Chapter 2 Defining the Marketing Research Problem and Developing an Approach True/False uestions
1. Problem Problem definitio definition n is the most most important important step step in the marketi marketing ng research research project. project. (True, easy, page 33) b.
Better communication and more inolement in problem p roblem definition are the most fre!uently mentioned "ays of improing the usefulness of research. (True, moderate, page 33)
c.
The The orga organi ni#a #ati tion onal al sta statu tuss of the the res resea earc rche herr or the the res resea earc rch h depa depart rtme ment nt may may mak makee it easy to reach the key $% in the early stages of the project. (&alse, difficult, page 3')
d.
The problem audit proides a useful frame"ork for interacting "ith the researcher and identifying the underlying causes of the problem. (&alse, moderate, page 3)
e.
$%s $%s tend end to focu focuss on sym symptom ptomss rathe atherr than han caus causes es.. (True, easy, page 3)
f.
The The $% $% and and the the res resea earc rche herr mus mustt int inter eract act conti continua nuall lly y rat rathe herr tha than n spo spora radi dica call lly* y* is an e+planation of one of the -s kno"n as continuity. continuity. (True, easy, page 3)
g.
The The purp purpos osee of int inter eri ie" e"iing e+pe e+perrts is is to hel help defi define ne the the mark market etiing res researc earch h problem rather than to deelop a conclusie solution. (True, moderate, page 3)
h.
/eco /econd ndar ary y data data are ori origi gina natted by the the rese resear arch cher er for for the the spec speciific fic pur purpos pose of addressing the research problem. (&alse, easy, page 3)
i.
0nal nalysis of aai ailable ble second ondary data is a none nessent ential ste step in the problem definition process.
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(&alse, moderate, page 32) j.
nformation obtained from the $%, industry e+perts, and secondary data may no t be sufficient to define the research problem. (True, easy, page 34)
k.
To understand the background of a marketing research problem, the researcher must understand the client5s firm and industry. (True, easy, page 34)
l.
6here appropriate, analysis of past information and forecasts of trends should be carried out at the firm5s department leel. (&alse, moderate, page '7)
m.
The scope of the marketing research problem may hae to be reduced to accommodate budget constraints. (True, easy, page '7)
n.
n instances "here the resources are too limited to allo" a high!uality project, the firm should be adised not to undertake formal marketing research. (True, moderate, page '1)
o.
The number and geographical location of the buyers and nonbuyers* is a factor that should be considered in the 8objecties5 component of the enironmental conte+t of the problem. (True, moderate, page '1)
p.
The economic enironment includes public policies, la"s, goernment agencies, and pressure groups that influence and regulate arious organi#ations and indiiduals in society. (&alse, difficult, page '9)
!.
The economic enironment component of the enironmental conte+t is comprised of purchasing po"er, gross income, disposable income, discretionary income, prices, saings, credit aailability, and general economic conditions. (True, moderate, page '9)
r.
The company5s e+pertise "ith each element of the marketing mi+ as "ell as its general leel of marketing and technological skills affect the nature and scope of the marketing research project. (True, easy, page '9)
s.
The marketing research problem asks "hat the $% needs to do, "hereas the management decision problem asks "hat information is needed and ho" it can best be obtained (Table 9.1).
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(&alse, moderate, page '3) t.
The management decision problem is action oriented. (True, easy, page '3)
u.
/hould the market be segmented differently*: should a ne" product be introduced*: are e+amples of the marketing research problem. (&alse, moderate, page '3)
.
The marketing research problem is information oriented. (True, easy, page '3)
".
To properly identify the marketing research problem, it is best to state the problem in narro", specific terms and identify its broad concepts. (&alse, moderate, page ')
+.
The second part of the marketing research problem definition is specific components. The specific components focus on the key aspects of the problem and proide clear guidelines on ho" to proceed further. (True, moderate, page ')
y.
n erbal models, the ariables and their relationships are stated in e!uation form. (&alse, easy, page ')
#.
;erbal, graphical, and mathematical models depict the same phenomenon or theoretical frame"ork in different "ays. (True, moderate, page ')
aa.
bb. =esearch !uestions ask "hat general information is re!uired "ith respect to the problem components. (&alse, difficult, page '2) cc.
>ypotheses go beyond research !uestions because they are statements of relationships or propositions rather than merely !uestions to "hich ans"ers are sought. (True, moderate, page '4)
dd.
Being too familiar "ith the enironmental factors of the country "here the research is being conducted can greatly increase the difficulty of understanding the problem5s enironmental conte+t and uncoering its causes.
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(&alse, moderate, page 3) 31. /P// can be used to perform forecasts and "hatif analyses to help the researcher in isolating the underlying causes, identifying the releant ariables that should be inestigated, and formulating appropriate research !uestions and hypotheses. (True, moderate, page ) Multiple Choice uestions
39. The ????? is a broad statement of the general problem and identification of the specific components of the marketing research problem. a. problem audit b. management problem c. problem definition d. none of the aboe (c, moderate, page 33) 33. 0ccording to the problem definition and approach deelopment process as sho"n in &igure 9.1, the tasks inoled in problem definition consist of all of the follo"ing e+cept ?????. a. discussions "ith the decision makers b. interie"s "ith industry e+perts and other kno"ledgeable indiiduals c. analysis of project costs d. analysis of secondary data (c, difficult, page 33) 3'. 0ccording to &igure 9.1, the components of the ????? consist of@ objectieAtheoretical frame"ork, analytical models, research !uestions, hypotheses, and specification of the information needed. a. approach to the problem b. management decision problem c. marketing research problem d. enironmental conte+t of the problem (a, difficult, pages 333') 3. The need for the researcher to understand the nature of "hat decision managers face and "hat they hope to learn from research is one of the reasons to conduct ?????. a. discussions "ith decision makers b. interie" "ith e+perts c. secondary data analysis d. !ualitatie research (a, difficult, page 3')
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3. To identify the management problem, the researcher must possess considerable skill in interacting "ith the $%. 6hich of the follo"ing is a factor that might complicate this interaction a. 0ccess to the $% may be difficult and some organi#ations hae complicated protocols for access to top e+ecuties. b. The organi#ational status of the researcher or the research department may make it difficult to reach the key $% in the early stages of the project. c. There may be more than one key $% and meeting "ith them collectiely or indiidually may be difficult. d. 0ll of the aboe are correct. (d, difficult, pages 3'3) 3. The ????? proides a useful frame"ork for interacting "ith the $% and identifying the underlying causes of the problem. a. problem audit b. management problem c. problem definition d. none of the aboe (a, moderate, page 3) 32. The ????? is a comprehensie e+amination of a marketing problem "ith the purpose of understanding its origin and nature. a. problem audit b. management problem c. problem definition d. none of the aboe (a, moderate, page 3) 34. t is important to perform a problem audit because ?????. a. $%s tend to focus on symptoms rather than on causes b. the $% kno"s the cause of the problem c. the $%, in most cases, has only a ague idea of "hat the problem is d. both a and c are correct (d, moderate, page 3)
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'7. The interaction bet"een the $% and the researcher should be characteri#ed by the seen -s. 6hich of the follo"ing is not one of the seen -s a. continuity b. communication c. causality d. candor (c, moderate, page 3) '1. 0s one of the seen -s that characteri#e the interaction bet"een the $% and the researcher, confidence is best defined as@ ?????. a. there should not be any hidden agendas, and an attitude of openness should preail b. the interaction bet"een the $% and the researcher should be guided by mutual trust c. marketing research is a team project in "hich both parties ($% and researcher) must cooperate d. the interaction bet"een the $% and the researcher should be creatie rather than formulaic (b, moderate, page 3) '9. nterie"s "ith industry e+pertsCindiiduals kno"ledgeable about the firm and the industryCmay help formulate the marketing research problem. 6hich of the follo"ing statements is true about interie"s "ith industry e+perts a. These e+perts may be found both inside and outside the firm. b. Typically, e+pert information is obtained by unstructured personal interie"s "ithout administering a formal !uestionnaire. c. t is helpful to prepare a list of topics to be coered during the interie". d. 0ll of the aboe are true. (d, moderate, page 3) '3. Because of potential difficulties "hen seeking adice from e+perts, it is best to use interie"s "ith e+perts "hen conducting marketing research ????? . a. for industrial firms b. for products of a technical nature c. in situations "here little information is aailable from other sources d. all of the aboe (d, difficult, page 3)
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''. 6hich of the follo"ing statements about secondary data is true a. /econdary data are data collected for some purpose other than the problem at hand. b. /econdary data are an economical and !uick source of background information. c. Primary data should not be collected until the aailable secondary data hae been fully analy#ed. d. 0ll of the aboe are true. (d, easy, page 32) '. ????? is an unstructured, e+ploratory research methodology based on small samples intended to proide insight and understanding of the problem setting. a. Primary research b. Dualitatie research c. /econdary research d. Duantitatie research (b, moderate, page 34) '. ????? is not a !ualitatie research techni!ue. a. $epth interie" b. 6ord association c. &ocus group d. -onclusie research (d, moderate, page 34) '. ????? consists of the factors that hae an impact on the definition of the marketing research problem, including past information and forecasts, resources and constraints of the firm, objecties of the decision maker, buyer behaior, legal enironment, economic enironment, and marketing and technological skills of the firm. a. The approach to the problem b. =esearch design c. The enironmental conte+t of the problem d. Problem definition (c, moderate, page 34) '2. %any factors hae an impact on the definition of the marketing research problem. These factors encompass the enironmental conte+t of the problem. 6hich of the follo"ing is not one of the factors a. marketing and technological skills b. objecties c. past information and forecasts d. political enironment (d, moderate, page 34)
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'4. To formulate a marketing research problem of appropriate scope, it is necessary to take into account both the resources aailable, such as money and research skills, and the constraints on the organi#ation, such as cost and time. These considerations refer to "hich of the factors related to the enironmental conte+t of the problem a. resources and constraints b. buyer behaior c. legal enironment d. economic enironment (a, easy, page '7) 7. The follo"ing statement refers to "hich of the factors related to the enironmental conte+t of the problem@ $ecisions are made to accomplish objecties* a. past information and forecasts b. resources and constraints c. objecties d. buyer behaior (c, easy, page '1) 1. %edia consumption behaior and response to promotions, price sensitiity, and retail outlets patroni#ed are factors that should be considered in the ????? component of the enironmental conte+t of the problem. a. objecties b. legal enironment c. economic enironment d. buyer behaior (d, moderate, page '1) 9. =egulatory policies and norms "ithin "hich organi#ations must operate, refer to the ????? factor of the enironmental conte+t of the problem. a. legal enironment b. economic enironment c. objecties d. buyer behaior (a, moderate, page '9) 3. The ????? consists of income, prices, saings, credit, and general economic conditions. a. legal enironment b. economic enironment c. objecties d. buyer behaior (b, easy, page '9)
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'. ????? is the problem confronting the decision maker. t asks "hat the decision maker needs to do. a. The enironmental conte+t of the problem b. The management decision problem c. The marketing research problem d. Problem definition (b, easy, page '3) . ????? is a problem that entails determining "hat information is needed and ho" it can be obtained in the most feasible "ay. a. The enironmental conte+t of the problem b. The management decision problem c. The marketing research problem d. Problem definition (c, moderate, page '3) . The management decision problem focuses on ?????, "hile the marketing research problem focuses on ?????. a. symptoms: solutions b. symptoms: underlying causes c. solutions: underlying causes d. none of the aboe (b, difficult, page '3) . Based on Table 9.1, "hich statement is true about the management decision problem a. t asks "hat information is needed and ho" it should be obtained. b. t is information oriented. c. t asks "hat the decision maker needs to do. d. t focuses on the underlying causes. (c, easy, page '3) 2. Based on Table 9.1, "hich statement is true about the marketing research problem a. t focuses on underlying causes. b. t focuses on symptoms. c. t is information oriented. d. Both a and c are correct. (d, moderate, page '3)
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4. f the management decision problem is@ /hould a ne" product be introduced* "hat is the most appropriate marketing research problem a. $etermining the price elasticity of demand and the impact on sales and profits of arious leels of price changes. b. $etermining consumer preferences and purchase intentions for the proposed ne" product. c. $etermining the effectieness of the current adertising campaign. d. $etermining the impact of ne" distribution outlets. (b, moderate, page '') 7. 6hich statement is true concerning defining the marketing research problem a. The definition should allo" the researcher to obtain all the information needed to address the management decision problem. b. The definition should guide the researcher in proceeding "ith the project. c. The marketing research problem should be stated in broad, general terms "ith specific components identified. d. 0ll of the aboe are correct. (d, moderate, pages ''') 1. The outputs of the approach deelopment process should include all of the follo"ing components e+cept ?????. a. objectieAtheoretical frame"ork b. analytical models c. hypotheses d. all of the aboe (d, difficult, page ') 9. 0 conceptual scheme based on foundational statements called a+ioms, "hich are assumed to be true, is ?????. a. objectie eidence b. a theory c. an analytical model d. none of the aboe (b, difficult, page ') 3. Enbiased eidence that is supported by empirical findings is ?????. a. objectie eidence b. a theory c. an analytical model d. none of the aboe (a, moderate, page ')
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'. n the process of deeloping an approach, research should be based on objectie eidence and supported by theory. 0 theory ?????. a. seres as a foundation on "hich the researcher can organi#e and interpret the findings b. also plays a ital role in influencing the research procedures adopted in basic research c. is incomplete d. all of the aboe (d, moderate, page ') . The researcher should rely on ????? to determine "hich ariables should be inestigated. a. objectie eidence b. a theory c. an analytical model d. none of the aboe (b, difficult, page ') . 0(n) ????? is a set of ariables and their interrelationships designed to represent, in "hole or in part, some real system or process. a. mathematical model b. graphical model c. erbal model d. analytical model (d, moderate, page ') . ????? are refined statements of the specific components of the problem. a. >ypotheses b. =esearch !uestions c. %arketing research problems d. 0nalytical models (b, difficult, page '2) 2. 6hich statement about hypotheses is not true a. 0 hypothesis is an unproen statement or proposition about a factor or phenomenon that is of interest to the researcher. b. >ypotheses are declaratie and can be tested empirically. c. t is possible to formulate hypotheses in all situations. d. 0n important role of a hypothesis is to suggest ariables to be included in the research design. (c, difficult, page '4)
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4. Before defining the problem, the researcher must isolate and e+amine the impact of the selfreference criterion (/=-), or the unconscious reference to one5s o"n cultural alues. 6hich of the follo"ing steps does not help researchers account for enironmental and cultural differences "hen defining the problem in an international marketing conte+t a. $efine the marketing research problem in terms of domestic enironmental and cultural factors. This inoles an identification of releant 0merican (domestic country) traits, economics, alues, needs, or habits. b. $efine the marketing research problem in terms of foreign enironmental and cultural factors. %ake no judgments. This inoles an identification of the related traits, economics, alues, needs, or habits in the proposed market culture. This task re!uires input from researchers familiar "ith the foreign enironment. c. solate the selfreference criterion (/=-) influence on the problem and e+amine it carefully to see ho" it complicates the problem. d. 0ll of the aboe are correct. (d, difficult, pages 3') 7. Fthical issues arise if the process of defining the problem and deeloping an approach is compromised by the personal agendas of the client ($%) or the researcher. 6hich of these statements concerning ethics in marketing research is not true a. The $% has the obligation to be candid and disclose to the researcher all the releant information that "ill enable a proper definition of the marketing research problem. b. The researcher is ethically bound to offer the most e+pensie set of serices to each client. c. The problem definition process is adersely affected "hen the $% has hidden objecties such as gaining a promotion. d. The researcher is ethically bound to define the problem so as to further the best interest of the client, rather than the interest of the research firm. (b, moderate, page ) 1. 6hich of the follo"ing ethical issues isAare pertinent in deeloping an approach a 6hen a client solicits proposals, not "ith the intent of subcontracting the research, but "ith the intent of gaining the e+pertise of research firms "ithout pay, an ethical breach has occurred. b The research firm has the ethical obligation to deelop an appropriate approach. c Proprietary models and approaches deeloped by a research firm are the property of that firm and should not be reused by the client in subse!uent studies "ithout the permission of the research firm. d 0ll of the issues are pertinent. (d, moderate, page )
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9. There are seeral "ays in "hich the nternet can help in defining the problem and deeloping an approach, and add alue to the traditional methods. 6hich of the follo"ing is not one of those "ays a The nternet can help the researcher gain access to the $% or $%s ia email and chat rooms. b The nternet can be searched to find industry e+perts outside of the client5s organi#ation ia industry sites and ne"s groups. c /earch engines can be used to collect secondary data !uickly and economically. d Gone of the aboe. (d, moderate, page )
!ssa" uestions
3. Briefly discuss problem definition and "hy it is the most important task in the marketing research project. 0ns"er Problem definition inoles stating the general problem and identifying the specific components of the marketing research problem. Hnly "hen the marketing research problem has been clearly defined can research be designed and conducted properly. Hf all the tasks in a marketing research project, none is more ital to the ultimate fulfillment of a client5s needs than a proper definition of the research problem. 0ll the effort, time, and money spent from this point on "ill be "asted if the problem is misunderstood or ill defined. (moderate, page 33) '. The problem audit inoles discussions "ith the $% on numerous issues. Iist and elaborate on these issues. 0ns"er 1. The eents that led to the decision that action is needed, or the history of the problem 9. The alternatie courses of action aailable to the $%, the set of alternaties may be incomplete at this stage, and !ualitatie research may be needed to identify the more innoatie courses of action 3. The criteria that "ill be used to ealuate the alternatie courses of action: for e+ample, ne" product offerings might be ealuated on the basis of sales, market share, profitability, return on inestment, and so forth '. The potential actions that are likely to be suggested based on the research findings . The information that is needed to ans"er the $%5s !uestions . The manner in "hich the $% "ill use each item of information in making the decision . The corporate culture as it relates to decision making: in some firms, the decision making process is dominant: in others, the personality of the $% is more important. 0"areness of corporate culture may be one of the most important
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factors that distinguishes researchers "ho affect strategic marketing decisions from those "ho do not. (difficult, page 3) . 0 problem audit, "hich inoles e+tensie interaction bet"een the $% and the researcher, can greatly facilitate problem definition by determining the underlying causes. The interaction bet"een the researcher and the $% is facilitated "hen one or more people in the client organi#ation sere as a liaison and form a team "ith the marketing researcher. n order to be fruitful, the interaction bet"een the $% and the researcher should be characteri#ed by the seen -s. Iist the seen -s. 0ns"er 1. -ommunication. &ree e+change of ideas bet"een the $% and researcher is essential. 9. -ooperation. %arketing research is a team project in "hich both parties ($% and researcher) must cooperate. 3. -onfidence. The interaction bet"een the $% and the researcher should be guided by mutual trust. '. -andor . There should not be any hidden agendas, and an attitude of openness should preail. . -loseness. &eelings of "armth and closeness should characteri#e the relationship bet"een the $% and the researcher. . -ontinuity. The $% and the researcher must interact continually rather than sporadically. . -reatiity. The interaction bet"een the $% and the researcher should be creatie rather than formulaic. (difficult, page 3) . $iscuss the t"o potential difficulties that may arise "hen seeking adice from e+perts. 0ns"er 1. /ome indiiduals "ho claim to be kno"ledgeable and are eager to participate may not really possess e+pertise. 9. t may be difficult to locate and obtain the help from e+perts "ho are outside the client organi#ation. &or these reasons, interie"s "ith e+perts are more useful in conducting marketing research for industrial firms and for products of a technical nature, "here it is relatiely easy to identify and approach the e+perts. This method is also helpful in situations "here little information is aailable from other sources, as in the case of radically ne" products. (moderate, page 3)
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. F+plain the structure of a "elldefined marketing research problem, including the broad statement and the specific components. 0ns"er The general rule to be follo"ed in defining the marketing research problem is that the definition should (1) allo" the researcher to obtain all the information needed to address the management decision problem, and (9) guide the researcher in proceeding "ith the project. =esearchers make t"o common errors in problem definition. The first arises "hen the research problem is defined too broadly. 0 broad definition does not proide clear guidelines for the subse!uent steps inoled in the project. /ome e+amples of oerly broad marketing research problem definitions are@ (1) deeloping a marketing strategy for the brand, (9) improing the competitie position of the firm, or (3) improing the company5s image. These are not specific enough to suggest an approach to the problem or a research design. The second type of error is just the opposite@ the marketing research problem is defined too narro"ly. 0 narro" focus may preclude consideration of some courses of action, particularly those that are innoatie and may not be obious. t may also preent the researcher from addressing important components of the management decision problem. The likelihood of committing either type of error in problem definition can be reduced by stating the marketing research problem in broad, general terms and identifying its specific components (see &igure 9.3). The broad statement proides perspectie on the problem and acts as a safeguard against committing the second type of error. The specific components focus on the key aspects of the problem and proide clear guidelines on ho" to proceed further, thereby reducing the likelihood of the first type of error. (difficult, pages ''') 2. $iscuss ho" the nternet can help in understanding the enironmental conte+t of the problem. 0ns"er %any of the factors to be considered in the enironmental conte+t of the problem can be researched ia the nternet. Past information and forecasts of trends can be found by searching for the appropriate information "ith the search engines mentioned in the te+t. &or clientspecific information, the user can go to the company home page and get the information from there.
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financial reports, company ne"s, corporate profiles, or annual reports. &inally, you can go to sites such as Jahoo Business or &inance or www.quicken.com to find out analyst ie"s of the company. &irms such as $un K Bradstreet (www.dnb.com) create company databases that can be accessed through a subscription or reports that can be purchased on a onetime basis. (moderate, page )
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