Page 59 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Quantitative Techniques-II

Notes improve the quality of the product. But despite an improvement in quality, sales did not pick up.
In this case, we may say that the problem is ill-defined. The actual reason was ineffective sales
promotion. The problem thus needs to be carefully identified.

!
Caution It is vital and any error in defining the problem incorrectly can result in wastage
of time and money.
Problem definition might refer to either a real-life situation or it may also refer to a set of
opportunities. Market research problems or opportunities will arise under the following
circumstances – (1) Unanticipated change (2) Planned change. Many factors in the environment
can create problems or opportunities. Thus, changes in the demographics, technological and
legal changes affect the marketing function. Now the question is how the company responds to
new technology, or product introduced by the competitor or how to cope with the changes in
lifestyles. It may be a problem and at the same time, it can also be viewed as an opportunity. In
order to conduct research, the problem must be defined accurately.

While formulating the problem, clearly define:
1. Who is the focus?

2. What is the subject-matter of research?
3. To which geographical territory/area the problem refers to?
4. To which period does the study pertains to?

Example: “Why does the upper-middle class of Bangalore shop at Lifestyle during the
Diwali season”?
Here all the above four aspects are covered. We may be interested in a number of variables due
to which shopping is done at a particular place. The characteristic of interest to the researcher
may be (1) Variety offered at Lifestyle (2) Discount offered by way of promotion (3) Ambience
at the Lifestyle and the (4) Personalised service offered. In some cases, the cause of the problem
is obvious whereas in others the cause is not so obvious. The obvious causes are the products
being on the decline. Not so obvious causes could be a bad first experience for the customer.

4.1 Sources for Problem Identification

Research students can adopt the following ways to identify the problems:
 Research reports already published may be referred to define a specific problem.
 Assistance of any research organisation, which handles a number of projects of the
companies, can be sought to identify the problem.
 Professors working in reputed academic institution can act as guides in problem
identification.

 Company employees and competitors can assist in identifying the problems.
 Cultural and technological changes can act as a sources for research problem identification.
 Seminars/symposiums/focus groups can act as a useful source.

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