Exploring Marketing Research William G. Zikmund Chapter 3: The Marketing Research Process Information • Reduces Uncertainty • Helps focus decision making Copyright © 2000 by Harcourt, Inc. All rights reserved. Types of Research • Exploratory • Descriptive • Causal Copyright © 2000 by Harcourt, Inc. All rights reserved. Uncertainty Influences the Type of Research CAUSAL OR DESCRIPTIVE COMPLETELY CERTAIN ABSOLUTE AMBIGUITY EXPLORATORY Copyright © 2000 by Harcourt, Inc. All rights reserved. Degree of Problem Definition Exploratory Research (Unaware of Problem) “Our sales are declining and we don’t know why.” “Would people be interested in our new product idea?” Descriptive Research (Aware of Problem) Causal Research (Problem Clearly Defined) “What kind of people are buying “Will buyers purchase more of our product? Who buys our our products in a new package? competitor’s product?” “Which of two advertising “What features do buyers prefer campaigns is more effective?” in our product?” Copyright © 2000 by Harcourt, Inc. All rights reserved. Exploratory Research Secondary Data Experience Survey Pilot Studies Copyright © 2000 by Harcourt, Inc. All rights reserved. Exploratory Research • Initial research conducted to clarify and define the nature of a problem • Does not provide conclusive evidence • Subsequent research expected Copyright © 2000 by Harcourt, Inc. All rights reserved. Descriptive Research • Describes characteristics of a population or phenomenon • Some understanding of the nature of the problem Copyright © 2000 by Harcourt, Inc. All rights reserved. “I keep six honest serving men, (they taught me all I knew), their names are what, and why, and when, and how, and where and who.” --Rudyard Kipling Copyright © 2000 by Harcourt, Inc. All rights reserved. Descriptive Research Example Weight Watchers average customer: • Woman about 40 years old • Household income of about $50,000 • At least some college education • Trying to juggle children and a job Copyright © 2000 by Harcourt, Inc. All rights reserved. Descriptive Research Example Men’s fragrance market: • 1/3 size of women’s fragrance market • But growing at a faster pace • Women buy 80 % of men’s fragrances Copyright © 2000 by Harcourt, Inc. All rights reserved. Causal Research • Conducted to identify cause-and-effect relationships Copyright © 2000 by Harcourt, Inc. All rights reserved. IDENTIFYING CAUSALITY A causal relationship is impossible to prove. Evidence of causality: 1. The appropriate causal order of events 2. Concomitant variation--two phenomena vary together 3. An absence of alternative plausible explanations Copyright © 2000 by Harcourt, Inc. All rights reserved. Stages of the Research Process Problem Discovery and Definition Research Design Discovery and Definition and so on Conclusions and Report Sampling Data Processing and Analysis Data Gathering Copyright © 2000 by Harcourt, Inc. All rights reserved. Research Stages • Cyclical process - conclusions generate new ideas • Stages can overlap chronologically • Stages are functionally interrelated – Forward linkages – Backward linkages Copyright © 2000 by Harcourt, Inc. All rights reserved. Problem discovery Problem Discovery and Definition Sampling Selection of exploratory research technique Secondary (historical) data Experience survey Probability Pilot study Case study Data Gathering Data Processing and Analysis Problem definition (statement of research objectives) Experiment Laboratory Conclusions and Report Survey Field Interview Nonprobability Collection of data (fieldwork) Editing and coding data Data processing Selection of basic research method Research Design Selection of exploratory research technique Questionnaire Observation Secondary Data Study Interpretation of findings Report Copyright © 2000 by Harcourt, Inc. All rights reserved. The Marketing Research Process Problem Discovery Selection of Sample Design Exploratory Research Collection of the Data Selection of the Basic Research Method Copyright © 2000 by Harcourt, Inc. All rights reserved. The Research Process (cont.) Editing and Coding Report Data Processing Interpretation of the Findings Copyright © 2000 by Harcourt, Inc. All rights reserved. Stages in the Research Process • • • • • • Problem discovery and problem definition Research design Sampling Data gathering Data processing and analysis Conclusions and report Copyright © 2000 by Harcourt, Inc. All rights reserved. Problem Discovery and Definition • • • • First step Problem, opportunity, or monitor operations Discovery before definition Problem means management problem Copyright © 2000 by Harcourt, Inc. All rights reserved. “The formulation of the problem is often more essential than its solution” Albert Einstein Copyright © 2000 by Harcourt, Inc. All rights reserved. State the research questions and research objectives Copyright © 2000 by Harcourt, Inc. All rights reserved. Hypothesis • A statement that can be refuted by empirical data Copyright © 2000 by Harcourt, Inc. All rights reserved. If you do not know where you are going, any road will take you there. Copyright © 2000 by Harcourt, Inc. All rights reserved. Secondary (historical) Data Pilot Study Experience Survey Case Study Exploratory Research Copyright © 2000 by Harcourt, Inc. All rights reserved. Exploratory Research Techniques - Two Examples • Secondary Data (Historical Data) – Previously Collected – Census of Population – Literature Survey • Pilot Study – A number of Diverse Techniques Copyright © 2000 by Harcourt, Inc. All rights reserved. Focus Group Interview Copyright © 2000 by Harcourt, Inc. All rights reserved. Research Design • Master plan • Framework for action • Specifies methods and procedures Copyright © 2000 by Harcourt, Inc. All rights reserved. Basic Research Methods • • • • Surveys Experiments Secondary data Observation Copyright © 2000 by Harcourt, Inc. All rights reserved. Selecting a Sample Sample: subset of a larger population. SAMPLE POPULATION Copyright © 2000 by Harcourt, Inc. All rights reserved. Sampling • Who is to be sampled? • How large a sample? • How will sample units be selected? Copyright © 2000 by Harcourt, Inc. All rights reserved. Data Gathering Stage Copyright © 2000 by Harcourt, Inc. All rights reserved. Data Processing and Analysis Copyright © 2000 by Harcourt, Inc. All rights reserved. Conclusions and Report Writing • Effective communication of the research findings Copyright © 2000 by Harcourt, Inc. All rights reserved. Research Proposal • A written statement of the research design that includes a statement explaining the purpose of the study • Detailed outline of procedures associated with a particular methodology Copyright © 2000 by Harcourt, Inc. All rights reserved. Research Program Strategy Copyright © 2000 by Harcourt, Inc. All rights reserved. Defining Problem Results in Clear Cut Research Objectives Symptom Detection Analysis of the Situation Problem Definition Exploratory Research (Optional) Statement of Research Objectives Copyright © 2000 by Harcourt, Inc. All rights reserved.