Published on

Marketing Research: An Applied Orientation: Global Edition, 6/E

  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. Chapter Three Research Design
  2. 2. 3-2Chapter Outline1) Overview2) Research Design: Definition3) Research Design: Classification4) Exploratory Research5) Descriptive Research i. Cross-Sectional Design ii. Longitudinal Design iii. Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs6) Causal Research7) Relationships Among Exploratory, Descriptive, and Causal Research
  3. 3. 3-3Chapter Outline8) Potential Sources of Error i. Random Sampling Error ii. Non-sampling Error a. Non-response Error b. Response Error 9) Budgeting and Scheduling10) Marketing Research Proposal11) International Marketing Research
  4. 4. 3-4Chapter Outline12) Ethics in Marketing Research13) Internet and Computer Applications15) Focus on Burke14) Summary15) Key Terms and Concepts
  5. 5. 3-5Research 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.
  6. 6. 3-6Components 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) Develop a plan of data analysis (Chapter 14)
  7. 7. 3-7A Classification of Marketing Research Designs Fig. 3.1 Research Design Exploratory ConclusiveResearch Design Research Design Descriptive Causal Research Research Cross-Sectional Longitudinal Design Design Single Cross- Multiple Cross- Sectional Design Sectional Design
  8. 8. 3-8 Exploratory & Conclusive Research Differences Table 3.1 Exploratory ConclusiveObjective: To provide insights and To test specific hypotheses understanding. and examine relationships.Character- Information needed is Information needed is clearlyistics: defined only loosely. defined. Research process is Research process is flexible formal and structured. Sample and unstructured. Sample is large and representative. is small and non- Data analysis is quantitative. representative. Analysis of primary data is qualitative.Findings Conclusive./Results: Tentative.Outcome: Findings used as input into Generally followed by decision making. further exploratory or
  9. 9. 3-9 A Comparison of Basic Research Designs Table 3.2 Exploratory Descriptive CausalObjective: Discovery of Describe market Determine cause ideas and characteristics or and effect insights functions relationshipsCharacteristics: Marked by the prior Manipulation of Flexible, formulation of one or more versatile specific hypotheses independent variables Preplanned and structured design Control of other Often the front mediating end of total variables research design Secondary dataMethods: Surveys Experiments Expert surveys Panels Pilot surveys Observation and Secondary data other data Qualitative
  10. 10. 3-10Uses 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
  11. 11. 3-11Methods 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 Chapter 5).
  12. 12. 3-12Use 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
  13. 13. 3-13Methods 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 6)
  14. 14. 3-14Cross-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 cohort is a group of respondents who experience the same event within the same time interval.
  15. 15. Consumption of Various Soft Drinks 3-15 by Various Age Cohorts Table 3.3 Percentage consuming on a typical dayAge 1950 1960 1969 19798-19 52.9 62.6 73.2 81.020-29 45.2 60.7 76.0 75.8 C830-39 33.9 46.6 67.7 71.4 C740-49 23.2 40.8 58.6 67.8 C650+ 18.1 28.8 50.0 51.9 C5 C1 C2 C3 C4C1: cohort born prior to 1900 C5: cohort born 1931-40C2: cohort born 1901-10 C6: cohort born 1940-49C3: cohort born 1911-20 C7: cohort born 1950-59C4: cohort born 1921-30 C8: cohort born 1960-69
  16. 16. 3-16Longitudinal 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
  17. 17. Relative Advantages and Disadvantages of 3-17 Longitudinal and Cross-Sectional Designs Table 3.4Evaluation Cross-Sectional LongitudinalCriteria Design DesignDetecting Change - +Large amount of data collection - +Accuracy - +Representative Sampling + -Response bias + -Note: A “+” indicates a relative advantage over the otherdesign, whereas a “-” indicates a relative disadvantage.
  18. 18. Cross-Sectional Data May Not Show 3-18 Change Table 3.5Brand Purchased Time Period Period 1 Period 2 Survey Survey Brand A 200 200 Brand B 300 300 Brand C 500 500 Total 1000 1000
  19. 19. Longitudinal Data May Show 3-19 Substantial Change Table 3.6Brand Brand Purchased in Period 2Purchasedin Period 1 Brand A Brand B Brand C TotalBrand A 100 50 50 200Brand B 25 100 175 300Brand C 75 150 275 500Total 200 300 500 1000
  20. 20. 3-20Uses 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
  21. 21. Potential Sources of Error in 3-21 Research Designs Fig. 3.2 Total Error Random Non-sampling Sampling Error Error Response Non-response Error Error Researcher Interviewer Respondent Error Error ErrorSurrogate Information Error Respondent Selection Error Inability ErrorMeasurement Error Questioning Error Unwillingness ErrorPopulation Definition Error Recording ErrorSampling Frame Error Cheating ErrorData Analysis Error
  22. 22. 3-22Errors 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 non-response errors and response errors.
  23. 23. 3-23Errors 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.
  24. 24. Citicorp Banks on Exploratory, Descriptive, 3-24 and Causal ResearchMarketing Research at Citicorp is typical in that it is used tomeasure consumer awareness of products, monitor theirsatisfaction and attitudes associated with the product, trackproduct usage and diagnose problems as they occur. Toaccomplish these tasks Citicorp makes extensive use ofexploratory, descriptive, and causal research. Often it isadvantageous to offer special financial packages to specificgroups of customers. In this case, a financial package isbeing designed for senior citizens.The following seven-step process was taken by marketingresearch to help in the design.
  25. 25. Citicorp Banks on Exploratory, Descriptive, 3-25 and Causal Research1) A taskforce was created to better define the marketparameters to include all the needs of the many Citicorpbranches. A final decision was made to include Americans55 years of age or older, retired, and in the upper half ofthe financial strata of that market.
  26. 26. Citicorp Banks on Exploratory, Descriptive, 3-26 and Causal Research2) Exploratory research in the form of secondary data analysisof the mature or older market was then performed and a studyof competitive products was conducted. Exploratory qualitativeresearch involving focus groups was also carried out in order todetermine the needs and desires of the market and the level ofsatisfaction 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.
  27. 27. Citicorp Banks on Exploratory, Descriptive, 3-27 and Causal Research3) The next stage of research was brainstorming. Thisinvolved the formation of many different financialpackages aimed at the target market. In this case, atotal of 10 ideas were generated.
  28. 28. Citicorp Banks on Exploratory, Descriptive, 3-28 and Causal Research4) 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 inrelation to the business. The following list of questions was used asa series of hurdles that the ideas had to pass to continue on to thenext 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?
  29. 29. Citicorp Banks on Exploratory, Descriptive, 3-29 and Causal Research 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 sessionmade it past all the listed hurdles and on to step 5.
  30. 30. Citicorp Banks on Exploratory, Descriptive, 3-30 and Causal Research5) A creative work-plan was then generated. This plan wasto emphasize the competitive advantage of the proposedproduct as well as better delineate the specific features ofthe product.6) The previous exploratory research was now followed upwith descriptive research in the form of mall intercept surveysof people in the target market range. The survey showed thatthe list of special features was too long and it was decided todrop the features more commonly offered by competitors.
  31. 31. Citicorp Banks on Exploratory, Descriptive, 3-31and Causal Research7) Finally, the product was test marketed in six ofthe Citicorp branches within the target market.Test marketing is a form of causal research.Given successful test marketing results, theproduct is introduced nationally.
  32. 32. 3-32Marketing 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 Appendices
  33. 33. 3-33 The Greenfield of Online ResearchGreenfield Online Research Center, Inc.(, based in Westport,Connecticut, is a subsidiary of the Greenfield ConsultingGroup. The Online Research Center conducts focusgroups, surveys, and polls over the Internet. Thecompany has built up a “panel” of close to 200,000Internet users, from which it draws survey samples. Thesamples may be used for descriptive research designslike single or multiple cross-sectional designs, as well aslongitudinal designs. Causal designs can also beimplemented. Respondents may also be chosen from theregistered Internet users.
  34. 34. 3-34 The Greenfield of Online ResearchInternet users wishing to take part in surveys and other projectsbegin by registering online at the company’s Web site. Theregistration consists of a “sign-up survey” that asks for e-mailaddress, type of computer used, personal interests andinformation about the respondent’s household. Once anInternet user is registered, Greenfield Online matches the userwith research studies that are well-suited to his or her interests.Incentives to take part in focus groups or special surveys areoffered by the companies whose products or services are beingresearched. This incentive is cash or valuable prizes.Incentives are also offered to Internet users to encourage themto register with Greenfield’s Internet panel. New registrantsautomatically qualify for prizes that are awarded in monthlydrawings.