The Research Process and Problem Formulation

1. The Research Process and • Problem Formulation

2. Justify the Need for Marketing Research • Four Considerations: • Potential usefulness of the results • Management attitudes towards marketing research • Resources available for implementation • Costs vs. benefits

3. Formulate Problem Determine Research Design Design Data Collection Method and Forms Design Sample and Collect Data Analyze and Interpret the Data Prepare the Research Report

4. Research Process The Research Process is an interrelated sequence of steps that make up a research project

5. Example of Interrelationship: At the first step the researcher must understand what is involved in the remaining stages Research Process - Interrelated

6. Defining the Research Objective • Most Critical Step: • Establishing the project’s purpose through effective communication between the decision maker and the researcher allows them to establish clear-cut agreed upon research objectives

7. Defining the Research Objective (Cont’d) • Key: Accurate definition of the problem and all potential causes • Marketing Problem • Exploratory research fueled by client/researcher communication • Potential cause • Decide which causes most directly effect the problem • Decide if these issues are worth following • Goal: Decide on clear cut research objectives

8. Avoiding Mistakes in Problem Definition – McDonalds Arch Deluxe • Strategy • Successful at attracting children with Happy Meals • Alternate Strategy • Needed to attract adults to McDonalds • Apparent Assumption • Adults need a bigger & better hamburger • Examined Wrong Problem • Marketing Research centered around product attributes and not discovering adult consumer needs • Mistake • Failed to examine what adult consumers are looking for

9. Avoiding Mistakes in Problem Definition (Cont’d) • Effective Communication is a Must • Effective dialogue is critical for properly diagnosing any situation calling for the use of marketing research: • Especially important when the purpose of a research is to explore opportunities • The chances that a wrong or nonexistent problem will be researched are greatly when there is no healthy

10. Stage in the Process Typical Questions What is the purpose of the study--to solve a problem? Identify an opportunity? Is additional background information necessary? What information is needed to make the decision? How will the information be utilized? Should research be conducted? How much is already known? Can a hypothesis be formulated? What types of questions need to be answered? What type of study will best address the research questions? Can existing data be used to advantage? What is to be measured? How? What is the source of the data? Can objective answers be obtained by asking people? How should people be questioned? Should the questionnaires be administered in person, over the phone, or through the mail? Should electronic or mechanical means be used to make the observations? What specific behaviors should the observers record? Should structure or unstructured items be used to collect the data? Should the purpose of the study be made known to the respondents? Should rating scales be used in the questionnaire? Formulate problem Determine research design Determine data collection method and forms

11. Stage in the Process Typical Questions Design sample and collect the data Analyze and interpret the data Prepare the research report Who is the target population? Is a list of population elements available? Is a sample necessary? Is a probability sample desirable? How large should the sample be? How should the sample be selected? Who will gather the data? How long will the data gathering take? How much supervision is needed? What operational procedures will be followed? What methods will be used to ensure the quality of the data collected? Who will handle the editing of the data? How will the data be coded? Who will supervise the coding? Will computer or hand tabulation be utilized? What tabulations are called for? What analysis techniques will be used? Who will read the report? What is their technical level of sophistication? Are managerial recommendations called for? What will be the format of the written report? Is an oral report necessary? How should the oral report be structured?

12. Questions That Need to Be Answered by the Client/Marketing Researcher Team • Why am I conducting this research ? • How will I tell if my project has been a success ? • What method will be used ? • What questions will be asked ? • Who will be interviewed ? • How will you get contact information for potential respondents?

13. Questions That Need to Be Answered by the Client/Marketing Researcher Team (Cont’d) • When and where data will be collected ? • Which pieces will be done internally and which will be done externally ? • What statistical analysis will be performed ? • How will the results be communicated in the organization?

14. Identifying Data Needs • Steps • Scrutinize the research purpose • List the types of data that will fulfill this purpose

15. Identifying Data Sources • Primary Data • Data obtained directly from consumer to fulfill a specific purpose • Secondary Data • Data that are readily available from other sources

16. Choosing the Appropriate Research Design • Research Proposal: • Serves as a blueprint for the execution of the product • Explains: • Purpose and scope of the project • The specific design of the project • Sample design • Data collection procedures • The data analysis plan • The project timetable • The estimated cost of the project

17. Design the Research Instrument or Form • Relevant when you are using primary data • Interviews • Observation • The type of form used can seriously effect the nature and/or the quality of the data.

18. From where should the units come? Who or what type of units? How should the units be chosen? How many units? 30 Identifying the Sample

19. BK Broiler- Research Process Stages • Justify the need for marketing research • BK researched to develop a broiled chicken sandwich that appealed to women • Research was worthwhile because it was potentially useful and the resources to implement the findings were available • Define the research objective • Assess the appeal of the new broiled chicken sandwich among the target market of women.

20. BK Broiler- Research Process Stages (Cont’d) • Identify data needs 1. Purchase Measures • Purchase intention • Purchase frequency 2. Overall Product Diagnostics • Reasons underlying the purchase intention • Uniqueness, differentiation 3. Attribute Diagnostic • Data regarding specific • Attributes to focus product development 4. Respondent Profiling Variables • Demographic information

21. BK Broiler- Research Process Stages (Cont’d) • Identify data sources • Primary data to collect consumer impressions • Secondary data to serve as a benchmark • Choose appropriate research design and data collection method • For Primary Data: • Developed by outside agency • Descriptive research • Collection through mall-intercept • Prescreen respondents

22. BK Broiler-Research Process Stages -Choose Appropriate Research Design and Data Collection Method • Four Positionings: 1. Choice white meat/chicken breast 2. Backyard BBQ Taste 3. Marinated Special Blend/Homestyle Taste 4. Competitive Claim • Form used to evaluate each on the basis of concept, positioning, and perceived taste • Taste Tests: • 9 different combinations of buns and sauce

23. BK Broiler-Research Process Stages (Cont’d) • Design the research instrument or form • Questionnaire: 1. Pre-recruit screener questions 2. Concept evaluation questions 3. Taste Test 4. Classification questions

24. BK Broiler-Research Process Stages (Cont’d) • Identify the sample • Sample: • 835 interviews • 10 malls in different geographic locations • 150 taste tests • People who had eaten chicken in a fast food restaurant • 65% female, 35% male • 50% ages 18-34, 50% ages 35-54 • 50% BK consumers, 50% non-BK consumers

25. BK Broiler-Research Process Stages (Cont’d) • Collect data, including any relevant secondary data • 835 interviews • 10 malls in different geographic locations • 150 taste tests

26. BK Broiler-Research Process Stages (Cont’d) • Analyze and interpret the data • “Choice White Meat / Chicken Breast” generated the highest level of positive interest • Interest driven by predisposition to chicken and appetizing appearance • Health aspects were secondary driver • Sandwich favored in 35-54 age group, with women and with non-BK consumers • Present the research findings to decision makers

27. Nickelodeon Wants to Know You • How does Nickelodeon get a kid’s view point about a TV Show? • Adopted a day-care center for testing new shows or new characters • Conducted marketing research on a weekly basis in a NJ school. Researchers quiz the kids on all aspects of their lives

28. Nickelodeon Wants to Know You (Cont’d) • How does Nickelodeon get a kid’s view point (cont’d)? • Children are given disposable cameras to record their activities in photos and words • Conducts focus groups with school-age viewers • What do you think about Nickelodeon’s research methods? Any ethical issues?

29. Stake Holders of Basic Ethical and Business Principles • Research Suppliers • Field Service Firms • Research subjects or respondents • Clients • General public

30. The Esomar Web Site Website Spells out the rights of stake holders

31. Council for Marketing and Opinion Research - Respondent Bill of Rights • What Your Rights are if You are Interviewed • Your privacy and the privacy of your answers will be respected and maintained • Your name, address, phone number, personal information, or individual responses won't be disclosed to anyone outside the research industry without your consent • You will always be told the name of the person contacting you, the research company's name, and nature of the survey

32. What Your Rights Are if You Are Interviewed (Cont’d) • You will not be sold anything, or asked for money, under the guise of research • You will be contacted at reasonable times, but if the time is inconvenient, you can ask to be re-contacted at a more convenient time • Your decision to participate in a study, answer specific questions, or discontinue your participation will be respected without question

33. What Your Rights Are if You Are Interviewed (Cont’d) • You will be informed in advance if an interview is to be recorded and of the intended use of the recording • You are assured that the highest standards of professional conduct will be upheld in the collection and reporting of information you provide • Source: www.cmor.org

34. Recognizing Ethical Situations • GeoCities • An online community site created a children internet club • Pledged to parents that information will not be transferred to 3rd party • Federal Trade Commission • Took issue with the company over the transfer of children’s personal information to an another company partly owned by GeoCities

35. Recognizing Ethical Situations (Cont’d) • GeoCities claimed the transfer is internal. Is the information transfer internal or external (3rd party) ? • FTC’s Ruling: GeoCities misled its customers, both children and adults, by not telling them the truth about how it was using their personal information

36. Recognizing Ethical Situations (Cont’d) • GeoCities signed a twenty-year consent order requiring the company to spell out what information it collects, how it is used, and to whom it will be disclosed