Marketing Research Issues - Essay Example

? Marketing research Question Qualitative research Qualitative research methods aim at acquiring a deep understanding of an event or organization. Rather than aiming at a shallow explanation of a large sample of a population, qualitative research aims at providing an explicit interpretation of the order, structure, and broad concepts present among participants (Ernst, 2003, p.156). This research method does not alter variables or introduce variations neither does it impose the operational definitions of the research variables on the participants. Rather this research method it lets the meaning of the concepts develop from the participants. This research method is flexible can easily adapt to the research settings (Newman, 1998, p.56). The aim of qualitative research is to get a clear understanding on how the participant’s develop an understanding of their surroundings, and how this understanding affects the participant’s behavior. The main method of collecting data in qualitative research is the use of observations (Goertz and Mahoney 2012, 78). Observation implies the collection and recording of the behaviors of the participants in their environment. This approach is useful in the generation of in-depth explanation of events or organizations; it is also practical in obtaining information that is not accessible and conducting research where other research methods are insufficient. The benefit of employing observation is that it reduces distortion between what is observed and the observer and can be produced by instruments such as questionnaires (Gray, 2007, p.126). The main features of qualitative research include the fact that they focus on natural settings and have a primary interest in real life situations. This method seeks to find out the meanings participants attach to behavior, their interpretations, and their perspectives on situations. Qualitative research also looks into the process involved and seeks to understand how things happen and how they develop. Additionally qualitative research follows an inductive analysis and seeks to generate a theory on an issue from the data (Martin, 2012, p.16). The advantages associated with using this method include the production of more detailed and comprehensive information. This method also seeks an extensive understanding of the situation by the use of subjective information and employs the observations of the participants in describing the situation (Singh, 2007, p.84). However, the disadvantages of using this method include complications in establishing reliability and validity of the methods and data due to the subjectivity of inquiry. Researcher induced bias is also another challenge to the approach as it is difficult to either detect or prevent them. Furthermore, the scope of this process is restricted by the detailed and comprehensive approaches to data collection Punch 2005, 211. Quantitative research This research technique follows an objective, formal and systematic process in obtaining quantifiable information about a situation. The presentation of data on this technique uses a numerical form and employs statistics in analysis (MacDaniel,1998, p. 45). Quantitative research aims at providing descriptions and testing relationships. This technique also examines the cause and the effect of a relationship. The aim of the quantitative research aim is to elaborate how the independent variables relate to the dependent variables in a given situation. These research designs are either descriptive or experimental where the subjects are either measured once or before and after treatment. A descriptive approach establishes the associations between variables whereas an experimental approach establishes causality (Martin 2012, 16). Quantitative research methods take two approaches, which are experiments and surveys. In this, context experiments comprise real experiments with the unselective assignment of participants or subjects to research conditions and quasi experiments, which use designs that are nonrandomized (Vogt 2007, 120.) On the other hand, surveys include longitudinal and cross-sectional studies by the use of structured interviews or questionnaires in collecting data with the aim of simplifying from a sample to a population. Quantitative research aims at measuring relationships between variables and is concerned with statistics, numbers, and the relationships between things. Quantitative research shows the relationship between these variables by using effect statistics, which include relative frequencies, differences between means and correlations (Maxim, 1999, 54). In conducting quantitative research, scientific methods are used, and these methods require the development of theories, hypotheses, and models for the expected findings of the research. The development of methods and instruments for collecting data and the actual collection of data are also necessary in this approach. Using experimental controls and the manipulation of variables is also a characteristic of quantitative research methods (Seale, 2004, p. 178). Before evaluation of data, it is also necessary to model and analyze the data. The main methods of data collection in this approach are the use of surveys and questionnaires with closed-ended questions. It is also possible to use secondary data in collecting data (Silverman, 2004, p.143). The advantages of using quantitative research include production of reliable and quantifiable data that are commonly applicable to some larger population. This approach also allows the proving or disapproving of hypotheses (Mahoney, 2006, p.235). Nevertheless, this approach has its shortcomings, which include decontextualizing human behavior in a manner that it alienates the event from its real set up and overlooks the consequences of variables, which are not captured in the model. Quantitative research also lacks an in-depth and rich data that are existent with qualitative research. It is also impossible to have the details of all the participants in the study (Lapan & Riemer, 2011, p.165). When to use qualitative research Given that, qualitative research employs an in-depth explorative approach to what people think, what they feel or do and tries to understand why it is imperative that this approach does not provide statistical robust findings and as such appropriate for providing an understanding into phenomena (Watzlawik and Aristi 2007, 46). This method looks into the behavior of individuals and factors affecting their behavior. Qualitative research does not focus on the size but rather focuses on understanding the viewpoints impressions and feelings of the participants. In this regard, therefore, qualitative research is appropriate in trying to understand the behavior of individuals. This approach often provokes the reason an individual behaves in a manner they are behaving. This approach is also beneficial in segmentation or grouping individuals according to how they behave. The method tries to determine what is necessary for an individual and why such an aspect is crucial to the individual (Stake, 2010, p. 200). This process provides a scheme in which the key issues in the research are identified and assists in the formulation of research questions by establishing what is necessary for such an individual. Qualitative research also aims to ascertain the full range of reactions or opinions that exist in the population. This approach helps in the identification of issues and tries to establish why these issues are weighty and as such identify the range of responses that exist to an issue (McCall 2008, 89). Qualitative research also assists in the development and refining of new ideas as it reveals areas of agreement, both positive and negative, as well as shows the patterns in these responses. This approach also identifies ideas that create strong emotional responses. This approach is, therefore, outstanding for determining prevalent trends, generating ideas, gaining an understanding of the fundamental incentives that shape individuals and providing understanding into problems. Qualitative research works well in uncovering issues, follows a more exploratory and probing approach and can be a useful antecedent to quantitative research (Monsen & Horn, 2008, 26). An example of using qualitative research includes providing customer interviews to determine why customers do not purchase items from a store and making observations on the shopping habits of customers. Once this is done, information is recorded, and ideas are generated as to the shopping habits of these customers (Dawson 2002, 55). In conclusion, the research provides the reason why these customers avoid purchasing from a store. When to use quantitative research Conversely, the quantitative research entails the use of numbers and emphasizes on larger numbers, therefore, more appropriate in statistically measuring behavior, attitude, and performance. Quantitative research focuses on the overall issue and moves toward precise issues (Weathington, Cunningham, and Pittenger 2010, 21). It assumes a deductive approach, deliberates on the possible cause of an issue, and tries to verify its outcome. In essence, this approach aims at the cause and effect of an issue. Thus, the principle aim in conducting quantitative research is to study how many individuals in a population have certain characteristics or acknowledge an idea. This approach is geared towards producing precise and consistent measurements that allow statistical analysis. Therefore, quantitative research is suitable for determining both attitudes and behavior. This approach can help determine the number of individuals who use a service or product or their interest in the product or service. This approach is also beneficial in sizing a market and estimating the potential or the volume of a project or venture. Additionally this method helps to measure the importance and size of market segments (Silverman, 2010, p.17). Furthermore, quantitative research is also applicable to the profiling individuals based on shared characteristics. With the use of advanced statistical techniques, for instance cluster analysis, correlation, factor analysis or regression, this research method can be used to produce models that provide predictions on whether or not individuals have an opinion or would act in a certain manner by using observable characteristics. This method is, therefore, applicable to the determination of the number of individuals who support a concept and how strongly they support such a concept and make changes according to these findings (Patton, 2005, p.389). An example of using quantitative research is the determination of the existence of markets for goods and products the awareness of such a product and the number of individuals interested in the product. Quantitative research also establishes the individuals who use a product their buying habits and how their needs change (Merriam 2009, 280). References Dawson, C. (2002). Practical Research Methods: A User-friendly Guide to Mastering Research Techniques and Projects. How To Books Ltd. Ernst, A (2003). Comparison of Qualitative and Quantitative Research. GRIN Verlag. Goertz, G., & Mahoney, J. (2012). A Tale of Two Cultures: Qualitative and Quantitative Research in the Social Sciences.Princeton University Press. Gray, P. S. (2007). The Research Imagination: An Introduction to Qualitative and Quantitative Methods, Cambridge University Press. Lapan, S. D., & Quartaroli, M. T. & Riemer F. J. (2011). Qualitative Research: An Introduction to Methods and Designs. John Wiley & Sons. MacDaniel, C. D. (1998). Marketing research essentials. Taylor & Francis, Mahoney, J. (2006). A Tale of Two Cultures: Contrasting Quantitative and Qualitative Research. Oxford Journals Volume 14, Issue 3 227-249. Martin W. E., Bridgmon K. D. (2012). Quantitative and Statistical Research Methods: From Hypothesis to Results. John Wiley & Sons. Maxim P.S. (1999). Quantitative research methods in the social sciences. Oxford University Press, Incorporated. McCall, K. M. (2008). Utilizing Qualitative and Quantitative Research Methods to Understand Women's Sexual Self-views. ProQuest. Merriam, S. B. (2009). Qualitative Research: A Guide to Design and Implementation. John Wiley & Sons. Monsen, E. R., & Horn, L. V. (2008). Research: Successful Approaches. American Dietetic Association. Newman Isadore. 1998. Qualitative-quantitative Research Methodology: Exploring the Interactive Continuum. SIU Press. Patton, M. Q. 2005. Qualitative Research. Encyclopedia of Statistics in Behavioral Science. John Wiley & Sons, Ltd. Punch, K. F. (2005). Introduction to Social Research: Quantitative and Qualitative Approaches. SAGE. Seale, C. (2004). Qualitative Research Practice. SAGE. Silverman, D. (2004). Qualitative Research: Theory, Method and Practice. SAGE,. Silverman, D. (2010). Qualitative Research. SAGE. Singh, K (2007). Quantitative Social Research Methods. SAGE. Stake, R. E. (2010). Qualitative Research: Studying How Things Work. Guilford Press. Vogt, W. P. (2007). Quantitative research methods for professionals. Pearson Education, Limited. Watzlawik, M., & Aristi, B. (2007). Capturing Identity: Quantitative and Qualitative Methods. University Press of America. Weathington, B. L., Cunningham C. J. L. & Pittenger D. J. (2010). Research Methods for the Behavioral and Social Sciences. John Wiley & Sons. Question 2 Customer loyalty Loyalty implies the relationship between a consumer’s attitudinal inclination towards a product and the repeat support of that product. Customer loyalty results from customer satisfaction due to the quality of products and services and is the driving force for profitability. The concept of customer loyalty revolves around the idea that the acquirement of new consumers is more costly compared to retaining an existing customer. Customer loyalty is also associated overriding price barriers and not affected by price changes (Dick & Kunal, 1994, 108). Loyal customers also provide advertisement for the company through the provision of free word of mouth referrals and advertisement. Customer loyalty also cushions the firm and allows it to get back in the event of a service or product failure. Acquiring knowledge on customer loyalty also assists in improving negotiations with customers and enhancing the effectiveness of the marketing strategies of a firm. Since customer loyalty is correlated positively with employee loyalty, a firm can use employee loyalty as a reflection of its employee loyalty (Basak & Bob 2011, p.128). Customer loyalty is also associated with frequent and similar orders for customers, which results in reduced costs in service. Consumer loyalty significantly reduces the cost and effort necessary for the firm as loyal consumers are likely to purchase even without marketing. Types of loyalty in marketing Contractual loyalty This type of loyalty arises when a customer purchases from a business using a formal contract. Where a client is bound to the firm for a certain period owing to a contractual arrangement and legal reasons then a contractual reason for loyalty subsists. This type of loyalty is often common in business-to-business transactions (Wong & Sohal, 2003, 495). This type of loyalty also applies to consumer situations that involve subscriptions such as telephone, newspapers, broadband services, cable, and magazine subscriptions. The profitability of this kind of contract stems from the contracts net present value (Xiang, 2010, 327). However, this loyalty scheme becomes unprofitable when there are negotiations on contracts and in circumstances where competitors employ aggressive marketing techniques to lure customers from the business. Contractual loyalty on can prompt customer dissatisfaction, as the customers may feel confined by the contractual arrangement (Rosalind & O'Neill, 2010, 36). Transactional loyalty Transactional loyalty results from repeat purchasing by a customer without contractual obligations. This type of loyalty results from elements such as convenience, value perception, and price. Where the consumer is in the marketplace for a product and a firm has such a product the customer is at liberty to switch where they find a better deal. Transactional loyalty is easy to manipulate with the use of promotions and reward programs (Robert 2010, 70). It is also significant to note that this type of loyalty can be attained exclusively through the customer's perception of the cost associated with moving from the firm. An instance of this is a case where consumers identify difficulty with switching between banks for marginal value propositions (Han & Chunxiao, 2008, 40). Functional loyalty Functional loyalty arises where the customer perceives every aspect of the product as superior and, therefore, preferable. This type of loyalty is based on the functionality of the product, and the customer prefers this functionality. When a telecommunication company provides a better network coverage near the home of a consumer, then the consumer will be functionally loyal to that company (DeWitt & Marshall 2008, 272). Differentiation often stems from functional loyalty. This loyalty can also be attained through the provision of as a product that is physically and substantially different and yet functional to customers who prioritize the advantages (Mattila, 2004, 146). Emotional loyalty Emotional loyalty is a function of the customer’s ego, sensibilities, values, and other intangibles. A customer grows interest in a product or a service founded on their appeal. The brand of the product or the firm is a hugely crucial element in this respect as it enables the customer to identify with it. Customers do not usually seek functional benefits from such a product but rather seek nonfunctional benefits from the experience or association related to the product. The benefit of this loyalty is that It can withstand challenges associated with the product or service. Thus, the customers who are emotionally loyal to a service or a product are able to forgive errors in the products or delivery of services and maintain loyalty to the firm. Additionally emotional loyalty is often connected with price premiums in influential brands that have no apparent differences in the value, function, form, or convenience (Corstjens, 2000, 281). Measurement of loyalty The approaches to the measurement of customer loyalty can either be objective or subjective approaches. Objective approach to the measurement of customer loyalty includes metrics captured systems and involves hard figures concerning behaviors of the customer, which are valuable to the firm (Soderlund 2006, 76). The data used in such scenarios can be acquired from past records and additional objective sources, such as records of purchase and online behavior. Examples of data used in the objective approach include computer created records for instance the time a customer spends on a website, the number of products or services sold and whether customers renewed their subscriptions. Conversely, the subjective approach to measurement of customer loyalty involves the use of soft numbers in respect to customer loyalty (Sritharan, Tamizh and Rajakumar 2008, 52). The metrics used in the subjective approach comprise self-reports from customers’ on their feelings about the firm and their behavior toward the firm. Examples of data in the subjective approach include the rating of customers from standardized survey queries (Wirtz, Mattila and Lwin 2009, 330). Although most firms have both the subjective and the objective approaches to the measurement of customer loyalty, most of them maintain customer surveys as the most significant approach in the measurement of customer loyalty (Clark & Maher, 2007, 70). Moreover, the use of surveys continues to be the foundation of management programs relying on customer experience. Thus, firms employ customer surveys in measurement of customer loyalty rather than exclusively trusting objective metrics for customer loyalty. This is because customer surveys permit companies conveniently and swiftly measure the levels of customer loyalty. Additionally customer surveys offer in depth information regarding the experiences of the customer. This information can be easily used to change the organizational process of the firm and enable a forward perception into customer loyalty (Andreassen & Lindestad , 2013). Indicator of loyalty In order to measure customer loyalty effectively, it becomes necessary to recognize loyalty indicators. Each type of loyalty is open to its own set of variations. Concerning contractual loyalty, it is necessary to note that customers are buying in respect of the contractual agreement, and; therefore, the agreement should be measured together with its status (Gracia et al, 2011, p.463). Ways to measure this include the market share under the contract, the profitability of the contract, customer distribution and the rates of renewing the contracts. The rate of expanding the contract into new markets or new product lines as well the effectiveness of price changes on the renewal rates need also be measured (Velazquez et al, 2011, p.67). Transactional loyalty, on the other hand, involves customers who are associated with patterns that are reflective of data analytics for instance the changes in the customer’s frequency of monetary value and the velocity of change in the mobility of the customer. Behavior and trends in the cross-category purchase and the latency of purchases, as well as the frequency in the distribution of the customer’s transaction value, also act as indicators of transactional loyalty (Schmitt, Zarantonello, Lia and Brakus 2009, 58). With the functional loyalty, the key to measurement is closely monitoring the root of the functional preference. The approaches to the measurement of this loyalty include awareness of the key functional dimensions of the product, and variety of the perceptions of customers in light of the products of the competitors. The willingness of a consumer to recommend a product as well as the price elasticity of a product is indicators used in measuring loyalty (Dawes 2012). In measuring emotional loyalty, attitudinal surveys on the main features of the product play a significant role. A feature such as “liking” a product and “trusting” a brand act as a measure of customer loyalty (Lam & Bvsan, 2004, p.299). Price insensitivity, competitive brand preference, resistance to competition, general brand preference, and tolerance to problems also serve to measure customer loyalty. Benefits of measuring customer loyalty In order to effectively measure loyalty and benefit from such measurement, it is essential to understand the benefits related to measuring consumer loyalty. Without these benefits of measuring consumer, loyalty then measuring consumer loyalty becomes useless. Employing the correct measurement techniques in customer loyalty presents a firm with advantages that lack in firms who do not measure loyalty (McMullan & Gilmore, 2008, 1087). Measuring customer loyalty provides targeted solutions aimed optimizing the different types of customer loyalty. Customer loyalty measurement assists the company identify why consumers are leaving the firm or product and helps in finding a solution aimed at retention of these customers. Measurement of customer loyalty can also assist in improving customer-purchasing behaviors (Gummerus et al, 2004, p.175). Measuring consumer loyalty also helps to ascertain the key performance indicators related to each type of customer loyalty, which are drivers to consumer loyalty identification of key performance indicators ensures that the firm keeps monitoring all the essential; customer experience areas. It also focuses the firm in providing goods or services that are aimed at consumer loyalty and reflects on the consumer’s preferences. Measuring consumer loyalty also provides a more accurate return on investment for the firm especially concerning improvement initiatives. 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