Research questions are refined statements of the specific components of the problem.

Presentation on theme: "Defining the Marketing Research Problem and Developing an Approach"— Presentation transcript:

1 Defining the Marketing Research Problem and Developing an Approach
Bambang Wiharto 4/17/2017 Chapter 2

2 Introduction Defining the problem is the most important step, because only when a problem has been clearly and accurately identified can a research project be conducted properly. Defining the marketing research problem sets the course of the entire project. 4/17/2017 Chapter 2

3 Importance of Defining the Problem
Problem definition involves stating the general marketing research problem and identifying its specific components. Only when marketing research problem has been clearly defined can research be designed and conducted properly. Inadequate problem definition is a leading cause of failure of marketing research project. Better communication and more involvement in problem definition are the most frequently mentioned ways of improving the usefulness of research. 4/17/2017 Chapter 2

4 The Process of Defining the Problem and Developing an Approach
Tasks Involved Discussions with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research Environmental Context of the Problem 4/17/2017 Chapter 2

5 Discussions with the Decision Maker
Discussions with the decision maker (DM) are extremely important. The DM needs to understand the capabilities and limitations of research. Research provides information relevant to management decisions, but it cannot provide solutions, because solutions require managerial judgment. Conversely, the researcher needs to understand the nature of what decisions managers face - the management problem - and what they hope to learn from the research 4/17/2017 Chapter 2

6 Problem Audit The problem audit provides a useful framework for interacting with the DM and identifying the underlying causes of the problem. The problem audit, is a comprehensive examination of a marketing problem with the goal of understanding its origin and nature. It is important to perform a problem audit because the DM, in most cases, has only a vague idea of what the problem is. 4/17/2017 Chapter 2

7 Problem Audit The problem audit involves discussions with the DM on the following issues: The events that led to the decision that action is needed, or the history of the problem. The alternative courses of action available to the DM The criteria that will be used to evaluate the alternative courses of action. The potential actions that are likely to be suggested based on the research findings. The information that is needed to answer the DM’s questions. The manner in which the DM will use each item of information in making the decision. The corporate culture as it relates to decision making. 4/17/2017 Chapter 2

8 Interaction Between the DM and the Researcher Should Be Characterized by:
Communication (free exchange ideas) Cooperation (marketing research is a team project) Confidence (mutual trust) Candor (an attitude of openness, no hidden agenda) Closeness (feeling of warmth and closeness, between the DM and the researcher) Continuity (must interact continually) Creativity (the interaction between the DM and the researcher should be creative rather than formulaic) 4/17/2017 Chapter 2

9 Interviews with Industry Experts
Interviews with industry experts, individuals knowledgeable about the firm and the industry, may help formulate the marketing research problem. These experts may be found both inside and outside the firm. Typically, expert information is obtained by unstructured personal interviews, without administering a formal questionnaire. The purpose of interviewing experts is to help define the marketing research problem rather than to develop a conclusive solution. 4/17/2017 Chapter 2

10 Two Potential Difficulties of Seeking Advice from Experts
Some individuals who claim to be knowledgeable and are eager to participate may not really posses expertise. It may be difficult to locate and obtain the help from experts who are outside the client organization. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for product of a technical nature, where it is relatively easy to identify and approach the experts. 4/17/2017 Chapter 2

11 Secondary Data Analysis
Primary data, are collected or produced by the researcher for the specific purpose of addressing the research problem. Secondary data are: data collected for some purpose other than the problem at hand. include information made available by business and government sources, commercial marketing research firms and computerized databases. an economical and quick source of background information. 4/17/2017 Chapter 2

12 Qualitative Research Sometimes qualitative research must be undertaken to gain an understanding of the problem and its underlying factors. Qualitative research is unstructured, exploratory in nature, based on small samples, and may utilize popular qualitative techniques such as focus group (group interviews), word association (asking respondents to indicate their first response to stimulus words), and depth interviews (one-on-one interviews that probe the respondents’ thought in detail). 4/17/2017 Chapter 2

13 Environmental Context of the Problem
To understand the background to a marketing research problem, the researcher must understand the client’s firm and industry. In particular, the researcher analyze the factors that have an impact on the definition of the marketing research problem such as: past information and forecast pertaining to the industry and the firm; resources and constraints of the firm; objective of the decision maker; buyer behavior; legal environment; economic environment; and marketing and technological skills of the firm. 4/17/2017 Chapter 2

14 Management Decision Problem and Marketing Research Problem
The management decision problem asks what the DM needs to do, whereas the marketing research problem ask what information is needed and how it can best be obtained. Research can provide the necessary information to make a sound decision. The management decision problem is action oriented. It is concerned with the possible actions the DM could take. How should the loss of market share be arrested? Should the market be segmented differently? 4/17/2017 Chapter 2

15 Management Decision Problem and Marketing Research Problem
The marketing research problem is information oriented. It wants to determine what information is needed to make the best decision. It involves determining what information is needed and how that information can be obtained effectively and efficiently. Whereas the management decision problem focuses on symptoms, the marketing research problem focuses on underlying causes. 4/17/2017 Chapter 2

16 Management Decision Problem versus Marketing Research Problem
Asks what the decision maker needs to do Action oriented Focuses on symptoms Marketing research problem Asks what information is needed and how it should be obtained Information oriented Focuses on the underlying causes 4/17/2017 Chapter 2

17 Management Decision Problem versus Marketing Research Problem Examples
Should a new product be introduced? Should the advertising campaign be changed? Marketing research problem To determine consumer preferences and purchase intentions for the proposed new product. To determine the effectiveness of the current advertising campaign 4/17/2017 Chapter 2

18 Defining the Marketing Research Problem
The general rule to be followed in defining the research problem is that the definition should: Allow the researcher to obtain all the information needed to address the management decision problem. Guide the researcher in proceeding with the project. 4/17/2017 Chapter 2

19 Defining the Marketing Research Problem (Cont)
Two common errors in problem definition: too broadly definition and too narrowly definition. A broad definition does not provide clear guidelines for the subsequent steps involve in the project. A narrow focus may preclude consideration of some courses of action, particularly those that are innovative and may not be obvious. 4/17/2017 Chapter 2

20 The Broad Statement and The Specific Component
The Broad Statement provides perspective on the problem and act as a safeguard against committing the second type of error (define the marketing research problem too narrowly). The Specific component focus on the key aspects of the problem and provide clear guidelines on how to proceed further, thereby reducing the likelihood of the first type of error. 4/17/2017 Chapter 2

21 Components of the Approach
In the process of developing an approach, we must not lose sight of the goal - the outputs. The outputs of the approach development process should include the following components: Objective/theoretical framework Analytical models Research Questions Hypotheses, and Specification of Information Needed. 4/17/2017 Chapter 2

22 Objective/Theoretical Framework
In general, research should be based on objective evidence and supported by theory. A theory is conceptual scheme based on foundational statements called axioms, which are assumed to be true. Objective evidence (that is unbiased and supported by empirical findings) is gathered by compiling relevant findings from secondary sources. The researcher should rely on theory to determine which variables should be investigated. 4/17/2017 Chapter 2

23 The Role of Theory in Applied Marketing Research
Conceptualizing and identifying key variables (IV and DV). Operationalizing key variables. Selecting a research design. Selecting a sample. Analyzing and interpreting data. Integrating findings. 4/17/2017 Chapter 2

24 Analytical Model Analytical model. An explicit specification of a set of variables and their relationships designed to represent some real system or process in whole or in part. Models can have many different forms such as: verbal, graphical, an mathematical structure. Verbal model. Analytical models that provide a written representation of the relationships among variables. Graphical model. Analytical models that provide a visual picture of the relationships among variables. Mathematical model. Analytical models that explicitly describe the relationships among variables, usually in equation form. 4/17/2017 Chapter 2

25 Research Questions Research questions are refined statements of the specific components of the problem. The components of problem define the problem in specific terms, but further detail may be needed to develop an approach. Each component of the problem, may have to be broken down into subcomponent or research questions. Research questions ask what specific information is required with respect to the problem components. Information obtained using research questions should aid the decision maker. 4/17/2017 Chapter 2

26 Research Question and Theoretical Framework
The formulation of the research questions should be guided not only by the problem definition, but also by the theoretical framework and the analytical model adopted. The theoretical framework and the analytical model play a significant role in the operationalization and measurement of variables specified by the research questions. The research questions were further refined by precisely defining the variables and determining how they were to be operationalized. 4/17/2017 Chapter 2

27 Hypotheses A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. It may be a tentative statement about relationship between two or more variables as stipulated by the theoretical framework or the analytical model. Often, a hypothesis is a possible answer to the research question. An important role of a hypothesis is to suggest variables to be included in the research design. 4/17/2017 Chapter 2

28 Hypotheses Vs Research Question
Hypotheses go beyond research questions because they are statement of relationships or propositions rather than merely questions to which answers are sought. Where are research questions are interrogative, hypotheses are declarative and can be tested empirically. 4/17/2017 Chapter 2

29 Marketing Research Problem
Hypotheses RQ: Do Customers of Sears exhibit store loyalty? H: Customers of Sears are loyal. Hypotheses are an important part of the approach to the problem. Components of the Marketing Research Problem Development of Research Questions and Hypotheses Objective/ Theoretical Framework Research Questions Analytical Model Hypotheses 4/17/2017 Chapter 2

30 Specification of Information Needed
By focusing on each component of the problem and the analytical framework and models, research questions, and hypotheses, the researcher can determine what information should be obtained in the marketing research project. It is helpful to carry out this exercise for each component of the problem and make a list specifying all the information that should be collected. 4/17/2017 Chapter 2

31 Internet and Marketing Research Problem
Discussion with decision maker, anywhere at any time. Interviews with industry experts. The Internet can be searched to find industry experts outside the client’s organization. Internet search engine can be used to collect secondary data quickly and economically. Environmental Context of the problem. Past information and forecasts of trends can be found by searching for the appropriate information with the search engine. 4/17/2017 Chapter 2

What is a broad statement of the general problem and identification of the specific components of the marketing research problem?

Which statement is true about research design?

Which research design is marked by prior formulation of specific hypotheses?

Is a conceptual scheme based on foundation statements which are assumed to be true?