8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 1/38
1-1
Chapter Two
Defining the
Marketing
Research
Problem and
Developing anApproach
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 2/38
Focus of This
Chapter
• Defining theManagementDecision Problem
• Defining theMarketingResearch Problem
• Developing anApproach to theProblem
Relationship to
Previous Chapter
• The Nature ofMarketingResearch
(Chapter 1)•Definition of
MarketingResearch(Chapter 1)
• The Marketing
Research Process(Chapter 1)
Relationship toMarketing
Research Process
Problem Definition
Research Design
Field Work
Data Preparationand Analysis
Report Preparationand Presentation
Chapter 2 - 2Copyright © 2012 Pearson Education, Inc.
Approach to Problem
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 4/38
Importance of Defining the Problem
The Process of Defining the Problem and Developing an Approach (Fig 2.3)
Environmental Context of the Problem (Fig 2.6)
Management Decision Problem (Table 2.1)
Definition of the Marketing Research Problem (Fig 2.7 - Fig 2.8)
B e a
D M !
B e a n M R !
E x p e r i e n t i a l L e a r n i n g
Wh at W o
ul d Y o uD o
?
Opening Vignette
Application to Contemporary Issues (Figs 2.10, 2.11)
International Social Media Ethics
Problem audit (Fig 2.4)
Tasks Involved
Discussionswith DM (Fig 2.5)
Interviews withExperts
SecondaryData Analysis
QualitativeResearch
Approach to the Problem (Fig 2.9)Analytical
Framework & ModelsResearch Questions &
HypothesisSpecification Of
Information Needed
Chapter 2 - 4Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 6/38
Discussions with Decision Makers
Interviews with Industry Experts
Secondary Data Analysis
Qualitative Research
Chapter 2 - 6Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 7/38
The problem audit is a comprehensive examination of a
marketing problem with the purpose of understanding its originand nature.
1. The events that led to the decision that action is needed; thehistory 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 basedon the research findings.
5. The information that is needed to answer the DM'squestions.
6. The manner in which the DM will use each item ofinformation in making the decision.
7. The corporate culture as it relates to decision making.
Chapter 2 - 7Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 9/38
Corporate Decision-Making Culture
How Will Each Item of Information Be Used by the DM?
Information Needed to Answer the DM’s Questions
Nature of Potential Actions Based on Research
Criteria for Evaluating Alternative Courses
Alternative Courses of Action Available to DM
History of the Problem
Chapter 2 - 9Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 10/38
Focus of the DM
• Loss of Market Share
Focus of the Researcher
• Superior Promotion byCompetition
• Inadequate Distribution ofCompany’s Products
• Lower Product Quality
• Price Undercutting by aMajor Competitor
Underlying Causes Symptoms
Chapter 2 - 10Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 11/38
Firm Symptoms Based on Symptoms Underlying Causes
Manufacturer
of orange
soft drinks
Consumers
say the
sugarcontent is
too high
Determine consumer
preferences for
alternative levels ofsugar content
Color. The color of the
drink is a dark shade of
orange giving theperception that the
product is too
“sugary.”
Manufacturer
of machine
tools
Customers
complain
prices aretoo high
Determine the price
elasticity of demand
Channel management.
Distributors do not
have adequate productknowledge to
communicate product
benefits to customers.
Problem Definition
Chapter 2 - 11Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 12/38
Marketing and Technological Skills
Economic Environment
Legal Environment
Buyer Behavior
Objectives of the Decision Maker
Resources and Constraints
Past Information and Forecasts
Chapter 2 - 12Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 13/38
Management-Decision Problem Marketing Research Problem
Asks what the decision maker
needs to do
Asks what information is
needed and how it should be
obtained
Action oriented
Focuses on symptoms
Information oriented
Focuses on the underlyingcauses
Chapter 2 - 13Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 14/38
Management-Decision Problem Marketing Research Problem
Should a new product be introduced? To determine consumer preferencesand purchase intentions for the
proposed new product.
Should the advertising campaign be
changed?
To determine the effectiveness of
the current advertising campaign.
Should the price of the brand beincreased?
To determine the price elasticity ofdemand and the impact on salesand profits of various levels of pricechanges.
What can Subaru do to expand its
automobile market?
To determine the various needs ofthe automobile users and the extentto which those needs were beingsatisfied by the current productoffering
Chapter 2 - 14Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 16/38
Marketing Research Problem
Broad
Statement
SPECIFIC COMPONENTS
Component 1 Component 2 Component 3
Chapter 2 - 16Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 17/38
Management-Decision Problem:
“What can Subaru do to expand its share of the
automobile market?”
Marketing Research Problem:
Determining the various needs of automobile users
and the extent to which current product offerings
were satisfying those needs.
Chapter 2 - 17Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 18/38
1. What needs do buyers of passenger cars, station
wagons, and sports utility vehicles seek to satisfy?
2. How well do existing automobile product offerings meet
these needs?
3. Is there a segment of the automobile market whose
needs are not being adequately met?
4. What automobile features does the segment identified
in number 3 desire?
5. What is the demographic and psychographic profile of
the identified segment?
Chapter 2 - 18Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 19/38
Analytical Framework and Model
Research Questions and Hypotheses
Specification of the Information Needed
Chapter 2 - 19Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 20/38
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 relationshipsare stated in prose form. Such models may be mere
restatements of the main tenets of a theory.
Chapter 2 - 20Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 21/38
Graphical modelsare visual. They are
used to isolate
variables and to
suggest directionsof relationships but
are not designed to
provide numerical
results. Patronage
Preference
Understanding: Evaluation
Awareness
Chapter 2 - 21Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 22/38
Mathematical models explicitly specify the
relationships among variables, usually in equation
form.
Where
y = degree of preference (dependent variable)
= image characteristics (independent variables)
= model parameters to be estimated statisticallyaa i,
0
Chapter 2 - 22Copyright © 2012 Pearson Education, Inc.
i x
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 23/38
Components ofthe Marketing
ResearchProblem
ResearchQuestions
Hypotheses
AnalyticalFrameworkand
Models
Chapter 2 - 23Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 24/38
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 ofinterest to the researcher. Often, a hypothesis is a
possible answer to the research question.
Chapter 2 - 24Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 26/38
By focusing on each component of the problem and
the analytical framework and models, research
questions, and hypotheses, the researcher can
determine what information should be obtained.
Chapter 2 - 26Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 27/38
Component 1
Needs of buyers of passenger cars operationalized
in terms of the attributes or features desired in an
automobile.
Needs of buyers of station wagons operationalizedin terms of the attributes or features desired in an
automobile.
Needs of buyers of sports utility vehicles
operationalized in terms of the attributes or featuresdesired in an automobile.
Chapter 2 - 27Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 28/38
Component 2
Evaluation of passenger cars on the desired
attributes.
Evaluation of station wagons on the desired
attributes. Evaluation of sports utility vehicles on the desired
attributes.
Chapter 2 - 28Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 29/38
Component 3
No new information to be collected.
Component 4
No new information to be collected.
Component 5
Demographic and psychographic characteristics.Type and number of automobiles owned.
Chapter 2 - 29Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 30/38
Chapter 2 - 30Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 31/38
Chapter 2 - 31Copyright © 2012 Pearson Education, Inc.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 33/38
Copyright © 2012 Pearson Education, Inc. Chapter 2 - 33
While developing theoretical framework, models,
research questions and hypotheses, remember that
difference in the environmental factor, especially the
sociocultural environment, can lead to difference in the
formation of perceptions, attitudes, preferences and
choice behavior. For example, orientation toward time varies
considerably across cultures, which can influence
perceptions and preferences for convenience foods.
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 34/38
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\hisobjectives.
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 problem at hand.
Copyright © 2012 Pearson Education, Inc. Chapter 2 - 34
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 35/38
Problem Definition (Cont.)
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.
Copyright © 2012 Pearson Education, Inc. Chapter 2 - 35
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 36/38
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 uponconsumer thinking and insights.
Researchers can then assess the appropriateness of
their models or whether they are asking the right
research questions. Furthermore, market researcherscan choose to openly discuss their derived hypothesis
for feedback among closed social media consumer
panels.
Copyright © 2012 Pearson Education, Inc. Chapter 2 - 36
8/13/2019 Chapter2 V9
http://slidepdf.com/reader/full/chapter2-v9 38/38
The factors to be considered when analyzing the
environmental context of the problem can be
summed up by the acronym PROBLEM:
P ast information and forecasts
R esources and constraintsO bjectives of the decision maker
B uyer behavior
L egal environmentE conomic environment
M arketing and technological skills
Copyright © 2012 Pearson Education Inc Chapter 11 38