The basic answer is to improve service. Exploratory research, theoretical framework, and empirical evidence revealed that the consumers’ choice of an airline is influenced by: safety, price of the ticket, frequent-flyer program, convenience of scheduling, and brand name.

A graphical model stipulated that consumers evaluate competing airlines based on factors of the choice criteria to select a preferred airline. The problem was that major airlines were quite similar on these factors. Indeed, "airlines offer the same schedules, the same service, and the same fares.” Consequently, United Airlines had to find a way to differentiate itself. Food turned out to be the solution.

Secondary data, like the J. D Power & Associates' survey on "current and future trends in airline food industry", indicated that "food service is a major contributor to customers’ loyalty". This survey also emphasized the importance of food brands.

The airline's Marketrak survey told United Airlines that "customers wanted more varied and up-to date food.”

The following research questions and hypotheses may be posed.

RQ1 How important is food for airline customers?

H1: Food is an important factor for airline travelers

H2: Travelers value branded food

H3: Travelers prefer larger food portions, but with consistent quality

H4: Travelers prefer exotic food

Characteristics which influence the research design included the identification of competing airlines (Delta, American, Aeroflot etc.), factors of the choice criteria (already identified), measurement of airline travel and loyalty.

This kind of research helped United Airlines to define their marketing research problem, and develop the approach. Focus groups and surveys were conducted to check customers' perceptions of food in United Airlines' aircraft. The results provided support for all the hypotheses (H1 to H4). United Airlines then made a few changes: new "culinary menus," larger portions of food, new coffee and branded products (e.g., Godiva chocolates). This resulted in better service, increasing customer satisfaction and fostering loyalty.

LECTURE 3: RESEARCH PROCESS AND RESEARCH DESIGN, RESEARCH BRIEF AND RESEARCH PROPOSAL

Classification of Marketing Research Designs

-Exploratory Research Design

-Conclusive Research Design

-- Descriptive Research

---Cross-Sectional Design

----Single Cross-Sectional Design

----Multiple Cross-Sectional Design

---Longitudinal Design

-- Casual Research

Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs

Cross-Sectional Design

ADV: Representative Sampling, Response bias

Longitudinal Design

ADV:Detecting Change, Large amount of data collection, Accuracy

Cross-Sectional Data May Not Show Change

Longitudinal Data May Show Substantial Change

Difference between Exploratory and Conclusive Research

Exploratory

Objective: To provide insights and understanding.

Characteristics: Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and non-representative. Analysis of primary data is qualitative

Findings/Results: Tentative

Outcome: Generally followed by further exploratory or conclusive research.

Conclusive

Objective: To test specific hypotheses and examine relationships.

Characteristics: Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative.

Findings/Results: Conclusive

Outcome: Findings used as input into decision making.

Comparison of Basic Research Designs

Exploratory:

Objective:Discovery of ideas and insights

Characteristics: Flexible, versatile. Often the front end of total research design

Methods: Expert surveys, Pilot surveys, Secondary data, Qualitative research

Descriptive:

Objective:Describe market characteristics or functions

Characteristics:Marked by the prior formulation of specific hypotheses. Preplanned and structured design

Methods:Secondary data, Surveys, Panels, Observation and other data

Causal

Objective: Determine cause and effect relationships

Characteristics:Manipulation of one or more independent variables. Control of other mediating variables

Methods:Experiments

MARKET RESEARCH

Problem-How to find the answer

What is the need, problem? Observation studies, habits and attitudes, market structure studies

What benefit and reason why?

How good is the idea / concept? Innocheck or Falcon

How good is the product? Product Test

How good is the advertising? PreView

How functional is the packaging? In Use Test

How good is the packaging design? Pack Test

How viable is the mix (Product, Pack, Adv, Price)? Simulated Test Market

How good is the distribution? Retail Index. Distribution Check

Were our pricing objectives met? Retail Index. Distribution check

How much shelf space did we get? Retail Index. Store Checks, Brand Tracking

How effective is my advertising campaign? Retail Index, Consumer Panel

How well are we doing? Brand Tracking

THE RESEARCH BRIEF (“A PROBLEM WELL DEFINED IS A PROBLEM HALF SOLVED”)

THE WHEEL OF RESEARCH

-Identify problem

-Write Brief

-Write proposal

-Do fieldwork

-Do DP

-Analysis

-Present results /Report

-Take action

-Monitor action

Main functions:

To give a …….COMPLETE AND CLEAR DESCRIPTION of the…

-Perceived problem

-Markets involved

-Decisions likely to be taken

COMMUNICATION

MARKET RESEARCH IS AS GOOD AS ITS BRIEF

- Written (never only verbal)

-Available in advance

-Personal discussion with agency, MRM and Brand Office

CONTENT

-Background

-Objectives

-Actions standards

-Target market

-Materials

-Timing

RELEVANT APPENDICES : BRAND POSITIONING / PERSONALITY /

ADVERTISING PACKAGING BRIEF

ATTRIBUTES/DATA FORMAT etc.

BACKGROUND

Essential information required for understanding the need for research

-Resume of the status quo

-Description of the problem and reasons for the problem (CORRECTLY IDENTIFY THE PROBLEM)

OBJECTIVES

Items of information required in order to solve the marketing problem (FOCUSED / SPECIFIC / KEY)

THE PROPOSAL TECHNIQUE / TEST DESIGN

-Sampling method (venue, home, postal, telephone, etc.)

-Substitution

-Weighting

-Use of special equipment / methods

-Recalls

SAMPLE

-Size of sample / sub-samples

-Justification of sample size

-Universe covered / justification

-How respondents qualify to be interviewed

-Validity / reliability of sample