Marketing

Research
Ch 2: Defining the Marketing Research Problem and
Developing an Approach
4th Section
By: Marwa Ahmed
 The most The Problem Definition & Approach Development
important step Process
Tasks Involved
Discussions with Interviews with Secondary Data Qualitative
Decision Makers Experts Analysis Research

Environmental Context of the Problem

Step 1: Problem Definition

Management Decision Problem Marketing Research Problem

Step 2: Approach to the Problem

Analytical Framework Research Specification of
and Models Questions and Hypotheses Information Needed

Step 3: Research Design

Tasks Involved in Problem Definition

• Discussions with Decision Makers (Problem definition begins with discussions with the key decision makers).
• Interviews with Industry Experts
• Secondary Data Analysis
• Qualitative Research

The interaction between the DM and the researcher should be characterized by the
seven Cs:
1. Communication
2. Cooperation
3. Confidence Additionally, Problem audit provides
4. Candor a useful framework for interacting with
5. Closeness the DM and identifying the underlying
causes of the problem.
6. Continuity
7. Creativity
Note: Emphasis on excellent client relationship has enabled the Nielsen company
to become the number one marketing research firm globally.
 The Problem Audit
The problem audit is a comprehensive examination of a marketing problem with the
purpose of understanding its origin and nature.
1. The events that led to the decision that action is needed; the History of the Problem
history of the problem.
2. The alternative courses of action available to the DM. Alternative Courses of Action Available to DM

3. The criteria that will be used to evaluate the alternative

courses of action. Criteria for Evaluating Alternative Courses

4. The potential actions that are likely to be suggested

Nature of Potential Actions Based on Research
based on the research findings.
5. The information that is needed to answer the DM's Information Needed to Answer the DM’s Questions
questions.
6. The manner in which the DM will use each item of How Will Each Item of Information Be Used by the DM?

information in making the decision.

7. The corporate culture as it relates to decision making Corporate Decision-Making Culture
Discussion Between the Researcher and the DM
Focus of Researcher
Focus of DM Underlying Causes
Discussion
Symptoms • Lower Product Quality
• Loss of Market Share • Price Undercutting by a Major Competitor
• Inadequate Distribution of Company’s Products
EX: After the recession of 2008-2010, many consumers have
become price and value conscious leading to a loss of market • Superior Promotion by Competition
share for prestigious department stores.
Table 2.1 Problem Defenetion Based on Symptoms Can Be Misleading
Based on
Firm Symptoms Based on Symptoms
Underlying Causes
Manufacturer of Consumers say the Determine consumer Color. The color of the drink is a dark
orange soft drinks sugar content is too high preferences for alternative shade of orange giving the perception
levels of sugar content that the product is too “sugary.”
Manufacturer of Customers complain Determine the price elasticity Channel management. Distributors do
machine tools prices are too high of demand not have adequate product
knowledge to communicate product
benefits to customers.
 Factors to be Considered in the Environment Context
of the Problem

Past Information and Forecasts

1. Past Information and Forecasts
Resources and Constraints
2. Resources and Constraints
3. Objectives of the Decision Maker Objectives of the Decision Maker
4. Buyer Behavior
Buyer Behavior
5. Legal Environment
6. Economic Environment Legal Environment
7. Marketing and Technological Skills
Economic Environment
Buyer behavior is a body of knowledge that
helps to understand and predict consumers' Marketing and Technological Skills
reactions based on an individual's specific
characteristics
 Management Decision Problem & Marketing Research Problem

• Asks what the decision maker • Asks what information is needed and how it
needs to do should be obtained
• Action oriented • Information oriented
• Focuses on symptoms • Focuses on the underlying causes
 Should a new product be introduced?  To determine consumer preferences and purchase
 Should the advertising campaign be intentions for the proposed new product.
changed?  To determine the effectiveness of the current
 Should the price of the brand be advertising campaign.
increased?  To determine the price elasticity of demand and
 Should Harley-Davidson invest to the impact on sales and profits of various levels of
produce more motorcycles? price changes.
 To determine if customers would be loyal
buyers of Harley-Davidson in the long term.
 Errors in Defining the Market Research Problem
There are two types of common errors:
1. Problem Definition is Too Broad
• Does Not Provide Guidelines for Subsequent Steps
• e.g., Improving the Company’s Image

2. Problem Definition is Too Narrow

• May Miss Important Components of the Problem
• e.g. Changing Prices in Response to a Competitor’s Price Change

Figure 2.6
Proper Definition of the Marketing Research Problem
A broad statement of the general problem and
identification of the specific components of the
marketing research problem
 Harley-Davidson Example: Specific Components
Marketing Research Problem: Specific Components
1) Who are the customers? What are their demographic and psychographic (lifestyle)
characteristics?
2) Can different types of customers be distinguished? Is it possible to segment the market in a
meaningful way?
3) How do customers feel regarding their Harleys? Are all customers motivated by the same
appeal?
4) Are the customers loyal to Harley-Davidson? What is the extent of brand loyalty?
Management
Symptoms
Decision Problem
Figure 2.7
Management Decision Problem and Marketing Underlying Marketing Research
Research Problem Causes Problem

Broad Specific
Statement Components
1)While every step in a marketing research project is important, research design formulation is the most
important step.
Answer: FALSE

2)A broad statement of the general problem and identification of the specific components of the marketing
research problem is called problem definition.
Answer: TRUE

3)Problem audit is a comprehensive examination of a marketing problem to understand its origin and nature.
Answer: TRUE

4) The resume of the decision maker is one of the issues discussed with the decision maker during the
problem audit.
Answer: FALSE

5)The corporate culture as it relates to decision making is one of the issues discussed with the decision
maker during the problem audit.
Answer: TRUE
6)Secondary data are data collected for some purpose other than the problem at hand.
Answer: TRUE

7)According to the text, primary data are an economical and quick source of background information.
Answer: FALSE

8)Data originated by the researcher specifically to address the research problem are called primary data.
Answer: TRUE

9)An unstructured, exploratory research methodology based on small samples intended to provide insight
and understanding of the problem setting is called quantitative research.
Answer: FALSE

10)The political environment is a factor that comprises the environmental context of the problem.
Answer: FALSE

11)Buyer behavior is a body of knowledge that tries to understand and predict consumers' reactions based
on an individual's specific characteristics.
Answer: TRUE
12)According to the text, buyer behavior is a central component of the environmental context of the
problem.
Answer: TRUE

13)General economic conditions are considered elements of the legal environment.

Answer: FALSE

14)The problem confronting the decision maker is typically referred to as the marketing research problem.
Answer: FALSE

15)The management decision problem asks what information is needed and how it can best be obtained.
Answer: FALSE

16)According to the text, the marketing research problem is information-oriented.

Answer: TRUE

17)Focusing on the underlying causes of a problem is a characteristic of a management decision problem.

Answer: FALSE
18) While every step in a marketing research project is important, is the most important step.
A) problem definition
B) problem correction
C) research design formulation
D) report generation and presentation
E) project completion
Answer: A

19) According to the problem definition and approach development process as given in the text, the tasks involved in
problem definition consist of all of the following EXCEPT:
A) discussions with the decision makers.
B) interviews with industry experts.
C) analysis of project costs.
D) analysis of secondary data.
E) None of the above
Answer: C

20) is a comprehensive examination of a marketing problem to understand its origin and nature.
A) Problem definition
B) Problem correction
C) Hypotheses generation
D) Research directive
E) Problem audit
Answer: E
21) A broad statement of the general problem and identification of the specific components of the
marketing research problem is called .
A) problem correction
B) problem definition
C) hypotheses generation
D) problem audit
E) project conceptualization
Answer: B

22) Michael Dell of Dell Computers wants his company to take market share from Hewlett- Packard and
Apple in the category of printers. As his marketing research director, which of the following would NOT be
part of the tasks involved in formulating the marketing research problem to support Dell's strategic initiative
in selling printers?
A) qualitative research
B) interviews with experts
C) secondary data analysis
D) discussions with Michael Dell
E) composing the research design
Answer: E
23) The provides a useful framework for interacting with the DM and identifying the underlying causes of the problem.
A) problem audit
B) management problem
C) problem definition
D) none of the above
E) None of the above
Answer: A

24) are data collected for some purpose other than the problem at hand.
A) Primary data
B) Secondary data
C) Virtual data
D) Observational data
E) Research data
Answer: B

25) According to the text, are an economical and quick source of background information.
A) primary data
B) virtual data
C) secondary data
D) observational data
E) A and B
Answer: C
26) The problem audit involves discussions with the decision maker on all of the following issues
EXCEPT:
A) the history of the problem.
B) the criteria that will be used to evaluate the alternative courses of action.
C) the information that is needed to answer the decision maker's questions.
D) the alternative courses of action available to the decision maker.
E) the national culture as it's related to a country's trade barriers.
Answer: E

27) Interviews with industry experts-individuals knowledgeable about the firm and the industry- may
help formulate the marketing research problem. Which of the following statements is true about
interviews with industry experts?
A) These experts may be found both inside and outside the firm.
B) Typically, expert information is obtained by unstructured personal interviews without
administering a formal questionnaire.
C) It is helpful to prepare a list of topics to be covered during the interview.
D) All of the above are true.
E) None of the above
Answer: D
28) All of the following represent examples of sources of secondary data EXCEPT:
A) trade organizations.
B) the Bureau of Census.
C) the Internet.
D) A and B
E) survey data.
Answer: E

29) Which sources of secondary data would be helpful in defining the problem of Wendy's increasing its
share of the fast food market?
A) a field research project conducted by Wendy's to answer the question of how to increase its share of
the fast food market
B) a report from the Fast Food Retailers Association on changing preferences for consumer tastes
C) a U.S. Census Bureau report on the changing demographic profile of the U.S. consumer
D) all of the above
E) B and C only
Answer: E
30) Data originated by the researcher specifically to address the research problem are called……….
A) primary data
B) secondary data
C) virtual data
D) census data
E) research data
Answer: A

31) Which of the following is NOT considered an element of the legal environment?
A) public policies
B) general economic conditions
C) laws
D) government agencies
E) pressure groups
F) Answer: B

32) All of the following are considered as elements in the economic environment EXCEPT:
A) public policies.
B) purchasing power.
C) discretionary income.
D) general economic conditions.
E) disposable income.
Answer: A
33) The problem confronting the decision maker is typically referred to as the .
A) management decision problem
B) theoretical decision problem
C) hypothetical decision problem
D) marketing research problem
E) research context problem
Answer: A

34) The asks what information is needed and how it can best be obtained.
A) management decision problem
B) theoretical decision problem
C) hypothetical decision problem
D) research context problem
E) marketing research problem
Answer: E
35) Which of the following is NOT a characteristic of a management decision problem?
A) focuses on symptoms
B) asks what the decision maker needs to do
C) is action oriented
D) focused on the underlying causes
E) A and C
Answer: D

36) All of the following are characteristics of a marketing research problem EXCEPT:
A) asks what the decision maker needs to do.
B) asks what information is needed and how it should be obtained.
C) is information oriented.
D) focuses on the underlying causes.
E) A and D
Answer: A

37) Which of the following is NOT an issue that would be addressed in a management decision problem?
A) Should the advertising campaign be changed?
B) Should the price of the product be changed?
C) Determine the impact on sales and profits of various levels of price changes.
D) What can a company do to expand its share of its product category?
E) B and C
Answer: C
38) The researcher must have a clear understanding of two types of objectives. Objectives:
A) that are precise and that are specific.
B) for daily and for weekly work.
C) for finance and for marketing.
D) for marketing and for research.
E) of the organization, and of the decision maker.
Answer: E

39) Which of the following is not one of the seven cs involved in the interaction between the DM
and the researcher?
a) Candor
b) Closeness
c) Continuity
d) Creativity
e) None of the above
 Thanks For
Good Listening
See you next week
Happy weekend!