Chapter Outline
1) Overview
2) Research Design: Definition
3) Research Design: Classification
4) Exploratory Research
5) Descriptive Research
i.
Cross-Sectional Design
ii.Longitudinal Design
iii.
Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
6) Causal Research
Chapter Outline
8) Potential Sources of Error
i.Random Sampling Error
ii.Non-sampling Error
a.
Non-response Error
b.Response Error
9) Budgeting and Scheduling
10) Marketing Research Proposal
Chapter Outline
12) Ethics in Marketing Research
13) Internet and Computer Applications
15) Focus on Burke
14) Summary
Research Design: Definition
A
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
Components of a Research
Design
Define 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)
A Classification of Marketing Research
Designs
Single Cross-Sectional Design
Multiple Cross-Sectional Design
Fig. 3.1
Research Design
Conclusive Research Design Exploratory
Research Design
Descriptive Research
Causal Research
Cross-Sectional Design
Exploratory & Conclusive Research
Differences
Objective: 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.
Exploratory Conclusive
Objective:
Characteristics:
Methods:
A Comparison of Basic Research
Designs
Discovery of ideas and insights
Flexible, versatile
Often the front end of total
research design Expert surveys Pilot surveys Secondary data Qualitative research Describe market characteristics or functions
Marked by the prior formulation of specific hypotheses Preplanned and structured design Secondary data Surveys Panels Observation and other data Determine cause and effect relationships Manipulation of one or more independent variables
Control of other mediating
variables
Experiments
Exploratory Descriptive Causal
Uses of Exploratory Research
Formulate a problem or define a
problem more precisely
Identify alternative courses of action
Develop hypotheses
Isolate key variables and relationships
for further examination
Gain insights for developing an
approach to the problem
Methods of Exploratory Research
Survey 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
Use of Descriptive Research
To 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.
Methods of Descriptive Research
Secondary 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
Cross-sectional Designs
Involve 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
Consumption of Various Soft Drinks
by Various Age Cohorts
8-19
20-29
30-39
40-49
50+
Age
1950
1960
1969
1979
52.9
45.2
33.9
23.2
18.1
62.6
60.7
46.6
40.8
28.8
C1
73.2
76.0
67.7
58.6
50.0
C2
81.0
75.8
71.4
67.8
51.9
C3
C8
C7
C6
C5
C4
C1: cohort born prior to 1900
C2: cohort born 1901-10
C3: cohort born 1911-20
C4: cohort born 1921-30
C5: cohort born 1931-40
C6: cohort born 1940-49
C7: cohort born 1950-59
C8: cohort born 1960-69
Table 3.3
Longitudinal Designs
A fixed sample (or samples) of
population elements is measured
repeatedly on the same variables
A longitudinal design differs from a
cross-sectional design in that the
Relative Advantages and Disadvantages
of
Longitudinal and Cross-Sectional Designs
Evaluatio
n Criteria
Cross-Sectional
Design
Longitudinal
Design
Detecting Change
Large amount of data
collection
Accuracy
Representative Sampling
Response bias
-+
+
+
+
+
-Note: A “+” indicates a relative advantage over the
other design, whereas a “-” indicates a relative
disadvantage.
Cross-Sectional Data May Not Show
Change
Brand Purchased
Time Period
Period 1
Period 2
Survey
Survey
Brand A
200
200
Brand B
300
300
Brand C
500 500
Total
1000
1000
Longitudinal Data May Show
Substantial Change
Brand
Purchased
in Period
1
Brand Purchased in Period 2
Brand A
Brand B
Brand C
Total
Uses of Casual Research
To understand which variables are
the cause (independent variables)
and which variables are the effect
(dependent variables) of a
phenomenon
To determine the nature of the
relationship between the causal
variables and the effect to be
predicted
Potential Sources of Error in
Research Designs
Surrogate Information Error Measurement Error
Population Definition Error Sampling Frame Error
Data Analysis Error
Errors in Marketing Research
The 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
Errors in Marketing Research
Non-response error
arises when some of the
respondents included in the sample do not
respond.
Response error
arises when respondents
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,
Citicorp Banks on Exploratory,
Descriptive,
and Causal Research
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,
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,
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,
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,
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,
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,
Marketing Research Proposal
Executive Summary
Background
Problem Definition/Objectives of the
Research
Approach to the Problem
Research Design
Fieldwork/Data Collection
Data Analysis
Reporting
Cost and Time
The Greenfield of Online Research
Internet users wishing to take part in surveys and other projects begin by registering online at the company’s Web site. The registration consists of a “sign-up survey” that asks for e-mail address, type of computer used, personal interests and information about the respondent’s household. Once an Internet user is registered, Greenfield Online matches the user with research studies that are well-suited to his or her interests.
Incentives to take part in focus groups or special surveys are offered by the companies whose products or services are being researched. This incentive is cash or valuable prizes. Incentives are also offered to Internet users to encourage them to register with Greenfield’s Internet panel. New registrants automatically qualify for prizes that are awarded in monthly drawings.
