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The Marketing Research
Process
The Marketing Research
Process
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LEARNING OUTCOMESLEARNING OUTCOMES
1. Be able to define decision making and understand the role research
plays in making decisions
2. Classify marketing research as either exploratory research,
descriptive research, or causal research3. List the major phases of the marketing research process and the
steps within each
4. Understand the concepts of theory and hypothesis and the critical
role they play in research5. Be able to explain the difference between a research project and a
research program
Learning Objectives
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Introductiony Key ways in which researchers contribute to decision
making:
1. Helping to better define the current situation
2. Defining the firm³determining how consumers,competitors, and employees view the firm
3. Providing ideas for product improvements or possible newproduct development
4. Testing ideas that will assist in implementing the marketingmix strategy for the firm
5. Examining how correct a certain marketing theory is in agiven situation
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Decision Making Terms
y Market Opportunity
y A situation that makes some potential competitive advantage
possible.
y M
arket Problemy A situation that makes some significant negative consequence
more likely.
y Symptoms
y
Observable cues that serve as a signal of a problem because theyare caused by that problem.
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Decision Making
y DecisionMaking Defined
y The process of developing and deciding among alternative ways
of resolving a problem or choosing from among alternative
opportunities.
y Research·s Role in the Decision Making Process
y Recognizing the nature of the problem or opportunity
y Identifying how much information is currently available and
how reliable it isy Determining what information is needed to better deal with the
situation.
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Conditions Aff ecting Decision Making
y Certainty
y The decision maker has all information needed to make an
optimal decision.
y
Uncertaintyy The manager grasps the general nature of desired objectives,
but the information about alternatives is incomplete.
y Ambiguity
y
The nature of the problem itself is unclear such that objectivesare vague and decision alternatives are difficult to define.
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Describing Decision-Making Situations
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The Research Process and
Problem Formulation
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Relationship among the
Stages in the Research
Process
Determine Research Design
Analyze and Interpret the Data
Design Sample and Collect Data
Formulate Problem
Design Data Collection
Method and Forms
Prepare the Research Report3²9
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Stag es in the Research Process
y Process Stages:
1. Defining the research objectives
2. Planning a research design
3. Planning a sample4. Collecting the data
5. Analyzing the data
6. Formulating the conclusions and preparing the report
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Stag es of the Research Process
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Questions That Need Addressing at the Various Stages of the Research Process
Typical QuestionsStage in the Process
Formulate problem
Determine researchdesign
What is the purpose of the study--to solve aproblem? Identify an opportunity? Is additionalbackground information necessary? Whatinformation is needed to make the decision? Howwill the information be utilized? Should researchbe conducted?
How much is already known? Can a hypothesis beformulated? What types of questions need to beanswered? What type of study will best addressthe research questions?
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Determine data collection
method and forms
Can existing data be used to advantage? Whatis to be measured? How
What is the source of the data?
Can objective answers be obtained by askingpeople?
How should people be questioned?
Should the questionnaires be administered inperson, over the phone, or through the mail?Should electronic or mechanical means be usedto make the observations? What specificbehaviors should the observers record?Should str ucture or unstr uctured items be usedto collect the data? Should the purpose of the
study be made known to the respondents?Should rating scales be used in thequestionnaire?
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Design sample and
collect the data
Who is the target population? Is a list of
population elements available? Is a
sample necessary? Is a probability sample
desirable? How large should the sample
be? How should the sample be selected?Who will gather the data? How long will
the data gathering take? How much
supervision is needed? What operational
procedures will be followed? What
methods will be used to ensure the quality
of the data collected?
Questions That Need Addressing at the Various Stages of the Research Process
Typical QuestionsStage in the Process
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Analyze andinterpret thedata
Who will handle the editing of the data?
How will the data be coded? Who will
supervise the coding? Will computer or
hand tabulation be utilized? What
tabulations are called for? What analysis
techniques will be used?
Questions That Need Addressing at the Various Stages of the Research Process
Typical QuestionsStage in the Process
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y
Prepare theresearchreport
y Who will read the report?
What is their technical levelof sophistication? Aremanagerial recommendationscalled for? What will be the
format of the written report?Is an oral report necessary?How should the oral report bestr uctured?
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Flowchart of the
Marketing
Research Process
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Defining the Research Objectives
y Research Objectives
y The goals to be achieved by conducting research.
y Deliverables
y
The consulting term used to describe research objectives to aresearch client.
y Understanding the Problem
y Clarify the problem, opportunity, or monitor operations
y
Define the managerial decision situation
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Defining Problem Results in Clear-Cut
Research Objectives
Statement of Research ObjectivesStatement of Research Objectives
Problem DefinitionProblem Definition
Exploratory
Research
(Optional)
Analysis of the SituationAnalysis of the Situation
Symptom DetectionSymptom Detection
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Exploratory Research Techniquesy Previous Research
y Historical data and literature reviews
y Pilot Studies
y A small-scale research project that collects data from respondents similar tothose to be used in the full study.
y Pretest
y A small-scale study in which the results are only preliminary and intendedonly to assist in design of a subsequent study.
y Focus Groupy A small group discussion about some research topic led by a moderator who
guides discussion among the participants.
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Stating Research Objectives
y Theory
y A formal, logical explanation of some events that includes
predictions of how things relate to one another.
y
Hypothesisy A statement that can be refuted by empirical data
y Empirical Testing
y Something has been examined against reality using data.
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Example Decision Statements, Research Objectives, and Research Hypotheses
Decision Statement:
What should be the retailprice for product X?
What things should we
invest in to improve ou
r service quality?
Should we invest in atraining program to reducerole conflict among our employees?
Research Objectives:
Forecast sales for productX at three different prices.
Identify the top factors that
contribu
te to cu
stomers¶service quality perceptions.
Determine how much roleconflict influencesemployee job satisfaction.
Hypotheses:
Sales will be higher at $5.00than at $4.00 or at $6.99.
Cleanliness is related
positively to cu
stomers¶service quality perceptions.
Crowding is relatednegatively to customers¶service quality perceptions.
Role conflict is relatedpositively to job satisfaction.
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Planning the Research Design
y Research Design
y A master plan that specifies the methods and procedures for
collecting and analyzing the needed information.
y Framework:
y Objectives of the study
y Sources of information
y Design technique (survey or experiment)
y Sampling methodology
y Schedule and cost of the research
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Selection of the Basic Research
Method
y Survey
y A research technique in which a sample is interviewed in some
form or the behavior of respondents is observed and described.
y Written
y Telephone
y Observation
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Sampling
y Sampling
y Involves any procedure that draws conclusions based on
measurements of a portion of the population.
y
Sampling Decisionsy Who to sample?³target population
y What size should the sample be?
y How to select the sampling units?
y Random sample
y Cluster-sample
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Gathering Data
y UnobtrusiveMethods
y Methods in which research respondents do not have to be
disturbed for data to be gathered.
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Processing and Analyzing Data
y Editing Data
y Editing involves checking the data collection forms for
omissions, legibility, and consistency in classification
y Coding Data
y Applying rules for interpreting, categorizing, recording, and
transferring the data to the data storage media are called codes.
y Data Analysis
y The application of reasoning to understand the data that have
been gathered.
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Drawing Conclusions and Preparing a
Report
y Steps in Communicating the Research Findings
y Interpreting the research results
y Describing the implications
yDrawing the appropriate conclusions for managerial decisions.
y Reporting Requirements
y Conclusions fulfill the deliverables promised in the research
proposal.
yA clearly-written, understandable summary of the researchfindings
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