Cooper 1e Chapter04

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>learningobjectives After reading this chapter, you should understand . . . 1 Research is decision- and dilemma-centered. 2 The clarified research question is the result of careful exploration and analysis and sets the direction for the research project. 3 How value assessments and budgeting influence the process for proposing research and, ultimately, research design. 4 What is included in research design, data collection, and data analysis. 5 Research process problems to avoid. The Marketing Research Process: An Overview >chapter 4

Transcript of Cooper 1e Chapter04

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>learningobjectivesAfter reading this chapter, you should understand . . .

1 Research is decision- and dilemma-centered.

2 The clarified research question is the result of careful explorationand analysis and sets the direction for the research project.

3 How value assessments and budgeting influence the process forproposing research and, ultimately, research design.

4 What is included in research design, data collection, and dataanalysis.

5 Research process problems to avoid.

The Marketing Research Process: An Overview

>chapter 4

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On the return flight from Austin, Visionary Insights’ Ja-

son Henry and MindWriter’s Myra Wines are dis-

cussing their trip. “That went really well,” she says.

“There are going to be a few problems,” disagrees

Jason. “Gracie, like most marketing managers, wants

the sun, the sky, and the moon. She wants to know the

demographic characteristics of her users . . . their job

descriptions . . . their salaries . . . their ethnicities . . .

their education; wants to know their perception of

MindWriter . . . of the quality of MindWriter’s specific

models; wants to know their satisfaction with the pur-

chase channel and with the CompleteCare service,

too.”

“And your point is?” asks Myra.

“You and Gracie need to keep your eye on the bot-

tom line. You can bet someone will want to know how

you and Gracie can justify asking all these questions.

They will ask, ‘What is going to be the payoff in know-

ing the ethnicity of customers?’ And if you or Gracie

can’t explain the justification for needing the informa-

tion, if one of you can’t establish that the dollar benefit

of knowing is at least as great as the dollar cost of

finding out, the question will get struck from the

developing research.”

“Is there no way we can justify knowing everything

Gracie wants to know?” inquires Myra.

“We can draft a survey and do a pilot study of a few

hundred customers and see if the ethnic background, or

the salary level, or any other item that Gracie cares

about is a good indicator of satisfaction, willingness to

make a repeat purchase, postpurchase service satisfac-

tion, and so forth. If it is, maybe collecting that infor-

mation can be justified.”

“So you feel we need to propose a pilot study to

whittle down the information needed to critical items,

followed by a larger study later?”

“A pilot study could help in other ways, too. Gracie

wants to know the customers’ perception of Mind-

Writer’s overall quality. But we have to ask ourselves,

‘Are these customers really qualified to form inde-

pendent opinions, or will they simply be parroting what

they have read in the computer magazines or what a

dealer told them?’A pilot study of a few hundred users

can help determine if it is really useful to ask them their

overall impression of the product.

“However, with the repair problem we can be rea-

sonably sure that the CompleteCare customers know

their own minds when it comes to evaluating their

firsthand experience with MindWriter’s service

department.”

“Today’s tour of the CompleteCare facility really

helped me understand the context of management’s

concerns,” comments Myra. “Did you or Sara have a

chance to look over any of the customer letters from

the service department?”

Jason digs into his briefcase and extracts a small

sheaf of photocopies. “Yes, and Sara reviewed tran-

scriptions, too, on service center phone conversations.

She pulled a few for us. One person writes, ‘My Mind-

Writer was badly damaged on arrival. I could not be-

lieve its condition when I unpacked it.’ And here, ‘The

service technicians seemed to be unable to understand

We rejoin Visionary Insights’ Jason Henry as he works on the MindWriterCompleteCare customer satisfaction project. At this stage in the MindWriter research

process, Jason Henry’s task is to help MindWriter’s project director, Myra Wines, definethe correct information to collect. Henry and Wines have just spent the day at the CompleteCare

facility in Austin and with other MindWriter managers who are influential to CompleteCare’ssuccess. They spent much of their time with Gracie Uhura, MindWriter’s marketing manager.

MindWriter

>behindthescenes

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>behindthescenescont’d

> The Marketing Research ProcessWriters usually treat the research task as a sequential process involving several clearly de-fined steps. No one claims that research requires completion of each step before going tothe next. Recycling, circumventing, and skipping occur. Some steps are begun out of se-quence, some are carried out simultaneously, and some may be omitted. Despite these vari-ations, the idea of a sequence is useful for developing a project and for keeping the projectorderly as it unfolds.

Exhibit 4-1 models the sequence of stages in the research process. We refer to it oftenas we discuss each stage and step in subsequent chapters. Our discussion of the questionsthat guide project planning and data gathering is incorporated into the model (see the ele-ments within the inverted pyramid in Exhibit 4-1 and compare them with the elements inExhibit 4-2). Exhibit 4-1 also organizes this chapter and introduces the remainder of thebook.

The research process begins much as the opening vignette suggests. A managementdilemma triggers the need for a deci-sion. For MindWriter, a growingnumber of complaints about postpur-chase service started the process. Inother situations, a controversy arises,a major commitment of resources iscalled for, or conditions in the envi-ronment signal the need for a deci-sion. For MindWriter, the criticalevent could have been a competitor’sintroduction of new technology.Such events cause managers to re-consider their purposes or objectives,define a problem for solution, or de-velop strategies for solutions theyhave identified.

In our view of the researchprocess, the management question—its origin, selection, statement, ex-ploration, and refinement—is thecritical activity in the sequence.Throughout the chapter we empha-size problem-related steps. A famil-iar quotation from Albert Einstein,no less apt today than when it waswritten, supports this view:

my complaint, but once they understood it, they per-

formed immediate repairs.’ You and I will collaborate

to boil down these, and possibly dozens more like

them, to a couple of representative questions that can

be pilot-tested for clarity, consistency, and representa-

tiveness. You don’t want MindWriter to pay for every-

thing Gracie says she wants, just what she wants that

has a payoff and is researchable.”

78 >part I Research in Marketing

research process variousdecision stages involved in aresearch project and therelationship between thosestages.

The primary purpose ofresearch is to reduce the levelof risk of a marketing decision.Knowing that most newproduct introductions fail, thishumorous ad from GreenfieldOnline suggests that not allnew product ideas are worthyof consideration and that well-executed research can save afirm from a costly mistake.www.greenfieldonline.com

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>chapter 4 The Marketing Research Process: An Overview 79

> Exhibit 4-1 The Marketing Research Process

ResearchProposal

Discover the Management Dilemma

Define the Management Question

Define the Research Question(s)

Refine theResearch Question(s)

(type, purpose, time frame, scope, environment)

Researchplanning

Legend

Research Reporting

ExplorationExploration

Data Analysis and Interpretation

Research DesignStrategy

Clarifying the Research Question

ManagementDecision

Datagathering

Reporting

Data Collection and Preparation

Data Collection Design

SamplingDesign

Instrument Development& Pilot Testing

Analysis,interpretation

Chapters 3–5

Chapters 7–17

Chapter 18

Chapters 19–22

Chapter 23

Chapter 6

Sta

ge

6S

tag

e 5

Sta

ge

4S

tag

e 3

Sta

ge

2S

tag

e 1

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A useful way to approach the research process is to state the basic dilemma that promptsthe research and then try to develop other questions by progressively breaking downthe original question into more specific ones. You can think of the this process as themanagement-research question hierarchy. You can follow the research process as it de-velops for MindWriter in Exhibit 4-2.

The process begins at the most general level with the management dilemma. This isusually a symptom of an actual problem, such as:

• Rising costs.

• The discovery of an expensive chemical compound that would increase the efficacyof a drug.

• Increasing tenant move-outs from an apartment complex.

• Declining sales.

• A larger number of product defects during the manufacture of an automobile.

• An increasing number of letters and phone complaints about postpurchase service (asat MindWriter).

The management dilemma can also be triggered by an early signal of an opportunity or grow-ing evidence that a fad may be gaining staying power—like the growing interest in low-car-bohydrate diets indicated by the number of broadcast news segments and print news stories

over an extended period of time. Identifying management dilemmas

is rarely difficult (unless the organiza-tion fails to track its performancefactors—like sales, profits, employeeturnover, manufacturing output anddefects, on-time deliveries, customersatisfaction, etc.). However, choosingone dilemma on which to focus maybe difficult. Choosing incorrectly willdirect valuable resources (time, man-power, money, and equipment) on apath that may not provide criticaldecision-making information (thepurpose of good research). As a mar-keting manager, only practice makesyou proficient at identifying whichare real problems and which are not,as well as correctly discerning thescope of the dilemma to be re-searched. For new managers, or es-tablished managers facing newresponsibilities, developing severalmanagement-research question hier-archies, each starting with a different

80 >part I Research in Marketing

> Stage 1: Clarifying the Research Question

management-researchquestion hierarchy processof sequential questionformulation that leads amanager or researcher frommanagement dilemma toinvestigative questions.

management dilemma theproblem or opportunity thatrequires a marketing decision.

“Why?” is a question thatdrives many a company to domarketing research. HarrisInteractive® is promising that ifthis guy is your customer, you’llactually understand whatmakes him tick—dollar-signmedallion and all—by the timeHarris finishes your researchproject. © 2004, HarrisInteractive Inc. All rightsreserved.www.harrisinteractive.com

The formulation of a problem is far more often essential than its solution, which may be merely a matterof mathematical or experimental skill. To raise new questions, new possibilities, to regard old problemsfrom a new angle requires creative imagination and marks real advance in science.1

Whether the researcher is involved in basic or applied research, a thorough understandingof the management question is fundamental to success in the research enterprise.

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>chapter 4 The Marketing Research Process: An Overview 81

> Exhibit 4-2 Formulating the Research Question for MindWriterTo move from the management dilemma to the management question and subsequent research questions takes exploratory research.Such research may include examining previous studies, reviewing published studies and organizational records, and interviewing experts orinformation gatekeepers.

An increasing number of lettersand phone complaints about

postpurchase service.

What should be done to improvethe CompleteCare program for

MindWriter product repairsand servicing?

Should the tech-support operator begiven more intensive trainingShould ABC Courier Service bereplaced by an air-transport serviceShould the repair diagnostic andrepair sequencing operations bemodifiedShould the return packaging bemodified to include premolded rigidfoam inserts, or conforming-expandablefoam protectionShould metropolitan repair centers be established to complement or replace in-factory repair facilities

1a Exploration

2a ExplorationInterviews withService managerCall center managerIndependent package company account executive

• • •

1Discover

ManagementDilemma

2Define

ManagementQuestion

3Define

ResearchQuestion(s)

Stage 1: Pre-Austin1. PC magazines annual survey

of service, repair & tech support

2. Published customer satisfaction comparisons

Stage 2: Austin Meeting1. Production: 5,000/mo.2. Distribution through computer

superstores and independent mail order co.

3. CustomCare process

Stage 3: Post-Austin: Brainstorming & company letters1. Possible problems:

(a) Employee shortages(b) Tech-line operator training(c) Uneven courier performance(d) Parts shortages(e) Inconsistent repair servicing(f) Product damage during repair(g) Product damage during

shipping(h) Packaging and handling

problems

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82 >part I Research in Marketing

dilemma, will assist in the choice process. In all figures related to the research process model,in this and subsequent chapters, we use an inverted pyramid to represent the management-re-search question hierarchy.

Subsequent stages of the hierarchy take the marketer and his or her research collaboratorthrough various brainstorming and exploratory research exercises to define the following:

• Management question—a restatement of the marketer’s dilemma(s) in questionform.

• Research question(s)—the hypothesis that best states the objective of the research;the question(s) that focuses the researcher’s attention.

A Love-Match between Lexus and Research

If your product earns rave reviews for dependability/reliability,

quality workmanship, and manufacturer reputation, that’s good,

right? If your firm delivers on the promise of your long-held pro-

motional tagline—the “Pursuit of Perfection”—that’s great, right?

“Not good enough,” claims Mark Miller, associate director of

strategic planning, Team One Advertising, “when Toyota is deter-

mined to infuse the Lexus brand with passion.”

Toyota faced some troubling statistics in the 1997–1999

model years. While the Lexus brand was setting sales records

and overall the luxury coupe category was growing, its Lexus

coupe sales were declining. And while Lexus scored well on the

rational motivators, it lacked the emotional motivators deemed

critical for luxury coupe success, especially against Corvette,

Porsche, and Mercedes. Toyota engineers had developed a con-

cept car in Japan, the SC 430. This car was Toyota’s first luxury

convertible and sported a technologically advanced, retractable

hard top rather than the more usual soft “rag” top.

Team One was charged with developing the communications

program to launch the SC 430. Understanding that this car was

and needed to be a departure from traditional Lexus brand im-

agery, Team One needed information to accomplish Toyota’s

more aggressive agenda: “(1) evolve the Lexus brand using the

SC 430 convertible as the emotional flagship, (2) stimulate desire

for the Lexus brand, as well as desire for the SC 430 convertible,

(3) make a connection with luxury convertible buyers beyond the

rational, and (4) inject more passion into our Pursuit of Perfec-

tion.” Using syndicated tracking studies by Allison-Fisher and in-

novative quantitative research by Diagnostic Research Inc.,

along with strategic marketing clinic research by the Lexus team,

and data mining Toyota’s Consolidated Dynamic Study, Team

One created its innovative French-language American-aired

campaign. The Cabriolet Nouveau campaign married the associ-

ation of the French with seduction, love, and romance to the

“stylish, sophisticated, sexy” Lexus SC 430. The results were

award-winning in numerous ways, including earning the 2002

David Ogilvy Research Award in the durables category.

Using the management-research question hierarchy, identify

the management dilemma, management question(s), and re-

search question(s) that would drive this research. Watch for the

special icon that indicates a continuation of this research story

example.

www.lexus.com; www.teamoneadv.com;

www.diagnostic.com; www.allison-fisher.com

>snapshot

management question themanagement dilemma restatedin question format.

research question(s) thehypothesis that best states theobjective of the research.

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>chapter 4 The Marketing Research Process: An Overview 83

> Stage 2: Proposing Research

Resource Allocation and BudgetsOnce the research question is defined, the manager must propose research in order to allo-cate resources to the project. While data collection requires substantial resources, it oftentakes no more than one-third of the total research budget. The geographic scope and thenumber of observations, surveys, or interviews required do affect the cost of a researchproject, but much of this cost is relatively independent of the size of the data-gathering ef-fort. Thus, a guide might be that (1) project planning, (2) data gathering, and (3) analysis,interpretation, and reporting each shares about equally in the budget.

Without budgetary approval, many research efforts are rejected for lack of resources(see Exhibit 4-3). A budget may require significant development and documentation as ingrant and contract research, or it may require less attention as in some in-house projects orinvestigations funded out of the researcher’s own resources. The researcher who seeksfunding must be able not only to persuasively justify the costs of the project but also toidentify the sources and methods of funding. One author identifies three types of budgetsin organizations where research is purchased and cost containment is crucial:

• Rule-of-thumb budgeting involves taking a fixed percentage of some criterion. Forexample, a percentage of the prior year’s sales revenues may be the basis for deter-mining the marketing research budget for a manufacturer.

• Departmental or functional-area budgeting allocates a portion of total expendituresin the unit to research activities. Government agencies, not-for-profits, and the pri-vate sector alike will frequently manage research activities out of functional budgets.Units such as human resources, marketing, or engineering then have the authority toapprove their own projects.

• Task budgeting selects specific research projects to support on an ad hoc basis. Thistype is the least proactive but does permit definitive cost-benefit analysis.2

Valuing Research InformationThere is a great deal of interplay between budgeting and value assessment in any manage-ment decision to conduct research. The decision maker wants a firm cost estimate for a pro-posed project and an equally precise assurance that useful information will result from thestudy. In profit-making concerns, marketing managers are increasingly faced with provingthat the research they initiate or purchase meets return-on-investment (ROI) objectives. Ifsuch proposed research fails to help managers avoid losses or discover opportunities that canincrease sales or profits, such research may be considered wasteful and the proposed researchrejected. Even if the researcher can give good cost and information estimates, the managerstill must judge whether the benefits outweigh the costs.

Conceptually, the value of marketing research is not difficult to determine. One sourcesuggests that the value of research information may be judged in terms of “the difference

• Investigative questions—questions the researcher must answer to satisfactorily an-swer the research question; what the marketer feels he or she needs to know to arriveat a conclusion about the management dilemma.

• Measurement questions—what participants in marketing research are asked or whatspecifically is observed in a research study.

The definition of the management question sets the research task. So a poorly defined man-agement question will misdirect research efforts. In Chapter 5, we explore this critical stagein more detail in our search to clarify the research question.

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84 >part I Research in Marketing

between the result of decisions made with the infor-mation and the result that would be made withoutit.”3 While such a criterion is simple to state, its ac-tual application presents difficult measurement prob-lems.

Not all marketing research is contracted by profit-oriented enterprises or with profit-oriented objectivesin mind. Churches, trade associations, and foundations

are examples of nonprofits that do marketing research on a regular basis. This, however, doesnot eliminate the need for such organizations’ managers to prove the value of undertakingmarketing research. Ultimately, a marketer will be making a decision that will rely on the in-sights extracted from the proposed research. The value of the decision with the research—however it is measured—must exceed the value of the decision without research.

Evaluation MethodsOption Analysis Some progress has been made in the development of methods forassessing the value of research when management has a choice between well-defined op-tions. Managers can conduct a formal analysis with each alternative research project judgedin terms of estimated costs and associated benefits and with managerial judgment playinga major role.

If the research methodology can be stated clearly, one can estimate an approximate cost.The critical task is to quantify the benefits from the research. At best, estimates of benefitsare crude and largely reflect an orderly way to estimate outcomes under uncertain condi-tions. To illustrate how the contribution of research is evaluated in such a decision situa-tion, we must digress briefly into the rudiments of decision theory.

Decision Theory When there are alternatives from which to choose, a rational wayto approach the decision is to try to assess the outcomes of each action. The case of two

> Exhibit 4-3 Proposing Research

ProposeResearch

ResearchQuestion

Budget and Value AssessmentManagement

Decision without

Research

ExecuteResearch Design

IssueRequest for

Proposal

Obtain Budget and

Design Approval

Cost exceedsvalueValue exceeds

cost

Approved

Rejected

Rev

ise

que

stio

nWe keep moving forward, opening new

doors, and doing new things, because

we’re curious and curiosity keeps leading

us down new paths.” Walt Disney

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choices will be discussed here, although the same approach can be used with more than twochoices. You’ll find an example of decision theory on this book’s DVD.

Two possible actions (A1 and A2) may represent two different ways to promote a company,support a cause, design a product, and so forth. The manager chooses the action that affordsthe best outcome—the action choice that meets or exceeds whatever criteria are establishedfor judging alternatives. Each criterion is a combination of a decision rule and a decisionvariable. The decision variable might be “new customers captured,” “contribution to prof-its,” “time required for completion of the project,” and so forth. For MindWriter, the decisionvariable might be number of “postservice complaints” or the level of “postservice satisfac-tion.” Usually the decision variable is expressed in a quantifiable measure, often in dollars,representing sales, costs, or some form of profits. The decision rule may be “Choose thecourse of action with the lowest loss possibility” or, perhaps, “Choose the alternative that pro-vides the greatest number of retained customers.” For MindWriter, the decision rule might be“Choose the alternative that provides the highest level of postservice satisfaction.”

The alternative selected (A1 versus A2) depends on the decision variable chosen and thedecision rule used. The evaluation of alternatives requires that (1) each alternative is ex-plicitly stated, (2) a decision variable is defined by an outcome that may be measured, and(3) a decision rule is determined by which outcomes may be compared.

Prior or Interim Evaluation Some research projects are sufficiently unique thatmanagerial experience provides little aid in evaluating the research proposal. Additionally,the management information need may be so great as to ensure that the research is ap-proved. In such cases, managers may decide to control the research expenditure risk by do-ing a study in stages. They can then review costs and benefits at the end of each stage andgive or withhold further authorization.

Ex Post Facto Evaluation If there is any measurement of the value of research,it is usually an after-the-fact event. Using an estimate of alternative decision choices, the

>chapter 4 The Marketing Research Process: An Overview 85

>snapshotWASSUP? from Donatos Pizza

In the food business, strategic windows remain open for limited

periods of time. “Restaurants are influenced by many factors.

Some include product, message, weather, reputation, and com-

petition,” shared Donatos’ chief concept officer, Tom Krouse. In

Donatos WASSUP? meetings, each employee brings knowledge

of an element from popular culture and the group discusses its

possible effect on the company’s 184 restaurants. Exposure

comes from articles, movies, books, TV, and daily living. Donatos

filters this less formal exploration with syndicated research. “By late

July, we had research that showed 26 percent of adult eaters were

carb-aware.” And Donatos had evidence that adults were incor-

porating low-carb habits into their diets. In its own restaurants, din-

ers were eating the toppings from their favorite meat-loaded pizza

but leaving the crust behind. On this accumulated evidence, Do-

natos decided it wanted to own the low-carb position in pizza.

Donatos’ first step was to compact its normal new product

development process into less than six months—to be ready for

the traditional postholiday increase in dieting. Taste tests told Do-

natos that the low-carb crust options available sacrificed taste—

and choosing that route would have jeopardized its premium

pizza flavor positioning, which was reinforced by its Edge-to-

Edge™ toppings. Instead, Donatos chose a more expensive, but

true-to-positioning, product that incorporated protein crisps and

tested well with pizza eaters. Following the discovery of a high-

heat-resistant paper that could serve as both baking and serving

plate, the company did in-store trials in two restaurants. In-store

postpurchase surveys of diners told Donatos its No Dough pizza

was a winner. Donatos rolled out the No Dough pizza to its 184

restaurants in January 2004. The menu board now shows three

crust versions: original crispy, traditional, or No Dough. Diners

simply choose their favorite pizza toppings and choose the No

Dough option. Increased visits from Atkin’s dieters and pur-

chases from a hidden segment, gluten avoiders, propelled sales

increases. Coverage in numerous local papers and TV seg-

ments, on the Today show, and in the New York Times helps Do-

natos own the low-carb position in pizza in its markets.

www.donatos.com

To learn more, read the case on your DVD: “Donatos: Finding

the New Pizza.”

decision rule criterion forjudging the attractiveness oftwo or more alternatives whenusing a decision variable.

decision variable aquantifiable characteristic,attribute, or outcome on whicha choice decision will be made.

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preresearch likelihood that a decision choice would be selected, and a postresearch projec-tion of the implemented decision’s contribution to profitability (or some other decisionvariable), a researcher can estimate the contribution value of a research project. One suchstudy using one manufacturer’s research activities reported that 40 percent of the researchactually directed the manager to the appropriate decision. Using data on profitability con-tribution and on direct research costs only, the researcher calculated a 31⁄2-fold return on themanufacturer’s investment.4 While the postresearch effort at cost-benefit comes too late toguide a current research decision, such analysis may sharpen the manager’s ability to makejudgments about future research proposals.

The Research ProposalExhibit 4-1 depicts the research proposal as an activity that incorporates decisions madeduring early project planning phases of the study, including the management-research ques-tion hierarchy and exploration. The proposal process thus incorporates the choices the in-vestigator makes in the preliminary steps, as depicted in Exhibit 4-3.

A written proposal is often required when a study is being suggested. This is especiallytrue if an outside research supplier will be contracted to conduct the research. The writtenproposal ensures that the parties concur on the project’s purpose, the proposed methods ofinvestigation, the extent of analysis, and the timing of each phase as well as of delivery ofresults. Budgets are spelled out, as are other responsibilities and obligations. The proposalmay serve the purpose of a legally binding contract.

A research proposal also may be oral, where all aspects of the research are discussed butnot codified in writing. This is more likely when a manager directs his or her own researchor the research activities of subordinates.

We describe detailed research proposals in Chapter 6, and you’ll find a sample proposalon your text DVD.

86 >part I Research in Marketing

> Stage 3: Designing the Research Project

Research DesignThe research design is the blueprint for fulfilling objectives and providing the insight toanswer management’s dilemma. The field of marketing research offers a large variety ofmethods, techniques, procedures, and protocols. For example, you may decide on review-ing published records (a secondary data study), or studying one particular example in greatdetail (a case study), or conducting a survey, an experiment, or a computer simulation. If asurvey is selected, should it be administered by mail, computer, telephone, the Internet, orpersonal interview? Should all relevant data be collected at one time or at several differentpoints in time? What kind of structure will the questionnaire or interview guide possess?What question wording should be employed? Should the responses be scaled (“Please eval-uate each of the following criteria for selecting a store for product X on a scale of 1 to 5,where 5 is critically important and 1 is not important.”) or open-ended (“What is most im-portant to you when choosing a store for product X?”)? How will you ensure that the datayou collect will accurately and precisely answer the manager’s dilemma? Will characteris-tics of the interviewer influence responses to the measurement questions? What kind oftraining should the data collectors receive? Is a sample or a census to be taken? What typesof sampling should be considered? These questions represent only a few of the decisionsthat have to be made when just one method is chosen.

While selecting an appropriate design may be complicated by this range of options, thecreative researcher actually benefits from this confusing array of options. The numerous com-binations spawned by the abundance of tools may be used to construct alternativeperspectives on the same problem. By creating a research project using diverse methodolo-gies, researchers are able to achieve greater insight than if they adopted the most frequently

research design theblueprint for fulfilling researchobjectives and answeringquestions.

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used method or the method receiving the most attention in the media. Although pursuing re-search on a single research problem from a multimethod, multistudy strategy is not currentlythe norm, such designs are getting increasing attention from marketing researchers and win-ning numerous industry awards for effectiveness. The advantages and disadvantages of sev-eral competing designs should be considered before settling on a final one.

Jason’s preference for MindWriter is to collect as much information as possible from anexploration of company records, interviews with company managers of various depart-ments, and multiple phone surveys with CompleteCare service program users. Financialconstraints, however, might force MindWriter to substitute a less expensive methodology:a self-administered survey in the form of a postcard questionnaire sent to each Complete-Care service program user with his or her returned laptop, followed by phone contact onlywith those who don’t return the postcard.

We discuss identifying and classifying various research designs in Chapter 8, while inChapters 9 through 15 we provide information on specific methodologies.

Sampling DesignAnother step in planning the research project is to identify the target population (those peo-ple, events, or records that have the desired information and can answer the measurementquestions) and then determine whether a sample or a census is desired. Taking a census re-quires that the researcher examine or count all elements in a target population. A sampleexamines a portion of the target population, and the portion must be carefully selected torepresent that population. If sampling is chosen, the researcher must determine which andhow many people to interview, which and how many events to observe, or which and howmany records to inspect. When researchers undertake sampling studies, they are interestedin estimating one or more population values (such as the percent of satisfied service cus-tomers who will buy new MindWriter laptops when the need arises) and/or testing one ormore statistical hypotheses (for example, that highly satisfied CompleteCare service cus-tomers will be far more likely to repurchase the MindWriter brand of laptops).

If a study’s objective is to predict repeat purchase of laptop brands, then the target popu-lation might be defined as all laptop computer owners. In the MindWriter example, given thespeed with which technology changes, terms like laptop would need to be defined. Would

>chapter 4 The Marketing Research Process: An Overview 87

>snapshotGrilled Cheese Sandwiches and the Dairy Fairy

If you were Kraft and discovered that, while sales of sliced cheese

were increasing, your brand’s sales were decreasing, you might

turn to advertising to reverse the slide. But just what would you

say—and how? Faced with this situation, Kraft sent ethnogra-

phers from Strategic Frameworking to talk with moms aged 25 to

64 who were fixing sandwiches in their kitchens. Focus groups

then reinforced that moms feel good about giving their kids cheese

because of its nutritional value. Focus groups also revealed that

even though their kids preferred Kraft slices, a price difference

could persuade moms to purchase a competitive brand. A subse-

quent phone survey by Market Facts revealed moms would buy

the pricier Kraft slices due to extra calcium. Next came TV-com-

mercial tests for two spots featuring the “good-taste-plus-the-

calcium-they-need” message. A spot featuring a straightforward

message didn’t score as high as one featuring kids scarfing down

gooey grilled cheese sandwiches, but the male-voice-delivered

“two-out-of-five-kids-don’t-get-enough-calcium” message gener-

ated guilt, not positive purchase intentions. A revised commercial

featured the cheese-scarfing kids while the Dairy Fairy (an ani-

mated cow) delivered the calcium message. Subsequently, Mill-

ward Brown Group discovered through copy testing research that

the dual message had finally gotten through. The TV commercial

aired, delivering an 11.8 percent increase in sales and a 14.5 per-

cent increase in base volume. Sixty-five percent of the growth in

sales was attributed to the campaign.

www.kraft.com; www.strategicframeworking.com;

www.synovate.com; www.millwardbrown.com;

www.jwt.com

census a count of allelements in a population.

sample a group of cases,participants, events, or recordsconstituting a portion of thetarget population, carefullyselected to represent thatpopulation.

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88 >part I Research in Marketing

handheld and notebook computers be included or excluded? Theresearcher might also want to restrict the study to owners of themajor laptop brands or to owners who reside in certain parts ofthe world. Because the research is designed to predict a popula-tion value from a sample of users, a probability sampling planwould need to be developed.

If a probability sampling design is chosen, the process forchoosing the sample must then give every person within the tar-get population a known nonzero chance of selection. If there is no feasible alternative, anonprobability sampling approach may be used. Jason knows that his target populationcomprises MindWriter customers who have firsthand experience with the CompleteCarelaptop servicing program. Given that a list of CompleteCare program users (a sampleframe) is readily available each month, drawing a probability sample is feasible.

We describe types of samples, sample frames, how samples are drawn, and the determi-nation of sample size in Chapters 16 and 17.

Pilot TestingGiven that thousands of dollars and hundreds of hours can be committed to a research proj-ect, the last step in research design is often a pilot test. The researcher may opt to skip pi-lot testing to condense the project time frame.

A pilot test is conducted to detect weaknesses in research methodology and the data col-lection instrument, as well as to provide proxy data for selection of a probability sample. Itshould, therefore, draw subjects from the target population and simulate the procedures andprotocols that have been designated for data collection. If the study is a survey to be exe-cuted by mail, in the pilot test the questionnaire should be mailed. If the design calls for hu-man observation, then a trained observer should collect the data with the appropriateobservation checklist. The size of the pilot group may range from 25 to 100 subjects, de-pending on the research method to be tested, but the participants do not have to be statisti-cally selected. In very small populations or special applications, pilot testing runs the riskof exhausting the supply of respondents and sensitizing them to the purpose of the study.This risk is generally overshadowed by the improvements made to the design by a trial run.

Pilot testing has saved countless survey studies from disaster by using the suggestionsof the participants to identify and change confusing, awkward, or offensive questions andtechniques. Using pilot testing in an interview study for EducTV, an educational televisionconsortium, a disaster was averted. The pilot test revealed that the wording of nearly two-thirds of the questions was unintelligible to the target group, later found to have a medianeighth-grade education. The revised instrument incorporated the respondents’ own lan-guage and was successful. We discuss one of pilot testing’s most common variations, thepretesting of survey instruments, in Chapter 15 and Appendix 15b.

pilot test trial collection ofdata to detect weaknesses inthe design or instrument andprovide proxy data forprobability sampling.

>picprofileThe Bush and Kerry 2004 presidential campaigns had a potential new research source thanks toMotorola and Rock the Vote. Motorola, a $27.1 billion global company in the wireless, broadband,and automotive communications arenas, partnered with Rock the Vote, a nonprofit, nonpartisan or-ganization designed to engage the youth segment in the political process, to create the Rock theMobile Vote campaign. A significant element of this campaign was the polling of youths on their po-litical awareness, knowledge, and position on political issues like education, war on terrorism, jobcreation, and so on. Biweekly, polling questions were sent to mobile handsets of youths 18 to 30who opted in via the RocktheVote.org Web site to be part of the “Get Loud” aspect of the cam-paign. Approximately 50 percent of 18- to 30-year-olds own mobile handsets. The objective of thecampaign was to drive 20 million youth voters to the polls. Freebees like ring tone and graphicdownloads and contests encouraged participation. www.motorola.com; www.rockthevote.org

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The gathering of data may range from a simple observation at one location to a grandiosesurvey of multinational corporations at sites in different parts of the world. The methodselected will largely determine how the data are collected. Questionnaires, standardizedtests, and observational forms (called checklists) are among the devices used to recordraw data.

But what are data? In the previous chapter, we described the relationship of facts toconclusions. One writer defines data as the facts presented to the researcher from thestudy’s environment. Data may be further characterized by their abstractness, verifiabil-ity, elusiveness, and closeness to the phenomenon.5 First, as abstractions, data are moremetaphorical than real. For example, the growth in GDP cannot be observed directly;only the effects of it may be recorded. Second, data are processed by our senses—oftenlimited in comparison to the senses of other living organisms. When sensory experiencesconsistently produce the same result, our data are said to be trustworthy because theymay be verified. Third, capturing data is elusive, complicated by the speed at whichevents occur and the time-bound nature of observation. Opinions, preferences, and atti-tudes vary from one milieu to another and with the passage of time. For example, duringpresidential elections the incumbent president is often scrutinized and voters’ favorabil-ity ratings are tracked with greater frequency. George W. Bush had the highest ratingsever recorded for a sitting president since Dwight Eisenhower immediately following theterrorist-retaliation bombing of Afghanistan.6 However, as events in Iraq progressed, andas the election campaign year of 2003–2004 got under way and voters began questioningthe advisability of remaining in Iraq, his approval ratings started to fall.7 Finally, data re-flect their truthfulness by closeness to the phenomena. Secondary data (data originallycollected to address a problem other than the one that requires the manager’s attention atthe moment) have had at least one level of interpretation inserted between the event andits use for marketing decision making. Primary data (data the manager collects to ad-dress the specific problem at hand—the research question) are sought for their proximityto the truth and control over error. These cautions remind us to use care in designing datacollection procedures and generalizing from results. We use a summary definition fordata as information collected from participants, by observation, or from secondarysources.

Data are edited to ensure consis-tency across respondents and to locateomissions. In the case of a survey, edit-ing reduces errors in the recording, im-proves legibility, and clarifies unclearand inappropriate responses. Editeddata are then put into a form that makesanalysis possible. Because it is imprac-tical to place raw data into a report, al-phanumeric codes are used to reducethe responses to a more manageablesystem for processing and storage. Thecodes follow various decision rules thatthe researcher has devised to assist withsorting, tabulating, and analyzing. Per-sonal computers have made it possibleto merge editing, coding, and data entryinto fewer steps even when the finalanalysis may be run on a larger system.We address data collection in detail inPart III.

>chapter 4 The Marketing Research Process: An Overview 89

> Stage 4: Data Collection and Preparation

secondary data dataoriginally collected to address aproblem other than the onethat requires the manager’sattention at the moment.

primary data data theresearcher collects to addressthe specific problem at hand—the research question.

data information collectedfrom participants, byobservation, or from secondarysources.

A focus group is one datacollection metholology. Thisgroup interview generatesprimary data.

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90 >part I Research in Marketing

>snapshotTaking the Mystery Out of Mystery Shopping

When a retail salesperson receives a visit from a mystery shop-

per, it’s all about processes. Amy Davidoff, president of Mar-

ketVoice Consulting, designs a mystery shopping study by

starting with a clear understanding of the client’s process priori-

ties. Then she partners with the client to develop a shopper form,

the detailed checklist of observations that will be recorded, as

well as plenty of space for extensive written comments about the

experience in general and for all items that received scores be-

low a pre-specified level. While a shopper might target a partic-

ular sales associate within a retail environment—based, for

example, on an accumulation of consumer complaints—more

often a retail manager contracts for periodic shoppings over a

specified time. “For one food and entertainment facility,” shares

Davidoff, “the shop form was 14 pages, covering a 2-hour shop-

ping experience. (A more typical shop form is 5 to 7 pages.) The

shop started when the shopper entered the door, included food

purchases at two different locations within the facility, restroom

checks, specific types of interactions with the facility staff and

merchandise purchases.” During the shop, the researcher will

determine if dozens of processes took place and at what level

each was performed against specification. In the overall evalua-

tion, the shop can add weight to more critical processes—those

that contribute most to the customer experience and enhance

customer loyalty. Taking multiple measures over time reveals

weaknesses in training, flaws in operations and sales processes,

and the occasional employee theft. “And if it’s done correctly,”

claims Davidoff, “the sales associate may never know they par-

ticipated in marketing research.”

Mystery shopping takes place in many different arenas in-

cluding stores, restaurants, and catalog operations. College stu-

dents are often employed as mystery shoppers.

Managers need information and insights, not raw data, to make appropriate marketing de-cisions. Researchers generate information and insights by analyzing data after their collec-tion. Data analysis usually involves reducing accumulated data to a manageable size,developing summaries, looking for patterns, and applying statistical techniques. Re-searchers then interpret their findings in light of the manager’s research question or deter-mine if the results are consistent with their hypotheses and theories. Increasingly, managersare asking research specialists to make recommendations based on their interpretation ofthe data. We address data analysis and interpretation in Chapters 18 to 22.

A modest example involves a market research firm that polls 2,000 people from its tar-get population for a new generation of wallet-sized portable telephones. Each respondentwill be asked four questions:

1. “Do you prefer the convenience of Pocket-Phone over existing cellulartelephones?”

2. “Are there transmission problems with Pocket-Phone?”

3. “Is Pocket-Phone better suited to worldwide transmission than your existing cellu-lar phone?”

4. “Would cost alone persuade you to purchase Pocket-Phone?”

The answers will produce 8,000 (2,000 � 4) pieces of raw data. Reducing the data to aworkable size will yield eight statistics: the percentages of yes and no answers to eachquestion. When the researcher adds a half-dozen demographic questions about the partici-pants, the total amount of data easily triples. If the researcher scaled the four key questions(asking the participants to provide a number from 1 to 5 for each question) rather than elic-iting yes-no responses, the analysis would likely require more powerful statistical analysisthan summarization.

data analysis editing,reducing, summarizing, lookingfor patterns, and applyingstatistical techniques to data.

> Stage 5: Data Analysis and Interpretation

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Finally, it is necessary to prepare a report and transmit the findings, insights, and recommen-dations to the manager for the intended purpose of decision making. The researcher adjuststhe style and organization of the report according to the target audience, the occasion, and thepurpose of the research. As a result, most marketing researchers emphasize the need to makethe research report manager-friendly, avoiding technical jargon. The results of applied re-search may be communicated via conference call, letter, written report, oral presentation, We-bcast, or some combination of any or all of these methods. Reports should be developed fromthe manager’s or information user’s perspective. The sophistication of the research design andsampling plan or the software used to analyze the data may help to establish the researcher’scredibility, but in the end the manager’s foremost concern is solving the managementdilemma. Thus, the researcher must accurately assess the manager’s needs throughout the re-search process and incorporate this understanding into the final product, the research report.

The management decision maker occasionally shelves the research report without tak-ing action. Inferior communication of results is a primary reason for this outcome. Withthis possibility in mind, a research supplier should strive for:

• Insightful adaptation of the information to the client’s needs.

• Careful choice of words in crafting interpretations, conclusions, and recommendations.

Especially when research is contracted to an outside supplier, managers and researchers in-creasingly collaborate to develop appropriate reporting of project results and information.

Occasionally, organizational and environmental forces beyond the researcher’s controlargue against the implementation of results. Such was the case in a study conducted for theAssociation of American Publishers, which needed an ad campaign to encourage people toread more books. The research project, costing $125,000, found that only 13 percent ofAmericans buy general-interest books in stores. When the time came to commit $14 mil-lion to the campaign to raise book sales, the membership’s interest had faded and the proj-ect died.8 We cover the research report in Chapter 23.

At a minimum, a research report should contain the following:

• An executive summary consisting of a synopsis of the problem, findings, and recom-mendations.

• An overview of the research: the problem’s background, a summary of exploratoryfindings drawn from secondary data sources, the actual research design and proce-dures, and conclusions.

• A section on implementation strategies for the recommendations.

• A technical appendix with all the materials necessary to replicate the project.

>chapter 4 The Marketing Research Process: An Overview 91

> Research Process ProblemsAlthough it is desirable for research to be thoroughly grounded in management decisionpriorities, studies can wander off target or be less effective than they should be. As researchprogresses through its various stages, the researcher needs to remain objective.

The Favored-Technique SyndromeSome researchers are method-bound. They recast the management question so it is amenableto their favorite methodology—a survey, for example. Others might prefer to emphasize thecase study, while still others wouldn’t consider either approach. Not all researchers are com-fortable with experimental designs. Due to their wide range of experience and educational

> It is the role of themanager sponsoringthe research to spot an inappropriate-technique-drivenresearch proposal.

> Stage 6: Reporting the Results

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training, researchers are rarely well versed in every possible methodology. Out of a need forcontrol or comfort, some will rely only on methods with which they have experience.

Persons knowledgeable about and skilled in some techniques but not in others may beblinded by their special competencies. Their concern for technique dominates the decisionsconcerning what will be studied (both investigative and measurement questions) and how (re-search design). The availability of technique is an important factor in determining how re-search will be done or whether a given study can be done. The marketing decision makersponsoring the research should be wary of inappropriate-technique-driven research proposals.We discuss research techniques and when each is appropriate in Chapters 9 through 17.

In the MindWriter research, for example, numerous, standardized customer satisfactionquestionnaires are available to researchers. Jason may have done studies using these in-struments for any number of his clients. Myra should be cautious. She must not let Jasonencourage her acceptance of an instrument he has developed for another client, eventhough he might be very persuasive about its success in the past. Such a technique mightnot be appropriate for MindWriter’s search to resolve postpurchase service dissatisfaction.

Company Database Strip-MiningThe existence of a pool of information or a database can distract a manager, seemingly re-ducing the need for other research. As evidence of the research-as-expense-not-investmentmentality mentioned in Chapter 1, managers frequently hear from superiors, “We should usethe information we already have before collecting more.” Modern marketing informationsystems are capable of providing massive volumes of data. This is not the same as sayingmodern marketing information systems provide substantial knowledge or decision-makinginsights.

Each field in a database was originally created for a specific reason, a reason that may ormay not be compatible with the management question facing the organization. The Mind-Writer service department’s database, for example, probably contains several fields about thetype of problem, the location of the problem, the remedy used to correct the problem, and soforth. Jason and Myra can accumulate facts concerning the service, and they can match eachservice problem with a particular MindWriter model and production sequence (from a pro-duction database), and, using yet another database (generated from warranty registration),they can match each problem to a name and address of an owner. But, having done all that,they still aren’t likely to know how a particular owner uses his or her laptop or how satisfiedan owner was with MindWriter’s postpurchase service policies and practices.

Mining marketing information databases is fashionable, and all types of organizationsincreasingly value the ability to extract meaningful information. While such data mining isoften a starting point in decision-based research, rarely will this activity answer all man-agement questions related to a particular management dilemma. In this text, we emphasizeresearch projects that tend to be nonroutine, nonrecurring, and complex, rather than thosethat rely solely on database management.

Unresearchable QuestionsNot all management questions are researchable, and not all research questions are answer-able. To be researchable, a question must be one for which observation or other data col-lection can provide the answer. Many questions cannot be answered on the basis ofinformation alone.

Unresearchable questions include those for which past experience of the researcher orexperience of the greater research industry has revealed that the information does not existor cannot be gathered. An example is a study in which purchase information dating back 30or more years is needed and no such records exist. It is unrealistic to assume purchasers canrecall purchase behavior that long ago with sufficient accuracy or in sufficient detail to beuseful.

92 >part I Research in Marketing

> We discussed decisionsupport systems inChapter 2.

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>chapter 4 The Marketing Research Process: An Overview 93

Just as human memory can be faulty, when we seek motivations from participants, wemay run into unresearchable questions. Sometimes customers and other participants sim-ply don’t know why they do what they do.

Questions of value and policy often must be weighed in management decisions. The mul-tiple facets of the deliberations make many such questions unresearchable. During the earlyand mid-1980s several product-tampering incidents of over-the-counter drug products re-sulted in deaths. Asking “Should products be withdrawn if even one death is associated withits prescribed use, even if no fault for the tampered product accrues to the manufacturer?”might qualify as an unresearchable question. While information can be brought to bear on thisquestion, such additional considerations as “safety to society” or “fairness to stockholders” or“an appropriate response to terrorist activity” may be important value debates that add to thedecision. While we might be able to estimate a company’s reputation or standing among itsstakeholders in a similar hypothetical situation, only after the fact could we determine whatpeople really felt about a company that was not responsive. When the managers responsiblefor Tylenol faced such a question, even though they had feedback within 24 hours of the firstreported death, it was impossible to predict people’s reaction to a second death until it was re-ported. Johnson & Johnson’s decision to replace Tylenol capsules with solid Tylenol capletsultimately was based on senior-level debate of such issues, not on direction provided by re-search that indicated that the public did not hold the manufacturer responsible for the dealths.9

Even if a question can be answered by facts alone, it might not be researchable becausecurrently accepted and tested procedures or techniques are inadequate. The development ofnew techniques and methodologies is often the result of researchers’ frustration with unre-searchable problems. Such problems become the motivation for innovation in methodology.

Ill-Defined Management ProblemsSome categories of problems are so complex, value-laden, and bound by constraints thatthey prove to be intractable to traditional forms of analysis. These questions have charac-teristics that are virtually the opposite of those of well-defined problems. Solving well-defined problems involves navigating from a starting point to the solution using naturaltransitions in the problem sequence to shift from one problem state to another. An ill-defined problem is one that addresses complex issues and cannot be expressed easily, con-cisely, or completely. Ill-defined problems pose a dilemma for researchers because asolution sequence cannot be plotted if little is understood about the path or the final out-come. Certain complex puzzles (see reference note 10) illustrate ill-defined problems whenthe components of their problem sequences are not fully specified, the problem descriptionlacks concreteness, and the goal cannot be visualized.10

Ill-defined research questions in marketing are least susceptible to attack from quantita-tive research methods because such problems have too many interrelated facets for mea-surement to handle with accuracy.11 Moreover, there are some research questions of thistype for which methods do not presently exist; even if the methods were to be invented,they still might not provide the data necessary to solve them.12 Novice researchers shouldavoid ill-defined problems. Even seasoned researchers will want to conduct a thorough ex-ploratory study before proceeding with the latest approaches.

Politically Motivated ResearchIt is important to remember that a manager’s motivations for seeking research are not al-ways obvious. Managers might express a genuine need for specific information on whichto base a decision. This is the ideal scenario for quality research. Sometimes, however, a re-search study may not really be desirable but is authorized anyway, chiefly because its pres-ence may win approval for a certain manager’s pet idea. At other times, research may beauthorized as a measure of personal protection for a decision maker in case he or she is crit-icized later. In these less-than-ideal cases, the researcher may find it more difficult to winthe manager’s support for an appropriate research design.

ill-defined problem onethat addresses complex issuesand cannot be expressedeasily or completely.

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>keyterms

census 87

data 89

primary data 89

secondary data 89

data analysis 90

decision rule 85

decision variable 85

ill-defined problem 93

investigative questions 83

management dilemma 80

management question 82

management-research questionhierarchy 80

measurement questions 83

pilot test 88

research design 86

research process 78

research question(s) 82

sample 87

1 Research originates in the decision process. A managerneeds specific information for setting objectives, definingtasks, finding the best strategy by which to carry outthe tasks, or judging how well the strategy is beingimplemented.

A dilemma-centered emphasis—the problem’s origin,selection, statement, exploration, and refinement—domi-nates the sequence of the research process. A decision todo research can be inappropriately driven by the availabilityof coveted tools and databases. To be researchable, a prob-lem must be subject to observation or other forms of empiri-cal data collection.

2 How one structures the research question sets the directionfor the project. A management problem or opportunity canbe formulated as a hierarchical sequence of questions. Atthe most general level is the management dilemma. This istranslated into a management question and then into a re-search question—the major objective of the study. In turn,the research question is further expanded into investigativequestions. These questions represent the various facets ofthe problem to be solved, and they influence research de-sign, including design strategy, data collection planning, andsampling. At the most specific level are measurement ques-tions that are answered by respondents in a survey or an-swered about each subject in an observational study.

Exploration of the problem is accomplished through fa-miliarization with the available literature, interviews with ex-perts, focus groups, or some combination. Revision of themanagement or research questions is a desirable outcomeof exploration and enhances the researcher’s understandingof the options available for developing a successful design.

3 Budgets and value assessments determine whether mostprojects receive necessary funding. Their thorough docu-

mentation is an integral part of the research proposal.Proposals are required for many research projects andshould, at a minimum, describe the research question andthe specific task the research will undertake.

4 Decisions concerning the type of study, the means of datacollection, measurement, and sampling plans must be madewhen planning the design. Most researchers undertake sam-pling studies because of an interest in estimating populationvalues or testing a statistical hypothesis. Carefully con-structed delimitations are essential for specifying an appro-priate probability sample. Nonprobability samples are alsoused.

Pilot tests are conducted to detect weaknesses in thestudy’s design, data collection instruments, and procedures.Once the researcher is satisfied that the plan is sound, datacollection begins. Data are collected, edited, coded, andprepared for analysis.

Data analysis involves reduction, summarization, patternexamination, and the statistical evaluation of hypotheses.A written report describing the study’s findings is used totransmit the results and recommendations to the intendeddecision maker. By cycling the conclusions back into theoriginal problem, a new research iteration may begin, andfindings may be applied.

5 Several research process problems can diminish the value ofresearch. Included in these are using a technique that is in-appropriate for the information needed, just because it is fa-miliar or the researcher has experience with it; attempting tosubstitute data mining for marketing research; focusing onan unresearchable question; failing to correctly define themanagement problem; and conducting politically motivatedrather than management dilemma–motivated research.

>summary

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Terms in Review1 Some questions are answerable by research and others are

not. Using some management problems of your choosing,distinguish between them.

2 Discuss the problems of trading off exploration and pilottesting under tight budgetary constraints. What are the im-mediate and long-term effects?

3 A retailer is experiencing a poor inventory management situ-ation and receives alternative research proposals. Proposal 1is to use an audit of last year’s transactions as a basis forrecommendations. Proposal 2 is to study and recommendchanges to the procedures and systems used by the ship-ping/receiving department. Discuss issues of evaluation interms of:

a Ex post facto versus prior evaluation.

b Evaluation using option analysis and decision theory.

Making Research Decisions4 Believing that every employee contributes to marketing in an

organization, the president of Oaks International Inc., whenconfronted by low productivity and rising customer com-plaints, is convinced by a research supplier to study job sat-isfaction in the corporation. What are some of the importantreasons that this research project may fail to make an ade-quate contribution to the solution of management problems?

5 Based on an analysis of the last six months’ sales, your bossnotices that sales of beef products are declining in yourchain’s restaurants. As beef entrèe sales decline, so do prof-its. Fearing beef sales have declined due to several newspa-per stories reporting E. coli contamination discovered at areagrocery stores, he suggests a survey of area restaurants tosee if the situation is pervasive.

a What do you think of this research suggestion?

b How, if at all, could you improve on your boss’s formula-tion of the research question?

Behind the Scenes6 What are the benefits to MindWriter if they implement the

pilot study Jason recommends?

7 How can MindWriter’s existing database be used toaccumulate service problem information in advance ofthe proposed research? What information should besought?

From Concept to Practice8 Using Exhibit 4-1 and case examples from marketing firm’s

Web sites, discover how “favored technique” approaches toresearch design dominate many firms’ strategies.

9 Refer to stage in Exhibit 4-1, then find a research examplewhere a clear statement of the management dilemma leadsto a precise and actionable research question.

>wwwexercise

Learn more about business intelligence from industry leader MicroStrategy. Visit its Web site and participate in a free Web seminar ona current case study. (http://www.microstrategy.com/events/online_seminars/index.asp)

>cases*

Calling Up Attendance

Donatos: Finding the New Pizza

Goodyear’s Aquatred

Inquiring Minds Want to Know—Now!

KNSD, San Diego

Mastering Teacher Leadership

NCRCC: Teeing Up a New Strategic Direction

Outboard Marine Corporation

Ramada Demonstrates Its Personal Best§™

State Farm: Dangerous Intersections

* All cases, both written and video, are on the text DVD. The film icon indicates a video case. Check the DVD Index to determinewhether a case has data, the research instrument, or other supplementary material.

>discussionquestions

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