LECTURE- 2

DEFINING RESEARCH PROBLEM

DR. JOGENDRA KUMAR NAYAK

DEPARTMENT OF MANAGEMENT STUDIES

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 Marketing Research Process
Step 1: Problem Definition
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation
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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.

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 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,

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 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.

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 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 define
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.
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 The Importance of Properly Defining the Problem

• Properly defining the problem is the most important step in the marketing
research process.
• If the wrong problem is defined, all the remaining steps in the marketing
research process are wrong.

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Define the Problem
 EXAMPLES
• Honda sports car case
• Paper boat

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 Recognizing the Problem
• To recognize a problem, managers
must be knowledgeable of objectives
and actual performance.
• To be aware of opportunities,
managers must have a process for
monitoring opportunities, such as
opportunity identification.
 Problem Identification
Questions to Answer…
• Who ? - would need it
• What ? - is needed
• When ? - is it needed
• Where ? - is it needed
• Why ? - is it needed
• How Many ? - are needed
 The Role of Symptoms in Problem Recognition
• “We have a problem … we are losing money”

– Managers must be careful to avoid confusing symptoms with problems.

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 The Role of Symptoms in Problem Recognition
• Symptoms are changes in the level of some key monitor that measures the
achievement of an objective.

• The role of the symptom is to alert management to a problem; there is a gap

between what should be happening and what is happening.

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 The Role of the Researcher in Problem Definition
• Researchers should ensure managers are defining the problem correctly.
• This is particularly true when the manager has already defined the problem in very
specific terms.
• Researchers sometimes take additional investigations, known as a “situation
analysis,” to ensure the problem is adequately defined.
 Impediments to Problem Definition
• Failure to change behavior for problem definition situations

– Managers deal with outside suppliers efficiently with little interaction.

Marketing research requires a great deal of interaction and communication.
 Defining the Problem &
Establishing Research Objectives
• A Process:
– There is no universally accepted, step-by-step approach used by marketing
researchers to define the problem and establish research objectives.
• “Defining problems accurately is more an art than a science.” –
Lawrence D. Gibson
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: Research of
Theoretical Hypotheses
Questions Information
Foundations Verbal,
Graphical, Needed
Mathematical

Step III: Research Design

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.
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Problem Identification

Problem Statement/Definition:
•These faucet handles look nice, but they are not functional when your hands
are wet and soapy.
•Redesign these handles so that when a persons hands are wet and soapy, they
can easily be gripped.
Assess the Background and the Manager’s Situation
• The researcher should first understand the industry, the competitors, and the
company.
• The researcher must understand the manager’s unique situation…
– Does the manager have a particular objective?
– What constraints is the manager operating under?
 Clarify the Symptoms of the Problem
• The researcher must understand the control system and determine what
symptoms are being identified by the system.
 Pinpoint Suspected Causes of The Symptom
• There’s always some cause or causes for a change.
• It is important to determine all possible causes.
• Researchers should narrow possible causes to a small set of probable causes.
 Pinpoint Suspected Causes of The Symptom
• There’s always some cause or causes for a change.
• It is important to determine all possible causes.
• Researchers should narrow possible causes to a small set of probable causes.
Proper Definition of the Research Problem

Marketing Research Problem

Broad Statement

Specific Components
 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?
6. Can store patronage and preference be explained in terms of store evaluations and customer
characteristics?
THANK YOU

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