CHAPTER THREE

FORMULATING RESEARCH PROBLEM

3.1.Overview Of Problem Formulation

This chapter addresses what some researchers claim is the most important phase in the research
process-defining the nature of the problem confronting the manager, specifying constructs, and
determining research objectives. This chapter also discusses the difference between managers
and researchers, describing their different orientations so you will understand why a continuous
dialogue must take place between these two roles during the problem formulation and objectives
setting steps. Finally, the components of the decision problem are described, so you will
understand how the researcher goes about dissecting in to manageable parts.

3.1.1. Define the Marketing Manager’s Problem

Defining the problem is critical to setting the direction of all subsequent phase of the research
process. This is particularly true for custom designed research, as opposed to standardized
research. The standardized, also called syndicated, research is generic research that provided in
identical fashion to all buyers by the marketing research supplier. Custom-designed research is
research that is fashioned to address a unique management problem confronting a client
manager. Custom designed research requires that the researcher fully understand the
circumstances of the manager’s problem.

A Problem does not necessarily mean that something is seriously wrong with a current situation
that needs to be rectified immediately. A “problem” could simply indicate an interest in an issue
where finding the right answers might help to improve an existing situation. It is not unusual for
the manger and researcher to conduct many discussions to define the problem as well as the
precise nature of the research needed to resolve the problem. If the problem is not defined
correctly, satisfactory performance at the other stages in the research process will not remedy the
situation.

3.1.2. Difference between Managers and Researchers

Marketing managers and marketing researchers see the world differently because they have
different jobs to perform and their backgrounds differ markedly. As illustrated in Table 4.1,
mangers and researcher actually operate in different worlds. However, during the problem
definition phase, their worlds overlap, and they are forced in to a discussion of the symptoms
perceived by the manger.
They also discuss the type of research the researchers envisions will be necessary to generate
answers to the question of why the symptoms have arisen and what the manger can do to resolve
the problem.
Area of Difference Managers Researchers
Organizational position Line Staff
Responsibility To make profits To generate information

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Training General decision making Technique application
Disposition toward Wants answers to questions Wants to ask questions
knowledge
Orientation Pragmatic Scholarly
Brand involvement Highly involved; emotional Detached; unemotional
Use of the research Political Nonpolitical
Research motivation To make symptoms disappear To find the truth
Table 4.1 Eight Fundamental Differences between Managers and Researchers

3.1.3. Guidelines to Resolve Differences b/n Managers and Researchers

Obviously, despite their divergent orientations, marketing managers and marketing researchers
must work together to survive. Although understanding the differences presented in Table 4.1
goes a long way toward helping managers and researchers forge a working relation, much more
is required. Alreck and Settle have formulated six questions that managers and nine questions
that researchers should ask themselves to avoid potential misunderstanding as they discuss the
problem and determine the objectives of the research involved.
The six questions for the marketing manager include the following:
 What is the background of the problem?
 What issues or questions prompted management to consider undertaking research?
 What type of information could clarify or resolve the problem?
 What decisions, choices, or actions will be based on the research results or findings?
 How much is the information worth; that is, what risk might be reduced or what
opportunities might be gained?
 What is the time horizon and level of resources available to performs the research?
The nine questions for the marketing researcher include the following:
 What are the capabilities and limitations of the research being considered?
 What is the history of the operations, policies, and procedures of the client?
 What problems or issues appear to be the focus of the research, and what is uncertain or
unknown about them?
 What decisions, choices and actions are to be based on the results of the proposed research?
 What is a preliminary assessment of the worth of the research?
 What are the time requirements for the research and what resources can devote to it?
 What degrees of cooperation and participation will be expected of the clients?
 What ethical issues are associated with the research?
 How can I gain the client’s confidence and trust in a professional and ethical manner?

The proper way to consider these questions is in the context of what is to be gained or lost. When
managers do their homework and thoroughly describe the problem’s dimensions, and when they
identify reasonable alternatives, nothing the resources that can be applied or other pressures
operating on the research effort, the communication process is enhanced. At the same time, it is

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necessary that researchers obtain as complete a preliminary picture as possible by asking pointed
questions, reviewing salient materials, or even probing the manager’s true motives.

Recent research has demonstrated that the quality of interactions that take place between
managers and researchers, plus the level of involvement on the part of researchers directly affect
the managers’ utilization of the research. Ultimately, the problem definition stage of enlightened
research must be viewed as a partnership, can survive only with mutual respect, trust, and open
communication.
3.2.Decide when Research is warranted
Marketing managers are responsible for initiating the research process. This means that they
must first determine when to embark on a custom-designed research project. Unfortunately, it is
all too easy to commission research without a serious evaluation of whether or not research
should be undertaken in the first place. As explained in chapter 2, there are at least four instances
in which research may not help. It is probably wise to forgo the expense of research when any
one of these is present. Of course, marketing research is performed every day, so there must be
general instances when the manager should go ahead with marketing research. In general there
are four instances in which marketing research should be undertaken:
 If it clarifies problems or investigates changes in the market place that can directly impact
your product responsibility.
 If it resolves your selection of alternative course of action to achieve key marketing
objectives.
 If it helps you gain a meaningful competitive advantage.
 If it allows you to stay abreast of your market.
Another way to decide when to do research is to perform a cost-benefit analysis. To do this, the
commercial manager estimates how much will be lost if the problem (or opportunity) is not
addressed. If the anticipated cost of the research does not exceed this estimate, then the manager
should proceed with the research. Some managers fail to compare research cost with its benefits,
which is a mistake.

3.3.Define the Marketing Management and Research Problems

There are two types of problem with which a research must contend: the management problem
and the marketing research problem.
A management problem is defined in one of two ways:
 If the symptoms of failure to achieve are present, the marketing manger must select a
course of action to regain the objective, and
 If the symptoms of the likelihood of achievement an objective are present, the manager
must decide on how best to seize the opportunity. Some researchers refer to the second way
as opportunity identification.
Once the marketing management problem is fully defined, the marketing researcher must wrestle
with the research problem, which is defined as providing relevant, accurate and unbiased
information that managers can use to solve their marketing management problems. Obviously,

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the marketing management problem is critical, for its improper definition will invalidate the
researcher’s identification of the research problem. Poor problem definition can expose research
to a range of undesirable consequences, including incorrect research designs and inappropriate or
needlessly expensive data collection, assembly of incorrect or irrelevant data, and poor choice of
the sample selection. It is critical, therefore, that the marketing management problem be defined
accurately and fully.
There are eight assessment areas that help the marketing researcher properly define the
management problem (figure 4.1).They are:
1. Asses the background of the company, product and market;
2. Understanding the decision-makers circumstances, objectives, and resources;
3. Clarify the symptoms of problem;
4. Pinpoint suspected causes of the problem;
5. Specify actions that may alleviate the problem;
6. Speculate on anticipated consequences of these actions;
7. Identify the manager’s assumptions about the consequences; and
8. Asses the adequacy of information on hand.

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 Figure 4.1 the Problem Definition Process

1. Asses the Background of the Company, Product and Market

It is during the initial meeting between the marketing researchers and the marketing manager that
the researcher is informed regarding the background of the product or service under
investigation, including its performance history and any recent strategy changes. At his meeting,
the manager also informs the researcher regarding the company’s history, its organizational
structure, ownership situation, and overall mission. Additionally, the manager will need to
describe the product, including how it works its composition or production, its various features
or benefits, and other aspects of the physical product. The researcher should also be informed
about the marketing program, including pricing, distribution, and promotional activities.

2. Understand the Decision Maker’s Circumstances, Objectives and Resources

Managers are employed for the purpose of achieving company or organizational objectives, and
they are provided various resources to accomplish these objectives. Moreover, they operate
under various pressures and expectations dictate by their superiors or, perhaps, corporate culture.
So it is that the researcher gain a feel for the manager’s operating circumstances, for they may
well dictate the urgency or timing of the research.

It will certainly help to know the reasons the manager has requested research help. This means
that the researcher should know the manager’s objectives, which are tangible statements of a
company’s expectations. Gaining a feel for the manager’s specific objectives will help the
researcher understand the gravity of the problem. By comparing recent sales, market share, or
profitability level, for instance, with objectives, the researcher can compare how far the brand
has stayed from acceptable performance. A pattern may be discerned; that is, was the deviation a
slow trend over time, or was it a sudden plunge in to an unacceptable condition? To achieve
objectives, the manager uses a number of resources, including assets, capital, personnel,
company time and so on. Typically, a manager’s resources are apparent by inspecting the budget.
Understanding the level of the resources and how they have utilized may shed light on the real
problem.

3. Clarify the Symptoms of the Problem

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During the problem definition phase, the manager and researcher must distinguish between
symptoms, which are changes in the level of some key monitor that measures the achievement of
an objective, and their causes. A symptom may also be a perceived change in the behavior of
some market factor that suggest adverse consequences or, perhaps, implies an emerging
opportunity. Marketing managers should continually monitor these situations for changes in
marketing behavior. A sampling of commonly used monitors is provided in table 4.2. Often,
these monitors are formal, which means that they are included in the business plan or they are
part of the company’s monitoring systems. Sometimes, they are informal and much more
subjective. With informal monitors, the problem definition phase is necessary more protracted
because the researcher must construct the activity monitors and track them back in time to gain a
feel for when the symptoms moved away from the company’s acceptable levels and how much
they have wandered in to dangerous territory.

Even if formal monitors are in place, they may not present a sufficiently detailed or complete
picture of what has happened. This is sometimes referred to as the “iceberg” phenomenon, a
situation in which you must look beneath the surface to see the complete picture. The researcher
may request a breakdown by sales territory, for example, to see if market share has fallen in all
areas. Or he or she may want to look at sales for the industry as a whole to see if the
phenomenon is industry wide. An astute researcher will ask questions that sometimes tax the
manager’s patience, but they are necessary to gain an understanding of all of the facets of the
problem.

Type of Monitor Description

Sales volume The total units or birr value of units sold in a given time period.
Market share The percent of total industry sales accounted for by the company’ brands.
Profit The total profit generated by a brand.
Dealer orders The amount of goods ordered by the company’s dealers
Complaints The level of consumer complaints registered.
Competitors Actions of the competition such as price reduction, introduction of new
products, styles changes, expansion in to new territories, etc.
Table 4.2 Formal Monitors that are Helpful in Alerting Managers to Possible problems

4. Pinpoint suspected causes of the problem

Problems do not arise out of the blue- there always is an underlying cause. For example, sales do
not drop without buyers doing something from what they have been doing in the past, customers
complaints do not increase unless some dissatisfaction has occurred, and dealers do not report
returns unless there is a flaw in the product. In other words, changes in market behavior do not
occur randomly. Often, a manager suspects or even has strong opinions concerning the cause of
a bothersome symptom. In fact, he or she may even begin the conversation by telling the
researcher what to research. However, it is important that the researcher list all possible causes in

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as objective a manner as possible, because if a possible cause is overlooked, and that causes turns
out to be the real cause, all research will have been wasted.

An informal situation analysis was used to determine which of the several factors likely culprits
were. Common sense suggests that if a possible cause had not changed over the course of the
symptoms change, it is unlikely that it was probable causes of the problem. On the other hand, if
a possible cause had changed prior to or at about the time of symptom’s appearance, it should
remain on the ‘likely culprit’ or probable cause list. That is, any factor that changed prior to or
concurrent with the symptoms was a probable cause of the problem.

5. Specify Actions that may alleviate the problem

Managers have at their disposal certain resources, and these resources constitute the solutions
they may attempt to employ to resolve the decision problem at hand. Essentially, possible
solutions include any marketing action that the marketing manager thinks may resolve the
problem, such as price changes, product modification or improvement, promotion of any kind, or
even adjustments in channel of distribution. It is during this phase that the researcher’s marketing
education and knowledge fully comes in to play; often, both the manager and the researcher
brainstorm possible solutions. Sometimes, this phase is moderated by the marketing researcher.
At other times, the manager may independently generate several tactics that might resolve the
problem once the probable causes are identified.

6. Speculate on anticipated Consequences of the Actions

Research on anticipated consequences of each action under consideration will help determine
whether the solution is correct or not. For example, a solution might resolve the problem; on the
other, it might intensify the problem if the solution is not the correct action. To avoid resolving
the problem incorrectly, the manager asks “what if” questions regarding possible consequences
of each marketing action being considered. These questions include:
 What will be the impact not only on the problem at hand, but throughout the marketing
program, if a specific marketing action is implemented?
 What additional problems will be created if a proposed solution to the current problem is
implemented?
Typically, the range of consequences of possible actions is readily apparent. For example, if your
advertising medium is changed from the reporter to fortune, customers will see less, see more, or
see the same amount of advertising.

7. Identify the Manager’s Assumptions about the Consequences

As they define the problem, the manager and the researcher make certain assumptions, which are
assertions that certain conditions exist or that certain reactions will take place if the considered
actions are implemented. For example, the manager may say, “I am positive that our lost

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customers will come back if we drop the price to birr 150,” or “our sales should go up if we gain
more awareness by using advertising inserts in the Sunday paper or Addis Admas.”

However if a researcher questions a manager about his or her beliefs regarding the consequences
of certain proposed actions, it may turn out that the manager is not really as certain as he or she
sounds. Conversely the manager may be quite certain and cite several reasons why his or her
assumptions are valid. It is imperative, therefore, that the manager’s assumptions be analyzed for
accuracy. Assumptions bear researcher attention because they are glue that holds the decision
problem together. Given a symptom, the manager assumes that certain causes are at fault. She or
He assumes that, by taking corrective actions, the problem will be resolved and that the
symptoms will disappear. If the manager is completely certain of all of these things, there is no
need for research.

But typically uncertainness prevails, and critical assumptions about which the manager is
uncertain will ultimately factor in heavily when the researcher addresses the marketing
researcher problem. Research will help eliminate this uncertainty. At the same time, there may be
disagreement on key assumption within the manager’s company, and research is needed to
determine which competing assumption is true.

8. Asses the Adequacy of information on Hand

As the manager attempts to formulate a decision problem, available information varies in both
quantity and quality. As just noted, the manager may have information that greatly reinforces his
or her beliefs, or she or he may not have anything more than a “gut feeling” you should recall
that it is the researcher’s responsibility to provide information to the manager that will help
resolve the marketing manager’s problem.
Obviously, if the manager knows something with a high degree of certainty, it is of little value
for the researcher to conduct research to reiterate that knowledge. It is vital, therefore, that the
researcher asses the existing information state, which is the quantity and quality of evidence a
manager possesses for each of his or her assumptions.
During this assessment, the researcher should ask questions about the current information state
and determine what the desired information state is. Conceptually, the researcher seeks to
identify information gaps, which are discrepancies between the current information level and the
desired level of information at which the manager feel comfortable resolving the problem at
hand. Ultimately, information gaps are the basis for marketing research objective. Research
objectives are specific bits of knowledge that need to be gathered and that serve to close
information gaps. These objectives become the basis for the marketing researcher’s work. In
order to formulate the research objectives, the marketing researcher considers all the current
information surrounding the marketing management problem.

3.4. Formulating the Marketing Research Problem

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The marketing researcher’s first task is to talk to the marketing manager and to develop as
complete a picture of the marketing management problem as possible. The researcher develop a
tentative set of the manger’s information needs to solve the problem. Once this work is
accomplished, the researcher formulates the marketing research problem. In doing this, the
researcher goes through three steps. These are:
1. Specify Constructs and Operational Definitions
A marketing researcher generally thinks in terms of constructs when she or he listen the
marketing manager articulate the problem. A construct is a marketing term or concept that is
somehow involved in the marketing management problem that will be researched. Examples of
constructs that are often investigated in marketing research studies are listed in table 4.3.
Constructs Operational Definition
Brand Awareness Percent of respondents having heard of brand
Recall, recognition of advertising The number who remember seeing a specific ad
Knowledge of product, features What they can tell about the product
Brand familiarity Those who have seen the brand or tried it
Comprehension of product benefits What respondents think the product does for them
Attitudes, feelings towards brand The number who feel positive, negative, or neutral
Intentions to purchase The number that are planning to buy it
Past purchase or use The percent that bought it
Satisfaction How they evaluate its performance
Importance of some factor What factors determined their purchase choice
Demographics How old, what gender, and so on
Disposal of product and package What they did with the box, wrapping, or product
Brand loyalty How many times they bought the brand in the last six month
Table 4.3 a Representative List of Constructs often investigated by Marketing Researchers
Although managers and researchers share the language of constructs, the researcher translates the
construct in to an operational definition, which describes how a marketing researcher measures
the construct. That is, an operational definition implies a specific question format that will be
used in a survey to gather information about the construct at hand. You can see by examining the
operational definitions in the above table how the researcher measures each construct. In
actuality, there are several alternatives operational definitions possible for any construct, and
these are important considerations that must be determined before the operational definition is
finalized. Whereas the marketing manager thinks of constructs as a way to better understand or
better respond to this market, the marketing researcher usually envisions them as questions or
sets of questions on a questionnaire.

2. Identify Relationships
A relationship is a meaningful link believed to exist between two constructs. For instance, one
such relationship might be that customers will buy more of a product when the price is lowered,
and that they will buy less of it when the price is increased. Another relationship might be that a
particular advertising campaign will generate more positive attitude toward your brand. You

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should note that these relationships typically link the, marketing manager’s decision factors with
their anticipated outcomes. There are two basic sources for the relationships the marketing
researcher identifies. The first source is beliefs and assumptions provided by the marketing
manager. The second source is the researcher’s general marketing knowledge. Where great
uncertainty exists or where the marketing manager has not indicated a belief or suspicion, the
researcher is likely to fall back on universal accepted relationships.

3. Decide on a Model
One you take a set of constructs and order their relationships with some understandable logic,
you have created a model. Occasionally, the marketing manager can provide a model that ties
together the various constructs and their relationships. Often, mangers do not have these models
in mind so it is up to researcher to create one. Fortunately, a number of models exist that can
serve as frameworks for marketing research objectives.

3.5.Specify Research Objectives

As we indicated earlier, research objectives address information gaps that must be closed in order
for the manger to go about resolving the current problem. Generally, the researcher prepares an
itemized listing of the information objectives agreed upon by the manager as essential for this
purpose. In creating this list, the researcher must keep in mind four important qualities. Each
research objective must be precise, detailed, clear and operational. We illustrate these qualities,
using the following example of research objectives. A researcher has formulated the research
problem with a model specifying that Sheraton Addis customers will differ along demographic
factors from non-Sheraton Addis customers.

 The research objective: “compare the demographic profile of Sheraton Addis customers to
non customers using age, sex, education and annual family income.”
 To be precisemeans that the terminology is understandable to the marketing manager and
that it accurately captures the essence of each construct to be researched. In the objective
just stated, the use of the term “demographic” indicates what type of profile will be
investigated.
 Detail is provided by including the four demographic measures of age, sex, education, and
annual family income.
 The objective is clear in that there is no doubt as to what will be researched and how the
information will be presented to the manager. That is the age; sex, education, and income of
buyer will be determined and compared to those of non-buyers.
 Finally, the objective is operational. In other words, it implies specific measurement scales
and statistical analyses. These do not need to be in the list of research objectives; however,
the manager and researcher will have discussed theses in general, and the researcher should
have specific operational plans in mind. The operational factor is especially useful to the

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 staff member who will probably perform much of the mechanical aspects such as
questionnaire design or data analysis.

3.6. Research Design

Research design is the plan, structure and strategy of investigation conceived so as to obtain
answers to research questions and to control variance. It includes an outline of everything the
researcher will do including what observations to make, how to make them, and what type of
statistical analysis to use. A research design, in a way, is a set of instructions to the researcher on
how to arrange the conditions for collection and analysis of data in a manner that will achieve the
objectives of the study. In a sense, it can be taken as a control mechanism.

The formidable problem that follows the task of defining the research problem is the preparation
of the design of the research project, popularly known as the “research design”. Decisions
regarding what, where, when, how much, by what means concerning an inquiry or a research
study constitute a research design. “A research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.” In fact, the research design is the conceptual structure
within which research is conducted; it constitutes the blueprint for the collection, measurement
and analysis of data. As such the design includes an outline of what the researcher will do from
writing the hypothesis and its operational implications to the final analysis of data. Moreover,
research design is a set of advance decisions that make up the master plan specifying the
methods and procedures for collecting and analyzing the needed information.

3.6.1. The Significant of Research Design

There are reasons to justify the significant played upon research design. First, although every
research problem may seem totally unique, there are usually enough similarities among research
problems to allow us to make some decisions, in advance, as to the best plan to use to resolve the
problem. Second, there are some basic marketing research designs that can be successfully
matched to given research problems. In this way, they serve the researcher much like the blue
print serves the builder.
The main purpose of a research design is to enable the researcher to answer research questions as
validly, objectively, accurately and economically as possible. In more specific terms, a research
design sets up the framework for adequate tests of relationships among variables. In a sense, it
indicates what observations to make, how to make them, and how to analyze the data obtained
from observations. Moreover, a design specifies what type of statistical analysis to use and can
even suggest the possible conclusions to be drawn from the analysis. Any research plan is
deliberately and specifically conceived and executed to bring empirical evidence to bear on the
research problem.
3.6.2. Three Types of Research Design

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 Research designs are classified in to three traditional categories: exploratory, descriptive, and
causal. The choice of the most appropriate design depends largely upon the objective of the
research. It has been said that research has three objectives:
 To develop hypothesis,
 To measure the state of a variable of interest (that is, level of brand loyalty),
 To test hypothesis that specify the relationships between two or more variables (that is, level
of advertising and brand loyalty).
A Caution: Before discussing the three type of research design it is better to warn you about
thinking of research design solely in step-by-step fashion. Some may think that it is implied in
the discussion that the order on which the designs are presented- that is exploratory, descriptive
and causal- is the order in which theses designs should be carried out. This is incorrect.

Three points should be made relative to the interdependency of research designs.

 First, in some cases, it may be perfectly legitimate to begin any one of three designs and to
use only that one design.
 Seconds, research is an “iterative” process; by conducting one research project, we learn that
we may need additional research, and so on. This may mean that we need to utilize multiple
research designs. We could very well find, for example, that after conducting descriptive
research, we need to go back and conduct exploratory research.
 Third, if multiple designs are use in any particular order (if there is an order), it makes sense
to first conduct exploratory research, then descriptive research, and finally causal research.
The only reason for this order pattern is that each subsequent design requires greater
knowledge about the research problem on the part of the researcher. Therefore, exploratory
may give one the information needed to conduct a descriptive study which, in turn, may
provide the information necessary to design causal experiment.

1. Exploratory Research:
Exploratory research is most commonly unstructured, informal research that is undertaken to
gain background information about the general nature of the research problem. By unstructured,
we mean that exploratory research does not have a formalized set of objectives, sample plan, or
questionnaire. It is usually conducted when the research does not know much about the problem
and needs additional information or desire new or more recent information. Because exploratory
research is aimed at gaining additional information about a topic and generate possible
hypothesis to test, it is described as informal. Such research may consist of going to the library
and reading published secondary data; of asking customers, sales persons, and acquaintances for
their opinions about a company, its products, services, prices; or of simply observing every day
company practices. Exploratory research is systematic, but it is very flexible in that it allows the
researcher to investigate whatever source s/he desires and to the extent s/he feels is necessary in
order to gain a good feel for the problem at hand.

Exploratory research studies are also termed as formulate research studies. The main purpose of
such studies is that of formulating a problem for more precise investigation or of developing the

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working hypotheses from an operational point of view. The major emphasis in such studies is on
the discovery of ideas and insights. As such the research design appropriate for such studies must
be flexible enough to provide opportunity for considering different aspects of a problem under
study. Inbuilt flexibility in research design is needed because the research problem, broadly
defined initially, is transformed into one with more precise meaning in exploratory studies,
which fact may necessitate changes in the research procedure for gathering relevant data.

Uses of Exploratory Research: Exploratory research is used in a number of situations: to gain

the background information, to define terms, to clarify problems and hypothesis, and to establish
research priorities.

a) Gain Background Information: when very little is known about the problem or when the
problem has not been clearly formulated, exploratory research may be used to gain much-
needed background information.
b) Define Terms: exploratory research helps to define terms and concepts.
c) Clarify Problems and Hypothesis: exploratory research allows the researcher to define the
problem more precisely and to generate hypothesis for the upcoming study. Exploratory
research can also be beneficial in formulation of hypothesis, which are statements describing
the speculated relationships among two or more variables.
d) Establishing Research Priorities: exploratory research can help a firm prioritize research
topics in order of importance, especially when it is faced with conducting several research
studies. A review of customer compliant letters, for example, may indicate which product or
services are most in need of management’s attention.

Methods of Conducting Exploratory Research: A variety of methods are available to conduct

exploratory research. These include secondary data analysis, experience survey, case analysis,
focus groups, and project techniques.
a) Secondary Data Analysis: by secondary data analysis we refer to the process of searching
for and interpreting existing information relevant to the research problem. Secondary data are
data that have been collected for some other purpose. An analysis of secondary data is often
the “core’ of exploratory research. This is because there are many benefits to examining
secondary data and the costs are typically minimal. Furthermore, the costs for searching time
for such data are being reduced everyday as more and more computerized databases become
available.
b) Experience Survey: experience survey refers to gathering information from those thought to
be knowledgeable on the issues relevant to the research problem. For instance, if the research
problem deals with difficulties encountered when buying infant clothing, then surveys of
mothers (or fathers) with infants may be in order. Experience survey differ from surveys
conducted as part of descriptive research in that there is usually no formal attempt to ensure
that the survey results are representatives of any defined group of subjects.

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c) Case Analysis: by case analysis, we refer to a review of available information about a former
situation(s) that has some similarities to the present research problem.
d) Focus Groups: An increasing popular method of conducting exploratory research is focus
groups, which are small groups of people brought together and guided by a moderator through
unstructured, spontaneous discussion for the purpose of gaining information relevant to the
research problem. Although focus group should encourage openness on the part of the
participants, the moderator’s task is to ensure the discussion is “focused” on some general
area of interest.
e) Projective Technique: projective techniques, borrowed from the field of clinical psychology,
seek to explore hidden consumer motives for buying goods and services by asking
participants to project themselves in to a situation and then to respond to specific questions
regarding the situation. One example of such technique is the sentence completion test.

2. Descriptive Research
As the name implies, the major objective of descriptive research is to describe something,
usually market characteristics or functions. When we wish to know :-
 How many customers we have,
 What brands they buy and in what quantities,
 Which advertisement they recall, and
 What their attitudes are toward our company and our competitors,
We turn to descriptive research, which provides answers to questions such as who, what, where,
when, and how, as they are related to the research problem. Typically, answers to these
questions, are found in secondary data or by conducting surveys. Marketing decision makers
often need answers to these basic questions before they can formulate effective marketing
strategies. Consider the following example.
 Who may be defining as the firm’s (competitors) customers?
 What may be defined as the products, brands, sizes, and so on that are being purchased.
 Where may be defined as the places the customers are buying these products.
 When refers to the time or the frequency with which purchases are made.
 How may mean the ways in which customers are using the product.
Note that we can not conclusively answer the question of why using descriptive research.

Classification of Descriptive Research Studies

There are two basic descriptive research studies available to the marketing researcher; cross-
sectional and longitudinal.
Types of Study Features of Study
Cross-sectional One-time measurement, including a sample survey where the
emphasis is placed on large, representative sample.
Longitudinal Repeated measurements on the same sample, including a
traditional panels (questions remain the same) and an omnibus
panel (questions differ)
Table 5.1: Classifications of descriptive Research Studies

Compiled by: Wondwosen T. & Yalwe G……………………Marketing Research

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a) Cross-sectional studies: measure a population at only one point in time. Cross sectional
studies are very prevalent in marketing research, outnumbering longitudinal studies and
causal studying. Because cross sectional studies are one-time measurements, they are often
described as “snapshots” of the population. As an example, many magazines survey a sample
of their subscribers and ask them questions such as their age, occupation, income,
educational level, and so on. This sample data, taken a one point in time, is used to describe
the readership of the magazine in terms of demographics. Cross sectional studies normally
employee fairly large sample size, so many cross sectional studies are referred to as sample
surveys. Sample surveys are cross sectional studies whose samples are drawn in such a way
as to be representative of a specific population.

b) Longitudinal studies: repeatedly measure the same population over a period of time.
Because longitudinal studies involve multiple measurements, they are often described as
“movies” of the population. Longitudinal studies are employed by almost 50 percent of
business using marketing research. To ensure the success of longitudinal study, researcher
must have access to the same members of the sample, called a panel, so as to take repeated
measurements.
There are two types of panels: traditional panels and omnibus panels. Traditional panels ask
panel members the same questions on each panel measurement. Omnibus panels vary questions
from one panel measurement to the next. Usually, firms are interested in using data from
traditional panels because they can gain insights in to changes in consumers’ purchases,
attitudes, and so on.

3. Causal Research
Causality may be thought of as understanding a phenomenon in terms of conditional statements
of the form “if x, then y”. These “if-then” statements become our way of manipulating variables
of interest. For example, if I spend more on advertising, then sales will rise. Fortunately for
mankind, there is an inborn tendency to determine causal relationships. This tendency is ever
present in our thinking and our actions. Likewise, marketing managers are always trying to
determine what will cause a change in consumer satisfaction, a gain in market share, or an
increase sale.

Condition Description
Co-variation It must be demonstrated that the causal variables occurs with the caused variable
and that the two variables have an orderly relationships (For example, as price
goes down, sales goes up).
Time It must be demonstrated that the causal variable changed prior to or simultaneous
Sequence with observed changes in the caused variable (for example, prices were lowered
on Monday, and sales go up for Monday and all other days when price were
lower)
Systematic It must be demonstrated that all other possible causal variables are eliminated

Compiled by: Wondwosen T. & Yalwe G……………………Marketing Research

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 Elimination from candidacy (for, example, if advertising campaign began on the day we
lowered prices; we could not eliminated the ad campaign as a cause of sales
going up).
Experimental It must be demonstrated that as valid experiment has been conducted in order to
design state that the variable is unequivocally causal (for example, a formal market test
would be designed and conducted in order to determine the effect of a price
reduction on sales).
Table 5.2 Formal Conditions for Causality

The above table describes the formal requirements for causality consumers are bombarded on a
daily and sometimes even in a hourly basis by a vast multitude of factors, all of which could
cause them to act in one way or another. Nevertheless, there is a high “reward” in the market
place for even partially understanding causal relationships. Causal relationships are determined
by the use of experiments.

Compiled by: Wondwosen T. & Yalwe G……………………Marketing Research

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