Chapter ThreeResearch Design
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Research Design: DefinitionA research design is a framework or
blueprint for conducting the marketing research project. It details
the procedures necessary for obtaining the information needed to
structure or solve marketing research problems.
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Components of a Research DesignDefine the information needed
(Chapter 2)Design the exploratory, descriptive, and/or causal
phases of the research (Chapters 3 - 7)Specify the measurement and
scaling procedures (Chapters 8 and 9) Construct and pretest a
questionnaire (interviewing form) or an appropriate form for data
collection (Chapter 10)Specify the sampling process and sample size
(Chapters 11 and 12)Develop a plan of data analysis (Chapter
14)
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A Classification of Marketing Research DesignsSingle
Cross-Sectional DesignMultiple Cross-Sectional DesignFig.
3.1Research DesignConclusive Research DesignExploratory Research
DesignDescriptive ResearchCausal ResearchCross-Sectional
DesignLongitudinal Design
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Exploratory & Conclusive Research DifferencesObjective:
Character-istics:
Findings /Results:
Outcome:To provide insights and understanding.
Information needed is defined only loosely. Research process is
flexible and unstructured. Sample is small and non-representative.
Analysis of primary data is qualitative.
Tentative.
Generally followed by further exploratory or conclusive
research.To test specific hypotheses and examine relationships.
Information needed is clearly defined. Research process is
formal and structured. Sample is large and representative. Data
analysis is quantitative.
Conclusive.
Findings used as input into decision
making.ExploratoryConclusiveTable 3.1
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Objective:
Characteristics:
Methods:A Comparison of Basic Research DesignsDiscovery of ideas
and insights
Flexible, versatile
Often the front end of total research design
Expert surveysPilot surveysSecondary dataQualitative
researchDescribe market characteristics or functions
Marked by the prior formulation of specific hypotheses
Preplanned and structured design
Secondary dataSurveysPanelsObservation and other dataDetermine
cause and effect relationships
Manipulation of one or more independent variables
Control of other mediating variables
ExperimentsExploratoryDescriptiveCausalTable 3.2
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Uses of Exploratory ResearchFormulate a problem or define a
problem more preciselyIdentify alternative courses of actionDevelop
hypothesesIsolate key variables and relationships for further
examinationGain insights for developing an approach to the
problemEstablish priorities for further research
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Methods of Exploratory ResearchSurvey of experts (discussed in
Chapter 2).Pilot surveys (discussed in Chapter 2).Secondary data
analyzed in a qualitative way (discussed in Chapter 4).Qualitative
research (discussed in Chapter 5).
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Use of Descriptive ResearchTo describe the characteristics of
relevant groups, such as consumers, salespeople, organizations, or
market areas. To estimate the percentage of units in a specified
population exhibiting a certain behavior. To determine the
perceptions of product characteristics.To determine the degree to
which marketing variables are associated.To make specific
predictions It requires clear specification of 6 Ws Who, What,
When, Where, Why and Way.
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Methods of Descriptive ResearchSecondary data analyzed in a
quantitative as opposed to a qualitative manner (discussed in
Chapter 4)Surveys (Chapter 6)Panels (Chapters 4 and 6)Observational
and other data (Chapter 6)
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Cross-sectional DesignsInvolve the collection of information
from any given sample of population elements only once. In single
cross-sectional designs, there is only one sample of respondents
and information is obtained from this sample only once.In multiple
cross-sectional designs, there are two or more samples of
respondents, and information from each sample is obtained only
once. Often, information from different samples is obtained at
different times. Cohort analysis consists of a series of surveys
conducted at appropriate time intervals, where the cohort serves as
the basic unit of analysis. A cohort is a group of respondents who
experience the same event within the same time interval.
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Longitudinal DesignsA fixed sample (or samples) of population
elements is measured repeatedly on the same variablesA longitudinal
design differs from a cross-sectional design in that the sample or
samples remain the same over timeCross sectional design gives a
snap shot of the variables of interest at single point in time, a
longitudinal study provides a series of picture that give an
in-depth view of the situation and the changes that take place
overtime.
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Relative Advantages and Disadvantages of Longitudinal and
Cross-Sectional DesignsEvaluation CriteriaCross-Sectional
DesignLongitudinal DesignDetecting ChangeLarge amount of data
collectionAccuracyRepresentative SamplingResponse bias
---++
+++--Note: A + indicates a relative advantage over the other
design, whereas a - indicates a relative disadvantage.Table 3.4
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Cross-Sectional Data May Not Show ChangeBrand Purchased Time
PeriodPeriod 1Period 2SurveySurveyBrand A200 200Brand B300300Brand
C500 500Total 1000 1000Table 3.5
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Longitudinal Data May ShowSubstantial ChangeBrand Purchased in
Period 1Brand Purchased in Period 2Brand ABrand BBrand C TotalBrand
ABrand BBrand CTotal100 25 75200 50100150300 50175275500 200 300
5001000Table 3.6
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Uses of Casual ResearchTo understand which variables are the
cause (independent variables) and which variables are the effect
(dependent variables) of a phenomenonTo determine the nature of the
relationship between the causal variables and the effect to be
predictedMETHOD: Experiments
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Potential Sources of Error inResearch DesignsFig. 3.2
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Errors in Marketing ResearchThe total error is the variation
between the true mean value in the population of the variable of
interest and the observed mean value obtained in the marketing
research project. Random sampling error is the variation between
the true mean value for the population and the true mean value for
the original sample. Non-sampling errors can be attributed to
sources other than sampling, and they may be random or nonrandom:
including errors in problem definition, approach, scales,
questionnaire design, interviewing methods, and data preparation
and analysis. Non-sampling errors consist of non-response errors
and response errors.
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Errors in Marketing ResearchNon-response error arises when some
of the respondents included in the sample do not respond.It is the
variation between the true mean value of the variable in the
original sample and the true mean value in the net sample. Response
error arises when respondents give inaccurate answers or their
answers are misrecorded or misanalyzed.It is defined as the
variation between the true mean value of the variable in the net
sample and the observed mean value obtained in the marketing
research project.
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Marketing Research at Citicorp is typical in that it is used to
measure consumer awareness of products, monitor their satisfaction
and attitudes associated with the product, track product usage and
diagnose problems as they occur. To accomplish these tasks Citicorp
makes extensive use of exploratory, descriptive, and causal
research. Often it is advantageous to offer special financial
packages to specific groups of customers. In this case, a financial
package is being designed for senior citizens.
The following seven-step process was taken by marketing research
to help in the design. Citicorp Banks on Exploratory,
Descriptive,and Causal Research
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Citicorp Banks on Exploratory, Descriptive,and Causal Research1)
A taskforce was created to better define the market parameters to
include all the needs of the many Citicorp branches. A final
decision was made to include Americans 55 years of age or older,
retired, and in the upper half of the financial strata of that
market.
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2) Exploratory research in the form of secondary data analysis
of the mature or older market was then performed and a study of
competitive products was conducted. Exploratory qualitative
research involving focus groups was also carried out in order to
determine the needs and desires of the market and the level of
satisfaction with the current products. In the case of senior
citizens, a great deal of diversity was found in the market. This
was determined to be due to such factors as affluence, relative
age, and the absence or presence of a spouse. Citicorp Banks on
Exploratory, Descriptive,and Causal Research
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3) The next stage of research was brainstorming. This involved
the formation of many different financial packages aimed at the
target market. In this case, a total of 10 ideas were
generated.Citicorp Banks on Exploratory, Descriptive,and Causal
Research
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4) The feasibility of the 10 ideas generated in step 3 was then
tested. The ideas were tested on the basis of whether they were
possible in relation to the business. The following list of
questions was used as a series of hurdles that the ideas had to
pass to continue on to the next step.
Can the idea be explained in a manner that the target market
will easily understand? Does the idea fit into the overall strategy
of Citicorp?Citicorp Banks on Exploratory, Descriptive,and Causal
Research
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Is there an available description of a specific target market
for the proposed product? Does the research conducted so far
indicate a potential match for target market needs, and is the idea
perceived to have appeal to this market? Is there a feasible
outline of the tactics and strategies for implementing the program?
Have the financial impact and cost of the program been thoroughly
evaluated and determined to be in line with company practices?In
this study, only one idea generated from the brainstorming session
made it past all the listed hurdles and on to step 5.Citicorp Banks
on Exploratory, Descriptive,and Causal Research
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5) A creative work-plan was then generated. This plan was to
emphasize the competitive advantage of the proposed product as well
as better delineate the specific features of the product.
6) The previous exploratory research was now followed up with
descriptive research in the form of mall intercept surveys of
people in the target market range. The survey showed that the list
of special features was too long and it was decided to drop the
features more commonly offered by competitors.Citicorp Banks on
Exploratory, Descriptive,and Causal Research
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7) Finally, the product was test marketed in six of the Citicorp
branches within the target market. Test marketing is a form of
causal research. Given successful test marketing results, the
product is introduced nationally.Citicorp Banks on Exploratory,
Descriptive,and Causal Research
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Marketing Research ProposalExecutive SummaryBackgroundProblem
Definition/Objectives of the ResearchApproach to the
ProblemResearch DesignFieldwork/Data CollectionData
AnalysisReportingCost and TimeAppendices
