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2-1Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Two
Defining the Marketing Research Problem and
Developing an Approach
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2-2Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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
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2-3Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Outline
5) Environmental Context of the Problemi. Past Information and Forecastsii. Resources and Constraintsiii. Objectivesiv. Buyer Behaviorv. Legal Environmentvi. Economic Environmentvii. Marketing and Technological Skills
6) Management Decision Problem andMarketing Research Problem
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2-4Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Outline
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
10) Ethics in Marketing Research
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2-5Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Chapter Outline
11) Summary
12) Key Terms and Concepts
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2-6Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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.
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2-7Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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,
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2-8Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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.
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2-9Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Chain Restaurant Study
I was surprised to learn that he did not have a clear understanding of the marketing research problemand that a written definition did not exist. So before going any further, I had to define the marketing research problem.
Once that was done, I found that 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.
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2-10Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
The Problem Definition Process
Fig. 2.1DiscussionwithDecision Maker(s)
Interviewswith Experts
SecondaryData Analysis
QualitativeResearch
Management Decision Problem
Marketing Research Problem
Tasks Involved
Environmental Context of the Problem
Step I: Problem Definition
Step II: Approach to the Problem
Objective/TheoreticalFoundations
ResearchQuestions Hypotheses
Step III: Research Design
Analytical Model: Verbal, Graphical, Mathematical
SpecificationofInformationNeeded
Wechat for overseas market: The Red Pocket, etc.Adaptation vs. standardization?
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2-11Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Tasks Involved in Problem Definition
• Discussions with Decision Makers
• Interviews with Industry Experts
• Secondary Data Analysis
• Qualitative Research
• -- Become an industry expert yourself!
• Marketing research is time-consuming, costly (and risky!)
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2-12Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
The Problem Audit (symptoms vs. problems? New actions or plans without a problem)
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 action4. 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 decision7. The corporate culture as it relates to decision making
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2-13Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Factors to be Considered in theEnvironmental Context of the Problem
PAST INFORMATION AND FORECASTS
RESOURCES AND CONSTRAINTS
OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIRONMENT
ECONOMIC ENVIRONMENT
MARKETING AND TECHNOLOGICAL SKILLS
Fig. 2.2
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2-14Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
How to switch gamers to pay online instead of buying stored value cars from stores?
Players are not using the online/in app purchase function to refill the Gash card!
Promotion?Product Development?Incentives?Consumer behavior?Target market?
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2-15Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
When went wrong with using social media for re-naming a popular product?
Branding?Upgrading?
Modernizing?Digitizing?
To increase sales?To extend the
brand’s lifecycle?To target the
young segment?
How about Chuanpeipeipako川贝枇杷稿?
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2-16Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Management Decision Problem Vs. Marketing Research Problem
Management Decision Problem Marketing Research Problem
Should a new product be To determine consumer preferencesintroduced? and purchase intentions for the
proposed new product (BI)
Should the advertising To determine the effectivenesscampaign be changed? of the current advertising
campaign (awareness, liking, recall, comprehension, relation)
Should the price of the To determine the price elasticitybrand be increased? of demand and the impact on sales
and profits of various levels of price changes =(s2-s2)/s1
/(p2-p1)/p1
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2-17Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Apple – the American Icon
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2-18Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Marketing Heros
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2-19Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Bugatti Veyron, priced at $1,700,000
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2-20Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Interested?
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2-21Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Megaman Lamp
http://www.youtube.com/watch?v=-0KoVbmAib8
http://www.youtube.com/watch?v=-0KoVbmAib8http://www.youtube.com/watch?v=-0KoVbmAib8http://www.youtube.com/watch?v=-0KoVbmAib8
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2-22Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Proper Definition of the Research Problem
Marketing Research Problem
Broad Statement
Specific Components
Fig. 2.3
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2-23Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Department Store Project
Problem DefinitionIn the department store project, the marketing research problem is to determine the relative strengths and weaknesses of Sears, vis-à-vis other major competitors, with respect to factors that influence store patronage. Specifically, research should provide information on the following questions.1. What criteria do households use when selecting department
stores?2. How do households evaluate Sears and competing stores in
terms of the choice criteria identified in question 1?3. Which stores are patronized when shopping for specific
product categories?4. What is the market share of Sears and its competitors for
specific product categories?5. What is the demographic and psychological profile of the
customers of Sears? Does it differ from the profile of customers of competing stores?
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2-24Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Components of an Approach
Objectives/Theoretical Foundations (theories, e.g., price vs. demand previous works)
Analytical Model (your model or flow chart)
Research Questions
Hypotheses (relation between 2 or 3 vars)
Specification of the Information Needed
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2-25Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
The Role of Theory in Applied Marketing Research
Research Task Role of Theory
1. Conceptualizing
and identifying
key variables
Provides a conceptual foundation and understanding of the basic processes
underlying the problem situation. These processes will suggest key dependent
and independent variables.
2. Operationalizing
key variables
Theoretical constructs (variables) can suggest independent and dependent
variables naturally occurring in the real world.
3. Selecting a
research design
Causal or associative relationships suggested by the theory may indicate whether
a causal or descriptive design should be adopted.
4. Selecting a
sample
The theoretical framework may be useful in defining the population and
suggesting variables for qualifying respondents, imposing quotas, or stratifying
the population (see Chapter 11).
5. Analyzing and
interpreting data
The theoretical framework (and the models, research questions and hypotheses
based on it) guide the selection of a data analysis strategy and the interpretation
of results (see Chapter 14).
6. Integrating
findings
The findings obtained in the research project can be interpreted in the light of
previous research and integrated with the existing body of knowledge.
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2-26Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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.
Y = f(x), Y=a1X1+a2X2+….(linear, nonlinear)
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. (chart & statements)
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2-27Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Graphical Models
Graphical models are visual. They are used toisolate variables and to suggest directions ofrelationships but are not designed to providenumerical results (.e.g, AIDA model)
Awareness
Understanding: Evaluation
Preference
Patronage
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2-28Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Mathematical Models
Mathematical models explicitly specify the relationships among variables, usually in equation form.
Wherey = degree of preference
= model parameters to be estimated statistically
∑=
+=n
iii xaay
10
aa i,0
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2-29Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Development of Research Questions and Hypotheses
Fig. 2.4
Components of the
Research Questions
Hypotheses
Objective/TheoreticalFramework
AnalyticalModel
Marketing Research Problem
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2-30Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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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2-31Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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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2-32Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Department Store Project
Specification of Information NeededComponent 1• The researcher identified the following factors as part of the
choice criteria: quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, credit and billing policies. The respondents should be asked to rate the importance of each factor as it influences their store selection.
Component 2• The researcher identified nine department stores as competitors
to Sears based on discussions with management. The respondents should be asked to evaluate Sears and its nine competitors on the eight choice criteria factors.
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2-33Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Department Store Project
Component 3• 16 different product categories were selected, including
women's dresses, women's sportswear, lingerie and body fashion, junior merchandise, men's apparel, cosmetics, jewelry, shoes, sheets and towels, furniture and bedding, and draperies. The respondents should be asked whether they shop at each of the 10 stores for each of the 16 product categories.
Component 4• No additional information needs to be obtained from the
respondents.
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2-34Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Department Store Project
Component 5• Information should be obtained on the standard
demographic characteristics and the psychographic characteristics of store loyalty, credit use, appearance consciousness, and combining shopping with eating.
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2-35Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
At United, Food Is Uniting the Airline with Travelers
United Airlines, as other major airlines, had to deal withpassenger loyalty (management decision problem: how to attract more and more loyal passengers). The broadmarketing research problem was to identify the factorsthat influence loyalty of airline travelers.
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2-36Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
The basic answer is to improve service. Exploratoryresearch, theoretical framework, and empirical evidencerevealed that the consumers’ choice of an airline isinfluenced by: safety, price of the ticket, frequent-flyerprogram, convenience of scheduling, and brand name.
At United, Food Is Uniting the Airline with Travelers
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2-37Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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.
At United, Food Is Uniting the Airline with Travelers
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2-38Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Secondary data, like the J. D Power & Associates'survey on "current and future trends in the airlinefood industry," indicated that "food service is a majorcontributor to customers’ loyalty." This survey alsoemphasized the importance of food brands.
At United, Food Is Uniting the Airline with Travelers
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2-39Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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.
H4: Travelers prefer exotic food.
At United, Food Is Uniting the Airline with Travelers (other do not offer food for short flights – lower prices?)
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2-40Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
9元:全国最低价票遭疯抢
• 7月18日0时起,春秋航空公司网上抢购机票活动启动,发放20条国内航线的9元、99元、199元、399元机票2200余张
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2-41Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Characteristics that influence the research design included the identification of competing airlines (Delta, American, etc.), factors of the choice criteria (already identified), measurement of airline travel, and loyalty.
At United, Food Is Uniting the Airline with Travelers
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2-42Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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 (e.g., Godiva chocolates). This resulted in better service, increasing customer satisfaction and fostering loyalty.
At United, Food Is Uniting the Airline with Travelers
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2-43Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
International Marketing Research Examining the Impact of the Self-Reference Criterion (SRC)
1. Define the marketing research problem in terms of domestic environmental and cultural factors.
2. Define the marketing research problem in terms of foreign environmental and cultural factors. Make no judgments.
3. Isolate the self-reference criterion (SRC) influence on the problem and examine it carefully to see how it complicates the problem.
4. Redefine the problem without the SRC influence and address it for the foreign market situation.
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2-44Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Franchise-Chain Stores
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2-45Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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2-46Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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2-47Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Group Project Activity1
• Problem definition, the most important step• Research on the firm, industry, competition, and
environment (factors)• Problems vs. symptoms• Performance criteria/metrics• Concepts, variables, and their relationships• Try to develop a graphic model (flowchart)
Chapter TwoChapter OutlineChapter OutlineChapter OutlineChapter OutlineChain Restaurant StudyChain Restaurant StudyChain Restaurant StudyChain Restaurant StudyThe Problem Definition ProcessTasks Involved in Problem Definition The Problem Audit (symptoms vs. problems? New actions or plans without a problem)Factors to be Considered in the�Environmental Context of the ProblemHow to switch gamers to pay online instead of buying stored value cars from stores?Slide Number 15Management Decision Problem Vs. Marketing Research ProblemApple – the American IconMarketing HerosBugatti Veyron, priced at $1,700,000 Interested?Megaman LampProper Definition of the Research ProblemDepartment Store ProjectComponents of an Approach The Role of Theory in Applied Marketing ResearchModelsGraphical ModelsMathematical ModelsDevelopment of Research �Questions and HypothesesResearch Questions and Hypotheses Department Store ProjectDepartment Store ProjectDepartment Store ProjectDepartment Store ProjectAt United, Food Is Uniting the Airline with TravelersAt United, Food Is Uniting the Airline with TravelersSlide Number 37Slide Number 38Slide Number 399元:全国最低价票遭疯抢 Slide Number 41Slide Number 42International Marketing Research Examining the Impact of the Self-Reference Criterion (SRC)Franchise-Chain StoresSlide Number 45Slide Number 46Slide Number 47
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