1. Problem Definition & Research Problem PDF

Title 1. Problem Definition & Research Problem
Course Marketing Research
Institution Macquarie University
Pages 6
File Size 261.3 KB
File Type PDF
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MKTG2002 – MARKETING RESEARCH WEEK 2: PROBLEM DEFINITION & RESEARCH PROBLEM PART 1: THE GROUP PROJECT The Two Components  Research Proposal – draw from secondary data to plan your research project  Final Report – results of descriptive or causal research Getting Started on the Project  Identify a problem that an organisation or a group of people face:  Doesn’t have to be a traditional problem (e.g. the 4P’s, relationship marketing, internal marketing, etc.)  MUST be a marketing problem  The target population of interest to MQ students Project in the Past Have Included:  New product/service feasibility  Attitudes towards campus business/services  Consumer response to changes in the marketing mix  Segmentation  Social issues – e.g. drinking, race relations, pollution, etc. Getting Ideas for Your Report  Should be motivated by a real problem – read the examples research topic guide and speak to friends and fellow students about potential ideas  Follow the research process – method and proposed analysis should be consistent with problem definition Working in Groups  Keep a diary – date, time start and finish, who was there, who contributed what, etc.  Peer review in Week 13 – no evidence = no redistribution markets Brief Overview of Research Topic  Your research topic must be approved by your tutor – 11:59pm, Sunday 16th of August (Week 3)  You need to submit the brief overview of your research topic with the following:  Client name  Name of main research topic  Marketing research problem (at least one paragraph)  Name of subtopics with one paragraph explanation of each subtopic

PART 2: PROBLEM DEFINITION & RESEARCH PROCESS Key Terms  Marketing management/decision problem  Marketing research problem  Research questions – RQ  Hypotheses – H1, H2, H3…  Research objectives  Variables Problem Definition  A problem definition indicates a specific marketing decision to be clarified or problem to be solved  It specifies the objective of the research and the questions to be answered Problem → Solution  Identification of a problem is more important than offering the solution that addresses the problem The Process of Defining A Problem  Critical first steps in the research process  A (marketing management/decision) problem:  Indicates a specific marketing decision to be clarified or a specific problem to be solved  Specifies research questions to be answered and the objectives of the research  Involves several interrelated steps The Process of Defining THE Problem 1. Research question and objectives 2. Relevant variables 3. Unit of analysis 4. Separate problems from symptoms 5. Background to the problem 6. Decision-makers objectives Ascertain the Decision-Maker’s Objectives  Researchers must attempt to satisfy decision-maker’s objectives  Managerial goals should be expressed in measurable terms  Sale  Marketing share  Profit  Brand awareness  Satisfaction

Marketing (Management/Decision) Problem  Ask what the decision-maker needs to do  Action oriented  Symptom or a true problem?  Note that a ‘problem’ can be positive – e.g. how do we take advantage of this opportunity?  Examples:  Should the advertising campaign be changed?  Should the price of the product be changed?  What can Subaru do to expand its automobile market? The Importance of Proper Problem Definition  The right answer to the wrong question may be worthless of harmful  E.g. Coca-Cola’s ‘New Coke’ (1983) VS the ‘Pepsi Challenge’(1981) The Problem With the Problem – Pepsi Challenge  Pepsi claimed consumers preferred the sweeter taste of Pepsi  Coke’s tests backed this up  New coke was developed  Blind taste tests indicated ‘New Coke’ to be a success – consumers preferred the taste of the ‘New coke’  Coke launched ‘New Coke’  Consumer backlash  Researchers only investigated the effect of taste – but what about brand name?

Decision-Maker’s Objectives

Symptoms Can Be Confusing Organisation Symptoms Distributor of Tablet PC

Retailers complain the prices are too high

Boutique Beer

Consumers say they prefer flavour of competitor’s brand

Problem Based on Symptoms How much should the prices be reduced? (survey of target business users) What reformulated taste is needed?

True Problem Sales MGMT: retailers don’t have product knowledge to communicate benefits Packaging: oldfashioned package affects taste perception

Determine the Unit of Analysis  Researchers must specify whether the investigation will collect data about individuals, households, organisations, etc.  Problems may be investigated at more than one level of analysis  For example, both individual and business consumers purchase PC’s Determine the Relevant Variables  A variable is anything that varies in value – e.g. attitudes towards airlines may be a variable ranging from positive to negative  Relationships:  Dependent: variable that is to be predicted or explained  Independent: variable that is expected to influence the dependent variable  Measurement:  Continuous: infinite number of values  Categorical/Classificatory: limited number of distinct values

Turn Research Problem Into Research Question (RQ)  Define the Decision Problem – precisely specify the decision problem and work out if it is a symptom or true problem?  Specify the Research Question:  Most critical step in the marketing research process  Reformulate in scientific terms and restate the initial variables – how, what, where, when or why? State the Research Questions  Written statement of research questions that clarifies any ambiguity about what the research hopes to accomplish  Black/Blue VS Gold/White Dress Scenario:  RQ: What colour is the dress?  RQ: What colour is seen by what kind of people against what context? Clarity in RQ & Hypotheses  Research questions and hypotheses add clarity to the statement of the marketing problem  A hypothesis is an unproven (testable) proposition or a possible solution to a problem:  A hypothesis should contain measurable variables  A hypothesis should be assertive and be able to provide information that will be useful in decision-making  E.g. if consumers’ attitudes towards a product change in a positive way, consumption of the product will increase Examples of RQ & Hypotheses  RQ – what are the customers’ preferences and behaviour regarding offline and online purchases?  H1 – The customers prefer to purchase books online rather than in -brick-andmortar stores  H2 – younger people tend to make purchases online more frequently than older people  H3 – brand image significantly increase brand loyalty

Decision-Orientated Research Objectives  The research objective is the researcher’s version of the marketing problem as it:  Explains the purpose of the research in measurable terms  Defines standards for what the research should accomplish

 Influences decisions about the research design

Translating Marketing Problems to Research Objectives Management Research Question Research Objectives Problem To measure current and Are our consumers Should Retailers potential customers’ comfortable with online Offer Online attitudes and beliefs about shopping? Shopping purchasing our products Services? online Which is the Best Way to Offer Our Service?

How do consumers react to service from A?, B? and C? What are the perceived benefits from each?

Which market Segment, if any, Should We Target?

To obtain ratings and rankings of each service form Identify perceived benefits and flaws of each form

How do we identify segments?

To measure purchase intention, to estimate likelihood of purchase

How often will consumers use our service? How do groups differ in usage?

To compare knowledge and intentions amongst groups...


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