mr_3 the mkt research process

Essentials ofMarketing Research

William G. Zikmund

Chapter 3: The Marketing Research Process

Information

• Reduces uncertainty• Helps focus decision making

Types Of Research

• Exploratory• Descriptive• Causal

COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

Uncertainty Influences The Type Of Research

Exploratory Research Descriptive Research Causal Research(Unaware of Problem)(Aware of Problem) (Problem Clearly Defined)

“Our sales are declining and “What kind of people are buying “Will buyers purchase more of we don’t know why.” our product? Who buys our our products in a new package?

competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?” “What features do buyers prefer campaigns is more effective?”

in our product?”poss

ible

si tu

atio

n

Degree of Problem Definition

Exploratory Research

• Initial research conducted to clarify and define the nature of a problem

• Does not provide conclusive evidence• Subsequent research expected

Descriptive Research

• Describes characteristics of a population or phenomenon

• Some understanding of the nature of the problem

I keep six honest serving men, (they taught me all I knew), their names are

--Rudyard Kipling

what, and why, and when,

and how,and where and

who.”

Descriptive Research Example• Weight Watchers average customer• Woman about 40 years old• Household income of about $50,000• At least some college education• Trying to juggle children and a job

Descriptive Research Example• Men’s fragrance market• 1/3 size of women’s fragrance market• But growing at a faster pace• Women buy 80 % of men’s fragrances

Causal Research

• Conducted to identify cause and effect relationships

Identifying Causality

• A causal relationship is impossible to prove.• Evidence of causality:

– 1. The appropriate causal order of events– 2. Concomitant variation--two

phenomena vary together– 3. An absence of alternative plausible

explanations

Stages of the Research Process

Problem Discoveryand Definition

ResearchDesign

Sampling

DataGathering

Data Processingand Analysis

Conclusions andReport

Discovery andDefinition

and so on

Research Stages• Cyclical process - conclusions generate new

ideas• Stages can overlap chronologically• Stages are functionally interrelated

– Forward linkages– Backward linkages

Problemdiscovery

Problem definition(statement of

research objectives)

Secondary(historical)

data

Experiencesurvey

Pilotstudy

Casestudy

Selection ofexploratory research

technique

Selection ofbasic research

method

Experiment SurveyObservation Secondary

Data StudyLaboratory Field Interview Questionnaire

Selection ofexploratory research

techniqueSampling

Probability Nonprobability

Collection ofdata

(fieldwork)

Editing andcodingdata

Dataprocessing

Interpretationof

findings

Report

DataGathering

DataProcessingandAnalysis

Conclusionsand Report

Research Design

Problem Discoveryand Definition

The Marketing Research Process

Problem Discovery

Exploratory Research

Selection of the Basic Research Method

Selection of Sample Design

Collection of the Data

The Research Process (cont.)

Editing and Coding

Data Processing

Interpretation of the Findings

Report

Stages In The Research Process

• Problem Discovery and Problem Definition• Research Design• Sampling• Data Gathering• Data Processing and Analysis• Conclusions And Report

Problem Discovery And Definition

• First step• 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

Symptom Detection

Problem Definition

Statement of Research Objectives

Analysis of the SituationExploratory Research

(Optional)

STAGE 1: Defining the Problem Results in Clear Cut Research Objectives

Ascertainthe

decisionmaker’s

objectives.

Understandthe

backgroundof the

problem.

Isolate andidentify theproblems,

not thesymptoms.

Determinethe unit

of analysis

Determinethe

relevantvariables

State theresearch

questionsand

researchobjectives.

The Process of Problem Definition

Ascertain the Decision Maker’s Objectives

Understand the Background of the Problem

Isolate and Identify the Problems, Not the Symptoms

The Iceberg Principle

Problem DefinitionOrganization Symptoms Based on Symptom True Problem

Twenty-year-old neighborhood swimming association in a major city.

Membership has been declining for years. New water park with wave pool and water slides moved into town a few years ago.

Neighborhood residents prefer the expensive water park and have negative image of swimming pool.

Demographic changes: Children in this 20-year-old neighborhood have grown up. Older residents no longer 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.

Determine the Relevant Variable

• Anything that may assume different numerical values

Types of Variables

• Categorical• Continuous• Dependent• Independent

Hypothesis

• An unproven proposition• A possible solution to a problem• Guess

State the research questions and research objectives

If you do not know where you are going,any road will take you there.

Exploratory Research Techniques

• Secondary data (historical data)• Pilot study• Experience survey

Focus Group Interview

Experience Survey

“If you wish to know the road up themountain, you must ask the man who goes back and forth on it.”

-- Zenrinkusi

Specificobjective - 2

Specificobjective - 3

Specificobjective - 1

Statement ofmarketingproblem

Broadresearchobjectives

Researchdesign

Results

Exploratoryresearch(optional)

Research Design

• Master Plan• Framework For Action• Specifies Methods And Procedures

Basic Research Methods

• Surveys• Experiments• Secondary data• Observation

Sampling

• Subset of population• Who is to be sampled• How large a sample• How will sample units be selected

Data Gathering Stage

Data Processing and Analysis

Conclusions And Report Writing

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

Research Program Strategy