1. Marketers often mislead consumers by misrepresenting marketing research findings in ads and sales presentations. What are six ways in which they do this? (1). Incomplete or misleading reporting of survey or product testing results; (2).Reporting only the percentage of survey respondents answering in a given way (for example, “55% of those surveyed said....”) but not the absolute numbers or the sample size; (3). Misleading specification of the competitors tested in reported comparative tests; (4). Using survey techniques that confuse respondents or bias their answers, but not revealing the questions and interview procedure.

Sometimes corporate researchers intentionally design the company’s product testing and marketing research studies so as to generate deceptive findings. (1). Testing the company’s drug against a comparison during theta is well known not to work well. (2). Testing the company’s drug against too low a dose of the comparison product, to make the company’s drug appear “more effective” , or against too high a dose of the comparison product to make the company’s drug appear “less toxic”. (3). Reporting only that part of a product trial that favors the company’s drug, and hiding the rest of the results. (4). Funding many different studies about the same product but reporting only the one or two that make the company’s product look desirable.

1) Tell lies about risks or limitations

2) Omit disclosing risks or limitations entirely

3) Bury or conceal disclosures among other information

4) Report only % of respondents who answer in a specific way 5) Incomplete reporting of testing results

6) Using survey techniques that confuse respondents

2. Explain the “number of subgroups” method for determining sample size. In any sample size determination problem, consideration must be given to the number and anticipated size of various subgroups of the total sample that must be analyzed and about which statistical inferences must be made. For example, a researcher might decide that a sample of 400 is quite adequate overall. However, if male and female respondents must be analyzed separately and the sample is expected to be 50 percent male and 50 percent female, then the expected sample size for each subgroup is only 200. Is this number adequate for making the desired statistical inferences about the characteristics of the two groups? If the results are to be analyzed by both sex and age, the problem gets even more complicated. Assume that it is important to analyze four subgroups of the total sample: men under 35, men 35 and over, women under 35, and women 35 and over. If each group is expected to make up about 25 percent of the total sample, a sample of 400 will include only 100 respondents in each subgroup. The problem is that as sample size gets smaller, sampling error gets larger, and it becomes more difficult to tell whether an observed difference between two groups is a real difference or simply a reflection ofsampling error. Other things being equal, the larger the number of subgroups to be analyzed, the larger the required total sample size. It has been suggested that a sample should provide, at a minimum, 100 or more respondents in each major subgroup and 20 to 50 respondents in each of the less important subgroups.

Number of Subgroups to Be Analyzed

a. Subgroups–the number and anticipated size of various subgroups of the total sample that must be analyzed and statistical inferences must be made should be seriously considered. b. Sample Size–dependent on the number of subgroups to be analyzed–the more needed the larger the required total sample size. c. Minimum Needs–100 or more respondents in each major subgroup and 20 to 50 respondents in each of the less important subgroups.

3. You need to hire a marketing research firm to work with you on a new product research project. Five factors you might consider in choosing among different research firms are the price they charge,...