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The Value of the Research Process in Addressing Business Problems and Opportunities

This chapter explores the importance of the research process in capturing information to address business problems and opportunities. It discusses the four phases of the research process and factors impacting the marketing research process. It also provides guidelines for defining the problem, stating research objectives, and developing a research design.

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The Value of the Research Process in Addressing Business Problems and Opportunities

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  1. CHAPTER 1234 0001 897251 00000 The Research Process 2 2-2

  2. The Value of The Research Process • The Research Process can be used to capture information to address business problems and opportunities. • The Research Process can be adapted to critical environmental factors on the marketing landscape. • The Research Process is segmented into four basic phases bringing a measure of structure and objectivity to any business problem or opportunity. 2-3

  3. The Four Phases of the Information Research Process Determination ofInformationResearch Problem Development ofAppropriateResearch Design Execution of theResearch Design Communication ofthe Results 2-5

  4. The Marketing Research Process

  5. Factors Impacting on The Marketing Research Process in the New Millennium • The Internet and Electronic Commerce • Gatekeeper Technologies and Data Privacy Legislation • The Expansion of Global Markets • The Re-positioning of Marketing Research as a Primary Contributor to Business Strategy 2-4

  6. Step 1: Define the Problem or Opportunity • Reasons for pursuing the information • Decision maker’s objectives • What is already known about the issue? • Risks associated with the problem or opportunity • Resources available for the research activity • How the information will help the decision maker Items to Consider:

  7. Reasons for Pursuing the Information • Measure consumers’ needs • Detect changes in customer satisfaction • Inquire about consumer behavior • Inquire why there was a loss of market share • Monitor what competitors are doing • Examine environmental elements for market opportunities • Optimize product positioning • Determine necessary media consumption • Pre-test and post-test products

  8. Step 2: State the Research Objectives Three Types: • Gather preliminary information to help identify a problem, generate hypotheses, and gain insights into something of interest • Describe things like attitudes, perceptions, characteristics, activities, and situations • Test hypotheses to determine cause-and-effect relationships

  9. Step 3: Develop A Research Design • Research Design: The framework that directs marketing research efforts. • An effective research design does two things: • Provides answers to questions as objectively, accurately, and economically as possible. • Controls possible sources of errors, such as collecting data from respondents who are not representative of the population of interest.

  10. Types of Research • Exploratory Research • Conclusive Research • Descriptive Research • Causal Research

  11. Exploratory Research Identifies problems, generates hypotheses, and gains insights into particular subjects. • Small-scale in nature • Costs are relatively low • Tends to be flexible • May be carried out in many ways • Findings tend to be inconclusive

  12. Conclusive Research • Provides specific information that aids the decision maker in evaluating courses of action. Sound statistical methods and formal methods and formal research techniques are used by researchers to increase the reliability of the information. • The data sought tends to be specific and decisive, since much is already known about the topic being studied. • The data also tends to be more structured and formal.

  13. Descriptive Research A type of conclusive research: Describes attitudes, perceptions, characteristics, activities, and situations. The researcher knows which research questions will be addressed. • Builds on previous information • Shows a relationship between variables • Representative samples are required • Research plan is structured • Requires substantial resources • Findings are conclusive

  14. Causal Research • Dependent variable: Affected or predicted through the research. • Independent variable: Causes or explains variations in the dependent variable. A type of conclusive research: Provides evidence that a cause-and-effect relationship exists or does not exist. Something (an independent variable) directly influences the behavior of something else (the dependent variable).

  15. Research Frequency Cross-Sectional Study: A look at what is occurring at one moment in time. • Advantages: • Can generate a realistic picture of what was going on at a particular point in time. • May be performed at a relatively low cost. • May not take much of the respondents’ time. • Data may be gathered in a relatively short period of time. • Disadvantages: • May draw an artificial picture of what was going on at a particular point in time. • Data may soon be outdated.

  16. Research Frequency – cont’d • Longitudinal Study:Continuous, whereby the same respondents are questioned or observed during predetermined time intervals over a span of time. • Advantages: • Information obtained over time will usually be more reliable than that gathered at one point in time. • Takes changes related to time into consideration. • Disadvantages: • Can be relatively expensive to carry out since several studies will be conducted. • Information takes a considerable amount of time to collect. • Requires a lot of cooperation on the part of respondents. • Requires a fairly sophisticated research design to control potential biasing factors.

  17. Step 4: Prepare for Data Collection • Secondary Data: Data that has already been collected for a purpose other than the current study. • Primary Data: Original data gathered to satisfy the purpose of the current study. • Essence of Sampling • Sample: Group of individuals or objects from a target population that is chosen to represent the target population. • Population:Entire group of people, markets, companies, or products that is being investigated by the researcher. • Probability Sample: A subset of the population in which the probability of obtaining each sample can be computed and is nonzero for every unit of population. • Nonprobability sample: Where the probability of obtaining each sample cannot be computed.

  18. Step 4: Prepare for Data Collection – cont’d • How will the data be gathered? • Internal Data: Information obtained from within the organization for which the research is conducted. • External Data: Information obtained from outside the organization for which the research is conducted. • Published • Original or Primary Data • Qualitative Data: Information gathered from a small sample of the target population that is used to understand a group’s feelings and insights. It does not involve numbers. • Quantitative Data: Information gathered from many members of the target population that can be quantified and projected to represent the target population. • How will the questionnaire be designed?

  19. Step 5: Collect the Data Personal Interviews Telephone Surveys Mail Surveys Computer-Assisted Surveys • Edit Data • Code Data • Analyze Data Step 6: Analyze the Data Step 7: Write and Present the Research Report

  20. Raw Data, Information Structures, and Information • Raw Data is the actual first-hand responses captured about the topic of interest. • Data Structures are the outcomes which flow in the wake of utilizing some type of qualitative and/or quantitative analysis. • Information is the “good stuff” – the gems of insight which are served up when the research team and decision-makers interpret and attach meaning to data structures. 2-6

  21. Phases and Task Steps in the Information Research Process PHASE I: DETERMINATION OF THE INFORMATION RESEARCH PROBLEM Task Step 1: Determine and Clarify Management’s Information Needs Task Step 2: Redefine the Decision Problem as a Research Problem Task Step 3: Establish Research Objectives and Determine the Value of the Information PHASE II: DEVELOPMENT OF THE APPROPRIATE RESEARCH DESIGN Task Step 4: Determine and Evaluate the Research Design and Data Sources Task Step 5: Determine the Sample Plan and Sample Size Task Step 6: Determine the Measurement Issues and Scales 2-7a

  22. Phases and Task Steps in the Information Research Process PHASE III: EXECUTION OF THE RESEARCH DESIGN Task Step 7: Collect and Process Data Task Step 8: Analyze Data Task Step 9: Transform Data Structures into Information PHASE IV: COMMUNICATION OF THE RESULTS Task Step 10: Prepare and Present the Final Report to Management 2-7b

  23. Phase I: Task Step 1 Determine and Clarify Management’s Information Needs • Take time to insure management has done this precisely. • Is this a problem or a symptom? • List the variables (factors) which directly impact on the problem or opportunity. • List the variables (factors) which indirectly impact on the problem or opportunity. 2-8

  24. Phase I: Task Step 2 Redefine the Decision Problem as a Research Problem • “Break it down” into more scientific terms. • “Break it down” in terms of specific information requirements. • State the problem or opportunity as a “how,” “what,” “where,” “when,” and “why”. • Pinpoint the attributes which need to be included in each question statement. • THIS IS THE MOST IMPORTANT STEP IN THE MARKETING RESEARCH PROCESS. 2-9

  25. Phase I: Task Step 3 Establish Research Objectives & Evaluate Value of Information • Determine what data and information needs collection. • Determine what data and information needs analysis. • Determine what data and information needs interpretation. 2-10

  26. Phase II: Task Step 4 Determine and Evaluate Research Design & Data Sources • What are the methods and procedures which will guide the collection and analysis of information? • Exploratory design? • Descriptive design? • Causal design? • Secondary data sources? • Primary data sources? 2-11

  27. Phase II: Task Step 5 Determine The Sample Plan and Sample Size • Identify the relevant defined target population. • Establish the basic procedures to contact or observe the population. • Determine the appropriate size of the sample. 2-12

  28. Phase II: Task Step 6 Determine Measurement and Scales • Determine the dimensionality of the factors being investigated. • Estimate how to measure the factors being investigated. • Determine the degree of validity for the research endeavor. • Estimate the reliability of the research endeavor. • THIS IS THE SECOND MOST IMPORTANT STEP IN THE RESEARCH PROCESS. 2-13

  29. Phase III: Task Step 7 Collect and Process The Data • Ask questions of your target population or observe them. • Inspect the data and enter it with an eye to error. 2-14

  30. Phase III: Task Step 8 Analyze The Data • This begins a “transition”… raw data is framed in data structures which can be molded into information a decision maker can use to address a decision problem or market opportunity. • Data quality can be scrutinized once again. • Associations between variables can be investigated. • Interdependence between variables can be investigated. 2-15

  31. Phase III: Task Step 9 Transform Data Structures Into Information • Here’s what management has been waiting for… a complete description in narrative form of the outcomes which flow in the wake of the data results and statistical tests performed by your research team. • Voila!... Information has been created for the decision-makers which they can understand and use. 2-16

  32. Phase IV: Task Step 10 Prepare and Present The Final Report to Management • Communicate the research results and new information to decision-makers in written format. • Communicate the research results and new information to management in an oral presentation. 2-17

  33. Data Collection Tools Used in Marketing Research 2-18a

  34. Data Collection Tools Used in Marketing Research 2-18b

  35. The Research Proposal: A General Outline 2-19a

  36. The Research Proposal: A General Outline 2-19b

  37. The Research Proposal: A General Outline 2-19c

  38. Summary of Learning Objectives • Describe the major environmental factors that are directly influencing marketing research, and explain some of their impact on the research process. • Describe and discuss the four phases and 10 integrative task steps involved with the research process, and explain some of the key activities within each step. • Explain the differences between raw data, data structures, and information, and explain the process by which raw data is transformed into information that managers can use. • Identify the most critical task step in the research process, and explain why it is so important. • Distinguish among exploratory, descriptive, and causal research designs. • List the critical issues in the development of a sampling plan, and explain the basic differences between a probability and nonprobability sampling plan. • Identify and explain the major components of a solid research proposal. 2-20

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