Marketing Research Process

1. Marketing Research Process 1. Formulate Problems 6. Research Report - Specify Research Objectives 2. Research Design 5. Data Analysis - Exploratory, - Interpretation Descriptive, Causal 3. Data Collection Method 4. Sample Design -Primary, secondary - Sampling frame, -Questionnaire Design sample selection, -Attitude Measurement sample size

2. “The formulation of the problem is often more essential than its solution” Albert Einstein

3. Stage 1: Problem Formulation Decision ProblemResearch Problem What should the What information is decision maker do? needed, and how to obtain information?

4. Examples of Problem Formulation Decision Problems Research Problems 1. Develop package for Evaluate effectiveness of a new product alternative package design 2. Allocate newspaper space Measure readers’ interests for for various topics. in these topics. 3. Mobile phone companies Study how target segment develop value-added values alternative value-service. added services. 4. Increase store traffic. Measure current store image & store choice decisions.

5. Types Of Research • Exploratory • Descriptive • Causal

6. Uncertainty Influences The Type Of Research CAUSAL OR DESCRIPTIVE EXPLORATORY COMPLETELY CERTAIN ABSOLUTE AMBIGUITY

7. Degree of Problem Definition Exploratory Research Descriptive Research Causal Research (Unaware of Problem) (Aware of Problem) (Problem Clearly Defined) “Our sales are declining and “What kind of people are buying “Will buyers purchase more of we don’t know why.” our product? Who buys our our products in a new package? competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?” “What features do buyers prefer campaigns is more effective?” in our product?” possible situation

8. Exploratory Research Secondary data Experience survey Pilot studies

9. Exploratory Research • Initial research conducted to clarify and define the nature of a problem • Does not provide conclusive evidence • Subsequent research expected

10. Descriptive Research • Describes characteristics of a population or phenomenon • Some understanding of the nature of the problem

11. Causal Research • Conducted to identify cause and effect relationships

12. Figure 5.1: Relationship Among Research Designs Descriptive Research Exploratory Research Causal Research

13. Why Exploratory Research • To gain ideas and insights about the research problem • To increase familiarity • To develop hypotheses to be tested in subsequent research • To help questionnaire development and in pre-testing questionnaires

14. Characteristics of Exploratory Research • Less structured/More flexible • Usually small sample sizes involved; may or may not be representative of the population

15. Types of Exploratory Research • Literature Research • Focus Groups • Experience Surveys • Analysis of Selected cases

16. Literature search • Conceptual literature • Trade literature • http://www.sportlink.com/ • http://www.aham.org/ • http://www.nsda.org/ • Published statistics

17. Experience Surveys • Knowledgeable people with varying points of view; Unstructured and informal interview • attempt to tap the knowledge and experience of those familiar with the general subject being investigated • Examples

18. Analysis of Selected Cases • Attitude of investigator is key, must be alert to new ideas; Integrative powers of investigator are important. • Three types • cases reflecting changes (and abrupt changes) • cases reflecting extremes of behavior • cases reflecting the order in which events occurred

19. Focus Group Study • Objectives • Generate new ideas, exploring new product concepts; • Uncovering customer attitudes, “language of consumers” • Refining hypothesis.

20. The Popularity of Focus Groups • Most marketing research firms, advertising agencies, and consumer goods manufacturers use focus groups. • Focus groups tend to be used more extensively by consumer goods companies than by industrial goods organizations.

21. Focus Groups • 8 to 12 people at a time, Relatively homogenous groups • Multiple groups to get heterogeneity in perspective • Moderator is key; Relies on general topical guide, but with plenty of time for interaction

22. Advantage Quick information Stimulate new ideas Interactive Relatively small total cost (but cost/respondent is high) Disadvantage Recruiting problems. Hard to quantify results. Small sample size. Can’t generalize to target population. Focus Group Study

23. Trends in Focus Groups • Telephone Focus Groups • Focus groups that are conducted via conference calling. • Videoconference Focus Groups • Staffers can watch focus groups via videoconferencing and avoid the costs of travel. • On-line focus groups • Focus groups that are conducted through internet (Chat rooms) - visit http://GreenfieldOnline.Com

24. Summary of Day • First step of research process is to know • how information will be used. • What information we need to collect. • Research design: blueprint for process of information collection. • Choice of research design depends on research objective. • Exploratory research is to gain insights and ideas, NOT confirmatory. • Focus group study emphasizes “interaction”.

25. Next class • Descriptive research design • Read Chapter 6, pp. 109-132