Figure 2 1 Relationship of Problem Definition and

Figure 2. 1 Relationship of Problem Definition and Approach to the Previous Chapter and the Marketing Research Process Focus of This Chapter Relationship to Previous Chapter • Defining the Management Decision Problem • The Nature of Marketing Research (Chapter 1) • Defining the Marketing Research Problem • Definition of Marketing Research (Chapter 1) • Developing an Approach to the Problem • The Marketing Research Process (Chapter 1) Relationship to Marketing Research Process Problem Definition Approach to Problem Research Design Field Work Data Preparation and Analysis Report Preparation and Presentation

Figure 2. 2 Defining the Marketing Research Process and Developing An Approach: An Overview Internet Applications Importance of Defining the Problem The Process of Defining the Problem and Developing an Approach Fig 2. 3 Tasks Involved Discussions Interviews with DM Experts Problem Fig 2. 5 Audit Fig 2. 4 Fig 2. 6 TQM Secondary Data Analysis Qualitative Research Environmental Context of the Problem Application to Contemporary Issues International Technology Ethics Focus on Elrick & Lavidge Opening Vignette

Figure 2. 2 Defining the Marketing Research Process and Developing An Approach: An Overview (continued) Opening Vignette Table 2. 1 Definition of the Marketing Research Problem Figs 2. 7 -2. 8 Components of the Approach Fig 2. 9 Analytical Framework and Models Research Questions and Hypothesis Specification of Information Needed Application to Contemporary Issues International Technology TQM Ethics Focus on Elrick & Lavidge Internet Applications Management Decision Problem

Figure 2. 3 The Problem Definition and Approach Development Process Tasks Involved Discussions with Decision Makers Interviews with Experts Secondary Data Analysis Qualitative Research Environmental Context of the Problem Step 1: Problem Definition Management Decision Problem Marketing Research Problem Step 2: Approach to the Problem Analytical Framework and Models Research Questions and Hypotheses Step 3: Research Design Specification of Information Needed

Figure 2. 4 Conducting a Problem Audit History of the Problem Alternative Courses of Action Available to DM Criteria for Evaluating Alternative Courses Nature of Potential Actions Based on Research Information Needed to Answer the DM’s Questions How Will Each Item of Information Be Used by the DM? Corporate Decision-Making Culture

Figure 2. 5 Discussion Between the Researcher and the DM Focus of the Researcher Symptoms Underlying Causes • Loss of Market Share Discussion • Superior Promotion by Competition • Inadequate Distribution of Company’s Products • Lower Product Quality • Price Undercutting by a Major Competitor

Figure 2. 6 Factors to be Considered in the Environment Context of the Problem Past Information and Forecasts Resources and Constraints Objectives of the Decision Maker Buyer Behavior Legal Environment Economic Environment Figure 2. 4 Conducting a Problem Audit Marketing and Technological Skills

Figure 2. 7 Errors in Defining the Market Research Problem Common Errors Problem Definition is too Broad • Does Not Provide Guidelines for Subsequent Steps • e. g. , Improving the Company’s Image Problem Definition is too Narrow • May Miss Some Important Components of the Problem • e. g. Changing Prices in Response to a Competitor’s Price Change.

Figure 2. 8 Proper Definition of the Marketing Research Problem Broad Statement Component 1 Component 2 Component 3 SPECIFIC COMPONENTS

Figure 2. 9 Development of Research Questions & Hypothesis Components of the Marketing Research Problem Research Questions Hypotheses Analytical Framework and Models

Research Questions Vs Hypothesis • RQ: Is there an overlap between the features sought by station wagon buyer and buyers of SUV’s. – Possible Hypothesis: • H 1: The buyers of station wagon rate certain features of SUV’s as important. • H 2: The buyers of SUV’s rate certain features of station wagons as important. • H 3: The buyers of SUV’s and station wagon rate certain features as similar to each other.