Principles Of Marketing Section 91 Fall Semester 2020 Cochap

Principles Of Marketing Section 91 Fall Semester 2020 Cochapter 9criti

Critique the following methodologies, and suggest more appropriate alternatives: a. A supermarket was interested in determining its image. It dropped a short questionnaire into the grocery bag of each customer before putting in the groceries. b. To assess the extent of its trade area, a shopping mall stationed interviewers in the parking lot every Monday and Friday evening. Interviewers walked up to persons after they had parked their cars and asked them for their ZIP codes. c. To assess the popularity of a new movie, a major studio invited people to call a 900 number and vote yes (they would see it again) or no (they would not see it again). Each caller was billed a two-dollar charge.

Paper For Above instruction

Introduction

Effective market research methodologies are crucial for businesses to gather accurate information and make informed decisions. The described approaches in the given scenarios exhibit significant methodological flaws that threaten the validity and reliability of the data collected. This paper critically examines each methodology, highlights its shortcomings, and proposes more appropriate, scientifically sound alternatives to achieve the marketing objectives effectively.

Critique of Methodologies

Part a: Determining Supermarket Image through Questionnaires in Grocery Bags

The supermarket's approach involves inserting a brief questionnaire into customers' grocery bags to assess its image directly. While this method aims to gather immediate and spontaneous customer feedback, it presents several issues. First, the response rate is questionable, as customers might overlook or forget to complete the questionnaire amidst their shopping experience and checkout process. Second, there is a risk of self-selection bias; only customers motivated to respond will participate, skewing the results towards more satisfied or dissatisfied customers, depending on their motivation. Furthermore, customers might not feel comfortable providing honest feedback in such a setting, especially if they fear that their responses could influence their future service or if anonymity isn't assured.

Additionally, this in-store data collection method ignores the broader perception of the supermarket's image that may be influenced by external factors such as advertising, community reputation, or word-of-mouth. Therefore, the data may not accurately represent the overall brand image.

Part b: Assessing Trade Area via Parking Lot ZIP Code Collection

The methodology involves interviewers asking customers in the parking lot for their ZIP codes during specific evenings to delineate the shopping mall's trade area. However, this approach has limitations. It captures only a snapshot of visitors during limited times, which may not be representative of the overall customer base. It neglects the diversity of shopping patterns and times when customers visit the mall. Also, the use of interviewers stopping customers after parking can lead to potential bias; not all customers may be approachable or willing to share their ZIP code, especially if they are in a hurry, which could result in non-response bias.

This method also overlooks demographic and psychographic information crucial for comprehensive trade area analysis. ZIP code data alone cannot provide insights into customers' socioeconomic status, shopping motivations, or frequency of visits, which are vital for strategic planning.

Part c: Movie Popularity via Paid Phone Voting

The approach involves inviting people to call a toll number to vote on the movie's popularity, with a fee charged per call. While seemingly simple, this methodology suffers from significant biases. It is a voluntary, self-selected sample, likely skewed toward more motivated or engaged viewers, and may disproportionately attract certain demographic groups with more access to telephone or the willingness to pay.

The cost structure may discourage a representative sample, as some potential respondents might abstain due to the charge, thus skewing results. Moreover, this method excludes individuals without access to telephones or those unwilling to pay, introducing coverage bias. The data collected may not accurately reflect the broader audience's opinions, thus limiting its reliability as a measure of popularity.

Alternative Approaches

Part a: Improving Supermarket Image Assessment

A more reliable method involves conducting structured surveys via multiple channels, including post-visit emails, online questionnaires, or in-person interviews at the checkout counters. These approaches ensure higher response rates and allow for anonymity, encouraging honest feedback. Implementing sentiment analysis on customer reviews and social media mentions can also provide comprehensive insights into the supermarket's image, as they reflect unsolicited customer opinions across various platforms.

Part b: Better Trade Area Evaluation

To accurately assess the trade area, a combination of data sources should be used. Conducting surveys at varying times and days provides a more comprehensive view of customer origins. Incorporating data from loyalty programs, credit card transactions, and mobile location data can offer detailed spatial and demographic insights. Geographic Information System (GIS) technology enables precise mapping and analysis of customer distribution, enhancing strategic decision-making regarding store placement and marketing efforts.

Part c: More Reliable Movie Popularity Measurement

Instead of toll-based voting, utilizing exit surveys at theaters or online surveys accessible to a broad audience offers a more representative measure of a movie’s popularity. Incorporating social media analytics and online review analysis also helps gauge viewer sentiment and preferences. Additionally, box office sales data and streaming statistics provide objective measures of a film's performance, offering a comprehensive understanding beyond self-selected voting methods.

Conclusion

In sum, the original methods described exhibit significant biases and limitations that compromise the data's validity. Employing multiple, scientifically validated research techniques, leveraging technology, and ensuring inclusivity can substantially improve the accuracy of market insights. Modern data collection methods should emphasize respondent convenience, representativeness, and anonymity to obtain actionable, reliable information for strategic marketing decisions.

References

  • Burns, A. C., & Bush, R. F. (2014). Marketing Research (7th ed.). Pearson Education.
  • Malhotra, N. K., & Birks, D. F. (2017). Marketing Research: An Applied Approach (5th ed.). Pearson.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Churchill, G. A., & Iacobucci, D. (2010). Marketing Research: Methodological Foundations (10th ed.). Cengage Learning.
  • Hair, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J. (2015). Essentials of Marketing Research. McGraw-Hill Education.
  • Ramanathan, S., & Rangarajan, D. (2006). An analysis of retail image and customer satisfaction. Journal of Retailing and Consumer Services, 13(1), 261-270.
  • La Rocca, A., & Snehota, I. (2012). Customer relationship management in retail: A review and research agenda. Journal of Business & Industrial Marketing, 27(6), 444-454.
  • Hoffman, D. L., & Novak, T. P. (2018). The hype cycle for social media metrics. Harvard Business Review, 96(4), 44-52.
  • Statista. (2023). Movie box office revenue in the United States. https://www.statista.com/
  • Google Trends. (2023). Online interest in films. https://trends.google.com/

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