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Recap. What is Marketing Research? Why do Organizations Need Market Research? What sort of information is needed – generally? Why and When does Marketing Research Work? What is the Marketing Research Process. The Marketing Research Process.
What is Marketing Research?
Why do Organizations Need Market Research?
What sort of information is needed – generally?
Why and When does Marketing Research Work?
What is the Marketing Research Process
Step 1: Identify and define the Problem or Opportunity
Step 2: Define the Marketing Research Problem
Step 3: Specify the Research Design
Step 4: Develop the Data Collection Procedure
Step 5: Design the Sampling Procedure
Step 6: Collect the Data
Step 7: Process and Analyze the Data
Step 8: Present the Results
Step 9: Follow-up
Link between the decision process and the research process
The Management Problem
the Marketing Research Problem
A distinction must be made between the management problem and the marketing researchproblem.
What Question Does the Management decision Problem ask?
What should the decision maker do?
Moti Italian restaurant sales are low (the symptom) and if they remain at current levels the restaurant will soon go out of business. What broadly is the management decision problem?
What should the restaurant do to improve sales?
Is this enough?
(e.g. sales targets, market share, profitability, ROI)
Why is it important to clearly define the management decision problem?
A statement of the objective of the research and the information needed to make a sound decision
Examples of the Relationship between Decision Problems and Research Problems
How should we develop a package for a new product
Increase market penetration through
the opening of new stores
Increase store traffic
Increase amount of repeat purchasing
What should be done to increase market share of product
Allocate advertising budget geographically
Introduce new product
Evaluate effectiveness of alternative package designs
Evaluate prospective locations
Measure current image of the store
Assess current amount of repeat purchasing behavior
Determine the relative strengths and weakness of the product with respect to competitors
Determine current level of market penetration in the respective areas
Test likely acceptance of the new product Assess probable market size and share.
Marketing Research Problem:
What information is needed to answer this question?
What can we say about restaurant patrons that makes them go out to dinner to an Italian restaurant and spend money? I.e. what’s our theory?
People who go out to restaurants like a wide menu selection at a convenient location and demand good tasting food, good service, at a reasonable price.
make a list of the information that should be collected for each research question and hypothesis
In 2002, Westjet added service to two new Ontario destinations, London and Toronto. As Westjet expanded into Eastern Canada it began to run into competition from Montreal-based discount carrier Jetsgo, which started in 2002.
In 2003 Jetsgo expanded into Western Canada to compete directly on flights between Calgary and Toronto and Montreal. In the first six months of 2004, Westjet’s net earnings were $8.0 million compared to $15.5 million during the first six months of 2003. Both Jetsgo and Westjet modeled themselves on the highly successful US Carrier Southwest Airlines. Both airlines offered the same schedules, the same service, and the same fares. With little to differentiate the two airlines Westjet began to look at a way to increase passenger loyalty especially on the longer haul domestic flights.
How to attract more loyal customers
Marketing Research Problem
Identify the factors that influence loyalty of airline passengers
Exploratory research revealed that the consumer’s choice of an airline is influenced by safety, ticket price, frequent flyer program, convenience of scheduling and brand name.
A theoretical model stipulated that consumers evaluate competing airlines based on factors of the choice criteria to select a preferred airline. Since both airlines offer the same schedules, same service, and fares Westjet had to find a way to differentiate itself,
Secondary data, like the J. D. Power and Associates survey on “current and future trends in the airline food industry” indicated that “food service is a major contributor to customer loyalty”. This survey also emphasized the importance of food brands.
Westjet then conducted a survey to evaluate the importance of food service to its customers
RQ1 How important is food for the 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.
Characteristics which influence the research design will include the identification of competing airlines, factors of the choice criteria (already identified) measurement of airline travel loyalty.
This kind of research helped Westjet to define their marketing research problem and approach. Focus groups and surveys were conducted to check customers perceptions of food in Westjet aircraft. The results provided support for all the hypotheses.
Westjet Airlines then made a few changes: new “culinary menus” larger portions of food, new coffee and branded products, eg. Bernard Callebaut chocolates.. This has resulted in better service increasing customer satisfaction fostering loyalty.
The survey conducted by Westjet told them that “customers wanted more varied and up-to-date food”