design and examples.ppt


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design and examples.ppt

  1. 1. <ul><ul><li>Research Design </li></ul></ul>
  2. 2. Exploratory and Conclusive Research <ul><li>Research Purpose </li></ul><ul><ul><li>Exploratory Research </li></ul></ul><ul><ul><ul><li>General: To generate insights about a situation </li></ul></ul></ul><ul><ul><li>Conclusive Research </li></ul></ul><ul><ul><ul><li>Specific: To verify insights and aid in selecting a course of action </li></ul></ul></ul>
  3. 3. Exploratory Research <ul><li>Develop initial hunches or insights </li></ul><ul><li>Provide direction for any further research needed </li></ul><ul><li>Purpose: </li></ul><ul><ul><li>To shed light on the nature of the situation and to identify any specific objectives or data needs </li></ul></ul>
  4. 4. Conclusive or Confirmatory Research <ul><li>To verify insights and to aid decision-makers in selecting a specific course of action </li></ul>More Formal More Rigorous
  5. 5. Relationship among Research Designs Descriptive Research Exploratory Research Causal Research
  6. 6. Selecting the Appropriate Research Type Is the research purpose specific and are data requirements clear? Analyze data/interpret findings Is there a need for further research Analyze data/interpret findings Make recommendations Conduct a suitable descriptive-research study Conduct exploratory research with these procedures: -Key informant technique -Focus group interviews -Secondary-data analysis -Case study method Design conclusive research Does the research purpose call for testing cause-and-effect relationships between variables? Conduct an appropriate experimental-research study Yes No No Yes No Yes
  7. 7. Types of Research Designs Exploratory Research Causal Research Descriptive Research <ul><li>Formulate problems more precisely </li></ul><ul><li>Develop Hypotheses </li></ul><ul><li>Establish priorities for research </li></ul><ul><li>Eliminate impractical ideas </li></ul><ul><li>Clarify concepts </li></ul><ul><li>Literature search </li></ul><ul><li>Experience survey </li></ul><ul><li>Analysis of select cases </li></ul><ul><li>Focus groups </li></ul><ul><li>Interviews </li></ul><ul><li>Projective tests </li></ul><ul><li>Ethnographies </li></ul><ul><li>Describe segment characteristics </li></ul><ul><li>Estimate proportion of people who behave in a certain way </li></ul><ul><li>Make specific predictions </li></ul><ul><li>Longitudinal study </li></ul><ul><li>True panel </li></ul><ul><li>Omnibus panel </li></ul><ul><li>Sample Survey </li></ul><ul><li>Provide evidence regarding causal relationships by means of: </li></ul><ul><li>Concomitant variation </li></ul><ul><li>Time order in which variables occur </li></ul><ul><li>Elimination other explanations </li></ul><ul><li>Laboratory experiment </li></ul><ul><li>Field experiment </li></ul>Uses Types
  8. 8. Types of Data for Exploratory Research <ul><li>Key informant </li></ul><ul><li>Focus groups </li></ul><ul><li>Secondary data </li></ul><ul><li>Observation studies </li></ul><ul><li>Case studies </li></ul>
  9. 9. Secondary and Primary Data <ul><li>Data collected for a purpose other than the research situation at hand </li></ul><ul><li>Data collected specifically for purpose at hand </li></ul>
  10. 10. Secondary Primary <ul><li>Exs: census, government, corporate library, scanner data </li></ul><ul><li>+’s: quick, cheap, easy, focuses research, benchmark </li></ul><ul><li>-’s: doesn’t fit problem, outdated </li></ul><ul><li>Exs: focus group, survey, interviews, telemarketing </li></ul><ul><li>+’s: tailored to needs, current </li></ul><ul><li>-’s: takes time to collect, expensive </li></ul>***Their strengths and weaknesses are complementary! So...any good research project should have both! Strength and Weaknesses for the two different types of Data
  11. 11. Secondary Data: Small Business Application <ul><li>Market Research for a small business: You want to start a pool and spa cleaning and repair service </li></ul><ul><li>How do you find out about market size and competition? </li></ul>
  12. 12. HOW TO GET STARTED WHEN SEARCHING PUBLISHED SOURCES OF SECONDARY DATA 7. Identify authorities in the area and consult them. 6. Consult the various directory guides. <ul><li>Identify what you wish to know and what you already </li></ul><ul><li>know about your topic. </li></ul>2. Develop a list of key terms and names. <ul><li>Search several of the general guides, directories, and websites </li></ul><ul><li>for papers and/or reports. </li></ul>4. Compile the literature you have found. Rework your list of key words and authors if necessary. 5. Consult the reference librarian.
  13. 13. Secondary Data Relevance: Measurement Units <ul><li>Sentinel Corporation produces a line of smoke detectors </li></ul><ul><li>U.S. Census of Population and Housing Data can be used to estimate the total residential market potential for their products in different sections of the country </li></ul>
  14. 14. Secondary Data Relevance: Measurement Units (Cont’d) <ul><li>Sentinel Corporation requires size data expressed in number of rooms per household </li></ul><ul><li>U.S. Census of Population and Housing data </li></ul><ul><ul><li>Useful to Sentinel Corporation </li></ul></ul>
  15. 15. Digital BabySitter Digital website Parents
  16. 16. Digital BabySitter (Cont’d) <ul><li>Specializes in making digital baby monitor devices </li></ul><ul><li>Wants to expand beyond the United States </li></ul><ul><ul><li>Based on birthrates provided by the United Nations ( ), the company decided to target China and India </li></ul></ul><ul><ul><li>Obtained information on computer penetration in urban areas and chose urban populations as its target market </li></ul></ul>
  17. 17. Digital BabySitter (Cont’d) <ul><li>Secondary Data Analysis is not meaningful in China and India because children are either with their extended families or at school </li></ul><ul><li>Children are almost never alone </li></ul><ul><li>Secondary data is not always relevant!!! </li></ul>
  18. 18. Most important lesson about Secondary data… <ul><li>THE SHOCKING TRUTH IS THAT STATISTICS ARE ONLY AS CREDIBLE AS THE SOURCES THAT PRODUCE THEM ! </li></ul>
  19. 19. Secondary Data Limitations <ul><li>Accuracy </li></ul><ul><ul><li>Who collected the data? </li></ul></ul><ul><ul><li>Why was the data collected? </li></ul></ul><ul><ul><li>How was the data collected? </li></ul></ul>
  20. 20. Flow Diagram for Conducting a Data Search Analyze the primary and/or secondary data Will they be adequate for the data needs? Are the data sufficiently accurate? Are the data relevant? Yes No No No Yes Yes Yes Identify data needs Are internal secondary data available? Are external secondary data available? No Analyze the primary and/or secondary data Are the data sufficiently accurate? Are the data relevant? Will they (along with any suitable internal data) be adequate? No No No Yes Yes Yes Yes Collect the necessary primary data No Analyze the primary and/or secondary data
  21. 21. Internal Data <ul><li>Can often be obtained with less time, effort, and expense than external secondary data </li></ul><ul><li>May have relevance to the research being conducted </li></ul><ul><li>Examples include: </li></ul><ul><ul><li>A firm’s historical record of sales </li></ul></ul><ul><ul><li>A public service association’s list of donors </li></ul></ul><ul><ul><li>Public opinion polls conducted in the past by a political candidate’s campaign office </li></ul></ul>
  22. 22. External Data: Government Sources <ul><li>Collects extensive data about people, firms, markets, and foreign countries; more than any other secondary data source </li></ul><ul><li>Data collected is readily available on Internet sites </li></ul><ul><li>Documents published are in the form of summary reports based on the raw data collected </li></ul><ul><li>The raw data is often available for a fee </li></ul><ul><ul><li>Public-Use Microdata files </li></ul></ul>
  23. 23. Syndicated Sources <ul><li>Syndicated services offered by marketing research firms </li></ul><ul><ul><li>Nielsen Retail Index </li></ul></ul><ul><li>Fees are required but they are more cost effective than collecting primary data </li></ul><ul><li>Focus directly on the needs of decision makers </li></ul><ul><li>Updated more frequently than government data </li></ul><ul><li>Often allows for customization </li></ul>
  24. 24. Trade Associations <ul><li>Very numerous and diverse </li></ul><ul><li>Many collect data relevant to and about their members </li></ul><ul><li>Also collect competitively sensitive data about members that may not be available to industry outsiders </li></ul>
  25. 25. Competitive Intelligence: Burger King Corp. <ul><li>Burger King: </li></ul><ul><ul><li>Maintains a brand research library and subscribes to analyst reports that provide a detailed view of competitors' financial and long-term plans </li></ul></ul><ul><ul><li>Gathers syndicated reports that provide sales and cost data and describe the competition's growth plans </li></ul></ul><ul><ul><li>Insights about the restaurant business can be flushed out from interviews with restaurant business leaders, published routinely in these trade journals </li></ul></ul>
  26. 26. Managing Secondary Data <ul><li>Merely keeping abreast of all the available data without being overwhelmed is a challenge </li></ul><ul><li>Effective secondary-data management is necessary in this &quot;information explosion&quot; age </li></ul>
  27. 27. Qualitative Research <ul><li>Qualitative research involves collecting, analyzing, and interpreting data that cannot be meaningfully quantified, that is, summarized in the form of numbers </li></ul>
  28. 28. Qualitative Research (Cont’d) <ul><li>Qualitative Research </li></ul><ul><ul><li>Typically involves relatively few respondents or units </li></ul></ul><ul><ul><li>Uses non-structured questioning or observation techniques </li></ul></ul><ul><ul><li>Techniques are most appropriate in situations calling for exploratory research </li></ul></ul>
  29. 29. On the contrary… <ul><li>Quantitative Research </li></ul><ul><ul><li>More structure and use larger, more representative respondent samples. </li></ul></ul><ul><ul><li>Logical place is in conclusive research projects </li></ul></ul><ul><ul><li>Calls for very specific data, capable of suggesting a final course of action </li></ul></ul><ul><ul><li>Primary role is to test hunches or hypotheses </li></ul></ul>
  30. 30. Importance of Qualitative Research <ul><li>Works better if the purpose of the research is to understand a problem or to develop “new product concepts” </li></ul><ul><li>Can be viewed as generating just the right type of raw material needed to produce a finished product in the form of a relevant quantitative research project </li></ul>
  31. 31. Importance of Qualitative Research <ul><li>More flexible than other types of research </li></ul><ul><li>More easily capture information crucial to forming effective strategies </li></ul><ul><li>Aids in analyzing open-ended questions </li></ul><ul><li>Rarely but sometimes needed to verify the accuracy of quantitative research results </li></ul>
  32. 32. Muscular Dystrophy Family Foundation® <ul><li>MDFF wants to start a new program to aid people with serious physical handicaps </li></ul><ul><li>They are wondering about what kinds of charitable programs to begin and about what strategies to develop in order to seek </li></ul><ul><li>donations from the public </li></ul><ul><ul><li>Who should the MDFF talk to? </li></ul></ul><ul><ul><ul><li>Officers in well-established public service organizations, such as the United Way, the American Red Cross, and the American Cancer Society. </li></ul></ul></ul>
  33. 33. Focus Group Interviews <ul><li>8 to 12 individuals </li></ul><ul><li>Moderator (a well-trained researcher) </li></ul><ul><li>Informal discussion about research topic </li></ul>individuals moderator discussion
  34. 34. Group Composition <ul><li>Generally, focus groups conducted by marketing research practitioners involve between 6 and 12 participants </li></ul><ul><li>To be effective, a focus group must be as homogeneous as possible with respect to demographic and socioeconomic characteristics </li></ul>
  35. 35. Moderator Tasks <ul><li>Guide discussion </li></ul><ul><li>Ensure key aspects of the topic that are discusses </li></ul><ul><li>Observe interactions </li></ul><ul><li>Record dialogue and reactions </li></ul>
  36. 36. Desirable Focus Group Moderator Skills <ul><li>Kind but firm </li></ul><ul><li>Permissive </li></ul><ul><li>Involved </li></ul><ul><li>Incomplete understanding </li></ul><ul><li>Encouragement </li></ul><ul><li>Flexibility </li></ul><ul><li>Sensitivity </li></ul>
  37. 37. Conducting Focus Groups <ul><li>Focus group sessions typically last 1 1/2 to 2 hours </li></ul><ul><li>Focus group interviews are often recorded: audio tapes or videotapes </li></ul>
  38. 38. Advantages of Focus Groups <ul><li>Richness of Data </li></ul><ul><li>Versatility </li></ul><ul><li>Ability to Study Special Respondents </li></ul>
  39. 39. Disadvantages of Focus Groups <ul><li>Lack of Generalizability </li></ul><ul><ul><li>Results cannot be viewed as conclusive </li></ul></ul><ul><li>Opportunity for Misuse </li></ul><ul><ul><li>Occurs when managers yield to a temptation to generalize a few key remarks made by participants </li></ul></ul><ul><li>Cost </li></ul><ul><ul><li>On a cost-per-respondent basis, focus groups are extremely expensive </li></ul></ul>
  40. 40. Focus Group Applications <ul><li>Understanding Consumers </li></ul><ul><li>Product Planning </li></ul><ul><li>Advertising </li></ul>
  41. 41. Revlon Consumer Products Corporation <ul><li>Revlon conducts focus group interviews of working women between ages 20 and 30 to get them to talk freely about their makeup needs: </li></ul><ul><ul><li>Types of cosmetics used </li></ul></ul><ul><ul><li>Satisfaction and dissatisfaction with existing products </li></ul></ul><ul><ul><li>Suggestions for improvements </li></ul></ul>
  42. 42. Revlon Consumer Products Corporation (Cont’d) <ul><li>Focus group interviews likely to generate a range of new‑product ideas appealing to a wide cross-section of working women </li></ul><ul><li>No guarantee that ideas for new cosmetic products gathered from specific focus groups (working women 20-30) will appeal to other demographic women groups </li></ul>
  43. 43. Rensselaer Polytechnic Institute (RPI) in Troy, New York <ul><li>RPI conducted a focus groups to better understand school’s reputation and profile among influential business leaders </li></ul><ul><li>Focus Groups participants commented on </li></ul><ul><ul><li>Inconsistent image of the school </li></ul></ul><ul><ul><li>Perception of RPI as “that school in Troy!” </li></ul></ul><ul><li>&quot;Colorful&quot; and natural customer statements capable of having a significant impact on decision makers can only emerge from a focus group setting </li></ul>
  44. 44. Understanding Consumers <ul><li>Pillsbury, a manufacturer of cake mixes, is always interested in questions such as: </li></ul><ul><ul><li>What do consumers like about baking? </li></ul></ul><ul><ul><li>What do they dislike? </li></ul></ul><ul><ul><li>Why do they bake? </li></ul></ul><ul><ul><li>How do they bake? </li></ul></ul><ul><ul><li>What words/terms do they use in describing baking products and their use? </li></ul></ul><ul><li>Focus groups will be helpful in this situation to get a feeling for consumers' perceptions, opinions, and behavior concerning cake mixes </li></ul>
  45. 45. 3 M <ul><li>Strongly positioned in the home & leisure business-sponges, scouring pads,scrub sponges </li></ul><ul><li>Lacked a presence in Wool-Soap-Pads segment </li></ul><ul><li>Conducted focus groups with consumers around the country </li></ul><ul><li>Finding:standard steel wool pads scratched consumers’ cookware </li></ul><ul><li>Led to the idea for Scotch-Brite Never Scratch Soap Pad </li></ul>
  46. 46. Research Techniques -- Dual Moderator Group <ul><li>A focus group interview conducted by two moderators </li></ul><ul><li>Useful in focus groups involving discussion of a highly technical topic </li></ul><ul><li>Example: A group of electronic engineers discussing new concepts for computer memory chips </li></ul>
  47. 47. Other Qualitative Research Techniques <ul><li>Respondent-Moderator Groups </li></ul><ul><ul><li>The real moderator may ask selected participants to temporarily play the role of moderator to improve group dynamics and productivity </li></ul></ul><ul><li>Client-Participant Groups </li></ul><ul><ul><li>Client personnel are introduced to respondents and made part of the group </li></ul></ul>
  48. 48. Impact of Technology on Focus Groups <ul><li>Electronic Group Interviewing (EGI) </li></ul><ul><li>Videoconferencing Focus Groups </li></ul><ul><li>Online Focus Groups </li></ul>
  49. 49. Which One to Choose? – In-Depth Interview or Focus Group
  50. 50. Focus Groups and Depth Interviews <ul><li>Qualitative </li></ul><ul><li>Flexible </li></ul><ul><li>Probing </li></ul><ul><li>Richness of data </li></ul><ul><li>Gets at the “Why” of customers’ behaviors </li></ul><ul><li>Generates ideas </li></ul><ul><li>Clarifies other project results </li></ul>Focus Groups <ul><li>Group dynamics, expect more creative </li></ul><ul><li>Some probing </li></ul><ul><li>Relatively inexpensive </li></ul><ul><li>Ready industry </li></ul>Interviews <ul><li>Not influenced by others </li></ul><ul><li>Max probing, great depth </li></ul><ul><li>Expensive </li></ul><ul><li>Time consuming </li></ul><ul><li>Candid, sensitive topics </li></ul>
  51. 51. Projective Techniques – Common Features <ul><li>A fairly ambiguous stimulus is presented to respondents in reacting to or describing the stimulus, the respondents will indirectly reveal their own inner feelings </li></ul>
  52. 52. Word Association Test <ul><li>A list of words, both relevant and irrelevant, used to understand people’s feelings towards different words </li></ul><ul><ul><li>Used to examine the effectiveness of brand names, new products and services, and key advertising words </li></ul></ul>
  53. 53. Sentence Completion Test <ul><li>Respondents are asked to finish a set of incomplete sentences, often related or neutral to the topic of interest </li></ul><ul><li>To uncover feelings about “Buying American” </li></ul><ul><ul><li>American automobiles </li></ul></ul><ul><ul><li>Restrictions on imports </li></ul></ul><ul><ul><li>Every U.S. citizen </li></ul></ul><ul><ul><li>Foreign-made products </li></ul></ul><ul><ul><li>Unemployment in the U.S </li></ul></ul>
  54. 54. <ul><li>“ I think the Nike ads that say, ‘Just do it’ are...” </li></ul><ul><li>“ I think Nike...” </li></ul><ul><li>“ When I feel a real need to treat myself, I...” </li></ul><ul><li>“ If it’s lunchtime, and I have a choice between McDonald’s, Burger King, and Wendy’s, I’ll choose ____ because...” </li></ul><ul><li>“ My favorite restaurant is ____ because...” </li></ul>
  55. 55. Thematic Apperception Test <ul><li>Respondents are asked to write a story about one or a series of picture(s) they are shown for a short period of time </li></ul><ul><ul><li>Especially useful when dealing with special groups, such as children </li></ul></ul>
  56. 56. Zaltman’s Metaphor Elicitation Technique (ZMET) <ul><li>ZMET tries to bring to the surface the mental models that drive consumer thinking by analyzing metaphors that consumers might use </li></ul><ul><li>DuPont </li></ul><ul><ul><li>Lacked an accurate picture of consumer’s true feeling about pantyhose </li></ul></ul><ul><li>DuPont used the ZMET </li></ul><ul><ul><li>Zaltman asked women to assemble magazine clips-(collage building) </li></ul></ul><ul><ul><li>Magazine clips stand as metaphor for emotions about pantyhose </li></ul></ul>
  57. 57. ZMET <ul><li>Deeper probing of the emotions behind the choice of photos revealed true feelings behind the product </li></ul><ul><li>The research revealed that pantyhose made women feel sensual and attractive, a difficult thing for a woman to articulate in a focus group or in a survey </li></ul>
  58. 58. Research Realities 3: Customers Drawing Pictures for a Study Sponsored by a Large Florist Retail Chain* <ul><li>Interviewee #1: </li></ul><ul><ul><li>Woman, 30-39 years old. </li></ul></ul><ul><li>Describe yourself: </li></ul><ul><ul><li>I am a quiet person, I keep mostly to myself and keep out of trouble that way. </li></ul></ul><ul><li>When do you buy flowers?: </li></ul><ul><ul><li>I love flowers because they beautify the surroundings. They give me a special calm feeling of enjoyment. I give flowers to let someone know you are thinking about them . </li></ul></ul>Her drawing: <ul><li>Describe a dream involving flowers: </li></ul><ul><ul><li>I would send flowers to the ladies at work with a note attached and they would all start crying at one time. </li></ul></ul><ul><li>How are flowers and funerals related?: </li></ul><ul><ul><li>All the funerals I’ve been to have flowers. I guess when you die, you will be in paradise and paradise is full of flowers . </li></ul></ul>
  59. 59. <ul><li>Interviewee #2: </li></ul><ul><ul><li>Woman, 20-29 years old. </li></ul></ul><ul><li>Husband sends her flowers because: </li></ul><ul><ul><li>I am sweet. </li></ul></ul><ul><li>Three words associated to flowers?: </li></ul><ul><ul><li>I love you . </li></ul></ul><ul><li>Compared to other gifts, flowers are: </li></ul><ul><ul><li>Warmest, most romantic, highest class, sexiest, most fun. </li></ul></ul><ul><li>Flowers remind me of: </li></ul><ul><ul><li>Love! </li></ul></ul><ul><li>Describe a dream involving flowers: </li></ul><ul><ul><li>Someone gets married, they are happy and I am pleased for them and I send flowers to congratulate them. Everyone likes it and they live happily ever after . </li></ul></ul><ul><li>How are flowers and funerals related?: </li></ul><ul><ul><li>I’m opposed to the idea of flowers at funeral. Flowers at funeral are sad. The tradition of sending flowers to a funeral may have come about in order to cover the smell of the body. </li></ul></ul>Her drawing: Research Realities 3 continued
  60. 60. <ul><li>Interviewee #3: </li></ul><ul><ul><li>Man, 40-49 years old. </li></ul></ul><ul><li>Describes himself as: </li></ul><ul><ul><li>… a loving and generous man. He celebrates all occasions with lavish and often costly gifts. He is enthusiastic about giving flowers and says they make him think about happiness and warmth. </li></ul></ul><ul><li>He also says: </li></ul><ul><ul><li>The main reason to send flowers is to apologize for having a fight. They lift the spirits, women would be happy about the flowers . </li></ul></ul><ul><li>Describe a dream involving flowers: : </li></ul><ul><ul><li>I had a dream that I send some flowers and as the person bent down to smell the flowers, a thorn cut her lips. Even though she was bleeding she called to thank me for sending her the lovely roses. </li></ul></ul>His drawing: *A million Thank You’s to Sidney Levy for sharing these stories and pictures. Research Realities 3 continued
  61. 61. Case Studies <ul><li>In depth examination of a unit of interest </li></ul><ul><li>Possible units: </li></ul><ul><ul><li>Customer </li></ul></ul><ul><ul><li>Website </li></ul></ul><ul><ul><li>Store </li></ul></ul><ul><ul><li>Salesperson </li></ul></ul><ul><ul><li>Firm </li></ul></ul>
  62. 62. Allied Associates Company <ul><li>National chain of discount stores with 500 retail outlets across the country </li></ul><ul><li>Profitability during the past few years has remained above industry average </li></ul><ul><ul><li>Top management needs to identify key elements crucial to the company’s success and to capitalize on those elements </li></ul></ul><ul><ul><li>Question: Where and how should one start looking to accomplish top management’s objectives ? </li></ul></ul><ul><ul><li>CASE STUDY METHOD: Study three best performing stores and three worst performing stores in depth on numerous dimensions. </li></ul></ul>
  63. 63. Observation <ul><li>Human or mechanical observation of what subjects actually do in a particular situation </li></ul><ul><li>Record information as events occur or compile evidence of past events </li></ul><ul><li>Assesses behavior which can be translated into new products or improvements of current products </li></ul>
  64. 64. Observation (Cont’d) <ul><li>Rubbermaid routinely sends its employees to consumers’ homes to observe home-storage practices </li></ul><ul><li>Ford has been collecting observational data using video ethnography-”not so much to understand what people do, but to understand who they are and how they live </li></ul>
  65. 65. Discovering New Market Needs — 3M Shows the Way <ul><li>3M’s Medical-Surgical Market Division- to develop a breakthrough product for the surgical drapes unit </li></ul><ul><li>Sales of the product amounted to $100 million annually-but the drapes market was languishing </li></ul><ul><li>NEED: To bring in radically new products </li></ul><ul><li>3M selected developing countries, where infectious diseases are a major problem </li></ul>
  66. 66. Discovering New Market Needs – 3M Shows the Way (Cont’d) <ul><li>Observed how doctors work in the operating room in different countries </li></ul><ul><li>Observational Insight : The hospitals cannot afford surgical drapes and therefore, require a cheaper and more effective way to prevent infections from starting or spreading that does not depend on antibiotics or surgical </li></ul>
  67. 67. Types of Conclusive Research <ul><li>Descriptive </li></ul><ul><ul><li>Generates data on the composition and characteristics of a specific group such as customers, sales people, and market areas </li></ul></ul><ul><ul><li>A descriptive survey data merely suggests causation </li></ul></ul><ul><li>Experimental </li></ul><ul><ul><li>Generates data to determine causal relationships </li></ul></ul>
  68. 68. Preference to Buy: Gallup Survey of Chinese Consumers , 1997
  69. 69. Descriptive Research <ul><li>Cross-sectional Studies </li></ul><ul><ul><li>Data collected at a single period in time from a cross-sectional sample of the unit of interest that is disbanded after the data collection </li></ul></ul><ul><li>Longitudinal Studies </li></ul><ul><ul><li>Repeated measurements taken over a long period of time from a panel group or sample of the unit that is maintained for future measurements </li></ul></ul>
  70. 70. Classification of Descriptive Studies Descriptive Studies Cross- Sectional Omnibus Panel Longitudinal Sample Survey True Panel
  71. 71. Longitudinal Studies <ul><li>Repeated measurements taken over a long period of time from a panel group or sample of the unit that is maintained for future measurements </li></ul><ul><ul><li>Measurements taken during many different time periods </li></ul></ul><ul><ul><li>Measurements taken from a panel </li></ul></ul><ul><ul><li>A PANEL is a sample of units that is maintained for multiple measurements taken during multiple time periods </li></ul></ul>
  72. 72. Longitudinal Studies (Cont’d) <ul><li>Types of Panels </li></ul><ul><ul><li>OMNIBUS PANEL: different subjects are pulled from the panel for each time period </li></ul></ul><ul><ul><ul><li>Drawbacks: data is not as reliable </li></ul></ul></ul><ul><ul><li>TRUE PANEL: the same subjects are used for the panel every time data is collected </li></ul></ul><ul><ul><ul><li>Drawbacks: members sometimes evolve out of the desired study group or are induced by the study to change their practices thus tainting the data </li></ul></ul></ul>
  73. 73. Number of Families in Panel Purchasing Each Brand 1000 1000 Total 150 150 D 330 350 C 270 300 B 250 200 A During Second Time Period, t 2 During First Time Period, t 1 Brand Purchased
  74. 74. Number of Families in Panel Purchasing Each Brand in Each Period 1000 150 330 270 250 Total 150 55 0 20 75 Bought D 350 70 280 0 0 Bought C 300 25 50 225 0 Bought B 200 0 0 25 175 Bought A Total Bought D Bought C Bought B Bought A During First Time Period, t 1 During Second Time Period t 2
  75. 75. Number of Families in Panel Purchasing Each Brand in Each Period 1.000 .367 .000 .133 .500 Bought D 1.000 .200 .800 .000 .000 Bought C 1.000 .083 .167 .750 .000 Bought B 1.000 .000 .000 .125 .875 Bought A Total Bought D Bought C Bought B Bought A During First Time Period, t 1 During Second Time Period t 2
  76. 76. Cross-sectional Studies <ul><li>Data collected at a single period in time from a cross-sectional sample of the unit of interest that is disbanded after the data collection </li></ul><ul><ul><li>Conducted in a single time period </li></ul></ul><ul><ul><li>Uses a cross-sectional sample of the unit </li></ul></ul><ul><ul><li>Once the study is complete the sample is disbanded and not used again </li></ul></ul>
  77. 77. Experiment <ul><li>An experiment is a procedure in which a researcher manipulates one (or sometimes more than one) independent or cause variable and collects data on the dependent or effect variable while controlling for other variables that may influence the dependent variable </li></ul>
  78. 78. Experimental Research <ul><li>Manipulates the independent variable or variables before measuring the effect on the dependent variable </li></ul><ul><ul><li>The effect of price changes on sales volume of a particular product can be examined by actually varying the price of the product </li></ul></ul><ul><li>The very basis of experimental research lies in the manipulation of independent variables </li></ul>
  79. 79. Sales Productivity Experiment <ul><li>Will an increase in the average number of sales calls per customer from six to eight per year significantly improve sales? </li></ul><ul><li>Will decreasing the shelf space allocated to brand X detergent by 25 percent significantly lower its sales? </li></ul>
  80. 80. Example of a Marketing Research Experiment Randomly sample 100 consumers. Randomly Assign 50 see package design “A” 50 see package design “B” Count # your brand purchased in ea group
  81. 81. Conditions For Inferring Causality <ul><li>Temporal ordering of variables </li></ul><ul><ul><li>X  Y not Y  X </li></ul></ul><ul><li>Evidence of association </li></ul><ul><ul><li>X and Y are related ; presence of X  presence of Y; absence of X  absence of Y </li></ul></ul><ul><li>Control of other causal factors </li></ul><ul><li>X  Y, Z  Y </li></ul>
  82. 82. Laboratory vs. Field Experiments <ul><li>A laboratory experiment is a research study conducted in a contrived setting in which the effect of all, or nearly all, influential but irrelevant independent variables is kept to a minimum </li></ul><ul><li>A field experiment is a research study conducted in a natural setting in which the experimenter manipulates one or more independent variables under conditions controlled as carefully as the situation will permit </li></ul>
  83. 83. Internal Validity <ul><li>Internal validity is the extent to which observed results are solely due to the experimental manipulation </li></ul><ul><li>Laboratory experiments are generally high on internal validity </li></ul><ul><li>Field experiments are generally low on internal validity </li></ul>
  84. 84. External Validity <ul><li>External validity is the extent to which observed results are likely to hold beyond the experimental setting </li></ul><ul><li>Laboratory experiments are generally low on external validity </li></ul><ul><li>Field experiments are generally high on external validity </li></ul>
  85. 85. Types of Extraneous Factors That Can Contaminate Research Results <ul><li>History --Specific events external to an experiment, but occurring at the same time, which may affect the criterion or response variable </li></ul><ul><li>Maturation --Processes operating within the test units in an experiment as a function of the passage of time per se </li></ul><ul><li>Testing --Contaminating effect in an experiment due to the fact that the process of experimentation itself affected the observed response </li></ul><ul><li>Main testing effect- -the impact of a prior observation on a later observation </li></ul><ul><li>Interactive testing effect- -the condition when a prior measurement affects the test unit’s response to the experimental variable </li></ul>
  86. 86. Types of Extraneous Factors That Can Contaminate Research Results <ul><li>Instrument Variation - -Any and all changes in the measuring device used in an experiment that might account for differences in two or more measurements </li></ul><ul><li>Statistical Regression - -Tendency of extreme cases of a phenomenon to move toward a more central position during the course of an experiment </li></ul><ul><li>Selection Bias - -Contaminating influence in an experiment occurring when there is no way of certifying that groups of test units were equivalent at some prior time </li></ul><ul><li>Experimental Mortality - -Experimental condition in which test units are lost during the course of an experiment </li></ul>
  87. 87. McDonald's Tests McPizza <ul><li>McDonald's test-marketed McPizza to strengthen the after 4pm adult market </li></ul><ul><ul><li>Introduced McPizza with heavy advertising, emphasizing speedy service for pizza </li></ul></ul><ul><ul><li>McPizza received favorable nods in some test markets and had partial rollout nationally </li></ul></ul>
  88. 88. McDonald's Tests McPizza <ul><li>Pizza Hut, a leading competitor, reacted aggressively to McDonald's move by running a buy-one-get-one-free promotion wherever McPizza was introduced </li></ul><ul><li>The sales performance of McPizza did not meet management's expectations </li></ul>
  89. 89. True Experimental Designs <ul><li>The presence of one or more control groups </li></ul><ul><li>The random assignment of units to various experimental and control groups </li></ul><ul><li>Random assignment distributes the sample units chosen for a study to various groups on a strictly objective basis so that the group compositions can be equivalent before an experiment is started </li></ul>
  90. 90. Experimental (Cont’d) Multi-group Design Control Group All variables stay the same Experimental Group Change one variable Units Measure the differences.
  91. 91. Frito-Lay Experiments Show How to Make TV Ads Profitable <ul><li>Frito Lay conducted 23 split-panel experiments in BEHAVIORSCAN  markets to assess the effectiveness of TV advertising on its brands </li></ul><ul><li>Brands were classified as big (Doritos  ) and small (Rold Gold  ) </li></ul><ul><li>Household panel was split into two groups </li></ul><ul><ul><li>An experimental group: brand advertising in two formats- News, Base </li></ul></ul><ul><ul><li>A control group: Brand advertising was replaced by public service advertisements (no advertising group) </li></ul></ul>
  92. 92. Frito-Lay Experiments Show How to Make TV Ads Profitable (Cont’d) <ul><li>Random assignment of households to advertising and no-advertising conditions ensured that the effects of promotional activities would not affect the findings </li></ul><ul><li>Research showed that TV advertising positively affects sales when accompanied by changes in brand, copy, media strategy, and under low in-store merchandising conditions </li></ul>
  93. 93. One-Group, After-Only Design <ul><li>Situation A. A company introduces a new brand of margarine in four test market areas and employs a unique and revolutionary promotional campaign for it </li></ul><ul><li>The brand captures at least a 10 percent share in each market within two months after introduction </li></ul><ul><li>The company's management concludes that the revolutionary promotional campaign played a major role in the market share achieved by the brand </li></ul>
  94. 94. One-Group, After-Only Design (Cont’d) <ul><li>Situation B. The president of the United States makes a television speech soliciting public support for legislation favoring prayer in public schools </li></ul><ul><li>A telephone survey of those who viewed the presidential speech indicates that 70 percent favor such legislation </li></ul><ul><li>The president's speech is therefore considered to have had a significant impact on the U.S. public </li></ul>
  95. 95. One-Group, After-Only Design (Cont’d) <ul><li>Causal inference from a one-group, after-only design cannot be trusted entirely </li></ul>
  96. 96. Some Popular Standard Test Markets Midland TX Oklahoma City, OK Tulsa OK Wichita KS Lexington/ Fayette KY Charleston WV Bloomington IN Indianapolis IN Springfield IL Rockford IL
  97. 97. A Perspective on Various Types of Test Markets Simulated Test Market Controlled Test Market stop Standard Test Market stop stop promising promising promising not promising not promising not promising National Rollout