Defining the Research Problem

1. Defining the Research Problem

2. The Marketing Research Process Figure 1.4 The Marketing Research Process Step 1: Defining the Problem (research objectives) Step 2: Planning the Research Design Step 3: Planning a Sample Step 4: Doing Field Work Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report

3. Selection of exploratory research technique Problem discovery Problem Discovery and Definition Sampling Selection of exploratory research technique Probability Nonprobability Secondary (historical) data Experience survey Pilot study Case study Collection of data (fieldwork) Data Gathering Data Processing and Analysis Editing and coding data Problem definition (statement of research objectives) Data processing Selection of basic research method Research Design Conclusions and Report Interpretation of findings Experiment Survey Observation Secondary Data Study Report Laboratory Field Interview Questionnaire

4. What Does “Problem” Mean? • The terms “problem” or “deliverables” can mean • something has gone wrong • clarification of the situation • defining an opportunity • monitoring & evaluating operations • Ultimately, they mean the objectives of the research

5. The Problem Definition Stage Figure 2.3 The Problem Definition and Approach Development Process Tasks Involved Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Qualitative Research Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Analytical Framework and Models Research Questions and Hypotheses Specification of Information Needed

6. Beware the Iceberg! • The Iceberg Principle • The dangerous part of many marketing problems is neither visible to nor understood by many marketing managers. • “Submerged” parts of the problem must be understood and including in the research design for the research to be useful.

7. Symptoms vs. Problems • Microbrewery • Symptom • Consumers prefer the taste of competitor’s brand • PD based on the Symptom • What type of reformulated taste is needed? • True Problem • Old-fashioned package influenced taste perception

8. Symptoms vs. Problems • Manufacturer of palm-size computers with Internet access • Symptom • Distributors complain prices are too high • PD based on the Symptom • Investigate business users to learn how much prices need to be reduced • True Problem • Distributors do not have adequate product knowledge to communicate product’s value

9. Management Decision Problems Ask what the decision maker needs to do Action oriented Focus on symptoms Marketing Research Problems Ask what information is needed and how it should be obtained Information oriented Focus on the underlying causes Management Decision Problems vs.Marketing Research Problems

10. Translating Management Problems into Research Problems (Questions) • Management Problem • Determine the best ways the firm can communicate with potential purchasers of laptop computers • Research Questions • How familiar are consumers with the various brands of computers? • What attitudes do consumers have toward these brands? • How important are the various factors for evaluating the purchase of a laptop computer? • How effective are the communications efforts of the various competitive marketers in terms of message recognition?

11. “Bad” vs. “Good” Research Questions • Research questions should be stated as clearly as possible • “Bad” research question • Is advertising copy X better than advertising copy Y? • “Good” research question • Which advertising copy has a higher day-after recall score?

12. Development of Research Questions & Hypothesis Figure 2.9 Development of Research Questio1ns and Hypothesis Components of the Marketing Research Problem Analytical Framework and Models Research Questions Hypotheses

13. Theories • Formal, logical explanations of events • Include descriptions of how things relate to one another (this is the “framework”) • Built through a process of • Reviewing previous findings of similar situations • Simple logical deduction • Knowledge of applicable theoretical areas

14. Theories • Web designer wants to determine what color is best to use for page backgrounds • Consult prior studies that examined the effects of color on package design and retail store design • Perhaps also look at theories that explain retail atmospherics • This would allow logical deductions of how color interacts with atmospherics to improve retail sales

15. Hypotheses • A formal, unproven proposition (prediction) about the empirical (real) world. • Hypotheses state the relationships defined by the theory • Through empirical testing, we can • Reject the hypothesis: the data proved to be inconsistent with the hypothesis • Fail to Reject the hypothesis: the data proved to be consistent with the hypothesis • Never accept an hypothesis … you simply may not yet have discovered enough evidence to reject it.

16. How They Fit Together • Management Question • What retail price should we charge for our new iPad? • Research Objective • Forecast sales of the new iPad at 3 different price levels. • Hypotheses • Sales will be higher at $599 than at $499. • Sales will be higher at $699 than at $499. • Sales will be higher at $599 than at $699.