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ROLE OF MARKETING RESEARCH SYSTEM IN
ORGANIZATIONAL DECISION MAKING
(A CASE STUDY OF VITAFOAM NIGERIA PLC)
BY
OGUNSADE, OLAJIDE SUNDAY
BEING A PROJECT SUBMITTED TO
DEPARTMENT OF MANAGEMENT SCIENCE
FACULTY OF ENGINEERING AND TECHNOLOGY
LADOKE AKINTOLA UNIVERSITY OF TECHNOLOGY
OGBOMOSO, NIGERIA
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR
OF TECHNOLOGY (B.TECH) DEGREE IN ACCOUNTING
DECEMBER, 2009
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY.
The fact that transformation is anticipated in taste, style, and desire for
different things bring out the essential factor of the need for continuous
research in getting information which are use for decision making in an
organization (Homburg and Pflesser, 2000). Marketing Research System (MRS)
is one of the components of a modern Marketing Information System (MIS).
Other component includes: Internal Information System, Marketing
Intelligence, and Decision Support Systems. Marketing Research gathers
information not available through the other components and is conducted on
a project basis as opposed to an on going basis (Kotler, 1997). The role of
marketing research system is to provide information that facilitates marketing
decisions. It helps organizations to identify consumer needs and wants, so that
such organizations can develop and promote products more successfully
(Brett, 2008).
Such research also provides the information upon which important
advertising and marketing decisions are based. Meanwhile, the important of
this role cannot be overstated; it is the raison d’ etre (purpose) for marketing
research. Without marketing research system, it is hard, if not impossible for
management to make sound marketing decisions or to implement properly the
marketing concept (Burns and Bush, 1999).
As incomes increase and buyers become more selective, sellers need better
information about how buyers respond to different products and appeals. As
sellers use more complex marketing approaches and face more competition,
they need information on the effectiveness of their marketing tools. So in
today’s rapidly changing environments, marketing managers need up-to-date
information to make timely decisions (Kotler et al, 1999). John Neisbitts (1984)
in his statement suggested that "the world is undergoing a mega shift, from an
industrial to an information based economy ". Organizations have successful
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market histories because marketers have correctly "heard" the consumers’
wants and needs and conceived a product (or service) price, promotion and
distribution method that satisfied those wants and needs. This may sound
rather simple, but many companies go out of business or experience product
failures each year. Therefore, businesses achieve success when the marketing
managers access and then apply the right information.
Moreover, it is agreed that there is a lot of disorder in the marketplace,
but there is a general believe that the people who are going to succeed in the
years coming are marketers who are innovative i.e. groundbreaking but have
apparent impact with the consumers and that is the competition. Thus it is
marketers with high-quality inventions that will have something different and
unique to compete for in the market (Roger, 2000).
Therefore, organizations have got to step up their game in terms of
creativity and innovations because the marketing environment is changing at
an accelerating rate so the need for real time marketing research system is
greater than at any in the past (Kotler, 1997). The shifts are dramatic: from
local to national to Global marketing, from buyer needs to buyer wants, from
price to non-price competition. As organizations expand their geographical
market coverage, their managers need more information more quickly. As
incomes improve, consumer/buyers responses to different features, styles,
tastes, and other attributes, sellers must turn to marketing research (Kotler,
1997).
As sellers increase their use of branding, product modification and
differentiation, advertising and sales promotion, they require information on
the effectiveness of these marketing tools. Good marketing research is
characterized by the scientific method, creativity, multiple research methods,
accurate model building, cost benefit analysis, healthy skepticism (doubt) and
an ethical focus (Kotler, 1997).
However, according to the Nigerian Minister of Commerce and Industry,
Chief Achike Udenwa, when he was speaking about the Nigeria consumers that
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will be ranked among world’s best by 2020, he said, in a country where
majority of the consumer population is ignorant, uneducated and passive,
concerted efforts must be made to educate and protect their rights. He stated
that organizations had failed to take into consideration the interest of
consumers when designing and developing social responsibility initiatives. To
address this problem, Chief Udenwa mandated all producers in the country to
devote a fraction of their annual profits to strengthening the regime of
consumer protection. The minister also said "there are situations where
organizations whose activities are directly sustained by consuming public to
undertake a social responsibility initiatives all round the year without doing
anything to better the lots of consumers," a situation that is absolutely
unacceptable (Tribune Newspaper, 2009).
1.2 STATEMENT OF THE PROBLEM.
In today’s information-based society, organizations with superior
information enjoy a competitive advantage. For the time being, there are still
organizations that cannot choose its market better, develop better offerings,
protect their consumers and execute better marketing planning in our society.
Take for example; some goods that an organization is being offered for sale in the
marketplace should not pose an undue risk of physical harms to consumers or
their families.
Similarly, it is very obvious that organizations cannot provide the information
needed at a particular point in time due to lack of marketing research system or
limitation in the use of the one available. For instance, a brand manager of a
particular organization might want to know how much competitors will change
their advertising budgets next year and how these changes will affect organization
market years.
Meanwhile, inadequate organization and distribution of a continuous flow of
information from the company to its marketing managers also poses a greater
problem for management.
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It is imperative therefore to examine how an organization can effectively
exploit its marketing research system for the acquisition and utilization of
relevant information in its decision making process.
1.3 OBJECTIVES OF THE STUDY.
This research study will focus primarily on examining the role of marketing
research system in an organizational decision making. The specific objectives
will be:
• To identify the relationship between marketing research and information.
• To examine the role of information in the marketing decision making
process.
• To ascertain the influence of marketing research system on organizational
performance.
• To determine the relationship between marketing research and consumer
protection
• To identify the factors affecting effective marketing research system in an
organization.
1.3 RESEARCH QUESTIONS.
1. What are the relationship between marketing research and information?
2.What are the roles of information in the marketing decision making process?
3.How can the influence of marketing research system on organizational
performance be ascertained?
4.What are the relationship between marketing research and consumer
protection?
5.What are the factors affecting effective marketing research system in an
organization?
1.5 RESEARCH HYPOTHESIS
From the research questions, the following hypotheses will be tested in this
study:
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H0: Information does not play a significant role in marketing decision
making.
H1: Information plays a significant role in marketing decision making.
H0: Marketing research has no significant impact on organizational
performance.
H1: Marketing research has significant impact on organizational
performance.
1.6 SIGNIFICANCE OF THE STUDY.
Since market research system is essential to optimize the potential use of
commercial items, commercial services and items that are not develop for agency
needs, this study would therefore be of great help to businessmen, organizations,
and the governments. The research work will throw more light in the concept of
marketing research and the role it plays in the decision making process. It will
enable organizations to know whether there is need for research as far as
decision making process is concerned.
More so, it will enlighten the government that the success attained in the
decision making process by marketing research system could be well applied in
government policies.
1.7 SCOPE OF THE STUDY.
In this study, the general focus is on the role of marketing research in an
organizational decision making and how it influences organizational
performance in the area of sales volume and profitability.
This study will also discuss how consumers are being protected in the
modern marketing through the application of marketing research system.
1.8 LIMITATION OF THE STUDY.
The limitation of this study is that the researcher could not obtain
adequate information as the organization found it difficult to disclose
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information about their marketing activities. They are cautious of releasing
information because of their competitors.
Time is another limitation imposed on the study because the researcher
carried out the study within very limited time frame.
1.9 DEFINITION OF TERMS.
INFORMATION: The collected facts and data about a specific project or research.
DECISION MAKING: This is a selection of a particular alternative from a set of two
or more visible alternative courses of action for resolving a particular problem.
ORGANIZATION: A group of people identified by a shared interest or purpose,
e.g. a business.
RESEARCH: Methodical investigation into a subject in order to discover facts, to
establish or revise a theory, or to develop a plan of action based on the facts
discovered.
MARKET: This can be defined as any established operating means or exchange
for business dealings between buyers and sellers. As opposed to simple setting, a
market implies trade that is transacted with some regularity and regulation, and
in which a certain amount of competition is involved.
MACROMARKETING: The study of the aggregate flow of a nation’s goods and
services to benefit society.
MARKET DEVELOPMENT: A strategy of selling existing products to new target
markets.
MARKET GROWTH RATE: The annual rate of growth of a specific market or
industry; often used as the vertical axis in business portfolio analysis.
MARKETING POTENTIAL: Maximum total sales of a product by all firms to a
segment under specified environmental conditions and marketing efforts; also
called industry potential.
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MARKETING SEGMENTATION: The process of forming submarkets, or market
segments, by either aggregating individual potential buyers or subdividing large
markets.
MARKET SEGMENTS: The groups that result from the process of market
segmentation; these groups ideally (1) have common needs and (2) will respond
similarly to a marketing action.
MARKET SHARE: The ratio of sales revenue of the firm to the total sales revenue
of all firms in the industry, including the firm itself.
MARKETING TESTING STAGE: A phase of the new product process, in which
prospective consumers are exposed to actual products under realize purchase
conditions to see if they will buy.
MARKETING: The process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods and services to create exchange that
satisfy individual and organizational objectives.
MARKETING CHANNEL: People and firms involved in the process of making a
product or service available for use or consumption by consumers or industrial
users.
MARKETING CONCEPT: The idea that an organization should seek to satisfy the
wants of customers while also trying to achieve the organization’s goals.
MARKETING DECISION SUPPORTS SYSTEM (MDDS): A computerized method of
providing timely, accurate information to improve marketing decisions.
MARKETING MIX: A marketing manager’s controllable factors: product, price,
promotion, and place.
MARKETING MODIFICATIONS: Attempts to increase product usage by creating
new use situations, finding new customers, or altering the marketing mix.
MARKETING PLAN: A written statement identifying the target market, specific
marketing goals, the budget, and timing for the marketing program.
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MARKETING PROGRAM: A plan integrates the marketing mix to provide a
product, service, or idea to consumers.
MARKETING RESEARCH SYSTEM (MRS): The process of defining a marketing
problem and then systematically collecting and analyzing information to
recommend actions to improve an organization’s marketing activities. It can also
be define as the function that links the consumer, customer and public to the
marketer through information- information used to identify and define marketing
opportunities and problems; to generate, refine and evaluate marketing actions;
to monitor marketing performance and to improve understanding of the
marketing process.
MARKETING STRATEGY: The marketing logic by which the business unit hopes to
achieve its marketing objectives.
MARKETING TACTICS: The detailed day-to-day operational decisions essentials to
the overall success of marketing strategies.
MICROMAKETING: The marketing activities of an individual organization.
MARKETING INFORMATION SYSTEM: People, equipment and procedures
together, sort, analyze, evaluate, and distribute needed, timely, and accurate
information to marketing decision makers.
MARKETING INTELLIGENCE: This is everyday information about developments in
the marketing environment that helps managers prepare and adjust marketing
plans.
MARKETING MANAGEMENT: The analysis, planning, implementation, and
control of programmes designed to create, build, and maintain beneficial
exchanges with target buyers for the purpose of achieving organizational
objectives.
PRODUCT MODIFICATION: It is a strategy which entails changing product
characteristics such as quality, features, or styles so as to attract users and usage.
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1.10 HISTORY OF VITAFOAM PLC
Vitafoam Nigeria Plc is a big manufacturing industry in Nigeria that has its
head office located in Oba Akran Avenue, Ikeja, Lagos State with factories in
different cities viz: Ikeja, Kano, Jos, Aba, and Sapele. In other countries, Ghana,
Sieria Leone. Vitafoam Nigeria Plc was incorporated on 4th
August, 1962 and listed
on the floor of the Nigeria Stock Exchange in 1978. Vitafoam successful brands
remain household names in the country. The organization was the first foam
manufacturing industry in Nigeria to subject its quality system to the quality
management system championed by the Standards Organization of Nigeria (SON).
The NIS ISO 9002 certificate was obtained in 2001 and upgraded to NIS ISO 9001:
2001 in 2004.
Vitafoam Nigeria Plc is Nigeria’s leading manufacturer of flexible reconstituted
and rigid foam products. It has the largest foam manufacturing and distribution
network which facilitates just-in-time delivery of its products throughout Nigeria.
The Organization’s vision "to be the foam manufacturer of first choice" is being
achieved through its mission of continuously improving the organization’s policy
and determined by a competent and dynamic board, a mix of executive and non-
executive directors who are experts in their own fields. The board is supported by
a robust management team.
The goals and objectives of the company is to continuously improve the
quality of its products and services through operating practices that conform to
international standard, thereby maintaining her leadership position in the foam
and allied product subsector of the Nigeria manufacturing industry. It endeavour
to build a dedicated workforce that is adequately rewarded while consistently
posting acceptable returns to her stakeholders and remain at all times a
responsible corporate citizen.
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CHAPTER TWO
LITERATURE REVIEW
2.1 MARKETING RESEARCH SYSTEM
Marketing research is a pivotal part of the marketing process. By referring to studies
of prospective buyers’ needs, wants, and tastes, providers of goods and services can
tailor their marketing programs (Brett, 2008). The results of marketing studies suggest
to sellers not only what they should sell or provide but also where to offer particular
goods and services, how to advertise them, and how to set prices (Brett, 2008).
Before one can explain marketing research systems, the term system, research, and
marketing must briefly be defined. A system is a combination or arrangement of parts to
form an integrated whole. A system includes an orderly arrangement according to some
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common principles or rules. A system is a plan or method of doing something (O’
Brien, 1999).The study of system is not new. The Egyptian architects who built the
pyramids relied on a system of measurements for construction of the pyramids.
Phoenician astronomers studied the system of the stars and predicted future star
positions. A system is a scientific method of inquiry, that is, observation, the
formulation of an idea, the testing of that idea, and the application of the results (O’
Brien, 1999). The scientific method of problem solving is systems analysis in its
broadest sense. Data are facts and figures. However, data have no value until they are
compiled into a system and can provide information for decision making (O’ Brien,
1999).
According to Encarta dictionary, research can be defined as a methodical investigation
into a subject in order to discover facts, to establish or revise a theory, or to develop a
plan of action based on the facts discovered. Research may be characterized as either
applied or basic. By applied research, we mean that the research is undertaken for the
sake of extending knowledge. This does not mean that the basic research is not valuable.
In fact, basic research often leads to major scientific break through that may then be
used to solve specific problems (Burns and Bush, 1999). Encarta dictionary define
marketing as a business activity of presenting products or services in such a way as to
make them desirable.
The American Marketing Association (AMA) defines marketing as the performance of
all activities necessary for the conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual and organizational
objectives. Ralph (1996) said if an organization/management has knowledge of the
planning, organizing, directing, and controlling of the business, its decisions can be
made on the basis of facts, and decisions are usually more accurate and timely. This
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implies that managers use marketing research operations for all levels of management,
including planning, organizing, directing, and controlling.
Marketing can also be defined as the process by which a product or service
originates and is then priced, promoted, and distributed to consumers. In large
organization the principal marketing function precede the manufacture of a product.
They involve marketing research and product development, design and testing (Brett,
2008).
Marketing concentrates primarily on the buyers, or consumers. After determining
the consumers’ needs and desires, marketers develop strategies that are designed to
educate consumers about a product’s most important features, persuade them to buy it,
and then to enhance their satisfaction with the purchase (Brett, 2008). Where marketing
once stopped with the sale, today businesses believe that it is more profitable to sell to
existing customers than to new ones. As a result, marketing now also involves finding
ways to turn one-time purchasers into life long customers (Brett, 2008).
Marketing includes planning, organizing, directing, and controlling the decision
making regarding product lines, pricing, promotion, and servicing. In most of these
areas marketing has overall authority; in others, as in product-line development, its
function is primarily advisory (Brett, 2008). In addition, the marketing department of a
business organization is responsible for the physical distribution of the products,
determining the channels of distribution that will be used and supervising the profitable
flow of goods from the factory or ware house (Brett, 2008).
Marketing research systems are those systems that allow managers to make decisions
for the successful operation of businesses. The decision makers usually rely on
marketing research to aid them in making decision. Marketing research is the function
that allows an organization to "hear the voice" of the consumer; it brings consumer
14
information to decision makers (Burns and Bush, 1999). Marketing research system
consists of resources, people, and procedures used in the modern business organizations.
The term MRS stands for marketing research system. MRS is the process by which an
organization research unit modify the marketplace through the gathering and analysis of
information which are used for decision making in order to satisfy or meet the needs,
wants, and desires of the consumers (Paul, 2003). MRS also refers to the organization
that develops and maintains most of all the research systems in the enterprise so that
managers can make decisions (Richard, 2000).
Marketing managers usually follow two basic steps which are:
1) They endorse a philosophy called the marketing concept and
2) They develop marketing strategies that satisfy consumers. But, marketers cannot be
successful without having information about the marketing environment and the
competitors.
Marketing Concept: The Marketing concept is a philosophy that holds that the key to
achieving organizational goals consists of determining the needs and wants of target
market and delivering the desired satisfactions more effectively and efficiently than
competitor do. The bottom line is that the focus of the entire firm is on satisfying
consumers’ wants and needs (Burns and Bush, 1999). Time has proven that such a
philosophy is superior to one in which organization management focuses on production,
the product itself, or some promotional gimmick. If you satisfy/protect consumers, they
will seek to do business with that particular organization (Burns and Bush, 1999). But
how does an organization know what consumers wants and needs if they are to truly
endorse marketing concept. However, having the right philosophy is only part of the
battle (Sam and Chris). Marketers must implement plans called marketing strategies that
actually satisfy consumers’ wants and needs (Burns and Bush, 1999).
15
Marketing Strategy: Marketing strategy consists of selecting a segment of the market
as the company’s target market and designing the proper "mix" of product/service,
price, promotion, and distribution system to meet the wants and needs of the consumers
within the target market (Burns and Bush, 1999). According to Eric, (2008)
informedness, hyperdifferentiation technologies, resonance marketing collectively
changes all aspects of the marketing strategy of an organization from pricing to product
mix and from manufacturing to marketing, sales and distribution. Indeed, this changes
all of the four Ps of marketing: price, product, promotion, and physical distribution.
Marketing managers need objective, accurate, and current information in order to
develop marketing strategies that will work. Even when marketers have the right
information to implement an effective marketing strategy, they must be constantly
aware of changing environments. This is because marketing strategies is highly
dependent upon the economic environment (Burns and Bush, 1999). A change in the
environment may alter the appeal of a marketing strategy to consumers (Regis, 2003)
and (Robert et al, 1997). Since environments are constantly changing, marketers’ needs
for information are never ending. Many organizations watch Federal Reserve
Statements very closely, knowing that a change in the interest rate can have a significant
impact on their business (Burns and Bush, 1999).
Marketers must also keep tabs on the political and legal environment as well as the
technological environment because; changes in them will affect business strategies. The
telecommunication Act of 1996 caused sweeping changes in the political and legal
environment of the communications industry. As a result of the deregulation,
broadcasters, cable TV operators, and local and long-distance phone companies are free
to enter one another’s market. As carriers begin to market bundles of communication
services, they will require information to tailor their products to meet consumer needs
(Burns and Bush, 1999).
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The rate of change in the technological environment is unprecedented in the
history of the world. The popularity of the World Wide Web has spurred demand for
digital cameras, particularly for online images. To be competitive, all organizations
must keep abreast of information about technological changes that may impact their
productivity and, in some instances, the ability to survive (Burns and Bush, 1999). The
technological environment has blossomed into a resource for transferring critical
information as well as lucrative arena for conducting business. Marketers use the
electronic environment as a way to gather, communicate with consumers, and learn
about consumers (Burns and Bush, 1999).
Moreover, the point here is not to discuss all of the forms of environmental change;
rather, it is to note that marketers must develop and implement strategies, and those
17
strategies must constantly be revised as required by changing environments. This means
marketers constantly need information – they need information provided by marketing
research to make quick decisions in order to solve that particular problem the company
is facing at that moment (Burns and Bush, 1999).
Marketing research process consists of defining the problem and research
objective, developing the research plan, collecting the information, analyzing the
information, and presenting the findings to management. In conducting research,
organizations must decide whether to collect their own data or use the already
existing data (James et al, 2000). They must also decide which research approach
(observational, focus-groups, survey, behavioural data or experimental) and which
research instrument (questionnaire or mechanical instruments) to use. In addition,
they must decide on a sampling plan and contact methods. One major reason for
undertaking marketing research is to discover market opportunities (Kevin, 2000).
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Once the research is complete, the organization must carefully evaluate its
opportunities and decides which markets to enter (James et al, 2000).
Some organizations have developed marketing research information that provides
management with rapid and incredible detail about consumer/buyer wants, preferences
and behaviours (Patricia, 2001). It all comes down to this essential point, understanding
consumer motivation and behaviour is not an option- it is an absolute necessity for
competitive survival (James et al, 2000). The consumer is not an unthinking pawn to be
manipulated at will by the commercial persuader and, as a rule, he or she is purposeful
and goal oriented (James et al, 2000). Products and services are accepted and rejected
on the basis of the extent to which they are perceived as relevant to needs and style
(James et al, 2000). The individual is fully capable of ignoring everything the marketer
has to say, and this ability is used constantly in consumer decisions. Meanwhile
consumer is in control of the situation, and hence is sovereign (independent). Marketers
succeed when the products or services offer real benefits that meet the consumers’
needs and desires (James et al, 2000).
2.2 HISTORICAL PERSPECTIVES OF MARKETING RESEARCH
During the past decade, marketing research has received considerable attention from
large organizations. This trend reflects both a long standing neglect of the concept,
(Kohli and Jaworski, 1996) and a wide spread acceptance of its importance (Houston,
1986). Meanwhile, building on the initial research by, among other things, significant
progress has been made in understanding the conceptualization and measurement of
marketing research and evaluating its impact upon business performance. (Deshphande
et al, 1993).
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2.2.1 The Pre-Marketing Research Era
The time period from colonization until the industrial revolution is known as the pre-
marketing research era. The economy was primarily made up of artisans and craftsmen
bartering one good for another. Towns and villages were small and the businesses that
served them were also small. Everyone knew what each craftsman or artisan made
(Burns and Bush, 1999). The significance of this time period is that the craftsmen or
small business owners knew their customers personally. When these conditions exist,
even today, there is little need for formal marketing research studies (Burns and Bush,
1999).
2.2.2 The Early Development Era
A second period of significance occurred between the industrial revolution and about
1920, which we refer to as the early development era. Several important events had
taken place by this time. First, the industrial revolution made an everlasting impact on
mankind (Burns and Bush, 1999). For the first time in the history of the world, we had
the ability to mass produce goods. Second, transportation systems were developed to
move the large quantities of goods streaming forth from the new factories (Burns and
Bush, 1999). The St. Lawrence Seaway was opened, which facilitated water
transportation along an East-West route and connected the great lakes with the Atlantic
(Burns and Bush, 1999). Settlements in the far west developed and grew, and
transportation to these markets was aided by the completion of the transcontinental
railroad in 1869. Third, means of communication also improved with the introduction of
the telegraph in 1844 and the wireless radio in 1906, and literacy levels increased
(Burns and Bush, 1999). Both of these developments in communication and increases in
literacy were important if companies with factories located in one part of the country
were going to advertise their products in distant markets. This meant that business
20
managers were no longer near or acquainted with their customers; they needed
marketing research to tell them about these distant consumers (Burns and Bush, 1999).
2.2.3 The Questionnaire Era
The time period from 1920 to 1940 is called the questionnaire era. Although the
questionnaire survey is said to have first been used in 1824 by some newspaper, and
N.W. Ayres and Company is said to have surveyed grain production in each of the
states in 1897, questionnaire surveys were in limited use until the 1920s. During World
War 1, the military used questionnaires for personnel screening (Burns and Bush, 1999).
This increased familiarity with this research tool led to its use in opinion polls
conducted by magazine publishers. Severe changes in the economy led to increased use
of questionnaires. Therefore, a questionnaire which is still an important tool of
marketing research became prominent during the time period between 1920-1940
(Burns and Bush, 1999).
2.2.4 The Quantitative Era
The time period from 1940 to 1960 is known as quantitative era. Census data and, in
particular, the taking of the censuses of business, led to an interest in statistical analysis.
Marketing research was used to set sales quotas and to determine equitable sales
territories. It was applied to managerial accounting techniques, such as cost analyses, to
determine the costs of distribution (Burns and Bush, 1999). Also, marketing researchers
began to borrow methodological techniques from the social sciences. Sampling theory,
hypothesis testing, and the application of statistical techniques to hypotheses involving
consumers’ behaviour, intentions, and attitudes became part of the marketing research
industry’s tool kit. The study of "why people buy," or motivational research, started
during this time period. For the first time, the marketing researcher was aided in his or
her task of analysis by a new invention – the computer.
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2.2.5 The Organizational Acceptance Era
It wasn’t until about 1960 that marketing research gained real acceptance in business
organizations. The period from 1960-1980 was called the organizational acceptance era.
As the marketing concept was accepted, the marketing research function was
established as a formal part of the organization of the firm (Burns and Bush, 1999). The
number of firms having their own research departments grew rapidly during this time
period. During this era, other changes were taking place. More firms became involved
in international marketing activities requiring management to make decisions about
consumers and competition with which they had little, if any, firsthand experience
(Burns and Bush, 1999). Worldwide communications and innovations in product and
service technologies created a smaller world, but one that was filled with greater
diversity and changing environments. To keep up, firms embraced the concept of the
marketing information system (MIS), of which marketing research is a key component.
Marketing research had not only gained acceptance in the organization but also was
recognized as being a key to understanding distant and fast-changing markets. It was
needed for survival (Burns and Bush, 1999).
2.2.6 The Technological Era
From 1980 to the present is usually called the technological era. Technology has greatly
impacted marketing research. A key catalyst to this change was the development of the
personal computer (PC) during the late 1970s and the many technological applications
that evolved as a result of the PC (Burns and Bush, 1999). Computer-assisted
questionnaire programs were developed that allow researchers to design questionnaires
that can be administered using the computer; touchscreen entries automatically record
data during the interview process. Sophisticated, yet user-friendly software, such as
SPSS, evolved during this period (Burns and Bush, 1999). By now, technological
applications to the marketing research industry are appearing at a rapid rate and will no
doubt continue to significantly impact the industry during the 2000s. Some examples of
22
this new technology include CARD software which refers to computer-aided research
design; software which uses computer technology to design questionnaires and
automatically enter responses into statistical software; software which uses computers to
assist in designing samples and ordering samples online; and software which uses
computers to assist in collecting data such as CATI (Computer-aided personal
interview); or programs designed to collect information from those having computers
such as DBM (Disk-by-mail) or on-line data collection via the Internet. New products
designed to be used in the marketing research industry are being introduced almost daily
(Burns and Bush, 1999).
2.3 THE ROLE OF MARKETING RESEARCH: INFORMATION TO AID
DECISION MAKING.
As it is stated earlier in the introduction, the main role of marketing research is to
provide information that facilitates marketing decisions. According to Burns and Bush
(1999), marketing research can be defined as the process of designing, gathering,
analyzing, and reporting information that may be used to solve a specific marketing
problem. The American Marketing Association (AMA) has defined marketing research
as the function that links the consumer, customer, and public to the marketer through
information – information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process. The first definition
focuses on the steps involved in the process of marketing research; that is gathering,
analyzing, and reporting information. The AMA definition spells out the basic function
as well as the uses of marketing research (Burns and Bush, 1999).
However, because the marketing concept implies that the consumer’s needs should be
fulfilled, the consumer’s voice must be heard within the organization. As the AMA
23
definition states, marketing research provides this important link; the consumer is
‘‘heard’’ through marketing research (Burns and Bush, 1999).
The role of marketing research in an organization is so important that the American
Marketing Association’s definition of marketing research specifies the ways that the
information provided by marketing research may be used. For example, such
information can be used to identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions; monitor marketing performance; and
improve understanding of marketing as a process (Burns and Bush, 1999).
To identify and define marketing opportunities means to define those wants and
needs in the market that are not met by the competitors. Vitafoam Nigeria Plc which is
one of the leading manufacturing company in the foam and allied products sub-sector in
Nigeria have discovered their opportunities in customers’ increasing concerns about
comfort, resilience, durability, and versatility (Burns and Bush, 1999). These
organizations are frequently introducing new foams to the market that are flexible with
medium density, flexible with high density, high quality gauge vinyl, and soft polyester
fibre. Vitafoam Nigeria Plc offers a vast array of high quality mattresses that present the
customer with multiple choices. The core foam ranges from medium to high density
with varied hardness and flexibility.
The covering textile comes either as plain or quilted. In addition, these materials are
available in a large selection of colours and designs. With the use of contour cutting
capabilities, Vitafoam are in a position to design and construct custom-made mattresses,
e.g. circular, multiple-layer, thick or thin mattresses. These are market opportunities not
only for sleeping purposes but also for mattresses that are comfortable and convenient
to sleep on (Burns and Bush, 1999).
Many organizations today are searching for opportunities along the ‘‘information
highway’’ in healthcare, manufacturing, energy, transportation and so on. Marketers
need information to help them identify market opportunities (Burns and Bush, 1999).
24
Opportunities and problems are everywhere but decision makers need information to
help them identify and define them adequately (Burns and Bush, 1999). As the nation as
become more concerned about environmental hazards and the problem with hazardous
waste in landfills, Green Paint & Co. took advantage of this opportunity by developing
paint that could be recycled. Almost every home has several gallons of used paint in the
garage, basement, or storeroom (Burns and Bush, 1999). Eventually, this hazardous
products ends up in a landfill or incinerator. Green Paints & Co has experienced
increased in sales by collecting waste paint and producing Green Paints, a line of 90
percent recycled paints in cans that are themselves recyclable. Many organizations
today are searching for such opportunities, but they need information to identify and
define them adequately (Burns and Bush, 1999).
To generate and refine marketing actions means to determine which plan or
marketing strategy will best meet market opportunities. What combination of the four
Ps [product, price, promotion, and distribution (place)] will best take advantage of an
existing marketing opportunity (Burns and Bush, 1999)? Similarly, Ademola, (2008)
25
stated that the four Ps usually arise from a concept known as "Marketing mix" which is
define as a factor that helps an organization or firm sell its products. It is also refers to
the unique blend of marketing elements designed to meet the needs of the organizations’
target market. More so, the marketing research is used frequently to evaluate the
effectiveness of an organization’s marketing mix. The four elements are normally
distinguished: getting the right product to the market; selling the product at the right
price; ensuring that the promotion is right – that is, advertising and marketing for the
products; and ensuring that the product is distributed to the most convenient place for
customers to buy it.
Moreover, monitoring marketing strategies once they are implemented is a way of
maintaining control over the success of a new product or service. Any control system
requires feedback of information to management. Marketing research brings that
information to management personnel, allowing them to compare actual performance
with desired performance standard (Burns and Bush, 1999).
2.4 THE STRUCTURE OF THE MARKETING RESEARCH ORGANIZATION
Part of developing an appreciation of any organization is to understand the structure
of the organization. By structure, we mean the types and characteristics of the firms
making up the organization (Burns and Bush, 1999). In the marketing research industry
we refer to providers of marketing research information as research suppliers. There are
several ways of classifying suppliers. The classification method developed by Naresh
Malholtra, slightly modified for the purpose here. This classification system is shown in
the figure below. As shown in this figure, suppliers may be classified as either internal
or external (Burns and Bush, 1999).
26
2.4.1 Internal Suppliers
This means an entity within the firm supplies marketing research. These firms spend
roughly 1 percent of sales on marketing research, whether it is supplied internally or
externally. Unilever, Kodak, Ford, Vitafoam, Nestle have research departments of their
own. Vitafoam has an in-house research department that constantly monitors consumer
satisfaction and environmental trends. It also provides research support to Vitafoam
advertising agencies (Burns and Bush, 1999).
A firm having its own internal supply of marketing research can elect several
organizing methods to provide the research function. It may (1) have its own formal
departments, (2) have no formal departments but at least a single individual responsible
for marketing research, or it may (3) assign no one responsibility for conducting
marketing research.
2.4.2 External Suppliers
This are outside firms hired to fulfil a firm’s marketing research needs. Marketing
research provides a list of directories useful for finding research firms. Over one-half of
firm’s spending on marketing research goes to pay for the services of external suppliers.
In 1998 the top 50 marketing research firms in the United States had combined revenues
27
of $5.9 billion, up almost 9 percent from 1997 (Burns and Bush, 1999). Interestingly, a
significant percent of these revenues came from work done abroad. This is a definite
indication of the globalization of the marketing research industry. Take for instance,
Toyota Marketing research is a full-service marketing research division and is organized
around four areas: The Toyota customer satisfaction associates offer a standardized
service of measuring and managing customer satisfaction (Burns and Bush, 1999). The
Toyota Training & Development Centre provides training in marketing research for
supplier firms, whether internal or external suppliers. The Toyota Strategic Consulting
Group offers intensive consulting to business management (Burns and Bush, 1999).
2.5 THE MARKETING RESEARCH INDUSTRY PERFORMANCE
Periodically, evaluations are made of the marketing research industry. These studies
have asked buyers of marketing research studies whether the value of the research
performed by the suppliers in the industry is worthwhile. In three separate evaluations,
the basic conclusion is that the industry has performed well but there is room for
improvements. The criticism has focused on the following areas of concern: There is a
lack of creativity, the industry is too survey oriented, the industry does not understand
the real problems that need studying, market researchers show a lack of concern for
respondents, the industry has a cavalier attitude regarding nonresponse error, and the
price of the research is high relative to its value.
2.5.1 Suggested Remedy for the Future: Certification
Although the evaluations of the industry are "good," few would argue that they are
"excellent." Many suggest that the problems are created by a very small minority of
firms, most of which simply are not qualified to deliver quality marketing research
services. There is obviously a concern among buyers and suppliers with the lack of
uniformity in the industry as well (Burns and Bush, 1999). In a study of buyers’ and
suppliers’ perceptions of the research industry, it is found that the key issue in the
28
industry is a lack of uniform quality; there are good suppliers and there are poor
suppliers. To remedy this, some have recommended either a certification program or a
system for auditing marketing research firms (Burns and Bush, 1999).
Some have argued that marketing research attracts practitioners who are not fully
qualified to provide adequate service to buyer firms. There are no formal requirements,
no education level, no degrees, no certificates, no licenses, and no tests of any kind
required to open up a marketing research business (Burns and Bush, 1999). Certainly,
the vast majority of research firms have staffs thoroughly trained in research methods
and have years of excellent performance. However, some say, it is those few firm with
unqualified personnel and management that tarnish industry’s image (Burns and Bush,
1999).
2.6 CHARACTERISTICS OF MARKETING RESEARCH
There are so many characteristics of marketing research but all cannot be discuss
here. In these research works, two will be revealed which include (1) Sometimes
inaccurate and (2) shaped by budget and time constraint (Burns and Bush, 1999).
2.6.1 Sometimes Inaccurate
Unfortunately marketing research results are sometimes inaccurate. This, however,
is not so surprising when we consider that most marketing research seeks to predict
human behaviour. Humans are neither stable nor constant in their attitudes, beliefs, or
behaviours. Consumers are in a constant state of flux—changing brands, store
preferences, fashions, attitudes toward companies, and so on (Burns and Bush, 1999).
This means that it is very difficult to predict consumers’ behaviour with any high degree
of accuracy. For example, Pellyfoam introduced a Baby Cot Mattresses, to compete
with the market leader, Vitafoam. The product failed even though a marketing research
29
firm, meanwhile, Pellyfoam workers had thought that the baby cot mattresses would
surpass Vitafoam’s market share but it’s quite unfortunate that the baby cot mattresses
did not meet the needs, wants, and desire of the consumer because the cot mattresses
which was suppose to be made from medium density flexible foam covered with
colourful polyvinyl chloride (PVC) which is an ideal mattresses for a child’s comfort
and pleasure was made from a high density flexible foam. Of course, everyone is
familiar with the now famous attempt by Coca-Cola to abandon its ‘‘classic’’ Coke in
favour of ‘‘New’’ Coke. Even though New Coke’s formulation was preferred by
consumers in marketing research involving more than 190,000 people, Coke’s research
did not provide a clue that the public would be upset with its decision to replace the old
Coke product with the New Coke. Coca-Cola move hurriedly to put ‘‘Classic Coke’’
back on the shelves (Burns and Bush, 1999).
2.6.2 Shaped by Budget and Time Constraints
Marketing research can be very expensive. It is not uncommon for researchers to
design studies for clients only to have top management ask for the same study at half the
proposed cost. Time constraints arise because companies often seek marketing input
after their product is already performing poorly in the market. Such companies want
immediate results (Burns and Bush, 1999).
Operating under budget and time constraints, marketing researchers realize there
must be trade-offs if the project is to be completed using the money and time available.
How is this accomplished? What, if anything, is compromised? Obviously, t is easier to
make budget and time decisions regarding projects that fall at either end of the
‘‘importance’’ spectrum—those that are very unimportant or those that are extremely
important (Burns and Bush, 1999). But what about the projects that fall in the middle?
In such cases, the company’s philosophy regarding the value and use of marketing
research plays a role in deciding whether to use marketing research and how much
money and time to allocate to it. In other words, if the company places a high value on
30
marketing information, then it will pursue it; if it does not, it will not pursue it (Burns
and Bush, 1999).
2.7 THE FUTURE OF MARKETING RESEARCH
Some experts in the industry believe that marketing research, as we know it today, is
due to undergo vast changes in the near future. They base this belief on the notion that
technological advances in information processing have greatly increased the availability
and applicability of information to the point that managers will find less need to conduct
traditional ‘‘projects’’ or ‘‘ad hoc studies’’ (Burns and Bush, 1999). The New
Marketing Research Systems portrays the future (indeed, the present!) world of
information technology as one that allows managers access to a continuous flow of real-
world data (i.e. scanning data), augmented by embedded ‘‘experiments’’ illustrating
consumer reactions to price changes, TV ads, and in-store point-of-purchase materials
(i.e., single source data) (Burns and Bush, 1999).
In addition, new technology allows managers to determine the characteristics of
those purchasing their products/services and then to target individuals or small
‘‘microtargets’’ of consumers, with marketing strategies; for instance, by using
databases and geodemographic programs (Burns and Bush, 1999). As decision makers
are armed with such information, it is belief that traditional marketing research studies
will be outdated. Others argue that there are pitfalls in the ‘‘new’’ information systems
and that there is room for traditional marketing research studies and these new systems
to coexists as the two are complementary (Burns and Bush, 1999). So, our conclusion is
that technology is having a tremendous impact on marketing research and the types of
marketing research studies will change as technological improvements occur.
Furthermore, we still see a world full of managers who need a lot of information to help
31
them make their decisions. The future for marketing research is bright (Burns and Bush,
1999).
2.8 TAILORING THE PRODUCT
Merchandise that is generally similar in style or design, but may vary in such
elements as size, price, and quality is collectively known as a Product line (Brett,
2008). Merchandise according to Encarta dictionary simply means goods bought and
sold for profit. Most marketers believe that product lines must be closely correlated with
consumer needs and wants (Brett, 2008). Organization tends to change product items
and lines after a period of time to gain a competitive advantage, to respond to changes
in the economic climate, or to increase sales by encouraging consumers to buy new
model. For example, if the economy weakens, a manufacturer might use cheaper parts
to make a product more affordable (Brett, 2008).
Sometimes, manufacturers will alter the style rather than the quality of the
commodity e.g. the appearance or functionality of an automobile might be altered. The
practise of changing the appearance of goods or introducing inferior parts or poor
workmanship in order to motivate consumers to replace products is known as Planned
Obsolescence (Brett, 2008). Meanwhile, some people object that this practise leads to
waste or can be unethical (Brett, 2008). The popularity of all products eventually wanes
(diminish). In fact, successful products go through what is called a product life cycle,
which describes the course of a product’s sales from its introduction and growth through
maturity and decline (Brett, 2008). Because products are always aging and sales of even
the most successful products eventually decline, firms must continually develop and
introduce new things (Brett, 2008).
32
However, marketing research begins with the analysis of consumer behaviour, which
is define as those acts of individuals directly involved in obtaining, using and disposing
of economic goods and services, including the decision processes that precede and
determine these acts (James et al, 2000).
2.9 CHANGES IN CONSUMER BEHAVIOUR
Information availability has increased consumers’ informedness the degree to which
they know what is available in the marketplace, with precisely which attributes and at
precisely what price (Eric, 2008). This informedness has altered the demand side of
market behaviours: customers now discount more heavily when comparable products
are available from competitors and when products do not meet their wants, needs,
cravings, and longings, but they no longer discount as heavily when purchasing
unfamiliar products (Eric, 2008). Changes in the demand side are producing comparable
changes in the supply side: organization earn less than their expectations when
competing in traditional mass-market fat spots, while earning far more than previously
when entering newly created resonance marketing sweet spots (Eric, 2008). We trace
the impact of hyperdifferentiation and resonance marketing on strategy, with a clear
progression from a limited number of fat spots, through reliance on line extensions and
ultimately to fully differentiated market sweet spots (Eric, 2008).
Mass-market fat spots is a situation whereby customers could not learn about the
marketplace, producers could not know their customers, and the cost of trying to
provide a complex range of numerous products and services was extremely
unfavourable (Eric, 2008). Meanwhile, Mass-market sweet spots is a situation whereby
customers could learn about the marketplace, producers could know their customers,
and the cost of trying to provide a complex range of numerous products and services
was extremely advantageous (Eric, 2008).
33
The most obvious change in the marketplace is the tremendous increase in product
variety (hyperdifferentiation), enabled by changes both in manufacturing technologies
and in distribution (Eric, 2008). As importantly, the change in product variety is
profitable because of changes in consumer behaviour (resonance marketing), as
consumers select exactly what they want at prices that reflect how well their selections
match their wants and needs, cravings and longings (Eric, 2008).Resonance marketing is
more than just trading up, and includes trading up, trading down, and trading out,
simultaneously, in a single consumer. Trading up of course occurs when a customer moves
from a Chevy to a Caddy, or switches to first class air travel. Trading down occurs when a
customer switches to coach air travel on a discount airline, or to a less expensive hotel. Trading
out occurs when a customer switches from candy bars to power bars, or from a lager to a
heavily hopped craft brewed American Pale Ale. Not surprisingly, a customer may exhibit all
three behaviours, trading up in some categories, trading down in other categories, and trading
out in still others (Eric, 2008). While hyperdifferentiation and resonance activities
include the long tail effect, in which far more choice is available to consumers. But the
changes in marketing represent significantly more than simply the long tail. The long
tail usually stresses changes in distribution. Hyperdifferentiation and resonance focus on
finding what each consumer wants and what each will pay for (Eric, 2008).
It is newly easy to create hyperdifferentiated and profitable products that resonate
with customers. It is possible to design products and services for customers whose
"needs, desires, cravings and longings" are not yet met in the marketplace (Eric, 2008).
It is possible to design for those customers most willing to pay for what they want. But
until recently there was little advantage from doing so. Historically, the most demanding
customers, those most willing to pay for what they want, also discounted the most in the
presence of uncertainty (Eric, 2008).
34
Historically, new offerings suffered from uncertainty. But, with "word of mouse"
reducing the uncertainty consumers’ face when considering unfamiliar choices, the
ability of producers and service providers to launch new premium offerings has never
been better (Eric, 2008). There are a few important strategic implications that become
clearly only after understanding the changes in customer behaviour and the increased
ability to exploit these changes is through resonance marketing and hyperdifferentiation
(Eric, 2008).
Resonance marketing is not about being better in any absolute sense; it is about
being better for each customer. Take for instance, a Lexus in many dimensions is better
than a simple Toyota, just as an Infiniti is better than a Nissan A Lexus may or may not
be better for an individual driver, based on a diverse set of preferences, including
handling, comfort, styling, and acceleration (Eric, 2008).
When the consumer is viewed in the proper perspective, the outcomes can be quite
positive for the manufacturer or supplier (Carl and Hal, 2000). The success of any
organizations is traced in large part to a skilful use of marketing research which is very
expensive (James et al, 2000). Yet, motivation and behaviour can be understood through
marketing research and perfect prediction is never possible, but properly designed and
used research efforts can significantly lower the risks of marketing failure (Kotler et al,
2002). It is almost always necessary to recognize that a market for any product or
service is likely to be highly segmented and the starting point in marketing planning is
always with the consumer (James et al, 2000). This means that there are various
groupings of present or potential buyers that differ sharply from one another. There can
be real variation in expected benefits (James et al, 2000). The alert marketer capitalizes
on these differences through a strategy of market segmentation, in which each segment
is viewed as a distinct market target with its own requirements for product, price,
distribution, and so on (James et al, 2000). The new networked economy is not just the
35
old industrial economy with a mess of wires hanging off it. Even mass-produced
consumer products like detergents, bread, mattresses (rubber foam), and soft drinks, or
traditional consumer durables like automobiles, are changing (Eric, 2008). Design,
production, sales, distribution, and service are all being altered by the information flows
in our networked world (Eric, 2008).
Effective modern marketing research enables an organization to achieve greater
profitability by responding to changes in consumer behaviour that result from changes
in consumers’ access to and use of information (Robert et al, 2001). It is about selling
more mattresses, bread and cheese, or cars, or beer; as importantly, it is about selling
more expensive mattresses, bread and cheese, or cars, or beer. It is not about tricking
consumers into paying more, but about finding out exactly what consumers want,
informing them about it accurately, and charging them prices that they are willing to
pay (Eric, 2008).
2.10 CONSUMER PROTECTION
The term applied to the efforts of government, public-interest organizations,
individuals, and businesses to establish, protect, and enforce the rights of people who
buy products such as food and automobiles or services such as health care and insurance
(Karpatkin and Been, 2008). It can also be defined as a form of government regulation
which protects the interests of consumers. For example, a government may require
businesses to disclose detailed information about products—particularly in areas where
safety or public health is an issue, such as food (Karpatkin and Been, 2008).
Consumer protection is linked to the idea consumer rights (that consumers have various
rights as consumers), and to the formation of consumer organizations which help
consumers make better choices in the marketplace. Customer interests can also be
36
protected by promoting competition in the markets which directly and indirectly serve
consumers, consistent with economic efficiency (Karpatkin and Been, 2008).
The basic rights of consumers, as set forth by U.S. president John F. Kennedy in his
1962 message to congress on consumerism, are the following: (1) the right to safety; (2)
the right to be informed; (3) the right to chose; and (4) the right to be heard. Each of
these rights is of major importance in the objectives of the consumer-protection
movement (Karpatkin and Been, 2008).
2.10.1 THE RIGHT TO SAFETY
Product offered for sale should not pose undue risk of physical harm to consumers or
their families (Karpatkin and Been, 2008) ; and according to a U.S. management expert
Richard, (2000) which quoted that ‘‘customer is the most important part of the
production line’’ yet in a recent year, for example, over millions of people in Nigeria
were reported injured—and thousands were killed—in product–related accidents
(Karpatkin and Been, 2008). Products that cause injuries include impure foods,
defectively manufactured automobiles and tires, defectively manufactured mattresses,
drugs that have harmful side effects, and unsafe appliances (Karpatkin and Been, 2008).
The U.S. federal government agency responsible for ensuring the safety of most
products is the Consumer Product Safety Commission (CPSC) (Karpatkin and Been,
2008). The CPSC was established in 1973 to protect the public from unreasonable risk
of injury caused by consumer products; to assist consumers in comparing the safety of
various items; to develop uniform safety standards; and to promote research about the
causes and prevention of product-related deaths, illnesses, and injuries (Karpatkin and
Been, 2008). It has broad authority to create and enforce safety standards for more than
37
10,000 consumer products and can ban hazardous items or recall them from the
marketplace (Karpatkin and Been, 2008). The CPSC is responsible for enforcing the
Flammable Fabrics Act (1953) which requires fabrics to meet standards of fire
resistance, as well as the Poison Preventing Packaging Act (1970), and the Hazardous
Poison Act (1960), which ban the use of certain dangerous substances and require
warnings and safety information on the labels of others. The CPSC does not have
authority over food, drugs, or motor vehicles (Karpatkin and Been, 2008)
The Food and Drug Administration (FDA) is charged with ensuring that processed
foods, drugs, medical devices, and cosmetics are safe and properly labelled; that foods
are wholesome (health-giving); and that drugs are effective (Karpatkin and Been, 2008).
It has the power to seize unsafe products and to criminally prosecute businesses that
violate safety laws and standards (Karpatkin and Been, 2008). The FDA inspects food-
processing plants to be sure that foods are made and packaged under sanitary conditions
(Karpatkin and Been, 2008). The agency must approve the safety and efficacy of all
new prescription drugs before they can be marketed. The FDA also sets safety standards
for radiation-emitting products such as microwave ovens (Karpatkin and Been, 2008).
Motor-vehicle safety is regulated by the National Highway Traffic Safety
Administration (NHTSA) which sets highway safety standards, investigates reported
safety-related motor-vehicle defects, and enforces laws regarding the correction of such
defects (Karpatkin and Been, 2008). NHTSA can require the recall of defective
automobiles or automotive parts; in fact, since 1966 manufacturers have recalled more
than 118million vehicles (Karpatkin and Been, 2008).
2.10.2 THE RIGHT TO BE INFORMED
Consumers need sufficient information in order to choose wisely among the
competing products and services available (Karpatkin and Been, 2008). The
38
marketplace, however, contains a great many different and complex products, and
advertising is usually not informative enough for consumer purposes (Karpatkin and
Been, 2008). Therefore, consumers often lack the information required to compare
the quality of various products and services, to determine their true cost, or to be
assured of their suitability or safety (Karpatkin and Been, 2008).
To ensure that consumers have the information they need to buy wisely, the federal
and many state have passed several important laws directing businesses to disclose
necessary information (Karpatkin and Been, 2008). The federal Fair Packaging and
Labelling Act (1966), for example, require that packages be labelled truthfully with
such basic facts as quantity and ingredients. The federal Truth in Lending Act (1968)
requires that consumers be told in clear, accurate, and uniform terms how much it costs
them to borrow money from a lender (Karpatkin and Been, 2008). Unit-pricing laws in
some states require supermarkets to show the cost of an item per pound, quart, or count
(for paper goods), so that shoppers can compare the cost of different sizes of products.
Many states require the dating of perishable foods to enable buyers to choose fresh
foods (Karpatkin and Been, 2008).
Many consumer problems are caused by incorrect or fraudulent information. The
Federal Trade Commission (FTC) bears the primary responsibility for making sure that
advertising and labelling are not false or misleading (Karpatkin and Been, 2008).
Consumers often used more than just the information sellers disclose. For instance,
firms rarely volunteer information about the shortcomings of their products (Karpatkin
and Been, 2008). To provide essential comparative information, several private,
independent organizations test products and report their findings to interested
consumers. Each issue of Consumer Reports rates various products by brand names
according to the results of laboratory and use tests, provides advice on services such as
39
banking and insurance, and reports on recalled items (Karpatkin and Been, 2008).
Consumers Union accepts no advertising and pledges that its reports are free from bias
and any commercial ties (Karpatkin and Been, 2008).
2.10.3 THE RIGHT TO CHOOSE
The structure of the American economic system is based on the belief that, generally,
competition is the best regulator of the marketplace (Karpatkin and Been, 2008).
According to this theory, when many companies are selling a product the effort of each
to attract more customers keeps prices at the lowest level that allows businesses to cover
costs and make a fair profit (Karpatkin and Been, 2008). When a market is not
competitive, sellers can set the prices as high as they wish, up to the level where
consumers simply will not buy the product (Karpatkin and Been, 2008). To preserve
competition in the marketplace, federal laws make it illegal for businesses to
monopolize an industry, restrain trade, or fix prices (Karpatkin and Been, 2008).
2.10.4 THE RIGHT TO BE HEARD
A consumer who has been cheated or who has bought a product or service that does
not perform properly has a right to seek a refund, replacement of the product, or other
remedy (Karpatkin and Been, 2008). Sometimes, however, a buyer finds that the
manufacturer or seller will not cooperate in resolving the complaint. In recent years law
have been passed to help dissatisfied consumers (Karpatkin and Been, 2008). Some
laws declare certain deceptive business practices illegal and give consumers the right to
sue a business believed to be violating the law. A consumer who wins such suit can
sometimes collect up to three times the amount of the damages (Karpatkin and Been,
2008).
40
Federal, state, and local governments have established offices or agencies to help
protect consumers or to resolve disputes between consumers and businesses (Karpatkin
and Been, 2008). The communications media—newspapers, televisions, and radio—
often aid consumers through services such as "action lines." Some business–sponsored
agencies such as the Major Appliance Consumer Action Panel can sometimes help those
who have a complaint about a product, service, or business practise (Karpatkin and
Been, 2008). The Better Business Bureau, a business association, makes information
about complaints it has received against businesses available to interested parties
(Karpatkin and Been, 2008).
The right to be heard also means that the needs of consumers should be considered
when government decisions affecting them are made (Karpatkin and Been, 2008).
Under President Gerald Ford, for example, executive agencies and departments were
ordered to establish procedures to consider the views of consumers in certain
policymaking areas (Karpatkin and Been, 2008).
41
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 STUDY AREA
The focus of this study will strictly be on the role of marketing research system
in an organizational decision making. The emphasis of the study is on a selected
manufacturing company in Nigeria: VITAFOAM NIGERIA PLC. Effort would also be
made to put some other manufacturing companies and service providers into
consideration for the purpose of this research work in order to cover a wide span
of the role of marketing research system in an organizational decision making.
3.2 POPULATION OF THE STUDY
Population can be defined as the sum total of the various element from which
samples are drawn or it refers to the group of people from which information is to
be obtained be it human or otherwise. The population for this study refers to the
organizations which engage in foam production in Nigeria and it will also involve
their distributors.
3.3 SAMPLING FRAME
Since there are many organizations that engage in foam production in Nigeria,
it will not be convenient to cover the entire population. Hence, a sample size is
determined and for the purpose of this research work, Vitafoam Nigeria Plc, Oba
Akran Avenue, Ikeja in which there are over 100 employees and about 25
distributors in Lagos area is chosen or selected as the sampling frame.
3.4 SAMPLING METHOD AND SAMPLE SIZE
Since the chosen organization has large number of staff on their payroll, the
researcher has decided to use simple random sampling. By this, sample will be
chosen which is considered to be most representatives and the required
information could be obtained through this representatives.
42
Meanwhile, the sampling size is a drawn subset of the total population. For the
purpose of this research work, the researcher decided to narrow to the
organization marketing research department.
In all, a total of 20 employees will be used as the study sample, while the total
number of distributors that will be use is 10. Thirty questionnaires would be
administered for forty samples. 10 questionnaires for marketing department, 5
questionnaires for research and development, 5 questionnaires for advertising,
product branding etc.
3.5 SOURCES OF DATA
The methods used in collecting the relevant data for this project are from both
primary and secondary sources. The primary source includes questionnaires and
personal interviews. The questionnaires are used because of the convenience
associated with it and also it will be made simple and unambiguous. Meanwhile,
the personal interview will complement the use of questionnaire for a more
definite conclusion.
3.6 DATA COLLECTION INSTRUMENTS
3.6.1 DESCRIPTION OF DATA COLLECTION INSTRUMENTS
The researcher has chosen to use questionnaires as instrument of research.
Questionnaire is a veritable and indispensable tool in carrying out survey. It is a
soft question design to elicit some information or data for analysis. The
researcher has structured the question in a formal way that would bring out
yes/no, agreed/strongly disagreed, low/very low/indifferent. This enables the
respondents to give a brief answer and here the respondents are usually
confirmed to a specific answer.
3.6.2 METHOD OF ADMINISTRATION
The results elicited from the response are tabulated for simple analysis. Each
question is given specific treatment so as to derive some information that might
help in the researcher’s finding. In testing response from the respondents,
43
opinion about the topic would be known. Hence, the use of Chi-Square would
become very useful for the researcher in analyzing the opinion of the
respondents. Meanwhile, in order to ensure that adequate provision is made to
guarantee the inclusion of the relevant respondents in the same proportion,
stratified sampling will be used. The study will be stratified into: [i] Top level
management [ii] middle level management [iii] low level management.
3.6.3 METHOD OF DATA ANALYSIS
Analysis is a detailed examination in which final conclusion about the
relationship that exists in the study can be drawn. Considering the nature and
purpose of this research work, the researcher employed both descriptive and
quantitative methods in the analysis of the data collected. The descriptive
method is used in describing and explaining information obtained from the
administered questionnaire while the quantitative method includes the table
presentation. Data obtained from questionnaire responses were grouped on a
frequency table which showed the percentage of distribution of responses on
each of the questions on the questionnaire.
3.7 STATISTICAL TOOLS OF ANALYSIS
Data collected from the survey were analysed using both descriptive and
inferential tools of statistical analysis. The descriptive tool include simple
percentage table. The tables were drawn to analyze the response of respondents.
Chi-square test of hypothesis was also used. The use of Chi-square is based on
the sample size for the questionnaire, assuming a 5% degree of confidence.
The Chi-square method is given below:
44
3.7.1 JUSTIFICATION
The tools for analyzing this study (Chi - Square), is used because the responses
for the research are in the mutually exclusive form and the data collected are
analysed based on their frequencies and percentages of occurrence.
Chi – Square, symbolized as X2
, is a non-parametric test of significance
appropriate when the data are in the form of frequency counts or percentages
and proportion that can be converted to frequencies. Two or more mutually
exclusive categories are required. Thus, Chi – Square s appropriate the tool for the
study.
45
CHAPTER FOUR
RESULTS AND DISCUSSIONS
4.1 INTRODUCTION
This chapter presents the analysis and interpretation of the data gathered in
the process of this research work.
4.2 RATE OF RESPONSE TO QUESTIONNAIRE
30 questionnaires were administered for the purpose of data collection. This
was made up of 10 questionnaires for the distributors and 20 for the employees.
Of the 10 administered to distributors, 8 were completed and returned giving a
response rate of 80%, while all the 20 given to the employees were returned (i.e.
100% return rate).
4.3 PRESENTATION OF DATA
SECTION A: DEMOGRAPHIC DATA.
Table 4.3.1. Distribution of age
Age Response Percentage
20-30 12 60
31-40 7 35
41-50 1 5
Above 50 Nil 0
Total 20 100
Source: Field Survey, 2009.
In the table above, the analysis shows that 60% of the population is within the
age of 20-30 years, 35% is between the ranges of 31-40 years, 5% is between the
ranges of 41-50, while 0% falls within the range of Above 50.
Table 4.3.2 Distribution of Sex.
Sex Response Percentage
Male 15 53.57
46
Female 13 46.43
Total 28 100
Source: Field Survey, 2009.
In the above, the analysis shows that 53.57% of the population are male while
the remaining 46.43 are female.
Table 4.3.3 Distribution of Educational qualification.
Educational qualification Response Percentage
SSCE/O’level 6 21.43
OND/A’ level 13 46.43
HND/BSc 7 25
MSc/MBA 0 0
Professionals 1 3.57
Others 1 3.57
Total 28 100
Source: Field Survey, 2009.
In table 4.3.3 above, the analysis shows that 21.43% of the respondents are
SSCE/O’level, 46.43% are OND/A’ level holders, 25% are HND/BSc holders, 3.57%
are professionals, 3.57% are others, while none holds MSc/MBA.
Table 4.3.4. Distribution of Managerial Cadre.
Managerial Cadre Response Percentage
Top level 6 30
Middle level 10 50
Lower level 4 20
Total 20 100
Source: Field Survey, 2009.
In table 4.3.4 above, the analysis indicates that 30% of the respondents are Top
level, 50% are middle level, while 20% are lower level managers.
47
SECTION B: EMPLOYEES
1. There is no relationship between marketing research and Information.
Table 4.3.5
Response Percentage
Strongly Agree 4 20
Agree 2 10
Indifferent Nil 0
Disagree 7 35
Strongly Disagree 7 35
TOTAL 20 100
Source: Field Survey, 2009.
In the table above, 20% of the population strongly agreed that there is no
relationship between marketing research and information, 10% agreed with the
statement, 35% disagreed, 35% strongly disagreed with the statement while none
is of the opinion that it is indifferent. From the table above, and accordance with
the objectives of the study, it is obvious that there is a relationship between
marketing research and information.
2. Marketing research helps an organization to identify marketing opportunities.
Table 4.3.6
Response Percentage
Strongly Agree 1.3 65
Agree 7 35
Indifferent Nil 0
Disagree Nil 0
Strongly Disagree Nil 0
TOTAL 20 100
Source: Field Survey, 2009.
65% of the respondents are of the opinion that marketing research helps an
organization to identify marketing opportunities, 35% agreed to this, while none
disagreed, none is of the opinion that it is indifferent, and none strongly
48
disagreed. From the table above and in agreement with the objectives of the
study it is clear that marketing research helps an organization to identify
marketing opportunities.
3. Information generated through marketing research plays a vital role in the
marketing decision process.
Table 4.3.7
Response Percentage
Strongly Agree 11 55
Agree 9 45
Indifferent Nil 0
Disagree Nil 0
Strongly Disagree Nil 0
TOTAL 20 100
Source: Field Survey, 2009.
55% of the respondents strongly agreed that information generated through
marketing research plays a vital role in the marketing decision making process,
45% agreed, while none is of the opinion that it is indifferent, none disagreed and
none strongly disagreed. From the table above and in agreement with the
objectives of the study, it is evident that information generated through
marketing research plays a vital role in the marketing decision making process.
4. Marketing research system has a great influence on Organizational
Performance.
Table 4.3.8
Response Percentage
Strongly Agree 8 40
Agree 12 60
Indifferent Nil 0
49
Disagree Nil 0
Strongly Disagree Nil 0
TOTAL 20 100
Source: Field Survey, 2009.
40% of the respondents strongly agreed that marketing research system has a
great influence in organizational performance, 60% agreed with the statement,
none disagreed and strongly disagreed while none is of the opinion that it is
indifferent. From the table above and in accordance with the objectives of the
study, it is certain that marketing research system has a great influence in
organizational performance
Table 4.3.9
5. There is no relationship between marketing research and consumer
protection.
Response Percentage
Strongly Agree 2 10
Agree 2 10
Indifferent 2 10
Disagree 9 45
Strongly Disagree 5 25
TOTAL 20 100
Source: Field Survey, 2009.
10% strongly agreed that there is no relationship between marketing research
and consumer protection, 10% agreed with the statement, 10% is of the opinion
that it is indifferent, 45% disagreed with the statement while 25% strongly
disagreed with the statement. From the table above and in conformity with the
objectives of the study, it is evident that there is a relationship between
marketing research and consumer protection.
Table 4.3.10
6. Through marketing research my organization has been able to improve its
services and protect its consumers.
50
Response Percentage
Strongly Agree 13 65
Agree 15 25
Indifferent 1 5
Disagree 1 5
Strongly Disagree Nil 0
TOTAL 20 Nil
Source: Field Survey, 2009.
65% strongly agreed that through marketing research my organization has
been able to improve its services and protects its customers, 25% agreed with
the statement, 5% is of the opinion that it is indifferent, 5% disagreed with the
statement while none strongly disagreed with the statement. From the table
above and in accordance with the objectives of the study, it is evident that
through marketing research the organization has been able to improve its services
and protect its consumers.
Table 4.3.11
7. Globalization and changes in the interests and desires of consumers are
among the factors affecting effective marketing research system in organization.
Response Percentage
Strongly Agree 5 25
Agree 6 30
Indifferent 5 25
Disagree 4 20
Strongly Disagree Nil 0
TOTAL 20 100
Source: Field Survey, 2009.
25% strongly agreed that Globalization and changes in the interests and desires
of consumers are among the factors affecting effective marketing research
system in organization, 30% agreed with the statement, 25% is of the opinion
that it is indifferent, 20% disagreed while none strongly disagreed with the
statement. From the above table, and in agreement with the objectives of the
51
study, it is obvious that globalization and changes in the interests and desires of
consumers are among the factors affecting effective marketing research system in
organization.
SECTION C.
a. Revenue generation.
Table 4.3.12
Response Percentage
Low 1 5
Very low 1 5
Indifferent 3 15
Very high 3 15
High 12 60
TOTAL 20 100
Source: Field Survey, 2009.
5% of the respondent is of the opinion that the effect of marketing research
system on Revenue generation is low, 5% is of the opinion that it is very low, 15%
agreed that the statement is indifferent, 15% is of the opinion that it is very high,
while 60% agreed that it is high.
b. Profit yield.
Table 4.3.13
Response Percentage
Low Nil 0
Very low 2 10
Indifferent Nil 0
Very high 4 20
High 14 70
TOTAL 20 100
Source: Field Survey, 2009.
52
10% of the respondent agreed that the effect of marketing research system on
Profit yield is very low, 20% is of the opinion that it is very high, 70% is of the
opinion that it is high, while none is of the opinion that the statement is low and
indifferent.
Table 4.3.13
c. Capacity for risk taking
Response Percentage
Low 5 25
Very low 2 10
Indifferent 5 25
Very high 5 25
High 3 15
TOTAL 20 100
Source: Field Survey, 2009.
25% of the respondent is of the opinion that the effect of marketing research
system on capacity for risk taking is low, 10% of the respondent agreed that it is
very low, 25% of the respondent is of the opinion that the statement is
indifferent, 25% is of the opinion that it is very high while 15% is of the opinion
that it is high.
Table 4.3.13
d. Identification of market opportunities.
Response Percentage
Low 2 10
Very low 2 10
Indifferent Nil 0
Very high 5 25
High 11 55
TOTAL 20 100
Source: Field Survey, 2009.
53
10% of the respondent is of the opinion that the effect of marketing research
in the identification of market opportunities is low, 10% agreed it is very low, 25%
agreed it is very high, 55% agreed the statement is high while none is of the
opinion that the statement is indifferent.
Table 4.3.14
e. Customer Service Improvement.
Response Percentage
Low Nil 0
Very low 5 25
Indifferent 1 5
Very high 4 20
High 10 50
TOTAL 20 100
Source: Field Survey, 2009.
25% is of the opinion that the effect of marketing research on customer
service improvement is very low, 5% is of the opinion that the statement is
indifferent, 20% agreed that the statement is very high, 50% agreed that the
statement is high while none is of the opinion that the statement is low.
Table 4.3.15
f. Branch Expansion.
Response Percentage
Low 3 15
Very low 2 10
Indifferent 2 10
Very high 4 20
High 9 45
TOTAL 20 100
Source: Field Survey, 2009.
15% of the respondent is of the opinion that the effect of marketing research
system on branch expansion in organization is low, 10% agreed that the
statement is very low, 10% is of the opinion that it is indifferent, 20% agreed that
54
the statement is very high while 45% of the respondent is of the opinion that the
statement is high.
Table 4.3.16
g. Staff Welfare.
Response Percentage
Low 3 15
Very low 4 20
Indifferent 5 25
Very high Nil 0
High 8 40
TOTAL 20 100
Source: Field Survey, 2009.
15% of the respondent is of the opinion that the effect of marketing research
system on staff welfare in an organization is low, 20% of the respondent agreed
that the statement is very low, 25% is of the opinion that the statement is
indifferent, 40% agreed that the statement is high, while none agreed that the it
is very high.
4.4 TEST OF HYPOTHESIS.
QUESTION 3 (SECTION B).
Table 4.4.1
Managerial
Cadre
Strongly
Agree
Agree Indifferent Disagree Strongly
Disagree
TOTAL
Top level 3 0 1 2 0 6
Middle
level
0 5 0 0 5 10
Lower
level
1 0 1 1 2 4
TOTAL 4 5 2 0 7 20
Source: Field Survey, 2009.
55
COMPUTATION OF EXPECTED FREQUENCY.
For row A, column 1,
Fe = 6 X 4 = 1.2
20
For row A, column 2,
Fe = 6 x 5
20 = 1.5
For row A, column 3,
Fe = 6 x 2
20 = 0.6
For row A, column 4,
Fe = 6 x 3
20 = 0.9
For row A, column 5,
Fe = 6 x 7
20 = 2.1
For row B, column 1,
56
Fe = 10 x 4
20 = 2.0
For row B, column 2,
Fe = 10 x 5
20 = 2.5
For row B, column 3,
Fe = 10 x 2
20 = 1.0
For row B, column 4,
Fe = 10 x 3
20 = 1.5
For row B, column 5,
Fe = 10 x 7
20 = 3.5
For row C, column 1,
Fe = 4 x 4
20 = 0.8
For row C, column 2,
Fe = 4 x 5
20 = 1.0
For row C, column 3,
57
Fe = 4 x 2
20 = 0.4
For row C, column 4,
Fe = 4 x 3
20 = 0.6
For row C, column 5,
Fe = 4 x 7
20 = 1.4
COMPUTATION OF CHI – SQUARE
Table 4.4.2
Fo Fe (Fo - Fe) (Fo - Fe)2 (Fo - Fe)2
Fe
3 1.2 1.8 3.24 2.70
0 1.5 -1.5 1.5 1.50
1 0.6 0.4 0.16 0.27
2 0.9 1.1 1.21 1.34
0 2.1 -2.10 4.41 2.10
0 2.0 -2.00 4.00 2.00
5 2.5 2.5 6.25 2.50
0 1.0 -1.0 1.0 1.00
0 1.5 -1.5 2.25 1.50
58
5 3.5 1.5 2.25 0.64
1 0.8 0.2 0.04 0.05
0 1 -1 1 1.00
1 0.4 0.6 0.36 0.90
1 0.6 0.4 0.16 0.27
2 1.4 0.6 0.36 0.26
TOTAL X2
C= 18.03
Source: Field Survey, 2009.
X2
C = 18.03 and X2
t = 15.507.
CRITICAL VALUE.
(R-I)(C-1) = (3-1)(5-1)
(2)(4) = 8.
Level of Confidence = 5% = 0.05
X2
t = 15.507.
DECISION:
Since X2
C is greater than the obtained X2
t, the null hypothesis "Ho" should
be rejected while the alternative hypothesis should be accepted. Hence,
Information generated through marketing research plays a vital role in the
marketing decision making process.
TEST OF HYPOTHESIS
QUESTION 4 (SECTION B).
Table 4.3.3
Managerial
Cadre
Strongly
Agree
Agree Indifferent Disagreed Strongly
Disagreed
TOTAL
59
Top Level 3 1 0 2 0 6
Middle
level
0 5 0 0 5 10
Lower
level
1 0 2 1 1 4
TOTAL 4 6 2 3 6 20
Source: Field Survey, 2009.
COMPUTATION OF EXPECTED FREQUENCY
For row A, column 1,
Fe = 6 x 4
20 = 1.2
For row A, column 2,
Fe = 6 x 6
20 = 1.8
For row A, column 3,
Fe = 6 x 2
20 = 0.6
For row A, column 4,
Fe = 6 x 3
20 = 0.9
60
For row A, column 5,
Fe = 6 x 6
20 = 1.8
For row B, column 1,
Fe = 10 x 4
20 = 2.0
For row B, column 2,
Fe = 10 x 6
20 = 3.0
For row B, column 3,
Fe = 10 x 2
20 = 1.0
For row B, column 4,
Fe = 10 x 3
20 = 1.5
For row B, column 5,
Fe = 10 x 6
20 = 3.0
For row C, column 1,
Fe = 4 x 4
20 = 0.8
61
For row C, column 2,
Fe = 4 x 6
20 = 1.2
For row C, column 3,
Fe = 4 x 2
20 = 0.4
For row C, column 4,
Fe = 4 x 3
20 = 0.6
For row C, column 5,
Fe = 4 x 6
20 = 1.2
COMPUTATION OF CHI – SQUARE
Table 4.4.3
Fo Fe (Fo - Fe) (Fo - Fe)2 (Fo - Fe)2
Fe
3 1.2 1.8 3.24 2.70
1 1.8 0.8 0.64 0.36
0 0.6 -0.4 0.16 0.60
2 0.9 1.1 1.21 1.34
0 1.8 -1.8 3.24 1.80
0 2.0 -2.0 4.00 2.00
5 3.0 2.0 4.00 1.33
62
0 1.0 -1.0 1.00 1.00
0 1.5 -1.5 2.25 1.50
5 3 2.0 4.00 1.33
1 0.8 0.2 0.04 0.05
0 1.2 -1.2 1.44 1.20
2 0.4 1.6 2.56 6.40
1 0.6 0.4 0.16 0.27
1 1.2 -0.2 0.04 0.03
TOTAL X2
C= 21.91
Source: Field Survey, 2009.
X2
C = 21.91 and X2
t = 15.507.
CRITICAL VALUE.
(R-I)(C-1) = (3-1)(5-1)
(2)(4) = 8.
Level of Confidence = 5% = 0.05
X2
t = 15.507.
DECISION:
Since X2
C is greater than the obtained X2
t, the null hypothesis "Ho" should
be rejected while the alternative hypothesis should be accepted. Hence,
marketing research has a great influence in organizational performance.
4.5 ANALYSIS OF DATA (DISTRIBUTORS)
1. Marketing research helps an organization to obtain useful information on
how to improve its products.
Table 4.5.1
Respondent Percentage
Agree 2 25
Strongly Agree 4 50
63
Indifferent Nil 0
Disagreed 1 12.5
Strongly Disagreed 1 12.5
TOTAL 8 100
Source: Field Survey, 2009.
25% of the respondents is of the opinion that marketing research helps an
organization to obtain useful information on how to improve its products, 50% of
the respondent strongly agreed, 12.5% disagreed with the statement, 12.5%
strongly disagreed with the statement, while none is of the opinion that it is
indifferent.
2. Vitafoam Plc has a vibrant marketing research system which makes the
organization perform better than its competitors.
Table 4.5.2
Respondent Percentage
Agree 4 50
Strongly Agree 2 25
Indifferent Nil 0
Disagreed 1 12.5
Strongly Disagreed 1 12.5
TOTAL 8 100
Source: Field Survey, 2009.
50% of the respondent agreed that Vitafoam Plc has a vibrant marketing
research system which makes the organization perform better than its
competitors, 25% of the respondent strongly agreed with the statement, 12.5%
disagreed with the statement, 12.5% strongly disagreed with the statement, while
none is of the opinion that the statement is indifferent.
64
3. Vitafoam Plc does not ask for feedback about its products from distributors.
Table 4.5.3
Respondent Percentage
Agree Nil 0
Strongly Agree Nil 0
Indifferent Nil 0
Disagreed 5 62.7
Strongly Disagreed 3 37.5
TOTAL 8 100
Source: Field Survey, 2009.
62.7% of the respondent disagreed that Vitafoam Plc does not ask for
feedback about its products from distributors, 37.5% strongly disagreed with the
statement, none of the respondent agreed with the statement, none strongly
disagreed, and none is of he opinion that it is indifferent.
3. It is necessary for Vitafoam Plc to improve on its marketing research
activities.
Table 4.5.4
Respondent Percentage
Agree 4 50
Strongly Agree 4 50
Indifferent Nil 0
Disagreed Nil 0
Strongly Disagreed Nil 0
TOTAL 8 100
Source: Field Survey, 2009.
50% of the respondent is of the opinion that it is necessary for Vitafoam Plc to
improve on its marketing research activities, 50% strongly agreed with the
statement, none is of the opinion that the statement is indifferent, none
disagreed, and none strongly disagreed with the statement.
65
4. The attitude of consumers towards the new brand of product supplied
for the past 2 or 3 years has been positive.
Table 4.5.5
Respondent Percentage
Agree 4 50
Strongly Agree 4 50
Indifferent Nil 0
Disagreed Nil 0
Strongly Disagreed Nil 0
TOTAL 8 100
Source: Field Survey, 2009.
50% of the respondent agreed that the attitude of consumers towards the new
brand of product supplied for the past 2 or 3 years has been positive, 50%
strongly agreed with the statement, none is of the opinion that the statement is
indifferent, none disagreed, and none strongly disagreed with the statement.
66
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATION.
5.1 SUMMARY.
The research has evaluated the role of marketing research system in
organizational decision making using Vitafoam Nigeria Plc has a case study. The
evaluation was based on the provision of information that facilitates marketing
decision making process. The research basically studied how information
gathered through marketing research can be use to make an effective decision
making in an organization. A primary source of data through questionnaire was
used for the study. Both descriptive and inferential statistical tools were
employed for data analysis.
The hypothesis of the study was tested through the use of Chi – Square
method. The results show that information plays a vital role in the marketing
decision making process, and that marketing research has a significant impact on
organizational performance.
5.2 CONCLUSION.
The information revolution is sweeping through our economy (Robert et al,
1997). No organization can escape its effects. Dramatic changes in the cost of
obtaining, processing, and transmitting information are changing the way we do
business (Robert et al, 1997). Most organizations know that the revolution is
underway, and few dispute its importance.
Similarly, many organizations today are searching for opportunities along the
"information highway" in healthcare, manufacturing, energy, transportation and
so on (Burns and Bush, 1999). Marketers need information to help them identify
market opportunities (Burns and Bush, 1999). For the time being, opportunities
and problems are everywhere, but decision makers need information to help
them identify and define them adequately in order to satisfy and meet the needs,
wants, cravings, and desires of the consumers (Burns and Bush, 1999).
67
Moreover, the decision makers usually rely on marketing research system to
aid them in making decision and also to allow an organization to "hear the voice"
of the consumer (Burns and Bush, 1999). Therefore, the adoption of marketing
research like the marketing mix, marketing strategies, marketing concept in an
efficient manner will permit managers to make decisions for the successful
operations of businesses (Achumba and Osuagwu, 1994).
Conclusively, to manage a business well is to manage its future; and to
manage the future is to manage information (James et al, 2000) and more so, the
right product, at the right price, in the right place with the promotion cannot fail
when there is proper marketing research, unless of course, some important
information/message get overlooked (James et al, 2000) and (Patricia, 2001).
Accordingly, marketers are viewing information as not just an input for making
decisions, but also a marketing asset that gives competitive advantage of strategy
importance (James et al, 2000).
4.3 RECOMMENDATION.
On the basis of the findings, the following are the recommendations;
1. Organizations should endeavour to be innovative and from time to time renew
their chances in the information highway. This will be enhanced by the marketing
research that has been carried out, which will in turn enhanced good decision
making by the manager.
2. Organization should endeavour to protect their consumers by identifying their
needs, wants, and desires and then work towards meeting and satisfying those
needs.
3. Organizations should lay more emphasis on loyalty to their products and
customers rather than meeting sales target. This is to set a standard for their
product and also have a competitive advantage in the marketplace.
4. More distribution outlets should be established by an organization so that
their goods can flood the market and as such their will be an apprehension of a
68
larger share of the market because of the acceptability of the products by the
consumers.
5. Further research work should be carried out on marketing because effective
marketing research which is a pivotal part of the marketing process plays a vital
role in the success and accomplishment of manufacturing organizations.
69
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Equity: Building and Managing Relationships as Valuable Assets.
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Robert E. Stevens, Bruce Wrenn, Morris E. Ruddick, Philip K. Sherwood, (1997).
The Marketing Research Guide. Binghamton, NY:The Harworth Press.
Roger J. Best, (2000). Market Based Management: Strategies for Growing
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  • 1. 1 ROLE OF MARKETING RESEARCH SYSTEM IN ORGANIZATIONAL DECISION MAKING (A CASE STUDY OF VITAFOAM NIGERIA PLC) BY OGUNSADE, OLAJIDE SUNDAY BEING A PROJECT SUBMITTED TO DEPARTMENT OF MANAGEMENT SCIENCE FACULTY OF ENGINEERING AND TECHNOLOGY LADOKE AKINTOLA UNIVERSITY OF TECHNOLOGY OGBOMOSO, NIGERIA IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF TECHNOLOGY (B.TECH) DEGREE IN ACCOUNTING DECEMBER, 2009
  • 2. 2 CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY. The fact that transformation is anticipated in taste, style, and desire for different things bring out the essential factor of the need for continuous research in getting information which are use for decision making in an organization (Homburg and Pflesser, 2000). Marketing Research System (MRS) is one of the components of a modern Marketing Information System (MIS). Other component includes: Internal Information System, Marketing Intelligence, and Decision Support Systems. Marketing Research gathers information not available through the other components and is conducted on a project basis as opposed to an on going basis (Kotler, 1997). The role of marketing research system is to provide information that facilitates marketing decisions. It helps organizations to identify consumer needs and wants, so that such organizations can develop and promote products more successfully (Brett, 2008). Such research also provides the information upon which important advertising and marketing decisions are based. Meanwhile, the important of this role cannot be overstated; it is the raison d’ etre (purpose) for marketing research. Without marketing research system, it is hard, if not impossible for management to make sound marketing decisions or to implement properly the marketing concept (Burns and Bush, 1999). As incomes increase and buyers become more selective, sellers need better information about how buyers respond to different products and appeals. As sellers use more complex marketing approaches and face more competition, they need information on the effectiveness of their marketing tools. So in today’s rapidly changing environments, marketing managers need up-to-date information to make timely decisions (Kotler et al, 1999). John Neisbitts (1984) in his statement suggested that "the world is undergoing a mega shift, from an industrial to an information based economy ". Organizations have successful
  • 3. 3 market histories because marketers have correctly "heard" the consumers’ wants and needs and conceived a product (or service) price, promotion and distribution method that satisfied those wants and needs. This may sound rather simple, but many companies go out of business or experience product failures each year. Therefore, businesses achieve success when the marketing managers access and then apply the right information. Moreover, it is agreed that there is a lot of disorder in the marketplace, but there is a general believe that the people who are going to succeed in the years coming are marketers who are innovative i.e. groundbreaking but have apparent impact with the consumers and that is the competition. Thus it is marketers with high-quality inventions that will have something different and unique to compete for in the market (Roger, 2000). Therefore, organizations have got to step up their game in terms of creativity and innovations because the marketing environment is changing at an accelerating rate so the need for real time marketing research system is greater than at any in the past (Kotler, 1997). The shifts are dramatic: from local to national to Global marketing, from buyer needs to buyer wants, from price to non-price competition. As organizations expand their geographical market coverage, their managers need more information more quickly. As incomes improve, consumer/buyers responses to different features, styles, tastes, and other attributes, sellers must turn to marketing research (Kotler, 1997). As sellers increase their use of branding, product modification and differentiation, advertising and sales promotion, they require information on the effectiveness of these marketing tools. Good marketing research is characterized by the scientific method, creativity, multiple research methods, accurate model building, cost benefit analysis, healthy skepticism (doubt) and an ethical focus (Kotler, 1997). However, according to the Nigerian Minister of Commerce and Industry, Chief Achike Udenwa, when he was speaking about the Nigeria consumers that
  • 4. 4 will be ranked among world’s best by 2020, he said, in a country where majority of the consumer population is ignorant, uneducated and passive, concerted efforts must be made to educate and protect their rights. He stated that organizations had failed to take into consideration the interest of consumers when designing and developing social responsibility initiatives. To address this problem, Chief Udenwa mandated all producers in the country to devote a fraction of their annual profits to strengthening the regime of consumer protection. The minister also said "there are situations where organizations whose activities are directly sustained by consuming public to undertake a social responsibility initiatives all round the year without doing anything to better the lots of consumers," a situation that is absolutely unacceptable (Tribune Newspaper, 2009). 1.2 STATEMENT OF THE PROBLEM. In today’s information-based society, organizations with superior information enjoy a competitive advantage. For the time being, there are still organizations that cannot choose its market better, develop better offerings, protect their consumers and execute better marketing planning in our society. Take for example; some goods that an organization is being offered for sale in the marketplace should not pose an undue risk of physical harms to consumers or their families. Similarly, it is very obvious that organizations cannot provide the information needed at a particular point in time due to lack of marketing research system or limitation in the use of the one available. For instance, a brand manager of a particular organization might want to know how much competitors will change their advertising budgets next year and how these changes will affect organization market years. Meanwhile, inadequate organization and distribution of a continuous flow of information from the company to its marketing managers also poses a greater problem for management.
  • 5. 5 It is imperative therefore to examine how an organization can effectively exploit its marketing research system for the acquisition and utilization of relevant information in its decision making process. 1.3 OBJECTIVES OF THE STUDY. This research study will focus primarily on examining the role of marketing research system in an organizational decision making. The specific objectives will be: • To identify the relationship between marketing research and information. • To examine the role of information in the marketing decision making process. • To ascertain the influence of marketing research system on organizational performance. • To determine the relationship between marketing research and consumer protection • To identify the factors affecting effective marketing research system in an organization. 1.3 RESEARCH QUESTIONS. 1. What are the relationship between marketing research and information? 2.What are the roles of information in the marketing decision making process? 3.How can the influence of marketing research system on organizational performance be ascertained? 4.What are the relationship between marketing research and consumer protection? 5.What are the factors affecting effective marketing research system in an organization? 1.5 RESEARCH HYPOTHESIS From the research questions, the following hypotheses will be tested in this study:
  • 6. 6 H0: Information does not play a significant role in marketing decision making. H1: Information plays a significant role in marketing decision making. H0: Marketing research has no significant impact on organizational performance. H1: Marketing research has significant impact on organizational performance. 1.6 SIGNIFICANCE OF THE STUDY. Since market research system is essential to optimize the potential use of commercial items, commercial services and items that are not develop for agency needs, this study would therefore be of great help to businessmen, organizations, and the governments. The research work will throw more light in the concept of marketing research and the role it plays in the decision making process. It will enable organizations to know whether there is need for research as far as decision making process is concerned. More so, it will enlighten the government that the success attained in the decision making process by marketing research system could be well applied in government policies. 1.7 SCOPE OF THE STUDY. In this study, the general focus is on the role of marketing research in an organizational decision making and how it influences organizational performance in the area of sales volume and profitability. This study will also discuss how consumers are being protected in the modern marketing through the application of marketing research system. 1.8 LIMITATION OF THE STUDY. The limitation of this study is that the researcher could not obtain adequate information as the organization found it difficult to disclose
  • 7. 7 information about their marketing activities. They are cautious of releasing information because of their competitors. Time is another limitation imposed on the study because the researcher carried out the study within very limited time frame. 1.9 DEFINITION OF TERMS. INFORMATION: The collected facts and data about a specific project or research. DECISION MAKING: This is a selection of a particular alternative from a set of two or more visible alternative courses of action for resolving a particular problem. ORGANIZATION: A group of people identified by a shared interest or purpose, e.g. a business. RESEARCH: Methodical investigation into a subject in order to discover facts, to establish or revise a theory, or to develop a plan of action based on the facts discovered. MARKET: This can be defined as any established operating means or exchange for business dealings between buyers and sellers. As opposed to simple setting, a market implies trade that is transacted with some regularity and regulation, and in which a certain amount of competition is involved. MACROMARKETING: The study of the aggregate flow of a nation’s goods and services to benefit society. MARKET DEVELOPMENT: A strategy of selling existing products to new target markets. MARKET GROWTH RATE: The annual rate of growth of a specific market or industry; often used as the vertical axis in business portfolio analysis. MARKETING POTENTIAL: Maximum total sales of a product by all firms to a segment under specified environmental conditions and marketing efforts; also called industry potential.
  • 8. 8 MARKETING SEGMENTATION: The process of forming submarkets, or market segments, by either aggregating individual potential buyers or subdividing large markets. MARKET SEGMENTS: The groups that result from the process of market segmentation; these groups ideally (1) have common needs and (2) will respond similarly to a marketing action. MARKET SHARE: The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. MARKETING TESTING STAGE: A phase of the new product process, in which prospective consumers are exposed to actual products under realize purchase conditions to see if they will buy. MARKETING: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives. MARKETING CHANNEL: People and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. MARKETING CONCEPT: The idea that an organization should seek to satisfy the wants of customers while also trying to achieve the organization’s goals. MARKETING DECISION SUPPORTS SYSTEM (MDDS): A computerized method of providing timely, accurate information to improve marketing decisions. MARKETING MIX: A marketing manager’s controllable factors: product, price, promotion, and place. MARKETING MODIFICATIONS: Attempts to increase product usage by creating new use situations, finding new customers, or altering the marketing mix. MARKETING PLAN: A written statement identifying the target market, specific marketing goals, the budget, and timing for the marketing program.
  • 9. 9 MARKETING PROGRAM: A plan integrates the marketing mix to provide a product, service, or idea to consumers. MARKETING RESEARCH SYSTEM (MRS): The process of defining a marketing problem and then systematically collecting and analyzing information to recommend actions to improve an organization’s marketing activities. It can also be define as the function that links the consumer, customer and public to the marketer through information- information used to identify and define marketing opportunities and problems; to generate, refine and evaluate marketing actions; to monitor marketing performance and to improve understanding of the marketing process. MARKETING STRATEGY: The marketing logic by which the business unit hopes to achieve its marketing objectives. MARKETING TACTICS: The detailed day-to-day operational decisions essentials to the overall success of marketing strategies. MICROMAKETING: The marketing activities of an individual organization. MARKETING INFORMATION SYSTEM: People, equipment and procedures together, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. MARKETING INTELLIGENCE: This is everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans. MARKETING MANAGEMENT: The analysis, planning, implementation, and control of programmes designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. PRODUCT MODIFICATION: It is a strategy which entails changing product characteristics such as quality, features, or styles so as to attract users and usage.
  • 10. 10 1.10 HISTORY OF VITAFOAM PLC Vitafoam Nigeria Plc is a big manufacturing industry in Nigeria that has its head office located in Oba Akran Avenue, Ikeja, Lagos State with factories in different cities viz: Ikeja, Kano, Jos, Aba, and Sapele. In other countries, Ghana, Sieria Leone. Vitafoam Nigeria Plc was incorporated on 4th August, 1962 and listed on the floor of the Nigeria Stock Exchange in 1978. Vitafoam successful brands remain household names in the country. The organization was the first foam manufacturing industry in Nigeria to subject its quality system to the quality management system championed by the Standards Organization of Nigeria (SON). The NIS ISO 9002 certificate was obtained in 2001 and upgraded to NIS ISO 9001: 2001 in 2004. Vitafoam Nigeria Plc is Nigeria’s leading manufacturer of flexible reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which facilitates just-in-time delivery of its products throughout Nigeria. The Organization’s vision "to be the foam manufacturer of first choice" is being achieved through its mission of continuously improving the organization’s policy and determined by a competent and dynamic board, a mix of executive and non- executive directors who are experts in their own fields. The board is supported by a robust management team. The goals and objectives of the company is to continuously improve the quality of its products and services through operating practices that conform to international standard, thereby maintaining her leadership position in the foam and allied product subsector of the Nigeria manufacturing industry. It endeavour to build a dedicated workforce that is adequately rewarded while consistently posting acceptable returns to her stakeholders and remain at all times a responsible corporate citizen.
  • 11. 11 CHAPTER TWO LITERATURE REVIEW 2.1 MARKETING RESEARCH SYSTEM Marketing research is a pivotal part of the marketing process. By referring to studies of prospective buyers’ needs, wants, and tastes, providers of goods and services can tailor their marketing programs (Brett, 2008). The results of marketing studies suggest to sellers not only what they should sell or provide but also where to offer particular goods and services, how to advertise them, and how to set prices (Brett, 2008). Before one can explain marketing research systems, the term system, research, and marketing must briefly be defined. A system is a combination or arrangement of parts to form an integrated whole. A system includes an orderly arrangement according to some
  • 12. 12 common principles or rules. A system is a plan or method of doing something (O’ Brien, 1999).The study of system is not new. The Egyptian architects who built the pyramids relied on a system of measurements for construction of the pyramids. Phoenician astronomers studied the system of the stars and predicted future star positions. A system is a scientific method of inquiry, that is, observation, the formulation of an idea, the testing of that idea, and the application of the results (O’ Brien, 1999). The scientific method of problem solving is systems analysis in its broadest sense. Data are facts and figures. However, data have no value until they are compiled into a system and can provide information for decision making (O’ Brien, 1999). According to Encarta dictionary, research can be defined as a methodical investigation into a subject in order to discover facts, to establish or revise a theory, or to develop a plan of action based on the facts discovered. Research may be characterized as either applied or basic. By applied research, we mean that the research is undertaken for the sake of extending knowledge. This does not mean that the basic research is not valuable. In fact, basic research often leads to major scientific break through that may then be used to solve specific problems (Burns and Bush, 1999). Encarta dictionary define marketing as a business activity of presenting products or services in such a way as to make them desirable. The American Marketing Association (AMA) defines marketing as the performance of all activities necessary for the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Ralph (1996) said if an organization/management has knowledge of the planning, organizing, directing, and controlling of the business, its decisions can be made on the basis of facts, and decisions are usually more accurate and timely. This
  • 13. 13 implies that managers use marketing research operations for all levels of management, including planning, organizing, directing, and controlling. Marketing can also be defined as the process by which a product or service originates and is then priced, promoted, and distributed to consumers. In large organization the principal marketing function precede the manufacture of a product. They involve marketing research and product development, design and testing (Brett, 2008). Marketing concentrates primarily on the buyers, or consumers. After determining the consumers’ needs and desires, marketers develop strategies that are designed to educate consumers about a product’s most important features, persuade them to buy it, and then to enhance their satisfaction with the purchase (Brett, 2008). Where marketing once stopped with the sale, today businesses believe that it is more profitable to sell to existing customers than to new ones. As a result, marketing now also involves finding ways to turn one-time purchasers into life long customers (Brett, 2008). Marketing includes planning, organizing, directing, and controlling the decision making regarding product lines, pricing, promotion, and servicing. In most of these areas marketing has overall authority; in others, as in product-line development, its function is primarily advisory (Brett, 2008). In addition, the marketing department of a business organization is responsible for the physical distribution of the products, determining the channels of distribution that will be used and supervising the profitable flow of goods from the factory or ware house (Brett, 2008). Marketing research systems are those systems that allow managers to make decisions for the successful operation of businesses. The decision makers usually rely on marketing research to aid them in making decision. Marketing research is the function that allows an organization to "hear the voice" of the consumer; it brings consumer
  • 14. 14 information to decision makers (Burns and Bush, 1999). Marketing research system consists of resources, people, and procedures used in the modern business organizations. The term MRS stands for marketing research system. MRS is the process by which an organization research unit modify the marketplace through the gathering and analysis of information which are used for decision making in order to satisfy or meet the needs, wants, and desires of the consumers (Paul, 2003). MRS also refers to the organization that develops and maintains most of all the research systems in the enterprise so that managers can make decisions (Richard, 2000). Marketing managers usually follow two basic steps which are: 1) They endorse a philosophy called the marketing concept and 2) They develop marketing strategies that satisfy consumers. But, marketers cannot be successful without having information about the marketing environment and the competitors. Marketing Concept: The Marketing concept is a philosophy that holds that the key to achieving organizational goals consists of determining the needs and wants of target market and delivering the desired satisfactions more effectively and efficiently than competitor do. The bottom line is that the focus of the entire firm is on satisfying consumers’ wants and needs (Burns and Bush, 1999). Time has proven that such a philosophy is superior to one in which organization management focuses on production, the product itself, or some promotional gimmick. If you satisfy/protect consumers, they will seek to do business with that particular organization (Burns and Bush, 1999). But how does an organization know what consumers wants and needs if they are to truly endorse marketing concept. However, having the right philosophy is only part of the battle (Sam and Chris). Marketers must implement plans called marketing strategies that actually satisfy consumers’ wants and needs (Burns and Bush, 1999).
  • 15. 15 Marketing Strategy: Marketing strategy consists of selecting a segment of the market as the company’s target market and designing the proper "mix" of product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market (Burns and Bush, 1999). According to Eric, (2008) informedness, hyperdifferentiation technologies, resonance marketing collectively changes all aspects of the marketing strategy of an organization from pricing to product mix and from manufacturing to marketing, sales and distribution. Indeed, this changes all of the four Ps of marketing: price, product, promotion, and physical distribution. Marketing managers need objective, accurate, and current information in order to develop marketing strategies that will work. Even when marketers have the right information to implement an effective marketing strategy, they must be constantly aware of changing environments. This is because marketing strategies is highly dependent upon the economic environment (Burns and Bush, 1999). A change in the environment may alter the appeal of a marketing strategy to consumers (Regis, 2003) and (Robert et al, 1997). Since environments are constantly changing, marketers’ needs for information are never ending. Many organizations watch Federal Reserve Statements very closely, knowing that a change in the interest rate can have a significant impact on their business (Burns and Bush, 1999). Marketers must also keep tabs on the political and legal environment as well as the technological environment because; changes in them will affect business strategies. The telecommunication Act of 1996 caused sweeping changes in the political and legal environment of the communications industry. As a result of the deregulation, broadcasters, cable TV operators, and local and long-distance phone companies are free to enter one another’s market. As carriers begin to market bundles of communication services, they will require information to tailor their products to meet consumer needs (Burns and Bush, 1999).
  • 16. 16 The rate of change in the technological environment is unprecedented in the history of the world. The popularity of the World Wide Web has spurred demand for digital cameras, particularly for online images. To be competitive, all organizations must keep abreast of information about technological changes that may impact their productivity and, in some instances, the ability to survive (Burns and Bush, 1999). The technological environment has blossomed into a resource for transferring critical information as well as lucrative arena for conducting business. Marketers use the electronic environment as a way to gather, communicate with consumers, and learn about consumers (Burns and Bush, 1999). Moreover, the point here is not to discuss all of the forms of environmental change; rather, it is to note that marketers must develop and implement strategies, and those
  • 17. 17 strategies must constantly be revised as required by changing environments. This means marketers constantly need information – they need information provided by marketing research to make quick decisions in order to solve that particular problem the company is facing at that moment (Burns and Bush, 1999). Marketing research process consists of defining the problem and research objective, developing the research plan, collecting the information, analyzing the information, and presenting the findings to management. In conducting research, organizations must decide whether to collect their own data or use the already existing data (James et al, 2000). They must also decide which research approach (observational, focus-groups, survey, behavioural data or experimental) and which research instrument (questionnaire or mechanical instruments) to use. In addition, they must decide on a sampling plan and contact methods. One major reason for undertaking marketing research is to discover market opportunities (Kevin, 2000).
  • 18. 18 Once the research is complete, the organization must carefully evaluate its opportunities and decides which markets to enter (James et al, 2000). Some organizations have developed marketing research information that provides management with rapid and incredible detail about consumer/buyer wants, preferences and behaviours (Patricia, 2001). It all comes down to this essential point, understanding consumer motivation and behaviour is not an option- it is an absolute necessity for competitive survival (James et al, 2000). The consumer is not an unthinking pawn to be manipulated at will by the commercial persuader and, as a rule, he or she is purposeful and goal oriented (James et al, 2000). Products and services are accepted and rejected on the basis of the extent to which they are perceived as relevant to needs and style (James et al, 2000). The individual is fully capable of ignoring everything the marketer has to say, and this ability is used constantly in consumer decisions. Meanwhile consumer is in control of the situation, and hence is sovereign (independent). Marketers succeed when the products or services offer real benefits that meet the consumers’ needs and desires (James et al, 2000). 2.2 HISTORICAL PERSPECTIVES OF MARKETING RESEARCH During the past decade, marketing research has received considerable attention from large organizations. This trend reflects both a long standing neglect of the concept, (Kohli and Jaworski, 1996) and a wide spread acceptance of its importance (Houston, 1986). Meanwhile, building on the initial research by, among other things, significant progress has been made in understanding the conceptualization and measurement of marketing research and evaluating its impact upon business performance. (Deshphande et al, 1993).
  • 19. 19 2.2.1 The Pre-Marketing Research Era The time period from colonization until the industrial revolution is known as the pre- marketing research era. The economy was primarily made up of artisans and craftsmen bartering one good for another. Towns and villages were small and the businesses that served them were also small. Everyone knew what each craftsman or artisan made (Burns and Bush, 1999). The significance of this time period is that the craftsmen or small business owners knew their customers personally. When these conditions exist, even today, there is little need for formal marketing research studies (Burns and Bush, 1999). 2.2.2 The Early Development Era A second period of significance occurred between the industrial revolution and about 1920, which we refer to as the early development era. Several important events had taken place by this time. First, the industrial revolution made an everlasting impact on mankind (Burns and Bush, 1999). For the first time in the history of the world, we had the ability to mass produce goods. Second, transportation systems were developed to move the large quantities of goods streaming forth from the new factories (Burns and Bush, 1999). The St. Lawrence Seaway was opened, which facilitated water transportation along an East-West route and connected the great lakes with the Atlantic (Burns and Bush, 1999). Settlements in the far west developed and grew, and transportation to these markets was aided by the completion of the transcontinental railroad in 1869. Third, means of communication also improved with the introduction of the telegraph in 1844 and the wireless radio in 1906, and literacy levels increased (Burns and Bush, 1999). Both of these developments in communication and increases in literacy were important if companies with factories located in one part of the country were going to advertise their products in distant markets. This meant that business
  • 20. 20 managers were no longer near or acquainted with their customers; they needed marketing research to tell them about these distant consumers (Burns and Bush, 1999). 2.2.3 The Questionnaire Era The time period from 1920 to 1940 is called the questionnaire era. Although the questionnaire survey is said to have first been used in 1824 by some newspaper, and N.W. Ayres and Company is said to have surveyed grain production in each of the states in 1897, questionnaire surveys were in limited use until the 1920s. During World War 1, the military used questionnaires for personnel screening (Burns and Bush, 1999). This increased familiarity with this research tool led to its use in opinion polls conducted by magazine publishers. Severe changes in the economy led to increased use of questionnaires. Therefore, a questionnaire which is still an important tool of marketing research became prominent during the time period between 1920-1940 (Burns and Bush, 1999). 2.2.4 The Quantitative Era The time period from 1940 to 1960 is known as quantitative era. Census data and, in particular, the taking of the censuses of business, led to an interest in statistical analysis. Marketing research was used to set sales quotas and to determine equitable sales territories. It was applied to managerial accounting techniques, such as cost analyses, to determine the costs of distribution (Burns and Bush, 1999). Also, marketing researchers began to borrow methodological techniques from the social sciences. Sampling theory, hypothesis testing, and the application of statistical techniques to hypotheses involving consumers’ behaviour, intentions, and attitudes became part of the marketing research industry’s tool kit. The study of "why people buy," or motivational research, started during this time period. For the first time, the marketing researcher was aided in his or her task of analysis by a new invention – the computer.
  • 21. 21 2.2.5 The Organizational Acceptance Era It wasn’t until about 1960 that marketing research gained real acceptance in business organizations. The period from 1960-1980 was called the organizational acceptance era. As the marketing concept was accepted, the marketing research function was established as a formal part of the organization of the firm (Burns and Bush, 1999). The number of firms having their own research departments grew rapidly during this time period. During this era, other changes were taking place. More firms became involved in international marketing activities requiring management to make decisions about consumers and competition with which they had little, if any, firsthand experience (Burns and Bush, 1999). Worldwide communications and innovations in product and service technologies created a smaller world, but one that was filled with greater diversity and changing environments. To keep up, firms embraced the concept of the marketing information system (MIS), of which marketing research is a key component. Marketing research had not only gained acceptance in the organization but also was recognized as being a key to understanding distant and fast-changing markets. It was needed for survival (Burns and Bush, 1999). 2.2.6 The Technological Era From 1980 to the present is usually called the technological era. Technology has greatly impacted marketing research. A key catalyst to this change was the development of the personal computer (PC) during the late 1970s and the many technological applications that evolved as a result of the PC (Burns and Bush, 1999). Computer-assisted questionnaire programs were developed that allow researchers to design questionnaires that can be administered using the computer; touchscreen entries automatically record data during the interview process. Sophisticated, yet user-friendly software, such as SPSS, evolved during this period (Burns and Bush, 1999). By now, technological applications to the marketing research industry are appearing at a rapid rate and will no doubt continue to significantly impact the industry during the 2000s. Some examples of
  • 22. 22 this new technology include CARD software which refers to computer-aided research design; software which uses computer technology to design questionnaires and automatically enter responses into statistical software; software which uses computers to assist in designing samples and ordering samples online; and software which uses computers to assist in collecting data such as CATI (Computer-aided personal interview); or programs designed to collect information from those having computers such as DBM (Disk-by-mail) or on-line data collection via the Internet. New products designed to be used in the marketing research industry are being introduced almost daily (Burns and Bush, 1999). 2.3 THE ROLE OF MARKETING RESEARCH: INFORMATION TO AID DECISION MAKING. As it is stated earlier in the introduction, the main role of marketing research is to provide information that facilitates marketing decisions. According to Burns and Bush (1999), marketing research can be defined as the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. The American Marketing Association (AMA) has defined marketing research as the function that links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. The first definition focuses on the steps involved in the process of marketing research; that is gathering, analyzing, and reporting information. The AMA definition spells out the basic function as well as the uses of marketing research (Burns and Bush, 1999). However, because the marketing concept implies that the consumer’s needs should be fulfilled, the consumer’s voice must be heard within the organization. As the AMA
  • 23. 23 definition states, marketing research provides this important link; the consumer is ‘‘heard’’ through marketing research (Burns and Bush, 1999). The role of marketing research in an organization is so important that the American Marketing Association’s definition of marketing research specifies the ways that the information provided by marketing research may be used. For example, such information can be used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process (Burns and Bush, 1999). To identify and define marketing opportunities means to define those wants and needs in the market that are not met by the competitors. Vitafoam Nigeria Plc which is one of the leading manufacturing company in the foam and allied products sub-sector in Nigeria have discovered their opportunities in customers’ increasing concerns about comfort, resilience, durability, and versatility (Burns and Bush, 1999). These organizations are frequently introducing new foams to the market that are flexible with medium density, flexible with high density, high quality gauge vinyl, and soft polyester fibre. Vitafoam Nigeria Plc offers a vast array of high quality mattresses that present the customer with multiple choices. The core foam ranges from medium to high density with varied hardness and flexibility. The covering textile comes either as plain or quilted. In addition, these materials are available in a large selection of colours and designs. With the use of contour cutting capabilities, Vitafoam are in a position to design and construct custom-made mattresses, e.g. circular, multiple-layer, thick or thin mattresses. These are market opportunities not only for sleeping purposes but also for mattresses that are comfortable and convenient to sleep on (Burns and Bush, 1999). Many organizations today are searching for opportunities along the ‘‘information highway’’ in healthcare, manufacturing, energy, transportation and so on. Marketers need information to help them identify market opportunities (Burns and Bush, 1999).
  • 24. 24 Opportunities and problems are everywhere but decision makers need information to help them identify and define them adequately (Burns and Bush, 1999). As the nation as become more concerned about environmental hazards and the problem with hazardous waste in landfills, Green Paint & Co. took advantage of this opportunity by developing paint that could be recycled. Almost every home has several gallons of used paint in the garage, basement, or storeroom (Burns and Bush, 1999). Eventually, this hazardous products ends up in a landfill or incinerator. Green Paints & Co has experienced increased in sales by collecting waste paint and producing Green Paints, a line of 90 percent recycled paints in cans that are themselves recyclable. Many organizations today are searching for such opportunities, but they need information to identify and define them adequately (Burns and Bush, 1999). To generate and refine marketing actions means to determine which plan or marketing strategy will best meet market opportunities. What combination of the four Ps [product, price, promotion, and distribution (place)] will best take advantage of an existing marketing opportunity (Burns and Bush, 1999)? Similarly, Ademola, (2008)
  • 25. 25 stated that the four Ps usually arise from a concept known as "Marketing mix" which is define as a factor that helps an organization or firm sell its products. It is also refers to the unique blend of marketing elements designed to meet the needs of the organizations’ target market. More so, the marketing research is used frequently to evaluate the effectiveness of an organization’s marketing mix. The four elements are normally distinguished: getting the right product to the market; selling the product at the right price; ensuring that the promotion is right – that is, advertising and marketing for the products; and ensuring that the product is distributed to the most convenient place for customers to buy it. Moreover, monitoring marketing strategies once they are implemented is a way of maintaining control over the success of a new product or service. Any control system requires feedback of information to management. Marketing research brings that information to management personnel, allowing them to compare actual performance with desired performance standard (Burns and Bush, 1999). 2.4 THE STRUCTURE OF THE MARKETING RESEARCH ORGANIZATION Part of developing an appreciation of any organization is to understand the structure of the organization. By structure, we mean the types and characteristics of the firms making up the organization (Burns and Bush, 1999). In the marketing research industry we refer to providers of marketing research information as research suppliers. There are several ways of classifying suppliers. The classification method developed by Naresh Malholtra, slightly modified for the purpose here. This classification system is shown in the figure below. As shown in this figure, suppliers may be classified as either internal or external (Burns and Bush, 1999).
  • 26. 26 2.4.1 Internal Suppliers This means an entity within the firm supplies marketing research. These firms spend roughly 1 percent of sales on marketing research, whether it is supplied internally or externally. Unilever, Kodak, Ford, Vitafoam, Nestle have research departments of their own. Vitafoam has an in-house research department that constantly monitors consumer satisfaction and environmental trends. It also provides research support to Vitafoam advertising agencies (Burns and Bush, 1999). A firm having its own internal supply of marketing research can elect several organizing methods to provide the research function. It may (1) have its own formal departments, (2) have no formal departments but at least a single individual responsible for marketing research, or it may (3) assign no one responsibility for conducting marketing research. 2.4.2 External Suppliers This are outside firms hired to fulfil a firm’s marketing research needs. Marketing research provides a list of directories useful for finding research firms. Over one-half of firm’s spending on marketing research goes to pay for the services of external suppliers. In 1998 the top 50 marketing research firms in the United States had combined revenues
  • 27. 27 of $5.9 billion, up almost 9 percent from 1997 (Burns and Bush, 1999). Interestingly, a significant percent of these revenues came from work done abroad. This is a definite indication of the globalization of the marketing research industry. Take for instance, Toyota Marketing research is a full-service marketing research division and is organized around four areas: The Toyota customer satisfaction associates offer a standardized service of measuring and managing customer satisfaction (Burns and Bush, 1999). The Toyota Training & Development Centre provides training in marketing research for supplier firms, whether internal or external suppliers. The Toyota Strategic Consulting Group offers intensive consulting to business management (Burns and Bush, 1999). 2.5 THE MARKETING RESEARCH INDUSTRY PERFORMANCE Periodically, evaluations are made of the marketing research industry. These studies have asked buyers of marketing research studies whether the value of the research performed by the suppliers in the industry is worthwhile. In three separate evaluations, the basic conclusion is that the industry has performed well but there is room for improvements. The criticism has focused on the following areas of concern: There is a lack of creativity, the industry is too survey oriented, the industry does not understand the real problems that need studying, market researchers show a lack of concern for respondents, the industry has a cavalier attitude regarding nonresponse error, and the price of the research is high relative to its value. 2.5.1 Suggested Remedy for the Future: Certification Although the evaluations of the industry are "good," few would argue that they are "excellent." Many suggest that the problems are created by a very small minority of firms, most of which simply are not qualified to deliver quality marketing research services. There is obviously a concern among buyers and suppliers with the lack of uniformity in the industry as well (Burns and Bush, 1999). In a study of buyers’ and suppliers’ perceptions of the research industry, it is found that the key issue in the
  • 28. 28 industry is a lack of uniform quality; there are good suppliers and there are poor suppliers. To remedy this, some have recommended either a certification program or a system for auditing marketing research firms (Burns and Bush, 1999). Some have argued that marketing research attracts practitioners who are not fully qualified to provide adequate service to buyer firms. There are no formal requirements, no education level, no degrees, no certificates, no licenses, and no tests of any kind required to open up a marketing research business (Burns and Bush, 1999). Certainly, the vast majority of research firms have staffs thoroughly trained in research methods and have years of excellent performance. However, some say, it is those few firm with unqualified personnel and management that tarnish industry’s image (Burns and Bush, 1999). 2.6 CHARACTERISTICS OF MARKETING RESEARCH There are so many characteristics of marketing research but all cannot be discuss here. In these research works, two will be revealed which include (1) Sometimes inaccurate and (2) shaped by budget and time constraint (Burns and Bush, 1999). 2.6.1 Sometimes Inaccurate Unfortunately marketing research results are sometimes inaccurate. This, however, is not so surprising when we consider that most marketing research seeks to predict human behaviour. Humans are neither stable nor constant in their attitudes, beliefs, or behaviours. Consumers are in a constant state of flux—changing brands, store preferences, fashions, attitudes toward companies, and so on (Burns and Bush, 1999). This means that it is very difficult to predict consumers’ behaviour with any high degree of accuracy. For example, Pellyfoam introduced a Baby Cot Mattresses, to compete with the market leader, Vitafoam. The product failed even though a marketing research
  • 29. 29 firm, meanwhile, Pellyfoam workers had thought that the baby cot mattresses would surpass Vitafoam’s market share but it’s quite unfortunate that the baby cot mattresses did not meet the needs, wants, and desire of the consumer because the cot mattresses which was suppose to be made from medium density flexible foam covered with colourful polyvinyl chloride (PVC) which is an ideal mattresses for a child’s comfort and pleasure was made from a high density flexible foam. Of course, everyone is familiar with the now famous attempt by Coca-Cola to abandon its ‘‘classic’’ Coke in favour of ‘‘New’’ Coke. Even though New Coke’s formulation was preferred by consumers in marketing research involving more than 190,000 people, Coke’s research did not provide a clue that the public would be upset with its decision to replace the old Coke product with the New Coke. Coca-Cola move hurriedly to put ‘‘Classic Coke’’ back on the shelves (Burns and Bush, 1999). 2.6.2 Shaped by Budget and Time Constraints Marketing research can be very expensive. It is not uncommon for researchers to design studies for clients only to have top management ask for the same study at half the proposed cost. Time constraints arise because companies often seek marketing input after their product is already performing poorly in the market. Such companies want immediate results (Burns and Bush, 1999). Operating under budget and time constraints, marketing researchers realize there must be trade-offs if the project is to be completed using the money and time available. How is this accomplished? What, if anything, is compromised? Obviously, t is easier to make budget and time decisions regarding projects that fall at either end of the ‘‘importance’’ spectrum—those that are very unimportant or those that are extremely important (Burns and Bush, 1999). But what about the projects that fall in the middle? In such cases, the company’s philosophy regarding the value and use of marketing research plays a role in deciding whether to use marketing research and how much money and time to allocate to it. In other words, if the company places a high value on
  • 30. 30 marketing information, then it will pursue it; if it does not, it will not pursue it (Burns and Bush, 1999). 2.7 THE FUTURE OF MARKETING RESEARCH Some experts in the industry believe that marketing research, as we know it today, is due to undergo vast changes in the near future. They base this belief on the notion that technological advances in information processing have greatly increased the availability and applicability of information to the point that managers will find less need to conduct traditional ‘‘projects’’ or ‘‘ad hoc studies’’ (Burns and Bush, 1999). The New Marketing Research Systems portrays the future (indeed, the present!) world of information technology as one that allows managers access to a continuous flow of real- world data (i.e. scanning data), augmented by embedded ‘‘experiments’’ illustrating consumer reactions to price changes, TV ads, and in-store point-of-purchase materials (i.e., single source data) (Burns and Bush, 1999). In addition, new technology allows managers to determine the characteristics of those purchasing their products/services and then to target individuals or small ‘‘microtargets’’ of consumers, with marketing strategies; for instance, by using databases and geodemographic programs (Burns and Bush, 1999). As decision makers are armed with such information, it is belief that traditional marketing research studies will be outdated. Others argue that there are pitfalls in the ‘‘new’’ information systems and that there is room for traditional marketing research studies and these new systems to coexists as the two are complementary (Burns and Bush, 1999). So, our conclusion is that technology is having a tremendous impact on marketing research and the types of marketing research studies will change as technological improvements occur. Furthermore, we still see a world full of managers who need a lot of information to help
  • 31. 31 them make their decisions. The future for marketing research is bright (Burns and Bush, 1999). 2.8 TAILORING THE PRODUCT Merchandise that is generally similar in style or design, but may vary in such elements as size, price, and quality is collectively known as a Product line (Brett, 2008). Merchandise according to Encarta dictionary simply means goods bought and sold for profit. Most marketers believe that product lines must be closely correlated with consumer needs and wants (Brett, 2008). Organization tends to change product items and lines after a period of time to gain a competitive advantage, to respond to changes in the economic climate, or to increase sales by encouraging consumers to buy new model. For example, if the economy weakens, a manufacturer might use cheaper parts to make a product more affordable (Brett, 2008). Sometimes, manufacturers will alter the style rather than the quality of the commodity e.g. the appearance or functionality of an automobile might be altered. The practise of changing the appearance of goods or introducing inferior parts or poor workmanship in order to motivate consumers to replace products is known as Planned Obsolescence (Brett, 2008). Meanwhile, some people object that this practise leads to waste or can be unethical (Brett, 2008). The popularity of all products eventually wanes (diminish). In fact, successful products go through what is called a product life cycle, which describes the course of a product’s sales from its introduction and growth through maturity and decline (Brett, 2008). Because products are always aging and sales of even the most successful products eventually decline, firms must continually develop and introduce new things (Brett, 2008).
  • 32. 32 However, marketing research begins with the analysis of consumer behaviour, which is define as those acts of individuals directly involved in obtaining, using and disposing of economic goods and services, including the decision processes that precede and determine these acts (James et al, 2000). 2.9 CHANGES IN CONSUMER BEHAVIOUR Information availability has increased consumers’ informedness the degree to which they know what is available in the marketplace, with precisely which attributes and at precisely what price (Eric, 2008). This informedness has altered the demand side of market behaviours: customers now discount more heavily when comparable products are available from competitors and when products do not meet their wants, needs, cravings, and longings, but they no longer discount as heavily when purchasing unfamiliar products (Eric, 2008). Changes in the demand side are producing comparable changes in the supply side: organization earn less than their expectations when competing in traditional mass-market fat spots, while earning far more than previously when entering newly created resonance marketing sweet spots (Eric, 2008). We trace the impact of hyperdifferentiation and resonance marketing on strategy, with a clear progression from a limited number of fat spots, through reliance on line extensions and ultimately to fully differentiated market sweet spots (Eric, 2008). Mass-market fat spots is a situation whereby customers could not learn about the marketplace, producers could not know their customers, and the cost of trying to provide a complex range of numerous products and services was extremely unfavourable (Eric, 2008). Meanwhile, Mass-market sweet spots is a situation whereby customers could learn about the marketplace, producers could know their customers, and the cost of trying to provide a complex range of numerous products and services was extremely advantageous (Eric, 2008).
  • 33. 33 The most obvious change in the marketplace is the tremendous increase in product variety (hyperdifferentiation), enabled by changes both in manufacturing technologies and in distribution (Eric, 2008). As importantly, the change in product variety is profitable because of changes in consumer behaviour (resonance marketing), as consumers select exactly what they want at prices that reflect how well their selections match their wants and needs, cravings and longings (Eric, 2008).Resonance marketing is more than just trading up, and includes trading up, trading down, and trading out, simultaneously, in a single consumer. Trading up of course occurs when a customer moves from a Chevy to a Caddy, or switches to first class air travel. Trading down occurs when a customer switches to coach air travel on a discount airline, or to a less expensive hotel. Trading out occurs when a customer switches from candy bars to power bars, or from a lager to a heavily hopped craft brewed American Pale Ale. Not surprisingly, a customer may exhibit all three behaviours, trading up in some categories, trading down in other categories, and trading out in still others (Eric, 2008). While hyperdifferentiation and resonance activities include the long tail effect, in which far more choice is available to consumers. But the changes in marketing represent significantly more than simply the long tail. The long tail usually stresses changes in distribution. Hyperdifferentiation and resonance focus on finding what each consumer wants and what each will pay for (Eric, 2008). It is newly easy to create hyperdifferentiated and profitable products that resonate with customers. It is possible to design products and services for customers whose "needs, desires, cravings and longings" are not yet met in the marketplace (Eric, 2008). It is possible to design for those customers most willing to pay for what they want. But until recently there was little advantage from doing so. Historically, the most demanding customers, those most willing to pay for what they want, also discounted the most in the presence of uncertainty (Eric, 2008).
  • 34. 34 Historically, new offerings suffered from uncertainty. But, with "word of mouse" reducing the uncertainty consumers’ face when considering unfamiliar choices, the ability of producers and service providers to launch new premium offerings has never been better (Eric, 2008). There are a few important strategic implications that become clearly only after understanding the changes in customer behaviour and the increased ability to exploit these changes is through resonance marketing and hyperdifferentiation (Eric, 2008). Resonance marketing is not about being better in any absolute sense; it is about being better for each customer. Take for instance, a Lexus in many dimensions is better than a simple Toyota, just as an Infiniti is better than a Nissan A Lexus may or may not be better for an individual driver, based on a diverse set of preferences, including handling, comfort, styling, and acceleration (Eric, 2008). When the consumer is viewed in the proper perspective, the outcomes can be quite positive for the manufacturer or supplier (Carl and Hal, 2000). The success of any organizations is traced in large part to a skilful use of marketing research which is very expensive (James et al, 2000). Yet, motivation and behaviour can be understood through marketing research and perfect prediction is never possible, but properly designed and used research efforts can significantly lower the risks of marketing failure (Kotler et al, 2002). It is almost always necessary to recognize that a market for any product or service is likely to be highly segmented and the starting point in marketing planning is always with the consumer (James et al, 2000). This means that there are various groupings of present or potential buyers that differ sharply from one another. There can be real variation in expected benefits (James et al, 2000). The alert marketer capitalizes on these differences through a strategy of market segmentation, in which each segment is viewed as a distinct market target with its own requirements for product, price, distribution, and so on (James et al, 2000). The new networked economy is not just the
  • 35. 35 old industrial economy with a mess of wires hanging off it. Even mass-produced consumer products like detergents, bread, mattresses (rubber foam), and soft drinks, or traditional consumer durables like automobiles, are changing (Eric, 2008). Design, production, sales, distribution, and service are all being altered by the information flows in our networked world (Eric, 2008). Effective modern marketing research enables an organization to achieve greater profitability by responding to changes in consumer behaviour that result from changes in consumers’ access to and use of information (Robert et al, 2001). It is about selling more mattresses, bread and cheese, or cars, or beer; as importantly, it is about selling more expensive mattresses, bread and cheese, or cars, or beer. It is not about tricking consumers into paying more, but about finding out exactly what consumers want, informing them about it accurately, and charging them prices that they are willing to pay (Eric, 2008). 2.10 CONSUMER PROTECTION The term applied to the efforts of government, public-interest organizations, individuals, and businesses to establish, protect, and enforce the rights of people who buy products such as food and automobiles or services such as health care and insurance (Karpatkin and Been, 2008). It can also be defined as a form of government regulation which protects the interests of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food (Karpatkin and Been, 2008). Consumer protection is linked to the idea consumer rights (that consumers have various rights as consumers), and to the formation of consumer organizations which help consumers make better choices in the marketplace. Customer interests can also be
  • 36. 36 protected by promoting competition in the markets which directly and indirectly serve consumers, consistent with economic efficiency (Karpatkin and Been, 2008). The basic rights of consumers, as set forth by U.S. president John F. Kennedy in his 1962 message to congress on consumerism, are the following: (1) the right to safety; (2) the right to be informed; (3) the right to chose; and (4) the right to be heard. Each of these rights is of major importance in the objectives of the consumer-protection movement (Karpatkin and Been, 2008). 2.10.1 THE RIGHT TO SAFETY Product offered for sale should not pose undue risk of physical harm to consumers or their families (Karpatkin and Been, 2008) ; and according to a U.S. management expert Richard, (2000) which quoted that ‘‘customer is the most important part of the production line’’ yet in a recent year, for example, over millions of people in Nigeria were reported injured—and thousands were killed—in product–related accidents (Karpatkin and Been, 2008). Products that cause injuries include impure foods, defectively manufactured automobiles and tires, defectively manufactured mattresses, drugs that have harmful side effects, and unsafe appliances (Karpatkin and Been, 2008). The U.S. federal government agency responsible for ensuring the safety of most products is the Consumer Product Safety Commission (CPSC) (Karpatkin and Been, 2008). The CPSC was established in 1973 to protect the public from unreasonable risk of injury caused by consumer products; to assist consumers in comparing the safety of various items; to develop uniform safety standards; and to promote research about the causes and prevention of product-related deaths, illnesses, and injuries (Karpatkin and Been, 2008). It has broad authority to create and enforce safety standards for more than
  • 37. 37 10,000 consumer products and can ban hazardous items or recall them from the marketplace (Karpatkin and Been, 2008). The CPSC is responsible for enforcing the Flammable Fabrics Act (1953) which requires fabrics to meet standards of fire resistance, as well as the Poison Preventing Packaging Act (1970), and the Hazardous Poison Act (1960), which ban the use of certain dangerous substances and require warnings and safety information on the labels of others. The CPSC does not have authority over food, drugs, or motor vehicles (Karpatkin and Been, 2008) The Food and Drug Administration (FDA) is charged with ensuring that processed foods, drugs, medical devices, and cosmetics are safe and properly labelled; that foods are wholesome (health-giving); and that drugs are effective (Karpatkin and Been, 2008). It has the power to seize unsafe products and to criminally prosecute businesses that violate safety laws and standards (Karpatkin and Been, 2008). The FDA inspects food- processing plants to be sure that foods are made and packaged under sanitary conditions (Karpatkin and Been, 2008). The agency must approve the safety and efficacy of all new prescription drugs before they can be marketed. The FDA also sets safety standards for radiation-emitting products such as microwave ovens (Karpatkin and Been, 2008). Motor-vehicle safety is regulated by the National Highway Traffic Safety Administration (NHTSA) which sets highway safety standards, investigates reported safety-related motor-vehicle defects, and enforces laws regarding the correction of such defects (Karpatkin and Been, 2008). NHTSA can require the recall of defective automobiles or automotive parts; in fact, since 1966 manufacturers have recalled more than 118million vehicles (Karpatkin and Been, 2008). 2.10.2 THE RIGHT TO BE INFORMED Consumers need sufficient information in order to choose wisely among the competing products and services available (Karpatkin and Been, 2008). The
  • 38. 38 marketplace, however, contains a great many different and complex products, and advertising is usually not informative enough for consumer purposes (Karpatkin and Been, 2008). Therefore, consumers often lack the information required to compare the quality of various products and services, to determine their true cost, or to be assured of their suitability or safety (Karpatkin and Been, 2008). To ensure that consumers have the information they need to buy wisely, the federal and many state have passed several important laws directing businesses to disclose necessary information (Karpatkin and Been, 2008). The federal Fair Packaging and Labelling Act (1966), for example, require that packages be labelled truthfully with such basic facts as quantity and ingredients. The federal Truth in Lending Act (1968) requires that consumers be told in clear, accurate, and uniform terms how much it costs them to borrow money from a lender (Karpatkin and Been, 2008). Unit-pricing laws in some states require supermarkets to show the cost of an item per pound, quart, or count (for paper goods), so that shoppers can compare the cost of different sizes of products. Many states require the dating of perishable foods to enable buyers to choose fresh foods (Karpatkin and Been, 2008). Many consumer problems are caused by incorrect or fraudulent information. The Federal Trade Commission (FTC) bears the primary responsibility for making sure that advertising and labelling are not false or misleading (Karpatkin and Been, 2008). Consumers often used more than just the information sellers disclose. For instance, firms rarely volunteer information about the shortcomings of their products (Karpatkin and Been, 2008). To provide essential comparative information, several private, independent organizations test products and report their findings to interested consumers. Each issue of Consumer Reports rates various products by brand names according to the results of laboratory and use tests, provides advice on services such as
  • 39. 39 banking and insurance, and reports on recalled items (Karpatkin and Been, 2008). Consumers Union accepts no advertising and pledges that its reports are free from bias and any commercial ties (Karpatkin and Been, 2008). 2.10.3 THE RIGHT TO CHOOSE The structure of the American economic system is based on the belief that, generally, competition is the best regulator of the marketplace (Karpatkin and Been, 2008). According to this theory, when many companies are selling a product the effort of each to attract more customers keeps prices at the lowest level that allows businesses to cover costs and make a fair profit (Karpatkin and Been, 2008). When a market is not competitive, sellers can set the prices as high as they wish, up to the level where consumers simply will not buy the product (Karpatkin and Been, 2008). To preserve competition in the marketplace, federal laws make it illegal for businesses to monopolize an industry, restrain trade, or fix prices (Karpatkin and Been, 2008). 2.10.4 THE RIGHT TO BE HEARD A consumer who has been cheated or who has bought a product or service that does not perform properly has a right to seek a refund, replacement of the product, or other remedy (Karpatkin and Been, 2008). Sometimes, however, a buyer finds that the manufacturer or seller will not cooperate in resolving the complaint. In recent years law have been passed to help dissatisfied consumers (Karpatkin and Been, 2008). Some laws declare certain deceptive business practices illegal and give consumers the right to sue a business believed to be violating the law. A consumer who wins such suit can sometimes collect up to three times the amount of the damages (Karpatkin and Been, 2008).
  • 40. 40 Federal, state, and local governments have established offices or agencies to help protect consumers or to resolve disputes between consumers and businesses (Karpatkin and Been, 2008). The communications media—newspapers, televisions, and radio— often aid consumers through services such as "action lines." Some business–sponsored agencies such as the Major Appliance Consumer Action Panel can sometimes help those who have a complaint about a product, service, or business practise (Karpatkin and Been, 2008). The Better Business Bureau, a business association, makes information about complaints it has received against businesses available to interested parties (Karpatkin and Been, 2008). The right to be heard also means that the needs of consumers should be considered when government decisions affecting them are made (Karpatkin and Been, 2008). Under President Gerald Ford, for example, executive agencies and departments were ordered to establish procedures to consider the views of consumers in certain policymaking areas (Karpatkin and Been, 2008).
  • 41. 41 CHAPTER THREE RESEARCH METHODOLOGY 3.1 STUDY AREA The focus of this study will strictly be on the role of marketing research system in an organizational decision making. The emphasis of the study is on a selected manufacturing company in Nigeria: VITAFOAM NIGERIA PLC. Effort would also be made to put some other manufacturing companies and service providers into consideration for the purpose of this research work in order to cover a wide span of the role of marketing research system in an organizational decision making. 3.2 POPULATION OF THE STUDY Population can be defined as the sum total of the various element from which samples are drawn or it refers to the group of people from which information is to be obtained be it human or otherwise. The population for this study refers to the organizations which engage in foam production in Nigeria and it will also involve their distributors. 3.3 SAMPLING FRAME Since there are many organizations that engage in foam production in Nigeria, it will not be convenient to cover the entire population. Hence, a sample size is determined and for the purpose of this research work, Vitafoam Nigeria Plc, Oba Akran Avenue, Ikeja in which there are over 100 employees and about 25 distributors in Lagos area is chosen or selected as the sampling frame. 3.4 SAMPLING METHOD AND SAMPLE SIZE Since the chosen organization has large number of staff on their payroll, the researcher has decided to use simple random sampling. By this, sample will be chosen which is considered to be most representatives and the required information could be obtained through this representatives.
  • 42. 42 Meanwhile, the sampling size is a drawn subset of the total population. For the purpose of this research work, the researcher decided to narrow to the organization marketing research department. In all, a total of 20 employees will be used as the study sample, while the total number of distributors that will be use is 10. Thirty questionnaires would be administered for forty samples. 10 questionnaires for marketing department, 5 questionnaires for research and development, 5 questionnaires for advertising, product branding etc. 3.5 SOURCES OF DATA The methods used in collecting the relevant data for this project are from both primary and secondary sources. The primary source includes questionnaires and personal interviews. The questionnaires are used because of the convenience associated with it and also it will be made simple and unambiguous. Meanwhile, the personal interview will complement the use of questionnaire for a more definite conclusion. 3.6 DATA COLLECTION INSTRUMENTS 3.6.1 DESCRIPTION OF DATA COLLECTION INSTRUMENTS The researcher has chosen to use questionnaires as instrument of research. Questionnaire is a veritable and indispensable tool in carrying out survey. It is a soft question design to elicit some information or data for analysis. The researcher has structured the question in a formal way that would bring out yes/no, agreed/strongly disagreed, low/very low/indifferent. This enables the respondents to give a brief answer and here the respondents are usually confirmed to a specific answer. 3.6.2 METHOD OF ADMINISTRATION The results elicited from the response are tabulated for simple analysis. Each question is given specific treatment so as to derive some information that might help in the researcher’s finding. In testing response from the respondents,
  • 43. 43 opinion about the topic would be known. Hence, the use of Chi-Square would become very useful for the researcher in analyzing the opinion of the respondents. Meanwhile, in order to ensure that adequate provision is made to guarantee the inclusion of the relevant respondents in the same proportion, stratified sampling will be used. The study will be stratified into: [i] Top level management [ii] middle level management [iii] low level management. 3.6.3 METHOD OF DATA ANALYSIS Analysis is a detailed examination in which final conclusion about the relationship that exists in the study can be drawn. Considering the nature and purpose of this research work, the researcher employed both descriptive and quantitative methods in the analysis of the data collected. The descriptive method is used in describing and explaining information obtained from the administered questionnaire while the quantitative method includes the table presentation. Data obtained from questionnaire responses were grouped on a frequency table which showed the percentage of distribution of responses on each of the questions on the questionnaire. 3.7 STATISTICAL TOOLS OF ANALYSIS Data collected from the survey were analysed using both descriptive and inferential tools of statistical analysis. The descriptive tool include simple percentage table. The tables were drawn to analyze the response of respondents. Chi-square test of hypothesis was also used. The use of Chi-square is based on the sample size for the questionnaire, assuming a 5% degree of confidence. The Chi-square method is given below:
  • 44. 44 3.7.1 JUSTIFICATION The tools for analyzing this study (Chi - Square), is used because the responses for the research are in the mutually exclusive form and the data collected are analysed based on their frequencies and percentages of occurrence. Chi – Square, symbolized as X2 , is a non-parametric test of significance appropriate when the data are in the form of frequency counts or percentages and proportion that can be converted to frequencies. Two or more mutually exclusive categories are required. Thus, Chi – Square s appropriate the tool for the study.
  • 45. 45 CHAPTER FOUR RESULTS AND DISCUSSIONS 4.1 INTRODUCTION This chapter presents the analysis and interpretation of the data gathered in the process of this research work. 4.2 RATE OF RESPONSE TO QUESTIONNAIRE 30 questionnaires were administered for the purpose of data collection. This was made up of 10 questionnaires for the distributors and 20 for the employees. Of the 10 administered to distributors, 8 were completed and returned giving a response rate of 80%, while all the 20 given to the employees were returned (i.e. 100% return rate). 4.3 PRESENTATION OF DATA SECTION A: DEMOGRAPHIC DATA. Table 4.3.1. Distribution of age Age Response Percentage 20-30 12 60 31-40 7 35 41-50 1 5 Above 50 Nil 0 Total 20 100 Source: Field Survey, 2009. In the table above, the analysis shows that 60% of the population is within the age of 20-30 years, 35% is between the ranges of 31-40 years, 5% is between the ranges of 41-50, while 0% falls within the range of Above 50. Table 4.3.2 Distribution of Sex. Sex Response Percentage Male 15 53.57
  • 46. 46 Female 13 46.43 Total 28 100 Source: Field Survey, 2009. In the above, the analysis shows that 53.57% of the population are male while the remaining 46.43 are female. Table 4.3.3 Distribution of Educational qualification. Educational qualification Response Percentage SSCE/O’level 6 21.43 OND/A’ level 13 46.43 HND/BSc 7 25 MSc/MBA 0 0 Professionals 1 3.57 Others 1 3.57 Total 28 100 Source: Field Survey, 2009. In table 4.3.3 above, the analysis shows that 21.43% of the respondents are SSCE/O’level, 46.43% are OND/A’ level holders, 25% are HND/BSc holders, 3.57% are professionals, 3.57% are others, while none holds MSc/MBA. Table 4.3.4. Distribution of Managerial Cadre. Managerial Cadre Response Percentage Top level 6 30 Middle level 10 50 Lower level 4 20 Total 20 100 Source: Field Survey, 2009. In table 4.3.4 above, the analysis indicates that 30% of the respondents are Top level, 50% are middle level, while 20% are lower level managers.
  • 47. 47 SECTION B: EMPLOYEES 1. There is no relationship between marketing research and Information. Table 4.3.5 Response Percentage Strongly Agree 4 20 Agree 2 10 Indifferent Nil 0 Disagree 7 35 Strongly Disagree 7 35 TOTAL 20 100 Source: Field Survey, 2009. In the table above, 20% of the population strongly agreed that there is no relationship between marketing research and information, 10% agreed with the statement, 35% disagreed, 35% strongly disagreed with the statement while none is of the opinion that it is indifferent. From the table above, and accordance with the objectives of the study, it is obvious that there is a relationship between marketing research and information. 2. Marketing research helps an organization to identify marketing opportunities. Table 4.3.6 Response Percentage Strongly Agree 1.3 65 Agree 7 35 Indifferent Nil 0 Disagree Nil 0 Strongly Disagree Nil 0 TOTAL 20 100 Source: Field Survey, 2009. 65% of the respondents are of the opinion that marketing research helps an organization to identify marketing opportunities, 35% agreed to this, while none disagreed, none is of the opinion that it is indifferent, and none strongly
  • 48. 48 disagreed. From the table above and in agreement with the objectives of the study it is clear that marketing research helps an organization to identify marketing opportunities. 3. Information generated through marketing research plays a vital role in the marketing decision process. Table 4.3.7 Response Percentage Strongly Agree 11 55 Agree 9 45 Indifferent Nil 0 Disagree Nil 0 Strongly Disagree Nil 0 TOTAL 20 100 Source: Field Survey, 2009. 55% of the respondents strongly agreed that information generated through marketing research plays a vital role in the marketing decision making process, 45% agreed, while none is of the opinion that it is indifferent, none disagreed and none strongly disagreed. From the table above and in agreement with the objectives of the study, it is evident that information generated through marketing research plays a vital role in the marketing decision making process. 4. Marketing research system has a great influence on Organizational Performance. Table 4.3.8 Response Percentage Strongly Agree 8 40 Agree 12 60 Indifferent Nil 0
  • 49. 49 Disagree Nil 0 Strongly Disagree Nil 0 TOTAL 20 100 Source: Field Survey, 2009. 40% of the respondents strongly agreed that marketing research system has a great influence in organizational performance, 60% agreed with the statement, none disagreed and strongly disagreed while none is of the opinion that it is indifferent. From the table above and in accordance with the objectives of the study, it is certain that marketing research system has a great influence in organizational performance Table 4.3.9 5. There is no relationship between marketing research and consumer protection. Response Percentage Strongly Agree 2 10 Agree 2 10 Indifferent 2 10 Disagree 9 45 Strongly Disagree 5 25 TOTAL 20 100 Source: Field Survey, 2009. 10% strongly agreed that there is no relationship between marketing research and consumer protection, 10% agreed with the statement, 10% is of the opinion that it is indifferent, 45% disagreed with the statement while 25% strongly disagreed with the statement. From the table above and in conformity with the objectives of the study, it is evident that there is a relationship between marketing research and consumer protection. Table 4.3.10 6. Through marketing research my organization has been able to improve its services and protect its consumers.
  • 50. 50 Response Percentage Strongly Agree 13 65 Agree 15 25 Indifferent 1 5 Disagree 1 5 Strongly Disagree Nil 0 TOTAL 20 Nil Source: Field Survey, 2009. 65% strongly agreed that through marketing research my organization has been able to improve its services and protects its customers, 25% agreed with the statement, 5% is of the opinion that it is indifferent, 5% disagreed with the statement while none strongly disagreed with the statement. From the table above and in accordance with the objectives of the study, it is evident that through marketing research the organization has been able to improve its services and protect its consumers. Table 4.3.11 7. Globalization and changes in the interests and desires of consumers are among the factors affecting effective marketing research system in organization. Response Percentage Strongly Agree 5 25 Agree 6 30 Indifferent 5 25 Disagree 4 20 Strongly Disagree Nil 0 TOTAL 20 100 Source: Field Survey, 2009. 25% strongly agreed that Globalization and changes in the interests and desires of consumers are among the factors affecting effective marketing research system in organization, 30% agreed with the statement, 25% is of the opinion that it is indifferent, 20% disagreed while none strongly disagreed with the statement. From the above table, and in agreement with the objectives of the
  • 51. 51 study, it is obvious that globalization and changes in the interests and desires of consumers are among the factors affecting effective marketing research system in organization. SECTION C. a. Revenue generation. Table 4.3.12 Response Percentage Low 1 5 Very low 1 5 Indifferent 3 15 Very high 3 15 High 12 60 TOTAL 20 100 Source: Field Survey, 2009. 5% of the respondent is of the opinion that the effect of marketing research system on Revenue generation is low, 5% is of the opinion that it is very low, 15% agreed that the statement is indifferent, 15% is of the opinion that it is very high, while 60% agreed that it is high. b. Profit yield. Table 4.3.13 Response Percentage Low Nil 0 Very low 2 10 Indifferent Nil 0 Very high 4 20 High 14 70 TOTAL 20 100 Source: Field Survey, 2009.
  • 52. 52 10% of the respondent agreed that the effect of marketing research system on Profit yield is very low, 20% is of the opinion that it is very high, 70% is of the opinion that it is high, while none is of the opinion that the statement is low and indifferent. Table 4.3.13 c. Capacity for risk taking Response Percentage Low 5 25 Very low 2 10 Indifferent 5 25 Very high 5 25 High 3 15 TOTAL 20 100 Source: Field Survey, 2009. 25% of the respondent is of the opinion that the effect of marketing research system on capacity for risk taking is low, 10% of the respondent agreed that it is very low, 25% of the respondent is of the opinion that the statement is indifferent, 25% is of the opinion that it is very high while 15% is of the opinion that it is high. Table 4.3.13 d. Identification of market opportunities. Response Percentage Low 2 10 Very low 2 10 Indifferent Nil 0 Very high 5 25 High 11 55 TOTAL 20 100 Source: Field Survey, 2009.
  • 53. 53 10% of the respondent is of the opinion that the effect of marketing research in the identification of market opportunities is low, 10% agreed it is very low, 25% agreed it is very high, 55% agreed the statement is high while none is of the opinion that the statement is indifferent. Table 4.3.14 e. Customer Service Improvement. Response Percentage Low Nil 0 Very low 5 25 Indifferent 1 5 Very high 4 20 High 10 50 TOTAL 20 100 Source: Field Survey, 2009. 25% is of the opinion that the effect of marketing research on customer service improvement is very low, 5% is of the opinion that the statement is indifferent, 20% agreed that the statement is very high, 50% agreed that the statement is high while none is of the opinion that the statement is low. Table 4.3.15 f. Branch Expansion. Response Percentage Low 3 15 Very low 2 10 Indifferent 2 10 Very high 4 20 High 9 45 TOTAL 20 100 Source: Field Survey, 2009. 15% of the respondent is of the opinion that the effect of marketing research system on branch expansion in organization is low, 10% agreed that the statement is very low, 10% is of the opinion that it is indifferent, 20% agreed that
  • 54. 54 the statement is very high while 45% of the respondent is of the opinion that the statement is high. Table 4.3.16 g. Staff Welfare. Response Percentage Low 3 15 Very low 4 20 Indifferent 5 25 Very high Nil 0 High 8 40 TOTAL 20 100 Source: Field Survey, 2009. 15% of the respondent is of the opinion that the effect of marketing research system on staff welfare in an organization is low, 20% of the respondent agreed that the statement is very low, 25% is of the opinion that the statement is indifferent, 40% agreed that the statement is high, while none agreed that the it is very high. 4.4 TEST OF HYPOTHESIS. QUESTION 3 (SECTION B). Table 4.4.1 Managerial Cadre Strongly Agree Agree Indifferent Disagree Strongly Disagree TOTAL Top level 3 0 1 2 0 6 Middle level 0 5 0 0 5 10 Lower level 1 0 1 1 2 4 TOTAL 4 5 2 0 7 20 Source: Field Survey, 2009.
  • 55. 55 COMPUTATION OF EXPECTED FREQUENCY. For row A, column 1, Fe = 6 X 4 = 1.2 20 For row A, column 2, Fe = 6 x 5 20 = 1.5 For row A, column 3, Fe = 6 x 2 20 = 0.6 For row A, column 4, Fe = 6 x 3 20 = 0.9 For row A, column 5, Fe = 6 x 7 20 = 2.1 For row B, column 1,
  • 56. 56 Fe = 10 x 4 20 = 2.0 For row B, column 2, Fe = 10 x 5 20 = 2.5 For row B, column 3, Fe = 10 x 2 20 = 1.0 For row B, column 4, Fe = 10 x 3 20 = 1.5 For row B, column 5, Fe = 10 x 7 20 = 3.5 For row C, column 1, Fe = 4 x 4 20 = 0.8 For row C, column 2, Fe = 4 x 5 20 = 1.0 For row C, column 3,
  • 57. 57 Fe = 4 x 2 20 = 0.4 For row C, column 4, Fe = 4 x 3 20 = 0.6 For row C, column 5, Fe = 4 x 7 20 = 1.4 COMPUTATION OF CHI – SQUARE Table 4.4.2 Fo Fe (Fo - Fe) (Fo - Fe)2 (Fo - Fe)2 Fe 3 1.2 1.8 3.24 2.70 0 1.5 -1.5 1.5 1.50 1 0.6 0.4 0.16 0.27 2 0.9 1.1 1.21 1.34 0 2.1 -2.10 4.41 2.10 0 2.0 -2.00 4.00 2.00 5 2.5 2.5 6.25 2.50 0 1.0 -1.0 1.0 1.00 0 1.5 -1.5 2.25 1.50
  • 58. 58 5 3.5 1.5 2.25 0.64 1 0.8 0.2 0.04 0.05 0 1 -1 1 1.00 1 0.4 0.6 0.36 0.90 1 0.6 0.4 0.16 0.27 2 1.4 0.6 0.36 0.26 TOTAL X2 C= 18.03 Source: Field Survey, 2009. X2 C = 18.03 and X2 t = 15.507. CRITICAL VALUE. (R-I)(C-1) = (3-1)(5-1) (2)(4) = 8. Level of Confidence = 5% = 0.05 X2 t = 15.507. DECISION: Since X2 C is greater than the obtained X2 t, the null hypothesis "Ho" should be rejected while the alternative hypothesis should be accepted. Hence, Information generated through marketing research plays a vital role in the marketing decision making process. TEST OF HYPOTHESIS QUESTION 4 (SECTION B). Table 4.3.3 Managerial Cadre Strongly Agree Agree Indifferent Disagreed Strongly Disagreed TOTAL
  • 59. 59 Top Level 3 1 0 2 0 6 Middle level 0 5 0 0 5 10 Lower level 1 0 2 1 1 4 TOTAL 4 6 2 3 6 20 Source: Field Survey, 2009. COMPUTATION OF EXPECTED FREQUENCY For row A, column 1, Fe = 6 x 4 20 = 1.2 For row A, column 2, Fe = 6 x 6 20 = 1.8 For row A, column 3, Fe = 6 x 2 20 = 0.6 For row A, column 4, Fe = 6 x 3 20 = 0.9
  • 60. 60 For row A, column 5, Fe = 6 x 6 20 = 1.8 For row B, column 1, Fe = 10 x 4 20 = 2.0 For row B, column 2, Fe = 10 x 6 20 = 3.0 For row B, column 3, Fe = 10 x 2 20 = 1.0 For row B, column 4, Fe = 10 x 3 20 = 1.5 For row B, column 5, Fe = 10 x 6 20 = 3.0 For row C, column 1, Fe = 4 x 4 20 = 0.8
  • 61. 61 For row C, column 2, Fe = 4 x 6 20 = 1.2 For row C, column 3, Fe = 4 x 2 20 = 0.4 For row C, column 4, Fe = 4 x 3 20 = 0.6 For row C, column 5, Fe = 4 x 6 20 = 1.2 COMPUTATION OF CHI – SQUARE Table 4.4.3 Fo Fe (Fo - Fe) (Fo - Fe)2 (Fo - Fe)2 Fe 3 1.2 1.8 3.24 2.70 1 1.8 0.8 0.64 0.36 0 0.6 -0.4 0.16 0.60 2 0.9 1.1 1.21 1.34 0 1.8 -1.8 3.24 1.80 0 2.0 -2.0 4.00 2.00 5 3.0 2.0 4.00 1.33
  • 62. 62 0 1.0 -1.0 1.00 1.00 0 1.5 -1.5 2.25 1.50 5 3 2.0 4.00 1.33 1 0.8 0.2 0.04 0.05 0 1.2 -1.2 1.44 1.20 2 0.4 1.6 2.56 6.40 1 0.6 0.4 0.16 0.27 1 1.2 -0.2 0.04 0.03 TOTAL X2 C= 21.91 Source: Field Survey, 2009. X2 C = 21.91 and X2 t = 15.507. CRITICAL VALUE. (R-I)(C-1) = (3-1)(5-1) (2)(4) = 8. Level of Confidence = 5% = 0.05 X2 t = 15.507. DECISION: Since X2 C is greater than the obtained X2 t, the null hypothesis "Ho" should be rejected while the alternative hypothesis should be accepted. Hence, marketing research has a great influence in organizational performance. 4.5 ANALYSIS OF DATA (DISTRIBUTORS) 1. Marketing research helps an organization to obtain useful information on how to improve its products. Table 4.5.1 Respondent Percentage Agree 2 25 Strongly Agree 4 50
  • 63. 63 Indifferent Nil 0 Disagreed 1 12.5 Strongly Disagreed 1 12.5 TOTAL 8 100 Source: Field Survey, 2009. 25% of the respondents is of the opinion that marketing research helps an organization to obtain useful information on how to improve its products, 50% of the respondent strongly agreed, 12.5% disagreed with the statement, 12.5% strongly disagreed with the statement, while none is of the opinion that it is indifferent. 2. Vitafoam Plc has a vibrant marketing research system which makes the organization perform better than its competitors. Table 4.5.2 Respondent Percentage Agree 4 50 Strongly Agree 2 25 Indifferent Nil 0 Disagreed 1 12.5 Strongly Disagreed 1 12.5 TOTAL 8 100 Source: Field Survey, 2009. 50% of the respondent agreed that Vitafoam Plc has a vibrant marketing research system which makes the organization perform better than its competitors, 25% of the respondent strongly agreed with the statement, 12.5% disagreed with the statement, 12.5% strongly disagreed with the statement, while none is of the opinion that the statement is indifferent.
  • 64. 64 3. Vitafoam Plc does not ask for feedback about its products from distributors. Table 4.5.3 Respondent Percentage Agree Nil 0 Strongly Agree Nil 0 Indifferent Nil 0 Disagreed 5 62.7 Strongly Disagreed 3 37.5 TOTAL 8 100 Source: Field Survey, 2009. 62.7% of the respondent disagreed that Vitafoam Plc does not ask for feedback about its products from distributors, 37.5% strongly disagreed with the statement, none of the respondent agreed with the statement, none strongly disagreed, and none is of he opinion that it is indifferent. 3. It is necessary for Vitafoam Plc to improve on its marketing research activities. Table 4.5.4 Respondent Percentage Agree 4 50 Strongly Agree 4 50 Indifferent Nil 0 Disagreed Nil 0 Strongly Disagreed Nil 0 TOTAL 8 100 Source: Field Survey, 2009. 50% of the respondent is of the opinion that it is necessary for Vitafoam Plc to improve on its marketing research activities, 50% strongly agreed with the statement, none is of the opinion that the statement is indifferent, none disagreed, and none strongly disagreed with the statement.
  • 65. 65 4. The attitude of consumers towards the new brand of product supplied for the past 2 or 3 years has been positive. Table 4.5.5 Respondent Percentage Agree 4 50 Strongly Agree 4 50 Indifferent Nil 0 Disagreed Nil 0 Strongly Disagreed Nil 0 TOTAL 8 100 Source: Field Survey, 2009. 50% of the respondent agreed that the attitude of consumers towards the new brand of product supplied for the past 2 or 3 years has been positive, 50% strongly agreed with the statement, none is of the opinion that the statement is indifferent, none disagreed, and none strongly disagreed with the statement.
  • 66. 66 CHAPTER FIVE SUMMARY CONCLUSION AND RECOMMENDATION. 5.1 SUMMARY. The research has evaluated the role of marketing research system in organizational decision making using Vitafoam Nigeria Plc has a case study. The evaluation was based on the provision of information that facilitates marketing decision making process. The research basically studied how information gathered through marketing research can be use to make an effective decision making in an organization. A primary source of data through questionnaire was used for the study. Both descriptive and inferential statistical tools were employed for data analysis. The hypothesis of the study was tested through the use of Chi – Square method. The results show that information plays a vital role in the marketing decision making process, and that marketing research has a significant impact on organizational performance. 5.2 CONCLUSION. The information revolution is sweeping through our economy (Robert et al, 1997). No organization can escape its effects. Dramatic changes in the cost of obtaining, processing, and transmitting information are changing the way we do business (Robert et al, 1997). Most organizations know that the revolution is underway, and few dispute its importance. Similarly, many organizations today are searching for opportunities along the "information highway" in healthcare, manufacturing, energy, transportation and so on (Burns and Bush, 1999). Marketers need information to help them identify market opportunities (Burns and Bush, 1999). For the time being, opportunities and problems are everywhere, but decision makers need information to help them identify and define them adequately in order to satisfy and meet the needs, wants, cravings, and desires of the consumers (Burns and Bush, 1999).
  • 67. 67 Moreover, the decision makers usually rely on marketing research system to aid them in making decision and also to allow an organization to "hear the voice" of the consumer (Burns and Bush, 1999). Therefore, the adoption of marketing research like the marketing mix, marketing strategies, marketing concept in an efficient manner will permit managers to make decisions for the successful operations of businesses (Achumba and Osuagwu, 1994). Conclusively, to manage a business well is to manage its future; and to manage the future is to manage information (James et al, 2000) and more so, the right product, at the right price, in the right place with the promotion cannot fail when there is proper marketing research, unless of course, some important information/message get overlooked (James et al, 2000) and (Patricia, 2001). Accordingly, marketers are viewing information as not just an input for making decisions, but also a marketing asset that gives competitive advantage of strategy importance (James et al, 2000). 4.3 RECOMMENDATION. On the basis of the findings, the following are the recommendations; 1. Organizations should endeavour to be innovative and from time to time renew their chances in the information highway. This will be enhanced by the marketing research that has been carried out, which will in turn enhanced good decision making by the manager. 2. Organization should endeavour to protect their consumers by identifying their needs, wants, and desires and then work towards meeting and satisfying those needs. 3. Organizations should lay more emphasis on loyalty to their products and customers rather than meeting sales target. This is to set a standard for their product and also have a competitive advantage in the marketplace. 4. More distribution outlets should be established by an organization so that their goods can flood the market and as such their will be an apprehension of a
  • 68. 68 larger share of the market because of the acceptability of the products by the consumers. 5. Further research work should be carried out on marketing because effective marketing research which is a pivotal part of the marketing process plays a vital role in the success and accomplishment of manufacturing organizations.
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