Essentials ofMarketing Research Jacky PengChapter 3: The Marketing Research Process InformationReduces uncertaintyHelps focus decision makingTypes Of ResearchExploratoryDescriptiveCausalCOMPLETELYCERTAINABSOLUTEAMBIGUITYCAUSAL ORDESCRIPTIVEEXPLORATORYUncertainty Influences The Type Of ResearchExploratory 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 dont know why.”our product? Who buys ourour products in a new package?competitors product?” “Would people be interested “Which of two advertising in our new product idea?”“What features do buyers prefer campaigns is more effective?”in our product?”possible situationDegree of Problem DefinitionExploratory ResearchInitial research conducted to clarify and define the nature of a problemDoes not provide conclusive evidenceSubsequent research expectedDescriptive ResearchDescribes characteristics of a population or phenomenonSome understanding of the nature of the problemI keep six honest serving men, (they taught me all I knew), their names are-Rudyard Kiplingwhat, and why,and when, and how,and whereand who.”8Descriptive Research ExampleWeight Watchers average customerWoman about 40 years oldHousehold income of about $50,000At least some college educationTrying to juggle children and a jobDescriptive Research ExampleMens fragrance market1/3 size of womens fragrance marketBut growing at a faster paceWomen buy 80 % of mens fragrancesCausal ResearchConducted to identify cause and effect relationshipsIdentifying CausalityA causal relationship is impossible to prove. Evidence of causality:1. The appropriate causal order of events2. Concomitant variation-two phenomena vary together3. An absence of alternative plausible explanationsStages of the Research ProcessProblem Discoveryand DefinitionResearchDesignSamplingDataGatheringData Processingand AnalysisConclusions andReportDiscovery andDefinitionand so onResearch StagesCyclical process - conclusions generate new ideasStages can overlap chronologicallyStages are functionally interrelatedForward linkagesBackward linkagesProblemdiscoveryProblem definition(statement ofresearch objectives)Secondary(historical)dataExperiencesurveyPilotstudyCasestudySelection ofexploratory researchtechniqueSelection ofbasic researchmethodExperimentSurveyObservationSecondaryData StudyLaboratoryFieldInterviewQuestionnaireSelection ofexploratory researchtechniqueSamplingProbabilityNonprobabilityCollection ofdata(fieldwork)Editing andcodingdataDataprocessingInterpretationoffindingsReportDataGatheringDataProcessingandAnalysisConclusionsand ReportResearch DesignProblem Discoveryand DefinitionThe Marketing Research ProcessProblem DiscoveryExploratory ResearchSelection of the Basic Research MethodSelection of Sample DesignCollection of the DataThe Research Process (cont.)Editing and CodingData ProcessingInterpretation of the FindingsReportStages In The Research ProcessProblem Discovery and Problem DefinitionResearch DesignSamplingData GatheringData Processing and AnalysisConclusions And ReportProblem Discovery And DefinitionFirst stepProblem, opportunity, or monitor operationsDiscovery before definitionProblem means management problem“The formulation of the problem is often more essential than its solution”Albert EinsteinSymptom DetectionProblem DefinitionStatement of Research ObjectivesAnalysis of the SituationExploratory Research(Optional)STAGE 1: Defining the Problem Results in Clear Cut Research ObjectivesAscertainthedecisionmakersobjectives.Understandthebackgroundof theproblem.Isolate andidentify theproblems,not thesymptoms.Determinethe unitof analysisDeterminetherelevantvariablesState theresearchquestionsandresearchobjectives.The Process of Problem DefinitionAscertain the Decision Makers Objectives23Understand the Background of the Problem24Isolate and Identify the Problems, Not the Symptoms25The Iceberg Principle26 Problem DefinitionOrganizationSymptoms Based on Symptom True ProblemTwenty-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 AnalysisIndividuals, households, organizations, etc.In many studies, the family rather than the individual is the appropriate unit of analysis.28Determine the Relevant VariableAnything that may assume different numerical values29Types of VariablesCategoricalContinuousDependentIndependent HypothesisAn unproven propositionA possible solution to a problemGuessState the research questions and research objectives32If you do not know where you are going,any road will take you there.Exploratory Research TechniquesSecondary data (historical data)Pilot studyExperience surveyFocus Group InterviewExperience Survey“If you wish to know the road up themountain, you must ask the man who goes back and forth on it.”- Zenrinkusi37Specificobjective - 2Specificobjective - 3Specificobjective - 1Statement ofmarketingproblemBroadresearchobjectivesResearchdesignResultsExploratoryresearch(optional)Research DesignMaster PlanFramework For ActionSpecifies Methods And ProceduresBasic Research MethodsSurveysExperimentsSecondary dataObservationSamplingSubset of populationWho is to be sampledHow large a sampleHow will sample units be selectedData Gathering StageData Processing and AnalysisConclusions And Report WritingResearch ProposalA written statement of the research design that includes a statement explaining the purpose of the study.Detailed outline of procedures associated with a particular methodologyResearch Program Strategy