Session 2 B

Research Design
Research for Marketing
Decisions

Research Process
Any research comprises defining &
redefining problem, formulating
hypothesis or suggested solutions,
collecting, organizing & evaluating
data, making deduction & reaching
conclusions; and at last carefully
testing the conclusions to determine
whether they fit the formulating
hypothesis.
Clifford Woody
7/6/15

Dr. Ashis Mishra, IIMB

Steps in a Research Process

Stages

Outcome

1.

Problem Definition

Project Proposal (marketing

research objectives, initial
hypotheses variables to start
the research)

2.

Exploratory Research /
Qualitative Research

Research Questions variables /

relationships for further research
(validation)

3.
4.

5.

Hypothesis Formulation
Conclusive Research /
Quantitative Research
Report writing

Hypotheses for further research

Statistically valid reasons /
relations as a proof of the
hypotheses
Report containing the
methodology and solution to the
management decision problem

Problem Definition
Management Decision Problem
General contextual familiarity / methodological
familiarity with the problem
Break down the problem into many clear components
and integrating them into a coherent set
Developing and examining some starting hypotheses
(from the broken down components) about the problem
about the why / how of the problem
Construct Identification
Construct development

Evaluating the cost and value of the information

(seriousness of the consequences envisaged)

Marketing research Problem / research objective

Factors to be Considered in the

Problem Definition stage
PAST INFORMATION AND
FORECASTS

RESOURCES AND CONSTRAINTS

OBJECTIVES
BUYER BEHAVIOR
LEGAL ENVIROMENT
ECONOMIC ENVIROMENT
MARKETING AND
TECNOLOGICAL SKILLS

7/6/15

Dr. Ashis Mishra, IIMB

Exploratory Research Tools

Secondary Data Analysis
Pilot
(Questionnaire/Interview)
Experience Survey

Survey

Focus Group
Depth Interview

Projective Techniques
Case Study Method
7/6/15

Dr. Ashis Mishra, IIMB

Development of Research
Questions and Hypotheses
Components of the
Research Problem
Objective
/
Theoretic
al
Analyti
Framewo
cal
rk
Model
7/6/15

Research Questions

Hypotheses
Dr. Ashis Mishra, IIMB

Conclusive research
Descriptive research

Sampling Plan
Analysis Plan
Instruments / Tools to be used
Deliverables

Causal research
Identification of extraneous / confounding
variables
Design of experiments (Pre / True / Statistical)
Hypotheses testing

Illustration
United Airlines, as other major
airlines, had to deal with passenger
loyalty
Management decision problem: how to
attract more and more loyal
passengers?
The broad marketing research problem
was to identify the factors that
influence loyalty of airline travelers.
7/6/15

Dr. Ashis Mishra, IIMB

Illustration
Secondary data, exploratory research,
theoretical framework, and empirical
evidence revealed that the consumers choice
of an airline is influenced by:
Safety, Price of the ticket, Frequent-flyer
program, Convenience of scheduling, and Brand
name.

A graphical model stipulated that consumers

evaluate competing airlines based on factors
of the choice criteria to select a preferred
airline.
7/6/15

Dr. Ashis Mishra, IIMB

10

Illustration
The problem was that major airlines
were quite similar on these factors.
Indeed, "airlines offer the same schedules,
the same service, and the same fares.
The basic answer is to improve service.

Consequently, United Airlines had to

find a way to differentiate itself.
Food turned out to be the solution.

7/6/15

Dr. Ashis Mishra, IIMB

11

Illustration
Secondary data, like the J. D Power &
Associates' survey on "current and future
trends in airline food industry", indicated
that "food service is a major contributor to
customers loyalty".
This survey also emphasized the
importance of food brands.
The airline's Marketrak survey told United
Airlines that "customers wanted more
varied and up-to date food.
7/6/15

Dr. Ashis Mishra, IIMB

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Illustration
The following research questions and hypotheses
may be posed.
RQ1: How important is food for airline customers?
H1:Food is an important factor for airline travelers
H2:Travelers value branded food
H3:Travelers prefer larger food portions, but with
consistent quality

H4:

7/6/15

Travelers prefer exotic food

Dr. Ashis Mishra, IIMB

13

Illustration
Characteristics which influence the research
design included the identification of competing
airlines (Delta, American, etc.), factors of the
choice criteria (already identified),
measurement of airline travel and loyalty.
This kind of research helped United Airlines to
define their marketing research problem, and
develop the approach. Focus groups and
surveys were conducted to check customers'
perceptions of food in United Airlines' aircraft.

7/6/15

Dr. Ashis Mishra, IIMB

14

Illustration
The results provided support for all the
hypotheses (H1 to H4).
United Airlines then made a few
changes:

new "culinary menus,"

larger portions of food,
new coffee
branded products (e.g., Godiva chocolates).

This resulted in better service,

increasing customer satisfaction and
7/6/15 fostering loyalty.
Dr. Ashis Mishra, IIMB

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