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The Importance of Properly Defining the Problem • Properly defining the problem is the most important step in the marketing research process.. The Role of the Researcher in Problem Defin

Defining the Problem

and Determining Research Objectives

The Importance of Properly

Defining the Problem

• Properly defining the problem is the most important step in the marketing research process

• If the wrong problem is defined, all

the remaining steps in the marketing research process are wrong

Define the Problem

• Two sources of problems:

– A problem exists when a gap exists between what was supposed to

happen and what did happen, i.e., failure to meet an objective

– An opportunity occurs when there

is a gap between what did happen and what could have happened…

called an opportunity.

Define the Problem

Recognizing the Problem

• To recognize a problem, managers must be knowledgeable of objectives and actual performance

• To be aware of opportunities,

managers must have a process for

monitoring opportunities, such as

opportunity identification

The Role of Symptoms in

The Role of Symptoms in

Problem Recognition

• Symptoms are changes in the level of some key monitor that measures the achievement of an objective

• The role of the symptom is to alert

management to a problem; there is a gap between what should be

happening and what is happening

The Role of the Researcher in

Problem Definition

• Researchers should ensure

managers are defining the problem correctly

• This is particularly true when the

manager has already defined the

problem in very specific terms

• Researchers sometimes take

additional investigations, known as a

“situation analysis,” to ensure the

Impediments to Problem

Definition

• Failure to change behavior for

problem definition situations

– Managers deal with outside

suppliers efficiently with little

interaction Marketing research

requires a great deal of interaction and communication

Impediments to Problem

Definition

• There are differences between

managers’ and researchers’

backgrounds

– Traditionally researchers were

technicians and managers were

trained in general decision making

– Today managers are much more

aware of technical software such

as using your SPSS

The Role of ITBs and RFPs

• When ITBs and RFPs are issued

management has already defined the problem

• Phony ITBs and RFPs present an

ethical problem in the marketing

research industry

Defining the Problem &

Establishing Research Objectives

• A Process:

– There is no universally accepted,

step-by-step approach used by marketing researchers to define the problem and establish research objectives

• “ Defining problems accurately is more

an art than a science.” – Lawrence D Gibson

Assess the Background and the

Manager’s Situation

• The researcher should first

understand the industry, the

competitors, and the company

• The researcher must understand the manager’s unique situation…

– Does the manager have a

particular objective?

– What constraints is the manager

operating under?

Clarify the Symptoms of the

Problem

• The researcher must understand the control system and determine what symptoms are being identified by the system

Pinpoint Suspected Causes of

the Symptom

• There’s always some cause or

causes for a change

• It is important to determine all

possible causes

• Researchers should narrow possible causes to a small set of probable

causes

University Estates – Problem

Definition & Research Objectives

• Situation: Last year, University

Estates (which targets mainly

university students) experienced a

decline in its occupancy rate from

100% to 80%

• Manager & Researcher brainstorm a

Wait! You give it a try.

University Estates – Problem

Definition & Research Objectives

• What are some possible cases for

University Estates’ Occupancy

Decline?

University Estates – Problem

Definition & Research Objectives

University Estates – Problem

Definition & Research Objectives

• What is/are the probable cause(s) for University Estates Occupancy Rate

Decline?

– Something that changed just

before or at the same time as the

symptom(s)

• If it did not change, how could it cause the symptom?

• Probable Causes for University Estates

Occupancy Rate Decline

University Estates – Problem

Definition & Research Objectives

Probable Cause

Probable Cause

Probable Cause

University Estates – Problem

Definition & Research Objectives

• What can University Estates do?

Add Satellite TV

150 channels

4 Premium channels Pay-for-view

Specify Possible Solutions that May Alleviate the Symptoms

• Possible solutions include any

marketing action that the marketing manager thinks may solve the

problem, such as price changes,

product modification, etc

Speculate on Anticipated

Consequences of the Solutions

• “What if” questions should be made regarding possible consequences of each marketing action being

considered

Identify Manager’s Assumptions about Solutions’ Consequences

• Assumptions are assertions that

certain conditions exist or certain

reactions will take place if considered solutions are implemented

• If the manager is completely certain

of assumptions there is no need for

research

Identify Manager’s Assumptions about Solutions’ Consequences

• For those uncertain assumptions,

research will eliminate a manager’s

uncertainty and therefore aid in

decision making

The Role of Hypotheses in

Defining the Problem

taken for true for the purposes of

argument or investigation

• Assumptions about the

consequences of solutions are

hypotheses

The Role of Hypotheses in

Defining the Problem

• When a manager makes a statement

or an assumption that he/she

believes to be true and wants

research to determine if there is

support for that statement, we call

this statement a hypothesis

Assess the Adequacy of Information on Hand

• To specify research objectives

– The information state should be

assessed

– The information state refers to the quantity and quality of evidence a manager possesses for each of his

Assess the Adequacy of Information on Hand

• To specify research objectives

– Information gaps are the basis for establishing research objectives

– Research objectives are set to

gather the specific bits of

knowledge that need to be

gathered in order to close the

information gaps

University Estates – Problem

Definition & Research Objectives

• Information Gaps (Management

Questions) and Research Objectives

for University Estates

Information Gap/Question Research Objective(s) How will prospective residents

react to the inclusion of the

satellite television programming

package with the base

apartment?

To what extent do prospective student residents want satellite television?

Will University Estates be more

competitive if it adds a satellite

– List the specific pieces of

information needed to answer the question

– Do this for each and every

management question

The Marketing Research

Proposal

• Three functions:

– It states the problem

– It specifies the research objectives.– It details the research method

proposed

• Proposals also contain a timetable

and a budget

operations to be carried out in

order for constructs to be

measured

The Role of Constructs

inferred from specific instances that are thought to be related

• Typical marketing constructs are

brand loyalty, satisfaction,

preference, awareness, knowledge

• Research objectives typically call for the measurement of constructs

• There are customary methods for

defining and measuring constructs

Question: Do you recall seeing an advertisement for Brand A?

Measure: Percentage who remember seeing a specific ad

Question: Indicate which of Brand A’s features you know about.

Measure: Percentage who know about each feature

Question: Are you “unfamiliar,” “somewhat familiar,” or “very familiar” with Brand A?

Measure: Percentage for each familiarity category

Question: For each product benefit statement, indicate if you agree or disagree.

Measure: Percentage who agree with each benefit statement

Question: Rate Brand A on a 1–5 scale, where 1 =

“poor” and 5 = “excellent”

Measure: Average rating

Question: What is the probability that you will buy Brand A the next time you purchase

this product?

Measure: Average probability

Question: Have you used Brand A in the past three months?

Measure: Percentage who have used it

Question: With your last five purchases of the product, how many times did you buy Brand A? Measure: Percentage of times

Question: Rate Brand A on a 1–5 scale, where 1 =

“unsatisfied” and 5 = “very satisfied”

Measure: Average rating

• A model is a logical arrangement of constructs and relationships based

on theory or experience

– Hierarchy of Effects

• Intention-Purchase-Loyalty

Unaware-Aware-Knowledge-Liking-– Importance-Performance Model

• Importance: Performance on attributes

– Segmentation Model

• Divide up the market based on demographics, etc.

– Company Performance Model

• Sum of evaluations on various attributes

Aware of your brand

Know something about your brand

Have a positive feeling about your brand

Intend to buy your brand next

Have purchased your brand in the past

What percentage of prospective student residents who know something about satellite television feel negatively, positively,

or neutral about having it in their apartment?

What percentage of prospective student residents who are positive about having satellite television in their apartment intend

to rent an apartment with it?

What percentage of the market purchased (tried) your brand in the past?

What percentage of the market has