Chapter Three
The Marketing Research
Process
Essentials of Marketing Research
Kumar, Aaker, Day
Why do we have an organized MR
process?
• Relevant (does it address the problem at
hand?)
• meaningful (will the results support the
decision?) and
• Appropriate (is the research plan
appropriate to the data collected?)
Essentials of Marketing Research
Kumar, Aaker, Day
Market Research Process
1.
2.
3.
4.
5.
6.
7.
Agree on Research Purpose
Establish Research Objectives
Estimate Value of Information
Design the Research
Collect the Data
Prepare and Analyze Data
Report Research Results
Essentials of Marketing Research
Kumar, Aaker, Day
The Research Purpose
• Research purpose is a shared
understanding between manager and
researcher about
– Problem or opportunity to be studied
– Evaluation of decision alternatives
– Research users
Essentials of Marketing Research
Kumar, Aaker, Day
Case: Promoting a new health club
in town
• Problem or opportunity be studied?
– Consumers largely ignore advertising
– Intense pre-existing competition
– Competitor’s facilities outdated
– Increasing populations of the young, urban
professionals
Essentials of Marketing Research
Kumar, Aaker, Day
The Research Purpose
• Problem or opportunity analysis
– Motivations of research
– Exploratory research to identify problems or
opportunities
– Goal is to move from exploratory to
confirmatory research (decision-focused)
Essentials of Marketing Research
Kumar, Aaker, Day
The Marketing Research Process:
Research Purpose
• Evaluation of decision alternatives
– If there are no decision alternatives, no
research is necessary
– How will you evaluate the decision
alternatives?
– Time available and importance of decision
Essentials of Marketing Research
Kumar, Aaker, Day
Case: What decision alternatives
may be important here?
• Should we advertise in mass media or
should we promote through direct mail?
• What should we position ourselves as?
(prior exploratory research required)
• Should we promote our facilities or our
location?
• Should we promote our facilities or the
‘club’ atmosphere?
Essentials of Marketing Research
Kumar, Aaker, Day
Research Purpose
• Research users
– Who will evaluate the research?
– External bodies may require high-quality
research designs
Essentials of Marketing Research
Kumar, Aaker, Day
Case: Who are the research users
here?
• The health club management
Essentials of Marketing Research
Kumar, Aaker, Day
Market Research Process
1. Agree on Research Purpose
2. Establish Research Objectives
Essentials of Marketing Research
Kumar, Aaker, Day
Research Objective
• A statement, in as precise terminology as
possible, of what information is needed
• Should be framed to ensure information obtained
will satisfy research purpose
• Three Components:
Research Question
Hypothesis Development
Research Boundaries
Essentials of Marketing Research
Kumar, Aaker, Day
The Marketing Research Process
(Research Objective)
• Research Question
– Specifies information the decision maker needs to
achieve the research purpose
• Hypotheses development
– Alternative answers to the RQ – research to reveal
which of these are correct
• Research Boundaries
– Who / what should be included – what should be left
out.
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club: Research
Questions
• Consumers ignore advertising?
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club: Research
Questions
• Intense pre-existing competition
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club: Research
Questions
• Outdated competitor’s facilities
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club: Research
Questions
• Increasing YUPPIES
Essentials of Marketing Research
Kumar, Aaker, Day
Hypothesis Development
Theory
Research
Purpose
Research
Question
Management
Experience
Hypothesis
Exploratory
Research
Essentials of Marketing Research
Kumar, Aaker, Day
Research
Design
Role of the Hypothesis
• Introduces more detail than the RQ
– RQ: Why are sales in the Northeast lower than the
national average?
– H1: The competitor released a new ad campaign
– H2: The weather was abnormally cold
– H3: A distribution snafu prevented products from
reaching the retailers
• Introduces variables to be included in the
research design (e.g. new ad campaign,
temperature, distribution problems)
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club:
Hypotheses
• Consumers ignore advertising?
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club:
Hypotheses
• Intense pre-existing competition
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club:
Hypotheses
• Outdated competitor’s facilities
Essentials of Marketing Research
Kumar, Aaker, Day
Case: New Health Club:
Hypotheses
• Increasing YUPPIES
Essentials of Marketing Research
Kumar, Aaker, Day
The Marketing Research Process
(Research Objective)
Research
Purpose
Research
Question
Develop a can How effective is
design for the
each of several
new Miller beer different design
alternatives?
Hypothesis
The design that
conforms to the
advertising message
is best.
Increasing
What is the current Builders Square’s
Builders Square image of Builders image is not as good
store traffic
Square?
as its competitor’s
image.
Essentials of Marketing Research
Kumar, Aaker, Day
Market Research Process
1. Agree on Research Purpose
2. Establish Research Objectives
3. Estimate Value of Information
Essentials of Marketing Research
Kumar, Aaker, Day
The Marketing Research Process
(Estimated Value)
• Expected Value Concept
– Cost of conducting the research vis-à-vis the
benefits of conducting research and benefits
of not conducting research
– Probabilities associated with outcomes
Essentials of Marketing Research
Kumar, Aaker, Day
Expected Value of Introducing a
product
Case 1
Case 2
Success EV=0.6x4m = 2.4m EV=0.6x4m = 2.4m
Failure
EV=0.4x1m = 0.4m EV=0.4x(-2.5m) =
-1m
Total EV = 2.8m
Total EV = 1.4m
Essentials of Marketing Research
Kumar, Aaker, Day
Expected Value of Introducing a
product
• In case 1, we have profits under both options,
•
•
•
hence we will introduce the product – research
is of little use here
In case 2, we have a loss which can be avoided
if research tells us not to introduce the product
What is the maximum you will pay for doing the
research?
ANS: $1m
Essentials of Marketing Research
Kumar, Aaker, Day