Editor's Note

MR Perspectives is a twice-monthly newsletter that provides perspectives on market research topics of interest, best practices tips, emerging trends, quick case studies, and other useful information.

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Dec. 6, 2004 Washington, D.C.

Think-Tank On Offshore Outsourcing

The Council of American Survey Research Organization will hold a one-day Think-Tank On Offshore Outsourcing at the Wyndham City Center Hotel in Washington, D.C.

Dec. 7-9, 2004 San Francisco, Calif.

Voice of the Customer Conference

The Institute for International Research is hosting its 7th Annual Voice of the Customer Conference for product development professionals at the Crowne Plaza Union Square in San Francisco.

Dec. 9-10, 2004 Boston, Mass.

Marketing Research Boot Camp

The American Marketing Association is holding a Marketing Research Boot Camp for new marketing researchers at Boston Marriott Copley Place in Boston.

Dec. 9, 2004 New York City

Qualitative Research Conference

The Council of American Survey Research Organization will hold a one-day Qualitative Research Conference at The Roosevelt Hotel in New York City.

Researchers' Biggest Challenges

Ever get the feeling that that the issues you experience as a marketer/market researcher are unique to you and your company? In some cases, that might be the case, but most deal with very similar challenges regardless of company size, vertical industry, product or service offering. In a July 2004 survey of over 1,600 members of the American Marketing Association who both buy and sell research, three common themes were found. They were:

Survey quality -- The most important survey quality issue was reaching a representative sample of respondents, an issue that is ever increasing and was talked about in our November 4th issue. As discussed, this appears to be an issue that will continue into the near future. The second issue is accurately and correctly analyzing results. Accurately analyzing results means that the statistics were performed accurately, while correctly analyzing results means that the researcher set up the research strategy, survey questions and ensuing analysis structure correctly. Both are critical. The third was maximizing survey participation and completion rates -- also briefly covered in the November 4th issue.

Improving survey operations -- The most important issue for improving survey operations is reducing costs. As completion rates continue to decline and acquiring representative samples require that much more work (time and money), costs for quality marketing research have generally escalated. Reducing errors in data collection and coding is the second issue of highest concern in survey operations. These first two issues, of course, are in constant struggle to find equilibrium, for with greater spending typically comes greater quality. The third operational improvement is conducting more effective research online and the fourth is reducing results analysis time. The Internet has certainly played an enormously important role in marketing research, and as a greater portion of the worldwide population has access to Internet service, Internet surveying should continue to get more effective. Unfortunately, analyzing results is one of those things that will always take time to execute properly. And as marketing researchers dig deeper and deeper into their clients' data, not just marketing research results but also looking at appended customer level data, complex analysis and interpretation could take even longer.

Turning results into action -- A key concern continues to be how researchers can leverage results toward strategic business advantages. Their top issue is making sure the research function is not marginalized in the strategy process and that management fully understands the significance and importance of survey results and analysis. The second most important issue is communicating results across a broad range of functional managers -- a perennial favorite. The third key issue is understanding and communicating financial implications of the marketing research. Without being able to communicate the financial implications, marketing research is forever at the risk of not being leveraged and perhaps marginalized, when in fact it can often be used to guide the highest quality strategic decisions within a company.

Statistical Analysis Applications

Every once in a while, clients, prospects and readers ask us for practical application examples for the more typical advanced statistical analysis market researchers use. Below is a quick reference list we hope you will find useful.

• Multiple regression (driver analysis) describes the relationship of each variable in a set (and the set of variables as a whole) to a single variable, helping to determine key individual "drivers" of satisfaction, loyalty, purchasing or other behaviors.

• Cluster analysis identifies homogeneous sub-groups within a much larger group of respondents. It identifies customer profiles, market segments or potential customers who fit into similar groups and, for example, make decisions and perceive products and services similarly.

• Factor analysis reduces a complicated data matrix into its more basic structural essentials. This helps, for example, in uncovering the basic dimensions that your employees might use to evaluate how satisfied they are in working for your organization.

• Perceptual mapping (multidimensional scaling) extracts multiple dimensions from a variable set and graphically positions key concepts. Perceptual mapping can, for example, help your company visualize how customers mentally organize your competitive set in your product or service category, and your brand's position relative to your competitors.

• Structural equation modeling tests how well observed data conforms to a theoretical model. This can help describe the process by which customer loyalty is built for your particular product or service category. It can be used for predicting future behaviors and sales.

• Data mining detects useful and sometimes unexpected patterns among variables in a data set. Executed properly, data mining can reveal cross-selling opportunities for your products and services at key points in a customer relationship.

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