netrashetty
Netra Shetty
Butler International, Inc. was an engineering services and employment agency based in Fort Lauderdale, Florida. With roots dating back to 1946, the company provided on-site and off-site engineering services to its clients, which include companies in the aerospace, communications, commercial, defense and manufacturing sectors.[1] In 2009, the company filed for Chapter 11 Bankruptcy, and Butler America, LLC agreed to acquire all of the remaining assets of Butler International for $27 million
Consumer Buying Behavior
The decision process and act of people that entails buying and using of products is called consumer buying behavior. Therefore, we need to understand why consumers make the purchases, what factors that influence them and the changing factors in our society (Consumer Buying Behavior). The following questions should be asked: What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? The marketing concept that the firm must adapt should be focused on the customer’s needs before developing the product; aligning all functions of the company to focus on those needs; realizing a profit by successfully satisfying customer needs over the long-term. In this a comprehensive marketing strategic plan is needed (The Marketing Concept).
Six Stages of the Consumer Buying Process
There are six stages of the consumer buying process. The actual purchasing of product is only one of the stages. However, all consumer decisions do not always include the six stages. First stage is problem recognition, which means the awareness of needs. It is the difference between the desired state and the actual condition of the consumer. This awareness of needs can be stimulated through product information. Next is the information search classified into two, the internal search (memory) and the external search that is if more information is needed (can be channeled through the “word of mouth”). Successful information drive will give a buyer possible alternatives. There is the need to establish criteria for evaluation, featuring what the buyer wants or does not want, the evaluation of alternatives. What the marketer’s can do is to influence by “framing” alternatives. The fourth process is the purchase decision wherein the buyer chooses buying alternative that includes product, package, store, method of purchase. The fifth one is the process of purchasing. It may differ from decision, time lapse between four and five and the product availability. The last stage of the buying process is the post-purchase evaluation, which is the outcome. This is where satisfaction or dissatisfaction is determined, whether the buyer has made the right decision (Consumer Buying Behavior). The firm should have an alternative approach to this by giving product warranties, after sales communication, etc. Cognitive dissonance can be reduced when the firm provides communication with the consumer after the purchase.
RESEARCH INSTRUMENTS
In collecting primary data, marketing researchers have a choice of two main research instruments—the questionnaire and mechanical devices. The questionnaire is by far the most common instrument. A questionnaire consists of a set of questions presented to a respondent for his or her answers. In preparing a questionnaire, the marketing researcher must decide what questions to ask, the form of the questions, the wording of the questions, and the ordering of the questions. Each question should be checked to see that it contributes to the research objectives.
Although questionnaires are the most common research instrument, mechanical instruments are also used. Two examples of mechanical instruments are people meters and supermarket scanners. These techniques are not widely used because they tend to be expensive, require unrealistic advertising exposure conditions, and are hard to interpret.
COLLECTING THE INFORMATION
The researcher must now collect the data. This phase is generally the most expensive and the most liable to error. In the case of surveys, four major problems arise. Some respondents will not be at home and will have to be replaced. Other respondents will refuse to cooperate. Still others will give biased or dishonest answers. Finally, some interviewers will occasionally be biased or dishonest.
CHARACTERISTICS OF GOOD
MARKETING RESEARCH
Following are the characteristics of good marketing research
Scientific method. Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypotheses, prediction, and testing.
Research creativity. At its best, marketing research develops innovative ways to solve a problem.
Multiple methods. Competent marketing researchers shy away from over-reliance on any one method, preferring to adapt the method to the problem rather than the other way around. They also recognize the desirability of gathering information from multiple sources to give greater confidence.
Interdependence of models and data. Competent marketing researchers recognize that the facts derive their meaning from models of the problem. These models guide the type of information sought and therefore should be made as explicit as possible.
Value and cost of information. Competent marketing researchers show concern for estimating the value of information against its cost. Value/cost evaluation helps the marketing research department determine which research projects to conduct, which research designs to use, and whether to gather more information after the initial results are in. Research costs are typically easy to quantify, while the value is harder to anticipate. The value depends on the reliability and validity of the research findings and management's willingness to accept and act on its findings. In general, the most valuable information tends to cost the most because it requires more intensive methods, but of course it is easy to spend a great deal of money on poorly conceived research.
Healthy skepticism. Competent marketing researchers will show a healthy skepticism toward assumptions made by managers about how the market works.
Ethical marketing. Most marketing research benefits both the sponsoring company and its consumers. Through marketing research, companies learn more about consumers' needs, and are able to supply more satisfying products and services. However, the misuse of marketing research can also harm or annoy consumers. There are professional ethical standards guiding the proper conduct of research.
PRESENTING THE RESEARCH PLAN
The last step in market research is the presentation of a formal plan. At this stage, the marketing researcher should summarize the plan in a written proposal to management. A written proposal is especially important when the research project will be large and complex or when an outside firm carries it out. The proposal should cover the management problems addressed and the research objectives, the information to be obtained, the sources of secondary information or methods for collecting primary data, and the way the results will help management decision making. A written research plan or proposal makes sure that the marketing manager and researchers have considered all the important aspect of the research and that they agree on why and how the research will be done.
MANAGEMENT'S USE
OF MARKETING RESEARCH
In spite of the rapid growth of marketing research, many companies still fail to use it sufficiently or correctly. Several factors can stand in the way of its greater utilization.
A narrow conception of marketing research. Many managers see marketing research as only a fact-finding operation. The marketing researcher is supposed to design a questionnaire, choose a sample conduct interviews, and report results, often without being given a careful definition of the problem or of the decision alternatives facing management. As a result, some fact finding fails to be useful. This reinforces management's idea of the limited usefulness of some marketing research.
Uneven caliber of marketing researchers. Some managers view marketing research as little better than a clerical activity and reward it as such. Poorly qualified marketing researchers are hired, and their weak training and deficient creativity lead to unimpressive results. The disappointing results reinforce management's prejudice against expecting too much from marketing research. Management continues to pay low salaries, perpetuating the basic difficulty.
Late and occasional erroneous findings by marketing research. Managers want quick results that are accurate and conclusive. But good marketing research takes time and money. If they can't perceive the difference between quality and shoddy research, managers become disappointed, and they lower their opinion of the value of marketing research. This is especially a problem in conducting marketing research in foreign countries.
Intellectual differences. Intellectual divergences between the mental styles of line managers and marketing researchers often get in the way of productive relationships. The marketing researcher's report may seem abstract, complicated, and tentative, while the line manager wants concreteness, simplicity, and certainty. Yet in the more progressive companies, marketing researchers are increasingly being included as members of the product management team, and their influence on marketing strategy in growing.
ample design
China's population is about 1.2 billion of which 350 million are in urban areas (622 cities and scores of thousands of towns). Of the cities, 32 have populations of at least 1 million, 42 between 500,000 and 1 million, and the remaining 548 less than 500,000.
Almost all marketing research has been concentrated in the 74 cities having populations of at least 500,000. These cities are classified into two types:
-- National trade centers such as Beijing, Shanghai, Guangzhou, and Chengdu. Almost all national surveys include these four cities.
-- Secondary cities such as Wuhan, Chongqing, Kunming, Fuzhou, Xiamen, Hangzhou, Jinan, Shengyang, Dalian, Xi'an, and Tianjin.
Sample sizes range from 200 to 400 per city, with a mode of 300.
Few marketing research surveys are conducted in smaller cities. Two exceptions:
1. Qualitative and small scale quantitative research in developed areas in such provinces as Guangdong, Fujian and Zhejiang, but almost never in inland areas.
2. Business-to-business projects. For example, EMR has recently completed a petroleum products project in 20 cities in Guangdong and Fujian provinces.
Almost no small towns or rural areas are included in marketing research projects. An exception is qualitative surveys occasionally conducted in suburban areas of the larger cities. These small towns and areas generally have primitive economies and are not attractive to manufacturers and service providers. Large distances between residences, low educational and literacy levels, and poor transportation are barriers.
Sample selection
Simple random sampling is not feasible because no well defined sampling frames exist for including all in the relevant population. Address lists are not readily available, and even if they were, the high rate of moving render them invalid.
The most popular sampling method is multi-stage random sampling: city area, street, neighborhood committee, household, person. For example, Guangzhou consists of eight geographic areas of which one is unsuitable because of its small, widely dispersed population and high mobility. The second level are streets within one or more areas. Every street has between 10 and 30 neighborhood committees, which comprise the third level.
Then, research organization employees are trained to survey and map the area. They walk around the perimeter of the neighborhood committee and measure its area. They start from a randomly chosen household, and following a tightly defined procedure, mark every nth household.
Later, interviewers will attempt to interview those in these marked households, choosing the individual within the household based on both random methods and quota fulfillment requirements.
For central location studies, "convenience" samples are most often used. The client usually specifies the selection criteria. Passersby are stopped, screened for eligibility and quota, and recruited. Recruiting usually involves making an appointment -- and gaining a commitment -- for the respondent to appear at a central location.
Quantitative-qualitative mix
Quantitative research accounts for about 90 percent of research revenues. The qualitative research includes both focus group and individual depth interviews. On a relative basis, advertising agencies usually favor groups, but marketers demand one-on-one interviews.
Survey media
Face-to-face interviews -- both door-to-door and central location -- constitute the most common media. Mail surveys suffer from a very low response rate, and telephone surveys have their own difficulties. Some newspapers print questionnaires and ask readers to complete and return them. Typically, response rates are very low.
Specialized services
SRG and CCTV conduct studies that focus on retailing purchase patterns and media behavior. The number of cities they cover is increasing.
No successful general household panels exist. EMR established a 300-base panel mainly on laundry products. Participants periodically received samples of these products and kept diaries of their purchases. Once or twice a month, they were interviewed. High costs and technical difficulties caused this panel to be disbanded after one year. Another attempt to establish and maintain a panel also failed.
Time and costs
Generally, a door-to-door quantitative survey of 300-500 people in one city takes between two and three weeks, about half devoted to field work and half to coding and analysis. Including more cities increases the time by three to five days. Qualitative studies can usually be conducted within own week. The most time-consuming activities are screening and recruiting.
As to costs, consider a typical quantitative 30-minute door-to-door survey of over 500 participants. Foreign and joint ventures will charge between Y200-300 RMB (or approximately US$24-$36) per completed interview. The local companies' rates are between Y80-150 RMB (or approximately US$9.80-$18) per completed interview. Costs per interview are higher for smaller samples.
The charge for a focus group interview ranges between Y3000-6000 RMB (US$360-$720) which includes recruiting, meeting room and interpreter, but not a moderator.
Analytic methods
Quanvert, a statistical program from Quantime Corporation, is probably the most commonly used software, but most clients are not interested in complex analyses, including multivariate analyses, perceptual mapping, and the like.
Consumer Buying Behavior
The decision process and act of people that entails buying and using of products is called consumer buying behavior. Therefore, we need to understand why consumers make the purchases, what factors that influence them and the changing factors in our society (Consumer Buying Behavior). The following questions should be asked: What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? The marketing concept that the firm must adapt should be focused on the customer’s needs before developing the product; aligning all functions of the company to focus on those needs; realizing a profit by successfully satisfying customer needs over the long-term. In this a comprehensive marketing strategic plan is needed (The Marketing Concept).
Six Stages of the Consumer Buying Process
There are six stages of the consumer buying process. The actual purchasing of product is only one of the stages. However, all consumer decisions do not always include the six stages. First stage is problem recognition, which means the awareness of needs. It is the difference between the desired state and the actual condition of the consumer. This awareness of needs can be stimulated through product information. Next is the information search classified into two, the internal search (memory) and the external search that is if more information is needed (can be channeled through the “word of mouth”). Successful information drive will give a buyer possible alternatives. There is the need to establish criteria for evaluation, featuring what the buyer wants or does not want, the evaluation of alternatives. What the marketer’s can do is to influence by “framing” alternatives. The fourth process is the purchase decision wherein the buyer chooses buying alternative that includes product, package, store, method of purchase. The fifth one is the process of purchasing. It may differ from decision, time lapse between four and five and the product availability. The last stage of the buying process is the post-purchase evaluation, which is the outcome. This is where satisfaction or dissatisfaction is determined, whether the buyer has made the right decision (Consumer Buying Behavior). The firm should have an alternative approach to this by giving product warranties, after sales communication, etc. Cognitive dissonance can be reduced when the firm provides communication with the consumer after the purchase.
RESEARCH INSTRUMENTS
In collecting primary data, marketing researchers have a choice of two main research instruments—the questionnaire and mechanical devices. The questionnaire is by far the most common instrument. A questionnaire consists of a set of questions presented to a respondent for his or her answers. In preparing a questionnaire, the marketing researcher must decide what questions to ask, the form of the questions, the wording of the questions, and the ordering of the questions. Each question should be checked to see that it contributes to the research objectives.
Although questionnaires are the most common research instrument, mechanical instruments are also used. Two examples of mechanical instruments are people meters and supermarket scanners. These techniques are not widely used because they tend to be expensive, require unrealistic advertising exposure conditions, and are hard to interpret.
COLLECTING THE INFORMATION
The researcher must now collect the data. This phase is generally the most expensive and the most liable to error. In the case of surveys, four major problems arise. Some respondents will not be at home and will have to be replaced. Other respondents will refuse to cooperate. Still others will give biased or dishonest answers. Finally, some interviewers will occasionally be biased or dishonest.
CHARACTERISTICS OF GOOD
MARKETING RESEARCH
Following are the characteristics of good marketing research
Scientific method. Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypotheses, prediction, and testing.
Research creativity. At its best, marketing research develops innovative ways to solve a problem.
Multiple methods. Competent marketing researchers shy away from over-reliance on any one method, preferring to adapt the method to the problem rather than the other way around. They also recognize the desirability of gathering information from multiple sources to give greater confidence.
Interdependence of models and data. Competent marketing researchers recognize that the facts derive their meaning from models of the problem. These models guide the type of information sought and therefore should be made as explicit as possible.
Value and cost of information. Competent marketing researchers show concern for estimating the value of information against its cost. Value/cost evaluation helps the marketing research department determine which research projects to conduct, which research designs to use, and whether to gather more information after the initial results are in. Research costs are typically easy to quantify, while the value is harder to anticipate. The value depends on the reliability and validity of the research findings and management's willingness to accept and act on its findings. In general, the most valuable information tends to cost the most because it requires more intensive methods, but of course it is easy to spend a great deal of money on poorly conceived research.
Healthy skepticism. Competent marketing researchers will show a healthy skepticism toward assumptions made by managers about how the market works.
Ethical marketing. Most marketing research benefits both the sponsoring company and its consumers. Through marketing research, companies learn more about consumers' needs, and are able to supply more satisfying products and services. However, the misuse of marketing research can also harm or annoy consumers. There are professional ethical standards guiding the proper conduct of research.
PRESENTING THE RESEARCH PLAN
The last step in market research is the presentation of a formal plan. At this stage, the marketing researcher should summarize the plan in a written proposal to management. A written proposal is especially important when the research project will be large and complex or when an outside firm carries it out. The proposal should cover the management problems addressed and the research objectives, the information to be obtained, the sources of secondary information or methods for collecting primary data, and the way the results will help management decision making. A written research plan or proposal makes sure that the marketing manager and researchers have considered all the important aspect of the research and that they agree on why and how the research will be done.
MANAGEMENT'S USE
OF MARKETING RESEARCH
In spite of the rapid growth of marketing research, many companies still fail to use it sufficiently or correctly. Several factors can stand in the way of its greater utilization.
A narrow conception of marketing research. Many managers see marketing research as only a fact-finding operation. The marketing researcher is supposed to design a questionnaire, choose a sample conduct interviews, and report results, often without being given a careful definition of the problem or of the decision alternatives facing management. As a result, some fact finding fails to be useful. This reinforces management's idea of the limited usefulness of some marketing research.
Uneven caliber of marketing researchers. Some managers view marketing research as little better than a clerical activity and reward it as such. Poorly qualified marketing researchers are hired, and their weak training and deficient creativity lead to unimpressive results. The disappointing results reinforce management's prejudice against expecting too much from marketing research. Management continues to pay low salaries, perpetuating the basic difficulty.
Late and occasional erroneous findings by marketing research. Managers want quick results that are accurate and conclusive. But good marketing research takes time and money. If they can't perceive the difference between quality and shoddy research, managers become disappointed, and they lower their opinion of the value of marketing research. This is especially a problem in conducting marketing research in foreign countries.
Intellectual differences. Intellectual divergences between the mental styles of line managers and marketing researchers often get in the way of productive relationships. The marketing researcher's report may seem abstract, complicated, and tentative, while the line manager wants concreteness, simplicity, and certainty. Yet in the more progressive companies, marketing researchers are increasingly being included as members of the product management team, and their influence on marketing strategy in growing.
ample design
China's population is about 1.2 billion of which 350 million are in urban areas (622 cities and scores of thousands of towns). Of the cities, 32 have populations of at least 1 million, 42 between 500,000 and 1 million, and the remaining 548 less than 500,000.
Almost all marketing research has been concentrated in the 74 cities having populations of at least 500,000. These cities are classified into two types:
-- National trade centers such as Beijing, Shanghai, Guangzhou, and Chengdu. Almost all national surveys include these four cities.
-- Secondary cities such as Wuhan, Chongqing, Kunming, Fuzhou, Xiamen, Hangzhou, Jinan, Shengyang, Dalian, Xi'an, and Tianjin.
Sample sizes range from 200 to 400 per city, with a mode of 300.
Few marketing research surveys are conducted in smaller cities. Two exceptions:
1. Qualitative and small scale quantitative research in developed areas in such provinces as Guangdong, Fujian and Zhejiang, but almost never in inland areas.
2. Business-to-business projects. For example, EMR has recently completed a petroleum products project in 20 cities in Guangdong and Fujian provinces.
Almost no small towns or rural areas are included in marketing research projects. An exception is qualitative surveys occasionally conducted in suburban areas of the larger cities. These small towns and areas generally have primitive economies and are not attractive to manufacturers and service providers. Large distances between residences, low educational and literacy levels, and poor transportation are barriers.
Sample selection
Simple random sampling is not feasible because no well defined sampling frames exist for including all in the relevant population. Address lists are not readily available, and even if they were, the high rate of moving render them invalid.
The most popular sampling method is multi-stage random sampling: city area, street, neighborhood committee, household, person. For example, Guangzhou consists of eight geographic areas of which one is unsuitable because of its small, widely dispersed population and high mobility. The second level are streets within one or more areas. Every street has between 10 and 30 neighborhood committees, which comprise the third level.
Then, research organization employees are trained to survey and map the area. They walk around the perimeter of the neighborhood committee and measure its area. They start from a randomly chosen household, and following a tightly defined procedure, mark every nth household.
Later, interviewers will attempt to interview those in these marked households, choosing the individual within the household based on both random methods and quota fulfillment requirements.
For central location studies, "convenience" samples are most often used. The client usually specifies the selection criteria. Passersby are stopped, screened for eligibility and quota, and recruited. Recruiting usually involves making an appointment -- and gaining a commitment -- for the respondent to appear at a central location.
Quantitative-qualitative mix
Quantitative research accounts for about 90 percent of research revenues. The qualitative research includes both focus group and individual depth interviews. On a relative basis, advertising agencies usually favor groups, but marketers demand one-on-one interviews.
Survey media
Face-to-face interviews -- both door-to-door and central location -- constitute the most common media. Mail surveys suffer from a very low response rate, and telephone surveys have their own difficulties. Some newspapers print questionnaires and ask readers to complete and return them. Typically, response rates are very low.
Specialized services
SRG and CCTV conduct studies that focus on retailing purchase patterns and media behavior. The number of cities they cover is increasing.
No successful general household panels exist. EMR established a 300-base panel mainly on laundry products. Participants periodically received samples of these products and kept diaries of their purchases. Once or twice a month, they were interviewed. High costs and technical difficulties caused this panel to be disbanded after one year. Another attempt to establish and maintain a panel also failed.
Time and costs
Generally, a door-to-door quantitative survey of 300-500 people in one city takes between two and three weeks, about half devoted to field work and half to coding and analysis. Including more cities increases the time by three to five days. Qualitative studies can usually be conducted within own week. The most time-consuming activities are screening and recruiting.
As to costs, consider a typical quantitative 30-minute door-to-door survey of over 500 participants. Foreign and joint ventures will charge between Y200-300 RMB (or approximately US$24-$36) per completed interview. The local companies' rates are between Y80-150 RMB (or approximately US$9.80-$18) per completed interview. Costs per interview are higher for smaller samples.
The charge for a focus group interview ranges between Y3000-6000 RMB (US$360-$720) which includes recruiting, meeting room and interpreter, but not a moderator.
Analytic methods
Quanvert, a statistical program from Quantime Corporation, is probably the most commonly used software, but most clients are not interested in complex analyses, including multivariate analyses, perceptual mapping, and the like.