1. 2 Defining the Marketing Research Problem
Afjal Hossain, Assistant Professor

2. Problem Definition
Defining the problem is the most important step, because only when a problem has been clearly and accurately identified can a research project be conducted properly.
Defining the marketing research problem sets the course of the entire project.

3. Importance of Defining the Problem
Problem definition involves stating the general marketing research problem and identifying its specific components.
Only when marketing research problem has been clearly defined can research be designed and conducted properly.
Inadequate problem definition is a leading cause of failure of marketing research project.
Better communication and more involvement in problem definition are the most frequently mentioned ways of improving the usefulness of research.

4. The Problem Definition Process
Tasks Involved
Discussion
with
Decision Maker(s)
Interviews
with
Experts
Secondary
Data
Analysis
Qualitative
Research
Environmental Context of the Problem
Step I: Problem Definition
Management Decision Problem
Marketing Research Problem
Step II: Approach to the Problem
Analytical Model: Verbal, Graphical, Mathematical
Specification of
Information
Needed
Objective/
Theoretical
Foundations
Research
Hypotheses
Questions
Step III: Research Design

5. and Developing an Approach
The Process of
Defining the Problem
and Developing an Approach
Tasks Involved
Discussions with Decision Maker(s)
Interviews with Experts
Secondary Data Analysis
Qualitative Research
Environmental Context of the Problem

6. Discussions with The Decision Maker
Discussions with the decision maker (DM) are extremely important.
The DM needs to understand the capabilities and limitations of research.
Research provides information relevant to management decisions, but it cannot provide solutions, because solutions require managerial judgment.
Conversely, the researcher needs to understand the nature of what decisions managers face - the management problem - and what they hope to learn from the research

7. Figure 2.5 Discussion Between the Researcher and the DM
Discussions with
The Decision Maker Cont…
Figure 2.5 Discussion Between the Researcher and the DM
Focus of the DM
Focus of the Researcher
Symptoms
Loss of Market Share
Underlying Causes
Superior Promotion by Competition
Inadequate Distribution of Company’s Products
Lower Product Quality
Price Undercutting by a Major Competitor
Discussion

8. Interaction between the DM and the Researcher should be characterized by:
Communication (free exchange ideas)
Cooperation (marketing research is a team project)
Confidence (mutual trust)
Candor (an attitude of openness, no hidden agenda)
Closeness (feeling of warmth and closeness, between the DM and the researcher)
Continuity (must interact continually)
Creativity (the interaction between the DM and the researcher should be creative rather than formulaic)

9. Interviews with Industry Experts
Interviews with industry experts, individuals knowledgeable about the firm and the industry, may help formulate the marketing research problem.
These experts may be found both inside and outside the firm.
Typically, expert information is obtained by unstructured personal interviews, without administering a formal questionnaire.
The purpose of interviewing experts is to help define the marketing research problem rather than to develop a conclusive solution.

10. Two Potential Difficulties of Seeking Advice from Experts
Some individuals who claim to be knowledgeable and are eager to participate may not really posses expertise.
It may be difficult to locate and obtain the help from experts who are outside the client organization.
For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for product of a technical nature, where it is relatively easy to identify and approach the experts.
Afjal Hossain, Assistant Professor

11. Secondary Data Analysis
Primary data, are collected or produced by the researcher for the specific purpose of addressing the research problem.
Secondary data are:
data collected for some purpose other than the problem at hand.
include information made available by business and government sources, commercial marketing research firms and computerized databases.
an economical and quick source of background information.
Afjal Hossain, Assistant Professor

12. Qualitative Research
Sometimes qualitative research must be undertaken to gain an understanding of the problem and its underlying factors.
Qualitative research is unstructured, exploratory in nature, based on small samples, and may utilize popular qualitative techniques such as
focus group (group interviews),
word association (asking respondents to indicate their first response to stimulus words), and
depth interviews (one-on-one interviews that probe the respondents’ thought in detail).
Afjal Hossain, Assistant Professor

13. Environmental Context of the Problem
To understand the background to a marketing research problem, the researcher must understand the client’s firm and industry.
In particular, the researcher analyze the factors that have an impact on the definition of the marketing research problem such as:
past information and forecast pertaining to the industry and the firm;
resources and constraints of the firm;
objective of the decision maker;
buyer behavior;
legal environment;
economic environment; and
marketing and technological skills of the firm.
Afjal Hossain, Assistant Professor

14. Problem Definition: Variations of the Problem
The management decision problem asks what the DM needs to do, whereas the marketing research problem ask what information is needed and how it can best be obtained.
Research can provide the necessary information to make a sound decision.
The management decision problem is action oriented. It is concerned with the possible actions the DM could take.
How should the loss of market share be arrested?
Should the market be segmented differently?
Afjal Hossain, Assistant Professor

15. Problem Definition: Variations of the Problem Cont…
The marketing research problem is information oriented. It wants to determine what information is needed to make the best decision.
It involves determining what information is needed and how that information can be obtained effectively and efficiently.
Whereas the management decision problem focuses on symptoms, the marketing research problem focuses on underlying causes.
Afjal Hossain, Assistant Professor

16. Defining the Marketing Research Problem Cont…
Two common errors in problem definition: too broadly definition and too narrowly definition.
A broad definition does not provide clear guidelines for the subsequent steps involve in the project.
A narrow focus may preclude consideration of some courses of action, particularly those that are innovative and may not be obvious.
Afjal Hossain, Assistant Professor

17. The Broad Statement and The Specific Component
The Broad Statement provides perspective on the problem and act as a safeguard against committing the second type of error (define the marketing research problem too narrowly).
The Specific component focus on the key aspects of the problem and provide clear guidelines on how to proceed further, thereby reducing the likelihood of the first type of error.
Afjal Hossain, Assistant Professor

18. Problem Definition: Variations of the Problem Cont…
Management decision problem
Asks what the decision maker needs to do
Action oriented
Focuses on symptoms
Marketing research problem
Asks what information is needed and how it should be obtained
Information oriented
Focuses on the underlying causes
Afjal Hossain, Assistant Professor

19. Problem Definition: Variations of the Problem Cont… Examples:
Management decision problem
Should a new product be introduced?
Should the advertising campaign be changed?
Marketing research problem
To determine consumer preferences and purchase intentions for the proposed new product.
To determine the effectiveness of the current advertising campaign
Afjal Hossain, Assistant Professor

20. Approach to the Problem: Components
In the process of developing an approach, we must not lose sight of the goal - the outputs.
The outputs of the approach development process should include the following components:
Objective/theoretical framework
Analytical models
Research Questions
Hypotheses, and
Specification of Information Needed.
Afjal Hossain, Assistant Professor

21. Objective/ Theoretical Framework
In general, research should be based on objective evidence and supported by theory.
A theory is conceptual scheme based on foundational statements called axioms, which are assumed to be true.
Objective evidence (that is unbiased and supported by empirical findings) is gathered by compiling relevant findings from secondary sources.
The researcher should rely on theory to determine which variables should be investigated.
Afjal Hossain, Assistant Professor

22. The Role of Theory in Applied Marketing Research
Conceptualizing and identifying key variables (IV and DV).
Operationalizing key variables.
Selecting a research design.
Selecting a sample.
Analyzing and interpreting data.
Integrating findings.
Afjal Hossain, Assistant Professor

23. Analytical Model
Analytical model. An explicit specification of a set of variables and their relationships designed to represent some real system or process in whole or in part. Models can have many different forms such as: verbal, graphical, an mathematical structure.
Verbal model. Analytical models that provide a written representation of the relationships among variables.
Afjal Hossain, Assistant Professor

24. Analytical Model Cont…
Graphical model. Analytical models that provide a visual picture of the relationships among variables.
Afjal Hossain, Assistant Professor

25. Analytical Model Cont…
Mathematical model. Analytical models that explicitly describe the relationships among variables, usually in equation form.
Where,
y = degree of preference
model parameters to be estimated statistically
store patronage factors that constitute the choice criteria

26. Research Questions
Research questions are refined statements of the specific components of the problem.
The components of problem define the problem in specific terms, but further detail may be needed to develop an approach.
Each component of the problem, may have to be broken down into subcomponent or research questions.
Research questions ask what specific information is required with respect to the problem components.
Information obtained using research questions should aid the decision maker.

27. Research Question and Theoretical Framework
The formulation of the research questions should be guided not only by the problem definition, but also by the theoretical framework and the analytical model adopted.
The theoretical framework and the analytical model play a significant role in the operationalization and measurement of variables specified by the research questions.
The research questions were further refined by precisely defining the variables and determining how they were to be operationalized.

28. Hypotheses
A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher.
It may be a tentative statement about relationship between two or more variables as stipulated by the theoretical framework or the analytical model.
Often, a hypothesis is a possible answer to the research question.
An important role of a hypothesis is to suggest variables to be included in the research design.

29. Marketing Research Problem
Hypotheses Cont…
RQ: Do Customers of Sears exhibit store loyalty?
H: Customers of Sears are loyal.
Hypotheses are an important part of the approach to the problem.
Components of the
Marketing Research Problem
Development
of Research
Questions
and
Hypotheses
Objective/
Theoretical
Framework
Research Questions
Analytical
Model
Hypotheses

30. Hypothesis Vs Research Question
Hypotheses go beyond research questions because they are statement of relationships or propositions rather than merely questions to which answers are sought.
Where are research questions are interrogative, hypotheses are declarative and can be tested empirically.

31. Specification of Information Needed
By focusing on each component of the problem and the analytical framework and models, research questions, and hypotheses, the researcher can determine what information should be obtained in the marketing research project.
It is helpful to carry out this exercise for each component of the problem and make a list specifying all the information that should be collected.