Marketing Research in Theory and Practice - Essay Example

MARKETING RESEARCH The present study has been conducted on the topic "Marketing Research", where the researcher has made data collection from thepopulation under study through random sampling. The focus of the present research was to estimate the changing requirements of regular visitors of hotels and restaurants so that the new chain of hotels can be established on the same footings under the title ‘the Hobbit’s Choice Restaurant’, where the changing needs as well as fresh demands of the customers can be presented in a stylish and innovative way. As the study is related to hoteling, the regular visitors of hotels and restaurants were the target population. Before embarking upon discussing the research report on the given topic, it would be appropriate to define some concepts and terms used in the present study. 1.1 Marketing Research in Theory and Practice “Marketing research”, according to the American Marketing Association, “is the function that links the consumer, customer and the public to the marketer through information-information is used to identify and define marketing opportunities and problems; generate, evaluate and refine marketing actions; monitor market performance; and improve understanding of marketing as a process.” (Quoted in http://www.marketingpower.com/content4620.php). In other words, marketing research refers to the systematic procedure for the collection and analysis of data regarding some specific market product. It enables the manufacturers, industries and companies to have a comprehensive and analytical assessment in respect of the views, preferences, requirements as well as prospects and perils of the consumers, retailers and stakeholders involved in sales and purchase of their product. The data gathered and interpreted during marketing research significantly supports the organizations draw out future plans according to the changing trends and scenario of the market. It is considerably helpful in enhancing the organizations’ volume of production and sales. “Marketing research” Zaidi & Javed opine, “concentrates on data collection related to market product while interacting with the consumers, gathering information from them and interpreting results about various aspects of a market product.” (Zaidi & Javed, 2002:7). Marketing research concentrates not only on the alterations in the needs of the customers, but also it discusses how these alterations can be met with by exercising some specific strategies according to the growing requirements within a commercial set up. In the same way, a marketing researcher tries to explore the consumers’ views regarding the products already existing in the market to get acquainted with the alterations the customer look for with the passage of time. As the contemporary era is the era of perfect competition and there are plenty of products in each and every field, a company must have to keep an eye on the business strategic plans and innovations of the competitor companies in order to sustain its position within the business environment. Companies involve in PESTLE, SWOT and other relevant analysis in order to remain updated with the political, environmental, social, technical, legal and economic changes taking place far rapidly than it happened in past. Theoretically, many concepts are discussed under this topic, though practically, marketing research is the process based on all the developments being made in the business environment in everyday life. Kenneth D. Bailey (1987) has defined five steps of research process including choosing the research problem and stating the hypothesis, developing the research design, gathering of data, coding and analysis of data and the interpretation of findings on the basis of the data gathered. (1987:9-10). Almost all the researchers follow these steps while conducting both marketing as well as social research processes. 1.2 Management Decision Problems and Marketing Research Problems Decision-making plays vital role in the life and strategies of organizations and business entrepreneurship. Johnson and Scholes view strategy as the response of an organization to its environment. Managerial decision-making differentiates an organization with other industries existing under the similar business environment. Many cultural frames of reference influence the managerial decision-makings. These include industry frame of reference i.e. an industry recipe and organizational framework i.e. organizational paradigm. (1993:47). If management is more stable carrying long-term momentum of strategy, the paradigm will be more smooth and homogenous. It is in the benefit of an organization that it must contain and establish clear sets of beliefs that might be altered according to the changes taken place in the commercial environment .“The paradigm”, Johnson & Scholes state, “allows the experience gathered over years to be applied to a given situation so that the managers can decide upon relevant information by which to assess the need for change.” (1993:49). Management decision problems refer to the selection of choice out of different possible alternatives regarding some particular issue. The management has to look into all the factors and consequences while making decisions regarding some particular problem. Leadership maintains great responsibility in respect of making and applying strategy of an organization. It is the leader who is most important figure in success or failure of a project, strategy as well as organization itself. The Honda Company’s President, Mr. Nobuhiko Kawamoto, introduced collective and group work rather than individual efforts in the decision-making process, which significantly enhanced Honda’s position and business in international market. (Mair, 1996:670). As all the ideas, assumptions and principles of decision-making are part of the organization’s culture; these must be in sharing continuously within an organization’s framework. These ideas float from top to bottom, and a group psyche is developed in the minds of the members of staff at departmental level. These ideas help in respect of enhancing trust and making decisions and exercising time to time strategies. The organizational behaviour inspires continuous interaction and gives way to develop cultural traits among the managerial staff. Marketing, advertising, management and sales etc all come under the fold of decision making under the leadership and strategies. Management decision problems are different from marketing research problems. The former lays stress on making the decisions regarding the management of particular issues according to the changes in business environment. Marketing research problems, on the other hand, refer to the problems researchers face while conducting the whole marketing research process. The selection of research topic, selection of population under study and gathering as well as analysing of data to get accurate findings—all these factors are included in the marketing research problems. Use of proper techniques during the whole procedure, tools for data collection and proper coding and interpretation of results are also marketing research problems. A researcher has to be dexterous in all the steps, research methodology and terminology to conduct the whole course properly. Further, a researcher should remain absolutely neutral to conduct the whole process without any slightest biased ness or prejudice. He should conduct research on the basis of facts and figures without implementation of values or favouritism to the topic. 1.3 The Best Ways of Analysing Secondary and Primary Data Social and marketing researches are generally conducted in order to collect the data in respect of a market product. The researchers divide the data into two categories i.e. primary and secondary data. The primary data is one which is collected by the researcher himself by conducting surveys, interviews, observation, participant observation, focus group discussions and logs. In all these cases the researcher himself is involved to study the population and collect first hand information for the research process. In the same way, secondary data is also utilised for the gathering of information during the research process. Research articles, newspapers, books, magazines, periodicals, reviews, radio and television channels, internet websites, public records and learnt information from the people are included in the secondary data. “Secondary analysis”, Heaton argues, “involves the use of existing data, collected for the purposes of a prior study, in order to pursue a research interest which is distinct from that of the original work; this may be a new research question or an alternative perspective on the original question (Hinds, Vogel and Clarke-Steffen 1997, Szabo and Strang 1997: Quoted in Heaton, 1998). One of the most important matters of grave concern while conducting the marketing research is the validity of the data collected for this purpose during the whole process. “Statistical data analysis”, Bailey views, “is the culmination of the long process of hypothesis formulation, instrument construction and data collection.” (1987:390). The most appropriate methods to test the accuracy and soundness of primary data is to produce in the form of table presentation, univariate presentation, percentages and bivariate presentation. All these include the most appropriate methods of analysing both primary and secondary data. The tabular form, with percentage, ratio and frequency distribution support in estimating mean, mode , median, standard deviation and other methods of calculations to find out accurate and precise results. The power point presentation has brought revolution in respect of splendid staging of data in a precise and gorgeous way. 1.4 Research Planning and Result Planning is an essential part of research work, without which the process is not valid and reliable at all. The planning is developed during the research process keeping in mind which of the population is to be studied to get accurate findings related to the topic under study. Similarly, sampling is drawn by applying latest research techniques and methodology; and tools for the collection of data must also be appropriate according to the nature of research work so that there can occur no flaws while conducting the whole procedure. The questionnaire or interview-schedule should be comprehensive and precise to cover the relevant questions. Unnecessary questions should not be included in the tool for data collection. Similarly, the questions which can ignite the sentiments of the respondents must be avoided. There should be no biased ness while preparing and conducting the research process. The focus must be laid on the extraction of replies and responses. Unnecessary involvement in personal information is against the ethics of research process. Statistical formulae are applied in respect of finding out the results to stage them in tabular form. THE HOBBIT’S CHOICE RESTAURANT RESEARCH FINDINGS The main purpose of the present chapter is to explain the procedure through which the present study has been carried out. Universe: The findings of the research process conducted by Coy Rogers regarding Jeff Dean’s efforts to develop a new restaurant with novelty and innovation, based on the marketing research conducted for this purpose, has been defined in this chapter. The researcher, named Coy Rogers, selected a universe comprised of the residential area of New York City for his study. The residents belonging to different social classes were interviewed as pre-testing to sort out the sample out of the universe. The main concentration was to measure the interests and choices of upper class individuals, who pay regular visits to hotels and restaurants. Sampling: The researcher applied probability sampling by randomly selecting 400 residents on the basis of hotel-visiting at least once a fortnight. The researcher required 200 respondents each from upper middle and upper upper classes as the total sample comprised of 400 units of analysis (i.e. individuals). Tool for Data Collection: The researcher used interview schedule as the tool for data collection during the present research process. He also applied simple language where needed while interviewing the respondents. Construction of Interview Schedule: The interview schedule was constructed in English language. Local jargon and terminology was also applied to explain the questions where needed. The interview schedule consisted of thirty one questions, and had been divided into two parts and five pages. Part A was related to the demographic as well as socioeconomic information of the respondents, e.g. their name, age, gender, marital status, education, income and occupation. There were ten questions in this part. Part B comprised of twenty-one questions, which were developed to know the frequency of attending hotels and restaurants and reason to have hoteling rather eating at homes as well as aimed at knowing the choice as well as requirements of the respondents to be existed in the ideal hotel. Pre-testing: Pre-testing is the final stage in the construction of a questionnaire or an interview-schedule, not only to identify its flaws and weaknesses, but also to remove unnecessary questions included in it. Coy Rogers carried out the pre-testing by interviewing twenty respondents, ten from each social stratum. Each question was thoroughly examined and six questions were excluded and four were modified prior to finalizing the tool applied during the present marketing research process. Field Experiences: After pre-testing and finalizing the schedule, the actual data were collected. The researcher Coy Rogers personally interviewed all the four hundred respondents. It took many days for the whole procedure of data collection. The researcher felt pleasure at the eve where the respondents showed eagerness and keen interest in answering the questions related to the requirements for an ideal place of eating. They welcomed the research process and submitted their interests and flavours. Somehow, few of the respondents hesitated while revealing their income. The job and service classes were more co-operative in comparison with the businessmen while making the responses to the and upper class for the current study. Research Findings The researcher included thirty questions in the questionnaire, and the focus of the study was on frequency of visits to restaurants and hotels and relevant material. The researcher included each and every thing which he considered pertinent to the upper class visitors of hotels and restaurants. By this, according to him, all the information could be gathered so that the customers could enjoy all items of their interest in one single place. During the research process, approximately two third of the respondents favoured the idea of patronizing such type of upscale hotel outlined by Coy, while one third replied against patronizing. RESTAURANT WILL BE SUCCESSFUL The success of an institution, an organization, a business place and an entrepreneur depends on the quantity as well as quality of its customers, consumers and clients. These characteristics are the outcome of the services offered by the producers. The findings of the research process depict the very fact that in the presence of almost all the facilities and necessities a hotel should contain, Hobbit’s Choice Restaurant may be a great success. The reasons for the success include: The majority of the respondents admitted to patronize such type of restaurant, which clearly shows that people are in search of a sitting place that can fulfil their requirements related to eating and entertainments. A comfortable and luxurious sitting arrangement is always desired by the people especially during the leisure hours. In addition, further improvements can be introduced in the hotel keeping in mind the requirements and tastes of the respondents. Similarly, three fourth of the total respondents considered $2 to $26 as the reasonable amount spent by one person during eating at hotel on one visit. Thus, the fact comes out that even the upper classes lay stress on economical rates while getting entertainments. Being gorgeous as well as economical makes Hobbit’s Choice a success. The restaurant intends to offer radio, television, magazines and newspapers to its customers. Listening to radio was appeared, during the research, as one of the attractive activities at hotels; it is therefore an overwhelming majority showed its fondness towards this activity during hoteling. As Hobbit’s Choice Restaurant focuses on perfect enjoyment programmes, it has taken these facts into consideration. Rock, country & western and easy listening were among the popular modes of radio programmes. The findings also reveal that 90% of the respondents liked viewing different TV newscasts, though late night newscast was the most viewed one. Newspaper reading was also one of the significant hobbies for the respondents, somehow different respondents preferred different sections of newspaper for reading. Local section of the newspaper turned out as most wanted among the respondents. The subscription of magazine was also among the questions asked by the researcher, which looked a bit odd and extra one. Nearly three fifth of the respondents subscribed the magazine, while others replied in negative. Hobbit’s Choice restaurant has offered water front view to its customers. The research conducted by Coy Rogers explores that a sizeable number i.e. 74.5% of the respondents preferred water front view while eating at restaurants. Unusual desert did not win sound applause, as only 30% of the respondents favoured this idea. Large variety of entrees was also not very much appreciated, and only 30% of the respondents favoured the notion. In the same way, 67% of the respondents replied in favour of simple décor of hotel, while 68% of the respondents also opposed elegant décor at hotels and restaurants. It is therefore, generally people like simplicity and austerity at entertainment places and restaurants. On the other hand, preference for string quartet also did not meet with significant applause according to the research findings. The inclusion of Jazz Combo as music in the restaurant was supported by over three fifth of the respondents (61.50%). Restaurant Requires A Particular Form of Décor Jeff Dean’s major focus was on the décor of the new restaurant under his leadership and supervision. He has fantasised the novelist Hobbit and the characters he imagined, all of which were fond of quality meals and visiting hotels and restaurants. It is therefore, he intended to set up such chain of restaurants, which could meet the imaginary criteria. But the research reveals the very fact that majority of the respondents regularly visiting restaurants preferred simple and ordinary décor rather choosing and longing for elegant and gorgeous décor. Two third of the respondents wholeheartedly supported simplicity and austerity in eating places. Entrees Will Be Suitably Priced For Up -Scaled Consumers Jeff Dean considered unusual entrees as a positive step towards introducing innovative techniques in hotels. He also thought variety of entrees as an advantage over ordinary as well as already existing restaurants offering their services. But the research findings go against his perception and predictions altogether. Unusual entrees, according to the research findings conducted by Coy Rogers, could not meet with significant acceptance or applause, and people supported for normal entrees in hotels. Management Need To Be Concerned About A Location For The Restaurant One of the questions included in the interview schedule was related to the distance of the hotel from residence. The researcher asked the respondents whether it was an advantage to reach the restaurant within 30 minute drive or not. The response was mixed one and the respondents did not declare it an extra benefit that the restaurant must be very close to the residence or work place. Actually, people feel least hesitation in travelling long and wide to reach the place for which they had developed special taste. It is therefore sometimes one single factor may lead towards significant triumph without spending too much on décor and other things. “The multi-dimensions of strategy--, Andrews views, “product, market scope, supply, technology, synergy, major moves, and target results—do not require that a strategy be detailed and comprehensive. Rather, strategy should concentrate on key factors necessary for success.” (1971: 2). In the same way, sometimes décor maintains the most significant matter for some visitors and respondents as well. Target Market Is Correctly Identified One of the most rational parts of marketing as well as research marketing include proper planning and working on it. Targeting the market and consumers is most important factor during the journey towards achievements. “People trust those”, Culbert, & McDonough (1985:171) argue, “who put them in the proper context and distrust those who resist the images they seek to establish.” In this research, though Coy Rogers was able to target the real consumers, but there existed some flaws in targeting the universe. There are some individuals in every stratum of society, who keep aesthetic and artistic taste everywhere. These artist type people look for elegance and décor in every aspect of life—even in eating, playing, entertaining and recreation etc. Coy Rogers confined his research only towards the upper class individuals of a specific area, which obtained almost similar disposition and tastes too. Broader the canvas, more the colours and beauties as well as brightness on it. It is therefore, the inauguration of the dream restaurant does not appear as complete success. Details Of Advertising Approaches Can Be Confirmed, Management Need To Be Concerned Advertising is a universal phenomenon, and an essential part of sales, strategy and marketing. Even the worldwide famous brands, trademarks and products like Coca Cola, Nestle, Honda and Microsoft have to spend a specific percentage of money on advertising. The companies achieve targets with the help of advertising. It is therefore, special attention must be made towards this direction to make it a true achievement. Marketing research is a bold step towards advertising. It is marketing research that helps in introducing the product in the market, in people and consumers. Research marketing also helps in removing the flaws and adding the strengths to alter the product in such a way that it can win admiration, applause and appreciation from all corners. APPENDIX A GENERAL FINDINGS OF THE RESEARCH: Distribution of the Respondents According To Patronizing the Hotels Table 1.1 Frequency of Likelihood of Patronizing the Hotel Frequency No. of Respondents Percentage % One 52 13.00 Two 78 19.50 Three 172 43.00 Four 47 11.75 Five 51 12.75 Total 400 100.00 The data in the current research process comprised of the respondents who ate at least once in a fortnight from upscale hotels and restaurants. The above table reveals the very fact that nearly two third of the respondents who ate at hotels, maintained likelihood of patronizing the hotel followed by one third of the visitors, who had less likelihood regarding patronizing such stuff and place. Distribution of the Respondents According To Expected Price Spent at Hotels Table 1.2 Average Expenditure Frequency Percentage % $2-$16 175 43.75 $17-$26 116 29.00 $27-$36 60 15.00 $37-$46 27 6.75 $47-$56 12 3.00 $57-$66 10 2.50 Total 400 100.00 The above Table 1.2 mentions that the visitors liked to spend $2 to $64 per person during one visit as average price. And the total amount of the visitors preferred during a fortnight while eating from hotels and restaurants was recorded from $12 to $418. There is likelihood of visiting the hotels from one time to five times in two weeks. The table discloses that an overwhelming majority i.e. 72.75% of the respondents recommended average price $2 to $26, while one fourth of them spent $27 to $56 as average price at restaurants. Only 10 of the respondents proposed spending more than $56 during eating at hotel as average price. Distribution of Respondents According To Listening of Radio at Hotels Table 1.3 Category of Respondents No. of Respondents Percentage % Listen to Radio 384 96.00 Do not listen to Radio 16 4.00 Total 400 100.00 The above table shows that a very large number of the respondents listened to radio in hotels and restaurants. Only few of the respondents replied in negative in this respect. Kinds of Programmes Respondents Listen to in Radio at Hotels Table 1.4 Kind of Programme Country & Western Easy Listening Rock Talk/News No Preference Not applicable Total No. of Respondents 68 73 159 84 --- 16 400 Percentage 17.00 18.25 39.75 21.00 --- 4.00 100.00 Table 1.4 reveals the facts regarding preferences of respondents in respect of programmes while listening to radio. According to the table, Rock music is the favourite-most programme, as nearly two fourth of the respondents liked it followed by talk & news, which was listened by more than one fifth of the respondents. A slight more than one third of the respondents showed their inclinations towards country & western and easy listening. Distribution of Respondents on the Basis of Viewing Local TV News Table 1.5 Category of Respondents No. of Respondents Percentage % View Local TV news 358 89.50 Do not view Local TV News 42 10.50 Total 400 100.00 Table 1.5 defines the inclination of respondents towards viewing local TV news. It was found that an overwhelming majority i.e. 89.5% of the respondents viewed local TV news at hotels. Only 10.50 % of the respondents did not show their interest in this regard. Distribution of Respondents in respect of Newscast Table 1.6 Newscast Programme 7:00 a.m. News Noon News 6:00 p.m. News 10:00 p.m. News Not Applicable Total No. of Respondents 33 1 129 194 42 400 Percentage 8.25 0.25 31.50 48.50 10.50 100.00 100.00 The Table 1.6 describes various newscasts the respondents watch. According to the findings the data under study discloses, late night news programme is most popular among the respondents. It is therefore almost half of the respondents view 10:00 pm news. Nearly one third of the respondents view evening news of 6:00 pm, followed by morning news of 7:00 a.m. Only one out of four hundred respondent viewed Noon news. Distribution of Respondents on the Basis of Newspaper Reading Table 1.7 Category of Respondents No. of Respondents Percentage % Read Newspapers 378 94.50 Do not read Newspapers 22 5.50 Total 400 100.00 The researcher found that an overwhelming majority of the respondents i.e. 94.50% read various newspapers. Only few of the respondents did not study any of the newspapers at all. Distribution of the Respondents on the Basis of Newspaper Sections Table 1.8 Sections of Newspaper Editorial Business Local Classifieds Life, Health & Entertainments Do not Reply Total No of Respondents 52 65 118 57 74 34 400 Percentage % 13.00 16.25 29.50 14.25 18.50 8.50 100.00 The above Table reveals that local section is the most popular among respondents in present study, as nearly 30% of them read this section. All the other sections maintain almost equal popularity with life, health & entertainment section at the top. APPENDIX B QUESTIONNAIRE 1- Do you eat at this type of restaurant at least once every two weeks? 2- How many total dollars do you spend per month in restaurants? 3- How likely would it be for you to patronize this restaurant? (new upscale restaurant)? 4- What would you expect an average evening meal entrée item alone to be priced? 5- Would you describe yourself as one who listens to the radio? 6- To which type of radio programming do you most often listen? 7- Would you describe yourself as the viewer of local TV news? 8- Which newscast do you watch most frequently? 9- Do you read the newspaper? 10- Which section of the local newspaper do you read most frequently? 11- Do you subscribe to city magazine? 12- Prefer waterfront view? 13- Prefer drive less than 30 minutes? 14- Prefer formal wait staff wearing tuxedos? 15- Prefer unusual desserts? 16- Prefer large variety of entrees? 17- Prefer unusual entrees? 18- Prefer Simple Décor? 19- Prefer Elegant Décor? 20- Prefer String Quartet? 21- Prefer Jazz Combo? APPENDIX C Eight Power Point Slides (Attached in another File) MAJORITY OF THE ELITE CLASS PREFERS VISITING HOTELS AND RESTAURANTS AT LEAST ONCE IN A FORTNIGHT CONSUMERS SEEK ECONOMICAL RATES AT HOTELS AND RESTAURANTS PEOPLE LISTEN TO DIFFERENT PROGRAMMES AT RADIO WHILE EATING AT HOTELS 10:00 PM NEWSCAST IS MOST POPULAR AMONG VISITORS OF HOTELS AND RESTAURANTS THREE FOURTH OF THE RESPONDENTS PREFERRED WATER FRONT VIEW WHILE EATING AT RESTAURANTS 67% OF THE RESPONDENTS REPLIED IN FAVOUR OF SIMPLE DÉCOR OF HOTEL OVER TWO THIRD RESPONDENTS OPPOSED ELEGANT DÉCOR AT HOTELS AND RESTAURANTS STRING QUARTET COULD NOT MEET WITH SIGNIFICANT APPLAUSE OF THE MAJORITY OF RESPONDENTS JAZZ COMBO AS POPULAR MUSIC IN THE RESTAURANT WAS SUPPORTED BY OVER THREE FIFTH OF THE RESPONDENTS REFERENCES American Marketing association. (Quoted in the website "http://www.marketingpower.com/content4620.php") Andrews, K. R. The Concept of Corporate Strategy. Homewood: Dow Jones: Irwin, Inc. USA. 1971, Chapter 1 p.2 Bailey, Kenneth D. (1987). Methods of Social Research. 3rd Edition, New York Free Press; Collier Macmillan. Culbert, Samuel A. & McDonough, John J. 1985 Radiant Management. Power Politics and the Pursuit of Trust. The Free Press New York. Heaton, Janet. (Autumn 1998). Social Research Update Issue 22. (Quoted in http://www3.uakron.edu/witt/rmfcs/SRU22.html). Johnson, Gerry & Scholes, Kevan. (1993) Exploring Corporate Strategy. Text and Cases, 3rd ed. Prentice Hall New York. Logan, Newman. (1976) Strategy, Policy and Central Management, 7th Edition. South Western Publishing Company, Ohio. Mair, Andrew. (1996) Reconciling Managerial Dichotomies at Honda Motors. .Submitted to Birkbeck College, University of London. Pp 663-679. Zaidi, Mujtaba Haider & Javed, Muhammad Akram. (2002). New Dimensions of Qualitative Marketing Research. Moosa Publications, Urdu Bazaar, Gujranwala. http://www.marketingteacher.com Read More