MS30C:Marketing Research

WEEK 1
• Introduction to Course
• Introduction to Marketing Research
• Defining the Marketing Research Problem and Developing an
Approach
• Research Design

• Read course outline

• Read chapters 1, 2, 3

Presented by: Professor Trevor Smith

September 4, 2023(Monday)
September 8, 2023(Friday)

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 Ice Breaker

How many ‘F’

•Finished files are the result of years of scientific study combined with
the experience of many years

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 Ice Breaker

How many ‘F’

•Finished files are the result of years of scientific study combined with
the experience of many years

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 Outcome – WK 1

On completion of Wk1, students should be able to:

•Understand the course requirements
•Demonstrate an understanding of the marketing research process
•Define the marketing research problem and develop an approach to
the problem
•Demonstrate a cursory understanding of research design

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 Required Texts and Reading Material
Required:
Malhotra, N. K. (2010). Marketing Research: An Applied
Orientation (6th ed.). ISBN: 978-0- 13-609423-4. New Jersey:
Prentice Hall.
Recommended:
Bryman and Cramer (2005). Quantitative Data Analysis with SPSS
12 and 13. Routledge.

Other Reading:
Handouts will be supplied by Lecturer

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Required Text

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Resource Material for SPSS

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Course Objectives
To help students develop an understanding of the use of marketing
research information in strategic decision-making.
To familiarize students with the techniques of marketing research
To help students develop the skills to apply marketing research tools
in real life situations

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Teaching Method
• Lecture presentations will generally consist of notes (PowerPoint,
slides, videos) and face-to-face class discussions.
• SPSS Tutorials (face-to-face)
• Students are required to read all assigned materials prior to the
lectures

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Deliverables

• Market Research Study (Group):40% (Nov 17, 2023)

• Final Examination:60% (TBA)

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 Market Research Study (group) – 40% –
Due: Nov 17, 2023
• The objective of the Group Marketing Research Study is to provide
students with the “know how” to apply concepts and methods to real
marketing research problems.
• Students are required to develop research question(s) and testable
hypotheses; undertake data collection; select sample; develop survey
instrument; analyze data (using SPSS); and to draw conclusions and
make recommendations based on research findings.
• Students are given considerable freedom to choose the topic for study.
However, it is to be noted that the research problem needs to be
relevant to marketing and must lend itself to quantitative solutions
(through primary data gathering and SPSS for data analysis).

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Market Research Study (group) – 40% –
Due: Nov 17, 2023
Each group will be required to discuss its plans for the
group research study in a tutorial setting. The experience
has shown that the in-class group discussions (inter- and
intra group) will help students to better understand the
requirements of the project. On deciding on the topic
and research questions, each groups should seek the
approval of the lecturer before proceeding with the
study.

Students are required to do this assignment in groups of

6 - 8.

NB: Group Size outside this range will not be accepted

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Market Research Study (group) – 40% -
Due: Nov 17, 2023
The Group Market Research Study be no more than 20
pages, double spaced and should be presented in the
following format:
 Executive Summary
 Problem Definition
 Approach to the Problem
 Research Design
 Data Analysis
 Results & Discussion
 Limitations
 Conclusions and Recommendations
 Appendices

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Face to Face Multiple Choice (MCQ) Final Exam –
60%
• Students are required to answer 100 MCQ questions
in two (2) hours

• This will be a face-to-face exam;

• In preparing for the exam, students are required to
read the prescribed text along with the PowerPoint
slides and materials distributed in class.

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 SPSS Online Tutorials
SPSS tutorials will be held aimed at assisting students
with the Group Marketing Research Study. In these
tutorials students will be exposed to basic features and
techniques of SPSS:
 Getting to know SPSS
 Creating data files & Entering data
 Categorical vs. Continuous Variables Revisited
 Bivariate vs. Multivariate Analysis
 Frequency distribution and other descriptives
 Summing and rearranging data (compute and recode)
 Scale Reliability (Cronbach’s Alpha)
 Hypotheses testing :
 Differences ((t-test, one-way ANOVA)
 Association ( correlation, multiple regression, logistic regression)
 Grouping variables thru Factor Analysis
 Interpreting SPSS output

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Course Syllabus

 Introduction to Course  Read course outline

 Introduction to Marketing Research  Read chapters 1, 2, 3
WK1: Sep 4
 Defining the Marketing Research Problem and Developing an Approach Sep 8
 Research Design
 Exploratory Research Design: Qualitative Research  Read chapters 5,6
 Descriptive Research Design: Survey and Observation
WK2: Sep 11
Sep 15
 Measurement and Scaling: Fundamentals and Comparative Scaling  Read chapters 8, 9
 Measurement and Scaling: Noncomparative Scaling Techniques
WK3: Sep 18
 Understanding Measurements for Statistical Data Analysis Sep 22
 Questionnaire & Form Design  Read chapters 10
WK4: Sep 25
Sep 29
 Sampling:  Read chapter 11& 12
Design and Procedures
WK5: Oct 2
Final and Initial Sample Oct 6
Size Determination
 Fieldwork  Read chapters 13, 14
 Data Preparation
WK6: Oct 9
Oct 13
 Heroes’ Day (Oct 16)  No classes for week;
Students are required to
WK7: Oct 16
practice SPSS with Oct 20
problems assigned by
lecturer

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 Course Schedule
WK8: Oct 23 Data Analysis  Read chapter 15, 15, 16
Oct 27 Frequency Distribution, Cross
Tabulation, and Hypothesis Testing
Analysis of Variance and Covariance
WK9: Oct 30 Data Analysis  Read chapter 17, 19, 22
Nov 3 Correlation and Regression
Factor Analysis
Reporting
Report Preparation and Presentation
WK10: Nov 6  Course Revision
Nov 10
WK11: Nov 17  Submit Study  Submit Market Research
Study – Nov 17, 2023
Exam Period  Exact date to be announced  Take Final Exam Face-to-
Face

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Redefining Marketing Research

The American Marketing Association (AMA)

redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer
through INFORMATION

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Redefining Marketing Research

Used to identify and

define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance

Improve understanding
of marketing as a
process
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Definition of Marketing Research

Marketing research is the systematic and objective

 identification
 collection
 analysis
 dissemination
 and use of information

For the purpose of improving decision making related to the

 identification and
 solution of problems [and opportunities] in marketing.

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 Examples of Marketing Research Studies
Fig. 1.1
Marketing Research

Problem Problem-Solving
Identification Research Research

Market Potential Research

Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research

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Preparation for a Career in Marketing Research

Take all the marketing courses you can.

Take courses in statistics and quantitative methods.

Acquire Internet and computer skills. Knowledge of

programming languages is an added asset.
Take courses in psychology and consumer behavior.

Acquire effective written and verbal communication skills.

Think creatively. Creativity and common sense command a

premium in marketing research.
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Marketing Research Process
Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

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Developing the market research problem
definition

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Chain Restaurant Study

One day I received a

phone call from a
research analyst who
introduced himself as
one of our alumni.
He was working for a
restaurant chain in town
and wanted help
analyzing the data he
had collected while
conducting a marketing
research study.

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Chain Restaurant Study

When we met, he presented me with a copy

of the questionnaire and asked how he
should analyze the data. My first question
to him was,

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Chain Restaurant Study

When he looked
perplexed, I
explained that
data analysis is
not an
independent
exercise.

Rather, the goal of data analysis is to

PROVIDE INFORMATION RELATED TO THE
PROBLEM COMPONENTS.
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Chain Restaurant Study

I was surprised to learn that he did not have

a clear understanding of the marketing
research problem and that a written
definition did not exist. So before going any
further, I had to define the marketing
research problem.

Once that was done, I found that much

of the data collected was not relevant
to the problem. In this sense, the
whole study was a waste of resources.
A new study had to be designed and
implemented to address the problem
defined.

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What is the marketing research problem
definition?
• A broad statement of the general problem and identification of
the specific components of the market research problem.
• The study can only be designed and conducted properly when the
market research problem is clearly defined.
• Two levels of problem:
▫ Management decision problem
▫ Marketing research problem

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Problem definition: The Harley Davidson
example
• Management decision problem:
▫ Should Harley Davidson invest to produce more
motorcycles?
• Marketing research problem:
▫ Will customers be loyal buyers of Harley in the long
term?

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Management Decision Problem Vs.
Marketing Research Problem
Management Decision Problem Marketing Research Problem

Should a new product be introduced? To determine consumer

preferences 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.

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The Problem Definition Process
Tasks Involved
Fig. 2.1
Discussion Interviews Secondary Qualitative
with with Data Research
Decision Maker(s) Experts Analysis

Environmental Context of the Problem

Step I: Problem Definition

Management Decision Problem

Marketing Research Problem

Step II: Approach to the Problem

Analytical
Specification
Objective/ Model:
Research Hypotheses of
Theoretical Verbal, Questions
Foundations Information
Graphical,
Needed
Mathematical

Step III: Research Design

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Developing an approach to the problem

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Components of an Approach

 Objectives/Theoretical Foundations
 Analytical Model
 Research Questions
 Hypotheses
 Specification of the Information Needed

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Objectives/Theoretical Foundations
• The foundation of research should be
objective and based on a theoretic foundation.
• A theory is based on principles, which have
either been proven or accepted as true.
• Thus, a theory provides a researcher with
general principles on which to base his/her
research work.
• Moreover, theory serves as a framework that
can be used by the researcher in
interpretation of the data collected.

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Theoretical Foundations: Examples

• Consumers will buy more at the

same quality and a lower price.
• Customer service will influence
repeat business.
• A satisfied customer will
generally be more loyal.

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 Analytical Models

• An analytical model is a set of variables and their

interrelationships designed to represent, in whole or in part,
some real system or process.
• It is a verbal, graphical, or mathematical
representation based on some theoretical
foundations.

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 Verbal Models

• In verbal models, the variables and their

relationships are stated in prose form.
• Such models may be mere restatements of the main
tenets of a theory.

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Graphical Models
Graphical models are visual. They are used to isolate
variables and to suggest directions of relationships
but are not designed to provide numerical results.

Awareness

Understanding: Evaluation

Preference

Patronage
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Mathematical Models
Mathematical models explicitly specify the
relationships among variables, usually in
equation form.
n
y  a 0
 a x i i
i 1

Where
y = degree of preference
a ,a
0 i
= model parameters to be estimated
statistically

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Development of Research
Questions and Hypotheses
Fig. 2.4

Components of the
Marketing Research Problem
Objective/
Theoretical
Framework
Research Questions
Analytical
Model
Hypotheses

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Department Store Project (1)

• RQ1:How important is competitive pricing?

• HI: Competitive pricing is more important to the lower-
income shoppers.

• RQ2:How important is in-store service?

• H2:Mere presence of salespeople is not enough; salespeople
should be friendly.

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Department Store Project (2)
• RQ1:How do shoppers evaluate the quality of Sears’ brands
of merchandise?
• H1:The quality of Sears’ brands is much higher for hardware
than for apparel.

• RQ2: Are Sears stores conveniently located?

• H2:Sears stores are conveniently located for
shoppers living in the suburbs.

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Department Store Project (3)
• RQ1:Is Sears preferred for hardware?
• H1:Sears is preferred over competitors for the purchase of
hardware.

• RQ2:Is Sears preferred for the purchase of women’s

clothing?
• H2:Shoppers prefer to purchase women’s clothing at
upscale department stores.

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Department Store Project (4)

• RQ1:What is Sears’ market share for hardware?

• H1:Sears’ market share is higher in hardware than it is in
men’s clothing.

• RQ2: How does Sears’ market share compare to Macy’s in-

home furnishings?
• H2:Macy’s has a larger market share than Sears’ in-home
furnishings.

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Department Store Project (5)

• RQ1:How is store patronage related to store evaluations?

• H1:Store patronage is a linear function of store evaluations.

• RQ2: Which demographic characteristic is the most

important in influencing store patronage?
• H2:Income is the most important demographic
characteristic in influencing store patronage.

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At United, Food Is Uniting the Airline
with Travelers

United Airlines, as other major airlines, had to

deal with passenger loyalty (management
decision problem: how to attract more and more
loyal passengers). The broad marketing research
problem was to identify the factors that
influence loyalty of airline travelers.
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At United, Food Is Uniting the Airline with
Travelers
The basic answer is to improve service.
Exploratory research, theoretical framework,
and empirical evidence revealed that the
consumers’ choice of an airline is influenced
by: safety, price of the ticket, frequent-flyer
program, convenience of scheduling, and
brand name.

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At United, Food Is Uniting the Airline
with Travelers

A graphical model stipulated that

consumers evaluate competing
airlines based on factors of the
choice criteria to select a preferred
airline. The problem was that
major airlines were quite similar on
these factors. Indeed, "airlines
offer the same schedules, the same
service, and the same fares.”
Consequently, United Airlines had
to find a way to differentiate itself.
Food turned out to be the solution.
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At United, Food Is Uniting the
Airline with Travelers

Secondary data, like the J. D Power &

Associates' survey on "current and future
trends in the airline food industry," indicated
that "food service is a major contributor to
customers’ loyalty." This survey also
emphasized the importance of food brands. 50
At United, Food Is Uniting the
Airline with Travelers
The airline's Marketrak survey told United Airlines that
"customers wanted more varied and up-to-date food.”
The following research questions and hypotheses may be
posed.
RQ1 How important is food for airline customers?
H1: Food is an important factor for airline travelers.
H2: Travelers value branded food.
H3: Travelers prefer larger food portions, but with
consistent quality.

H4: Travelers prefer exotic food.

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At United, Food Is Uniting the
Airline with Travelers
Characteristics that influence the research
design included the identification of competing
airlines (Delta, American, etc.), factors of the
choice criteria (already identified),
measurement of airline travel, and loyalty.

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At United, Food Is Uniting the
Airline with Travelers
This kind of research helped United Airlines define their marketing
research problem and develop the approach. Focus groups and
surveys were conducted to check customers' perceptions of food
in United Airlines' aircraft. The results provided support for all
the hypotheses (H1 to H4). United Airlines then made a few
changes: new "culinary menus," larger portions of food, new
coffee, and branded products (e.g., Godiva chocolates). This
resulted in better service, increasing customer satisfaction and
fostering loyalty.

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 54

Research Design

a. Exploratory
b. Descriptive
c. Causal
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.
Components of a Research Design

• Define the information needed (Chapter 2)

• Design the exploratory, descriptive, and/or causal phases of
the research (Chapters 3 - 7)
• Specify the measurement and scaling procedures (Chapters
8 and 9)
• Construct and pretest a questionnaire (interviewing form)
or an appropriate form for data collection (Chapter 10)
• Specify the sampling process and sample size (Chapters 11
and 12)
• Develop a plan of data analysis (Chapter 14)
A Classification of Marketing Research
Designs
Fig. 3.1

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
 Exploratory & Conclusive Research
Differences
Table 3.1
Exploratory Conclusive
Objective: To provide insights and To test specific hypotheses and
understanding. examine relationships.

Character- Information needed is defined only Information needed is clearly defined.

istics: loosely. Research process is flexible Research process is formal and
and unstructured. Sample is small structured. Sample is large and
and non-representative. Analysis of representative. Data analysis is
primary data is qualitative. quantitative.

Tentative.
Findings/ Conclusive.
Results:
Generally followed by further
Outcome: exploratory or conclusive research. Findings used as input into decision
making.
A Comparison of Basic Research
Designs
Table 3.2
Exploratory Descriptive Causal
Objective: Discovery of ideas Describe market Determine cause
and insights characteristics or and effect
functions relationships

Characteristics: Flexible, versatile Marked by the prior Manipulation of

formulation of specific one or more
hypotheses independent
variables
Often the front end Preplanned and
of total research structured design Control of other
design mediating
variables
Expert surveys Secondary data:
Methods: Pilot surveys quantitative analysis Experiments
Secondary data: Surveys
qualitative analysis Panels
Qualitative research Observation and other
data
Cross-sectional Designs
• Involve the collection of information from any given sample of
population elements only once.
• In single cross-sectional designs, there is only one sample of
respondents and information is obtained from this sample only
once.
• In multiple cross-sectional designs, there are two or more
samples of respondents, and information from each sample is
obtained only once. Often, information from different samples
is obtained at different times.
Longitudinal Designs
• A fixed sample (or samples) of population elements
is measured repeatedly on the same variables
• A longitudinal design differs from a cross-sectional
design in that the sample or samples remain the
same over time
 Cross-sectional vs. Longitudinal

Cross- Sample
Sectional Surveyed
Design at T1

Same
Sample Sample also
Longitudinal Surveyed at
Design Surveyed at
T1 T2

Time T1 T2
 Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Table 3.4

Evaluation Cross-Sectional Longitudinal

Criteria Design Design

Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -

Note: A “+” indicates a relative advantage over the other

design, whereas a “-” indicates a relative disadvantage.
Uses of Casual Research
• To understand which variables are the cause
(independent variables) and which variables are the effect
(dependent variables) of a phenomenon
• To determine the nature of the relationship between the
causal variables and the effect to be predicted
• METHOD: Experiments
 Alternative Research Designs
Exploratory
Research
(a) • Secondary Data Conclusive Research
Analysis •Descriptive/Causal
• Focus Groups

Exploratory
(b) Conclusive Research Research
•Descriptive/Causal • Secondary Data
Analysis
• Focus Groups
Research project pointers: Possible areas for
study
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Thank You!

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