CHAPTER 5

Clarifying the Research Question through Secondary Data and Exploration

LEARNING OBJECTIVES
After reading this chapter, students should understand:
1. The purposes and process of exploratory research.
2. Two types and three levels of management decision-related secondary sources.
3. Five types of external information and the factors for evaluating the value of a source
and its content.
4. The process of using exploratory research to understand the management dilemma
and work through the stages of analysis necessary to formulate the research question
(and ultimately investigative questions and measurement questions).
CHAPTER SUMMARY
The major points found in this chapter include:
1. The exploratory phase of the research process uses information to expand
understanding of the management dilemma, look for ways others have addressed
and/or solved problems similar to the management dilemma or management question,
and gather background information on the topic to refine the research question.
Exploration of the problem is accomplished through familiarization with the available
literature, interviews with experts and other individual depth interviews, and group
discussions or some combination of these. Revision of the management or research
questions is a desirable outcome of exploration and enhances the researchers
understanding of the options available for developing a successful design.
2. Researching secondary sources is complex and challenging. There are two categories
of sources available (external and internal) and three types of sources (primary,
secondary, and tertiary). Primary sources are original works of research or raw data
without interpretation. Secondary sources are interpretations of primary data.
Tertiary sources may be interpretations of secondary sources or, more commonly,
finding aids such as indexes, bibliographies, and Internet search engines.
3. There are generally five types of information sources used in most literature searches,
including indexes and bibliographies, dictionaries, encyclopedias, handbooks, and
directories. Each is useful to an exploratory phase literature search in a variety of
ways. One of the harder tasks associated with using secondary sources is evaluating
the quality of the information. Five factors to consider when evaluating the quality of
the source are purpose, scope, authority, audience, and format.

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4. How one structures the research question sets the direction for the project. A
management problem or opportunity can be formulated as a hierarchical sequence of
questions. At the base level is the management dilemma. This is translated into a
management question and then into a research questionthe major objective of the
study. In turn, the research question is further expanded into investigative questions.
These questions represent the various facets of the problem to be solved, and they
influence research design, including design strategy, data collection planning, and
sampling. At the most specific level are measurement questions that are answered by
respondents in a survey or answered about each subject in an observational study.
BEHIND THE SCENES
Synopsis
In this chapters version of Behind the Scenes, Visionary Insights (VI) Jason Henry
and Sara Armstrong are fully into the MindWriter CompleteCare project. They begin a
discussion of where theyve been and where they are going in the process of defining the
research question.
Question for Discussion
What type of industry-wide studies would Jason like to see before he continues with the
research effort? Why would these studies be of interest?
Jason has just told Sara that he would like to see industry-wide laptop satisfaction studies.
He is hoping to find material that can be used as a benchmark with respect to his project.
In addition, he would also like to see any studies on special problems of laptop
construction, operation, use patterns, or repairs. These studies would assist him in
narrowing his options for research questions to be explored.
*****Use Discussion Question #8, #9, and #10 Here*****
Key Concepts Addressed in the Vignette
The following Key Concepts found in Chapter 5 are addressed in the Behind the Scenes
Vignette:

Exploratory research.
Literature research.
Exhibit 5-1.
Secondary sources.
Exhibit 5-2.
Types of information sources.
Evaluating information sources.

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The research question.

Measurement questions.

CHAPTER OUTLINE
1. A SEARCH STRATEGY FOR EXPLORATION
A. Exploration is particularly useful when researchers lack a clear idea of the
problems they will meet during the study.
1). Through exploration researchers develop concepts more clearly, establish
priorities, develop operational definitions, and improve the final research
design.
a. Exploration may save time and money.
b. Exploration is needed when studying new phenomena or situations.
c. Exploration is often, however, given less attention than it deserves.
*****Use Learning Objective #1 Here*****
2). The exploratory phase search strategy usually comprises one or more of the
following:
a. Discovery analysis of secondary sources such as published studies,
document analysis, and retrieval of information from organizations'
databases.
b. Interviews with those knowledgeable about the problem or its possible
solutions (called expert interviews).
c. Interviews with individuals involved with the problem (called individual
depth interviews (IDIs)a type of interview that encourages the participant
to talk extensively, sharing as much information as possible).
d. Group discussion with individuals involved with the problem or its possible
solutions (including informal groups, as well as formal techniques such as
focus groups or brainstorming).
*****Use Key Term expert interviews and individual depth interviews (IDIs)
Here****
3). Most researchers find a review of secondary sources critical to moving
from management question to research question.
4). In the exploratory research (e.g., research to expand understanding of an
issue, problem, or topic) phase of a project, the objective might be to
accomplish the following:
a. Expand your understanding of the management dilemma by looking for
ways others have addressed and/or solved problems similar to your
management dilemma or management question.
b. Gather background information on your topic to refine the research

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question.

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c. Identify information that should be gathered to formulate investigative

questions.
d. Identify sources for and actual questions that might be used as measurement
questions.
e. Identify sources for and actual sample frames (lists of potential participants)
that might be used in sample design.
5). In most cases, the exploration phase will begin with a literature searcha
review of books, articles, research studies, or Web-published materials
related to the proposed study.
6). In general, a literature search has five steps:
a. Define your management dilemma or management question.
b. Consult encyclopedias, dictionaries, handbooks, and textbooks to
identify key terms, people, or events relevant to the management
dilemma or management question.
c. Apply these key terms, names of people, or events in searching indexes,
bibliographies, and the Web to identify specific secondary sources.
d. Locate and review specific secondary sources for relevance to your
management dilemma.
e. Evaluate the value of each source and its content.
7). Often the literature search leads to the research proposal.
a. This proposal covers at minimum a statement of the research question and a
brief description of the proposed research methodology.
b. The proposal summarizes the findings of the exploratory phase of the
research, usually with a bibliography of secondary sources that have led to
the decision to propose a formal research study.
*****Use Key Term exploratory research and literature search Here; Use Learning
Objective #1 Here; Use Exhibit 5-1 Here*****

Teaching Tip: In the early part of this chapter, reference is made to data mining. This
subject will be explored in detail in Chapter 10. Additionally, the expanded explanation
of the research proposal is to be found in Chapter 6. Lastly, please emphasize to students
the importance of remembering what exploratory research does and the five steps of
literature search. Remembering this material will assist greatly with any expanded
research effort on the part of the students.

B. Levels of Information.
1). Information sources are generally categorized into three levels:
a. Primary sources.
b. Secondary sources.
c. Tertiary sources.
2). Primary sources are original works of research or raw data without
interpretation or pronouncements that represent an official opinion or position.

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a. Primary sources are always the most authoritative because the information
has not bee filtered or interpreted by a second party.
*****Use Key Term primary sources Here; Use Learning Objective #2 Here; Use
Discussion Question #2 Here*****
3). Secondary sources are interpretations of primary data.
a. Nearly all reference materials fall into this category.
b. A firm searching for secondary sources can search either internally or
externally.
*****Use Key Term secondary sources Here; Use Learning Objective #2 Here; Use
Discussion Question #1 and #2 Here; Use Exhibit 5-2 Here*****

Snapshot
Political Marketing Discovers Data Mining
The political advertising battle of the 2004 presidential election was one of the most
contentious and longest in recent history. Consider the following: (a) Gallup poll
findings indicated that people voted their moral and religious convictions as much as
their pocketbook; (b) younger people did not turn out at the polls as Kerry needed them to
(only 17 percent in this and the last election). New strategies are certainly in order.
Question:
As a consultant to Senator John Kerry, how would you have used the information
presented in the Snapshot?
Comment: As indicated in the Snapshot, one way would have been to identify workers
forced into unemployment during the G.W. Bush administration. Banner ads could target
these individuals on the Kerry Web site. Sending mass emails to the database of these
individuals would have been advisable. Based on Kerrys performance in the Democratic
primaries, his Web presence and use of email should be commended.

4). Tertiary sources are aids to discover primary or secondary sources or an

interpretation of a secondary source.
a. These sources are generally represented by indexes, bibliographies, or
Internet search engines.
*****Use Key Term tertiary sources Here; Use Discussion Question #2 Here*****

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5). It is important to remember that all information is not of equal value.

a. Primary sources are the most valuable.
C. Types of Information Sources.
1). Indexes and Bibliographies.
a. An index is a secondary data source that helps identify and locate a single
book, journal article, author, et cetera, from among a large set.
b. A bibliography is an information source that helps locate a single book,
article, photograph, et cetera.
c. Today, the most important bibliography in any library is its online catalog.
d. Skill in searching bibliographic databases is essential for any marketing
researcher.
*****Use Key Term index and bibliography Here; Use Learning Objective #3
Here*****

Snapshot
Marketing Intelligence is Crucial
How do agencies that provide clients with information support keep abreast of trends in
its own and clients industries? Simply put, they read a lot.
Question:
How would you characterize the learning/reading efforts of the organization discussed
in the Snapshot?
Comment: Note that the staff of the organization reads at least 50 magazines a month,
skim reads dozens of weeklies and newsletters, uses its online research skills, and uses
observation and communication methodologies to expand its information.

2). Dictionaries.
a. Dictionaries are secondary sources that define works, terms or jargon
unique to a discipline; may include information on people, events, or
organizations that shape the discipline; an excellent source of acronyms.
b. There are many specialized dictionaries that are field specific (e.g.,
medical dictionaries).
c. A growing number of dictionaries are found on the Web.
*****Use Key Term dictionary Here; Use Learning Objective #3 Here*****

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3). Encyclopedias.
a. An encyclopedia is a secondary source that provides background or
historical information on a topic.
b. In addition to finding facts, encyclopedias are useful in identifying
experts in a field or in finding key writings on any topic.
*****Use Key Term encyclopedia Here; Use Learning Objective #3 Here*****
4). Handbooks.
a. A handbook is a secondary source used to identify key terms, people, or
events relevant to the management dilemma or management question.
b. Handbooks often include statistics, directory information, a glossary of
terms, and other data such as laws and regulations essential to a field.
c. The best handbooks include source references for the facts they present.
d. One of the most important handbooks for business-to-business marketing is
the North American Industry Classification System, United States (NAICS).
*****Use Key Term handbook Here; Use Learning Objective #3 Here*****
5). Directories.
a. A directory is a reference source used to identify contact information.
b. Today, many directories are available at no charge via the Internet.
c. Most comprehensive directories are proprietary.
*****Use Key Term directory Here; Use Learning Objective #3 Here*****
D. Evaluating Information Sources.
1). A researcher using secondary sources will want to conduct a source
evaluationthe five factor process for evaluating a secondary source.
2). Marketers should evaluate and select information sources based on five factors
that can be applied to any type of source, whether printed or electronic. These
are:
a. Purposethe explicit or hidden agenda of the information source.
b. Scopethe breadth and depth of topic coverage, including time period,
geographic limitations, and the criteria for information inclusion.
c. Authoritythe level of the data (primary, secondary, tertiary) and the
credentials of the source author(s).
d. Audiencethe characteristics and background of the people or groups for
whom the source was created.
e. Formathow the information is presented and the degree of ease of
locating specific information within the source.
3). The purpose of early exploration is to help the researcher understand the
management dilemma and develop the management question.
a. Later stages of exploration are designed to develop the research question and
ultimately the investigative and measurement questions.

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*****Use Key Term search evaluation Here; Use Discussion Question #1 and #3
Here; Use Exhibit 5-3 Here*****

Teaching Tip: At this point in the chapters coverage it will be a good idea to stop and
ensure that students appreciate the importance of sources in a research investigation. Use
Exhibit 5-3 to indicate how Web sites can be evaluated. Reference information is nicely
summarized in the Appendices to the chapter where the bibliographic and Web search
processes are explained. The Web sites presented will prove invaluable in an initial
search. For additional information see the text DVD.

2. THE QUESTION HIERARCHY: HOW AMBIGUOUS QUESTIONS BECOME

ACTIONABLE RESEARCH
A. The process we call the management-research question hierarchy is designed to
move the researcher through various levels of questions, each with a specific
function within the overall marketing research process.
*****Use Learning Objective #4 Here; Use Discussion Question #11 Here; Use
Exhibit 5-4, 5-5, and 5-6 Here; Use Applying the Concepts Here; Use
Marketing Research Lab Here*****
B. The Management Question.
1). The management question is seen as the management dilemma restated in
question format.
a. The management questions that evolve from the management dilemma are
too numerous to list; however, they are categorized in Exhibit 5-7.
*****Use Key Term management question Here; Use Exhibit 5-7 Here; Use
Learning Objective #4 Here; Use Discussion Question #5 Here*****
2). Exploration.
a. Note that the exploration stage is exemplified with an illustration that
describes how BankChoice goes through the exploration process.
b. BankChoice ultimately decides to conduct a survey of local residents.
1). The process would most likely begin with an exploration of books
periodicals.
2). Once researchers become familiar with literature, interviews with
experts in the field would occur.
c. An unstructured exploration allows the researcher to develop and revise the
management question and determine what is needed to secure answers to the
proposed question.

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*****Use Learning Objective #4 Here*****

Teaching Tip: The usefulness of various qualitative techniques that can be used in
exploration is discussed in Chapter 9. You might go forward in the chapter to see if there
are any of these techniques that you might wish to introduce at this time.

Snapshot
Covering Kids: The Management-Research Question Hierarchy
The Robert Wood Johnson Foundation (RWJF), a health care philanthropy, sponsors the
Covering Kids initiative for one reason: millions of children in low- to moderate-income
families who are eligible for the State Childrens Health Insurance Program (SCHP) are
not enrolled.
Question:
What was revealed to RWJF by the creative combination of research design and data
analysis?
Comment: Two facts were revealed: (a) the winning communications framework (being
a good parent means raising happy, healthy children, and enrolling in a program offering
low-cost or free health care) is a smart choice for families), and (b) every communication
must give working parents an easy, fool-proof way to determine if their children were
eligible while reinforcing the logic that making the call to enroll their children would
address parents innate desire to be good parents. For additional assistance, send the
students to the text DVD.

C. The Research Question.

1). A research question(s) is the objective of the research study.
a. It is a more specific management question that must be answered.
b. Incorrectly defining the research question is the fundamental weakness in
the marketing research process.
c. As stated by Peter Drucker, The most serious mistakes are not being made
as a result of wrong answers. The truly dangerous thing is asking the wrong
questions.
2). Fine-Tuning the Research Question.
a. Fine-tuning the question is precisely what a skillful practitioner must do
after the exploration is complete.
b. At this point the research project begins to crystallize in one of two ways:
1). It is apparent the question has been answered and the process is finished.
2). A question different from the one originally addressed has appeared.
c. Other research-related activities that should be addressed at this stage are:
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1). Examine the variables to be studied.

2). Review the research questions with the intent of breaking them down
into specific second-and third-level questions.
3). If hypotheses (tentative explanations) are used, be certain they meet the
quality test mentioned in Chapter 3.
4). Determine what evidence must be collected to answer the various
questions and hypotheses.
5). Set the scope of the study by stating what is not a part of the research
question.
a). This will establish a boundary to separate contiguous problems from
the primary objective.
*****Use Key Term research question(s) Here; Use Learning Objective #4
Here*****
D. Investigative Questions.
1). Investigative questions are questions the researcher must answer to
satisfactorily arrive at a conclusion about the research question.
2). Typical investigative question areas include:
a. Performance considerations.
b. Attitudinal issues (like perceived quality).
c. Behavioral issues.
*****Use Key Term investigative questions Here; Use Learning Objective #4
Here*****
E. Measurement Questions.
1). Measurement questions are the questions asked of participants or the
observations that must be recorded.
2). Measurement questions should be outlined by the completion of the project
planning activities but usually await pilot testing for refinement.
3). Two types of measurement questions are common in marketing research:
a. Predesigned, pretested questions.
b. Custom-designed questions.
4). Predesigned measurement questions are questions that have been formulated
and tested previously by other researchers.
a. Such questions provide enhancement validity and can reduce the cost of the
project.
5). Custom-designed measurement questions are questions formulated
specifically for the project at hand.
a. These questions are collective insights from all the activities in the
marketing research process completed to this point, particularly insights
from exploration.
*****Use Key Term measurement questions, predesigned measurement questions,

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and custom-designed measurement questions Here; Use Learning Objective #4

Here; Use Discussion Question #6 and #7 Here; Use WWW. Exercise
Here*****

Teaching Tip: The issue of measurement questions, while only briefly covered in this
chapter, is addressed fully in Chapter 13. Should you wish to spend more time at this
point with measurement questions please review Chapter 13 carefully.

Close-Up
MindWriter Exploration
This Closeup reviews the exploration process used by MindWriter. The reader will see
the conversations that have led the principal characters to their exploration phase of the
continuing research project. Research questions and investigative questions are listed.
Exhibit 5-8 show a Gantt Chart for the MindWriter project. A pilot test has also been
proposed.
Question:
After examining the research and investigative questions shown in the Close-Up, do you
believe that Myras group has adequately translated Gracies management question?
Comment: The questions seem adequate; however, Myra and Jason may also wish to
interview the call center manager and the independent package companys account
executive to determine if they are on the right track with their investigative questions.
The investigative questions will need to be translated into measurement questions to ask
customers.

KEY TERMS
Key Terms appearing in this chapter are:
bibliography
dictionary
directory
encyclopedia
expert interview
exploratory research
handbook
individual depth interview (IDI)

index
investigative questions
literature search
management question
measurement questions
custom-designed
predesigned
primary sources

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research questions
secondary sources
source evaluation
tertiary sources

DISCUSSION QUESTIONS
Terms in Review
1. Explain how each of the five evaluation factors for a secondary source influences its
management decision-making value.
a. Purpose.
b. Scope.
c. Authority.
d. Audience.
e. Format.
Influences would most likely be as follows:
a. Purposethis area, when studied, would reveal the explicit or hidden agenda of
the information source. For example, any information taken from an organization
such as the National Rifle Association is tainted with the organizations lobbying,
political agenda, and views towards the Right to Bear Arms.
b. Scopein this area, the breadth and depth of topic coverage, including time
period, geographic limitations, and the criteria for information inclusion is
considered. Publications based in the United States often only present data
relevant to the United States and exclude information from abroad.
c. Authorityin this area, the level of the data (primary, secondary, or tertiary) and
the credentials of the source author(s) are presented. Often data are more credible
based on authorship or the reputation of the research gatherer.
d. Audiencehere, the characteristics and background of the people or groups for
whom the source was created. Note that in the Appendices to this chapter,
advanced research procedures and sources are meant for advanced researchers.
Terminology is often aimed at specific skill levels.
e. Formatin this area, how the information is presented and the degree of ease of
locating specific information within the source is explored. A manager must be
sure that the information format is compatible with his or her research needs.
This is especially true of secondary data which may have been collected for
purposes that are dissimilar to those of the current research effort.
2. Define the distinctions between primary, secondary, and tertiary sources in a
secondary search.
According to information presented in the chapter, the terms can be defined as
follows:

Primary sourcesoriginal works of research or raw data without interpretation or

pronouncements that represent an official opinion or position.
Secondary sourcesinterpretations of primary data.
Tertiary sourcesaids to discover primary or secondary sources or an
interpretation of a secondary source.

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3. What problems of secondary data quality must researchers face? How can they deal
with them?
According to information presented in the chapter (and as referenced in Question 1
above), marketers should evaluate and select information sources based on the five
factors listed below. The factors are purpose, scope, authority, audience, and format.
Exhibit 5-3 shows a good demonstration of how these five factors can be applied to
evaluating Web sites as information sources. It is recommended that you carefully
review this exhibit with the class and apply this analysis to other information sources
such as those mentioned in the chapter.
Making Research Decisions
4. Below are a number of requests that a research staff assistant might receive. What
specific tools or services would you expect to use to find the requisite information?
(Hint: Use the appendices at the end of the chapter and the sources listed on the DVD
that accompanies this text.)
a. Has the FTC published any recent statements (within the last year) concerning its
position on quality stabilization?
b. I need a list of the major companies located in Greensboro, North Carolina.
c. Please get me a list of the directors of General Motors, Microsoft, and Morgan
Stanley & Co.
d. Is there a trade magazine that specializes in the flooring industry?
e. I would like to track down a study of small-scale service franchising that was
recently published by a bureau of business research at one of the southern
universities. Can you help me?
a. There are several sources of information that might be used to answer this
question. First, checkout ftc.gov. Next, examine GPO Access where you will
find recent government acts or legislation. Lastly, a Google search (or another
search engine) can reference the specific query.
b. Use Where or What searches (as explained in Appendix 5a) to determine
businesses in the specific geographic location. Other search possibilities would
include the Greensboro Chamber of Commerce, a business index for the area, or a
Google search.
c. For the selected companies the researcher would want to see an Annual Report.
This might be found on the company Web sites (where a list of directors is often
included). A Google search can be conducted on the specific companies or an
index of corporate boards of directors can be examined.
d. Examine a publication called Standard Rate and Data Service. This publication
provides data on every magazine published in the United States and is cross-

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referenced by geography and magazine subject. Traditional Web searches can

also be used.
e. This is a sophisticated search. The researcher is looking for a specific study that
was published by a business research bureau at a southern university. Obviously,
a title of the study would help. Without the title, we can look for business
research bureaus, universities that have business research bureaus, or a specific
Google search for small-scale service franchising.
5. Confronted by low sales, the president of Oaks International Inc., asks a research
company to study the activities of the customer relations department in the
corporation. What are some of the important reasons that this research project may
fail to make an adequate contribution to the solution of management problems?
The President of Oaks International Inc. faces a management dilemma: the company
has some form of difficulty with its customer relations department (indicated by
managements need to study the department) with respect to low sales. The
management question should seek to identify the factors that led to concerns with the
department. In this case the President is assuming that (1) there is concern within the
department or organization with respect to this departments role in sales
maintenance, and (2) there is a relationship between poor sales and customer
relations. The latter relationship, even if partially valid, may be largely influenced by
moderating and intervening variables. Focusing on these variables may be important,
as their salience may be as high as that of good customer relations. Finally, the cause
of low sales may not lie in customer relations, but in other matters such as the plant,
equipment, materials availability, poor product design, the wrong target market, or
technology. The Presidents approach biases the results, and an exploratory exercise
to determine possible causes of low sales is necessary. This may be followed up by a
pilot study to narrow key research questions to factors that have greater importance
with respect to sales.
6. The editor of Gentlemens Magazine has asked you to carry out a research study. The
magazine has been unsuccessful in attracting advertising revenue from shoe
manufacturers. The shoe manufacturers claim that mens clothing stores are a small
and declining segment of the mens shoe business. Since Gentlemens Magazine sells
chiefly to mens clothing store managers, the manufacturers have reasoned that it is
not a good advertising medium for their shoes.
The editor disagrees about the size and importance of shoe marketing through mens
clothing stores. Neither side has much direct evidence on the matter, so the editor
asks you to carry out a study to determine the facts about these stores as a channel of
distribution for mens shoes. You agree to do so and proceed by first structuring the
problem.
1. Management Question. The problem facing the magazine management is that of
expanding their advertising revenue. There are a number of ways that this might
be done and research might help in many of them. In this case, however, the

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management has already decided that the managements problem is to secure

more advertising from the shoe industry. The researcher accepted the problem
definition as stated.
2. Research Question. The research question was defined as Are the actual or
potential sales of mens shoes in menswear stores large enough to represent an
advertising opportunity to shoe manufacturers?
3. Investigative Questions. Three major investigative questions were proposed:
A. Are shoe sales important to menswear stores?
B. Have shoe sales been growing in importance in menswear stores, and are they
expected to grow in the future?
C. Does the situation in menswear stores present an advertising opportunity for
shoe manufacturers?
It was agreed that the only feasible research design given the available budget
was a national mail survey. Because of the limited scope of the study and the
problems of population estimation from a mail survey, it was agreed that the
research study would be concerned chiefly with the first two questions. The
third question would be approached within the limits of the research design,
but a full answer to this question would require information not available to
the researcher.
To answer the major investigative questions posed above it was necessary to
obtain information on a number of much more specific points. These represent
investigative sub-questions that we must know to answer the three major
questions. Parenthetical statements attached to them suggest the rationale for
including each question in the study.
D. Are shoe sales important to menswear stores?
1. What percentage of menswear stores carry mens shoes? (One important
measure of this is the channel of distribution and is an indicator of the
importance of shoes to retailers.)
2. What percentages of menswear store sales come from shoes? (A measure
of the importance of shoes to total store operation.)
3. How do shoe gross margins compare with total store gross margins?
(Another measure of shoe importance to the store and an indicator of
whether or not shoes are likely to secure the store managements
attention.)
4. How do space/sales ratios compare between shoe departments and the
total store? (Another measure of the contribution of shoes to the total
store volume. Also a measure of how secure shoes might be as a part of
the store product mix.)
5. How important are shoes as traffic builders, extra sales, or extra business
from those who do not buy other merchandise at the time? (Another
measure of the value of shoes to store success and an indicator of the mix
security of shoes.)

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E. Have shoe sales been growing in importance in menswear stores, and are
they expected to grow in the future?
1. What percentage of the stores has added, expanded, dropped, or
reduced shoe operations in the last five years? (A measure of the
changes in importance of shoes in menswear stores in recent years.)
2. Have shoe sales grown or declined in absolute dollars in recent years?
As a percentage of total store sales? (Measures of the changes that
have taken place in menswear stores concerning shoes.)
3. What are store managers expecting in the next few years concerning
shoes? Add or drop? Reduce or enlarge? (A measure of store operator
expectations concerning shoes.)
F. Does the situation in menswear stores present an advertising opportunity
for shoe manufacturers?
1. What percentage of the mens shoe volume is sold through menswear
stores? (A very crude measure of the importance of this channel to the
manufacturer. This estimate will be carefully hedged since there is
little hope that the survey can provide an unbiased estimate of total
sales of mens shoes.)
2. How important are leased departments in mens shoes operations in
menswear stores? (A measure of the need for shoe manufacturers to
contact individual store managers to secure distribution, or whether the
approach of a few central buying firms might suffice.)
3. What price lines are carried, and what is the relative importance of
each? (A measure of the type of demand for mens shoes represented
in this channel.)
4. What is the importance of casual shoes versus dress shoe sales?
(Another measure of the type of shoe demand that prevails in this
channel.)
5. What brands are carried and what is the relative importance of each
brand? (A measure of the penetration by various manufacturers as well
as a measure of the product characteristics that are popular in this
channel.)
7. Develop the management-research question hierarchy for a management dilemma
you face at work or with an organization to which you volunteer.
The student's answers to this question can focus on many management problems.
Some students should be invited to share their answers to this question, and form the
hierarchy. Other students with similar management dilemmas can assist that student
to build a complete hierarchy. Each student should start with a symptom to reveal the
management dilemma. Some examples of management dilemmas that students might
use are:
workers not reporting for scheduled shiftsexplore scheduling
high worker turnover (losing workers to competitive firms)explore hiring, pay,
scheduling, training, customer service complaints

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complaints from workers about disproportionate effort or results not reflected in

their payexplore pay, benefits, scheduling, incentive programs, productivity
programs
high waste level within productionexplore machinery accuracy and
maintenance, employee training, pay, supervision
high level of defect within productionexplore machinery accuracy, training,
pay, supervision
low number of customers who remember advertisingexplore message, media,
timing

Behind the Scenes

8. Using the MindWriter postservicing packaging alternative as the research question,
develop appropriate investigative questions within the management-research question
hierarchy by preparing an exhibit similar to Exhibit 5-6.
Post Servicing Packaging Alternatives: Investigative Questions
Starting from the base issue of breakage in delivery, the investigative questions
bifurcate, since there are two options:
1. Retain a courier service, or change to another, but modify packing requirements.
2. Change to air transport.
Each option generates associated investigative questions. A sample of such questions
is given below.

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6
5
4
3
2
1

Retain Courier
Change to Air Transport
Efficiency implications of the choice?
Efficiency implications of the choice?
Cost implications of (4)?
Cost implications of (4)?
Packaging modifications for
Any packing changes needed?
satisfactory deliveries?
What are the breakage issues with
What are the breakage issues with air
courier companies?
transport?
Choose a courier company.
Choose air transport.
Management Question: How should the company decrease breakage in post
service deliveries?

9. Using Exhibits 5-4, 5-6, 5b-1, and 5b-2, state the research question and describe the
search plan that Jason should have conducted before his brainstorming sessions with
Myra Wines. What government sources should be included in Jasons search?
A possible problem with reference to the management dilemma, Exhibit 5-4 in the
textbook defines the management question as What can be done to improve the
CompleteCare program for MindWriter product repairs and servicing? It hereafter
develops corresponding exploration and research questions. In this question we make
an effort to identify alternative management problems that cause the management
dilemma, and develop corresponding management and research questions. The
management dilemma is provoked by increasing complaints and letters about post
purchase service. This seems to indicate deterioration in service quality over time.
One class of management questions concerns trouble shooting or control situations,
and if the management dilemma is viewed within this perspective, then management
questions extend beyond decision choices to improve service quality. The focus here
is the control process, issues of responsibility and accountability, and appropriate
procedures to limit the possibility of failure or deterioration in the quality of service.
Management Questions:
What is the cause for the increase in post purchase service complaints?
In terms of systems, controls, and trouble shooting, what should be done to
decrease the number of complaints?
From the standpoint of the organization, which personnel and which stages of
the process should be identified as responsible and accountable for service
quality deterioration?
Research Questions:
Is the increase in complaints merely an outcome of the increased volumes in
the market, or is there a real deterioration in service quality?
How many complaints have occurred at different stages of the service process,
and what has been the pattern over time? (For instance, the complaints at the
stage of telephone inquiry, pick-up time, repeat complaints, delivery delays,
initial telephone clarifications after sale, etc.)

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What are the categories of complaints, and what has been the pattern of
complaints over time? (Categories: complaints regarding software installation,
hardware, power supply, delays because of: parts availability, late pick up, late
delivery)
What are the existing controls in the company, and how do they compare to
industry norms?
What are the norms and control systems recommended? (These norms
generally relate to outcome and behavior controls and systems.) Controls and
norms would be norms such as:
1. percentage of calls where problems should be solved on the phone
2. maximum percentage of repeat complaints
3. average repair time
4. average delivery time
5. maximum average breakage allowed
6. average repair cost per laptop
7. average number of laptops repaired per technician per day

Examine Appendix 5a for information on potential government sources of

information to assist in solving Jasons research question. Beginning sources can be
from the FCC or FTC that focus on difficulties with customer complaints and their
common sources. Articles may be obtained on customer satisfaction versus customer
complaints and their sources of complaint. A What search is recommended. See
Exhibit 5a for additional ideas.
10. Using the uneven courier performance problem or the product damaged during
repair problem (see the Closeup on page 113), develop some exploration activities
that would let Jason or Myra proceed to develop a more refined research question
dealing with this problem.
The Uneven Courier Performance Problem
With regard to the above problem, reference to Exhibit 5-4 and 5-5 in the textbook is
revealing. Exploration has been done at two stages, stage 2 and stage 4. At stage 2
there is no exploration of the courier problem at all, and the exploration is restricted
to the product, satisfaction with service, repair and technical support. The information
obtained lacks specific focus on courier and delivery systems. Likewise, even though
the brainstorming at stage 2 lists uneven courier performance as a possible problem,
the only exploration at stage 4 is an interview with an independent package company
account executive. [Exploration of the uneven courier supply issue has therefore to
start more rigorously, and with the normal starting point, secondary data analysis.]
A. Exploration Activities:
1. Explore the cost economics and delivery advantages of different services, both
couriers and alternative means of transport (Source: Brochures and literature
from other courier companies, freight forwarding companies, airlines,
shipping agencies; personal contact may be made at a later stage).

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2. Explore the sequence of courier operations: waiting time, product pick up and
delivery time, feedback on delivery, and the condition of the product at the
time of delivery (sources: Complete Care records, ABC Courier
representatives, representatives of other courier companies).
From Concept to Practice
11. Develop the management-research question hierarchy (Exhibits 5-4 and 5-6), citing
marketing dilemma, management question, and research question(s) for each of the
following:
a. The president of a home health care services firm.
b. The vice president of investor relations for an auto manufacturer.
c. The retail advertising manager of a major metropolitan newspaper.
d. The chief of police in a major city.
a. The president of a home health care services firm

Management Dilemma: The firm is experiencing an increasing number of

complaints regarding health care service quality.

Management Problem: What can be done to improve service quality?

Research Questions: (1) Is there a real problem in the quality of service, or

is the "perceived" quality of the service poor? (2) Which categories of health
care services are generating the major portion of complaints? (3) What
specific improvements can improve these services? (4) What may be expected
as an outcome of the improvements?
b. The vice president of investor relations for an auto manufacturer

Management Dilemma: Low productivity of stock and high price of stock

relative to competitors.

Management Question: What are the causes for low productivity of stock
and high price of the stock?

Research Questions: (1) What are the causes of low productivity of the
stock that relate to internal control issues? (2) What are the causes of low
productivity that relate to technology, or external factors? (3) What are the
causes of the high stock price? (4) Is there a method whereby stock price can
be lowered to attract additional investors? If so, what are its major
dimensions?
c. The retail advertising manager of a major metropolitan newspaper

Management Dilemma: Should advertising rates be revised?

Management Question: Should the advertising rates be revised, by how

much, and what gains are expected from the revision?

Research Questions: (1) What are the rates of competing publications? (2)
What should the differentials between rates for different "positions" be? (3)
What impact will a rate increase have on the demand for advertising? (4)
What should the revised advertising tariff structure be?

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d. The chief of police in a major city

Management Dilemma: A need for more efficient dispatching of police

officers.

Management Question: Which are the systems that have a more efficient
dispatch of officers, and what are the associated implementation costs?

Research Questions: (1) Which dispatch systems are in use in other places,
what are their costs, and how is their efficiency? (2) What are the steps and
costs associated with the introduction of the three most efficient alternatives?
APPLYING THE CONCEPTS
Since the beginning of the 20th century, Americans have had a love affair with gadgets.
Today, many of the gadgets from the last century seem primitive and sometimes even
quaint. However, during their day they received notoriety and, to some extent, changed
consumers daily lives. What are the new gadgets of the 21st century that will have the
impact of personal computers, zippers, Velcro, automatic transmissions, the solar cell, the
iPod, and the Internet? This century is a little young to be able to tell for sure but
indications are that Motorolas RAZR V3 Phone, Tivolis Model One radio, the Dyson
vacuum cleaner, and Sonys 128 MB Thumb Drive will be among those gadgets that will
impact our purchasing decisions for the next few years. It is anticipated that these
devices will serve as benchmarks in their individual industries, and will open the doors to
technological advance in the industries from which they come.
Applying Your Research Skills
Your assignment is to pick one of the above 21st century gadgets (see Motorola.com,
tivoliaudio.com, dyson.com, or sony.com for further information) mentioned above, and
using Exhibit 5-6 formulate a research question that will allow the researcher to project
the success or failure (with respect to long-term success and impact) of the gadget you
have selected. Be specific in your comments.
Instructor Tips
Students should first visit the associated Web site(s) to determine any new advances or
modifications to the products mentioned. The next steps no matter which gadget is
selected are to examine the management dilemma (e.g., how to predict success or failure
of a gadget device), an exploration process, define the management question (e.g., The
organization can determine success or failure of the gadget by examining the impact on a
consumers daily life from the gadget.), an exploration of that management question, and
the formulation of several research questions (e.g., What is the association between high
sales and a gadgets acceptability to the marketplace? Do high sales indicate a long
product life cycle? Does the role of the innovator impact the acceptability of a gadget?
Et cetera. Et cetera.). These primitive and brief statements should get the students
started.

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MARKETING RESEARCH LAB

Have you ever wished you had a crystal ball and could see into the future? Most
marketing researchers have. One organization that has a history of assisting marketers in
their desire to see what lies ahead is the Institute for the Future (see iftf.org). Your
assignment is to go the organizations Web site and briefly summarize how a marketing
researcher might use the wealth of research devices provided by this organization. Note
that one way to gain new insights into exploration is to use maverick methods to
accomplish the task. The Institute offers several of these methods and insights. Note also
that the organization encourages visitors to ask questions. By asking questions, the future
is often revealed. Try it!
Instructor Discussion
This organization is very responsive to students and their questions. The organizations
noted futurist Paul Saffo has appeared on many programs to discuss the questions that
impact the future and how our society needs to embrace research that will assist
entrepreneurs and marketers in discovering consumers wants and needs. Students should
be able to easily list the references, indexes, bibliographies, working papers, monographs,
and books that are suggested by the Web site. Additionally, the organization itself is a
reference source as it will often take a question, research it for the person asking the
question, and relate a course of action or information that will assist in decision making.
Students will find this Web site to be an interesting reference point for future needs.

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