THE PROCESS OF SCIENCE What is different? –1. Falsification! The ability to find out that you’re wrong –2. Theories and observation Movement between concepts/theory and observation –3. Regimented procedure. Slow. Lots of work.

The Marketing Research Process I.Discover and Define problem Conduct exploratory research Literature review, Secondary data, Pilot studies, Focus groups, Survey, Case study Define research objectives 2.Research design Secondary Data, Qualitative Inquiry, Survey, Experiment, Observation 3.Select sample 4.Collect data 5.Analyze data 6.Draw conclusions and prepare report

Mini Case Women's clothing store –four years decreasing profits –niche: conservative wear, not trendy –idea: target less conservative, younger buyer Apply case to each step of marketing research process.

1. Define the problem Do we really need research? –Expensive. Valuable? When we should NOT conduct research: –No time or money –Insufficient payback –Information already available Must ask the right questions –Asking the wrong ones is at best, useless; –at worst, it will lead to the wrong decision Examples: –audio CD players –New Coke

“The formulation of the problem is often more essential than its solution.” Albert Einstein

The Iceberg Principle The most dangerous part of many business problems is neither visible to nor understood by managers.

The Process of Problem Definition Ascertain the decision maker’s objectives Understand background of the problem Isolate/identify the problem, not the symptoms Determine unit of analysis Determine relevant variables State research questions and objectives

Mini case What existing research could you use? Conduct exploratory research –What kind? How? Establish research objectives –What do we want to know? Specific Measurable

2. Determine Research Design Exploratory: –Initial, unstructured, informal –When you don’t know much –Focus groups, lit review, case study, pilot study, secondary data, experience survey Descriptive: –Answers who, what, why and how –Surveys, observation Causal: –Relationships between variables –Experiments

Information types & sources Two types of data: –Secondary: already exists –Primary: you collect it Data sources: –Internal –External

Mini Case What research design will you choose? Why?

3. Select Sample Subjects –Census = all –Sample = portion Identify target population –Cost vs. generalizability Identify unit of analysis –Individual, household, community How will you select subjects –Probability vs. nonprobability

Mini Case Who will you sample? How will you do this?

4. Collect Data Determine data gathering methods –Secondary data: Internal records, reports for purchase, library, web –Primary data: Telephone, web, in person, mail, observation (in person, electronic) Properly prepare –Pretest, pilot test, main study

Mini case How will you collect the data (specifically)?

5. Analyze Data Edit data Code data Select appropriate analysis method

6. Prepare Report Goal: clear, unbiased conclusions Write for your audience

The End