Market research Process

Step 1
• Problem definition 1

Step 2
• Development of an approach to the problem

Step 3
• Research design formulation

Step 4 • Data Collection

Step 5 • Data preparation and analysis

Step 6 • Report preparation and presentation

7/29/2019
Defining the Marketing
Research Problem and
Developing an
Approach
 Real research: Harley Goes Whole Hog
3

 Important come back in early 2000s (long waiting list to get the bike)
 In 2005, HD revenues exceeded $5 billion with mkt share of about 50% in
the heavy weight category.
 Considering this, distributers urged HD to build more motorcycle. But HD
was skeptical about investing in new production facilities.
 More risk and a concern that would the demand follow in the long run or
customers stop wanting HD when the next fad came along?
 Top management was afraid that the decision to invest was too early. On
the other hand investing would help HD expand & become the
unquestioned market leader.

7/29/2019
 Problem identification study
4

 Discussions with industry experts indicated brand loyalty as a major

influencing the sales and repeat sales.
 Secondary data revealed that the vast majority of motorcycle owners
also owned automobiles such as cars, SUVs etc.
 Focus group with motorcycle owners further indicated that bikes were
not used as a primary mean of transportation but as a mean of
recreation.
 Forecasts called for an increase in consumer spending on recreation
and entertainment well into the year 2010

7/29/2019
 5

 This process and findings that emerged helped define the management
decision problem (MDP) & the marketing research problem (MRP).
 MDP: Should Harley Davidson invest to produce more motorcycles?
 MRP: to determine if customers would be loyal buyers of HD in long run.
 Specifically, the research had to address the following questions:

1. Who are the customers? What are their demographic & psychographic characteristics?
2. Can different types of customers be distinguished? Is it possible to segment the market in
a meaningful way?
3. How do customers feel regarding their Harleys? Are all the customers motivated by the
same appeal?
4. Are the customers loyal to HD? What is the extent of brand loyalty?
7/29/2019
 6

 Based on the research questions following hypotheses were formulated:

 H1: there are distinct segments of motorcycle buyers
 H2: each segment is motivated to own a Harley for a different reason
 H3: Brand loyalty is high among Harley Davidson customers in all segments
“The research was guided by the theory that brand loyalty is the result of
positive beliefs, attitude, affect and experience with the brand”
 Both qualitative and quantitative research were conducted
 First, focus groups of current owners, would-be owners & owners of other
brands were conducted to understand their feelings about HD
 Then 16000 surveys were mailed to get the psychological, sociological and
demographic profiles of customers

7/29/2019
 Major findings:
7
 Seven categories of customers would be distinguished: (1) the adventure-loving
traditionalist (2)the sensitive pragmatist (3) the stylish status seeker (4) the
laid back camper (5) the classy capitalist (6) the cool-headed loner (7) the
cocky misfit …. Thus, H1 was supported
 All customers, however, had the same desire to own a Harley: It was a symbol
of independence, freedom and power (this uniformity across segments was
surprising, contradicting H2)
 All customers were long term loyal customers of Harley Davidson, supporting
H3
Based on these findings, the decision was taken to invest and in this way to
increase the number of Harleys built.
This example shows the importance of correctly defining the marketing research
problem and developing an appropriate approach.
7/29/2019
 Importance of Defining the Problem
8

• Problem definition involves stating the general marketing research

problem and identifying its specific components.

• Only when marketing research problem has been clearly defined can research

be designed and conducted properly.

• Inadequate problem definition is a leading cause of failure of marketing

research project.

• Better communication and more involvement in problem definition are the

most frequently mentioned ways of improving the usefulness of research.

 The Problem Definition and Approach Development Process

Tasks Involved

Discussions with Interviews with Secondary Data Qualitative

Decision Makers Experts Analysis Research

Environmental Context of the Problem

Step 1: Problem Definition

Management Decision Problem

Marketing Research Problem

Step 2: Approach to the Problem

Analytical Framework Research Specification of

and Models Questions and Hypotheses Information Needed

Step 3: Research
9 Design
The Process of Defining the Problem and Developing an
Approach

• Tasks Involved
 Discussions with Decision Maker(s)

 Interviews with Experts

 Secondary Data Analysis

 Qualitative Research

• Environmental Context of the Problem

 a. Discussions with the Decision Maker
11

• The decision maker DM needs to understand the capabilities and

limitations of research.

• Research provides information relevant to management decisions, but it

cannot provide solutions, because solutions require managerial judgment.

• Conversely, the researcher needs to understand the nature of what

decisions managers face - the management problem - and what they

hope to learn from the research
 Problem Audit
12

• The problem audit provides a useful framework for interacting with the

DM and identifying the underlying causes of the problem.

• The problem audit, is a comprehensive examination of a marketing

problem with the goal of understanding its origin and nature.

• It is important to perform a problem audit because the DM, in most cases,

has only a vague idea of what the problem is.

 Problem Audit
13

• The problem audit involves discussions with the DM on the following

issues:
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.
 Question
14

 As a brand manager for Sprite, the sixth largest soft drink brand, you are

concerned about improving the performance of the brand. Identify possible

symptoms that indicate to you that the performance of Sprite is
below expectations.

 You are conducting marketing research for Sprite to help improve the

performance of the brand. Identify possible underlying causes that

might be contributing to the lack of performance.
 b. Interviews with Industry Experts
15

• Interviews with industry experts, individuals knowledgeable about

the firm and the industry, may help formulate the marketing research
problem.
• These experts may be found both inside and outside the firm.

• Typically, expert information is obtained by unstructured personal

interviews, without administering a formal questionnaire.
• The purpose of interviewing experts is to help define the marketing
research problem rather than to develop a conclusive solution.
 Two Potential Difficulties of Seeking Advice from
Experts
16

1. Some individuals who claim to be knowledgeable and are eager

to participate may not really posses expertise.
2. It may be difficult to locate and obtain the help from experts
who are outside the client organization.
For these reasons, interviews with experts are more useful in
conducting marketing research for industrial firms and for
product of a technical nature, where it is relatively easy to
identify and approach the experts.
 Ex. The repositioning of diet cherry coke
17

 Facts worlds leading manufacturer, marketer and distributor of non-

alcoholic beverages to over 200 countries with approx 400 products
 Sales od diet cherry coke had been languishing
 Industry expert consultation: diet cherry coke was not positioned
correctly
 They emphasized that brand image was a key factor influencing soft
drink sales and diet cherry coke was perceived as conventional and old-
fashioned, an image inconsistent with that of cherry coke

7/29/2019
 18

 The MRP was identified as measuring the image and positioning

of diet cherry coke.
 The research undertaken confirmed the diagnosis of the industry experts
and provided several useful insights.
 Based on the results, the product was repositioned to align it more closely
to the image of cherry coke. The aim was to target younger drinkers
 The packaging was remade. Bolder, edgy graphics were used.
 Sales have shown upward trajectory since, thanks to the industry experts
who helped identify the real problem

7/29/2019
 19

The diet cherry coke example points to the key role of industry experts.

However, information obtained from the DM and industry experts

should be supplemented with the available secondary data.

7/29/2019
 c. Secondary Data Analysis
20

• Primary data, are collected or produced by the researcher for the

specific purpose of addressing the research problem.

• Secondary data are:

• data collected for some purpose other than the problem at hand.

• include information made available by business and government sources,

commercial marketing research firms and computerized databases.

• an economical and quick source of background information.

 d. Qualitative Research
21

• Sometimes qualitative research must be undertaken to gain

an understanding of the problem and its underlying factors.
• Qualitative research is unstructured, exploratory in nature, based
on small samples, and may utilize popular qualitative
techniques such as
• focus group (group interviews),
• word association (asking respondents to indicate their first
response to stimulus words), and
• depth interviews (one-on-one interviews that probe the
respondents’ thought in detail).
 22

 Pilot surveys
 Surveys that tend to be less structured than large-scale surveys in that they generally
contain more open ended questions and sample size is much smaller.

 Case studies
 Case studies involve an intensive examination of a few selected cases of the
phenomenon of interest.
 Cases could be customers, stores or other units.
Ex…P & G’s Peep into Privacy
23

7/29/2019
 The Problem Definition and Approach Development Process

Tasks Involved

Discussions with Interviews with Secondary Data Qualitative

Decision Makers Experts Analysis Research

Environmental Context of the Problem

Step 1: Problem Definition

Management Decision Problem

Marketing Research Problem

Step 2: Approach to the Problem

Analytical Framework Research Specification of

and Models Questions and Hypotheses Information Needed

Step 3: Research
24 Design
 Environmental Context of the Problem
25
• To understand the background to a marketing research problem, the researcher
must understand the client’s firm and industry.
• In particular, the researcher analyze the factors that have an impact on the definition
of the marketing research problem such as:
• past information and forecast pertaining to the industry and the firm;
• resources and constraints of the firm;
• objective of the decision maker;
• buyer behavior;
• legal environment;
• economic environment; and
• marketing and technological skills of the firm.
 Management Decision Problem and Marketing Research Problem
26

• The management decision problem asks what the DM needs to

do, whereas the marketing research problem ask what
information is needed and how it can best be obtained.
• Research can provide the necessary information to make a sound
decision.
• Whereas the management decision problem focuses on symptoms,
the marketing research problem focuses on underlying causes.
• The management decision problem is action oriented. It is
concerned with the possible actions the DM could take.
• How should the loss of market share be arrested?
• Should the market be segmented differently?

**DM-Decision Maker
 Management Decision Problem versus Marketing
Research Problem
27

Management decision problem Marketing research problem

• Asks what the decision maker • Asks what information is needed

needs to do and how it should be obtained
• Action oriented • Information oriented
• Focuses on symptoms • Focuses on the underlying
causes

……
Management Decision Problem versus Marketing Research Problem
Examples

Management decision problem Marketing research problem

• Should a new product be introduced? • To determine consumer preferences and

purchase intentions for the proposed new
product.
• Should the advertising campaign be
• To determine the effectiveness of the
changed?
current advertising campaign
• To determine the price elasticity of
• Should the price of the brand be demand and the impact on sales and
increased? profits of various levels of price changes
 Defining the Marketing Research Problem
29

• The general rule to be followed in defining the research

problem is that the definition should:
1. Allow the researcher to obtain all the information needed to address
the management decision problem.

2. Guide the researcher in proceeding with the project.

 Defining the Marketing Research Problem (Cont)
30

• Two common errors in problem definition: too broadly definition and

too narrowly definition.

• A broad definition does not provide clear guidelines for the

subsequent steps involve in the project.

• A narrow focus may preclude consideration of some courses of action,

particularly those that are innovative and may not be obvious.
 Errors in Defining the Market Research Problem

Common Errors

Problem Definition is too Problem Definition is too

Broad Narrow
•Does Not Provide •May Miss Some Important
Guidelines for Subsequent Components of the Problem
Steps •e.g. Changing Prices in
•e.g., Improving the Response to a Competitor’s
Company’s Image Price Change.

31
“Bad” vs. “Good” Research Questions

 Research questions should be stated as clearly as possible

 “Bad” research question
 Is advertising copy X better than advertising copy Y?
 “Good” research question
 Which advertising copy has a higher day-after recall score?

32
 The Broad Statement and The Specific Component
33

• The Broad Statement provides perspective on the problem and

act as a safeguard against committing the second type of error
(define the marketing research problem too narrowly).

• The Specific component focus on the key aspects of the problem

and provide clear guidelines on how to proceed further, thereby
reducing the likelihood of the first type of error.
 34

Marketing research
problem

Broad statement

Specific components

Component 1 Component 2 Component n

Ex..1
 MR problem:: determine the relative strengths & weaknesses of a
department store Big bazaar vis-à-vis other major competitors with
respect to factors that influence store patronage.
 Research should provide info. on following questions:
1. What criteria do household use when selecting stores?
2. How do household evaluate Big bazaar and competing stores in terms of the
choice criteria identified in previous question?
3. Which stores are patronized when shopping for specific product categories?
4. What is the market share of Big bazaar for competitors for specific product
categories?
5. What is the demographic & psychographic profile of the customers? Does it differ
from the profile of the customers of the competing stores?
6. Can store patronage and preference be explained in terms of store evaluations
and customer characteristics?
 Ex..2 Major League Baseball(MLB) Majors in Research
36

 MLB wanted to evaluate the effect of the size and frequency of its
non-price promotions [ex. sampling, gift cards, cross selling, upselling
] for MLB games

 Mgt Decision Problem:: Should MLB teams continue with non-price

promotions?

 The broad marketing research problem was defined as :: determining

the impact of non-price promotions on attendance at MLB games.
 37

 This research should answer the following questions

1. What is the overall effect of non-price promotions on attendance ?

2. What is the marginal impact on attendance of additional promotional

days?

3. Are non-price promotions effective in building long-term loyalty?

4. What are the demographic and psychographic characteristics of people

who respond to non-price promotions?
 38
 Analysis of a data set containing 2500 observations revealed that non-price
promotion increases single game attendance by about 14%.
 Additionally, increasing the number of promotions has a negative effect on the
marginal impact of each promotion.
 Promotion most influences occasional attendees but does not provoke long-term
loyalty
 Based on these findings, strategic decisions were taken to improve overall revenue
by continuing non-price promotions, especially during the off-season and games
for which sales-projections were not impressive.
 The research results also led to the decision to spread out promotions to reduce
the watering down effect.
 A correct definition of the problem led to useful findings that when implemented
resulted in increased revenue.
7/29/2019
State research problems for each of the following management
decision problem:
39

 Should the in-store promotion for an existing product line be

increased?

 What pricing strategy should be adopted for a new product?

 Should the compensation package be changed to motivate the sales

force better?

7/29/2019
State management decision problem for which the following
research problems might provide useful information:
40

a. Estimate the sales and market share of the department stores in a certain
metropolitan area

b. Determine the design features for a new product that would result in maximum
market share

c. Evaluate the effectiveness of alternative TV commercials

d. Assess current and proposed sales territories with respect to their sales potential
and workload

e. Determine the prices for each item in a product line so as to maximize total sales
for the product line.
7/29/2019
 The Problem Definition and Approach Development Process

Tasks Involved

Discussions with Interviews with Secondary Data Qualitative

Decision Makers Experts Analysis Research

Environmental Context of the Problem

Step 1: Problem Definition

Management Decision Problem

Marketing Research Problem

Step 2: Approach to the Problem

Analytical Framework Research Specification of

and Models Questions and Hypotheses Information Needed

Step 3: Research
41 Design
 Components of the Approach
42

• In the process of developing an approach, we must not lose sight of

the goal - the outputs.
• The outputs of the approach development process should include
the following components:
1. Objective/theoretical framework
2. Analytical models
3. Research Questions
4. Hypotheses, and
5. Specification of Information Needed.
 1. Objective/Theoretical Framework
43

• In general, research should be based on objective evidence and

supported by theory.
• A theory is conceptual scheme based on foundational statements
called axioms, which are assumed to be true.
• Objective evidence (that is unbiased and supported by empirical
findings) is gathered by compiling relevant findings from secondary
sources.
• The researcher should rely on theory to determine which variables
should be investigated.
The Role of Theory in Applied Marketing Research
44

• Conceptualizing and identifying key variables (IV and DV).

• Operationalizing key variables.
• Selecting a research design.
• Selecting a sample.
• Analyzing and interpreting data.
• Integrating findings.
 Example of store patronage conti..
45

 The store patronage project illustrates how theory can develop an approach
 Review of the retailing literature revealed that the modeling of store patronage in
terms of choice criteria had received considerable support
 Furthermore as many as 42 choice criteria had been identified in the literature, &
guidelines on operationalizing these variables were provided.
 This provided an initial pool from which final 8 characteristics included in the
questionnaire were selected
 Theoretical considerations also suggested that store behavior could be examined
via a survey of respondents familiar with a particular type of store shopping
(organized, department, supermarket)

7/29/2019
 2.Analytical Models
46

• Analytical model. An explicit specification of a set of variables and their

relationships designed to represent some real system or process in whole or
in part. Models can have many different forms such as: verbal, graphical, an
mathematical structure.
• Verbal model. Analytical models that provide a written representation of the relationships
among variables.

• Graphical model. Analytical models that provide a visual picture of the relationships
among variables.

• Mathematical model. Analytical models that explicitly describe the relationships among
variables, usually in equation form.
 Ex.. Model Building
47

 Verbal Model
 A consumer first becomes aware of a department store.

 That person then gain an understanding of the store by evaluating the store
in terms of the factors comprising the choice criteria.

 Based on the evaluation, the consumer forms a degree of preference for the
store.

 If preference is strong enough, the consumer will patronize the store

 Ex.. Model Building conti.
48

 Graphical Model Awareness

Understan
ding:
Evaluation

Preference

Patronage
 Ex.. Model Building conti.
49

 Mathematical Model
𝑛

y = 𝑎0 + ෍ 𝑎𝑖 𝑥𝑖
𝑖=1
Where,
y= degree of preference
𝑎0 , 𝑎𝑖 = model parameters to be assigned statistically
𝑥𝑖 = store patronage factors that constitute the choice criteria
 50

 In the Harley Davidson example, the underlying theory was that

brand loyalty is the result of positive beliefs, attitude, affect, and
experience with the brand…….. This is the verbal model

 Students provide the graphical model…

 3.Research Questions
51

• Research questions are refined statements of the specific

components of the problem.
• The components of problem define the problem in specific terms,
but further detail may be needed to develop an approach.
• Each component of the problem, may have to be broken down into
subcomponent or research questions.
• Research questions ask what specific information is required with
respect to the problem components.
• Information obtained using research questions should aid the
decision maker.
 52

 MR problem:: determine the relative strengths & weaknesses of a department

store sears/walmart vis-à-vis other major competitors with respect to factors
that influence store patronage.
 Research should provide info. on following questions:
1. What criteria do household use when selecting stores?
2. How do household evaluate and competing stores in terms of the choice criteria identified
in previous question?
3. Which stores are patronized when shopping for specific product categories?
4. What is the market share of Big bazaar for competitors for specific product categories?
5. What is the demographic & psychographic profile of the customers? Does
it differ from the profile of the customers of the competing stores?
6. Can store patronage and preference be explained in terms of store evaluations and
customer characteristics?
7/29/2019
 Example….
53

 Sears/Walmart/Big Bazaar: Psychological profile of the customers.

 In context of psychological characteristics, several research questions
were asked about the customers
 Do they exhibit store loyalty?
 Are they heavy users of credit?
 Are they more conscious of personal appearance as compared to customers of
competing stores?
 Do they combine shopping with eating out?
 54

• The formulation of the research questions should be guided not

only by the problem definition, but also by the theoretical
framework and the analytical model adopted.
• The theoretical framework and the analytical model play a
significant role in the operationalization and measurement of
variables specified by the research questions.
• The research questions were further refined by precisely defining
the variables and determining how they were to be operationalized.
 55

 The research questions were then further refined by precisely defining the
variables and determining how they were to be operationalized. To
illustrate, how should the use of Sears credit be measured?

1. Whether customer holds a Sears Credit card

2. Whether customer uses the Sears Credit card
3. The number of times the Sears credit card was used in a specified time
period
4. The amount charged to the credit card during a specific time period
4.Hypotheses 56

• A hypothesis (H) is an unproven statement or proposition about a

factor or phenomenon that is of interest to the researcher.
• It may be a tentative statement about relationship between two or more
variables as stipulated by the theoretical framework or the analytical
model.
• Often, a hypothesis is a possible answer to the research question.

• An important role of a hypothesis is to suggest variables to be included

in the research design.
 Hypotheses Vs Research Question
57

 Hypotheses go beyond research questions because they are statement

of relationships or propositions rather than merely questions to which
answers are sought.
 Where the research questions are interrogative, hypotheses are
declarative and can be tested empirically.
Hypotheses
58

RQ: Do they(customers) combine shopping with eating out?

H: Customers combine shopping with eating out.
H1: Customers combine shopping with eating out when they are with
friends/spouse/relatives
H2: Customers combine shopping with eating out on weekend.
• Hypotheses are an important part of the approach to the problem.

Components of the
Objective/ Marketing Research Problem Development
Theoretical of Research
Framework Questions
Research Questions
and
Analytical
Model Hypotheses
Hypotheses
 More specific
59

Research question: Do they(customers) 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 non-loyal
customers

These hypotheses guided the research by ensuring that variables measuring

knowledge of the shopping environment and propensity to take risks were
included in the research design.
 Ex’..Research questions and associated hypotheses
60

RQ1: what foods are considered to be comfort food?

H1: Potato chips are considered comfort food
H2: ice cream is are considered comfort food

RQ2: When do people eat comfort food?

H3: People eat comfort foods when they are in a good mood
H4: People eat comfort foods when they are in a bad mood

RQ3: How do people become attached to comfort foods?

H5:People are attached to comfort foods that are consistent with their
personality.
H6:People are attached to comfort foods because of past associations
7/29/2019
Analytical Framework & Models
 Research questions & hypotheses are developed within analytical
frameworks
 Basically, theories & models
 Theory suggests that satisfaction improves morale & perceptions
 A sales manager who wants to increase market share (management
problem) may
 Ask how to encourage salespeople to generate more sales (research question)
 State that (based on theory) higher job satisfaction leads to greater sales
productivity (hypothesis)
Your turn- Based on the below information develop two
research questions, each with two hypotheses.
62

Harley Davidson
 MR Problem: to determine if customers would be loyal buyers of
Harley Davidson in long term
 Research should provide info on following questions:
1. Who are the customers? What are their demographic & psychographic
characteristics?
2. Can different types of customers be distinguished? Is it possible to segment
the market in a meaningful way?
3. How do customers feel regarding their Harley Davidson?
4. Are the customers loyal to Harley Davidson? What is the extent of Brand
Loyalty?
5. Specification of Information Needed
63

• By focusing on each component of the problem and the

analytical framework and models, research questions, and
hypotheses, the researcher can determine what information
should be obtained in the marketing research project.
• It is helpful to carry out this exercise for each component of the
problem and make a list specifying all the information that
should be collected.
 64
 MR problem:: determine the relative strengths & weaknesses of a department
store sears/walmart vis-à-vis other major competitors with respect to factors
that influence store patronage.
 Research should provide info. on following questions:
1. What criteria do household use when selecting stores?
2. How do household evaluate and competing stores in terms of the choice criteria identified
in previous question?
3. Which stores are patronized when shopping for specific product categories?
4. What is the market share of Big bazaar for competitors for specific product categories?
5. What is the demographic & psychographic profile of the customers? Does it differ from the
profile of the customers of the competing stores?
6. Can store patronage and preference be explained in terms of store evaluations and
customer characteristics?
Chapter 2 7/29/2019
 Example
 Component 1: Involves criteria households
65 use to select a store….
 The researcher identified following factors as a part of choice criteria 1)quality of
merchandise, 2)Variety & assortment 3)returns & adjustment policy 4)service of store
personnel 5)Prices 6)convenience of location 7)layout of store 8)credit & billing
policies
 The respondents should be asked to rate the importance of each factor as it influences
their store selection.

 Component 2: concerned with Competition

 The researcher identified nine department stores as competitors of Big bazaar based
on discussion with management
 The respondent should be asked to evaluate Big bazaar & its nine competitors on the
eight choice criteria factors.
 Component 3: Specific product categories
 11 different product categories were selected including 1)women’s dresses
66
2)women’s sportswear 3)body fashion 4)junior merchandise 5)men’s apparel
6)cosmetics 7)jewelry 8)shoes 9)sheets & towels 10) furniture & bedding
11)draperies
 The respondent should be asked whether they shop at each of the 10 stores
for each of the 11 product categories.
 Component 4 : no additional information needs to be obtained from the
respondents
 Component 5: demographic & psychographic characteristics
 The researcher identified following psychographic characteristics as
relevant: store loyalty, credit use, appearance consciousness, & combining
shopping with eating
 Components 6: : no additional information needs to be obtained from the
respondents
 The Problem Definition and Approach Development Process

Tasks Involved

Discussions with Interviews with Secondary Data Qualitative

Decision Makers Experts Analysis Research

Environmental Context of the Problem

Step 1: Problem Definition

Management Decision Problem

Marketing Research Problem

Step 2: Approach to the Problem

Analytical Framework Research Specification of

and Models Questions and Hypotheses Information Needed

Step 3: Research
67 Design
 68

The entire example starting with

MRP,
broad questions,
theoretical framework,
research questions,
hypothesis,
and specific components

7/29/2019
 International marketing research
69

 The precise definition of the marketing research problem is more

difficult in international marketing research than in domestic market
research.
 Unfamiliarity with the environmental factors of the country where the
research is being conducted can greatly increase the difficulty of
understanding the problem’s environmental context and uncovering
the causes
 The following steps help researchers account for environmental and cultural differences when
defining the problem in an international marketing context:
70
 Step 1: define the marketing research problem in terms of domestic environmental and
cultural factors. This involves an identification of relevant country’s traits, economics, values,
needs or habits
 Step 2: Define the marketing research problem in terms of foreign environmental & cultural
factors. Make no judgments.
This involves an identification of the related traits, economics, values, needs or habits in
the proposed market culture. This tasks requires inputs from researchers familiar with
the foreign environment
 Step 3: Isolate the self-reference-criterion (SRC) influence on the problem and examine it
carefully to see how it complicates the problem. Examine the difference between step 1 &2. the
SRC can be seen to account for these differences.
 Step 4: redefine the problem without the SRC influence and address it for the foreign market
situation. If the differences in step 3 are significant, the impact of the SRC should be carefully
considered.
 Consider the broad problem of the Coca-Cola company trying to increase its
penetration of the soft-drink market in71India.
 In step 1, the problem of increasing market penetration in US would be
considered. In the US, virtually all households consume soft drinks and the
problem would be to increase the soft drink consumption of existing
consumers. (consumed with meals and thirst quenchers )
 Step 2: In India, a much smaller % of households consume soft drinks & not
consumed with meals
 Step 3: SRC can be identified as the American notion that soft drinks are all-
purpose, all –meal beverage
 Step 4: how to get a greater % of Indian consumers to consume soft drinks
(coca-cola product) & how to get them to consume soft drinks more often for
personal consumption
 Beware the Iceberg!

 The Iceberg Principle

 The dangerous part of many marketing problems is neither visible to nor
understood by many marketing managers.
 “Submerged” parts of the problem must be understood and including in the
research design for the research to be useful.

72
 Symptoms vs. Problems

 Microbrewery
 Symptom
 Consumers prefer the taste of competitor’s brand
 Problem Definition [PD] based on the Symptom
 What type of reformulated taste is needed?
 True Problem
 Old-fashioned package influenced taste perception

73
 Symptoms vs. Problems
 Manufacturer of palm-size computers with Internet access
 Symptom
 Distributors complain prices are too high
 PD based on the Symptom
 Investigate business users to learn how much prices need to be reduced
 True Problem
 Distributors do not have adequate product knowledge to communicate product’s
value

74
Translating Research Problems into Research
Questions

 Research Problem
 Determine the best ways the firm can communicate with potential purchasers of
laptop computers
 Research Questions
 How familiar are consumers with the various brands of computers?
 What attitudes do consumers have toward these brands?
 How important are the various factors for evaluating the purchase of a laptop
computer?
 How effective are the communications efforts of the various competitive marketers
in terms of message recognition?

75
 Putting It All Together
• Management Problem
• What price should we charge for our new product?
• Research problem:
– Estimate the effective pricing strategy considering the competition and product value.
• Research questions
– What are our costs of production and marketing ?
– What are our pricing objectives and position in the market?
– What price does similar types of products sell for?
– What is the perceived value of our product in the marketplace?
– Are there any norms or conventional practices in the marketplace? (e.g., customary prices,
continual discounting)
• Research Objectives
– To assess the costs involved in producing and selling our product
– To determine corporate objectives and their implications for pricing
– To examine current prices for direct and indirect competition
– To determine potential customer reaction to various prices and their perception of the
benefits of owning the product 76
77

7/29/2019