Defining the Research Defining the Research ProblemProblem

The Marketing Research ProcessThe Marketing Research Process

Step 1: Defining the Problem (research objectives)

Step 2: Planning the Research Design

Step 3: Planning a Sample

Step 4: Doing Field Work

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

Problemdiscovery

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection ofexploratory research

technique

Selection ofbasic research

method

Experiment SurveyObservation Secondary

Data StudyLaboratory Field Interview Questionnaire

Selection ofexploratory research

techniqueSampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcodingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

Data Processingand Analysis

Conclusionsand Report

Research Design

Problem Discoveryand Definition

What Does “Problem” Mean?

•The terms “problem” or “deliverables” can mean– something has gone wrong– clarification of the situation– defining an opportunity– monitoring & evaluating operations

•Ultimately, they mean the objectives of the research

The Problem Definition Stage

Tasks Involved

Qualitative Research

Discussions with Decision Makers

Interviews withExperts

Secondary DataAnalysis

Environmental Context of the Problem

Step 1: Problem Definition

Management Decision Problem

Marketing Research Problem

ResearchQuestions and Hypotheses

Analytical Framework and Models

Specification of

Information Needed

Beware the Iceberg!

•The Iceberg Principle– The dangerous part of many marketing problems is

neither visible to nor understood by many marketing managers.

– “Submerged” parts of the problem must be understood and including in the research design for the research to be useful.

Symptoms vs. Problems

•Microbrewery•Symptom

– Consumers prefer the taste of competitor’s brand

•PD based on the Symptom– What type of reformulated taste is needed?

•True Problem– Old-fashioned package influenced taste perception

Symptoms vs. Problems

• Manufacturer of palm-size computers with Internet access

• Symptom– Distributors complain prices are too high

• PD based on the Symptom– Investigate business users to learn how much prices need

to be reduced

• True Problem– Distributors do not have adequate product knowledge to

communicate product’s value

Management Decision Problems vs.

Marketing Research Problems

• Management Decision Problems– Ask what the decision

maker needs to do

– Action oriented

– Focus on symptoms

• Marketing Research Problems– Ask what information is

needed and how it should be obtained

– Information oriented– Focus on the underlying

causes

Translating Management Problems into Research Problems

(Questions)

• Management Problem– Determine the best ways the firm can communicate with

potential purchasers of laptop computers

• Research Questions– How familiar are consumers with the various brands of

computers?– What attitudes do consumers have toward these brands?– How important are the various factors for evaluating the

purchase of a laptop computer?– How effective are the communications efforts of the various

competitive marketers in terms of message recognition?

“Bad” vs. “Good” Research Questions

•Research questions should be stated as clearly as possible

•“Bad” research question– Is advertising copy X better than advertising copy Y?

•“Good” research question– Which advertising copy has a higher day-after recall

score?

Components of the Marketing

Research Problem

ResearchQuestions

Hypotheses

Analytical Framework

andModels

Development of Research Questions & Hypothesis

Theories

• Formal, logical explanations of events

• Include descriptions of how things relate to one another (this is the “framework”)

• Built through a process of• Reviewing previous findings of similar situations• Simple logical deduction• Knowledge of applicable theoretical areas

Theories

• Web designer wants to determine what color is best to use for page backgrounds– Consult prior studies that examined the effects of

color on package design and retail store design– Perhaps also look at theories that explain retail

atmospherics– This would allow logical deductions of how color

interacts with atmospherics to improve retail sales

Hypotheses• A formal, unproven proposition (prediction)

about the empirical (real) world.• Hypotheses state the relationships defined

by the theory• Through empirical testing, we can

– Reject the hypothesis: the data proved to be inconsistent with the hypothesis

– Fail to Reject the hypothesis: the data proved to be consistent with the hypothesis

• Never accept an hypothesis … you simply may not yet have discovered enough evidence to reject it.

How They Fit Together

• Management Question– What retail price should we charge for our new iPad?

• Research Objective– Forecast sales of the new iPad at 3 different price levels.

• Hypotheses1)Sales will be higher at $599 than at $499.

2)Sales will be higher at $699 than at $499.

3)Sales will be higher at $599 than at $699.