FORMULATION OF A RESEARCH PROBLEM

AND

DEVELOPING AN APPROACH TO THE RESEARCH PROBLEM

Dr. Madan Lal

FORMULATION OF A RESEARCH PROBLEM

IMPORTANCE OF PROBLEM DEFINITION

1. A problem well defined is half solved 2. The formulation of the problem is often more essential than its solution. (Albert Einstein) 3. How the problem is framed determines what solution is obtained 4. The research problem drives subsequent stages of the research process 5. Proper problem definition ensures that the research results will meet decision makers objectives

Why important:A research can only be designed and conducted properly when the research problem has been clearly defined. If the problem is ill defined or misunderstood, it will lead only to waste of money time and effort. Inadequate problem definition can cause failure of research projects.

THE PROCESS OF DEFINING THE PROBLEM TASKS INVOLVED

DISCUSSION WITH DECISION MAKERS

INTERVIEW WITH EXPERTS

SECONDARY DATA ANALYSIS

QUALITATIVE RESEARCH

ENVIRONMENTAL CONTEXT OF THE PROBLEM

PROBLEM DEFINITION
MANAGEMENT DECISION PROBLEM MARKETING RESEARCH PROBLEM

APPROACH DEVELOPEMENT

TASKS INVOLVED
(1) DISCUSSIONS WITH DECISION MAKERS:PROBLEM AUDIT:- It provides a useful framework for interacting with the

DM and identifying the underlying causes of the problem. It is a comprehensive examination of a problem to understand its origin and nature. Interaction between the DM and the researcher should be characterized by seven Cs:COMMUNICATION CLOSENESS

COOPERATION

7C

CONTINUITY

CONFIDENCE

CREATIVITY

CANDOR-no hidden agenda

(2) INTERVIEW WITH INDUSTRY EXPERTS:Usually through unstructured personal interviews. The purpose is to help define the marketing research problem rather than to develop a conclusive solution. (3) SECONDARY DATA ANALYSIS:Secondary data:- Data collected for some purpose other than the problem at hand. Primary data:- Data originated by the researcher specifically to address the research problem. Analysis of available secondary data is an essential step in problem definition process. (4) QUALITATIVE RESEARCH:It is an unstructured exploratory research methodology based on small samples intended to provide insight and understanding of the problem setting. It utilizes popular techniques like focus groups, depth interviews (one to one ), pilot surveys , case studies etc. Pilot surveys:- surveys that tend to be less structured than large scale surveys in that they generally contain more open ended questions and the sample size is much smaller.

ENVIRONMENTAL CONTEXT OF THE PROBLEM

To understand the background of a marketing research problem, the researcher must understand the clients firm and industry. The researcher must analyze the factors that have an impact on the definition of the marketing research problem. The factors that encompass the environmental context of the problem are:PAST INFORMATION AND FORECASTS
TRENDS OF SALES, MARKET PROFITIBILITY, MARKET SHARE ETC. MONEY ,RESEARCH SKILLS ,COST, TIME ETC.

RESOURCES AND CONSTRAINTS

OBJECTIVES BUYER BEHAVIOR

NUMBER, GEOGRAPHICAL LOCATION, DEMOGRAPHIC AND PSYCOLOGICAL CAHARACTERSTICS, PRODUCT CONSUMPTION HABIT ETC. OF BUYERS

LEGAL ENVIRONMENT ECONOMIC ENVIRONMENT

MARKETING AND TECHNOLOGICAL SKILLS

PUBLIC POLICIES, LAWS, PATENTS,TRADEMARKS, TRADE AGREEMENTS , TAXES TARRIFS ETC.

PURCHASING POWER, GROSS INCOME, SAVINGS, CREDIT AVAILAIBILITY ETC.

MARKETING DECISION PROBLEM VS. MARKETING RESEARCH PROBLEM

The Marketing Decision Problem
The difference between the current marketing situation and a given desired situation, e.g. sales are not picking up for a new product as expected Usually indicated by symptoms Preliminary exploratory research is often needed to: Clarify and better understand the marketing problem, Understand possible causes of the marketing problem Determine what research information should be collected to help solve the problem Help define the research problem

MARKETING DECISION PROBLEM VS. MARKETING RESEARCH PROBLEM

The Marketing Research Problem The researchers translation of the marketing decision problem into a form that will guide the data collection effort and provide the required information to solve the marketing problem

COMPONENTS (CONTENTS) OF THE MKTING RESEARCH PROBLEM DEFINITION

1. Unit of analysis Target population from whom data is to be collected, e.g. individual consumers, households, retailers, organizational customers, etc

2. Key Variables, Constructs, and/or Concepts

Anything that may assume different values among members of the target population, e.g. age, level of satisfaction, etc

3. Research objectives (questions) stating what variables (constructs/concepts) will be measured for what units of analyses

Broad Objective Provides perspective (the big picture)

Specific Objectives Provide clear guidelines on how to proceed with the research

MANAGEMENT DECISION PROBLEM AND MARKETING RESEARCH PROBLEM MANAGEMENT DECISION PROBLEM:- The problem confronting the decision maker, it asks what the decision maker needs to do. 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 ASKS WHAT THE DECISION MAKER NEEDS TO DO ACTION ORIENTED FOCUSES ON SYMPTOMS MARKETING RESEARCH PROBLEM ASKS WHAT INFORMATION IS NEEDED AND HOW IT SHOULD BE OBTAINED. INFORMATION ORIENTED FOCUSES ON THE UNDERLYING CAUSES

Marketing Decision Problem Vs. Marketing Research Problem EXAMPLE:Marketing Decision Problem Should a new product be introduced? Marketing Research Problem To determine consumer preferences and purchase intentions for the proposed new product. To determine the effectiveness of the current advertising
campaign among the target audience.

Should the advertising campaign be changed?

Should the price of the brand be increased?

To determine the price elasticity of demand and the impact on sales and profits of various levels of price changes.

DEVELOPING AN APPROACH TO THE RESEARCH PROBLEM

COMPONENTS (OUTPUTS) OF THE APPROACH TO THE PROBLEM

1. Theoretical Foundations

2. Research Questions
3. Conceptual Model 4. Hypotheses 5. Specific Information to be Collected

1. Theoretical Foundations
Theory Generalizations that we make about constructs (or concepts and variables) and the relationships among them A set of systematically interrelated concepts, definitions, and propositions that are advanced to explain and predict phenomena (facts). Value of Theory
1. Summarizes what is known about an object of study 2. Narrows the range of facts we need to study 3. Suggests which research approaches will yield the greatest meaning 4. Predicts further facts that should be found 5. Suggests a system that can be imposed on data in order to classify them in meaningful ways

The Role of Theory in Applied Marketing Research

Research Task 1. Conceptualizing and identifying key variables Role of Theory Provides a conceptual foundation and understanding of the basic processes underlying the problem situation. These processes will suggest key dependent and independent variables Theoretical constructs (variables) can suggest independent and dependent variables naturally occurring in the real world. Causal or associative relationships suggested by the theory may indicate whether a causal or descriptive design should be adopted. The theoretical framework may be useful in defining the population and suggesting variables for qualifying respondents, imposing quotas, or stratifying the population The theoretical framework (and the models, research questions and hypotheses based on it) guide the selection of a data analysis strategy and the interpretation

2. Operationalizing key variables

3. Selecting a research design 4. Selecting a sample

5. Analyzing and interpreting data 6. Integrati ng findings

The findings obtained in the research project can be interpreted in the light of previous research and integrated with the existing body of knowledge.

 Research questions (RQs) refined statements of the specific components of the problem. A hypothesis (H) an unproven statement or proposition relating to the phenomenon of interest to the researcher; or to relationships among variables to be investigated.
Often, it is a possible answer to a research question. Hypotheses may be: Descriptive, or Relational Correlational, or Causal

2. Research Questions and Hypotheses

3. Analytical (Conceptual) Model

A simplified representation of a complex system; A representation constructed to study some aspects of a system or the system as a whole A set of variables and their interrelationships designed to represent, in whole or in part, some real system or process. Types of Analytical Models Verbal models Graphic models Mathematical

Verbal Models
Models in which the variables and their relationships are stated in prose form. Such models may be mere restatements of the main tenets of a theory.

E.g.
Consumers adopt products through a process starting from awareness, through interest, evaluation, preference formation, trial, purchase, and finally adoption.

Graphical Models Visual representations of key variables and

interrelationships. Used to isolate variables and to suggest directions of relationships but are not designed to provide numerical results.
Awareness

Understanding: Evaluation

Preference

Patronage

Mathematical Models
Models that explicitly specify relationships among variables, usually in equation form.
y a 0 a i xi
i 1 n

Where y = degree of preference X = factors that constitute the choice criteria a0, ai = model parameters to be estimated

Hypotheses
See conceptual model; For example,
H1a: There is a positive link between the SERVQUAL dimensions of responsiveness, assurance, reliability and empathy on one hand and satisfaction with service employees on the other. H1b: There is a positive link between the SERVQUAL dimension of tangibles and satisfaction with physical facilities of a service firm.

Developing Research Questions and Hypotheses

Components of the Marketing Research Problem Objective/ Theoretical Framework Analytical Model Hypotheses

Research Questions

Summary of the Beginning Stages of Marketing Research

Symptom of Marketing Problem Exploratory Research Initial understanding of Possible Causes of the Problem Marketing Decision Problem
The brand has an image problem How can we improve the brands image? Sales are not picking up for a new product/brand

Formulation of Research Problem

See next slide

Statement of Research Objectives

See next slide

Summary of the Beginning Stages of Marketing Research - Continued

Research Questions:

Research Objectives

1) What is the current image of our brand compared to competitors brands?

1) To determine our brands image compared to competitors brands.

2) What is the role of our price, packaging, distribution, advertising, etc on the current image of our brand? 3) Will a change in packaging lead to a positive change in image?

2) To determine the source of our current image problems.

3) To examine the specific role of packaging in the present image of our brand.

Concept : a concept is a generally accepted collection of meanings or characteristics associated with certain events, objects, conditions, situations and behaviors. Construct: a construct is an image or abstract idea specifically invented for a given research and/or theory building purpose. Variable : a variable is s symbol of an event, act, characteristic, trait or attitude that can be measured and to which we assign categorical values. Phenomenon : the way the things appear to our scene. Reality : what actually the things are Definition: