ting research firms.
Marketing research gathers and analyzes data to help managers make decisions. An important function of marketing research is to help management understand the facts which are gathered. Good marketing research relies heavily on the use of the scientific method, which consists of four stages: (1) the observation of phenomena; (2) the development of hypotheses related to the phenomena; (3) the development of predictions concerning the future actions of the phenomena; and (4) the testing of the hypotheses.
Two types of data are used in the conduct of marketing research primary data and secondary data. Secondary data is that data which have already been published, while primary data are new data generated by the marketing researcher. In implementing the scientific method in the conduct of marketing research activities, the marketing researcher must conduct the following activities (in approximately the order indicated): (1) define the problem which is to be investigated; (2) develop the research design which will be employed in the investigation of the problem; the research design requires (a) adoption of the data collection methods which will be employed, (b) development of the research instrument which will be employed in the collection of the data, and (c) development of the sampling plan which will be used to determine from whom primary data will be collected; (3) conduct of the field work required to actually acquire the data; (4) application of quantitative analytical procedures to the data collected; and (5) preparation of the report on the findings of the marketing research.
Processing and Interpreting the Data
Managers use statistics in three general ways. These three ways are as follows: (1) to describe events; (2) to infer future causes, or future events; and (3) to enhance the decision making process. Descriptive statistics describe the performance or activity of one group or class of data,...