COM4310 Discussion question #1

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Chapter 4 The Human Side of Marketing Research: Organizational and Ethical Issues

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Learning Outcomes (1 of 2)

After studying this chapter, you should

Know when research should be conducted externally and when it should be done internally

Understand the career opportunities and career paths available within the marketing research industry

Become sensitive to the often conflicting relationship between marketing management and researchers

Understand marketing ethics and ways that researchers can face ethical dilemmas

Appreciate the rights and obligations of (a) research respondents—particularly children, (b) research clients or sponsors, (c) marketing researchers, and (d) society

LEARNING OUTCOMES

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Learning Outcomes (2 of 2)

Avoid situations involving a conflict of interest in performing marketing research

LEARNING OUTCOMES

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Who Should Do the Research?

Outside agency is an independent research firm contracted by the company that actually will benefit from the research

In-house research is research performed by employees of the company that will benefit from the research

LO01

LEARNING OUTCOMES

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Learning Objective 01

Do It Yourself or Let Your Fingers Do the Walking?

When to use an outside agency

To get a fresh perspective

To have objectivity

When special expertise is needed

When local expertise is needed

When to use in-house research

When the project needs to be done quickly

When the project needs employee collaboration

To save money

If secrecy is a major concern

LO01

LEARNING OUTCOMES

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Learning Objective 01

EXHIBIT 4.1 Advantages and Disadvantages of Outhouse Research

LO01

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Learning Objective 01

Working in the Marketing Research Field (1 of 2)

Internet of Things refers to the fact that common products like cars, appliances, etc., are connected to the Internet and provide large amounts of data for marketing research.

Marketing research jobs grow faster than most other industries.

About three-fourths of all U.S. organizations have a department responsible for marketing research

LO02

LEARNING OUTCOMES

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Learning Objective 02

Working in the Marketing Research Field (2 of 2)

Often the term “client” is used by the research department to refer to line management—the entity by whom services are being requested and performed

LO02

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Learning Objective 02

Research Suppliers and Contractors

Research suppliers are commercial providers of marketing research services

Syndicated service is a marketing research supplier that provides standardized information for many clients in return for a fee

Standardized research services are companies that develop a unique methodology for investigating a specific business specialty area

LO02

LEARNING OUTCOMES

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Learning Objective 02

Limited Research Service Companies and Custom Research

Limited-service research suppliers

Specialize in particular research activities, such as field interviewing, data warehousing, or data processing

Full-service research suppliers sometimes contract limited-service research suppliers companies for ad hoc marketing research projects

Custom research

Projects that are tailored specifically to a client’s unique needs

LO02

LEARNING OUTCOMES

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Learning Objective 02

EXHIBIT 4.2 Marketing Research Firms by Number of Employees

Rank	Organization	Headquarters	Web Site	U.S. Research Employees	Approximate Revenue ($ millions)
1	Nielsen Holdings NV	New York	nielsen.com	9,696	6,300
2	IQVIA	Danbury, CT	nielsen.com	5,261	3,300
3	Kantar	London	nielsen.com	3,300	3,900
4	Ipsos SA	Paris	ipsos.com	2,192	2,000
5	Westat Inc.	Rockville, MD	westat.com	1,922	512
6	GfK	Neuremberg	gfk.com	1,922	512
7	Information Resources Inc.	Chicago, IL	IRIworldwide.com	1,665	1,000
8	AbtSRBI	New York	abtassociates.com	1,198	147
9	NPD Group Inc.	Port Washington, NY	npd.com	1,035	340
10	ICF International Inc	Fairfax, VA	ICFI.com	1,016	224
11	Maritz	Lehi, UT	maritz.com	579	170
12	WoodMacKenzie	Lehi, UT	woodmac.com	300	443
				30,086	$18,848

LO02

LEARNING OUTCOMES

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Learning Objective 02

Marketing Research Firm Size - Small

Small Firms

Government definition is less than 100 employees

VP of marketing may be in charge of all significant marketing research

Small research firms often have fewer than five employees regularly involved in marketing research and often operate regionally

No major corporate clients

LO02

LEARNING OUTCOMES

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Learning Objective 02

Marketing Research Firm Size – Mid-sized (1 of 2)

Mid-sized firms

100 to 500 employees

Typically includes a director of marketing research

A research analyst is responsible for client contact, project design, preparation of proposals, selection of research suppliers, and supervision of data collection, analysis, and reporting activities

Research assistants (or associates) provide technical assistance

Manager of decision support systems supervises the collection and analysis of customer relationship management (CRM) data

LO02

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Learning Objective 02

Marketing Research Firm Size – Mid-sized (2 of 2)

Mid-sized firms

A forecast analyst provides technical assistance, e.g., generating a sales forecast

Personnel within a planning department may perform the marketing research function

May outsource some research functions

LO02

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Learning Objective 02

Marketing Research Firm Size – Large

Large firms

More than 500 employees

As marketing research departments grow, they tend to specialize by product or strategic business unit.

Many large organizations have managers of customer quality research who specialize in conducting surveys to measure consumers’ satisfaction with product quality

LO02

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Learning Objective 02

EXHIBIT 4.3 Example of a Large Market Research Firm’s Organizational Chart

LO02

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Learning Objective 02

The Director of Marketing Research as a Manager

A director of marketing research plans, executes, and controls the firm’s marketing research function

Issues in directing research

Skilled research professionals like conducting research better than managing people

The research management role often is not formally recognized

Outstanding research professionals often have trouble delegating responsibility

LO02

LEARNING OUTCOMES

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Learning Objective 02

Cross-Functional Teams

Composed of individuals from various functional areas such as engineering, production, finance, and marketing who share a common purpose

Benefits of cross-functional teams

Help organizations focus on a core business process, e.g., new-product development

Reduce the tendency for employees to focus single-mindedly on an isolated functional activity

Help employees increase customer value since communication about the customer and their specific desires and opinions spreads across the firm

LO02

LEARNING OUTCOMES

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Learning Objective 02

Conflict Between Marketing Management and Marketing Research (1 of 2)

Sources of conflict

Research that implies criticism

Money

Time

Sources of error when studies are rushed

Conducting research that is not needed

Addressing the wrong issue

Sampling difficulties

Inadequate data analysis

LO03

LEARNING OUTCOMES

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Learning Objective 03

Conflict Between Marketing Management and Marketing Research (2 of 2)

Intuitive decision making

Managers sometimes resist research because results may prove counter to managerial intuition or desires

Intuition is not a replacement for informed market intelligence

Future decisions based on past evidence

Managers wish to predict the future, but researchers measure only current or past events

Researchers use the past to predict the future

LO03

LEARNING OUTCOMES

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Learning Objective 03

Reducing Conflict between Management and Researchers

Ways to reduce conflict

Researchers and decision-makers working closely together

State clear role expectations

Research proposals and research job descriptions help make expectations clear

Focus practically on results

Effective communication of research findings and research designs

LO03

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Learning Objective 03

EXHIBIT 4.4 Improving Two-Way Communication to Reduce Conflict

LO03

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Learning Objective 03

Ethical Issues in Marketing Research (1 of 2)

Ethical questions are philosophical questions

Marketing ethics is the application of morals to behavior related to the exchange environment

Moral standards are the principles that reflect beliefs about what is ethical and what is unethical

Ethical dilemma is a situation in which one chooses from alternative courses of actions, each with different ethical implications

LO04

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Learning Objective 04

Ethical Issues in Marketing Research (2 of 2)

Relativism

Reflects the degree to which one rejects moral standards in favor of the acceptability of some action

Rejects absolute principles in favor of situation-based evaluations

Idealism

Reflects the degree to which one bases one’s morality on moral standards

Example: the Golden Rule

LO04

LEARNING OUTCOMES

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Learning Objective 04

General Rights and Obligations of Concerned Parties

Everyone involved in marketing research can face an ethical dilemma

The people actually performing the research—the “doers”

The research client, sponsor, or the management team requesting the research—the “users”

The research participants—the actual research respondents or subjects

Society at large

Each party has certain rights and obligations toward the other parties

LO04

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Learning Objective 04

EXHIBIT 4.5 The Rights and Obligations of Market/Marketing Research

LO04

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Learning Objective 04

Rights and Obligations of the Research Participant

Participant’s right to privacy

Informed consent means that the individual understands what the researcher wants him or her to do and agrees to be a participant in the research study

The ethical responsibilities vary depending on whether participation is active or passive

LO05

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Learning Objective 05

Active Research

The right to privacy is an important issue in marketing research

Respondents should know their right to refuse includes breaking off an interview at any time

People feel more comfortable about the consent decision when they know who is conducting the survey

Consumers cannot easily distinguish telemarketing from legitimate research

Companies using the Internet to do marketing research also face legislative changes

LO05

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Learning Objective 05

Passive Research

Generally, researchers do not view unobtrusive observation of public behavior in places such as stores, airports, sidewalks and museums as an invasion of a person’s privacy

Implicit consent – behaviors that are openly performed in public implies that one is willing to have others observe them

A guarantee of anonymity assures respondents that they cannot be identified or linked to their response in any way

LO05

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Learning Objective 05

The Obligation to Be Truthful

When someone willingly consents to participate actively, the researcher assumes he or she will provide truthful answers

Honest cooperation is the primary obligation of the research participant

The subject has the right to expect confidentiality

Confidentiality means that researchers will not share any individual’s information others

LO05

LEARNING OUTCOMES

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Learning Objective 05

Kid’s Stuff is Complicated (1 of 2)

COPPA, the Children’s Online Privacy Protection Act, defines a child as anyone under the age of 13

Anyone engaging in contact with a child through the Internet is obligated to obtain parental consent before a child can provide any personal information or identification

Policy makers consider children vulnerable because they may not be able to reasonably reach decisions that keep them safe

LO05

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Learning Objective 05

Kid’s Stuff is Complicated (2 of 2)

Doing research with children can yield extremely useful information

Doing research with children is more risky than doing research with adults

LO05

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Learning Objective 05

Deception and the Right To Be Informed

Experimental designs

Experimental manipulations often involve some degree of deception

Placebo is a false experimental effect used to create the perception of a true effect

Debriefing is a session during which research subjects are fully informed and provided with a chance to ask any questions they may have about the experiment

LO05

LEARNING OUTCOMES

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Learning Objective 05

Protection from Harm

Questions to ask to avoid unethical treatment

Has the research subject provided consent to participate in an experiment?

Is the research subject subjected to substantial physical or psychological trauma?

Can the research subject be easily returned to his or her initial state?

Human subjects review committee (Institutional Review Board)

Reviews proposed research designs to ensure that no harm can come to any research participant

LO05

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Learning Objective 05

Rights and Obligations of the Client Sponsor (User)

Issues in the client-researcher relationship

Ethical behavior between buyer and seller

An open relationship with research suppliers

An open relationship with interested parties

Advocacy research—research undertaken to support a specific claim in a legal action or represent some advocacy group

Privacy rights of research participants

LO05

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Learning Objective 05

Rights and Obligations of the Researcher (1 of 2)

Marketing research firms and marketing research departments should practice good business ethics

Professional organizations with codes of ethics for marketing researchers

American Marketing Association

The European Society for Opinion and Market Research

The Marketing Research Society

LO05

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Learning Objective 05

Rights and Obligations of the Researcher (2 of 2)

The researcher should not:

Represent a sales pitch as marketing research

Provide the name of anonymous respondents

Breach the confidentiality of the research client or research participant

Do research for multiple firms competing in the same market

Disseminate false or misleading results

Plagiarize the work of other researchers

Violate the integrity of data gathered in the field

LO05

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Learning Objective 05

The Purpose of Research is Research

Mixing sales and research

Consumers sometimes agree to participate in an interview that is purported to be pure research, but it becomes obvious that the interview is really a sales pitch in disguise

The Federal Trade Commission (FTC) has indicated that it is illegal to use any plan, scheme, or ruse that misrepresents the true status of a person seeking admission to a prospect’s home, office, or other establishment

LO05

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Learning Objective 05

Research That Isn’t Research (1 of 2)

Pseudo-research is conducted not to gather information for marketing decisions but to bolster a point of view and satisfy other needs

Push poll is telemarketing under the guise of research

Service monitoring is contacting customers about their experience with a product

There is no selling attempt

LO05

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Learning Objective 05

Research That Isn’t Research (2 of 2)

Misrepresentation of research

Honesty in presenting results

Honesty in reporting errors and limitations

Researchers should not keep any major error occurring during the course of the study a secret

The researcher should point out the key limitations in the research report and presentation

Confidentiality

The researcher must abide by any confidentiality agreement with research participants

LO05

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Learning Objective 05

EXHIBIT 4.6 How Results Can Be Misrepresented in a Graphic

LO05

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Learning Objective 05

The Role of Society at Large

Society has an obligation to be fair and enact restrictions only when the benefits are justified in light of the difficulties those restrictions create

Marketing research offers benefits for individual members of and for society at large

The potential benefits of the research should always outweigh the burdens placed on members of society

Marketing research value is diminished when any party breeches a responsibility

LO05

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Learning Objective 05

The Researcher and Conflicts of Interest

Conflict of interest occurs when one researcher works for two competing companies and helping one could be detrimental to the other

COM4310 Discussion question #1

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