Chapter Two Chapter Two

Relationship to Marketing Figure 2.1 Relationship of Problem Definition and Approach to the Previous Chapter and the Marketing Research Process Figure 2.1 Relationship to the Previous Chapter and The Marketing Research Process Focus of This Chapter Relationship to Previous Chapter Relationship to Marketing Research Process Problem Definition Defining the Management Decision Problem Defining the Marketing Research Problem Developing an Approach to the Problem The Nature of Marketing Research (Chapter 1) Definition of Marketing Research (Chapter 1) The Marketing Research Process (Chapter 1) Approach to Problem Research Design Field Work Data Preparation and Analysis Report Preparation and Presentation

Figure 2.2 Defining the Marketing Research Process and Developing An Approach: An Overview Figure 2.2 Defining the Marketing Research Process and Developing and Approach: An Overview Opening Vignette Importance of Defining the Problem The Process of Defining the Problem and Developing an Approach Fig 2.3 Internet Applications Focus on Elrick & Lavidge Tasks Involved Discussions with DM Interviews with Experts Secondary Data Analysis Qualitative Research Problem Audit Fig 2.5 Environmental Context of the Problem Fig 2.4 Fig 2.6 Application to Contemporary Issues TQM International Technology Ethics

Internet Applications Figure 2.2 Defining the Marketing Research Process and Developing An Approach: An Overview (continued) Figure 2.2 Defining the Marketing Research Process and Developing and Approach: An Overview Continued Opening Vignette Management Decision Problem Table 2.1 Definition of the Marketing Research Problem Figs 2.7-2.8 Internet Applications Focus on Elrick & Lavidge Components of the Approach Fig 2.9 Analytical Framework and Models Specification of Information Needed Research Questions and Hypothesis Application to Contemporary Issues TQM International Technology Ethics

Figure 2.3 The Problem Definition and Approach Development Process Tasks Involved Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Qualitative Research Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Step 2: Approach to the Problem Analytical Framework and Models Research Questions and Hypotheses Specification of Information Needed Step 3: Research Design

Figure 2.4 Conducting a Problem Audit History of the Problem Alternative Courses of Action Available to DM Criteria for Evaluating Alternative Courses Nature of Potential Actions Based on Research Information Needed to Answer the DM’s Questions How Will Each Item of Information Be Used by the DM? Corporate Decision-Making Culture

Figure 2.5 Discussion Between the Researcher and the DM Focus of the DM Focus of the Researcher Symptoms Loss of Market Share Underlying Causes Superior Promotion by Competition Inadequate Distribution of Company’s Products Lower Product Quality Price Undercutting by a Major Competitor Discussion

Past Information and Forecasts Figure 2.6 Factors to be Considered in the Environment Context of the Problem Past Information and Forecasts Figure 2.6 Factors to be Considered in the Environment Context of the Problem Resources and Constraints Objectives of the Decision Maker Buyer Behavior Legal Environment Economic Environment Marketing and Technological Skills Figure 2.4 Conducting a Problem Audit

Figure 2.7 Errors in Defining the Market Research Problem Common Errors 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.

Figure 2.8 Proper Definition of the Marketing Research Problem Broad Statement SPECIFIC COMPONENTS Component 1 Component 2 Component 3

Figure 2.9 Development of Research Questio1 ns and Hypothesis Figure 2.9 Development of Research Questions & Hypothesis Components of the Marketing Research Problem Figure 2.9 Development of Research Questio1 ns and Hypothesis Analytical Framework and Models Research Questions Hypotheses

Research Questions Vs Hypothesis RQ: Is there an overlap between the features sought by station wagon buyer and buyers of SUV’s. Possible Hypothesis: H1: The buyers of station wagon rate certain features of SUV’s as important. H2: The buyers of SUV’s rate certain features of station wagons as important. H3: The buyers of SUV’s and station wagon rate certain features as similar to each other.

Table 2.1 Management Decision Problem Versus the Marketing Research Problem