Essentials of Marketing Research William G. Zikmund Chapter 3: The Marketing Research Process

Information Reduces uncertainty Helps focus decision making

Types Of Research Exploratory Descriptive Causal

COMPLETELY CERTAIN ABSOLUTE AMBIGUITY CAUSAL OR DESCRIPTIVE EXPLORATORY Uncertainty Influences The Type Of Research

Exploratory ResearchDescriptive ResearchCausal 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 don’t know why.”our product? Who buys ourour products in a new package? competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?”“What features do buyers prefercampaigns is more effective?” in our product?” possible situation Degree of Problem Definition

Exploratory Research Initial research conducted to clarify and define the nature of a problem Does not provide conclusive evidence Subsequent research expected

Descriptive Research Describes characteristics of a population or phenomenon Some understanding of the nature of the problem

I keep six honest serving men, (they taught me all I knew), their names are --Rudyard Kipling what, and why, and when,and how, and where and who.”

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

Descriptive Research Example Men’s fragrance market 1/3 size of women’s fragrance market But growing at a faster pace Women buy 80 % of men’s fragrances

Causal Research Conducted to identify cause and effect relationships

Identifying Causality 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

Stages of the Research Process Problem Discovery and Definition Research Design Sampling Data Gathering Data Processing and Analysis Conclusions and Report Discovery and Definition and so on

Research Stages Cyclical process - conclusions generate new ideas Stages can overlap chronologically Stages are functionally interrelated –Forward linkages –Backward linkages

Problem discovery Problem definition (statement of research objectives) Secondary (historical) data Experience survey Pilot study Case study Selection of exploratory research technique Selection of basic research method ExperimentSurvey Observation Secondary Data Study LaboratoryFieldInterviewQuestionnaire Selection of exploratory research technique Sampling ProbabilityNonprobability Collection of data (fieldwork) Editing and coding data Data processing Interpretation of findings Report Data Gathering Data Processing and Analysis Conclusions and Report Research Design Problem Discovery and Definition

The Marketing Research Process Problem Discovery Exploratory Research Selection of the Basic Research Method Selection of Sample Design Collection of the Data

The Research Process (cont.) Editing and Coding Data ProcessingInterpretation of the Findings Report

Stages In The Research Process Problem Discovery and Problem Definition Research Design Sampling Data Gathering Data Processing and Analysis Conclusions And Report

Problem Discovery And Definition First step Problem, opportunity, or monitor operations Discovery before definition Problem means management problem

“The formulation of the problem is often more essential than its solution” Albert Einstein

Symptom Detection Problem Definition Statement of Research Objectives Analysis of the Situation Exploratory Research (Optional) STAGE 1: Defining the Problem Results in Clear Cut Research Objectives

Ascertain the decision maker’s objectives. Understand the background of the problem. Isolate and identify the problems, not the symptoms. Determine the unit of analysis Determine the relevant variables State the research questions and research objectives. The Process of Problem Definition

Ascertain the Decision Maker’s Objectives

Understand the Background of the Problem

Isolate and Identify the Problems, Not the Symptoms

The Iceberg Principle

Problem Definition OrganizationSymptoms 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.

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

Determine the Relevant Variable Anything that may assume different numerical values

Types of Variables Categorical Continuous Dependent Independent

Hypothesis An unproven proposition A possible solution to a problem Guess

State the research questions and research objectives

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

Exploratory Research Techniques Secondary data (historical data) Pilot study Experience survey

Focus Group Interview

Experience Survey

“If you wish to know the road up the mountain, you must ask the man who goes back and forth on it.” -- Zenrinkusi

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

Research Design Master Plan Framework For Action Specifies Methods And Procedures

Basic Research Methods Surveys Experiments Secondary data Observation

Sampling Subset of population Who is to be sampled How large a sample How will sample units be selected

Data Gathering Stage

Data Processing and Analysis

Conclusions And Report Writing

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

Research Program Strategy