Marketing Research Consultants

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The Effective Use of Marketing Research Consultants
Robert A. Peterson
Relatively little has been written about effectively managing the buyer-seller relationship for marketing research services. To provide insights into effectively managing this relationship, a survey of both buyers and sellers of marketing research services was conducted. Major findings were that proper problem definition, a familiari~ with research methods by the research buyer, and continuous communication between buyer and seller were critical determinants of a successful consultant relationship. For best results the market research buyer-seller relationship should be treated as a mutually beneficial one, not one of conflict or acrimony.

Roger A. Kerin
lions of dollars are spent annually for commercial or extraorganization marketing research services [3]. The reasons for using outside marketing research consultants are many and varied. In general, the more important reasons include [4]: • • • • • Specialized skills, knowledge and resources; Manpower and cost savings; Objectivity and fresh perspectives; Anonymity in conducting research; and Management acceptance of results.

INTRODUCTION
Marketing research is playing an increasingly important role in managerial decision making. Not only are m o r e f i r m s employing marketing research, but marketing research is being incorporated more frequently and earlier in the decision making process [e.g., 1, 2]. Coincident with this growing importance is the increasing use of commercial marketing research consultants and agencies. Indeed, recent estimates indicate that hundreds of mil-

Address correspondence to: Robert A. Peterson, Professor of Marketing, Graduate School of Business, The University of Texas, Austin, TX 78712.

Still, despite the belief that marketing research consultants are a potentially useful management resource, relatively little has been written on the effective management of this resource. While guidelines have been offered for obtaining and evaluating commercial marketing research proposals, (e.g., [5], but see [6] for a different view) critical considerations involved in managing the interface between buyers and sellers of marketing research services go virtually uncharted. Even though experienced marketing managers and researchers often have their individual criteria--heuristics or "rules of t h u m b " - - t h e neophyte user of marketing research services may encounter serious problems when attempting to utilize research consultants or suppliers (marketing research "sellers") most effectively. The present research effort
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0019-8501/80/010069-05/$01.75

© Elsevier North Holland, Inc., 1980 IndustrialMarketing Management 9, 69-73 (1980)

was designed to tap the collective wisdom of experienced marketing research buyers and sellers in developing a list of practical tips to augment the marketing research buyer's effectiveness in managing the buyer-seller relationship for marketing research services.

potential marketing research buyers, 188 (35.4%) were returned. The corresponding figures for marketing sellers were 197 and 89 (a response rate of 45.2%).

FINDINGS
Responses were obtained from all areas of the United States as well as Canada and Mexico. Large and small firms were represented, as were product and service companies, and profit-nonprofit organizations. For example, seller replies were obtained from six of the seven largest commercial marketing research agencies. On the buyer side, responses came from such well known organizations as Chase Manhattan Bank, Union Carbide and Blue Cross-Blue Shield. In essense, investigation of respondent and nonrespondent organizations suggested that representative samples of marketing research professionals, buyers as well as sellers, were obtained. Since responses were free-form, a content analysis was applied to categorize and summarize the data. Responses ranged from the very specific (e.g., "verify supplier's field work as it is one of the weakest links in the research process") to the sweeping (e.g., "let the supplier do his thing"). After checking for interjudge reliability in content analysis procedures, it was possible to derive nine categories of answers---eight topical categories and a potpourri "other" category. These categories are reported in Table 1, together with corresponding percentage responses for each sample. Two percentages are given for each category and sample--a percentage representing the proportion of total sample responses falling into that category, and a percentage representing the proportion of first responses in that category. Note that not all respondents gave three answers to the question. To test the independence of the responses of the two samples, Chi-square analyses were conducted separately for total responses and first responses. While the response distributions were virtually identical with regard to first responses, there was a significant difference (c~ < 0.01) between the samples with regard to total responses. This difference was primarily due to three response categories. Marketing research sellers made relatively more responses relating to not basing research patronage decisions solely upon cost and relying on the seller's expertise in all stages of the research project, from design to interpretation of results. On the other hand, marketing research buyers more frequently indicated that research proposals should be obtained in writing. This is as would be expected, given the nature of the industry and previ-

METHOD
To collect requisite study data, postcard surveys were mailed to random samples of potential marketing research buyers and sellers listed in the 1977 Marketing Service Organization and Membership Roster published by the American Marketing Association. The sample of marketing research buyers consisted of marketing research vice presidents or marketing research department heads; the seller sample consisted of presidents or vice presidents of commercial marketing research agencies. Each potential respondent was mailed a personal letter explaining the purpose of the research and requesting his or her cooperation. This letter was accompanied by an oversize postcard questionnaire containing a single open-end (synoptic) question: "What 3 tips would you give a marketing researcher which would permit him to deal more effectively with his research suppliers?" Space was designated for three responses and a section provided for comments. While respondents were requested to indicate whether they desired a copy of the study findings, no other response inducement technique was employed. 1 Of the 531 questionnaires mailed to
1Eighty-four percent of the respondents requested a copy of the study findings. This suggests, at the least, high study involvement among respondents.

ROBERT A. PETERSON is Professor of Marketing Administration, the University of Texas at Austin, and Senior Research Fellow, the Institute for Constructive Capitalism. He is the author or co-author of over 80 books and articles and is currently the marketing editor for Social Science Quarterly and a section editor for the Journal of Marketing and the Journal of Marketing

Research.
ROGER A. KERIN is Associate Professor of Marketing and Director of Research, Southern Methodist University. Professor Kerin has published extensively in the marketing and business literature; recently he co-authored Strategic Marketing: Cases and Comments (Allyn and Bacon).

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TABLE 1 Summary Analysis of Questionnaire Responses

Percentage of Percentage of Total Responses First Responses Response Categories
Have clear understanding of problem prior to contacting supplier. Get suppliers closely involved, and at an early stage. Check past clients of suppliers, evaluate prior experience and industry familiarity. Know what procedures and techniques are to be employed. Rely upon supplier's experience and expertise Obtain research proposals in writing. Inquire into and conduct independent data checks. Learn exactly who will be involved. Do not base supplier decision only upon cost. Other Limit number of suppliers, work with same overtime. Always obtain competitive bids. Obtain firm time and completion schedules, yet be prepared to remain flexible. Get proposal broken down into components, progress reports. Miscellaneous Number of Responses

Buyers Supplier Buyers Supplier
13 14 12 12 31 t8 26 22

15 11 5 7 5 5 4 21

13 7 10 2 6 6 10 22

19 4 3 5 3 4 1 13

13 5 7 3 5 3 1 15

The importance of this advice is underscored by the large number of first mentions it received. Nearly one out of three marketing research buyers presented it as their primary suggestion, while one out of four marketing research sellers mentioned it as a first response. Because of its relative importance, Table 2 reproduces selected verbatim comments illustrative of "problem understandi n g " responses. A second major piece of general advice can be succinctly described under the rubric of "Involvement and Communication." About one out of five respondents mentioned getting the marketing research seller involved at an early stage in the research process as a first-order piece of advice. "Adopt the partnership philosophy. Ask your suppliers to become a member of your 'team,' working with you, not for y o u " . Comments such as "Communicate completely with your research suppliers. They can't do their best without all the facts," perhaps best illustrate the intent of both marketing research buyer and seller with regard to the issue of communication. While other response categories can be identified, the above two dominate. Together they accounted for nearly half the first mentions, a relatively large percentage given the open-ended nature of the question posed to the study individuals.

OPERATIONAL PERSPECTIVES
561 262 188 89

ous research [7]. The cost issue in particular is well summarized by one response: "Don't buy the lowest price all the time. If a researcher is well under the bid of another or several others, there is some reason. Either he doesn't understand [the problem], or he is in [financial] trouble and needs the business . . . . " Overall, however, the two samples exhibited relatively similar response patterns. These patterns can in turn be interpreted with respect to two distinct perspectives--a philosophical one and an operational one.

An additional perspective which seems to balance the philosophical one is that relating to operational considerations. The operational perspective is reflected by such response categories as investigating the marketing research

TABLE 2 Selected Perspectives on Initiating the Buyer-Supplier Relationship
• "I guess the most important tip is to be sure [the buyer] knows and understands his o w n n e e d s . . , do as much as you can to know what you want, why you want it and how you're going to use it before you ask [a supplier] to give it to you. " - - a supplier • "Take the time, effort and discipline to carefully think through and w r i t e out the problem in as much detail as possible before contacting the independent research firm. If you don't have a clear understanding of your problem when you first meet with the research company, the probabilities are very high that any research that is done will be off target. " - - a supplier • "Know the problems you are trying to provide information on. Define the problem clearly with the client (product management) before approaching the supplier. " - - a buyer • "Be absolutely sure that you know what information is needed before asking for a bid. " - - a buyer • "Develop clearly defined research objectives.., or at least a concise definition of the problem before contacting supplier. " - - a buyer

PHILOSOPHICAL PERSPECTIVES
One of the most intriguing findings relates to the philosophical nature of many responses. A common recommendation is that the research buyer must possess a clear and complete understanding of the research problem prior to contacting a commercial marketing research agency.

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seller's experience and past client performance, and being personally familiar with the specific research procedures, techniques, and personnel the research seller will utilize. It is worth noting respondents not only suggested that lists of past seller clients be obtained, but that past clients should actually be contacted and queried about a research seller's capabilities and past performance. Also, a number of marketing research buyers and sellers made reference to falling prey to what might be termed the "technique mystique." A comment by a General Electric respondent illustrates this point: Insist that approach be spelled out by suppliers before discussing technique (there's a world of difference!). Too many suppliers are running around peddling techniques. If they can't articulate the rationale of the approach (and appropriate working principles) then look elsewhere! While several other response categories can be interpreted as operational in nature, one in particular deserves brief mention. Even though the overall response levels were low, there is a slight difference between the samples as regards requesting research proposals in writing: buyers tend to favor them slightly more than sellers. Indeed, several research buyers suggested that all buyer-seller communications be in writing to avoid possible confusion or misunderstanding. Selected remarks
TABLE 3 Selected Operational Perspectives on the Buyer-Supp:ier Relationship
"Buy VALUE of supplier's contribution ranging from creativity in problem solving, definition, design, execution and interpretation.' ' - - a supplier "'Understand research suppliers' capabilities. Many suppliers/consultants are willing to tackle any job regardless of their resources, skills, and experience. " - - a buyer "Detail, again in writing, what the steps in the research program are and who is responsible for doing them and in what time f r a m e s . " - - a buyer "Always get agencies to write minutes of meetings. At the same time, the in-house buyer should keep notes of all agreements and important decisions. " - - a buyer "Don't squeeze a supplier on costs nor evaluate the letting of contracts solely on the basis of lowest bid. Cost of a project should be matched against the level of quality you know you can expect, the degree of senior involvement desired, the type and complexity of project and past experience with the supplier."--a buyer "Personally visit suppliers' place of business and meet their staff and observe their capabilities to conduct quality research. " I a buyer "Who will work with you--what level of personnel, with what background. Are they so involved in numbers that they forget that ideas are the real stuff of research. " ' I a buyer "Provide the supplier with as much information about the market and background of your project as you can. Give him copies of preliminary studies, R & D reports, etc. " - - a buyer "Remember, you are the expert in your business, not the suppliers. He is the expert there; recognize him and deal with him as such. " - - a buyer

pertaining to operational considerations are listed in Table 3 to "flesh out" this perspective.

CONCLUSIONS
In brief, there are six major suggestions--three with a philosophical managerial focus and three that are operationally oriented--for effectively managing the marketing research buyer-seller relationship: Philosophical 1. Have a clear understanding of the problem before contacting a marketing research seller. Know what information you need and what you will do with it. 2. Open lines of frank and honest communication with the research seller early in the research process and maintain them throughout project implementation. Provide whatever information you have which bears on the problem at hand. Written communication during all phases of the research process is imperative. 3. Enter into the buyer-seller relationship with the understanding that marketing research sellers are professionals with expertise and experience. Operational 1. Personally check past marketing research seller clients to evaluate the seller's prior experience with your problem, industry familiarity, and overall past performance in achieving research objectives. 2. Familiarize yourself with the marketing research procedures and techniques that are to be used, including their applicability to your problem, the seller's expertise with them, and who in the agency will actually be responsible for performing them--in writing. Maintain a healthy interest in research activities (expect periodic reports, conduct independent data checks), but forego unnecessary interference. 3. Match the cost of marketing research services with the problem under investigation. The absolute cost of research must be evaluated with regard to the opportunity cost of not obtaining problem-relevant data. While these suggestions are not guaranteed to lead to optimum management of the marketing research buyerseller relationship, given their origins they would appear to possess considerable validity and usefulness. Moreover, for the most part the suggestions are intuitively plausible. Perhaps the most interesting advice is the stress given to fully understanding a problem before

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consulting a commercial marketing research seller. One marketing research supplier stated, "The key is to specify in writing how the results of the research are expected to be u s e d . " While some readers may object to the implications of the term " m a n a g i n g " the marketing research buyerseller relationship, "management" is not meant to imply "abusing" or "getting the most f r o m " a marketing research seller. Rather, as several respondents noted, an initial step in effectively managing the buyer-seller relationship is to learn the seller side of the relationship and become familiar with the research seller's perspective. These respondents emphasize the importance of honesty and integrity during all phases of the relationship. One buyer of marketing research stated this idea rather eloquently: Realize that your supplier must make a profit--at least over time, if not on every project. Encourage him to make that profit in ways that are visible to you so that you can see the data implications of cost and profit decisions.

The marketing research buyer-seller relationship should be treated as a mutually beneficial one, not one of conflict or acrimony.

REFERENCES
1. Twedt, Dik W., 1978 Survey of Marketing Research. American Marketing Association, Chicago, 1978. 2. Small, Robert J. and Rosenberg, Larry J., The Marketing Researcher as a Decision Maker: Myth or Reality?, Journal of Marketing 35, 1-7 (1975). 3. Honomichl, Jack H., Research Top 20: Companies Posted 16% Gain Last Year, Advertising Age, April 11, 3, 82 f f (1977).

4. Using Marketing Consultants and Research Agencies, National Industrial
Conference Board, New York, 1966. 5. Blankenship, A. B. and Barber, R., The Buyer's Side of Marketing Research, Business Horizons 73-80 (August 1973). 6. Twedt, Dik W., Authorization, Control, and Education of Marketing Research Projects, Journal of Marketing Research 12, 86-92 (1975). 7. Haynes, Joel B. and Rothe, James T., Competitive Bidding for Marketing Research Services: Fact or Fiction?, Journal of Marketing, 38, 69-71 (1974).

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