Marketing Research: An Applied Orientation
Seventh Edition, Global Edition
Chapter 2
Defining the Marketing
Research Problem and
Developing an Approach
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Chapter Outline (1 of 4)
1) Overview
2) Importance of Defining a Problem
3) The Process of Defining the Problem and Developing an
Approach
4) Tasks involved in Problem Definition
I. Discussions with Decision Makers
II. Interviews with Industry Experts
III. Secondary Data Analysis
IV. Qualitative Research
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Chapter Outline (2 of 4)
5) Environmental Context of the Problem
I. Past Information and Forecasts
II. Resources and Constraints
III. Objectives
IV. Buyer Behavior
V. Legal Environment
VI. Economic Environment
VII.Marketing and Technological Skills
6) Management Decision Problem and Marketing Research
Problem
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Chapter Outline (3 of 4)
7) Defining the Marketing Research Problem
8) Components of an Approach
I. Objective / Theoretical Foundations
II. Analytical Model
III. Research Questions
IV. Hypothesis
V. Specification of Information Needed
9) International Marketing Research
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Chapter Outline (4 of 4)
10) Marketing Research & Social Media
11) Mobile Marketing Research
12) Ethics in Marketing Research
13) Summary
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Chain Restaurant Study (1 of 4)
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.
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Chain Restaurant Study (2 of 4)
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,
What is the problem being addressed?
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Chain Restaurant Study (3 of 4)
When he looked perplexed, I explained that data analysis is
not an independent exercise.
Rather, the goal of data analysis is to PROVIDE
INFORMATION RELATED TO THE PROBLEM
COMPONENTS.
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Chain Restaurant Study (4 of 4)
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 define 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.
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The Problem Definition Process
Figure 2.1 The Process of
Defining the Problem and
Developing an Approach
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Tasks Involved in Problem Definition
• Discussions with Decision Makers
• Interviews with Industry Experts
• Secondary Data Analysis
• Qualitative Research
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The Problem Audit
The problem audit is a comprehensive examination of a
marketing problem with the purpose of understanding its
origin and nature.
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
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The Seven Cs of Interaction
The interaction between the DM and the researcher should
be characterized by the seven Cs:
1. Communication
2. Cooperation
3. Confidence
4. Candor
5. Closeness
6. Continuity
7. Creativity
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Factors to be Considered in the
Environmental Context of the Problem
Figure 2.2 Factors to Be
Considered in the
Environmental Context of
the Problem
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Management Decision Problem Vs.
Marketing Research Problem
Table 2.1 Management Decision Problems Versus the
Marketing Research Problem
Management Decision Problem Marketing Research Problem
Asks what the decision maker needs Asks what information is needed and
to do how it should be obtained
Action oriented Information oriented
Focuses on symptoms Focuses on the underlying causes
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Proper Definition of the Research Problem
Figure 2.3 Proper Definition of the Marketing Research
Problem
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Department Store Project
Problem Definition
In the department store project, the marketing research
problem is to determine the relative strengths and
weaknesses of Sears, vis-à-vis other major competitors, with
respect to factors that influence store patronage. Specifically,
research should provide information on the following
questions.
1. What criteria do households use when selecting department stores?
2. How do households evaluate Sears and competing stores in terms of the
choice criteria identified in question 1?
3. Which stores are patronized when shopping for specific product categories?
4. What is the market share of Sears and its competitors for specific product
categories?
5. What is the demographic and psychological profile of the customers of Sears?
Does it differ from the profile of customers of competing stores?
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Components of an Approach
• Objective/Theoretical Foundations
• Analytical Model
• Research Questions
• Hypotheses
• Specification of the Information Needed
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The Role of Theory in Applied Marketing
Research
Research Task Role of Theory
1. Conceptualizing and Provides a conceptual foundation and understanding of the basic
identifying key variables processes underlying the problem situation. These processes will
suggest key dependent and independent variables.
2. Operationalizing key Theoretical constructs (variables) can suggest independent and
variables dependent variables naturally occurring in the real world.
3. Selecting a research Causal or associative relationships suggested by the theory may
design indicate whether a causal or descriptive design should be adopted.
4. Selecting a sample The theoretical framework may be useful in defining the population
and suggesting variables for qualifying respondents, imposing
quotas, or stratifying the population (see Chapter 11).
5. Analyzing and interpreting The theoretical framework (and the models, research questions,
data and hypotheses based on it) guide the selection of a data analysis
strategy and the interpretation of results (see Chapter 14).
6. Integrating findings The findings obtained in the research project can be interpreted in
the light of previous research and integrated with the existing body
of knowledge.
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Models
An analytical model is a set of variables and their
interrelationships designed to represent, in whole or in part,
some real system or process.
In verbal models, the variables and their relationships are
stated in prose form. Such models may be mere
restatements of the main tenets of a theory.
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Graphical Models
Graphical models are visual. They are used to isolate
variables and to suggest directions of relationships but are
not designed to provide numerical results.
Awareness
Understanding: Evaluation
Preference
Patronage
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Mathematical Models
Mathematical models explicitly specify the relationships among
variables, usually in equation form.
n
y = a0 + åi= 1
ai xi
Where
y = degree of preference
a0, ai = model parameters to be estimated statistically
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Development of Research Questions and
Hypotheses
Figure 2.4 Development of Research Questions and
Hypotheses
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Research Questions and Hypotheses
• Research questions (RQs) are refined statements of the
specific components of the problem.
• A hypothesis (H) is an unproven statement or proposition
about a factor or phenomenon that is of interest to the
researcher. Often, a hypothesis is a possible answer to the
research question.
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Department Store Project (1 of 4)
• RQ: Do the customers of Sears 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 are
non-loyal customers.
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Department Store Project (2 of 4)
Specification of Information Needed
Component 1
• The researcher identified the following factors as part of the choice
criteria: quality of merchandise, variety and assortment of
merchandise, returns and adjustment policy, service of store
personnel, prices, convenience of location, layout of store, credit and
billing policies. The respondents should be asked to rate the
importance of each factor as it influences their store selection.
Component 2
• The researcher identified nine department stores as competitors to
Sears based on discussions with management. The respondents
should be asked to evaluate Sears and its nine competitors on the
eight choice criteria factors.
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Department Store Project (3 of 4)
Component 3
• 16 different product categories were selected, including women's
dresses, women's sportswear, lingerie and body fashion, junior
merchandise, men's apparel, cosmetics, jewelry, shoes, sheets and
towels, furniture and bedding, and draperies. The respondents should
be asked whether they shop at each of the 10 stores for each of the 16
product categories.
Component 4
• No additional information needs to be obtained from the respondents.
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Department Store Project (4 of 4)
Component 5
• Information should be obtained on the standard
demographic characteristics and the psychographic
characteristics of store loyalty, credit use, appearance
consciousness, and combining shopping with eating.
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At United, Food Is Uniting the Airline with
Travelers (1 of 7)
United Airlines, as other major airlines, had to deal with
passenger loyalty (management decision problem: how to
attract more and more loyal passengers). The broad
marketing research problem was to identify the factors that
influence loyalty of airline travelers.
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At United, Food Is Uniting the Airline with
Travelers (2 of 7)
The basic answer is to improve service. Exploratory
research, theoretical framework, and empirical evidence
revealed that the consumers’ choice of an airline is
influenced by: safety, price of the ticket, frequent-flyer
program, convenience of scheduling, and brand name.
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At United, Food Is Uniting the Airline with
Travelers (3 of 7)
A graphical model stipulated that consumers evaluate
competing airlines based on factors of the choice criteria to
select a preferred airline. The problem was that major
airlines were quite similar on these factors. Indeed, "airlines
offer the same schedules, the same service, and the same
fares.” Consequently, United Airlines had to find a way to
differentiate itself. Food turned out to be the solution.
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At United, Food Is Uniting the Airline with
Travelers (4 of 7)
Secondary data, like the J. D. Power & Associates' survey on
"current and future trends in the airline food industry,"
indicated that "food service is a major contributor to
customers’ loyalty." This survey also emphasized the
importance of food brands.
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At United, Food Is Uniting the Airline with
Travelers (5 of 7)
The airline's Marketrak survey told United Airlines that
"customers wanted more varied and up-to-date food.”
The following research questions and hypotheses may be
posed.
RQ1: How important is food for airline customers?
H1: Food is an important factor for airline travelers.
H2: Travelers value branded food.
H3: Travelers prefer larger food portions, but with
consistent quality.
H4: Travelers prefer exotic food.
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At United, Food Is Uniting the Airline with
Travelers (6 of 7)
Characteristics that influence the research design included
the identification of competing airlines (Delta, American,
etc.), factors of the choice criteria (already identified),
measurement of airline travel, and loyalty.
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At United, Food Is Uniting the Airline with
Travelers (7 of 7)
This kind of research helped United Airlines define their
marketing research problem and develop the approach.
Focus groups and surveys were conducted to check
customers' perceptions of food in United Airlines' aircrafts.
The results provided support for all the hypotheses (H1 to
H4). United Airlines then made a few changes: new
"culinary menus," larger portions of food, new coffee, and
branded products (e.g., Godiva chocolates). This resulted
in better service, increasing customer satisfaction and
fostering loyalty.
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International Marketing Research Examining the
Impact of the Self-Reference Criterion (SRC)
1. Define the marketing research problem in
terms of domestic environmental and cultural factors.
2. Define the marketing research problem in terms of
foreign environmental and cultural factors. Make no
judgments.
3. Isolate the self-reference criterion (SRC) influence on the
problem and examine it carefully to see how it
complicates the problem.
4. Redefine the problem without the SRC influence and
address it for the foreign market situation.
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Marketing Research & Social Media (1 of 3)
Problem Definition
• Social media can be used to aid in all the tasks that need
to be performed in order to define the problem.
• If the decision maker maintains a blog or has a Facebook
page, these sources provide additional information in
understanding the DM and her/his objectives.
• It is also possible to identify industry experts and an
analysis of their social media sites can provide insights into
their thinking as it relates to the problem at hand.
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Marketing Research & Social Media (2 of 3)
Problem Definition [Continued]
• Social media are a natural source of qualitative secondary
data and qualitative research.
• Social media can also help in gaining an understanding of
the environmental context of the problem.
• In defining the marketing research problem, analysis of
social media content can provide a good idea of the broad
scope of the problem and aid in identifying the specific
components.
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Marketing Research & Social Media (3 of 3)
Approach to the Problem
• Use of these media can be extended to incorporate
feedback from consumers as to whether the researchers
are on the right track because the analytical models
developed and the research questions as posed by the
firm were consistent with and based upon consumer
thinking and insights.
• Researchers can then assess the appropriateness of their
models or whether they are asking the right research
questions. Furthermore, market researchers can choose to
openly discuss their derived hypothesis for feedback
among closed social media consumer panels.
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Mobile Marketing Research
• The mobile phone has become a significant means of
communication, particularly in a business setting. Thus, the
researcher can use mobile communication to interact with
the decision maker(s) and with the industry experts.
• MMR can be used to analyze secondary data (Chapter 4)
and to conduct qualitative research (Chapter 5).
• Mobile internet usage has eclipsed desktop.
• MMR can be useful in performing all the four tasks needed
to define the management decision problem and the
marketing research problem as well as to develop an
approach to the problem.
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Copyright
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