Steps Involved in Marketing Research Process

Step 1: Problem identification Today’s

Mainly,
Topics
Qualitative
Research
Step 2: Research objective

Step 3: Research method

Step 4: Data collection

Step 5: Data analysis

Mainly,
Quantitative Step 6: Report writing/Managerial implications
Research
STEP 1: PROBLEM IDENTIFICATION

“A problem well put is half solved.” ― John Dewey

IMPORTANCE OF IDENTIFYING THE PROBLEM CORRECTLY

• Only when the marketing research problem has been clearly defined, research
can be designed and conducted properly.

• All the effort, time, and money spent on will be wasted if the problem is mis-
understood and ill-defined.

• Marketing research recommendations may be wrong if the problem definition is

not correct.

• Wrong problem definition/identification can be a cause of brand death.

WHEN PROBLEM IDENTIFICATION WENT WRONG

Initial MR found that people would

eat the Colgate frozen dinners and
then brush their teeth with Colgate
toothpaste.

“When people think of Colgate

they tend to think of clean teeth,
NOT frozen foods.”
WHEN PROBLEM IDENTIFICATION WENT WRONG

MR at Coca-Cola could not understand

the emotional attachment to the
original brand Coca-Cola.
Underestimated the power of the
brand. New Coke (1985)

‘We have HEARD you,’ - We are

bringing back the original brand and
formula - Goizueta, CEO of Coca-Cola
WHEN PROBLEM IDENTIFICATION WENT WRONG

“It became termed as the CHEAPEST

car by the public, and [also] I’m sorry
to say, by the company when it was
being marketed,” Ratan Tata.
Steps involved in Problem Identification

Step I: Problem Identification

Symptoms (Managers come across First)

◼ Discussions with Decision Makers

◼ Interviews with Industry Experts MR
◼ Secondary Data review Consultants’
◼ Talking to customers activities
◼ FGI, In-depth interview (Qualitative,
◼ Literature review
generally)
◼ Review of environmental contexts

◼ Ethnography study

Management Decision Problem (MDP) (What a manager NEEDS to do?)

Marketing Research Problem (MRP) (What INFORMATION is needed to answer the MDP?)
Summary of Steps I & II of conducting a Marketing Research Project
Step I: Problem Identification

Symptoms (managers come across Mainly

and are concerned) Qualitative
Research
◼ Discussions with decision makers, customers,
experts; FGI, In-depth interview,
◼ Literature review etc.

Management Decision Problem (MDP*)

(What managers need to do?)

Marketing Research Problem (MRP**)

(what info is needed to answer the MDP)

*MDP: Based on the qualitative research mentioned above, when the consultant mentions the most potential root cause (s) behind the symptom,
the client generally asks a question “How to address the root cause (s) so that the symptom mitigates” is known as MDP.

**MRP: Answering of the above MDP question is known as MRP. Consultant may answer the above MDP question in two ways: (i) We need
information and will get back after doing quantitative research or (ii) Can broadly mention what information is required and get back with specific
information after doing quantitative research.
Step 1:Problem Identification of Chumbak – A LIVE example

SYMPTOM
Decline in Sales.
Talk to DM, customers, review
of secondary data, FGI

(Potential root cause –

Loyalty)

MANAGEMENT DECISION PROBLEM (MDP)

How to revive Sales through Store loyalty?

MARKETING RESEARCH PROBLEM (MRP)

• Examine the current impacts of factors that
influence Store loyalty of Chumbak.**

Jenish Kamdar (1711022)

**We can have more than one Kucharlapati Ravi Varma (1711181)
MRP also such as “Revisit the Nukala Vijaya Lakshmi (1711194)
current Loyalty Program”. Vishwajeet Karmwar (1711439)
Nicolas Arias (17E5018)
Step 1: Problem/Opportunity Identification _Another LIVE example
Symptoms:
▪ Flipkart has around 100 million registered users on their platform
▪ Out of all these registered users only 10 million (10%) are transacting on the platform on
monthly basis (Gaps/Opportunities)
▪ As per Flipkart management, around average 65-70% registered customers across all
categories are dormant and shop at most once in a year
▪ A huge opportunity lies in the section of customers who are not active. Flipkart aims to
take active monthly users number to 80 million in the coming years

Management Decision Problem (MDP):

▪ How can Flipkart increase purchase intention of more customers?

Market Research Problems (MRPs):

▪ To understand the motivational factors that promote repurchase among customers

▪ To understand the pain points or points of friction while shopping online on Flipkart.

RMD Group Project: PGP 2018-2020

 Management Decision Problem Vs.
Marketing Research Problem – Differences

Management Decision Problem Marketing Research Problem

What the manager needs What information is needed

to do to address the root cause (s) to answer the decision maker’s
to mitigate the symptom (MDP). Questions (MDP).

Action oriented. Information oriented.

Focuses on symptoms. Focuses on underlying causes.

 Management Decision Problem Vs.
Marketing Research Problem: Few more Examples
Management Decision Problem Marketing Research Problem

Should a new product be To determine consumer preferences

introduced? and purchase intentions for the
proposed new product.

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising
campaign.

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales
and profits of various levels
of price changes.
 Management Decision Problem Vs.
Marketing Research Problem Examples
Management Decision Problem Marketing Research Problem

Increase store traffic at Central Evaluate the effectiveness of current methods

mall at Bannerghatta Road. of communication and suggest alternatives.

Allocation of 2019 Advertisement Evaluate the impact of past Airbnb advertising

budget for Airbnb across India. across India.

Should emoji be used with the Check the effective of use emoji used in the
advertisement of Chevrolet? prior advertisements (e.g., Chevrolet Cruze)
STEP 2: RESEARCH OBJECTIVE
 Research Objective

Research Objective: Converting the Business Problem into Research Problem.

Research objective should be very specific and clear (WHAT?)

Marketing Research Problem (MRP)

If the MRP is very (Broad Information)
clearly defined,
it may be considered If needed
as research objective as it is,
otherwise, further qualitative
research is needed to make it
clear for research objective.
Research Objective
(Very specific information)
 How to derive Research objective from MRP: The case of
Chumbak
SYMPTOM Step 1: Problem Identification
Decline in Sales.

MANAGEMENT DECISION PROBLEM (MDP) Qualitative research:

How to revive Sales through Store loyalty? Literature review, FGI, In-
depth interview (as the
MRP was very broad).
MARKETING RESEARCH PROBLEM (MRP)
Examine the current impacts of factors that Step 2: Research Objective
influence Store loyalty of Chumbak.
Research Objective
Examine the current impacts of
Quality, Price, Availability of
products, Product range, and
Customer service on Store loyalty
of Chumbak.
Jenish Kamdar (1711022)
Kucharlapati Ravi Varma (1711181)
Nukala Vijaya Lakshmi (1711194)
Vishwajeet Karmwar (1711439)
Nicolas Arias (17E5018)
How to represent research objective?

Research Hypothesis
statement/questions Modeling

Development
Testing
Mathematical Graphical
-Qualitative research
-Quantitative Research
-Need literature/argument
- Six steps in testing
-Report H1
Research Questions and Hypotheses

• Research questions (RQs) are refined statements of the

specific components of the problem.

• A hypothesis (H) is an unproven statement or proposition

about a factor or phenomenon that is of interest to the
researcher. Often, a hypothesis is a possible answer to the
research question.

• Hypothesis should be logically conjectured relationship

between two or more variables expressed in the form of a
testable statement
 Dependent and Independent Variables of hypotheses
development
Dependent variable – What you’re trying to explain
Independent variable - What we think causes the dependent
variable.

Independent Variable (IV/Stimuli)  Dependent Variable (DV/Response)

Hypothesis

Recall…..☺

S-O-R Model
Other variables in hypothesis development

• Moderating variables: a second independent variable that is included

because it is believed to have significant contributory or contingent effect
on the originally stated IV-DV relationship. For example, gender may act
as a moderating variable in influencing retail shopping behavior.

• Mediating variables: variables that mediate the relationship between IV

and DV such as IV (S) → Mediator (O) → DV ( R).

• Extraneous variables
– Infinite number of variables has little or no effect on a given situation
can be safely ignored
– Extraneous variables as the control
– Example, price is an extraneous variable in examining the impacts of
advertisement on sales.
 Examples of research question/statement and hypothesis:
The case of Chumbak
Research Objective
Examine the current impacts of Quality, Price,
Availability of products, Product range, and
Customer service on Store loyalty of Chumbak.

• Questions: What are the impacts of Quality and Price of products on

Store loyalty of Chumbak?

• Statement: Examine the impacts of Quality and Price of products on

Store loyalty of Chumbak?

• H1: Price of products and Store loyalty of Chumbak are negatively

related?

• H2: Quality of products has a positive impact on Store loyalty of

Chumbak?

PS: The above examples have considered only two factors from the above research objective. Similarly, you can represent remaining factors
 Models

Mathematical models are a set of variables and their

interrelationships designed to represent, in whole or in part,
some real system or process.

Graphical models are visual. They are used to isolate variables and
to suggest directions of relationships but are not designed to
provide numerical results.
Mathematical Models

Mathematical models explicitly specify the relationships among

variables, usually in equation form.
n
y = a0
+ a x i i
i=
1

Where
y = degree of preference

a ,a=
0 i model parameters to be estimated
statistically

Regression model is another example: DV = Constant + B1IV.

Graphical Models

Awareness

Understanding: Evaluation

Preference

Patronage
Examples of Mathematical and Graphical model: The case of Chumbak

Research Objective
Examine the current impacts of Quality, Price,
Availability of products, Product range, and
Customer service on Store loyalty of Chumbak.

• Mathematical model: Store loyalty = Constant – B1 (Price) + B2 (Quality)

Quality (+)

Graphical Model Store Loyalty

(-)
Price

PS: The above examples have considered only two factors from the above research objective. Similarly, you can represent remaining factors
Step 2: Research Objective (Flipkart project)

Hypotheses Graphical model

Bundles
H1: Bundled benefit associated with benefits
subscription service positively impacts associated with H1 (+)
subscription
the purchase intention services

Online purchase H2 Purchase

H2: Online purchase experience is experience Intention
associated with the purchase intention
H3
H3: Customer service is associated with Customer
service
the purchase intention

RMD Group Project: PGP 2018-2020

 Study of Consumers’ Buying Behavior in Relation to Electric Vehicles (EVs):
A comprehensive example of Steps I & II of conducting a MR Project

Step 1 : Problem Identification

Symptoms MDP MRP

What factors Examine the
Low sales of should be focused salient factors that
Electric Vehicles on to sell more are associated
(EVs) Electric Vehicles? with higher sales
of EVs.

RMD Group Project: PGP 2018-2020

 Step 2 : Research Objective
Activities involved to reach
Research Objective:
1. FGI
2. In-depth interview
3. Projective technique
(mainly qualitative research
techniques)
Research Questions
• Are consumers’ purchase intentions for Electric Vehicles determined by
• Consumers’ Awareness level?
• Price Premium on the Electric Vehicles?
• Availability of Electric Vehicles?
• Supporting Infrastructure for Electric Vehicles?
Hypothesis
• H1: Awareness of benefits of Electric Vehicles positively impacts
purchase intentions.
• H2: Price Premium on Electric Vehicles is negatively related to purchase
intentions.
• H3: Availability of Electric Vehicles is related to the purchase intentions
for Electric Vehicles.
• H4: Supporting Infrastructure for Electric Vehicles is related to the
purchase intentions for Electric Vehicles.

Models
𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝐼𝑛𝑡𝑒𝑛𝑡𝑖𝑜𝑛𝑠 =
𝐶𝑜𝑛𝑠𝑡 + 𝛽1. 𝐴𝑤𝑎𝑟𝑒𝑛𝑒𝑠𝑠 +
𝛽2. 𝑃𝑟𝑖𝑐𝑒 𝑃𝑟𝑒𝑚𝑖𝑢𝑚 +
𝛽3. 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 +
𝛽4. 𝑆𝑢𝑝𝑝𝑜𝑟𝑡𝑖𝑛𝑔 𝐼𝑛𝑓𝑟𝑎𝑠𝑡𝑟𝑢𝑐𝑡𝑢𝑟𝑒

RMD Group Project: PGP: 2018-2020

 A live example of applications of Steps I & II

SYMPTOM Step 1: Problem Identification

Decline in Sales.

MANAGEMENT DECISION PROBLEM (MDP)

How to revive Sales through Store loyalty?
Qualitative research:
Literature review, FGI, In-
MARKETING RESEARCH PROBLEM (MRP)
depth interview
Examine the current impacts of factors that
influence Store loyalty of Chumbak.
Step 2: Research Objective
• Question: What are the impacts of Quality and Price of products on Store
loyalty of Chumbak?

• Statement: Examine the impacts of Quality and Price of products on Store

loyalty of Chumbak?

• H1: Price of products and Store loyalty of Chumbak are negatively related?

• H2: Quality of products has a positive impact on Store loyalty of Chumbak?

Jenish Kamdar (1711022)
Kucharlapati Ravi Varma (1711181) • Mathematical model: Store loyalty = Constant – B1 (Price) + B2 (Quality)
Nukala Vijaya Lakshmi (1711194)
Vishwajeet Karmwar (1711439)
Nicolas Arias (17E5018)