Chapter 1 & 2

Contents
Definition of Marketing Research ............................................................................................ 2
Problem Identification Research: ............................................................................................ 2
Problem-Solving Research ..................................................................................................... 2
Marketing research process .................................................................................................... 3
Role of Marketing in Decision-Making: .................................................................................... 4
Competitive Intelligence: ....................................................................................................... 4
Decision to Conduct Marketing Research:............................................................................... 5
The marketing research industry ............................................................................................. 5
Value of Information ............................................................................................................... 6
Critical view of theory ............................................................................................................. 9
Decision Tree: When to Conduct Marketing Research .............................................................. 9
Problem Definition ............................................................................................................... 10
Environmental context of a problem ..................................................................................... 11
Step 1: Problem Definition .................................................................................................... 12
Management Decision Problem: ....................................................................................... 12
Marketing Research Problem: ........................................................................................... 12
Step 2: Development of an Approach to the Problem ............................................................. 13
Step 3: Research Design ....................................................................................................... 14
Case Study: Fresh & Organic – Expanding into the Organic Food Market ................................. 14

Ankit Pantula MR Notes P a g e |1

Definition of Marketing Research
Marketing research is a systematic process of collecting, analyzing, and interpreting data and
information relevant to marketing challenges. It is a critical tool for decision-making in business
and is essential for understanding market dynamics, consumer behavior, and the competitive
landscape. Marketing research can be broadly classified into two main categories: problem
identification research and problem-solving research.

Problem Identification Research: This type of research is conducted to identify and

define marketing problems or opportunities. It aims to understand the root causes of issues
that a business may face, such as declining sales, customer dissatisfaction, or shifts in market
trends. Problem identification research helps businesses to diagnose the situation accurately
and to set the stage for the development of strategies to address the issues.

Examples of problem identification research include:

• Market segmentation studies to understand the different groups within a market.

• Market opportunity analysis to identify potential areas for growth.

• Customer satisfaction and loyalty studies to gauge consumer sentiment.

Problem-Solving Research: Once a problem or opportunity has been identified,

problem-solving research is undertaken to develop, implement, and evaluate marketing
actions. This type of research provides the information needed to make informed decisions
about specific marketing strategies. Problem-solving research can be further divided into
several areas:

1. Product Research:

• Focuses on product design, features, and performance.

• Assesses consumer needs and preferences to guide product development.

• Tests new product concepts or evaluates existing products.

2. Pricing Research:

• Determines how much consumers are willing to pay for a product or service.

• Analyzes the impact of different pricing strategies on demand and profitability.

• Studies price elasticity and competitive pricing structures.

3. Distribution Research:

• Examines the effectiveness and efficiency of distribution channels.

• Identifies the best methods to deliver products to consumers.

• Evaluates the performance of wholesalers, retailers, and logistics providers.

4. Promotional Research:

• Assesses the effectiveness of advertising, sales promotions, and public

relations campaigns.

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 • Determines the optimal mix of promotional activities.

• Measures the impact of promotional strategies on consumer awareness and

sales.

In summary, marketing research is an indispensable part of modern business practice,

providing valuable insights that guide strategic decision-making.

Marketing research process

The marketing research process is a structured approach to gathering and analyzing information
to address marketing challenges and make informed business decisions. Here's a brief overview
of each step in the process:

Step 1: Problem Definition The first step involves clearly defining the research problem or
opportunity. This requires understanding the context of the issue, the objectives of the
stakeholders involved, and the information needed to address the problem. A well-defined
problem sets the direction for the entire research process.

Step 2: Development of an Approach to the Problem In this step, researchers develop a plan
or framework for tackling the research problem. This may involve formulating research
questions, identifying variables, and hypothesizing relationships between them. The approach
also includes considering the theoretical framework, analytical models, and research
objectives.

Step 3: Research Design Formulation Research design is the blueprint for collecting,
measuring, and analyzing data. It includes choosing the research method (qualitative,
quantitative, or mixed), selecting the sampling procedure, and determining the data collection
technique (surveys, interviews, observations, etc.). The design should be aligned with the
research objectives and be capable of addressing the research questions.

Step 4: Field Work or Data Collection This step involves gathering the data according to the
research design. It requires careful execution to ensure the accuracy and reliability of the data.
Fieldwork may be conducted by researchers themselves or outsourced to professional data
collectors. It is crucial to maintain quality control to minimize errors during this phase.

Step 5: Data Preparation and Analysis Once the data is collected, it needs to be prepared for
analysis. This includes editing, coding, transcription, and cleaning the data to ensure it is
complete and consistent. After preparation, various statistical and analytical techniques are
applied to interpret the data and extract meaningful insights.

Step 6: Report Preparation and Presentation The final step is to compile the research findings
into a report that clearly communicates the insights and recommendations based on the data
analysis. The report should address the original research problem and objectives, and it should
be presented in a format that is understandable and actionable for decision-makers. The
presentation of the findings is often accompanied by visual aids such as charts, graphs, and
tables to enhance comprehension.

Throughout the marketing research process, it is important to maintain ethical standards,

ensure the confidentiality of respondents, and adhere to the best practices of research
methodology. This systematic approach enables businesses to make data-driven decisions that
can improve their marketing strategies and overall performance.

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The role of marketing in decision-making is multifaceted and involves various activities that help
organizations understand their market environment, consumers, and competition. Here are the
key aspects of marketing's role in decision-making, including competitive intelligence and the
decision to conduct marketing research:

Role of Marketing in Decision-Making:

1. Understanding Consumer Needs and Preferences: Marketing plays a crucial role in
identifying and analyzing consumer behavior, preferences, and trends. This
understanding helps businesses tailor their products, services, and marketing strategies
to meet the needs of their target audience.

2. Segmentation and Targeting: Through market segmentation, marketing identifies

distinct groups within a market and targets them with specific strategies. This enables
businesses to focus their resources on the most promising market segments.

3. Positioning and Differentiation: Marketing helps in positioning a brand or product in

the minds of consumers and differentiating it from competitors. Effective positioning
strategies are essential for creating a unique brand identity and competitive advantage.

4. Product Development: Insights from marketing research guide product development

and innovation. Marketing ensures that new products align with consumer demands
and market gaps.

5. Pricing Strategies: Marketing informs pricing decisions by analyzing consumer price

sensitivity, competitor pricing, and the perceived value of products or services.

6. Promotional Mix: Marketing determines the most effective combination of advertising,

sales promotions, public relations, and personal selling to communicate with the target
audience and achieve marketing objectives.

7. Distribution Channels: Marketing identifies the best channels to distribute products to

consumers, considering factors like reach, cost, and convenience.

Competitive Intelligence:
Competitive intelligence involves gathering and analyzing information about competitors'
strategies, strengths, weaknesses, and market moves. It is a critical component of marketing
that informs strategic decision-making by:

• Monitoring competitors' activities and performance.

• Anticipating competitors' actions and potential market shifts.

• Identifying opportunities and threats in the competitive landscape.

• Informing strategic planning and resource allocation.

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Decision to Conduct Marketing Research:
The decision to conduct marketing research is typically based on the need for data-driven
insights to support marketing decisions. Factors influencing this decision include:

• The significance of the decision and its potential impact on the business.

• The level of uncertainty or risk associated with the decision.

• The availability of existing data and the need for additional information.

• The cost-benefit analysis of conducting research versus the potential value of the
insights gained.

• The time constraints and urgency of the decision.

Marketing research is initiated when it is clear that the information it provides will help reduce
uncertainty and improve the quality of marketing decisions. It is an investment in understanding
the market and making informed choices that can lead to competitive advantages and better
business outcomes.

The marketing research industry is a complex ecosystem of services designed to

provide businesses with the insights they need to make informed decisions. It can be broadly
categorized into internal and external research services, with external services further divided
into full-service and limited-service providers.

Internal Marketing Research: Internal research refers to the activities conducted within an
organization by its own marketing or research department. This can include:

• Analysis of sales data and customer feedback.

• Internal databases and CRM systems.

• Employee surveys and product testing.

Internal research is often the first step for businesses to gather readily available information
before seeking external assistance for more complex research needs.

External Marketing Research: External research services are provided by specialized firms that
offer a range of marketing research services to clients. These services are typically more
comprehensive and can provide insights that are not available through internal resources alone.

Full-Service Marketing Research: Full-service firms offer a complete range of research

services from the inception of a research project to the presentation of findings. They can
handle all aspects of a research project, including design, data collection, analysis, and
reporting. Full-service providers can be further categorized as follows:

1. Customized Services:

• Tailored research solutions designed to meet specific client needs.

• In-depth studies such as brand equity research, customer satisfaction, and

segmentation studies.

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 2. Syndicated Services:

• Research conducted independently by the firm and then sold to multiple clients.

• Includes industry reports, market tracking studies, and consumer panels.

3. Internet and Social Media Services:

• Utilize online platforms and social media to collect data.

• Offer services like online surveys, social listening, and digital behavior analysis.

Limited-Service Marketing Research: Limited-service providers specialize in one or a few

aspects of the research process. Clients may use these services when they only need
assistance with specific components of a research project. Limited-service providers include:

1. Field Services: Specialize in data collection through various methods such as face-to-
face interviews, telephone surveys, or observational research.

2. Qualitative Services: Focus on qualitative research methods like focus groups, in-
depth interviews, and ethnographic studies.

3. Technical & Analytical Services: Provide specialized analysis such as statistical

modeling, data mining, and advanced analytics.

4. Other Services: This can include services like questionnaire design, sample provision,
coding and data entry, and software tools for DIY research.

Value of Information
VOI measures the potential increase in utility (or reduction in cost) from obtaining additional
information before making a decision. In essence, it assesses whether the cost of acquiring new
information is justified by the potential benefits it offers.

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Scenario Breakdown

The image presents a decision tree with two options:

• Rent a large truck: This option has a fixed cost of $200.

• Rent a small truck: This option has a variable cost:
• If one trip is needed, the cost is $130.
• If two trips are needed, the cost is $130 + $150 = $280.

The probability of needing one or two trips is equal (P = 0.5 for each).

Expected Costs

• Large truck: $200 (fixed cost)

• Small truck: 0.5 * $130 + 0.5 * $280 = $205

Decision without Information Based on expected costs, renting the large truck seems more
favorable.

Value of Knowing the Number of Trips

• Now, let's consider the VOI of knowing the exact number of trips needed.
• Perfect Information: If we knew for sure whether one or two trips were needed, we could
choose the optimal option without any uncertainty.
• Cost of Perfect Information (CPI): This is the maximum amount we'd be willing to pay to
obtain this perfect information.

Calculating CPI

Scenario 1: One trip needed

• With perfect information, we'd choose the small truck (cost: $130).
• Without information, we'd likely choose the large truck (cost: $200).
• Savings: $200 - $130 = $70

Scenario 2: Two trips needed

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 • With perfect information, we'd choose the small truck (cost: $280).
• Without information, we'd likely choose the large truck (cost: $200).
• No savings

Expected Value of Perfect Information (EVPI)

EVPI = (Probability of Scenario 1 * Savings in Scenario 1) + (Probability of Scenario 2 * Savings in

Scenario 2)

EVPI = (0.5 * $70) + (0.5 * $0) = $35

Interpretation

The EVPI of $35 tells us that, on average, knowing the exact number of trips would save us $35.
Therefore, if we could obtain this information for a cost less than $35, it would be worthwhile.

In Conclusion

VOI helps us evaluate the potential benefits of acquiring additional information before making a
decision. In this case, while renting the large truck appears more cost-effective based on
expected costs, the EVPI suggests that knowing the exact number of trips could lead to
significant savings.

Chapter 2

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Critical view of theory, highlighting the following points:
• Theory Doesn't Work - What We Need is Only Practical Techniques: This statement
suggests a preference for practical application over theoretical understanding. It implies
that theory is not directly applicable to real-world situations and may even hinder
progress.
• Theory is a Conceptual Scheme Based on Foundations Statements Called Axioms, That
Are Assumed to Be True: This point emphasizes that theories are built upon foundational
assumptions or axioms. It implies that theories are not necessarily grounded in
empirical evidence and may be subject to interpretation and debate.
• A Theory Presents a Concept or Idea That is Testable. It is Not Merely Guesswork. A
Theory is a Fact-Based Framework for Describing a Phenomenon: This point attempts to
defend the value of theory by stating that theories are testable and based on evidence. It
acknowledges that theories provide a structured framework for understanding
phenomena.

Overall Perspective

To express a skepticism towards theory, arguing that it is not essential for practical application
and may be based on assumptions rather than empirical evidence. However, it also
acknowledges that theories can be valuable tools for understanding complex phenomena.

Additional Considerations

• Context Matters: The specific context in which this image is presented would be helpful
in understanding the intended meaning and target audience.
• Alternative Viewpoints: It's important to consider that there are various perspectives on
the role of theory in different fields. Some fields may rely heavily on theory, while others
may prioritize practical application.

Certainly, let's break down the decision tree presented in the image, which outlines the factors
to consider when determining whether to conduct marketing research.

Decision Tree: When to Conduct Marketing Research

The tree presents a series of questions to guide the decision-making process:

Time Constraints: Sufficient Time Available?

• Yes: Proceed to the next question.

• No: Do Not Conduct Marketing Research.

Availability of Data: Is Information Already on Hand Inadequate?

• Yes: Proceed to the next question.

• No: Do Not Conduct Marketing Research.

Nature of the Decision: Is the Decision of Strategic or Tactical Importance?

• Yes: Proceed to the next question.

• No: Do Not Conduct Marketing Research.

Benefits vs. Costs: Does the Information Value Exceed the Research Cost?

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 • Yes: Conduct Marketing Research.
• No: Do Not Conduct Marketing Research.

Interpretation

This decision tree provides a structured approach to evaluating whether marketing research is
necessary. It considers factors like time constraints, the availability of existing data, the
strategic importance of the decision, and the potential benefits versus the costs of conducting
research.

Key Takeaways:

• Time is Crucial: If there's insufficient time, research might not be feasible.

• Existing Data Matters: If adequate information is already available, research may not be
needed.
• Strategic Decisions Require More Rigor: Strategic decisions often benefit from thorough
research.
• Cost-Benefit Analysis: The potential value of the information must justify the research
cost.

In essence, the decision tree helps ensure that marketing research is conducted only when it is
likely to provide valuable insights that outweigh the time and financial investment.

Problem Definition
Defining the problem is a critical first step in the marketing research process because it sets the
direction for the entire project. A clear problem definition helps to ensure that the research is
focused and relevant, and it guides the subsequent steps in the research process. Here's why
defining the problem is so important:

1. Clarity and Focus: A well-defined problem provides clarity and focus for the research. It
helps researchers understand what information is needed and what is not, preventing
them from going off track and wasting resources on irrelevant data.

2. Resource Allocation: It allows for efficient allocation of resources by identifying the

specific areas that need investigation. This can save time and money by avoiding
unnecessary research efforts.

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 3. Objective Setting: Defining the problem helps in setting clear and measurable research
objectives, which are essential for guiding the research design and methodology.

4. Relevance: A clear problem definition ensures that the research will be relevant to the
decision-makers' needs, providing them with actionable insights that can be used to
address the issue at hand.

5. Hypothesis Formation: It aids in the formation of hypotheses or assumptions that can

be tested through the research, leading to a better understanding of the marketing
dynamics at play.

The Process of Defining the Problem and Developing an Approach: The tasks involved in this
process include:

1. Discussion with Decision Makers: Conducting a problem audit and engaging in

discussions with decision-makers to understand their perspective, the context of the
problem, and the decisions that need to be supported by the research.

2. Interviews with Experts: Speaking with industry experts or those with specialized
knowledge to gain insights that can help refine the problem definition and identify key
variables.

3. Secondary Data Analysis: Reviewing existing data from internal and external sources to
better understand the problem and its components. Secondary data can include
industry reports, sales data, customer feedback, and competitive intelligence.

Primary Data: In contrast to secondary data, primary data is collected directly from the source
for the specific purpose of the research project. It includes surveys, interviews, observations,
and experiments tailored to the research problem.

4. Qualitative Research: Employing qualitative research methods such as pilot surveys,

focus groups, in-depth interviews, and case studies to explore the problem in greater
depth. This can provide a rich understanding of the problem context and help in
identifying variables and forming hypotheses.

By carefully defining the problem and developing a systematic approach, researchers can
create a solid foundation for their marketing research efforts, ultimately leading to more
effective decision-making and better business outcomes.

Environmental context of a problem

The environmental context of a problem in marketing research refers to the set of factors that
can influence the definition and understanding of the marketing research problem. These
factors are critical as they shape the scope and direction of the research. To remember these
factors, you can use the acronym "PROBLEM":

1. Past Information and Forecasts (P): Past information includes historical data on sales,
customer feedback, and previous marketing campaigns. Forecasts involve predictions
about future market trends, consumer behavior, and industry growth. For example, a
company may look at past sales data to understand seasonal fluctuations and forecast
future demand to plan inventory levels.

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 2. Resources and Constraints (R): Resources might include the budget, time, personnel,
and technological tools available for conducting research. Constraints could be
limitations in these areas or other factors such as data availability. For instance, a small
business may have limited resources to conduct a large-scale survey but could leverage
existing customer data for insights.

3. Objectives (O): Objectives are the goals that the organization aims to achieve through
the research. They should be clear, measurable, and achievable. For example, a
company's objective might be to increase market share by 5% within the next year,
which will guide the focus of the research.

4. Buyer Behavior (B): Understanding buyer behavior involves examining how consumers
make purchasing decisions, what influences those decisions, and their patterns of
consumption. For example, a company may study how social media influences the
buying behavior of millennials to tailor its marketing strategies.

5. Legal Environment (L): The legal environment includes regulations, laws, and ethical
standards that affect marketing practices. For example, changes in data protection laws
may impact how companies collect and use customer information for research.

6. Economic Environment (E): The economic environment encompasses factors such as

the overall economy, consumer income levels, inflation rates, and unemployment rates.
For example, during an economic downturn, a company may research how consumer
spending habits change to adjust its pricing strategies.

7. Marketing and Technological Skills (M): This refers to the capabilities and expertise
available within the organization to implement marketing strategies and utilize
technology effectively. For example, a company with advanced technological skills
might leverage big data analytics for more sophisticated market segmentation.

By considering these "PROBLEM" factors, researchers can better define the marketing research
problem, ensuring that their approach is comprehensive and takes into account the broader
context in which the business operates. This holistic view is essential for conducting effective
research that leads to actionable insights and successful marketing decisions.

In the marketing research process, the first three steps are crucial for setting the stage for
effective research and analysis. Here's a breakdown of these steps:

Step 1: Problem Definition This step involves distinguishing between the management
decision problem and the marketing research problem.

Management Decision Problem: This is the problem facing the decision-makers, often stated in
an action-oriented manner. It is concerned with identifying the best course of action to take. For
example, "Should we expand our product line to include organic options to increase market
share?"

Marketing Research Problem: This is a restatement of the management decision problem in

research terms. It focuses on what information is needed and how it can be obtained to make
informed decisions. For example, "To determine the demand for organic products in our target
market and the potential impact on market share."

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Defining the marketing research problem is a delicate balance between being too broad and too
specific. A well-defined problem will guide the entire research process, ensuring that the
research objectives are clear and achievable. Here's how to approach defining the marketing
research problem with both a broad statement and specific components:

Broad Statement: The broad statement of the marketing research problem sets the general
context and outlines the scope of the issue. It is an overarching view of the challenge that the
organization is facing. This statement should be comprehensive enough to encompass the key
aspects of the problem without delving into minute details. For example:

• "Our company has experienced a decline in sales over the past two quarters, and we
need to understand the underlying factors contributing to this trend to reverse it."

Specific Components: Once the broad statement is established, it's important to break down
the problem into specific components that will form the basis of the research. These
components should be precise and focused, providing a clear direction for what information
needs to be gathered. They turn the broad problem statement into actionable research
questions. For example:

1. Market Analysis: What changes have occurred in the market during the period of
declining sales? This could include new competitors, changes in consumer preferences,
or economic shifts.

2. Product Evaluation: How do consumers perceive our products in terms of quality,

price, and value compared to competitors? This involves assessing customer
satisfaction and identifying potential areas for product improvement.

3. Distribution Channels: Are there issues with the current distribution channels that
could be affecting sales? This might involve analyzing the efficiency of the supply chain
or the effectiveness of retail partnerships.

4. Marketing Communications: How effective are our current marketing and promotional
strategies? This includes evaluating advertising campaigns, social media presence, and
other marketing efforts.

5. Customer Segmentation: Who are our current customers, and are we effectively
targeting the right segments? This involves understanding demographic, psychographic,
and behavioral characteristics of the customer base.

By clearly defining the marketing research problem with a broad statement and then specifying
the components, researchers can create a focused research plan that addresses the key issues
at hand. This ensures that the research conducted is relevant, targeted, and provides the
insights needed to make informed marketing decisions.

Step 2: Development of an Approach to the Problem This step involves

several components that lay the groundwork for the research design:

• Objective/Theoretical Foundations: Establishing clear objectives for the research and

identifying any theories that might inform the research process. For example, the theory
of planned behavior might be used to understand consumer intentions to buy organic
products.

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 • Analytical Models: Developing models to help analyze the problem. These can be:

• Verbal Models: Descriptive models that outline the variables and their
relationships in narrative form.

• Graphical Models: Visual representations of the relationships between

variables.

• Mathematical Models: Quantitative models that use mathematical expressions

to represent relationships.

• Research Questions: Formulating specific questions that the research aims to answer.
For example, "What are the primary factors that influence consumers' decisions to
purchase organic products?"

• Hypotheses: Developing testable statements based on theories or previous research.

For example, "Consumers with higher health consciousness are more likely to purchase
organic products."

• Specification of Information Needed: Determining exactly what information is

required to answer the research questions and test the hypotheses. This might include
consumer attitudes, preferences, demographics, or purchasing behaviors.

Step 3: Research Design This step involves planning how the research will be
conducted:

• Type of Research Design: Deciding whether the research will be exploratory,

descriptive, or causal. Exploratory research is used to gain insights and ideas,
descriptive research to describe characteristics of a phenomenon, and causal research
to determine cause-and-effect relationships.

• Data Collection Method: Choosing how data will be gathered, such as through surveys,
interviews, observations, or experiments.

• Sampling Plan: Determining the sample size and how participants will be selected to
ensure the results are representative of the target population.

• Measurement and Scaling Procedures: Deciding how variables will be measured and
what scales will be used to capture data.

• Data Analysis Plan: Planning the techniques that will be used to analyze the data, such
as statistical methods or content analysis.

By carefully completing these initial steps, researchers can ensure that their marketing research
is well-defined, methodologically sound, and geared towards providing actionable insights to
address the management decision problem.

Case Study: Fresh & Organic – Expanding into the Organic Food Market
Background: Fresh & Organic is a well-established grocery chain known for its high-quality
conventional food products. With the growing trend in health consciousness and sustainable
living, the company is considering expanding its product line to include organic foods. However,

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before making this strategic move, Fresh & Organic needs to understand the organic food
market, consumer preferences, and the potential impact on its brand and sales.

Step 1: Problem Definition

Management Decision Problem: Should Fresh & Organic expand its product line to include
organic foods to increase market share and meet consumer demand?

Marketing Research Problem: To determine the demand for organic products among Fresh &
Organic's target market, the potential impact on market share, and the optimal way to integrate
organic products into the current product mix.

Broad Statement: Fresh & Organic needs to assess the viability and potential profitability of
introducing an organic product line within its stores.

Specific Components:

1. Assess consumer attitudes and preferences towards organic foods within the target
market.

2. Evaluate the competitive landscape for organic products in the regions where Fresh &
Organic operates.

3. Analyze the potential impact on Fresh & Organic's brand perception by introducing
organic products.

4. Determine the price sensitivity of consumers regarding organic products.

Step 2: Development of an Approach to the Problem

Tasks Involved:

1. Discussion with Decision Makers: Engage with senior management to understand

their vision for the organic product line and how it aligns with the company's overall
strategy.

2. Interviews with Experts: Conduct interviews with industry experts in the organic food
market to gain insights into trends, challenges, and best practices.

3. Secondary Data Analysis: Review market reports, consumer behavior studies, and
competitor analysis to understand the current state of the organic food market.

4. Qualitative Research: Conduct focus groups and in-depth interviews with current
customers to explore their perceptions and expectations of organic products.

Objective/Theoretical Foundations: The research will be guided by consumer behavior

theories that explain how health consciousness and environmental concerns influence
purchasing decisions.

Analytical Model: A verbal model will be used to describe the relationship between consumer
health consciousness, environmental attitudes, and the likelihood of purchasing organic
products.

Research Questions:

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 1. What are the primary factors that influence Fresh & Organic's customers to purchase
organic products?

2. How does the price of organic products affect consumer purchasing decisions?

Hypotheses:

1. Customers with higher health consciousness are more likely to purchase organic
products.

2. There is a significant price threshold above which consumers are less likely to purchase
organic products.

Specification of Information Needed: Information on consumer demographics, purchasing

patterns, price elasticity, and competitor pricing strategies will be required.

Step 3: Research Design

Type of Research Design: A mixed-method approach will be used, combining exploratory

qualitative research with descriptive quantitative research.

Data Collection Method: Qualitative data will be collected through focus groups and
interviews, while quantitative data will be gathered via surveys distributed to a representative
sample of Fresh & Organic's customer base.

Sampling Plan: A stratified random sampling method will be employed to ensure that different
customer segments are adequately represented.

Measurement and Scaling Procedures: Likert scales will be used to measure attitudes
towards organic products, and conjoint analysis will be applied to understand the trade-offs
consumers make regarding price and product attributes.

Data Analysis Plan: Statistical analysis, including regression and cluster analysis, will be used
to identify patterns and relationships in the quantitative data. Qualitative data will be analyzed
using content analysis to extract themes and insights.

By following these steps, Fresh & Organic will be able to make an informed decision about
whether to introduce an organic product line and how to strategically position it within the
market.

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