Essentials of Marketing

Research

Part 1: The Role and Value

of Marketing Research
Information
Session 3: The Marketing
Research Process and Proposals
 Value of the Research Process

Business owners and managers often identify problems they need help
to solve.
• Additional information is often needed to make a decision or to solve a
problem.
One solution is a marketing research study based on a scientific research
process.

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 Changing View of the Marketing Research Process

There is a growing emphasis on secondary data collection.

• Secondary data is previously collected for some other problem.
• So much data is collected that the concept of “big data” emerged.
• Primary data is collected specifically for a current problem.

Marketing research now plays a bigger

The increased use of role in strategy development.
gatekeeper technologies The term information research reflects the
protects privacy. changes occurring.
Widespread expansion into • The information research process is
global markets affects an approach to collecting, analyzing,
marketing decisions. interpreting, and transforming data into
decision-making information.

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 Determining the Need for Information Research

• Can the problem be resolved

The decision maker asks: using existing information and
“Can the problem be resolved using managerial judgement?
experience and judgment?” • Is information available in
• If “No,” consider research. internal record systems to
address the problem?
There are situations when research
• Is there time to conduct the
may not be necessary.
necessary research?
• Insufficient time frames.
• Do the benefits outweigh the
• Inadequate resources. costs?
• Costs outweigh the value. • Will the research provide useful
Decision makers must ask the feedback for decision making?
following questions to determine if • Will the research give
research can be used. competitors too much
information about strategy?

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 Overview of the Research Process

The research process consists of • Design and pretest the

the following 11 steps. questionnaire.
• Identify and clarify information • Collect and prepare data.
needs. • Analyze data.
• Define the research questions. • Interpret data to create
• Specify research objectives knowledge.
and confirm information value. • Prepare and present the final
• Determine the research design report.
and data sources. The steps are guided by the
• Develop the sampling design scientific method.
and sample size. • The procedures should be
• Examine measurement issues logical, objective, systematic,
and scales. reliable, and valid.

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 The Research Process

Transforming data into knowledge.

• The primary goal of the research process is to provide decision
makers with knowledge to resolve problems or pursue opportunities.
• Data becomes knowledge when someone interprets the data and
attaches meaning.

Interrelatedness of the steps and the research process.

• These factors impact how many steps are taken and in what order.
• The complexity of the problem.
• The urgency for solving the problem.
• The cost of alternative approaches.
• The clarification of information needs.

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Exhibit 2.2: Summary of Differences in Hotel-Choice Criteria:
Comparison of First-Time and Repeat Business Customers

The Magnum Hotel is considering cutting back on the quality of bedding

and towels and the research department interviewed customers.
The results mean nothing to the president of the hotel, until interpreted.
Once interpreted, executives decided not to cut back on the quality of
towels and bedding as a way to reduce expenses.
Access the text alternative for this image.

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 Step 1: Identify and Clarify Information Needs

The problem definition process includes the following components.

• Agree on the decision maker’s purpose for the research.

• Iceberg principle – decision makers know 10% of the true problem.
• Understand the complete problem situation.
• A situation analysis uncovers the problem’s complexity.

• Identify measurable symptoms and distinguish them from the problem.

• Clarify the problem – separate out causes and symptoms.

• Select the unit of analysis.

• This provides direction in later activities.
• Determine the relevant variables.
• Information needs helps determine the techniques.

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Exhibit 2.4: The Iceberg Principle

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Exhibit 2.5: Examples of Variables/Constructs Investigated in
Marketing

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 Step 2: Define the Research Questions

Redefine the initial problem as a research question.

• The researcher conducts a review of the literature.
This step is most important as it influences the remaining steps.
• Restate variables into key questions: how, what, where, when, or why.

Next, determine the types of data that will best

answer each question. Finally, the researcher
determines whether the
• Ask: “Can the question be addressed with information being
existing data or does the question require requested is necessary.
new data?”
• This step must be
• Consider other issues such as data completed before
availability, data quality, and budget or going on to step 3.
time constraints.

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Exhibit 2.6: Initial and Redefined Research Questions for
Lowe’s Home Improvement, Inc.

Access the text alternative for this images.

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Step 3: Specify Objectives and Confirm Information Value

Research objectives should be based on questions in step 2.

• Formal research objectives provide guidelines for determining other
steps that must be taken.
• Assumption: if the objectives are achieved, the decision maker will
have the information needed to answer the research questions.
The decision maker and researcher must evaluate the expected value of
the information – use “best judgment” answers to these questions:
• Can the information be collected at all?
• Can the information tell the decision maker something not already
known?
• Will the information provide significant insights?
• What benefits will be delivered by this information?

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Step 4: Determine the Research Design and Data Sources

Exploratory research has one of two objectives.

• Generating insights that help define the problem situation.
• Understanding consumer motivations, attitudes, and behaviors.
Descriptive research collects quantitative data.
• Image assessment surveys or customer satisfaction surveys.

Causal research assesses and explains causality in market factors.

• Most appropriate for determining which variables cause a dependent
variable to change, either up or down.
The sources used depend on two fundamental issues.
• Whether the data already exists.
• If so, the extent known of the reason(s) why the data was collected.

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 Step 5: Develop the Sampling Design and Sample Size

Researchers need to identify the relevant target population.

In collecting data, researchers choose between a census or a sample.
• In a census, the researcher attempts to question or observe all
members of a defined target population.
• If the target population is large, use a representative sample to
generalize the findings.
A sampling plan is one of two general types.
• Probability: each member of the target population has a known
chance of being selected – allows assessment of sampling error.
• Nonprobability: cannot measure sampling error, limits findings.
Sample size affects the accuracy and generalizability of results.
• Researchers determine how many people to include or how many objectives to
investigate to obtain accurate data.

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 Step 6: Examine Measurement Issues and Scales

Step 6 involves identifying the concepts to study and measuring the

variables related to the research problem.
• For example, when analyzing sales results, it is impossible to provide
daily sales information if sales are only captured on a weekly basis.

Although step 6 is
Researchers must be able to answer questions mostly related to
such as: primary research,
• How should a variable such as customer understanding these
satisfaction or service quality be defined and activities is important
measured? in secondary
research as well.

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 Step 7: Design and Pretest the Questionnaire

Researchers must: Pretest respondents are asked to

• Select the correct type of comment on issues such as:
questions. • Clarity of instructions and
• Consider the sequence and questions.
format. • Sequence of the topics and
• Pretest the questionnaire. questions.
• Anything potentially difficult or
confusing.

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 Step 8: Collect and Prepare Data

Two approaches to gathering data are:

• Using interviewers or self-completion questionnaires.
• Observing individuals.
A major advantage of questioning over observation is the collection of a
wider array of data
• Questioning answers not just how a person is behaving, but why.

Once primary data are collected, researchers must

perform these activities before data analysis.
• Transfer responses into an electronic data file.
• Examine the data for coding, data-entry errors,
inconsistencies, availability, and so on.

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 Step 9: Analyze Data

Analysis procedures vary widely Different procedures enable the

in sophistication and complexity. researcher to:
• From simple frequency • Test hypotheses for differences
distributions – percentages. or correlations among variables.
• To summary statistics – mean, • Evaluate data quality.
median, and mode. • Test models of cause-effect
• Or multivariate data analysis relationships.
and advanced analytics
techniques – natural language
process and machine learning.

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 Step 10: Interpret Data to Create Knowledge

Interpretation is more than a narrative of results.

• It integrates aspects of the findings into conclusions used to answer
the research questions.

Knowledge is created Data visualization tools enable

through engaged and researchers to combine data analytics
careful interpretation of results with computer graphics.
results. • An efficient way to explain insights.

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 Step 11: Prepare and Present the Final Report

Sections included in any research report are as follows.

• Executive summary.
• Introduction.
• Problem definition and objectives.
• Methodology.
• Results and findings.
• Limitations of the study.
Sometimes, both a written report and an oral presentation are provided.

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 Develop a Research Proposal

A research proposal
communicates the research
framework to the decision maker. • Sample design and data
collection method.
• The proposal is not the same
as a final research report. • Specific research instruments.

Most research proposals include • Potential managerial benefits

the following sections. of the proposed study.
• Purpose of the proposed • Proposed cost for the total
research project. project.
• Type of study. • Profile of the research
company capabilities.
• Definition of the target
population and sample size. • Optional dummy tables of the
projected results.

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