1. Exploratory Research and Proper Problem Definition Lecture 3

2. Exploratory Research and its importance Marketing Research can be classified on the basis of either technique or purpose. Experiments, surveys and observational studies are just a few common research techniques. Classifying research by its purpose shows how the nature of a decision situation influences the research methodology and we can describe it as being exploratory, descriptive, or causal.

3. Types of Marketing Research There are three types of Marketing Research: Conducted to clarify ambiguous situations or discover ideas that may be potential business opportunities. Exploratory Research Describes characteristics of objects, people, groups, organizations or environments; tries to “paint a picture” of a given situation. Descriptive Research Allows causal influences to be made; seeks to identify cause-and-effect relationships. Causal Research

4. Exploratory Research and its importance Exploratory research as said before, is conducted to clarify ambiguous situations or discover ideas that may be potential business opportunities. Exploratory Research is NOT intended to provide conclusive evidence from which to determine a particular course of action. It is usually used when seeking insights into the general nature of a problem, the possible decision alternatives, and the relevant variables that need to be considered.

5. Exploratory Research and its importance Researchers usually undertake exploratory research with the full expectation that more research will be needed to provide more conclusive evidence. Exploratory research is particularly useful in new product development, including developing and screening new product ideas, and it can also be used to help identify the decisions that need to be made. It can progressively narrow the scope of the research topic and help transform ambiguous problems into well- defined ones that yield specific research objectives.

6. Exploratory Research and its importance To sum up, by investigating any existing studies on the subject, talking with knowledgeable individuals, and informally investigating the situation, the researcher can progressively sharpen the concepts. After such exploration, the researcher should know exactly which data to collect during the formal phases of the project and how to conduct the project. The marketing researcher can employ techniques from four basic categories to obtain insights and gain a clearer idea of the problem: previous research, pilot studies, case studies and experience surveys.

7. Qualitative Research and Exploratory Research Designs- Idea Generation When researchers have limited experience or knowledge about a research issue, exploratory research is a useful step. It often involves qualitative methods. Most exploratory research designs produce qualitative data. These data are not characterized by numbers and instead are textual, visual or oral. As said before it can generate new ideas and can also indicate that some new product ideas are unworkable. Researcher using exploratory research and qualitative approaches can ask consumers to describe their product experience in great detail. This data can reveal the consumer needs that a product can truly address.

8. Qualitative Research and Exploratory Research Designs- Concept Testing Concept Testing is a frequently performed type of exploratory research representing many similar research procedures all having the same purpose: to screen new, revised or repositioned ideas. The questions used almost always include whether the idea is likable, whether it would be useful and whether it seems new. It allows an initial evaluation prior to the commitment of any additional research, development etc.

9. Examples of Exploratory Research Focus Groups: Bring together a small group of subjects to engage in a guided discussion about a limited issue. An interview survey among clerical staff in a particular office, department, company, group of companies, industry, region and so on, to find out what motivates them to increase their productivity (that is, to see if a research problem can be formulated). Case studies: The document history of a particular person, group, organization or event.

10. Exploratory Research To sum up, When used to prepare for more extensive research studies, exploratory techniques assist in several ways: Exploratory research can assist market researchers in finding possible causes to the symptoms communicated by decision makers. Researchers may conduct exploratory research to develop a list of possible causes to the problem. Additional more extensive research may then confirm which possibility or possibilities are most the likely causes. It can uncover possible avenues for reaching decision makers’ objectives.

11. Exploratory Research It answers questions about actually administering a large and expensive research project.

12. Proper Problem Definition Problem Definition: The process of defining and developing a decision statement and the steps involved in translating it into more precise research terminology, including a set of research objectives.

13. Problem Definition Process The problem definition process involves six steps. Completing one step leads to the other and by the time the problem is defined, each of these steps has been addressed in some way.

14. Steps of problem definition process Understand the business situation (key symptoms) Identify key problems from symptoms Write managerial decision statement and research objectives Determine the unit of analysis Determine the relevant variables Write research questions and/or hypotheses

15. Analysis of the problem definition steps Understand the business situation/Situation analysis: Gathering of background information to familiarize researchers and managers with the decision-making environment. Interviews with key decision makers can be one of the best ways to identify key problem symptoms. Once symptoms are identified, then the researcher must probe to identify possible causes of these changes. Probing is an interview technique that tries to draw deeper and more elaborate explanations from the discussion. This discussion may involve potential problem causes. This probing process will likely be very helpful in identifying key variables that are prime candidates for study.

16. Analysis of the problem definition steps Identifying the relevant issues/key problems from the symptoms: The interview process mentioned before is extremely useful in translating the decision situation into a working problem definition by focusing on symptom identification. The researcher needs to be certain that the research attacks real problems and not superficial symptoms.

17. Analysis of the problem definition steps Translating managerial decision statements into corresponding research objectives: The situation analysis ends once researchers have a clear idea of the managerial objectives from the research effort. Decision statement is better to allow many ways for a problem to be solved rather that a single way. Decision statements must be translated into research objectives. At this point, the researcher is starting to visualize what will need to be measured and what type of study will be needed. Thus, in some ways, it is stating the information that is needed to help make the decision, for example:

18. Analysis of the problem definition steps Decision statement: How can we encourage more consumers to come to the microbrew and try our products? Should we redesign the brewery to be more inviting? Research Objectives: Describe how situational factors influence beer consumption and consumer attitudes toward beer products. List factors that will improve attitudes toward the microbrewery.

19. Analysis of the problem definition steps Determine the unit analysis: A study that indicates what or who should provide the data and at what level of aggregation. Researchers specify whether an investigation will collect data about individuals, households, organizations, departments, geographical regions or objects. Researchers who think carefully and creatively about situations often discover that a problem can be investigated at more than one level of analysis.

20. Analysis of the problem definition steps Determine the relevant variables: What things should be studied to address a decision statement? Researchers answer this question by identifying key variables. A variable is anything that varies or changes from one instance to another; can exhibit differences in value, usually in magnitude or strength, or in direction. In research, a variable is either observed or manipulated, in which case it is an experimental variable. Constant variables are not very interesting to the management as they do not change; they are not useful in addressing research questions.

21. Analysis of the problem definition steps The process of identifying the relevant variables overlaps with the process of determining the research objectives. Typically, each research objective will mention a variable or variables to be measured or analyzed for example nationality which is a categorical variable.

22. Analysis of the problem definition steps Writing Research questions from research objectives: Both managers and researchers expect problem-definition efforts to result in statements of research questions and objectives. At the end of the problem-definition stage, the researcher should prepare a written statement that clarifies any ambiguity about what the research hopes to accomplish. Research questions express the research objectives in terms of questions that can be addressed by research. For example: “Are consumer perceptions of food quality, price and atmosphere related to customer loyalty?”

23. Analysis of the problem definition steps Hypotheses are more specific than research questions specifying the direction of a relationship for example: “Food quality perceptions are related positively to consumer commitment toward a restaurant”.