babin-zikmund 5e_PPT_Ch02 Research Process (1).pptx

 CHAPTER 2 Problem definition and the research process Cengage Learning Australia hereby permits the usage and...

 CHAPTER 2 Problem definition and the research process Cengage Learning Australia hereby permits the usage and posting of our copyright controlled PowerPoint slide content for all courses wherein the associated text has been adopted. PowerPoint slides may be placed on course management systems that operate under a controlled environment (access restricted to enrolled students, instructors and content administrators). Cengage Learning Australia does not require a copyright clearance form for the usage of PowerPoint slides as outlined above.  LEARNING OBJECTIVES 1. To discuss the nature of decision-makers’ objectives and their role in defining the research problem. 2. To understand that proper problem definition is essential for useful marketing research. 3. To understand the importance of identifying key variables. 4. To understand the role of theory in market research. 5. To discuss how the formulation of research questions and hypotheses clarifies problem definition. 6. To discuss the influence of the statement of the marketing problem on the specific research objectives. 7. To explain the purpose of the research proposal.  THE NATURE OF MARKETING PROBLEMS Managers can grasp the general nature of the objectives they wish to achieve, but often remain uncertain about the full details of the problem. Not just about dealing with problems! – The marketing problem (hence, research objective) may be to simply clarify a situation, define an opportunity, or monitor and evaluate current operations.  THE NATURE OF MARKETING PROBLEMS (CONTINUED) There must be agreement between managers (or clients) and researchers regarding what objectives will be addressed by the research. ‘The problem is that when market researchers do sit at the table, they usually don’t say anything interesting, often getting lost in the data and failing to deliver concise, clear thinking. What’s more, they are often disconnected from what the decision-makers care about.’ – Market research consultant  THE IMPORTANCE OF PROPER PROBLEM DEFINITION The right answer to the wrong question may be worthless or even harmful. Example 1: – Disney theme park in Hong Kong (net loss, why?) Not popular with Chinese tourists when it first opened in 2005. Limited rides in a relatively small location. No Disney channel, resulting in lack of emotional connection to brand.  THE IMPORTANCE OF PROPER PROBLEM DEFINITION (CONTINUED) Example 2: ‒ Coca-Cola and ‘new’ Coke Narrow scope of marketing research, leading to Inadequate problem definition, leading to Research design not adequately considered. Key lesson from these two examples: ‒ Consumers’ emotional attachments to brands matter.  THE PROCESS OF DEFINING THE PROBLEM A problem definition indicates a specific marketing decision to be clarified or problem to be solved. As a crucial initial stage, it specifies research questions to be answered and the objectives of the research. Interrelated steps:  ASCERTAIN THE DECISION- MAKER’S OBJECTIVES Clear understanding between decision-makers and researchers of the research purpose. Researchers must attempt to satisfy decision-makers’ objectives. Managerial goals should be expressed in measurable terms. The iceberg principle is the idea that the dangerous part of many marketing problems is neither visible to nor understood by marketing managers.  THE ICEBERG PRINCIPLE Portion of problem that is readily seen. Symptoms are likely to be the focal areas when defining the problem. Portion of problem that is mostly unseen (i.e. causes). Likely to result in inadequate problem definition if omitted.  UNDERSTAND THE BACKGROUND OF THE PROBLEM Vital in every marketing problem. Gathering background information about previous events and why they occurred: – From experienced managers – Exercising managerial judgement  UNDERSTAND THE BACKGROUND OF THE PROBLEM (CONTINUED) When the problem situation is unclear, conduct: – Situation analysis: Informal gathering of background information to familiarise researchers or managers with the decision area. – Previous research and literature review: Looking at past research in the area. – Pilot studies: Small-scale research to test and refine full study.  ISOLATE AND IDENTIFY THE PROBLEMS, NOT THE SYMPTOMS DETERMINE THE UNIT OF ANALYSIS Fundamental aspect of problem definition. Researchers must specify whether the investigation will collect data about individuals, households, organisations, departments, geographical areas or objects. Problems may be investigated at more than one level of analysis.  DETERMINE THE RELEVANT VARIABLES What are the critical variables? A variable is anything that varies or changes in value. – For example, attitudes towards airlines may be a variable ranging from positive to negative.  DETERMINE THE RELEVANT VARIABLES (CONTINUED) Categorical/classificatory: limited number of distinct values; e.g., gender. Continuous: infinite number of values; e.g., sales volume. Dependent: variable that is to be predicted or explained; e.g., service quality. Independent: variable that is expected to influence the dependent variable; e.g., customer expectations.  DETERMINE THE RELEVANT VARIABLES (CONTINUED) A fishbone diagram that illustrates the most important independent variables (‘ribs’) influencing dependent variable (‘head’). Using diagrams like this can help visualise the problem better; seeing it from multiple perspectives. DETERMINE THE RELEVANT VARIABLES (CONTINUED)  STATE THE RESEARCH QUESTIONS AND OBJECTIVES A written statement of research questions and research objectives that clarifies any ambiguity about what the research hopes to accomplish. Two key considerations: – Theory – Hypothesis  WHAT IS THEORY? A theory is a formal, logical explanation of some event(s) that includes descriptions of how things relate to one another. It shapes the research objectives and subsequent hypothesis development. – Derived from previous findings – Logical deduction – Existing knowledge  WHAT IS THE HYPOTHESIS? A hypothesis is an unproven proposition or a possible solution to a problem. A scientific guess with an expected outcome to be tested. Allows researchers to be clear about what they expect to find through the study and provides information that will be useful in decision-making. Raises crucial questions about the data that will be required in the latter analysis stage of the research process.  WHAT IS THE HYPOTHESIS? (CONTINUED) Note how the ‘expected relationship/outcome’ between the variables is hypothesised. Examples: – There is a positive relationship between buying on the Internet and the presence of younger children in the home. – Sales are lower for salespeople in regions that receive less advertising support. – Consumers will experience cognitive dissonance after the decision to purchase a plasma rather than an LCD widescreen television. WHAT IS THE HYPOTHESIS? (CONTINUED) The connections between decision statements, research objectives, research hypotheses, and the deliverables.  DECISION-ORIENTED RESEARCH OBJECTIVES The research objective is the researcher’s version of the marketing problem. – Explains the purpose of the research in measurable terms. – Defines standards for what the research should accomplish. – Influences decisions about the research design. DECISION-ORIENTED RESEARCH OBJECTIVES (FIG. 2.6) (CONTINUED) DECISION-ORIENTED RESEARCH OBJECTIVES (FIG. 2.6) (CONTINUED)  DECISION-ORIENTED RESEARCH OBJECTIVES (CONTINUED) The statement of the marketing problem influences the research objectives, which become the basis for the research design.  HOW MUCH TIME SHOULD BE SPENT DEFINING THE PROBLEM? Budget and time constraints. Complexity of situation. Importance or urgency of decision involved. A delicate balance (e.g., in expectations) between marketing managers and researchers.  THE RESEARCH PROPOSAL A written statement of the research design explaining the purpose (objectives) of the study: – Outlines a particular research methodology. – Outlines procedures associated with each stage of the research process. – A schedule of costs involved and deadlines.  THE RESEARCH PROPOSAL (CONTINUED) A mechanism (communication function) that allows managers to evaluate the details of the proposed research design and determine if alterations are necessary.  THE RESEARCH PROPOSAL (CONTINUED) Preparation of a research proposal forces the researcher to think critically about each stage of the research process. – Proposal must communicate exactly what information will be obtained, where it will be obtained and how it will be obtained. – It must be explicit about sample selection, measurement, fieldwork and so on. – Follows the six stages in the research process. THE RESEARCH PROPOSAL (CONTINUED) THE RESEARCH PROPOSAL (CONTINUED) THE RESEARCH PROPOSAL (CONTINUED) THE RESEARCH PROPOSAL (CONTINUED)  ANTICIPATING OUTCOMES Potential data results that can be expected. – The anticipation of statistical findings is often lacking in research proposals. – Dummy tables: representations of the actual tables that will be in the findings section of the final report. Dummy tables help managers gain a better understanding of actual outcomes.  VIDEO: WRITING A RESEARCH PROPOSAL How to write a marketing research proposal A summary discussion on writing a marketing research proposal by Mark Clifton from https://www.youtube.com/watch?v=_ZM3trrKrYY eHow  KEY TAKEAWAYS Clear problem identification will help ensure the right research direction is taken, and the right answer is given to the right questions. Problem definition can be difficult (takes time) as most causes or true problems hide beneath the symptoms. Visuals (e.g., fishbone diagram) can help clarify the nature of the problem to be investigated.  KEY TAKEAWAYS (CONTINUED) The research objective will influence the choice of research design/s and corresponding method/s to collect the required data. The research proposal sets the agreement, research direction and expectations between the researcher and decision-maker (manager, client). Every research proposal is unique to its target audience.