defining the objectives

8/14/2019 Defining the Objectives

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2007 Prentice Hall 2-1

Ch apter Two

Defining the MarketingResearch Problem and

Developing an Approach


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2-2 2007 Prentice Hall

Ch apter O utl ine1) Overview

2) Importance of Defining a Problem

3) The Process of Defining the Problem and

Developing an Approach

4) Tasks involved in Problem Definition

i. Discussions with Decision Makers

ii. Interviews with Industry Experts

iii. Secondary Data Analysis

iv. Qualitative Research


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Cha pter Ou tl ine5) Environmental Context of the Problem

i. Past Information and Forecasts

ii. Resources and Constraints

iii. Objectivesiv. Buyer Behavior

v. Legal Environment

vi. Economic Environmentvii. Marketing and Technological Skills

6) Management Decision Problem andMarketing Research Problem


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Cha pter Ou tl ine7) Defining the Marketing Research Problem8) Components of an Approach

i. Objective / Theoretical Foundations

ii. Analytical Model

iii. Research Questions

iv. Hypothesis

v. Specification of Information Needed

9) International Marketing Research

10) Ethics in Marketing Research


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Cha pter Ou tl ine11) Summary

12) Key Terms and Concepts


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Cha in Resta ura nt Stu dyOne day I received aphone call from aresearch analyst whointroduced himself as

one of our alumni.He was working for arestaurant chain in townand wanted help

analyzing the data hehad collected whileconducting a marketingresearch study.


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Cha in Resta ura nt Stu dy

When we met, he presented me with a copy ofthe questionnaire and asked how he shouldanalyze the data. My first question to him was,


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Cha in Resta ura nt Stu dyWhen he lookedperplexed, Iexplained that

data analysisis notan independentexercise.

Rather, the goal of data analysis is toPROVIDEINFORMATION RELATED TO THE PROBLEM

COMPONENTS.


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Ch ain Res tau ra nt Stu dyI was surprised to learn that he

did not have a clear understandingof themarketing research problemand that a written definition didnot exist. So before going anyfurther, I had to definedefine themarketing research problem.

Once that was done, I found thatmuch of the data collected was not

relevant to the problem. In thissense, the whole study was a wasteof resources. A new study had to bedesigned and implemented toaddress the problem defined.


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Th e Pr obl em D efi niti on Pr oce ssFig. 2.1

Discu ssio nwithDecision Ma ke r(s)InterviewswithExper ts

Second aryDataAna lysisQua lit ativeResea rch

Manageme nt Decision P roble m

Marke ting Resea rch Probl em

Tasks Involved

Envir onment al Co ntext of t he Pr oblem

Step I: Prob lem Definitio n

Step II: Approa ch to the Pro blem

Object ive/Theor etica lFounda tionsResea rc hQuest ions Hypotheses

Step III: Resea rch De sign

Analyt ica lModel :Ver bal,Graphica l,Mathem atica l

Spe cifica tionofInfor ma tionNeeded


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Discussions with Decision Makers

Interviews with Industry Experts

Secondary Data Analysis

Qualitative Research

Ta sks Invo lve d in P ro ble mDefi nitio n


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Th e Pr obl em Au di tThe problem audit is a comprehensive examination of amarketing problem with the purpose of understanding its

origin and nature.1. The events that led to the decision that action isneeded, or the history of the problem.

2. The alternative courses of action available to the DM.

3. The criteria that will be used to evaluate thealternative courses of action.

4. The potential actions that are likely to be suggestedbased on the research findings.

5. The information that is needed to answer the DM'squestions.

6. The manner in which the DM will use each item ofinformation in making the decision.

7. The corporate culture as it relates to decision making.


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Th e S eve n Cs o f Inte ra ctio nThe interaction between the DM andthe researcher should beCharacterized by the seven Cs:

1. Communication2. Cooperation

3. Confidence

4. Candor

5. Closeness

6. Continuity

7. Creativity


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Envi ro nm enta l C ontext of thePr obl emPAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL

SKILLS

Fig. 2.2


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Man agement D ec isi on Pro bl em V s.Mar keti ng Rese ar ch Probl emMa nagement Decision Probl em Ma rketi ng Res ea rch Prob lem

Should a new product be To determine consumer preferences

introduced? and purchase intentions for the

proposed new product.

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising

campaign.

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales

and profits of various levels

of price changes.


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Pro blem

Marketing Research Problem

Broad Statement

Specific Components

Fig. 2.3


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Co mpo nen ts o f a n App roach Objective/Theoretical Foundations

Analytical Model

Research Questions

Hypotheses

Specification of the Information Needed


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Th e Ro le of The ory i n App li edMar keting Res ea rchRes ear ch Task Role of The or y1. Conce ptua liz ingand id enti fyingkey vari ab le s

Provides a conceptual foundation and understanding of the basic processes

underlying the problem situation. These processes will suggest key dependent

and independent variables.

2. Op erati onal iz ingkey vari ab le s

Theoretical constructs (variables) can suggest independent and dependent

variables naturally occurring in the real world.

3. Se lectin g arese arch d esi gn

Causal or associative relationships suggested by the theory may indicate whether

a causal or descriptive design should be adopted.

4. Se lectin g asample

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. Analyzi ng andinterp reting da ta

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. Integ rati ngfind ing s

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

previous research and integrated with the existing body of knowledge.


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Mo del sAnan al yt ical mo de lis a set of variables andtheir interrelationships designed to represent, inwhole or in part, some real system or process.

Inverbal models,the variables and theirrelationships are stated in prose form. Suchmodels may be mere restatements of the main

tenets of a theory.


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Gra phical Mo delsGrap hica l mo del s are visual. They are used toisolate variables and to suggest directions of

relationships but are not designed to provide

numerical results.

Aw arenes s

Und ers tand ing: Evalu ation

Pre ference

Pa tron age


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Math emat ica l Mo de ls

=+=n

iii xaay 10

aa i,0

Mathematical models explicitly specify therelationships among variables, usually in

equation form.

Where

y = degree of preference

= model parameters to be estimated

statistically


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Deve lopment of Rese ar chQue sti ons a nd H ypot hes esFig. 2.4

Components of the

Research Questions

Hypotheses

Objective/TheoreticalFramework

AnalyticalModel

Marketing Research Problem


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Res ea rch Q ue sti ons an dHypo th eses Resea rch q uest ions (RQs) are refined

statements of the specific components of the

problem.

Ahypoth esis (H) is an unproven statementor proposition about a factor or phenomenonthat is of interest to the researcher. Often, a

hypothesis is a possible answer to the researchquestion.


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Depar tm ent Store Pr oject RQ: Do the customers of Sears exhibit store

loyalty?

H1: Customers who are store-loyal are lessknowledgeable about the shoppingenvironment.

H2: Store-loyal customers are more risk-averse

than are non-loyal customers.


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De par tm ent S to re Pr ojectSpecification of Information Needed

Comp onent 1 The researcher identified the following factors as part of the

choice criteria: quality of merchandise, variety and assortmentof merchandise, returns and adjustment policy, service of

store personnel, prices, convenience of location, layout ofstore, credit and billing policies. The respondents should beasked to rate the importance of each factor as it influencestheir store selection.

Comp onent 2 The researcher identified nine department stores as

competitors to Sears based on discussions with management.The respondents should be asked to evaluate Sears and itsnine competitors on the eight choice criteria factors.


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Comp onent 3 Sixteen different product categories were selected,

including women's dresses, women's sportswear,lingerie and body fashion, junior merchandise, men's

apparel, cosmetics, jewelry, shoes, sheets andtowels, furniture and bedding, and draperies. Therespondents should be asked whether they shop ateach of the ten stores for each of the 16 productcategories.

Comp onent 4 No additional information needs to be obtained from

the respondents.

Depar tm ent Store Pr oject


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Comp onent 5 Information should be obtained on the standard

demographic characteristics and the

psychographic characteristics of store loyalty,credit use, appearance consciousness, andcombining shopping with eating.

Comp onent 6 No additional information needs to be obtained

from the respondents.

De part ment S to re Pr oject


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At Un ited, F ood Is Un iti ngth e Airl ine with Tra ve ler s

United Airlines, as other major airlines, had to deal with

passenger loyalty(management decision problem: howto attract more and more loyal passengers). The broadmarketing research problemwas to identify the factors

that influence loyalty of airline travelers.


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The basic answer is to improve service. Exploratoryresearch, theoretical framework, and empirical evidencerevealed that the consumers choice of an airline isinfluenced by:safety, price of the ticket, frequent-flyerprogram, convenience of scheduling, and brand name.

At U ni ted, Food I s U nit ing theAirli ne wit h Tra vel ers


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A graphical model stipulated thatconsumers evaluate competing airlinesbased on factors of the choice criteria to

select a preferred airline. The problemwas that major airlines were quitesimilar on these factors. Indeed,"airlines offer the same schedules, thesame service, and the same fares.Consequently, United Airlines had to finda way to differentiate itself. Food turnedout to be the solution.

,Airl inewit h Tra vel ers


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Secondary data, like the J. D Power & Associates'survey on "current and future trends in the airlinefood industry," indicated that"food service is a majorcontributor to customers loyalty." This survey alsoemphasized the importance of food brands.

At Uni ted, Food I s U nit ing theAir li ne wit h Tra ve lers


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

The following research questions and hypotheses may beposed.

RQ1 How important is food for airline customers?

H1: Food is an important factor for airline travelers.

H2: Travelers value branded food.H3: Travelers prefer larger food portions, but with

consistent quality.

H4: Travelers prefer exotic food.

Airl inewith Tra vel ers


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Characteristics that influence the research designincluded the identification of competing airlines (Delta,American, etc.), factors of the choice criteria (alreadyidentified), measurement of airline travel, and loyalty.

with Tra vel ers


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This kind of research helped United Airlines define their marketing

research problem and develop the approach. Focus groups andsurveys were conducted to check customers' perceptions of food inUnited Airlines' aircraft. The results provided support for all thehypotheses (H1 to H4). United Airlines then made a few changes:new "culinary menus," larger portions of food, new coffee, and

branded products (e.g., Godiva chocolates). This resulted in betterservice, increasing customer satisfaction and fostering loyalty.

wit h Tra vel ers


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Internat iona l Ma rk et ing Res earc hExam ining the im pac t of the Self -Referenc e Crit erio n (SRC )1. Define the marketing research problem in

terms of domestic environmental and culturalfactors.

2. Define the marketing research problem in terms offoreign environmental and cultural factors. Make nojudgments.

3. Isolate the self-reference criterion (SRC) influence onthe problem and examine it carefully to see how itcomplicates the problem.

4. Redefine the problem without the SRC influence and

address it for the foreign market situation

defining the objectives

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