Transcript Chapter 3 - Essentials of Marketing Research

The Marketing Research
Process
Information
• Reduces uncertainty
• Helps focus decision making
“To
guess is cheap, to guess
wrongly is expensive”
-- Chinese Proverb
Types Of Applied Research
• Exploratory
• Descriptive
• Causal
Uncertainty Influences
The Type Of Research
CAUSAL OR
DESCRIPTIVE
COMPLETELY
CERTAIN
ABSOLUTE
AMBIGUITY
EXPLORATORY
Degree of Problem Definition
Exploratory Research
(Unaware of Problem)
“Our sales are declining and
we don’t know why.”
“Would people be interested
in our new product idea?”
Descriptive Research
(Aware of Problem)
Causal Research
(Problem Clearly Defined)
“What kind of people are buying “Will buyers purchase more of
our product? Who buys our
our products in a new package?
competitor’s product?”
“Which of two advertising
“What features do buyers prefer campaigns is more effective?”
in our product?”
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
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
Exploratory Research Techniques
•
•
•
•
Secondary data (historical data)
Experience Surveys - Hoops for Hunger
Case Analysis
Focus Groups
Descriptive Research
• Questionnaires
• Brand-switching questionnaires
Causal
• Experiments
• Test Marketing
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
Research Frequency
What is the difference between?
• Cross-Sectional Study
• Longitudinal Study
Stages of the Research Process
1. Define the decision problem or
opportunity
2. Specify the research objectives
3. Develop a research design
4. Prepare for data collection
5. Collect Data
6. Analyze Data
7. Write an present research report
Research Stages
• Cyclical process - conclusions generate new
ideas
• Stages can overlap chronologically
• Stages are functionally interrelated
– Forward linkages
– Backward linkages
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
STAGE 1: Defining the Problem Results
in Clear Cut Research Objectives
Symptom Detection
Analysis of the Situation
Exploratory Research
(Optional)
Problem Definition
Statement of Research Objectives
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.
Determine
the unit
of analysis
Determine
the
relevant
variables
State the
research
questions
and
research
objectives.
Research Objective
•
•
•
•
Precise
Detailed
Clear
Operational
Research Objective Example
• Problem
– Unsure of how to get people to come to the event.
• Research Objective
– What are the perceptions of Plover/SP/MR/WR/AD
area Business/Family/Students about the HFH event on
November 14, 2007?
Is this objective precise, detailed, clear and operational?
The Iceberg Principle
Problem Definition
Obvious Symptoms
Marketing Management Problems
Organization
Twenty-year-old
neighborhood
swimming
association in a
major city.
Symptoms
Membership has been
declining for years.
New water park with
wave pool and water
slides moved into
town a few years ago.
Problem Definition
Based on Symptom
True Problem
Neighborhood
residents prefer the
expensive water
park and have
negative image of
swimming pool.
Demographic changes:
Children in this 20year-old neighborhood
have grown up. Older
residents no longer
swim anywhere.
Hypothesis
• An unproven proposition
• A possible solution to a problem
• Guess
State the research questions and
research objectives
Read Harley Case – page 53
BEER
• Beer is important to our economic stability
– Beer Information – Wisconsin
• Beer has been around for thousands of years
Why do Brewers Advertise?
• http://www.budweiser.com/
What is our Research Objective?
What questions should we
ask?
Assignment
• Beer Survey Results –
– Each student responsible for 5 completed
surveys
– Due at class time – no late
• Case Study 2-3
– Page 55