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Defining The Marketing Research Problem and Developing An Approach

The chapter discusses defining marketing research problems and developing appropriate approaches. It outlines the process which includes discussions with decision-makers, interviews with experts, secondary data analysis and qualitative research. Defining the precise problem and ensuring the data collected is relevant is critical. The chapter provides an example of a restaurant chain that conducted a study without clearly defining the problem, resulting in wasted resources. It emphasizes understanding the environmental context and distinguishing between management and marketing research problems.

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3K views

Defining The Marketing Research Problem and Developing An Approach

The chapter discusses defining marketing research problems and developing appropriate approaches. It outlines the process which includes discussions with decision-makers, interviews with experts, secondary data analysis and qualitative research. Defining the precise problem and ensuring the data collected is relevant is critical. The chapter provides an example of a restaurant chain that conducted a study without clearly defining the problem, resulting in wasted resources. It emphasizes understanding the environmental context and distinguishing between management and marketing research problems.

Uploaded by

oago
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter Two

Defining the Marketing


Research Problem and
Developing an Approach

2-1
Chapter
Outline
1) Overview
2) Importance of Defining a Problem
3) The Process of Defining the Problem and

Developing an Approach
4) Tasks involved in Problem Definition
i. Discussions with Decision Makers
ii. Interviews with Industry Experts
iii. Secondary Data Analysis
iv. Qualitative Research

2-2
Chapter Outline
5) Environmental Context of the Problem
i. Past Information and Forecasts
ii. Resources and Constraints
iii. Objectives
iv. Buyer Behavior
v. Legal Environment
vi. Economic Environment
vii. Marketing and Technological Skills
6) Management Decision Problem and
Marketing Research Problem
7) Defining the Marketing Research Problem

2-3
Chain Restaurant Study

One day I received a


phone call from a
research analyst who
introduced himself as
one of our alumni.
He was working for a
restaurant chain in
town and wanted help
analyzing the data he
had collected while
conducting a
marketing research
study.
2-4
Chain Restaurant Study

When we met, he presented me with a copy


of the questionnaire and asked how he
should analyze the data. My first question
to him was,

2-5
Chain Restaurant Study

When he looked
perplexed, I
explained that
data analysis is
not an
independent
exercise.

Rather, the goal of data analysis is to


PROVIDE INFORMATION RELATED TO THE
PROBLEM COMPONENTS.
2-6
Chain Restaurant Study
I was surprised to learn that
he did not have a clear
understanding of the
marketing research problem
and that a written definition
did not exist. So before going
any further, I had to define
the marketing research
Once that was done, I found that
problem.
much of the data collected was
not relevant to the problem. In
this sense, the whole study was
a waste of resources. A new
study had to be designed and
implemented to address the
problem defined. 2-7
The Problem Definition
Process
Tasks Involved
Fig. 2.1
Discussion Interviews Secondary Qualitative
with with Data Research
Decision Maker(s) Experts Analysis

Environmental Context of the Problem

Step I: Problem Definition


Management Decision Problem

Marketing Research Problem

Step II: Approach to the Problem

Analytical Specification
Objective/ Model: Research of
Theoretical Hypotheses
Verbal, Questions Information
Foundations
Graphical, Needed
Mathematica
l

Step III: Research Design


2-8
Tasks Involved in Problem
Definition

 Discussions with Decision Makers


 Interviews with Industry Experts
 Secondary Data Analysis
 Qualitative Research

2-9
The Problem Audit
The problem audit is a comprehensive examination of a
marketing problem with the purpose of understanding its
origin and nature.
1. The events that led to the decision that action is
needed, or the history of the problem.
2. The alternative courses of action available to the DM.
3. The criteria that will be used to evaluate the
alternative courses of action.
4. The potential actions that are likely to be suggested
based on the research findings.
5. The information that is needed to answer the DM's
questions.
6. The manner in which the DM will use each item of
information in making the decision.
7. The corporate culture as it relates to decision making.

2-10
The Seven Cs of Interaction

The interaction between the DM


and the researcher should be
Characterized by the seven Cs:
1. Communication
2. Cooperation
3. Confidence
4. Candor
5. Closeness
6. Continuity
7. Creativity
2-11
Environmental Context of the
Problem
Fig. 2.2
PAST INFORMATION AND
FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL


SKILLS 2-12
Management Decision Problem
Vs.
Marketing Research Problem
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.

2-13
Problem
Fig. 2.3

Marketing Research
Problem

Broad Statement

Specific
Components

2-14
At United, Food Is Uniting
the Airline with Travelers

United Airlines, as other major airlines, had to


deal with passenger loyalty (management
decision problem: how to attract more and more
loyal passengers). The broad marketing research
problem was to identify the factors that
influence loyalty of airline travelers.
2-15
At United, Food Is Uniting the
Airline with Travelers
The basic answer is to improve service.
Exploratory research, theoretical framework, and
empirical evidence revealed that the consumers’
choice of an airline is influenced by: safety, price
of the ticket, frequent-flyer program,
convenience of scheduling, and brand name.

2-16
At United, Food Is Uniting the
Airline
with Travelers

A graphical model stipulated that


consumers evaluate competing
airlines based on factors of the
choice criteria to select a preferred
airline. The problem was that
major airlines were quite similar on
these factors. Indeed, "airlines offer
the same schedules, the same
service, and the same fares.”
Consequently, United Airlines had
to find a way to differentiate itself.
Food turned out to be the solution.
2-17
At United, Food Is Uniting the
Airline with Travelers

Secondary data, like the J. D Power &


Associates' survey on "current and future
trends in the airline food industry," indicated
that "food service is a major contributor to
customers’ loyalty." This survey also
emphasized the importance of food brands. 2-18
At United, Food Is Uniting the
Airline
with Travelers
The airline's Marketrak survey told United Airlines
that "customers wanted more varied and up-to-date
food.”
The following research questions and hypotheses
may be posed.
RQ1 How important is food for airline customers?
H1: Food is an important factor for airline
travelers.
H2: Travelers value branded food.
H3: Travelers prefer larger food portions, but with
consistent quality. 2-19
Airline
with Travelers
This kind of research helped United Airlines define their
marketing research problem and develop the approach.
Focus groups and surveys were conducted to check
customers' perceptions of food in United Airlines' aircraft.
The results provided support for all the hypotheses (H1 to
H4). United Airlines then made a few changes: new
"culinary menus," larger portions of food, new coffee, and
branded products. This resulted in better service,
increasing customer satisfaction and fostering loyalty.

2-20
2-21

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