Essentials of Marketing Research (5th Edition) PDF

Because learning changes everything. ® Essentials of Marketing Research Part 1: The Role and Value of Marketing Research Information Chapter 2: The Marketing Research Process and Proposals...

Because learning changes everything. ® Essentials of Marketing Research Part 1: The Role and Value of Marketing Research Information Chapter 2: The Marketing Research Process and Proposals © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.  Value of the Research Process Business owners and managers often identify problems they need help to solve. Additional information is often needed to make a decision or to solve a problem. One solution is a marketing research study based on a scientific research process. © McGraw-Hill Education 2  Changing View of the Marketing Research Process There is a growing emphasis on secondary data collection. Secondary data is previously collected for some other problem. So much data is collected that the concept of “big data” emerged. Primary data is collected specifically for a current problem. Marketing research now plays a bigger The increased use of role in strategy development. gatekeeper technologies The term information research reflects the protects privacy. changes occurring. Widespread expansion into The information research process is global markets affects an approach to collecting, analyzing, marketing decisions. interpreting, and transforming data into decision-making information. © McGraw-Hill Education 3  Determining the Need for Information Research Can the problem be resolved The decision maker asks: using existing information and “Can the problem be resolved using managerial judgement? experience and judgment?” Is information available in If “No,” consider research. internal record systems to address the problem? There are situations when research Is there time to conduct the may not be necessary. necessary research? Insufficient time frames. Do the benefits outweigh the Inadequate resources. costs? Costs outweigh the value. Will the research provide useful feedback for decision making? Decision makers must ask the Will the research give following questions to determine if competitors too much research can be used. information about strategy? © McGraw-Hill Education 4  Overview of the Research Process The research process consists of Design and pretest the the following 11 steps. questionnaire. Identify and clarify information Collect and prepare data. needs. Analyze data. Define the research questions. Interpret data to create Specify research objectives knowledge. and confirm information value. Prepare and present the final Determine the research design report. and data sources. The steps are guided by the Develop the sampling design scientific method. and sample size. The procedures should be Examine measurement issues logical, objective, systematic, and scales. reliable, and valid. © McGraw-Hill Education 5  The Research Process Transforming data into knowledge. The primary goal of the research process is to provide decision makers with knowledge to resolve problems or pursue opportunities. Data becomes knowledge when someone interprets the data and attaches meaning. Interrelatedness of the steps and the research process. These factors impact how many steps are taken and in what order. The complexity of the problem. The urgency for solving the problem. The cost of alternative approaches. The clarification of information needs. © McGraw-Hill Education 6 Exhibit 2.2: Summary of Differences in Hotel-Choice Criteria: Comparison of First-Time and Repeat Business Customers The Magnum Hotel is considering cutting back on the quality of bedding and towels and the research department interviewed customers. The results mean nothing to the president of the hotel, until interpreted. Once interpreted, executives decided not to cut back on the quality of towels and bedding as a way to reduce expenses. Access the text alternative for this image. © McGraw-Hill Education 7  Step 1: Identify and Clarify Information Needs The problem definition process includes the following components. Agree on the decision maker’s purpose for the research. Iceberg principle – decision makers know 10% of the true problem. Understand the complete problem situation. A situation analysis uncovers the problem’s complexity. Identify measurable symptoms and distinguish them from the problem. Clarify the problem – separate out causes and symptoms. Select the unit of analysis. This provides direction in later activities. Determine the relevant variables. Information needs helps determine the techniques. © McGraw-Hill Education 8  Exhibit 2.4: The Iceberg Principle Access the text alternative for this image. © McGraw-Hill Education 9 Exhibit 2.5: Examples of Variables/Constructs Investigated in Marketing Access the text alternative for this image. © McGraw-Hill Education 10  Step 2: Define the Research Questions Redefine the initial problem as a research question. The researcher conducts a review of the literature. This step is most important as it influences the remaining steps. Restate variables into key questions: how, what, where, when, or why. Next, determine the types of data that will best answer each question. Finally, the researcher determines whether the Ask: “Can the question be addressed with information being existing data or does the question require requested is necessary. new data?” This step must be Consider other issues such as data completed before availability, data quality, and budget or going on to step 3. time constraints. © McGraw-Hill Education 11  Exhibit 2.6: Initial and Redefined Research Questions for Lowe’s Home Improvement, Inc. Access the text alternative for this images. © McGraw-Hill Education 12  Step 3: Specify Objectives and Confirm Information Value Research objectives should be based on questions in step 2. Formal research objectives provide guidelines for determining other steps that must be taken. Assumption: if the objectives are achieved, the decision maker will have the information needed to answer the research questions. The decision maker and researcher must evaluate the expected value of the information – use “best judgment” answers to these questions: Can the information be collected at all? Can the information tell the decision maker something not already known? Will the information provide significant insights? What benefits will be delivered by this information? © McGraw-Hill Education 13  Step 4: Determine the Research Design and Data Sources Exploratory research has one of two objectives. Generating insights that help define the problem situation. Understanding consumer motivations, attitudes, and behaviors. Descriptive research collects quantitative data. Image assessment surveys or customer satisfaction surveys. Causal research assesses and explains causality in market factors. Most appropriate for determining which variables cause a dependent variable to change, either up or down. The sources used depend on two fundamental issues. Whether the data already exists. If so, the extent known of the reason(s) why the data was collected. © McGraw-Hill Education 14  Step 5: Develop the Sampling Design and Sample Size Researchers need to identify the relevant target population. In collecting data, researchers choose between a census or a sample. In a census, the researcher attempts to question or observe all members of a defined target population. If the target population is large, use a representative sample to generalize the findings. A sampling plan is one of two general types. Probability: each member of the target population has a known chance of being selected – allows assessment of sampling error. Nonprobability: cannot measure sampling error, limits findings. Sample size affects the accuracy and generalizability of results. Researchers determine how many people to include or how many objectives to investigate to obtain accurate data. © McGraw-Hill Education 15  Step 6: Examine Measurement Issues and Scales Step 6 involves identifying the concepts to study and measuring the variables related to the research problem. For example, when analyzing sales results, it is impossible to provide daily sales information if sales are only captured on a weekly basis. Researchers must be able to answer questions Although step 6 is such as: mostly related to How should a variable such as customer primary research, satisfaction or service quality be defined and understanding these measured? activities is important Should researchers use single- or multi-item in secondary research measures to quantify variables? as well. © McGraw-Hill Education 16  Step 7: Design and Pretest the Questionnaire Researchers must: Pretest respondents are asked to Select the correct type of comment on issues such as: questions. Clarity of instructions and Consider the sequence and questions. format. Sequence of the topics and Pretest the questionnaire. questions. Anything potentially difficult or confusing. © McGraw-Hill Education 17  Step 8: Collect and Prepare Data Two approaches to gathering data are: Using interviewers or self-completion questionnaires. Observing individuals or market phenomena. A major advantage of questioning over observation is the collection of a wider array of data Questioning answers not just how a person is behaving, but why. Once primary data are collected, researchers must This is also perform these activities before data analysis. necessary when Transfer responses into an electronic data file. information is used Examine the data for coding, data-entry errors, from internal data inconsistencies, availability, and so on. warehouses. © McGraw-Hill Education 18  Step 9: Analyze Data Analysis procedures vary widely in Different procedures enable the sophistication and complexity. researcher to: From simple frequency Test hypotheses for differences distributions – percentages. or correlations among variables. To summary statistics – mean, Evaluate data quality. median, and mode. Test models of cause-effect Or multivariate data analysis relationships. and advanced analytics techniques – natural language process and machine learning. © McGraw-Hill Education 19  Step 10: Interpret Data to Create Knowledge Interpretation is more than a narrative of results. It integrates aspects of the findings into conclusions used to answer the research questions. Knowledge is created Data visualization tools enable through engaged and researchers to combine data analytics careful interpretation of results with computer graphics. results. An efficient way to explain insights. © McGraw-Hill Education 20  Step 11: Prepare and Present the Final Report Sections included in any research report are as follows. Executive summary. Introduction. Problem definition and objectives. Methodology. Results and findings. Limitations of the study. Sometimes, both a written report and an oral presentation are provided. © McGraw-Hill Education 21  Develop a Research Proposal A research proposal communicates the research framework to the decision maker. Sample design and data collection method. The proposal is not the same as a final research report. Specific research instruments. Most research proposals include Potential managerial benefits the following sections. of the proposed study. Purpose of the proposed Proposed cost for the total research project. project. Type of study. Profile of the research company capabilities. Definition of the target population and sample size. Optional dummy tables of the projected results. © McGraw-Hill Education 22 Because learning changes everything. ® www.mheducation.com © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.