Research Design in Market Reasearch

8/4/2019 Research Design in Market Reasearch

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Business Research Methods

Research Design


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Definition

A research design is a blueprint for conducting researchproject

It specifies details of how the project should beconducted

Although a broad approach to the problem has alreadybeen designed ,research design specifies details (nuts &bolts) of implementation of that approach

A good research design ensures that the project isconducted effectively and efficiently

It involves six components or tasks


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Six Components of a research design

Design the exploratory, descriptive and/orcausal phases of the research design

Define the information needed

Specify the measurement and scalingprocedure

Construct and pre test a questionnaire or anappropriate form for data collection

Specify the sampling process & sample size

Develop a plan of data analysis


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Classification of research design

The research designs may be broadly classified

as Exploratory & Conclusive

The primary purpose of exploratory research is

to provide insights into the problem

Conclusive research is conducted to test specific

hypotheses and test specific relationships

The findings from conclusive research are used

as inputs in managerial decision making


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Types of conclusive research

Conclusive research may either bedescriptive or causal


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Descriptive research

Cross sectional designs involves collectionof information from a sample of population

elements at a single point in time

In longitudinal design repeated

measurements are taken on a fixed sample

over a period of time


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Causal Design

Causal research is designed for the primary

purpose of identifying cause and effect

relationships

Studying effect of advertising on sales

Impact of 4 Ps on Sales or on Brand Image

or on Brand awareness


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Difference Between Exploratory and Conclusive Research

Objective

Exploratory: To provide insights & understanding

Conclusive: To test specific hypothesis & test relationships

Characteristics

Exploratory: Information needed is defined only loosely

Research process is flexible & unstructured

Sample is small & non representative

Analysis of primary data is qualitative Conclusive :Information needed is clearly defined

Research process is formal & structured

Sample is large & representative

Data analysis is quantitative

Findings/Results Exploratory : Tentative

Conclusive : Conclusive

Outcome

Exploratory : Generally followed by further exploratory or conclusive

research Conclusive : Findings used as inputs into decision making


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Exploratory Research Descriptive Research Causal Research

(Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)

OBJECTIVESDiscover ideas and insights Describe characteristics Determine cause and effect

of the sample units relationships

CHARACTERISTICS

Flexible Marked by prior formulation of Manipulation of one or more

Versatile specific hypothesis independent variables

Often front end of total Preplanned and structured design Control of mediating variablesresearch design

METHODS

Expert Surveys Secondary data ( Analyzed Experiments

Pilot Surveys quantitatively)

Secondary data ( Analyzed Surveys

qualitatively) PanelsQualitative research Observational and other data

Comparison of basic research designs


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Exploratory Research Descriptive Research Causal Research

(Unaware of Problem) (Aware of Problem) (Problem Clearly Defined)

Our sales are declining and What kind of people are buying Will buyers purchase more of

we dont know why. our product? Who buys our our products in a new package?

competitors product?Would people be interested Which of two advertising

in our new product idea? What features do buyers prefer campaigns is more effective?

in our product?

Degree of Problem Definition


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Examples of descriptive research

Market studies-

Which describe-size of the market ,buying power

of consumers, availability of distributors

&consumer profiles

Market share studies-

which determine proportion of total sales received

by a company & its competitors

Sales analysis studies-

which describe sales by geographic regions,

product line, type & size of account


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Image studies-

Which determine consumer perception of the firm & its

products

Product usage studies-

which describe consumption patterns

Distribution studies- which determine traffic flow patterns and number & location

of distributors

Pricing studies-

which describe the range & frequency of price changes &probable consumer response to proposed price changes

Advertising studies-

which describe media consumption habits, audience profile for

specific TV programmes and magazines


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Causal relationships

Three types of possible relationships

Symmetrical- Two variables fluctuate together-

Changes in either variable are not due to changes in

other but due to another cause variable-

Number of cell phones & consumption of water (

both related to population)

Attendance & sales of cold drinks (Rainfall)

Low attendance of youth in martial art clubs and

active participation in discotheques & parties is a

result of lifestyle preference


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Reciprocal-

Two variables mutually influence eachother-

R&D expenditure & Annual profits

Manpower & deposits Reading an ad. leads a person to buy a

productAfter usage it sensitises the person

to notice & read successive ads


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Asymmetrical- Changes in one variable are responsible for

changes in another variable-

Increase in price may lead to fall in sales Rainfall & growth in crops

Height & weight

Income & expenditure


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Examples of Exploratory research

Department Store Patronage Project

-Review of academic & trade literature to identifyrelevant demographic & psychographic factorsthat influence consumer patronage

-Interviews with retailing experts to determine trends

:new types of outlets ,shifts in consumer patronagepatterns (Internet shopping)

-Comparative analysis of 5 best & 5 worst stores ofthe same chain to get some idea of factors thatinfluence store performance

-Focus group to determine factors consideredimportant by consumers in store selection


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More Example of Descriptive Research

Department Store Patronage Project

Who-

Who should be considered a patron of a

particular department store

-Anyone who enters the store

-Anyone who purchases from the store

-Anyone who purchase at least once amonth

-Person in the HH responsible for shopping


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What-

What information should be obtained from therespondents

Frequency with which different stores are

patronised for specific product categories

Evaluation of various stores in terms of salient

choice criteria

Information pertaining to specific hypotheses to betested

Psychographics & lifestyles, media consumption

habits, Demographics


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When-

When should the information be obtainedfrom the respondents

-Before shopping

-While shopping - Immediately after shopping

-Some time after shopping to allow time for

evaluating their shopping experience


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Where-

Where should the respondents be contactedto obtain required information

-In the store

-Outside the store but in the mall -In the parking lot

-At home


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Why-

Why are we obtaining information fromrespondents ? Why is the marketing

research project being conducted

-improve the image of sponsoring store

-Improve patronage and market share

-Change the product mix

-Develop a suitable promotional campaign

-Decide on the location of a new store


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Way-

In what way are we going to obtain

information from the respondents

-Observation of respondents behaviour

-Personal interviews

-Telephone interviews

-Mail interviews -Electronic (Email or internet) interviews


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Examples of causal Studies

Test Marketing-

Application of controlled experiment done in

limited but carefully selected test markets-

marketing mix variables (independent variables)

are varied and sales (dependent variable) aremonitored so that an appropriate marketing

strategy can be determined


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Choosing a research design

Various factors help in selection of the research

design & its various aspects These are listedbelow

-Degree of formality desired :

Informal or Formal depending on immediateobjectives:

Exploratory studies are conducted for developingguidelines & hypothesis for future research &are

informal in nature with loose structure :Conclusive studies are initiated with proper

hypothesis & are formal in nature with a proper

structure


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Purpose of the study:

If the study is being conducted to find out

what,when where,who or how much then a

descriptive study is best suited:

If study aims at finding out why a causal study is

suitable:

How many employees are leaving ,when they

are leaving & such other issues are covered by

descriptive studies:

For finding why they are leaving a causal study

is suitable.


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Method of data collection :

Selection of method for data collection can be done based

on the study to be conducted

:If research has to be done on traffic flow at a particular

junction observation method is the best:

If consumer perceptions about a product are to beestimated then questionnaire method is appropriate

Control of variables:

If certain variables need to be controlled to find out cause

& effect relationship Experiments are conducted by

manipulating them.

Ti Di i


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Time Dimension:

Studies could be either cross sectional or longitudinal

or both:

Cross sectional studies are conducted once while

longitudinal studies are repeated over a period of tim

Scope of the study:

Scope of the study could be limited or wide

depending on the problem at hand:

Scope of exploratory study could be limited Scope of conclusive study could be wide involving

selection of statistical sample to represent the entire

population


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Research Environment:

Field conditions or laboratory conditions :under

field conditions research is carried out as it iswhile in laboratory conditions real life situationsare enacted and an artificial environment iscreated for research.

Subjects perception: Effectiveness of a research study varies according

to perceptions of subjects under study: Ifrespondents know that research is being carried

or they are being observed they may responddifferently. One has to be watchful about suchchanges to ensure effectiveness

Research Design in Market Reasearch

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