Market Research Process and Errors: A Comprehensive Guide

Defining The Problem:

1st step is defining the problem. Problem Definition involves discussion with decision makers, interviews with experts, analysis of secondary data. Once defined, research can be designed and conducted properly.

Developing an Approach to the Problem:

Formulating an Objective or Theoretical Framework, analytical models, research questions, and Hypotheses, and identifying the information needed.

Research Design Formulation:

The Blueprint for conducting the market research project, which details the procedures necessary to obtain required information. The purpose is to design a study that will test the hypotheses, determine possible answers to the research questions, and provide information needed for decision making. Addressing how data should be obtained from the respondents should be addressed.

Fieldwork or Data Collection:

Staff that operates either in the field (Personal Interviewing) or Electronically. It includes Proper Selection, Training, Supervision, and Evaluation of the Staff which help minimize data selection errors.

Data Preparation and Analysis:

Editing, Coding, Transcription, and verification of Data. Each questionnaire is inspected, data is analyzed to derive information related to the components of the marketing research problem and thus provide input into the management decision problem.

Data Preparation and Analysis:

The entire project should be documented in a written report, which addresses the specific research questions identified, describes the approach, the research design, Data Collection, and Data Analysis procedures adopted, and presented in a comprehensible format for the management to use for decision making. Finally, a presentation should be made for the management using tables, graphs, and figures to enhance clarity and impact.

What is Descriptive Research?

1- Describe characteristics of relevant groups such as consumers, salespeople, organizations, or market areas (Heavy users and prestigious department stores). 2- Estimate the percentage of units in a specified population exhibiting certain behavior. 3- To Determine the perceptions of Product Characteristics (how Households perceive department stores in significant factor criteria). 4- To Determine the degree to which marketing variables are associated (how shopping is related to eating out). 5- To make specific predictions (what will retails be in a specific shop be in a specific area).

Surrogate Information Error:

The Variation between information needed for Marketing Research Problem and information sought by Researcher. Exp (consumer choice of new brand over consumer preferences).

Measurement Error:

Variation between information sought and information generated by measurement process by the researcher. Exp (Measuring Consumer Perception over Consumer Preferences).

Population Definition Error:

Variation between actual population relevant to the problem at hand and the population as defined by the researcher.

Sampling Frame Error:

Variation between the population defined by researcher and population implied by sampling frame (list). Exp (Phone numbers that don't actually represent the population of potential consumers because of unlisted, disconnected, and new numbers in service).

Data Analysis Error:

Errors that occur while raw data from questionnaires are transformed into research findings. Exp (inappropriate statistical procedure).