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    Marketing PDF

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    Hil Online Marketing Hoie-Buat-Ortinaw ‘Marketing Research, 3rd Edition hui fSoer bona eA International ivy of Sutera Do : usine oj ioe Preperty of Library Date: 2), 02.go13, No:_O4. 98 0. McGraw-Hill/Irwin 8 A Divison of The MeGraw Hill Compas MoGraw-Hill Primis ISBN: c-320-c8m16-8 Toe: Markating Research, Thi Eton Haie-Buch-Ortinaw D vers esesorcten stat http://www. primisontine.com pyle G26 te Muon Cnc. As vse tee Unt Ses noes p38 ted woe ited Sats ph fel TE nova ftp maybe reper deed rm ‘brome se dts ie So. ‘eet pwn eso = ce! TaAetinndld hi et ayince rail rite Yebow Aileen ty te rencon of iscaee The ‘ona es regnate sabe echelon sch tisk. Ce ee) rE arketing _ ontents Bush-Orticgu * Marketing Research, Think de ==—dlition {The ole andValve of MorketS= sera sey Research niommaton ‘2. The Marketing Researcimme — -MNE=="rocess 2 ‘ W Designing the Marketing Res— eee memcearch Project 6 6. Exploratory Designs: In: => cpth Interviews and Focus Groups 3% 7. Descriptive Research De aes -_—egns: Survey Methods and Errors 6 JV. Gathering and Collecting Ace===—— man_mmame: mrate Data 0 9. Sampling: Theory and De ee sign a0 10, Sampling: Methods an =m 3 lanning we 11. Overview of Measuremes==——= 2a =m t: Construct Development and Scale Measurement 1" 12. Autimde Scale Measures. ents Used in Marketing Research m 18. Questionnaire Design ome arama Issues 0 Ol ecnncan eenmrana latemnatonwe? Toma SeSivicmech nes imtaretoes” omen ten Eton oer The Marketing Research Process Learning Objectives ‘Aer ea chp, you witb able 9 41. Describe the major environmental factors influencing merketing research and explain their impact on the research process. 2, Discuss the phases und tsps ofthe research process and explain some ofthe Key ‘ctivties within each step. A. Explain the differences between raw data, data structures, and information, and describe the process by which rav data are wansformed into information dat managers can use. 4, llustrate and explain the critical elements of problem definition in marketing research. 5. Distinguish between exploratory, descriptive, and causal research designs. 6. List the critical issues in the development of a sarupling plaa, and explain the basic differences between a probability and nonprobabiity sampling plan, 1. Identify and explain the major components of a research proposal. Fortean: 1 The tet vant T ar tain estrch 13 Trome moi MasiogFesonc, Thiet Maellng Reach Procese Corpon ten eon Using the Research Process to Address Marketing Problems, Questions, and Opportunities Company, 2 matketing strategy consulting firm based in Raleigh-Durham, North Carolina. He was recently working with the owners of a regionat telecommunications firm lacated in Texas on improving service quality processes. Toward the end of thelt meeting, one of the ‘owners, Dan Carter, asked him about customer satisfaction and perceptions of the company’s Image as they ‘elated to service quality and ‘customer retention. During the discussion, Carter stated that he was not sure how the company’s telecommunications services were viewed by current of potential customers. He sald, “Just last week, the customer service department recelved leven calls from different customers complaining about everything from incorrect bills 10 taking too tong to get OSL (high speed internet service) installed. Clearly, none of these customers were happy about our service.” Then he asked Shulby, “What can Ido to find out how satisfied our B ill Shulby is president of Carolina Consulting customers ate overall and what can be done to improve our image?" ‘Shulby indicated that answers could be obtained to his questions by conducting a marketing research study. Dan Carter responded that the company had not done research in the past so he did not know what to expect from such a study. Shulby then gave several examples of studies the Carolina Consulting Company had conducted for other clients and explained how the information had been used, making sure not to disclose any confidential information. Carter then asked, "How much would it ‘cost me to do this study and how long would it take to complete?” Shulby then explained he would like to ask a few more questions so he could better understand the issues, and he then would prepare a ‘research proposal summarizing the approach to be used, the deliverables ftom the study, the cost, and the time frame for completion. The proposal would bbe ready in about a week and they would meet to go over it in detail, ! vies Tirtenotesevatoot [2 teemttotnatersch | Tectmnecrucsin Maatcntesearch Thi Muvaigeseach Process, amp, 85 lan ‘aarmaon 46 Parti The Role and Value of Marketing Research {nformation Value of the Research Process As the chapter opening example illustrates, owners and managers frequently identify potential problems they need help to resolve, In such situations, additional information often is needed to make a decision or solve a problem. One solution isa marketing research study conducted following a standardized research process. This chapter uses an informa tion perspective to explain the marketing research process. Ht begins with a discussion of the critical environmental factors that directly influence the scope ofthe research process, Much of the chapter provides an overview of the four basic phases that make up the research process and the specific steps involved in each phase, as well as activities and questions a researcher must address within each sep, The inal section of the chapter explains how to develop an information research proposal. ‘This chapter, the textbook's designated overview chapter, serves a8 a preview of some of the central topics inthe text, Much of the discussion is descriptive in nature, Overall, this chapter provides the general blueprint for understanding the information research process. The topics introduced are discussed in much more detail in subsequent chapters, Changing View of the Marketing Research Process feremet A network oF computers and toch: ‘ey inking computers ino an information suparhigvny. Secondary data Histor ‘eat dala structures ef variables previously col Feciad and assembied for seme research rab: lem or opporeuity shu aon other than the cunentsution. Primary data Fathand raw dota and streties which have yet t re ove any sype of mean ingftinexpreation. ‘Gatekeeper tectwology Adyonced telecom cation technatagies that slow a person to soreen Incoming contact mas+ sages from ater people or organizetions, Organizations, both for-profit and not-for-profit, increasingly are confronted with new and ‘more complex challenges and opportunities that are the result of changing legal political, ‘cultural, technological. and competitive issues. Exhibit 2.1 surwmarizes severe) key envie ronmental factors that are significantly impacting business decision making end the mar- keting research process. Petheps the most influential fector isthe Internet, The rapid technological advances and growing use of the Internet by people worldwide are making the Internet a driving, force in many curreat and future developments in marketing rescarch, Traditional research philosophies are being challenged as never before. For example there is a growing emt phasis on secondary deta collection, analysis, and interpretation asa basis of making busi- ‘ness decisions. Secondary data is information previously collected for some other problem ‘or issue. Tn contrast, primary data is information collected fora current research problem ‘or opportunity. A by-product of the Internet is the ongoing collection of data that is placed in a data ‘warehouse and is available as secondary data to help understand business problems and to ‘make better decisions. Many of today's larger businesses (c.g., Dell Computers, Bank of ‘America, Marriott Hotels, Coca-Cola, IBM, McDonald's, Wal-Mart) are using interlink= ages between online scanning of customers’ real-time purchase behavior with offline cus- tomer profiles in the data warehouse 10 enhance their ability to understard shopping. bchavior and better meet customer needs. But even medium- and smell-sized companies arc building databases of customer information to setve current customers more effectively and to attract new customers. Sccond, there is increased use of gatekeeper technologies (e.g. caller ID and auto- mated seresning and answering devices) as a means of protecting one's privacy against in- tousive marketing practices such as telemarketers and illegal scam artist. Marketing researchers” ability to collect consumer data using traditional methods like mail and tele- phone surveys has been sevorely limited by the combination of gatekeeper devices ond iaceshawanTrmvawananw TanawatesnmaT Tram 1 @ Mes naw | acne Ba so ta aces Chapter 2 The Marketing Research Process 47 rsa ns eR | Inset i borer | Reto ine ne noe ot cece aS i rer ngeabed enplass or sea da tule hicetes he eed fr and iteration of fectnaoay-diven online 2p nine databases; shone. © -acaulslign and reli ‘id ited aiclties of reschine Seo Or Hee nae pte ed Weutine Elmpl bene omen of clr ID, electronic anshering, and voice messeneet devices: Irevwasel infu ielemasceng rates and scam ass: Songer ry avs; mondoted dpt-outopporunbies:. i met fee moti, spare. ta | I aay one arate ‘anguaige and measurement chalga’ for rasearchiehs. Bxarnpies: -difient citural-bsec: market needs and wate; erent ginal cat egitemers-r Segre, ase of Of! Ise nou nena seme ceptor at TW ana tprevordatas cocci Leading businesses ta repostion rating ese aciviieg wath more a develo ote revent federal and state data privacy legislation. For example, marketing researchers must ‘contact almost four times more peuple today to complete a single interview than was true five years ago. Similarly, online marketers and researchers must provide optin/opt-out opportunities when soliciting business or collecting information. Advances in gatekeeper ‘echnologies will continue to challenge marketers to be more creative in developing new ‘ways to reach respondents. ‘A third challenge facing marketing decision makers is the widespread expansion into global markets. Global expansion introduces marketing decision makers to new sets of cullura issues that force researchers to not only focus on data collection tasks, ut also on data itorprctation and information management activities. For example, one of te largest full-service global matketing information firms, NFO (Netional Family Opinion) World- ‘wide, Inc, located in Greenwich, Connecticut, with subsidiaries in North America, Europe, Australia, Asia, and the Middle Fst, has adapted maniy of is measurement and brand ‘racking services to accommodate specific cultural and language differences encountered in global markets. Fourth, marketing research is being repositioned in businesses to play a more important role in strategy development. Marketing research increasingly i being used to identify new business opportunities and to develop news product, service, and delivery ideas. It also is being viewed not only as a mechanism to more efficiently execute CRM (customer rela- tionship management) strategies, but also as a critical component in developing compet ‘ive imeligence, For example, Sony uses ts Playstation Web site (www playstation.com) to wien Tivearma Trmuaianane erwin wees | memmemarsT at aes we “a Infermation research process The system ac task steps in the gathering, analyzing, interpreting ad rae forming of deta stae- tures and suis into secisinn ang infor mation. 1 The Role and Value of Marketing Research Information collect information on PlayStation gaming users and to build closer relationships. The PlayStation Web site is designed to create a community of uscrs who can join PlayStation Underground where they will “eel like they belong to a subculture of intense gamers.” To achieve this objective the Web site offers online shopping, opportunities to try new games, customer support, and information on news, events, and promotions. Interactive features include online gaming and message boards, as well as other relationship-building aspects. Marketing researchers at Sony and other companies are becoming more like cross-functional information experts, assisting in collecting not only marketing information, but information on all types of business functions. ‘While many other factors are influencing the marketing research process, these are the key ones now forcing managers and researchers to view marketing research as an informa tion management function. The term information research reflects the evolving changes oc- curring in the market research industry impacting organizational decision makers. Indeed, 1 more appropriate name forthe traditional marketing research process isthe information rescarch process. The information research process is a systematic approach to collect- ing, analyzing, interpreting, and transforming rew data into decision-making information. While many of the specific tasks involved in marketing research remain the same, under standing the process of transforming raw data info usable information from a broader in- formation processing framework expands the applicability of the research process ia solving organizational problems and cteating opportunities. Determining the Need for information Research Before we introduce and discuss the phases end specific steps of the information research process, i is important that you understand when the research process is needed and when itis not. Moreover, inereasingly researchers must interact closely with managers in recog- nizing business problems. questions, and opportunities. While many marketing research texts suggest the frst step in the marketing research process is forthe researcher to establish the need for marketing research, this places alot of responsibility and contro in the hands of a person who might not be trained in under- standing the management decision-making process. Decision makers and researchers Frequcntly arc trained dlfferently in their approach to identifying and solving business prob- tems, questions, and opportunities, as illustrated in the Closer Look at Research box. Until. decision makers and information researchers become closer in their thinking, the intial recognition of the existence of a problem or opportunity should be the primary responsi- bility ofthe decision maker, not the researcher. ‘To help prevent the differences between decision makers and researchers from compli= cating the initial business problem definition process, the decision makers should be given the responsibility of initiating the activites in recognizing and defining the probl opportunity situation. For now, 2 good rule of thumb is to ask, “Can the stated decision- problem (or question) be resolved by using subjective information (e.g. past experience, assumptions, emotional Feelings)?” If “No” isthe logical response, the infor zation rescarch process needs to be considered and perhaps implemented. Tn most cases wien some type of additional information is needed to address a problem, ‘decision makers will need assistance in determining the problem, collecting and analyzing. the daia, and interpreting that information. Tho need to activate the research process basi- ally comes from decision makers’ ability to recognize problem and opportunity situations 4s well as monitor market performance conditions, ‘ANkey to understanding when the information research process should be undertaken is ‘the notion that marketing research no longer focuses on just the activities of collecting, Tanne: Mating ener Tid aioe 1G OLLIE T emwasnotmot [2 menos sonra Tenens 1 furapsonees "| pene on fae Chapter 2. The marketing Research Process 49 Cee AeA) ‘malyzing, and interpreting primary data for solving management's problems. Increasingly, secondary research and data warehouse information are being used to address decision- ‘making situations, Technological advances in the Internet, high-speed communication systems, and faster secondary and primary data acquisition and retrieval systems are dra- ‘matically changing marketing research practices. As a result, the constraints used in deter- mining whether to conduct research are less restrictive than in the past. “There are four situations in which the decision to commission a marketing research pro- Ject may be ill advised. ‘These are listed and discussed in Exhibit 2.2. One of the short- ‘comings ofthis approach to deciding when to conduct research is that in each situation the decision maker is assumed to have prior knowledge about the “true” availability of exist- ing information, the necessary time and staff, adequate resources, or clear insight into the expected value of the resulting information. As technology advances, these assumptions ‘become more suspect. ‘The main responsibility of today's decision makers is to initially determine if the research process should be used to collect the needed information. The initial question the decision maker must ask is: Can the problem and/or opportanity be resolved using onty subjective information? Here the focus is on deciding what type of information (subjec- tive, secondary, or primary) is required to answer the research question(s). In most cases, decision makers should undertake the information research process any time they have a ‘question or problem or believe there is an opportunity, but either do not have the right sub- Jective information or are unwilling to rely on subjective inforroation to resolve the prob- ‘em. In reality, conducting secondary and primary research studies costs time, effort, and var-surn-riane | LThatieandvateot | 2.TheMatetog Roesch Tenersonnn | Maratng Recah Tied twketngRexeens——Provaae Compe. 285 ten | tefrmaan 50 part The Role and Value of Marketing Research Information ign e et eee anes eat ada: anb cetion eet etter ay eee ena _- dedsion without doing’ marking researc Some eppers belles advarcements In compat a infomian graces telat ese at oeation ge the it decbln ak In aly ation. * J ae hon lent in Hams “We i dvi tile usa nadeqat tet © ixecite the wcassary esearch atlas, gecson- makes oy: heve toe Inored. dare. Conpeivesclonseationssometines serge 50 et fat + When inadequate ‘esoarces When’ there are signi laters 1 ney, nee Facile. het marti sesh tylely ft feasi money. Exhibit 2.3 displays a framework that illustrates dhe factors and examples of the questions that must be asked and answered to determine whether the research process is necessary. After deciding that subjective information alone will not resolve the identified problem, the next question to be answered by the decision makers focuses on the nature ofthe dec!- sion: Does the problem/opportunity station have strategic or tactical importance? Strate gic decisions tend to have broader tne horizons bul are much rmore complex than tactical Alocisions. Most strategic decisions are critical tothe company’s operations and bottom-line profitability objectives. In turn, on the basis of the investment associated with a tactical decision, undertaking the research process might be the appropriate alternative for collect- ing data and information. For example, Outback Steekhouse recently made a tactical deci- 0 update its menu both in appearance and in food offerings. Researching the opinions ‘of known customers proved helpful in determining new food items to be included and those. items that should not be on the menu bul rather offered as occasional “chef's specials.” ‘Bottom fine—if the problem situation his strategic or significant tactical importance, then areseatch expert should be consulted at this point. ‘Another key managerial question deats with the availability of existing information, With the assistance of the research expert, decision makers face the next question: Does ad ‘gute information for addressing the defined problem already exist within the compan internal record systems? In the past, ifthe necessary marketing information was not evailabie inthe firm's in- femal record system, then a customized marketing research project would be undertaken to produce and report the information, Today, advances in computer technology and changing management philosophy toward the cross-functional sharing of information en able management to record, store, and retrieve huge amounts of operating data e.g. sales, costs, and profitability by products, brands, sales region, customer groups) with greater case and speed. CRM has reduced some of managements past concems atiout availa ity of information, ‘With input from the rescarch expert, decision makers must assess the “time constraints” associated with the problem/opportunity: Is there enough time to contduct the necessary Thai-tat-onman Tithe Rte reat | 2th meting teseors | T erm nsion en ating Racer Tied Markeng Rear a amo 28, Fon eae. Chapter 2 The Marketing Research Process 51 i> Gaat= an ies a aes | rots research before the final managerial decision must be made? Today's decision makers often need information in real time, But in many cases, systematic research that delivers high-quality information may take several months. If the decision maker needs the infor- ‘mation immediately, then there is insufficient time to complete the rescarch process. An- ‘other fundamental question focuses on the availablity of marketing resources (e.g., money, staff, skill, facilities): fs money budgeted for doing formalized research? For example, ‘many small businesses simply lack the necessary funds to consider doing any type of for- ‘mal research. ‘Some type of cost-benefit assessment should be made regarding the overall value of the research compared to the cost: Do the benefits of having the additional information Trttendemavateat | 2 ThetatedngRererch Tenet O ler aan mae wenecptances | oon ae bree 52 part + The Role and Value of Marketing Research Information outweigh the costs of gathering the information? This type of question remains « chal- lenge for today’s decision makers. While the cost of doing marketing research varies from project to project, generally it can be estimated accurately. Yet, predetermining the true value of the expected information remains somewhat subjective. In addition to the fore~ going considerations that help to determine whether to use the research process, decision ‘makers should give thought to the following set of evaluative questions: + What isthe perceived importance and complexity of the problem? + Is the problem realistically researchable? Can the critical variables in the proposed research be adequately designed and measured? + Will conducting the needed research give valuable information to the finm’s competitors? + Will the research findings be implemented? + Will she research design and data represent reality? + Wille research results and findings be used «s legal evidence? + Is the proposed research politically motivated? In deciding whether to employ the research process, another useful approach involves an always elusive question: Why should the decision maker conduct information research? Although there is no agreed-upon set of rules for determining when to conduct research other than the general notion initially described, there are some conditional reasons to con- sider when deciding whether to conduct research: 1. Ie the information will clarify the problem or identify marketplace changes that directly influence the company’s product/service responsibilities. 2 Ifthe information holps the company to acquire meaningful competitive advantages Within ils market environment. 3. If the information leads to marketing ations that will achieve marketing objectives. 4. If te information provides proactive understending of future marcet conditions, Overview of the Information Research Process Scent method For malized wesearch proce dues that can be tharacterced 26 logical, objective, systematic, relebie, vali, impor. sano), and ongoing. “The marketing research process typically it described as a set of standardized phases. In text, we will define it as an information research process thet consists of four distinct yet interelated phases: (1) determine the research problem, (2) select the appropriate re- search design, (3) execute the research design, and (4} communicate the research results (soe Exhibit 2.4). Researchers must ensure that all phases of the provess are completed properly ifthe best possible information is o be available for organizational decision mak- ers. Each phase, however, should be viewed as a separate provess that consists of a combi- nation of integrated research steps. “The four phases are guided by the principles ofthe sefentific method, which involves formalized research procedures that can be characterized as logical, objective, systematic, reliable, valid, impersonal, and ongoing. Treditional mazketing research emphasizes the collection and analysis of primary data, But the information research process places equal ‘empitesis on the use of secondary data, Twse-oe-onton | Marian esr Ted tion eealiciue Cisteeavan Tenement Tema 1 fenangeancen Poe cove vom Chopter 2 The Marketing Research Process 53. Pea Raw dats Actual ist hand responses ob talved about the sublee! of trvestgation Data structures Results of combining aw date Foto proups using some type of quanutalve o: etasve aa. Information The sei of Facts Gerved fom cata structures when seme ne—tither the reseach- 0 decision maker Interoress and attaches natative mearing to the data structure, Transforming Raw Data into Information ‘The primary goal ofthe information research process isto provide organizational decision ‘makers with secondaty or primary information that will enable them to resolve a problem, answer an existing question, or pursue an opportanity. Information is created only after the data have been collected, analyzed, interpreted, and transforied into narrative expressions decision makers can understand and use, To understand this process, one must know the difference between raw data, data structures, and information, ‘First, raw data represent the actual firsthand responses that are obtained about an object ‘or subject of investigation by asking questions or observing actions. These initial responses hhave not been analyzed or given an interpretive meaning. Some examples of raw data are (() the actual individual responses on a questionnaire; (2) the words recorded during a focus ‘group interview; (3) the tally of vehicles that pass through a specific intersection; (4) thelist ‘of purchases, by product type, recorded by an electronic cash register at a local supermarket. ‘All secondary and primary markcting information is derived from the following process: gather raw responses: apply some form of data analysis to create usable data structures; and then have someone (a researcher or decision maker) interpret shose data structures, Gather rave data —> Create data structures ~» Provide interpretation Data structures are the result of combining individual raw responses into groups of data using some type of quantitative or qualitative analysis procedure (c.g, content anly- sis, calculation of sample statistics). The results can reveal data pattems or tends, which in ‘turn can be simple or complex. Some examples ate (1) the average number of times 500 moviegoers patronize their favorite movie house; (2) the frequency distribution of 1,000 college students cating at several predetermined restaurants in a30-day time frame; (3) the sampling error associated with the overall expressed satisfaction of 250 new Acura 3.2TL ‘automobile owners; and (4) the z-testing results of comparing hotet selection criterta means for first-time and repeat patrons of a particular hotel. ‘Information is derived from deta only when somcone—either the researcher or the de- cision maker—takes the time and effort to interpret the date and attach a meaning. To ills- ‘trate this process, consider the following hotel example, Recently, the corporate executives ‘of JP Hotel, Inc, in Atlanta, Georgia, were assessing ways to improve the firm's bottom-line ‘profit figures. Specifically, they were seeking ways to cut operating costs. The vice president ‘of finance suggested cutting back on the “quality of the towels and bedding” in the rooms. ‘Before making a final decision, the president asked the marketing rescarch department to in- ‘erview the hotel's business customers using a sckentifically sound rescarch process. Tate mcg Reese | Terenas Process amp, 205, Be yt Hee Par “Repeat Pans 5 fe ghee ee Ls Bee Nem Se Hote Slot Cateila” © Vale Matus tar (6) 2 Test Ceainess of thevaain © 5.65 F $50" 2.05 Goci-aiay Heddng'and 5.80 bet LOR Sftowely Si) eh sui Preferred guest card options, 5.87. Fendlykouneous staf => $.10 _and employees Hae Gana : Fre i sertees 5.08 BOQ 838 a BE ‘L Convenienty located for 5.04. 09D, 492 AD BP business : a : nib ni aint) “tmmpontance scale: a slkplat scale ranging fom 6 (extremely lmponan) tot not ata importa). ‘sigfcam groupings (SG): (A) = defintely strong factor, (B) = strong factor (©) = moderately strong fectar (0) = week factor Mean lnportance difference between the wo pation groups bs sigaifiant at p <0. Exhibit 2.5 summarizes the study's Key results. In the study, 880 people were asked to indicate the degree of importance they placed on sevon crtoria when selecting a hozel. Respondents used a six-point importance scale ranging from (6) “Extremely important” to 1) "Not at al important.” The individual responses represent the raw dats, The researcher used the raw data to calculate the overall average importance for each ofthe criteria. using a simple “mean analysis” procedure, where the resulting means represent the dats stuc- ‘utes associated with each selection criterion across all respondents and for both first-time and repeat patrons Infact, all the numbers are data structures In addition, there is evidence the data structures were statistically analyzed (e.g, see significant groupings [SG] results) ‘but these results, by themselves, do not provide the management team with any meaning- ful information o assistin determining whether or not “quality towels and bedding” shoutd bbe eut back to reduce operating costs. ‘When he was shown the results, the president asked this question: “I ace a lot of im- pressive numbers, but what aro they really telling me?" The director of marketing research quickly responded by explaining what the numbers concerning the “quality towels and bed- ding” criterion were suggesting: “Among our first-time and repeat business customers, thoy consider the quality of the hotel’s towels and bedding one ofthe three most important se- lection criteria that impact their choice of a hotel to stay at when an overnight stay is re- quired for business.” In addition, business travelers feel “the cleanliness ofthe room and offering preferred guest card options are equally important tothe quality of towels and bed- ding criterion, yet first-time business patrons place significantly stronger importance on ‘leanliness ofthe toom (x ~ 5.75 ) than do our repeat business patrons (x = 5,50)” In tum, repeat business customers “place significantly more importance on the availablity of our ‘preferred guest card options (x ~ 5.71) in their hotel selection process than do first business patrons (x — 5.42}.” Upon understanding the information being provided by the. Fioctrasme — Tamemesavanea” [2 natwan tna | Timo 1 @ Sana Mttageecas | Roe opens foo voc Chapter 2. The Marketing Research Process 55 data, the executives decided it would not be wise to cut back on the quality of towels or bedding as a way to reduce operating expenses ond improve profitability. Interrelatedness of the Steps and the Research Process ‘As soon as decision makers recognize they need assistance, they should meet with the mar- keting researcher and begin executing a formalized, scientific research process. Exhibit 2.6 shows the interrelated steps included in the four phases of the research process. ‘Although in most instances researchers would follow the four phases in order, the indi vidual steps may be shifted or omitted. Often the complexity of the problem, the urgency for solving the problem, the cost of altemative approaches, and the clarification of infor- imation needs will directly impact how many of the steps are taken and in what order. For example, secondary data or “off-the-shelf” research studies may be found that could elim- inate the need to collect primary data, thus eliminating the need for a sampling plan. Simi- lary, pretesting the questionnaire (step 7) might reveal weaknesses in some of the scales being considered (step 6), resulting in further refinement of the scales or even selection of anew research design (back to step 4). ‘What might happen ifthe research process is not appropriately followed? Substantial time, ‘energy, and money can be spent with the result being incomplete, biased, or wrong informa- tion for propes decision making. For example, the Food and Beverage Committee at the Alto Lakes Golf and Country Civb in Alt, New Mexico, wanted to determine its members’ over- all satisfaction with the “beverage cart” services being provided on the golf course and gain sing a six-point scale ranging from (6) “Outstanding” to (1) “Terie” and supplying espace for writen comments After reviewing only 50 cards retumed, the commitiee found that ‘memabers’ comments suggested tha there were soveral activities associated with the beverage oP ane