The Marketing Research Process

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Chapter 3

• The Marketing Research Process

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The Marketing Research Process
Follow-up
Writing and Presenting the Report
Creation of the Research Design
Problem/ Opportunity Identification Formulation
Analysis of the Data
Choice of Method of Research
Collection of the Data
Selection of the Sampling Procedure
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Marketing Research Process

• 1. Problem Definition
• 2. Development of an Approach to the Problem
• 3. Research Design
• 4. Field work and data collection
• 5. Data preparation and Analysis
• 6. Report preparation presentation

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Research Process (1)

• Problem Definition (Basic issues)
• What is the (the managers) purpose of the
  research?
• What kind of decision is managements trying to
  make
• What are alternative decision outcomes of
  research
• How will research aid in decision

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Research Process (2)

• Development of an Approach to the problem
• What are the specific research questions to be
  answered?
• What exploratory research is necessary to refine
  the problem definition? (e.g., focus groups)
• What sources of data can be used
• What theoretical frameworks are relevant to the
  research?
• What analytical models can be used to guide the
  research?
• What are the specific research hypotheses that
  can be tested to answer the research questions?

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Research Process (3)

• Development of an Approach to the problem
  (continued)
• What analytical models can be used to guide the
  research?
• What are the specific research hypotheses that
  can be tested to answer the research questions

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Research Process (4)

• Research Design
• What secondary data can be used to address the
  research questions?
• What additional qualitative research is needed?
• What methods will be used to collect primary
  quantitative data?if survey
• What are the appropriate scaling and measurement
  procedures?
• What is the questionnaire design?
• What sampling procedures will be used
• How will the data be analyzed?

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Research Process (5)

• Field Work and Data collection
• the actual administration of the questionnaire
• Data preparation and analysis
• coding responses to questionnaire
• developing descriptive analyses
• testing hypotheses
• Report generation presentation

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Research Design Formulation

• Secondary data analysis
• Qualitative research
• Methods of collecting quantitative data
• Definition of the information needed
• Measurement and scaling procedures
• Questionnaire design
• Sampling process and sample size
• Plan of Data analysis

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Marketing Research Process
Management Decision Problem

• 1. Problem Definition
• 2. Development of an
• Approach to the Problem
• 3. Research Design
• 4. Field work and data collection
• 5. Data preparation and Analysis
• 6. Report preparation presentation

Exploratory Research Analytical Modeling
Marketing Research Problem
Theoretical Framework
Research Hypotheses
Research Design
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The Problem Definition Flow
Management Decision Problem
Marketing Research Problem Questions
Research Hypotheses
Research Design
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Problem Definition Components

• Management Decision Problem
• The decision the manager must make to take action
• The Marketing Research Problem
• What information is needed for the manager to
  make decision
• how to obtain information

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T15 Figure 2.3 Proper Definition of the
Research Problem
Marketing Research Problem
Broad Statement Specific Components
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Problem Definition Components (2)

• Research Questions
• The refined statements of the components of the
  research problem
• Research Hypotheses
• very specific testable propositions about
  relationships between variables
• Research Design
• The plan to be followed to answer the questions

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Decision Problems and Research Problems
(exercise)

• What pricing strategy to follow for a new product
• assess the companys current pricing strategy for
  similar products.
• Assess competitors pricing strategy for products
• Whether to increase the level of advertising
  expenditures on print
• Evaluate the current effectiveness of print
  advertising
• Compare this to the effectiveness for other media

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Decision Problems and Research Problems
(exercise-2)

• Whether to increase in-store promotion of
  existing product
• Evaluate effectiveness of present promotional
  scheme by determining its impact on sales volume
• Whether to revise a banks electronic payment
  service
• evaluate current systems users as well as
  non-users attitudes about the service

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Specific objective - 1
Specific objective - 2
Statement of marketing problem
Broad research objectives
Research design
Results
Specific objective - 3
Exploratory research (optional)
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Some Tools in Problem Definition

• Exploratory research e.g.,
• Qualitative Research
• focus groups
• Depth interviews (experts, consumers)
• etc.
• Secondary data analysis
• Literature review
• Especially related theory
• Analytical Modeling

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The Problem Definition Flow
Management Decision Problem
Exploratory Research Analytical Modeling
Marketing Research Problem Questions
Theoretical Framework
Research Hypotheses
Research Design
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Theory

• A set of systematically related statements,
  including some law-like generalizations, that is
  empirically testable. The purpose of theory is to
  increase scientific understanding through a
  systematized structure capable of both explaining
  and predicting phenomena.

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FISHBEINS THEORY OF REASONED ACTION (Verbal)

• Actual behavior is a function of behavioral
  intentions which results from the combination of
  how the individual personally evaluates a
  behavior and how the individual evaluates the
  reaction of others concerning the behavior

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FISHBEINS THEORY OF REASONED ACTION (Graphical)
Behavioral Intentions
Behavior
Subjective Norm
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FISHBEINS THEORY OF REASONED ACTION
(Mathematical)
Where
and
AB Attitude toward Behavior SN Subjective Norm
(of reference group) b belief about
consequences of behavior (or what reference
groups will think) e importance of belief m
motivation to comply with reference groups
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The Role of Theory in Applied Marketing Research
Research Task
Role of Theory

• 1. Conceptualizing
• and identifying
• key variables
• 2. Operationalizing
• key variables
• 3. Selecting a research design

• provides conceptual foundation
• -suggests key dependent and independent
  variables.
• suggest how independent and dependent variables
  can be measured
• suggest existence of causal or associative
  relationships
• -thus, causal or descriptive design

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Research Task Role of Theory

• 4. Selecting a sample
• 5. Analyzing and interpreting data
• 6. Integrating findings

• useful in defining the population
• guide the selection of a data analysis strategy
  and the interpretation of results.
• findings can be interpreted in the light of
  previous research
• --integrated with the existing body of knowledge.

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LexusManagement Decision

• What can Lexus do to fight competition from
  other luxury manufacturers such as Mercedes, BMW,
  and Jaguar as well as from the near luxury
  brands (Nissan Maxima, etc.)

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LexusMarketing Research Problem

• Determine the factors that influence consumer
  preferences for luxury and near luxury
  automobiles
• what are choice criteria adopted by consumers
  when buying luxury automobiles?
• How are Lexus and competition evaluated on these
  criteria?
• How does the perception of value vary for luxury
  and near luxury automobiles?

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LexusResearch Questions

• Which is more important in buying luxury
  automobiles prestige, image, or value?
• How value conscious are buyers of Lexus?

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LexusHypotheses

• The luxury car market may be segmented into two
  groups those who are prestige conscious and
  those that are value conscious.
• Lexus car buyers are more value conscious than
  buyers of competing cars but are less value
  conscious as compared to buyers of near luxury
  cars

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Marketing Research Process
Management Decision Problem

• 1. Problem Definition
• 2. Development of an
• Approach to the Problem
• 3. Research Design
• 4. Field work and data collection
• 5. Data preparation and Analysis
• 6. Report preparation presentation

Exploratory Research Analytical Modeling
Marketing Research Problem
Theoretical Framework
Research Hypotheses
Research Design
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T22 Figure 3.1 A Classification of Marketing
Research Designs
Research Design
Exploratory Research Design
Conclusive Research Design
Descriptive Research
Causal Research
Cross-Sectional Design
Longitudinal Design
Single Cross-Sectional Design
Single Cross-Sectional Design
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Exploratory Research

• research designed to gain greater insight into
  what the important questions and variables
  are--break broad, vague problem into smaller more
  precise subproblems

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Consumption of Soft Drinks (percentage consuming
on a typical day)
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Total Coffee Penetration
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Types of Research
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Purposes of Exploratory Studies

• isolate a problem for purposes of formulating
  hypotheses
• establishing priorities for further research
• increasing analyst's familiarity with
  problem--identifying key variables
• clarifying concepts

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Descriptive vs. Causal Studies
Studies that answer the questions who, what,
when, and how
Studies that examine whether one variable causes
or determines the value of another variable
Descriptive
Causal
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Types of Research
Moderately Stringent Research Standards
Very Stringent Research standards
Flexible Research standards
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Requirements for Attribution of Causality

• Concomitant Variation
• covariation of IV and DV
• Temporal Sequence
• IV must precede DV
• Lack of Spurious Correlation