The Research Process andThe Research Process and

Problem FormulationProblem Formulation

Justify the Need for Marketing Justify the Need for Marketing ResearchResearch

Four Considerations:– Potential usefulness of the results– Management attitudes towards marketing

research– Resources available for implementation– Costs vs. benefits

Determine Research Design

Analyze and Interpret the Data

Design Sample and Collect Data

Formulate Problem

Design Data Collection Method and Forms

Prepare the Research Report

Research ProcessResearch Process

The Research Process is an interrelated sequence of steps that make up a

research project

Research Process - InterrelatedResearch Process - Interrelated

Example of Interrelationship:At the first step the researcher must understand what is involved in the remaining stages

Defining the Research Defining the Research ObjectiveObjective

Most Critical Step:– Establishing the project’s purpose through

effective communication between the decision maker and the researcher allows them to establish clear-cut agreed upon research objectives

Defining the Research Defining the Research Objective (Cont’d)Objective (Cont’d)

Key: Accurate definition of the problem and all potential causes

Marketing Problem– Exploratory research fueled by client/researcher

communication– Potential cause

Decide which causes most directly effect the problem Decide if these issues are worth following

Goal: Decide on clear cut research objectives

Avoiding Mistakes in Problem Avoiding Mistakes in Problem Definition – McDonalds Arch Definition – McDonalds Arch

DeluxeDeluxe Strategy

– Successful at attracting children with Happy Meals Alternate Strategy

– Needed to attract adults to McDonalds Apparent Assumption

– Adults need a bigger & better hamburger Examined Wrong Problem

– Marketing Research centered around product attributes and not discovering adult consumer needs

Mistake– Failed to examine what adult consumers are looking for

Avoiding Mistakes in Problem Avoiding Mistakes in Problem Definition (Cont’d)Definition (Cont’d)

Effective Communication is a Must– Effective dialogue is critical for properly

diagnosing any situation calling for the use of marketing research:

– Especially important when the purpose of a research is to explore opportunities

– The chances that a wrong or nonexistent problem will be researched are greatly when there is no healthy

Typical QuestionsStage in the Process

Formulate problem

Determine research design

What is the purpose of the study--to solve a problem? Identify an opportunity? Is additional background information necessary? What information is needed to make the decision? How will the information be utilized? Should research be conducted?

How much is already known? Can a hypothesis be formulated? What types of questions need to be answered? What type of study will best address the research questions?

Can existing data be used to advantage? What is to be measured? How? What is the source of the data? Can objective answers be obtained by asking people? How should people be questioned? Should the questionnaires be administered in person, over the phone, or through the mail? Should electronic or mechanical means be used to make the observations? What specific behaviors should the observers record? Should structure or unstructured items be used to collect the data? Should the purpose of the study be made known to the respondents? Should rating scales be used in the questionnaire?

Determine data collection

method and forms

Design sample and collect the data

Analyze and interpret the data

Prepare the research report

Who is the target population? Is a list of population elements available? Is a sample necessary? Is a probability sample desirable? How large should the sample be? How should the sample be selected? Who will gather the data? How long will the data gathering take? How much supervision is needed? What operational procedures will be followed? What methods will be used to ensure the quality of the data collected?

Who will handle the editing of the data? How will the data be coded? Who will supervise the coding? Will computer or hand tabulation be utilized? What tabulations are called for? What analysis techniques will be used?

Who will read the report? What is their technical level of sophistication? Are managerial recommendations called for? What will be the format of the written report? Is an oral report necessary? How should the oral report be structured?

Typical QuestionsStage in the Process

Questions That Need to Be Questions That Need to Be Answered by the Answered by the

Client/Marketing Researcher Client/Marketing Researcher TeamTeam

Why am I conducting this research ? How will I tell if my project has been a success ? What method will be used ? What questions will be asked ? Who will be interviewed ? How will you get contact information for potential

respondents?

Questions That Need to Be Questions That Need to Be Answered by the Answered by the

Client/Marketing Researcher Client/Marketing Researcher Team (Cont’d)Team (Cont’d)

When and where data will be collected ? Which pieces will be done internally and which

will be done externally ? What statistical analysis will be performed ? How will the results be communicated in the

organization?

Identifying Data NeedsIdentifying Data Needs

Steps– Scrutinize the research purpose– List the types of data that will fulfill this

purpose

Identifying Data SourcesIdentifying Data Sources

Primary Data– Data obtained directly from consumer to fulfill

a specific purpose

Secondary Data– Data that are readily available from other

sources

Choosing the Appropriate Choosing the Appropriate Research DesignResearch Design

Research Proposal:– Serves as a blueprint for the execution of the product

Explains:– Purpose and scope of the project– The specific design of the project– Sample design– Data collection procedures– The data analysis plan– The project timetable– The estimated cost of the project

Design the Research Design the Research Instrument or FormInstrument or Form

Relevant when you are using primary data Interviews

Observation

The type of form used can seriously effect the nature and/or the quality of the data.

Identifying the SampleIdentifying the Sample

How many units?How should the units be chosen?

From where should the units come?

Who or what type of units?

BK Broiler- Research Process BK Broiler- Research Process StagesStages

Justify the need for marketing research– BK researched to develop a broiled chicken

sandwich that appealed to women– Research was worthwhile because it was

potentially useful and the resources to implement the findings were available

Define the research objective– Assess the appeal of the new broiled chicken

sandwich among the target market of women.

BK Broiler- Research Process BK Broiler- Research Process Stages (Cont’d)Stages (Cont’d)

Identify data needs1. Purchase Measures

Purchase intention Purchase frequency

2. Overall Product Diagnostics Reasons underlying the purchase intention Uniqueness, differentiation

3. Attribute Diagnostic Data regarding specific Attributes to focus product development

4. Respondent Profiling Variables Demographic information

BK Broiler- Research Process BK Broiler- Research Process Stages (Cont’d)Stages (Cont’d)

Identify data sources– Primary data to collect consumer impressions– Secondary data to serve as a benchmark

Choose appropriate research design and data collection method– For Primary Data:

Developed by outside agency Descriptive research Collection through mall-intercept Prescreen respondents

BK Broiler-Research Process Stages BK Broiler-Research Process Stages -Choose Appropriate Research -Choose Appropriate Research

Design and Data Collection Method Design and Data Collection Method Four Positionings:

1. Choice white meat/chicken breast2. Backyard BBQ Taste3. Marinated Special Blend/Homestyle Taste4. Competitive Claim

Form used to evaluate each on the basis of concept, positioning, and perceived taste

Taste Tests:– 9 different combinations of buns and sauce

BK Broiler-Research Process BK Broiler-Research Process Stages (Cont’d)Stages (Cont’d)

Design the research instrument or formQuestionnaire:

1. Pre-recruit screener questions

2. Concept evaluation questions

3. Taste Test

4. Classification questions

BK Broiler-Research Process BK Broiler-Research Process Stages (Cont’d)Stages (Cont’d)

Identify the sample– Sample:

835 interviews 10 malls in different geographic locations 150 taste tests

– People who had eaten chicken in a fast food restaurant

– 65% female, 35% male

– 50% ages 18-34, 50% ages 35-54

– 50% BK consumers, 50% non-BK consumers

BK Broiler-Research Process BK Broiler-Research Process Stages (Cont’d)Stages (Cont’d)

Collect data, including any relevant secondary data– 835 interviews– 10 malls in different geographic locations– 150 taste tests

BK Broiler-Research Process BK Broiler-Research Process Stages (Cont’d)Stages (Cont’d)

Analyze and interpret the data– “Choice White Meat / Chicken Breast” generated the

highest level of positive interest– Interest driven by predisposition to chicken and

appetizing appearance– Health aspects were secondary driver– Sandwich favored in 35-54 age group, with women and

with non-BK consumers

Present the research findings to decision makers

Nickelodeon Wants to Know Nickelodeon Wants to Know YouYou

How does Nickelodeon get a kid’s view point about a TV Show?– Adopted a day-care center for testing new

shows or new characters– Conducted marketing research on a weekly

basis in a NJ school. Researchers quiz the kids on all aspects of their lives

Nickelodeon Wants to Know Nickelodeon Wants to Know You (Cont’d)You (Cont’d)

How does Nickelodeon get a kid’s view point (cont’d)?– Children are given disposable cameras to record

their activities in photos and words– Conducts focus groups with school-age

viewers

What do you think about Nickelodeon’s research methods? Any ethical issues?

Stake Holders of Basic Ethical Stake Holders of Basic Ethical and Business Principlesand Business Principles

Research SuppliersField Service FirmsResearch subjects or respondents Clients General public

The Esomar Web SiteThe Esomar Web Site

WebsiteSpells out therightsof stake holders

Council for Marketing and Council for Marketing and Opinion Research - Opinion Research -

Respondent Bill of RightsRespondent Bill of Rights What Your Rights are if You are Interviewed

– Your privacy and the privacy of your answers will be respected and maintained

– Your name, address, phone number, personal information, or individual responses won't be disclosed to anyone outside the research industry without your consent

– You will always be told the name of the person contacting you, the research company's name, and nature of the survey

What Your Rights Are if You What Your Rights Are if You Are Interviewed (Cont’d)Are Interviewed (Cont’d)

You will not be sold anything, or asked for money, under the guise of research

You will be contacted at reasonable times, but if the time is inconvenient, you can ask to be re-contacted at a more convenient time

Your decision to participate in a study, answer specific questions, or discontinue your participation will be respected without question

What Your Rights Are if You What Your Rights Are if You Are Interviewed (Cont’d)Are Interviewed (Cont’d)

You will be informed in advance if an interview is to be recorded and of the intended use of the recording

You are assured that the highest standards of professional conduct will be upheld in the collection and reporting of information you provide

Source: www.cmor.org

Recognizing Ethical SituationsRecognizing Ethical Situations

GeoCities– An online community site created a children

internet club– Pledged to parents that information will not be

transferred to 3rd partyFederal Trade Commission

– Took issue with the company over the transfer of children’s personal information to an another company partly owned by GeoCities

Recognizing Ethical Situations Recognizing Ethical Situations (Cont’d)(Cont’d)

GeoCities claimed the transfer is internal. Is the information transfer internal or external (3rd party) ?

FTC’s Ruling: GeoCities misled its customers, both children and adults, by not telling them the truth about how it was using their personal information

Recognizing Ethical Situations Recognizing Ethical Situations (Cont’d)(Cont’d)

GeoCities signed a twenty-year consent order requiring the company to spell out what information it collects, how it is used, and to whom it will be disclosed