Defining the Marketing Defining the Marketing Research Problem and Research Problem and

Developing an ApproachDeveloping an Approach

1) Overview1) Overview

2) 2) Importance of Defining a ProblemImportance of Defining a Problem

3) The Process of Defining a Problem and 3) The Process of Defining a Problem and

Developing an ApproachDeveloping an Approach

4) Tasks involved in Problem Definition4) Tasks involved in Problem Definition

i. Discussions with Decision Makersi. Discussions with Decision Makers

ii. Interviews with Industry Expertsii. Interviews with Industry Experts

iii. Secondary Data Analysisiii. Secondary Data Analysis

iv. Qualitative Researchiv. Qualitative Research

Chapter OutlineChapter Outline

5) Environmental Context of the Problem5) Environmental Context of the Problem

ii. Past information and Forecasts. Past information and Forecasts

ii. Resources and Constraintsii. Resources and Constraints

iii. Objectivesiii. Objectives

iv. Buyer Behavioriv. Buyer Behavior

v. Legal Environmentv. Legal Environment

vi. Economic Environmentvi. Economic Environment

vii. Marketing and Technological Skillsvii. Marketing and Technological Skills

6)6) Management Decision Problem and Management Decision Problem and Marketing Research ProblemMarketing Research Problem

7) Defining the Marketing Research Problem7) Defining the Marketing Research Problem

8) Components of an Approach8) Components of an Approach

i. Objective / Theoretical Foundationsi. Objective / Theoretical Foundations

ii. Analytical Modelii. Analytical Model

iii. Research questionsiii. Research questions

iv. Hypothesisiv. Hypothesis

v. Relevant Characteristicsv. Relevant Characteristics

9) International Marketing Research9) International Marketing Research

10) Ethics in Marketing Research10) Ethics in Marketing Research

11) Internet and Computer Applications11) Internet and Computer Applications

12) Focus on Burke12) Focus on Burke

13) Summary13) Summary

14) Key Terms and Concepts14) Key Terms and Concepts

15) Acronyms15) Acronyms

Chain Restaurant StudyChain Restaurant StudyRIP 2.1RIP 2.1

One day I received a phone call from a research analyst who introduced himself as one of our alumni.

He was working for a restaurant chain in town and wanted help analyzing the data had collected while conducting a marketing research study.O

When we met, he presented with a copy of the questionnaire and asked how he should analyze the data. My first question to him was,

When he looked perplexed, I explained that data analysis in not an independent exercise.

Rather the goal of data analysis is to PROVIDE INFORMATION RELATED TO THE PROBLEM

COMPONENTS.

I was surprised to learn that he did not have a clear understanding of the market research problem and that a written definition did not exist. So before going any further, I had to definedefine the marketing research problem.

Once that was done, I found that much of the data collected was a not relevant to the problem. In this sense, the whole study was a waste of resources. A new study had to be designed and implemented to address the problem defined.

The Problem Definition ProcessThe Problem Definition ProcessFig. 2.1Fig. 2.1

DiscussionwithDecision Maker(s)

Interviewswith Experts

SecondaryData Analysis

QualitativeResearch

Management Decision Problem

Marketing Research Problem

Tasks Involved Tasks Involved

Environmental Context of the Problem

Step I: Problem DefinitionStep I: Problem Definition

Step II: Approach to the ProblemStep II: Approach to the Problem

Objective/ TheoreticalFoundations

AnalyticalModel:Descriptive

ResearchQuestions Hypotheses

Step III: Research DesignStep III: Research Design

Analytical Model: Verbal, Graphical, Mathematical

Characteristics/FactorsInfluencingResearchDesign

PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECNOLOGICAL SKILLS

Factors to be Considered in theFactors to be Considered in theEnvironmental Context of the ProblemEnvironmental Context of the Problem

Fig. 2.2Fig. 2.2

Marketing Research Problem

Broad Statement

Specific Components

Proper Definition of theProper Definition of theResearch ProblemResearch Problem

Fig. 2.3Fig. 2.3

The Role of Theory inThe Role of Theory inApplied Marketing ResearchApplied Marketing Research

Table 2.1Table 2.1

Research Task Role of Theory

1. Conceptualizing

and identifying

key variables

Provides a conceptual foundation and understanding of the basic processes

underlying the problem situation. These processes will suggest key dependent

and independent variables.

2. Operationalizing

key variables

Theoretical constructs (variables) can suggest independent and dependent

variables naturally occurring in the real world.

3. Selecting a

research design

Causal or associative relationships suggested by the theory may indicate whether

a causal or descriptive design should be adopted.

4. Selecting a

sample

The theoretical framework may be useful in defining the population and

suggesting variables for qualifying respondents, imposing quotas, or stratifying

the population (see Chap. 11).

5. Analyzing and

interpreting data

The theoretical framework (and the models, research questions and hypotheses

based on it) guide the selection of a data analysis strategy and the interpretation

of results (see Chap. 14).

6. Integrating

findings

The findings obtained in the research project can be interpreted in the light of

previous research and integrated with the existing body of knowledge.

Development of ResearchDevelopment of ResearchQuestions and HypothesesQuestions and Hypotheses

Fig. 2.4Fig. 2.4

Components of the

Research Questions

Hypotheses

Objective/TheoreticalFramework

AnalyticalModel

Marketing Research Problem

United Airlines, as other major airlines, had to United Airlines, as other major airlines, had to deal with deal with passenger loyaltypassenger loyalty (management (management decision problem: how to attract more and more decision problem: how to attract more and more loyal passengers?). The broad loyal passengers?). The broad marketing marketing research problemresearch problem was to identify the was to identify the factors that factors that influence loyalty of airline travelers. influence loyalty of airline travelers.

At United, Food is Uniting the Airline At United, Food is Uniting the Airline With TravelersWith Travelers

RIP 2.2RIP 2.2

The basic answer is to The basic answer is to improve serviceimprove service. Exploratory . Exploratory research, theoretical framework, and empirical research, theoretical framework, and empirical evidence revealed that the consumers’ choice of an evidence revealed that the consumers’ choice of an airline is influenced by: airline is influenced by: safetysafety, , price of the ticketprice of the ticket, , frequent-flyer programfrequent-flyer program, , convenience of schedulingconvenience of scheduling, , and brand name.and brand name.

A graphical model stipulated A graphical model stipulated that consumers evaluate that consumers evaluate competing airlines based on competing airlines based on factors of the choice criteria to factors of the choice criteria to select a preferred airline. The select a preferred airline. The problem was that major problem was that major airlines were quite similar on airlines were quite similar on these factors. Indeed, "airlines these factors. Indeed, "airlines offer the same schedules, the offer the same schedules, the same service, and the same same service, and the same fares.” Consequently, United fares.” Consequently, United Airlines had to find a way to Airlines had to find a way to differentiate itself. Food turned differentiate itself. Food turned out to be the solution. out to be the solution.

RIP 2.2 Contd.RIP 2.2 Contd.

Secondary data, like the J. D Power & Secondary data, like the J. D Power & Associates' survey on "current and future Associates' survey on "current and future trends in airline food industry", indicated trends in airline food industry", indicated that that "food service is a major contributor to "food service is a major contributor to customers’ loyalty".customers’ loyalty". This survey also This survey also emphasized the importance of food brands.emphasized the importance of food brands.

The airline's Marketrak survey told United Airlines that The airline's Marketrak survey told United Airlines that "customers wanted more varied and up-to date food.” "customers wanted more varied and up-to date food.”

The following research questions and hypotheses may be The following research questions and hypotheses may be posed.posed.

RQ1RQ1 How important is food for airline customers?How important is food for airline customers?

H1:H1: Food is an important factor for airline travelersFood is an important factor for airline travelers

H2:H2: Travelers value branded foodTravelers value branded food

H3:H3: Travelers prefer larger food portions, but with Travelers prefer larger food portions, but with consistent qualityconsistent quality

H4:H4: Travelers prefer exotic foodTravelers prefer exotic food

RIP 2.2 Contd.RIP 2.2 Contd.

Characteristics which influence the research design Characteristics which influence the research design included the identification of competing airlines (Delta, included the identification of competing airlines (Delta, American, etc.), factors of the choice criteria (already American, etc.), factors of the choice criteria (already identified), measurement of airline travel and loyalty. identified), measurement of airline travel and loyalty.

RIP 2.2 Contd.RIP 2.2 Contd.

This kind of research helped United Airlines to define their This kind of research helped United Airlines to define their marketing research problem, and develop the approach. Focus marketing research problem, and develop the approach. Focus groups and surveys were conducted to check customers' groups and surveys were conducted to check customers' perceptions of food in United Airlines' aircraft. The results perceptions of food in United Airlines' aircraft. The results provided support for all the hypotheses (H1 to H4). United provided support for all the hypotheses (H1 to H4). United Airlines then made a few changes: new "culinary menus," Airlines then made a few changes: new "culinary menus," larger portions of food, new coffee and branded products (e.g., larger portions of food, new coffee and branded products (e.g., Godiva chocolates). This resulted in better service, increasing Godiva chocolates). This resulted in better service, increasing customer satisfaction and fostering loyalty.customer satisfaction and fostering loyalty.

A quiz relating the 150 brands of the cold drinks sold A quiz relating the 150 brands of the cold drinks sold by coca cola in over 200 countries. by coca cola in over 200 countries.

A user group interaction, in which answers on A user group interaction, in which answers on different topics are received from thousands of different topics are received from thousands of customers.customers.

The Chairman’s report. The Chairman’s report. Relevant statistics on sales of various products. Relevant statistics on sales of various products. Balance sheet information.Balance sheet information.

Further, a lot of information about the coca cola Further, a lot of information about the coca cola company can be obtained from the home page, e.g., company can be obtained from the home page, e.g., company overview, production cycle, contacts, company overview, production cycle, contacts, products, statistics, territories, news releases, products, statistics, territories, news releases, chronology, summary of financial information, etc.chronology, summary of financial information, etc.

The home page for the Coca Cola Enterprises The home page for the Coca Cola Enterprises (http://www.cce.com) provides:(http://www.cce.com) provides:

RIP 2.3RIP 2.3