Introduction to Marketing Research

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Introduction toMarketing Research
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Marketing Research Defined

• The systematic and objective process of
  generating information for aid in making
  marketing decisions

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Marketing Research Types
Basic Research (Problem identification
research) Applied research ( Problem solving
research)
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Basic Research

• Attempts to expand the limits of knowledge
• This research will help to identify the problems
  exists or likely to arise in the future.

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Basic Research Example

• Checking whether students spent time in SNS
  affects their academic performance?

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Applied Research

• Conducted when a decision must be made about a
  specific real-life problem

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Applied Research Example

• Should McDonalds add Italian pasta dinners to its
  menu?
• Marketing research told McDonalds it should not
• Should Procter Gamble add a high-priced home
  teeth bleaching kit to its product line?
• Research showed Crest Whitestrips would sell well
  at a retail price of 44

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Using Marketing Research

• We can use Marketing Research to
• Identify Evaluate Opportunities
• Analyze Market Segments
• Select Target Markets
• Plan Implement Marketing Mixes
• Analyze Marketing Performance
• Performance Monitoring Research

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A Classification of Marketing Research
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Problem-Solving Research
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Problem-Solving Research
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Problem-Solving Research
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The Marketing Research Process

• Define the Problem
• Develop an Approach to the Problem
• Type of Study? Exploratory, Descriptive, Causal?
• Mgmt Research Questions, Hypotheses
• Formulate a Research Design
• Methodology
• Questionnaire Design
• Fieldwork
• Prepare Analyze the Data
• Prepare Present the Report

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Step 1 Define the problem

• Management decision problem
• Marketing research problem

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Management Decision Problem Vs. Marketing
Research Problem

• Management Decision Problem Marketing Research
  Problem
•  
• Should a new product be
• introduced? To determine consumer
  preferences 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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Proper Definition of the Research Problem
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Department Store Project

• Problem Definition
• In the department store project, the marketing
  research problem is to determine the relative
  strengths and weaknesses of Tesco Lotus,
  vis-à-vis other major competitors, with respect
  to factors that influence store patronage.
  Specifically, research should provide information
  on the following questions.

1. What criteria do households use when selecting
department stores?2. How do households evaluate
Tesco Lotus and competing stores in terms of the
choice criteria identified in question
1?3. Which stores are patronized when shopping
for specific product categories?4. What is the
market share of Tesco Lotus and its competitors
for specific product categories?5. What is the
demographic and psychological profile of the
customers of Tesco Lotus ? Does it differ from
the profile of customers of competing
stores?6. Can store patronage and preference be
explained in terms of store evaluations
and customer characteristics?
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Step 2 Develop an approach to the problem

• Objective/Theoretical Foundations
• Analytical Model
• Research Questions
• Hypotheses
• Specification of the Information Needed

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Role of Theoretical foundations
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Ex. Kanos Model of satisfaction

• One of a popular model used for measuring and
  analyzing customer satisfaction

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Technology acceptance Model (TAM)

TAMone of popular information systems theory
that models how users come to accept and use a
technology the model suggests that the
acceptability of an info system is determined by
two main factors (i) perceived usefulness and
(ii) perceived ease of use
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Theory of reasoned action (TRA)

• Persons behavior (behavioral intention) depends
  on the persons attitude about the behavior and
  subjective norm (the persons perception that
  most people who are important to him/her think
  s/he should or should not perform the behavior in
  question)
• 3 components of TRA (i) behavioral intention
  (BI) (ii) attitude (A) and (iii) subjective
  norm (SN) BI A SN

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Models

• An analytical model is a set of variables and
  their interrelationships designed to represent,
  in whole or in part, some real system or process.
  
• In verbal models, the variables and their
  relationships are stated in prose form. Such
  models may be mere restatements of the main
  tenets of a theory.

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Graphical Models

• Graphical models are visual. They are used to
• isolate variables and to suggest directions of
• relationships but are not designed to provide
• numerical results.

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Mathematical Models

• Mathematical models explicitly specify the
• relationships among variables, usually in
• equation form.
• Where
• y degree of preference
• model parameters to be estimated
• statistically

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Step 3 Development of Research Questions and
Hypotheses
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Research Questions and Hypotheses

• Research questions (RQs) are refined statements
  of the specific components of the problem.
• A hypothesis (H) is an unproven statement or
  proposition about a factor or phenomenon that is
  of interest to the researcher. Often, a
  hypothesis is a possible answer to the research
  question.

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RQ Hypothesis Example

• RQ 1 What are the characteristics of online
  gamers?
• Null hypothesis ( Ho)
• There is no difference between males and females
  who play online
• Alternate Hypothesis (Ha)
• Males are more into online games than females.

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Research Proposal

• A specific document that provides an overview of
  the proposed research and its methodology.
• Normally includes the description of first 3
  steps of a research such as
• Purpose of the research
• Type of study
• Definition of target population and sample size
• Data collection methods
• Specific research instruments
• Potential benefits of the study
• Proposed cost of the total research project

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How to increase the customer loyalty?
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At United, Food Is Uniting the Airline with
Travelers
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At United, Food Is Uniting the Airline with
Travelers
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At United, Food Is Uniting the Airline with
Travelers
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At United, Food Is Uniting the Airline with
Travelers
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At United, Food Is Uniting the Airline with
Travelers
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 be posed. 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.
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At United, Food Is Uniting the Airline with
Travelers
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Determining When to Conduct Marketing Research

• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs

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Determining When to Conduct Marketing Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits vs. Costs
Is sufficient time available?
Information already on hand inadequate?
Is the decision of strategic or tactical
importance?
Does the information value exceed the research
cost?
Conduct Marketing Research
Yes
Yes
Yes
Yes
No
No
No
No
Do Not Conduct Marketing Research
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Potential Value of a Marketing Research Effort
Should Exceed Its Estimated Costs

• Research expenditures
• Delay of marketing decision and possible
  disclosure of information to rivals
• Possible erroneous research results

• Decreased uncertainty
• Increased likelihood of correct decision
• Improved marketing performance and resulting
  higher profits

Costs
Value
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ALWAYS Remember

• Marketing Research is a tool.
• It assists marketing managers in their decision
  making.
• IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!!