Marketing Research - Tutorial 1

You can work with your group members in all tutorial assignments but you will each individually submit a sheet of paper at the end of class that reflects your work. The software to be used is available by going to class software, then BA320. The menu that will then be on the screen has several programs which we will cover in the course of the semester.

Overview

Introduction to Marketing Research

Problem Definition

Deciding whether to do research

First half of class

You are Jim McDonald in the City Telephone Case in the Exercise book, Chapter 3. For this case, determine the courses of action, states of nature, probabilities, and pay-offs. All this information is available from the case.

Then go to class software and BA320 in your terminals and choose "Bayesian Analysis" from the menu.

Using this program, feed in the information (for number of results, type in 4). Use the probability estimates made by Don.

Determine the expected values for each action, the expected value under certainty, and the expected value of perfect information. Write down these results on a sheet of paper (individually).

Then, feed in the information for each research project and decide whether to use that research or not. Write down the expected value of imperfect research, your decision whether to do that research in each case, and the reason for your decision (individually).

Repeat the exercise using estimates provided by Wally.

(Some points to ponder about this case that involve application of class discussion. Compare this case to Cases 1.1, to 1.4 in the text. If you were Jim McDonald, what are some things you can do to determine the problem ? What are some research problems in this situation ? How does each research problem translate into research objectives ? Information needs ?)

Learning points

Defining the research problem - Interact with the decision maker; Understanding the problem, not symptoms

Deciding when to do research

Finding value of information & odds of improving decision by collecting more information through marketing research

Using decision theory - The payoff table - alternatives; states of nature; payoffs

Expected monetary value/utility value etc.

Prior analysis - Evaluating alternatives without further research

Expected monetary value of perfect info. - evaluation of alternatives with certain information about states of nature (i.e., perfect mktg. research)

Preposterior analysis - Evaluating alternatives & decision to do research based on possible findings of research

Benefits: Systematizing decision process & forcing yourself to put down information

Second half of class

View a video tape while noting down the various types of marketing research discussed or shown (individually) - 30 minutes

Discussion - 10 minutes

Learning points

Marketing research - Involves all elements of marketing; Has several steps; Different types of research designs - quantitative, qualitative; Different studies - focus groups, magazine tests, simulated shopping; Just one ingredient to decision making; Is not perfect

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