Direct Marketing Information on Research Studies

1.Compare and contrast surveys versus experiments as data collection tools for direct marketers.

Surveys looks at things as they are. Surveys ask respondents of factual information and profiling of customers take place through demographics. Experiments are designed to measure effect of change. This is done by changing a variable such as what happen if y changes from 3 to 4.

2.Identify and explain the many formats for primary data collection.

Personal Interview, telephone interview, mail questionnaire, on-line surveys, observations. As you would expect the personal interview is very costly as well as time consuming. That said the information collected can be invaluable. Questionnaires are also a very good data collection tool, but are usually limited to t/f and multiple choice type answers. This is useful for poll type information. The disadvantage is it'd generic and lacks personal opinion. On-line surveys are becoming more popular since everyone is online. These surveys often take the form of questionnaires. As a medium there is more room for personal opinion. These surveys are usually delivered through email and often offer monetary incentives. Telephone interviews are also good, but are often misinterpreted as telemarketing. People who do use it often get good information focusing on personal opinion. The problem is the time consuming nature makes lengthy questions and answers impractical. Observations removes consumer bias, but on the downside lacks real interaction. This is information that can still be used to test popularity and other such information.

3.Discuss the two characteristics that make an experiment valid.

The two factors are control group and random assignment. A control group is when nothing is done to this fraction. This is to ensure differences aren't just by chance. This also applies for random assignment as it's important everything is picked at random. If this were not to take place changing could be considered partly environmental and not necessary a direct result of any variable changes.

4.Name and explain the six ways to obtain a random sample from a total population as were presented in your text.

The six different samples are single random samples, systematic random samples, stratified random samples, cluster samples, replicated samples and sequential samples. Simple random sample is to select each subject randomly from a population from which the preceding selection has been removed. Systematic samples are selected from parts of mailing lists. Stratified samples names are drawn in proportion to a particular parameter of the population. Replicated samples are created by taking several independent random samples in turn. Sequential samples are where selection is based of progressive data.

5.Overview the procedure for structuring and evaluating an experiment.

Sample a population

Measure relevant variables

Compare statistics using these measurements

Infer something about the probability distributions that exist in population

Make a decision6.Identify and explain the five basic human rights each consumer possesses.

The five basic human rights are right to safety, right to be informed, right to selection, right to confidentially, right to privacy. A customer feels a right to safety such as they shouldn't feel pressured into a purchase decision. A customer has right of selection this means there should always be several buying options and a customer always has a list of choices on any individual offer. Again the customer shouldn't feel pressured into a purchase decision. The customer has right to be informed this means there should be able to know about the marketing process and how customer information will be used. A right to confidentiality states that customer information should not be shared. Right to privacy is the limiting factors that others have to personal information. This information is often listed in a company's privacy policy.

7.Name and discuss the three primary legislative areas designed to safeguard consumer rights.

Intellectual property, security and privacy are the three areas of primary legislation. Intellectual property are essentially thoughts and ideas. Intellectual property is a very important and expensive issue. Security is safeguarding personal information however it is more interested in big money and companies. Privacy is a big issue for consumers as how companies will use their personal information.

8.Define "spam" and discuss the current status of anti-spam laws.

Spam is unwanted, unsolicited bulk commercial e-mail messages. There have been nine spam bills introduced. The latest is the anti spam act of 2003. If this bill is approved it would prohibit commercial email message with false or misleading message headers or missing subject lines.

9.Name and briefly discuss the four different categories of personal information and explain the degree to which most consumers would restrict each category.

They are general descriptive information, ownership information, product purchase information and sensitive information. Consumers are least restrictive with general information and is usually basic demographic information which is easily obtained. Ownership information is general information on what a given consumer owns. Consumers place moderate restrictions on these information and some may be keen to reveal such information for reasons of status. Product purchase is information on certain items a customer buys. This items are not seen as status items and are generally small ticket. Customers place moderate restrictions on this type of information. Finally sensitive information is facts very specific to each individual. For instance this information is social security and driving license numbers. This information is put on strongest control of release.

10.Name and briefly explain the three consumer privacy segments-be sure to note which segment possesses the majority of consumers.

The three segments are privacy unconcerned, privacy fundamentalists and privacy pragmatists. The first group consists of 20% of the population and they literally do not care about the issue of privacy. The second group which is privacy fundamentalists also consists of 20% of the population. These individuals take the view that they own their name and information about themselves. They generally think no one else can use such information with expressed permission. Privacy pragmatists are in the what's in it for me group. They ask questions such as:

What benefits can I get from this?

Are there choices that I would not otherwise have?

Is there an opportunity for me?

Can I get a product or an offer that is valuable to me?

What harm can come from this? Examples:

Will I be inconvenienced in some way?

Will I be embarrassed or feel discomfort?

Will I be disadvantaged in some way?Depending on the answer to this questions will depend when they reveal information.