The Marketing Research Process

The Research Purpose A shared understanding between manager and researcher about A shared understanding between manager and researcher about –Problem or opportunity to be studied Exploratory (qualitative) research to identify problems or opportunities Exploratory (qualitative) research to identify problems or opportunities Goal is to move from exploratory to confirmatory (quantitative) research (decision-focused) Goal is to move from exploratory to confirmatory (quantitative) research (decision-focused) –Evaluation of decision alternatives If there are no decision alternatives, no research is necessary If there are no decision alternatives, no research is necessary –Research users External bodies may require high-quality research designs External bodies may require high-quality research designs

Research Purpose: Example Case Example Case: Promoting a New Health Cub in town Example Case: Promoting a New Health Cub in town Research problem: Consumers largely ignore advertising Research problem: Consumers largely ignore advertising Research opportunity: Competitor’s facilities are outdated Research opportunity: Competitor’s facilities are outdated

Market Research Process 1. Agree on Research Purpose 2. Establish Research Objectives

Research Objective A statement, in as precise terminology as possible, of what information is needed to satisfy the research purpose A statement, in as precise terminology as possible, of what information is needed to satisfy the research purpose What do we plan to achieve (know) through this research, that dovetails into the research purpose What do we plan to achieve (know) through this research, that dovetails into the research purpose Case: Promoting a New Health Club in town Case: Promoting a New Health Club in town –Research Objective:

Explicating the Research Objective  Research Question  What specific information do we want under the broad research objective  Hypothesis Development  Can we make a specific statement about a research question which we believe to be accurate  Research Boundaries  Who should be included / excluded from the research

The Research Question (RQ) Specifies information the decision maker needs to achieve the research purpose Specifies information the decision maker needs to achieve the research purpose One Research Objective may lead to many research questions One Research Objective may lead to many research questions RQs used when we do not have sufficient information to state a hypothesis RQs used when we do not have sufficient information to state a hypothesis

Case: New Health Club: Research Questions: Consumers Ignore Advertising

Case: New Health Club: Research Questions: Outdated competitor’s facilities

The Hypothesis A statement related to the research question which you believe to be accurate A statement related to the research question which you believe to be accurate Two types (Null & Research) – research to reveal which of these are correct Two types (Null & Research) – research to reveal which of these are correct Specify variables to be measured with / without value OR variables to be measured and relationship between them Specify variables to be measured with / without value OR variables to be measured and relationship between them

Hypothesis Development Research Question Research Design HypothesisResearch Purpose Theory Management Experience Exploratory Research

Role of the Hypothesis Introduces more detail than the RQ Introduces more detail than the RQ RQ: Why are sales in the Northeast lower than the national average? RQ: Why are sales in the Northeast lower than the national average? H1: The competitor released a new ad campaign H1: The competitor released a new ad campaign H2: The weather was abnormally cold H2: The weather was abnormally cold H3: A distribution problem prevented products from reaching the retailers H3: A distribution problem prevented products from reaching the retailers Introduces variables to be included in the research design (e.g. new ad campaign, temperature, distribution problems) Introduces variables to be included in the research design (e.g. new ad campaign, temperature, distribution problems)

Case: New Health Club: Hypotheses: Consumers ignore advertising?

Case: New Health Club: Hypotheses: Outdated competitor’s facilities

The Marketing Research Process (Research Objective) Research Purpose Research Question Hypothesis Develop a can design for the new Miller beer How effective is each of several different design alternatives? The design that conforms to the advertising message is best. Increasing Builders Square store traffic What is the current image of Builders Square? Builders Square’s image is not as good as its competitor’s image.

The Research Process Pyramid Research Problem Research Objectives Research Questions Hypotheses Questionnaire Items Abstract level Operational level