Marketing Research Papers

This paper reviews the empirical research on forecasting in marketing. In addition, it presents results from some small scale surveys. We offer a framework for discussing forecasts in the area of marketing, and then review the literature in light of that framework. Particular emphasis is given to a pragmatic interpretation of the literature and findings. Suggestions are made on what research is needed.

The book assaults common sense with evidence. In order to mount his assault on accepted wisdom, Tetlock spends some 238 pages of text explaining his methods and findings, and considering and refuting many alternative explanations, and adds some 75 pages of technical appendices. The downside of this approach is that some readers may find the book too demanding. That would be a pity as his findings are important. Tetlock's book reports the results of a two-decade long study of expert predictions. He recruited 284 people whose professions included "commenting or offering advice on political and economic trends." He asked them to forecast the probability that various situations would or would not occur, picking areas (geographic and substantive) within and outside their areas of expertise. In addition to eliciting forecasts, Tetlock also asked questions aimed at understanding how the forecasters came to formulate their forecasts, how they dealt with the failure of their forecasts, how they responded to contradictory information, and how they evaluated the probable accuracy of others' theories and predictions. By 2003, he had accumulated 82,361 forecasts, which provided him a database to evaluate. He then evaluated experts' predictions against outcomes, and against various alternate predictions that he derived from simple statistical procedures, from uninformed non-experts, and from well-informed non-experts.

Climate is complex, uncertain, and, over horizons that are relevant for policy decisions, varies little. Using evidence-based (scientific) forecasting principles, we determined that for such a situation a naïve "no change" extrapolation method was the appropriate benchmark. We tested this benchmark against global mean temperatures. To be useful to policy makers, a proposed forecasting method would have to provide forecasts that were substantially more accurate than the benchmark. We calculated benchmark forecasts against the UK Met Office Hadley Centre's annual average thermometer data from 1850 through 2007. The accuracy of forecasts from our naïve model is such that even perfect forecasts would be unlikely to help policy makers. For example, mean absolute errors for 20-and 50-year horizons were 0.18°C and 0.24°C. We nevertheless evaluated the Intergovernmental Panel on Climate Change's 1992 projected warming rate of 0.03°C-per-year. The small sample of errors from ex ante forecasts for 1992 through 2008 was practically indistinguishable from the naïve benchmark errors. To get a larger sample and evidence on longer horizons we backcast successively from 1974 to 1850. Averaged over all horizons, IPCC errors were more than seven-times greater than errors from the benchmark. Relative errors were larger for longer backcast horizons.

This paper reviews the empirical research on forecasting in marketing. In addition, it presents results from some small scale surveys. We offer a framework for discussing forecasts in the area of marketing, and then review the literature in light of that framework. Particular emphasis is given to a pragmatic interpretation of the literature and findings. Suggestions are made on what research is needed.

In this paper, the changing role of marketing research in the new product planning process is examined, and a model for assessing this role is presented. The model defines production oriented , introductory marketing-oriented, and sophisticated marketing-oriented firms. Particular emphasis is placed on the evolving nature of market analysis, decision tools, test marketing, and technical research and development.