Page 12 - DMGT404 RESEARCH_METHODOLOGY

Research Methodology

Notes
Example: If research finding is that, the previous advertisement by the company was indeed
ineffective, what course of action the company intends to take (a) Increase the budget for the next
Ad (b) Use different appeal (c) Change the media (d) Go to a new agency.
Caution: If objectives are proper, research questions will be precise. However we should
remember that objectives, do undergo a change.
2. Consider environmental factors: Environmental factors influence the outcome of the
research and the decision. Therefore, the researcher must help the client to identify the
environmental factors that are relevant.

Example: Assume that the company wants to introduce a new product like Iced tea or
frozen green peas or ready to eat chapathis.

The following are the environmental factors to be considered:
(a) Purchasing habit of consumers.
(b) Presently, who are the other competitors in the market with same or similar product.

(c) What is the perception of the people about the other products of the company, with
respect to price, image of the company.
(d) Size of the market and target audience.

All the above factors could influence the decision. Therefore researcher must work very
closely with his client.
3. Nature of the problem: By understanding the nature of the problem, the researcher can
collect relevant data and help suggesting a suitable solution. Every problem is related to
either one or more variable. Before starting the data collection, a preliminary investigation
of the problem is necessary, for better understanding of the problem. Initial investigation
could be, by using focus group of consumers or sales representatives.

If focus group is carried out with consumers, some of the following question will help the
researcher to understand the problem better:
(a) Did the customer ever included this company's product in his mental map?

(b) If the customer is not buying the companies product, the reasons for the same.
(c) Why did the customer go to the competitor?
(d) Is the researcher contacting the right target audience?
4. State the alternatives: It is better for the researcher to generate as many alternatives as
possible during problem formulation hypothesis.

Example: Whether to introduce a Sachet form of packaging with a view to increase sales. The
hypothesis will state that, acceptance of the sachet by the customer will increase the sales by
20%. Thereafter, the test marketing will be conducted before deciding whether to introduce
sachet or not. Therefore for every alternative, a hypothesis is to be developed.

1.3.2 Evaluate the Cost of Research

There are several methods to establish the value of research. Some of them are (1) Bayesian
approach (2) Simple saving method (3) Return on investment (4) Cost benefit approach etc.

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