Research Design Chapter 3

Research Design: Definition  A framework or blueprint for conducting the marketing research project. It Specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problems

Research Design: Classification  Research design is broadly classified as exploratory or conclusive  The differences between exploratory and conclusive research are summarized in the following table

A Comparison of Basic Research Designs ExploratoryDescriptiveCausal Discover ideas & insights Describe market characteristic and functions Determine cause and effect relationship Flexible, VersatilePrior formulation of hypotheses Manipulation of one or more independent variables Often front end of total research design Planned & structured design Control of other mediating variables Expert surveys, Pilot surveys, Secondary data, qualitative Research Secondary data, Surveys, Panels. Observational & other data Experiments

Exploratory Research Design  Exploratory research could be used for any of the following purposes: 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

Methods useful for Exploratory Research  Survey of Experts  Pilot Surveys  Secondary Data Analysis  Qualitative Research

Exploratory Research  Exploratory research, as the name suggests, leads to insights into research problem  Exploratory research is, by nature inconclusive and is often followed by conclusive research  However, when exploratory research is the only research to be conducted, we should exercise caution in sample selecting and interpretation of results

Descriptive Research  A type of research that has as its major objective the description of something – usually market characteristics of functions

Descriptive Research  Descriptive research is conducted for following reasons: To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas  For example we could develop a profile of heavy users of Ufone prepaid cards To estimate the percentage of units in a specified population exhibiting a certain behavior  For example we might be interested in the proportion of Ufone heavy users in the population

Descriptive Research  Descriptive research is conducted for following reasons: To determine perceptions of product characteristics  For example, how do customers perceive various cell phone operators in terms of hidden charges criteria To determine the degree to which marketing variables are associated  For example, to what extent visit to a children playland is related to shopping To make specific predictions. For example, what will be the retail sales of LG KG 275 in Feb in the N. Nazimabad area?

Descriptive Research  The descriptive research assumes that researcher has much prior knowledge about the problem situation  Descriptive research is characterized by the prior formulation of research hypotheses  Information needed is clearly defined

Descriptive Research  The research is planned and structured  It is based on large representative samples  A formal research design specifies methods specifies the methods for selecting the sources of information and for collecting data from those sources

Examples of descriptive research  Market studies, which describe the size of the market, buying power of the consumers, availability of distributors, and consumer profiles  Market share studies, which determine proportion of total sales received by a company and its competitors

Examples of descriptive research  Sales analysis studies, which describe sales by geographic region, product line, type and size of the account  Image studies, which determine consumer perceptions of the firm and its products  Product usage studies, which describe consumption patterns

Examples of descriptive research  Distribution studies, which determine traffic flow patterns and the number and location of distributors  Pricing studies, which the range and frequency of price changes and probable consumer response to proposed price changes  Advertising studies, which describe media consumption habits and audience profiles for specific television programs and magazines

Descriptive Research Design  A descriptive research design requires a clear specification of the who, what, when, where, why and way (the six Ws) of the research

The six Ws of a research design  Who – who should be considered a respondent  What – what information should be obtained from the respondents  When - when should the information be obtained from the respondents  Where – where should the respondents be contacted to obtain the requried information

The six Ws of a research design  Why – why are we obtaining information from the respondents. Why is the marketing research project being conducted  Way – In what way are we going to obtain information from the respondents

Major methods for descriptive research  Secondary data analysis in a quantitative way  Surveys  Panels  Observational and other data

Cross-Sectional designs  A type of research design involving the collection of information from any given sample of population elements only once. These are also called surveys  Single cross-sectional design Only one sample of respondents is drawn from the target population, and information is obtained from this ample only once

Cross-Sectional designs  Multiple cross-sectional design A cross-sectional design in which there are two or more samples of respondents and information is obtained only once  Cohort analysis A multiple cross-sectional design consisting of a series of surveys conducted at appropriate time intervals. The cohort refers to the group of respondents who experience the same event within the same time interval

Longitudinal Designs  A type of research design involving a fixed sample of population elements that is measured repeatedly. The sample remains the same over time, thus providing a series of pictures, which when viewed together, portray a vivid illustration of the situation and the changes that are taking place over time

Longitudinal Design  In longitudinal design, the same people are studied over and time and the same variables are measured  Longitudinal designs are also called panels Panel is a sample of respondents who have agreed to provide information at specified time intervals over an extended period

Relative Advantages and Disadvantages of surveys and panels Evaluation CriteriaSurveyPanel Detecting change -+ Large amount of data collection -+ Accuracy -+ Representative sampling +- Response bias +- A + indicates a relative advantage over other design, whereas a – indicates a relative disadvantage

Causal Research  A type of conclusive research where the major objective is to obtain evidence regarding cause-and-effect (causal) relationship  Causal research is appropriate for following purposes: To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) To determine the nature of relationship between the causal variables and the effect to be predicted

Relationship among Exploratory, Descriptive and Causal Research  When little is known about the problem situation, it is desirable to begin with exploratory research  Exploratory research is the initial step in the overall research design framework. It should, in most instances, be followed by descriptive or causal research

Relationship among Exploratory, Descriptive and Causal Research  It is not necessary to begin every research design with exploratory research. It depends upon the precision with which the problem is defined  Although exploratory research is generally the initial step, it need not be. Exploratory research may follow descriptive or causal research

Potential sources of error  Several potential sources of error can affect a research design

The difference between an Error and a Bias  Bias is systematic favoring of some outcomes of over others  Bias is “intentional”  The major difference between bias and error is that an error tends to diminish in the long run whereas bias keeps increasing in the long run

Potential Sources of Errors in Research Design Total error Random Sampling ErrorNonsampling Error Response Error Researcher Errors Surrogate Information Error Measurement Error Population Definition Error Sampling Frame Error Data Analysis Error Interviewer Errors Respondent Selection Error Questioning Error Recording Error Cheating Error Respondent Errors Inability Error Unwillingness Error Nonresponse Error

Total Error  The variation between the true mean value of the population parameter and observed value of the sample statistic obtained in the market research project

Random Sampling Error  Random sampling error occurs due to the particular sample selected is an imperfect representation of the population of interest  Random sampling error is the difference between the population parameter and the observed sample statistic for the original sample

Nonsampling Error  Nonsampling errors are errors that can e attributed to sources other than sampling, and they can be random or nonrandom  Nonsampling errors consists of nonresponse and response errors

Nonresponse Error  A type of nonsampling error that occurs when some of the respondents included in the sample do not respond. This error may be defined as the variation between the true mean value of variable in the original sample and the true mean value in the net sample

Response Error  A type of nonsampling error arising from respondents who do respond but given inaccurate answers, or their answers are misrecorded or misnalayzed. It may defined as the variation between the true mean value of the variable in the net sample and the observed mean value in the marketing research project

Response Errors  Response errors can e made by researchers, interviewers, or respondents

Response Errors by Researchers  Errors made by researcher include surrogate information, measurement, population definition, sampling frame, and data analysis errors

Surrogate Information Error  This error is the variation between the information needed for marketing research problem and the information sought by the researcher  For example, instead of obtaining information on consumer choice of a new brand (needed for the marketing research problem), the researcher obtains information on consumer preferences because the choice process cannot e easily observed

Measurement Error  This error may be defined as the variation between the information sought and the information generated by the measurement process  For example, seeking to measure consumer preferences, the consumer employs a scale that measures perceptions rather than preferences

Population Definition Error  The variation between the actual population relevant to the problem at hand and the population as defined by the researcher

Data Analysis Error  Data analysis error encompasses errors that occur when raw data from questionnaires are transformed into research findings  For example, an inappropriate statistical procedure is used resulting in incorrect interpretation and findings

Response Errors by Interviewer  Response errors made by interviewers include  Respondent selection error  Selection of a respondent other than specified by the sampling design or in a manner inconsistent with the sampling design  Questioning error  Errors made in asking questions of the respondents or in not probing where more information is required

Response Errors by Interviewer  Recording error  Arises due to errors in hearing, interpreting, and recording the answers given by the respondents  Cheating error  Arises when interviewer fabricates answers to a part or all of the interview

Response Errors by Respondents  Inability error  Results from the inability of respondent to provide accurate answers  Reasons for inability may be unfamiliarity, fatigue, boredom, faulty recall, question format, question content, and other factors  Unwillingness error  Arises from the respondent’s unwillingness to provide accurate information  Reasons could be to provide socially desirable answers, avoid embarrassment, or to please the interviewer

Controlling total error  In formulating research design, researcher should try to minimize total error not just any one component of the total error

Components of a research design  Research design may also include a Research Brief from the client and a Research Proposal or Return on Brief from the researcher

Research Brief: Contents  Why do this market research? – what action will be taken when the research is completed?  What has caused this problem or led to this opportunity?  What is known about the area of research already?

Research Brief: Contents  Why do this market research? – what action will be taken when the research is completed?  What has caused this problem or led to this opportunity?  What is known about the area of research already?

Research Brief: Contents  Target groups for the research  What specific information is needed from the research (for example, market size, trends, buying behavior, customer needs, segmentation) What is known about the area of research already?

Research Brief: Contents  What is the proposed budget?  Are there any initial ideas for the research method?  Are there any reporting requirements?  When are the findings required?

Research Brief  The research brief should be a dialogue, and even the most thorough brief covering all the issues we have listed will generate some additional questions from the researchers. This is healthy and to be expected, as it indicates that the problem is being thought through and interest is being shown.

Research Brief  Sometimes the written brief and a series of phone calls are sufficient for the agency to get on with their part of the process – the proposal – and sometimes there will be justification for a face-to-face meeting.

Research Brief  Nearly, but not always, these briefing sessions are on the client’s turf where it is easier to show the product, look at brochures and reports and meet with other people who may be able to contribute to the debate

Research Proposal  Also called Return on Brief (RoB) is the response from researcher to the research brief  It is the official layout of the planned marketing research activity for management  It describes the research problem, the research design, the data collection and analysis methods, and reporting methods

Research Proposal: Advantages  It ensures that the researcher and management agree about the nature of the project  It helps sell the project to management  It helps the researcher conceptualize and execute the marketing research project

Research Proposal: Contents  Executive Summary The proposal should begin with a summary of the major points from each of the other sections, presenting an overview of the entire proposal  Background The background of the problem including the environmental context should be discussed

Research Proposal: Contents  Problem Definition/Objectives of the Research Normally, a statement of the problem, including the specific components, should be presented. If this statement has not been developed (as in the case of problem identification research), the objectives of the marketing research project should be clearly specified

Research Proposal: Contents  Approach to the Problem At a minimum, a review of the relevant academic and trade literature should be presented, along with some kind of an analytical model. If these research questions and hypotheses have been identified, then these should be included in the proposal

Research Proposal: Contents  Research Design The intended research design should be presented. Research design must provide information on:  Kind of information to be obtained  Methods of questionnaire administration  Nature of questionnaire  Scaling techniques  Sampling plan

Research Proposal: Contents  Field Work / Data Collection Complete details of how data will be collected should be presented. Details of supervisor and interviewer training, supervisor-interviewer ratio, pre-testing, pilot survey (if needed), logistics (movement of survey material & personnel), methods of back-checking (verification) and percentage, field work monitoring controls, etc. should be included

Research Proposal: Contents  Data Analysis Type of data analysis to be conducted, reports to be generated and key to interpretation of results should be included

Research Proposal: Contents  Reporting Reporting mechanism outlined in research design should be elaborated in greater detail. Whether reports would be provided intermittently or at the end of marketing research project, should be clearly spelled out. Indication should be provided as to whether a presentation will follow the report or not

Research Proposal: Contents  Reporting Reporting mechanism outlined in research design should be elaborated in greater detail. Whether reports would be provided intermittently or at the end of marketing research project, should be clearly spelled out. Indication should be provided as to whether a presentation will follow the report or not

Research Proposal: Contents  Cost and Time Estimates This is probably the most important part of the proposal. Especially, when proposal in in response to an “Invitation for Proposal”, it is vital to be very specific and competitive A CPM or PERT chart might be included to highlight key deliverables In large projects, a payment schedule is also worked out in advance

Research Proposal: Contents  Appendices Any statistical or other information that is necessary and relevant and deemed by the researcher to be of interest to the decision maker, might also be included in the appendices to the marketing research proposal