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Introduction to
Marketing Research
Marketing Research Defined
The systematic and objective
process of generating
information for aid in making
marketing decisions
Marketing Research Types
Basic Research (Problem identification research)
Applied research ( Problem solving research)
Basic Research
• Attempts to expand the limits
of knowledge
• This research will help to
identify the problems exists
or likely to arise in the future.
Basic Research Example
• Checking whether students
spent time in SNS affects
their academic
performance?
Applied Research
• Conducted when a decision must be
made about a specific real-life problem
Applied Research Example
• Should McDonalds add Italian pasta
dinners to its menu?
– Marketing research told McDonald’s it
should not
• Should Procter & Gamble add a highpriced home teeth bleaching kit to its
product line?
– Research showed Crest Whitestrips
would sell well at a retail price of $44
Using Marketing Research
• We can use Marketing Research to:
–Identify & Evaluate Opportunities
–Analyze Market Segments
–Select Target Markets
–Plan & Implement Marketing Mixes
–Analyze Marketing Performance
• Performance Monitoring Research
A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Problem-Solving
Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research
Problem-Solving Research
SEGMENTATION RESEARCH
 Determine the basis of segmentation
 Establish market potential and
responsiveness for various
segments
 Select target markets
 Create lifestyle profiles:
demography, media, and
product image characteristics
PRODUCT RESEARCH
 Test concept
 Determine optimal product design
 Package tests
 Product modification
 Brand positioning and repositioning
 Test marketing
 Control score tests
Problem-Solving Research
PROMOTIONAL RESEARCH
0.00%
APR
 Optimal promotional budget
 Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing
PRICING RESEARCH
 Pricing policies
 Evaluation of advertising effectiveness
 Claim substantiation
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand
 Initiating and responding to price changes
$ALE
Problem-Solving Research
DISTRIBUTION RESEARCH
Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
The Marketing Research Process
• Define the Problem
• Develop an Approach to the Problem
– Type of Study? Exploratory, Descriptive, Causal?
– Mgmt & Research Questions, Hypotheses
• Formulate a Research Design
– Methodology
– Questionnaire Design
• Fieldwork
• Prepare & Analyze the Data
• Prepare & Present the Report
Step 1: Define the problem
• Management decision problem
• Marketing research problem
Management Decision Problem Vs.
Marketing Research Problem
Management Decision Problem
Should a new product be
introduced?
Should the advertising
campaign be changed?
Should the price of the
brand be increased?
Marketing Research Problem
To determine consumer
preferences and purchase
intentions for the proposed
new product.
To determine the effectiveness
of the current advertising
campaign.
To determine the price elasticity
of demand and the impact on sales
and profits of various levels
of price changes.
Proper Definition of the Research Problem
Marketing Research Problem
Broad Statement
Specific Components
Department Store Project
Problem Definition
In the department store project, the marketing research problem
is to determine the relative strengths and weaknesses of Tesco
Lotus, vis-à-vis other major competitors, with respect to factors
that influence store patronage. Specifically, research should
provide information on the following questions.
1. What criteria do households use when selecting department
2.
3.
4.
5.
6.
stores?
How do households evaluate Tesco Lotus and competing stores in
terms of the choice criteria identified in question 1?
Which stores are patronized when shopping for specific
product categories?
What is the market share of Tesco Lotus and its competitors for
specific product categories?
What is the demographic and psychological profile of the
customers of Tesco Lotus ? Does it differ from the profile of
customers of competing stores?
Can store patronage and preference be explained in terms of
store evaluations and customer characteristics?
Step 2: Develop an approach to
the problem
1.
Objective/Theoretical Foundations
2.
Analytical Model
3.
Research Questions
4.
Hypotheses
5.
Specification of the Information Needed
Role of Theoretical foundations
Research Task
Role of Theory
1. Conceptualizing
Provides a conceptual foundation and understanding of the basic processes
and identifying
underlying the problem situation. These processes will suggest key dependent
key variables
and independent variables.
2. Operationalizing
Theoretical constructs (variables) can suggest independent and dependent
key variables
variables naturally occurring in the real world.
3. Selecting a
Causal or associative relationships suggested by the theory may indicate whether
research design
a causal or descriptive design should be adopted.
4. Selecting a
The theoretical framework may be useful in defining the population and
sample
suggesting variables for qualifying respondents, imposing quotas, or stratifying
the population (see Chap. 11).
5. Analyzing and
The theoretical framework (and the models, research questions and hypotheses
interpreting data
based on it) guide the selection of a data analysis strategy and the interpretation
of results (see Chap. 14).
6. Integrating
The findings obtained in the research project can be interpreted in the light of
findings
previous research and integrated with the existing body of knowledge.
Ex. Kano’s Model of satisfaction
One of a popular model used for measuring
and analyzing customer satisfaction
Technology acceptance Model
(TAM)
TAM—one of popular
information systems
theory that models
how users come to
accept and use a
technology; the model
suggests that the
acceptability of an info
system is determined
by two main factors:
(i) perceived
usefulness and (ii)
perceived ease of use
Theory of reasoned action
(TRA)
 Person’s behavior (behavioral intention) depends on the
person’s attitude about the behavior and subjective norm
(the person’s perception that most people who are
important to him/her think s/he should or should not
perform the behavior in question)
 3 components of TRA: (i) behavioral intention (BI); (ii)
attitude (A); and (iii) subjective norm (SN); BI = A + SN
Models
An analytical model is a set of variables and
their interrelationships designed to represent, in
whole or in part, some real system or process.
In verbal models, the variables and their
relationships are stated in prose form. Such
models may be mere restatements of the main
tenets of a theory.
Graphical Models
Graphical models are visual. They are used to
isolate variables and to suggest directions of
relationships but are not designed to provide
numerical results.
Awareness
Understanding
Preference
Patronage
Mathematical Models
Mathematical models explicitly specify the
relationships among variables, usually in
equation form.
y =
a
0
+
n
a x
i
=1
i
i
Where
y
= degree of preference
a ,a
0
i
= model parameters to be estimated
statistically
Step 3: Development of Research
Questions and Hypotheses
Components of the
Marketing Research Problem
Objective/
Theoretical
Framework
Research Questions
Analytical
Model
Hypotheses
Research Questions and Hypotheses
• Research questions (RQs) are refined
statements of the specific components of the
problem.
• A hypothesis (H) is an unproven statement
or proposition about a factor or phenomenon
that is of interest to the researcher. Often, a
hypothesis is a possible answer to the
research question.
RQ & Hypothesis Example
• RQ 1: What are the characteristics of
online gamers?
• Null hypothesis ( Ho):
There is no difference between males
and females who play online
• Alternate Hypothesis (Ha):
Males are more into online games than
females.
Research Proposal
• A specific document that provides an overview
of the proposed research and its methodology.
• Normally includes the description of first 3 steps
of a research such as
–
–
–
–
–
–
–
Purpose of the research
Type of study
Definition of target population and sample size
Data collection methods
Specific research instruments
Potential benefits of the study
Proposed cost of the total research project
How to increase the customer
loyalty?
At United, Food Is Uniting
the Airline with Travelers
United Airlines, as other major airlines, had to deal with
passenger loyalty (management decision problem: how
to attract more and more loyal passengers). The broad
marketing research problem was to identify the factors
that influence loyalty of airline travelers.
At United, Food Is Uniting the Airline with
Travelers
The basic answer is to improve service. Exploratory
research, theoretical framework, and empirical evidence
revealed that the consumers’ choice of an airline is
influenced by: safety, price of the ticket, frequent-flyer
program, convenience of scheduling, and brand name.
At United, Food Is Uniting the Airline
with Travelers
The problem was that major airlines
were quite similar on these factors.
Indeed, "airlines offer the same
schedules, the same service, and the
same fares.”
Consequently, United Airlines had to find
a way to differentiate itself. Food turned
out to be the solution.
At United, Food Is Uniting the
Airline with Travelers
Secondary data, like the J. D Power & Associates'
survey on "current and future trends in the airline
food industry," indicated that "food service is a major
contributor to customers’ loyalty." This survey also
emphasized the importance of food brands.
At United, Food Is Uniting the Airline
with Travelers
The airline's Marketrak survey told United Airlines that
"customers wanted more varied and up-to-date food.”
The following research questions and hypotheses may be
posed.
RQ1
How important is food for airline customers?
H1:
Food is an important factor for airline travelers.
H2:
Travelers value branded food.
H3:
Travelers prefer larger food portions, but with
consistent quality.
H4:
Travelers prefer exotic food.
At United, Food Is Uniting the Airline
with Travelers
Characteristics that influence the research design
included the identification of competing airlines (Delta,
American, etc.), factors of the choice criteria (already
identified), measurement of airline travel, and loyalty.
Determining When to Conduct
Marketing Research
•Time constraints
•Availability of data
•Nature of the decision
•Benefits versus costs
Determining When to Conduct
Marketing Research
Time Constraints
Availability of Data
Is sufficient
time
available?
Information
already on
hand
inadequate?
No
Yes
No
Nature of the Decision
Yes
Is the
decision of
strategic
or tactical
importance?
Yes
No
Do Not Conduct Marketing Research
Benefits vs. Costs
Does the
information Yes
value
exceed the
research cost?
No
Conduct
Marketing
Research
Potential Value of a Marketing Research
Effort Should Exceed Its Estimated Costs
Decreased uncertainty
Increased likelihood of
correct decision
Improved marketing
performance and
resulting higher profits
Value
Research expenditures
Delay of marketing
decision and possible
disclosure of information
to rivals
Possible erroneous
research results
Costs
ALWAYS Remember
• Marketing Research is a tool.
• It assists marketing managers in
their decision making.
• IT IS NOT A
REPLACEMENT FOR
MANAGERIAL
JUDGEMENT!!