Defining the Problem and Determining Research Objectives

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Defining the Problemand DeterminingResearch
Objectives
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The Importance of Properly Defining the Problem

• Properly defining the problem is the most
  important step in the marketing research process.
• If the wrong problem is defined, all the
  remaining steps in the marketing research process
  are wrong.

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Define the Problem

• Two sources of problems
• A problem exists when a gap exists between what
  was supposed to happen and what did happen, i.e.,
  failure to meet an objective.
• An opportunity occurs when there is a gap between
  what did happen and what could have
  happenedcalled an opportunity.

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Define the Problem
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Recognizing the Problem

• To recognize a problem, managers must be
  knowledgeable of objectives and actual
  performance.
• To be aware of opportunities, managers must have
  a process for monitoring opportunities, such as
  opportunity identification.

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The Role of Symptoms in Problem Recognition

• We have a problem we are losing money
• Managers must be careful to avoid confusing
  symptoms with problems.

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The Role of Symptoms in Problem Recognition

• Symptoms are changes in the level of some key
  monitor that measures the achievement of an
  objective.
• The role of the symptom is to alert management to
  a problem there is a gap between what should be
  happening and what is happening.

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The Role of the Researcher in Problem Definition

• Researchers should ensure managers are defining
  the problem correctly.
• This is particularly true when the manager has
  already defined the problem in very specific
  terms.
• Researchers sometimes take additional
  investigations, known as a situation analysis,
  to ensure the problem is adequately defined.

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Impediments to Problem Definition

• Failure to change behavior for problem definition
  situations
• Managers deal with outside suppliers efficiently
  with little interaction. Marketing research
  requires a great deal of interaction and
  communication.

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Impediments to Problem Definition

• There are differences between managers and
  researchers backgrounds.
• Traditionally researchers were technicians and
  managers were trained in general decision making.
  
• Today managers are much more aware of technical
  software such as using your SPSS.

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The Role of ITBs and RFPs

• ITBs are Invitations to Bid.
• RFPs are Requests for Proposals.
• When ITBs and RFPs are issued management has
  already defined the problem.
• Phony ITBs and RFPs present an ethical problem in
  the marketing research industry.

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Defining the Problem Establishing Research
Objectives

• A Process
• There is no universally accepted, step-by-step
  approach used by marketing researchers to define
  the problem and establish research objectives.
• Defining problems accurately is more an art than
  a science. Lawrence D. Gibson

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Assess the Background and the Managers Situation

• The researcher should first understand the
  industry, the competitors, and the company.
• The researcher must understand the managers
  unique situation
• Does the manager have a particular objective?
• What constraints is the manager operating under?

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Clarify the Symptoms of the Problem

• The researcher must understand the control system
  and determine what symptoms are being identified
  by the system.

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Pinpoint Suspected Causes of the Symptom

• Theres always some cause or causes for a change.
• It is important to determine all possible causes.
• Researchers should narrow possible causes to a
  small set of probable causes.

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University Estates Problem Definition
Research Objectives

• Situation Last year, University Estates (which
  targets mainly university students) experienced a
  decline in its occupancy rate from 100 to 80.
• Manager Researcher brainstorm a list of
  POSSIBLE CAUSES

Wait! You give it a try.
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University Estates Problem Definition
Research Objectives

• What are some possible cases for University
  Estates Occupancy Decline?

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University Estates Problem Definition
Research Objectives
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University Estates Problem Definition
Research Objectives

• What is/are the probable cause(s) for University
  Estates Occupancy Rate Decline?
• Something that changed just before or at the same
  time as the symptom(s).
• If it did not change, how could it cause the
  symptom?

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University Estates Problem Definition
Research Objectives

• Probable Causes for University Estates Occupancy
  Rate Decline
• Competitors Actions
• Basic Cable TV
• 2. Consumers (Current
• and Prospective Student
• Renters)
• No change
• 3. University Estates Itself
• No change
• 4. The Environment
• No change

Probable Cause
Probable Cause
Probable Cause
Probable Cause
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University Estates Problem Definition
Research Objectives

• What can University Estates do?

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Specify Possible Solutions that May Alleviate the
Symptoms

• Possible solutions include any marketing action
  that the marketing manager thinks may solve the
  problem, such as price changes, product
  modification, etc.

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Speculate on Anticipated Consequences of the
Solutions

• What if questions should be made regarding
  possible consequences of each marketing action
  being considered.

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Identify Managers Assumptions about Solutions
Consequences

• Assumptions are assertions that certain
  conditions exist or certain reactions will take
  place if considered solutions are implemented.
• If the manager is completely certain of
  assumptions there is no need for research.

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Identify Managers Assumptions about Solutions
Consequences

• For those uncertain assumptions, research will
  eliminate a managers uncertainty and therefore
  aid in decision making.

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The Role of Hypotheses in Defining the Problem

• Hypotheses are statements that are taken for true
  for the purposes of argument or investigation.
• Assumptions about the consequences of solutions
  are hypotheses.

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The Role of Hypotheses in Defining the Problem

• When a manager makes a statement or an assumption
  that he/she believes to be true and wants
  research to determine if there is support for
  that statement, we call this statement a
  hypothesis.

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Assess the Adequacy of Information on Hand

• To specify research objectives
• The information state should be assessed.
• The information state refers to the quantity and
  quality of evidence a manager possesses for each
  of his or her assumptions.
• Information gaps are discrepancies between the
  current information level and the desired
  information level.

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Assess the Adequacy of Information on Hand

• To specify research objectives
• Information gaps are the basis for establishing
  research objectives.
• Research objectives are set to gather the
  specific bits of knowledge that need to be
  gathered in order to close the information gaps.

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University Estates Problem Definition
Research Objectives

• Information Gaps (Management Questions) and
  Research Objectives for University Estates

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Review!

• How to get research objectives from management
  questions.
• State the marketing management question.
• List the specific pieces of information needed to
  answer the question.
• Do this for each and every management question.

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The Marketing Research Proposal

• Three functions
• It states the problem.
• It specifies the research objectives.
• It details the research method proposed.
• Proposals also contain a timetable and a budget.

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Research Objectives

• Precise
• Detailed
• Clear
• Operational
• Operational definitions describe the operations
  to be carried out in order for constructs to be
  measured.

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The Role of Constructs

• A construct is an abstract idea inferred from
  specific instances that are thought to be
  related.
• Typical marketing constructs are brand loyalty,
  satisfaction, preference, awareness, knowledge.
• Research objectives typically call for the
  measurement of constructs.
• There are customary methods for defining and
  measuring constructs.

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Constructs
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Constructs
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• A model is a logical arrangement of constructs
  and relationships based on theory or experience
• Hierarchy of Effects
• Unaware-Aware-Knowledge-Liking-Intention-Purchase-
  Loyalty
• Importance-Performance Model
• Importance Performance on attributes

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• Segmentation Model
• Divide up the market based on demographics, etc.
• Company Performance Model
• Sum of evaluations on various attributes

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