Session 2_problem-identification.pptx in business

Session 2_problem-identification.pptx in business

1. Session 2 Defining the Marketing Research Problem

2. Learning Objectives After attending this session, the student will be able to:   Understand the Sequential process of conducting marketing research Understand the idea of a Decision Problem and a Research Problem Understand and apply the process through which a decision problem is converted to a research problem Understand concepts like Research Design, Research objectives, Research questions Chapter 2 - 2

3. Marketing Research Process Chapter 2 - 3

4. The Problem Definition & Approach Development Process Chapter 2 - 4 Tasks Involved Qualitative Research Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Step 2: Approach to the Problem Step 3: Research Design Research Questions and Hypotheses Analytical Framework and Models Specification of Information Needed Marketing Research Problem

5. A management Decision Problem- The problem confronting the Decision Maker which asks what the decision makers needs to do A Marketing Research Problem : A problem that entails determining what information is needed and how it can be obtained in the most feasible way Management Decision Problem and Marketing Research Problem Chapter 2 - 5

6. Management Decision Problem Vs. Marketing Research Problem – Typical process Management Decision Problem The Manager / The Client The Researcher Marketing Research Problem Research Brief Problem Audit

7. Tasks Involved in Problem Definition Chapter 2 - 7

8. The Problem Audit Chapter 2 - 8

9. The Problem Audit (Cont.) 5. The information that is needed to answer the DM's questions. 6. The manner in which the DM will use each item of information in making the decision. 7. The corporate culture as it relates to decision making. Chapter 2 - 9

10. Discussion Between the Researcher and the DM Focus of the DM Symptoms Loss of Market Share Focus of the Researcher Underlying Causes Superior Promotion by Competition Inadequate Distribution of Company’s Products Lower Product Quality Price Undercutting by a Major Competitor Chapter 2 - 10 Discussion

11. Problem Def n Based on Symptoms Can Be Misleading Chapter 2 - 11 Firm Symptoms Based on Symptoms Based on Underlying Causes Manufacturer of orange soft drinks Consumers say the sugar content is too high Manufacturer of machine tools Customers complain prices are too high

12. Problem Def n Based on Symptoms Can Be Misleading Chapter 2 - 12 Firm Symptoms Based on Symptoms Based on Underlying Causes Manufacturer of orange soft drinks Consumers say the sugar content is too high Determine consumer preferences for alternative levels of sugar content Colour . The colour of the drink is a dark shade of orange giving the perception that the product is too “sugary.” Manufacturer of machine tools Customers complain prices are too high Determine the price elasticity of demand Channel management. Distributors do not have adequate product knowledge to communicate product benefits to customers.

13. Management Decision Problem and the Corresponding Marketing Research Problem Management Decision Problem Should a new product be introduced? Should the advertising campaign be changed? Should the price of the brand be increased? Marketing Research Problem To determine consumer preferences and purchase intentions for the proposed new product. To determine the effectiveness of the current advertising campaign. To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes. Chapter 2 - 13

14. Management Decision Problem and Marketing Research Problem Chapter 2 - 14 Management Decision Problem Evaluates what the decision maker need to do Focuses on the symptoms Action Oriented Marketing Research Problem Evaluates what information is needed to support the identified marketing decision Information oriented Focuses on Underlying causes

15. Conceptual Map of Problem Identification Chapter 2 - 15 Malhotra et al, 2017

16. Management Decision Problem and the Corresponding Marketing Research Problem Management Decision Problem Should Harley-Davidson invest to produce more motorcycles? Marketing Research Problem To determine if customers would be loyal buyers of Harley-Davidson in the long term. Chapter 2 - 16

17. Harley-Davidson: Specific Components Marketing Research Problem: Specific Components 1. Who are the customers ? What are their demographic and psychographic (lifestyle) characteristics? 2. Can different types of customers be distinguished? Is it possible to segment the market in a meaningful way? 3. How do customers feel regarding their Harleys? Are all customers motivated by the same appeal? 4. Are the customers loyal to Harley-Davidson? What is the extent of brand loyalty ? Chapter 2 - 17

18. Figure 2.5 Errors in Defining the Market Research Problem Chapter 2 - 18 Common Errors Problem Definition is Too Broad Does Not Provide Guidelines for Subsequent Steps e.g., Improving the Company’s Image Problem Definition is Too Narrow May Miss Important Components of the Problem e.g. Changing Prices in Response to a Competitor’s Price Change

19. Component of The Approach Chapter 2 - 19

20. Approach to Research Chapter 2 - 20 Analytical Framework: Statement of theory as applied to marketing research Analytical Model: Some explicit replication of variables and their interrelationships to represent some real system of process in whole or part Graphical Model: An analytical model represented in a visual format

21. Example of a Graphical Model Chapter 2 - 21 Ajzen, 1985

22. Research Questions are refined statements of the research problem E.g. How does consumer satisfaction with interior décor of a hotel influence their loyalty? What are the factors that influence a consumer’s perception about a retailer? Research Hypotheses: Unproved statement of proposition about a factor or phenomenon that is of interest to the researcher E.g. H1: Consumer satisfaction about the interior décor has a strong positive influence on their loyalty Research Questions and Hypotheses Chapter 2 - 22

23. Provides the basic objectives to guide data collection Data can be qualitative or quantitative Some of the data may already be available – secondary data H1: Consumer satisfaction about the interior décor has a strong positive influence on their loyalty E.g. Information needed: data about satisfaction levels with interior décor and loyalty of consumers Specification of the information needed Chapter 2 - 23