United Airlines wanted to increase passenger loyalty. Their marketing research problem was to identify factors influencing airline travelers' loyalty. Research revealed safety, price, frequent flyer programs, and brand influenced choice. However, airlines were similar on these. Secondary data suggested food could differentiate airlines and influence loyalty. Surveys found customers wanted varied, updated food. Hypotheses predicted food was important and travelers valued branded, exotic food in large portions of consistent quality. Research testing these hypotheses helped United improve food service, increasing customer satisfaction and loyalty.

1. Defining the MarketingDefining the Marketing
Research Problem andResearch Problem and
Developing an ApproachDeveloping an Approach

2. 1) Overview1) Overview
2)2) Importance of Defining a ProblemImportance of Defining a Problem
3) The Process of Defining a Problem and3) The Process of Defining a Problem and
Developing an ApproachDeveloping an Approach
4) Tasks involved in Problem Definition4) Tasks involved in Problem Definition
i. Discussions with Decision Makersi. Discussions with Decision Makers
ii. Interviews with Industry Expertsii. Interviews with Industry Experts
iii. Secondary Data Analysisiii. Secondary Data Analysis
iv. Qualitative Researchiv. Qualitative Research
Chapter OutlineChapter Outline

3. 5) Environmental Context of the Problem5) Environmental Context of the Problem
ii. Past information and Forecasts. Past information and Forecasts
ii. Resources and Constraintsii. Resources and Constraints
iii. Objectivesiii. Objectives
iv. Buyer Behavioriv. Buyer Behavior
v. Legal Environmentv. Legal Environment
vi. Economic Environmentvi. Economic Environment
vii. Marketing and Technological Skillsvii. Marketing and Technological Skills
6)6) Management Decision Problem andManagement Decision Problem and
Marketing Research ProblemMarketing Research Problem
Chapter Outline (cont.)Chapter Outline (cont.)

4. 7) Defining the Marketing Research Problem7) Defining the Marketing Research Problem
8) Components of an Approach8) Components of an Approach
i. Objective / Theoretical Foundationsi. Objective / Theoretical Foundations
ii. Analytical Modelii. Analytical Model
iii. Research questionsiii. Research questions
iv. Hypothesisiv. Hypothesis
v. Relevant Characteristicsv. Relevant Characteristics
9) International Marketing Research9) International Marketing Research
10) Ethics in Marketing Research10) Ethics in Marketing Research
11) Internet and Computer Applications11) Internet and Computer Applications
Chapter Outline (cont.)Chapter Outline (cont.)

5. 12) Focus on Burke12) Focus on Burke
13) Summary13) Summary
14) Key Terms and Concepts14) Key Terms and Concepts
15) Acronyms15) Acronyms
Chapter Outline (cont.)Chapter Outline (cont.)

6. Chain Restaurant StudyChain 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.O

7. 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,

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

9. 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 definedefine 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.

10. The Problem Definition ProcessThe Problem Definition Process
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Management Decision Problem
Marketing Research Problem
Tasks InvolvedTasks Involved
Environmental Context of the Problem
Step I: Problem DefinitionStep I: Problem Definition
Step II: Approach to the ProblemStep II: Approach to the Problem
Objective/
Theoretical
Foundations
Research
Questions
Hypotheses
Step III: Research DesignStep III: Research Design
Analytical
Model:
Verbal,
Graphical,
Mathematical
Characteristics/
Factors
Influencing
Research
Design

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

12. Marketing Research Problem
Broad Statement
Specific Components
Proper Definition of theProper Definition of the
Research ProblemResearch Problem

13. Development of ResearchDevelopment of Research
Questions and HypothesesQuestions and Hypotheses
Components of the
Research Questions
Hypotheses
Objective/
Theoretical
Framework
Analytical
Model
Marketing Research Problem

14. United Airlines, as other major airlines, had toUnited Airlines, as other major airlines, had to
deal withdeal with passenger loyaltypassenger loyalty (management(management
decision problem: how to attract more and moredecision problem: how to attract more and more
loyal passengers). The broadloyal passengers). The broad marketing researchmarketing research
problemproblem was to identify thewas to identify the factors that influencefactors that influence
loyalty of airline travelers.loyalty of airline travelers.
At United, Food is Uniting the AirlineAt United, Food is Uniting the Airline
With TravelersWith Travelers

15. The basic answer is toThe basic answer is to improve serviceimprove service. Exploratory. Exploratory
research, theoretical framework, and empiricalresearch, theoretical framework, and empirical
evidence revealed that the consumers’ choice of anevidence revealed that the consumers’ choice of an
airline is influenced by:airline is influenced by: safetysafety,, price of the ticketprice of the ticket,,
frequent-flyer programfrequent-flyer program,, convenience of schedulingconvenience of scheduling,,
and brand name.and brand name.

16. A graphical model stipulated thatA graphical model stipulated that
consumers evaluate competingconsumers evaluate competing
airlines based on factors of theairlines based on factors of the
choice criteria to select a preferredchoice criteria to select a preferred
airline. The problem was thatairline. The problem was that
major airlines were quite similarmajor airlines were quite similar
on these factors. Indeed, "airlineson these factors. Indeed, "airlines
offer the same schedules, the sameoffer the same schedules, the same
service, and the same fares.”service, and the same fares.”
Consequently, United Airlines hadConsequently, United Airlines had
to find a way to differentiate itself.to find a way to differentiate itself.
Food turned out to be the solution.Food turned out to be the solution.

17. Secondary data, like the J. D Power & Associates'Secondary data, like the J. D Power & Associates'
survey on "current and future trends in airlinesurvey on "current and future trends in airline
food industry", indicated thatfood industry", indicated that "food service is a"food service is a
major contributor to customers’ loyalty".major contributor to customers’ loyalty". ThisThis
survey also emphasized the importance of foodsurvey also emphasized the importance of food
brands.brands.

18. The airline's Market survey told United Airlines thatThe airline's Market survey told United Airlines that
"customers wanted more varied and up-to date food.”"customers wanted more varied and up-to date food.”
The following research questions and hypotheses may beThe following research questions and hypotheses may be
posed.posed.
RQ1RQ1 How important is food for airline customers?How important is food for airline customers?
H1:H1: Food is an important factor for airline travelersFood is an important factor for airline travelers
H2:H2: Travelers value branded foodTravelers value branded food
H3:H3: Travelers prefer larger food portions, but withTravelers prefer larger food portions, but with
consistent qualityconsistent quality
H4:H4: Travelers prefer exotic foodTravelers prefer exotic food
RIP 2.2 Contd.RIP 2.2 Contd.

19. Characteristics which influence the research designCharacteristics which influence the research design
included the identification of competing airlines (Delta,included the identification of competing airlines (Delta,
American, etc.), factors of the choice criteria (alreadyAmerican, etc.), factors of the choice criteria (already
identified), measurement of airline travel and loyalty.identified), measurement of airline travel and loyalty.

20. This kind of research helped United Airlines to define theirThis kind of research helped United Airlines to define their
marketing research problem, and develop the approach. Focusmarketing research problem, and develop the approach. Focus
groups and surveys were conducted to check customers'groups and surveys were conducted to check customers'
perceptions of food in United Airlines' aircraft. The resultsperceptions of food in United Airlines' aircraft. The results
provided support for all the hypotheses (H1 to H4). Unitedprovided support for all the hypotheses (H1 to H4). United
Airlines then made a few changes: new "culinary menus,"Airlines then made a few changes: new "culinary menus,"
larger portions of food, new coffee and branded products (e.g.,larger portions of food, new coffee and branded products (e.g.,
Godiva chocolates). This resulted in better service, increasingGodiva chocolates). This resulted in better service, increasing
customer satisfaction and fostering loyalty.customer satisfaction and fostering loyalty.