Tuesday, September 23, 2014

Essentials of Marketing Research



By: Jean Paolo G. Lacap

 Last September 19, 2014, I was invited to be one of the resource speakers in the Central Luzon Business Expo (CELBEX) Year 2 held at Hotel Stotsenberg, Clark Freeport Zone. It was organized by APEX Tourism headed by a former classmate in the graduate school and a colleague in the academe, Xander Kim Sigua.

I was assigned to talk about marketing research. Doing research is a relevant matter in the academic set up. The major thrusts of a college or a university include teaching, community extensions, and research, thus producing quality research outputs is vital because they create and/or add new knowledge. Besides, global quality standards on education include research outputs as a parameter of quality education.


In the Philippines, producing researches is quite neglected. This has been a long issue among colleges and universities. One of the vital reasons is funding. Many of Filipino faculty members have hard time producing in quality research outputs because of lack of funding and at the same time, because of too much teaching loads; they have less time in doing researches. The result, few Filipino professors have published researches in local and international journals. With all these factors, in order for us to be globally competitive, we all need to strengthen our research capabilities.

Defining Marketing Research
Now, I will discuss the essentials of marketing research. According to Churchill, Brown, and Suter (2012), marketing research is “the function that links the consumer to the marketer through information – information used to identify and define marketing problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.” It is a scientific inquiry on marketing processes.

Applied vs. Basic Marketing Research
Marketing Research is divided into two – applied and basic marketing research. Applied marketing research is a scientific inquiry based on the specific marketing problems or objectives of a particular enterprise, firm, or an industry. For instance, a researcher may want to find out the level of customer satisfaction for Product X of Company A. On one hand, basic marketing research is general in nature. Essentially is inquires or validates on broad marketing topics by challenging the existing theories or concepts or extending them. For example, a researcher may want to know what specific constructs are relevant when we talk about customer relationship management (CRM). So the researcher may challenge the existing CRM theories or extend these CRM theories to better apply in real-life corporate scenarios.


Figure 1. Divisions of Marketing Research

The Marketing Research Process
Typically, any type of research starts with identification the research problem or objectives. This involves looking for a marketing problem or creating marketing objectives based on the need of a specific firm or industry. The second step is identifying the right research design. Here, the researcher may use either qualitative or quantitative research design. The third step is the process of collecting the right data. Fourth is to analyze the collected data, and last to put forth conclusions and/or recommendations.

Figure 2. The Marketing Research Process
  
Qualitative vs. Quantitative Marketing Research
Qualitative marketing research answers the general marketing problem or addresses marketing objectives by providing discussions and explanations of marketing concepts, models, or theories with less emphasis on numerical measures. This type of research design is usually utilizes unstructured data collection. In contrast, quantitative marketing research answers specific marketing problem or addresses marketing objectives by providing discussions and explanations of marketing concepts, models, or theories with emphasis on numerical measures and utilizes statistical parameters. This type of research design uses structured data collection.

Research Types
There are basic types of research – exploratory, descriptive, and causal.
1.        Exploratory Research – is a type of research where the inquiry is general in nature and at the same there is little background on the topic under study. It relies heavily on secondary data or on existing literature. Example: An exploratory study on the competitiveness of sustainability of the hotel industry in Pampanga. Since there is limited literature on the level of competitiveness of the hotel industry in Pampanga, an exploratory research is much attuned.
2.       Descriptive Research – is a type of research that describes an overall-view of a specific environment. Example: A study on the characteristics and behavior of online shoppers in the Philippines.
3.       Causal Research – it is a type of research where one variable affects the other variables. In this type of research the research will identify the dependent variable and the independent variables. Example: A correlation study of organizational commitment and the demographic profile of the respondents.

Figure 3. Research Types

Data Collection
There are two types of data collection methods – primary and secondary data.
1.        Primary Data – specific data collected based on the specific problem or objectives of the study. These data come directly from the response of the respondents of the study.  In can come from several sources such as qualitative research, surveys, and experiments.
2.       Secondary Data – these are data that are readily available such as data that comes from National Statistics Office (NSO), Social Weather Stations (SWS), AGB Nielsen, TNS, etc. Example, the researcher wants to know the satisfaction rating of the president of the Philippines; typically it is available from SWS.

Test of Reliability and Consistency
The most widely used data technique in research is survey. One of the important aspects of a survey to test the reliability and consistency of the constructs or questions enumerated in the questionnaire itself.

Cronbach Alpha is a widely used statistical tool to test the reliability and consistency of the survey. Typically, using SPSS (Statistical Package for the Social Sciences), the survey can be tested through Cronbach alpha. Generally, 70 percent or higher Cronbach alpha score is the accepted reliability parameter.

Sampling Techniques
There are varieties of sampling techniques used in doing both qualitative and qualitative.
1.        Convenience Sampling – a sampling technique where the researcher identify the most convenient sample that are necessary for the research. For example, a TV reporter may want to obtain the opinions of the people on pork barrel. So basically the TV reporter will ask for the opinions of those people readily available on that specific location of the reportage.
2.        Purposive Sampling – a sampling technique where the researcher obtains the sample based on his/her best judgment or based on the purpose of the study. In this sampling technique, the researcher is considered an experienced researcher and will be able to identify the right respondents for the undertaking under study.
3.       Quota Sampling – a sampling technique where the researcher warrants that the sample or subgroups will be the representatives of the population. For instance, the researcher wants to know the social networking site (SNS) behavior of college students in a university. Through quota sample, the researcher may obtain 200 female 1st year students and 200 male 1st year students to be the sample of the study and represent the total population of that university.
4.      Snowball Sampling – a sampling technique where the researcher first identifies selected respondents of the study and these selected participants will refer possible respondents. The primary reason is, the initial respondents may have known additional participants whom they believe have the same characteristics as them.
5.       Simple Random Sampling – a sampling technique where the researcher randomly identifies the sample from the population of the undertaking understudy.
6.       Systematic Sampling – a sampling technique where the researcher systematically identifies the sample by means of a regular interval e.g. all odd numbers in the population.
7.       Stratified Sampling – a sampling technique where the researcher identifies specific samples from different subset/subgroup in a certain population. Example, the researcher wants to find out the level of consumer satisfaction of college students in a university. Using stratified sampling, samples will come from different departments/colleges (strata) within the university.
Once the researcher identified the right sampling technique, it typically involves the identification of the total population then compute for the sample size. Today, due to the advent of technology, computation of the sample size can now be done through the Internet. Raosoft.com is a free online sample size calculator where the researcher can just simply encode the total population and the software will instantly compute for the sample size!
 
Figure 4. Raosoft.com
Data Analysis
Once all the data needed for the study are in place, the researcher performs descriptive analysis. Descriptive analysis involves documenting the data to make them useful information. It implicates document analysis to explore, describe, and/or find causes for the given problem or objectives of the study. A good data analysis includes supporting statements from previous researches. For example, if the researcher was able to identify that here is a correlation between job satisfaction and organizational commitment among the identified respondents, then this claim should be supported (or negated) by previous studies.

Formulating Conclusions and Recommendations
The final part of the marketing research process is to formulate conclusions and/or recommendations. Conclusions should be based from the results of the study. Remember all research objectives/problem statements should be answered in the data analysis part because it will be your basis in coming up for your study conclusions. Recommendations will be done after the conclusions are made, but it will only be there if the study requires you to come up with recommendations. Generally, all applied research topics require recommendations. Example, the researcher wants to know the factors why consumers prefer competitors’ product. From this standpoint, the researcher must recommend how the consumer will change their preference and buy the company’s product. Today, conclusions and recommendations are not limited to marketing strategies, coming up with new business models or frameworks are highly recommended.

Some Tips
Marketing research outputs are not limited to marketing strategies. Today, it is much better if the researcher will come up with business models or frameworks that either enhances the existing marketing concept and/or expands marketing theories. Examples are given below:

Figure 5. Competitiveness Framework
 The Competitiveness Framework above was one of the research outputs of my published study entitled: Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels in Pampanga

Figure 6. Sustainability Framework
The Sustainability Framework was also one of the research outputs of my study entitled:
Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels in Pampanga

Figure 7. Strategic Business Model
 The Strategic Business Model was the result of our study (together with Dr. Tungcab) entitled: Strategic Business Model for Telecommunication Companies in the Philippines.
 
Paradigm of the Study
Paradigm of the study should not be limited to IPO (Input-Process-Output). International journals do not accept this kind of framework anymore. The paradigm should reflect the statement of the problem and/or purposes of the study. Example, the hypotheses of the study are as follow:



H1: Is there a significant relationship between the profile of the respondents and their level of organizational commitment?
H2: Is there a significant relationship between the profile of the respondents and their job satisfaction?
H3: Is there a significant relationship between the respondents’ organizational commitment and their level of job satisfaction?

Instead of the typical IPO model, the researcher may create a paradigm that reflects these hypotheses, like the one in figure 8.

Figure 8. Sample Paradigm of the Study

 Marketing Research Ethics
The biggest no no in research is plagiarism. Plagiarism is copying others’ research papers/study without properly citing the author/s' names. There are available/free online plagiarism checker. Take advantage of them! Following are some of the free online plagiarism checker:


Final words
It is important for everyone to enjoy doing research. We should see this endeavor as part of our academic duty. Students also should imbibe the importance of doing research. Once we learn and love creating research outputs, we will be able to contribute something to our academic sector!

References:
Aaker, D.A., Kumar, V., Leone, R.P., & Day, G.S. (2013). Marketing Research. Wiley.

Churchill G.A., Brown, T.J., & Suter, T.A. (2012). Introduction to Marketing Research. Cengage Learning.

Lacap, J.P.G.  (2014). Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels in Pampanga. Business Management and Strategy, 5(1)115-127.

Lacap, J.P.G. (2014). Analysis of Shares and Likes on Facebook: Crafting Effective Viral Marketing Campaigns. European Academic Research, 5(6), 7874-7888.

Miranda, F.A.F. & Lacap, J.P.G. (2014)  Customer Relationship Management of Department of Tourism (DOT) Accredited Hotels in Angeles City, Philippines. European Academic Research, 5(6), 8041-8064.

Tungcab, A.P. & Lacap, J.P.G. (2014) Strategic Business Model for Telecommunication Companies in the Philippines. European Academic Research, 5 (6), 8505-8529.

Zikmund, W.G. & Babin, B.J. (2013). Essentials of Marketing Research. South-Western Cengage Learning.



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