MR Process

MR Process

Problem Identification/ Definition

• A broad statement of the general problem and identification of the specific components of the MR problem

Problem Identification/ Definition

• Tasks:1. Discussions with the DMs., industry experts, analysis

of secondary data and qualitative research.- to understand the background of the problem by analyzing the environmental context.

2. Management decision problem and MR problem3. Approach to the problem• Objectives, analytical models, RQs., hypotheses,

information needed

4. Research Design

Mgmt problem & MR problem• Should a new product be

introduced?

• Should be advertising campaign be changed?

• Should the price be increased?

• To determine consumer preferences & purchase intentions for the proposed new product.

• To determine the effectiveness of the current advertising campaign

• To determine the price elasticity of demand & the impact on sales & profits of various price levels

Case: Tennis Magazine

• Tennis magazine, a publication of the New York Times co., wanted to obtain information about its readers. Though there were only 7,00,000 subscribers, the magazine had a readership of 1.6 million in 2003. they hired Signet Research, independent research company to conduct MR. the management decision problem was what changes should be made in Tennis magazine to make it more appealing to its readers.

Case: Tennis Magazine• The broad MR problem was defined as gathering information

about the subscribers of Tennis magazine. Specific components of the problem included:– Demographics: who are the men and women who subscribe to the

magazine?– Psychological characteristics & Lifestyles: how did the subscribers spend

their money and their free time? Lifestyle indicators to be examined were: fitness, travel, car rental, apparel, consumer electronics, credit cards and financial investments.

– Tennis Activity: where and how often do subscribers play tennis? What are their skill levels?

– Relationship to tennis magazine: how much time do they spend with the issues? How long do they keep them? Do they share their magazine with other tennis players?

Hypothesis

• A proposition formulated for empirical testing.• It is tentative in nature• Statement which assigns variables to cases• Guides the direction of the study• 3 conditions– Adequate for its purpose– Testable– Better than other hypotheses

Hypothesis

• Types:– Descriptive• Propositions which state the existence, size, form or

distribution of some variable.– E.g.:

» The current literacy rate in Gujarat is 67.4%» Do kids prefer Cartoon Network over Jetix?

– Relational• Statements that describe a relationship between two

variables w.r.t. some case

Hypothesis

• Types:– Relational• Statements that describe a relationship between two

variables w.r.t. some case– E.G.:

» Foreign banks are considered to be more efficient than Indian banks (Correlational)

» Increase in disposable income leads to increase in spending on entertainment & leisure (Causal)