Marketing research
Q: Define market potential and sales potential. How do they differ?
A: Market potential: Upper limit for sales of a specific product category (e.g. milk). Computed by defining the category of potential users, the amount of potential users and estimate potential using rate.
Sales potential: Upper limit for sales of a specific brand (e.g. Arla). Compute as market share, category development index or brand development index.
CDI=(pct category sale in area / pct country population in area)
BDI=(pct brand sale in area / pct country population in area)
Q: Define observational research.
A: Observe consumers purchase decision. Informal (mystery shopper, casually observe a few) or formal (observe from distance through camera/mirror).
With or without physiological measurements as pupils, heartbeat, sweat etc.
Q: Define the theory of framing effects and reference point.
A: Framing effects: The context of the decision situation influence on perception of choice and thus behaviour.
Reference point: Base for comparison and thus evaluation of information. Is situation a gain or a loss? Remember agents are loss averse: Disutility from losing is larger than utility from gaining.
Q: What is the difference between primary and secondary data sources?
Secondary sources: Already-existing information. Not developed for specific problem, e.g. DST and other statistics banks
Primary sources: Not-already-available information. Developed for specific problem, e.g. consumer-satisfactory survey
Trade-off: Specificity and
Q: Describe (at least) one limitation of focus groups
A: Focus group: Group with specific characteristics discuss relevant topic. Qualitative give input for further research, not decisions.
Limitations: Small sample not representative of population, leading questions can frame answers, difficult draw general conclusions from discussion, not final decisions.
Q: Describe the three mechanisms of the moral wiggle room.
Diffusion of responsibility: Shifting some blame onto others. Sharing responsibility among group (horizontal) or delegate unethical decisions (vertical).
Exploiting uncertainty: Remain ignorant about consequences by "hiding" behind veil of uncertainty.
Seeking justification: Process information selectively. Justify unethical behavior and convince oneself behavior is ethical. Moral disengagement.
Q: Mention the three functions of marketing research
1: Scanning for opportunities and threats: Monitor market. Example feminine diet coke vs masculine coke zero
2: Risk assessment of future programs: Explore "What if"-scenarios of different strategies. Example R&G "PUR". Powder clean water. Low sales but good charity.
3: Monitor current programs. Example consumer satisfaction.
Q: What is non-response bias and response bias (social desirability bias)?. How to solve it?
Nonreponse bias: If non-responders are systematically different from responders. Occur in step 2: Sampling (technique, size and nonresponse bias). Solved simple and short surveys.
Response bias: E.g.social desirability bias if responses to make interviewer think favorably of responder, social desirability bias. Occurs in step 3: Collecting responses. Solved with anonymity
Q: Shortly define classical CSR (std economic model), not-for-profit CSR (shareholders) and strategic CSR (demand-side)
Classical CSR: Firm max profit and only engage in CSR by investing in innovation to obtain LR payoff.
Not-for-profit CSR: Shareholders pursue private social preferences through firm, private donation. Tradeoff max profit and CSR.
Strategic CSR: Accommodate demand-sided pressure from employees (donated labour), consumers (separating equilibrium) and gov (intertemporal exchange).
Q: Mention the five primary data sources
A: Focus groups, observational research, surveys, panels and experiments.
Q: Shortly describe the three types of panels: Continuos reporting panel, scanner panel and special-purpose panel
Continuos reporting panel: Report type of behaviour as it occurs.
Scanner panel: Track type of behaviour as it occurs.
Special-purpose panel: Limited-time panels to adress specific research, e.g. testers of software programs.
Q: What are the implications the self-interest paradigm? How do empirical evidence contradict these (bribery game, proposer-responder, lost wallet)?
A: The self-interest paradigm implies agents don't care about externalities, don't care about fairness of transaction and will misbehave if unmonitored.
Bribery game: Citizen apply for license or bribe public official. Relatively many didn't bribe but gave up money to avoid cheating. Agents do care about negative externalities on others.
Proposer-responder: Proposer and responder split money. Proposer didn't take all and responder didn't accept low offers in many cases. Agents do care about fairness.
Lost wallet: Lost wallet handed in public institutions was in many cases handed back to owner, despite material payoff from keeping and no monitoring. Agents do behave even if unmonitored.
Q: Mention the six steps of marketing research
1: Define problem
2: Define information needs: Primary or secondary
3: Select type of study: Explanatory, descriptive, causal
4: Collect data
5: Analyse data
6: Reporting
Q: Shortly describe the three types of experiments: Laboratory, online and field. How do they differ regards validation?
Laboratory experiments: Design decision situation. Artificial conditions. High control, high internal validity. Limited by range of implementable variations.
Online experiment: Lab experiments run remotely. Easier and quicker but less controlled conditions. Less internal validity.
Fields experiment: Natural conditions. Risk noise. Easier manipulate variables. High external validity, can be discussed.
Q: Define heuristics. Mention the four classes of heuristics.
A: Heuristics: Rules of thumb/mental short-cuts reducing time and effort in decision-making.
Bounded-rationality: Used systematically to make rational choices but while being cognitive constrained. Non-random but not perfectly rational.
Prediction heuristics (4): Influence gather and use information to predict product's attributes.
Persuasion heuristics (3): Influence process information and perceive how much attribute product has.
Compliance heuristics (6): Influence weight attached to each attribute and ranking of products.
Choice heuristics (4): Influence rules for choosing brand use available information selectively.