Marketing-Identify and discuss the guidelines avaiable for deciding

QUESTION

 Identify and discuss the guidelines avaiable for deciding the form and layout of a questionnaire. Discuss the advantages and đíavantages of using the flowerpot approach in developing survey instruments.Hair et al.: MarketingResearch, Second EditionFront MatterPrefaceMarketingResearchWithin a ChangingInformation Environment© The McGraw−HillCompanies, 2002Hair et al.: MarketingResearch, Second EditionFront MatterPreface© The McGraw−HillCompanies, 2002McGraw-Hill/Irwin Series in MarketingArensContemporary AdvertisingEighth EditionEtzel, Walker, & StantonMarketingTwelfth EditionArnould, Price, & ZinkhanConsumersFirst EditionFutrellABC’s of Relationship SellingSeventh EditionBearden, Ingram, & LaForgeMarketing: Principles & PerspectivesThird EditionFutrellFundamentals of SellingSeventh EditionBelch & BelchAdvertising and Promotion:An Integrated MarketingCommunications ApproachFifth EditionHair, Bush, & OrtinauMarketing ResearchSecond EditionBingham & GomesBusiness Marketing ManagementSecond EditionBoyd, Walker, Mullins, & LarréchéMarketing Management: A StrategicDecision-Making ApproachFourth EditionCateora & GrahamInternational MarketingEleventh EditionCole & MishlerConsumer and Business CreditManagementEleventh EditionPerreault & McCarthyBasic Marketing: A Global ManagerialApproachFourteenth EditionPerreault & McCarthyEssentials of Marketing:A Global Managerial ApproachEighth EditionPeter & DonnellyA Preface to Marketing ManagementNinth EditionHawkins, Best, & ConeyConsumer BehaviorEighth EditionPeter & DonnellyMarketing Management: Knowledgeand SkillsSixth EditionJohanssonGlobal MarketingThird EditionPeter & OlsonConsumer BehaviorSixth EditionJohnston & MarshallChurchill/Ford/Walker’s Sales ForceManagementSeventh EditionRayport & JaworskiIntroduction to e-CommerceFirst EditionKerin, Berkowitz, Hartley, & RudeliusMarketingSeventh EditionLehmann & WinerAnalysis for Marketing PlanningFifth EditionRayport & Jaworskie-CommerceFirst EditionRayport & JaworskiCases in e-CommerceFirst EditionRichardsonInternet MarketingFirst EditionCravens & PiercyStrategic MarketingSeventh EditionLehmann & WinerProduct ManagementThird EditionCravens, Lamb, & CrittendenStrategic Marketing Management CasesSeventh EditionLevy & WeitzRetailing ManagementFourth EditionRobertsInternet Marketing: Integrating Onlineand Offline StrategiesFirst EditionCrawford & Di BenedettoNew Products ManagementSeventh EditionMason & PerreaultThe Marketing Game!Third EditionSpiro, Stanton, & RichManagement of a Sales ForceEleventh EditionDolanMarketing Management:Text and CasesFirst EditionMcDonaldDirect Marketing: An IntegratedApproachFirst EditionStock & LambertStrategic Logistics ManagementFourth EditionDuncanIMC: Using Advertising and Promotionto Build BrandsFirst EditionMohammed, Fisher, Jaworski, & CahillInternet Marketing: BuildingAdvantage in a Networked EconomyFirst EditionDwyer & TannerBusiness MarketingSecond EditionMonroePricingThird EditionEisenmannInternet Business Models:Text and CasesFirst EditionPelton, Strutton, & LumpkinMarketing Channels: A RelationshipManagement ApproachSecond EditionUlrich & EppingerProduct Design and DevelopmentSecond EditionWalker, Boyd, Mullins, & LarréchéMarketing Strategy: A Decision-FocusedApproachFourth EditionWeitz, Castleberry, & TannerSelling: Building PartnershipsFourth EditionZeithaml & BitnerServices MarketingThird EditionHair et al.: MarketingResearch, Second EditionFront MattereditionPreface© The McGraw−HillCompanies, 20022MarketingResearchWithin a ChangingInformation EnvironmentJOSEPH F. HAIR, JR.ROBERT P. BUSHDAVID J. ORTINAULouisiana State UniversityThe University of MemphisUniversity of South FloridaBoston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. LouisBangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico CityMilan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei TorontoHair et al.: MarketingResearch, Second EditionFront MatterPreface© The McGraw−HillCompanies, 2002McGraw-Hill Higher EducationA Division of The McGraw-Hill CompaniesMARKETING RESEARCHPublished by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221Avenue of the Americs, New York, NY, 10020. Copyright © 2003, 2000 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in anyform or by any means, or stored in a database or retrieval system, without the prior written consentof The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States.This book is printed on acid-free paper.domestic1 2 3 4 5 6 7 8 9 0 WCK/WCK 0 9 8 7 6 5 4 3 2international 1 2 3 4 5 6 7 8 9 0 WCK/WCK 0 9 8 7 6 5 4 3 2ISBN 0-07-246757-6Publisher: John E. BiernatExecutive editor: Linda SchreiberDevelopmental editor II: Barrett KogerMarketing manager: Kim Kanakes SzumProject manager: Anna M. ChanProduction supervisor: Gina HangosMedia producer: Craig AtkinsSupplement producer: Betty HadalaCover design: Gino CieslikInterior design: Kay FultonTypeface: 10/12 Times RomanCompositor: Precision GraphicsPrinter: Quebecor World Versailles Inc.Library of Congress Cataloging-in-Publication DataHair, Joseph F.Marketing research / Joseph F. Hair, Jr., Robert P. Bush, David J. Ortinau.– 2nd ed.p. cm. — (McGraw-Hill/Irwin series in marketing)Includes index.ISBN 0-07-246757-6 (alk. paper) — ISBN 0-07-115119-2 (International : alk. paper)1. Marketing research. I. Bush, Robert P. II. Ortinau, David J. III. Title. IV. Series.HF5415.2 .H258 2003658.8’3–dc212002018857INTERNATIONAL EDITION ISBN 0-07-115119-2Copyright © 2003. Exclusive rights by The McGraw-Hill Companies, Inc. for manufacture andexport. This book cannot be re-exported from the country to which it is sold by McGraw-Hill. TheInternational Edition is not available in North America.www.mhhe.comHair et al.: MarketingResearch, Second EditionFront MatterPreface© The McGraw−HillCompanies, 2002dedicationThis book is dedicated to my wife, Dale, and my son, Joe III.—J.F.H. Jr., Baton Rouge, LAThis book is dedicated to my wife, Donny, and my two boys, Robert Jr.and Michael.—R.P.B. Sr., Memphis, TNI dedicate this book to my family for their love and continuous support. ToCarol Livingstone for her enduring encouragement and love during thewriting of the book’s second edition. And to all my past and present studentsfor enriching my life as an educator on a daily basis.—D.J.O., Tampa, FLHair et al.: MarketingResearch, Second EditionFront MatterPreface© The McGraw−HillCompanies, 2002about the authorsJoseph F. Hair Jr. earned a B.A. in Economics and an M.A. and Ph.D. in Marketing at theUniversity of Florida. He began his teaching career at the University of Mississippi andthen moved to Louisiana State University in 1977. He continues to teach at LSU, where heis the Director of the Institute for Entrepreneurial Education and Family Business Studies,and where he holds the Alvin C. Copeland Endowed Chair of Franchising. He has acted asa management consultant and/or expert witness for a variety of industries and has servedon the board of directors of numerous organizations. He has been an officer for a long listof academic organizations, and he is a past President and Chairman of the Board ofGovernors of the Academy of Marketing Science. He has been a regular contributor andreviewer, and occasionally a member of the editorial board, for such publications as TheJournal of Marketing Research, The Journal of Business Research, and MarketingEducation Review. The list of his scholarly publications runs to a dozen pages.Robert P. Bush earned a B.A. in Psychology and Economic History from St. Mary’sUniversity and an M.A. and Ph.D. in Marketing at Louisiana State University. He beganhis teaching career at the University of South Florida, moved first to the University ofMississippi, and then to The University of Memphis, where he has taught since 1993. Hewas chairman of the committee on Grants and Research for the Fogelman College ofBusiness from 1991 to 1997 and Director of the Ph.D. program at Memphis from 1995 to1997. He has been a consultant for a wide range of corporations and institutes, as well asfor the U.S. Department of Defense. He is the coauthor of Retailing for the 21st Century(Houghton Mifflin, 1993) and a coeditor of Advances in Marketing (LSU Press, 1994). Heis a regular contributor to such academic publications as Journal of Advertising, Journal ofConsumer Marketing, Journal of Marketing Education, Journal of Direct Marketing,Journal of Health Care Marketing, and Marketing Education Review.viDavid J. Ortinau earned a B.S. in Management from Southern Illinois University–Carbondale, an M.A. in Business Administration from Illinois State University, and a Ph.D.in Marketing from Louisiana State University. He began his teaching career at the Universityof South Florida, where he continues to win awards both for outstanding research and foroutstanding teaching. He has a wide range of research interests—from attitude formation andperceptual differences in services marketing to interactive electronic marketing technologiesand their impact on information research problems. He consults for a variety of corporationsand small businesses, with specialties in customer satisfaction, customer service quality,customer service value, retail loyalty, and image. He continues to serve as a member of theeditorial review board for Journal of Academy of Marketing Science and was coeditor ofMarketing: Moving Toward the 21st Century (SMA Press, 1996). He was co-chair of the1998 Southern Marketing Association’s Doctoral Consortium in New Orleans, and he is apast President of the Southern Marketing Association. He also served as co-chair of the 1999Society for Marketing Advances’ Doctoral Consortium in Atlanta and was recognized as the2001 SMA Fellow. He has presented numerous papers at academic meetings, and he hasbeen a regular contributor to and referee for such publications as The Journal of BusinessResearch, The Journal of Retailing, Journal of Marketing Education, Journal of Health CareMarketing, and Journal of Services Marketing.Hair et al.: MarketingResearch, Second EditionFront MatterPreface© The McGraw−HillCompanies, 2002prefaceAll marketing research books are designed to introduce students to the concepts and practicesthat make up the field of marketing research. Building on the success of our first edition ofMarketing Research: Within a Changing Information Envrionment, this second edition goeswell beyond that basic idea to show how marketing information research tools, skills, andunderstanding can be applied in solving marketing problems and creating businessopportunities within a rapidly changing information environment. With the growingavailability, acceptance, and use of (1) the Internet and its related advanced technologies andcommunication systems, (2) gatekeeper technologies such as caller ID, electronic answeringdevices, and voice messengers to protect people’s privacy, (3) continuous changing ofinternal organizational structures to improve the cross-functional sharing of information, and(4) the movement of both large and small businesses toward globalization of marketingpractices, tomorrow’s information requirements will be more challenging than those ofyesterday. Although the first edition was well received in the marketplace, it was the positivecomments made by adopters of the book and reviewers (both adopters and nonadopters) aswell as students which encouraged us to write this second edition. We sincerely believe thatwe have identified several critical learning needs that other marketing research textbooks arenot addressing well or not addressing at all.Objectives and ApproachSimilar to those of the first edition, our objectives in this second edition of MarketingResearch remain basically threefold. First, we want to continue to provide students with abody of knowledge and a set of facts that are easy to read and understand and that willfacilitate practical self-learning of the basics of information research. Second, we want toprovide students with solid tools and skills necessary to solve business problems andexploit business opportunities. And finally, we intend to provide a solid educationallearning resource for instructors who strive to bring understanding to frequently complexsubject matter. As students develop information acquisition skills and an understanding ofavailable research tools, they will quickly see how they can be applied to a changingmarketing environment, to other academic courses, and to their personal lives.Rapid changes in the business world are creating new decision situations that demandcreative solutions and better skills for the acquisition and use of information. As a result ofmany recent advances in the Internet, computer technologies (both hardware andsoftware), high-speed communication systems, and other electronic technologies, businessdecision makers and the marketing research industry have been forced to rethink theirnotions of information and of the practices used to acquire and generate data andinformation. A unique feature of this second edition is the continual detailed treatment ofand significantly greater emphasis placed on identifying, searching, gathering, analyzing,and interpreting secondary data and information. Another unique feature is the book’sdetailed and expanded coverage of customer relationship management (CRM) and theintegrative role that marketing information research plays in making CRM one of thehottest topics in information research today. In addition, this edition offers studentsexpanded coverage of the latest online research techniques, database development andviiHair et al.: MarketingResearch, Second EditionviiiFront MatterPreface© The McGraw−HillCompanies, 2002Prefacemaintenance, and data mining activities. Finally, students and instructors will have theopportunity to engage with the book’s new interactive website (www.mhhe.com/hair)linking students to a wide variety of additional practical marketing research examples,exercises, applications, learning modules, cases, and points of interest relevant to betterunderstanding marketing information research tools, skill, and practices.This second edition of Marketing Research: Within a Changing InformationEnvrionment provides detailed insights into alternative ways of dealing with newinformation needs and demands brought about by environmental changes. These changeshave had direct impact both on marketing research practices and on the operatingenvironments of business practitioners. Additionally, there have been many changes in theeducational environment that have implications for how people acquire knowledge andmaster the skills and tools customarily associated with the practice of marketing research.Given the strong acceptance of the information research process presented in the firstedition, we again use that process not only to cover the traditional marketing researchconcepts, but also to provide insights for meeting the information challenges of the 21stcentury. The second edition is written for people at a fairly basic level; it does not requirea strong background in statistics or any prior knowledge of marketing research. It is notintended for people who wish to teach advanced multivariate data analysis procedures, yetit could serve as a very good supplement text for those procedures.We continue to believe that self-learning is a critical and necessary component of astudent’s overall educational experience. To that end we have incorporated the followingcharacteristics into this second edition to enhance the self-learning process:• Easy-to-understand writing style and organization.• Clearly presented and informative exhibits, tables, and boxes that provide realbusiness applications.• Integrated examples that illustrate the links between various research concepts.• End-of-chapter Marketing Research Illustrations that demonstrate how researchersintegrate concepts discussed within that chapter.• Detailed treatment of critical information skills and tools.• In-depth treatment of secondary data/information as well as customer relationshipmanagement and database practices.• New in-depth treatment of the latest online research methods.• A new interactive book website that links the students and instructors to additional examples and discussions on many different research topics, databases, and software tools.Content and OrganizationThe second edition provides significantly new and expanded content on a number ofmarketing research topics that were covered in the first edition. Given all the positivecomments and acceptance from reviewers, adopters, and students of the previous edition,we were encouraged to maintain the overall organization for the second edition. Part 1 ofthis book covers marketing research and technology and contains five chapters. Chapter 1provides an overview of the role of marketing information research in a strategicmarketing planning process. It offers current discussions and illustrations for the variousresearch requirements, tasks, and functions within today’s complex businessenvironments. Chapter 2 takes an information approach to explaining the marketingresearch process and sets the tone for the remaining chapters. It presents an overview ofHair et al.: MarketingResearch, Second EditionFront MatterPreface© The McGraw−HillCompanies, 2002Prefaceixthe four stages of the process and discusses the major steps that researchers and decisionmakers must take to ensure successful results. There is an important discussion of thecritical role marketing research information plays in decision making and whatenvironmental factors have greatest impact on marketing research practices.Chapter 3 provides in-depth treatment of the most critical step in the process—determining the “right” information research problem and deciding on the appropriateresearch objectives. It also offers a discussion of the important ethical dilemmas and issuesfaced by both researchers and decision makers. Chapter 4 integrates strategic managementand customer relationship issues involved in conducting secondary data gatheringresearch. It places heavy emphasis on the search strategies needed to acquire, analyze, anduse both traditional and online approaches. The original Chapter 5, which provideddetailed coverage of the use of the Internet, has been completely moved to the book’sinteractive website (www.mhhe.com/hair). The new Chapter 5 in this edition provides adetailed discussion of customer relationship management (CRM) and explores variousresearch strategies using CRM software for data acquisition and for intraorganizationalsharing of data and information.Part 2 covers the various research designs used to collect accurate data and informationand contains five chapters. Chapter 6 continues the integration of CRM activities andoffers detailed information on the application of secondary data sources and databases forsolving business problems. It places heavy emphasis on the importance of secondary dataand on knowing how to develop and maintain databases as well as how to undertake datamining and conduct segmentation activities. Chapter 7 focuses uniquely on how researchdriven decision support systems (RDSS) are created and used to support researchers anddecision makers. Through the exclusive partnership with the Matrix Technology Group,Inc., a CRM software company in Clearwater, Florida, students and instructors can link toa variety of CRM software, tutorials and applications through the book’s new interactivewebsite (www.mhhe.com/hair).Chapter 8 moves from research designs that are strictly for secondary data to thoseaimed at collecting primary (i.e., firsthand) data and their conversion to useful managerialinformation. A number of qualitative methods used in exploratory research situations arediscussed, with heavy emphasis placed on two widely practiced designs—in-depthinterviews (also known as depth interviews) and focus groups. There is a new expandeddiscussion dealing with online focus group practices. Chapter 9 presents an overview ofsurvey research designs along with other quantitative data collection methods (bothtraditional and online approaches) that are normally associated with descriptive researchobjectives. It also introduces the various types of error associated with survey researchdesigns, including their impact on the quality of the data collected. Students andinstructors will find additional discussions and examples of survey research errors offeredthrough the book’s interactive website. Chapter 10 provides detailed treatments ofobservation techniques and experimental and quasi-experimental designs, along with indepth treatment of test marketing and field simulations practices. It also explores the issuesof validity and reliability.Part 3 covers the process of gathering accurate data and contains four chapters. Chapter11 introduces readers to sampling and defined target populations. It provides detailedcoverage of sampling distributions, sampling frames, sample size determination, anddifferent types of probability and nonprobability sampling procedures. This chapter showshow to develop a sampling plan and discusses each step of the process. Chapter 12introduces the procedures used in construct development and provides an overview ofscale measurements. The critical issues underlying the development of basic scalemeasurements and information properties are discussed in detail, and earlier discussions ofvalidity and reliability are revisited.Hair et al.: MarketingResearch, Second EditionxFront MatterPreface© The McGraw−HillCompanies, 2002PrefaceChapter 13 advances the concept of scale measurement to more complex attitude,emotional, and behavioral scale formats, and it goes on to provide a basic overview ofother types of comparative and noncomparative specialty scales used in marketingresearch practices. More examples of scale measurements are provided through links onthe book’s website. Chapter 14 offers a detailed treatment of how to develop and format ascientific-based survey instrument (i.e., questionnaire). Exclusive to this book, we use the“flowerpot” framework and demonstrate how this framework integrates and has an impacton the various procedural steps of the design process. In addition, there is a detailedtreatment of how to develop cover letters and letters of introduction and their importanceto increasing response rates. Discussions are also provided on the development of criticalsupplement documents associated with survey instrument designs and conducting fieldwork (i.e., supervisor instructions, interviewer instructions, screening forms, quota sheets,rating cards, call record sheets). The book’s website offers students and instructorsadditional examples of good and bad questionnaires, cover letters, and pre- and posttestquestionnaire design changes.Part 4 covers data preparation, data analyses, and the communication of researchfindings and contains five chapters. Chapter 15 begins this section by offering an overviewof the fundamental principles of coding requirements, the editing of data, and thepreparing of raw data for statistical analysis. Chapter 16 builds on earlier discussions ofbasic sampling statistics and begins to illustrate how fundamental descriptive statisticalanalyses are used to transform raw data into more complex data structures. It provides thehow, when, and whys for performing t-test and z-tests, and it explains the importance ofmeans, standard deviations, and standard error values. Chapter 17 expands the discussionof data analysis to include testing for associations using correlation, covariance,regression, and analysis of variance (ANOVA) statistical procedures.Chapter 18 presents a somewhat simplified overview of multivariate statistics. It provideshow, when, and why discussions of discriminant analysis, cluster analysis, and conjointanalysis procedures. Chapter 19 discusses the important issues that underlie the preparationof research reports and presentations. It shows students how to develop computerizedpresentations (e.g., PowerPoint slides) of data structures results and research findings. Each

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