Market

Research

Problem Formulation and

Research Design
Key Questions: Research Design

Prepare the
Research Report
 How much is already known?

 Can a hypothesis be formulated? Analyze the Data

 What types of questions need to Survey

be answered? Programming -
Data Collection

 What type of study will best Design the Data

address the research questions? Collection Method
and Survey

Design the Sample

Determine the
Research Design

Problem
Disaggregation
Research Vendors

Research

Internal Research Research Vendors Non-Research Vendors

Full Service Specialized Service

Field and Tab Analytical Research Topic Branch

Houses Services Specialists Specialists
Types of Research Designs

Uses Methods

 Formulate problems more precisely  Secondary research

Exploratory  Develop hypotheses  Expert interviews
 Establish priorities for research  Qualitative research:
Research  Eliminate impractical ideas focus groups, depth
(no previous knowledge)
 Clarify concepts interviews etc.

Descriptive  Describe segment characteristics

 Estimate proportion of people who
 Measurement with
standardized methods
Research behave in a certain way
(classic surveys)
(previous knowledge)  Make specific predictions

Causal  Experiments
 Confirm cause and effect relationships
Research  Formulate and test hypotheses
 Non-experimental
(theoretical causal research
knowledge)
Types of Research Designs - Examples

Uses Methods

Exploratory Explore consumers’ attitudes and

behaviors with respect to buying fair
Focus groups
Research traded goods for different product
(no previous knowledge) categories

Descriptive Understand portfolio allocation of high

net worth individual and try to identify Cluster analysis
Research different “investment types”.
(previous knowledge)

Assess customers’ overall satisfaction

Causal and trust with a private bank and assess
Structural Equation
Research which touchpoint experiences have the
Modeling
(theoretical strongest impact on satisfaction, trust
knowledge) and the commitment to the private bank
Research Brief

A document produced by the users of research findings or the buyers of a piece of

marketing research. The brief is used to communicate the perceived
requirements of a marketing research project.

 Writing a research brief helps you to clarify and prioritize research

objectives – what do you want from the research?

 A research brief helps the research vendors to truly understand the

research problem and develop an appropriate research approach.

 Time spent on writing a research brief is well-spent time: a clear and

well-designed research brief leads to better research.
Key Components of a Research Brief

1 Background and Business Issue

2 Research Objectives

3 Sample Requirements / Preferred Approach

4 Timing and Budget Constraints

5 Risks Involved

6 Other Resources / Prior Research

7 Deliverables & Project Owners

Key Components of a Research Brief - Details

1 Background and Business Issue

Brief description of the company/division and of the main business

issue(s) or problem(s) that this research should address.

2 Research Objectives

 How should the research contribute to address a key business issue or business
objective?
 Provide a summary of the most important research
objectives: What are key information needs to meet
the business objectives?
 Who will use the research internally and
what are the decision options?
Key Components of a Research Brief - Details

3 Sample Requirements / Preferred Approach

 What are target respondent criteria, such as product ownership or usage?

 Which countries/country groupings?
 In some cases several approaches are desirable and would therefore need to be
included in the proposal. Vendors should always review options and suggest the
best approach from their perspective.

4 Timing and Budget Constraints

 Provide information on existing deadlines. Timings influence the choice of

methodologies, reporting formats, and allow the vendor to allocate capacity
effectively.
 In general, vendors prefer indications about the projected budget – because the
available budget influences the scope of the research (e.g. multi-mode research).
Key Components of a Research Brief - Details

5 Risks Involved

 Describe the risks of not performing this research, and any legal sensitivity
around this project.

6 Other Resources / Prior Research

 Information about any existing research or studies on the topic that could be
useful for the research vendor.
Key Components of a Research Brief - Details

7 Deliverables & Project Owners

 Include details of relevant contacts – to whom the proposal must be submitted.

 Specify the required deliverables that you and your stakeholders expect. What
should the output look like and how is it to be used and by whom?
 Is a full report or just a summary required? Do different presentations have to be
developed for different audiences? Will an interim debrief or an executive
summary be required?
 Specify what you would like to know about the research vendor bidding to work
with you. Who is going to manage the project? What are the qualifications of the
staff? What experiences does the vendor possess with similar projects?
Research Brief – Example

1 Background and Business Issue

With the X card you can load money onto the card and can only spend as much
money as you put onto it. It’s pay as you go – you can continue adding your own
money (cash and checks) to the card as often as you’d like or need. You can even get
direct deposit of your paycheck on the card. You don’t need a credit check or bank
account to get this card.

This card allows you to make purchases and payments anywhere. You can shop in
stores, online and over the phone. You can pay your bills (like electric, car insurance)
with this card, and can even get cash at ATMs.

Client is launching a the X card in June, 2010. They would like to identify the optimal
product construct and fee structure for this product among the primary target
audience.
Research Brief – Example (cont’d)

2 Research Objectives

CLIENT has developed various business case models (including associated

features/fees) which they would like to test among the target audience to determine
their likelihood to buy and use the product.
 Determine key features to include
 Determine optional price for each feature
 Identify feature/price bundle that optimizes preference share

3 Sample Requirements / Preferred Approach

 Unbanked (no bank account and can't get one)

 Underbanked (have used cards a maximum of one time in past month;
basically cash-centric people)
 Web-based, Online panel
 Assume 12-15 minute survey
Research Brief – Example (cont’d)

4 Timing and Budget Constraints

 Please try to get a proposal by the end of this week or beginning of next.

6 Other Resources / Prior Research

 The attached is stimulus from qualitative work and should provide some sense
for the product under consideration, though additional features might be tested.

7 Deliverables & Project Owners

 Full report
 Results broken out by unbanked and underbanked and by ethnicity
Case study
Case study
Example: Proposal for Lindt & Sprüngli

“Lindt & Sprüngli is a worldwide leader in

the segment of premium chocolate”
Lindt & Sprüngli is a pioneer in the production of fine chocolates, starting as early as 1845 then
still under the name of Sprüngli & Sohn with chocolate production.
Currently Lindt & Sprüngli is present on four continents and has developed a reputation for being
one of the most creative premium chocolate producers in the world.
One of the key product categories that Lindt & Sprüngli offers are pralines.

The key goal of the current project is provide a deeper understanding of

the barriers that prevent consumers from purchasing pralines and provide
recommendation on how to overcome these barriers.
Research Proposal - Example
Objectives & Methodology
The objective of this project is to develop in-depth insights on the motivators and barriers of praline
consumption and develop recommendations on how to overcome these barriers and increase penetration of
Lindt´s praline products in the Swiss market. Specifically in this study we will:

Conduct a funnel analysis that will …

 …identify the key barriers for consumers for not purchasing pralines,
 …provide an understanding for what usage occasion pralines are considered,
 …determine which Lindt products are considered for what usage occasion and why,
 …identify key competitors per usage occasion,
 …show the key strength and weaknesses of Lindt versus its key competitors per usage occasion.

Conduct a conjoint analysis that will …

 …determine which attributes (e.g. package, price, brand, praline variety)
are the strongest drivers of purchase,
 …quantify the utility of different attribute levels and identify ideal praline products for different
usage occasions,
 …conduct market simulations to understand the impact of variations in price, package etc. on
purchase.
Research Proposal – Example (cont’d)

Methodology: Approach
Sampling will be conducted among adult Swiss consumers. Funnel analysis and conjoint analysis
will be used as core methodologies to answer the research questions at hand.

Sampling Frame Methodology

 N = 400 Users  Online survey

(Swiss consumers that purchase
assorted pralines)
 N = 400 Non-Users
(Swiss consumers that do not
purchase assorted pralines)
 Sample will be recruited from an
online panel
 Language: German and French
 Length: max. 20 min, 40 questions
 A pre-test of the online survey is
strongly recommended.
 Conjoint Analysis will be
employed as core methodology to
assess feature value.
Research Proposal – Example (cont’d)
Methodology: Results Funnel
Barriers and Motivators of Pralines Purchase

Do not purchase pralines 55% Do purchase pralines 55%

TOP 5 Barriers TOP 5 Motivators

Never thought about it 60% Needed a quick present 60%

Too old-fashioned 40% To indulge myself 41%

Too expensive 30% ... 30%

... 26% ... 26%

... 23% ... 23%

Base: Swiss consumers that do not eat assorted pralines Base: Swiss consumers that do eat assorted pralines
Research Proposal – Example (cont’d)
Methodology: Results Funnel
Barriers and Motivators of Pralines Purchase

Reasons for not considering Lindt 45% Reasons for considering Lindt 45%

TOP 5 Barriers TOP 5 Motivators

Not available in the store I 60% 60%
My favourite brand
normally shop

Too expensive 40% Great varienty of pralines 41%

Never tried Lindt 30% Something special 30%

Prefer other brands 26% …. 26%

... 23% 23%

Base: Swiss consumers that do not eat assorted pralines Base: Swiss consumers that do not eat assorted pralines
Social conformity