1. The Marketing Research Process

2. The Research Purpose A shared understanding between manager and researcher about A shared understanding between manager and researcher about –Problem or opportunity to be studied Exploratory (qualitative) research to identify problems or opportunities Exploratory (qualitative) research to identify problems or opportunities Goal is to move from exploratory to confirmatory (quantitative) research (decision-focused) Goal is to move from exploratory to confirmatory (quantitative) research (decision-focused) –Evaluation of decision alternatives If there are no decision alternatives, no research is necessary If there are no decision alternatives, no research is necessary –Research users External bodies may require high-quality research designs External bodies may require high-quality research designs

3. Research Purpose: Your projects Manager / Researchers? Manager / Researchers? –You are the researchers – Your professor is the manager Identify the research problem: Identify the research problem: –Identify and write down your team’s research problem / opportunity that you want to study Example Case: Promoting a New Health Cub in town Example Case: Promoting a New Health Cub in town Research problem: Consumers largely ignore advertising Research problem: Consumers largely ignore advertising Research opportunity: Competitor’s facilities are outdated Research opportunity: Competitor’s facilities are outdated

4. Market Research Process 1. Agree on Research Purpose 2. Establish Research Objectives

5. Research Objective A statement, in as precise terminology as possible, of what information is needed to satisfy the research purpose A statement, in as precise terminology as possible, of what information is needed to satisfy the research purpose What do we plan to achieve (know) through this research, that dovetails into the research purpose What do we plan to achieve (know) through this research, that dovetails into the research purpose Case: Promoting a New Health Club in town Case: Promoting a New Health Club in town –Research Objective: Understanding the best way to promote the new health club For your projects: Write down your research objective For your projects: Write down your research objective

6. Explicating the Research Objective  Research Question  What specific information do we want under the broad research objective  Hypothesis Development  Can we make a specific statement about a research question which we believe to be accurate  Research Boundaries  Who should be included / excluded from the research

7. The Research Question (RQ) Specifies information the decision maker needs to achieve the research purpose Specifies information the decision maker needs to achieve the research purpose One Research Objective may lead to many research questions One Research Objective may lead to many research questions RQs used when we do not have sufficient information to state a hypothesis RQs used when we do not have sufficient information to state a hypothesis

8. Case: New Health Club: Research Questions: Consumers Ignore Advertising How much do consumers notice health club advertising in general? How much do consumers notice health club advertising in general? How much do consumers like health club advertising in general? How much do consumers like health club advertising in general? What are consumers’ perceptions about our competitors? What are consumers’ perceptions about our competitors? Which ad did consumers rate the highest? The lowest? Which ad did consumers rate the highest? The lowest? When do consumers usually watch TV, what times and which channels and programs? When do consumers usually watch TV, what times and which channels and programs? What attitude to advertising do consumers have? What attitude to advertising do consumers have? Do consumers frequently ‘zip’ and ‘zap’ when the commercial breaks come on? Do consumers frequently ‘zip’ and ‘zap’ when the commercial breaks come on? What is our consumers attitude to being personally approached to sell? What is our consumers attitude to being personally approached to sell?

9. Case: New Health Club: Research Questions: Outdated competitor’s facilities What are the different dimensions on which consumers evaluate health clubs? What are the different dimensions on which consumers evaluate health clubs? What is their relative importance in the evaluation? What is their relative importance in the evaluation? Would “state of the art” facilities be enough reason to switch to the new health club? Would “state of the art” facilities be enough reason to switch to the new health club? How much extra would consumers be willing to pay for “state-of-the-art facilities? How much extra would consumers be willing to pay for “state-of-the-art facilities?

10. Your projects Begin writing research questions that dovetail into your research objective Begin writing research questions that dovetail into your research objective

11. The Hypothesis A statement related to the research question which you believe to be accurate A statement related to the research question which you believe to be accurate Two types (Null & Research) – research to reveal which of these are correct Two types (Null & Research) – research to reveal which of these are correct Specify variables to be measured with / without value OR variables to be measured and relationship between them Specify variables to be measured with / without value OR variables to be measured and relationship between them

12. Hypothesis Development Research Question Research Design HypothesisResearch Purpose Theory Management Experience Exploratory Research

13. Role of the Hypothesis Introduces more detail than the RQ Introduces more detail than the RQ RQ: Why are sales in the Northeast lower than the national average? RQ: Why are sales in the Northeast lower than the national average? H1: The competitor released a new ad campaign H1: The competitor released a new ad campaign H2: The weather was abnormally cold H2: The weather was abnormally cold H3: A distribution problem prevented products from reaching the retailers H3: A distribution problem prevented products from reaching the retailers Introduces variables to be included in the research design (e.g. new ad campaign, temperature, distribution problems) Introduces variables to be included in the research design (e.g. new ad campaign, temperature, distribution problems)

14. Case: New Health Club: Hypotheses: Consumers ignore advertising? Consumers do not notice health club advertising in general Consumers do not notice health club advertising in general Consumers dislike health club advertising in general Consumers dislike health club advertising in general Consumers like competitor A more than competitor B Consumers like competitor A more than competitor B The ad with the “___” is least liked. The ad with the “___” is least liked. Consumers like being approached personally to sell Consumers like being approached personally to sell

15. Case: New Health Club: Hypotheses: Outdated competitor’s facilities Consumers feel facilities are more important than location in a health club Consumers feel facilities are more important than location in a health club “State of the art” facilities alone is not reason enough to switch health clubs “State of the art” facilities alone is not reason enough to switch health clubs Consumers prefer discounts to paying a premium for modern facilities Consumers prefer discounts to paying a premium for modern facilities Consumers are not satisfied with competitors’ facilities Consumers are not satisfied with competitors’ facilities

16. The Marketing Research Process (Research Objective) Research Purpose Research Question Hypothesis Develop a can design for the new Miller beer How effective is each of several different design alternatives? The design that conforms to the advertising message is best. Increasing Builders Square store traffic What is the current image of Builders Square? Builders Square’s image is not as good as its competitor’s image.

17. The Research Process Pyramid Research Problem Research Objectives Research Questions Hypotheses Questionnaire Items Abstract level Operational level