Online Marketing Research

Chapter 6
 The Internet – a background
1. August 2005, 69% of US households
have Internet access.
2. Upper-income, white-collar, highly
educated, male dominated core.
3. Online surveying: reduced costs and
turnaround time.
4. People use stronger words (positive
and negative) and are more honest.
 United States: Average Web Usage
Month of August 2005
Home Panel

Sessions/Visits Per Person 34

Domains Visited Per Person 61

PC Time Per Person 30:15:00

Duration of a Web Page Viewed 00:00:48

Active Digital Media Universe 140,589,403

Current Digital Media Universe 203,274,683

Estimate

Source: Nielson NetRatings Sept. 2005

Broadband Growth Trend
 Chapter overview
• Email survey error
• Probability and nonprobability survey
approaches
• Internet survey software
• Online survey capabilities and
technologies
• Online qualitative research
 Major sources of survey error
1. Coverage error
•

1. Sampling error
•

1. Nonresponse error
•

1. Measurement error
•
 Major sources of survey error
1. Coverage error
• When the sample group does not represent the population
as a whole
1. Sampling error
•

1. Nonresponse error
•

1. Measurement error
•
 Major sources of survey error
1. Coverage error
• When the sample group does not represent the population
as a whole
1. Sampling error
• When a non-representative sample is drawn from the
sampling frame
1. Nonresponse error
•

1. Measurement error
•
 Major sources of survey error
1. Coverage error
• When the sample group does not represent the population
as a whole
1. Sampling error
• When a non-representative sample is drawn from the
sampling frame
1. Nonresponse error
• Factors: the length of the survey, the use of reminders, the
respondent’s computer, the speed of the data lines
1. Measurement error
•
 Major sources of survey error
1. Coverage error
• When the sample group does not represent the population
as a whole
1. Sampling error
• When a non-representative sample is drawn from the
sampling frame
1. Nonresponse error
• Factors: the length of the survey, the use of reminders, the
respondent’s computer, the speed of the data lines
1. Measurement error
• The difference between the information generated on the
measurement scale and the real value of the information
• Factors: faulty wording, misinterpretation, poor images
• To minimize it: logic checks, randomized order of
questions and multiple choice answers, good layout of text
Online Nonprobability Surveys
• Well-recognized nonprobability surveys:
HotWired, National Geographic,
ACNielsen BASES and Harris-Black
panels.
• They are continually redefined to match the
demographic characteristics of the telephone and
mall intercept interviews.
NonProbability Survey
NonProbability Survey
 Test Marketing Plugs
into the Internet
• Standard test markets: actual launches in smaller
markets including complete marketing support.
– Rating: best possible read of the market at he highest possible
cost with the longest execution time. Open to competitive attack.
• Controlled test markets: panel of stores with good
geographic dispersion that carry new products controlling
for displays, promotions and pricing.
– Rating: accurate barometer of trade reception. Affordable.
• Simulated test markets: consumers use seed
money to buy new items in a laboratory store and
researchers follow up.
– Rating: Lowest execution costs, high accuracy, minimal security
issues and the fastest feedback.
 The e-Panel concept
• Share vs. Sales
This unit vs. share dilemma was one of the reasons that led to the development of the BASES
simulated test approach in the late 1970s. BASES yields a two year volume number rather than a
market share estimate.

BASES recruits respondents at shopping malls, then shows them concept boards and preliminary
packaging ideas to gather feedback early in the new product development process.

Underlying BASES is a simple premise: ask consumers what they plan to do and they’ll tell
you.

People never do exactly what they say, they always do something related to their claim. In a
matched comparison of more than 800 cases, BASES volume estimates fell within +/− 20 percent
of actual in-market results nine out of ten times.

Worldwide, the BASES model has been applied successfully to more than 28,000 new product
concepts from food and beverage to household items, personal care, over-the-counter drugs, pet
products and other consumer packaged goods ideas. Today, BASES holds a 60 percent global
share of all simulated test marketing for consumer packaged goods.

BASES
 The e-Panel concept
• BASES
• Seismic Changes:
• mall traffic, the BASES’ input, plummeted in 1990s.
• Internet gained foothold in American households.
• BASES spent more than $ 1M developing and
testing the e-Panel concept.
• The panelist profile proved to be virtually
indistinguishable from the mall recruits.
• The e-Panel yields savings of 20% per study.
 Online Probability Surveys
• Allow researcher to estimate the effects of
sampling error and thereby provide inferences
about the target population through hypothesis
testing.
• Targeting the population of interest;
– Pop-up surveys presented randomly to visitors when
first entering the site.
– Pre-recruited online panels (through random-digit
telephone dialing)
– Mixed mode designs (provide alternatives for
respondents: via online or other)
 Internet Survey Software
1. E-mail Submission Form
• The researcher builds an HTML or rich-text survey
1. Self-Hosted Server Software
• The researcher posts the survey to the server for
distribution by e-mail or Web hosting
1. Online Application Service Provider (ASP)
• Requires “thin client technology”, meaning that is
accessed through the simple use of a browser
• Doesn’t require user software, user server, or user-
provided IT support
 Online Qualitative Research
• Bulletin Boards
– Midway on a continuum that extends between in-
depth personal interviews and focus groups
– Advantages:
• Participants can be recruited from a broad geographic area
• Participants are able to provide feedback at their own
convenience
• Participants are able to spend time that they require to
provide thoughtful comments
• Participants are allowed to start and stop their participation
so that they can carry out other activities including
experimenting suggested products
QUALTALK
 Online Focus Groups
• Disadvantages:
– They cannot incorporate taste, smell, touch, sound
and sight into the setting
– Difficult to pick up on non-verbal components
• Advantages:
– Flexibility of scheduling and format
– Convenience of office or home access
– Geographical dispersal of participants for a more
representative or more targeted group
– Streaming video for presenting points of discussion
– Remote and on-demand access for a client from
anyplace in the world
Anatomy of an Online Focus Group
• Screeners, Recruitment and Virtual
Facilities
• Invitation and Preparations
• Preparation for Groups
• Show rates and Selecting Final
Respondents
• Moderating
• Transcripts, Analysis and Reporting