CHAPTER-2

FORMULATION OF THE RESEARCH PROBLEM

&

DEVELOPMENT OF THE RESEARCH HYPOTHESES

RESEARCH CONCEPTS AND

 SLIDE 2-1
DEFINING THE RESEARCH PROBLEM

A research problem can be defined as a gap or uncertainty in the decision

makers’ existing body of knowledge which inhibits efficient decision
making. The gap could be academic & theoretical (basic) or real time
and action oriented (applied).

RESEARCH CONCEPTS AND

 SLIDE 2-2
PROBLEM IDENTIFICATION PROCESS
Management Decision Problem

Discussions Review of Organization Qualitative

with subject existing Analysis analysis
experts literature

Management Research Problem / Question

Research framework / Analytical model

Statement of Research Objectives

Formulation of Research Hypothesis

RESEARCH CONCEPTS AND


DECISION PROBLEMS
DECISION PROBLEM
1. What should be done to increase the
customer base of organic products in the
domestic market?
2. How to reduce turnover rates in the BPO
sector?
3. How to improve the delivery process of
Widex hearing aids in India?
4. Should the company continue with its
existing security services vendor or look at an
alternative?
5. Can the Housing and real estate growth be
accelerated?
6. Whom should ICICI choose as its next
Managing director- Mr ABC or Mrs. XYZ?
RESEARCH CONCEPTS AND
SLIDE 2-3
RESEARCH PROBLEMS
RESEARCH PROBLEM*
1. What is the awareness and purchase
intention of health conscious consumers for
organic products?
2. What is the impact of shift duties on work
exhaustion and turnover intentions of the BPO
employees?
3. How does Widex/ industry leader manage its
supply chain in India/Asia?
4. What is the satisfaction level of the company
with the existing vendor? Are there any gaps?
Can they be effectively handled by the vendor?
5. What is the current investment in Real Estate
and Housing? Can the demand in the sector be
forecasted for the next six months?
6a. what has been the Leadership initiatives
and performance record of ABC viz. XYZ?
6b. Can a leading aggressive private sector
bank accept a woman as its leader?
MANAGEMENT DECISION PROBLEM
MARKETING RESEARCH PROBLEM

• Management Decision Problem Marketing Research Problem

MD-Should a new product be introduced?

RP- To determine consumer preferences and purchase intentions
for the proposed new product.
MD- Should the advertising campaign be changed?
RP- To determine the effectiveness of the current advertising
campaign.
 SLIDE 2-4
PROBLEM IDENTIFICATION PROCESS

• Management decision problem: the issue/decision that needs to be resolved

through research

• Discussion with experts: to get the right perspective on the issue,

discussion/dialogue isheld with subject/industry expert.

• Review of literature: the most valuable source of framing the research

question is to review the past work done on related topic(s).
• Qualitative surveys: primary exploratory loosely structured surveys to attain
the environmental context.

RESEARCH CONCEPTS AND

 SLIDE 2-5
PROBLEM IDENTIFICATION PROCESS

• Management research problem: the four steps might lead to multiple

directions/research problems the researcher can take.
• The researcher has to identify THE alternative he/she will undertake

• Theoretical model building (optional)

• Statement of research objectives

RESEARCH CONCEPTS AND

UNITED AIRLINES

• United Airlines, as other major airlines, had to deal with

passenger loyalty (management decision problem: how to
attract more and more loyal passengers).
• The broad marketing research problem was to identify the
factors that influence loyalty of airline travelers .
IMPROVE SERVICE

• The basic answer is to improve service.

• Exploratory research, theoretical framework, and empirical
evidence revealed that the consumers’ choice of an airline is
influenced by: safety, price of the ticket, frequent-flyer
program, convenience of scheduling, and brand name.
MODEL

• A graphical model stipulated that consumers evaluate competing

airlines based on factors of the choice criteria to select a preferred
airline.
• The problem was that major airlines were quite similar on these
factors. Indeed, "airlines offer the same schedules, the same
service, and the same fares.”
• Consequently, United Airlines had to find a way to differentiate
itself.
• Food turned out to be the solution.
DATA

• Secondary data, like the J. D Power & Associates' survey on

"current and future trends in airline food industry,"
indicated that "food service is a major contributor to
customers’ loyalty." This survey also emphasized the
importance of food brands
• The airline's Market survey told United Airlines that "customers
wanted more varied and up-to-date food.”
• The following research questions and hypotheses may be posed.
• RQ1 How important is food for airline customers?
• H1: Food is an important factor for airline travelers.
• H2: Travelers value branded food.
• H3: Travelers prefer larger food portions, but with consistent quality.
• H4: Travelers prefer exotic food.
RESEARCH DESIGN

• Characteristics which influence the research design

included the identification of competing airlines (Delta,
American, etc.), factors of the choice criteria (already
identified), measurement of airline travel, and loyalty.
• This kind of research helped United Airlines to define their
marketing research problem, and develop the approach.
Focus groups and surveys were conducted to check
customers' perceptions of food in United Airlines' aircraft.
The results provided support for all the hypotheses (H1 to
H4). United Airlines then made a few changes: new "culinary
menus," larger portions of food, new coffee, and branded
products (e.g., Godiva chocolates). This resulted in better
service, increasing customer satisfaction and fostering loyalty.
 SLIDE 2-6
ELEMENTS OF A RESEARCH PROBLEM

• Unit of analysis

• Independent variable

• Dependent variable

• Extraneous independent variable

• Intervening variables

• Moderating variables

RESEARCH CONCEPTS AND

A Variable: Property Being Studied

Event Act

Variable
Variable

Characteristic Trait

Attribute

3-16
Types of Variables

Male/Female
Dichotomous
Dichotomous
Male/Female
Employed/
Employed/Unemployed
Unemployed

Ethnic
Ethnicbackground
background
Discrete
Discrete Educational
Educationallevel
level
Religious
Religiousaffiliation
affiliation

Income
Income
Temperature
Continuous
Continuous Temperature
Age
Age

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 Independent and Dependent Variable Synonyms

Independent Variable (IV) Dependent Variable (DV)

• Predictor • Criterion
• Presumed cause • Presumed effect
• Stimulus • Response
• Predicted from… • Predicted to….
• Antecedent • Consequence
• Manipulated • Measured outcome

3-18
Relationships Among Variable Types

3-19
Relationships Among Variable Types

3-20
Relationships Among Variable Types

3-21
 Moderating Variables (MV)

• The introduction of a four-day week (IV) will lead to higher

productivity (DV), especially among younger workers (MV)

• The switch to commission from a salary compensation system

will lead to increased sales per worker, especially more
experienced workers

• The loss of mining jobs leads to acceptance of higher-risk

behaviors to earn a family-supporting income – particularly
among those with a limited education

3-22
• The switch to commission from a salary compensation
system (IV) will lead to increased sales (DV) per worker,
especially more experienced workers (MV).
• The loss of mining jobs (IV) leads to acceptance of higher-
risk behaviors to earn a family-supporting income (DV) –
particularly among those with a limited education (MV).
 Intervening Variables (IVV)

• The switch to a commission compensation system

(IV) will lead to higher sales (DV) by increasing
overall compensation (IVV).

• A promotion campaign will increase savings activity

especially when free prizes are offered .The results
come from enhancing the motivation to save

3-24
•A promotion campaign (IV) will increase savings activity (DV),
especially when free prizes are offered (MV), but chiefly among
smaller savers (EV-control). The results come from enhancing the
motivation to save (IVV).

3-25
Propositions and Hypotheses

• Brand Manager Jones (case) has a higher-than-average achievement

motivation (variable).

Generalization
• Brand managers in Company Z (cases) have a higher-than-average
achievement motivation (variable).

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 SLIDE 2-7

THE RESEARCH HYPOTHESES

A hypotheses is any assumption/presupposition that the researcher makes about
the probable direction of the results that might be obtained on the completion
of the research process
• Descriptive hypotheses: This is simply a statement about the magnitude,
trend, or behaviour of a population under study.
• Relational hypotheses: These are the typical kind of hypotheses which state
the expected relationship between two variables.

RESEARCH CONCEPTS AND

 END OF
CHAPTER

RESEARCH CONCEPTS AND

• In the department store project, the marketing research problem is to determine the relative strengths
and weaknesses of Big Bazaars, vis-à-vis other major competitors, with respect to factors that
influence store patronage. Specifically, research should provide information on the following
questions.
• 1. What criteria do households use when selecting department stores?
• 2. How do households evaluate Sears and competing stores in terms of the choice criteria identified in
question ?
• 3. Which stores are patronized when shopping for specific product categories?
• 4. What is the market share of Big bazaar and its competitors for specific product categories?
• 5. What is the demographic and psychological profile of the customers of Big Bazaar?
• 6.Does it differ from the profile of customers of competing stores?
• 7.Can store patronage and preference be explained in terms of store evaluations and customer
characteristics?