Defining the Problem
and Determining
Research Objectives
The Importance of Properly
Defining the Problem
• Properly defining the problem is the
most important step in the marketing
research process.
• If the wrong problem is defined, all
the remaining steps in the marketing
research process are wrong.
Ch 4
2
Define the Problem
• Two sources of problems:
– A problem exists when a gap exists
between what was supposed to
happen and what did happen, i.e.,
failure to meet an objective.
– An opportunity occurs when there
is a gap between what did happen
and what could have
happened…called an opportunity.
Ch 4
3
Define the Problem
Ch 4
4
Recognizing the Problem
• To recognize a problem, managers
must be knowledgeable of objectives
and actual performance.
• To be aware of opportunities,
managers must have a process for
monitoring opportunities, such as
opportunity identification.
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5
The Role of Symptoms in
Problem Recognition
• “We have a problem … we are losing
money”
– Managers must be careful to avoid
confusing symptoms with
problems.
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6
The Role of Symptoms in
Problem Recognition
• Symptoms are changes in the level of
some key monitor that measures the
achievement of an objective.
• The role of the symptom is to alert
management to a problem; there is a
gap between what should be
happening and what is happening.
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7
The Role of the Researcher in
Problem Definition
• Researchers should ensure
managers are defining the problem
correctly.
• This is particularly true when the
manager has already defined the
problem in very specific terms.
• Researchers sometimes take
additional investigations, known as a
“situation analysis,” to ensure the
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problem is adequately defined.
Impediments to Problem
Definition
• Failure to change behavior for
problem definition situations
– Managers deal with outside
suppliers efficiently with little
interaction. Marketing research
requires a great deal of interaction
and communication.
Ch 4
9
Impediments to Problem
Definition
• There are differences between
managers’ and researchers’
backgrounds.
– Traditionally researchers were
technicians and managers were
trained in general decision making.
– Today managers are much more
aware of technical software such
as using your SPSS.
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10
The Role of ITBs and RFPs
• ITBs are Invitations to Bid.
• RFPs are Requests for Proposals.
• When ITBs and RFPs are issued
management has already defined the
problem.
• Phony ITBs and RFPs present an
ethical problem in the marketing
research industry.
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11
Defining the Problem &
Establishing Research Objectives
• A Process:
– There is no universally accepted,
step-by-step approach used by
marketing researchers to define the
problem and establish research
objectives.
• “Defining problems accurately is more
an art than a science.” – Lawrence D.
Gibson
Ch 4
12
Assess the Background and the
Manager’s Situation
• The researcher should first
understand the industry, the
competitors, and the company.
• The researcher must understand the
manager’s unique situation…
– Does the manager have a
particular objective?
– What constraints is the manager
operating under?
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Clarify the Symptoms of the
Problem
• The researcher must understand the
control system and determine what
symptoms are being identified by the
system.
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Pinpoint Suspected Causes of
the Symptom
• There’s always some cause or
causes for a change.
• It is important to determine all
possible causes.
• Researchers should narrow possible
causes to a small set of probable
causes.
Ch 4
15
University Estates – Problem
Definition & Research Objectives
• Situation: Last year, University
Estates (which targets mainly
university students) experienced a
decline in its occupancy rate from
100% to 80%.
• Manager & Researcher brainstorm a
list of POSSIBLE CAUSES
Wait! You give it a try.
Ch 4
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University Estates – Problem
Definition & Research Objectives
• What are some possible cases for
University Estates’ Occupancy
Decline?
Ch 4
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University Estates – Problem
Definition & Research Objectives
Ch 4
18
University Estates – Problem
Definition & Research Objectives
• What is/are the probable cause(s) for
University Estates Occupancy Rate
Decline?
– Something that changed just
before or at the same time as the
symptom(s).
• If it did not change, how could it
cause the symptom?
Ch 4
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University Estates – Problem
Definition & Research Objectives
•
Probable Causes for University Estates
Occupancy Rate Decline
1.
Competitor’s Actions
Basic Cable TV
2.
Consumers (Current
and Prospective Student
Renters)
No change
Probable Cause
Probable Cause
Probable Cause
3.
University Estates Itself
No change
4.
The Environment
No change
Ch 4
Probable Cause
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University Estates – Problem
Definition & Research Objectives
• What can University Estates do?
Add Satellite TV
150 channels
4 Premium channels
Pay-for-view
Ch 4
21
Specify Possible Solutions that
May Alleviate the Symptoms
• Possible solutions include any
marketing action that the marketing
manager thinks may solve the
problem, such as price changes,
product modification, etc.
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Speculate on Anticipated
Consequences of the Solutions
• “What if” questions should be made
regarding possible consequences of
each marketing action being
considered.
Ch 4
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Identify Manager’s Assumptions
about Solutions’ Consequences
• Assumptions are assertions that
certain conditions exist or certain
reactions will take place if considered
solutions are implemented.
• If the manager is completely certain
of assumptions there is no need for
research.
Ch 4
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Identify Manager’s Assumptions
about Solutions’ Consequences
• For those uncertain assumptions,
research will eliminate a manager’s
uncertainty and therefore aid in
decision making.
Ch 4
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The Role of Hypotheses in
Defining the Problem
• Hypotheses are statements that are
taken for true for the purposes of
argument or investigation.
• Assumptions about the
consequences of solutions are
hypotheses.
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The Role of Hypotheses in
Defining the Problem
• When a manager makes a statement
or an assumption that he/she
believes to be true and wants
research to determine if there is
support for that statement, we call
this statement a hypothesis.
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Assess the Adequacy of
Information on Hand
• To specify research objectives
– The information state should be
assessed.
– The information state refers to the
quantity and quality of evidence a
manager possesses for each of his
or her assumptions.
– Information gaps are discrepancies
between the current information
level and the desired information
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level.
Assess the Adequacy of
Information on Hand
• To specify research objectives
– Information gaps are the basis for
establishing research objectives.
– Research objectives are set to
gather the specific bits of
knowledge that need to be
gathered in order to close the
information gaps.
Ch 4
29
University Estates – Problem
Definition & Research Objectives
• Information Gaps (Management
Questions) and Research Objectives
for University Estates
Information Gap/Question
Ch 4
Research Objective(s)
How will prospective residents
react to the inclusion of the
satellite television programming
package with the base
apartment?
To what extent do prospective
student residents want satellite
television?
Will University Estates be more
competitive if it adds a satellite
television package?
Will University Estates be more
attractive than competing
apartment complexes if it has
the satellite television
programming package?
30
Review!
• How to get research objectives from
management questions.
– State the marketing management
question.
– List the specific pieces of
information needed to answer the
question.
– Do this for each and every
management question.
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The Marketing Research
Proposal
• Three functions:
– It states the problem.
– It specifies the research objectives.
– It details the research method
proposed.
• Proposals also contain a timetable
and a budget.
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Research Objectives
•
•
•
•
Ch 4
Precise
Detailed
Clear
Operational
– Operational definitions describe the
operations to be carried out in
order for constructs to be
measured.
33
The Role of Constructs
• A construct is an abstract idea
inferred from specific instances that
are thought to be related.
• Typical marketing constructs are
brand loyalty, satisfaction,
preference, awareness, knowledge.
• Research objectives typically call for
the measurement of constructs.
• There are customary methods for
defining and measuring constructs.
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34
Constructs
CONSTRUCT
Brand
awareness
OPERATIONAL DEFINITION
Question: Have you heard of Brand A? ____ Yes ____ No
Measure: Percentage of respondents having heard of the
brand
Recall,
recognition of
advertising
Question: Do you recall seeing an advertisement for Brand
A?
Measure: Percentage who remember seeing a specific ad
Knowledge of
product features
Question: Indicate which of Brand A’s features you know
about.
Measure: Percentage who know about each feature
Brand familiarity
Question: Are you “unfamiliar,” “somewhat familiar,” or “very
familiar” with Brand A?
Measure: Percentage for each familiarity category
Comprehension
of product
benefits
Question: For each product benefit statement, indicate if you
agree or disagree.
Measure: Percentage who agree with each benefit
statement
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Ch 4
Constructs
CONSTRUCT
Attitudes, feelings
toward brand
OPERATIONAL DEFINITION
Question: Rate Brand A on a 1–5 scale, where 1 =
“poor” and 5 = “excellent”
Measure: Average rating
Intentions to purchase
Question: What is the probability that you will buy
Brand A the next time you purchase
this product?
Measure: Average probability
Past purchase or use
Question: Have you used Brand A in the past three
months?
Measure: Percentage who have used it
Brand loyalty
Question: With your last five purchases of the
product, how many times did you buy Brand A?
Measure: Percentage of times
Satisfaction
Question: Rate Brand A on a 1–5 scale, where 1 =
“unsatisfied” and 5 = “very satisfied”
Measure: Average rating
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Ch 4
• A model is a logical arrangement of
constructs and relationships based
on theory or experience
– Hierarchy of Effects
• Unaware-Aware-Knowledge-LikingIntention-Purchase-Loyalty
– Importance-Performance Model
• Importance: Performance on
attributes
Ch 4
37
– Segmentation Model
• Divide up the market based on
demographics, etc.
– Company Performance Model
• Sum of evaluations on various
attributes
Ch 4
38
HIERARCHY
STAGE
DESCRIPTION
RESEARCH QUESTION (University Estates
Example)
Unawareness
Not aware of your
brand
What percentage of prospective student
residents are unaware of satellite television?
Awareness
Aware of your
brand
What percentage of prospective student
residents are aware of satellite television?
Knowledge
Know something
about your brand
What percentage of prospective student
residents who are aware of it know that
satellite television (1) has 150 channels, (2)
premium channels, and (3) pay-for-view?
Liking
Have a positive
feeling about
your brand
What percentage of prospective student
residents who know something about
satellite television feel negatively, positively,
or neutral about having it in their apartment?
Intention
Intend to buy
your brand next
What percentage of prospective student
residents who are positive about having
satellite television in their apartment intend
to rent an apartment with it?
Purchase*
Have purchased
your brand in the
past
What percentage of the market purchased
(tried) your brand in the past?
Ch 4 Repurchase/
Loyalty*
Purchase your
brand regularly
What percentage of the market has
purchased your brand more than other
brands in the last five purchases?
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Ch 4
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