Chapter 1 The Role of Marketing Research

1
Chapter 1The Role of Marketing Research
www.abac-mgt.com 
2
(No Transcript)
3
(No Transcript)
4
A Question!!

• How to get an answer whether these statement are
  TRUE?
• No. 1 Is Sizzler categorized as a service
  company since the product it sells is service not
  physical goods?
• No. 2 How students value the international
  program?

INFORMATION REDUCESUNCERTAINTY
5
Business Research

• RESEARCH (re-search) -search again
• Business research is defined as the systematic
  and objective process of generating information
  for aid in making business decisions
• Research information
• neither intuitive nor haphazardly gathered.
• must be objective
• Detached and impersonal
• Aimed to gain Information to reduces uncertainty
• It facilitates the managerial decision process
  for all aspects of a business

.
Chapter 1 The Role of Business Research
6
Types of Business Research

• Basic Research
• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a
  pragmatic problem.
• Is brand equity related to consumers decision
  making?
• Does employee satisfaction correlate to
  commitment?
• Applied Research
• Conducted when a decision must be made about a
  specific real-life problem
• Should KFC add spicy chicken wing to its menu?
• Should Procter Gamble add a high-priced
  orthodontic toothbrush to its product line?

7
Potential value of a business research effort
should exceed its estimated costs

• Costs
• Research expenditures
• Delay of marketing decision and possible
  disclosure of information to rivals
• Possible erroneous research results

• Value
• Decreased uncertainty
• Increased likelihood of a correct decision
• Improved marketing performance and resulting
  higher profits

8
Research Problem

• Problem
• When there is a difference between the current
  conditions and a more preferable set of
  conditions.
• Problems Mean Gaps
• Business performance is worse than expected
  business performance.
• Actual business performance is less than possible
  business performance.
• Expected business performance is greater than
  possible business performance.

9
Research ProblemThe Iceberg Principle
Example The impact of Sales Service Quality on
Home Buying
10
Theory

• A coherent set of general propositions used as
  principles of explanation of the apparent
  relationships of certain observed phenomena.
• Two purposes of theory
• Prediction
• Understanding

11
Concept (or Construct)

• A generalized idea about a class of objects,
  attributes, occurrences, or processes that has
  been given a name
• A mental image that has no meaning to someone
  else except for the one who conceptualize.
• Example
• Management leadership productivity,
• Marketing satisfaction quality Intention
• Economics inflation gross national
  product,

12
A Ladder Of Abstraction For Concepts
Vegetation
Fruit
Increasingly more abstract
Apple
Reality
13
The content of theory
Abstract
Empirical

• A concept or construct - a generalized idea about
  anything that are focused in the research.
• Proposition - statement about concept or
  relationship between concepts

• A variable is anything that may assume different
  numerical values
• Hypothesis - statement/s that guide the
  possibility of an explanation or generalization
  which can be validated empirically.
• Its empirically testable proposition

14
Proposition at Abstract Level
Concept B Behavior
Concept A Reinforcement

Hypothesis at Empirical Level
Variable A Grand Sales 20 Discount
Variable B Sales increase
15
To generate idea

• Deductive Reasoning
• The logical process of deriving a conclusion from
  a known premise or something known to be true.
• Inductive Reasoning
• The logical process of establishing a general
  proposition on the basis of observation of
  particular facts.

16
INDUCTION
17
DEDUCTION
18
A Summary of the Scientific Method
19
Defining Problems Can Be Difficult
20
Hypotheses development
Business problem How to increase sales volume?
Main Research problem How consumers perform
their impulse purchase?
21
Conceptual Framework
Hypothesis 1 Encouraging statement is related to
customers impulse purchase Hypothesis 2 Product
presentation is related to customers impulse
purchase
Hypothesis 1 Encouraging statement enhances
trust Hypothesis 2 product presentation
enhances satisfaction Hypothesis 3 Satisfaction
enhances impulse purchase.
22
From Concept to Variable

• Variables come from concept that a researcher has
  identified from literature review, opinion,
  experience or observation
• Types of variables
• Independent
• Predictor
• Cause
• Dependent
• Criterion/Resultant
• Effect
• Moderator Enhances understanding of relations
  between independent and dependent variable
• Mediating (Intervening) Relates two variables
  together

23
Categorical variable

• Variable consists of only small number of values,
  each corresponding to a specific category value
  or label.
• Consumer status
• High frequent , low frequent, non-customer
• Gender
• Male, female
• Marital status
• Single, married, divorced, widowed

24
Continuous variable

• Data that consist of a large number of values,
  with no particular category label attached to any
  particular data value.
• weight in kilograms
• the age in years
• the distance from the customers home to the
  department store in kilometers.

25
The Problem-Definition Process
26
Determine the Unit of Analysis

• Unit of Analysis
• Indicates what or who should provide the data and
  at what level of aggregation.
• Individuals (such as customers, employees, and
  owners)
• Households (families, extended families, and so
  forth)
• Organizations (businesses and business units)
• Departments (sales, finance, and so forth)
• Geographical areas
• Objects (products, advertisements, and so forth).

27
Research Objectives and Questions

• Research Questions
• Express the research objectives in terms of
  questions that can be addressed by research.
• Help to develop well-formulated, specific
  hypotheses that can be empirically tested
• Help the researcher design a study that will
  produce useful results.

28
The Research Proposal

• Research Proposal
• A written statement of the research design
• Uses for the Proposal
• As a planning tool
• As a contract

29
Stages in the Research Process

• Forward linkage earlier stages influence later
  stages.
• Backward linkage later steps influence earlier
  stages of the research process.

30
(No Transcript)