1. 3-1 Copyright © 2010 Pearson Education, Inc. Chapter Three Research Design

2. 3-2 Copyright © 2010 Pearson Education, Inc. Chapter Outline 1)Research Design Classification 2)Exploratory Research 3)Descriptive Research 4)Causal Research 5)Potential Sources of Error 6)Marketing Research Proposal

3. 3-3 Copyright © 2010 Pearson Education, Inc. 1) 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.

4. 3-4 Copyright © 2010 Pearson Education, Inc. The Problem Definition Process (again) Fig. 2.1 Discussion with Decision Maker(s) Interviews with Experts Secondary Data Analysis Qualitative Research Management Decision Problem Marketing Research Problem Tasks Involved Environmental Context of the Problem Step I: Problem Definition Step II: Approach to the Problem Objective/ Theoretical Foundations Research Questions Hypotheses Step III: Research Design Analytical Model: Verbal, Graphical, Mathematical Specification of Information Needed

5. 3-5 Copyright © 2010 Pearson Education, Inc. 1) Components of a Research Design 1. Define the information needed (Chapter 2) 2. Design the exploratory, descriptive, and/or causal phases of the research (Chapters 3 - 7) 3. Specify the measurement and scaling procedures (Chapters 8 and 9) 4. Construct and pretest a questionnaire (interviewing form) or an appropriate form for data collection (Chapter 10) 5. Specify the sampling process and sample size (Chapters 11 and 12) 6. Develop a plan of data analysis (Chapter 14)

6. 3-6 Copyright © 2010 Pearson Education, Inc. 1) 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

7. 3-7 Copyright © 2010 Pearson Education, Inc. 1) 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. Hypotheses may not exist. 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

8. 3-8 Copyright © 2010 Pearson Education, Inc. 1) A Comparison of Basic Research Designs Objective: Characteristics: Methods: Discovery of ideas and insights Flexible, versatile Often the front end of total research design Expert surveys Pilot surveys Case studies Qualitative & quantitative secondary data Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Quantitative secondary data Surveys Panels Observation and other data Determine cause and effect relationships Manipulation of independent variables, effect on dependent variables Control mediating variables Experiments ExploratoryDescriptive Causal Table 3.2

9. 3-9 Copyright © 2010 Pearson Education, Inc. 2) Uses of Exploratory Research Exploratory research can be used to: Formulate a problem or define a problem more precisely Identify alternative courses of action Develop hypotheses Establish approach and priorities for further research Exploratory methods discussed in chapters 2-5.

10. 3-10 Copyright © 2010 Pearson Education, Inc. 3) Use of Descriptive Research Descriptive research can be used to: describe the characteristics of relevant consumers or market areas determine the perceptions of product characteristics determine the degree to which marketing variables are associated make specific predictions Descriptive research can be further classified into cross-sectional and longitudinal research…

11. 3-11 Copyright © 2010 Pearson Education, Inc. 3) Cross-Sectional Designs Cross-sectional designs involve the collection of information from any given sample of population elements only once Single cross-sectional designs one sample of respondents information is obtained from this sample only once Multiple cross-sectional designs two or more samples of respondents 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.

12. 3-12 Copyright © 2010 Pearson Education, Inc. 3) Example of Cohort Analysis Cohorts (in this example) = income level groups

13. 3-13 Copyright © 2010 Pearson Education, Inc. 3) Longitudinal Designs A longitudinal design involves a fixed sample (or samples) of population elements that is measured repeatedly on the same variables. A longitudinal design differs from a multiple cross-sectional design in that the sample or samples remain the same over time. A panel is a sample of respondents who have agreed to provide information at specified intervals over an extended period.

14. 3-14 Copyright © 2010 Pearson Education, Inc. 3) Cross-Sectional vs. Longitudinal Sample(s) Surveyed at T 1 Sample Surveyed at T 1 Same Sample also Surveyed at T 2 T1T1 T2T2 Cross- Sectional Design Longitudinal Design Time Figure 3.6 Cross Sectional vs. Longitudinal DesignsFigure 3.6 Cross Sectional vs. Longitudinal Designs

15. 3-15 Copyright © 2010 Pearson Education, Inc. 3) 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 Avoid response bias ---++---++ +++--+++-- Note: A “+” indicates a relative advantage over the other design, whereas a “-” indicates a relative disadvantage. *Panels (in longitudinal designs) may not be representative as they may refuse to cooperate or drop out. Table 3.4

16. 3-16 Copyright © 2010 Pearson Education, Inc. 3) Cross-Sectional Data May Not Show Change Brand Purchased Time Period Period 1Period 2Survey Brand A200 200 Brand B300300 Brand C500 500 Total 1000 1000 Table 3.5

17. 3-17 Copyright © 2010 Pearson Education, Inc. 3) Longitudinal Data May Show Drastic 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

18. 3-18 Copyright © 2010 Pearson Education, Inc. 4) Causal Research Causal research: a type of conclusive research where the major objective is to obtain evidence regarding cause-and-effect (causal) relationships. Cause = independent variable(s) Effect = dependent variable(s) METHOD: Experiments

19. 3-19 Copyright © 2010 Pearson Education, Inc. 5) 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

20. 3-20 Copyright © 2010 Pearson Education, Inc. Errors in Marketing Research The total error is the difference 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 difference 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: Non-response/response error, Poor problem definition, Wrong research approach, Unbalanced scales, and so on…

21. 3-21 Copyright © 2010 Pearson Education, Inc. 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.

22. 3-22 Copyright © 2010 Pearson Education, Inc. 6) 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

23. 3-23 Copyright © 2010 Pearson Education, Inc. Thank you! Questions??