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Chapter 1&2

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Topics Covered
Introduction to Research: Decision making process Meaning & definition of Research Relevance and significance of Research in business Types of Research Research problems Evolution of Research Overview of Research methodology Research Process: Introduction Theoretical Framework Research Hypotheses

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Decision Making Process

Problem/Opportunity Identification Problem/Opportunity Selection Problem/Opportunity Resolution Implement the course of action

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Role of BRM in decision making process

Problem/Opportunity Identification

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Role of BRM in decision making process

Problem/Opportunity Selection

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Role of BRM in decision making process

Problem/Opportunity Resolution

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Role of BRM in decision making process

Implement the course of action

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Research
Research is an ORGANIZED and SYSTEMATIC way of FINDING ANSWERS to QUESTIONS.

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Research
ORGANIZED in that there is a structure or method in going about doing research. It is a planned procedure, not a spontaneous one. It is focused and limited to a specific scope.

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Research
SYSTEMATIC because there is a definite set of procedures and steps which you will follow. There are certain things in the research process which are always done in order to get the most accurate results.

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Research
FINDING ANSWERS is the end of all research. Whether it is the answer to a hypothesis or even a simple question, research is successful when we find answers. Sometimes the answer is no, but it is still an answer.

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Research
QUESTIONS are central to research. If there is no question, then the answer is of no use. Research is focused on relevant, useful, and important questions. Without a question, research has no focus, drive, or purpose.

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Types of Research
Basic & Applied Marketing Research,Operations,HR etc Exploratory Research, Descriptive Research, Causal Research, Experimental research Qualitative Research and Quantitative Research

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Types of Research
Exploratory Research (huh?)
Designed to generate basic knowledge, clarify relevant issues uncover variables associated with a problem, uncover information needs, and/or define alternatives for addressing research objectives. A very flexible, open-ended process.

Descriptive Research (who, what, where, how)

Designed to provide further insight into the research problem by describing the variables of interest. Can be used for profiling, defining, segmentation, estimating, predicting, and examining associative relationships.

Causal Research (If-then)

Designed to provide information on potential cause-andeffect relationships. Most practical in marketing to talk about associations or impact of one variable on another.

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Experimental Research
There are many different types of "experiments." All experimental research, however, has several elements in common. One of the most obvious is the division of the subjects into groups (control, experimental, etc.). Another is the use of a "treatment" (usually the independent variable) which is introduced into the research context or manipulated by the researcher.

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Experimental Research
In contrast to qualitative research, virtually all experiments are designed to test hypotheses. Its highly analytical.

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Qualitative & Quantitative Research

Qualitative research allows to explore perceptions, attitudes and motivations and to understand how they are formed. It provides depth of information which can be used in its own right or to determine what attributes will subsequently be measured in quantitative studies

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Qualitative & Quantitative Research

Quantitative research is descriptive and provides hard data on the numbers of people exhibiting certain behaviors, attitudes, etc. It provides information in breadth and depth and allows sample large numbers of the population. Its highly data-intensive and mathematical

A Classification of Marketing Research

Marketing Research

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Problem Identification Research

Problem Solving Research

Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research

Segmentation Research

Product Research Promotion Research Distribution Research

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Marketing Research Suppliers & Services

INTERNAL RESEARCH SUPPLIERS EXTERNAL

FULL SERVICE
Syndicate Services Standardized Services Internet Services Customize d Services

LIMITED SERVICE
Field Services Coding and Data Entry Services Branded Products and Services Data Analysis Services

Analytical Services

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Selected Marketing Research Career Descriptions

Vice-President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department. Research Director: Also a senior position. The research director has the general responsibility for the development and execution of all the marketing research projects. Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing research staff members.

(Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis. 21

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Selected Marketing Research Career Descriptions

Senior Analyst
Participates in the development of projects Carries out execution of assigned projects Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collection Prepares final report

Analyst
Handles details in execution of project Designs & pretests questionnaires Conducts preliminary analysis of data

Statistician/Data Processing
Serves as expert on theory and application on statistical techniques Oversees experimental design, data processing, and analysis

Junior Analyst
Secondary data analysis Edits and codes questionnaires Conducts preliminary analysis of data

Fieldwork Director
Handles selection, training, supervision, and evaluation of interviewers and field workers
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Careers in Marketing Research

Career opportunities are available with marketing research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C) Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal Trade Commission, United States Census Bureau) Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam) Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor. 23

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Research Process
Step 1: Problem Definition Step 2: Development of an Approach to the Problem Step 3: Research Design Formulation Step 4: Fieldwork or Data Collection Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation
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Overview of Research Methodology

1) The Process of Defining the Problem and

Developing an Approach
2) Tasks involved in Problem Definition i. Discussions with Decision Makers ii. Interviews with Industry Experts iii. Secondary Data Analysis iv. Qualitative Research

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Overview of Research Methodology

3) 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

4) Management Decision Problem and Research Problem

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Overview of Research Methodology

5) Defining the Research Problem

6) Components of an Approach
i. Objective / Theoretical Foundations ii. Analytical Model

iii. Research Questions

iv. Hypothesis v. Specification of Information Needed

7) Fieldwork or Data collection, data preparation and Analysis and solution

8) Report Preparation and Presentation

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The Problem Definition Process

Tasks Involved
Discussion with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem

Research Problem

Step II: Approach to the Problem

Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed

Objective/ Theoretical Foundations

Research Questions

Hypotheses

Step III: Research Design

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Tasks Involved in Problem Definition

Discussions with Decision Makers Interviews with Industry Experts Secondary Data Analysis Qualitative Research

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The Problem Audit

The problem audit is a comprehensive examination of a business problem with the purpose of understanding its origin and nature. 1. The events that led to the decision that action is needed, or the history of the problem. 2. The alternative courses of action available to the DM. 3. The criteria that will be used to evaluate the alternative courses of action. 4. The potential actions that are likely to be suggested based on the research findings. 5. The information that is needed to answer the DM's questions. 6. The manner in which the DM will use each item of information in making the decision. 7. The corporate culture as it relates to decision making.

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The Seven Cs of Interaction

The interaction between the DM and the researcher should be characterized by the seven Cs:
1. 2. 3. 4. 5. 6. 7. Communication Cooperation Confidence Candor Closeness Continuity Creativity

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Factors to be Considered in the Environmental Context of the Problem

PAST INFORMATION AND FORECASTS RESOURCES AND CONSTRAINTS OBJECTIVES BUYER BEHAVIOR LEGAL ENVIROMENT ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL SKILLS

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Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Should a new product be introduced? Research Problem To determine consumer preferences and purchase intentions for the proposed new product. To determine the effectiveness of the current advertising campaign.

Should the advertising campaign be changed?

Should the price of the brand be increased?

To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.

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Proper Definition of the Research Problem

Research Problem Broad Statement

Specific Components

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Components of an Approach
Objective/Theoretical Foundations Analytical Model Research Questions Hypotheses Specification of the Information Needed

The Role of Theory in Applied Research

Research Task 1. Conceptualizing and identifying key variables Role of Theory Provides a conceptual foundation and understanding of the basic processes

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underlying the problem situation. These processes will suggest key dependent and independent variable s. Theoretical constructs (variables) can suggest independent and dependent

2. Operationalizing
key variables 3. Selecting a research design 4. Selecting a sample 5. Analyzing and interpreting data 6. Integrati ng findings

variables naturally occurring in the real world.

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

The theoretical framework may be useful in defining the population and

suggesting variables for qualifying respondents, imposing quotas, or stratifying the population The theoretical framework (and the models, research questions and hypotheses based on it) guide the selection of a data analysis strategy and the interpretation The findings obtained in the research project can be interpreted in the light of previous research and integrated with the existing body of knowledge.

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Models
An analytical model is a set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. In verbal models, the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory.

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Graphical Models
Graphical models are visual. They are used to isolate variables and to suggest directions of relationships but are not designed to provide numerical results.
Awareness

Understanding: Evaluation

Preference

Patronage

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Mathematical Models
Mathematical models explicitly specify the relationships among variables, usually in equation form.

y a 0 a i xi
i 1

Where y = degree of preference = model parameters to be estimated statistically

a ,a
0

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Development of Research Questions and Hypotheses

Components of the Marketing Research Problem Objective/ Theoretical Framework Analytical Model Hypotheses

Research Questions

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Research Questions and Hypotheses

Research questions (RQs) are refined statements of the specific components of the problem. A hypothesis (H) is an unproven statement or proposition about a factor or phenomenon that is of interest to the researcher. Often, a hypothesis is a possible answer to the research question.

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At United, Food is Uniting the Airline with Travelers

United Airlines, as other major airlines, had to deal with passenger loyalty (management decision problem: how to attract more and more loyal passengers). The broad research problem was to identify the factors that

influence loyalty of airline travelers.

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At United, Food is Uniting the Airline with Travelers

The basic answer is to improve service. Exploratory research, theoretical framework, and empirical evidence revealed that the consumers choice of an airline is influenced by: safety, price of the ticket, frequent-flyer program, convenience of scheduling, and brand name.

At United, Food is Uniting the Airline with Travelers

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.

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At United, Food is Uniting the Airline with Travelers

Secondary data, like the J. D Power & Associates' survey on "current and future trends in airline food industry," indicated that "food service is a major contributor to customers loyalty." This survey also emphasized the importance of food brands.

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At United, Food is Uniting the Airline with Travelers

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 H1: H2: H3: H4: How important is food for airline customers? Food is an important factor for airline travelers. Travelers value branded food. Travelers prefer larger food portions, but with consistent quality. Travelers prefer exotic food.

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At United, Food is Uniting the Airline with Travelers

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.

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At United, Food is Uniting the Airline with Travelers

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.

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Research Sucks !!!!!!!

Sony Walkman, Red Bull

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