The Marketing Research Process and Proposals Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2-2 Learning Objectives  Describe the major environmental factors influencing marketing research  Discuss the research process and explain the various steps  Distinguish between exploratory, descriptive, and causal research designs  Identify and explain the major components of a research proposal

2-3 Carolina Consulting Company

2-4 Information Research Process  Information research process is the systematic task steps in the gathering, analyzing, interpreting, and transforming of data structures and results into decision- making information

2-5 Research Is Not Always Necessary  Information already available  Insufficient time frames  Inadequate resources  Costs outweigh value

2-6 Exhibit 2.2 Phases of the Information Research Process Phase I Determine the Research Problem Phase I Determine the Research Problem Phase II Select Appropriate Research Design Phase II Select Appropriate Research Design Phase III Execute the Research Design Phase III Execute the Research Design Phase IV Communicate the Research Results Phase IV Communicate the Research Results

2-7 Scientific Method Logical Objective Systematic Reliable Valid

2-8 Step 1. Identify and clarify information needs Step 2. Define the research problem and questions Step 2. Define the research problem and questions Step 3. Specify research objectives and confirm information value Step 3. Specify research objectives and confirm information value Phase I. Determine the Research Problem

2-9 Step 1: Identify and Clarify Information Needs  Purpose of the research request  Understand the complete problem situation  Identify and separate out symptoms  Determine the unit of analysis  Determine the relevant variables

2-10 Exhibit 2.5 The Iceberg Principle

2-11 Step 2: Define the Research Problem and Questions Initial research question Redefined research questions

2-12 Step 3: Specify Research Objectives and Confirm Information Value  Can the information be collected at all?  Can the information tell the decision maker something not already known?  Will the information provide significant insights?  What benefits will be delivered by this information?

2-13 Step 4. Determine the research design and data sources Step 4. Determine the research design and data sources Step 5. Develop the sampling design and sample size Step 5. Develop the sampling design and sample size Step 6. Examine measurement issues and scales Step 6. Examine measurement issues and scales Phase II. Select the Research Design Step 7. Design and pretest the questionnaire

2-14 CausalResearchCausalResearch Step 4: Determine the Research Design DescriptiveResearchExploratoryResearch

2-15 Step 5: Develop the Sampling Design and Sample Size  Identify the relevant defined target population by either:  conducting a census of all members, or  selecting a subgroup  Develop a probability or non-probability sampling plan  Determine how many people need to be investigated

2-16 Step 6. Examine Measurement Issues and Scales  Level of information needed  Reliability and validity of information  Development of reliable and valid scale measurement  Dimensions underlining critical factors  Single or multi-item measures used to collect data

2-17 Step 7: Design and Pretest Questionnaire Questionnaires can be pretested in a usability lab like this one

2-18 Step 8. Collect and prepare data Step 9. Analyze data Step 10. Interpret data to create knowledge Phase III. Execute the Research Design

2-19 Phase IV. Communicate the Research Results Step 11. Prepare and present final report Executive Summary Introduction Problem Definition & Objectives Methodology Results, Findings, Limitations of Study

2-20 Research Proposal Outline  Purpose of proposed research project  Type of study  Definition of target population and sample size  Sample design and data collection method  Specific research instruments  Potential managerial benefits  Proposed cost for total project  Profile of research company  Optional dummy tables of projected results

2-21 Marketing Research in Action: Magnum Hotel  Can this proposal achieve management’s objectives?  Is the target population the appropriate one?  Are there other questions that should be asked?