Marketing Research

1. Chapter 5
Types of Research

2. Objectives
To Understand
• the exploratory, descriptive, and causal research approaches
• the kinds of research needed at different stages of the marketing
decision process

3. Introduction
• Research approach varies depending on the nature of the problem
being addressed, as well as on the extent to which it has acquired
a structure.
• Appropriateness of the approach influences
a) nature of data
b) method of collection of data,
c) time required for the study
d) cost of research
e) complexities in the interrelationships between the
variables being studied
f) design of research

4. Research Approaches
• Exploratory: * the initial research, often undertaken in order to
get insights into the problem. Hypotheses either not formed or
vaguely formed. Characterized by highly flexible, unstructured
and at times informal research methods.
* stages in exploratory research:
1. search of secondary data
2. discussion with ‘experts’, and
3. examination of analogous
situations, including simulation

5. …contd.
• Descriptive :* Concerned with defining the who, where, when, how and of a
what decision problem; i.e.; descriptions of market
characteristics
* Examine well-defined hypotheses; have a fairly structured
research design and identified plan of sources of data
* Univariate or multivariate studies
* Do not explain the relationship between variables, but merely
describe the association => not always useful for prediction
* Require large samples
Research Approaches

6. • Causal studies: * concerned with finding answers to the ‘why’ aspect of a
problem.
* require a very well-defined structure of research design,
sources of data and method of data collection.
* aims at optmising the degree of accuracy with which the
relationship between an observed (dependent) variable
and its possible causes, i.e., independent variables, is
identified.
* Types of causation: (a) deterministic
(b) probabilistic
* Deterministic causation defines the necessary and sufficient
condition(s) for any change in an observed variable.
Research Approaches
…contd.

7. * Probabilistic causation a necessary but not sufficient cause
of the event’s occurrence. Explains the relationship between
the dependent variable and multiple independent variables.
* Relationship between two variables is causal if there is
(a) concomitant ( simultaneous ) variation , (b) a sequence
of events, and ( c) absence of other possible causes.
* Four types of causal relationships exist according to Cooper
and Schindler:
Research Approaches
…contd.

8. …contd.
1) Stimulus – response relationship: An event or occurrence that evokes
some response from the dependent variable
2) Property – disposition relationship: An enduring characteristic ( property)
that cannot be manipulated artificially , but influences the subject’s
response;
3) Disposition – behaviour relationship: dispositions influence
behaviour, For example, variety seeking disposition leads to frequent
trial of new Products on the market.
4) Property – behaviour relationship: In addition to disposition, enduring
enduring characteristics such as social class also influence behaviour ;
e.g., the involvement of the family in investment decisions among the
higher social classes.
Research Approaches

9. Research Approaches for Specific
Marketing Decision Stages:
Different research approaches required for pre-introductory, post-
introductory and strategic decisions
MKTNG.
DECISION STAGE
EXPLORATORY DESCRIPTIVE CAUSAL
POST-
INTRODUCTION
• Opportunity
Identification:
-Idea Generation
-Idea Evaluation
- Concept test
• Concept Test
•Tests of Various Mktg.
Elements: prod., price,
commn. strategy;
marketing channels
•Test Marketing
•Mkt. Segmentation
studies
•Mkt. Potential
•Sales forecasts
•Positioning studies
RESEARCH APPROACH

10. …contd.
MKTNG.
DECISION
STAGE
EXPLORATORY DESCRIPTIVE CAUSAL
POST-
INTROD
UCTION
• Consumer
attitudes
towards
• Company’s and
competitive mkt.
offering
• Repositioning
studies
• Motivation
research
• Customer –
satisfaction
studies at
brand /
product level
• Studies related to specific
marketing issues: consumer,
product, price, commn., channels,
competition,mkt. segments
• Purchase patterns, trial and repeat
rates for new products/ services;
profile of major market segments
• Usage patterns; heavy,
medium and low use consumers
• Brand-loyalty studies ; brand
image and brand identity
studies; perceptual mapping of
brands; brand positioning studies
• Customer satisfaction
studies at brand /product level
• Predictive studies to
determine degree
and nature of
influence exercised
by marketing
elements on
sales, profits, etc.
• Post-facto studies
to determine the
impact of changes
in specific
competitive
variables on
company’s
market-offering
Research Approaches for Specific
Marketing Decision Stages

11. …contd.
MKTNG. DECISION
STAGE
EXPLORATORY DESCRIPTIVE CAUSAL
STRATEGIC
• Market and industry-
analysis
• Perceptual mapping
of company and
competitors
• Studies to choose
growth strategies:
market development,
• Product development,
• Diversification
• Assessment of
market-performance
• PLC analysis; studies
for identification of
appropriate market
strategies;
• Corporate branding
studies
• Identification
• Customer perception
Surveys
• Opportunities for
innovation
• Impact of specific
environmental
variables on
company
performance
Research Approaches for Specific
Marketing Decision Stages