Marketing Research Applied Insight Sixth Edition Daniel Nunan David F. Birks Naresh K. Malhotra MARKETING RESEARCH APPLIED INSIGHT At Pearson, we have a simple mission: to help people make more of their lives through learning. We combine innovative learning technology with trusted content and educational expertise to provide engaging and effective learning experiences that serve people wherever and whenever they are learning. From classroom to boardroom, our curriculum materials, digital learning tools and testing programmes help to educate millions of people worldwide – more than any other private enterprise. Every day our work helps learning flourish, and wherever learning flourishes, so do people. To learn more, please visit us at www.pearson.com/uk MARKETING RESEARCH APPLIED INSIGHT SIXTH EDITION DANIEL NUNAN DAVID F. BIRKS NARESH K. MALHOTRA Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan PEARSON EDUCATION LIMITED KAO Two KAO Park Harlow CM17 9SR United Kingdom Tel: +44 (0)1279 623623 Web: www.pearson.com/uk Original 6th edition entitled Marketing Research: An Applied Orientation published by Prentice Hall Inc., a Pearson Education company Copyright Prentice Hall Inc. Previously published 2000, 2003, 2007, 2012 (print); 2017 (print and electronic) Sixth edition published 2020 (print and electronic) © Pearson Education Limited 2000, 2003, 2007, 2012 (print) © Pearson Education Limited 2017, 2020 (print and electronic) The rights of Daniel Nunan, David F. Birks and Naresh K. Malhotra to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. 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All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. Pearson Education is not responsible for the content of third-party internet sites. ISBN: 978-1-292-30872-2 (print) 978-1-292-30874-6 (PDF) 978-1-292-30876-0 (ePub) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Malhotra, Naresh K., author. | Nunan, Daniel, author. | Birks, David F., author. Title: Marketing research : applied insight / Daniel Nunan, David F. Birks, Naresh K. Malhotra. Description: Sixth edition. | Harlow, England ; New York : Pearson, 2020. | Naresh K. Malhotra is the first named author on earlier editions. | Includes bibliographical references and index. | Summary: “Working as a marketing researcher remains an intellectually stimulating, creative and rewarding career. Marketing research is a huge and growing industry at the forefront of innovation in many sectors of the economy. However, few industries can have been presented with as many challenges and opportunities as those faced by marketing research due to the growing amounts of data generated by modern technology. This edition has been significantly updated, with new content, updated cases studies and a major focus on the issues and methods generated by new technologies”— Provided by publisher. Identifiers: LCCN 2019049933 (print) | LCCN 2019049934 (ebook) | ISBN 9781292308722 (paperback) | ISBN 9781292308760 (ebook) | ISBN 9781292308746 (pdf) Subjects: LCSH: Marketing research. | Marketing research—Methodology Classification: LCC HF5415.2 .M2898 2020 (print) | LCC HF5415.2 (ebook) | DDC 658.8/3—dc23 LC record available at https://lccn.loc.gov/2019049933 LC ebook record available at https://lccn.loc.gov/2019049934 10 9 8 7 6 5 4 3 2 1 24 23 22 21 20 Cover: John Lund/The Image Bank/Getty Images Print edition typeset in 10/12 pt Times LT Pro by SPi Global Print edition printed in Slovakia by Neografia NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION Brief contents Preface xiii Publisher’s acknowledgements xiv About the authors xviii 1. Introduction to marketing research and insight 1 2. Defining the research problem and developing a research approach 26 3. Research design 53 4. Secondary data collection and analysis 84 5. Internal secondary data and analytics 115 6. Qualitative research: its nature and approaches 141 7. Qualitative research: focus group discussions 173 8. Qualitative research: in-depth interviewing and projective techniques 201 9. Qualitative research: data analysis 227 10. Survey and quantitative observation techniques 261 11. Causal research design: experimentation 296 12. Measurement and scaling: fundamentals, comparative and non-comparative scaling 327 13. Questionnaire design 365 14. Sampling: design and procedures 403 15. Sampling: determining sample size 435 16. Survey fieldwork 461 17. Social media research 481 18. Mobile research 505 19. Data integrity 520 20. Frequency distribution, cross-tabulation and hypothesis testing 548 21. Analysis of variance and covariance 593 vi Marketing Research 22. Correlation and regression 624 23. Discriminant and logit analysis 665 24. Factor analysis 699 25. Cluster analysis 727 26. Multidimensional scaling and conjoint analysis 754 27. Structural equation modelling and path analysis 787 28. Communicating research findings 823 29. Business-to-business (b2b) marketing research 845 30. Research ethics, privacy and trust 871 Glossary 899 Subject Index 917 Name Index 946 Index of Organisations 948 Contents Preface xiii Research questions 48 Publisher’s acknowledgements xiv Hypothesis 49 About the authors xviii Summary 49 Questions 50 Exercises 51 1 Introduction to marketing Notes 51 research and insight 1 Objectives 2 3 Research design 53 Overview 2 What does ‘marketing research’ mean? 3 Objectives 54 Marketing research in context 6 Overview 54 Definition of marketing research 6 Research design definition 55 The global marketing research industry 14 Research design from the decision makers’ Justifying the investment in marketing research 17 perspective 56 The future – addressing the marketing Research design from the participants’ perspective 57 research skills gap 19 Research design classification 63 Summary 22 Descriptive research 67 Questions 23 Causal research 73 Exercises 24 Relationships between exploratory, Notes 24 descriptive and causal research 74 Potential sources of error in research designs 76 Summary 79 2 Defining the research Questions 80 problem and developing a Exercises 80 research approach 26 Notes 81 Objectives 27 Overview 27 4 Secondary data collection and Importance of defining the research problem 28 analysis 84 The marketing research brief 29 Components of the marketing research brief 30 Objectives 85 The marketing research proposal 33 Overview 85 The process of defining the problem and Defining primary data, secondary data and developing a research approach 36 marketing intelligence 86 Environmental context of the problem 38 Advantages and uses of secondary data 88 Discussions with decision makers 38 Disadvantages of secondary data 89 Interviews with industry experts 40 Criteria for evaluating secondary data 89 Initial secondary data analyses 41 Classification of secondary data 93 Marketing decision problem and marketing Published external secondary sources 94 research problem 42 Databases 98 Defining the marketing research problem 45 Classification of online databases 98 Components of the research approach 46 Syndicated sources of secondary data 100 Objective/theoretical framework 47 Syndicated data from households 103 viii Marketing Research Syndicated data from institutions 109 Exercises 198 Summary 111 Notes 199 Questions 111 Exercises 112 8 Qualitative research: in-depth Notes 113 interviewing and projective techniques 201 5 Internal secondary data and Objectives 202 analytics 115 Overview 202 Objectives 116 In-depth interviews 203 Overview 116 Projective techniques 215 Internal secondary data 119 Comparison between qualitative techniques 221 Geodemographic data analyses 122 Summary 222 Customer relationship management 126 Questions 223 Big data 128 Exercises 223 Web analytics 129 Notes 224 Linking different types of data 133 Summary 137 9 Qualitative research: Questions 138 data analysis 227 Exercises 138 Notes 139 Objectives 228 Overview 228 6 Qualitative research: The qualitative researcher 229 The process of qualitative data analysis 233 its nature and approaches 141 Grounded theory 245 Objectives 142 Content analysis 248 Overview 142 Semiotics 250 Primary data: qualitative versus Qualitative data analysis software 253 quantitative research 144 Summary 256 Rationale for using qualitative research 146 Questions 257 Philosophy and qualitative research 149 Exercises 257 Ethnographic research 156 Notes 258 Grounded theory 162 Action research 165 10 Survey and quantitative Summary 168 observation techniques 261 Questions 170 Exercises 170 Objectives 262 Notes 171 Overview 262 Survey methods 263 7 Qualitative research: Online surveys 265 Telephone surveys 269 focus group discussions 173 Face-to-face surveys 270 Objectives 174 A comparative evaluation of survey methods 273 Overview 174 Other survey methods 282 Classifying qualitative research techniques 176 Mixed-mode surveys 283 Focus group discussion 177 Observation techniques 283 Planning and conducting focus groups 182 Observation techniques classified by mode The moderator 187 of administration 286 Other variations of focus groups 188 A comparative evaluation of the Other types of qualitative group discussions 189 observation techniques 289 Misconceptions about focus groups 190 Advantages and disadvantages of Online focus groups 192 observation techniques 290 Advantages of online focus groups 194 Summary 291 Disadvantages of online focus groups 195 Questions 291 Summary 196 Exercises 292 Questions 197 Notes 293 Contents ix 11 Causal research design: Determine the content of individual questions 374 experimentation 296 Overcoming the participant’s inability and unwillingness to answer 375 Objectives 297 Choose question structure 379 Overview 297 Choose question wording 383 Concept of causality 298 Arrange the questions in proper order 388 Conditions for causality 299 Identify the form and layout 390 Definitions and concepts 302 Reproduce the questionnaire 391 Definition of symbols 304 Eliminate problems by pilot-testing 392 Validity in experimentation 304 Summarising the questionnaire design process 394 Extraneous variables 305 Designing surveys across cultures and Controlling extraneous variables 307 countries 396 A classification of experimental designs 309 Summary 397 Pre-experimental designs 310 Questions 398 True experimental designs 311 Exercises 399 Quasi-experimental designs 312 Notes 399 Statistical designs 314 Laboratory versus field experiments 317 Experimental versus non-experimental designs 319 14 Sampling: design Application: test marketing 320 and procedures 403 Summary 322 Objectives 404 Questions 323 Overview 404 Exercises 324 Sample or census 406 Notes 324 The sampling design process 407 A classification of sampling techniques 412 12 Measurement and scaling: Non-probability sampling techniques 413 fundamentals, comparative Probability sampling techniques 418 and non-comparative scaling 327 Choosing non-probability versus probability sampling 426 Objectives 328 Summary of sampling techniques 427 Overview 328 Issues in sampling across countries and cultures 429 Measurement and scaling 329 Summary 430 Scale characteristics and levels of measurement 330 Questions 431 Primary scales of measurement 331 Exercises 432 A comparison of scaling techniques 336 Notes 432 Comparative scaling techniques 337 Non-comparative scaling techniques 341 15 Sampling: determining Itemised rating scales 343 Itemised rating scale decisions 346 sample size 435 Multi-item scales 350 Objectives 436 Scale evaluation 352 Overview 436 Choosing a scaling technique 357 Definitions and symbols 438 Mathematically derived scales 358 The sampling distribution 439 Summary 358 Statistical approaches to determining Questions 359 sample size 440 Exercises 360 The confidence interval approach 441 Notes 361 Multiple characteristics and parameters 447 Other probability sampling techniques 447 13 Questionnaire design 365 Adjusting the statistically determined sample size 448 Objectives 366 Calculation of response rates 449 Overview 366 Non-response issues in sampling 450 Questionnaire definition 368 Summary 457 Questionnaire design process 369 Questions 457 Specify the information needed 372 Exercises 458 Specify the type of interviewing method 373 Notes 458