The Research Process and
Problem Formulation
Justify the Need for Marketing
Research

Four Considerations:
– Potential usefulness of the results
– Management attitudes towards marketing
research
– Resources available for implementation
– Costs vs. benefits
Formulate Problem
Determine Research Design
Design Data Collection
Method and Forms
Design Sample and Collect Data
Analyze and Interpret the Data
Prepare the Research Report
Research Process
The Research Process is an interrelated
sequence of steps that make up a research
project
Research Process - Interrelated
Example of Interrelationship:
At the first step the researcher must
understand what is involved in the
remaining stages
Defining the Research
Objective

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
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
Definition – McDonalds Arch
Deluxe

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
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
Stage in the Process
Typical Questions
Formulate problem
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?
Determine research design
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?
Determine data collection
method and forms
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?
Stage in the Process
Typical Questions
Design sample and collect
the data
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?
Analyze and interpret the
data
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?
Prepare the research
report
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?
Questions That Need to Be
Answered by the
Client/Marketing Researcher
Team






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
Answered by the
Client/Marketing Researcher
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 Needs

Steps
– Scrutinize the research purpose
– List the types of data that will fulfill this
purpose
Identifying 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
Research 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
Instrument 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 Sample
Who or what type of units?
From where should the
units come?
How should the units be
chosen?
How many units?
BK Broiler- Research Process
Stages

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
Stages (Cont’d)

Identify data needs
1. 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
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
-Choose Appropriate Research
Design and Data Collection Method

Four Positionings:
1. Choice white meat/chicken breast
2. Backyard BBQ Taste
3. Marinated Special Blend/Homestyle Taste
4. 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
Stages (Cont’d)

Design the research instrument or form
 Questionnaire:
1. Pre-recruit screener questions
2. Concept evaluation questions
3. Taste Test
4. Classification questions
BK Broiler-Research Process
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
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
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
You

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
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
and Business Principles

Research Suppliers
 Field Service Firms
 Research subjects or respondents
 Clients
 General public
The Esomar Web Site
Website
Spells
out the
rights
of stake
holders
Council for Marketing and
Opinion Research Respondent 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
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 recontacted 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
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 Situations

GeoCities
– An online community site created a children
internet club
– Pledged to parents that information will not be
transferred to 3rd party

Federal 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
(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
(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