Review Questions Chapter 6

Review Questions Chapter 6 - 2. Market research in business...

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2. Market research in business markets has different flavor than it does in consumer markets. In Chapter 1, we noted the differences between consumer markets, marketers must address several problems that are specific to market research in business markets. Concentrated Markets- when a business marketer addresses oligopolistic markets, the traditional tools of quantitative market research lose their relevance: Too few buyers exist for estimation of population characteristics from statistical inference. Accordingly, data collection through large sample surveys, such as are used in consumer research, cannot be performed. Data analysis techniques based on deriving unbiased estimation of population parameters and statistically testing their differences have little or no relevance. This means that business marketers need to use personal interviews for data collection in oligopolistic markets. Personal interviews are discussed later in the chapter. Diversity of Interest in the Buying Center- The number of people in the buying center produces another major difference from consumer market situations. In households, one or two people usually make decisions. A consumer researcher can address questions to the member of the household most likely to make a decision in a product area, and the response will generally be valid. In a buying center for an organization, several people may strongly influence a decision making it difficult for any one of them to predict the decision’s outcome. Further. If you could question them all, they may be able to give their preference at the time, but such responses would not take into account any subsequent interaction among the buying center members. Consequently, it may be very difficult to predict an organization’s buying decisions even from primary data. Think for a minute about the product the IBM WebConnections marketing manager would have in trying to do research with small business buying centers considering expanding into e-commerce. If all members of the buying center are queried about their preferences for a system solution and how they would like to build their on-line business, they may give rather naïve answers about their likes and dislikes. However, after they have had a chance to develop more understanding and knowledge about the value of WebConnections system, they may have some very definite ideas about what they would really like to be
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This note was uploaded on 09/08/2010 for the course BUS 131A at San Jose State University .

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Review Questions Chapter 6 - 2. Market research in business...

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