Chapter Two

The Problem Definition Process 1. Recognize the problem or opportunity 2. Find out why the information is being sought 3. Understand the decision making environment 4. Use the symptoms to help clarify the problem Can the problem become opportunity? Any suspect motives? Examine cultural & bureaucracy issues Determine cause & effect relationships Key Terms & Definitions

The Problem Definition Process 5. Translate management problem to marketing research problem 6. Determine whether the information already exists 7. Determine whether the question can be answered 8. State the research objectives Management support is key Have you researched other research? Are the objectives clear and realistic? Include timetable and responsible party The professor might want to emphasize this process because many times the students do not put enough thought into formulating research objectives. Key Terms & Definitions

The Decision-Making Environment Exploratory Studies Defined Preliminary research conducted to increase understanding of a concept, to clarify the exact nature of the problem to be solved, or to identify important variables to be studied. Define terms Clarify problems Develop theories Establish priorities Gain general information Examples of actual products/brands and situations help when explaining this type of research. Purposes Key Terms & Definitions

Research Hypothesis vs. Research Question A Research Hypothesis: A conjectural statement about a relationship between two or more variables that can be tested with empirical data. A claim, or argument about your theory of what is causing “X” that you will research to prove or disprove: “Sales are declining because of competition.” A Research Question: Questioning what the researcher wants to learn without making a claim about what might be causing the issue at hand. “We don’t know why sales are declining, so let’s research the problem to find out.” Key Terms & Definitions

The Marketing Research Process An Overview 2-6 Key Terms & Definitions

The Marketing Research Process 1. Problem definition and statement of objectives 2. Creation of the research design 3. Choice of research method 4. Sampling section / plan Does it involve hypothesis or just a statement? Exploratory, descriptive, casual, planning, implementing, controlling Primary vs. secondary – survey, focus groups, experiments, etc. Probability vs. non-probability, sample size Key Terms & Definitions

The Marketing Research Process, Continued 5. Data collection 6. Data analysis 7. Write and present the research report 8. Follow-up Personal, telephone, mail, Internet, etc. Level & scope must be determined early Determine format, font, layout, PPTs, etc. Were recommendations followed? Is more research needed? Key Terms & Definitions

1. From a Management Problem to a Marketing Research Problem Making the Transition Management Decision Problem A statement specifying the type of managerial action required to solve the problem. A goal statement defining the specific information needed to solve the marketing research problem. Marketing Research Problem Marketing Research Problem Marketing Research Objective A statement specifying the type of information needed by the decision maker to help solve the management decision problem and how that information can be obtained efficiently and effectively. Key Terms & Definitions

2. Marketing Research Design “The plan to be followed to answer the marketing research objectives.” It is the detailed blueprint used to guide the research study towards its objectives including what and how you will conduct the research study. Key Terms & Definitions

2a. Descriptive Research Studies Marketing Research Design Continued Descriptive Studies Defined Descriptive research studies answer the who, what, where, when, and how questions. It is used when one wants to gain a better understanding of the specifics or details the research issue. Confirm theories Brand loyalty measure Describes population Build customer profile Gain specific information Secondary data Cross-sectional surveys Longitudinal surveys Statistical data analysis Actual examples from the real world of marketing research help when explaining and illustrating these types of studies. Purpose Key Methods Key Terms & Definitions

Descriptive Research Studies Marketing Research Design Continued Cross-Sectional Surveys: One-time snapshots of population Use the same survey & different sample Longitudinal Surveys: Identify market trends Use the same survey & same sample Use tracking panels & groups Key Terms & Definitions

2b. Causal Research Studies Marketing Research Design Continued Causal Studies Defined Research studies that examine whether the value of one variable causes or determines the value of another variable. Surveys Experiments Time sequence Secondary data Systematic elimination Confirm theories Identify cause & effect Relationships among variables Purpose Test markets and simulated test markets are good examples to explain causal studies. Key Methods Key Terms & Definitions

Marketing Research Design Continued Causal Research Marketing Research Design Continued Dependent Variable: A symbol or concept expected to be explained or influenced by the independent variable. One affects the dependent variable by manipulating the independent variable deemed to be associated with the dependent variable. Independent Variable: A symbol or concept over which the research has some control and that is hypothesized to cause or influence the dependent variable. Key Terms & Definitions

Marketing Research Design Continued Causal Research Marketing Research Design Continued Key Requirements to Demonstrate Causation Concomitant Variation: The degree to which a presumed cause and a presumed effect occur or vary together. Temporal Sequence: An appropriate causal order of events. Spurious Association: A relationship between a presumed cause and a presumed effect that occurs as a result of an unexamined variable or set of variables. Examples of mistakes made in marketing research projects help explain the difficulties of doing causal research projects. Key Terms & Definitions

3. Choosing a Research Method Observation Research: Typically descriptive research that monitors respondents’ actions without direct interaction. Experiments: Research to measure causality, in which the researcher changes one or more independent variables and observes the effect of the changes on the dependent. Survey Research: Research in which surveys (personal, telephone, mail or Internet) are used to obtain facts, opinions, and attitudes from respondents. The professor might point out that each of these methods has time and money constraints. The client’s budget (time, money, and personnel) will impact the choice of methods, also. Other Qualitative Research: Research such as focus groups, secondary data analyses, and case studies. Key Terms & Definitions

Two Basic Types and Size 4. Sampling Procedure Two Basic Types and Size Probability Sampling: A subset of the population that can be assumed to be a representative cross section of the population because every element in the population has a known non-zero chance of being selected. Nonprobability Sampling: A subset of the population in which the chances of selection for the various elements in the population are not precisely known. The client’s budget (time and money) may have a significant impact on the sample procedure decisions. The professor can give examples of this for each sample type to illustrate the impact. Sample Size: How many are needed to interview or observe? Key Terms & Definitions

Key Terms & Definitions 5. Collecting the Data Survey Interviewer In-person Telephone No interviewer Mail Internet Observation Machine Experiments Key Terms & Definitions

Key Terms & Definitions 6. Analysis of the Data Data Analysis: Use a variety of quantitative and qualitative analytical techniques. Interpret and draw conclusions from the mass of collected data. Key Terms & Definitions

7. Writing and Presenting the Report Judging the quality of a report. Using the Internet to disseminate reports. Prepare a written and oral presentation to include the research objectives, methodology, key findings, limitations, acknowledgements, conclusion, and recommendations. The professor might point out that the oral report may be more important than the written because it can motivate the clients to read the report or not. Also, stress to the students that they need to prepare, prepare, and prepare some more for the oral report. Key Terms & Definitions

Key Terms & Definitions 8. Follow Up Will the findings be used? Why will they be used or why not? It is best to minimize any conflict between the marketing department and other departments in the organization. This stage is also used for the marketing research firm to identify areas in which they can improve the research techniques they used for the specific project. The professor might want to give examples of follow-up techniques. Key Terms & Definitions

Key Terms & Definitions The Research Request An internal document used by large organizations that describes a potential research project, its benefits to the organization, and estimated costs. It must be formally approved before a research project can begin. It Includes: Action – Decision-makers determine what action will result from the research Origin - Clarify/state the origin of the problem that necessitated the research Information – Decision-maker should detail questions to be answered Use - How each piece of the research will be used should be detailed Targeting - Determine which groups will be targeted for the research Logistics - Determine how the research will be done--time & budget are key Comments - Additional information that is relevant to the project Key Terms & Definitions

The Request for Proposal (RFP) A solicitation sent to marketing research suppliers inviting them to submit a formal proposal including a bid. It Includes: The background of the research problem or issue The goals and objectives of the hiring firm The methodology the firm wants you to follow--sometimes with your input The scope and timetable of the work to be performed The total project cost Instructions like the report format, whether they want you to present it, etc. Key Terms & Definitions

Marketing Research Proposal Includes the following: Title Page Statement of the Research Objectives Study Design Areas of Questioning Data Analysis Personnel Involved Specifications and Assumptions Services Cost Timing An example of an actual marketing research proposal from a real marketing research supplier would help the class to understand the importance of this document and its implications for the research process. Key Terms & Definitions

The Benefits of a Research Proposal Key Terms & Definitions 2-25

Key Terms & Definitions Casual Studies Dependent Variable Independent Variable Temporal Sequence Concomitant Variation Spurious Association Survey Research Observation Research Experiments Probability Sample Nonprobability Sample Research Request Request for Proposal Research Proposal Opportunity Identification Situation Analysis Exploratory Research Experience Surveys Case Analysis Marketing Research Problem Marketing Research Objective Management Decision Problem Hypothesis The Marketing Research Process Research Design Descriptive Studies Cross-Section vs. Longitudinal Links and button are active when in “Slide Show Mode” Key Terms & Definitions 2-26