1. 2: The Marketing Research Process and Proposals

2. 2-2 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Determining the Need for Research Process “Can the decision- making problem or question be solved based on past experience and managerial judgment?”

3. 2-3 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Situations when research might not be needed  Information already available  Insufficient time frames  Inadequate resources  Costs outweigh value  Market is too volatile (hi-tech)

4. 2-4 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Phases of the 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

5. 2-5 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Scientific Method Logical Objective Systematic Reliable Valid Ongoing

6. 2-6 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 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

7. 2-7 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 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

8. 2-8 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 The Iceberg Principle

9. 2-9 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Step 2: Define the Research Problem and Questions Initial research problems/questions Redefined research problems/questions

10. 2-10 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Step 3: Specify Research Objectives and Confirm Information Value  Can the information be collected at all?  Can the information be collected within budget constaints?  Will the information provide significant new insights?  What are the benefits of this information?

11. 2-11 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 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

12. 2-12 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008CausalResearchCausalResearch Step 4: Determine the Research Design DescriptiveResearchExploratoryResearch

13. 2-13 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 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

14. 2-14 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Step 6. Examine Measurement Issues and Scales  Determine level and kinds of information needed  Develop or access reliable and valid scales / measures and constructs  Choose best question stems / stimuli and response formats  Single or multi-item measures used to collect data  Determine method of analysis

15. 2-15 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Step 7: Design and Pretest Research Instrument(s) Questionnaires can be pretested in a usability lab like this one

16. 2-16 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 Step 8. Collect and prepare data Step 9. Analyze data Step 10. Interpret data to create knowledge Phase III. Execute the Research Design

17. 2-17 Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. Hair/Wolfinbarger/Ortinau/Bush, Essentials of Marketing Research 1e © McGraw-Hill/Irwin2008 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