Session 2:

Defining The Marketing Research

Problem & Research Design
Instructor: HUANG, Xun (Irene)
BM2510/2502 Market Intelligence
Agenda
• Defining the Research Problem
• Defining Marketing Research Problem
• Developing Research Question and Hypothesis
• Research Design
• Type 1: Exploratory Research
<Take a Break>
• Research Design
• Type 2: Descriptive Research
• Type 3: Causal Research
• Case Discussion: National Football League

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Defining the Marketing Research Problem & Research Design

1. Defining the Research Problem

1.0 The Marketing Research Process
1.1 Defining the Marketing Research Problem
1.2 Research Question and Hypothesis

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1.0 The Marketing Research Process
Step 1: Problem Definition

Step 2: Development of an Approach to the Problem

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and Presentation

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1.0 The Marketing Research Process
Step 1: Problem Definition

Step 2: Development of an Approach to the Problem

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and Presentation

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1.1 Defining the Marketing Research Problem
A Typical Mistake: A marketing researcher collected some data, but
he was not sure how to analyze the data because he doesn’t know
___________________________________
what the problem/marketing objective

Data analysis is not an independent exercise. Rather, the goal

of data analysis is to provide information related to the
_________________.
research problem

________________is
problem definition the most important step among all
the steps in marketing research process.

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 1.1 Defining the Marketing Research Problem
Management Decision Problem:
• Focuses on symptoms (e.g., decreased market share)
• Asks what the DM needs to do (e.g., shall I launch a new
product?)
• Action-oriented

Marketing Research Problem:

• Focuses on the underlying causes
• Asks what information is needed
and how it should be obtained
• Information-oriented 7
1.1 Defining the Marketing Research Problem
• Tasks Involved to Define the Problem

Discussion with Secondary Data

Decision Makers Analysis

Interviews with Qualitative

Industry Experts Research

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1.1 Defining the Marketing Research Problem
• Example: Harley–Davidson’s research problem defining process
action based problem: whether should invest
more? new production facilities?
The company hesitated to invest in new production
facilities, fearing it might be too early to make that Management Decision Problem
decision.
Should Harley-Davidson invest in
producing more motorcycles?
Industry expert interviews revealed that brand image and
loyalty greatly impact initial and repeat motorcycle sales.
Marketing Decision Problem

Secondary data indicated a rise in consumer spending on
recreation and entertainment, and the majority of
motorcycle owners also possess automobiles.
Focus groups with motorcycle owners revealed the
recreational use of motorcycles and the importance of
brand image and loyalty in purchase and ownership.
Can Harley Davidson categorize its
customers into segments? How to excite
diverse customer groups about their
motorcycles, especially when introducing
new products?
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 1.1 Defining the Marketing Research Problem
3 management problems
• Group Discussion: Try to reframe the following management
decision problems to a marketing research problem.
a. Should a new product be introduced?
b. Should the advertising campaign be changed?
c. Should a brand expand its product offerings?
management decision problem: should a new product be launched? should advertising
campaign be changed? should an automobile brand expand its product offerrings?

marketing research problem:

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 Management Decision Problem:

Marketing Research Problem: What are the relative strengths and weaknesses of the store compared to other
major competitors in terms of factors that influence store patronage?
1.1 Defining the Marketing Research Problem

Group Discussion: Based

on the dialogue between the
decision maker (DM) and a
researcher (R), please identify
the Management Decision
Problem and the Marketing
Research Problem.

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1.1 Defining the Marketing Research Problem
• Challenges that may arise when conducting interviews with
industry experts:
1. Some individuals who claim to be knowledgeable and eager to
participate may not actually possess expertise.
2. It may be difficult to locate and obtain help from experts who are
outside the client organization.

For these reasons, it is best to use interviews with

experts when conducting marketing research for
________________________________________and
industrial firms and products of a technical nature
in situations when little information is available from
other sources.
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1.2 Research Question and Hypothesis
Step 1: Problem Definition

Step 2: Development of an Approach to the Problem

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and Presentation

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 1.2 Research Question and Hypothesis
• Research questions (RQs) are refined statements of the
specific components of the problem.
How • E.g., How does using social media influencers impact brand awareness
for a new cosmetic product among young adults?
• 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.
• E.g., Using social media influencers will increase brand awareness
significantly for the new cosmetic product among young adults.

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1.2 Research Question and Hypothesis
• Group Discussion: Comfort Foods
• Research Background: In times of uncertainty, people frequently
find comfort in familiar and reliable foods. These foods, which offer
a sense of comfort and warmth, are known as comfort foods.
• In the upcoming slides, you’ll encounter several research questions
(RQs) aimed at exploring the aspects of “What,” “When,” and
“How” related to comfort foods.
• Q: Please work in groups and suggest a hypothesis for each of these
RQs.
What When How
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1.2 Research Question and Hypothesis
• Group Discussion: Comfort Foods

What Q: Please formulate a hypothesis for this research question.

• RQ1: What foods are considered as comfort foods?

Food that are high in sugar

H1: Potato chips are considered comfort food

H2: Ice cream is considered comfort food

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1.2 Research Question and Hypothesis
• Group Discussion: Comfort Foods

When Q: Please formulate a hypothesis for this research question.

• RQ2: When do people typically seek comfort foods?

When they have a bad day/sad/feeling down

H3: People eat comfort food when they are in good mood
H4: People eat comfort food when they are in a bad mood

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1.2 Research Question and Hypothesis
• Group Discussion: Comfort Foods

How Q: Please formulate a hypothesis for this research question.

• RQ3: How do individuals develop attachments to comfort

foods?
From childhood

H5: People are attached to comfort food consistent with their personality
H6: Due to past associations

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Defining the Marketing Research Problem & Research Design

2. Research Design
2.0 Overview of Research Design
2.1 Exploratory Research
2.2 Descriptive Research
2.3 Causal Research
2.4 Combining Different Research Methods
2.5 Case Discussion: NFL’s Female Fans

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2.0 Overview of Research Design
Step 1: Problem Definition

Step 2: Development of an Approach to the Problem

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and Presentation

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2.0 Overview of Research Design - Definition

A research design is a framework or

blueprint for conducting the
marketing research project
It details the procedures necessary
for obtaining the information
needed to structure or solve
marketing research problems

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2.0 Overview of Research Design - Classification

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive
Causal Research
Research

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 2.0 Overview of Research Design - Classification
• A Comparison of Basic Research Designs
Exploratory Descriptive Causal
Objective Discovery of ideasofand
Discovery ideas Describe market
Describe market Determine cause-and-effect
Determine
insightsand insights characteristics
characteristics or functionsrelationships
or functions cause-and-effect
relationships
Characteristics Ambiguous Problem Formulation of specific Manipulation of one or
Ambiguous Problem
hypotheses more independent variables
Often thethe
Often front end
front of of
end Measure the effect on
totaltotal research
research design
design Preplanned and structured dependent variable(s)
Example: "Our sales are design
Example:
declining, and we do not Example:
“Ourknow
saleswhy."
are declining, Example: “Will buyers purchase more
and we do not know why.” “Which types of individuals of our product in a new
are buying our products? “ package?” 23
2.0 Overview of Research Design - Classification
• Exercise: Which of the following research activities in a study of
cause-related marketing are exploratory research and which
are conclusive research?
not concrete
• Focus groups to identify the social causes that American businesses
should consider Exploratory Research
• A survey to determine the relative salience of the causes identified by
the focus group Conclusive Research (Descriptive Research)
• An experiment to investigate whether a company caring for
environment topic would lead to favorable consumer responses
compared to a company caring for childcare topic
Conclusive Research (Casual Research)

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 2.0 Overview of Research Design - Classification
Research Design

Exploratory Descriptive Causal

Research Research Research

Secondary
Qualitative Observation
Data Surveys Experiments
Methods Methods
Methods

Week 3 Week 4 Week 6

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2.1 Exploratory Research
• Main Goal: Understand ambiguous problems by exploring
different aspects.
• Common Exploratory Research Methods
• Secondary data (e.g., literature review)
• Interview of experts
• Qualitative research (e.g., focus groups)

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2.1 Exploratory Research - Exercise
• Group Discussion: Imagine you’re tasked with assisting Wal-
Mart in understanding the factors that impact store patronage.
What are some potential exploratory research studies that you
could propose to undertake?

interview with staffs

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2.2 Descriptive Research
• Descriptive research is to _________ something—usually market characteristics
or functions
• To describe the characteristics of relevant groups, such as consumers,
salespeople, organizations, or market areas (e.g., Uniqlo: age, income level)
• To estimate the percentage of units in a specified population exhibiting a
certain behavior (e.g., Lancôme: monthly perfume usage among heavy users)
• To determine the perceptions of product characteristics (e.g., Bubble Tea: the
importance of pearl types, flavors, packaging amongst 20-yo)
• To determine the degree to which marketing variables are associated (e.g.,
Microsoft: the extent Internet usage is related to age, income, education)
• To make specific predictions (e.g., retail sales prediction of Shein in U.S.)

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2.2 Descriptive Research
• Common Descriptive Research Methods
• Secondary data analyzed in a quantitative as opposed to a qualitative
manner
• Surveys
• Panels
• Observational methods

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2.2 Descriptive Research – Cross-Sectional &
Longitudinal Design

• A cross-sectional design involves the collection of information

from any given sample of population elements only once.
• In a longitudinal design, a fixed sample (or samples) of
population elements is measured repeatedly on the same
variables.
Sample
Cross- Sectional
Surveyed at
Design T1
Sample Same Sample
Longitudinal Surveyed at also Surveyed
Design T1 at T2

Time T1 T2 30
2.2 Descriptive Research – Cross-Sectional &
Longitudinal Design

• Cross-Sectional Study is the most frequently used descriptive

design in marketing research. Some examples:

• An online survey of 1,000 U.S. healthcare consumers over the age of

18 to determine the needs for online healthcare services and the best
way to meet them. (Single Cross-Sectional Design) take one photo

• A survey of 500 male consumers and 500 female consumers to help

the phone company understand how to design the mobile phone to
appeal to different gender consumers. (Multiple Cross-Sectional
Design) take two photo for two diff grp at the same time

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2.2 Descriptive Research – Critical Thinking
• A longitudinal design (panel data) differs from a cross-sectional
design in that the sample or samples remain the same over time.
• Q: When considering the following two research questions, which
one is more suitable for cross-sectional research, and which one is
more suitable for longitudinal research?
cross sectional research
(A) What were the most important political issues to Americans in 2018?
(B) How did Americans change their views of the most important political
issues between 2017 and 2018? longitudinal research

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2.2 Descriptive Research
• The major advantage of longitudinal design over cross-
sectional design is the ___________________.
• Thus, a longitudinal design can be employed to gain insights
into brand loyalty and brand switching behaviors over time.

Loyalty % for Brand A: 50% (100/200)

Loyalty % for Brand B: 33% (100/300)
Loyalty % for Brand C: 55% (275/500)

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2.3 Causal Research
• Causal research is used to obtain evidence of cause-and-effect
(causal) relationships.
• The causal variables (independent variables; IVs) are manipulated in
a relatively controlled environment.
• The effect of this manipulation on one or more dependent variables
(DVs) is then measured to infer causality.
• Method (Experiment): Examine differences between control &
experimental groups.

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2.3 Causal Research
• Example: Microsoft conducts usability experiments on three
different versions of Office to assess and compare their user-
friendliness.

Group A Group B Group C

Participants provided ratings on the ease of use, capabilities, and user

experience.

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 2.4 Combining Different Research

Exploratory Research Conclusive Research

Route A
(Secondary/Focus Group) (Descriptive/Causal)

Route B Conclusive Research

(Descriptive/Causal)

Route C Conclusive Research Exploratory Research

(Descriptive/Causal) (Secondary/Focus Group)

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2.4 Combining Different Research - Exercise
• Q: Please read this scenario and determine which route (Route
A, Route B, or Route C) this scenario adopts.
• Scenario A: The department store patronage survey yielded
surprising findings: Ratings for in-store service had dropped even
though there was an increase in sales staff. To understand this
contradiction, focus groups were organized. These discussions
revealed that while salespeople were easily accessible, they were
perceived as unfriendly and unhelpful. This highlights the
importance of providing training to the sales staff.

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2.4 Combining Different Research - Exercise
• Q: Please read this scenario and determine which route (Route
A, Route B, or Route C) this scenario adopts.
• Scenario B: In the department store patronage project, the
researchers first performed secondary data analysis and qualitative
research to understand the issue and formulate a suitable strategy.
Afterward, they conducted a survey using a questionnaire.

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2.4 Combining Different Research - Exercise
• Q: Please read this scenario and determine which route (Route
A, Route B, or Route C) this scenario adopts.
• Scenario C: After completing the department store patronage
project, the researchers carried out a follow-up survey one year
later to evaluate whether any changes had taken place.

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2.4 Combining Different Research - Exercise
• Group Discussion
1. If Walmart wants to study how people’s shopping habits
change as they move from the ages of 30 to 40 and from 50 to
60 years old, what type of research design should be adopted?
2. How can Walmart make use of causal research? Design one
scenario where a causal research design would be suitable.

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2.5 Case Discussion
• Read the article “Understanding the Female NFL Fan” and
discuss the following questions:

1. In the male-dominated sport of football, the National Football

League (NFL) aims to enhance its presence and engagement among
female fans. What’s the marketing research problem studied in the
NFL Fan Insights Study?
2. What type of research design did the researchers employ to
investigate this marketing research problem? Please elaborate on
the key research findings that emerged from their study.

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Key Takeaways
• Management Decision Making Problem vs. Marketing Research
Problem: symptoms vs. underlying causes; action-oriented vs.
information-orientated
• Drafting the Research Question and Hypothesis while studying a
certain marketing research problem
• Companies could adopt different research methods to jointly
investigate a marketing research problem. Understand the
characteristics of three major research methods:
• Exploratory Research
• Descriptive Research
• Causal Research

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Announcements
• The updated slides for this class will be available online by this
Tuesday evening.
• Please remember to send your group member list form (which
can be found in NTU Learn) to the instructor
(huangxun@ntu.edu.sg) by this Sunday (Aug 27, 2023;
23:59pm).

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