the lifestyle scale or inventory (or psychographics inventory) takes into account the values and personality traits of people as reflected in their unique activities, interests, and opinions (AIOs) toward their work, leisure time, and purchases. It also uses an agree-disagree continuum format. The semantic differential scale contains a series of bipolar adjectives for the various properties of the object under study, and respondents indicate their impressions of each property by indicating locations along its continuum. The focus of the semantic differential is on the measurement of the meaning of an object, concept, or person.

7-7. What is the halo effect, and how does a researcher control for it?

The halo effect is a general feeling about a store, brand, or whatever stimulus is being measured with a semantic differential that can prejudice a respondent’s impressions on its specific properties. Flipping the ends of the bipolar adjectives on the scale to avoid having all negatives on one side and all positives on the other side is done to control for the halo effect.

7-8. Provide questions to measure each of the constructs that follow. Before you construct the measure, consult a source book to find a concise definition of the construct. Relate the definition and then provide the question.

Suggested questions follow each construct. a. Brand loyalty How many times out of x have you bought our brand? b. Intentions to purchase How likely are you, on a scale of very unlikely to very likely, to purchase this car battery? c. Importance of “value for the price” Copyright © 2026 Pearson Education, Inc.

How important, on a scale of very unimportant to very important, is the price of this product in relation to your decision to purchase it? d. Attitude toward a brand How would you rate this product, on a scale of very poor to excellent?

Or, How do you feel this product, on a scale of dislike very much to like very much? e. Recall of an advertisement Do you remember the advertisement of our product? (yes or no) f.

Past purchases What brands of dishwasher soap have you purchased in the past year?

7-9. How does reliability differ from validity? In your answer, define each term.

Reliability is the consistency or the tendency in a respondent to respond in the same or in a very similar manner to an identical or near-identical question. Validity is defined as the accuracy of the measurement: it is an assessment of the exactness of the measurement relative to what actually exists. It is possible to have reliability without validity such as when a respondent lies repeatedly, but validity requires reliability.

7-10. What is a questionnaire, and what functions does it serve?

A questionnaire is a vehicle used to pose the questions that the researcher desires respondents to answer. A questionnaire serves six key functions. (1) It translates the research objective/s into specific questions that are asked of the respondents. (2) It standardizes those questions and the response categories, so every participant responds to identical stimuli. (3) By its wording, question flow, and appearance, it fosters cooperation and keeps respondents motivated throughout the interview. (4) Questionnaires serve as permanent records of the research. (5) Depending upon the type of questionnaire used, a questionnaire can speed up the process of data analysis.

7-11. What is meant by the statement that questionnaire design is a systematic process?

Questionnaire design is a systematic process in which the researcher contemplates various question formats, considers a number of factors characterizing the survey at hand, ultimately words the various questions very carefully, and organizes the questionnaire’s layout.

A questionnaire will ordinarily go through a series of drafts before it is in acceptable final form. In fact, even before the first question is constructed, the researcher mentally reviews alternative question formats to decide which ones are suited to the survey’s respondents and circumstances. As the questionnaire begins to take form, the researcher continually evaluates each question and its response options for face validity. Changes are made, and the question’s wording is re-evaluated to make sure Copyright © 2026 Pearson Education, Inc.

that it is asking what the researcher intends. Also, the researcher strives to minimize question bias, defined as the ability of a question’s wording or format to influence respondents’ answers.

7-12. What are the four guidelines or “do’s” for question wording? Describe each.

The Question Should Be Focused on a Single Issue or Topic. To the extent possible, the question must be focused on a specific issue or topic. Questions that violate this guideline are prone to inconsistent interpretation.

The Question Should Be Brief. Unnecessary and redundant words should always be eliminated. Brevity will help the respondent comprehend the central question and reduce the distraction of wordiness.

Question Should Be Grammatically Simple. A simple sentence is preferred because it has only a single subject and predicate, whereas compound and complex sentences are busy with multiple subjects, predicates, objects, and complements. The more complex the sentence, the greater the potential for respondent error.

The Question Should Be Crystal Clear. It is essential that all respondents “see” the question identically. Crystal clear means extremely obvious and easy to understand. It is best to avoid words that are imprecise or open to misinterpretations.

7-13. What are the four “don’ts” for question wording? Describe each.

The Question Should Not “Lead” the Respondent to a Particular Answer. A leading question is worded or structured in such a way as to give the respondent a strong cue or expectation as how to answer.

The Question Should Not Use “Loaded” Wording or Phrasing. A loaded question has buried in its wording elements that make reference to universal beliefs or rules of behavior.

The Question Should Not Be “Double-Barreled.” A double-barreled question is really two different questions posed in one question.

The Question Should Not Use Words That Overstate the Case. An overstated question is one that places undue emphasizes on some aspect of the topic. It uses what might be considered “dramatics” to describe the topic.

7-14. What is the purpose of a questionnaire introduction, and what should it accomplish?

The introduction is crucial in questionnaire design. The introduction sets the stage; it is what a potential respondent reads or hears before he or she begins answering survey questions.

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The five functions accomplished by the introduction are to help determine:  Who is doing the survey?  What is the survey about?  How did you select me?  Motivate me to participate?  Am I qualified to take part?

7-15. Indicate the functions of (a) screening questions, (b) warm-ups, (c) transitions, (d) “skip” questions, and (e) classification questions.

The functions are listed below each type of question. a. Screening questions Screening questions will determine whether or not the potential respondent qualifies to participate in the survey based on certain selection criteria that the researcher has deemed essential. b. Warm-ups Warm-ups are simple and easy-to-answer questions that may pertain to the research objectives. These questions really perform the task of heightening the respondent’s interest while making the person feel that the questions can be answered easily and quickly. c. Transitions Transition questions follow the warm-ups and serve to move the respondent further along in the responding process. They relate specifically to the research objectives on a more detailed level than do warm-ups. d. “Skip” questions Skip questions direct the interviewer or respondent to jump to or skip over the following question(s) based on the answer to the present question. For example, if the response is “no,” it may not make sense to ask the next question(s) which pertains only to those who answer “yes.” e. Classification questions The last section of a questionnaire is reserved for classification questions.

Demographic items are normally placed here. This placement is industry tradition, and it embodies the strategy of placing questions with break-off potential at the end of the interview.

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7-16. What is coding, and why is it used? Relate the special coding requirement with “all that apply” questions.

Coding questions is the use of numbers associated with the question responses to facilitate data entry during data collection and data analysis after the survey has been conducted. With “all that apply” questions, the standard approach is to have each response category option coded with a 0 or a 1. The designation “0” will be used if the category is not checked, whereas a “1” is used if it is checked by a respondent.

7-17. The owner of Cupcake Delight, a mall kiosk location company that sells 20 different types of fresh cupcakes, soft drinks, and coffee, is concerned about low sales. She reads in a marketing textbook that the image of a store often has an impact on its ability to attract its target market. She contacts a marketing research company and commissions it to conduct a study that will measure her store’s image. You are charged with the responsibility of developing the part of the questionnaire concerned with store image. Design a semantic differential scale that will measure the relevant aspects of the image of Cupcake Delight. In your work on this scale, you must do the following: (a) brainstorm the properties to be measured, (b) determine the appropriate bipolar adjectives, (c) decide on the number of scale points, and (d) indicate how the scale controls for the halo effect.

Properties to be measured. A sample list is: (1) prices, (2) location, (3) variety of merchandise, (4) friendliness, and (5) value. Students may come up with other properties.

The semantic differential scale is provided below. A 5-point scale is used, but students may use 7 points. The midpoint stands for neutral or no opinion. Note that “merchandise variety” is flipped to obviate the halo effect.

Rate Cupcake Delight…

High prices

____ ____ ____ ____ ____ Low Prices

Inconvenient location

____ ____ ____ ____ ____ Convenient location

Much merchandise variety

____ ____ ____ ____ ____ Little merchandise variety

Unfriendly salespeople

____ ____ ____ ____ ____ Friendly salespeople

Poor value for the price

____ ____ ____ ____ ____ Good value for the price

7-18. Each of the following examples listed below involves a market researcher’s need to measure some construct. Devise an appropriate scale for each one. Defend the scale in terms of its scaling assumptions, number of response categories, use or nonuse of a “no opinion” or neutral response category, and face validity.

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The answer follows each case. a. Mattel wants to know how preschool children react to a Pixar character robot that can express emotions such as amusement, can recognize a child’s face, and play any of over 150 educational games such as “spell this animal” or “math pets.”

A graphic rating scale with smiley faces would apply here although preschool children cannot read, nor can they relate to an abstract concept such as a scale. Use a small number of categories (say three) even though preschoolers think concretely, and don’t use a neutral category because it is very likely the children will form an opinion. Having one or two children tells the researcher that the difference between the faces can assess face validity. b. Chobani is testing five new flavors of yogurt and wants to know how its customers rate each one on sweetness, flavor strength, and richness.

Chobani needs evaluations on three subjective properties based on taste tests of each yogurt flavor. Considerations include the following. There is no need for a symmetric scale as it is very unlikely that the flavors would be sour, weak, or not rich. It is also doubtful that tasters will have a ―no opinion‖ reaction to the flavors. Also, how much can a person discriminate in reporting a taste? Not much, so the scale should be no more than five gradations with labels because people do not judge flavors with numbers.

Here is an example of the sweetness scale.

Not Sweet

Somewhat Sweet

Sweet

Very Sweet

The face validity of this scale is obvious. c. A pharmaceutical company wants to find out how much a new federal law eliminating the dispensing of free sample prescription drugs by doctors will affect their intentions to prescribe generic versus branded drugs for their patients.

This is an instance of measuring intentions so a 0% to 100% intentions scale (see Table 7.5) will fit. Eleven categories (0%, 10%, etc.) can be used as doctors can be expected to understand likelihoods of acting. Face validity is apparent as the scale communicates a ―chances of doing‖ rating.

The modified Likert scale is also acceptable, as for example, Statement I will prescribe generic drugs.

(Insert Disagree-Agree labels here.)

1 2 3 4 5

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A no opinion is appropriate because doctors may not have decided on what they will do yet.

Face validity of the statement is apparent. d. A cancer treatment center wishes to determine the willingness of potential donors to contribute money to its cancer treatment research efforts.

To measure the willingness of potential donors to contribute money to a cancer treatment center’s research efforts, a Likert scale is the most suitable option. This type of scale is widely used for assessing attitudes, opinions, and motivations, making it ideal for gauging donor willingness.

A survey question could be: ―How willing are you to donate money to support cancer treatment research?‖ Respondents might choose from options like: 1. Very unwilling 2. Unwilling 3. Neutral 4. Willing 5. Very willing This approach ensures that the data collected is both actionable and easy to interpret for making informed decisions about donor engagement strategies. You do not need a ―no opinion‖ value since respondents will have an opinion on contributing money. Face validity is apparent.

7-19. Harley-Davidson is the largest U.S. motorcycle manufacturer, and it has been in business for several decades. While it was once the “signature” American motor-cycle, the typical Harley-Davidson owner is now a white-haired male senior citizen. The company is trying to revitalize the brand with an appeal to women. Research is underway to address two questions. First, do consumers associate Harley-Davidson with “old guys,” and, second, are women consumers positively inclined toward the purchase of women’s Harley-Davidson signature products such as riding jackets, belts, boots, sunglasses, vests, shirts, jeans, and sweaters? Design a Likert measurement scale that can be used in a nationwide online survey to address these two issues.

The task here is for students to design a modified Likert scale amenable to telephone interview administration. The exercise is intended for students to realize the requirements of “describing” the scale to respondents over the telephone. Table 7.3 has an example that can be adapted to this exercise.

Here is one approach.

(INTERVIEWER: READ) I have a list of statements that I will read to you. As I read each one, please indicate whether you agree or disagree with it.

Are the instructions clear? (IF NOT, REPEAT) Copyright © 2026 Pearson Education, Inc.

INTERVIEWER: READ EACH STATEMENT. WITH EACH RESPONSE, ASK, “Would you say that you STRONGLY (dis)agree or SOMEWHAT (dis)agree?”

RESPONSE (CIRCLE)

SOMESOMESTRONGLY WHAT WHAT AGREE AGREE NEUTRAL DISAGREE

STRONGLY DISAGREE

__________________________________________________________________ a.

(Statement goes here.)

1 2 3 4

5

STATEMENT

A different approach is to read off all the response alternatives to the respondent. It would look something like this: INTERVIEWER, READ. “I have some statements that I will read to you. With each one, please tell me if you strongly agree, agree, disagree, strongly disagree, or you may neither agree nor disagree. Are these instructions clear?” (IF NOT, REPEAT) 7-20. Listed here are five different aspects of a questionnaire to be designed for the crafts guild of Maui, Hawaii. It is to be administered by personal interviewers who will intercept tourists as they are waiting in departure gates at the Maui Airport. Indicate a logical question flow for the questionnaire using the guidelines in Figure 7.3. a. Determine how they selected Maui as a destination. b. Discover what places they visited in Maui, and how much they liked each one. c. Describe what crafts they purchased, where they purchased them, when they bought them, how much they paid, who made the selection, and why they bought those particular items. d. Specify how long they stayed and where they stayed while on Maui. e. Provide a demographic profile of each tourist interviewed.

Each item implies a different amount of effort on the part of the respondent, so to apply the work approach would require placing the “work” questions in the body of the questionnaire. Here is a logical flow for the work approach.

Question Topic Rationale for Placement How long and where stayed Easy to answer, warm-up How they selected Maui

Easy to answer, warm-up

What places they visited

More difficult, some work involved

Crafts questions

Most difficult, placed near end of questionnaire

Demographics

Traditional to place at the end

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For the sections approach, the first warm-up (how long and where stayed) and demographics should be at the beginning and end, respectively, while the other items would stand as sections in the middle.

7-21. Using an online search engine, find a computer-assisted questionnaire design company that offers a free trial and become familiar with it. For each of the following possible features of computer-assisted questionnaire design systems, briefly relate the specifics on how the company you have chosen provides that feature. a. Question-type options b. Question library c. Skip logic d. Font and appearance e. Web uploading (sometimes called “publishing”) f. Analysis, including graphics g. Downloadable file format options Students must find companies that market questionnaire design software, download examination copies or otherwise learn about how the program works, and report on each of the six functions.

7-22. Livingston Lures develops and markets electronic fishing lures that emit various sounds associated with baitfish. This feature makes a Livingston Lure much more effective than traditional lures because it attracts fish from a considerable distance, and the sound causes fish such as bass or trout to savagely attack the lure. In an effort to survey the reactions of potential buyers, the company hires a research firm to intercept fishermen at boat launches, secure their cooperation to use a Livingston Lure electronic lure under development sometime during their fishing trip that day, meet them when they return, and verbally administer questions to them. As an incentive, each respondent will receive three lures to try that day, and five more will be given to each fisherman who answers the questions at the end of the fishing trip.

What opening comments should be verbalized when approaching fishermen who are launching their boats? Draft a script to be used when asking these fishermen to take part in the survey.

Function Identifies the surveyor/sponsor.

Example “Hello, my name is ___, and I am marketing researcher working for Panther Martin, the fishing lure manufacturer.”

Indicates the purpose of the survey.

“We are conducting a ‘product placement’ survey with a new fishing lure that we would like you to try today, if

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Explains how the respondent was selected.

Requests for/provides incentive for participation.

Determines if respondent is suitable.

you are willing.”

“You boat was picked a random number applied to the number of fishing boats launched here today.”

“I would like to give you samples of the new lure for you to try today and report your experiences when you return here. As an incentive, I will give each of you three lures to try, and when you return, I will give you five more free lures.”

“You are going fishing today, aren’t you?”

CASE SOLUTIONS Case 7.1 Metro Pet Adoption Center Case Objective The case objective for the Metro Pet Adoption Center is to address the issue of stray dogs and cats in the metropolitan area by fostering adoptions and improving the adoption program. The center aims to tackle the problem of stray animals while ensuring humane treatment and maximizing adoption opportunities.

Answers to Case Questions The case provides several questions that the Metro Pet Adoption Center would like addressed. However, it will require a survey to answer the questions since they relate to public opinion. I suspect answers will vary depending on geographic region, rural or urban, and socioeconomic status.

Case 7.2 Moe’s Tortilla Chips Case Objective Moe believes that he can break into the multibillion-dollar tortilla industry. He plans to start small and expand from a local business to a multinational one in a matter of years. But he needs funding to start, and he knows that no investor will consider him without a marketing plan. His research objective is to gather information for a marketing plan he can use to raise startup funds.

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Answers to Case Questions Construct an online questionnaire that will gather data related to Moe’s research objectives.

Online Questionnaire for Tortilla Chip Market Research The following structured online questionnaire is designed to gather data for Moe’s marketing plan. Students may also come up with other options.

Section A: Current Tortilla Chip Market 1. Brand Awareness  Which tortilla chip brands are you familiar with? (Select all that apply)  Doritos  Tostitos  Pringles  Xochitl  Calidad  Santitas  Other (please specify) 2. Brand Preference  What is your favorite tortilla chip brand? (Open-ended) 3. Performance Attributes  How does your favorite tortilla chip brand perform on the following attributes? (Rate each on a scale of 1–5, where 1 = Poor and 5 = Excellent)  Freshness  Unique taste  Saltiness  Sweetness  Thickness  Color  Oiliness  Calories  Flavor Section B: Consumer Preferences 1. Shape Preferences  What shape of tortilla chip do you prefer? (Select one)  Round  Triangular  Oval  Square  Scoop-style  Restaurant-style  Bite-size 2. Thickness Preferences  What chip thickness do you prefer? (Select one)  Thin  Regular  Thick Copyright © 2026 Pearson Education, Inc.

3. Preparation Method  How do you prefer your tortilla chips to be prepared? (Select one)  Fried  Baked  Air-fried 4. Flavor Preferences  What flavor do you prefer in tortilla chips? (Select all that apply)  Corn-based flavor  Flour-based flavor  Saltiness level (Low, Medium, High)  Sweetness level (Low, Medium, High)  Do you enjoy added flavors? (Select all that apply)  Lime  Barbecue  Ranch  Chili  Garlic  How spicy do you like your chips? (Select one)  Plain  Mild  Hot  Very hot 5. Other Characteristics  How important are the following characteristics in choosing tortilla chips?

(Rate each on a scale of 1–5, where 1 = Not Important and 5 = Very Important)  Calories  Color  Oiliness  Freshness 6. Packaging Preferences  What size of tortilla chip package do you typically purchase? (Select one)  Family/Party size (20+ ounces)  Regular size (15 ounces)  Snack size (4 ounces)  Mini size (1 ounce)  Variety package (four to six packages at 4 ounces each) 7. Consumption Habits a. Dip Accompaniment How do you typically eat tortilla chips? (Select one)  No dip  Salsa dip  Sour cream dip  Cheese dip  Other dip (please specify) Copyright © 2026 Pearson Education, Inc.

b. Social Context In what setting do you usually eat tortilla chips? (Select one)  At parties  With family at home  Alone at home  As a snack away from home Section C: Target Market Demographics 1. Income Level What is your household income range? (Select one)  Less than $50,000/year  $50,000–$100,000/year  Over $100,000/year 2. Education Level What is your highest level of education completed? (Select one)  High school or less  Some college or associate degree  Bachelor’s degree or higher 3. Gender What is your gender? (Select one) Male / Female / Other / Prefer not to say 4. Family Composition Do you have children living in your household? (Select one) Yes / No 5. Dwelling Type Where do you live? (Select one) Apartment / House / Other 6. Race/Ethnicity What is your race/ethnicity? (Open-ended) 7. Age Group Which age group do you belong to? (Select one) Under 18 / 18–24 / 25–34 / 35–44 / 45–54 / 55+ This questionnaire is an example of one that will help Moe collect actionable insights for his marketing plan by understanding consumer preferences, market dynamics, and target demographics effectively.

CHAPTER 8 SAMPLE SIZE AND SAMPLE SELECTION LEARNING OBJECTIVES In this chapter you will learn: Copyright © 2026 Pearson Education, Inc.

8.1 Explain why a sample is taken 8.2 Calculate sample size by using the standard sample size formula 8.3 Describe practical considerations when determining what sample size to use 8.4 Differentiate alternative methods used to determine sample size 8.5 Relate sampling error and its two main sources 8.6 Differentiate probability and nonprobability sampling 8.7 Compare the four different types of probability sampling 8.8 Compare the four different types of nonprobability sampling 8.9 Illustrate various online sampling techniques 8.10 Outline the steps in a sample plan CHAPTER OUTLINE Why Take a Sample?

The Sample Size Formula   

Variability: p x q Level of Confidence: z Acceptable Margin of Error: e

Practical Considerations in Sample Size and Determination    

How to Estimate Variability in the Population How to Decide on the Level of Confidence How to Determine the Acceptable Sample Error How to Balance Sample Size Error with the Cost of Data Collection

Other Methods of Sample Size Determination    

Percent Rule of Thumb Sample Size Conventional Sample Size Statistical Analysis Requirements Sample Size All-You-Can-Afford Sample Size Copyright © 2026 Pearson Education, Inc.

Sampling Error Probability versus Nonprobability Sampling Methods Probability Sampling Methods 

Simple Random Sampling



Systematic Sampling



Cluster Sampling



Stratified Sampling

Nonprobability Sampling Methods  Convenience Samples  Chain Referral Samples  Purposive Samples  Quota Samples Online Sampling Techniques  Online Panel Samples  River Samples  Email List Samples Developing a Sample Plan

KEY TERMS Acceptable margin of sample error All-you-can-afford sample size Area sampling Chain referral sample Cluster sampling Copyright © 2026 Pearson Education, Inc.

Computer-based random numbers Confidence interval formula Convenience sample Conventional sample size Email list sample Nonprobability sample Online panel sample Percent rule of thumb sample size Population Probability sample Purposive sample Quota sample Random digit dialing Random number method River sample Sample Sample accuracy Sample frame Sample frame error Sample method error Sample plan Sampling error Simple random sampling Copyright © 2026 Pearson Education, Inc.

Skewed population Skip interval Stratified sampling Statistical analysis requirement sample size Systematic sampling Variability Worst-case variability TEACHING SUGGESTIONS 1. The equiprobable aspects of a blind draw random sample can be demonstrated a number of different ways. Here are two examples. 

Have students research weekly lottery numbers and determine the percent of times each number appears.



Use 3x5 cards with students’ names in a hat or a box and have a series of actual blind draw samples. Replace the drawn names to the population pool after each sample. Maintain a record of how often each student’s name is selected.

2. The greater efficiency of systematic sampling over simple random sampling can be demonstrated with a class exercise. Identify two groups of students and give each a copy of the same page from the telephone book. Tell the first group to select 10 household names using a table of random numbers or random numbers generated via a spreadsheet program such as Microsoft Excel (simple random sampling), and tell the second group to select 10 names using systematic sampling. The second group should finish before the first group.

3. When learning about the skip interval used in systematic sampling, students sometimes ask how to determine the population size when a directory or phone book is used. In the absence of a precise number, the size is usually estimated by multiplying the approximate number of names on each page by the number of pages. Some adjustments may need to be made for multiple listings such as children’s phone, discontinued phones, or areas of “white space” in the directory.

4. A disadvantage of systematic sampling noted in the chapter is in the use of systematic sampling in the listing of the population (sample frame). Sample frame error is a major concern for telephone directories, because of unlisted numbers. It is also a concern for Copyright © 2026 Pearson Education, Inc.

lists that are not up to date. Such lists are typically listed in alphabetic order, which effectively guards against periodicities. An example of a periodicity is in quality control sampling where a machine has a defect that follows a pattern. For example, every tenth unit may contain the defect, and there is a danger that the skip pattern will miss the defects or greatly understate their incidence.

5. Some students may have difficulty understanding the weighted mean calculations in systematic sampling. It may be necessary to illustrate how the mean changes with different stratum configurations. Here are some comparisons than can be used to demonstrate the effects.

Stratum Mean Estimated Population Mean A 5

B 8

50/50 6.5

40/60 6.8

10/90 7.7

6. Students should come to realize that the success of quota sampling is greatly dependent on a prior knowledge of the population’s characteristics. One way to facilitate this understanding is to ask students what quota characteristics should be used in the following two cases.  

Case one. Kellogg’s wants to know the reactions of parents to a new children’s cereal called “Cheery-O’s” Case two. Proctor and Gamble wants the reactions of potential buyers to its new hair rinse called “Gentle Care.”

With case one, the quota characteristics would be: (1) parents (percent female versus male), (2) marital status (percent married versus separated), and (3) age of youngest child (percent 4, 5, 6, etc.). With case two, however, the target market is not identified well other than it is implicitly made up of women.

7. Students tend to recall little about tables of random numbers, and a worthwhile class exercise is to bring in a table or have one made into a PowerPoint slide. Use the table to show how a simple random sample would be selected as well as how the starting page in a directory (such as the telephone directory) would be selected by use of the table of random numbers. (Note: We have opted to include no statistical tables, so you will need to turn to a statistics textbook for a table of random numbers.)

8. A different random number example is to use Excel or a spreadsheet program and program random numbers into it, say in a block of 10 rows by 10 columns. Multiplying the decimal random number by 100 and rounding it will create random numbers between 0 and 99. In theory, the average of any 10 random numbers (any row or any column) should be approximately equal to the average of any other 10 random numbers. The standard deviations should be approximately equal as well.

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9. When students work with a familiar population, they are better able to apply sample methods. Ask how the full-time students in your university would be sampled using each sample method described in the chapter. For example, where would they station interviewers for a convenience sample? How would they set up clusters or strata using student characteristics?

10. Here is a table the summarizes the differences between probability sampling methods and nonprobability sampling methods: Probability Sampling Known chance of selection Takes more time Higher cost Can compute sample error

Nonprobability Sampling Unknown chance of selection Takes less time Lower cost Cannot compute sample error

ACTIVE LEARNING EXERCISES Are Random Numbers Really Random?

This exercise demonstrates the generation of random numbers with a computer (Microsoft Excel). If students follow the instructions correctly, they will find that each number from 1 to 100 has one chance out of 100 of being selected, so the random numbers are random.

Assess the Representativeness of Various Convenience Samples Suppose the Athletic Department at your university is disappointed at student attendance of its “minor” collegiate sports events such as wrestling, cross country, and softball. It wants to learn why students do not attend them. Listed below are possible locations for a convenience sample. With each one, indicate what types of students would be overrepresented in the sample and what types would be underrepresented in the sample versus the population of students at your university for each case.

Convenience sample location The University Recreation Center

What students would be overrepresented?

Students who work out, are active, or into exercise and health

The University Commons

Students who hang out there; those who buy food and snacks; those who participate in the activities at the Commons

What students would be underrepresented?

Sedentary students, commuter students, students who study too hard to exercise or recreate Commuters, nontraditional students (such as night timers), students who do not buy

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Residence halls located on campus Individuals who purchase season tickets for the university’s home football game

Students who live on campus

The Library

Students who use the Library (typically underclasspersons and graduate students)

Physics 401 (Advanced class for physics majors)

Students majoring in physics

Students who are football fans, students who can afford season football tickets

food there or participate in the activities Students who live off campus or who commute Students who are not interested in football, students with less disposable income, students who only attend some games Students who do not use the Library (may be a huge number if the Library has many electronic services) All other students

ANSWERS TO END-OF-CHAPTER QUESTIONS 8-1.    

Distinguish the following: population, census, sample, and sample frame.

Population: the entire group under study, as specified by the objectives of the research project.

Census: an accounting of the complete population.

Sample: a subset of the population that suitably represents that entire group.

Sample frame: a master source of members of the population.

8-2. Describe and provide examples of each of the following concepts: (a)variability, (b) confidence interval, and (c) acceptable margin of sample error. cceptable margin of sample error.

Variability: the degree to which population members are similar (or dissimilar) on a given characteristic. For example, assume you have a yes or no question. If 99% of the respondents say yes then the variability is very low. If 50% of the respondents say yes and 50% say no then the variability is much higher.

Confidence interval: refers to the probability that a population parameter will fall between a set of values for a certain percentage of times. For example, if a point estimate of 100 has a 95% confidence interval the values will fall between 95 and 105 approximately 95% of the time.

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Acceptable margin of error: the allowable amount of sample error to be associated with the survey. For example, a survey may find that 65% of the respondents prefer one brand over another with a margin of error of ± 3%.

8-3. When calculating sample size, how can a researcher decide on the level of accuracy to use? What about level of confidence? What about variability with a percentage?

The level of accuracy is also referred to as the acceptable margin of sample error. In the marketing research industry, acceptable sample error is typically in the range of 3% to 4%.

Variability is determined by the variability in the population. In marketing research, a 95% level of confidence is standard practice.

8-4.

Using the formula provided in your text, determine the approximate sample sizes for each of the following cases, all with precision (allowable error) of ± 5%: a. Variability of 30%, confidence level of 95% n = [(1.962)(30 x 70)]/52 = (3.84 x 2,100)/25 = 322.56 or 323 b. Variability of 60%, confidence level of 99% n = [(2.5762)(60 x 40)]/52 = (6.64 x 2,400)/25 = 637.44 or 638 c. Unknown variability, confidence level of 95% n = [(1.962)(50 x 50)]/52 = (3.84 x 2,500)/25 = 384

8-5. Indicate how a pilot study can help a researcher understand variability in the population.

Researchers can estimate variance in a population by seeking prior studies on the population or by conducting a small pilot study. The information combines to help the research project director grasp the variability in the population.

8-6. Why is it important for the researcher and the marketing manager to discuss the accuracy level associated with the research project at hand?

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Because the accuracy level partially dictates the sample size and therefore cost. The researcher may create a table with alternative accuracy levels and their associated sample sizes based on the standard sample size formula. The table could also include the data collection cost estimates so the client can make an informed decision on the acceptable sample size.

8-7. Describe each of the following methods of sample size determination and indicate a critical flaw in the use of each one. a. Using a “rule of thumb” percentage of the population size The percent rule of thumb approach to sample size is a statement, such as “A sample should be at least 5% of the population in order to be accurate.” While a percent rule of thumb is simple and easy to apply, it is neither efficient nor economical. With sampling, we wish to draw a subset of the population in a thrifty manner and to estimate the population values with some predetermined degree of accuracy. Percent rule of thumb methods lose sight of the accuracy aspect of sampling. b. Using a “conventional” sample size, such as the typical size pollsters use The conventional sample size approach follows some “convention” or number believed to be the right sample size. However, using a conventional sample size can result in a sample that may be too small or too large. c. Using the amount in the budget allocated for data collection to determine sample size The all-you-can-afford method uses cost as an overriding basis for sample size. Given that budget constraints almost invariably must be taken into account, it is not surprising that cost sometimes becomes the only basis for sample size. But specifying sample size based on a predetermined budget is a case of the tail wagging the dog. That is, instead of establishing the value of the information to be gained from the survey as the primary consideration in determining sample size, the focus is on budget factors that usually ignore the value of the survey’s results to management.

8-8. Distinguish a nonprobability from a probability sampling method. Which one is preferable and why? Indicate the pros and cons associated with probability and nonprobability sampling methods.

A probability sample is one in which members of the population have a known chance (probability) of being selected into the sample. Nonprobability samples, on the other hand, are instances in which the chances (probability) of selecting members from the population into the sample are unknown. A probability sample is preferred to a nonprobability sample because probability samples are inherently more representative of the population.

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For its pros probability sampling methods are those that assure that, if the exact size of the population were known for the moment in time that sampling took place, the exact probability of any member of the population being selected into the sample could be calculated. On its cons, probability samples are more time-consuming, more detailed, and more expensive than nonprobability samples. With nonprobability sampling, the pros are less time, less detail, and less cost, but the con is that representation of the population is less, and there may even be great misrepresentation.

8-9. List and briefly describe each of the probability sampling methods presented in this chapter.

They are briefly described each of the probability sampling methods presented in this chapter.

Simple Random Sampling The researcher uses random numbers from a computer, random digit dialing, or some other random selection procedure that guarantees each member of the population in the sample frame has an identical chance of being selected into the sample.

Systematic Sampling Using a sample frame that lists members of the population, the researcher selects a random starting point for the first sample member. A constant skip interval, calculated by dividing the number of population members in the sample frame by the sample size, is then used to select every other sample member from the sample frame. A skip interval must be used so that the entire list is covered, regardless of the starting point. This procedure accomplishes the same end as simple random sampling, and it is more efficient.

Cluster Sampling The sample frame is divided into groups called clusters, each of which must be considered to be similar to the others. The researcher can then randomly select a few clusters and perform a census of each one (one stage). Alternatively, the researcher can randomly select more clusters and take samples from each one (two stage). This method is desirable when highly similar clusters can be easily identified, such as subdivisions spread across a wide geographic area.

Stratified Sampling If the population is believed to have a skewed distribution for one or more of its distinguishing factors (e.g., income or product usage), the researcher identifies subpopulations in the sample frame called strata. A simple random sample is then taken of each stratum. Weighting procedures may be applied to estimate population values, such as the mean. This approach is better suited than other probability Copyright © 2026 Pearson Education, Inc.

sampling methods for populations that are not distributed in a bell-shaped pattern (i.e., skewed).

8-10. What is meant by the term random? Explain how each of the following embodies randomness: With random sampling, the probability of being selected into the sample is “known” for all members of the population. The way in which each method embodies randomness is described below. a. Random digit dialing Telephone numbers are generated with a random device such as a computer program. All numbers have the same probability of being selected. b. Computer-generated random numbers Random number generators in computers supposedly guarantee that any generated number has an equal probability of being generated.

8-11. Distinguish cluster sampling from simple random sampling. How are systematic sampling and cluster sampling related?

The basic difference between cluster sampling and simple random is the sample unit. With cluster sampling, theoretically identical clusters are selected, while in simple random sampling, individual population members are selected. The difference is especially apparent when comparing one-stage cluster to simple random sampling.

A systematic sample is really a one-stage cluster sample. The random starting point determines which of all possible clusters in the list is selected. For example, assume a skip interval of 10. If the starting point is 1, the cluster members are 1, 11, 21, 31, and so forth. If the starting point is 2, cluster members are 2, 12, 22, 32, and so on.

Continue itemizing cluster members up to a starting point of 10 where cluster members are 10, 20, 30, 40, and so on. The entire list is now accounted for with the 10 clusters.

8-12. What is meant by a skewed population? Describe a skewed population distribution variable and provide an example.

A skewed population is one where a key variable’s distribution is not normal or uniform. Figure 8.2 illustrates that a skewed distribution has a long tail at one end.

Students’ examples should embody this basic pattern.

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8-13. Briefly describe each of the four nonprobability sampling methods.

Review question. Students will need to find a description of each nonprobability sampling method.

Convenience Sampling The researcher or interviewer uses a high-traffic location, such as a busy pedestrian area or a shopping mall as the sample from which to intercept potential respondents. Sample frame error occurs in the form of members of the population who are infrequent or nonusers of that location. Other error may result from any arbitrary way the interviewer selects respondents from the sample frame.

Purposive Sampling The researcher uses his or her judgment or that of some other knowledgeable person to identify who will be in the sample. Subjectivity and convenience enter in here; consequently, certain members of the population will have a smaller chance of selection than will others.

Chain Referral Sampling Respondents are asked for the names or identities of others like themselves that might qualify to take part in the survey. Members of the population who are less well known, disliked, or whose opinions conflict with the respondent have low probability of being selected.

Quota Sampling The researcher identifies quota characteristics such as demographic or product use factors and uses these to set up quotas for each class of respondent. The sizes of the quotas are determined by the researcher’s belief for the relative size of each class of respondent in the population. Often, quota sampling is used as a means of ensuring convenience samples will have the desired proportion of different respondent classes.

8-14. Why is quota sampling often used with a convenience sampling method such as mallintercepts?

The quota sample establishes a specific quota for various types of individuals to be interviewed. It is a form of nonprobability sampling used prevalently by marketing researchers. The quotas are determined through application of the research objectives and are defined by key characteristics used to identify the population. In the application of quota sampling, a field worker is provided with screening criteria that will classify the potential respondent into a particular quota cell.

Convenience samples are inherently not representative because they rely on hightraffic locations, and some people are more likely to frequent these locations, while Copyright © 2026 Pearson Education, Inc.

others are less likely to frequent them. The imposition of a quota guarantees that the final sample will have the desired demographic (or other relevant characteristics) profile even though it is drawn by convenience.

8-15. What are some alternative online sampling methods? Describe each one.

The types are described below.

Online panel sampling refers to consumer or other respondent panels that are set up by marketing research companies for the explicit purpose of conducting online surveys with representative samples.

A river sample is created via the use of banners, pop-ups, or other online devices that invite website visitors to take part in a survey. The “river” is the steady stream of website visitors, and these invitations figuratively dip respondents out of the Internet river. Thus, a river sample intercepts website visitors, perhaps even with random selection procedures.

Email list samples are those purchased or otherwise procured from a person or company that has compiled email addresses of members of the population of interest. The vendor company can pull random samples from its lists, and may have the ability to satisfy selection criteria specified by the client company.

Other online sampling approaches are feasible and limited only by the creativity of the sample designers.

8-16. Here are some numbers you can use to sharpen your computational skills for sample size determination. Crest is reviewing plans for its annual survey of purchasers of its 3D White toothpaste brand. With each case in the following table, calculate the sample size pertaining to the key variable under consideration. Where information is missing, provide reasonable estimates.

a. n = [(1.962)(23 x 77)]/42 = (3.84 x 1,771)/16 = 425 b. n = [(2.5762)(23 x 77)]/42 = (6.64 x 1,771)/25 = 470.38, or 471 c. n = [(1.962)(30 x 70)]/52 = (3.84 x 2,100)/25 = 322.56, or 323 d. n = [(1.962)(40 x 60)]/3.52 = (3.84 x 2,400)/12.25 = 752.33, or 753 e. n = [(2.5762)(50 x 50)]/62 = (6.64 x 2,500)/36 = 461.11, or 461

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8-17. The Andrew Jergens Company markets Wet Skin Moisturizers to women to apply to their skin while they shower. From previous research, Jergens management knows that 60% of all women use some form of skin moisturizer, and 30% believe their skin is their most beautiful asset. There is some concern among management that women will associate the drying aspects of taking a shower with applying Wet Skin Moisturizer, and thus will not believe that it can provide a skin moisturizing benefit. Can these facts about use of moisturizers and concern for skin beauty be used in determining the size of the sample required for the Wet Skin Moisturizers survey? If so, indicate how. If not, indicate why and describe how sample size can be determined.

These facts alone are insufficient for directly calculating sample size because sample size determination depends on:  Desired confidence level (e.g., 95%)  Margin of error (e.g., ±5%)  Population size (if finite)  Expected variability in responses (often estimated using proportions like 0.5 for maximum variability) How Sample Size Can Be Determined To calculate sample size, you can use the following formula for proportions: n = [z2 (pq)]/e2 Where:  n = required sample size  z = Z-score corresponding to the desired confidence level (e.g., 1.96 for 95%)  p = estimated proportion (e.g., 0.6 for moisturizer users)  q = 100 – p  e = margin of error (e.g., 0.05) Conclusion While the given facts provide useful context about the target population, they are not directly sufficient for calculating sample size. Sample size determination requires additional inputs like desired confidence level, margin of error, and population variability estimates. You can estimate the sample size by assuming maximum variability of 50% or 0.5 and a desired confidence level which is typically 95% in marketing research.

8-18. Here are four populations and a potential sample frame for each one. With each pair, identify (1) members of the population who are not in the sample frame and (2) sample frame items that are not part of the population. Also, for each one, would you judge the amount of sample frame error to be acceptable or unacceptable?

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Students must make judgments about sample frame error. The evaluation is provided beneath each case.

POPULATION a. Buyers of Scope mouthwash

SAMPLE FRAME Email list of Consumer Reports subscribers

Omitted are Scope buyers who do not subscribe to Consumer Reports, a very considerable number, no doubt. Included are all those who do subscribe but do not buy Scope, a very considerable percentage. The sample frame error is unacceptable because much of the population is not included, and those members included will have low incidence in the list. b. Subscribers to Sirius XM satellite radio

State registration records of new automobile buyers

Omitted are unlisted and new telephone listings, while included are those with listed phones that do not listen to FM music on the radio. The incidence rate will be low, but the sample frame is acceptable unless there is some peculiarity about listeners who have unlisted phones. c. Prospective buyers of a new client and prospective national client tracking software product

Members of Sales and Marketing Executives International (a organization of sales managers)

Omitted are salespersons who do not belong to SMEI, probably a very considerable proportion of all salespersons in the area. Included are retired salespersons, sales managers who no longer do direct sales, and members who have moved away if the list has not been purged recently. The frame error is acceptable for a pilot study, but it does not include a large proportion of the target market. d. Users of weatherproof decking materials (to build outdoor decks)

Individuals’ names registered at a recent home and garden show

Omitted are all those who did not attend the show plus those who did attend but did not register. Included are people who have decks, people who do not want a deck, and people who cannot have a deck (e.g., may live in rented home).

Assuming the show was well attended, the sample frame error is acceptable.

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8-19. A market researcher is proposing a survey for the Big Tree Country Club, a private country club that is contemplating several changes in its layout to improve its golf course. The researcher is considering three different sample designs as a way to draw a representative sample of the club’s golfers.

Assess representativeness and other issues associated with this sample problem. Be sure to identify the sample method being contemplated in each case. Which sample method do you recommend using and why?

The three designs include the following: a. Station an interviewer at the first hole tee on a day chosen at random, with instructions to ask every tenth golfer to fill out a self-administered questionnaire.

This is a systematic sample. The sample frame is golfers playing on any day as every day has an equal chance of being selected. is is a systematic sample. The sample frame is golfers playing on any day as every day has an equal chance of being selected. b. Put a stack of questionnaires on the counter where golfers check in with a sign offering a ―free dinner in the clubhouse‖ for three players who fill out the questionnaire and have their names selected by lottery.

This is a convenience sample. The representativeness depends on how long the survey is in place. If for only one day, there is no mention of random selection, so the sample frame would be golfers renting golf carts on that day. If the survey lasted a week, the sample frame would be golfers golfing that week and renting golf carts, so it would be more representative than the one-day duration. However, a week might be idiosyncratic such as including a holiday or special country club event, making it less representative than a ―typical week.‖ c. Using the city telephone directory and a plus-one dialing procedure. With this procedure, a random page in the directory is selected and a name chosen from it, both using a table of random numbers. A plus-one system would be applied to that name and every name listed after it until 1,000 golfers are identified and interviewed by telephone.

This is effectively a random sample of golfers in the city, so the sample frame is all golfers living in the city. Those with unlisted numbers are automatically included with the plus-one system. It would not be a random sample of Big Tree Country Club members, however, unless there was a qualification that the respondents must be members of the country club. automatically included with the plus-one system. It would not be a random sample of Big Tree Country Club members, however, unless there was a qualification that the respondents must be members of the country club.

CASE SOLUTIONS Copyright © 2026 Pearson Education, Inc.

Case 8.1

Bounty Paper Towels

Case Objective Bounty, a Procter & Gamble brand, aims to enhance its competitiveness in the U.S. paper towel market, which is led by Brawny, through innovative product features like superior absorbency and durability, alongside targeted marketing strategies. To better understand consumer preferences and strengthen its market position, Bounty’s brand manager is conducting extensive market research using panel data from a representative sample of over 300 million U.S. buyers.

Answers to Case Questions 1. For each of the possible sample sizes listed here, calculate the associated expected cost of the panel sample and the sample error. a. 10,000 b. 5,000 c. 2,500 d. 1,000 e. 500

1. Calculations: Cost and Sample Error for Different Sample Sizes The cost and sample error for each sample size are calculated as follows: Sample Size

Sample Error* (1/sample size.5)

Total Cost ($15 × sample size)

10,000

0.01

$150,000

5,000

0.0141

$75,000

2,500

0.02

$37,500

1,000

0.0316

$15,000

500

0.0447

$7,500

*Without a standard deviation we will use 1 as the numerator in the sample error formula.

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These calculations show that as the sample size decreases, the sample error increases while the total cost decreases.

2. What will be the sample frame for the Bounty online panel survey, and what specific steps should the Bounty brand manager propose be implemented to assure top management that the final sample is representative of paper towel buyers?

Student answers will vary.

Possible Answer: Sample Frame for the Bounty Online Panel Survey The sample frame will consist of U.S. households that purchase paper towels, drawn from the panel company’s database. This database includes demographic and behavioral information about panel members, ensuring that the sample can be tailored to reflect the characteristics of paper towel buyers.

Steps to Ensure Representativeness To assure P&G top management that the sample is representative of paper towel buyers, the following steps should be proposed: 1. Define Target Population:  Clearly specify the demographics and behaviors of paper towel buyers (e.g., age, gender, income level, household size).

2. Use Stratified Sampling:  Divide the population into subgroups based on relevant characteristics (e.g., geographic region or income level) and ensure proportional representation in the sample.

3. Randomization:  Implement random sampling within each subgroup to minimize selection bias and ensure fairness.

4. Pilot Testing:  Conduct a small-scale pilot survey to test the questionnaire design and verify that the sample aligns with population traits.

5. Quota-Based Sampling:  Set quotas to ensure representation across key demographics like age brackets, gender distribution, and socioeconomic status.

6. Cross-Verification with External Data:  Compare sample demographics with census data or other reliable sources to validate representativeness.

7. Monitor Nonresponse Bias:  Analyze nonresponses to identify potential biases and adjust sampling methods accordingly.

8. Quality Assurance Plan:  Implement systematic checks during data collection to ensure accuracy, completeness, and consistency of responses.

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By following these steps, Bounty’s brand manager can demonstrate that the survey results accurately reflect U.S. paper towel buyers’ preferences and behaviors while adhering to budget constraints and maintaining a large sample size for credibility.

Case 8.2 Jet’s Pets Case Objective Jet wants to survey the approximately 20,000 families in two ZIP code areas. Of course, he cannot survey all of them, so he must use a sample. For each of the following possible ways of selecting a sample of the families living in several subdivisions in two ZIP code areas: (1) identify the type of sample method; (2) identify the sample frame; (3) indicate what, if any, sample frame error there is; and (4) indicate the degree to which the resulting sample will be representative of all families living in the two ZIP code areas.

Answers to Case Questions 1. Place questionnaires in veterinarian clinics located in the two ZIP code areas for pet owners to fill out while they are waiting for the doctor to examine their pet.

This is a convenience sample, a “high traffic” convenience sample.

Sample frame—those who visit the vet clinics during the time of the survey Sample frame error—those who do not visit vet clinics during the time period It will be representative only of those who visit vet clinics for: problems, boarding, checkups (also probably more representative of dog and cat owners than owners of other pet types) 2. Use his friendship network by asking his friends to identify people they know who live on the north side of the city and who they think would be good customers of his pet shop. Jet would then approach these potential respondents to take part in the survey.

• • • •

This is a chain referral sample Sample frame—friends and their networks Error—will not include those who are not part of the network Not representative since it is subjective and based on loose networks of respondents

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3. Use a random number system to select a single subdivision located somewhere in the two ZIP code areas, then place questionnaires in the mailboxes of every home in that subdivision.

• • • •

This is a one-step cluster sample (aka area sample) Sample frame—all houses in the two zip code areas Error—practically none (assuming the subdivisions are identical) It will represent all families in the target area (assuming all subdivisions are equal or very similar)

4. Announce in the local newspaper a “Cutest Dog Contest,” with contestants sending in a photo and address information. Use the contestants who live in the two ZIP code areas as the sample.

• • • •

This is a convenience sample Sample frame—those who enter the contest Error—only “cute” dog owners will enter the contest, so all other pet owners are not included It will represent only those who have “cute” dogs and who bother to enter the contest

5. Go to the local animal shelter and get the addresses of the pet adopters who live in the two ZIP code areas. Set up an online survey and send an email invitation to each of these email addresses to take the survey.

• • • •

This is a list sample of pet adopters Sample frame—those who adopt pets from the local animal shelter Error—only those who respond to email surveys It will represent the families in the target area fairly well

CHAPTER 9 DATA QUALITY ISSUES AND DATASETS LEARNING OBJECTIVES In this chapter you will learn: 9.1 Identify possible respondent errors that occur during data collection 9.2 Relate a safeguard for each respondent error that occurs during data collection 9.3 Recognize nonresponse errors in surveys such as refusals, break-offs, or item omissions Copyright © 2026 Pearson Education, Inc.

9.4 Describe best practices panel companies use to control respondent errors 9.5 Explain the relationship between data coding and a dataset 9.6 Distinguish data quality issues such as incompletes or yea-saying 9.7 Explain how an SPSS dataset appears and how it contains a survey code book CHAPTER OUTLINE Possible Errors in Data Collection  

Intentional Respondent Errors Unintentional Respondent Errors

Respondent Error Safeguards  

Safeguards for Intentional Respondent Errors Safeguards for Unintentional Respondent Errors

Nonresponse Error  Refusals to Take Part in the Survey  Break-Offs during the Survey  Item Omissions  What Qualifies as a Completed Interview?  How to Measure a Survey’s Response Rate How Panel Companies Control Error Dataset and Coding Data Data Quality Issues  Problematic Respondent Types  Incomplete Response  Nonresponses to Specific Questions (Item Omissions)  Yea- or Nay-Saying Patterns  Middle-of-the-Road Patterns  How to Handle Data Quality Issues Copyright © 2026 Pearson Education, Inc.

 SPSS Dataset, Data Codebook, and Operations KEY TERMS Anonymity Attention loss Break-offs Completed interview Confidentiality Data code book Data coding Dataset Distractions Falsehoods Guessing Incentives Incomplete response Intentional respondent errors Item omission Middle-of-the-road pattern Nay-saying Nonresponse Panel company Prompters Copyright © 2026 Pearson Education, Inc.

Questionnaire instructions and examples Refusals Respondent error Respondent misunderstanding Reversals of scale endpoints Speeding SPSS dataset SPSS operations Third-person technique Unintentional respondent error Validation checks Yea-saying

TEACHING SUGGESTIONS 1. The distinction between sampling error and nonsampling error is presented in a definitional matter-of-fact way because of space constraints. Instructors who want students to learn about total survey error may want to introduce materials on ways to estimate survey error of various types, how to minimize survey error, and why survey error should be a concern.

2. Implicit throughout the chapter is the message that professional data collection companies will control for fieldwork errors. If you have a nearby data collection company, invite the manager to your class to talk about the company’s operations, particularly training, orientation sessions, and other quality control procedures.

Alternatively, a field trip to a data collection company may be feasible.

3. Students may not appreciate the need for interviewer training. A way to combat this belief is to bring a (complicated) telephone or personal interview questionnaire to class and require two students to role-play the interviewer and the respondent. It will become apparent that reading the instructions, following skip patterns, and making notations of the respondent’s answers on the questionnaire take practice.

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4. There is a danger when talking about respondent and interviewer errors that students will come away with a negative opinion about surveys. That is, class discussion sometimes dwells on the cheating, falsehoods, and other misrepresentations that occur in surveys, and students may acquire a belief that these problems are rampant. The point to be made is that there may be significant problems if controls are not used, but most researchers will apply controls even if an ad hoc group is used. So the errors are kept to a minimum.

5. An experiential way to have students learn about the need for preliminary questionnaire screening is to bring a stack of completed questionnaires to class, pass them out to students, and have them inspect each for problems such as incomplete questionnaires, nonresponses to specific questions, yea-saying, nay-saying, or middleof-the-road patterns. Outlier questionnaires can be spotted, and class discussion can be used to determine how to handle the outliers.

ACTIVE LEARNING EXERCISES What Type of Cheater Are You? While class discussion may focus on cheating in college, the point of this exercise is that if students cheat or otherwise act unethically on something as important as their education, surely interviewers are tempted to cheat in their work.

What Type of Error Is It? Situation A respondent says “no opinion” to every question asked.

When a mall-intercept interviewer is suffering from a bad cold, few people want to take the survey.

Because a telephone respondent has a text alert, he asks his wife to take the phone and answer the rest of the interviewer’s questions.

A respondent grumbles about doing the survey, so an interviewer decides to skip asking the demographic questions.

A respondent who lost her job last year gives her last year’s income level rather than the much lower one she will earn for this year.

Type of Error Intentional interviewee error Unintentional interviewer error Intentional interviewee error

Intentional interviewer error Intentional interviewee error

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ANSWERS TO END-OF-CHAPTER QUESTIONS 9-1.

Identify different types of intentional respondent error that occur in surveys.

Intentional respondent errors include falsehoods, speeding, and refusal.

9-2.

Identify different safeguards used to minimize intentional respondent error in surveys.

Safeguards that can minimize intentional respondent error include assuring anonymity, promising confidentiality, offering an incentive, validation checks, and using the “third person” approach when appropriate.

9-3.

Identify different types of unintentional respondent error that occur in surveys.

Unintentional respondent errors include misunderstanding, guessing, attention loss, distractions, and fatigue.

9-4.

Identify different safeguards used to minimize unintentional respondent error in surveys.

Safeguards for unintentional respondent error include good instructions and examples, reversals of end points on scales, and the use of “prompters” where fatigue might set it.

9-5.

Define nonresponse.

Nonresponse is defined as a failure on the part of a prospective respondent to take part in the survey or to answer specific questions on the questionnaire.

9- 6.

Describe three types of nonresponse encountered in surveys.

There are at least three different types of potential nonresponse error: (1) refusals to participate in the survey, (2) break-offs during the interview, and (3) refusals to answer specific questions.

9-7.

How should a researcher define a “completed interview”?

Almost all surveys have some item omissions, break-offs, and partially completed surveys. Nonetheless, these respondents did provide some information. At which point does a break-off still constitute a completed interview? Only in rare cases will Copyright © 2026 Pearson Education, Inc.

it be necessary that all respondents answer all of the questions. In most other cases, the researcher will adopt some decision rule that defines completed versus not completed interviews. For example, in most research studies, there are questions directed at the primary purpose of the study. Also, there are usually questions that are asked for the purpose of adding insight into how respondents answered the primary questions. Such secondary questions often include a list of demographics questions, which, being more personal in nature, are typically placed at the end of the questionnaire. Because these secondary questions are not the primary focus of the study, a completed interview may be defined as one in which all the primary questions have been answered. In this way, the marketing researcher has data for primary questions and most of the data for secondary questions.

9-8.

How does one measure a survey’s response rate?

The AAPOR has a range of definitions for response rate that vary based on (1) whether or not partially completed responses are counted as fully completed and (2) how the eligibility of nonrespondents is determined. For example, a researcher may consider any partial response with 50% or more questions answered as a “fully completed” response, whereas another researcher may have a more stringent requirement of 80% of questions answered. Concerning eligibility, a researcher may assume that all nonrespondents are eligible, or the researcher may estimate the probability of nonrespondent eligibility based on prior knowledge or subjective judgment. The response rate is essentially the number of acceptable responses divided by the sample size.

9-9.        

Describe briefly how panel companies control errors.

Panel companies use a number of tactics to control error including: Ensure that the panel is used solely for market research Panels should be ethically invited or allowed to opt in to take surveys Panel companies should have a formal published privacy policy Measure should be in place for data security Panel members should not participate in a multitude of surveys Panels should have a healthy attrition and replacement rate There should be abundant, up-to-date, classification information on panel members

9-10. What is a dataset, and what is data coding?

A dataset is a matrix arrangement of numbers (mainly) in rows and columns similar to a Microsoft Excel or other spreadsheet. Each row pertains to the answers that a single respondent provides to the questions on the questionnaire. Each column represents a question on the questionnaire.

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The dataset is generated by an operation called data coding, which is defined as the identification of code values that are associated with the possible responses for each question on the questionnaire.

9-11. Why is it necessary to perform preliminary screening of a dataset?

Nonresponses appear in practically every survey. At the same time, there are respondents whose answers have a suspicious pattern to them. Both of these necessitate a separate phase of the data collection stage in the marketing research process that involves the inspection of questionnaires as they are being prepared for entry into a computer file for tabulation and analysis.

9-12. Identify five different problems that a researcher might find while screening a dataset.

Five different problems that can be identified with screening completed questionnaires can be described as: incomplete response, nonresponses to specific questions, yea- or nay-saying patterns, and middle-of-the-road patterns.

9-13. Describe how an SPSS dataset is organized and at least two operations that can be performed with SPSS on a dataset.

Consistent with your learning of datasets, an SPSS dataset is composed of rows and columns for the respondents and questions, respectively, in a survey of interest.

Figure 9.1 in the text shows the SPSS dataset for the integrated case that will be used for the remainder of your textbook coverage. Notice that the SPSS drop-down commands are along the top of the window, while the variables in the dataset are identified with variable names in the column headers and the respondents are listed by rows. The dataset can be examined in the SPSS Data View window.

The following abbreviated list mentions operations that veteran SPSS users rely on regularly:  Open and save files  Import data in various formats  Sort cases  Select or filter cases  Compute or modify variables  Recode variables (as was done with Income, Education, and Gender)  Replace missing values (normally coded as blanks)  Search for data values 9-14. Explain how SPSS contains a data code book.

In Figure 9.2 in the text, SPSS Variable View, you can see the data code book that describes the coding system used for each variable along with format and other Copyright © 2026 Pearson Education, Inc.

options. Concerning the code book, the SPSS Variable View includes the Variable Name (Name), the Variable Description (Label), and the Value Codes (Values). For example, with the Appetizer Variable, the Description is “Did you order an appetizer?,” while the Value Codes are 0 = No and 1 = Yes. The Value Codes appear in a separate window when the Values cell is clicked. Numerous other variables can appear in a data code book.

9-15. Indicate what specific intentional and unintentional respondent errors are likely with each of the following surveys.

The likely errors are noted under each survey case. a. The Centers for Disease Control and Prevention sends out a mail questionnaire on attitudes and practices concerning the prevention of AIDS. Refusals (nonresponse) occur in mail surveys, and the topic is sensitive, so falsehoods are a worry. Respondent misunderstanding is possible due to the topic; guessing may occur. Because a mail survey is used, attention loss, distractions, and fatigue are unlikely. b. Eyemasters has a mall-intercept survey performed to determine opinions and uses of contact lenses.

Refusals are possible, but falsehoods are not likely as contact lenses are not a sensitive topic. Respondent misunderstanding may occur; and guessing can be minimized with good questionnaire design. Distractions are likely in a mall situation, and if the questionnaire is long, respondent fatigue may set in. c. Boy Scouts of America sponsors an online survey on Americans’ views of humanitarian service agencies.

If BSA is given as the sponsor, refusals will be minimized, and knowledge of the sponsor may forestall falsehoods. Misunderstanding and guessing can occur as humanitarian services are not everyday encounters for people. Distractions for phone surveys should be in low incidence, and most online surveys are short, so respondent fatigue should not be a factor.

9-16. Your church is experiencing low attendance with its Wednesday evening Bible classes.

You volunteer to design a telephone questionnaire aimed at finding out why church members are not attending these classes. Because the church has limited funds, members will use their cell phones to conduct these interviews. List the steps necessary to ensure high data quality in Copyright © 2026 Pearson Education, Inc.

using this do-it-yourself option of field data collection.

This is an instance of no controls in place whatsoever, so students will need to identify the critical ones to implement.

Because church volunteers will be used as telephone interviewers, the danger of intentional interviewer error will be low. Unintentional interviewer errors, however, are possible. Orientation sessions and role playing are advisable to control for these errors. Role playing will be especially necessary because these volunteers are not trained in telephone interviewing.

Good questionnaire design will minimize unintentional respondent errors, and the “third person” technique should be applied as church member respondents may be untruthful in divulging why they have been skipping Wednesday evening Bible classes.

9-17. Two researchers have a disagreement about the placement of demographic questions in an online survey. The survey asks about charitable donations that respondents make to humanitarian organizations, pet rescue foundations, religious institutions, and medical research institutes. One goal of the survey is to identify what types of individuals make what types of charitable donations. Historically, this survey has experienced high break-off rates. One researcher wants to place the demographic questions at the end of the survey, whereas the other one favors placing them at the beginning of the survey. Which researcher’s approach will produce the best results, and why?

The placement of demographic questions in an online survey can significantly impact response rates, data quality, and survey completion. Based on the evidence provided, placing demographic questions at the end of the survey is likely to produce better results for this specific survey.

Reasons for Favoring Demographic Questions at the End 1. Reducing Survey Breakoff Rates Surveys with sensitive or less engaging questions at the beginning often experience higher breakoff rates. Demographic questions, particularly sensitive ones like income or donation amounts, can feel intrusive and irrelevant if presented upfront, causing respondents to abandon the survey early.

2. Improved Data Quality When demographic questions are integrated later in a survey, respondents who have already invested time in answering other questions are more likely to complete them.

3. Contextual Relevance Demographic questions placed at the end can feel more logical and less intrusive because respondents may understand their purpose better after answering substantive questions about charitable donations.

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4. Sensitive Question Management Sensitive demographic questions (e.g., income or religion) are less likely to alienate respondents when asked later in the survey.

Counterarguments for Early Placement Some researchers argue that placing demographic questions at the beginning ensures data collection from all respondents, even those who drop off before completing the survey. However, this approach risks alienating participants early, exacerbating break-off rates—an issue already identified as problematic for this survey.

Conclusion Given the high break-off rates historically experienced by this survey and its focus on charitable donations, placing demographic questions at the end is the better approach. This placement reduces early termination risks, increases respondent engagement, and improves data quality for demographic variables critical to analyzing donation patterns.

9-18. In a survey of attitudes toward the use of artificial intelligence software by medical centers to assist physicians in diagnosing life-threatening ailments, a key section of the questionnaire has several questions, each with a 7-point scale of strong disagreement ( = 1) to strong agreement ( = 7) with no opinion at the center ( = 4).

Consider the following partial dataset for 10 respondents.

Respondent

Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

A

1

2

3

1

2

4

5

6

1

B

1

6

4

1

1

1

1

1

1

C

7

6

7

6

7

6

7

6

7

D

5

5

5

5

E

7

5

4

6

4

7

4

2

7

F

1

2

4

4

4

4

4

4

4

G

1

7

7

2

7

7

2

7

7

H

3

4

5

6

7

4

5

6

I

1

2

1

3

4

4

2

3

5

J

7

7

7

7

7

7

7

7

4

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With each respondent, assess the data quality of these responses and identify, if any, data quality problems that should disqualify the respondent’s presence in the final dataset.

A. No issues B. Nay-saying issue C. Yea-saying issue D. Break-off issue E. No issues F. Middle-of-the-road issue G. No issues H. Item omission I. No issues J. Yea-saying issue 9-19. With respect to an IBM SPSS dataset, answer each of the following questions. a. What does each row represent?

Each row represents a unique respondent. b. What does each column represent?

Each column represents a question. c. What is the purpose of the “name” of each column?

The column name is a variable name. d. What is a “label” and what purpose does it serve?

The label is a variable description. e. How do value labels figure into data coding?

Specific answers are coded the same way. For example, a yes or no question might be coded 0 = No and 1 = Yes. f. The Data View is predominantly numbers. Why is this?

The numbers are the data codes ascribed to the various answers to the questions in the survey. Numbering allows the researcher to conduct statistical analysis.

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CASE SOLUTIONS Case 9.1

unBEARable!

Case Objective This case involves assessing demand for a new cell phone case that dispenses bear spray and simultaneously calls 911 in case someone is attacked. The inventors will create a survey to determine demand for the product and are attempting to eliminate errors in the process.

Answers to Case Questions For each of the following survey items, identify intentional and unintentional respondent errors that can occur and suggest ways to reduce or minimize each one.

1. Are you willing to answer a survey on personal safety?

Intentional errors:  Falsehoods: Respondents may refuse due to privacy concerns but answer "yes" to avoid scrutiny.  Nonresponse: Those uninterested may skip the question or exit the survey.

Unintentional errors:  Misunderstanding: Respondents may confuse "willingness" with actual behavior.

Solutions:  Provide incentives to encourage participation.  Include a brief purpose statement to clarify scope and ensure responses are confidential.

2. Are you familiar with bear spray?

Intentional errors:  Speeding: Respondents may rush through the survey.

Unintentional errors:  Guessing: Confusion between bear spray and normal pepper spray.

Solutions:  Add a definition: Bear spray is an extremely concentrated pepper-based deterrent used in wildlife encounters.  Include a follow-up question to assess actual knowledge (e.g., How does bear spray work?).

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3. For each of the following 20 situations, how concerned are you about being attacked on campus? a. In restrooms b. In professors’ offices c. While walking inside classroom buildings d. (Continues for 17 more situations) Intentional errors:  Speeding: Respondents may rush through the survey.

Unintentional errors:  Attention Loss: Loss of concentration or zoning out.

Solution:  Shorten to 10 situations.

4. Do you worry about your personal safety on campus?

Intentional errors:  Falsehoods: Lying or otherwise not answering truthfully.

Unintentional errors:  Attention Loss: Loss of concentration or zoning out.

Solutions:  Use a Likert scale: How often do you worry about safety?

(Never/Rarely/Sometimes/Often)  Specify context: In the past 6 months.

5. Do you think you can maintain an app that requires an attachment to your phone that you must keep charged up and connected to your GPS service and full of bear spray that ensures your personal safety?

Intentional errors:  Falsehoods: Lying or otherwise not answering truthfully.  Misunderstanding: Respondents may misunderstand the question given its complexity.

Unintentional errors:  Attention Loss: Loss of concentration or zoning out.

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Solutions:  Simplify: Could you regularly charge a safety device connected to your phone?  Split into two questions (maintenance and GPS).

6. How much would you be willing to pay to defend yourself from being viciously attacked?

Intentional errors:  Falsehoods: Lying or otherwise not answering truthfully.  Nonresponse: Failure to answer specific questions.

Unintentional errors:  Attention Loss: Loss of concentration or zoning out.

Solutions:  Use a bracketed scale: $0–$50 / $51–$100 / $101–$150.  Anchor with market prices: Similar products cost $X. What would you pay?

7. Are you concerned that the attachment might leak odorous liquid into your purse or backpack?

Intentional errors:  Falsehoods: Lying or otherwise not answering truthfully.  Nonresponse: Failure to answer specific questions.  Neutral phrasing: How concerned are you about potential leaks?  Add “Not applicable” for noncarriers.

8. What percentage of women in college are concerned with personal safety on campus?

Intentional errors:  Falsehoods: Lying or otherwise not answering truthfully.  Nonresponse: Failure to answer specific questions.

Unintentional errors:  Guessing: Providing answers without any factual basis.

Solutions:  Rephrase the question: “How concerned are you about campus safety?”; add a Likert scale to answer.

9. If you are not concerned with your personal safety on campus, simply check off “I don’t have any concerns” and stop taking the survey.

Intentional errors:  Nonresponse bias: Excluding unconcerned respondents skews data.

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Unintentional errors:  Drop-off: Respondents may exit even if partially concerned.

Solutions:  Remove the opt-out clause.  Use a filter question: Skip to Q10 if unconcerned.

10. Please respond to this text and take about 20 minutes to complete the survey.

Intentional errors:  Nonresponse: Time estimate deters busy participants.

Unintentional errors:  Attention Loss: Loss of concentration or zoning out.

Solutions:  Pilot test the survey to determine response rates.  Potentially shorten the survey.

Case 9.2 Medi-Bridge, Inc. Online Panel Case Objective This case acquaints students with the practical problems of running a data collection company, and it requires them to assess and compare capabilities of competing online panel providers.

Answers to Case Questions Keeping the quality of the data as a foremost concern, compare the practices of these two competing panel companies and recommend one that you think Medi-Bridge should use for the survey. Why have you selected your choice over the competitor?

The table is provided below with an “Analysis” row after each set of company responses.

Question 1. What experience does your company have with providing online samples for market research?

Company A: We have conducted market research since 1999. We are the only panel company to take advantage of computer technology and provide a truly nationally representative U.S. sample online.

Company B: We have supplied online U.S. samples since 1990, Europe samples since 2000, and our Asian Panel went “live” in 2005. We have supplied approximately 5,000 online samples to our clients in the past 10 years.

Company B is older and it has global coverage whereas A is younger an only has a U.S. sample.

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Question 2. Please describe and explain the type(s) of online sample sources from which you get respondents.

Company A: Individuals volunteer for our online panel via our website where they are informed that they will be compensated with redemption points based on the number of surveys in which they take part.

Company B: We recruit household members by asking them to join our panel, telling them they can have a say in the development of new products and services. They are rewarded with “credits” that they can use to claim products.

Company B is more selective in that it has direct recruitment. Company A seems to have an “anyone” recruitment system.

Question 3. What steps do you take to achieve a representative sample of the target population?

Company A: Our master panel of over 100,000 individuals mirrors the population distribution of the U.S. Census with respect to 10 demographic factors such as gender, education, income, marital status, etc.

Company B: The client specifies the target market population using any one of 1,000 variables, including demographic, ownership, purchase behavior, and other variables. We invite panelists who meet the client’s criteria to participate in the survey.

Company B’s drop-out is low and its replacement system is superior to that of Company A. Question 4. What profiling data are held on respondents? How is it done?

Company A: We maintain extensive individuallevel data, in the form of about 1,000 variables including demographics, household characteristics, financials, shopping and ownership, life styles, and more. All are updated every other year.

Company B: For each panelist, we have about 2,500 data points on demographics, assortment of goods and services owned, segmentation/lifestyle factors, health-related matters, political opinions, travel, financials, Internet usage, leisure activities, memberships, etc. Our updating is done annually.

It is obvious that Company B has more “stored” variables in their panel dataset.

Plus, the annual update is more current than Company A’s every other year update.

Question 5. Please describe your survey invitation process.

Company A: Typically, a survey invitation is sent via email and posted on every selected panel member’s personal member page.

In either case, we have a link to the online survey location: “Click here to start your survey.” The email invitation is sent daily to selected panelists until the survey quota is filled.

Company B: Based on the client’s sample requirements, we email selected panelists with a link to the online survey. After 48 hours, if the panelist has not participated, we send a reminder, and again 48 hours after the reminder.

The systems are almost identical except Company A’s reminder is daily while Company B’s reminder is every other day.

Assuming there are no other factors to consider (such as price), select Company B as it is superior to Company A in four out of the five areas.

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CHAPTER 9—DATA QUALITY ISSUES AND DATASETS ACTIVE LEARNING 9.3 Work with an IBM SPSS Dataset For this learning exercise, you will need instructions from our course Instructor on how to gain access to IBM SPSS and to the Homespread Restaurant dataset. Once you have used SPSS to open up the dataset, answer each of the following questions.

1. In the Data View a. How many total variables are in the dataset?

b. What is the variable name of the last variable in the dataset?

c. How many total respondents are in the dataset?

d. Under what SPSS main menu item is found the Recode procedure?

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2. In the Variable View a. What is the coding system (Value Labels) for Appetizer?

b. What is the coding system (Value Labels) for Prices?

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c. What is the coding system (Value Labels) for ActiveLife?

d. How many missing values are found for the Gender variable?

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Note: SPSS treats blanks as “System Missing” and they are not noted as Missing Values here.

The missing values here must be identified with a unique code such as “99.” e. Some variables have a small yellow ruler icon while some have a small icon with three intersecting circles. What do these symbols designate?

The yellow rule designates a scale variable (interval or ratio) while the circles identify a categorical or nominal variable. (The user must set this in SPSS: SPSS does not detect the nature of variables automatically and the default is “scale.”)

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XLDA Pro Output*

*All SPSS output done with XL Data Analyst Pro CHAPTER 9—DATA QUALITY ISSUES AND DATASETS XL Data Analyst Pro Appendix XLDA Exercise: Work with an XLDA Dataset For this learning exercise, you will need instructions from our course Instructor on how to gain access to the Homespread Restaurant XLDA dataset file. Once you have used Excel to open up the dataset, answer each of the following questions.

1. In the Data Sheet a. How many total variables are in the dataset?

Column ZX is the 50th column, so 50 variables total.

b. What is the variable name of the last variable in the dataset?

Marital Status c. How many total respondents are in the dataset?

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The first row is reserved for the variable name, so 1,000 rows = 1,000 respondents.

2. In the Define Variables Sheet a. What is the coding system (Value Codes and Labels) for Salad?

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b. What is the coding system (Value Codes and Labels) for Prices?

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c. What is the coding system (Value Codes and Labels) for ActiveLife?

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d. If the response to “Ordered Appetizer on last visit?” was No, Yes, or Maybe with codes 0, 1, and 2, respectively, what changes should be made on the

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Define Variables sheet? Be aware that spaces are important with XLDA Value Codes and Value Labels. (Do not actually change the Define Variables sheet.)

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CHAPTER 10 PERFORMING DESCRIPTIVE ANALYSIS, COMPUTING CONFIDENCE INTERVALS, AND TESTING HYPOTHESES LEARNING OBJECTIVES In this chapter you will learn: 10.1 Describe descriptive analysis measures and how each is used 10.2 Relate how to report descriptive findings to clients 10.3 Demonstrate how statistical inference differs from descriptive analysis 10.4 Estimate the population percent or mean 10.5 Show how to communicate confidence interval insights to clients 10.6 Describe hypothesis tests and how they are communicated to clients 10.7 Use SPSS to obtain a confidence interval and perform a hypothesis test CHAPTER OUTLINE

Understanding Descriptive Analysis 

Measures of Central Tendency Summarize the “Typical” Respondent o Mode o Median o Mean



Measures of Variability Relate the Variability of Respondents o Frequency and Percentage Distribution o Range o Standard Deviation



When to Use Each Particular Descriptive Analysis Measure Copyright © 2026 Pearson Education, Inc.



Obtaining Descriptive Findings with SPSS

  

How to Use SPSS to Open Up and Use the Homespread Restaurant Dataset How to Use SPSS to Obtain a Frequency Distribution and the Mode How to Use SPSS to Find the Mean, Range, and Standard Deviation

Reporting Descriptive Findings to Clients  

Reporting Scale Data Findings (Ratio and Interval Scales) Reporting Nominal or Categorical Data Findings

Statistical Inference: Sample Statistics and Population Parameters Parameter Estimation: Estimating the Population Percent or Mean  Sample Statistic  Standard Error  Confidence Intervals How to Interpret a Population Mean or Percentage Confidence Interval  How to Use SPSS to Obtain and Use a Confidence Interval for a Mean Reporting Confidence Intervals to Clients Hypothesis Tests   

How to Test a Hypothesized Population Parameter Value Effect Size: A Way to Assess Strength of Evidence How to Use SPSS to Test a Hypothesis for a Mean

Reporting Hypothesis Tests to Clients Using SPSS for Confidence Intervals and Hypothesis Tests for Proportions KEY TERMS Confidence intervals Data analysis Descriptive analysis Effect size

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Frequency distribution Hypothesis Hypothesis test Hypothesis testing Hypothesized population parameter Inference Mean Measures of central tendency Measures of variability Median Mode Most commonly used level of confidence Parameter estimate Parameter estimation Parameters Percentage distribution Range Sampling distribution concept Standard deviation Standard error Statistical inference Statistics Variance

TEACHING SUGGESTIONS 1. Chapter 10 describes descriptive analysis in detail. Inferential analysis is also briefly discussed. Table 10.1 indicates how the level of measurement relates to each of the three measures of central tendency and measures of variation.

2. Students can fall into the assumption that because SPSS allows them to define variables as nominal, ordinal, or scale, it “knows” the scaling assumptions of the variables and Copyright © 2026 Pearson Education, Inc.

therefore will perform the correct descriptive analysis. This assumption is not true as the only relevance of the measurement indication is in SPSS chart procedures where nominal and ordinal variables are treated as categorical.

3. The use of descriptive statistics can be illustrated effectively by using a research report.

Make PowerPoint presentation files or Word files of the questionnaire used in the study, and have students identify the scaling assumptions and appropriate descriptive statistics for various questions. Then show the tables in the report that communicate the findings.

With a multimedia teaching platform, instructors can perform the descriptive statistics with SPSS, illustrating both the cursor movements and SPSS output.

4. Instructors who want a different data set or who want to have students learn firsthand how to build an SPSS data set might consider this suggestion. Have the class identify a topic of interest pertaining to the university and design a self-administered questionnaire.

Design the SPSS template for data entry by entering in variable names and value labels.

Distribute the SPSS template file to students. Each student should gather a set number of questionnaires and enter them into the SPSS template file and save it as a unique name (such as lastname.sav). The files can be merged into a master SPSS data file by using the “merge files” command on a master version of SPSS. Note: The merge files command is not available on the student version of SPSS. By spreading the data collection and data entry work across the class, a large data set can be obtained quickly and efficiently.

5. The case Homespread Restaurant has a complete SPSS data set for examples in the text as well as exercises and an integrated case analysis task for each analysis chapter.

6. The effect of sample size on a confidence interval can be demonstrated with a simple spreadsheet program such as Excel or Google Sheets. Let’s assume that p has been found to be 40%, what would be the confidence intervals under successively larger sample sizes?

The following table is a spreadsheet-like comparison for 95% confidence intervals.

Sample Size

Lower Limit

Upper Limit

Range

100

30.4%

49.6%

19.2%

250

33.9%

46.1%

12.1%

500

35.7%

44.3%

8.6%

1000

37.0%

43.0%

6.1%

1500

37.5%

42.5%

5.0%

2000

37.9%

42.1%

4.3%

7. With SPSS for Windows available to them, student may not appreciate doing hand Copyright © 2026 Pearson Education, Inc.

calculations of confidence intervals or hypothesis tests. These calculations are more than tedious exercises. The point to them is to have students see what is in the numerator and what is in the denominator of each formula, so they can understand what is driving the computed value. Typically, the sample size is always in the denominator, while the hypothesized value and sample statistic are in the numerator. Larger sample sizes drive the computed value (e.g., a t-value) down; whereas larger differences between the sample statistic and the hypothesized value will drive it up.

8. There are a few, but not many, hand calculation end-of-chapter questions. It may be beneficial to devote part of a class to in-class exercises where students calculate confidence intervals or test hypotheses using the end-of-chapter questions or questions generated by the instructor. Ask students to bring their hand calculators. Having each student work independently in a class setting and providing the step-by-step calculations will force students to use the formulas correctly.

ACTIVE LEARNING EXERCISES Compute Measures of Central Tendency and Variability This exercise provides a dataset and requires students to compute the appropriate measures of central tendency and variability. The answers are provided below the data table.

Mean Standard Deviation Maximum Minimum Median Mode

For how many years have you owned your gas grill?

Where did you purchase your gas grill?

About how much did your pay for your gas grill?

4.9 2.4 10 1 4.5 4

Not appropriate Not appropriate Not appropriate Not appropriate Not appropriate Not appropriate

$540 $274 $1,200 $200 $450 $400

How SPSS Handles Missing Data Students are instructed to set the first 10 respondents’ hometown size values to blank or empty cells which SPSS treats as “missing data.” The resulting SPSS output for frequencies identifies 10 “System” Missing data points.

Statistics

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Size of home town or city N

Valid

990

Missing

10

Size of home town or city Cumulative Frequency Valid

Missing

Percent

Valid Percent

Percent

Under 10K

40

4.0

4.0

4.0

10K to 100K

187

18.7

18.9

22.9

100K to 500K

241

24.1

24.3

47.3

500K to 1 million

395

39.5

39.9

87.2

1 million and more

127

12.7

12.8

100.0

Total

990

99.0

100.0

System

10

1.0

1000

100.0

Total

Find a Median with SPSS Students should follow the instructions to obtain the median and the following output.

Statistics Number of people in household N

Valid

1000

Missing

0

Median

3.00

Number of people in household Cumulative Frequency Valid

Percent

Valid Percent

Percent

1

107

10.7

10.7

10.7

2

365

36.5

36.5

47.2

3

386

38.6

38.6

85.8

4

106

10.6

10.6

96.4

5

30

3.0

3.0

99.4

6

6

.6

.6

100.0

1000

100.0

100.0

Total

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Using SPSS for a Mean and Related Descriptive Statistics Here is the SPSS output that students will obtain if they do the exercise properly.

Descriptive Statistics N Number of people in

Minimum

Maximum

1

6

1000

Mean

Std. Deviation

2.61

.958

household Valid N (listwise)

1000

Calculate Some Confidence Intervals This Active Learning section will give you practice in calculating confidence intervals. For this set of exercises, you are working with a survey of 1,000 people who responded to questions about satellite radio. The questions, sample statistics, and other pertinent information follow. Compute the 95% confidence interval for the population parameter in each case. Be certain to follow the logic of the questions, as it has implications for the sample size pertaining to each question.

Question

Sample 95% Confidence Interval Statistic(s) Lower boundary

Upper boundary

Have you heard of SiriusXM satellite radio?

500/1,000

p  z s p

50% responded “yes”

 50  1.96 *  50  1.58  48.4%

 50  1.58  51.6%

If yes, do you own a SiriusXM

150/500 30% responded “yes”

p  z s p

p  z s p

satellite radio?

 30  1.96 *  30  1.45  28.5%

p  z s p 50 * (100  50) 1000

30 * (100  30) 1000

 50  1.96 *

 30  1.96 *  30  1.45  31.5%

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50 * (100  50) 1000

30 * (100  30) 1000

If you own SiriusXM satellite radio, about how many minutes of this radio programming did you listen to last week?

Average of 100.7 minutes; standard deviation of 25.0 minutes for the 150 SiriusSM satellite radio owners

x  z s x

x  z s x

 100 .7  1.96 *

25

 100 .7  1.96 *

150

 100 .7  4.00  96 .7

25 150

 100 .7  4.00  104 .5

Use SPSS for a Confidence Interval for a Mean This exercise requires students to use the entire sample for the Auto Concepts survey data set and to have SPSS compute the confidence interval.

You have just learned that the 95% confidence interval for the “Gasoline emissions contribute to global warming” variable would include an average of 4.62, with a lower boundary of 4.51 and an upper boundary of 4.72. What about the statement “I am worried about global warming”?

To answer this question, you must use SPSS to compute the 95% confidence interval for the mean of this variable. Use the clickstream identified in Figure 10.7 and use the annotations in Figure 10.8 to find and interpret your 95% confidence interval for the public’s opinion on this topic. How do you interpret this finding, and how does this confidence interval compare to the one we found for “Gasoline emissions contribute to global warming”?

One-Sample Statistics N I am worried about global

Mean

1000

Std. Deviation

Std. Error Mean

1.329

.042

4.88

warming

One-Sample Test Test Value = 0 95% Confidence Interval of

t

df

Sig. (2-

Mean

tailed)

Difference

the Difference Lower

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Upper

I am worried about

116.080

999

.000

4.880

4.80

4.96

global warming

The mean is 4.88 and the 95% confidence interval is 4.80 to 4.96. So, the mean is higher, and the confidence interval is somewhat less (.21 versus .16). The reason for the similarity is that the samples sizes are both 1,000 but the standard deviations are different (1.697 versus 1.329).

ANSWERS TO END-OF-CHAPTER QUESTIONS 10-1 Indicate what data analysis is and why it is useful.

Data analysis is defined as the process of describing a dataset by computing a small number of statistics that characterizes various aspects of the data set. Data analysis distills the dataset while retaining enough information so the client can mentally envision its salient characteristics.

10-2 What is “descriptive analysis”? Indicate what it describes and how it is useful.

Descriptive analysis is used by marketing researchers to describe the sample dataset in such a way as to portray the “typical” respondent and reveal the general pattern of responses. Descriptive analysis includes measures of central tendency such as the mean, median, and mode. Measures of variability, including the frequency distribution, range, and standard deviation, provide bases for envisioning the degree of similarity of all respondents to the typical respondent. The chapter also contained instructions and formulas of key variability measures. Basically, descriptive analysis yields a profile of how respondents in the sample answered the various questions in the survey.

10-3. What is a measure of central tendency and what does it describe?

The term, central tendency, applies to any statistical measure used that somehow reflects a typical or frequent response. Three such measures of central tendency are commonly used as data reduction devices. They are the mode, the median, and the mean.

10-4. Explain the concept of variability and relate how it helps in the description of responses to a particular question on a questionnaire.

All measures of variability are concerned with depicting the “typical” difference between the values in a set of values. It is one matter to know the mean or some Copyright © 2026 Pearson Education, Inc.

other measure of central tendency, but it is quite another matter to be aware of how close to that mean or measure of central tendency the rest of the values fall.

Knowing the variability of the data could greatly impact a marketing decision based on the data because it expresses how similar the respondents are to one another on the topic under examination. There are three measures of variability: frequency (percentage) distribution, range, and standard deviation.

10-5. Using examples, illustrate how a frequency distribution (or a percentage distribution) reveals the variability in responses to a Likert-type question in a lifestyle study. Use two extreme examples that illustrate much variability and little variability.

The much variability example would have respondents spread across the response scale options, while the little variability example would have respondents “loaded” on a few of the response options. Here is an example: Response Scale Option Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree

Much Variability 25% 20% 15% 20% 20%

Little Variability 0% 5% 10% 70% 15%

10-6. Indicate what a range is and where it should be used as an indicator of the amount of dispersion in a sample.

The range identifies the distance between lowest value (minimum) and the highest value (maximum) in an ordered set of values. The range specifies the difference between the end points in a distribution of values arranged in order. It should be used with interval or ratio scales.

10-7. With explicit reference to the formula for a standard deviation, show how it measures how different respondents are from one another.

The equation for a standard deviation is as follows:

n

( x - x )

2

i

Standarddeviation(s) =

i=1

n -1

In this equation, xi stands for each individual observation and x̄ stands for the mean.

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The formula reveals that each respondent’s answer is compared to the overall average by a subtraction step. The difference is squared to offset the cancellation problem due to negative values.

10-8. Explain why the mean is an inappropriate measure of central tendency in each of the following cases: The scaling assumptions underlying a question determine which statistic is appropriate. Table 10.2 indicates that the mean should be used when working with interval or ratio scaled data. The scaling assumptions in each case are lower than interval or ratio. a. Gender of respondent (Male or Female) This is a nominal scale. b. Marital status (Single, Married, Divorced, Separated, Widowed, Other) This is a nominal scale. c. A taste test where subjects indicate their first, second, and third choices of Sam Adams Light, Heineken Light, and Michelob Light.

Rank orders are ordinal scales.

10-9. For each of the cases in question 8, what is the appropriate central tendency measure?

Students must identify the scaling assumptions for each measure and indicate the appropriate central tendency measure.

The correct central tendency measure is listed beneath each case. a. Gender of respondent (Male or Female) Use the mode. b. Marital status (Single, Married, Divorced, Separated, Widowed, Other) Use the mode. c. A taste test where subjects indicate their first, second, and third choices of Sam Adams Light, Heineken Light, and Michelob Light.

Use the median.

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10-10. In a survey on productivity apps, respondents write in the number of apps they have installed in the past six months. What measures of central tendency can be used? Which is the most appropriate and why?

Although there is a true zero point, and the distances between the ordered, successive numbers of the apps installed, the scale is ratio. The mode, median, and mean can be used. The mean is the most appropriate because it represents the most information about the typical respondent.

10-11. If you use the standard deviation as a measure of the variability in a sample, what statistical assumptions have you implicitly adopted?

A standard deviation indicates the degree of variation in a way that can be translated into a bell-shaped curve distribution, known as the normal distribution.

10-12. What essential factors are taken into consideration when statistical inference takes place?

Statistical inference is a set of procedures where the sample size and sample statistics are used to make estimates of population parameters. The key factors taken into consideration are the sample size, the sample statistic, and the variability found in the sample. The sample size and variability are used to estimate the amount of sampling error.

10-13. What is meant by “parameter estimation,” and what function does it perform for a researcher?

Parameter estimation is used to estimate the population value (parameter) through the use of confidence intervals. It is the process of using sample information to compute an interval that describes the range of a parameter such as the population mean (µ) or the population percentage (Π). It involves the use of three values: (1) the sample statistic (such as the mean or the percentage), (2) the standard error of the statistic, and (3) the desired level of confidence (usually 95% or 99%).

Parameter estimation serves the purpose of translating the sample statistic into a statement about the population’s true value.

10-14. How does parameter estimation for a mean differ from that for a percentage?

The major difference is in the computation of the standard error. With a mean, the standard deviation is used as a measure of the variability, while with a percentage the variability is measured by the quantity (PQ). Also, means are used for metricscaled variables, while percentages are used for categorical variables.

10-15. List the steps in statistical hypothesis testing and the steps in intuitive hypothesis Copyright © 2026 Pearson Education, Inc.

testing. How are they similar? How are they different?

The two types of hypothesis tests are listed and contrasted following. As can be seen, the intuitive approach does not rely on a random sample, nor is a sample statistic computed. The steps are very similar in order and nature, but intuitive hypothesis testing takes place without formal concern for the representativeness of the evidence and without a statistical test.

Statistical Hypothesis Steps Step 1. Begin with a statement about what you believe exists in the population; that is, the population mean or percentage.

Intuitive Hypothesis Steps Believe something.

Step 2. Draw a random sample and determine the sample statistic.

Find some evidence that about your belief.

Step 3. Compare the statistic to the hypothesized parameter.

Compare the evidence to your belief.

Step 4. Decide whether the sample supports the original hypothesis.

Step 5. If the sample does not support the hypothesis, revise the hypothesis to be consistent with the sample’s statistic.

The evidence agrees or does not agree with your belief.

Find something that disagrees with your belief, and now believe something different.

10-16. What does it mean when a researcher says that a hypothesis has been supported at the 95% confidence level?

It means that the sample finding (statistic and variability) is such that the statistic falls in the interval describing 95% of the sampling distribution. The sample and its statistic are but one of many, many theoretical samples making up the sampling distribution that has the hypothesized population value as the center of the sampling distribution.

10-17. Here are several computation practice exercises to help you identify which formulas pertain and learn how to perform the necessary calculations. In each case, perform the necessary calculations and write your answers in the column identified by “Your Confidence Intervals” or “Your Test Results.” a. Determine confidence intervals for each of the following:

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Mean of 150, sd of 30, n of 200, level of 95%—Use mean equation

150  1.96 x

30 200

 150  4.2  145.8  154.2 Percent of 67%, n of 300, level of 99% —Use percentage formula

(67)(33) 300

67  2.58 x

 67  7.0  60.0  74.0

Mean of 5.4, sd of 0.5, n of 250, level of 99%—Use mean formula

5.4  2.58 x

0.5 250

 5.4  .08  5.32  5.48

Percent of 25.8%, n of 500, level of 99%—Use percentage formula

25.8  2.58 x

(25.8)(74.2) 500

 25.8  5.1  20.7  30.9 b. Test the hypothesis and interpret your findings.

Hypothesis: mean=7.5, mean of 8.5, sd of 1.2, n of 670, level of 95%

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z

8.5  7.5 1.2 670



1.0 .05  20

The hypothesis is not supported.

Hypothesis: percent=86%, p of 95%, n of 1,000, level of 99%

z

95  86

955 1000

9 .7  12.85 

The hypothesis is not supported.

Hypothesis: mean greater than 125, mean of 135, sd of 15, n of 500, level of 95% 135  125 z 15

500 10 .67  14.9 

The hypothesis is supported.

Hypothesis: percent less than 33%, p of 31, n of 120, level of 99%

z

31  33 (31)(69) 120

2 4.2  .48 

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The hypothesis is not supported.

10-18. Alamo Rent-A-Car executives believe that Alamo accounts for about 50% of all Cadillacs that are rented. To test this belief, a researcher randomly identifies 20 major airports with on-site rental car lots. Observers are sent to each location and instructed to record the number of rental-company Cadillacs observed in a four-hour period. About 500 are observed, and 30% are observed being returned to Alamo Rent-A-Car. What are the implications of this finding for the Alamo executives’ belief?

Students will need to perform and interpret a hypothesis test for a percentage. p - H z= sp p - H pq n

=

30 - 50 30x70 500

=

=

=

- 20 2100 500 - 20 4.2

= - 9.76

The executives have stated a hypothesis of p=50%. The sample information can be used to test the hypothesis as follows (using 95% level of confidence): A computed z of −9.76 does not support the hypothesis.

CASE SOLUTIONS Case 10.1 Nouvelle Restaurant Survey Descriptive and Inference Analysis Case Objective

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Students must use the SPSS data set pertaining to Nouvelle Restaurant case. They will determine the scaling assumptions underlying each question, run the proper descriptive analysis, and interpret the findings.

Answers to Case Questions A convenient way to identify the response codes used in this data set is to open the SPSS file in SPSS and use the Utilities-Variables command sequence. This command will provide a window where each variable’s label, value codes, and value labels can be seen.

The “measure” aspect of each variable has been identified as “nominal” or “scale,” with “scale” pertaining to interval or ratio scaling assumptions.

1. Determine what variables are categorical (either nominal or ordinal scales), perform the appropriate descriptive analysis, and interpret it.

Interpretation: All respondents eat in an upscale restaurant at least once every two weeks (because this is the qualification to take part in the survey).

Would you describe yourself as one who listens to the radio?

Cumulative Frequency Valid

Percent

Valid Percent

Percent

Yes

385

96.3

96.3

96.3

No

15

3.8

3.8

100.0

Total

400

100.0

100.0

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A very large majority listens to the radio.

To which type of radio programming do you most often listen?

Cumulative Frequency Valid

Missing

Valid Percent

Percent

Country & Western

66

16.5

17.1

17.1

Easy Listening

78

19.5

20.3

37.4

Rock

159

39.8

41.3

78.7

Talk/News

82

20.5

21.3

100.0

Total

385

96.3

100.0

System

15

3.8

400

100.0

Total



Percent

Practically all respondents listen to online music with Rock as the most popular type listened to.

Would you describe yourself as a viewer of TV local news?

Cumulative Frequency Valid

Percent

Valid Percent

Percent

Yes

356

89.0

89.0

89.0

No

44

11.0

11.0

100.0

Total

400

100.0

100.0

A very large majority views the TV local news.

Which newscast do you watch most frequently?

Cumulative Frequency Valid

Missing Total

Percent

Valid Percent

Percent

7:00 a.m. News

32

8.0

9.0

9.0

Noon News

1

.3

.3

9.3

6:00 p.m. News

129

32.3

36.2

45.5

10:00 p.m. News

194

48.5

54.5

100.0

Total

356

89.0

100.0

System

44

11.0

400

100.0

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Most respondents watch TV local news with 10 p.m. as the most popular time slot.

Do you read the newspaper?

Cumulative Frequency Valid

Percent

Valid Percent

Percent

Yes

378

94.5

94.5

94.5

No

22

5.5

5.5

100.0

Total

400

100.0

100.0

A very large majority reads the newspaper.

Which section of the local newspaper would you say you read most frequently?

Cumulative Frequency Valid

Missing

Valid Percent

52

13.0

13.8

1387

Business

65

16.3

17.2

31.0

Local

118

29.5

31.2

62.2

Classifieds

56

14.0

14.8

77.0

Life, Health, & Entertainment

87

21.8

23.0

100.0

Total

378

94.5

100.0

System

22

5.5

400

100.0

Practically all respondents read the local newspaper on a daily basis with local news as the most popular section.

Do you subscribe to City Magazine?

Cumulative Frequency Valid

Percent

Editorial

Total



Percent

Percent

Valid Percent

Percent

Yes

193

48.3

48.3

48.3

No

207

51.7

51.7

100.0

Total

400

100.0

100.0

About one-half of the respondents subscribe to City Magazine.

Just under one-half subscribe to City Magazine.

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What is your marital status?

Cumulative Frequency Valid

Valid Percent

Percent

Single

113

28.2

28.2

28.2

Married

252

63.0

63.0

91.3

35

8.8

8.8

100.0

400

100.0

100.0

Other (Divorced, Widow, etc.)

Total



Percent

Two-thirds of respondents are married and about one-third are single.

Please check the letter that includes the Zip Code in which you live (coded by letter).

Cumulative Frequency Valid



Percent

Valid Percent

Percent

A (1 & 2)

21

5.3

5.3

5.3

B (3, 4, & 5)

118

29.5

29.5

34.8

C (6, 7, 8, & 9)

220

55.0

55.0

89.8

D (10, 11, & 12)

40

10.3

10.3

100.0

Total

400

100.0

100.0

About one-half of respondent reside in Area C while slightly less than one-third reside in Area B.

What is your gender?

Cumulative Frequency Valid



Percent

Valid Percent

Percent

Male

204

51.0

51.0

51.0

Female

196

49.0

49.0

100.0

Total

400

100.0

100.0

The gender ratio of the sample is about 50/50 male/female.

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Probable Patron of Nouvelle Restaurant Cumulative Frequency Valid



Percent

Valid Percent

Percent

Yes

110

27.5

27.5

51.0

No

290

72.5

72.5

100.0

Total

400

100.0

100.0

A little more than one-quarter of the respondents are classified as probable patrons of Nouvelle Restaurant.

2. Determine what questions are scale variables (either interval or ratio scales), perform the appropriate descriptive analysis, and interpret it.

The “scale” variables identified in the SPSS data set are largely nominal scales (likelihood scale or Likert disagree-agree scale). Ratio variables are dollars spent per month, average price of an evening entrée, year born, and family size.

All require the use of Descriptives to compute the mean and standard deviation which are the appropriate descriptive statistics. The mean describes the central tendency of to each question. Descriptives output follows, while the standard deviation indicates the amount of variability in the responses.

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Interpretation 

Respondents spend, on average, about $400 per month on restaurants, and expect to pay about $36 per entrée at Nouvelle Restaurant.

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

On average, respondents are neutral as to likelihood of patronizing Nouvelle Restaurant.



Most preferred features are simple décor and top 40 background music.



Respondents’ averages: age is 43–44 years with about 8 years of education beyond high school, family size of 3+, and family annual income of around $133 thousand.

3. What are the population estimates for each of the following? a. Preference for “easy listening” radio programming b. Viewing of 10:00 p.m. local news on TV c. Subscribe to City Magazine d. Average age of heads of households e. Average total dollars spent per month in restaurants a. Preference for “easy listening” radio programming To which type of radio programming do you most often listen?

Cumulative Frequency Valid

Missing Total

Percent

Valid Percent

Percent

Country

66

16.5

17.1

17.1

Easy Listening

78

19.5

20.3

37.4

Rock

159

39.8

41.3

78.7

Talk/News

82

20.5

21.3

100.0

Total

385

96.3

100.0

System

15

3.8

400

100.0

Students will need to use the formula for the confidence interval for a percent. The lower bound is 16.4% and the upper bound is 24.6% (determined using SPSS One Sample Proportions test which is not described in the textbook).

b. Viewing of 10.00 p.m. local news on TV Which newscast do you watch most frequently?

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Cumulative Frequency Valid

Missing

Percent

Valid Percent

Percent

7:00 a.m. News

32

8.0

9.0

9.0

Noon News

1

.3

.3

9.3

6:00 p.m. News

129

32.3

36.2

45.5

10:00 p.m. News

194

48.5

54.5

100.0

Total

356

89.0

100.0

System

44

11.0

400

100.0

Total

Students will need to use the formula for the confidence interval for a percent. The lower bound is 49.3% and the upper bound is 59.6% (determined using SPSS One Sample Proportions test which is not described in the textbook). c. Subscribe to City Magazine Do you subscribe to City Magazine?

Cumulative Frequency Valid

Percent

Valid Percent

Percent

Yes

193

48.3

48.3

48.3

No

207

51.7

51.7

100.0

Total

400

100.0

100.0

Students will need to use the formula for the confidence interval for a percent. The lower bound is 43.4% and the upper bound is 53.1% (determined using SPSS One Sample Proportions test which is not described in the textbook). d. Average age of head of households T-test One-Sample Statistics N What is

Mean 400

43.54

Std. Deviation

Std. Error Mean

9.516

.476

your age?

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One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t What is

df

91.506

Sig. (2-tailed)

Mean Difference

.000

43.538

399

Lower

Upper

42.60

44.47

your age?

Interpretation: The 95% confidence interval population estimate is 42.6 to 44.5 years

e. Average total dollars spent per month in restaurants One-Sample Statistics N How many total dollars do

Mean 400

Std. Deviation

Std. Error Mean

$92.706

$4.635

$400.05

you spend per month in restaurants (for your meals only)?

One-Sample Test Test Value = 0

t

df

How many total dollars

86.3

399

do you spend per month

05

Mean

95% Confidence Interval of

Significance

Differen

the Difference

One-sided p Two-sided p

ce

<.001

Lower

<.001 $400.05

Upper

$390.94

$409.17

23

in restaurants (for your meals only)?

One-Sample Effect Sizes 95% Confidence Interval of the Difference Standardizer*

Point

Lower

Estimate

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Upper

Cohen’s d

$92.706

4.315

4.000

4.630

spend per month in

Hedges’s

$92.881

4.307

3.992

4.621

restaurants (for your

correction

How many total dollars do you

meals only)? *The denominator used in estimating effects sizes.

Cohen’s d uses the sample standard deviation.

Hedges’s correction uses the sample standard deviation, plus a correction factor.

The 95% confidence interval is $391 to $409 4. Because this restaurant will be upscale, it will appeal to high-income consumers. The investors hope that the households represented in the survey have an average income level of $150,000. Test this hypothesis.

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The average is $133.24 (thousand), and the p value is <.001, so the hypothesis of $150 thousand is not supported. However, the Cohen’s d falls in the small effect size range, meaning that the evidence against the hypothesis is not strong.

5. With respect to pricing for Nouvelle Restaurant, management believes that an average evening

meal entrée item alone will be somewhere in the range of $36. Does this price meet with the expectations of individuals who eat at an upscale restaurant at least once every two weeks?

The hypothesis of $36 is supported so this price does meet the expectations of the target market defined as individuals who eat at an upscale restaurant at least once every two weeks.

One-Sample Test Test Value = 4

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95% Confidence Interval of Mean t Prefer Formal Wait Staff

df

Sig. (2-tailed)

the Difference

Difference

Lower

Upper

12.299

71

.000

.681

.57

.79

Prefer Unusual Desserts

9.160

71

.000

.542

.42

.66

Prefer Large Variety of

8.664

71

.000

.514

.40

.63

Prefer Unusual Entrees

9.970

71

.000

.583

.47

.70

Prefer Elegant Decor

8.426

71

.000

.500

.38

.62

Prefer Classical

6.145

71

.000

.347

.23

.46

Attire

Entrees

Background Music

SOMEWHAT PREFER IS A 4 ON THE 5-POINT SCALE, SO TEST THE HYPOTHESIS THAT THE AVERAGE IS 4. HIS HYPOTHESES OF “SOMEWHAT PREFER” ARE ALL NOT SUPPORTED. HOWEVER, MANY OF THE AVERAGES ARE GREATER THAN 4, SO THE PRECISE HYPOTHESIS IS NOT SUPPORTED. PERFORM CONFIDENCE INTERVALS (BELOW), AND IT IS FOUND THAT ALL ARE PREFERRED IN A RANGE BETWEEN SOMEWHAT AND VERY STRONGLY PREFER.

One-Sample Test Test Value = 0 95% Confidence Interval of Mean t Prefer Formal Wait Staff

df

Sig. (2-tailed)

Difference

the Difference Lower

Upper

84.586

71

.000

4.681

4.57

4.79

Prefer Unusual Desserts

76.805

71

.000

4.542

4.42

4.66

Prefer Large Variety of

76.099

71

.000

4.514

4.40

4.63

Prefer Unusual Entrees

78.335

71

.000

4.583

4.47

4.70

Prefer Elegant Decor

75.835

71

.000

4.500

4.38

4.62

Prefer Classical

76.940

71

.000

4.347

4.23

4.46

Attire

Entrees

Background Music

Case 10.2 Homespread Restaurant Descriptive and Inference Analysis Copyright © 2026 Pearson Education, Inc.

Case Objective Students must use the SPSS data set pertaining to integrated case, Homespread Restaurant, determine the scaling assumptions underlying each question, run the proper descriptive analysis, and interpret the findings.

Answers to Case Questions The proper SPSS output follows each question.

1. What are the 50 variables in the dataset? That is, using SPSS Variable View, write a description of the code book that accompanies the Homespread Restaurant dataset.

NOTE: THIS IS XLDA PRO DEFINE VARIABLES WORKSHEET.

The code book can be constructed with each variable’s Name, Description, etc.

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2. What is the demographic composition of the sample? Perform the proper analysis for each variable and provide a sentence describing your finding for each one.

Use Descriptives for scale variables:  The respondents average age is about 44 years.  The average education is about 15 years.  The average household income level is $94,325.

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  

About 2/3 own a home while 1/3 rents.

The sample is roughly 50/50 female/male.

The sample is about 50/50 married, cohabitation/single.

3. How commonly do the respondents order each of the restaurant’s offerings such as appetizers? Perform the proper analysis for each variable and provide a sentence describing your finding for each one.

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In descending order, items ordered at Homespread Restaurant are:  Entrée—9 out of 10 customers  Salad—slightly more than ½ of customers  Dessert—½ of customers  Appetizer—½ of customers  Side—½ of customers  Alcohol—1/3 of customers 4. What are the performance ratings of all of the restaurant’s attributes such as ambiance, seating, etc. Based on your findings, what are the strengths and weaknesses of Homespread Restaurant?

Note: with descending means.

Using an action standard of >5, Homespread Restaurant strengths are:  Taste  Preparation  Quality Using an action standard of <4, Homespread Restaurant weaknesses are:  Portion Sizes  Waiting time

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5. Describe the ―traditional‖ media usage of respondents in the sample. Perform the proper analysis for each variable and provide a sentence describing your finding for each one.

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   

Favorite TV Show Type: no clear preference with sports and comedy about equal and accounting for about ½ of the viewing.

Favorite Radio genre: no clear preference with Classic Pop & Rock and Talk about equal and accounting for about ½ of the listening Favorite Magazine type: no clear preference with News Politics & Current Events slightly preferred over other types.

Favorite Local Newspaper Section: no clear preference with Local News and National News about equal and accounting for slightly less than ½ of the reading.

6. Describe the social media usage of the respondents in the sample. What social media type is most used and what type is least used?

Social Networks are used most while Online Games are used least.

7. Describe the lifestyle (active lives, etc.) of Homespread Restaurant’s customers. Take note that this question refers to all of Homespread Restaurant’s customers, not just the sample in the survey.

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Use 95% confidence intervals to describe the population ranges for the various lifestyle statements. The lower and upper values for each range are found in the One-Sample Test table.

8. What percent of Homespread Restaurant customers typically orders an alcoholic beverage?

Take note that this question refers to all of Homespread Restaurant’s customers, not just the sample in the survey. Also, because this SPSS analysis was not treated in your textbook, you will need to do calculations using the formula for a percent confidence interval provided in this chapter.

The range determined with XLDA Pro percentage confidence interval lower boundary of 30.7% and an upper boundary of 36.5%.

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9. Homespread Restaurant principals believe that the intention to visit the restaurant in the future by their customers is a ―6‖ on the 7-point scale used to measure it. Test this hypothesis. If the hypothesis is not supported, provide a confidence interval for customers’ intentions to visit Homespread Restaurant in the future.

The hypothesis of an average of 6 is not supported, and the effect size falls in the “medium” category even though the sample average is 5.4 because of the large sample size. So there is moderate evidence against the hypothesis of 6.

10. Homespread Restaurant principals believe that their customers’ average rating of portion sizes is ―5‖ on the 7-point scale used to measure it. Test this hypothesis. If the hypothesis is not supported, provide a confidence interval for customers’ rating of portion sizes at Homespread Restaurant.

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The hypothesis of an average of 5 is not supported, and the effect size falls in the “large” category because the sample average is 3.8 and not close to 5. So there is considerable evidence against the hypothesis of 5.

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CHAPTER 11 IMPLEMENTING BASIC DIFFERENCES TESTS LEARNING OBJECTIVES In this chapter you will learn: 11.1 Explain why differences are important 11.2 Describe how SPSS eliminates the worry of small samples

11.3 Relate how to test for significant differences between two groups (percentages and averages), includ

11.4 Explain analysis of variance or testing for significant differences in means among more than two gro 11.5 Understand how to report group differences tests to clients 11.6 Comprehend differences between two percents or two means in the same sample 11.7 Comprehend null hypotheses for differences tests CHAPTER OUTLINE Why Differences Are Important  The differences must be statistically significant  The differences must be meaningful  The differences must be stable  The differences must be actionable Small Sample Sizes: The Use of a t Test or z Test and How SPSS Eliminates the Worry Testing for Significant Differences between Two Groups  Differences between Percentages for Two Groups (Independent Samples) o Formula for significance of the difference between two percentages o Formula for the standard error of the difference between two percentages  How to Use SSPS for Differences between Percentages of Two Groups  Differences between Means with Two Groups (Independent Samples) Copyright © 2026 Pearson Education, Inc.

o Formula for significance of the difference between two means o Formula for the standard error of the difference between two means 

Effect Size: A Way to Assess Meaningfulness of Findings

How to Perform an Independent Sample Significance of Differences between Means Test with SPSS o Differences between Means for Two Groups (Independent) Testing for Significant Differences in Means among More Than Two Groups: Analysis of Variance  Basics of Analysis of Variance  Post Hoc Tests Detect Statistically Significant Differences among Group Means  Effect Size for ANOVA  How to Run Analysis of Variance on SPSS  Interpreting ANOVA Reporting Group Differences Tests to Clients Differences between Two Percents or Two Means within the Same Sample (Paired Sample) 

How to Perform a Paired Samples t Test Significance of Differences between Means Test with SPSS

Null Hypotheses for Differences Tests Summary

KEY TERMS Actionable difference Analysis of variance (ANOVA) Duncan’s multiple range test Copyright © 2026 Pearson Education, Inc.

Effect size Green light procedure Group comparison figure Meaningful difference Null hypothesis One-way ANOVA Post hoc tests Significance of difference between two means Significance of differences between two percentages Stable difference Statistical significance of differences t test Test for the difference between paired samples z test

TEACHING SUGGESTIONS 1. The chapter begins by claiming that market segmentation is very important and the basis for market researchers to investigate statistically significant differences among identifiable groups of consumers. One may use one’s favorite or most familiar market segmentation example to augment or emphasize the segmentation differences central point.

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To identify market segments is only the beginning point of the marketing research notion of significant differences. Once the segments are identified, marketing research requires that data be gathered about the consumption patterns of the market segments, and then, these patterns are assessed statistically for significant differences. The statistical concepts used to compare segments are percentages and means.

It is important to emphasize that marketing segmentation is a conceptual notion, for whereas segments can be identified in a great many ways, they are not managerially relevant until statistically significant differences between them are shown that are useful from a marketing strategy standpoint.

As a simple example, take a florist that segments the local market by geographic area: North, East, West, and South. The average dollars spent per purchase is calculated for three flower-giving days in the year. Assume that differences of ±$5 are not significant.

Area Father’s Day Mother’s Day Valentine’s Day North $20 $17 $50 East

$21

$31

$14

West

$15

$17

$25

South

$55

$36

$10

What are the promotional implications of these findings?

Answer by day.

Father’s Day—promote heavily to the South Mother’s Day—promote heavily to the South and East Valentine’s Day—Promote heavily to the North, moderately to the West and lightly to the East and South 2. The differences between groups are taken with percentages first because the formulas are less complicated, and students can relate to them easier than they can relate to the means differences formulas. The chapter moves quickly from percentage differences to means differences to SPSS independent samples t test procedure because the intent is to have students understand the SPSS output and not become bogged down on computations. Instructors who are more concerned with their students’ learning of the formulas may wish to dwell longer on the formulas and have students do in-class or other exercises that require them to use these formulas correctly.

3. Students sometimes appear overwhelmed by their experiences in their business statistics course. The section on “Small Sample Sizes: The Use of a t Test or a z Test and How SPSS Eliminates the Worry” is included to convince students that SPSS will always Copyright © 2026 Pearson Education, Inc.

issue the proper statistical significance level. It may be valuable to go over this section at least briefly to help students understand that they are not responsible for determining the proper statistic and how to look up its significance.

4. Students often find statistical concepts and terminology intimidating, and the green stoplight analogy gives them something tangible to lock onto. The authors, of course, realize that statistical significance is greatly affected by sample size, and the stoplight MRI does not admit to the role of sample size. The intent is to give students a signal as to when to look further into the post hoc findings.

5. The assumption of equal variances in the two samples of a t test for the significance of the difference between two means is not discussed in the text’s coverage of these computations. However, students will encounter it when they perform t tests with SPSS for Windows. The description includes comments on “Levene’s Test for Equality of Variances,” which is included in the SPSS output for a t test. Instructors who wish may want to cover the equal variances assumption test in class presentation and introduce students to the formulas with their own materials.

6. The paired samples t test procedure is much less commonly used than is the independent samples t test. The latter is the basis for finding statistically significant differences between two groups (market segments), while the pair samples test determines differences within a market segment. For example, males may differ from females on their satisfaction with an online catalog purchasing system, determined via an independent samples t test. At the same time males may prefer to purchase catalog items online more than on the telephone, and this would be determined using a pairedsamples t test. Women, although a separate market segment, may prefer telephone purchases over online purchases with catalog items.

7. The description of one-way analysis of variance is not in depth. Instructors who desire students to have more knowledge of ANOVA may use this description as a foundation and move to a more in-depth coverage with their own materials. SPSS for Windows will accommodate advanced use of one-way and n-way ANOVA. 8. The Duncan’s Multiple Range post hoc test was selected above other post hoc tests due to its descriptive presentation of significant differences between group means. The tests not discussed can be assigned to individual students with the requirement to perform background research and to make a presentation of their findings on the test to the class. Alternatively, instructors may want to assign students the task of performing various post hoc tests with SPSS for Windows and comparing their findings.

ACTIVE LEARNING EXERCISES Calculations to Determine Significant Differences between Percentages You can now perform your own tests of the differences between two percentages using the formulas we have provided and described. A local health club has just finished a media blitz Copyright © 2026 Pearson Education, Inc.

(newspaper, television, radio, etc.) for new memberships. Whenever a prospective new member visited one of the health club’s facilities, he or she was asked to fill out a short questionnaire. One question asked the person to indicate which ads he or she saw in the past month. Some of these prospects joined the health club, while some did not, which gave us two populations: those who joined the health club and those who did not. At the end of 30 days, a staff member performed the following tabulations.

Use your knowledge of the formula and the test of the significance of the difference between two percentages to ascertain if there are any significant differences in the data. What are the implications of your findings with respect to the effectiveness of the various advertising media used during the membership recruitment ad blitz?

Joined Total Recall newspaper ads

100 45 (45%)

Did Not Join 30 15 (50%)

Difference Finding

z 



Recall radio ads

89 (89%)

20 (67%)

p1  p 2 s p1  p2 45  50 45 x55 50 x50  100 30 5

24.75  83.33 5  10.39 .48 No difference p  p2 z 1 s p1  p2 



89  67 89 x11 67 x33  100 30 22

9.79  73.7 22  9.13 2.40 Significant difference

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Recall yp (Yellow Pages) listing

16 (16%)

5 (17%)

z 



Recall TV ads

21 (21%)

6 (20%)

p1  p 2 s p1  p2 16  17 16 x84 17 x83  100 30 1

13.44  47.03 1  7.77 .13 No difference p  p2 z 1 s p1  p2





21  20 21x79 20 x80  100 30 1

16.59  53.55 1  8.36 .12 No difference Perform Means Differences Analysis with SPSS You have just observed how to perform an independent samples t test with SPSS using your Auto Concepts survey data. For this Active Learning exercise, determine if there is a difference in preferences for the various other automobile models in the survey based on gender. It is recommended that you first redo the four-seat economy gasoline analysis to make sure that you can find and execute the analysis. Then use the clickstream instructions in Figure 11.1 to direct SPSS to perform this analysis for each of the four other possible models. Use the annotations on the independent samples t test output provided in Figure 11.2 to interpret your findings.

The SPSS output follows. Note that some columns of the Independent Samples Test Table have been truncated.

Group Statistics Gender

N

Mean

Std. Deviation

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Std. Error Mean

Desirability: Super Cycle—1 Seat All-Electric Motorcycle

Male

560

3.08

1.184

.050

Female

440

2.09

1.056

.050

Desirability: Runabout Sport —2 Seat All-Electric

Male

560

3.90

1.584

.067

Female

440

3.95

1.476

.070

Desirability: Runabout with Stowage—2 Seat Electric & Gasoline Hybrid

Male

560

3.94

1.811

.077

Female

440

4.00

2.034

.097

Desirability: Economy Hybrid Male —4 Seat Electric & Gasoline Female Hybrid

560

3.53

1.641

.069

440

3.38

1.916

.091

Independent Samples Test Levene’s Test for Equality of Variances F Desirability: Super Cycle—1 Seat All-Electric Motorcycle

Equal variances assumed

Desirability: Runabout Sport—2 Seat All-Electric

Equal variances assumed

Sig.

2.293

.130

Equal variances not assumed .206

.650

Equal variances not assumed

Desirability: Equal variances Runabout with assumed Stowage—2 Seat Equal variances not Electric & assumed Gasoline Hybrid

20.542

Desirability: Economy Hybrid —4 Seat Electric & Gasoline Hybrid

7.440

Equal variances assumed Equal variances not assumed

.000

.006

t test for Equality of Means t

Sig. (2tailed)

df

Mean Difference

Std. Error Difference

13.733

998

.000

.988

.072

13.922

982.086

.000

.988

.071

−.487

998

.626

−.048

.098

−.492

969.598

.623

−.048

.097

−.513

998

.608

−.063

.122

−.506

886.143

.613

−.063

.124

1.360

998

.174

.153

.113

1.335

865.236

.182

.153

.115

All Levene’s tests are nonsignificant, so use the equal variances rows. The only significant difference as to gender is for the Super Cycle which males prefer more than females.

Perform Analysis of Variance with SPSS Let’s investigate for age-group means differences across all of the models under consideration at this time by Auto Concepts. We recommend that you use the Auto Concepts.sav dataset and run the ANOVA just described. Make sure that your SPSS output looks like the one in Figure 11.5. Then investigate the desirability mean differences for the other hybrid models by age group.

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Output and interpretations follow.

ANOVA Sum of Squares Desirability: Super Cycle—1 Seat AllElectric Motorcycle

Mean Square

355.843

4

88.961

Within Groups

1157.993

995

1.164

Total

1513.836

999

Desirability: Between Groups Runabout Sport—2 Within Groups Seat All-Electric Total Desirability: Runabout with Stowage—2 Seat Electric & Gasoline Hybrid

df

Between Groups

388.044

4

97.011

1970.715

995

1.981

2358.759

999

Between Groups

478.090

4

119.522

Within Groups

3171.685

995

3.188

Total

3649.775

999

Desirability: Between Groups Economy Hybrid—4 Within Groups Seat Electric & Total Gasoline Hybrid

860.659

4

215.165

2261.972

995

2.273

3122.631

999

Desirability: Between Groups Economy Gasoline - Within Groups 4 Seat Economy Total Gasoline

415.835

4

103.959

1692.065

995

1.701

2107.900

999

All are significant, so examine the Duncan’s Range post hoc output.

Post Hoc Tests Desirability: Super Cycle—1 Seat All-Electric Motorcycle Duncan Subset for alpha = 0.05 Age

N

1

2

30 to 39

320

2.12

60 and older

75

2.40

40 to 49

440

50 to 59

145

20 to 29

20

Sig.

3

4

2.40 2.77

2.77 3.06 6.05

.139

.050

.118

1.000

Preferred by the youngest age group.

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F

Sig.

76.439

.000

48.980

.000

37.496

.000

94.647

.000

61.132

.000

Desirability: Runabout Sport—2 Seat All-Electric Duncan Subset for alpha = 0.05 Age

N

1

2

3

4

20 to 29

20

60 and older

75

50 to 59

145

30 to 39

320

4.15

40 to 49

440

4.28

Sig.

1.55 2.44 3.41

1.000

1.000

1.000

.606

Preferred by the 30–39 and 40–49 age groups (which are equal to each other).

Desirability: Runabout with Stowage—2 Seat Electric & Gasoline Hybrid Duncan Subset for alpha = 0.05 Age

N

1

2

20 to 29

20

2.50

50 to 59

145

2.66

60 and older

75

3.00

40 to 49

440

4.28

30 to 39

320

4.44

Sig.

.129

.609

Preferred by the 30–39 and 40–49 age groups (which are equal to each other).

Desirability: Economy Hybrid—4 Seat Electric & Gasoline Hybrid a,b

Duncan

Subset for alpha = 0.05 Age

N

1

2

30 to 39

320

2.39

20 to 29

20

2.50

60 and older

75

40 to 49

440

50 to 59

145

Sig.

3

4

2.50 3.00 3.81 5.14

.685

.057

1.000

1.000

Preferred by the 50–59 age group.

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SYNTHESIZE YOUR LEARNING Pets, Pets, and Pets (PPP) This learning synthesis exercise requires students to: (1) perform differences analysis, (2) hypothesis tests (both with manual calculations), and (3) address data quality.

1. Perform appropriate differences tests (95% level of confidence) to answer this question: “Do PPP dog owners differ from PPP cat owners with respect to their answers in PPP Table 1?” If so, how do they differ?

The calculation of z for the significance of difference in percents for dog versus cat owners to the question “What type of pet do you own?” is 2.04. This value is greater than 1.96, so PPP customers are more dog owners than cat owners.

Table 1 Here are the results of calculated z statistics for the differences between percentages tests.

Question

Dog Owner

Cat Owner

Interpretation z

Use PPP quite often?

50%

38%

2.15

Would recommend PPP to a friend

91%

75%

3.74

Recall a PPP newspaper ad in past month

50%

55%

−0.88

Recall a PPP coupon in the past month

53%

40%

2.32

Dog owners use PPP more than cat owners Dog owners would recommend PPP more than cat owners No difference between dog and cat owners Dog owners recall a PPP coupon more than cat owners

2. PPP management believes that 75% of its customers are dog owners. Test this hypothesis, and if not supported at the 95% level of confidence, compute the confidence interval.

The hypothesized percent is 75%, while the sample percent of dog owners is 45% (Table 1). The sample size is 400. The computed z for the differences of percents analysis is 12.06, meaning the hypothesis is not supported. The confidence interval is computed to be 40.1% for the lower boundary and 49.9% for the upper boundary.

35. PPP Table 2 suggests that if PPP targets customers with a household income greater than $100,000 per year, it should emphasize its dog merchandise. Consider the data quality of the Copyright © 2026 Pearson Education, Inc.

information contained in the table and assess if this conclusion is correct or incorrect. Be sure to do the appropriate statistical tests at the 95% level of confidence.

Table 2 The household income level distributions appear to be quite different. Here are the computed z’s for dog versus cat owners with each level.

Household Income Level Refused Between $60,000 and $80,000 Between $80,000 and $100,000 Greater than $100,000

Dog Owner 0%

Cat Owner 25%

Computed z −6.73

15%

10%

1.35

25%

10%

3.63

60%

55%

0.89

The analysis reveals there is a significantly greater percent of “Refused” income levels for cat owners than for dog owners. So, the data quality for the cat owners is less than for the dog owners because of these refusals. If the income levels are recalculated for the cat owners based on those who gave an income level, the Greater than $100,000 level becomes 73% (55%/10%+10%+55%). When 60% for 180 dog owners is compared to 73% for (136−.25*136) = 102 cat owners, the computed z is −2.34, so the percents are significantly different. With the revised data, there are proportionally more cat owners in the highest income level than dog owners.

So, emphasizing dog merchandise to garner business from the highest-income households would miss the opportunity that cat owners are actually a better target market, and cat merchandise should be emphasized, instead.

ANSWERS TO REVIEW QUESTIONS/APPLICATIONS 11-1. What are differences, and why should market researchers be concerned with them? Why are marketing managers concerned with them?

Differences in consumers are the bases for marketing segmentation, effective marketing positioning strategy, and competitive advantage. In order to be useful to the researcher (and manager), differences must be: significant, meaningful, stable, and actionable.

11-2. What is considered to be a ―small sample,‖ and why is this concept a concern to statisticians? To what extent do market researchers concern themselves with small samples?

Why? Students will need to understand the appropriate use of z tests versus t tests and to refer to the large databases that are now prevalent in marketing research.

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The statistician refers to a ―small sample‖ as any sample that has less than or equal to 30 respondents, and this condition requires the use of a t test. Market researchers are not concerned with small samples because statistical programs automatically adjust for the correct statistic. Also, with databases and huge samples that can accompany online surveys, market researchers rarely work with such small samples.

11-3. When a market researcher compares the responses of two identifiable groups with respect to their answers to the same question, what is this called?

It is a difference of means test (or means difference test). The two groups constitute independent groups, and with SPSS, the test is called an independent samples t test.

11-4. With regard to differences tests, briefly define and describe each of the following: a. Null hypothesis The hypothesis that the difference in their population parameters is equal to zero. b. Sampling distribution The assumption is made that the differences have been computed for comparisons of the two sample statistics for many repeated samplings. If the null hypothesis is true, this distribution of differences follows the normal curve with a mean equal to zero and a standard error equal to one. c. Significant difference Statistical significance of differences means that the differences found in the sample(s) may be assumed to exist in the population(s) from which the random samples are drawn. d. Effect size Effect size is a measure of the meaningfulness of a statistical finding, so it can be described as ―large,‖ ―small,‖ or something in between.

11-5. Relate the formula and identify each formula’s components in the test of significant differences between two groups when the question involved is a. A ―yes/no‖ type.

This is a nominal scale situation, so the percentage formula must be used. The formula is…

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z

p1  p2 s p1  p 2

Where: p1 = percentage found in sample 1 p 2 = percentage found in sample 2

s p1  p2 = standard error of the difference between two percentages

b. A scale variable question This is an interval or ratio scale variable situation, so the mean formula must be used.

This formula is… z

x1  x 2 s x1  x2

Where:

x1  mean found in sample 1 x2  mean found in sample 2 s x1  x2 = standard error of the difference between two means

11- 6.

For each of the following three cases (a–c) are the two sample results significantly different? a.

Sample

Sample

Confidence

One

Two

Level

Mean: 10.6

Mean: 11.7

95%

Std. dev:1.5

Std. dev: 2.5

n = 150

n = 300 Copyright © 2026 Pearson Education, Inc.

Your Finding?_____

Means and standard deviations are provided in this example, so the formula for mean differences must be used.

z 





x1  x 2 s x1  x2 10.6  11.7 1.5 x1.5 2.5 x 2.5  150 300  1.1 2.25 6.25  150 300  1.1

.015  .0208  1.1  .189  5.82 The computed z is greater than 1.96, so the difference is significant at the 95% level. b.

Sample

Sample

Confidence

Your

1

2

Level

Finding?____

Percent: 45%

Percent: 54%

99%

n = 350

n = 250

Percentages are involved, so the difference between percentages formula must be used.

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p1  p2 s p1  p 2

z 



45  54 45 x55 54 x 46  350 250 9

7.07  9.9 9  4.12  2.18 The computed z is −2.18 which is less than 2.56, so the difference between these two percentages is not significant at the 99% level. c.

Sample

Sample

Confidence

Your

1

2

Level

Finding?____

Mean: 1500

Mean: 1250

95%

Std. dev: 550

Std. dev: 500

n = 1200

n= 500

Means and standard deviations are involved, so the means difference formula must be used.

z 





x1  x2 s x1  x 2 1500  1250 550 x550 500 x500  1200 500 250 302500 250000  1200 500 250

252  .500 250  27.4  9.12 The computed z value is greater than 1.96, so the difference between these two means is statistically significant at the 95% level of confidence.

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11-7. When should one-way ANOVA be used and why?

ANOVA is used when comparing means for three or more groups. It is used because it is more efficient than performing many independent t tests for the significance of the difference between two means because a single F test is used.

11-8. When a researcher finds a significant F value in an analysis of variance, why may it be considered a ―green light‖ device?

ANOVA is a ―flagging‖ device. If at least one pair of means has a statistically significant difference, ANOVA will signal this by indicating significance. Then, it is up to the researcher to conduct further tests to determine precisely how many statistically significant differences actually exist and which ones they are.

11-9. What is a paired-samples test? Specifically, how are the samples ―paired‖?

If a researcher has a questionnaire with identically or very similarly scaled questions (such as several 5-point disagree-agree Likert statements) that are rated by a sample of respondents, the significance of the difference between the means of any two compared questions can be assessed with a paired-samples test. Any two variables that are scaled similarly can be ―paired‖ and tested.

11-10. The circulation manager of an online newspaper, Daily Advocate, commissions a market research study to determine what factors underlie its subscription attrition. Specifically, the survey is designed to compare current Daily Advocate subscribers with those who have dropped their subscriptions in the past year. A survey is conducted with both sets of individuals.

Following is a summary of the key findings from the study. Interpret these findings for the circulation manager.

Item B Length of residence in the city Length of time as a subscriber Watch local TV news program (s) Watch national news program(s) Obtain news from the Internet Satisfaction* with...

Layout of newspaper Coverage of local news Coverage of national news Coverage of local sports Coverage of national sports Coverage of local social news

Current Lost SubscriberSubscribers s 20.1 yrs 5.4 yrs 27.2 yrs 1.3 yrs 87% 85% 72% 79% 13% 23% 5.5 6.1 5.5 6.3 5.7 5.8

4.9 5.8 2.3 5.9 3.2 5.2

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Significance .000 .000 .372 .540 .025 .459 .248 .031 .462 .001 .659

Editorial stance of the newspaper 6.1 4.0 .001 Value for subscription price 5.2 4.8 .468 *Based on a 7-point scale where 1=very dissatisfied and 7=very satisfied Interpret these findings for the Circulation Manager.

The findings reveal six significant differences at the 95% level of confidence. Strictly speaking, there are just differences and not “greater” or “lesser” difference unless the significance level is .025 or less.

The interpretation is that lost subscribers are: younger, shorter subscribers, more likely to use the Internet for news, less satisfied with the Daily Advocate’s coverage of national news and sports, and less favorable about the editorial stance of the newspaper.

11-11. A researcher is investigating different types of customers for a sporting goods store. In a survey, respondents are asked to use their exercise tracker devices (Fitbit, Altra, iWatch, etc.) to indicate how much they exercised last week using categories of ―Less than 1 hour,‖ ―Between 1 and 2 hours,‖ ―Between 2 and 3 hours,‖ and so on. These respondents have also rated the performance of the sporting goods store across 12 different characteristics, such as good value for the price, convenience of location, helpfulness of the sales clerks, and so on. The researcher used a 7-point rating scale for these 12 characteristics where 1 = Poor performance to 7 = Excellent performance. How can the researcher investigate differences in the ratings based on the amount of exercise reported by the respondents?

The researcher could use a median split on the number of minutes of exercise per week to identify the low versus the high exercise groups. Then, he or she could use tests of the differences in the performance means. Alternatively, the researcher could use quartiles or some other splitting method to identify more than two groups. With more than two groups, ANOVA should be used.

11.12. A marketing manager of newegg, a web-based electronic products sales company, uses a segmentation scheme based on the incomes of target customers. The segmentation system has four segments: (1) low income, (2) moderate income, (3) high income, and (4) wealthy. The company database holds information on customers’ purchases over the past several months. Using Microsoft Excel on this database, the marketing manager finds that the average total dollar purchases for the four groups are as follows.

Market Segment

Average Total Dollar Purchases

Low income

$101

Moderate income

$120

High income

$231

Wealthy

$595

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Construct a table that is based on the Duncan’s multiple range test table concept discussed in the chapter that illustrates that the low- and moderate-income groups are not different from each other, but the other groups are significantly different from one another.

The table would look like the following.

Market Segment Average Total

Group

Group

Group

Dollar Purchases Low income

$101

A

Moderate income

$120

A

High income

$231

Wealthy

$595

B C

CASE SOLUTIONS Case 11.1 Nouvelle Restaurant Survey Differences Analysis Case Objective The objective of the Nouvelle Restaurant survey case is to have students identify what differences tests are appropriate, to run them, and interpret them correctly.

Answers to Case Questions CASE 11.1 1. Is the Nouvelle Restaurant concept more appealing to women than it is to men, or perhaps vice versa? Perform the proper analysis, and interpret it to answer this question.

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Copyright © 2026 Pearson Education, Inc.

Interpretation: The Nouvelle Restaurant is more appealing to women than to men as they are significantly more likely to patronize it and there is moderate evidence supporting this difference.

2. Concerning the location of Nouvelle Restaurant, is a waterfront view preferred more than a drive of less than 30 minutes?

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Interpretation: There is statistically significant, but small evidence, that a drive of less than 30 minutes is preferred over a waterfront view.

3. With respect to the restaurant’s atmosphere, is classical background music preferred over Top Forty background music?

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Interpretation: There is statistically significant but small evidence that top 40 background music is preferred over classical background music.

4. What about unusual entrées versus unusual desserts?

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Interpretation: There is statistically significant but small evidence that unusual desserts are preferred over unusual entrees.

5. In general, upscale establishments are more appealing to higher-income households than they are to lower-income households. Is this pattern the case for Nouvelle Restaurant?

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Copyright © 2026 Pearson Education, Inc.

Interpretation: There are statistically significant differences and a great deal of evidence that the desirability of Nouvelle Restaurant differs by income classes with higher-income individuals more likely to patronize it than are lower-income individuals.

6. It is speculated that the different geographic areas identified by ZIP codes have different reactions to the prospect of patronizing a new upscale restaurant. Are these anticipated differences substantiated by the survey? Perform the proper analysis and interpret your findings.

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Interpretation: There are statistically significant differences and a great deal of evidence that the desirability of Nouvelle Restaurant differs by zip code area with Area B individuals expressing great likelihood of patronizing it more than other areas. Area C individuals are less likely than Area B individuals and more likely than Areas D and A which are equal to each other.

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Case 11.2 The Homespread Survey Differences Analysis Case Objective The objective of the Homespread Restaurant survey case is to have students identify what differences tests are appropriate, to run them, and interpret them correctly.

1. Concerning orders (appetizer, salad, etc.) on the last visit, do Homespread Restaurant’s customers differ with respect to: a. Gender (Females versus Males)

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With respect to statistically significant differences, women order appetizers and sides more than men, while men order salads, appetizers, alcohol, and desserts more than women. b. Marital status: Perform the proper analysis and provide a written description of your findings.

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With respect to statistically significant differences, married/cohabitation customers order appetizers, sides, and desserts more than single customers. There is moderate evidence for appetizers and sides and weak evidence for desserts differences.

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2. With respect to using competitors: Applebee’s, Olive Gardin, or Chili’s in the past month, do Homespread Restaurant’s customers differ concerning (1) ordering an appetizer or (b) ordering dessert?

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As for those Homespread Restaurant customers who ordered an appetizer on their last visit, there is not significant difference for using Applebee’s or Olive Garden last month, but there is one for using Chili’s in the past month. A total of 29% of customers who ordered an appetizer at Homespread Restaurant patronized Chili’s while 23% of those who did not order one patronized Chili’s.

The difference is quite small, although statistically significant, so if Homespread

Restaurant management is worried about competition, it could look into Chili’s appetizers as a possible source of attraction for its customers.

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As for those Homespread Restaurant customers who ordered dessert on their last visit, there is no significant difference for using Applebee’s or Chili’s last month, but there is one for using Olive Garden in the past month. A total of 27% of Homespread Restaurant customers who order an appetizer patronized Olive Garden last month while 18% of those who did not patronize it. So if Homespread Restaurant management is worried about competition it should look into Olive Garden’s appetizers as a possible source of attraction for its customers.

3. Across the 13 restaurant performance characteristics such as variety of choices, taste, waiting time, etc., do Homespread Restaurant customers differ with respect to: a. Gender: Perform the proper analysis and provide a written description of your findings.

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b. Marital status: Perform the proper analysis and provide a written description of your findings.

4. With respect to: (1) overall satisfaction, (2) intention to use in the future, and (3) frequency of use, do Homespread Restaurant customers differ with respect to: Copyright © 2026 Pearson Education, Inc.

a. Gender (Females versus Males): Perform the proper analysis and provide a written description of your findings.

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b. Marital status: Perform the proper analysis and provide a written description of your findings.

c. Education level: Perform the proper analysis and provide a written description of your findings.

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Copyright © 2026 Pearson Education, Inc.

The general pattern of statistically significant differences is that customers with higher education are more satisfied, intend to use more, and do use more than customers with lower education with medium evidence for satisfaction and weak (small) evidence for the other two Homespread Restaurant variables. d. Income level: Perform the proper analysis and provide a written description of your findings.

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Copyright © 2026 Pearson Education, Inc.

The general pattern of statistically significant differences is that customers with higher income are more satisfied, intend to use more, and do use more than customers with lower income with medium evidence for intention and weak (small) evidence for the other two Homespread Restaurant variables.

XL Data Analyst Pro Appendix XLDA Exercise. Determine if there is a difference in Homespread Restaurant’s gender groups for the other performance ratings of beverages selection, prices, taste, etc. It is recommended that you first redo the variety of choices analysis to make sure that you can Copyright © 2026 Pearson Education, Inc.

find and execute the analysis. Then use the clickstream instructions in Figure 11.4A to direct XLDA to perform this analysis.

See Active Learning Item Below.

XLDA Exercise. Analyze education group means differences across the 12 remaining performance ratings for Homespread Restaurant: variety of choices, prices, taste, etc.

See Active Learning Item Below.

XLDA Exercise. Test if the Price Specials Desirability average is equal to other possible new features such as Heart-Healthy Dishes or Frequent Diner Program.

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ACTIVE LEARNING You have just observed how to perform an independent samples t test with SPSS using your Homespread survey data. For this Active Learning exercise, determine if there is a difference in Homespread Restaurant’s gender groups for the other performance ratings of beverages selection, prices, taste, etc. It is recommended that you first redo the variety of choices analysis to make sure that you can find and execute the analysis. Then use the clickstream instructions in Figure 11.4 to direct SPSS to perform this analysis. Use the annotations on the independent samples t test output provided in Figure 11.5 to interpret your findings.

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Males rate Homespread Restaurant higher than females on:  Variety of choices  Prices  Presentation  Friendliness  Portion sizes  Service Speed Females rate Homespread Restaurant higher than males on:  Preparation  Taste  Quality Perform Analysis of Variance with SPSS Let’s analyze education group means differences across the 12 remaining performance ratings for Homespread Restaurant: variety of choices, prices, taste, etc. We recommend that you use the Homespread.sav dataset and run the ANOVA just described using education level as the factor or grouping variable. Make sure that your SPSSoutput looks like the one in Figure 11.7. Then investigate education group means differences with ANOVA for the other performance ratings and assess the effect sizes for significant differences.

NOTE: FINDINGS DIFFER FROM SPSS SLIGHLTY BECAUSE SPSS USE DUNCAN MULTIPLE RANGE POST HOC TEST WHILE XLDA PRO USES SCHEFFE’S POST HOC TEST, WHICH IS A BIT MORE CONSERVATIVE.

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Summary of Findings Attribute Key Finding Variety of Choices Beverage selection Prices Taste rating Presentation rating Portion Sizes rating Preparation rating

No differences No differences Rated highest by least educated Rated highest by least educated Rated lowest by most educated Rated highest by least educated Rated lowest by highest educated Rated lowest by highest educated Rated highest by lowest educated Rated lowest by highest educated Rated highest by least educated

Strength of Evidence/effect size Not applicable Not applicable Small Small Small Small Medium

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Accuracy of order Quality rating Waiting time Friendliness rating Service Speed rating Attentiveness of server rating

Rated lowest by highest educated Rated highest by least educated No differences No differences No differences

Medium

No differences

Not applicable

Rated lowest by highest educated Rated highest by least educated

Small

Not applicable Not applicable Not applicable

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CHAPTER 12 MAKING USE OF ASSOCIATIONS TESTS LEARNING OBJECTIVES In this chapter you will learn: 12.1 Describe the types of relationships (or associations) between two variables 12.2 Relate how relationships between two variables may be characterized 12.3 Explain correlation coefficients and covariation, including rules of thumb for assessing the strength of a statistically significant correlation coefficient 12.4 Illustrate a Pearson product-moment correlation coefficient and its interpretation, including how to use SPSS to obtain Pearson correlations 12.5 Articulate warnings related to the interpretation of correlations 12.6 Show how to communicate correlation findings insights to clients 12.7 Describe cross-tabulations, including how they appear in a table 12.8 Summarize Chi-square analysis, including how it is used in cross-tabulation analysis, along with size, including how to use SPSS to perform cross-tabulation analysis 12.9 Show how to communicate cross-tabulation insights to clients 12.10 Articulate four cautions to bear in mind when working with association analyses such as correlations and cross-tabulations CHAPTER OUTLINE Types of Relationships (Associations) between Two Variables  Linear and Curvilinear Relationships  Nonmonotonic Relationships Characterizing Relationships between Variables  Presence Copyright © 2026 Pearson Education, Inc.

 Pattern  Strength of Association Correlation Coefficients and Covariation    

Presence: Statistical Significance of a Correlation Coefficient Pattern: The Correlation Sign Indicates the Direction of the Relationship Strength: Rules of Thumb for Correlation Strength Effect Size Visualizing Covariation Using Scatter Diagrams

The Pearson Correlation Coefficient  How to Obtain Pearson Correlation(s) with SPSS Caveats When Interpreting Correlations Reporting Correlation Findings to Clients Cross-Tabulations  

Cross-Tabulation Analysis Frequencies and Percentages in a Cross-Tabulation Table

Chi-Square Analysis     

Observed and Expected Frequencies The Computed χ² Value The Chi-Square Distribution Strength of a Chi-Square Finding How to Analyze Cross-Tabulations with SPSS

Communicating Cross-Tabulation Insights to Clients Using Data Visualization Special Considerations in Association Procedures KEY TERMS Associative analyses Cause-and-effect relationship Cell frequencies Copyright © 2026 Pearson Education, Inc.

Chi-square (χ2) analysi Chi-square distribution Chi-square formula Column frequencies table Column percentages table Correlation coefficient Covariation Cramer’s V Cross-tabulation cell Cross-tabulation table Curvilinear relationship Expected frequencies Linear relationship Nonmonotonic relationship Observed frequencies Pearson product-moment correlation Phi Raw percentages table Relationship Row frequencies table Row percentages table Scatter diagram Copyright © 2026 Pearson Education, Inc.

Straight-line formula TEACHING SUGGESTIONS 1. The reason for describing the various types of relationships possible between variables is to bridge the scaling assumptions of variables and the appropriate statistical analysis.

Students should come away from this section of the chapter with the following understanding: The crudest scales (i.e., nonmonotonic which are merely categories with no order or magnitude) necessitate the use of Chi-square analysis predicated on crosstabulations. Ordinal scales effect order in the categories, but there is no indication of distances in magnitude among adjacent categories, so two ordinal scaled variables can be examined for a monotonic relationship with rank order correlation. Interval and ratio scales embody order and specific units of distance among the categories. The precise measurements of two “metric” scaled variables allow use of a linear relationship which is the underlying basis for Pearson Product Moment correlation.

2. Instructors may want to provide examples of how higher scaled variables can be “collapsed down” to lower scaled ones. For instance, age in years (ratio) can be collapsed to ordinal by setting up arbitrary categories of “youth,” “young adult,” “middle-aged adult,” “old adult,” and “elderly.” Similarly, an ordinal scaled variable can be collapsed to a nominal one with a median split, classifying respondents as either “high” or “low.”

Collapsing variables to be measured on lower-level scales is useful in the following circumstances. a. When you want to investigate a relationship between variables with different scaling assumptions. For example, income measured as ordinal can be collapsed down to nominal to look at the relationship of income to user type (user versus nonuser) which is nominal. b. When higher-level scaled variables exhibit no statistically significant relationship, say, for example, using Pearson Product Moment correlations, they may when collapsed down and investigated for a less precise relationship such as rank order correlation or even cross-tabulations. c. When the distributions of the variables are not normal. That is, if the descriptive statistics of one or both metric variables reveal that their underlying distributions do not embody normal curve assumptions, collapsing to lower scaling assumptions is necessary. (Recall that nonparametric statistics such as Chi-square are sometimes referred to as “distribution-free” in their assumptions.) d. When sample sizes are very small, collapsing will increase the size of the scale category subsample. For instance, if there are 30 respondents and 25 metric scale Copyright © 2026 Pearson Education, Inc.

categories (such as age in years), collapsing to a high-low designation using the median will result in 15 high- and 15 low-age respondents.

3. SPSS cross-tabulations include several nominal-to-nominal variable nonparametric statistics options such as contingency coefficient, Phi, Lambda, and others. They also include several ordinal-to-ordinal statistics such as Gamma, Somers’D, and others.

Although these statistics are beyond the scope of the textbook, instructors who are knowledgeable in these statistics or who otherwise believe they should be covered may opt to introduce them to students in class material coverage and have students use them in SPSS exercises of their own.

4. The null hypothesis is omnipresent in associative analysis tests, and it is the foundation for practically all statistical tests. Instructors are recommended to continually remind students of the null hypothesis of no association as they review the various associative analysis tests. It may be worthwhile to recall for students that the null hypothesis is present in statistical inference tests such as t tests (no difference between the means of the two groups) or analysis of variance (no difference between any two group means).

For instructors’ information, the null hypothesis concept is also covered in Chapter 13, particularly with descriptions of bivariate and multiple regression analyses.

5. Experience has taught that students will become confused with initial encounters with the various types of frequencies and percentages possible in cross-tabulation tables.

The chapter takes students step-by-step through these slowly; however, instructors should consider using class time to review the various steps so students will gain a conceptual understanding of what each type is and how it is used. At the very least, students should understand how row and column percentages are useful in identifying the underlying association if statistical significance is found.

ACTIVE LEARNING EXERCISES Date.net: Male Users’ Chat Room Phobia For each factor, use your knowledge of correlations and provide a statement of how it characterizes the typical Date.net male chat room user. Given your findings, what tactics do you recommend to Date.net to address the low satisfaction with Date.net’s public chat room that has been expressed by its female members?

The individual interpretations are in the table below. Students should realize that Date.net needs to recruit a higher class of male users.

Factor

Correlation with Amount of Date.net Chat Room Use

Interpretation

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Age +.68 Moderate: Older males use Date.Net more Income −.76 Moderate: Lower-income males use Date.Net more Education −.78 Moderate: Lower education males use it more Number of yrs divorced +.57 Weak: Those divorced for more years use it more Years at present address −.90 Strong: Recent arrivals use it more Years at present job −.85 Strong: Recent hires use it more Satisfaction with: Relationships Job/career Personal appearance Life in general

−.76 −.86 −.72 −.50

Moderate: Those dissatisfied use it more Strong: Those dissatisfied use it more Moderate: Those dissatisfied use it more Weak: Those dissatisfied use it more

Online behavior: Minutes online daily +.90 Strong: The more online, the more use Online purchases −.65 Moderate: The more online purchases, the more use Amt. of binge watching +.86 Strong: The more binge watching, the more use No. of email accounts +.77 Moderate: The more emails, the more use Use of Date.net (where 1= not important and 5 = very important) Meet new people +.38 Very Weak: The more important to meet new people, the more use Only way to talk to women +.68 Moderate: The more important this is, the more use Looking for life partner −.72 Moderate: The less looking for a partner, the more use Not much else to do +.59 Weak: The more important not having much to do, the more use Practice Cross-Tabulation Analysis with SPSS To make certain you can perform SPSS cross-tabulation with Chi-square analysis, use the Auto Concepts SPSS data set and replicate the marital status and favorite magazine type analysis described in the text. When you are convinced that you can do this analysis correctly and interpret the output, use it to see if there is an association between marital status and favorite magazine type. What about dwelling type and newspaper reading habit? What would be your advertisements placements to reach at least 50 % of each group: single family homeowners, multiple family unit dwellers, condominium or townhome residents, and mobile home occupants?

Here is the cross-tabulation for marital status and favorite magazine type.

Favorite magazine type * Marital status Cross-tabulation Marital status

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Total

Married (Includes

Favorite magazine type

Business & money

Count % within Marital status

Music & entertainment

Count % within Marital status

Family & parenting

Count % within Marital status

Sports & outdoors

Count % within Marital status

Home & garden

Count % within Marital status

Cooking, food, & wine

Count % within Marital status

Total

Trucks, Cars, &

Count

Motorcycles

% within Marital status

News, politics, & current

Count

events

% within Marital status Count % within Marital status

Unmarried

Cohabitation)

1

73

74

0.9%

8.2%

7.4%

19

121

140

17.3%

13.6%

14.0%

22

232

254

20.0%

26.1%

25.4%

19

100

119

17.3%

11.2%

11.9%

1

61

62

0.9%

6.9%

6.2%

7

50

57

6.4%

5.6%

5.7%

19

22

41

17.3%

2.5%

4.1%

22

231

253

20.0%

26.0%

25.3%

110

890

1000

100.0%

100.0%

100.0%

Chi-Square Tests Asymptotic Significance (2sided) .000 .000 .134

Value df a Pearson Chi-Square 71.756 7 Likelihood Ratio 58.252 7 Linear-by-Linear Association 2.243 1 N of Valid Cases 1000 a. 1 cell (6.3%) has expected count less than 5. The minimum expected count is 4.51.

Marital status and favorite magazine type are significantly associated. The Chi-square table lists a significance of .000. The percents table above reveals that married more prefer to read family & parenting, and news, politics, & current events while unmarrieds read these plus, in order to achieve 50% coverage, either music & entertainment, sports & outdoors, and trucks, cars, & motorcycles. It is easier to promote to married people since unmarrieds are so diverse in their magazine reading.

The two variables are significantly associated as the Chi-square table lists a significance of .000. Using the 50% coverage rule, single-family home dwellers read local and national news; multiple family unit dwellers read local news and sports; condominium/townhome Copyright © 2026 Pearson Education, Inc.

dwellers read sports and business and editorial (tied at 19.9%, while mobile home dwellers read local news and sports.

ANSWERS TO END-OF-CHAPTER QUESTIONS 12-1. Explain the purpose of associative analysis.

Associative analysis procedures are useful because they determine if there is a consistent and systematic relationship between the presence (label) or amount(level) of one variable and the presence (label) or amount (level) of another variable.

12-2. Define and provide an example for each of the following types of relationships: linear, curvilinear, and nonmonotonic.

The definition and an example follow each type. a. Linear A linear relationship is a “straight-line association” between two variables. Here, knowledge of the amount of one variable will automatically yield knowledge of the amount of the other variable as a consequence of applying the linear or straight-line formula which is known to exist between them. In its general form, a straight-line formula is as follows: y = a + bx where: y = the dependent variable being estimated or predicted a = the intercept b = the slope x = the independent variable used to predict the dependent variable An example of a linear relationship is miles traveled and gasoline consumption. If an automobile obtains an average of 25 miles to a gallon under certain driving conditions, then 10 gallons will yield 250 miles (y = 0 + 25 times 10). The constant is 0 because when the engine is turned off, 0 miles are driven. b. Curvilinear Curvilinear associations are those in which one variable is associated with another variable, but the relationship is described by a curve rather than a straight line. In other words, the formula for a curved relationship is used rather than the formula for a straight line. An example is the product S-shaped life cycle. Theoretically, new Copyright © 2026 Pearson Education, Inc.

products start out with low sales, then sales suddenly increase as the product’s popularity soars. Eventually, sales level off as the market becomes saturated. c. Nonmonotonic A nonmonotonic relationship is one in which the presence (or absence) of one variable is systematically associated with the presence (or absence) of another variable. The term “nonmonotonic” means essentially that there is no discernable direction to the relationship, but a relationship exists. An example would be the relationship between gender and the purchase of perfume versus aftershave. With rare exceptions such as gifts, females buy perfume, while males buy aftershave.

12-3. Relate the three different aspects of a relationship between two variables.

Depending on the type, a relationship can be characterized in three ways: presence, direction, and strength of association. Presence refers to whether or not any systematic relationship exists between the two variables of interest. Direction means that you know if the relationship is positive or negative. Strength means you know how consistent the relationship is.

12-4. Describe the recommended steps for analyzing relationships.

Step 1: Choose variables to analyze.

Step 2: Determine the scaling assumptions of the chosen variables.

Step 3: Use the correct relationship analysis.

Step 4: Determine if the relationship is present.

Step 5: If present, determine the direction of the relationship.

Step 6: If present, assess the strength of the relationship.

12-5. Briefly describe the connections among the following: covariation, scatter diagram, correlation, and linear relationship.

A high correlation indicates much covariation between the two variables that will result in an elliptical scatter pattern depicting a strong linear relationship. With a low correlation, the opposite is true.

12-6. Indicate with a scatter diagram, the general shape of the scatter of data points in each of the following cases: The shapes are described after each correlation type. a. A strong positive correlation Copyright © 2026 Pearson Education, Inc.

The scatter would be elliptical and upward rising to the right side. b. A weak negative correlation The scatter would be barely elliptical and downward falling to the right. c. No correlation There would be no discernable ellipse. d. A correlation of −.98 The scatter would be a very narrow ellipse falling down to the right side.

12-7. What is does it mean when a correlation is statistically significant?

Regardless of its absolute value, a correlation that is not statistically significant has no meaning at all. This is because of the null hypothesis, which states that the population correlation coefficient is equal to zero. If this null hypothesis is rejected (statistically significant correlation), then you can be assured that a correlation other than zero will be found in the population. But if the sample correlation is found to be not significant, the population correlation will be zero.

12-8. What are the appropriate scaling assumptions for variables analyzed by Pearson product-moment correlation?

Pearson product-moment correlation assumes that the variables are metric, that is, interval or ratio scaling assumptions.

12-9. What is a cross-tabulation? Give an example.

A cross-tabulation is defined as a table in which data is compared using a row and column format. A cross-tabulation table is sometimes referred to as an “r x c” (r by c) table because it comprises rows and columns. Here is a simple example.

User Type/Age

Old

Young

Heavy

100

250

Moderate

200

100

Light

150

50

12-10. With respect to Chi-square analysis, describe or identify each of the following: Copyright © 2026 Pearson Education, Inc.

Each item is identified next. a. r x c table A cross-tabulation table is an r by c table (rows by columns). b. Frequencies table Frequencies are the raw counts in each cell in a cross-tabulation table. c. Observed frequencies Observed frequencies are those for each cell actually found in the sample. d. Expected frequencies Expected frequencies are those calculated by the formula: Expected cell frequency = cell column total x cell row total grand total The application of this equation generates a number for each cell that would have occurred if the study had taken place and no associations existed, that is, the null hypothesis. e. Chi-square distribution The Chi-square distribution is skewed to the right and the rejection region is always at the right-hand tail of the distribution. It differs from the normal and t distributions in that it changes its shape depending on the situation at hand, but it is similar to the F distribution in that it does not have negative values. The Chi-square distribution’s shape is determined by the number of degrees of freedom. The more the degrees of freedom, the more the curve’s tail is pulled to the right. Or, in other words, the more the degrees of freedom, the larger the Chi-square value must be to fall in the rejection region for the null hypothesis. f.

Significant association

Chi-square analysis yields the probability that the researcher would find evidence in support of the null hypothesis if he or she repeated the study many, many times with independent samples. For example, if the Chi-square analysis yielded a 0.02 probability for the null hypothesis, the researcher would conclude that only 2% of the time he or she would find evidence to support the null hypothesis. Thus, the association would be significant at the 98% level of confidence.

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g.

Scaling assumptions

With Chi-square analysis, the cross-tabulations assume nominal scaling of both variables. h.

Row percentages versus column percentages

The column percentages table divides the raw cell frequencies by their respective raw column total frequency. The formula is as follows: column cell percent =

cell frequency_________ total of cells in that column

The row percentages table presents the data with the row totals as the 100% base for each. That is, a row cell percentage is computed as follows: row cell percent = i.

cell frequency________ total of cells in that row

Degrees of freedom

In a cross-tabulation table, the degrees of freedom are found through the formula below: Degrees of freedom = (r − 1) (c − 1) where r is the number of rows and c is the number of columns.

12-11. How does one go about assessing the strength of an association found in a crosstabulation analysis?

The percentages in the cross-tabulation table are used to discern the pattern or nature of the association, and the percentages indicate the relative strength of the association.

12-12. Listed here are various factors that may have relationships that are interesting to marketing managers. With each one, (1) identify the type of relationship, (2) indicate its nature or direction, and (3) specify how knowledge of the relationship could help a marketing manager in designing marketing strategy.

The relationship, direction, and implication are listed beneath each case.

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a. The amount (number of minutes per day) of time spent reading (or reviewing) various sports websites, and age of the reader, for a sporting goods retail store.

Nonmonotonic relationship between which section(s) is read and the age category of the reader. For instance, adults may read the websites on more traditional sports such as baseball and football while younger readers may view websites on esports or gaming. b. Homeownership versus renting one’s domicile and household income (low or high), for a solicitation service being used by a public television broadcasting station soliciting funds.

Monotonic relationship in that nonownership would be less than ownership.

Higher-income households are more likely to own their homes, so the relationship is positive. The solicitation service would need to have a system of repeat calls to these households as they would be prime candidates, but they probably would not return a message left by the service’s solicitation personnel. c. Number of miles driven in company vehicles and need for services such as oil changes, tune-ups, or filter changes, for a quick auto service chain attempting to market fleet discounts to companies.

A linear relationship could be estimated using miles driven and automobile wear.

Wear or the need for servicing such as an oil change, tune-up, or filter change would be a function of miles driven although the last servicing was done on the automobile. This approach is evidenced by the quick oil change companies who put a sticker inside the windshield saying that the next servicing is to be done when the odometer says x miles. Wear has been taking place somewhat linearly as the miles have been driven. d. Plans to take a five-day vacation to Jamaica and the exchange rate of the Jamaican dollar to that of other countries, for Sandals, an all-inclusive resort located in Montego Bay. No relationship exists in that the exchange rate fluctuates slightly daily, but plans are not affected because they are made far in advance. That is, people still take the Sandals vacation despite the small fluctuations, so Sandals does not need to be concerned about the small exchange rate fluctuations. However, if there was a large fluctuation either way, plans would probably change accordingly, and Sandals would need to either combat these changes if the exchange rate was unfavorable or be prepared for a surge in demand if the rate was favorable for foreigners. With a large and lasting fluctuation, the relationship is monotonic and positive.

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e. Homeowners opting for do-it-yourself home repairs and state of the economy (e.g., a recession or a boom) for Ace Hardware stores.

As the economy declines, people do more home repairs themselves because they cannot afford to hire these services. As the economy strengthens, people will tend to hire the home repair services. The relationship is imprecise, so it is monotonic and negative.

12-13. Indicate the presence, nature, and strength of the relationship involving purchases of intermediate-size automobiles and each of the following factors: (a) price, (b) fabric versus leather interior, (c) exterior color, and (d) size of rebate.

The type of relationship, its nature, and probable strength are described under each factor. a. Price The relationship is negative and monotonic and might be linear if a downward sloping demand curve comes to mind. The relationship would be strong, particularly at the extreme ends. b. Fabric versus leather interior There usually are two options: fabric or leather. Leather is more expensive than fabric. Most people purchase fabric interiors, so the relationship is nonmonotonic with fabric having more purchases than leather. The fabric relationship would be strong for low-price autos and weak for expensive autos (where some actually do not have a fabric option). c. Exterior color Color is a categorical variable, and there are a great many different colors of automobiles. There is no discernible relationship; although, one could argue that white is the most common color, so there is a weak nonmonotonic relationship for white autos. d. Size of rebate Larger rebates are more attractive to buyers. There is a strong positive monotonic relationship between rebate size and purchases.

12-14. With each of the following examples, compose a reasonable statement of an association you would expect to find between the factors involved and construct a stacked bar chart expressing that association.

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The statement of the association and a stacked bar chart that might be illustrative of this association are listed following each example. a. Wearing orthodontic devices to straighten teeth by children attending expensive private schools versus those attending public schools.

Children attending private schools will tend to have more wearing of braces than will those children attending public schools (because of affordability).

Private School

Public School

Do Not Wear Braces Wear Braces

Do Not Wear Braces

Wear Braces

b. Having a Doberman pinscher as a guard dog, using a home security alarm system, and owning rare pieces of art.

Owners of rare pieces of art will most probably have a home security system, but only a few of them will own a Doberman.

Do Not Own No Security Copyright © 2026 Pearson Education, Inc.

Own Rare Art

No security Security only Security and dog Security and dog

Security

c. Adopting the MyPlate eating style recommended by the U.S. Department of Agriculture and family history of heart disease.

Many, but not all of those with heart disease family history will adhere to the “MyPlate” and more so than individuals without heart disease family history.

History

No History

Do Not Diet Do Not Diet Diet

Diet

d. Purchasing toys as gifts during the Christmas buying season versus other seasons of the year by parents of preschool-aged children.

Purchases of toys by these parents happen year-round. The Christmas season is simply a period of more intense purchases.

Christmas Season Copyright © 2026 Pearson Education, Inc.

Year-Round Do Not Buy Toys

Do Not Buy Toys Buy Toys

Buy Toys

12-15. Following is some information about 10 respondents to a survey concerning candy purchases. Use SPSS to construct the four possible cross-tabulation tables. Label each table and indicate what you perceive to be the general relationships apparent from the data.

Respondent Buys Plain M&Ms 1 Yes 2 Yes 3 No 4 Yes 5 No 6 No 7 No 8 Yes 9 Yes 10 No The SPSS output follows:

Buys Peanut M&Ms No No Yes No No Yes No No No Yes

Plain * Peanut Cross-tabulation Plain

Yes

No

Total

Peanut Yes No Total Count 0 5 5 % within 0.0% 100.0 100.0 Plain % % Count 3 2 5 % within 60.0 40.0 100.0 Plain % % % Count 3 7 10 Copyright © 2026 Pearson Education, Inc.

% within Plain

30.0 %

Chi-Square Tests

Pearson Chi-Square Continuity Correctionb Likelihood Ratio Fisher’s Exact Test Linear-by-Linear Association N of Valid Cases

70.0 %

100.0 %

Value 4.286a 1.905

df 1 1

Asymptotic Significance (2-sided) .038 .168

5.487

1

.019

3.857

1

Exact Sig. (2sided)

Exact Sig. (1-sided)

.167

.083

.050

10

a. A Chi-square of 4.286 with 1 degree of freedom indicates there is a significant association (Sig = .038). Those who buy plain M&Ms do not buy peanut M&Ms, and the peanut M&M buyers do not buy plain M&Ms. b. Continuity correction improves the accuracy of the Chi-square test’s p-value when the sample size is small.

12-16. Morton O’Dell is the owner of Mort’s Diner, in downtown Atlanta, Georgia. The diner opened about 12 months ago, and it has experienced success. But Mort is always worried about what food items to order on a weekly basis because, in some weeks, he has excess inventory, such as too much fish, that must be discarded. Mort’s daughter, Mary, is an MBA student at Georgia State University, and she offers to help her father. She asks him to provide sales data for the past 10 weeks in terms of total pounds of food bought by customers. With some difficulty, Mort comes up with the following numbers.

Week 1 2 3 4 5 6 7 8 9 10

Meat 100 91 82 75 66 53 64 76 94 105

Fish 50 55 60 68 53 61 57 64 68 58

Fowl Vegetables 150 195 50 182 200 64 194 209 70 211 215 82 235 225 73 253 234 53 237 230 68 208 221 58 193 229 62 181 214 62

Desserts

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Mary uses these sales figures to construct scatter diagrams that illustrate the basic relationships among the various types of food items purchased at Mort’s Diner over the past 10 weeks. She tells her father that the diagrams provide some help in his weekly inventory ordering problem. Construct Mary’s scatter diagrams with SPSS to indicate what help they can offer Mort. Perform the appropriate associated analysis with SPSS and interpret your findings.

Students will need to create an SPSS for Windows, Student Version, and dataset, and create the scatter diagrams. A correlation matrix is equally informative and much easier. The correlation matrix follows.

Correlations meat meat

fish −.138

−.952

−.674

−.211

.704

.000

.033

.558

10

10

10

10

10

Pearson Correlation

−.138

1

.265

.466

.315

Sig. (2-tailed)

.704

.460

.175

.375

10

10

10

1

**

.270

.002

.451

Pearson Correlation

N Pearson Correlation Sig. (2-tailed) N veggies

1

10

10

**

.265

.000

.460

10

−.952

.853

10

10

10

10

*

.466

.853

**

1

.106

.033

.175

.002

10

10

10

10

10

Pearson Correlation

−.211

.315

.270

.106

1

Sig. (2-tailed)

.558

.375

.451

.771

10

10

10

10

Pearson Correlation Sig. (2-tailed) N

dessert

dessert *

N

fowl

veggies **

Sig. (2-tailed)

fish

fowl

N

−.674

.771

10

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

The scatter diagrams will be consistent with the correlations. That is, high correlations denote elliptical scatter patterns, while low correlations denote shapeless patterns. To illustrate, the meat-fowl (−.952), and the veggies-dessert (.106) scatter diagrams are provided next.

12-17. Jill’s Jewels is a company that sells fashion jewelry on its website. The website includes a blog where customers are encouraged to post comments. On every other week, for a 12-week period, Jill’s Jewels has had a 25% price discount on anything bought within six hours of the discount’s appearance on the website. One of Jill’s Jewels employees is assigned the task of watching posts on the blog and judging if one-third or more consists of comments on (1) the Copyright © 2026 Pearson Education, Inc.

price promotion, (2)complaints, (3) ―brand love‖ for Jill’s Jewels, or (4) some other comment.

The resulting dataset follows. In the table, a ―1‖ signals ―yes‖ and a ―2‖ signals ―no.‖

Week 1 2 3 4 5 6 7 8 9 10 11 12

Price Promotion 1 2 1 2 1 2 1 2 1 2 1 2

Complaints 2 1 2 1 2 2 2 1 2 1 2 2

Brand Love 1 2 1 2 1 2 1 2 1 1 1 2

Other Comment 2 1 1 1 1 1 1 1 2 1 1 2

Enter this data into SPSS and apply the appropriate associative analysis method. What do the Jill Jewel’s blog posts reveal about the relationship between the price promotions and the following: complaints about Jill’s Jewels, brand love for Jill’s Jewels, and some other comment about Jill’s Jewels?

The variables are nominal, so three cross-tabulations with Chi-square analysis are called for: Price promotion X complaint, brand love, some other comment.

Two cross are significant (statistics tables not included below).

Crosstab

Price Yes Promotio n No Total

Count % within Price Count % within Price Count % within Price

Complaints Yes No 0 6 0.0% 100.0% 4 2 66.7% 33.3% 4 8 33.3% 66.7%

Total 6 100.0% 6 100.0% 12 100.0%

During price promotion weeks, complaints are nonexistent, while they happen on nonprice promotion weeks.

Crosstab

Price Yes Promotio

Count % within Price

Brand Love Yes No 6 0 100.0% 0.0%

Total 6 100.0%

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n

No

Total

Count % within Price Count % within Price

1 16.7% 7 58.3%

5 83.3% 5 41.7%

6 100.0% 12 100.0%

Customers love the brand during price promotion weeks and not during nonprice promotion weeks.

Crosstab

Price Yes Promotio n No Total

Count % within Price Count % within Price Count % within Price

Some other comment Time Yes No 4 2 66.7% 33.3% 5 1 83.3% 16.7% 9 3 75.0% 25.0%

Total 6 100.0% 6 100.0% 12 100.0%

Chi-Square Tests

Value a .444 .000 .451

df 1 1 1

Asymptotic Significance (2sided) .505 1.000 .502

Exact Sig. (2sided)

Pearson Chi-Square b Continuity Correction Likelihood Ratio Fisher's Exact Test 1.000 Linear-by-Linear Association .407 1 .523 N of Valid Cases 12 a. 4 cells (100.0%) have expected count less than 5. The minimum expected count is 1.50. b. Computed only for a 2x2 table

Exact Sig. (1sided)

.500

This cross-tabulation has a nonsignificant Chi-square value, so there is no association or systematic relationship between price promotions and some other comment.

CASE SOLUTIONS Case 12.1 Nouvelle Restaurant Survey Associative Analysis Case Objective This case item requires students to identify the proper associative analysis, run it with SPSS, and interpret the findings with respect to implications for Nouvelle Restaurant.

Answers to Case Questions 1. Is preferred driving time to Nouvelle Restaurant associated with preferences (positive or negative) for its possible features? In other words, what is the relationship of the preference

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to drive 30 minutes or less with all the other possible features (such as waterfront view, formal wait staff attire, etc.) of Nouvelle Restaurant?

All correlations are statistically significant (from zero) and low. Preferring to drive less than 30 minutes is positively correlated with preferring: formal waitstaff attire, unusual desserts, large variety of entrées, elegant décor, and classical background music. It is negatively correlated with: waterfront view, simple décor, and top 40 background music. So, it seems that potential customers are willing to drive a distance for a formal, full-service, ―nice‖ restaurant while they are not willing to do so for a simple restaurant with a waterfront view.

2. Are menu preferences related to age? That is, do older or younger people want unusual desserts and/or unusual entrées?

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Both correlations (.284 and .371) are positive, so there is some evidence that older people prefer unusual entrée and dessert menu items.

3. Use the variable that distinguishes the ―Probable patrons‖ of Nouvelle Restaurant (Likely to patronize  1 or 2) from the ―Not probable patrons‖ (Likely to patronize  3, 4, or 5). If the

probable patrons constitute Nouvelle Restaurant’s target market, what is the demographic makeup of this target market? Use the demographics of gender, marital status, and ZIP code.

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These cross-tabulation findings reveal that ―probable patrons‖ of the proposed Nouvelle Restaurant tend to be females (weak evidence) living in Area B (strong evidence) who are single or married.

4. Is City Magazine a viable advertising medium to use? Apart from this question, are there other viable promotion vehicles that we should be considered?

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This cross-tabulation analysis reveals moderate evidence that City Magazine is a good promotion vehicle for “probable patrons” as about ½ subscribe to it while over 90% of nonprobable patrons do not subscribe to it.

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There is no significant association: Using online music as a promotion vehicle would not target probable patrons more so than nonprobable ones.

Significant association: If online music was a promotion tool for Nouvelle Restaurant, there is strong evidence that Easy Listening would best reach probable patrons.

Significant association: There is moderate evidence that probable patrons tend to view local TV news more than nonprobable patrons.

Significant association: There is strong evidence that probable patrons tend to watch the 6 p.m. news more than nonprobable patrons of Nouvelle Restaurant.

No significant association: Reading the local newspaper daily tends to be the same for probable and nonprobable patrons of Nouvelle Restaurant.

Significant association: There is strong evidence that probable patrons of Nouvelle Restaurant tend to read the Editorial and Business sections of the local newspaper more than do nonprobable patrons.

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CASE 12.2 The Homespread Restaurant Survey Associative Analysis Case Objective This case item requires students to identify the proper associative analysis, run it with SPSS, and interpret the findings with respect to implications for Homespread Restaurant.

1. Concerning ordering appetizer, salad, etc., what, if any, menu items tend to be ordered with an entrée? Based on your findings, what recommendations are appropriate if Homespread Restaurant management’s objective is to increase customers’ orders of its menu items?

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No association between ordering entrée and ordering salad. About ½ of Homespread Restaurant customers order a salad whether or not they order an entrée item.

No association between ordering entrée and ordering a side. Slightly less than ½ of Homespread Restaurant customers order a side whether or not they order an entrée item.

Significant association: There is weak evidence that some customers (about 1/3) order an alcohol beverage when they order an entrée.

No association between ordering entrée and ordering a dessert. About ½ of Homespread Restaurant customers order a dessert whether or not they order an entrée item.

Recommendations from these findings: Given that only alcohol is significantly associated with ordering an entrée, this means that all other items are ordered independently. Since most customers order an entrée, any positive association with any other item has the potential to increase sales for the second item. Possible strategies include: promotions to encourage ordering two items together (such as: ―try our entrée and dessert pairings‖), price savings (get salad for x% less when ordered with an entrée), or waitstaff suggestions (―wouldn’t you like a side with your entrée?‖) might be used to increase orders of the second items.

2. Are Homespread customers who used a competitor such as Olive Garden in the past month identifiable with respect to also use Applebee’s or Chili’s? Based on your findings, which competitor or set of competitors, if any, would you characterize as a threat to Homespread Restaurant?

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Significant association: There is weak evidence that those who use Applebee’s tend not to use Olive Garden.

Significant association: There is moderate evidence that those who do not use Applebee’s also do not use Chili’s.

No significant association between using Chili’s and Olive Garden.

Using frequencies tables to determine patronage of the other restaurants (below), roughly ¼ of Homespread customers use Olive Garden and Chili’s monthly and about 1/3 of them use Applebee’s. Since not using Applebee’s is associated with not using the other competitors, if Homespread Restaurant can take market share away from Applebee’s, it will also take it away from Olive Garden and Chili’s.

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3. With respect to the five possible improvements in price specials, online reservations, and so on, how do their desirabilities relate to the age of Homespread Restaurant customers?

Specifically, what improvement(s), if any, are desired by older customers and what one(s), if any are desired by younger customers?

There is some weak evidence that younger Homespread Restaurant customers do not desire heart-healthy dishes while they do want online reservations. The remaining correlations are very weak and inconsequential.

4. How does brand loyalty relate to the five possible improvements of price specials, online reservations, and so on? Specifically, what possible improvement(s), if any, are desired by Homespread customers who are brand loyal? What about those customers who engage in an active lifestyle?

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There is moderate evidence (barely) that brand loyal customers desire the frequent diner program.

There is weak evidence that customers with an active lifestyle desire online reservations.

5. If Homespread Restaurant desired to generate more business from customers who are younger, what social media vehicles would be most effective in potentially reaching this target group? Perform the proper analysis and write a statement of the best social media strategy to communicate with customers who are younger.

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The highest negative correlation (meaning younger individuals use it more) is with use of online games (although weak, but typical for survey datasets), so promoting Homespread Restaurant on online game apps and websites will potentially reach younger target market members.

6. How do the ratings of Homespread Restaurant’s several characteristics such as variety of choices, prices, etc., relate to overall satisfaction with Homespread Restaurant? Specifically, which one(s) are significantly positively correlated with overall satisfaction and what is the strength of these correlations?

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As expected for correlations with survey datasets, all are small. There is weak evidence that satisfaction with Homespread Restaurant is positively associated with: taste and quality of its servings. Other statistically significant (from zero) correlations are so small as to be inconsequential.

XL Data Analyst Pro Appendix XLDA Exercise. Repeat this analysis for the six lifestyle measures using overall satisfaction with Homespread Restaurant as the primary variable.

See Active Learning Item below.

XLDA Exercise. Use the Homespread Restaurant XLDA dataset and replicate the marital status and ordered an appetizer on the last visit analysis just described. Then use it to see if there is an association between marital status and other items, such as a salad ordered in the restaurant.

See Active Learning Item below.

ACTIVE LEARNING Copyright © 2026 Pearson Education, Inc.

Practice Correlation Analysis with SPSS To make certain that you can perform SPSS Pearson correlation analysis, use the Homespread Restaurant SPSS dataset and replicate the six lifestyle measures associated with future patronage intentions. Repeat this analysis for the six lifestyle measures using: (1) overall satisfaction with Homespread Restaurant and (2) intention to use Homespread Restaurant in the future. Are the findings of these analyses what you expect to find? Why or why not? How do your findings help Homespread Restaurant understand its customers?

NOTE: ONLY THE RELEVANT COLUMN OF THE CORRELATION MATRIX IS SHOWN HERE.

As expected for survey datasets, the correlations are low.

Brand loyalty is positively correlated with satisfaction with Homespread Restaurant: as one would expect. This means that customers who are brand loyal to brands they like are generally satisfied with Homespread Restaurant.

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Again, the correlations are low.

As with satisfaction, brand loyalty is positively correlated to intention to use Homespread Restaurant in the future. Seemingly this brand loyalty explains these intentions to some extent.

Healthy lifestyle is also positively correlated with intentions to use Homespread Restaurant in the future, so its offerings are possibly perceived to be healthy.

Practice Cross-Tabulation Analysis with SPSS To make certain that you can perform SPSS cross-tabulation with Chi-square analysis, use the Homespread Restaurant SPSS dataset and replicate the Marital status and Ordered an appetizer on the last visit described. When you are convinced that you can do this analysis correctly and interpret the output, use it to see if there is an association between marital status and other items, such as a salad ordered in the restaurant. Don’t forget to use the appropriate means to assess significant relationship sizes.

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Associations found from this cross-tabulation analysis are as follows:  Marital status is ordering salad—no association  Marital status and side orders—married, cohabitation tend to while singles tend not to  Marital status and ordering alcohol—no association  Marital status and ordering an entrée—no association  Marital status and ordering a dessert—married, cohabitation slightly more likely to than singles

CHAPTER 13 UNDERSTANDING REGRESSION ANALYSIS BASICS LEARNING OBJECTIVES In this chapter you will learn: 13.1 Describe bivariate linear regression analysis, including basic concepts such as terms, assumptions, scatter diagrams, outliers, and equations 13.2 Explain what multiple regression analysis is, including the basic underlying conceptual model, terms, assumptions, and multicollinearity 13.3 Relate what stepwise multiple regression is, including how to do it with SPSS 13.4 Outline the steps necessary to perform multiple regression 13.5 Illustrate how to report multiple regression analysis insights to clients 13.6 Identify warnings regarding the use of multiple regression analysis CHAPTER OUTLINE Bivariate Linear Regression Analysis 

Basic Concepts in Regression Analysis o Independent and Dependent Variables o Computing the Slope and the Intercept o Assessing the Strength of a Regression Analysis Copyright © 2026 Pearson Education, Inc.

o Improving a Regression Analysis Finding Multiple Regression Analysis    

The Conceptual Model for Multiple Regression Multiple Regression Analysis Described How to Run and Interpret Multiple Regression Analysis with SPSS o Preparation of Variables for Analysis o Run Multiple Regression o “Trimming” the Regression for Significant Findings o Interpreting the Multiple Regression Findings, including Dummy Variables

Stepwise Multiple Regression How to Do Stepwise Multiple Regression with SPSS Step-by-Step Summary of How to Perform Multiple Regress Analysis Communicating Regression Analysis Insights to Clients Warnings Regarding Multiple Regress Analysis KEY TERMS Additivity Bivariate regression Coefficient of determination Dependent variable Dummy independent variable General conceptual model Independence assumption Independent variable Copyright © 2026 Pearson Education, Inc.

Intercept Key driver analysis Least-squares criterion Multicollinearity Multiple R Multiple regression analysis Outlier Regression analysis Regression plane Screening device Slope Standardized beta coefficient Stepwise multiple regression Target market definition Trimming Variance inflation factor (VIF)

TEACHING SUGGESTIONS 1. The analysis of residuals underpins assessment of the goodness of a predictive model, and it is an important foundational concept. To help students understand analysis of residuals, consider the following in-class exercise.

Show students the following number series, and ask them what straight line formula will correctly predict the next number.

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15, 20, 25, 30, ?

To find the intercept, use y = a + bx, and set x = 0, or a + b (0) = 15 a = 15 Next, experiment with different values of b, and look at how close the results are to the given series.

Series (y) 15 Let x = 0 15 + 1x 15 15 + 2x 15 15 + 3x 15 15 + 4x 15 15 + 5x 15

20 1 16 17 18 19 20

25 2 17 19 21 23 25

30 3 18 21 24 27 30

?

4 19 23 27 31 35

Residual (sum: 0−3) 24 18 12 6 0

The residual (sum: 0−3) is the sum of the differences in the predicted value for each equation as compared to the series. The 15 +5x equation has the lowest residual, so it is the best predictive model, and although its residual is 0, the prediction of 35 for x=4 is correct.

2. Use of the Novartis data to illustrate bivariate regression is intentional as it explicitly ties regression to correlation. The text notes that the same data is used, but it is worthwhile to point out the connection to students who may have skipped over this point or otherwise overlooked it.

3. There are many nuances to regression analysis not treated in this chapter’s introduction to the topic. The intent is to describe the basic concepts and to have students identify their related values on SPSS output. SPSS on the other hand, does provide for a number of statistical options that are beyond the scope of the chapter, particularly in the case of multiple regression. Some instructors who desire more indepth coverage of this technique may do so with their own materials and rely on SPSS to accommodate this deeper coverage.

4. Regression analysis is complicated and difficult for undergraduate students to understand. To help with the comprehension of regression analysis, we have provided a number of regression application examples. If one’s students relate well to concrete examples, it may be beneficial to use these examples in class or to go over them in detail more than with the examples in earlier chapters.

5. The section on the underlying conceptual model for multiple regression analysis has two pedagogical benefits.

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First, it can be used to help students understand the distinction between independent and dependent variables. The independent variables come from the constructs that are on the outside of the diagram that have arrows pointing toward the center. Dependent variables emanate from the center of the diagram, and the diagram implies that the central variables (dependent) are affected or influenced by the surrounding variables (independent).

Second, the abbreviated lists of examples of variables for each circle in the diagram should help students to identify the specific variables (such as demographic variables) that would or could be used in the multiple regression model.

6. Because of the many assumptions of regression analysis that can be easily violated with a tool such as SPSS, we emphasize caution when unleashing students on multiple regression analysis. We have provided some readable references in the endnotes that we list below in case the Instructor wants his or her students to be exposed to practitioner-oriented literature on this topic. (The Quirk’s Marketing Research Review articles are available at www.quirks.com.)

See for example, Kennedy, Peter (2005, Winter), “Oh No! I got the wrong sign! What should I do?” Journal of Economic Education, Vol. 36, No. 1, 77–92.

For readable treatments of problems encountered in multiple regression applied to marketing research, see Mullet, Gary (1994, October), Regression, regression, Quirk’s Marketing Research Review, electronic archive, Mullet, Gary (1998, June), Have you ever wondered…, Quirk’s Marketing Research Review, electronic archive, Mullet, Gary (2003, February), Data abuse, Quirk’s Marketing Research Review, electronic archive.

ACTIVE LEARNING EXERCISES The General Conceptual Model for Auto Concepts Nick Thomas, CEO of Auto Concepts, wants everyone to purchase a new alternative fuel technology automobile; however, this will not be the case due to different beliefs and predispositions in the driving public. Regression analysis will assist Nick by revealing what variables are good predictors of intentions to buy the various new technology automobile models under consideration at Auto Concepts. What is the general conceptual model apparent in the Auto Concepts survey data set?

Demographics are:  Size of home town or city  Gender  Marital status  Number of people in household Copyright © 2026 Pearson Education, Inc.

     

Age Level of education Income level Dwelling type Auto or truck type owned Plan to purchase or lease a vehicle

Lifestyle is measured as follows.  Novelist  Innovator  Trendsetter  Forerunner  Mainstreamer  Classic Attitudes and beliefs are:  I am worried about global warming.  Gasoline emissions contribute to global warming.  Global warming is a real threat.  I drive conservatively to use less fuel.  I check traffic reports to avoid idling in traffic.  I drive an automobile that is fuel efficient.

Media habits are:  Favorite television show type  Favorite radio genre  Favorite magazine type  Favorite local newspaper section Social media usage  Use of online blogs  Use of content communities  Use of social network sites  Use of online games  Use of virtual worlds Nick will gain market segmentation implications from the demographics, lifestyle variables and the past behavior (type of vehicle owned), promotional strategy implications from the media habits, attitudes, and beliefs variables.

Segmentation Associates, Inc. This active learning exercise requires students to interpret the results of multiple regression and to apply them to market segmentation target marketing considerations Copyright © 2026 Pearson Education, Inc.

using the underlying conceptual model concept described in the chapter. It also illustrates the use of multiple regression to identify market segment differences.

1. What is the underlying conceptual model used by Segmentation Associates that is apparent in these three sets of findings?

One can refer to the general conceptual model presented in Figure 13.4 and pick out those variables that are apparent in the Segmentation Associates example.

The dependent variable is type of automobile purchased (economy, sports car, luxury car, or compact pickup). In order to satisfy multiple regression assumptions, the dependent variable(s) would be metric, so they could be preference measures (such as 1 = do not prefer and 5 = greatly prefer) as to automobile type. The independent variables are demographic and lifestyle measures. Thus, the conceptual model is that demographic and lifestyles predict automobile type preference.

2. What are the segmentation variables that distinguish economy automobile buyers, and in what ways?

The relevant section of the table is reproduced here. Recall that the cell entries are standardized beta coefficients that are statistically significant. Economy automobile buyers have strong family values, are not cosmopolitan, have larger families, take pride in “American,” but do not embrace change. They are younger, financially insecure, and they have less education and earn less income.

Segmentation Variable Demographics Age Education Family Size Income Life Style/Values Active American Pride Bargain Hunter Conservative Cosmopolitan Embraces Change Family Values Financially Secure Optimistic

Compact Automobile Buyers −.28 −.12 +.39 −.15 +.30 +.45 −.40 −.30 +.69 −.28 -

3. What are the segmentation variables that distinguish sports car buyers, and in what Copyright © 2026 Pearson Education, Inc.

ways?

Segmentation Variable Demographics Age Education Family Size Income Life Style/Values Active American Pride Bargain Hunter Conservative Cosmopolitan Embraces Change Family Values Financially Secure Optimistic

Sports Car Buyers −.15 +.38 −.35 +.25 +.59 −.33 −.38 +.68 +.65 +.21 +.71

Sports car buyers are optimistic and cosmopolitan, and they embrace change. They also lead active lives. They are not conservative, and they are not bargain hunters.

Demographically, sports cars buyers have more education and more income, are younger, and represent smaller families.

4. What are the segmentation variables that distinguish luxury automobile buyers, and in what ways?

Segmentation Variable

Luxury Automobile Buyers

Demographics Age +.59 Education Family Size Income +.68 Lifestyle/Values Active −.39 American Pride +.24 Bargain Hunter Conservative +.54 Cosmopolitan Embraces Change Family Values +.21 Copyright © 2026 Pearson Education, Inc.

Financially Secure Optimistic

+.52 +.37

Luxury car buyers are older with higher incomes. They are conservative, financially secure, and optimistic. They do not lead active lives, and they believe in family values and American pride.

SYNTHESIZE YOUR LEARNING Alpha Airlines Students must assess the scaling assumptions underlying the questions on the survey, and for each question, they must identify the proper form of analysis.

1. What is the target market profile of each of the following types of Alpha Airlines traveler?

That is, what demographic and lifestyle factors are related to the number of trips traveled on Alpha Airlines for each of the following types? a. Domestic business traveler b. Domestic tourist traveler c. International business traveler d. International tourist traveler All four variables are measured by the number of trips, hence, all are ratio scaled.

Demographic variables that are nominal (gender, marital status, etc.) define groups, so independent samples differences tests (if two groups) or ANOVA (if three or more groups) is appropriate. For two groups, the means would be in the first SPSS table and significance level would be indicated in the following table. For ANOVA, the Duncan’s Multiple Range table would contain the means.

For metric variables such as lifestyle, number of trips, age, etc., one must use correlation analysis. The correlations and significance levels would be in the SPSS correlations output.

2. Are there differences in the desirabilities of each of the seven potential new Alpha Airlines services with respect to: a. Gender? b. Belonging (or not) to Alpha Airlines frequent-flyer program? c. Belonging (or not) to Alpha Airlines Prestige Club (private lounge areas in some airports)? d. Use or nonuse of Alpha Airlines’ website to book most of your flights? e. Usual class of seating (business versus economy class) on Alpha Airlines?

Desirability is measured on an interval scale. The differences variables (a–e) in this question are all measured with two groups, so independent samples differences tests should be performed. The means would be in the first SPSS table and significance level would be indicated in the following table.

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3. Do relationships exist for estimated number of air flight trips in each of the past 3 years on any airline with: a. Age? b. Income? c. Education? d. Any of the lifestyle dimensions?

Income, education, and lifestyle are measured metrically, and the number of flights is ratio scaled, so correlations are to be used. The correlations and significance levels would be in the SPSS correlations output.

4. Do associations exist for (1) participating or not in Alpha Airlines frequent-flyer program, (2) membership or not to Alpha Airlines Prestige Club (private lounge areas in some airports), and/or (3) use or not of Alpha Airlines website to book most flights with: a. Gender? b. Marital status? c. Usual class of seating (business versus economy class) on Alpha Airlines?

These are nominally scaled variables, so cross-tabulations are called for. The Chi-square significance would be in the statistics table, while the column and/or row percentages would be in the accompanying table.

ANSWERS TO END-OF-CHAPTER QUESTIONS 13-1. The use of explained variance to systematically eliminate independent variables in a multiple regression analysis. Use an x-y graph to construct and explain a reasonably simple linear model for each of the following cases:

a. What is the relationship between gasoline prices and distance traveled for family automobile touring vacations?

As gasoline prices at the pump increase, the number of automobile touring miles for family vacations decreases. b. How do hurricane-force wind warnings(e.g., Category 1, Category 2, etc.) relate to purchases of flashlight batteries in the expected landfall area?

The severity of the forecasted hurricane will be positively related to purchases of flashlight batteries because hurricanes commonly cause electricity blackouts.

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c. What is the relationship between number of passengers with carry-on luggage and charges for checking luggage on airlines?

As charges for checking luggage and/or the number of airlines charging for checked luggage increase, so too will the number of passengers who travel with carry-on luggage because more and more of these passengers will want to avoid the extra charges.

13-2. Indicate what the scatter diagram and probable regression line would look like for two variables that are correlated in each of the following ways (in each instance, assume a negative intercept): The scatter diagram appearance and regression line are described after each correlation. a. −0.89 The scatter diagram would be a well-defined and narrow ellipse with a negative slope. The regression line would begin at the (negative) intercept and trace the midpoint line of the ellipse from end to end. b. +0.48 The scatter diagram would be an ill-defined and wide ellipse with a positive slope.

The regression line would begin at the (negative) intercept and cut through the middle of the ellipse from end to end. c. −0.10 The scatter diagram would be definitionless. The regression line would begin at the (negative) intercept and move down to the right. The precise angle of the regression line could not be determined from the scatter diagram.

13-3. Circle K runs a contest inviting customers to fill out a registration card. In exchange, they are eligible for a grand prize drawing to win a trip to Alaska. The card asks for the customer’s age, education, gender, estimated weekly purchases (in dollars) at that Circle K, and approximate distance the Circle K is from their home. Identify each of the following if a multiple regression analysis were to be performed. a. b. c.

Independent variable Dependent variable Dummy variable

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The dependent variable is estimated weekly purchases, while the independent variables are age, education, gender, and distance from his/her home. Gender is a dummy variable although it is categorical (male or female).

13-4. Explain what is meant by the independence assumption in multiple regression. How can you examine your data for independence, and what statistic is issued by most statistical analysis programs? How is this statistic interpreted? That is, what would indicate the presence of multicollinearity, and what would you do to eliminate it?

The independence assumption refers to the necessity for the independent variables in a multiple regression to be statistically independent, or uncorrelated. This is a fundamental assumption of multiple regression. The statistic referred to is the variance inflation factor or VIF. A rule of thumb is that as long as VIF is less than 10, multicollinearity is not a concern. With a VIF of greater than 10 associated with any independent variable in the multiple regression equation, the researcher should remove that variable from the independent variable set, and rerun the multiple regression. This iterative process is used until only independent variables that are statistically significant and that have acceptable VIFs are in the final multiple regression equation.

13-5. What is multiple regression? Specifically, what is “multiple” about it, and how does the formula for multiple regression appear? In your indication of the formula, identify the various terms and also indicate the signs (positive or negative) that they may take on.

Multiple regression is conceptually identical to bivariate regression except that more than one, and perhaps several, independent variables are used. The general equation for multiple regression is as follows:

y  a  b1 x1  b2 x 2  b3 x3  ...bn x n Where y is the dependent variables, a is the intercepts, the bis are the regression coefficients or betas, and the xis are the values of the independent variables. There are n independent variables in the equation.

13-6. If one uses the “enter” method for multiple regression analysis, what statistics on an SPSS output should be examined to assess the result? Indicate how you would determine each of the following: a. Variance explained in the dependent variable by the independent variables b. Statistical significance of each of the independent variables c. Relative importance of the independent variables in predicting the dependent variable

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For a., inspect the adjusted R squared; with b., the significance of the t value associated with each independent variable’s beta is reported; and for c., look at the standardized beta coefficients.

13-7. Explain what is meant by the notion of “trimming” a multiple regression result. Use the following example to illustrate your understanding of this concept.

A bicycle manufacturer maintains records over 20 years of the following: retail price in dollars, cooperative advertising amount in dollars, competitors’ average retail price in dollars, number of retail locations selling the bicycle manufacturer’s brand, and whether or not the winner of the Tour de France was riding the manufacturers’ brand (coded as a dummy variable where 0=no, and 1-yes).

The initial multiple regression result determines the following: Variable Average retail price in dollars Cooperative advertising amount in dollars Competitors’ average retail price in dollars Number of retail locations Tour de France

Significance Level .001 .202 .028 .591 .032

Using the “enter” method in SPSS, what would be the trimming steps you would expect to undertake to identify the significant multiple regression result? Explain your reasoning. ―Trimming‖ refers to the iterative process of eliminating nonsignificant independent variables and rerunning the multiple regression until only statistically significant ones remain. In the bicycle example, the process would be to next eliminate the ―number of retail locations‖ for the next multiple regression run. If ―cooperative advertising...‖ is again nonsignificant and the largest significance value, eliminate it and rerun the trimmed multiple regression. Continue until only statistically significant betas are left.

The logic is based on the null hypothesis that says that any nonsignificant independent variable in the multiple regression equation has a beta of zero. Thus, in order to make it take on a zero beta, the independent variable must be removed.

Otherwise, the statistical analysis will still compute a nonzero value for that independent variable.

13-8. Using the bicycle example in question 7, what do you expect would be the elimination of variables sequence using stepwise multiple regression? Explain your reasoning with respect to the operation of this technique.

With stepwise regression, the first independent variable to be included is the one that is most significant and explains the most variance. The multiple regression equation is then Copyright © 2026 Pearson Education, Inc.

recomputed with the remaining independent variables and the most significant one in that set is added. This process is repeated until only those independent variables with statistically significant coefficients are in the equation.

There is no explained variance information in question 7, so students must work with the significance levels. Assuming that the significance levels do not differ with each iteration from those given in the bicycle example, the order of entry would be (1) average price in dollars, (2) competitors’ average retail price in dollars, and (3) Tour de France.

At this point, the stepwise procedure would stop and compute a multiple regression result for these three independent variables.

13-9. Emma Grant uses both Uber and Lyft with different results. She keeps the following record of her recent trips. Using SPSS, Excel, or some other graphical capability, diagram the regression lines for Uber and Lyft using the length of the trip as the independent variable.

Which company should Emma use for her next ride?

Length of Trip (minutes) 5 10 15 20 25

Emma’s Uber Rating (5star system) 3.3 3.5 4.0 4.2 4.5

Emma’s Lyft Rating (5star system) 4.6 3.7 3.4 3.2 3.0

Enterprising students may attempt to create a three-dimensional graph, but the data range and number of data points are too few to create a good-looking graph. Emma should use Uber for long-distance travel and Lyft for shorter distances.

13-10. The Maximum Amount is a company that specializes in making fashionable clothes in large sizes for plus-sized people. A survey was performed for the Maximum Amount, and a regression analysis was run on some of the data. Of interest in this analysis was the possible relationship self-esteem (dependent variable) and number of Maximum Amount articles purchased last year (independent variable). Self-esteem was measured on a 7-point scale where 1 signifies very low and 7 indicates very high self-esteem. Some items that have been taken from the output are displayed in the following text: Pearson product- moment correlation = +0.63 Intercept = 3.5 Slope = +0.2 All statistical tests are significant at the .01 level or less. What is the correct interpretation of these findings?

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This is a bivariate regression, so the square of the correlation will indicate the amount of variance explained by the regression which is .632 or about .40. The intercept suggests that for those people who buy no Maximum Amount articles, their self-esteem is 3.5 on the average. Self-esteem increases by the slope (.2) with each article purchased. And, although at the 95% level of significance, the confidence intervals are 1.5 times 1.96, or about 3.0. Essentially, prediction is very imprecise.

13-11. Wayne LaTorte is a safety engineer who works for the U.S. Postal Service. For most of his life, Wayne has been fascinated by UFOs. He has kept records of UFO sightings in the desert areas of Arizona, California, and New Mexico over the past 15 years and he has correlated them with earthquake tremors. A fellow engineer suggests that Wayne use regression analysis as a means of determining the relationship. Wayne does this and finds a “constant” of 30 separate earth tremor events and a slope of five events per UFO sighting. Wayne then writes an article for the UFO Observer claiming that earthquakes are largely caused by the subsonic vibrations emitted by UFOs as they enter the Earth’s atmosphere. What is your reaction to Wayne’s article?

Can students spot this misuse of regression?

Although Wayne has determined a statistical relationship, he cannot claim to have found a causal relationship with this data. There is only an association, and regression is a means of making a prediction, but it is inappropriate to infer a causal relationship. (Students may point out that the R squared and standard error are unknown, so it is impossible to assess the goodness of Wayne’s model, but the larger point is that he is using regression to substantiate his causal analysis.)

CASE SOLUTIONS Case 13.1 Nouvelle Restaurant Survey Regression Analysis Case Objective Students must apply predictive analysis on Nouvelle Restaurant survey SPSS case data set and interpret the findings.

Answers to Case Questions 1. What is the demographic target market definition for Nouvelle Restaurant?

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The target market definition for the new proposed Nouvelle Restaurant is individuals who are: 

Older (second highest standardized beta)



Higher in education (highest standardized beta)



Married



Higher in income



Female

Adjusted R Squared: .523—explains 50% of the variance in the dependent variable Copyright © 2026 Pearson Education, Inc.

2. What is the restaurant spending behavior demographic target market definition for Nouvelle Restaurant, and how does it compare to the demographic target marketing for Nouvelle Restaurant?

The target market definition for people who spend more per month on restaurants is individuals who are: 

Older (second highest standardized beta)



Higher in education (highest standardized beta) Copyright © 2026 Pearson Education, Inc.



Higher in income



Female

Adjusted R Squared: .612—explains 60% of the variance in the dependent variable

Comparison: The two target market definitons are almost identical meaning that the Nouvelle Restaurant concept appeals to individuals who spend more on restaurants monthly that those who do not.

3. Develop a general conceptual model of the possible Nouvelle Restaurant characteristics or features as they might relate to intentions to patronize it. Test it using multiple regression analysis and interpret your findings.

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Adjusted R squared = .526 The model is all of the possible features listed in the survey with likelihood to patronize as the intentions variable measure. For the table above, prospective customers of the proposed Nouvelle Restaurant are more likely to patronize it if:  Less than 30-minute drive  Waitstaff with formal attire  Unusual desserts  Unusual entrees  Not simple décor/Elegant décor  Classical background music or  Top 40 background music Adjusted R Squared: .526—explains 50% of the variance in the dependent variable Copyright © 2026 Pearson Education, Inc.

CASE 13.2 The Homespread Survey Regression Analysis Case Objective: Students will use multiple regression analysis to assist Homespread Restaurant management to better understand its customers.

1. What is the target market definition of Homespread Restaurant customers as defined by their frequency of using the restaurant?

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Adjusted R Squared: .336 Based on frequency of use, the target market definition for Homespread Restaurant is individuals who:  Have a less active lifestyle  Have a healthier lifestyle (highest standardized beta)  Experience things less  Are more loyal to brands they like (second highest standardized beta)  Are less optimistic  Have more ability than most people  Are older  Have more income Copyright © 2026 Pearson Education, Inc.



Are married

Adjusted R Squared: .344—explains 30% of the variance in the dependent variable 2. What is the target market definition of Homespread Restaurant customers as defined by their intentions to use Homespread Restaurant in the future?

Adjusted R Squared: .184 Based on intentions to use it, the target market definition for Homespread Restaurant is individuals who:  Have a less active lifestyle  Have a healthier lifestyle (highest standardized beta) Copyright © 2026 Pearson Education, Inc.

  

Are more loyal to brands they like (second highest standardized beta) Are less optimistic Are older

Adjusted R Squared: .184—explains 20% of the variance in the dependent variable

Differences between frequency of use and intentions to use Homespread Restaurant target market definitions: for the variables listed for Intention to use, the variables are identical. While for frequency of use, additional explanatory variables are: experience things less, less optimistic, more ability, and married. The difference may be due to the fact that frequency of use is a known behavior while intentions to use is a predicted behavior which is less certain than a known behavior. Conceivably, respondents are more hesitant or more guarded about prediction which dampens or lessens its relationship with some of the explanatory variables.

3. What are the key drivers to overall satisfaction with Homespread Restaurant?

NOTE: THE FOLLOWING RESULT IS FROM USING XLDA BACKWARD STEPWISE PROCEDURE AND THEN ELIMINATING REMAINING VARIABLES WITH NEGATIVE BETAS.

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Key drivers for satisfaction with Homespread Restaurant are: 

Taste



Presentation



Preparation



Quality (highest standardized beta)

Adjusted R Squared: .149—explains 15% of the variance in the dependent variable Implications for improvement of Homespread Restaurant: given that only 4 out of the 13 attribute ratings are related to satisfaction, the restaurant should strive to: (1) maintain, at Copyright © 2026 Pearson Education, Inc.

minimum, the current performance on these four and (2) improve its performance on some of the others in order to have a stronger basis for overall satisfaction. It should find with another survey how important is each attribute and perhaps use importance-performance analysis to identify attributes that should be prioritized for improvement.

With each analysis, prepare a summary that…

NOTE: THESE ARE ADDRESSED IN THE FINDINGS FOR EACH ABOVE 

Lists the statistically significant independent variables (use 95% level of confidence).



Interprets the relationship of each statistically significant independent variable with respect to the preference for the dependent variable.



Identifies or distinguishes the relative importance of each of the statistically significant independent variables.



Assesses the strength of the statistically significant independent variables as they join to predict the preferences for the dependent variable.



In the cases of target market definition for future users (intentions to use) versus past users (frequency of use), note any differences and speculate why these differences might exist.



Last, use your findings of the key drivers as well as the performance ratings for these key drivers to generate recommendations as to how Homespread Restaurant should prioritize its improvements for next year.

XL Data Analyst Pro Appendix Copyright © 2026 Pearson Education, Inc.

XLDA Exercise. First, replicate the multiple regression analysis just described using the frequent diner program as the dependent variable and the demographic and lifestyle variables as the independent variables set. When you believe you have successfully mastered the analysis, including interpretation of the dummy variables and standardized beta coefficients, apply multiple regression analysis with the identical independent variables, successively for the desirability of one or more of the following: 

Price specials



Online reservations



Heart-healthy dishes



Mixed drink specials

With each multiple regression analysis, trim it such that only statistically significant independent variables are analyzed, and interpret your findings.

See Active Learning Item below.

ACTIVE LEARNING It is time for you to delve into multiple regression using the Homespread Restaurant survey dataset. First, replicate the multiple regression analysis just described using the frequent diner program as the dependent variable and the demographic and lifestyle variables as the independent variables set. When you believe you have successfully mastered the analysis, including interpretation of the dummy variables and standardized beta coefficients, apply multiple regression analysis with the identical independent variables, successively for the desirability of: _____ With each multiple regression analysis, trim it such that only statistically significant independent variables are analyzed, and interpret your findings.

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

Price specials

Adjusted R Squared: .153 Homespread Restaurant customers who desire price specials are: o Optimistic o Older o Less educated o Lower in income (highest standardized beta) o Homeowners o Married (second highest standardized beta) Copyright © 2026 Pearson Education, Inc.



Online reservations

Adjusted R Squared: .445 Homespread Restaurant customers who desire online reservations are: o More active in lifestyle (highest standardized beta) o Less healthy in lifestyle o Less likely to experience new things (second highest standardized beta) o More optimistic Copyright © 2026 Pearson Education, Inc.

o Younger (third highest standardized beta, almost equal to experience new things) o Higher in income (highest standardized beta) o Homeowners o Female o Married (second highest standardized beta) 

Heart-healthy dishes

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Adjusted R Squared: .461 Homespread Restaurant customers who desire heart-healthy dishes are: o Healthier in lifestyle (highest standardized bets) o Less likely to experience new things o Less optimistic o Less confident o Older o Higher in education (second highest standardized beta) o Renters o Single 

Mixed drink specials

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Adjusted R Squared: .075 Homespread Restaurant customers who desire mixed drink specials are: o Higher in income (highest standardized beta) o Males o Married (second highest standardized beta)

CHAPTER 14 COMMUNICATING INSIGHTS LEARNING OBJECTIVES In this chapter you will learn: 14.1 Describe insights and the characteristics of effective insights communication 14.2 Distinguish characteristics of effective insights communication 14.3 Relate the elements in a traditional marketing research report 14.4 Summarize the guidelines for tables and graphs in a marketing research report 14.5 Compare the various methods used to discover insights 14.6 Differentiate the various methods used to communicate insights 14.7 Illustrate how a live presentation of a marketing research project takes place 14.8 Compare alternative methods of disseminating insights throughout an organization CHAPTER OUTLINE Why Insights?

Characteristics of Effective Insights Communication    

Accuracy Clear Memorable Actionable Copyright © 2026 Pearson Education, Inc.

The Traditional Marketing Research Report  

Planning the Report Front Matter  Title Page  Table of Contents  List of Tables and List of Figures, or a Combined List  Abstract/Executive Summary



Report Body o o o o o o



Introduction Research Objectives Method Results Limitations Conclusions and Recommendations

End Matter

Guideline for Tables and Visuals  Guidelines for Tables  Guidelines for Graphs Infographics Discovering Insights  Sense-Making  Tablelooks  Data Visualization  Effect Sizes  Multimethod Approach Communicating Insights  Narrative  Visuals  Storytelling “Live” Presentation of Insights Copyright © 2026 Pearson Education, Inc.

Disseminating Insights throughout an Organization  Full Report  Abstract/Executive Summary  Infographics  Dashboards  Video  Immersion Techniques

KEY TERMS Abstract/executive summary Appendices Bar chart Conclusions Dashboard Data visualization End matter Endnotes Figures Flow diagram Front matter Immersion technique Infographics Insights Introduction Copyright © 2026 Pearson Education, Inc.

Limitations Line graph Marketing research report Method Narrative Oral presentation Pie chart Recommendations Reference list Report body Research objectives Results Sense-making Storytelling Table of contents Tablelooks Tables Title page Video communication Visuals

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TEACHING SUGGESTIONS 1. Although the comments in the chapter about good form, proper format, and professional appearance of the research report are indisputable, a way to convince students of these necessities of report preparation is to show them a report that does not possess these characteristics. If an instructor has had an experience where a student team or an individual student’s report was especially atrocious, it may be useful to make overhead transparencies of selected ―bad‖ spots and show them to the class and thereby generate class discussion on the errors and how the flaws should have been handled.

2. As instructors review the various sections of a research report, an effective approach is to show or give students examples of each one. Use student reports from previous classes or use professional reports that have been acquired from consulting, business contacts, or colleagues.

3. A form of oral presentation that is not emphasized in the chapter, but one that is nonetheless important, is the use of notebook or personal computers to make and display “slide shows.” With the use of graphics programs, bullet charts, tables, and visuals can be produced. Special equipment can be used to project the images, in color, on an overhead screen during the oral presentation. If instructors have this equipment available, they should consider using it with sample visual aids to illustrate this presentation mode’s effectiveness to students.

4. If students are to prepare team research project reports for sponsors, there is a concern about quality control. One way to gain uniformity in team reports is to provide students with copies of previous reports and to tell them to use these as “templates” for form, format, flow, and style. Some instructors retain word processor files of finished reports and provide them to students as “templates” or electronic examples. After all, this is the way practicing marketing researchers prepare their reports.

5. We have included step-by-step instructions on how to use SPSS for Windows table creation and editing capabilities as well as step-by-step instructions on how to use the SPSS chart editor to produce professional quality graphs. If students are familiar with word processing, spreadsheet, graphics, or other software and can produce professional quality tables and graphs with these, they have the option of using these programs. SPSS output is transportable to other software as raw data tables. For instance, a copy-and-paste operation will transport an SPSS table into Excel (Microsoft Office) as a pivot table.

6. With team projects, students sometimes fail to utilize specialization. That is, the team members should identify members’ special skills and allocate the work of the project accordingly. For instance, one team member may be the statistical analysis specialist, another may be the graphics person, and another may be the report writer. It is also prudent to have the team identify an “enforcer” or someone who makes sure that the specialists perform their work on time.

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7. The Homespread Restaurant integrated case can be used as the basis for a complete report because it has the problem statement, research objectives, research method, and dataset. To do so, would be an extension of the Homespread Restaurant case at the end of Chapter 14.

ACTIVE LEARNING EXERCISES Create an Infographic Based on Information from Google Analytics For this exercise, create a two-page (8 1/2 x 11) infographic summarizing important characteristics of the behavior of users from one country (other than the United States) of the Google Merchandise Store for the previous year (http://analytics.google.com ). The characteristics you use might include overall key performance indicators (e.g., total revenue, # of users); user behavior (e.g., pages per session, bounce rate); demographics (e.g., gender, age); geographic characteristics (main languages used, top cities); and main products purchased (top products, top product categories). The infographic should also include a brief statement that summarizes the main strategic implications that arise from the analysis.

First, choose a nation on which to base your studies in Google Analytics. Here is how to filter results from Google Analytics by nation: From the Audience Overview page, select +Add Segment; Select the red box “+New segment”; Select Demographics: Next to “Location,” select “country” from the dropdown box and then “contains” and then type the country of your choice into the next box. Type a Segment Name into the box on the top left, and then select “Save.” Your results should now be filtered by the nation that you selected.

Next, change the time period to the most recent year. On the Audience Overview page on the top right, change the date range to Jan 1, 20__ to Dec 31, 20__, filling in the date for the previous year.

Now you should see displayed a great deal of information for your selected nation for the previous year in Google Analytics. To create a two-page (i.e., front and back) printed infographic in PowerPoint, select DESIGN – SLIDE SIZE. The select “letter paper (8 1/2 x11)” in the dropdown menu. You are now ready to design an infographic using Google Analytics information.

There are no questions for students to answer but reviewing the website and watching the demonstration may generate some discussion of the various capabilities of Google Analytics.

Explore Tableau Data Visualization Products To explore Tableau’s data visualization products, go to Tableau’s website at www.tableau.com. First, watch a video called “See It in Action” that will introduce you to Tableau’s capabilities and strengths. Next, you can download and examine for yourself Copyright © 2026 Pearson Education, Inc.

Tableau’s software, using Tableau’s free trail of their software. Best of all, if you are a fulltime college student attending an accredited school, you can use Tableau for free as long as you retain full-time status. College students may find it beneficial to take advantage of the free Tableau subscriptions to develop data visualization skills. Having knowledge of Tableau, or a similar type of data visualization and dashboard software, may be helpful for obtaining a full-time position upon graduation.

There are no questions for students to answer but reviewing the website and experimenting with Tableau may generate some discussion of the various capabilities of this software.

ANSWERS TO END-OF-CHAPTER QUESTIONS 14-1. What are “insights”? Why are some marketing researchers called “insights professionals”?

Insights are deep understandings of phenomena. It is universally believed that insights are better understood, more easily internalized, and more readily converted into action by clients. Consequently, marketing researchers, many of whom prefer to be called “insights professionals,” now use techniques and tools that deliver insights with impact.

14-2. Describe each of the characteristics of effective communication.

The characteristics of effective communication and their use in disseminating key insights are as follows: 1. Accurate: If research findings do not result from applying methods with rigor and integrity, then the report is fraudulent. This means that any information that is presented, whether primary or secondary, should result from processes that are scrupulously applied.

2. Clear: Insights should be communicated in such a way that all targeted audiences for a report can easily understand the results and their implications.

Reports should be easy to navigate, with signals, such as headings and subheadings, used to direct the reader to different topics of interest. Jargon should be eliminated. If technical language is used that may not be understood by all parties, it should be defined.

3. Memorable: If clients are exposed to research results, but do not use, or even remember findings, the project might as well not have been conducted. Effective communication first gets the attention of the audience, and then it enables the information to be remembered, retold, and used.

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4. Actionable: To be relevant for the end user, the research findings that are communicated should answer the questions raised through the research objectives. Researchers must not only describe the results of the research, but also explain what actions the clients should take based on the findings. Investing in marketing research should lead to competitive advantage.

14-3. What is the purpose of a marketing research report?

The purpose of a marketing research report is to provide documentation that transmits research results, conclusions, recommendations, and other important information to the client, who in turn makes decisions based on the contents of the report.

14-4. What planning should take place when creating a marketing research report?

The marketing research report requires planning of objectives, audience, insights, and so on. In preparation for writing the report, it is advisable to keep in mind the following questions. 

What are the problem statement and research objectives of the project, and how does the research address this?



What insights(s) are to be communicated?



Who is the audience?



What does the audience know about the project?



What does the audience need to know about the project?



What biases or preconceived notions of the audience need to be taken into consideration?



What communication vehicles (narrative, tables, graphs, etc.) are best suited to the audience?



What are the research company’s policies on its research reports? (Some companies have standard report templates, branding requirements, standardized terminology, and so forth.)

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These and other questions must be addressed before and kept in mind during the report writing process.

14-5. Describe what comprises the front matter, body, and end matter of a marketing research report.

Review question. This question requires students to itemize the various components of a marketing research report.

These elements can be grouped in three sections: front matter, body, and end matter.

The Elements of a Marketing Research Report Front Matter 1. Title Page 2. Letter of Authorization 3. Letter/Memo of Transmittal 4. Table of Contents 5. List of Illustrations 6. Abstract or Executive Summary Body 1. Introduction 2. Research Objectives 3. Methodology 4. Results 5. Limitations 6. Conclusions or Conclusions and Recommendations End Matter 1. Appendix 2. Endnotes 14-6. Distinguish tables from visuals in a marketing research report.

A table allows the reader to compare numerical data. It should be in rows and columns with appropriate headings.

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Visuals are figures, charts, diagrams, graphs, infographics, and other graphic aids that concisely present information that might otherwise be difficult to comprehend.

Visuals should tell a story; they should be uncluttered and self-explanatory. Even though they are self-explanatory, the key points of all visuals should be explained in the text.

14-7. Make a table and point out how it adheres to at least five guidelines for tables.

Answers will vary but here are guidelines students should adhere to. You encountered guidelines for effective tables in Chapter 10, the key points of which are listed here again because they are essential parts of marketing research reports that communicate effectively: 

Keep tables as simple as possible.



Use rows for the variables (scale data) or the categories (categorical data) presented in the table.



Use columns for measures of central tendency and variability.



Use highly descriptive and self-explanatory labels.



Typically, use variables with identical response scales in a single table.



If appropriate, arrange the variables (rows) in logical order, usually ascending or descending, based on the descriptive measure being used.

Beyond organization, some guidelines will ensure that the table strongly implies that it is credible and should be taken seriously: 

For a percentage table, use the SPSS APA style tables format as a beginning point.



Use one decimal place unless convention demands otherwise (e.g., currency requires two decimal places for cents).



With scales, include a table footnote that describes the scale.



Do not report measures that are largely redundant.



Only report findings that are meaningful or useful.



Use a conservative, professional format.

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14-8. Make a graph and point out how it adheres to at least five guidelines for graphs.

Answers will vary but here are the general guidelines for building effective data visualizations from tables. Reasonably good data visualizations can be created if one adheres to these guidelines. 

Decide what is the simple message that the graph should communicate.



Decide on the graph type: pie, bar, line, etc.



Keep it simple; eliminate superfluous elements.



Be conservative; avoid bold colors that clash, three-dimensional forms that can misrepresent values, icons that are difficult to interpret, and “cute” or novel elements that add clutter to the visual.



Use visual arrangement so the viewer can “see” the message.



Use color or shading to emphasize the message.



Include data values.



Keep axis labels simple but understandable.



Use a descriptive title.



Maintain a consistent “feel” or theme for all graphs.

14-9. What are infographics, and why are executive summaries sometimes done with them?

An infographic is a visual report designed to make key research results understood quickly and easily. Infographics display findings through graphs, tables, figures, photos, icons, and other visuals, with written explanations reduced to their essential meanings. This makes them ideal to use for executive summaries.

14-10. Explain why sense-making is at the core of the discovery on insights.

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When assembling, pondering, and interrogating all of the evidence in a marketing research project to satisfy the research objectives, the goal is to make sense of the data. Sense-making is the overarching quest to garner insights from data. With the ultimate goal of competitive advantage, it is incumbent on the marketing researcher to discover insights that are both understandable and actionable for the client.

14-11. Explain and give an example of how each of the following can lead to the discovery of insights: (1) tablelooks, (2) data visualization, (3) effect sizes, (4) statistical significance, and (5) multimethod approaches.

1. Tablelooks: Tablelooks format, combine, collapse, or otherwise modify a table so as to be interpretable, meaning that insights are readily apparent in the reworked table.

Examples will vary.

2. Data visualizations: The visual presentation of table data greatly facilitates the identification of patterns or structure in a table. Visual presentation is universally believed to be far more effective than narrative or table presentation, and data visualization is relied upon heavily by marketing researchers in their discovery of managerially meaningful findings. Insights are often obvious to a researcher when viewing the basic graphs in a statistical analysis program, but it is sometimes beneficial to import data into graphing or data visualization platforms and experiment with different arrangements in the search for meaningful insights. Examples will vary.

3. Effect sizes: Effect sizes communicate the relative magnitudes of findings and allow assessments of how strong or meaningful are the findings. With a multitude of statistically significant findings, a researcher can use effect sizes to organize or otherwise arrange the findings in order of meaningfulness. Examples will vary.

4. Statistical significance: Unless the findings are statistically significant they do not matter. Factors with higher levels of significance can generate more meaningful insights.

Examples will vary.

5. Multimethod approaches: Contemporary marketing research envisions qualitative and quantitative techniques as complementary, and multimethod marketing research projects can result in deep insight into the phenomena being studied. For example, a focus group or personal interviews may be conducted before or after a large-scale survey and the qualitative data used to supplement or otherwise explain quantitative findings. Examples will vary.

14-12. How does the discovery of insights differ from the communication of insights?

The discovery of insights in research data takes effort that is facilitated by sense-making, which is an overarching quest to garner them from the data. Sense-making can be boosted by relying on well-accepted theories of economic and human behavior, which provides ―shared ground‖ for researchers and clients. Tools that assist the researcher in Copyright © 2026 Pearson Education, Inc.

discovering insights include tablelooks or modifying statistical output tables to be interpretable, data visualization that identifies patterns or structure in data, effect sizes that can impart meaning or priorities in statistically significant findings, relaxation of rigid 95% statistical confidence requirements, and multimethod approaches that combine quantitative and qualitative research efforts. The researcher’s communication of insights can take any of three forms: narrative, visuals, or stories. Communication involves conveying those insights to clients in a meaningful way.

14-13. How does narrative communicate insights, and why is it a weak communication method?

Narrative is defined as the use of tables and descriptions of their contents. Tables are ―read,‖ and hence they are listed under ―narrative.‖ Even when assisted with tablelooks to make them more understandable, tables are not necessarily so, and it is customary to include a narration or description of the table’s key findings. Terms used in the tables can be interpreted in a variety of valid ways, meaning that narrative descriptions often leave imprecise impressions. So, while necessary, tables and words describing them and the project’s conclusions are the least effective communication vehicles for a marketing research report.

14-14. How do visuals communicate insights, and why are they better than narrative?

Data visualizations in the form of graphs, charts, diagrams, and the like are excellent communication devices. They are, in fact, the de facto practice for research presentations. Effective graphs enable clients to “see” the key patterns or relationships in the data, meaning that they translate table data into meaningful pictures that clients can immediately understand and retain.

14-15. How does storytelling communicate insights, and why is it preferred by insights professionals?

Contemporary storytelling involves more than narration or data visualization because it strives to make sense of research discoveries and to communicate them with an emphasis on understanding. With storytelling, the researcher weaves the findings into an understandable or cohesive story that makes sense to the client, that the client can experience either vicariously or mentally, and that the client will retain and use. Obviously, storytelling relies heavily on sense-making, and the creation of these stories requires time and effort. Insights professionals strive for storytelling because it delivers the greatest impact.

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14-16. What elements of strong fictional works do insights professionals seek to incorporate in their storytelling?

There is a host of advice on storytelling in marketing research, and much of it advocates the use of characteristics of stories in fictional literature. In particular, strong stories have: Context—the setting of the story Actor—someone who is the focus of the story Struggle—something that must be overcome or endured Process—steps, experiences, or trials Solution—actual or anticipated success or completion of the struggle While these are useful building blocks of works of fiction, the insights professional does not write a novel, and the story must be told in a matter of minutes. So, insights storytelling uses strong verbs, vivid imagery, powerful visuals, short anecdotes, lively analogies, wellknown prototypes, and shared concepts to effect immediate communication. Also, the solution is suggested actions that the client will take into consideration rather than the story climax found in a novel.

14-17. Describe guidelines to be followed in the preparation of an oral presentation of a marketing research project.

Some general guidelines that should be followed to ensure that effective communication results from an oral presentation include: 1. Know the audience, meaning that the audience and any special circumstances should be identified.

2. Anticipate expectations, meaning knowing if the presentation is formal or informal, is the client comfortable with statistical concepts, how much detail is correct for the audience, how easily can the audience absorb graphical presentations, and so on.

3. Outline the presentation’s key parts, main points, and important “takeaways.” Organize the outline in a coherent flow and identify what points should be emphasized.

4. Ensure that the presentation will be delivered by someone with excellent oral communication skills, and who has prepared and rehearsed the presentation so it will be smooth, on schedule, and impactful.

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5. Allow for contingencies such as late arrivals, presentation room or viewing hiccups, hardware glitches, interruptions, overzealous clients, delays, or other surprises.

14-18. Why is video communication a useful tool for the presentation of a marketing research project?

Video footage that is gathered through observation or ethnographic methods can be used to illustrate key takeaways from research studies. For example, when Pittsburgh advertising agency MARC USA presented research for repositioning a cable television network, the agency illustrated its findings by incorporating video clips of opinions from the target audience.

14-19. Describe various ways a marketing research project may be disseminated through the client’s organization.

Dissemination of research insights within the client’s company occurs in various ways including:  Full report: as property of the client company, the full marketing research report is stored for study and future reference. Most companies use digital archives of such documents whose availabilities depend on the internal accounting and document archiving policies of the company.  Abstract/executive summary: the abstract of the marketing research project may be the only document made available to the client organization’s managers.  Infographics: infographics are visual descriptions or stories that communicate key points. The client company may create the infographics, or it may commission the marketing research company to create an infographic that summarizes the marketing research project.  Dashboards: many companies have internal information management systems that put all types of data at the fingertips of their managers. These dashboards provide digital interfaces that allow users to quickly and easily see information that is presented in a simplified manner.  Video: video or digital recording may be made available in internal dissemination to the client.  Immersion techniques: methods that immerse audiences in the world of the people they are trying to understand to help them develop more authentic connections with their consumers.

14-20. Go online and search for examples of marketing research reports. Select two or three reports that seem interesting and examine them. Answer each of the following questions. a. What commonalities do they have in terms of the sections that the authors have created? b. What types of issues were addressed in the introduction section and the method sections?

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c. How did the authors organize all of the information reported in the results section? d. What data visualization options were used? e. How are recommendations different than conclusions? f. Do these reports adhere to the elements of a marketing research report described in this chapter? If not, how do they differ, and why do you think there are differences?

This is an exercise intended for students to experience actual reports and to see the various elements of a report described in the chapter. An alternative approach is for instructors to have students inspect copies of research reports prepared either by previous class participants or actual consulting reports.

14-21. In each of the following situations, describe a framework, concept, or theory that offers insight as to why it occurs. a. Some people purchase very expensive luxury automobiles Answers will vary. b. Schoolchildren begrudgingly accept wearing school uniforms Answers will vary. c. Millions of dollars are lost on sports gambling during every playoff Answers will vary. d. Popular “wearables” are those that monitor one’s pulse, blood pressure, and respiration Answers will vary. e. Most companies provide for and encourage video conferencing in place of face-to-face Copyright © 2026 Pearson Education, Inc.

meetings Answers will vary. f. Home security video systems are very popular with homeowners in high-crime areas Answers will vary. g. When under stress, some people overindulge in ice cream or candy Answers will vary. h. Students often procrastinate when they have to study for examinations Answers will vary.

14-22. A dental braces company is contemplating adding straightening plastic molds to its product line. The molds are worn at night in place of standard braces to straighten one’s teeth. A marketing research study finds that prospective users are strongly in favor of the molds because they are less expensive, more comfortable, easier to clean, and more aesthetically pleasing than standard braces. That they are used in private and not seen by friends, family members, or others is especially attractive to prospective users. Write a story that communicates these findings to the dental braces company managers who commissioned the research.

Student stories will vary quite a bit based on personal experience and creativity.

14-23. Water-with-gas is a European brand that sells a carbon dioxide injection station that creates carbonated water from tap water in a liter bottle. The station is very compact, fits on a countertop, and replacement CO2 canisters are $50 each. In a research study, it is found that U.S. consumers, on average, rate the design a “9,” rate the canister cost a CO2 “5,” and rate the brand name a “1” on a 10-point scale.

Prepare a visual presentation that vividly communicates these findings.

Student presentations will vary quite a bit based on personal experience and creativity.

CASE SOLUTIONS Case 14.1 Homespread Restaurant Research: Identifying and Communicating Insights Case Objective Copyright © 2026 Pearson Education, Inc.

This case requires students to identify and communicate insights for Homespread Restaurant.

Answers to Case Questions Following are several questions about the findings of the Homespread Restaurant survey.

With each one, perform the necessary analysis with SPSS, and then use sense-making to “decode” the findings into insights. Employ the tools of tablelooks, data visualization, and effect sizes in your quest for sensible insights. With the insight(s) apparent to you for each scenario, create an engaging, accurate, memorable, and actionable presentation that communicates the insight to Homespread Restaurant managers and suggests actions that can be taken to capitalize on the insight.

1. What potential new improvement (frequent diner program, online reservations, etc.) should Homespread Restaurant implement next year?

Student answers will vary.

2. What are Homespread Restaurant’s key strengths and weaknesses?

Student answers will vary.

3. What social media campaign should Homespread Restaurant launch to best reach its users represented by those who took the survey?

Student answers will vary.

4. If Homespread Restaurant wants to increase the number of customers who order desserts, what demographic and lifestyle customers should it target?

Student answers will vary.

5. With respect to overall satisfaction, what is Homespread Restaurant’s demographic and lifestyle target market?

Student answers will vary.

6. Describe the typical dining style (what is ordered such as appetizer, side, etc.) of Homespread Restaurant’s married/cohabiting customers plus what new improvement(s) appeal to them.

Student answers will vary.

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7. If Homespread Restaurant wants to increase its sales with its customers who own their homes, what traditional advertising media and what social media vehicles should be used for its promotional campaign?

Student answers will vary.

8. How are the key drivers of overall satisfaction with Homespread Restaurant similar or different for male versus female customers?

(Hint: Select the dataset by gender and do key driver analysis for each gender, then compare the findings.)

Student answers will vary.

Case 14.2 Homespread Restaurant Research: Communicating Insights Case Objective This case requires students to communicate insights for Homespread Restaurant using an infographic.

Answers to Case Questions Student answers will vary.

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