Problem Definition

Problem Discovery and Definition

• Problem, opportunity, or monitor operations

• Discovery before definition
• Problem means management problem
“The formulation of the problem
is often more essential than its
solution.”

Albert Einstein
 Problem Definition
• The indication of a specific business
decision area that will be clarified by
answering some research questions.
 Defining Problem Results in
Clear Cut Research Objectives
Symptom Detection

Analysis of
the Situation

Problem Definition

Statement of
Research Objectives
 The Process of
Problem Definition
Ascertain the Determine unit of
decision maker’s analysis
objectives

Understand Determine relevant

background of the variables
problem

Isolate/identify the State research

problem, not the questions and
symptoms objectives
Ascertain the Decision Maker’s Objectives

• Decision makers’ objectives

• Managerial goals expressed in measurable
terms.

The Iceberg Principle

The principle indicating that the dangerous

part of many business problems is neither
visible to nor understood by managers
7
Understand the Background of the Problem

• Exercising judgment
• Situation analysis –

The informal gathering of background

information to familiarize researchers or
managers with the decision area.

8
 Isolate and Identify the Problems,
Not the Symptoms

Symptoms Can Be Confusing

Twenty-year-old neighborhood swimming
association:
• Membership has been declining for years.
• New water park -residents prefer the
expensive water park????
• Demographic changes: Children have grown
up
 Problem Definition
Organization Symptoms Based on Symptom True Problem

Twenty-year-old Membership has been Neighborhood Demographic changes:

neighborhood declining for years. residents prefer the Children in this 20-
swimming New water park with expensive water year-old neighborhood
association in a wave pool and water park and have have grown up. Older
major city. slides moved into negative image of residents no longer
town a few years ago. swimming pool. swim anywhere.
 Determine the Unit of Analysis
• Individuals, households, organizations, etc.
• In many studies, the family rather than the
individual is the appropriate unit of
analysis.

11
Determine the Relevant Variable
Anything that may assume different numerical
values

Types of Variables

• Categorical
• Continuous
• Dependent
• Independent
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Hypothesis

• An unproven proposition
• A possible solution to a problem
• Guess
State the research questions and research
objectives
Broad research Statement of Exploratory
objectives business research
problem

Specific Specific Specific

Objective 1 Objective 2 Objective 3

Research
Results
Design
The Problem Definition Process
Tasks Involved

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/ Research of
Theoretical Model: Verbal, Hypotheses
Questions
Foundations Graphical, Information
Mathematical Needed

Step III: Research Design

Tasks Involved in Problem Definition

• Discussions with Decision

Makers

• Interviews with Industry

Experts

• Secondary Data Analysis

• Qualitative Research
 The Problem Audit
The problem audit is a comprehensive examination of a business problem
with the purpose of understanding its origin and nature.

1. History of the problem: The events that led to the decision

that action is needed
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 Decision Maker's
questions
6. The manner in which the Decision Maker's will use each item
of information in business decision
7. The corporate culture as it relates to decision making
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
Factors to be Considered in the
Environmental Context of the Problem
PAST INFORMATION AND
FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

STAKE HOLDER BEHAVIOR

LEGAL ENVIRONMENT

ECONOMIC ENVIRONMENT

TECHNOLOGICAL SKILLS
 Management Decision Problem Vs
Business Research Problem
Management Decision Problem Business 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
 Business Research Approach

Components of an Approach

 Objective/Theoretical Foundations
 Analytical Model
 Research Questions
 Hypotheses
 Specification of the Information
Needed
The Role of Theory in Applied Marketing
Research
Research Task Role of Theory
1. Conceptualizing Provides a conceptual foundation and understanding of the basic processes
and identifying underlying the problem situation. These processes will suggest key dependent
key variables and independent variables.
2. Operationalizing Theoretical constructs (variables) can suggest independent and dependent
key variables variables naturally occurring in the real world.
3. Selecting a Causal or associative relationships suggested by the theory may indicate whether
research design a causal or descriptive design should be adopted.
4. Selecting a The theoretical framework may be useful in defining the population and
sample suggesting variables for qualifying respondents, imposing quotas, or stratifying
the population (see Chapter 11).
5. Analyzing and The theoretical framework (and the models, research questions and hypotheses
interpreting data based on it) guide the selection of a data analysis strategy and the interpretation
of results (see Chapter 14).
6. Integrating The findings obtained in the research project can be interpreted in the light of
findings previous research and integrated with the existing body of knowledge.
 Graphical Models
Graphical models are visual. They are used to
isolate variables and to suggest directions of
relationships but are not designed to provide
numerical results.

Awareness

Understanding: Evaluation

Preference
 Mathematical Models
Mathematical models explicitly specify the
relationships among variables, usually in equation
form.

n
y  a
0
 a x i i
i 1

Where
y = degree of preference

a =,amodel parameters to be estimated

0 i

statistically
 Development of Research
Questions and Hypotheses

Components of the
Marketing Research Problem
Objective/
Theoretical
Framework
Research Questions
Analytical
Model
Hypotheses
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.
 Research Proposal

• A written statement of the research design

that includes a statement explaining the
purpose of the study
• Detailed outline of procedures associated
with a particular methodology
Component of Research Proposal
• Purpose of Research
• Research Design
• Sample Design
• Data Gathering
• Data processing and Analysis
• Report Preparation
• Budget and Time Schedule
• Policy Implecations
Basic Questions - Problem Definition

• What is the purpose of the study?

• How much is already known?
• Is additional background information necessary?
• What is to be measured? How?
• Can the data be made available?
• Should research be conducted?
• Can a hypothesis be formulated?
Basic Questions -Basic Research Design

• What types of questions need to be

answered?
• Are descriptive or causal findings required?
• What is the source of the data?
Basic Questions - Basic Research Design

• Can objective answers be obtained by

asking people?
• How quickly is the information needed?
• How should survey questions be worded?
• How should experimental manipulations be
made?
Basic Questions - Selection of Sample

• Who or what is the source of the data?

• Can the target population be identified?
• Is a sample necessary?
• How accurate must the sample be?
• Is a probability sample necessary?
• Is a national sample necessary?
• How large a sample is necessary?
• How will the sample be selected?
Basic Questions - Data Gathering

• Who will gather the data?

• How long will data gathering take?
• How much supervision is needed?
• What operational procedures need to be
followed?
Basic Questions - Data Analysis

• Will standardized editing and coding

procedures be used?
• How will the data be categorized?
• What statistical software will be used?
• What is the nature of the data?
• How many variables are to be investigated
simultaneously?
• Performance criteria for evaluation?
Basic Questions - Type of Report

• Who will read the report?

• Are managerial recommendations
requested?
• How many presentations are required?
• What will be the format of the written
report?
Basic Questions - Overall Evaluation

• How much will the study cost?

• Is the time frame acceptable?
• Is outside help needed?
• Will this research design attain the stated
research objectives?
• When should the research be scheduled to
begin?
 Anticipating Outcomes
• Dummy tables
• Representations of the actual tables that will
be in the findings section of the final report;
used to gain a better understanding of what
the actual outcomes of the research will be.