Research Assistance 2

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Chapter 2

The Marketing Research Process

and Proposals

Learning Objectives

• Describe the major environmental factors influencing marketing research

• Discuss the research process and explain the various steps

• Distinguish between exploratory, descriptive, and causal research designs

• Identify and explain the major components of a research proposal

Value of the Research Process

• Additional information is needed to make a decision or to solve a problem

– Solution - Marketing research study based on a scientific research process

Changing View of the Marketing Research Process

• Organizations are increasingly confronted with new and complex challenges and opportunities – Internet - Most influential factor

• Growing emphasis on collection of secondary data – Secondary data: Information previously collected

for some other problem or issue

– Primary data: Information collected for a current research problem or opportunity

Developments Affecting Marketing Decision Makers

• Linking purchase data collected in-store and online with existing customer profiles in company databases

– Enhances understanding of consumer behavior

• Increased use of gatekeeper technologies

– Gatekeeper technologies: Offer protection from intrusive marketing practices

• Telemarketing

• Illegal scams

Developments Affecting Marketing Decision Makers (continued)

• Firms’ widespread expansion into global markets

• Repositioning of marketing research in businesses to play a more important role in strategy development

• Information research process: Systematic approach to collecting, analyzing, interpreting, and transforming data into decision-making information

Determining the Need for Information Research

• Questions decision makers should ask

– Can the problem and/or opportunity be resolved using existing information and managerial judgment?

– Is adequate information available within the company’s internal record systems to address the problem?

– Is there enough time to conduct the necessary research before the final managerial decision must be made?

Determining the Need for Information Research (continued)

– Do the benefits of having the additional information outweigh the costs of gathering the information?

– Will the research provide useful feedback for decision making?

– Will this research give competitors too much information about the firm's marketing strategy?

Exhibit 2.1 - Situations When Marketing Research Might not be Needed

Situation Factors and Comments

Insufficient time frames When the discovery of a problem situation

leaves inadequate time to execute the necessary research activities, a

decision maker may have to use informed judgment-Competitive

actions/reactions sometimes emerge so fast that marketing research

studies are not a feasible option.

Inadequate resources When there are significant limitations in money,

manpower, and/or facilities, then marketing research typically is not

feasible.

Costs outweigh the value When the benefits to be gained by conducting

the research are not significantly greater than the costs, then marketing

research is not feasible.

Decision Makers Versus Researchers

Decision makers

• Intuitive thinkers who require information to confirm their decisions

• Cost of acquiring information is a concern

• Results oriented

• Reject information when surprised

• Advocate being proactive but use reactive decision making

Researchers

• Scientific, technical, and analytical thinkers who explore new phenomena

• Cost is not a concern

• Result-oriented

• Enjoy abstractions and surprises

• Advocate proactive need for continuous inquiries but are restricted to reactive decision making

Overview of the Research Process

• Phases of the research process are guided by the scientific method

– Scientific method: Research procedures are logical, objective, systematic, reliable, and valid

Exhibit 2.2 - The Four Phases of the Information Research Process

Transforming Data into Knowledge

• Primary goal of the research process

– Provide decision makers with knowledge that can help solve problems or pursue opportunities

• Knowledge: Data interpreted by researchers or decision makers

Exhibit 2.4 - Phases and Steps in the Information Research Process

Phase I: Determine the Research Problem

Step 1: Identify and clarify information needs

Step 2: Define the research questions

Step 3: Specify research objectives and confirm the information value

Phase II: Select the Research Design

Step 4: Determine the research design and data sources

Step 5: Develop the sampling design and sample size

Step 6: Examine measurement issues and scales

Step 7:Design and pretest the questionnaire

Phase III: Execute the Research Design

Step 8: Collect and prepare data

Step 9: Analyze data

Step 10: Interpret data to create knowledge

Phase IV: Communicate the Research Results

Step 11: Prepare and present final report

Relevant Key Terms in the Information Research Process

Iceberg principle Only 10 percent of the problem is perceived by decision makers Helps distinguish between symptoms and causes of problems

Situation analysis

Gathers and synthesizes background information to familiarize a researcher with the overall complexity of the problem

Unit of analysis Specifies whether data should be collected about individuals, households, organizations, departments, geographical areas, or some combination

Exploratory research

Generates insights that help define the problem situation confronting a researcher Improves the understanding of consumer motivations, attitudes, and behavior that are not easy to access using other research methods

Relevant Key Terms in the Information Research Process (continued)

Descriptive research

Collects quantitative data to answer research questions such as who, what, when, where, and how

Causal research

Collects data that enables decision makers to determine cause-and-effect relationships between two or more variables

Target population

Population from which a researcher wants to collect data

Census Researcher attempts to question or observe all the members of a defined target population

Sample Small number of members of the target population from which a researcher collects data

Exhibit 2.5 - The Iceberg Principle

Develop a Research Proposal

• Research proposal: Provides an overview of the proposed research and methodology

– Serves as a written contract between a decision maker and a researcher

Exhibit 2.8 - General Outline of a Research Proposal

TITLE OF THE RESEARCH PROPOSAL

I. Purpose of the Proposed Research Project

Includes a description of the problem and research objectives.

II. Type of Study

Discusses the type of research design (exploratory, descriptive, or causal), and

secondary versus primary data requirements, with justification of choice.

III. Definition of the Target Population and Sample Size

Describes the overall target population to be studied and determination of the

appropriate sample size, including a justification of the size.

IV. Sample Design and Data Collection Method

Describes the sampling technique used, the method of collecting data (for example,

observation or survey), incentive plans, and justifications.

V. Specific Research Instruments

Discusses the method used to collect the needed data, including the various types

of scales.

Exhibit 2.8 - General Outline of a Research Proposal (continued)

TITLE OF THE RESEARCH PROPOSAL

VI. Potential Managerial Benefits of the Proposed Study

Discusses the expected values of the information to management and how the

initial problem might be resolved, including the study's limitations.

VII. Proposed Cost for the Total Project

Itemizes the expected costs for completing the research, including a total cost

figure and anticipated time frames.

VIII. Profile of the Research Company Capabilities

Briefly describes the researchers and their qualifications as well as a general

overview of the company.

IX. Optional Dummy Tables of the Projected Results

Gives examples of how the data might be presented in the final report.

Marketing Research in Action What Does a Research Proposal Look Like?

• If a proposal is accepted, will it achieve the objectives of management?

• Is the target population being interviewed the appropriate one?

• Are there other questions that should be asked in the project?