Marketing Research Design: A Case Study of Extreme Rock

Climbing Centre

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Table of Contents
Management Decision Problem.................................................................................................3

Rationale of Management Decision Problem........................................................................3

Marketing Research Question....................................................................................................3

Research Objectives...............................................................................................................4

Research Methodology...............................................................................................................4

Selected Quantitative Method................................................................................................5

Questionnaire Survey Application.....................................................................................5

Sampling and Data Collection for Survey.........................................................................6

Selected Qualitative Method..................................................................................................6

Focus Group Application...................................................................................................7

Sample of Data Collection Tool.................................................................................................7

Research Limitations..................................................................................................................8

Part B........................................................................................................................................10

Independent-samples t-test...................................................................................................10

ANOVA...............................................................................................................................10

Correlation matrix................................................................................................................11

References................................................................................................................................12

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Management Decision Problem Question
Management decision problem for Kyle Anderson is related to competing with a new player
in the rock climbing facility in his area of operations, “The Krag”. Therefore the problem
question can be stated as “What should be done in context of service packages offered by
Extreme Rock Climbing Centre to ensure that they do not lose customers to competition”

Rationale for Management Decision Problem

Monopoly in an industry causes a business and its employees to lose motivation for growth
(Twomey & Neuhoff, 2010). Extreme Rock Climbing Centre, owned by a former athlete
Kyle, has already harnessed benefits of its existence in the market for five years, in terms of
no competitor in same locale. There was no significant need for customer retention strategies
until ‘The Krag’ aims to launch a venture with competitive products and services to offer, in
upcoming months for Sacramento, California population. But with a competitor in the
market, there is need to understand what steps need to be taken to attract and retain clients.

With threat of new entrant in the market, Extreme Rock Climbing Centre needs to understand
its clients and changing trends of the market in greater detail. Hence, a marketing research in
existing market is required to evaluate the expected customer retention and to determine the
changes in existing settings and services. Extreme Rock Climbing Centre, has a very defined
set of services and the existing price for annual membership is not competitive to that of The
Krag. The discussion with a marketing professional, not a staff member but one of the
customers, has shown that Extreme Exposure has never collected feedback and reviews from
existing customers. A business can compete and gain a competitive edge by improving or
innovating already offered services, by expanding target market and by offering competitive
prices (López et al., 2011). Therefore the management decision problem question is justified
in view of this information.

Marketing Research Question (MRQ)

Considering the current market situation for Extreme Rock Climbing Centre, it can be
inferred that a customer satisfaction evaluation is required to be conducted. On similar notes,
another aspect to be assessed is customers’ expectations and new emerging trends in current
market. Therefore, the marketing question for this research is related to the existing market

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trends in climbing business and the response of existing and potential clients of Extreme
Rock Climbing Centre.

MRQ - What is the current customer satisfaction and what are influential factors for
future decision making behaviours of these clients?

Rationale for Marketing Research Question

As Bryman & Bell (2015) have suggested, adding value in existing services can be used as a
measure to retain existing customers. In case of Extreme Rock Climbing Centre existing
customers has not considered while marketing and business decisions because of the market
domination. Existing customers’ satisfaction from the offered services is crucial for customer
retaining and creating loyalty (Hawkins, Best and Coney, 2010). Hawkins, Best and Coney
(2010) have also mentioned that satisfied customers stay with a brand in rough economic
conditions and occasionally compromise on quality as well. Loyal customers can be
effectively used as competitive edge, while planning competition strategies. For attaining a
trustful position with customers, businesses need to develop more engaging and interactive
relations (Jaakkola & Alexander, 2014). The aimed market research is focused on attaining
customer feedback, to evaluate the expected/required services and products and to gain
insight of existing customers’ future decisional behaviours. The results of research are going
to provide support for deciding competitive strategies for Extreme Rock Climbing Centre.
The research question is dedicated to customers exclusively so the results are going to
directly influence the customer relations management and competitive decision making.

Research Objectives
Considering above discussed research questions and details given in case study, following
research objectives are identified

 To measure customer satisfaction level of the Extreme Rock Climbing Centre in terms
of price and service

 To assess the potential customer behaviours and expectations from Extreme Rock
Climbing Centre

Research Methodology
Research questions identified for examining market situation for Extreme Rock Climbing
Centre are seeking to explore the customer behaviours and their characteristic responses
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towards the upcoming market situation. As Zikmund et al. (2013) have mentioned that
individual behaviours and the relationships between their experiences and resulting
behaviours can be better studied via qualitative approach. Quantitative research methods are
applied to evaluate the exact significance of the relationships and to get distinctive results for
hypotheses (Chen & Chen, 2010).

Considering the objectives and expected required outcomes from this research, it can be
determined that this research needs to be conducted in both qualitative and quantitative
paradigms. The need for measuring the accurate customer responses towards their satisfaction
level in view of prospective value addition offered by “The Krag” requires a quantitative
research implementation. On the other hand, the behavioural exploration of customers
requires that a qualitative analysis of customer attitude is conducted. Hence, objectives of this
market research can only be achieved satisfactorily via combinational research study.

The suggested plan for this market is to conduct the process in iterations. Firstly the
parameters are to be defined then questionnaires will designed and printed, then customer
responses will be collected within a time limit, after that the gathered data will be statistically
processed and facts and figures will be drawn. These facts and concepts are then used for
designing the focus group’s discussion points. Finally, the business will have both customer
responses and experts’ opinions and advice for future decision making, from questionnaires
and focus group discussion respectively.

Selected Quantitative Method

Quantitative research method ensures an accurate and realistic measure of parameters of
interest (Bryman & Bell, 2015). The results are concrete presentation of tested parameters
and are reiterate-able. As Williams & Naumann (2011) has also mentioned that customer
satisfaction’s exact evaluation needs to be precise and can be assessed by careful quantitative
measures.

For Extreme Rock Climbing Centre, it is recommended to utilize a structured survey via
printed questionnaires. Structured questionnaires ensure that respondents will not submit out
of scope replies (Fowler, 2013). Another key aspect of questionnaire surveys is its time
flexibility, i.e. the customers can be handed-over the questionnaire and they bring the
responses in their next visit. Printed surveys do not pose pressure and obligations on
respondents in terms of time and space. This eases and encourages the respondents and

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consequently responses are often more accurate, instead of just random choices (Williams &
Naumann, 2011).

Questionnaire Survey Application

The survey provides efficient and precise results for the aimed parameters and hypotheses.
For this research, no specific hypotheses are devised but the questions will be aimed to figure
out the customer-satisfaction-extent, in terms of services offered and the pricing for services.
As observed in given case, the price for annual membership of new venture is less than those
of Extreme Rock Climbing Centre. The questionnaire will contain structured and close-end
questions for satisfaction with existing services, existing prices, which features are more
important for customers while deciding their choices for climbing centre and what if Extreme
Rock Climbing Centre offers similar services at competitive rates.

For getting maximum responses, surveys are often tagged along some incentives, this
motivates the respondents to step forward and respond responsibly (Jaakkola & Alexander,
2014).

After collection of data from customers, this raw data will be statistically processed, in order
to extract meaningful information. Statistical analysis provides significant interpretations
about the relationships, variations and dependencies in data (Sekaran & Bougie, 2016). These
deductions can be utilized in future planning, decision making and as basis for further
research (Fowler, 2013). As, survey results for Extreme Rock Climbing Centre will be
utilized for focus group mentoring points.

Sampling and Data Collection for Survey

Lone, Tailor and Verma (2017) rendered random sampling as the right method to find out
the mean of a population in any research. Random sampling gives a clear idea of various
trends of attitudes and behaviours (in other words responses) in a particular group (Lone,
Tailor and Verma, 2017. Dura and Nita (2009) used random sampling for marketing research
and found it useful in understanding the behaviour patterns of larger groups. Using the
random sampling for understanding the current satisfaction level of customers and the
changes and improvements they want to see in the Extreme Rock Climbing Centre shall help
in meeting the research objectives of understanding customer satisfaction level and their
wants from the Extreme Rock Climbing Centre in future. Random sampling shall provide
insights into the consumer behaviour of all the major segments of the target market, making
results more comprehensive and useful for translation into new packages.

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Selected Qualitative Method
Qualitative research is more respondent centric as compared to quantitative research (Bryman
& Bell, 2015). Hence qualitative methods are more focused and dependant on the
respondents, in terms of its outcomes and flow of activities. This respondent dependant
progress enables qualitative methods to bring-out the exact human responses (Sekaran &
Bougie (2016) and Chen & Chen (2010)). For the purpose of this research, we need to know
the exact response of existing and potential customers towards the new, enhanced and low-
priced services by The Krag.

For analysing customer behaviour and the perceptions regarding new venture opening in
locale, a focus group study is suggested to be conducted. A focus group study is a brain-
storming session which is controlled and mentored. This group consists of domain experts
and is selected carefully to represent multifaceted aspects of situation (Zikmund et al., 2013).
The responses are not bound to be in a specific format and there is no limit on sequence of
topics discussed. The mentor is responsible for initiating discussions, covering all given
topics, deciding the limitations on content and controlling the dimension of discussion. Group
members can be selected from multiple backgrounds, to get comprehensive responses.

Focus Group Application

Focus group for this research will be aimed to fulfil research objective to “assess the future
customer behaviours and expectations from Extreme Rock Climbing Centre”. The discussion
criteria and points will be focused to evaluate customers’ behaviours after competitor entry in
market. It will also examine customers’ expectations and requirements from Extreme Rock
Climbing Centre. Current services are basic, limited and have not innovated from last 5 years.
Services and prices are the most essential marketing elements to be reconsidered. Two basic
issues to discuss in focus group session, will be customer behaviours evaluation and how to
reinvent the current marketing mix and develop and strong competitive advantage steadily.

Sample of Data Collection Tool

The questionnaire to be used for this research shall be designed using a 5 points Likert scale
to provide the respondents with greater options to share their level of satisfaction with the
services provided by Extreme Rock Climbing Centre. Some sample questions of the
questionnaire to be used are given below:

Customer Feedback Collection Survey

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At Extreme Rock Climbing Centre, we place the customer at the centre of all our activities
and plans. As a part of our effort to improve our services for you, we request you to
participate in this customer satisfaction survey and let us know what you think of our
services.

Thank you

Our Ethics statement

Please be honest and stay assured that the information you provide us shall remain strictly
confidential and private. Further, you are free to decline answering any particular question or
to withdraw anytime during the survey. Answers to these questions shall be used only for
improvement of our services and you will have access to the results of the survey if
requested.

Please score on a scale of 1-5, where 1 = “Not satisfied” and 5 = “Very Satisfied”

1. How is the quality of services provided to you?

1 2 3 4 5

2. How efficient we are in delivering the services we commit?

1 2 3 4 5

3. How do you rate our effectiveness of communicating new offers and packages?

1 2 3 4 5

4. What is your level of satisfaction with the speed of response provide to your queries?

1 2 3 4 5

5. What is your level of satisfaction with the quality of response provide to your queries?

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1 2 3 4 5

6. How satisfied you are with the responsiveness of our staff?

1 2 3 4 5

7. How satisfied you are with the packages we provide in terms of value for money?

1 2 3 4 5

Research Limitations
This being a cross-sectional research puts the limitation that the data obtained from this
research shall depict the current situation of the customers and their satisfaction level only. A
longitudinal research could have helped to understand the trends as they changed in minds of
customers over time. In addition to this, this research shall be conducted using online mode
of communication only. Many people who may not be very familiar with online surveys can
be excluded out of the sample, hence modifying the results to a significant degree. These
limitations can be overcome with the use of further follow-up researches and market surveys
to validate the results of the study.

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Part B
Item Item Sig. (2-
number tailed)
1 Unit materials - learning .017

2 Unit materials - knowledge and skills .039

3 Teaching methods - help to learn .032

9 Feedback from students used .032

Equal variances assumed
18 Teaching staff - developing knowledge, understanding and skills .016

Independent Samples Test

ANOVA

Item Item Year Sig figure

number
1 Unit materials - learning 2003-2005 .000
2003-2007 .024
2004-2005 .000
2004-2007 .017
2005-2007 .000
2 Unit materials - knowledge 2003-2005 .000
and skills
2003-2007 .024
2004-2005 .000
2005-2007 .000
3 Teaching methods – help to 2003-2005 .000
learn
2004-2005 .000
2005-2007 .000
4 Topic and content 2003-2005 .000
2004-2005 .000
2004-2007 .000
2005-2007 .000
5 Assessment tasks 2003-2005 .000
2003-2007 .003
2004-2005 .000
2004-2007 .000
2005-2007 .000
6 Guidelines and criteria 2003-2005 .000
2004-2005 .000
2005-2007 .000
11 Teaching staff - 2003-2007 .019

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 understanding expectations
2005-2007 .005

Correlation matrix

Item Significance Correlation coefficient

Teaching staff-friendly, .000 .625

enthusiastic, helpful

Teaching staff-genuine interest .000 .534

Teaching staff-feedback .000 .528
Teaching staff-developing .000 .605
knowledge, understanding and
skills
Teaching, leaning and .000 .684
assessment tasks used to help
students learn

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Dura, C., & Niță, D. (2009). Using random sampling method in agro-marketing research.
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Fowler Jr, F. J. (2013). Survey research methods. Sage publications.

Hawkins, D. I., Best, R. J., & Coney, K. A. (2010). Consumer behaviour. Implications for
marketing strategy, 5.

Jaakkola, E., & Alexander, M. (2014). The role of customer engagement behaviour in value
co-creation: a service system perspective. Journal of Service Research, 17(3), 247-
261.

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Lone, H. A., Tailor, R., & Verma, M. R. (2017). Efficient separate class of estimators of
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López Salazar, A., Contreras Soto, R., & Espinosa Mosqueda, R. (2011). The impact of
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Williams, P., & Naumann, E. (2011). Customer satisfaction and business performance: a
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Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods.
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