Page 133 - Marketing Management

110 PART 2 CAPTURING MARKETING INSIGHTS

30
research surveys in the same year. There are many other means to use the Internet as a research
tool. The company can learn about individuals who visit its site by tracking how they clickstream
through the Web site and move to other sites. It can post different prices, use different headlines,
and offer different product features on different Web sites or at different times to learn the relative
effectiveness of its offerings.
Yet, as popular as online research methods are, smart companies are choosing to use them to
augment rather than replace more traditional methods. At Kraft Foods, online research is a supple-
ment to traditional research, said Seth Diamond, director of consumer insights and strategy.
“Online is not a solution in and of itself to all of our business challenges,” he said, “but it does
expand our toolkit.” 31
32
There are a number of pros and cons to online research. Here are some advantages:
• Online research is inexpensive. A typical e-mail survey can cost between 20 percent and
50 percent less than what a conventional survey costs,and return rates can be as high as 50 percent.
• Online research is fast. Online surveys are fast because the survey can automatically direct
respondents to applicable questions and transmit results immediately. One estimate says an
online survey can generate 75 percent to 80 percent of the targeted response in 48 hours,
compared to a telephone survey that can require 70 days to obtain 150 interviews.
• People tend to be honest and thoughtful online. People may be more open about their opin-
ions when they can respond privately and not to another person whom they feel might be
judging them, especially on sensitive topics (such as, “how often do you bathe or shower?”).
Because they choose when and where they take the survey and how much time to devote to
each question, they may be more relaxed, introspective, and candid.
• Online research is versatile. Increased broadband penetration offers online research even
more flexibility and capabilities. For instance, virtual reality software lets visitors inspect 3-D
models of products such as cameras, cars, and medical equipment and manipulate product
characteristics. Even at the basic tactile level, online surveys can make answering a question-
naire easier and more fun than paper-and-pencil versions. Online community blogs allow cus-
tomer participants to interact with each other.
Some disadvantages include:
• Samples can be small and skewed. Some 40 percent of households were without broadband
Internet access in the United States in 2009; the percentage is even higher among lower-
income groups, in rural areas, and in most parts of Asia, Latin America, and Central and
33
Eastern Europe, where socioeconomic and education levels also differ. Although it’s certain
that more and more people will go online, online market researchers must find creative ways
to reach population segments on the other side of the “digital divide.” One option is to com-
bine offline sources with online findings. Providing temporary Internet access at locations
such as malls and recreation centers is another strategy. Some research firms use statistical
models to fill in the gaps in market research left by offline consumer segments.
• Online panels and communities can suffer from excessive turnover. Members may become
bored with the company’s efforts and flee. Or perhaps even worse, they may stay but only half-
heartedly participate. Panel and community organizers are taking steps to address the quality
of the panel and the data they provide by raising recruiting standards, downplaying incentives,
and carefully monitoring participation and engagement levels. New features, events, and other
activities must be constantly added to keep members interested and engaged. 34
• Online market research can suffer from technological problems and inconsistencies. Problems
can arise with online surveys because browser software varies. The Web designer’s final prod-
uct may look very different on the research subject’s screen.
Online researchers have also begun to use text messaging in various ways—to conduct a chat
with a respondent, to probe more deeply with a member of an online focus group, or to direct
35
respondents to a Web site. Text messaging is also a useful way to get teenagers to open up on topics.

Step 3: Collect the Information
The data collection phase of marketing research is generally the most expensive and the most prone
to error. Marketers may conduct surveys in homes, over the phone, via the Internet, or at a central
interviewing location like a shopping mall. Four major problems arise in surveys. Some respondents