What Have We Covered So Far?Problem Formulation and Approach

Understanding the managerial decision problem/opportunity

Translate into research objectivePose the right research questionsState questions in terms of

hypothesesKnow what information is needed

Weyerhaeuser1. What marketing mix elements discussed in the case history led

Weyerhaeuser to act.

2. What industry and economic background information is relevant in this case?

3. What is Weyerhaeuser’s management decision problem?

4. What courses of action were open to Weyerhaeuser?

5. What were the events that led Weyerhaeuser to decide to act?

6. What criteria will be used to evaluate these alternatives?

7. How important is the information gained from the focus group studies in formulating the marketing decision.

8. What information does Weyerhaeuser need to make a decision?

9. What was Weyerhaeuser marketing research problem?

10. What are some research questions that could be asked and what hypotheses could you make.

11. What are some of the components of the Research Approach?

The Marketing Research Process

PROBLEM FORMULATION

RESEARCH DESIGN•Exploratory, Descriptive, Causal

•Primary/Secondary data•Sample plan/measurement issues

DATA COLLECTION

DATA ANALYSIS

RESEARCH REPORT

Today’sFocus

DEVELOP AN APPROACH

Research Design

Definition• A framework for conducting the marketing research

project Components

• Information needed• Data collection methods• Measurement and scaling procedures• Sampling process and sample size• Data analysis procedures

A Broad Classification of Marketing Research Designs

Research Design

ExploratoryResearchDesign

SecondaryResearch

QualitativeResearch

ConclusiveResearchDesign

DescriptiveResearch

CausalResearch

Exploratory Research: Overview Characteristics

• flexible, versatile, but not conclusive Useful for

• discovery of ideas and insights• Formulating problems more precisely• Identifying alternative courses of action• Establishing priorities for further research

Methods Used• case studies• secondary data• focus groups• qualitative research

Exploratory Research Cont’d

When done?• Generally initial research conducted to

clarify and define the nature of a problem

Does not provide conclusive evidence• Subsequent research expected

Conclusive Research

Characteristics•inflexible, versatile•Results conclusive•Research formal and structured

Used• to provide decision maker with the information needed to make sound decision•Testing hypotheses and examining relationships•When information needs clearly defined

ConclusiveResearchDesign

DescriptiveResearch

CausalResearch

Descriptive Research: Overview

Characteristics• Describes characteristics of a population or

phenomenon• Some understanding of the nature of the problem

• preplanned, structured, conclusive Useful for

• describing market characteristics or functions Methods Used

• Surveys (primary data)• panels• scanner data (secondary data)

Descriptive Research

When Used:• Often a follow-up to exploratory research

Examples include:• Market segmentation studies, i.e., describe

characteristics of various groups• Determining perceptions of product

characteristics• Price and promotion elasticity studies• Sale potential studies for particular

geographic region or population segment

Descriptive Research Designs

Two types of designs• Cross-sectional designs

• Involves collection of information from sample of respondents only once

• Could have a single cross-sectional design (only one sample) or multiple cross-sectional design (many samples of respondents)

• Most popular design in marketing research• Example: Sample surveys

Descriptive Research Designs (contd.)

Longitudinal Designs• A fixed sample of the population is

measured repeatedly, i.e., same respondents studied over time

• Useful for tracking changes in consumer attitudes and behavior over time

• Example: Dairy panel data Mixed Designs:

• Example: US Bureau of Labor Statistics follows a consumer panel for five quarters, then switches to a new panel of consumers

Examples of Descriptive Studies

•Market studies that describe the size of the market, buying power of the consumers, availability of distributors, and consumer profiles

•Market share studies that determine the proportion of total sales perceived by a company and its competitors

•Sales analysis studies that describe sales by geographic region, product line, type of account size of account

•Image studies that determine consumer perceptions of the firm and its products

•Product usage studies that describe consumption patterns

•Distribution studies that determine traffic flow patterns and the number and location of distributors

•Pricing studies that describe the range and frequency of price changes and probable response to proposed price changes

•Advertising studies that describe media consumption habits and audience profiles for specific television programs and magazines

Causal Research: Overview

Characteristics• causal (independent) variables be

manipulated in a controlled fashionUseful for

• determining cause and effect relationships

Methods Used• Experiments• Primary data

SummaryAfter formulating the problem,

getting the design right is the most important step

Three main types of research design types: Generally combinations of all three employed in the research process

Need to worry about various sources of error in research design

Exploratory Research Descriptive Research Causal Research(Unaware of Problem)(Aware of Problem) (Problem Clearly Defined)

“Our sales are declining and “What kind of people are buying “Will buyers purchase more of we don’t know why.” our product? Who buys our our products in a new package?

competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?” “What features do buyers prefer campaigns is more effective?”

in our product?”

poss

ible

situ

atio

nDegree of Problem Definition

Tasks Involved in Formulating a Research design

1. Specify the information needed

2. Design the exploratory, descriptive and/or causal phases of the research

3. Specify the measurement and scaling procedures

4. Construct an pretest a questionnaire (interview form) or an appropriate for data collection

5. Specify the sampling process and sample size

6. Develop a plan of data analysis

I keep six honest serving men, (they taught me all I knew), their names are what and why, and when, and how, and where and who” --Rudyard

Kipling

WestJet wants to know whether it should expand its flight offerings into the International Market. In designing a market research project to provide WestJet with information to help them decide, answer the following six questions.

1. Who should be considered?

2. Where should the respondents be contacted to obtain the right information?

3. When should the information be obtained from respondents

4. What information should be obtained?

5. Why are we obtaining the information from the respondents

6. What Way are we going to obtain information

Sources of Error in Research Design

Total Error: Difference between true mean value of variable in population, and observed mean value obtained. Can be split into two main types:• Random Sampling Error: Occurs because

particular sample selected is imperfect representation of the population of interest

• Non-sampling Error: Due to sources other than sampling, e.g., errors in problem definition questionnaire design, data analysis.

Critical Path Method (CPM)INPUTS INPUTS • List of project activitiesList of project activities• Precedence relationship among activitiesPrecedence relationship among activities• Estimate of each activity’s durationEstimate of each activity’s duration

OUTPUTS OUTPUTS • Estimated duration of projectEstimated duration of project• Identification of critical activitiesIdentification of critical activities• Amount of slack for each activityAmount of slack for each activity

CPM processing proceduresCPM processing procedures

CPM Terminology Path

• A connected sequence of activities leading from the starting event to the ending event

Critical Path• The longest path (time); determines the

project duration

Critical Activities• All of the activities that make up the critical

path

Steps in CPM Analysis

Draw the CPM network• A graphic view of the relationships among

the required activities Analyze the paths through the network

• Determine the length of each path (the time required to complete each path)

• Starting at the beginning of the network and working toward the end (from left to right), determine the estimated start and estimated finish for each activity

Steps in CPM Analysis

Path analysis (continued)• Identify the critical path(s) (the

longest path[s] through the network)• The critical path(s) determines how

long the project will take

Marketing Research Proposal

See page 98-99 Malhotra