The document outlines the first 5 steps of the marketing research process that will be covered on the first exam: 1) Establish the need for marketing research 2) Define the problem 3) Establish research objectives 4) Determine research design 5) Identify information types and sources (covered in extra credit)

1. Research Process Steps Covered in the First Exam
STEP 1: Establish the need for marketing research
STEP 2: Define the problem
STEP 3: Establish research objectives
STEP 4: Determine research design
STEP 5: Identify information types and sources*
*Covered in the extra credit question
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2. STEP 1: Establish the need for
marketing research
We recognize that we have a decision that we need to make,
but that we aren’t sure if we have the information required
to make it. Often, this begins as recognition of a symptom
rather than a problem itself, so we know that there’s a
decision that needs to be made, but we might not always
know exactly what that decision is yet.
If we DO have the information needed to make the decision,
we can proceed to make the decision without research.
If we DON’T have the information needed, we proceed to
step 2.
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3. STEP 2: Define the problem
As we look at the situation that prompted us to consider
marketing research, we need to recognize that the problem
source is often different from the symptoms. Once we
identify the problem source*, we need to spell out exactly
what our problem is and what we are considering doing to
solve it.
In marketing research, this generally means writing a
problem statement that lays out the decision that needs to
be made to address the problem source.
*Failure to meet objectives or an opportunity
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4. STEP 3: Establish research objectives
Research objectives are specific statements written once a
problem is defined to spell out the themes or areas of
concern (“constructs”) that will be addressed by the
upcoming research.
Research objectives should be specifically worded and
explain the construct that is being measured. Some
researchers (including your textbook authors) even go so far
as to explain how that construct will be measured.
Others include a series of accompanying research questions
to further break down each objective into areas of study.
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5. STEP 4: Determine research design
Once the problem has been defined and the objectives for
what needs to be known have been set, we must determine
the character of the information we are trying to collect.
Are we looking to gain context, background information or
ideas? Then we are conducting exploratory research.
Are we looking to find out characteristics of the population
or sample? Then we are conducting descriptive research.
Are we trying to establish a cause-and-effect relationship?
Then we are conducting causal research.
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6. A WORD OF CAUTION
Don’t get confused about these three terms and others that tie
in.
Secondary research is often consulted for exploratory
purposes, but it can be used for descriptive or causal studies!
Likewise, qualitative research is generally exploratory, but it
can be conducted for descriptive or causal research under
certain circumstances!
Likewise, primary research and quantitative research can be
used for exploratory studies!
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7. EXAMPLE 1 – Trip to Chicago
Two of my friends have never been to Chicago. They are
considering taking a trip this March.
Let’s pretend they’re going to use the research process to
help them in their decision.
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8. Trip to Chicago – STEP 1
STEP 1 – Establish the need for research
My friends can discuss whether or not they want to put the
time and interest into conducting research and whether it’s
needed.
Research will be time-consuming, and some adventures are
more fun if you don’t have a plan!
But in this case, they’re not convinced the trip is worth their
time and money, so they opt to continue on with research.
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9. Trip to Chicago – STEP 2
STEP 2 – Define the problem
My friends’ research problem is simple:
“We need to conduct research to help us decide whether we
should take a trip to Chicago in March or if we should stay in
the Metro East.”
The decision involves whether or not they will take a trip.
The research conducted will help them make that decision.
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10. Trip to Chicago – STEP 3
STEP 3 – Establish Research Objectives
Before my friends conduct any research, they determine that
they are going to consider the following areas of concern. We
can call these “constructs.”
• Expense: How expensive will this trip be likely to be?
• Attractions: What attractions do they need to visit?
• Overall Satisfaction: How satisfied and how likely to
return do they feel they will be at the end of the trip?
Note that these constructs can’t be addressed through
research yet. We need to turn them into objectives!
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11. Trip to Chicago – STEP 3 (cont’d)
Let’s turn those into research objective statements.
• Expense: Determine what a typical visit to Chicago has
cost friends and family members and what aspects of a
trip can cause this price to rise or fall.
• Attractions: Determine which attractions are the most
important or worthwhile to visit on a first trip to Chicago.
• Satisfaction: Assess how satisfied friends and family
members have been with their trips to Chicago and how
likely they would be to return.
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12. Trip to Chicago – STEP 4
STEP 4 – Determine research design
With the problem statement they are currently using, my
friends would be best off trying exploratory research. They
could conduct individual interviews with friends and family
members and consult secondary sources (travel blogs, travel
books, message boards, etc) to obtain enough information to
feel relatively confident about their decision.
But could they also try descriptive or causal research?
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13. Trip to Chicago – STEP 4 (cont’d)
If they found at the end of their exploratory research that
they needed to get more data through descriptive research,
they could retain their problem statement and adjust their
research objectives:
Expense: Determine the average trip price for someone for
someone from the St. Louis area who is visiting Chicago for a
weekend.
Attractions: Determine the highest-rated attractions that St.
Louis area residents enjoy in Chicago.
Satisfaction: Assess the average level of satisfaction that St.
Louis area residents feel after a trip to Chicago.
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14. Trip to Chicago – STEP 4 (cont’d)
If they found at the end of their exploratory research that
they needed to get more data through causal research to
understand how much money a person needs to spend to
have a good time in Chicago, they might want to reword their
problem statement to say:
“We need to conduct research to determine how much
money we need to spend on our trip and how many
attractions we need to visit to have a great time.”
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15. Trip to Chicago – STEP 4 (cont’d)
Then, they could redefine their research objectives to be
more causal in design.
Expense vs Satisfaction: Determine if there is a causal link
between how much money an individual spends on a trip to
Chicago and how high his or her satisfaction is with that trip.
Attractions vs Satisfaction: Determine if there is a causal link
between which attractions an individual visits in Chicago and
how high his or her satisfaction is with that trip.”
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16. Trip to Chicago – STEP 4 (cont’d)
You should note that while it’s possible to conduct all three
types of research for this scenario, the problem statement
has to be redefined to encompass the type of design.
You’ll also notice that the exploratory design is the most
likely to benefit my friends, and it will probably yield the
most useful information for them.
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17. EXAMPLE 2 – Bad Haircut
You probably noticed that I received a Bad Haircut today. It’s
a common experience for me.
Let’s say I decide to conduct some research to try to
understand why I’m always getting Bad Haircuts. Is it the
service providers, or is it the choices I make?
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18. Bad Haircut – STEP 1
STEP 1 – Establish the need for research
I’m tired of getting Bad Haircuts, so I decide it’s a good idea
to spend some time figuring out how I can get better ones.
Research seems warranted because I don’t trust the people
cutting my hair to be honest with me.
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19. Bad Haircut – STEP 2
STEP 2 – Define the problem
My problem can be defined thusly:
“I need to conduct research to help me decide whether or
not I should change my approach in how I get haircuts.”
The decision involves whether or not I will change my
approach.
The research conducted will help me make that decision.
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20. Bad Haircut – STEP 3
STEP 3 – Establish Research Objectives
Once again, I need to establish the constructs I’ll be looking
into.
Hairdresser skill: I need to understand if skill plays a role in
getting a better haircut.
Hairdresser price: I need to understand if the price I’m
paying is a reliable indicator of the quality of my cut.
Hairdresser style: I need to understand if I’m better off at a
mass market service provider or a more specialized salon.
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21. Bad Haircut – STEP 3 (cont’d)
Let’s turn those into research objectives.
Hairdresser skill: Determine the baseline level of skill
required to give a quality haircut to a man.
Hairdresser price: Determine whether the price of a haircut
has any relationship to the quality of the cut.
Hairdresser style: Determine whether the business model
under which a hairdresser operates has any relationship to
the quality of the cut.
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22. Bad Haircut – STEP 4
STEP 4 – Determine research design
Strictly speaking, this is a straightforward causal project. I’m
attempting to isolate variables that act as predictors of an
outcome – in other words, to prove that if I manipulate
skill, price or style, I can have a measurable effect on quality.
I’d have to conduct such research through a quantitative
study with a causal experimental design. I’d probably have to
interview hundreds of people to assess their perceptions of
quality of a haircut and validate that against expert opinions.
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23. Bad Haircut – STEP 4 (cont’d)
Could I use an exploratory or descriptive style?
Descriptive research would be relatively straightforward
under the problem definition I set, because I’m simply trying
to decide whether or not I need to change my approach.
Exploratory research would probably also work.
Proving cause and effect would be nice, but it’d be difficult.
Let’s look at how I can use these other types of research to
support my decision.
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24. Bad Haircut – STEP 4 (cont’d)
My exploratory design could remove the cause and effect
aspects of my research objectives and just attempt to assess
the opinions of consumers and of experts.
I could conduct some individual interviews, consult expert
secondary sources (journals, trade publications, training
materials, etc.) and even conduct some observational
research with different hairdressers to see if I could observe
any differences in quality.
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25. Bad Haircut – STEP 4 (cont’d)
My descriptive design could remove the cause and effect
aspects of my original research objectives and just rely on
the “wisdom of crowds”.
I could conduct a short survey with people in my extended
social circles to get them to rate their experiences with their
hairdressers. I could then see if there are any statistical
insights that could tell me what the most likely path to
quality would be.
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26. EXAMPLE 3 – CLEAN-O
Let’s talk about our favorite fictitious brand, CLEAN-O, so we
can specifically apply this to marketing research.
Let’s say that we’re the brand managers for CLEAN-O and
that our CMO tells us that we need to conduct research in
2013 to assess CLEAN-O’s brand value versus its competitors.
This is a really tricky assignment, so we need to first ask
ourselves… can research give us this answer, or should we
try to calculate this value using some other data (like market
share or sales numbers?)
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27. CLEAN-O – STEP 1
STEP 1 – Establish the need for research
“Just get to work!” our CMO tells us. So, we’re going to have
to conduct research.
And we realize that, aside from market share and different
dimensions of sales numbers, we have no agreed-upon idea
what our brand means to our customers or how CLEAN-O
differs from its competitors. So we do need research after all.
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28. CLEAN-O – STEP 2
STEP 2 – Define the problem
Yikes! Did you notice something? We don’t actually have a
problem to solve yet. We were just told to do some research.
So, we talk amongst ourselves and realize that not only do
we not know how consumers feel about our brand, but we
haven’t conducted a brand refresh in some time. It might be
a good idea to update our logo and what our brand stands
for.
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29. CLEAN-O – STEP 2 (cont’d)
So, we decide to define our problem this way:
“We need to conduct research to determine whether or not
it is time to refresh our brand and, if so, what steps we need
to take to do so.”
Even though this is a slightly more complex problem
statement, it’s still about a decision (refreshing the brand)
supported by research (about the whether and how of our
decision).
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30. CLEAN-O – STEP 3
STEP 3 – Establish Research Objectives
Our constructs might be:
Brand perceptions: How is the CLEAN-O brand currently
perceived by consumers?
Brand attributes: What do consumers associate with the
CLEAN-O brand?
Brand benefits: What benefits help consumers decide to
consider using CLEAN-O?
Brand distinction: What makes CLEAN-O distinctive from the
competition?
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31. CLEAN-O – STEP 3 (cont’d)
Let’s turn those into research objectives.
Brand perceptions: Determine how consumers perceive the
CLEAN-O brand.
Brand attributes: Determine which attributes consumers
associate with the CLEAN-O brand.
Brand benefits: Determine which benefits consumers
perceive they are receiving from CLEAN-O brand products.
Brand distinction: Determine how CLEAN-O products are
perceived compared to competitors within the category.
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32. CLEAN-O – STEP 4
STEP 4 – Determine research design
Our research problem is broad enough that we can address it
through exploratory and descriptive research quite
easily, though for causal research, we’re going to have to
define our problem a little bit.
Since we’re starting from a point of knowing very little, our
objectives are best-suited for exploratory research right now.
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33. CLEAN-O – STEP 4 (cont’d)
Our exploratory research would likely involve focus groups
and/or in-depth interviews where we ask consumers to help
us to understand the four constructs we’re measuring.
We could also conduct some secondary research on the
product category (scanner data from a syndicated source, or
perhaps one of those syndicated reports about brand
presence), and we could check with our retail partners to see
if we could obtain receipt data reports and other tracking
information to learn more about our customers for context.
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34. CLEAN-O – STEP 4 (cont’d)
From here, we would likely want to move on to descriptive
research, which would allow us to gain statistical insights
about the things we’ve learned during the exploratory phase.
This one’s a no-brainer. We’d conduct a survey with the
general population of consumers and attempt to measure
the most commonly-used brands in the category. We’d use
this data to conduct a brand assessment analysis along our
four constructs.
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35. CLEAN-O – STEP 4 (cont’d)
Let’s say in the descriptive phase we become suspicious that
price has an impact on the perception of effectiveness –
namely, the more a price deviates from the average, the
more likely consumers are to assume it’s a knock-off (low
price) or overpriced (high price), neither of which is
perceived as being the best in quality. Currently, CLEAN-O is
priced about a dollar below the average.
This would be a fruitful area for causal research. We’d
redefine our problem statement to determine if we should
consider changing our price.
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36. CLEAN-O – STEP 4 (cont’d)
This would be a fruitful area for causal research. We’d
redefine our problem statement to determine if we should
consider changing our price to achieve a higher feeling of
effectiveness in consumers. We would also investigate if this
feeling of higher effectiveness would impact intent to
purchase.
We’d also redefine our objectives to talk about investigating
this causal link, and then we’d use a quantitative method to
measure consumer perceptions of quality versus prices paid
for cleaning products, and intent to purchase.
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37. CLOSING NOTES
Remember that when we DEFINE THE PROBLEM, we’re
generally making a decision that’s related to a problem
source (failure to meet objectives or opportunity.)
Note that in all three of the examples I’m citing, we’re talking
about opportunities (defined in your textbook as the
difference between what did happen and what could have
happened, but projected into the future a bit so that we’re
looking at what will happen and what could happen.)
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38. CLOSING NOTES (cont’d)
Let’s try to think of research as being like getting ready for an
expedition into parts unknown.
If we don’t conduct research, we’re doomed to wander and
to merely hope we emerge from the wilderness alive.
If we do conduct research, we can use our steps to ensure
that we have a much more pleasant experience.
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39. CLOSING NOTES (cont’d)
Think of the RESEARCH PROBLEM as being the statement of
“where we’re going” – eventually, all of this activity is going
to lead us to a decision outcome.
The RESEARCH OBJECTIVES provide us with the answer of
“what route we’re going to use to get there.”
The RESEARCH DESIGN helps us to further understand “what
type of vehicle we’re going to use to get us there.”
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