Chapter ThreeResearch Design

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Chapter Outline1) Overview2) Research Design: Definition3) Research Design: Classification4) Exploratory Research5) Descriptive ResearchCross-Sectional DesignLongitudinal DesignAdvantages and Disadvantages of Longitudinal and Cross-Sectional Designs6) Causal Research7) Relationships Among Exploratory, Descriptive, and Causal Research

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Chapter Outline8) Potential Sources of ErrorRandom Sampling ErrorNon-sampling ErrorNon-response ErrorResponse Error 9) Budgeting and Scheduling10) Marketing Research Proposal11) International Marketing Research

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Chapter Outline12) Ethics in Marketing Research13) Internet and Computer Applications15) Focus on Burke14) Summary15) Key Terms and Concepts

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Research Design: DefinitionA 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 DesignDefine 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)

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A Classification of Marketing Research Designs

Single Cross-Sectional DesignMultiple Cross-Sectional DesignFig. 3.1Research DesignConclusive Research DesignExploratory Research DesignDescriptive ResearchCausal ResearchCross-Sectional DesignLongitudinal Design

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Exploratory & Conclusive Research DifferencesObjective:

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.ExploratoryConclusiveTable 3.1

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A Comparison of Basic Research DesignsObjective:

Characteristics:

Methods:Discovery of ideas and insights

Flexible, versatile

Often the front end of total research design

Expert surveysPilot surveysSecondary dataQualitative researchDescribe market characteristics or functions

Marked by the prior formulation of specific hypotheses

Preplanned and structured design

Secondary dataSurveysPanelsObservation and other dataDetermine cause and effect relationships

Manipulation of one or more independent variables

Control of other mediating variables

ExperimentsExploratoryDescriptiveCausalTable 3.2

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Uses of Exploratory ResearchFormulate a problem or define a problem more preciselyIdentify alternative courses of actionDevelop hypothesesIsolate key variables and relationships for further examinationGain insights for developing an approach to the problemEstablish priorities for further research

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Methods of Exploratory ResearchSurvey 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).

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Use of Descriptive ResearchTo 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

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Methods of Descriptive ResearchSecondary 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)

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Cross-sectional DesignsInvolve 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.

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Consumption of Various Soft Drinksby Various Age Cohorts8-1920-2930-3940-4950+Age196019691979195052.945.233.923.218.162.660.746.640.828.8C173.276.067.758.650.0C281.075.871.467.851.9C3C8C7C6C5C4C1: cohort born prior to 1900C2: cohort born 1901-10C3: cohort born 1911-20C4: cohort born 1921-30C5: cohort born 1931-40C6: cohort born 1940-49C7: cohort born 1950-59C8: cohort born 1960-69Table 3.3Percentage consuming on a typical day

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Longitudinal DesignsA fixed sample (or samples) of population elements is measured repeatedly on the same variablesA longitudinal design differs from a cross-sectional design in that the sample or samples remain the same over time

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Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional DesignsEvaluation CriteriaCross-Sectional DesignLongitudinal DesignDetecting ChangeLarge amount of data collectionAccuracyRepresentative SamplingResponse bias

---++

+++--Note: A + indicates a relative advantage over the other design, whereas a - indicates a relative disadvantage.Table 3.4

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Cross-Sectional Data May Not Show ChangeBrand Purchased Time PeriodPeriod 1Period 2SurveySurveyBrand A200 200Brand B300 300Brand C500 500Total 1000 1000Table 3.5

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Longitudinal Data May ShowSubstantial ChangeBrand Purchased in Period 1Brand Purchased in Period 2Brand ABrand BBrand C TotalBrand ABrand BBrand CTotal100 25 75200 50100150300 50175275500 200 300 5001000Table 3.6

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Uses of Casual ResearchTo understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenonTo determine the nature of the relationship between the causal variables and the effect to be predictedMETHOD: Experiments

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Potential Sources of Error inResearch DesignsFig. 3.2

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Errors in Marketing ResearchThe 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.

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Errors in Marketing ResearchNon-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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Citicorp Banks on Exploratory, Descriptive,and Causal ResearchMarketing 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.

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Citicorp Banks on Exploratory, Descriptive,and Causal Research1) 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.

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Citicorp Banks on Exploratory, Descriptive,and Causal Research2) 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.

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Citicorp Banks on Exploratory, Descriptive,and Causal Research3) 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.

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Citicorp Banks on Exploratory, Descriptive,and Causal Research4) 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?

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Citicorp Banks on Exploratory, Descriptive,and Causal Research 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.

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Citicorp Banks on Exploratory, Descriptive,and Causal Research5) 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.

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Citicorp Banks on Exploratory, Descriptive,and Causal Research7) 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.

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Marketing Research ProposalExecutive SummaryBackgroundProblem Definition/Objectives of the ResearchApproach to the ProblemResearch DesignFieldwork/Data CollectionData AnalysisReportingCost and TimeAppendices

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The Greenfield of Online ResearchGreenfield 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.

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The Greenfield of Online ResearchInternet users wishing to take part in surveys and other projects begin by registering online at the companys 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 respondents 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 Greenfields Internet panel. New registrants automatically qualify for prizes that are awarded in monthly drawings.