1. Chapter Two Copyright © 2006 McGraw-Hill/Irwin The Marketing Research Process

2. McGraw-Hill/Irwin 2 Approaches to the Research Process –Standardized Research Process –Information Perspective Four Basic Phases of the Research Process Information Research Proposal Value of the Research Process

3. McGraw-Hill/Irwin 3 Exhibit 2.1 Describe the major environmental factors influencing marketing research and their impact on the research process

4. McGraw-Hill/Irwin 4 Changing Marketing Environmental –Internet –Secondary Data –Primary Data –Gatekeeper Technology Traditional methods Privacy legislation Online marketers and researchers –Global Markets –Marketing Research –Information Research Process Describe the major environmental factors influencing marketing research and their impact on the research process Changing View of the Marketing Research Process

5. McGraw-Hill/Irwin 5 Determining the Need for Information Research –Primary Responsibility –Decision Maker Rule of thumb Explain the differences between data and information Changing View of the Marketing Research Process

6. McGraw-Hill/Irwin 6 Four Situations When Marketing Research Not Needed 1.Information already available 2.Insufficient time frame 3.Inadequate resources 4.Costs outweigh the value of the research Explain the differences between data and information Changing View of the Marketing Research Process

7. McGraw-Hill/Irwin 7 Responsibility of the Decision Maker 1.Should the research be used to collect the needed information 2.Decision makers should consider a set of evaluative questions 1.What is the perceived importance and complexity of the problem? 2.Is the problem realistically researchable? 3.Will the research findings be implemented? Explain the differences between data and information Changing View of the Marketing Research Process

8. McGraw-Hill/Irwin 8 4.Will the research design and data represent reality? 5.Will the research results and findings be used as legal evidence? 6.Is the proposed research politically motivated? Conditional reasons to consider conducting research 1.Will clarify the problem or identify marketplace changes 2.Help the company acquire a competitive advantage 3.Help achieve marketing objectives 4.Provides an understanding of future market conditions Explain the differences between data and information Changing View of the Marketing Research Process

9. McGraw-Hill/Irwin 9 Explain the differences between data and information Exhibit 2.3

10. McGraw-Hill/Irwin 10 Standardized Phases –4 Phases—Information Research Process 1.Determine the research problem 2.Select the appropriate research design 3.Execute the research design 4.Communicate the research results Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step Overview of the Information Research Process

11. McGraw-Hill/Irwin 11 Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step Exhibit 2.4

12. McGraw-Hill/Irwin 12 Four Phases— Guided by Principles of the Scientific Method 1.Formal Research—characterized as logical, objective systematic, reliable, valid, impersonal, and on going 2.Traditional—emphasizes collection and analysis of primary data 3.Informational research—equal emphasis on the use of secondary data Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step Overview of the Information Research Process

13. McGraw-Hill/Irwin 13 Transforming Raw Data Into Information –Raw Data –Data Structures –Information Overview of the Information Research Process Explain the differences between data and information

14. McGraw-Hill/Irwin 14 Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step Exhibit 2.6

15. McGraw-Hill/Irwin 15 Step 1: Identify and Clarify Information Needs –Formal Statement of the Problem Decision Problem »See following slide Illustrate and explain the critical elements of problem definition in marketing research Phase I: Determination of the Information Research Problem

16. McGraw-Hill/Irwin 16 Illustrate and explain the critical elements of problem definition in marketing research Exhibit 2.7

17. McGraw-Hill/Irwin 17 –Process—includes following activities Determine the decision maker’s purpose Understand the complete problem situation Identify and separate out measurable symptoms Determine the appropriate unit of analysis Determine the relevant variables Illustrate and explain the critical elements of problem definition in marketing research Phase I: Determination of the Information Research Problem

18. McGraw-Hill/Irwin 18 Purpose of the Research Request –Determining the research purpose— beginning of the problem definition process Use questions to develop insights into what the decision maker believes is the problem Distinguish between the symptoms and the actual causal factors Illustrate and explain the critical elements of problem definition in marketing research Phase I: Determination of the Information Research Problem

19. McGraw-Hill/Irwin 19 Illustrate and explain the critical elements of problem definition in marketing research Exhibit 2.8

20. McGraw-Hill/Irwin 20 Understand the Complete Problem –Perform Situation Analysis –Awareness of the problem provide information Decision maker’s needs Complexity of the problem situation Types of factors involved Illustrate and explain the critical elements of problem definition in marketing research Phase I: Determination of the Information Research Problem

21. McGraw-Hill/Irwin 21 –Identify and Separate Out Measurable Symptoms Separate the root problems from the observable and measurable symptoms –Determine the Unit of Analysis Individuals, households, geographical areas, etc. –Determine the Relevant Variables to the Situation Identify independent and dependent variables Information and specific constructs are relevant Illustrate and explain the critical elements of problem definition in marketing research Phase I: Determination of the Information Research Problem

22. McGraw-Hill/Irwin 22 Illustrate and explain the critical elements of problem definition in marketing research Exhibit 2.9

23. McGraw-Hill/Irwin 23 Step 2: Specify the Research Questions and Define The Research Problem –Reformulate the Problem in Scientific Terms Defining research problem influences all the remaining research steps –Two approaches General focus Specific terms –Types of Data –Determines if Requested Information Necessary Illustrate and explain the critical elements of problem definition in marketing research Phase I: Determination of the Information Research Problem

24. McGraw-Hill/Irwin 24 Step 3: Confirm Research Objectives Assess the Value of Information –Stated Research Objectives –Research Objectives Illustrate and explain the critical elements of problem definition in marketing research Phase I: Determination of the Information Research Problem

25. McGraw-Hill/Irwin 25 Step 4: Determine the Research Design and Data Sources –Exploratory Research –Descriptive Research –Causal Research –Secondary Data Sources –Primary Data Distinguish among exploratory, descriptive, and causal research designs Phase II: Select the Appropriate Research Design

26. McGraw-Hill/Irwin 26 Step 5: Determine the Sample Plan and Sample Size –Target Population –Census –Sample Sampling Plan List the critical issues in the development of a sampling plan Phase II: Select the Appropriate Research Design

27. McGraw-Hill/Irwin 27 Explain the basic differences between a probability and nonprobability sampling plan Exhibit 2.11

28. McGraw-Hill/Irwin 28 Probability Sampling –each member of the defined target population has a known chance of being selected Sampling Error Nonprobability Sampling Phase II: Select the Appropriate Research Design Explain the basic differences between a probability and nonprobability sampling plan

29. McGraw-Hill/Irwin 29 Measurement Process –How much raw data to collect –Amount of information to be inferred from the data What level of information is needed for a variable? How reliable does the information need to be? How valid does the information need to be? How does one ensure that the scale measurements are reliable and valid? What dimensions underlie the critical factors being investigated? Should single measures or multi-item measures be used to collect the data? Phase II: Select the Appropriate Research Design Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step

30. McGraw-Hill/Irwin 30 Step 7 Pretest the Questionnaire Questionnaire must be pretested Clarity of instruction and question Sequence of the topics and question Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step Phase II: Select the Appropriate Research Design

31. McGraw-Hill/Irwin 31 Step 8 Collect and Prepare Data Data Collection Methods ◊ Use Interviewers ◊ Self-administrated questionnaires ◊ Questioning Methods ◊ Observation Methods ◊ Future Methods Phase III: Execute the Research Design Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step

32. McGraw-Hill/Irwin 32 Exhibit 2.12 Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step

33. McGraw-Hill/Irwin 33 Preparation of Data ◊ Primary Data Coding Scheme Verify for accuracy ◊ Secondary Research single or multiple databases Phase III: Execute the Research Design Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step

34. McGraw-Hill/Irwin 34 Step 9: Analyze Data Create Data Combine two or more variables into indexes, ratios, constructs Analysis Procedures Frequency distribution Sample statistics Multivariate data analysis Phase III: Execute the Research Design Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step

35. McGraw-Hill/Irwin 35 Step 10 Transform Data Structures into Information –Information is created fro decision makers –Interpret the results of the statistical analysis Phase III: Execute the Research Design Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step

36. McGraw-Hill/Irwin 36 Step 11: Prepare and Present the Final Report to Management –Sections in Research Report –Submit Written Report Make oral presentation Describe and discuss four phases and ten integrative task steps involved with the research process, and explain some of the key activities within each step Phase IV: Communicate the Research Results

37. McGraw-Hill/Irwin 37 Exhibit 2.13 Identify and explain the major components of a solid research proposal

38. McGraw-Hill/Irwin 38 Value of the Research Process Changing View of the Marketing Research Process Overview of the Information Research Process Phase I: Determination of the Information Research Problem Phase II: Selection the Appropriate Research Design Phase III: Execute the Research Design Phase IV: Communicate the Research Results Develop An Information Research Proposal Summary