Marketing Research Aaker Kumar Day and Leone Ninth

Marketing Research Aaker, Kumar, Day and Leone Ninth Edition Instructor’s Presentation Slides

2 Chapter Seven Marketing Research on The Internet http: //www. drvkumar. com/mr 10/ Marketing Research 10 th Edition

3 Current Trends in Web Usage • 55% of American households have access to internet at home (US Census Bureau 2003 population survey) • 68% of adults use the internet (Pew Internet and American Life Project 2005) • 32% of adult Internet users purchased products or services online in 2005 (Census report) • Online advertising revenue is $12 billion in 2005 • 33. 2 million people between 50 -64 years of age online in 2005 (e. Marketer) • Senior-specific sites for Pfizer Inc. , Fidelity Investments and Charles Schwab Corp. http: //www. drvkumar. com/mr 10/ E-Commerce Spending Summary, 1998 - 2006 Retail E-Commerce (in USD Bn. ) E-Commerce as % of Total Retail Sales 1998 5. 0 0. 2 1999 15. 0 0. 5 2000 28. 0 1. 0 2001 35. 3 1. 1 2002 46. 8 1. 5 2003 60. 0 1. 8 2004 76. 3 2. 2 2005 87. 4 2006 106. 6 2. 7 SOURCE: Compiled from Annual Retail Trade Surveys, U. S. Census Bureau Marketing Research 10 th Edition

4 Internet – Uses & Usage Typical Uses of the Internet Uses for Online Services Rural Internet Users (%) Urban & Suburban Internet Users (%) Buy or make a reservation for travel 51 65 Online banking 34 43 Online classifieds 30 37 Read a blog 21 28 Download screensavers 28 22 Download computer games 25 20 Class for credit 15 11 Fantasy sports 9 7 Activity SOURCE: Pew Internet & American Life Project. http: //www. drvkumar. com/mr 10/ Marketing Research 10 th Edition

5 Online Advertisements Search Engine Advertising Top Companies by Sponsored Link Impressions as on August, 2008 Impressions (in millions) Company True Amazon. com 1, 787. 1 Zencon Technologies LLC 1, 664. 1 Internet Made Simple Local Media Advertising 2, 924. 8 1, 258. 9 Inter. Active. Corp 920. 3 SOURCE: Nielsen Online, 2008. “Advertising Placements by Industry and Top Sponsored Links, August 2008, ” September 15, 2008, http: //www. clickz. com/show. Page. html? page=3630843 Contextual Advertising http: //www. drvkumar. com/mr 10/ Marketing Research 10 th Edition

6 Primary Research on the Internet E-mail Surveys Interactive Forms Online Panels Online Focus Groups User Generated Reviews http: //www. drvkumar. com/mr 10/ Marketing Research 10 th Edition

7 Email Surveys • Advantages ↑ Greater speed of delivery of questionnaires ↑ Higher speed of delivering responses and feedback ↑ Cost-savings benefits over regular mail surveys ↑ No intermediaries ↑ Asynchronous communication • Disadvantages ↓ Low security ↓ No guarantee for anonymity http: //www. drvkumar. com/mr 10/ Marketing Research 10 th Edition

8 Comparison of Information Sources Internet (www, Usenet) Professional Databases (e. g. , Lexis/Nexis) Commercial Online Services (e. g, Compu. Serve) Speeda Low to high High Low to high Information Structure not very good Very well structured Well structured Information scope Very broad Depends on the database, mostly narrow Medium to broad Overall information quality Low to high High to very high Medium to high Search tools Limited, not complete Extensive, accurate Mostly accurate User support Limited Very good Good Cost Low High to very high Medium a Depending on modem, server and database structure http: //www. drvkumar. com/mr 10/ 8 Marketing Research 10 th Edition

9 Secondary Research on the Internet • Custom Search Service • Agents • Free Information Providers http: //www. drvkumar. com/mr 10/ Marketing Research 10 th Edition

10 The Seven Deadly Sins of Online Searching Pride Assuming one does not need to read the manual or other material for the search process Haste Rushing into a search before thinking through your search goals Avarice Trying to perform an extensive search when only a few good pieces of information are necessary Apathy Not thinking creatively about what sources would best cover the subject Sloth Narrow mindedness Ignorance http: //www. drvkumar. com/mr 10/ Using the same old sources for every search Trying only one formulation of the search Not knowing the on-line system’s tricks and tools 10 Marketing Research 10 th Edition

11 The Internet & Marketing Research Developments • Intranets • Speed http: //www. drvkumar. com/mr 10/ Marketing Research 10 th Edition

12 Where The Users Are Country Number of hosts in December 2007 % Growth in a Year Number of Hosts per 1000 Inhabitants United States 274, 101, 000 18. 9 915. 5 Japan 36, 803, 719 19. 3 Germany 20, 659, 105 United Kingdom Number of hosts in December 2007 % Growth in a Year Number of Hosts per 1000 Inhabitants Taiwan 5, 121, 607 15. 9 222. 3 260. 9 Sweden 3, 886, 313 20. 1 428. 0 57. 8 250. 6 Finland 3, 728, 551 17. 0 706. 6 20, 000 N. A 331. 2 Russia 3, 647, 609 52. 2 25. 6 Italy 16. 730, 591 20. 8 282. 9 Belgium 3, 618. 495 14. 8 343. 3 France 14. 356, 747 38. 9 234. 0 Switzerland 3, 308, 684 28. 7 443. 6 China 13, 113, 985 N. A 10. 0 Denmark 3, 256, 134 16. 0 597. 8 Canada 11, 000 N. A 340. 9 Argentina 3, 128, 975 70. 3 80. 3 Australia 10, 707, 139 24. 6 539. 3 South Korea 3, 000 N. A 63. 1 Netherlands 10, 540, 083 16. 9 644. 4 Norway 2, 725, 031 15. 0 582. 2 Brazil 10, 151, 592 36. 8 44. 9 Austria 2, 589, 316 11. 1 312. 7 Mexico 10, 071, 370 50. 4 74. 0 Turkey 2, 425, 789 53. 4 33. 2 Spain 9, 000 N. A 202. 0 Czech Republic 2, 093, 497 39. 3 204. 2 Poland 7, 134, 976 42. 7 187. 1 Romania 2, 014, 220 72. 3 93. 2 India 7, 000 N. A 6. 3 Hungary 1, 689, 456 43. 6 168. 6 http: //www. drvkumar. com/mr 10/ Country SOURCE: http: //www. gandalf. it/data 1. htm Marketing Research 10 th Edition