1. Chapter Three Copyright © 2004 John Wiley & Sons, Inc. Problem Definition and the Research Process Copyright © 2004 John Wiley & Sons, Inc. Chapter Three

2. Learning Objective John Wiley & Son, Inc 2 1.To understand the problem definition process 2.To learn the steps involved in the marketing research process 3.To understand the components of the research request 4.To learn the advantages and disadvantages of survey, observation, and experimental research techniques 5.To become familiar with how the research process is initiated Learning Objectives

3. Learning Objective John Wiley & Son, Inc 3 Problem Definition Process Exhibit 3.1 Recognize the problem or opportunity Found why the information is being sought: Understand the decision-making environment Use the symptoms to help clarify the problem Translate the management problem into a marketing research problem Determine whether the information already exists Determine whether the question really can be answered State the research objectives

4. Learning Objective John Wiley & Son, Inc 4 Recognize the Problem or Opportunity –Opportunity Identification External environment Marketing mix New opportunities Find Out Why the Information Is Being Sought –Use and decisions made with the information –Prioritize the questions –Create sample data—will this answer the questions To understand the problem definition process Critical Importance of Correctly Defining the Problem

5. Learning Objective John Wiley & Son, Inc 5 Understand the Decision-Making Environment –Situation analysis –Exploratory research –Pilot studies –Experience surveys –Secondary data –Case analysis Critical Importance of Correctly Defining the Problem To understand the problem definition process

6. Learning Objective John Wiley & Son, Inc 6 Use the Symptoms to Clarify the Problem –Symptom Iceberg principle –“What caused this to occur?” Translate the Management Problem Into a Marketing Research Problem –Marketing research problem –Marketing research objective –Management decision problem Critical Importance of Correctly Defining the Problem To understand the problem definition process

7. Learning Objective John Wiley & Son, Inc 7 Determine Whether the Information Already Exist –Can save time and money Determine Whether the Question Can Be Answered –Identify the following: You know the information exists or can be obtained Based on similar prior experience the information can be gathered Trying this is new and there is a risk of drawing a blank Critical Importance of Correctly Defining the Problem To understand the problem definition process

8. Learning Objective John Wiley & Son, Inc 8 State the Research Objectives Stated in terms of precise information necessary to address the problem/opportunity Road map –Avoid the Nice-to-Know Syndrome –Management Decisions and Research Objectives Would be a restatement, in research terms, of what management needs to know to make a decision Critical Importance of Correctly Defining the Problem To understand the problem definition process

9. Learning Objective John Wiley & Son, Inc 9 –Research objectives as Hypotheses Hypothesis—statement about a relationship between or or more variables that can be tested with empirical data Should contain clear implications for testing stated relationships Development of the research hypothesis sets the stage for creating the research design Critical Importance of Correctly Defining the Problem To understand the problem definition process

10. Learning Objective John Wiley & Son, Inc 10 The Marketing Research ProcessExhibit 3.2 (2) Creating of the Research Design (3) Choosing the Method of Research (4) Selecting the Sampling Procedure (5) Collecting the Data (6) Analyzing the Data (7) Writing and Presenting the Report (8) Follow-up (1) Identification of the Problem and Statement of Objectives

11. Learning Objective John Wiley & Son, Inc 11 To learn the steps involved in the marketing research process. The Marketing Research Process Creating the Research Design –Research design The plan to be followed to answer the research objectives or hypothesis –Descriptive studies Who, what, when, where, and how Variable- a symbol or concept that can assume any one of a set of values Can shed light on associations or relationships

12. Learning Objective John Wiley & Son, Inc 12 –Causal Studies Investigate whether one variable causes or determines the value of another –Dependent variable—to be predicted or explained –Independent variable—the variable that affects or causes the dependent variable—can be manipulated, changed or altered –Temporal sequence—effect follows closely the hypothesized cause—an appropriate causal order of events –Concomitant variation—the degree to which a presumed cause and a presumed effect occur together or vary together The Marketing Research Process To learn the steps involved in the marketing research process.

13. Learning Objective John Wiley & Son, Inc 13 To learn the advantages and disadvantages of survey, observation, and experimental research The Marketing Research Process Choosing a Basic Method of Research –Survey: an interviewer and questionnaire –Observation: to monitor respondents’ actions without direct interaction –Experiments: to measure causality Selecting a Sampling Procedure –Probability sample –Nonprobability sample

14. Learning Objective John Wiley & Son, Inc 14 Collecting the Data –Marketing research field service Analyzing the Data –To interpret and draw conclusions Writing and Presenting the Report –Judging the quality of a report –Using the Internet to disseminate the reports Follow-up –Determine whether the recommendations were followed The Marketing Research Process To learn the steps involved in the marketing research process.

15. Learning Objective John Wiley & Son, Inc 15 Research Request –Used as the basis for determine which projects will be funded. –Internal document Describes the proposed research project Benefits to the organization Estimated costs Must be formally approved before the research project can begin –Components Action Origin Information Use Target groups and subgroups Logistics comments Managing the Research Process To become familiar with how the research process is initiated

16. Learning Objective John Wiley & Son, Inc 16 Request for Proposal (RFP) –Solicitation sent to marketing research suppliers inviting them to submit a formal proposal –Include the bid for the job –Information provided by RFP Background data on why a study is to be conducted Outlines the research objectives Describes a methodology Suggest a time frame Detailed cost breakdown Supplier’s experience in relevant areas references Managing the Research Process To understand the components of the research request

17. Learning Objective John Wiley & Son, Inc 17 What to look for in a Marketing Research Supplier 1.Maintains client confidentially* 2.Is honest* 3.Is punctual 4.Is flexible 5.Delivers against project specifications 6.Provides high-quality output * Two most important qualities 7.Is responsive to the client’s needs 8.Has high quality-control standards 9.Is customer-oriented in interactions with client 10.Keeps the client informed throughout a project –Good communications are a necessity Managers spend at least 80% of every working day in direct communication (48 minutes out of every hour) Managing the Research Process To become familiar with how the research process is initiated

18. Learning Objective John Wiley & Son, Inc 18 What motivated Decision Makers to Use Research Information? –The determinants of whether or not a manager uses research data are: 1.Conformity to prior expectations 2.Clarity of presentation 3.Research quality 4.Political acceptability within the firm 5.Lack of challenge to the status quo To become familiar with how the research process is initiated Managing the Research Process

19. Learning Objective John Wiley & Son, Inc 19 SUMMARY –Critical Importance of Correctly Defining the Problem –Marketing Research Process –Managing the Research Process

20. Learning Objective John Wiley & Son, Inc 20 The End Copyright © 2004 John Wiley & Sons, Inc.