Chapter 2
The Market Research Process
Reference: Marko Sarstedt and Erik Moo (2019). A Concise Guide to
Market Research. The Process, Data, and Methods Using IBM SPSS
Statistic. Third Edition, Springer.
The Market Research Process
1. Defining the Research Problem
2. Developing the Research Plan
3. Data Collection
4. Data Analysis
5. Presenting the Findings
1. Defining the Research Problem
• The first and most critical step in the market research process is to clearly define the research problem. A
well-articulated problem statement sets the direction for the entire study and ensures that the research
addresses the right questions.
• Example:
• A smartphone manufacturer observes a decline in sales of its latest model. Instead of assuming potential
causes, the company defines the research problem as: "What factors are contributing to the decline in sales of
our latest smartphone model?"
2. Developing the Research Plan
• Once the problem is defined, the next step is to develop a comprehensive research plan.
• This involves selecting the research design, determining data collection methods, and formulating a sampling
strategy.
• Research Designs:
Exploratory Research: Used to gain insights and understand the nature of the problem
when little information is available.
Descriptive Research: Aims to describe characteristics of a population or phenomenon,
answering the "who," "what," "where," and "how" questions.
Causal Research: Seeks to identify cause-and-effect relationships between variables.
2. Developing the Research Plan
2. Developing the Research Plan
2. Developing the Research Plan
2.1. Exploratory Research
Exploratory research is employed when the research problem is not clearly defined or
understood. It aims to explore the research topic, gather preliminary data, and identify patterns or
ideas that can lead to more precise research questions.
• Characteristics:
Flexibility: Utilizes unstructured or semi-structured data collection methods.
Qualitative Focus: Often relies on qualitative data to gain deeper insights.
Foundation Building: Lays the groundwork for subsequent, more conclusive
research.
2. Developing the Research Plan
• Exploratory Research
Methods:
Literature Reviews: Examining existing studies to understand current
knowledge.
Expert Interviews: Gaining insights from individuals with specialized
knowledge.
Focus Groups: Facilitating discussions among a group to explore perceptions.
Example:
A tech startup aims to enter the wearable fitness device market but lacks understanding
of potential customer preferences. They conduct exploratory research through focus
groups and expert interviews to identify key features and concerns, which helps in
shaping their product development strategy.
2. Developing the Research Plan
2.2. Descriptive Research
• Descriptive research seeks to accurately describe characteristics of a specific group, situation, or
phenomenon. It answers the "who," "what," "where," "when," and "how" questions but does not delve into
causality.
• Characteristics:
Structured Design: Employs well-defined procedures and methodologies.
Quantitative Orientation: Often involves numerical data and statistical
analysis.
Snapshot Perspective: Provides a detailed picture of the subject at a specific
point in time.
2. Developing the Research Plan
2.2. Descriptive Research
Methods:
Surveys: Utilizing questionnaires to collect data from a large audience.
Observations: Recording behaviors or events as they occur naturally.
Case Studies: In-depth analysis of a particular individual, group, or event.
Example:
• A retail company wants to understand the purchasing habits of its customers. They conduct a survey
collecting data on demographics, shopping frequency, and product preferences, enabling them to tailor their
marketing strategies effectively.
2. Developing the Research Plan
2.2. Descriptive Research
After all, to describe something, we must have a good idea of what we
need to measure and how we should measure it.
Keyways in which descriptive research can help us include describing
customers, competitors, market segments, and measuring performance.
2. Developing the Research Plan
2. 3. Causal Research
• Causal research, also known as explanatory research, aims to identify cause-and-effect relationships between
variables. It seeks to determine how changes in one variable influence another.
Characteristics:
Controlled Environment: Often involves experiments where variables can
be manipulated.
Hypothesis Testing: Begins with a specific hypothesis about the relationship
between variables.
Quantitative Analysis: Utilizes statistical methods to assess the strength and
significance of relationships.
2. Developing the Research Plan
2. 3. Causal Research
• Methods:
Experiments: Manipulating one variable to observe its effect on another.
Quasi-Experiments: Observational studies where control over variables is
limited.
• Example:
• A beverage company wants to test if changing the packaging design of their product will increase
sales. They conduct an experiment in select markets, introducing the new packaging in some
stores while keeping the original in others, and compare sales data to assess the impact.
2. Developing the Research Plan
2. 3. Causal Research
• Case Study:
• A retail chain plans to introduce a new product line and wants to
understand customer preferences. They opt for descriptive research
by conducting surveys to gather data on customer demographics,
purchasing habits, and product interests.
3. Data Collection
• Data collection involves gathering information relevant to the research problem. This can be
achieved through primary data (collected firsthand) or secondary data (existing data).
• Methods of Data Collection:
Surveys: Utilizing questionnaires to collect data from a large audience.
Interviews: Conducting one-on-one discussions to gain deeper insights.
Focus Groups: Facilitating group discussions to explore perceptions and
ideas.
Observations: Recording behaviors or events as they occur naturally.
3. Data Collection
• Example:
• To assess customer satisfaction, a service provider conducts online surveys and follows up with in-depth
interviews for a subset of respondents to explore specific concerns.
4. Data Analysis
• After collecting the data, the next step is to analyse it to extract meaningful insights.
• This involves organizing the data, performing statistical analyses, and interpreting the results in the context of
the research problem.
• Case Study:
• A food delivery company collects data on delivery times and customer satisfaction ratings.
Through regression analysis, they discover a strong negative correlation between delivery
time and satisfaction, indicating that faster deliveries lead to happier customers.
5. Presenting the Findings
• The final step is to present the research findings to stakeholders in a
clear and actionable manner.
• This includes summarising key insights, providing recommendations,
and using visual aids to enhance comprehension.
5. Presenting the Findings
• Example:
• A marketing team presents their research on consumer preferences
using charts and graphs to illustrate trends, accompanied by
strategic recommendations for product development and targeted
advertising campaigns.