Marketing Research: An Applied

Orientation
Seventh Edition

Chapter 2
Defining the Marketing
Research Problem and
Developing an Approach

Copyright © 2019, 2010, 2007 by Pearson Education, Inc. All Rights Reserved.
 2-2

Chapter Outline (1 of 4)

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
 2-3

Chapter Outline (2 of 4)

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
 2-4

Chapter Outline (3 of 4)

7) Defining the Marketing Research Problem

8) Components of an Approach
I. Objective / Theoretical Foundations
II. Analytical Model
III. Research Questions
IV. Hypothesis
V. Specification of Information Needed
9) International Marketing Research
 2-5

Chapter Outline (4 of 4)

10) Marketing Research & Social Media

11) Mobile Marketing Research
12) Ethics in Marketing Research
13) Summary
 2-6

Importance of Problem definition

 Problem definition: is stating the
general problem and identifying its
specific components (components of the
marketing research problem).
 Clear and precise definition of the
research problem is necessary for
research design and implementation.
 In fact, clear problem definition is
important for the success of all the
following steps.
 Therefore, clear definition of the
research problem is vital for the success
of the whole research.
 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: Verbal, Research of
Theoretical Hypotheses
Graphical, Questions Information
Foundations
Mathematical Needed

Step III: Research Design

 2-8

Tasks Involved in Problem Definition

 Discussions with Decision Makers

(DM)
 Interviews with Industry Experts
 Secondary Data Analysis
 Qualitative Research
Discussions with DM: the Problem 2-9

Audit
 Problem audit: is a comprehensive examination of a
marketing problem with the purpose of understanding its
origin and nature.
 It involves discussions with DM over the following issues:
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 that characterize the interaction
between the Researcher and DM

Interaction between DM and researcher

should be characterized by the following
seven Cs:
1. Communication: free exchange of ideas
2. Cooperation: both sides must cooperate
3. Confidence: mutual trust should prevail
4. Candor: no hidden agenda. Openness should exist
5. Closeness: warmth of the relationship should exist
6. Continuity: interaction should be continuous
7. Creativity: informality (not formality) of the
interaction should lead to creativity
 2-11

Interviews with Industry Experts

 Two difficulties arise:
1. Many individuals who claim to be
knowledgeable do not really possess the
required expertise
2. Real industry experts are hard to locate
and reach.
 Clearly, there are some difficulties to
reach industry experts in consumer
markets.
 Therefore, interviews with industry
experts can be easier and more
feasible in marketing research in
industrial markets (for industrial firms,
or for industrial products).
 2-12

Secondary data analysis

 Secondary data: includes data
collected for some purpose other than
the problem at hand.
 Sources of secondary data may include
libraries, industry publications,
statistical data, … etc.
 Secondary data is economical and quick
source of background information.
 Primary data: is data collected by the
researcher specifically to address the
research problem.
 Primary data should be collected only
after the available secondary data has
been fully analyzed.
 2-13

Qualitative Research
 Qualitative Research: is an unstructured,
exploratory in nature, based on small
samples (using interviews), intended to
provide insight and understanding of the
research problem situation.
 Other forms of exploratory research include
pilot surveys (less structured with small
samples) and case studies (intensive
investigation of few selected cases).
 Environmental Context of the 2-14

Problem
 Environmental Context of the Problem:
involves the factors that have an impact on the
definition of the research problem.
 Next slide shows a list of these factors
 2-15
Factors to be Considered in the
Environmental Context of the Problem
Fig. 2.2
PAST INFORMATION AND
FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES (goals of the org. and the

DM )

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL

SKILLS
 2-16
Management Decision Problem Vs.
Marketing Research Problem
 2-17
Management Decision Problem Vs.
Marketing Research Problem: examples

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.
Proper Definition of the Research 2-18

Problem
Fig. 2.3

Marketing Research Problem

Broad Statement

Specific
Components
 2-19

Components of the Approach

1. Objective/Theoretical Foundations
2. Analytical Models
3. Research Questions
4. Hypotheses
5. Specification of the Information
Needed
1. Objective/Theoretical 2-20

Foundations
Objective/Theoretical Foundations: a marketing
research should be based on objective evidence
supported by theory.
 objective evidence: unbiased evidence that is
supported by empirical findings
 Theory: a conceptual assumption based on
foundational statements that are assumed to be true
 2-21
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 Chap. 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 Chap. 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.
 2-22

2. Analytical models
 An analytical model is a set of
variables and their interrelationships
designed to represent, in whole or in
part, some real system or process.
 The most common forms of models
are: Verbal, Graphical, and
Mathematical models
 See next slides…
 2-23

Verbal models
In verbal models, the variables and
their relationships are stated in
prose form. Such models may be
mere restatements of the main
points of a theory.
 2-24

Graphical Models
Graphical models: are visual. They are used to
isolate variables and to suggest directions of
Relationships. But they are not designed to
provide
numerical results, such as the following example:
Awareness

Understanding: Evaluation

Preference

Patronage
 2-25

Mathematical Models
Mathematical models: explicitly specify the
relationships among variables, usually in
equation form, such as in the following
example:
n
y a0   ai xi
i 1

Where
y = degree of preference

a0 , ai = model parameters to be estimated

statistically
Xi = store patronage factors that constitute the
choice criteria (predictors)
Research Questions and 2-26

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.
 2-27
Development of Research
Questions and Hypotheses
Fig. 2.4

Components of the
Marketing Research Problem
Objective/
Theoretica
l Research Questions
Framewor
Analytical
k
Model
Hypotheses
 2-28

Research Questions
 The research question: is the researcher’s
translation of the research problem into a
specific need for inquiry (refined statements of
the specific components of the problem).

 Research questions should be:

 Specific
 Clear
 Accompanied by a well-formulated hypothesis
 2-29

Research questions should:

o guide your literature search
o guide your decisions about the kind of
research design to employ
o guide your decisions about what data to
collect and from whom
o guide your analysis of your data
o guide your writing up of your data
o stop you from going off in unnecessary
directions and tangents
 2-30

Sources of Research Questions

 Personal interest/experience
 Theory
 The research literature
 New developments in society
 Marketing problems
 2-31

Hypothesis
 Hypothesis: is an unproven proposition
or supposition that tentatively explains
certain facts or phenomena.

this proposition should be empirically tested.

 We can also say that it is a guess or a

possible solution to a problem

 A formal statement of hypothesis can force

researchers to be clear about what they
expect to find through their study
 2-32

Example: Department Store Project

 RQ: Do the customers of Carrefour
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.
 2-33

Example: Airline survey

An Airline survey shows 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.
H4: Travelers prefer exotic food.
 2-34

Examples: hypotheses
 There is a positive relationship between school
drop-out and child abuse at home.

 Managers with non-business degree are less

capable of processing accounting data than are
those with business degree.

 Opinion leaders are more affected by mass

media communications than are non-leaders.

 Turnover will be higher among employees who

are underpaid than among those who are well-
paid.
 2-35
If you do not know where you are going,
any road will take you there.
 2-36
Examples and illustrations: Marketing
Research & Social Media (1 of 3)
Problem Definition
Social media can be used to aid in all the tasks

that need to be performed in order to define the

problem.
If the decision maker maintains a blog or has a

Facebook page, these sources provide additional

information in understanding the DM and her/his
objectives.
It is also possible to identify industry experts

and an analysis of their social media sites can

provide insights into their thinking as it relates to
the problem at hand.
 2-37
Examples and illustrations: Marketing
Research & Social Media (2 of 3)

Problem Definition [Continued]

Social media are a natural source of qualitative

secondary data and qualitative research.

Social media can also help in gaining an

understanding of the environmental context of

the problem.
In defining the marketing research problem,

analysis of social media content can provide a

good idea of the broad scope of the problem and
aid in identifying the specific components.
 2-38
Examples and illustrations: Marketing
Research & Social Media (3 of 3)

Approach to the Problem

Use of these media can be extended to incorporate

feedback from consumers as to whether the

researchers are on the right track because the
analytical models developed and the research
questions as posed by the firm were consistent with
and based upon consumer thinking and insights.
Researchers can then assess the appropriateness of

their models or whether they are asking the right

research questions. Furthermore, market researchers
can choose to openly discuss their derived hypothesis
for feedback among closed social media consumer
panels.
 2-39
Examples and illustrations:
Mobile Marketing Research

 The mobile phone has become a significant means of

communication, particularly in a business setting.
Thus, the researcher can use mobile communication
to interact with the decision maker(s) and with the
industry experts.
 MMR can be used to analyze secondary data
(Chapter 4) and to conduct qualitative research
(Chapter 5).
 Mobile internet usage has eclipsed desktop.
 MMR can be useful in performing all the four tasks
needed to define the management decision problem
and the marketing research problem as well as to
develop an approach to the problem.