M303 Marketing Research

LECTURE 02 · FALL 2026
M303
Marketing Research Process
From a managerial problem to research questions, hypotheses, and better decisions.

Where we are

FROM DEFINITION TO PROCESSLecture 1 established why marketing research matters; today we translate a managerial concern into an actionable research plan.
01Name tags

Please keep using them while I learn everyone’s name.

02Devices

Keep phones, tablets, and laptops away unless we are using them for class.

03Project groups

Finalize your group members.

04Schedule conflicts

Contact me as early as possible.

Learning Objectives

01
Understand the preliminary stages

Move from a problem or opportunity to actionable research objectives, questions, and hypotheses.

02
Calculate the value of information

Use illustrative decision trees to compare alternatives under uncertainty.

Prior-class review

Business intelligence bridges business users and information from different data sources.

Marketing research links the firm and the market through information.

Marketing intelligence acquires and analyzes marketing data to improve decisions.

Marketing research is a potential waste of resources; managers should rely on educated guesses instead.

Course roadmap

Problem formulationResearch designData collectionData analysis & recommendations
PRELIMINARY STAGES
Define the decision before designing the study.

Each step narrows a broad concern into information that can support action.

01

What is the problem or opportunity?

02

What is the actionable management problem?

03

What should the research achieve? Define research objectives.

04

What should the research answer? Define research questions.

05

What are the possible answers? Define hypotheses.

06

How will the information change the decision?

07

Compare the value of information with the cost of the research.

From a product problem to testable hypotheses

VIZIO MODEL XYZ · 4K TV
Problem: low sales attributed to inferior quality.

Move from the problem to actionable decisions, information needs, and possible answers.

What is the problem?

Low sales of Vizio Model XYZ 4K TV due to its inferior quality.

What is the actionable management problem?

What should the research achieve? Define research objectives.

What should the research answer? Define research questions.

What are the possible answers? Define hypotheses.

What is a problem—or an opportunity?

PROBLEM
A gap between what you expected and what occurred.

A problem may also reveal an opportunity. Lower candy consumption, for example, is a threat to an existing product and an opportunity for a healthier alternative.

◎
“The formulation of the problem is often more essential than its solution.”
Albert Einstein

Symptoms are visible; causes sit below the surface

Iceberg with most of its mass below the waterline
10–20%of an iceberg is visible above the water
SYMPTOM
Sales declined by 15%.
01

Perceptions of inferior product quality

02

Poor brand image

03

Unsatisfactory customer service

04

A price that is too high for the benefits received

What are research objectives?

RESEARCH OBJECTIVES
Statements of the information needed to solve the marketing problem.

Frame the objectives so that the information obtained can address the actionable management problem.

Stack of research books in a library

What are research questions?

RESEARCH QUESTIONS
Specific questions the study must answer to achieve its objectives.

For an advertisement decision, ask:

  • Will the advertisement be noticed?
  • Will it be interpreted accurately?
  • Will it influence consumers’ behavior?
RESEARCH OBJECTIVE
narrows into
Will it be noticed?
Will it be understood?
Will it change behavior?

What are hypotheses?

HYPOTHESIS
A possible answer to a research question.

A useful hypothesis makes information needs more specific and testable.

01Prior research

Draw on previous research efforts, including exploratory research.

02Relevant disciplines

Borrow from psychology, sociology, marketing, and economics.

03Managerial experience

Combine experience with related problems, situation analysis, knowledge, and judgment.

BagNV: a promising idea with a decision problem

BusinessWeek logo
AMERICA’S MOST PROMISING STARTUPS
Success Isn’t in the Bag Yet

Emily Schmitt · July 21, 2009

BagNV founder Tamika Powell and sales vice president Johanna Rodriguez with a handbagBagNV founder Tamika Powell (right) and sales vice president Johanna Rodriguez

Women love purses, and many love low-stakes gambling, too. Put the passions together via a monthly raffle for designer handbags, and Tamika Powell figured she would have a business—one day, perhaps. But her idea had not caught on yet.

Powell, 30, launched BagNV.net in February, a year after she was laid off as a human-resources consultant. She sold raffle tickets at $2 apiece, payable through PayPal, for a chance to win a high-end bag retailing for $300 to $500. With shoppers turning frugal, she thought her timing was nearly perfect: “We’re trying to be an answer to the recession.” Prizes had included a Puma Remix grip bag and a Coach Sabrina Op Art handbag.

At the time of the article, Powell—who lived in North Hollywood, California—had spent more than $1,200 on purses, shipping, and overhead but had brought in only $100. She said she might raise ticket prices on more expensive bags and could not rely only on word-of-mouth marketing. One option was sponsoring a fashion show.

BagNV: translate the concern into research

Problems

Actionable management problem

Research objectives

Research questions

Hypotheses

Local bank: weekend operations

PROBLEMS
Decreased profitsHigher employee costs on Saturdays

Actionable management problem

Research objectives

Research questions

Hypotheses

Estimate the value of information before collecting it

01Importance

How consequential is the decision?

02Uncertainty

How uncertain are the outcomes?

03Influence

Could the research change the decision?

EXPECTED VALUEBetter decision

How much can the information improve the expected outcome?

>
RESEARCH COSTTime + money

What must the organization spend to obtain the information?

Conduct the research when its expected value exceeds its cost.

Use illustrative decision models

CASE A
Introduce0.6 Success → $4M0.4 Failure → $1M
Do not introduce$0
CASE B
Introduce0.6 Success → $1M0.4 Failure → −$2M
Do not introduce$0

In-class exercise 1: direct mail

VICTORIA’S SECRET
Should the company launch a direct-mail campaign?

1,000,000 potential customers · $2 mailing cost per person · $100 profit per converted customer

With direct mail

The conversion rate is uncertain:

60% chance → 3%40% chance → 1%

Without direct mail

Expected purchase rate:

0.5%

$100 profit per customer

Which option has the higher expected profit: A. no direct mail or B. direct mail?

In-class exercise 1: solution

In-class exercise 2

Choose a firm and identify a marketing research problem or opportunity that interests you.
01

State the problem or opportunity.

02

State research objectives and questions.

03

State your hypotheses.

To sum up

01

Define the problem or opportunity.

02

Identify the actionable management problem.

03

Specify research objectives.

04

Write research questions.

05

State hypotheses.

BEFORE CONDUCTING THE STUDY
Use decision-tree analysis to calculate the value of the research.

Compare the expected value of the information with the cost of obtaining it.

Next class

COMING NEXT
Research Design
and Implementation
Choose the research design, data sources, and sampling approach that fit the decision.
Problem formulationPreliminary stagesResearch designDecide on the type of researchData collectionSecondary data · Primary data · SamplingData analysis & recommendationsPreparation · Descriptive analysis · Hypothesis testing · Correlation and regression