Problem Definition

1. Problem Definition Chapter 2

2. Figure 2.7 Errors in Defining the Market Research Problem

3. Figure 2.8 Proper Definition of the Marketing Research Problem

4. Figure 2.9 Development of Research Questio1ns and Hypothesis

5. Problem Definition A broad statement of the general problem and identification of the specific components of the marketing research problem.

6. Understanding the Context

7. Environmental Context Past information and forecasts Industry and firm Objectives of decision-maker Buyer behavior Firm resources External environment Firm skills

8. Two Types of Problems Management Decision Problem The problem facing the decision-maker. Should our advertising campaign be changed? Marketing Research Problem What information is needed? How can the information be obtained? Determine the effectiveness of the current advertising campaign

10. Define the Marketing Management Problem and Research Objectives Management Decision Problem: Symptoms of failure to achieve an objective are present. Symptoms of the likelihood of achieving an objective are present (opportunity identification). Marketing Research Problem: Providing relevant, accurate, and unbiased information that managers can use to solve their marketing management problems

11. Defining the Problem: Questions the Researcher Should ask the Manager Symptoms of the problem? Manager’s situation? Information the manager has about the situation? Suspected causes of the problem? Possible solutions to the problem? Anticipated consequences of the problem? Manager’s assumptions about any of the prior categories?

12. Examples

13. Defining the Marketing Management Problem Assess Manager’s Situation Background of the product/service; company history, overall mission, marketing plans, managers objectives and her/his resources, etc. Clarify Symptoms Symptoms are changes in the level of a key monitor that measures the achievement of an objective and their causes. Sales volume, market share, profit, dealer orders, complaints, and competitors’ actions

14. Pinpoint suspected causes of the problem. Eliminating a symptom does not solve the problem. For every problem, an underlying cause can be found. A probable cause differs from a possible cause. Important to list all possibilities first. Specify actions that may alleviate the problem. Solutions include any marketing action that may resolve the problem. Defining the Marketing Management Problem …(contd.)

15. Speculate on anticipated consequences of the action. What will be the impact not only on the problem at hand but also throughout the marketing program if a specific marketing action is implemented? What additional problems will be created if a proposed solution to the current problem is implemented? Defining the Marketing Management Problem…(contd.)

16. Identify the manager’s assumptions about the consequences. Assumptions are assertions that certain conditions exist or that certain reactions will take place if the considered actions are implemented. Assumptions are the glue that holds the decision problem together. Research will help eliminate a manager’s uncertainty. Defining the Marketing Management Problem…(contd.)

17. Assess the adequacy of information on hand to specify research objectives. Information State: quantity and quality of evidence a manager possesses for each assumption Information Gaps: discrepancies between the current information level and the desired level of information at which a manager feels comfortable resolving the problem at hand Manager and researcher come to agree on research objectives based on the information gaps. Defining the Marketing Management Problem…(contd.)

18. Formulate the Marketing Research Approach Research should be based on objective evidence and supported by theory. Objectivity Theory How the world works Comes from academic research

19. Constructs and Operational Definitions A construct is a marketing term or concept that is involved in the marketing management problem. An operational definition describes how the researcher will measure a construct.

20. Constructs and Operational Definitions: Examples Constructs Operational Definition Brand awareness Percentage of respondents having heard of a designated brand; unaided or aided. Attitudes toward a brand The number of respondents and their intensity of feeling positive or negative toward a specific brand. Intentions to purchase The number of people who are planning to buy the specified object (e.g., product or service) within a designated time period. Importance of factors What factors and their intensity influence a person’s purchase choice. Demographic characteristics The age, gender, occupation status, income level, and so forth of individuals providing the information.

21. Relationships: A relationship is a meaningful link believed to exist between two constructs (lower price is related to greater sales, higher exposure is related to greater awareness, etc.). Model: A model connects constructs with understandable logic Relationships and Models

22. Models Theories can be represented in a number of ways that are useful in research projects. Analytical models Verbal models Graphical models Mathematical models

23. Model: Examples

25. Research Questions Research questions are refined statements of the components of the research problem. Identify the specific information required to address each component of the research problem RQ: Do people have misconceptions about beef?

26. Hypotheses Hypotheses are unproven statements about a factor or phenomenon? H1: Beef is perceived as bad for you. H2: Beef is perceived as being dangerous. H3: Beef is too high in fat.

27. Figure 2.3 The Problem Definition and Approach Development Process