Defining the Research Problem

Figure 1.4 The Marketing Research Process Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report

Problem Discovery and Definition Sampling Selection of exploratory research technique Problem discovery Problem Discovery and Definition Sampling Selection of exploratory research technique Probability Nonprobability Secondary (historical) data Experience survey Pilot study Case study Collection of data (fieldwork) Data Gathering Data Processing and Analysis Editing and coding data Problem definition (statement of research objectives) Data processing Selection of basic research method Research Design Conclusions and Report Interpretation of findings Experiment Survey Observation Secondary Data Study Report Laboratory Field Interview Questionnaire

Figure 2.3 The Problem Definition and Approach Development Process Tasks Involved Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Qualitative Research Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Step 2: Approach to the Problem Analytical Framework and Models Research Questions and Hypotheses Specification of Information Needed Step 3: Research Design

Beware the Iceberg! The Iceberg Principle The dangerous part of many marketing problems is neither visible to nor understood by many marketing managers. “Submerged” parts of the problem must be understood and including in the research design for the research to be useful.

Symptoms vs. Problems Microbrewery Symptom PD based on the Symptom Consumers prefer the taste of competitor’s brand PD based on the Symptom What type of reformulated taste is needed? True Problem Old-fashioned package influenced taste perception

Symptoms vs. Problems Manufacturer of palm-size computers with Internet access Symptom Distributors complain prices are too high PD based on the Symptom Investigate business users to learn how much prices need to be reduced True Problem Distributors do not have adequate product knowledge to communicate product’s value

Management Decision Problems vs. Marketing Research Problems Ask what information is needed and how it should be obtained Information oriented Focus on the underlying causes Management Decision Problems Ask what the decision maker needs to do Action oriented Focus on symptoms

Translating Management Problems into Research Problems (Questions) Determine the best ways the firm can communicate with potential purchasers of laptop computers Research Questions How familiar are consumers with the various brands of computers? What attitudes do consumers have toward these brands? How important are the various factors for evaluating the purchase of a laptop computer? How effective are the communications efforts of the various competitive marketers in terms of message recognition?

Figure 2.7 Errors in Defining the Market Research Problem Common Errors Problem Definition is too Broad Does Not Provide Guidelines for Subsequent Steps e.g., Improving the Company’s Image Problem Definition is too Narrow May Miss Some Important Components of the Problem e.g. Changing Prices in Response to a Competitor’s Price Change.

“Bad” vs. “Good” Research Questions Research questions should be stated as clearly as possible “Bad” research question Is advertising copy X better than advertising copy Y? “Good” research question Which advertising copy has a higher day-after recall score?

Our Management Question What is the best way to deal with proven customer concerns about e-security?

Our Research Questions Are customers truly concerned about e-security & e-privacy ? What psychographic factors influence concerns about e-security & e-privacy?

Figure 2.9 Development of Research Questio1 ns and Hypothesis Development of Research Questions & Hypothesis Components of the Marketing Research Problem Figure 2.9 Development of Research Questio1 ns and Hypothesis Analytical Framework and Models Research Questions Hypotheses

Analytical Framework & Models Research questions & hypotheses are developed within analytical frameworks Basically, theories & models Theory suggests that satisfaction improves morale & perceptions A sales manager who wants to increase market share (management problem) may Ask how to encourage salespeople to generate more sales (research question) State that (based on theory) higher job satisfaction leads to greater sales productivity (hypothesis)

Hypotheses An unproven proposition or possible solution to the problem. Assert probable answers to research questions. Hypotheses & research questions both state relationships Research questions are interrogative (ask) Hypotheses are declarative (state)

Our Hypotheses Demographic factors do not influence mental intangibility. Demographic factors do not influence trusting disposition. Demographic factors do not influence e-commerce trust. Demographic factors do not influence technophobia Demographic factors do not influence impulse buying tendency Continued on next slide

Our Hypotheses Mental intangibility negatively impacts Trust. Technophobia negatively impacts Trust. Technophobia positively influences Mental Intangibility. Trusting Disposition positively influences trust.

Our Hypotheses Trust positively impacts Intentions. Trust negatively impacts E-Concerns. Impulse Buying Tendency negatively impacts E-Concerns. Impulse Buying Tendency positively impacts E-Behavior.

Our Hypotheses Impulse Buying Tendency positively impacts Intentions. E-Concerns negatively impact E-Behavior. E-Concerns negatively impact Intentions. E-Behavior positively impacts Intentions.