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Chapter 02 – The Marketing Research Process and Proposals
the topics and questions, and anything that is potentially difficult or confusing.
VII. Phase III: Execute the Research Design (PPT slide 2-14)
The main objectives of the execution phase are as follows.
• Finalize all necessary data collection forms
A. Step 8: Collect and Prepare Data (PPT slide 2-14)
Following are the two approaches to gathering data.
• Using interviewers to ask questions about variables and market phenomena or to use
self-completion questionnaires
• Observing individuals or market phenomena
Self-administered surveys, personal interviews, computer simulations, telephone interviews,
and focus groups are just some of the tools researchers use to collect data.
B. Step 9: Analyze Data (PPT slide 2-14)
Data analysis procedures vary widely in sophistication and complexity, from simple frequency
distributions (percentages) to summary statistics (mean, median, and mode) and multivariate
data analysis. In qualitative research studies, textual and/or visual information is examined,
categorized, and even sometimes tabulated. Different procedures enable the researcher to
statistically test hypotheses for significant differences or correlations among several variables,
evaluate data quality, and test models of cause-effect relationships.
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Chapter 02 – The Marketing Research Process and Proposals
C. Step 10: Interpret Data to Create Knowledge (PPT slide 2-14)
VIII. Phase IV: Communicate the Results (PPT slide 2-14)
The last phase of the research process is reporting the research findings to management. The
overall objective often is to prepare a nontechnical report that is useful to decision makers whether
or not they have marketing research backgrounds.
A. Step 11: Prepare and Present the Final Report (PPT slide 2-14)
The importance of preparing and presenting the final research report to management cannot be
overstated. The sections that should be included in any research report are as follows.
• Executive summary
• Introduction
In some cases, the researcher not only submits a written report but also makes an oral
presentation of the major findings.
IX. Develop a Research Proposal (PPT slides 2-18 to 2-19)
By understanding the four phases of the research process, a researcher can develop a research
proposal that communicates the research framework to the decision maker. A research proposal is
a specific document that serves as a written contract between the decision maker and the researcher.
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Chapter 02 – The Marketing Research Process and Proposals
Exhibit 2.8 shows the sections that should be included in most research proposals (PPT slides 2-19
and 2-20).
• Purpose of the Proposed Research Project
• Type of Study
• Definition of the Target Population and Sample Size
• Sample Design and Data Collection Method
• Specific Research Instruments
Marketing Research in Action
What Does a Research Proposal Look Like? (PPT slide 2-21)
The Marketing Research in Action focus in this chapter is the Magnum Hotel Preferred Guest Card
program. The hotel needs a research project that can address several key questions. The research
Answers to Hands-On Exercise
1. If this proposal is accepted, will it achieve the objectives of management?
It is possible that the research proposal can achieve the objectives of management. At this
point, though, the proposal is not complete. The questionnaire is not yet designed, and it is
the questionnaire design and decisions regarding measurement and scale that will largely
2. Is the target population being interviewed the appropriate one?
Yes, the primary research questions focus on cardholder attitudes and decision-making
processes. Consequently, it is appropriate to use this as the target population.
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Chapter 02 – The Marketing Research Process and Proposals
3. Are there other questions that should be asked in the project?
Because the goal of such a card is to enhance customer loyalty, frequency and length of visits,
monetary value spent on rooms, and recency of visits, it would be valuable to ask about other
Answers to Review Questions
1. Identify the significant changes taking place in today’s business environment that are forcing
management decision makers to rethink their views of marketing research. Also discuss the
potential impact that these changes might have on marketing research activities.
The “first” and most significant change in today’s business environment stems from the
Internet. More people are using the Internet to gather and disseminate information and
purchase goods (e-commerce).Therefore, management decision makers view the Internet as
both a place to display their business (create a website) and collect information from buyers
(online marketing research).
Gatekeeper technologies such as caller ID and voice messaging systems frustrate marketing
researchers; since these technologies restrict access to the respondents. The third challenge
facing both management and marketing research professionals is the drive on the part of
many companies to expand operations and “go global”. The collection of information from
consumers in host countries (as well as the interpretation of “what’s being said” by
respondents) may differ significantly from the home country environment because of subtle
yet important differences in culture. Finally, the “position” of marketing research within the
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Chapter 02 – The Marketing Research Process and Proposals
business organization is changing to the point where “doing marketing research” has become
an essential component of a corporation’s strategic planning process and survival. As the
text suggests, the shift is so robust that we should begin to view the marketing research
2. In the business world of the 21st century, will it be possible to make critical marketing
decisions without marketing research? Why or why not?
Class participants may wish to play “devil’s advocate” suggesting it is always possible to do
marketing without investing in marketing research, with good reason. If Company X lacks
the funds to conduct marketing research, or the research endeavor is motivated by purely
3. How are management decision makers and information researchers alike? How are they
different? How might the differences be reduced between these two types of professionals?
Bill Shulby, a marketing strategy consultant, profiled in the example at the outset of Chapter
Two, brings home a number of wonderful points which can be used to address this trio of
questions. Management decision makers and information researchers are similar in a
fundamental sense; namely, they both share an interest in determining what needs to be done
to “find out how satisfied a company’s customers are overall and what can be done to
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Chapter 02 – The Marketing Research Process and Proposals
4. Comment on the following statements:
a. The primary responsibility for determining whether marketing research activities are
necessary is that of the marketing research specialist.
“No”, the marketing research specialist is not primarily responsible for determining
whether marketing research activities are necessary. Marketing research is a support
system for managerial decision making, not vice versa. While the text makes it clear,
b. The information research process serves as a blueprint for reducing risks in making
marketing decisions.
c. Selecting the most appropriate research design is the most critical task in the research
process.
“No”, selecting the most appropriate research design is not the most critical task in the
research process. As this chapter points out, the most critical task step in the research
process is Task Step 2, namely, redefining the decision problem as a research problem.
This is because the definition of the research problem influences each and every one of
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Chapter 02 – The Marketing Research Process and Proposals
the other task steps in the process in a subtle way.
5. Design a research proposal that can be used to address the following decision problem:
“Should the Marriott Hotel in Pittsburgh, Pennsylvania, reduce the quality of its towels and
bedding in order to improve the profitability of the hotel’s operations?”
Students’ responses will vary to this question but all responses should include the following
components of a research proposal:
i. Purpose of the proposed research project
ii. Type of study
iii. Definition of the target population and sample size
iv. Sample design and data collection method
The purpose is clearly established in the question: to determine whether the cost savings
through the reduction of the quality of the towels and bedding would increase the
profitability of the hotel. Students might suggest that this step does not need research
because, of course, lowering costs should result in increased profitability. However, they
must consider that lowering the quality of linens might affect the price per night at the hotel,
the customers’ attitude, and their decision to stay for an extended period. A research study
could answer the question of whether a decrease in the quality of linens is likely to affect the
customer attitudes, response to pricing, or the duration of their stay. Marriott could design an
experiment by placing some lower quality linens in some rooms and then measuring
Answers to Discussion Questions
1. For each of the four phases of the information research process, identify the corresponding
steps and develop a set of questions that a researcher should attempt to answer.
This is an excellent question to take up in class, since it sets a conceptual framework for
everything that follows in the course. When it comes to understanding (and hopefully
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Chapter 02 – The Marketing Research Process and Proposals
applying) the marketing research process during the semester, it’s great to have a
well-structured and detailed “structure” to bring to all the odds and ends that crop up in any
research endeavor. Following are the four phases and their corresponding task steps:
Exhibit 2.2 illustrates the four phases of the information research process, each guided by the
scientific method. These phases are as follows:
• Phase I: Determine the research problem
o Step 1: Identify and clarify information needs
o Step 2: Define the research and questions
o Step 3: Specify research objectives and confirm the information value
• Phase II: Select the appropriate research design
o Step 4: Determine the research design and data sources
o Step 5: Develop the sampling design and sample size
2. What are the differences between exploratory, descriptive, and causal research designs?
Which design type would be most appropriate to address the following question: “How
satisfied or dissatisfied are customers with the automobile repair service offerings of the
dealership from which they purchased their new 2013 BMW?”
The key difference between each of these three designs rests in their relationship to the
information research problem at hand. Exploratory research is a solid choice when the
decision-makers need clarity about the problem situation itself—that is when the decision
problem or opportunity is still opaque. Descriptive and causal research designs are employed
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Chapter 02 – The Marketing Research Process and Proposals
3. When should a researcher use a probability sampling method rather than a nonprobability
method?
A good rule of thumb when asking your class participants about a response to this question is
to float a critical query out for their consideration, namely, “Can we get our hands on an
up-to–date list of the population of interest?” One of the primary elements of the
infrastructure for probability sampling is such a list (sample frame). It is from this list that a
truly random selection of respondents can be extracted and reached. More often than not,
(because of issues surrounding the cost of good list, as well as propriety) class participants
will not be able to access lists from which they can draw random samples, and hence do
4. EXPERIENCE MARKETING RESEARCH. Go to the Gallup poll organization’s home
a. Several polls are reported on their home page. After reviewing one of the polls, outline
the different phases and task steps of the information research process that might have
been used in the Gallup Internet poll.
Essentially, the entire process is modified for Gallup’s online poll series. For instance,
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Chapter 02 – The Marketing Research Process and Proposals
b. Is the research reported by the poll exploratory, descriptive, or causal? Explain your
choice.
Descriptive data analysis is provided on the site along with implications, but no formal
report is available for non-subscribers.