chapter2.ppt 504KB Sep 23 2007 06:40:08 AM

(1)

Defining the Marketing

_{Defining the Marketing}

Research Problem and

Developing an Approach

(2)

1) Overview

2)

Importance of Defining a Problem

3) The Process of Defining a Problem and

Developing an Approach

4) Tasks involved in Problem Definition

i. Discussions with Decision Makers

ii. Interviews with Industry Experts

iii. Secondary Data Analysis

iv. Qualitative Research

Chapter Outline

(3)

5) Environmental Context of the Problem

i

. Past information and Forecasts

ii. Resources and Constraints

iii. Objectives

iv. Buyer Behavior

v. Legal Environment

vi. Economic Environment

vii. Marketing and Technological Skills

6)

Management Decision Problem and

Marketing Research Problem

(4)

7) Defining the Marketing Research Problem

8) Components of an Approach

i. Objective / Theoretical Foundations

ii. Analytical Model

iii. Research questions

iv. Hypothesis

v. Relevant Characteristics

9) International Marketing Research

10) Ethics in Marketing Research

11) Internet and Computer Applications

(5)

12) Focus on Burke

13) Summary

14) Key Terms and Concepts

15) Acronyms

(6)

Chain Restaurant Study

RIP 2.1

One day I received a phone call from a

research analyst who

introduced himself as one of our alumni.

He was working for a restaurant chain in town and wanted help

analyzing the data had collected while

conducting a marketing research study.O

(7)

When we met, he presented with a copy of the

questionnaire and asked how he should analyze the data. My first question to him was,

(8)

When he looked perplexed, I

explained that data analysis in not an independent

exercise.

Rather the goal of data analysis is to PROVIDE INFORMATION RELATED TO THE PROBLEM

(9)

I was surprised to learn that he did not have a clear

understanding of the

market

research problem

and that a written definition did not exist. So before going any further, I had to

define

the marketing research problem.

Once that was done, I found that

much of the data collected was a not relevant to the problem. In this

sense, the whole study was a waste of resources. A new study had to be

designed and implemented to address the problem defined.

(10)

The Problem Definition Process

Fig. 2.1 Fig. 2.1 Discussion with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research

Management Decision Problem

Marketing Research Problem

Tasks Involved

Environmental Context of the Problem

Step I: Problem Definition

Step II: Approach to the Problem

Objective/ Theoretical

Foundations

Analytical Model:

Descriptive ResearchQuestions Hypotheses

Step III: Research Design

Step III: Research Design Analytical Model: Verbal, Graphical, Mathematical Characteristics/ Factors Influencing Research Design

(11)

PAST INFORMATION AND FORECASTS RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR LEGAL ENVIROMENT ECONOMIC ENVIROMENT

MARKETING AND TECNOLOGICAL SKILLS

Factors to be Considered in the

Environmental Context of the Problem

Fig. 2.2

(12)

Marketing Research Problem

Broad Statement

Specific Components

Proper Definition of the

Research Problem

Fig. 2.3

(13)

The Role of Theory in

Applied Marketing Research

Table 2.1

Research Task Role of Theory

1. Conceptualizing and identifying key variables

Provides a conceptual foundation and understanding of the basic processes underlying the problem situation. These processes will suggest key dependent and independent variables.

2. Operationalizing key variables

Theoretical constructs (variables) can suggest independent and dependent variables naturally occurring in the real world.

3. Selecting a research design

Causal or associative relationships suggested by the theory may indicate whether a causal or descriptive design should be adopted.

4. Selecting a sample

The theoretical framework may be useful in defining the population and

suggesting variables for qualifying respondents, imposing quotas, or stratifying the population (see Chap. 11).

5. Analyzing and interpreting data

The theoretical framework (and the models, research questions and hypotheses based on it) guide the selection of a data analysis strategy and the interpretation of results (see Chap. 14).

6. Integrating findings

The findings obtained in the research project can be interpreted in the light of previous research and integrated with the existing body of knowledge.

(14)

Development of Research

Questions and Hypotheses

Fig. 2.4

Components of the

Research Questions

Hypotheses

Objective/

Theoretical

Framework

Analytical

Model

(15)

United Airlines, as other major airlines, had to

deal with

passenger loyalty (management

passenger loyalty

(management

decision problem: how to attract more and more

loyal passengers?). The broad

marketing

research problem

was to identify the

factors that

influence loyalty of airline travelers.

At United, Food is Uniting the Airline

With Travelers

RIP 2.2

(16)

The basic answer is to

The basic answer is to improve serviceimprove service. Exploratory . Exploratory research, theoretical framework, and empirical

research, theoretical framework, and empirical

evidence revealed that the consumers’ choice of an

airline is influenced by:

airline is influenced by: safetysafety, , price of the ticketprice of the ticket, , frequent-flyer program

frequent-flyer program, , convenience of schedulingconvenience of scheduling, , and brand name.

(17)

A graphical model stipulated

that consumers evaluate

competing airlines based on

factors of the choice criteria to

select a preferred airline. The

problem was that major

airlines were quite similar on

these factors. Indeed, "airlines

offer the same schedules, the

same service, and the same

fares.” Consequently, United

Airlines had to find a way to

differentiate itself. Food turned

out to be the solution.

RIP 2.2 Contd.

(18)

Secondary data, like the J. D Power &

Associates' survey on "current and future

trends in airline food industry", indicated

that

that "food service is a major contributor to "food service is a major contributor to customers’ loyalty".

customers’ loyalty". This survey also This survey also emphasized the importance of food brands.

(19)

The airline's Marketrak survey told United Airlines that

"customers wanted more varied and up-to date food.”

The following research questions and hypotheses may be

posed.

RQ1

RQ1 How important is food for airline customers?How important is food for airline customers? H1:

H1: Food is an important factor for airline travelersFood is an important factor for airline travelers H2:

H2: Travelers value branded foodTravelers value branded food H3:

H3: Travelers prefer larger food portions, but with Travelers prefer larger food portions, but with consistent quality

consistent quality

H4:

H4: Travelers prefer exotic foodTravelers prefer exotic food

RIP 2.2 Contd.

(20)

Characteristics which influence the research design

included the identification of competing airlines (Delta,

American, etc.), factors of the choice criteria (already

identified), measurement of airline travel and loyalty.

RIP 2.2 Contd.

(21)

This kind of research helped United Airlines to define their

marketing research problem, and develop the approach. Focus

groups and surveys were conducted to check customers'

perceptions of food in United Airlines' aircraft. The results

provided support for all the hypotheses (H1 to H4). United

Airlines then made a few changes: new "culinary menus,"

larger portions of food, new coffee and branded products (e.g.,

Godiva chocolates). This resulted in better service, increasing

customer satisfaction and fostering loyalty.

(22)

A quiz relating the 150 brands of the cold drinks sold

by coca cola in over 200 countries.

A user group interaction, in which answers on

different topics are received from thousands of

customers.

The Chairman’s report.

Relevant statistics on sales of various products.

Balance sheet information.

Further, a lot of information about the coca cola

company can be obtained from the home page, e.g.,

company overview, production cycle, contacts,

products, statistics, territories, news releases,

chronology, summary of financial information, etc.

The home page for the Coca Cola Enterprises

(http://www.cce.com) provides:

RIP 2.3

(1)

A graphical model stipulated A graphical model stipulated that consumers evaluate that consumers evaluate competing airlines based on competing airlines based on factors of the choice criteria to factors of the choice criteria to select a preferred airline. The select a preferred airline. The problem was that major problem was that major airlines were quite similar on airlines were quite similar on these factors. Indeed, "airlines these factors. Indeed, "airlines offer the same schedules, the offer the same schedules, the same service, and the same same service, and the same fares.” Consequently, United fares.” Consequently, United Airlines had to find a way to Airlines had to find a way to differentiate itself. Food turned differentiate itself. Food turned out to be the solution.

out to be the solution. RIP 2.2 Contd.

(2)

Secondary data, like the J. D Power & Secondary data, like the J. D Power & Associates' survey on "current and future Associates' survey on "current and future trends in airline food industry", indicated trends in airline food industry", indicated

that

that "food service is a major contributor to "food service is a major contributor to customers’ loyalty".

customers’ loyalty". This survey also This survey also emphasized the importance of food brands. emphasized the importance of food brands.

(3)

The airline's Marketrak survey told United Airlines that The airline's Marketrak survey told United Airlines that "customers wanted more varied and up-to date food.” "customers wanted more varied and up-to date food.” The following research questions and hypotheses may be The following research questions and hypotheses may be posed.

posed. RQ1

RQ1 How important is food for airline customers?How important is food for airline customers? H1:

H1: Food is an important factor for airline travelersFood is an important factor for airline travelers H2:

H2: Travelers value branded foodTravelers value branded food H3:

H3: Travelers prefer larger food portions, but with Travelers prefer larger food portions, but with consistent quality

consistent quality

H4:H4: Travelers prefer exotic foodTravelers prefer exotic food RIP 2.2 Contd.

(4)

Characteristics which influence the research design Characteristics which influence the research design

included the identification of competing airlines (Delta, included the identification of competing airlines (Delta,

American, etc.), factors of the choice criteria (already American, etc.), factors of the choice criteria (already identified), measurement of airline travel and loyalty. identified), measurement of airline travel and loyalty.

RIP 2.2 Contd.

(5)

This kind of research helped United Airlines to define their This kind of research helped United Airlines to define their

marketing research problem, and develop the approach. Focus marketing research problem, and develop the approach. Focus

groups and surveys were conducted to check customers' groups and surveys were conducted to check customers'

perceptions of food in United Airlines' aircraft. The results perceptions of food in United Airlines' aircraft. The results provided support for all the hypotheses (H1 to H4). United provided support for all the hypotheses (H1 to H4). United

Airlines then made a few changes: new "culinary menus," Airlines then made a few changes: new "culinary menus,"

larger portions of food, new coffee and branded products (e.g., larger portions of food, new coffee and branded products (e.g., Godiva chocolates). This resulted in better service, increasing Godiva chocolates). This resulted in better service, increasing

customer satisfaction and fostering loyalty. customer satisfaction and fostering loyalty.

(6)

A quiz relating the 150 brands of the cold drinks sold A quiz relating the 150 brands of the cold drinks sold by coca cola in over 200 countries. by coca cola in over 200 countries.

A user group interaction, in which answers on A user group interaction, in which answers on different topics are received from thousands of different topics are received from thousands of

customers. customers.

The Chairman’s report. The Chairman’s report.

Relevant statistics on sales of various products. Relevant statistics on sales of various products.

Balance sheet information. Balance sheet information.

Further, a lot of information about the coca cola Further, a lot of information about the coca cola

company can be obtained from the home page, e.g., company can be obtained from the home page, e.g.,

company overview, production cycle, contacts, company overview, production cycle, contacts,

products, statistics, territories, news releases, products, statistics, territories, news releases,

chronology, summary of financial information, etc. chronology, summary of financial information, etc.

The home page for the Coca Cola Enterprises

(http://www.cce.com) provides:

RIP 2.3 RIP 2.3