Research Design Types for Market Research

© Juta and Company Ltd, 2016 Market Research 3e 1
Business
Chapter 5
Research Design and Proposal

Learning Outcomes
After studying this chapter you should be able to:
• discuss quantitative and qualitative research approaches;
• discuss research designs;
• distinguish between research approach, research design and
research method;
• discuss and draft a research plan;
• draft a research proposal; and
• decide whether or not a research project should be
implemented.

Introduction
• After formulating the research problem, question and
objectives, the research structure or design needs to be
determined.
• The research design is a plan indicating the required data, the
sampling plan and the methods of data collection and
analysis.
• Research design can help eliminate mistakes and inaccuracies.
• The purpose of a research design is to plan and structure the
particular research project in a way that will increase the
ultimate validity of the research findings.

Research Design
• A research design is simply the outline, framework or plan for the research
project.
• It is a statement of only the essential elements of a study, those that
provide the basic guidelines for the details of the project.
• What is contained in a design may vary depending on the preference of
the person responsible, but it should include at least the following:
– Information on the researcher, research team and their skills;
– the nature of the problem and the study’s objectives;
– statement of the data inputs, or causal data, on the basis of which the solution is to be
reached;
– the analytical method with which the inputs will be treated or calculated; and
– resources, time and money available for the research project.
• The research design is determined by the approach to the research,
which is either qualitative, quantitative or multi (mixed) method.

Steps in the preparation of a research design:
Prepare the research proposal
Specify the time and financial cost
Evaluate the ethics of the research
Select the analytical approach
Select the sample
Select the measurement techniques (survey, observation, focus groups etc.)
Select the data collection method (secondary vs primary data collection)
Estimate the value of the information to be provided by the researcher
Define the research problem

Qualitative research:
• About exploring issues, understanding underlying reasons and motivations.
• The aim is to explain a current situation, and describe the situation for a particular
group so the findings can be generalised only for the small group, not for the
entire population.
• The quality of qualitative research lies in its trustworthiness, which are:
– Credibility: confidence that the results are believable.
– Transferability: the degree in which the research/results can be transferred to other
contexts.
– Dependability: ensures that the research findings are consistent and could be repeated.
– Confirmability: degrees of neutrality, the findings are supported by the data.

Quantitative research:
• Aims to establish relationships between variables in the population (universe) or a
representative sample of the population by means of statistical, mathematical or
computational techniques.
• There are two types of variables:
– Independent variables stand alone and cannot be changed by other variables that you
are trying to measure, for example age or sex.
– Dependent variables are affected by other factors (independent variable). For example,
test results (dependent variable) are affected by study time (independent variable)
• The quality of quantitative research is determined by its reliability and validity:
– Reliability deals with consistency of the measure. A study is considered reliable if the
same results can repeatedly be reproduced with a similar methodology or using the
same instrument of measurement (questionnaire).
– Validity determines whether the research measures what it is required to measure, and
performs as it is designed to perform.

Mixed method research:
• Mixed method includes the use of more than one method of collection,
analysis, interpretation and reporting of data.
• It is a mix between the qualitative and quantitative approaches.
QUALITATIVE RESEARCH + QUANTITATIVE RESEARCH = MIXED METHODS

Qualitative research Quantitative
Purpose To understand and interpret To test hypotheses, look for cause and
effect and make predictions
Most common
research
objectives
Explore, discover, & construct. Describe, explain, & predict
Sample Smaller, not randomly selected and non
representative
Larger, randomly selected and
representative
Variables Study of the whole, not variables. Study specific variables
Data collection Unstructured (words, images or objects)
focus groups, in-depth interviews,
projective techniques
Structured (numbers and statistics)
Form of data
collected
Qualitative data such as open- ended
responses, interviews, participant
observations, field notes, & reflections
Quantitative data based on precise
measurements using structured &
validated data-collection instruments
Data analysis Non-statistical (Identify patterns, features,
themes)
Statistical (Identify statistical relationships)
Outcome Develop an understanding
(less generalisable findings)
Recommend a final course of action
(generalisable findings that can be applied
to other populations)
Final Report Narrative report with contextual
description & direct quotations from
research participants
Statistical report with correlations,
comparisons of means, & statistical
significance of findings

Research objective classification
• The numerous specific designs may be classified
according to the fundamental objective of the
research into conclusive and exploratory research
designs.
Research Design
Exploratory
Research Design
Conclusive
Research Design
Descriptive Causal

Exploratory studies:
• Intended to explore a relatively unknown area.
• Is necessary when more information and insight is required about a problem, opportunity or
phenomenon, and especially to collect data that can contribute to more meaningful research
questions.
• The objectives of an exploratory study are:
– To acquire new insight into the phenomenon
– To be a preliminary survey before a more structured study.
– To explain central concepts and constructs
– To determine priorities for further research.
– To develop new hypotheses about an existing phenomenon.
• Because the objective of an exploratory study is to acquire insight and develop
understanding, rather than to collect accurate replicable data, it usually involves conducting
in-depth interviews, case analyses, focus groups and literature searches.
• Methods for conducting exploratory research are:
– Literature surveys: a survey of existing relevant literature.
– Case studies: an analysis of examples or cases of the phenomenon that stimulates insight.
– Pilot studies: information collected from the actual subjects of the research project.

Descriptive studies:
• Statistical method used to identify patterns or trends in a situation, but not causal links among
its different elements.
• Is necessary when the knowledge of a particular market or marketing aspect is vague, or where
the nature of the competition in a particular industry is unclear.
• Descriptive research can describe opportunities or threats, and answer the questions: who,
what, when, where and why.
• Based on some previous understanding of the nature of the research problem, but the
conclusive evidence necessary to answer questions and determine a course of action has not
been collected.
• Objective of descriptive research is to describe the research domain accurately and thoroughly.
• Methods used for descriptive research include:
– Longitudinal studies: Also known as time-series studies and involve a repetitive measurement of the
same sample elements over time.
There are two types of longitudinal studies: Continuous or true panels and discontinuous or omnibus
panels.
– Cross-sectional studies: A type of research design that involves collecting information from any given
sample of population just once.

Causal studies:
• Descriptive research reveals possible links between particular variables, while
causal research either confirms and describes the relationship, or shows it to be
false.
• Researchers is not content merely to show that there is a link between variables
but also wishes to show the direction of the link.
• Purpose is to show causality between variables or occurrences.
• Research is conducted to reveal cause and effect between the dependent and
independent variables.
• Causal research can be conducted by means of laboratory or field experiments:
– Laboratory experiments: Researchers create the exact conditions of the situation in an
artificial environment in order to control and manipulate variables and investigate the
result.
– Field experiments: Experiments are conducted in a natural setting, real market
conditions, where complete control of extraneous variables is not possible.

• The basic designs (exploratory, descriptive and causal) can be in nature
quantitative or qualitative.
• Qualitative research is all about exploring issues, understanding
underlying reasons and motivations.
• Qualitative research aims to determine the relationship between one
thing (an independent variable) and another (a dependent or outcome
variable) in a population by means of statistical, mathematical or
computational techniques.
• A brief overview of qualitative and quantitative research is displayed in
the next slide.

Choosing a research design
• The choice of research design is influenced by several factors:
– time and money available;
– the research problem and aim of the researcher;
– the availability of scientific information;
– what is known about the area under study;
– the availability of sufficient data;
– proper exposure to data sources;
– available capacity;
– degree of managerial support;
– ability, knowledge, skill, technical understanding and background of the
– researcher; and
– other controllable, un-controllable, internal and external variables.
Do not get confused:
• Research Designs/Types of Research: Exploratory, Descriptive & Casual
• Primary Research Method/Approach to Research: Qualitative-, Quantitative- & Mixed –
Method
• Research Method/Techniques/Data Collection Method/Instrument: Surveys, observations
panels, focus groups, etc.

Planning the Research Project
• There are alternatives to choose from when planning a research project.
• For example, sampling methods can be divided into probability and non-
probability samples, and data-collection methods can be divided into mail
surveys or personal surveys.
• The researcher indicates precisely in the research plan which alternative is
appropriate for every step in order to achieve the research objective.
• The research plan specifies the required data and the general outline of
the procedures for collecting, processing and analysing the data.
• This is an important step in the marketing research process because it is
essential for estimating the cost of the investigation.

How to draft a research plan:
• When drafting a research plan the researcher must decide on the type of
data to be collected, the method of data collection, the sample size, the
sampling method and the data processing and data analysis methods.
• The outline for drafting a research plan:
1. Identify the data requirements and determine the sources.
2. Identify the data sources
3. Determine the method of data collection.
4. Identify the research measurement instruments.
5. Design the sample plan
6. Identify the methods of data analysis
7. Schedule the research project
8. Budget for the research project

1. Identify the data requirements and determine the sources
• There are two broad groups of data requirements:
– Secondary data is historical data that has already been collected, either by the
enterprise itself or by outsiders.
– Primary data is data that has not been collected previously and which must be collected
by a formal marketing investigation.
• When determining the type of data needed, the researcher must take into account
the problem, hypotheses and research objectives.
• The required information can be categorised as follow:
– Facts are quantitative or descriptive information that exists currently, or existed in the past.
– Opinions are ideas about a problem or opportunity that are expressed by consumers or enterprises.
– Motivations are basic reasons, conscious or unconscious, that explain consumer behaviour or
enterprise actions.
– Levels of awareness refer to what respondents know or do not know about an object or
phenomenon.
– Preference refers to the ordering of brands or stimuli according to the respondents’ preference for
some property.
– Behaviour is the manner in which people act in the marketplace.

2. Identify the data sources:
• The data sources are where the researcher can obtain the data.
• Primary and secondary data can be obtained from both internal and
external sources.
– Internal sources for secondary data are, for example, the marketing
information system of the enterprise, particularly the formal record system
and marketing intelligence system.
– External sources for secondary data are, for example, libraries, industrial
associations, chambers of commerce and industry, government bodies,
marketing research enterprises and computer data banks.
– Internal sources for primary data are, for example, the staff of the enterprise.
– External sources for primary data are, for example, the consumers,
customers, retailers, wholesalers and competitors of the enterprise.

3. Determine the method of data collection:
• The researcher must determine what method to use for collecting the
primary data.
– Observation takes place when people and situations are watched. Human
observation and artificial observation can be used.
– Experimentation is similar to testing. It is done in a controlled environment
and conclusions are then generalised to apply to the wider context.
– A survey entails collecting data about selected individuals by using direct or
indirect questioning, for example, a mail questionnaire. The type of data
collected can be facts, opinions or motives.
• Also include focus groups, in-depth interviews and projective techniques.

4. Identify the research measurement instruments:
• In this step the researcher must specify which instrument to use for collecting primary data.
• There are two principal research instruments:
– The questionnaire is the most common instrument for collecting primary data. When
designing a questionnaire, the type of questions, their form, wording and sequence must
be considered carefully.
– Mechanical or electronic equipment, which includes instruments such as galvanometers,
tachistoscopes, cameras, electronic meters and mechanical meters.
5. Design the sample plan:
• Researcher must identify individuals/respondents who will be involved in the research project.
• If the population is too large, a representative sample must be selected from the population.
• Three basic aspects must be considered:
– the definition of the population.
– the sample selection method or strategy.
– the sample size.

6. Identify the methods of data analysis:
• The researcher must determine how the collected data will be processed and
prepared for analysis; in other words, how editing, coding and tabulating will be
done.
• After the data has been processed and prepared, the researcher must identify the
analysis technique that will be used to convert it into relevant information for
decision making.
7. Schedule the research project:
• After determining the research plan’s activities, the researcher must decide how
long the particular research project will take to complete.
• For this purpose a timetable must be drawn up to calculate the shortest possible
time.
• The researcher must always strive to complete the project as quickly as possible.
• See example on next slide.

8. Budget for the research project:
• Cost influences the marketing manager’s decision to implement the
research project or not.
• Cost estimates must be as accurate as possible and use the time schedule
as a basis when preparing a budget.
• The researcher does a cost/benefit analysis to determine whether the
project is viable and will benefit the organisation.
• Two critical questions can be asked to determine the value of the research
project:
– What is the probable cost of the project?
– Will the benefit or profit of the project be greater than the cost?
• A formal marketing research project should only be undertaken if such an
investigation is economically justified.

Research Proposal
• The research proposal is a planning and information document that the
researcher gives to the marketing manager or decision maker.
• It is basically a written summary of the proposed steps in the research
design.
• It is a natural outcome of the research planning process and is therefore
not particularly difficult to set down in writing.
• Apart from being a planning document that states what and how the
research will be done, the research proposal is also a sales document.
• It is an information document on which the decision maker bases his or
her decision to approve or reject the implementation of the proposed
research project.
• In the proposal the researcher must convince the decision maker that the
proposed project is a unique undertaking that has definite advantages for
the enterprise.

How to draft a research proposal:
• The research plan, the time schedule and the cost budget are consulted
when drafting the research proposal.
• The proposal contains all the details (such as the sample plan, collection
methods, analysis methods, estimated costs and time schedule) that the
marketing management requires to decide whether or not to implement
the research project.
• As the research proposal has to be in writing, the researcher is forced to
take all aspects of the research project into account.
• The content and the way in which relevant information is presented
depends on the type of project and the attitude of the decision maker.

• When drafting a research proposal, the researcher must take
the following questions into account:
– What do you want to achieve?
– Why do you want to achieve this?
– How are you going to go about it?
– Who will you use to carry out the project?
– Where will you carry out the project?
– How does your time plan look?
– How much will the project cost and how will you spend the money?
– What real contribution will the project make?
See page 76 & 77 in the textbook for a general outline of a research proposal

• Most research proposals contain similar information, regardless of
length or lack of a standard format.
• The proposal normally covers the following topics:
– Tentative project title
– Purpose of the proposed research project (problem statement)
– Type of study (research design category)
– Sample design
– Data collection method
– Personnel requirements
– Cost estimate and time schedule
– Analysis plan
– In general style of the proposal must be business like

Decision on the project:
• The final step in research planning is to decide whether or not to
implement the research project.
• After receiving the proposal the decision maker should decide if the
project is economically justified and worth implementing.
• The estimated cost of the project is compared to the marketing research
budget.
• Only if the benefits or profit to the organisation exceeds the cost will the
project be deemed viable.

Summary
• The research plan is drafted to indicate what type of
information is required to realise the research objectives and
what data collection and data analysis methods will be used.
• The research plan, schedule and cost budget are summarised
in the research proposal, which is a concise information and
planning document.
• The research proposal is submitted to the decision maker who
must decide whether or not it will have any benefit for the
enterprise, and thus whether it would be worthwhile to
implement the planned research project.

Research Design Types for Market Research

Recommended

Recommended

More Related Content

Similar to Research Design Types for Market Research

Similar to Research Design Types for Market Research (20)

Recently uploaded

Recently uploaded (20)

Research Design Types for Market Research