Chapter Two
Defining the Marketing Research
Problem and Developing an
Approach
Chain Restaurant Study
One day I received a phone
call from a research analyst
who introduced himself as
one of our alumni.
He was working for a
restaurant chain in town
and wanted help analyzing
the data he had collected
while conducting a
marketing research study.
Chain Restaurant Study
When we met, he presented me with a copy of the
questionnaire and asked how he should analyze the
data. My first question to him was,
Chain Restaurant Study
When he looked
perplexed, I
explained that data
analysis is not an
independent
exercise.
Rather, the goal of data analysis is to PROVIDE
INFORMATION RELATED TO THE PROBLEM
COMPONENTS.
Chain Restaurant Study
I was surprised to learn that he did
not have a clear understanding of the
marketing research problem and that
a written definition did not exist. So
before going any further, I had to
the marketing research
problem.
Once that was done, I found that much
of the data collected was not relevant to
the problem. In this sense, the whole
study was a waste of resources. A new
study had to be designed and
implemented to address the problem
defined.
The Problem Definition Process
Tasks Involved
Discussion Interviews Secondary Qualitative
with with Data Research
Decision Maker(s) Experts Analysis
Environmental Context of the Problem
Step I: Problem Definition
Management Decision Problem
Marketing Research Problem
Step II: Approach to the Problem
Analytical Specification
Objective/ Model: Verbal, Research of
Theoretical Hypotheses
Graphical, Questions Information
Foundations
Mathematical Needed
Step III: Research Design
Tasks Involved in Problem Definition
• Discussions with Decision Makers
• Interviews with Industry Experts
• Secondary Data Analysis
• Qualitative Research
The Problem Definition Process
Tasks Involved
Discussion Interviews Secondary Qualitative
with with Data Research
Decision Maker(s) Experts Analysis
Environmental Context of the Problem
Step I: Problem Definition
Management Decision Problem
Marketing Research Problem
Step II: Approach to the Problem
Analytical Specification
Objective/ Model: Verbal, Research of
Theoretical Hypotheses
Graphical, Questions Information
Foundations
Mathematical Needed
Step III: Research Design
The Problem Audit
The problem audit is a comprehensive examination of a marketing problem
with the purpose of understanding its origin and nature.
1. The events that led to the decision that action is needed,
or the history of the problem
2. The alternative courses of action available to the DM
3. The criteria that will be used to evaluate the alternative courses of
action
4. The potential actions that are likely to be suggested based on the
research findings
5. The information that is needed to answer the DM's questions
6. The manner in which the DM will use each item of information in
making the decision
7. The corporate culture as it relates to decision making
Management Decision Problem Vs. Marketing Research Problem
Management Decision Problem Marketing Research Problem
Should a new product be To determine consumer preferences
introduced? and purchase intentions for the
proposed new product
Should the advertising To determine the effectiveness
campaign be changed? of the current advertising
campaign
Should the price of the To determine the price elasticity
brand be increased? of demand and the impact on sales
and profits of various levels
of price changes
Department Store Project
Problem Definition
In the department store project, the marketing research problem is to
determine the relative strengths and weaknesses of Sears, 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 1?
3. Which stores are patronized when shopping for specific
product categories?
4. What is the market share of Sears and its competitors for
specific product categories?
5. What is the demographic and psychological profile of the
customers of Sears? Does it differ from the profile of customers
of competing stores?
A good way to link the broad statement of the marketing research
problem with the management decision problem is through the
use of a conceptual map. A conceptual map involves the
following three components:
• Management wants to (take an action).
• Therefore, we should study (topic).
• So that we can explain (question).
An example of the conceptual map for AT&T follows:
1. Management wants to (develop retention programs that
will retain 90 percent of heavy users of wireless services
and lead to 10 percent higher sales over the next 2 years).
2. Therefore, we should study (heavy-user loyalty).
3. So that we can explain (what will be the most important
variables in retaining these customers over the next 2 years).
Theoretical framework
• research should be based on objective
evidence and supported by theory.
• A theory is a conceptual scheme based on
foundational statements called axioms, which
are assumed to be true.
• Objective evidence (evidence that is unbiased
and supported by empirical findings) is
gathered by compiling relevant findings from
secondary sources.
Theoretical framework
• An appropriate theory to guide the research
might be identified by reviewing academic
literature contained in books, journals, and
monographs.
=> The researcher should rely on theory to
determine which variables should be
investigated.
Consumer Behavior Theories
•Theory of Planned Behavior (TPB):
• Explains how consumer intentions influence behavior
based on attitudes, subjective norms, and perceived
behavioral control.
•Consumer Decision-Making Models:
• Focus on the process consumers go through when
making purchasing decisions (e.g., need recognition,
information search, evaluation of alternatives, purchase
decision, post-purchase behavior).
•Motivation-Need Theories (Maslow’s Hierarchy):
• Assesses consumer needs and motivations, often used to
understand why consumers prioritize certain products or
services.
Attitude and Perception Theories
•Elaboration Likelihood Model (ELM):
• Analyzes how consumers process persuasive messages
via central (logical) or peripheral (emotional) routes.
•Cognitive Dissonance Theory:
• Explains how consumers react when they experience
inconsistency between their beliefs and behaviors, often
applied in post-purchase evaluations.
Social Influence and Network Theories
•Social Identity Theory:
• Examines how group affiliations (e.g., brand communities)
influence consumer behavior.
•Diffusion of Innovations (Rogers):
• Describes how new ideas, products, or services spread
through markets, focusing on early adopters, opinion
leaders, and market penetration.
Brand and Relationship Theories
•Brand Equity Theory:
• Measures the value of a brand based on consumer
perceptions, loyalty, and brand awareness.
•Relationship Marketing Theory:
• Focuses on building long-term relationships with
consumers through engagement, loyalty programs, and
personalization.
Marketing Mix Theories
•4 Ps (Product, Price, Place, Promotion):
• Guides how businesses structure their marketing
strategies by optimizing product offerings, pricing
strategies, distribution channels, and promotional efforts.
•Service Marketing Mix (7 Ps):
• Adds People, Process, and Physical Evidence to the
traditional 4 Ps for service-based businesses.
Customer Experience Theories
•Customer Journey Mapping:
• Visualizes the complete customer experience, from
awareness to post-purchase, and helps optimize each
interaction point.
•Experience Economy Theory (Pine & Gilmore):
• Suggests businesses must provide memorable
experiences, not just products or services, to create
value for customers.
Proper Definition of the Research Problem
Marketing Research
Problem
Broad Statement
Specific Components
Components of an Approach
§ Objective/Theoretical Foundations
§ Research Questions
§ Analytical Model
§ Hypotheses
§ Specification of the Information Needed
The Role of Theory in Applied Marketing
Research
Research Task Role of Theory
1. Conceptualizing Provides a conceptual foundation and understanding of the basic processes
and identifying underlying the problem situation. These processes will suggest key dependent
key variables and independent variables.
2. Operationalizing Theoretical constructs (variables) can suggest independent and dependent
key variables variables naturally occurring in the real world.
3. Selecting a Causal or associative relationships suggested by the theory may indicate whether
research design a causal or descriptive design should be adopted.
4. Selecting a The theoretical framework may be useful in defining the population and
sample suggesting variables for qualifying respondents, imposing quotas, or stratifying
the population (see Chapter 11).
5. Analyzing and The theoretical framework (and the models, research questions and hypotheses
interpreting data based on it) guide the selection of a data analysis strategy and the interpretation
of results (see Chapter 14).
6. Integrating The findings obtained in the research project can be interpreted in the light of
findings previous research and integrated with the existing body of knowledge.
Development of Research
Questions and Hypotheses
Components of the
Marketing Research Problem
Objective/
Theoretical
Framework
Research Questions
Analytical
Model
Hypotheses
Research Questions and Hypotheses
• Research questions (RQs) are refined
statements of the specific components of
the problem.
• A hypothesis (H) is an unproven statement
or proposition about a factor or
phenomenon that is of interest to the
researcher. Often, a hypothesis is a
possible answer to the research question.