Essentials of Marketing Research

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Essentials of Marketing Research

• Chapter 3
• The Marketing Research Process

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UNCERTAINTY INFLUENCES THE TYPE OF RESEARCH
CAUSAL OR DESCRIPTIVE
EXPLORATORY
COMPLETELY CERTAIN
ABSOLUTE AMBIGUITY
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DEGREE OF PROBLEM DEFINITION
Exploratory Research Descriptive
Research Causal Research (Unaware of
Problem) (Aware of Problem) (Problem Clearly
Defined) Our sales are declining and What
kind of people are buying Will buyers purchase
more of we dont know why. our product? Who
buys our our products in a new package? competi
tors product? Would people be interested
Which of two advertising in our new
product idea? What features do buyers
prefer campaigns is more effective? in our
product?
possible situation
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EXPLORATORY RESEARCH

• INITIAL RESEARCH CONDUCTED TO CLARIFY AND DEFINE
  THE NATURE OF A PROBLEM
• DOES NOT PROVIDE CONCLUSIVE EVIDENCE
• SUBSEQUENT RESEARCH EXPECTED

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DESCRIPTIVE RESEARCH

• DESCRIBES CHARACTERISTICS OF A POPULATION OR
  PHENOMENON
• SOME UNDERSTANDING OF THE NATURE OF THE PROBLEM

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Descriptive Research Example

• Weight Watchers average customer
• Woman about 40 years old
• Household income of about 50,000
• At least some college education
• Trying to juggle children and a job

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Descriptive Research Example

• Mens fragrance market
• 1/3 size of womens fragrance market
• But growing at a faster pace
• Women buy 80 of mens fragrances

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CAUSAL RESEARCH

• CONDUCTED TO IDENTIFY CAUSE AND EFFECT
  RELATIONSHIPS

A causal relationship is impossible to prove.
Evidence of causality 1. The appropriate
causal order of events 2. Concomitant
variation--two phenomena vary together 3. An
absence of alternative plausible explanations
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STAGES IN THE RESEARCH PROCESS
Problem Discovery and Definition
Discovery and Definition
and so on
Research Design
Conclusions and Report
Sampling
Data Processing and Analysis
Data Gathering
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Selection of sampling technique
Problem discovery
Problem Discovery and Definition
Sampling
Selection of exploratory research technique
Probability
Nonprobability
Secondary (historical) data
Experience survey
Pilot study
Case study
Collection of data (fieldwork)
Data Gathering
Data Processing and Analysis
Editing and coding data
Problem definition (statement of research
objectives)
Data processing
Selection of basic research method
Research Design
Conclusions and Report
Interpretation of findings
Experiment
Survey
Observation
Secondary Data Study
Report
Laboratory
Field
Interview
Questionnaire
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PROBLEM DISCOVERY AND DEFINITION

• FIRST STEP
• PROBLEM, OPPORTUNITY, OR MONITOR OPERATIONS
• DISCOVERY BEFORE DEFINITION
• PROBLEM MEANS MANAGEMENT PROBLEM

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The formulation of the problem is often more
essential than its solution

• Albert Einstein

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Defining the Problem Results in Clear Cut
Research Objectives
Symptom Detection
Exploratory Research (Optional)
Analysis of the Situation
Problem Definition
Statement of Research Objectives
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The Process of Problem Definition
Understand the background of the problem.
Ascertain the decision makers objectives.
Isolate and identify the problems, not
the symptoms.
Determine the unit of analysis
Determine the relevant variables
State the research questions and research objectiv
es.
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The Iceberg Principle
Problem Definition Organization Symptom
s Based on Symptom True Problem
Twenty-year-old neighborhood swimming association
in a major city.
Membership has been declining for years. New
water park with wave pool and water slides moved
into town a few years ago.
Neighborhood residents prefer the expensive water
park and have negative image of swimming pool.
Demographic changes Children in this 20-year-old
neighborhood have grown up. Older residents no
longer swim anywhere.
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Determine the Unit of Analysis

• Individuals, households, organizations, etc.
• In many studies, the family rather than the
  individual is the appropriate unit of analysis.

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Determine the Relevant Variable

• Anything that may assume different numerical or
  categorical values
• Examples
• Demographics Race, Gender, Age, Income,
  Education levels, etc.
• Psychographics Introvert vs. Extrovert,
  Risk-Taking, Personality, etc.
• Other Sales, Advertising, Price, Economic
  Measures, etc.

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Types of Variables
Categorical Continuous Dependent Independent
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HYPOTHESIS

• AN UNPROVEN PROPOSITION
• A POSSIBLE SOLUTION TO A PROBLEM
• GUESS

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If you do not know where you are going,any road
will take you there.
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EXPLORATORY RESEARCH TECHNIQUES

• SECONDARY DATA (HISTORICAL DATA)
• PILOT STUDY
• EXPERIENCE SURVEY
• CASE STUDIES

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Specific objective - 1
Specific objective - 2
Statement of marketing problem
Broad research objectives
Research design
Results
Specific objective - 3
Exploratory research (optional)
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RESEARCH DESIGN

• MASTER PLAN
• FRAMEWORK FOR ACTION
• SPECIFIES METHODS AND PROCEDURES

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BASIC RESEARCH METHODS

• SURVEYS
• EXPERIMENTS
• SECONDARY DATA
• FOCUS GROUPS
• OBSERVATION

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SAMPLING

• SUBSET OF POPULATION
• WHO IS TO BE SAMPLED
• HOW LARGE A SAMPLE
• HOW WILL SAMPLE UNITS BE SELECTED

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RESEARCH PROPOSAL

• A WRITTEN STATEMENT OF THE RESEARCH DESIGN THAT
  INCLUDES A STATEMENT EXPLAINING THE PURPOSE OF
  THE STUDY.
• DETAILED OUTLINE OF PROCEDURES ASSOCIATED WITH A
  PARTICULAR METHODOLOGY