MARKETING RESEARCH

(704004)
Marketing department, Faculty of
Business Administrator, TDTU
Editor’s name : Bui Ngoc Tuan Anh
Contact details:
[email protected]
 Marketing Research (704004)

CHAPTER 2: DEFINING THE MARKETING

RESEARCH PROBLEM AND DEVELOPING AN
APPROACH
 Contents

• 2.1. Importance of defining a problem

• 2.2. The process of defining the problem
and developing an approach
• 2.3. Tasks involved in problem definition
• 2.4. Environmental context of the problem
• 2.5. Management decision problem and
marketing research problem

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Problem and Developing an Approach
 Contents

• 2.6. Defining the marketing research

problem
• 2.7. Components of an approach

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Problem and Developing an Approach
 Learning objectives

• Understand the importance of defining the

marketing research problem.
• Describe the tasks involved in problem
definition, including discussions,
interviews, analysis, qualitative research
• Clarify the distinction between the
management decision problem and the
marketing research problem.

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Problem and Developing an Approach
 Learning objectives

• Explain the structure of a well-defined

marketing research problem.
• Understand the ethical issues and conflicts
that arise in defining the problem and
developing the approach.

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Problem and Developing an Approach
 2.1. Importance of
defining a problem

• Defining the problem

– is the most important step, because only when
a problem has been clearly and accurately
identified can a properly research project
– Defining the marketing research problem sets
the course of the entire project.

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Problem and Developing an Approach
 2.2. The Process of defining the
problem and approach
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: Verbal, Research Hypotheses of
Theoretical Questions
Foundations Graphical, Information
Source : Naresh Malhotra, [2009], Mathematical Needed
Marketing Research: An Applied
Orientation 6th edition, Pearson
Step III: Research Design
Education, USA, page 38
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Problem and Developing an Approach
 2.3. Tasks involved in
problem definition

• Discussions with decision makers

• Interviews with Industry experts
• Secondary data analysis
• Qualitative research

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Problem and Developing an Approach
 2.3. Tasks involved in
problem definition

• Discussions with decision makers (DM)

– The problem audit
• provides a useful framework for interacting with the
DM and identifying the underlying causes of the
problem.
• is a comprehensive examination of a marketing
problem with the purpose of understanding its
origin and nature

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Problem and Developing an Approach
 2.3. Tasks involved in
problem definition

• The interaction between the DM and the

researcher should be characterized by the
7Cs:
– Communication / Cooperation
– Confidence / Candor
– Closeness / Continuity
– Creativity

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Problem and Developing an Approach
 2.3. Tasks involved in
problem definition

• Interviews with Industry experts

– individuals knowledgeable about the firm and
the industry, may help formulate the marketing
research problem both inside and outside

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Problem and Developing an Approach
 2.3. Tasks involved in
problem definition

• Secondary data analysis

– Secondary data
• Data collected for some purpose other than the
problem at hand
– Primary data
• Data originated by the researcher specifically to
address the research problem

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Problem and Developing an Approach
 2.3. Tasks involved in
problem definition

• Qualitative research
– An unstructured, exploratory research
methodology based on small samples
intended to provide insight
– and understanding of the problem setting.

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Problem and Developing an Approach
 2.4. Environmental context
of the problem

• Environmental context of the problem

– Consists of the factors that have an impact on
the definition of the marketing research
problem, including
– Past information and forecasts,
– Resources and constraints of the firm,
– Objectives of the decision maker, buyer
behavior,
– Legal environment, economic environment,
marketing and technological skills of the firm.
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Problem and Developing an Approach
 2.4. Environmental context
of the problem
PAST INFORMATION AND
FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIRONMENT

Source : Naresh Malhotra, ECONOMIC ENVIRONMENT

[2009], Marketing Research:
An Applied Orientation 6th MARKETING AND
edition, Pearson Education, TECHNOLOGICAL SKILLS
USA, page 43
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Problem and Developing an Approach
 2.5. Management decision problem
and Marketing research problem

• Management decision problem

– The problem confronting the decision maker. It
asks what the decision maker needs to do
• Marketing research problem
– A problem that entails determining what
information is needed and how it can be
obtained in the most feasible way.

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Problem and Developing an Approach
 2.5. Management decision problem
and Marketing research problem

• Management Decision Problem

– Should a new product be introduced?
– Should the advertising campaign be changed?
– Should the price of the brand be increased?

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Problem and Developing an Approach
 2.5. Management decision problem
and Marketing research problem

• Marketing Research Problem

– To determine consumer preferences and
purchase intentions for the proposed new
product
– To determine the effectiveness of the current
advertising campaign
– To determine the price elasticity of demand
and the impact on sales and profits of various
levels of price changes

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Problem and Developing an Approach
 2.6. Defining the marketing
research problem

• The general rule in defining the marketing

research problem
– (1) allow the researcher to obtain all the
information needed to address the
management decision problem
– (2) guide the researcher in proceeding with the
project

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Problem and Developing an Approach
 2.6. Defining the marketing
research problem

• Common errors in problem definition

– too broadly or too narrowly
– A broad definition does not provide clear
guidelines for the subsequent steps involved
in the project
– A narrow focus may preclude consideration of
some courses of action, particularly those that
are innovative and may not be obvious.

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Problem and Developing an Approach
 2.6. Defining the marketing
research problem

Source : Naresh Malhotra, [2009], Marketing Research: An Applied Orientation 6th edition, Pearson
Education, USA, page 43
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Problem and Developing an Approach
 2.7. Components of an Approach

• Objective/Theoretical Foundations
• Analytical Model
• Research Questions
• Hypotheses
• Specification of the Information Needed

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Problem and Developing an Approach
 2.7. Components of an Approach

• Research should be based on objective

evidence and supported by theory
• Theory
– A conceptual scheme based on foundational
statements, or axioms, that are assumed
to be true.
• Objective evidence
– Unbiased evidence that is supported by
empirical findings

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Problem and Developing an Approach
 2.7. Components of an Approach

• An analytical model is
– a set of variables and their interrelationships
designed to represent, in whole or in part,
some real system or process.
– In verbal models, the variables and their
relationships are stated in prose form.
– Such models may be mere restatements of
the main tenets of a theory.

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Problem and Developing an Approach
 2.7. Components of an Approach

• 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

12/16/2016 Patronage
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Problem and Developing an Approach
 2.7. Components of an Approach

• Mathematical models explicitly specify the

relationships among variables, usually in
equation form.
n
y = a 0
+ åa x i i
i =1

Where
y = degree of preference
a0 ,ai = model parameters to be estimated
statistically
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Problem and Developing an Approach
 2.7. Components of an Approach

• 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.

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Problem and Developing an Approach
 2.7. Components of an Approach

• Department Store Project

– RQ: Do the customers of Sears exhibit store
loyalty?
– H1: Customers who are store-loyal are less
knowledgeable about the shopping
environment.
– H2: Store-loyal customers are more risk-
averse than are non-loyal customers.

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Problem and Developing an Approach
 Development of Research
Questions and Hypotheses
Fig. 2.4
Components of the
Marketing Research Problem
Objective/
Theoretical
Framework
Research Questions
Analytical
Model

Hypotheses

Source : Naresh Malhotra, [2009], Marketing Research: An Applied Orientation 6th edition, Pearson
Education, USA, page 53
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Problem and Developing an Approach
 2.7. Components of an Approach

• Specification of the information needed

– make a list specifying all the information that
should be collected
– determine what information should be
obtained in the marketing research project

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Problem and Developing an Approach
 Source : Naresh Malhotra, [2009], Marketing Research: An Applied
Orientation 6th edition, Pearson Education, USA, page 60
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Problem and Developing an Approach
 Source : Naresh Malhotra, [2009], Marketing Research: An Applied
Orientation 6th edition, Pearson Education, USA, page 61

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Problem and Developing an Approach
 Next lecture

• Chapter 03 : Research Design

• Real Research
– More Than Just Causes, [1] page 69-70
– Waterpik Picks a Winning Product, [1] page
69-70

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Problem and Developing an Approach