The Marketing Research Process

TYPES OF RESEARCHTYPES OF RESEARCH

• EXPLORATORY

• DESCRIPTIVE

• CAUSAL

Exploratory Research(Unaware of Problem)

“Our sales are declining and we don’t know why.”

“Would people be interested in our new product idea?”

DEGREE OF PROBLEM DEFINITIONDEGREE OF PROBLEM DEFINITIONpo

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Exploratory Research Descriptive Research(Unaware of Problem)(Aware of Problem)

“Our sales are declining and “What kind of people are buying we don’t know why.” our product? Who buys our

competitor’s product?” “Would people be interested in our new product idea?” “What features do buyers prefer

in our product?”

DEGREE OF PROBLEM DEFINITIONDEGREE OF PROBLEM DEFINITIONpo

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Exploratory Research Descriptive Research Causal Research(Unaware of Problem)(Aware of Problem) (Problem Clearly Defined)

“Our sales are declining and “What kind of people are buying “Will buyers purchase more of we don’t know why.” our product? Who buys our our products in a new package?

competitor’s product?” “Would people be interested “Which of two advertising in our new product idea?” “What features do buyers prefer campaigns is more effective?”

in our product?”

DEGREE OF PROBLEM DEFINITIONDEGREE OF PROBLEM DEFINITIONpo

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COMPLETELYCERTAIN

ABSOLUTEAMBIGUITY

CAUSAL ORDESCRIPTIVE

EXPLORATORY

UNCERTAINTY INFLUENCES UNCERTAINTY INFLUENCES THE TYPE OF RESEARCHTHE TYPE OF RESEARCH

EXPLORATORY RESEARCHEXPLORATORY RESEARCH

• INITIAL RESEARCH CONDUCTED TO CLARIFY AND DEFINE THE NATURE OF A PROBLEM

• DOES NOT PROVIDE CONCLUSIVE EVIDENCE

• SUBSEQUENT RESEARCH EXPECTED

EXPLORATORY RESEARCH EXPLORATORY RESEARCH TECHNIQUESTECHNIQUES

• SECONDARY DATA (HISTORICAL DATA)

• PILOT STUDY/FOCUS GROUPS

• EXPERIENCE SURVEY

DESCRIPTIVE RESEARCHDESCRIPTIVE RESEARCH

• DESCRIBES CHARACTERISTICS OF A POPULATION OR PHENOMENON

• SOME UNDERSTANDING OF THE NATURE OF THE PROBLEM

I keep six honest serving men, (they taught me I keep six honest serving men, (they taught me all I knew), their names are what, and why, and all I knew), their names are what, and why, and when, and how, and where and who.” when, and how, and where and who.” --Rudyard Kipling--Rudyard Kipling

CAUSAL RESEARCHCAUSAL RESEARCHThe HypothesisThe Hypothesis

• AN UNPROVEN PROPOSITION

• A POSSIBLE SOLUTION TO A PROBLEM

• GUESS

CAUSAL RESEARCHCAUSAL RESEARCH

• CONDUCTED TO IDENTIFY CAUSE AND EFFECT RELATIONSHIPS

• CONDUCT EXPERIMENTS ON PEOPLE

– Treat People Differently and See How They Respond

– Notice if There are Differences Based on Variables You Can Not Control

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Exploratory Research

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Exploratory Research

“In twenty five years, involved in the care of patients with lung cancer, more than 3000 cases, taking a careful history of smoking in all patients, I have never seen a case of small cell lung cancer in a

non-smoker; nor have I ever seen a case of large cell undifferentiated lung cancer in a non-smoker. I have seen one case of squamous

cancer in a non-smoker.” Frederic W. Grannis Jr. M.D

http://ourworld.compuserve.com/homepages/LungCancer/

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Descriptive Research

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Descriptive Research

Gather Information on Smoking and Lung Cancer

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Descriptive Research

Gather Information on Smoking and Lung Cancer

Survey Results

Smoke Do Not SmokeHave LungCancer

500 50

Do Not HaveLung Cancer

1000 1950

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Does the Survey Show Smoking Causes Cancer?

• What are the possible Hypotheses/Interpretations?

– Smoking Causes Cancer

– Lung Cancer Causes Smoking

– People Who Tend to Like Smoking Also Tend to Get Cancer

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Causal Research

• Experimental Design Approach

– Randomly Select Individuals from a Population

– Randomly Divide the into Two Groups

– Force People in One Group to Smoke Regularly, Force Other Group to Never Smoke

Does Smoking Cause Cancer?Does Smoking Cause Cancer?

• Causal Research

• Scientific Approach

– Scientists have worked on demonstrated that at a molecular level cancer is caused by carcinogens contained in tobacco,

““The formulation of the problem The formulation of the problem is often more essential than its is often more essential than its

solution”solution”

Albert Einstein

Defining the Problem Results in Defining the Problem Results in Clear Cut Research ObjectivesClear Cut Research Objectives

Symptom Detection

Problem Definition

Statement of Research Objectives

Analysis of the SituationExploratory Research

(Optional)

RESEARCH PROPOSALRESEARCH PROPOSAL

• A WRITTEN STATEMENT OF THE RESEARCH DESIGN THAT INCLUDES A STATEMENT EXPLAINING THE PURPOSE OF THE STUDY.

• DETAILED OUTLINE OF PROCEDURES ASSOCIATED WITH A PARTICULAR METHODOLOGY

Problem DefinitionOrganization Symptoms Based on Symptom True Problem

Twenty-year-old neighborhood swimming association in a major city.

Membership has been declining for years. New water park with wave pool and water slides moved into town a few years ago.

Neighborhood residents prefer the expensive water park and have negative image of swimming pool.

Demographic changes: Children in this 20-year-old neighborhood have grown up. Older residents no longer swim anywhere.

Review

Remember Exam #1

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