4. Problem Identification/ Definition
• Tasks:
1. Discussions with the DMs., industry experts, analysis
of secondary data and qualitative research.
- to understand the background of the problem by
analyzing the environmental context.
1. Management decision problem and MR problem
2. Approach to the problem
• Objectives, analytical models, RQs., hypotheses,
information needed
1. Research Design
5. Mgmt problem & MR problem
• Should a new product be • To determine consumer
introduced? preferences & purchase
intentions for the proposed
new product.
• To determine the
• Should be advertising
effectiveness of the current
campaign be changed?
advertising campaign
• Should the price be increased?
• To determine the price
elasticity of demand & the
impact on sales & profits of
various price levels
6. Case: Tennis Magazine
• Tennis magazine, a publication of the New York Times co.,
wanted to obtain information about its readers. Though
there were only 7,00,000 subscribers, the magazine had a
readership of 1.6 million in 2003. they hired Signet
Research, independent research company to conduct MR.
the management decision problem was what changes
should be made in Tennis magazine to make it more
appealing to its readers.
7. Case: Tennis Magazine
• The broad MR problem was defined as gathering information
about the subscribers of Tennis magazine. Specific components
of the problem included:
– Demographics: who are the men and women who subscribe to the
magazine?
– Psychological characteristics & Lifestyles: how did the subscribers spend
their money and their free time? Lifestyle indicators to be examined were:
fitness, travel, car rental, apparel, consumer electronics, credit cards and
financial investments.
– Tennis Activity: where and how often do subscribers play tennis? What
are their skill levels?
– Relationship to tennis magazine: how much time do they spend with the
issues? How long do they keep them? Do they share their magazine with
other tennis players?
8. Hypothesis
• A proposition formulated for empirical testing.
• It is tentative in nature
• Statement which assigns variables to cases
• Guides the direction of the study
• 3 conditions
– Adequate for its purpose
– Testable
– Better than other hypotheses
9. Hypothesis
• Types:
– Descriptive
• Propositions which state the existence, size, form or
distribution of some variable.
– E.g.:
» The current literacy rate in Gujarat is 67.4%
» Do kids prefer Cartoon Network over Jetix?
– Relational
• Statements that describe a relationship between two
variables w.r.t. some case
10. Hypothesis
• Types:
– Relational
• Statements that describe a relationship between two
variables w.r.t. some case
– E.G.:
» Foreign banks are considered to be more efficient than
Indian banks (Correlational)
» Increase in disposable income leads to increase in
spending on entertainment & leisure (Causal)
