Development of an approach to the problem.ppt

Defining the Research Problem and
Developing an Approach

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© 2013 Prentice Hall
Chapter Outline
1) Overview
2) Importance of Defining a Problem
3) The Process of Defining the Problem and
Developing an Approach
4) Tasks involved in Problem Definition
i. Discussions with Decision Makers
ii. Interviews with Industry Experts
iii. Secondary Data Analysis
iv. Qualitative Research

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Chapter Outline
5) Environmental Context of the Problem
i. Past Information and Forecasts
ii. Resources and Constraints
iii. Objectives
iv. Buyer Behavior
v. Legal Environment
vi. Economic Environment
vii. Marketing and Technological Skills
6) Management Decision Problem and
Marketing Research Problem

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Chapter Outline
7) Defining the Marketing Research Problem
8) Components of an Approach
i. Objective / Theoretical Foundations
ii. Analytical Model
iii. Research Questions
iv. Hypothesis
v. Specification of Information Needed
9) International Marketing Research
10) Ethics in Marketing Research

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Chapter Outline
11) Summary
12) Key Terms and Concepts

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Chain Restaurant Study
One day I received a
phone call from a
research analyst who
introduced himself as
one of our alumni.
He was working for a
restaurant chain in town
and wanted help
analyzing the data he
had collected while
conducting a marketing
research study.

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When we met, he presented me with a copy of
the questionnaire and asked how he should
analyze the data. My first question to him was,

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When he looked
perplexed, I
explained that
data analysis is
not an
independent
exercise.
Rather, the goal of data analysis is to
PROVIDE INFORMATION RELATED TO THE
PROBLEM COMPONENTS.

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I was surprised to learn that he
did not have a clear understanding
of the marketing research problem
and that a written definition did
not exist. So before going any
further, I had to define the
marketing research problem.
Once that was done, I found that
much of the data collected was not
relevant to the problem. In this
sense, the whole study was a waste
of resources. A new study had to be
designed and implemented to
address the problem defined.

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 If the problems is not defined properly:
– All efforts, time, and money will be wasted
– It can cause to failure of research projects
– Researchers may be misguided
Peter Drucker-- “The truly serious mistakes are made
not as a result of wrong answers but because of
asking the wrong questions.”
Importance of Problem Definition

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The Problem Definition Process
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Management Decision Problem
Research Problem
Tasks Involved in defining the problem
Environmental Context of the Problem
Step I: Problem Definition

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 Problem definition involves stating the general
problem and identifying the components of the
MR problem
– Discussions with Decision Makers
– Interviews with Industry Experts
– Secondary Data Analysis
– Qualitative Research
Tasks Involved in Problem Definition

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 DMs must know
– The problems they are facing and what they want to
learn from MR
– The capabilities and limitations of research
» MR provides only information for managerial judgment, not
solutions
 Researcher may not have easy access to DMs
– Some protocols to maintain to reach DMs
– There may more than one decision makers
Discussion with Decision Makers (DMs)

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The Problem Audit
The problem audit is a comprehensive examination of a
marketing problem with the purpose of understanding its
origin and nature.
1. The events that led to the decision that action is needed, or
the history of the problem.
2. The alternative courses of action available to the DM.
3. The criteria that will be used to evaluate the
alternative courses of action.
4. The potential actions that are likely to be suggested
based on the research findings.
5. The information that is needed to answer the DM's
questions.
6. The manner in which the DM will use each item of
information in making the decision.
7. The corporate culture as it relates to decision making.

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The Seven Cs of Interaction
The interaction between the DM and the
researcher should be characterized by the 7 Cs:
1. Communication
2. Cooperation
3. Confidence
4. Candor
5. Closeness
6. Continuity
7. Creativity

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 Interview with knowledgeable people about the
industry and the firm
– Experts may be found inside or outside the firm
– Be flexible in capturing the insights of experts
 Two problems are:
– Individual claiming to be knowledgeable may not
have expertise
– Difficult to locate and obtain help from experts
outside the client organization
Interviews with Industry Experts

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 Secondary data are collected for some
purpose other than the problem at hand, and
already published
– Secondary data analysis helps identify the problem
 Primary data are originated by the researcher
for specific purpose of addressing the
research problem
– Data from original sources
Secondary Data Analysis

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 An unstructured, exploratory research
methodology based on small samples intended
to provide insight and understanding of the
problem setting
– Pilot surveys tend to be less structured than large-
scale surveys in that thy generally contain more
open-ended questions and the sample size is much
smaller
– Case studies involve an intensive examination of a
few selected cases of the phenomenon of interest
Qualitative Research

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Factors to be Considered in the
Environmental Context of the Problem
PAST INFORMATION AND FORECASTS
RESOURCES AND CONSTRAINTS
OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIROMENT
ECONOMIC ENVIROMENT
MARKETING AND TECHNOLOGICAL
SKILLS
Fig. 2.2

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Management Decision Problem Vs.
Management
Decision Problem
Marketing Research
Problem
–Asks what the decision
maker needs to do
–Asks what information is
needed and how it should
be obtained
–Action oriented –Information oriented
–Focuses on symptoms –Focuses on the underlying
causes

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Management
Decision Problem
Marketing Research
Problem
– Should a new product
be introduced?
– Should the advertising
campaign be changed?
– Should the price of the
brand be increased?
– To determine consumer
preferences and purchase
intentions for the proposed new
product.
– To determine the effectiveness
of the current advertising
campaign.
– To determine the price elasticity
of demand and the impact on
sales and profits of various
levels of price changes.
Management Decision Problem Vs.

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 MR problem definition helps
– Obtain all information to address management
decision problem
– Guide researcher in proceeding with the project
 Two errors in problem definition
– Defining the problem too broadly
– Defining the problem too narrowly
Proper Definition of the Research
Problem

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Proper Definition of the Research Problem
Broad Statement
Specific Components
Fig. 2.3

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Department Store Project
Problem Definition
In the department store project, the marketing research
problem is to determine the relative strengths and weaknesses
of Sears, vis-à-vis other major competitors, with respect to
factors that influence store patronage. Specifically, research
should provide information on the following questions.
1. What criteria do households use when selecting department
stores?
2. How do households evaluate Sears and competing stores in
terms of the choice criteria identified in question 1?
3. Which stores are patronized when shopping for specific
product categories?
4. What is the market share of Sears and its competitors for
specific product categories?
5. What is the demographic and psychological profile of the
customers of Sears? Does it differ from the profile of customers
of competing stores?
6. Can store patronage and preference be explained in terms of
store evaluations and customer characteristics?
NOT FOR EXAMINATION

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Development of An approach to the problem
Components of Approach to the Problem
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Analytical
Model: Verbal,
Graphical,
Mathematical
Specification
of
Information
Needed

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Components of an Approach
 Objective/Theoretical Foundations
 Analytical Model
 Research Questions
 Hypotheses
 Specification of the Information Needed

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Objective/Theoretical Framework
Research should be based on objective evidence
and supported by theory
 Objective evidence is unbiased evidence that is
supported by empirical findings.
– Gathered by compiling relevant findings from secondary
sources
 A theory is a conceptual scheme based on
foundational statements or axioms that are
supposed to be true and might be identified by
reviewing academic literature

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The Role of Theory in Applied
Research
Research Task Role of Theory
1. Conceptualizing
and identifying
key variables
Provides a conceptual foundation and understanding of the basic processes
underlying the problem situation. These processes will suggest key dependent
and independent variables.
2. Operationalizing
key variables
Theoretical constructs (variables) can suggest independent and dependent
variables naturally occurring in the real world.
3. Selecting a
research design
Causal or associative relationships suggested by the theory may indicate whether
a causal or descriptive design should be adopted.
4. Selecting a
sample
The theoretical framework may be useful in defining the population and
suggesting variables for qualifying respondents, imposing quotas, or stratifying
the population(see Chap. 11).
5. Analyzing and
interpreting data
The theoretical framework (and the models, research questions and hypotheses
based on it) guide the selection of a data analysis strategy and the interpretation
of results (see Chap. 14).
6. Integrating
findings
The findings obtained in the research project can be interpreted in the light of
previous research and integrated with the existing body of knowledge.

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Model: Verbal Models
An model is a set of variables and their
interrelationships designed to represent, in
whole or in part, some real system or process.
 In verbal models, the variables and their
relationships are stated in prose form. Such
models may be mere restatements of the main
tenets of a theory.

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Model: Graphical Models
Graphical models are visual. They are used to
isolate variables and to suggest directions of
relationships but are not designed to provide
numerical results.
Awareness
Understanding: Evaluation
Preference
Patronage

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Model: Mathematical Models

=
+
=
n
i
i
i x
a
a
y
1
0
a
a i
,
0
Mathematical models explicitly specify the
relationships among variables, usually in
equation form.
Where
y = degree of preference
= model parameters to be estimated
statistically

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Development of Research
Questions and Hypotheses
Fig. 2.4
Components of the
Research Questions
Hypotheses
Objective/
Theoretical
Framework
Analytical
Model
Research Problem

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Research Questions and Hypotheses
 Research questions (RQs) are refined statements
of the specific components of the problem.
 A hypothesis (H) is an unproven statement or
proposition about a factor or phenomenon that is of
interest to the researcher. Often, a hypothesis is a
possible answer to the research question.

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 RQ: Do the customers of Sears exhibit store
loyalty?
 H1: Customers who are store-loyal are less
knowledgeable about the shopping
environment.
 H2: Store-loyal customers are more risk-averse
than are non-loyal customers.

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Specification of Information Needed
Component 1
 The researcher identified the following factors as part of the
choice criteria: quality of merchandise, variety and assortment
of merchandise, returns and adjustment policy, service of
store personnel, prices, convenience of location, layout of
store, credit and billing policies. The respondents should be
asked to rate the importance of each factor as it influences
their store selection.
Component 2
 The researcher identified nine department stores as
competitors to Sears based on discussions with management.
The respondents should be asked to evaluate Sears and its
nine competitors on the eight choice criteria factors.
NOT FOR EXAMINATION

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Component 3
 Sixteen different product categories were selected,
including women's dresses, women's sportswear,
lingerie and body fashion, junior merchandise, men's
apparel, cosmetics, jewelry, shoes, sheets and
towels, furniture and bedding, and draperies. The
respondents should be asked whether they shop at
each of the ten stores for each of the 16 product
categories.
Component 4
 No additional information needs to be obtained from
the respondents.
NOT FOR EXAMINATION

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Component 5
 Information should be obtained on the standard
demographic characteristics and the
psychographic characteristics of store loyalty,
credit use, appearance consciousness, and
combining shopping with eating.
Component 6
 No additional information needs to be obtained
from the respondents.
NOT FOR EXAMINATION

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At United, Food Is Uniting
the Airline with Travelers
United Airlines, as other major airlines, had to deal with
passenger loyalty (management decision problem: how
to attract more and more loyal passengers). The broad
marketing research problem was to identify the factors
that influence loyalty of airline travelers.
NOT FOR EXAMINATION

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The basic answer is to improve service. Exploratory
research, theoretical framework, and empirical evidence
revealed that the consumers’ choice of an airline is
influenced by: safety, price of the ticket, frequent-flyer
program, convenience of scheduling, and brand name.
At United, Food Is Uniting the
Airline with Travelers
NOT FOR EXAMINATION

2-40
A graphical model stipulated that
consumers evaluate competing airlines
based on factors of the choice criteria to
select a preferred airline. The problem
was that major airlines were quite
similar on these factors. Indeed,
"airlines offer the same schedules, the
same service, and the same fares.”
Consequently, United Airlines had to find
a way to differentiate itself. Food turned
out to be the solution.
At United, Food Is Uniting the Airline
with Travelers
NOT FOR EXAMINATION

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Secondary data, like the J. D Power & Associates'
survey on "current and future trends in the airline
food industry," indicated that "food service is a major
contributor to customers’ loyalty." This survey also
emphasized the importance of food brands.
At United, Food Is Uniting the
Airline with Travelers
NOT FOR EXAMINATION

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The airline's Marketrak survey told United Airlines that
"customers wanted more varied and up-to-date food.”
The following research questions and hypotheses may be
posed.
RQ1 How important is food for airline customers?
H1: Food is an important factor for airline travelers.
H2: Travelers value branded food.
H3: Travelers prefer larger food portions, but with
consistent quality.
H4: Travelers prefer exotic food.
with Travelers
NOT FOR EXAMINATION

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Characteristics that influence the research design
included the identification of competing airlines (Delta,
American, etc.), factors of the choice criteria (already
identified), measurement of airline travel, and loyalty.
with Travelers
NOT FOR EXAMINATION

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This kind of research helped United Airlines define their marketing
research problem and develop the approach. Focus groups and
surveys were conducted to check customers' perceptions of food in
United Airlines' aircraft. The results provided support for all the
hypotheses (H1 to H4). United Airlines then made a few changes:
new "culinary menus," larger portions of food, new coffee, and
branded products (e.g., Godiva chocolates). This resulted in better
service, increasing customer satisfaction and fostering loyalty.
with Travelers
NOT FOR EXAMINATION

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International Marketing Research
Examining the impact of the Self-
Reference Criterion (SRC)
1. Define the marketing research problem in
terms of domestic environmental and cultural factors.
2. Define the marketing research problem in terms of
foreign environmental and cultural factors. Make no
judgments.
3. Isolate the self-reference criterion (SRC) influence on
the problem and examine it carefully to see how it
complicates the problem.
4. Redefine the problem without the SRC influence and
address it for the foreign market situation.

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