Citicorp uses exploratory, descriptive, and causal research extensively to understand customers and design new products. When developing a financial package for senior citizens, Citicorp conducted exploratory focus groups and secondary data analysis. Descriptive surveys tested a list of potential features. A successful test marketing involved causal research. This 7-step process involving different research designs helped ensure the package met seniors' needs.

1. Research Design

2. 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
marketing research problems.

3. A Classification of Research
Designs
Single Cross-
Sectional Design
Multiple Cross-
Sectional Design
Research Design
Conclusive
Research
Design
Exploratory
Research
Design
Descriptive
Research
Causal
Research
Cross-Sectional
Design
Longitudinal
Design

4. 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

5. A Comparison of Basic
Research Designs
Objective:
Characteristics:
Methods:
Discovery of ideas
and insights
Flexible, versatile
Often the front end
of total research
design
Expert surveys
Secondary data:
qualitative analysis
Qualitative research
Describe market
characteristics or
functions
Marked by the prior
formulation of specific
hypotheses
Preplanned and
structured design
Secondary data:
quantitative analysis
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

6. 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
• Establish priorities for further research

7. Methods of Exploratory
Research
• Survey of experts
• Pilot surveys
• Secondary data analyzed in a qualitative
way
• Qualitative research

8. 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.
• To make specific predictions.

9. Methods of Descriptive Research
• Secondary data analyzed in a quantitative as
opposed to a qualitative manner
• Surveys
• Panels
• Observational and other data

10. 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.

11. Consumption of Various Soft Drinks
by Various Age Cohorts
8-19
20-29
30-39
40-49
50+
Age 1960 1969 19791950
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
Percentage consuming on a typical day

12. 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 sample or samples remain the same
over time

13. Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Evaluation
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.

14. 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

15. Longitudinal Data May
Show
Substantial Change
Brand
Purchased
in Period 1
Brand Purchased in Period 2
Brand A Brand B Brand C Total
Brand A
Brand B
Brand C
Total
100
25
75
200
50
100
150
300
50
175
275
500
200
300
500
1000

16. 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
• METHOD: Experiments

17. Potential Sources of Error in
Research Designs
Surrogate Information Error
Measurement Error
Population Definition Error
Sampling Frame Error
Data Analysis Error
Respondent Selection Error
Questioning Error( not using
apt words)
Recording Error
Cheating Error (fabricating
answers)
Inability Error
Unwillingness Error
Total Error
Non-sampling
Error
Random
Sampling Error
Non-response
Error
Response
Error
Interviewer
Error
Respondent
Error
Researcher
Error

18. Errors in 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 non-response errors and
response errors.

19. 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 give
inaccurate answers or their answers are
misrecorded or misanalyzed.

20. 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

21. Citicorp Banks on Exploratory, Descriptive, and
Causal Research- 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.

22. 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

23. 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.

24. 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?

25.  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.

26. 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 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.

27. 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.

28. A Comparison of Primary &
Secondary Data
Primary Data Secondary Data
Collection purpose For the problem at hand For other
problems
Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short

29. Uses of Secondary Data
• Identify the problem
• Better define the problem
• Develop an approach to the problem
• Formulate an appropriate research design (for
example, by identifying the key variables)
• Answer certain research questions and test
some hypotheses
• Interpret primary data more insightfully

30. • Specifications: Methodology Used to Collect the Data
• Error: Accuracy of the Data
• Currency: When the Data Were Collected
• Objective(s): The Purpose for Which the Data Were
Collected
• Nature: The Content of the Data
• Dependability: Overall, How Dependable Are the Data
Criteria for Evaluating
Secondary Data

31. Criteria for Evaluating Secondary
Data
Criteria Issues Remarks
Specifications
& Methodology
Error &
Accuracy
Currency
Objective
Nature
Dependability
Data collection method, response
rate, quality & analysis of data,
sampling technique & size,
questionnaire design, fieldwork.
Examine errors in approach,
research design, sampling, data
collection & analysis, & reporting.
Time lag between collection &
publication, frequency of updates.
Why were the data collected?
Definition of key variables, units of
measurement, categories used,
relationships examined.
Expertise, credibility, reputation,
and trustworthiness of the source.
Data should be reliable,
valid, & generalizable to
the problem.
Assess accuracy by
comparing data from
different sources.
Census data are
updated by syndicated
firms.
The objective
determines the
relevance of data.
Reconfigure the data to
increase their
usefulness.
Data should be obtained

32. A Classification of Secondary
Data
Secondary Data
Ready
to Use
Requires
Further
Processin
g
Published
Materials
Computerized
Databases
Syndicated
Services
Internal External

33. Internal Secondary Data
Department Store Project
Sales were analyzed to obtain:
• Sales by product line
• Sales by major department (e.g., men's wear, house
wares)
• Sales by specific stores
• Sales by geographical region
• Sales by cash versus credit purchases
• Sales in specific time periods
• Sales by size of purchase
• Sales trends in many of these classifications were also
examined

34. Type of Individual/Household Level Data
Available from Syndicated Firms
I. Demographic Data
- Identification (name, address, email,
telephone)
- Sex
- Marital status
- Names of family members
- Age (including ages of family members)
- Income
- Occupation
- Number of children present
- Home ownership
- Length of residence
- Number and make of cars owned

35. Type of Individual/Household Level Data Available from
Syndicated Firms
II. Psychographic Lifestyle Data
- Interest in golf
- Interest in snow skiing
- Interest in book reading
- Interest in running
- Interest in bicycling
- Interest in pets
- Interest in fishing
- Interest in electronics
- Interest in cable television
There are also firms such as Dun & Bradstreet and

36. A Classification of Published
Secondary Sources
Statistical
Data
Guides Directories Indexes Census
Data
Other
Government
Publications
Published
Secondary Data
General Business
Sources
Government
Sources

37. A Classification of
Computerized
Databases
Bibliographic
Databases
Numeric
Databases
Full-Text
Databases
Directory
Databases
Special-
Purpose
Databases
Computerized
Databases
Online Off-LineInternet

38. Published External Secondary
Sources
Guides
• An excellent source of standard or recurring information
• Helpful in identifying other important sources of directories,
trade associations, and trade publications
• One of the first sources a researcher should consult
Directories
• Helpful for identifying individuals or organizations that collect
specific data
• Examples: Consultants and Consulting Organizations
Directory, Encyclopedia of Associations, FINDEX: The
Directory of Market Research Reports, Studies and Surveys,
and Research Services Directory
Indices
• Helpful in locating information on a particular topic in several
different publications

39. Classification of Computerized Databases
• Bibliographic databases are composed of
citations to articles
• Numeric databases contain numerical and
statistical information
• Full-text databases contain the complete text of
the source documents comprising the database
• Directory databases provide information on
individuals, organizations, and services
• Special-purpose databases provide specialized
information

40. Syndicated Services
• Companies that collect and sell common pools of data
of known commercial value designed to serve a
number of clients
• Syndicated sources can be classified based on the
unit of measurement (households/consumers or
institutions)
• Household/consumer data may be obtained from
surveys, diary panels, or electronic scanner services
• Institutional data may be obtained from retailers,
wholesalers, or industrial firms

41. A Classification of Syndicated Services
Unit of
Measuremen
t
Households/
Consumers
Institutions

42. Syndicated Services: Consumers
.
Psychographic
& Lifestyles
General
Advertising
Evaluation
Households /
Consumers
Scanner
Panels with
Cable TV
Surveys Volume
Tracking Data
Scanner
Panels
Electronic
scanner servicesPurchase Media
Panels

43. Syndicated Services:
Institutions
Audits
Direct
Inquiries
Clipping
Services
Corporate
Reports
Institutions
Retailers Wholesalers Industrial firms

44. Overview of Syndicated Services
Type Characteristics Advantages Disadvantages Uses
Surveys Surveys conducted at
regular intervals
Most flexible wayof
obtaining data;
information on
underlying motives
Interviewer errors;
respondent errors
Market
segmentation,
advertising theme
selection and
advertising
effectiveness
Purchase
Panels
Households provide
specific information
regularlyover an
extended period of
time; respondent
asked to record
specific behaviors as
theyoccur
Recorded purchase
behavior can be
linked to the
demographic/
psychographic
characteristics
Lack of
representativeness;
response bias;
maturation
Forecasting sales,
market share and
trends; establishing
consumer profiles,
brand loyaltyand
switching; evaluating
test markets,
advertising, and
distribution
Media Panels Electronic devices
automatically
recording behavior,
supplemented bya
diary
Same as purchase
panel
Same as purchase
panel
Establishing
advertising rates;
selecting media
program or air time;
establishing viewer
profiles

45. Overview of Syndicated Services
Scanner Diary Panels
with Cable TV
Scanner panels of
households that
subscribe to cable TV
Data reflect actual
purchases; sample
control; ability to link
panel data to household
characteristics
Data may not be
representative; quality
of data limited
Promotional mix
analyses, copy testing,
new product testing,
positioning
Audit services Verification of
product movement by
examining physical
records or performing
inventory analysis
Relatively precise
information at the
retail and wholesale
levels
Coverage may be
incomplete; matching
of data on competitive
activity may be
difficult
Measurement of
consumer sales and
market share,
competitive activity,
analyzing distribution
patterns: tracking of
new products
Industrial Product
Syndicated Services
Data banks on
industrial
establishments created
through direct inquiries
of companies, clipping
services, and corporate
reports
Important source of
information on
industrial firms,
particularly useful in
initial phases of the
projects
Data are lacking in
terms of content,
quantity, and quality
Determining market
potential by geographic
area, defining sales
territories, allocating
advertising budget

46. Single-Source Data
Single-source data provide integrated information on
household variables, including media consumption and
purchases, and marketing variables, such as product
sales, price, advertising, promotion, and in-store
marketing effort
• Recruit a test panel of households and meter each
home's TV sets
• Survey households periodically on what they read
• Grocery purchases are tracked by UPC scanners
• Track retail data, such as sales, advertising, and
promotion

47. A Classification of International Sources
International
Organizations
Government
Sources
Nongovernment
Sources
Governments
Trade
Associations
Domestic
Organizations in
the United States
International
Organizations in
the United States
Organizations in
Foreign
Countries
International Secondary Data