Slide 1Slide 2The Value of Determining the Research ProblemPragmatic Types of Information Used by Decision MakersThe Types of Information Used by Researchers and Decision MakersSlide 6When Might Marketing Research Not Be Needed?When To Undertake The Information Research Process?Some “Rules of Thumb” To Apply Before Undertaking The Research ProcessAn Integrated Decision Problem Definition ProcessTable 2.1 Management Decision Problem Versus the Marketing Research ProblemFigure 2.9 Development of Research Questio1 ns and HypothesisResearch Questions Vs HypothesisThe Iceberg PrincipleExamples of Popular ConstructsManagement and Researchers: Fundamental and Philosophical DifferencesManagement Problems in Term of Research Questions and Hypothesis-Exhibit 3-8Other Subjective Criteria for a “NO-GO” DecisionThe Value of the Proposed Research EndeavorThe Research Activities Normally Itemized to Reflect Total Research Project CostsSlide 21Sizing Up a Research ProviderEthics in Marketing Research: The ResearcherEthics In Marketing Research: The ClientEthics in Marketing Research: The RespondentCodes of Ethics in Marketing ResearchSlide 27Summary of Learning Objectives1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. CCHHAAPPTTEERR1234 0001 897251 0000033Problem Definition, Problem Definition, Research Objectives, and Research Objectives, and Marketing Research Marketing Research EthicsEthics3-23-21995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Value of Determining the Research ProblemThere is a 75% failure rate among small businesses during the first three years of existence.There was a 90% failure rate among dot-com companies in 2001.An inability to incorrectly identify management problems and/or opportunities can result in product/services failures – even bankruptcy. The adage “Garbage in, garbage out” is alive and well within the wonderful world of marketing research.3-33-31995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Pragmatic Types of Information Used by Decision Makers3-43-4Types of Information Availability Factor Manipulation FactorSubjective Very good availability, but based on individual's own experiences, feelings, or assumptionsSelectively interpretedSecondary Good availability, but extensive search time requiredInformation and data structures must be remanipulated and reinterpreted for at leasta second timePrimary Does not initially exist, must be createdData structures must be manipulated and interpreted for first time1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Types of Information Used by Researchers and Decision Makers3-5a3-5aTypes of InformationQuality Factor Complexity FactorFacts Very high quality; are observable and verifiable bits of information; high in accuracy and reliabilityNot complicated; easy to understand and useEstimates Degree of quality is based on the representativeness of the fact sources and the statistical procedures used to create themMore complex than facts due to the statistical procedures used to derive them and the possibilityof error1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Types of Information Used by Researchers and Decision Makers3-5b3-5bTypes of InformationQuality Factor Complexity FactorPredictions Lower quality than estimates or facts due to the perceived risk and uncertainty of future conditionsGreater complexity, forecasted estimates or projections into the futureRelationships Quality is dependent on the precision of the researcher’s statements of the interrelationship between sets of variablesHighest complexity; interrelationships of several variables being simultaneously analyzed1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. When Might Marketing Research Not Be Needed?Marketing Research might not be worth pursuing when:1) You already have the information you need.2) Time isn’t on your side.3) You lack the necessary resources to pull it off.4) The cost of the information outweighs the benefits.3-63-61995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. When To Undertake The Information Research Process?3-73-7Type of InformationCan the decision problem and/or opportunity be resolved using only subjective information?(Decision maker’s responsibility)Nature of DecisionIs the problem/opportunity situation of strategic or tactical importance?(Decision maker’s responsibility)Availability of DataIs existing secondary information inadequate for solving the decision problem situation or exploiting the opportunity?(Decision maker’s responsibility with researcher’s advice)NOTime ConstraintsIs there a sufficient time frame available for gathering the information before the final managerial decision mustbe made? (Decision maker’s responsibility with researcher’s advice)Resource RequirementsAre there sufficient levels of money, staff, and skills to meet the costs and marketing research requirements?(Decision maker’s responsibility with researcher’s advice)Benefits versus CostsDoes the expected value of the information exceed the cost of conducting research?(Decision maker’s responsibility with researcher’s advice)Move on to Phase I of theInformation Research ProcessYESYESYESYESYESDecision maker should bring in the marketing researcher for adviceYESDo NotUndertake theInformationResearchProcessYESNONONONONO1995 7888 4320 000 000001 00023Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Some “Rules of Thumb” To Apply Before Undertaking The Research ProcessMarketing Research is worth doing if: The information helps clear up the problem or identifies changes in the market that can directly impact the company. The information helps the company develop a meaningful competitive advantage within the landscape of the market. The information flows into marketing actions that result in achieving marketing objectives. The information provides a “window” into the future of the market in terms of trends and opportunities. The value of information is