The Problem Definition Process

DiscussionwithDecision Maker(s)

Interviewswith Experts

SecondaryData Analysis

QualitativeResearch

Management Decision Problem

Marketing Research Problem

Tasks Involved

Environmental Context of the Problem

Step I: Problem Definition

Step II: Approach to the Problem

Objective/TheoreticalFoundations

ResearchQuestions

Hypotheses

Step III: Research Design

Analytical

Model: Verbal,

Graphical,

Mathematical

Specification

of

Information

Needed

Factors to be Considered in theEnvironmental Context of the Problem

PAST INFORMATION AND FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES

BUYER BEHAVIOR

LEGAL ENVIROMENT

ECONOMIC ENVIROMENT

MARKETING AND TECHNOLOGICAL SKILLS

Management Decision Problem Vs. Marketing Research Problem

Management Decision Problem Marketing Research Problem

Should a new product be To determine consumer preferences

introduced? and purchase intentions for the

proposed new product.

Should the advertising To determine the effectiveness

campaign be changed? of the current advertising

campaign.

Should the price of the To determine the price elasticity

brand be increased? of demand and the impact on sales

and profits of various levels of price changes.

Proper Definition of the Research Problem

Marketing Research Problem

Broad Statement

Specific Components

ExampleProblem Definition

In a store project, the marketing research problem is to determine the relative strengths and weaknesses of X, vis--vis other major competitors, with respect to factors that influence store patronage. Specifically, research should provide information on the following questions.

1. What criteria do households use when selecting department stores?

2. How do households evaluate X and competing stores in terms of the choice criteria identified in question 1?

3. Which stores are patronized when shopping for specific product categories?

4. What is the market share of X and its competitors for specific product categories?

5. What is the demographic and psychological profile of the customers of X? Does it differ from the profile of customers of competing stores?

6. Can store patronage and preference be explained in terms of store evaluations and customer characteristics?

Development of Research Questions and Hypotheses

Components of the

Research Questions

Hypotheses

Objective/TheoreticalFramework

AnalyticalModel

Marketing Research Problem

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.

Example.

RQ: Do the customers of X exhibit store loyalty?

H1: Customers who are store loyal are less knowledgeable about the shopping environment.

H2: Store-loyal customers are more risk-averse than are non-loyal customers.

Example

Specification of Information Needed

1. The researcher identified the following factors as part of the choice criteria: quality of merchandise, variety and assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, credit and billing policies. The respondents should be asked to rate the importance of each factor as it influences their store selection.

2. The researcher identified nine department stores as competitors based on discussions with management. The respondents should be asked to evaluate X and its competitors on the eight choice criteria factors.

3. Sixteen different product categories were selected, including women's dresses, women's sportswear, lingerie and body fashion, junior merchandise, men's apparel, cosmetics, jewelry, shoes, sheets and towels, furniture and bedding, and draperies. The respondents should be asked whether they shop at each of the ten stores for each of the 16 product categories.

5. Information should be obtained on the standard demographic characteristics and the psychographic characteristics of store loyalty, credit use, appearance consciousness, and combining shopping with eating.

1.What criteria do households use when selecting department stores?2.How do households evaluate X and competing stores in terms of the choice criteria identified in question 1?3.Which stores are patronized when shopping for specific product categories?4.What is the market share of X and its competitors for specific product categories?5.What is the demographic and psychological profile of the customers of X? Does it differ from the profile of customers of competing stores?6.Can store patronage and preference be explained in terms of store evaluations and customer characteristics?

Surrogate Information Error

Measurement Error

Population Definition Error

Sampling Frame Error

Data Analysis Error

Respondent Selection Error

Questioning Error

Recording Error

Cheating Error

Inability Error

Unwillingness Error

Total Error

Non-sampling

Error

Random

Sampling Error

Non-response

Error

Response

Error

Interviewer

Error

Respondent

Error

Researcher

Error

rrors

Criteria for Evaluating Secondary Data

Criteria Issues Remarks

Specifications & Methodology

Error & Accuracy

Currency

Objective

Nature

Dependability

Data collection method, response rate, quality & analysis of data, sampling technique & size, questionnaire design, fieldwork.Examine errors in approach,research design, sampling, datacollection & analysis, & reporting.

Time lag between collection &publication, frequency of updates.Why were the data collected?

Definition of key variables, units of measurement, categories used, relationships examined.Expertise, credibility, reputation, & trustworthiness of the source.

Data should be reliable, valid, & generalizable to the problem.

Assess accuracy by comparing data from different sources.

Census data are updated by syndicated firms.The objective determines the relevance of data.Reconfigure the data to increase their usefulness.

Data should be obtained from an original source.

A Classification of Survey Methods

Traditional Telephone

Computer-Assisted Telephone Interviewing

Mail Interview

Mail Panel

In-Home Mall Intercept

Computer-Assisted Personal

Interviewing

E-mail Internet

Survey Methods

Telephone Personal Mail Electronic

Criteria Phone/

CATI

In-Home

Interviews

Mall-

Intercept

InterviewsCAPI

Mail

Surveys

Mail

Panels E-Mail Internet

Flexibility of data

collection

Moderate

to high

High High Moderate

to high

Low Low Low Moderate

to high

Diversity of questions Low High High High Moderate Moderate Moderate Moderate

to high

Use of physical stimuli Low Moderate

to high

High High Moderate Moderate Low Moderate

Sample control Moderate

to high

Potentially

high

Moderate Moderate Low Moderate

to high

Low Low to

moderate

Control of data collection

environment

Moderate Moderate

to high

High High Low Low Low Low

Control of field force Moderate Low Moderate Moderate High High High High

Quantity of data Low High Moderate Moderate Moderate High Moderate Moderate

Response rate Moderate High High High Low Moderate Low Very

Low

Perceived anonymity of

the respondent

Moderate Low Low Low High High Moderate High

Social desirability Moderate High High Moderate

to High

Low Low Moderate Low

Obtaining sensitive

information

High Low Low Low to

moderate

High Moderate

to High

Moderate High

Potential for interviewer

bias

Moderate High High Low None None None None

Speed High Moderate Moderate

to high

Moderate

to high

Low Low to

moderate

High Very

high

Cost Moderate High Moderate

to high

Moderate

to high

Low Low to

moderate

Low Low

A Comparative Evaluation of Survey Methods