Business Research Module 2

Overview of the Research Process

A set of six steps that defines the tasks to be accomplished in conducting a marketing research study. It includes;
1. Problem Definition 2. Development of an Approach to the Problem 3. Research Design Formulation 4. Field Work or Data Collection 5. Data Preparation and Analysis 6. Report Preparation and Presentation

The Marketing Research Process

Step 1. Problem Definition: The first step is to define the problem, focus on the the purpose and information of the study. It involves discussion with the decision makers, interviews with the industry experts, analysis of the secondary data, and focus groups. Once the problem is defined precisely defined, the research can be designed and condusted properly.

The Marketing Research Process

Step 2. Development of an Approach to the Problem. It includes formulating an objective or a theoretical framework, analytical models, research questions, hypoteheses and identifying the information needed. It also includes discussions with management and industry experts, analysis of the secondary data, qualitative research and pragmatic considerations.

The Marketing Research Process

Step 3. Research Design Formulation: It is a blueprint or a framework for conducting the marketing research project It details the procedures for obtaining the required information Its purpose is to design a study that will test the hypotheses, determine possible answers and provide information needed for decision making. It also clears how the data should be obtained form the respondents.

Formulating the Research Design involves the following steps:

Definition of the information needed Secondary data analysis Qualitative research Method of collecting qualitative data Measurement and scaling procedures Questionnaire design Sampling process and sample size Plan of data analysis

The Marketing Research Process

Step 4. Fieldwork or Data Collection: Data collection involves a field force or staff that operates either in the field, as in the case of personal interview, by telephone, through mail etc. Proper selection training, supervision and evaluation of the field force halp minimize data collection errors.

The Marketing Research Process

Step 5. Data Preparation and Analysis: Data preparation includes editing, coding, transcription, and verification of data. Each of the observations or questionnaires are inspected, edited, and corrected if necessary. The data from the questionnaire & observation is transferred to the computer for data analysis The data is analyzed to derive information related to the marketing research

The Marketing Research Process

Step 6: Report Preparation and Presentation: The entire project is documented into a written report that addresses the specific marketing problem It describes the approach, the research design, the data collection, data analysis and the procedures adopted, and thus the results and major findings. The findings should be presented in a comprehensible format so that the management can readely use it for decision making process. An oral presentation has to be made to the management using tables figures, graphs to enhance clarity and impact.

Problem Formulation
A problem well defined is a problem half solved!

Failure to properly identify where you are headed and why will inevitably lead you to wonder where you are and how you got there!

Management Problems vs. Research Problems

Most marketing research problems manifest
themselves as Management Decision Problems Situation arises, management needs to make a decision, requires research, starts the research process No actionable guidance Simply a statement of the issue that management is dealing with Must restatement in research terms.

Management Problems vs. Research Problems

Marketing Research Problem: a statement of the information needed by a decision maker to help solve a management decision problem. Most critical part of the mktg. research process Provides guidance and direction for research process

Tips for Accurately Defining Research Problems

Find out why the information is being sought. Determine whether the information already exists. Determine whether the question really can/should be answered. Use exploratory research to define background of the problem

Determine relevant variables

Situation analysis The iceberg principle

Definition of Research Objectives

Marketing Research Objectives: the specific bits of knowledge that need to be gathered to close the information gaps highlighted in the research problem. Stated in action terms Serve as a standard to evaluate the quality and value of the research Objectives should be specific and unambiguous Examples: To measure the number of college freshmen at the VTU To assess viewer recall of our ad campaign To describe the segments of the marketplace

Putting It All Together

Management Problem Placement office has noticed, while major companies make annual recruiting visits to campus for engineers, not many national or local companies are formally recruiting business majors through the placement office Why? How do we address this? Marketing Research Problems Why are companies not taking advantage of the resources that the placement service offers? Are companies going around the service? Are companies aware of the VTU placement service? Are companies aware of the reputation of the VTU Business School? What kind of things might generate more recruiting activity? Marketing Research Objectives To determine to what extent companies are aware of the VTU placement service Determine whether companies, especially locals, are aware of the strong reputation of the VTU To determine whether a quarterly newsletter highlighting VTU business programs and students might generate more recruiting activity.

Another Example

Management Problem What price should we charge for our new product? Research Problem What are our costs of production and marketing (COGS)? What are our pricing objectives and position in the market? What price does similar types of products sell for? What is the perceived value of our product in the marketplace? Are there any norms or conventional practices in the marketplace (e.g., customary prices, continual discounting) Research Objectives To assess the costs involved in producing and selling our product To determine corporate objectives and their implications for pricing To examine current prices for direct and indirect competition To determine potential customer reaction to various prices and their perception of the benefits of owning the product

Practice, Practice
For the following management problems,
identify the underlying research problems and a couple of research objectives. Should our retail chain offer online shopping? What advertising media should we use to reach our market? How do we get more people to attend our outdoor festival/event? Should we build a new warehouse to store our excess inventory?

Practice, Practice (contd)

For the following management problems,
identify the underlying research problems and a couple of research objectives. How can we increase customer retention? Should the amount of in-store promotion for an existing product line be increased? Should the compensation package be changed to better motivate the sales force?

Problem Discovery and Definition

Problem discovery
Sampling

Selection of exploratory research technique

Selection of exploratory research technique

Probability

No probability

Secondary (historical) data

Experience survey

Pilot study

Case study

Data Gathering Data Processing and Analysis

Collection of data (fieldwork) Editing and coding data Data processing

Problem definition (statement of research objectives)

Research Design

Selection of basic research method

Conclusions and Report

Interpretation of findings

Experiment
Laboratory Field Interview

Survey
Questionnaire

Observation

Secondary Data Study

Report

Uncertainty Influences the Type of Research

CAUSAL OR DESCRIPTIVE

COMPLETELY CERTAIN

ABSOLUTE AMBIGUITY

EXPLORATORY

Problem Discovery and Definition

First step Problem, opportunity, or monitor operations Discovery before definition Problem means management problem

The formulation of the problem is often more essential than its solution.

Problem Definition
The indication of a specific business decision area that will be clarified by answering some research questions. It should interest the researcher It should be researchable It must have uniqueness / novelty It must be feasible Social relevance
Problem definition allows a researcher to set the proper research objectives.

The Process of Problem Definition

Ascertain the decision makers objectives Determine unit of analysis

Understand background of the problem

Determine relevant variables

Isolate/identify the problem, not the symptoms

State research questions and objectives

1.Ascertain the Decision Makers Objectives

Decision makers objectives Managerial goals expressed in measurable terms.

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The Iceberg Principle

The principle indicating that the dangerous part of many business problems is neither visible to nor understood by managers.

2.Understand the Background of the Problem

Exercising judgment Situation analysis - The informal gathering of background information to familiarize researchers or managers with the decision area.

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3. Isolate and Identify the Problems, Not the Symptoms

Symptoms can be confusing

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4.Determine the Unit of Analysis

Individuals, households, Entire organizations, Departments, Groups etc. In many studies, the family rather than the individual is the appropriate unit of analysis.

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5.Determine the Relevant Variable (

change in value)

Anything that may assume different numerical values A Variables is defined as anything that varies or changes in value, because variable represents a quality that can exhibit differences in value or strength

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Hypothesis
An unproven proposition A possible solution to a problem Guess

6.State the research questions and research objectives

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Broad research objectives

Statement of business problem

Exploratory research (optional)

Specific Objective 1

Specific Objective 2

Specific Objective 3

Research Design

Results

Research Proposal
A written statement of the research design that includes a statement explaining the purpose of the study Detailed outline of procedures associated with a particular methodology

Basic Questions Problem Definition

What is the purpose of the study? How much is already known? Is additional background information
necessary? What is to be measured? How? Can the data be made available? Should research be conducted? Can a hypothesis be formulated?

Basic Questions Basic Research Design

What types of questions need to be answered? Are descriptive or causal findings required? What is the source of the data?

Basic Questions Basic Research Design

Can objective answers be obtained by asking people? How quickly is the information needed? How should survey questions be worded? How should experimental manipulations be made?

Basic Questions Selection of Sample

Who or what is the source of the data? Can the target population be identified? Is a sample necessary? How accurate must the sample be? Is a probability sample necessary? Is a national sample necessary? How large a sample is necessary? How will the sample be selected?

Basic Questions Data Gathering

Who will gather the data? How long will data gathering take? How much supervision is needed? What operational procedures need to be followed?

Basic Questions Data Analysis

Will standardized editing and coding
procedures be used? How will the data be categorized? What statistical software will be used? What is the nature of the data? What questions need to be answered? How many variables are to be investigated simultaneously? Performance criteria for evaluation?

Basic Questions Type of Report

Who will read the report? Are managerial recommendations requested? How many presentations are required? What will be the format of the written report?

Basic Questions Overall Evaluation

How much will the study cost? Is the time frame acceptable? Is outside help needed? Will this research design attain the stated research objectives? When should the research be scheduled to begin?

Anticipating Outcomes
Dummy tables Representations of the actual tables that will be in the findings section of the final report; used to gain a better understanding of what the actual outcomes of the research will be.