Chapter Three

Research Design

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Design

It tells dimensions (Length, Width, Height), shape, different views (Top View, Side view, Front View) of all the components of the product. In short overall idea about the product is conveyed by the design. Similarly Research design gives overall idea about Research.

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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.

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Components of a Research Design

Define the information needed Design the exploratory, descriptive, and/or causal phases of the research Specify the measurement and scaling procedures Construct and pretest a questionnaire (interviewing form) or an appropriate form for data collection (Pilot Testing) Specify the sampling process and sample size Develop a plan of data analysis

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A Classification of Marketing Research Designs

Research Design

Exploratory Research Design

Conclusive Research Design

Descriptive Research Design

Causal Research Design

Cross-Sectional Design

Longitudinal Design

Single CrossSectional Design

Multiple CrossSectional Design

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Exploratory & Conclusive Research Differences

Exploratory
Objective:
To provide insights and understanding. Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and nonrepresentative. Analysis of primary data is qualitative.

Conclusive
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.

Characteristics:

Findings /Results: Outcome:

Tentative.

Conclusive.

Generally followed by further conclusive research.

Findings used as input into decision making.

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A Comparison of Basic Research Designs

Exploratory
Objective:

Descriptive

Causal
Determine cause and effect relationships Manipulation of one or more independent variables Control of other mediating variables Experiments

Discovery of ideas Describe market and insights characteristics or functions Flexible, versatile Marked by the prior formulation of specific hypotheses Preplanned and structured design

Characteristics:

Often the front end of total research design Expert surveys Secondary data Qualitative research

Methods:

Secondary data Surveys Observation and other data

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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

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Methods of Exploratory Research

Survey of experts Pilot surveys Secondary data analyzed in a qualitative way Qualitative research

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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 (effect of promotions on sales) To make specific predictions (Forecasting).

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Use of Descriptive Research (Contd..)

Examples
Market Study -Size of Market, consumer profile Market Share Region wise Sales analysis Image study- consumer perception Product usage study

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Methods of Descriptive Research

Secondary data analyzed in a quantitative as opposed to a qualitative manner Surveys Observational and other data

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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 cohort is a group of respondents who experience the same event within the same time interval.

Consumption of Various Soft Drinks by Various Age Cohorts

Percentage consuming on a typical day Age 8-19 20-29 30-39 40-49 50+ C1: C2: C3: C4: cohort cohort cohort cohort 1950 52.9 45.2 33.9 23.2 18.1 born born born born 1960 62.6 60.7 46.6 40.8 28.8 C1 prior to 1900 1901-10 1911-20 1921-30 1969 73.2 76.0 67.7 58.6 50.0 C2 C5: C6: C7: C8: 1979 81.0 75.8 71.4 67.8 51.9 C3 cohort cohort cohort cohort born born born born C8 C7 C6 C5 C4

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1931-40 1940-49 1950-59 1960-69

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Longitudinal Designs

A fixed sample (or samples) of population elements is measured repeatedly on the same variables A longitudinal design differs from a crosssectional design in that the sample or samples remain the same over time

Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs

Evaluation Criteria Cross-Sectional Design

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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.

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Uses of Casual Research

To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon ex. Cause of sales decline To determine the nature of the relationship between the causal variables and the effect to be predicted METHOD: Experiments

Potential Sources of Error in Research Designs

Total Error

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Sampling Error

Non-sampling Error

Response Error

Non-response Error

Researcher Error
Surrogate Information Error Measurement Error Population Definition Error Sampling Frame Error Data Analysis Error

Interviewer Error

Respondent Error
Inability Error Unwillingness Error

Respondent Selection Error Questioning Error Recording Error Cheating Error

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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 based on a market survey. 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. Nonsampling errors consist of non-response errors and response errors.

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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.

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Researcher error

Surrogate Information Error- Variation between information needed for the problem and information sought by researcher. Measurement Error- Variation between information sought and information generated by measurement process Population Definition Error- Actual population needed and population defined by researcher Sampling Frame Error- Population defined and actual population taken telephone directory Data Analysis Error When data transfer from questionnaire to analysis part

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Interviewer Error

Respondent Selection Error Non representative respondents Questioning Error- Wording problem Recording Error Hearing error Cheating Error Few data is filled by researcher

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Respondent

Error

Inability Error Unfamiliarity, boredom, faulty recall Unwillingness Error Improper response from respondent ( Wrong answer)

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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 Appendices

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Primary vs. Secondary Data

Primary data are originated by a researcher for the specific purpose of addressing the problem at hand. The collection of primary data involves all six steps of the marketing research process. Secondary data are data which have already been collected for purposes other than the problem at hand. These data can be located quickly and inexpensively.

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A Comparison of Primary & Secondary Data

Primary Data Collection Collection Collection Collection purpose process cost time For the problem at hand High Involvement High Long

Secondary Data For other problems Rapid & easy Relatively low Short

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Uses of Secondary Data

Identify the problem Better define the problem Develop an approach to the problem Formulate an appropriate research design (Ex. by identifying the key variables) Answer certain research questions and Frame some hypotheses Interpret primary data more insightfully

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Criteria for Evaluating Secondary Data

Specifications: Methodology Used to Collect the Data Error: Accuracy of the Data Currency: When the Data Were Collected (New, Old, Updated data) Objective(s): The Purpose for Which the Data Were Collected by Researcher Nature: The Content of the Data (Variable, Unit of measurement) Dependability: How Dependable are the Data (Reliability)

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A Classification of Secondary Data

Secondary Data

Internal

External

Ready to Use

Requires Further Processing

Published Materials

Computerized Databases

Syndicated Services