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Chapter 14: Problem 68

Today, most consumer marketing surveys are conducted by telephone. In selecting a sample of households that are representative of all the households in a given geographical area, the two basic techniques used are (1) randomly selecting telephone numbers to call from the local telephone directory or directories and (2) using a computer to randomly generate seven-digit numbers to try that are compatible with the local phone numbers. (a) Briefly discuss the advantages and disadvantages of each technique. In your opinion, which of the two will produce the more reliable data? Explain. (b) Suppose that you are trying to market burglar alarms in New York City. Which of the two techniques for selecting the sample would you use? Explain your reasons.

Short Answer

Expert verified
The choice of technique depends on the specifics of the target market and goals of the survey. The first technique may produce more reliable data if the telephone directory comprehensively lists the households in the area. The second technique may be more effective for diverse and large areas, such as New York City, where not all households may be listed in a telephone directory.

Step by step solution

01

Evaluate advantages and disadvantages of each technique

List down the possible advantages and disadvantages of each technique. For instance, Technique 1, or using the local telephone directory, has the advantage of reaching a concrete set of households within the geographical area. However, it may exclude households without a listing in the directory. Technique 2, or using a computer to randomly generate seven-digit numbers, can potentially reach all households with a phone line. However, it may also call invalid numbers.
02

Determine the more reliable data

Analyze each technique in terms of data reliability. This can done by looking at the potential for bias in each technique. For instance, technique 1 might be more reliable if listed telephone households are more likely representative of all households. Conversely, technique 2 might be more reliable if the likelihood of the generated number being a household's is equally likely for all households.
03

Choose a technique for marketing burglar alarms in New York City

Consider the households you want to reach in New York City. Is a majority of your target market likely to be listed in a telephone directory, or could they also be reached by a randomly generated number? Consider factors like the size of the city, the representation of households in directories, and the likelihood of reaching the right demographic with each technique.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Random Digit Dialing
Random digit dialing (RDD) is a technique used to create a robust sample for surveys by selecting random telephone numbers. Imagine a computer generating a random string of digits that match the format of local phone numbers. This approach potentially allows researchers access to a wide variety of household types.

### Benefits of Random Digit Dialing - It increases the chance of calling unlisted numbers, potentially reaching more representative samples.
- Can lead to a large variety of respondents, which is key for diverse data.

### Challenges with Random Digit Dialing - This method can lead to calling numbers that do not exist, resulting in wasted time.
- It may involve dialing business lines or fax machines, which could skew data.
Overall, while RDD broadens the potential reach, it also requires systematic validation to ensure the numbers dialed are indeed part of your target demographic.
Telephone Survey
Telephone surveys remain a critical tool in collecting data directly from individuals. They involve reaching out to potential respondents via phone calls to gather information or opinions.

### Key Characteristics of Telephone Surveys - They allow personal interaction, enabling clarification and immediate feedback.
- Generally faster to conduct than mail surveys, leading to quicker data collection and analysis.

### Limitations of Telephone Surveys - Certain populations, like younger demographics, may be less likely to answer calls.
- There's a risk of low participation rates due to the increase in caller ID screening.
Despite some drawbacks, telephone surveys offer a direct line to obtaining consumer insights, valuable for accurate and timely marketing research.
Marketing Research
Marketing research is a systematic process that helps businesses understand their market environment. It involves examining consumer preferences, buying habits, and demographic information.

### Purpose of Marketing Research - To identify opportunities for business growth and consumer needs.
- To minimize investment risk by understanding industry trends and consumer expectations. Effective marketing research equips companies with knowledge critical in developing strategies for product development and competitive analysis.
Consumer Surveys
Consumer surveys are tools businesses use to gather data on consumer preferences, satisfaction, and behaviors. They often form part of broader marketing research strategies.

### Advantages of Consumer Surveys - Provide direct input from the consumer, offering insights into their buying behavior.
- Can cover a wide variety of topics, from product feedback to service evaluation.
### Conducting Effective Consumer Surveys - Ensure clear and unbiased questions to obtain accurate data.
- Choose an appropriate method, such as online, paper, or telephone, based on the target demographic.
Ultimately, consumer surveys are integral in shaping future marketing and product development initiatives, ensuring they match consumer needs and expectations.

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Most popular questions from this chapter

Refer to a study on the effectiveness of an HPV (human papilloma virus) vaccine conducted between October 1998 and November \(1999 .\) HPV is the most common sexually transmitted infection-more than 20 million Americans are infected with HPV-but most HPV infections are benign, and in most cases infected individuals are not even aware they are infected. (On the other hand, some HPV infections can lead to cervical cancer in women.) The researchers recruited 2392 women from 16 different centers across the United States to participate in the study through advertisements on college campuses and in the surrounding communities. To be eligible to participate in the study, the subjects had to meet the following criteria: (1) be a female between 16 and 23 years of age, (2) not be pregnant, (3) have no prior abnormal Pap smears, and (4) report to have had sexual relations with no more than five men. At each center, half of the participants were randomly selected to receive the HPV vaccine, and the other half received a placebo injection. After 17.4 months, the incidence of HPV infection was 3.8 per 100 woman-years at risk in the placebo group and 0 per 100 woman-years at risk in the vaccine group. In addition, all nine cases of HPV-related cervical precancerous growths occurred among the placebo recipients. (a) Describe as specifically as you can the target population for the study. (b) Describe the sampling frame for the study.

Refer to the following story: The city of Cleansburg has 8325 registered voters. There is an election for mayor of Cleansburg, and there are three candidates for the position: Smith, Jones, and Brown. The day before the election a telephone poll of 680 randomly chosen registered voters produced the following results: 306 people surveyed indicated that they would vote for Smith, 272 indicated that they would vote for Jones and 102 indicated that they would vote for Brown. Do you think that the sampling error in this example was due primarily to sampling bias or to chance? Explain your answer

Question order bias. In July \(1999,\) a Gallup poll of 1061 people asked the following two questions: As you may know, former Major League Baseball player Pete Rose is ineligible for baseball's Hall of Fame because of charges that he gambled on baseball games. Do you think he should or should not be eligible for admission to the Hall of Fame? As you may know, former Major League Baseball player Shoeless Joe Jackson is ineligible for baseball's Hall of Fame because of charges that he took money from gamblers in exchange for fixing the 1919 World Series. Do you think he should or should not be eligible for admission to the Hall of Fame? The order in which the questions were asked was random: Approximately half of the people polled were asked about Rose first and Jackson second; the other half were asked about Jackson first and Rose second. When the order of the questions was Rose first and Jackson second, \(64 \%\) of the respondents said that Rose should be eligible for admission to the Hall of Fame and \(33 \%\) said that Jackson should be eligible for admission to the Hall of Fame. When the order of the questions was Jackson first and Rose second, \(52 \%\) said that Rose should be eligible for admission to the Hall of Fame and \(45 \%\) said that Jackson should be eligible for admission to the Hall of Fame. Explain why you think each player's support for eligibility was less (by \(12 \%\) in each case) when the player was second in the order of the questions.

Refer to a landmark study conducted in 1896 in Denmark by Dr. Johannes Fibiger, who went on to receive the Nobel Prize in Medicine in \(1926 .\) The purpose of the study was to determine the effectiveness of a new serum for treating diphtheria, a common and often deadly respiratory disease in those days. Fibiger conducted his study over a one-year period (May 1896-April 1897) in one particular Copenhagen hospital. New diphtheria patients admitted to the hospital received different treatments based on the day of admission. In one set of days (call them "even" days for convenience), the patients were treated with the new serum daily and received the standard treatment. Patients admitted on alternate days (the "odd" days) received just the standard treatment. Over the one-year period of the study, eight of the 239 patients admitted on the "even" days and treated with the serum died, whereas 30 of the 245 patients admitted on the "odd" days died. (a) Describe as specifically as you can the target population for Fibiger's study. (b) Describe the sampling frame for the study.

Refer to a clinical trial named APPROVe designed to determine whether Vioxx, a medication used for \(a r\) thritis and acute pain, was effective in preventing the recurrence of colorectal polyps in patients with a history of colorectal adenomas. APPROVe was conducted between 2002 and 2003 and involved 2586 participants, all of whom had a history of colorectal adenomas. The participants were randomly divided into two groups: 1287 were given 25 milligrams of Vioxx daily for the duration of the clinical trial (originally intended to last three years), and 1299 patients were given a placebo. Neither the participants nor the doctors involved in the clinical trial knew who was in which group. During the trial, 72 of the participants had cardiovascular events (mostly heart attacks or strokes). Later it was found that 46 of these people were from the group taking the Vioxx and only 26 were from the group taking the placebo. Based on these results, the clinical trial was stopped in 2003 and Vioxx was taken off the market in 2004. Describe as specifically as you can the target population for APPROVe
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