1. Chapter Three Research Design

2. 3-2 Chapter Outline 1) Overview 2) Research Design: Definition 3) Research Design: Classification 4) Exploratory Research 5) Descriptive Research i.Cross-Sectional Design ii.Longitudinal Design iii.Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs 6) Causal Research 7) Relationships Among Exploratory, Descriptive, and Causal Research

3. 3-3 Chapter Outline 8) Potential Sources of Error i.Random Sampling Error ii.Non-sampling Error a.Non-response Error b.Response Error 9) Budgeting and Scheduling 10) Marketing Research Proposal 11) International Marketing Research

4. 3-4 Chapter Outline 12) Ethics in Marketing Research 13) Internet and Computer Applications 15) Focus on Burke 14) Summary 15) Key Terms and Concepts

5. 3-5 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.

6. 3-6 Components 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. 3-7 Research Design Is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance. Is the specifications of methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates what information is to be collected from which sources by what procedures.

8. 3-8 A Classification of Marketing Research Designs Single Cross- Sectional Design Multiple Cross- Sectional Design Fig. 3.1 Research Design Conclusive Research Design Exploratory Research Design Descriptive Research Causal Research Cross-Sectional Design Longitudinal Design

9. 3-9 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. ExploratoryConclusive Table 3.1

10. 3-10 Objective: Characteristics: Methods: A Comparison of Basic Research Designs Discovery of ideas and insights Flexible, versatile Often the front end of total research design Expert surveys Pilot surveys Secondary data Qualitative research Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Secondary data Surveys Panels Observation and other data Determine cause and effect relationships Manipulation of one or more independent variables Control of other mediating variables Experiments ExploratoryDescriptive Causal Table 3.2

11. 3-11 Comparison of Research Designs ExploratoryDescriptiveCausal Purpose ID problems, gain insights Describe thingsDetermine cause- and-effect relationships Assumed background knowledge MinimalConsiderable Degree of structure Very littleHigh Flexibility HighSomeLittle Sample Non-representativeRepresentative Research environment RelaxedFormalHighly controlled Cost LowMediumHigh Findings PreliminaryConclusive

12. 3-12 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

13. 3-13 Methods 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).

14. 3-14 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

15. 3-15 Methods 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)

16. 3-16 Sample Surveyed at T 1 Same Same Sample also Surveyed at T 2 T1T1 T2T2 Cross Sectional Design Longitudinal Design Time Cross Sectional vs. Longitudinal Designs Figure 3.6 Cross Sectional vs. Longitudinal DesignsFigure 3.6 Cross Sectional vs. Longitudinal Designs

17. 3-17 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.

18. 3-18 Consumption of Various Soft Drinks by Various Age Cohorts 8-19 20-29 30-39 40-49 50+ Age1960196919791950 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 Table 3.3 Percentage consuming on a typical day

19. 3-19 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

20. 3-20 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. Table 3.4

21. 3-21 Cross-Sectional Data May Not Show Change Brand Purchased Time Period Period 1Period 2Survey Brand A200 200 Brand B300 300 Brand C500 500 Total 1000 1000 Table 3.5

22. 3-22 Longitudinal Data May Show Substantial Change Brand Purchased in Period 1 Brand Purchased in Period 2 Brand ABrand BBrand 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 Table 3.6

23. 3-23 Uses of Causal 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

24. 3-24 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 Recording Error Cheating Error Inability Error Unwillingness Error Fig. 3.2 Total Error Non-sampling Error Random Sampling Error Non-response Error Response Error Interviewer Error Respondent Error Researcher Error

25. 3-25 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 Recording Error Cheating Error Inability Error Unwillingness Error Fig. 3.2 Total Error = (75 - 67) Non-sampling Error Random (75 - 72) Sampling Error Non-response Error =(72-70) Response Error = (70 - 67) Interviewer Error Respondent Error Researcher Error

26. 3-26 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. 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.

27. 3-27 Non-sampling errors Errors in problem definition, questionnarie design, interviewing method, scales, data anlaysis Non-response error arises when some of the respondents included in the sample do not respond. Eg- NAH (Not-at-homes) and Refusals Response error arises when respondents give inaccurate answers or their answers are misrecorded or misanalyzed.

28. 3-28 RESPONSE ERROR 1. RESEARCHER ERROR 2. INTERVIEWER ERROR 3. RESPONDENT ERROR

29. 3-29 RESEARCHER ERRORS ERRORS MADE BY THE RESEARCHER

30. 3-30 1. SURROGATE INFORMATION ERROR Difference between information sought by the researcher and that required to solve the problem. They are used as substitutes instead of the original information source. Eg : Predicting the future behaviour based on the past purchases or Demographic details. Eg- instead of pester power effect, buying influence for various product categories studied

31. 3-31 2. MEASUREMENT ERROR Difference between information sought and information measured by the researcher. Eg- information on purchase preference sought but measured through repeat purchases alone or perception based scale.

32. 3-32 3. POPULATION DEFINITION ERROR Difference between the actual population relevant to the research problem and the population defined by the researcher. Eg- how do you define ‘children’ - According to television audience – 0-18 years - According to other studies on children – 8-16 years Eg- income groups, urban groups -

33. 3-33 4. SAMPLING FRAME ERROR Difference between population defined by the researcher and the population implied by the sampling frame (list) used. Eg- Telephone directory used EG- Placement brochures

34. 3-34 5. DATA ANALYSIS ERROR This error occurs when raw data from questionnaires are transformed into research findings. Eg- not using the right statistical procedure resulting in incorrect interpretations.

35. 3-35 INTERVIEWER ERRORS 1. RESPONDENT SELECTION ERROR- Occurs when interviewers select respondents other than those specified by the sampling design or in a manner inconsistent with the sampling design. Eg- in a survey for the library using habits, respondents selected are non- members of that library Eg- to find the reading habits of people, interview the illiterate ones. 2. QUESTIONING ERROR- 3. RECORDING ERROR- 4. CHEATING ERROR-

36. 3-36 2. QUESTIONING ERROR Made while asking questions or not probing when more information required. Eg- not using the exact wording given in the questionnaires. Eg- not probing in case of language problems

37. 3-37 3. RECORDING ERROR This arises due to errors in hearing, interpreting, and recording the answers given by the respondents. Eg- instead of the neutral response given, interviewer misinterprets as the positive one.

38. 3-38 4. CHEATING ERROR When the interviewer fabricates answers to a part or all of the interview. Eg- not asking sensitive questions for understanding the life style. Eg- Blood bank experience

39. 3-39 RESPONDENT ERRORS 1. INABILITY ERROR EG- fatigue, boredom, unfamiliarity, faulty recall, question format, Eg- What was the softdrink you had four months back? 2. UNWILLINGNESS ERROR Eg- intentionally misreport, avoid embarassment, to please the interviewer

40. 3-40 TRADE-OFF BETWEEN THE ERRORS By increasing the sample size, sampling error reduces but the non-sampling error increases. HENCE THE MAIN OBJECTIVE SHOULD BE TO DECREASE THE TOTAL ERROR. Sampling error can be calculated but non-sampling error can’t be estimated.

41. QUICK EXERCISE

42. 3-42 State whether true or false 1. Sampling error is zero in case of a census survey. TRUE, Because sampling error is reduced as the sample size increases.

43. 3-43 2. The error due to “non correspondence of the required population to the population selected by the investigator” is _____________. Population definition error

44. 3-44 3. A sample of 300 respondents aged 35-50 years selected to study the adult population of Gujarat. State the type of error. Sampling error

45. 3-45 4. More homogeneous the population, smaller the sampling error. True or false. True.

46. 3-46 5. Difference between information generated and that wanted by the researcher. Measurement error.

47. 3-47 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

48. 3-48 Citicorp Banks on Exploratory, Descriptive, and Causal Research 1) 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.

49. 3-49 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

50. 3-50 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. Citicorp Banks on Exploratory, Descriptive, and Causal Research

51. 3-51 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? Citicorp Banks on Exploratory, Descriptive, and Causal Research

52. 3-52  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. Citicorp Banks on Exploratory, Descriptive, and Causal Research

53. 3-53 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 intercept 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. Citicorp Banks on Exploratory, Descriptive, and Causal Research

54. 3-54 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. Citicorp Banks on Exploratory, Descriptive, and Causal Research

55. 3-55 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

56. 3-56 The Greenfield of Online Research Greenfield Online Research Center, Inc. (http://www.greenfieldonline.com), based in Westport, Connecticut, is a subsidiary of the Greenfield Consulting Group. The Online Research Center conducts focus groups, surveys, and polls over the Internet. The company has built up a “panel” of close to 200,000 Internet users, from which it draws survey samples. The samples may be used for descriptive research designs like single or multiple cross-sectional designs, as well as longitudinal designs. Causal designs can also be implemented. Respondents may also be chosen from the registered Internet users.

57. 3-57 Internet users wishing to take part in surveys and other projects begin by registering online at the company’s Web site. The registration consists of a “sign-up survey” that asks for e- mail address, type of computer used, personal interests and information about the respondent’s household. Once an Internet user is registered, Greenfield Online matches the user with research studies that are well-suited to his or her interests. Incentives to take part in focus groups or special surveys are offered by the companies whose products or services are being researched. This incentive is cash or valuable prizes. Incentives are also offered to Internet users to encourage them to register with Greenfield’s Internet panel. New registrants automatically qualify for prizes that are awarded in monthly drawings. The Greenfield of Online Research