1. Research Design 4

2. Ch 52 Research Design Research design is a set of advanced decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information.

3. Ch 53 The Significance of Research Design There are basic marketing research designs that can be successfully matched to given problems and research objectives, and they serve the researcher much like the blueprint serves the builder.

4. Ch 54 Basic Research Objectives and Research Design Research ObjectiveAppropriate Design To gain background information, Exploratory to define terms, to clarify problems and hypotheses, to establish research priorities To describe and measure marketing Descriptive phenomena at a point in time To determine causality, Causal to make “if-then” statements

5. Ch 55 Exploratory Research Exploratory research is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem.

6. Research Design Part II 4

7. Ch 57 Research Design Research design is a set of advanced decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information.

8. Ch 58 Causal Research Causality may be thought of as understanding a phenomenon in terms of conditional statements of the form “If x, then y.” Causal studies are conducted through the use of experiments.

9. Ch 59 Experiments An experiment is defined as manipulating an independent variable to see how it affects a dependent variable, while also controlling the effects of additional extraneous variables.

10. Ch 510 Independent Variable Independent variables are those variables which the researcher has control over and wishes to manipulate.

11. Ch 511 Dependent Variables Dependent variables are those variables that we have little or no direct control over, yet we have a strong interest in.

12. Ch 512 Extraneous Variables Extraneous variables are those variables that may have some effect on a dependent variable yet are not independent variables. Extraneous variables must be controlled through proper experimental design.

13. Ch 513 Experimental Design Experimental design is a procedure for devising an experimental setting such that a change in a dependent variable may be attributed solely to the change in an independent variable.

14. Ch 514 Symbols of Experimental Design O = measurement of a dependent variable X = manipulation, or change, of an independent variable R = random assignment of subjects to experimental and control groups E = experimental effect

15. Ch 515 Pretest and Posttest Pretest refers to the measurement of the dependent variable taken prior to changing the independent variable. Posttest refers to measuring the dependent variable after changing the independent variable.

16. Ch 516 A “True” Experimental Design A “true” experimental design is one that truly isolates the effects of the independent variable on the dependent variable while controlling for the effects of any extraneous variables.

17. Ch 517 Not “True” Experimental Design After-Only Design: X O 1 One-Group, Before-After Design: O 1 X O 2 X = manipulation, or change, of an independent variable O = measurement of a dependent variable

18. Ch 518 Control of Extraneous Variables A control group is a group whose subjects have not been exposed to the change in the independent variable. An experimental group is a group that has been exposed to a change in the experimental variable.

19. Ch 519 A “True” Experimental Design Before-After with Control Group: –Experimental group:O 1 X O 2 –Control group: O 3 O 4 –Where E = (O 2 – O 1 ) – (O 4 – O 3 )

20. Ch 520 How Valid are Experiments? An experiment is valid if it has: –Internal validity: which measures the extent to which the change in the dependent variable is actually due to the change in the independent variable.

21. Ch 521 How Valid are Experiments? An experiment is valid if it has: –External validity: which refers to the extent that the relationship observed between the independent and dependent variables during the experiment is generalizable to the “real world.”

22. Ch 522 Types of Experiments Laboratory experiments are those in which the independent variable is manipulated and measures of the dependent variable are taken in a contrived, artificial setting for the purpose of controlling the many possible extraneous variables that may affect the dependent variable.

23. Ch 523 Types of Experiments Field experiments are those in which the independent variables are manipulated and the measurements of the dependent variable are made on test units in their natural setting.

24. Ch 524 Test Marketing Test marketing is the phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting. Uses of test markets –To test sales potential for a new product or service –To test variations in the marketing mix for a product or service

25. Ch 525 Types of Test Markets Standard Test Market: one in which the firm tests the product and/or marketing mix variables through the company’s normal distribution channels. Controlled Test Markets: ones that are conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

26. Ch 526 Types of Test Markets Electronic Test Markets: those in which a panel of customers have agreed to carry identification cards that each consumer presents when buying goods and services.

27. Ch 527 Types of Test Markets Simulated Test Markets: those in which a limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generate likely sales volume.

28. Ch 528 Test Markets Test marketing is used in both consumer markets and industrial B2B markets as well. Lead country test market: test marketing conducted in specific foreign countries that seem good predictors for an entire continent.

29. Ch 529 Criteria for Selecting Test Markets Representativeness: Do demographics match the total market? Degree of isolation: Phoenix and Tulsa are isolated markets; Los Angeles is not.

30. Ch 530 Criteria for Selecting Test Markets Ability to control distribution and promotion: Are there preexisting arrangements to distribute the new product in selected channels of distribution? Are local media designed to test variations of promotional messages?

31. Ch 531 Test Marketing Pros: –Allows most accurate method of forecasting future sales –Allows firms the opportunity to pretest marketing mix variables

32. Ch 532 Test Marketing Cons: –Does not yield infallible results –Are expensive –Exposes the new product to competitors –Takes time to conduct