The Research Process and Problem Formulation

1
The Research Process and Problem Formulation

• Dr. John T. Drea
• Professor of Marketing
• Western Illinois University

2
Steps in the Marketing Research Process
(Churchill and Iacobucci)

• Formulate the Problem
• Determine the Research Design
• Design the Data Collection Method and Forms
• Design the Sample and Collect Data
• Analyze and Interpret the Data
• Prepare the Research Report

3
Question to ask in the research process

• Why should we do research? (helps establish
  research purpose)
• What is the real problem?
• Example Compton Corporation Advertising
• Example When Citrus Hill left the market
• To make sure you and the decision maker are in
  agreement, write a statement of the research
  problem.

4
Problem Definition

• Actions What actions will be considered on the
  basis of the research?
• Origin How did we get in this position?
• Information What questions does the decision
  maker need answered?
• Use How will each piece of information be used?
• Targets and subgroups From whom will we collect
  this information?
• Logistics What will it cost to do this?

5
Question to ask in the research process

• What are the alternatives currently considered?
  That is, what actions would the organization be
  willing to take to solve the problem?
• What research should be done?
• Specify the research question the information
  the decision maker needs.
• Specify the hypotheses alternative answers to
  the research question.

6
Writing Hypotheses

• Hypotheses can be developed using information
  from three sources
• Theory
• Management experience
• Exploratory research

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Question to ask in the research process

• Is it worth doing the research?
• Bayesian analysis can help here
• How should the research be done to achieve the
  research objectives?
• primary vs. secondary data
• problem specification techniques
• survey vs. experiment
• data collection methodology
• What will we do with the results?

8
International Issues in Business Research

• Issue 1 Different and diverse environmental
  contexts
• e.g., mature, sophisticated markets (US, Western
  Europe)
• Rapidly changing markets (Hong Kong, South Korea)
• Developing markets (India, Brazil)
• Transforming markets (Eastern Europe, Russia)
• Less developed markets (Africa)

9
International Issues in Business Research

• Issue 2 Self-Reference Criterion
• Incorrectly assuming that the same variables
  which are relevant in once nation are relevant in
  others.
• It is the underlying factors - cultural, social,
  governmental

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International Issues in Business Research

• Issue 3 Foreign Market Opportunity Analysis
• Questions that can be asked
• Do opportunities exist in foreign markets for our
  products and services
• Which foreign markets warrant investigation?
• What are the major economic, political, legal and
  environmental factors and trends in each of the
  potential countries? (CIA World Factbook)
• What mode of entry would be used to enter the
  market?
• What is the market potential in these countries?
• What is the nature of competition in foreign
  markets?