Chapter 3

The Marketing Research Process

1
 The Marketing Research Process

Follow-up
Writing and
Presenting the Creation of
Report the Research
Problem/ Design
Opportunity
Identification &
Formulation
Analysis of
the Data Choice of Method
of Research

Selection of the
Collection of the
Sampling
Data
Procedure

2
Marketing Research Process
1. Problem Definition
2. Development of an Approach to the
Problem
3. Research Design
4. Field work and data collection
5. Data preparation and Analysis
6. Report preparation & presentation

Chapter 16--ANOVA
Research Process (1)
 Problem Definition (Basic issues)
– What is the (the manager’s) purpose of the
research?
– What kind of decision is management’s trying
to make
– What are alternative decision outcomes of
research
– How will research aid in decision

4
Research Process (2)
 Development of an Approach to the problem
– What are the specific research questions to be answered?
– What exploratory research is necessary to refine the
problem definition? (e.g., focus groups)
– What sources of data can be used
– What theoretical frameworks are relevant to the research?
– What analytical models can be used to guide the research?
– What are the specific research hypotheses that can be
tested to answer the research questions?

5
Research Process (3)
 Development of an Approach to the
problem (continued)
– What analytical models can be used to guide
the research?
– What are the specific research hypotheses that
can be tested to answer the research questions

6
Research Process (4)
 Research Design
– What secondary data can be used to address the research
questions?
– What additional qualitative research is needed?
– What methods will be used to collect primary
quantitative data?–if survey :
» What are the appropriate scaling and measurement procedures?
» What is the questionnaire design?
» What sampling procedures will be used
» How will the data be analyzed?

7
Research Process (5)
 Field Work and Data collection
– the actual administration of the questionnaire
 Data preparation and analysis
– coding responses to questionnaire
– developing descriptive analyses
– testing hypotheses
 Report generation & presentation

8
Research Design Formulation
 Secondary data analysis
 Qualitative research
 Methods of collecting quantitative data
 Definition of the information needed
 Measurement and scaling procedures
 Questionnaire design
 Sampling process and sample size
 Plan of Data analysis

Chapter 16--ANOVA
 Marketing Research Process
Management Decision

1. Problem Definition Problem

Exploratory
Research

2. Development of an Theoretical
Framework
Marketing Research
Problem
Analytical
Modeling

Approach to the Problem Research Hypotheses

3. Research Design Research Design

4. Field work and data collection

5. Data preparation and Analysis
6. Report preparation & presentation
Chapter 16--ANOVA
The Problem Definition Flow

Management Decision Problem

Marketing Research Problem &

Questions

Research Hypotheses

Research Design

11
Problem Definition Components
 Management Decision Problem
– The decision the manager must make to take
action
 The Marketing Research Problem
– What information is needed for the manager
to make decision
– how to obtain information

12
T15 Figure 2.3 Proper Definition of the Research Problem

Marketing Research Problem

Broad Statement

Specific Components
13
Problem Definition Components (2)
 Research Questions
– The refined statements of the components of the
research problem
 Research Hypotheses
– very specific testable propositions about
relationships between variables
 Research Design
– The plan to be followed to answer the questions

14
Decision Problems and
Research Problems (exercise)
 What pricing strategy to follow for a new
product
– assess the company’s current pricing strategy for similar
products.
– Assess competitor’s pricing strategy for products
 Whether to increase the level of advertising
expenditures on print
– Evaluate the current effectiveness of print advertising
– Compare this to the effectiveness for other media

15
Decision Problems and
Research Problems (exercise-2)
 Whether to increase in-store promotion of
existing product
– Evaluate effectiveness of present promotional scheme
by determining its impact on sales volume
 Whether to revise a bank’s electronic payment
service
– evaluate current system’s users as well as non-users’
attitudes about the service

16
 Specific
objective - 1

Statement of Broad Specific Research Results

marketing research objective - 2 design
problem objectives

Exploratory
Specific
research
objective - 3
(optional)

Chapter 16--ANOVA
Some Tools in
Problem Definition
 Exploratory research e.g.,
– Qualitative Research
» focus groups
» Depth interviews (experts, consumers)
» etc.
– Secondary data analysis
 Literature review
» Especially related theory
 Analytical Modeling

18
 The Problem Definition Flow
Management Decision Problem
Exploratory
Marketing Research Problem & Research
Theoretical Questions
Framework
Analytical
Research Hypotheses
Modeling

Research Design

19
Theory
A set of systematically related statements,
including some law-like generalizations,
that is empirically testable. The purpose of
theory is to increase scientific
understanding through a systematized
structure capable of both explaining and
predicting phenomena.

Chapter 16--ANOVA
FISHBEINS THEORY OF REASONED
ACTION (Verbal)
Actual behavior is a function of behavioral
intentions which results from the
combination of how the individual
personally evaluates a behavior and how
the individual evaluates the reaction of
others concerning the behavior

21
FISHBEINS THEORY OF REASONED
ACTION (Graphical)

Attitude
Toward
Behavior

Behavioral Behavior
Intentions

Subjective
Norm

22
FISHBEINS THEORY OF
REASONED ACTION (Mathematical)
BBIw1(AB)w2(SN)

Where:

A B b ie i
N

SN b imi
k
B  BI  w1 ( AB )  w2 ( SN )
i1 i1

and
AB= Attitude toward Behavior
SN = Subjective Norm (of reference group)
b = belief about consequences of behavior (or what
reference groups will think)
e = importance of belief
m = motivation to comply with reference groups 23
The Role of Theory in Applied Marketing Research

Research Task Role of Theory

1. Conceptualizing provides conceptual foundation
and identifying -suggests key dependent and
key variables independent variables.

suggest how independent and

2. Operationalizing
dependent variables can be measured
key variables
suggest existence of causal or
3. Selecting a associative relationships
research design -thus, causal or descriptive design

Chapter 16--ANOVA
 Research Task Role of Theory
4. Selecting a useful in defining the population
sample

5. Analyzing and guide the selection of a data analysis

interpreting strategy and the interpretation of
results.
data

findings can be interpreted in the

6. Integrating light of previous research
findings
--integrated with the existing body of
knowledge.
Chapter 16--ANOVA
Lexus
Management Decision
What can Lexus do to fight competition
from other luxury manufacturers such as
Mercedes, BMW, and Jaguar as well as
from the “near luxury” brands (Nissan
Maxima, etc.)

26
Lexus
Marketing Research Problem
 Determine the factors that influence consumer
preferences for luxury and near luxury
automobiles
– what are choice criteria adopted by consumers
when buying luxury automobiles?
– How are Lexus and competition evaluated on these
criteria?
– How does the perception of value vary for luxury
and near luxury automobiles?

27
Lexus
Research Questions
 Which is more important in buying luxury
automobiles: prestige, image, or value?

 How value conscious are buyers of Lexus?

28
Lexus
Hypotheses
 The luxury car market may be segmented
into two groups: those who are prestige
conscious and those that are value
conscious.
 Lexus car buyers are more value conscious
than buyers of competing cars but are less
value conscious as compared to buyers of
near luxury cars

29
 Marketing Research Process
Management Decision

1. Problem Definition Problem

Exploratory
Research

2. Development of an Theoretical
Framework
Marketing Research
Problem
Analytical
Modeling

Approach to the Problem Research Hypotheses

3. Research Design Research Design

4. Field work and data collection

5. Data preparation and Analysis
6. Report preparation & presentation
Chapter 16--ANOVA
T22 Figure 3.1
A Classification of Marketing Research Designs

Research Design

Exploratory Conclusive
Research Research
Design Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Single
Cross-Sectional Cross-Sectional
Design 31
Design
Exploratory Research
research designed to gain greater insight
into what the important questions and
variables are--break broad, vague problem
into smaller more precise subproblems

32
Consumption of Soft Drinks
(percentage consuming on a typical day)

Age 1950 1960 1969 1949

8-19 52.9 62.6 73.2 81.0
20-29 45.2 60.7 76.0 75.8
30-39 33.9 46.6 67.7 71.4
40-49 23.2 40.8 58.6 67.8
50+ 18.1 28.8 50.0 51.9

33
Total Coffee Penetration

Age
Class 1950 1960 1970 1980

10-19 .344 .268 .194 .078

20-29 .794 .768 .649 .453

30-39 .874 .861 .820 .680

40-49 .880 .888 .884 .761

50-59 .912 .911 .907 .823

60-69 no data .877 .880 .823

70+ no data .874 .882 .821

Chapter 16--ANOVA
Types of Research

rc h
ea
Res
v e
scr ipti
D e
Exploratory Research
Hypotheses Cau
s al R
e sea
rch

35
Purposes of Exploratory Studies
 isolate a problem for purposes of
formulating hypotheses
 establishing priorities for further research
 increasing analyst's familiarity with
problem--identifying key variables
 clarifying concepts

Chapter 16--ANOVA
Descriptive vs. Causal Studies

Descriptive Causal
Studies that
Studies that answer examine whether one
the questions who, variable causes or
what, when, determines the
and how value of another
variable

37
 Types of Research
Moderately Stringent Research Standards

rc h
ea
Res
v e
scr ipti
D e
Exploratory Research
Hypotheses Cau
s al R
e sea
rch

Flexible Research standards Very Stringent Research standards 38

Requirements for Attribution
of Causality
 Concomitant Variation
– covariation of IV and DV
 Temporal Sequence
– IV must precede DV
 Lack of Spurious Correlation

39