Discusses the role of market research in a product manager's decision process. Traces the development of market research information for the introduction of a new product, and presents a manager's dilemma of receiving market data that are inconsistent with expectations and plans. How should the product manager merge this information with the decision?

Coordination between advertising and price strategies may lead to higher profits. Analyses of data from 227 businesses show the price-advertising relationship. The results show that companies with higher advertising budgets charge premium prices; consumers are willing to pay more for a perceived "high quality" product; and the association between advertising expenditures and price is strongest in the last stage of the product cycle. The price-advertising consistency principle is important for attaining a substantial return on investment.

Discusses scope of market and consumer research, steps in the research process, and how managers use research in marketing and decision-making.