Research Design

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Research Design
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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.

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The Significance of Research Design

• Although every problem and research objective may
  be unique there are enough similarities that
  allow us to make some decisions in advance about
  the best plan to resolve the problem.

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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.

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Types of Research Design

• Three traditional categories
• Exploratory
• Descriptive
• Causal
• The choice of the most appropriate design depends
  largely on the objectives of the research and how
  much is known about the problem and research
  objectives.

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Basic Research Objectives and Research Design
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Types of Research Design A Caution

• Exploratory
• Descriptive
• Causal
• A Caution
• It should not be implied that research design is
  a step-by-step process in terms of the order in
  which design should be carried out. Many research
  projects use only one design.

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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.
• By unstructured, we mean there is no formal set
  of objectives, sample plan, or questionnaire.

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Exploratory Research

• It is usually conducted when the researcher does
  not know much about the problems.
• Exploratory research is usually conducted at the
  outset of research projects.

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Exploratory Research

• Uses
• Gain Background Information
• Define Terms
• Clarify Problems and Hypothesis (refine research
  objectives)
• Establish Research Priorities

• Many questions many sources
• Defining the problem getting a feel

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Exploratory Research

• A variety of methods are available to conduct
  exploratory research.
• Secondary Data Analysis
• Experience Surveys
• Case Analysis
• Focus Groups
• Projective Techniques

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Descriptive Research

• Descriptive research is undertaken to describe
  answers to questions of who, what, where, when,
  and how.
• Descriptive research is desirable when we wish to
  project a studys findings to a larger
  population, if the studys sample is
  representative.

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Research Design Descriptive Research

• Two basic classifications
• Cross-sectional
  studies
• Longitudinal studies

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Classification of Descriptive Research Studies

• Cross-sectional studies measure units from a
  sample of the population at only one point in
  time.
• Sample surveys are cross-sectional studies whose
  samples are drawn in such a way as to be
  representative of a specific population.
• These studies are usually presented with a margin
  of error.

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Classification of Descriptive Research Studies

• Cross-sectional studies take snapshots of the
  population at a point in time.

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Classification of Descriptive Research Studies

• Longitudinal studies repeatedly measure the same
  sample units of a population over time.
• Longitudinal studies often make use of a panel
  which represents sample units who have agreed to
  answer questions at periodic intervals.
• Many large research firms maintain panels of
  consumers.

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Descriptive Research

• Many questions one or few sources
• Formal sample and questionnaire

• Marketing Survey
• Questionnaire
• Sample method and size
• Data collection method
• Data analysis (quantitative)
• Snapshot versus Panel Design

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Marketing Research Panels

• Continuous panels ask panel members the same
  questions on each panel measurement.
• Discontinuous panels vary questions from one
  panel measurement to the next.
• They are sometimes referred to as omnibus
  (including or covering many things or classes).

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Marketing Research Panels Discontinuous Panels

• Discontinuous panels have the advantage of being
  able to access large groups of people who have
  made themselves available for research.
• Discontinuous panels represent sources of
  information that may be quickly accessed for a
  wide variety of purposes.

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Marketing Research Panels Continuous Panels

• Continuous panels are used quite differently from
  discontinuous panels in that one may use data
  from continuous panels to gain insights into
  changes in consumers purchases, attitudes, etc.
• For example, brand switching studies are used to
  illustrate how consumers change brands, and
  market-tracking studies track some variable of
  interest over time.

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Changes From Two Cross-Sectional Studies

• Pooch Plus dropped from 100 to 75 families.
• Beggars Bits remained the same at 200.
• Milk Bone increased from 200 to 225.
• Conclusion Pooch Plus is losing market share to
  Milk Bone. Target Milk Bones with a strategy to
  win back market share.

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Longitudinal Data Analysis

• Pooch Plus kept 50 families and lost 50 families
  to Beggars Bits.
• Pooch Plus gained 25 former Beggars Bits
  families.
• Milk Bones gained 25 former Beggars Bits
  families.
• Conclusion Beggars Bits is the competitionNot
  Milk Bone!

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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.

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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.

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Independent Variable

• Independent variables are those variables which
  the researcher has control over and wishes to
  manipulate.
• For example level of ad expenditure type of ad
  appeal price product features, etc.

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Dependent Variables

• Dependent variables are those variables that we
  have little or no direct control over, yet we
  have a strong interest in.
• Examples would be return on investment, net
  profits, market share, customer satisfaction.

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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.

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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.

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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

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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.

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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.

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Not True Experimental Design

• After-Only Design X O1
• One-Group,
• Before-After Design O1 X O2

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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.

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A True Experimental Design

• Before-After with Control Group
• Experimental group O1 X O2
• Control group O3 O4
• Where E (O2 O1) (O4 O3)

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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.

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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.

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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.

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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.

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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

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Types of Test Markets

• Standard Test Market one in which the firm tests
  the product and/or marketing mix variables
  through the companys 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.

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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.

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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.

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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.

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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.

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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?

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Test Marketing

• Pros
• Allows most accurate method of forecasting future
  sales
• Allows firms the opportunity to pretest marketing
  mix variables

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Test Marketing

• Cons
• Does not yield infallible results
• Are expensive
• Exposes the new product to competitors
• Takes time to conduct