Problem Definition and Marketing Research Design

By Rama Krishna Kompella

Learning Objectives• To understand what research design is and why it is

significant• To learn how exploratory research helps the

researcher gain a feel for the problem• To know the fundamental questions addressed by

descriptive research and different types of descriptive research

• To explain what is meant by casual research and to describe four types of experimental research designs

Figure 2.6 Factors to be Considered in the Environment Context of the Problem

Past Information and Forecasts

Resources and Constraints

Objectives of the Decision Maker

Buyer Behavior

Legal Environment

Economic Environment

Marketing and Technological SkillsFigure 2.4 Conducting a Problem Audit

Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem Should a new product be To determine consumer introduced? preferences and purchase

intentions for the proposed new product.

Should the advertising To determine the effectivenesscampaign be changed? of the current advertising

campaign. Should the price of the To determine the price elasticitybrand be increased? of demand and the impact on

sales and profits of various levels of price changes.

Common Errors

Errors in Defining the Market Research Problem

Problem Definition is too Broad

• Does Not Provide Guidelines for Subsequent Steps

• e.g., Improving the Company’s Image

Problem Definition is too Narrow

• May Miss Some Important Components of the Problem

• e.g. Changing Prices in Response to a Competitor’s Price Change.

Proper Definition of the Marketing Research Problem

Marketing Research Problem

BroadStatement

SPECIFIC COMPONENTS

Component 1 Component 2 Component 3

Research Design

• Marketing research methods vary from focus groups to stimulated test markets to large, nationally representative sample surveys

• Research design is a set of advance decisions that make up the master plan specifying the methods and procedures for collecting and analysing data

• Each research problem is unique. However, There are similarities among research problems to allow us to use the best plan to solve the problem

• There are basic research designs that can be successfully matched to a given research problem.

Research design is a set of advance decisions that make up the master plan specifying the methods and

procedures for collecting and analyzing the needed information.

Three Types of Research Design

• Research designs are classified into three categories: exploratory, descriptive, and causal. refer: Table 1.0

• Choice depends largely on objectives of the research

• Research does not necessarily follow the order of exploratory, descriptive and casual designs. Caution about thinking about research in a step-by-step process.

Three Types of Research DesignResearch Objective Appropriate design

To gain background information, to define terms

EXPLORATORY

To clarify problems and hypotheses, to establish Research priorities.

To describe and measure marketing phenomena at a point in time

DESCRIPTIVE

To determine causality, to make “if-then” statements

CAUSAL

Table 1.0

Exploratory Research

• Exploratory research is unstructured, informal research undertaken to gain background information about the general nature of the research problem.

• Uses of exploratory research include:1. Gain background information.2. Define terms.3. Clarify problems and hypotheses.4. Establish research priorities.

Methods of Conducting Exploratory Research

• Secondary data analysis. Secondary data refers to the process of searching for and interpreting existing info relevant to the research problem (e.g., census data, articles in journals, newspapers, etc.).

• Experience (Expert) surveys. Refers to gathering info from those thought to be knowledgeable on the issues relevant to the problem (i.e., ask experts).

• Case Analysis. Uses past situations that are similar to the present research problem.

• Focus groups. Involves small (8-12) groups of people brought together and guided by a moderator through unstructured, spontaneous discussion.

Specifying Constructs & Operational Definitions

• Construct: A specific type of concept that exists at a higher level of abstraction.

• Constitutive Definition: A statement of the meaning of the central idea or concept under study, establishing its boundaries; also known as a theoretical, or conceptual, definition (Note: Not in the book, but very important for essay exam and formal research report).

• Operational Definition: A statement of precisely which observable characteristics will be measured and the process for assigning a value to the concept.

What are “Things” Marketing Managers Typically Measure?

• Customer Satisfaction/Dissatisfaction• Loyalty• Attitudes Toward Product, Company• Knowledge of product, service, features• Importance of Attributes• Intentions to Purchase• Demographics

How are these Constructs Developed?

Satisfaction

• What would a definition of Satisfaction be, if you were to look it up in the dictionary

• Now, how might we “measure” Satisfaction, i.e. the extent to which a person is satisfied?

Satisfaction1.

• The fulfillment or gratification of a desire, need, or appetite. • Pleasure or contentment derived from such gratification. • A source or means of gratification.

2. A qualitative measure of performance as defined by customers, which meet their basic requirements and standards.

3. • The opportunity to avenge a wrong; vindication.• Compensation for injury or loss; reparation.

4. Assurance beyond doubt or question; complete conviction.

Satisfaction – Operational Def’n

• How do we measure satisfaction for our study?

Next, the Researcher Needs to Identify the Relationships that

connects various constructs

• A relationship is a meaningful link believed to exist between two or more constructs.

Decide on a Model

• A model connects constructs in ordered relationships.

ConstructA

ConstructB

Construct C

ConstructD

Decide on a Model

• A model connects constructs in ordered relationships.

Satisfaction

Finally! Specifying Research Objectives/Hypotheses

• Each research objective/Ho must be precise, detailed, clear, and operational (i.e., measurable).

• Avoid the nice-to-know syndrome!• Research objectives are best stated as research hypotheses. A hypothesis is a

conjectural statement about a relationship between two or more variables that can be tested with empirical data.

• ISU Green Team example. How might we express the research question(s):(1) (2) (3)

• Statement of Hypotheses based upon these research questions. (1)

• Presumes we must now develop a constitutive definition and operational definition.

Descriptive Research

• Descriptive research provides answers to the questions of who, what, when, where, and how.

• Note that we cannot conclusively ascertain answers to WHY using descriptive studies.

• Descriptive studies can be of two varieties (i.e., classifications):– Cross-sectional– Longitudinal

Example of Descriptive Research• Study Measuring Various Attributes of Salespeople, a

Training Program, or a Retailing Situation

• Measuring how salespeople or customers behaved, as well as what happened to sales volume

• Learn about characteristics of people shopping at a particular store

• Satisfaction Study taken at multiple times throughout the year

Types of Descriptive Research Frameworks

• One Shot Framework (After Only)

• After Only With Random Assignment

• Pretest-Posttest Framework

Causal Research• Causality may be thought of as understanding a

phenomenon in terms of conditional statements of the form, “If X, then Y.” Conditions for Causality are:

• Concomitant Variation: For variable X to cause a change in variable Y, the two must be highly related in that changes in Y are always associated with changes in X.

• Temporal Precedence: Refers to the time sequence of occurrence. For variable X to cause Y, it must always occur before or precede Y.

• Absence of Competing Explanations: For X to cause Y, other possible causes must be ruled out.

• Types of Competing Explanation– Chance

– Extraneous Variables

Terminology Associated With Causal Research

– Variable: Any event which can take on more than one condition. Traditionally symbolized by a Roman or Greek Letter

– Independent Variable: A variable whose behavior explains or influences the behavior of another variable. The letter X is conventionally used to symbolize an independent variable (subscripted if more than one independent variable is used).

– Dependent Variable: A variable whose behavior is being influenced (i.e. its behavior is "dependent" upon the "independent" variable(s)). Conventionally symbolized by the letter Y (also subscripted if more than one independent variable is used).

Methods for Controlling Extraneous (or Confounding) Variables

• Randomization: The random assignment of subjects to treatment conditions to ensure equal representation of subject characteristics.

• Physical Control: Holding constant the value or level of extraneous variables throughout the course of an experiment. (e.g., matching participants on personal demographic characteristics).

• Design Control: Using the experimental design itself to control extraneous causal factors.

• Statistical Control: Adjusting for the effects of confounded variables by statistically adjusting the value of the DV for each treatment condition.

Causal Experimental Designs

• Pretest-posttest with Control

• Posttest only with Control

• Solomon Four Group

• Factorial Design

Q & As