Several years ago, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually, the company declared bankruptcy, regrouped, and found itself able to resume business. Its board of directors recently announced that the company would resume flying if it could prove that the airlines could regain at least 75 percent of its lost customers. It decided to allocate $50,000 to determine the likelihood that its former customers would fly on the airline again and what methods requiring little or no money could be used to increase that probability. This description represents which stage in the marketing research approach?
A. define the problem
B. develop the research plan
C. collect relevant information
D. develop findings
E. take marketing actions

A. Define the problem.

Explanation:

SwissAir is at a stage of defining the problem because it has decide to allocate $50,000 to determine the likelihood that its customers will return to SwissAir and they will fly through SwissAir airline again they believe if atleast  75% of its customers return to the airline which were lost due to the bankruptcy of the company.

The correct answer is letter "A": define the problem.

Explanation:

The marketing research approach is an analysis that aims to gather data useful for the company to resolve problems regarding the operations of the firm. Marketing research is also helpful to identify opportunities for changing corporate processes and implement new strategies.

This research involves five (5) steps: define the problem, develop a research plan, collect data, analyze data, and take action. Defining the problem is the most important step since it is the start point of all the activities that will be performed during the research. All the questions possibles should be answered in an attempt to identify the main issue of the firm.

Therefore, SwissAir by trying to determine if former customers would fly again with them after recovering from bankruptcy is initiating marketing research. Thus, the firm is in the stage of defining the problem.