CHAPTER 3

 RESEARCH DESIGN
RESEARCH DESIGN: DEFINITION
 A research design is a framework or blueprint for conducting the
marketing research project. (Malhotra, 1999).

 It details the procedures necessary for obtaining the information

needed to structure or solve marketing research problems.
 Once you have defined the research problems or opportunities, you
need to develop a plan on how to solve these problems or capitalize on
these opportunities.

 Research design specifies the details – the nuts and bolts – of

implementing that approach.

 Research design the foundation for conducting the project.

  A Classification of Marketing Research Designs
RESEARCH DESIGN: CLASSIFICATION
RESEARCH
DESIGN

Exploratory Conclusive
Research Research
Design Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Sectional
Design Design
RESEARCH DESIGN: CLASSIFICATION
 Research designs can be classified as exploratory or conclusive. (figure
above).
 The differences between exploratory and conclusive research are
summarized in Table below.
 The primary objective of exploratory research is to provide insights
into and an understanding of, the problem confronting the researcher.
 Exploratory research is used in cases when you must define the
problem more precisely, identify relevant courses of action, or gain
additional insights before an approach can be developed.
 Conclusive research is typically more formal and structured than is
exploratory research. Also to assist the decision maker in determining,
evaluating, and selecting the best course of action to take in a given
situation.
 It is based on large, representative samples, and the data obtained are
subjected to quantitative analysis
DIFFERENCES BETWEEN EXPLORATORY AND CONCLUSIVE RESEARCH
 EXPLORATORY CONCLUSIVE
 Objective: To provide insights To test specific
 and understanding hypotheses and examine
 relationships.
 Characteristics: Information needed is Information needed is
 defined only loosely. clearly defined.
 Research process is Research process is
 flexible and unstructured. formal and structured.
 Sample is small andSample is large and
 non-representative.representative.
 Analysis of primary Data analysis is
 data is qualitative. quantitative.
 Findings/Results: Tentative (unsure) Conclusive.
 Outcome: Generally followed by Findings used as input
 further exploratory or into decision making.
 conclusive research.
EXPLORATORY RESEARCH

 The objective of exploratory is to explore or search through a problem

or situation to provide insights and understanding (table above).
Exploratory research could be used for any of the following purposes;

 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
 Exploratory research is flexible because formal research protocols and
EXPLORATORY
proceduresRESEARCH
are not employed.
 It rarely involves structured questionnaires, large samples, and sample
plans.
 Researchers are alert to new ideas and insights, once new ideas or
insight is discovered, they shift their exploration in that direction.
 Exploratory research can greatly benefit from use of the following
methods;
 Survey of experts
 Pilot surveys
 Analysis of secondary data
 Qualitative research
DESCRIPTIVE RESEARCH
 Descriptive Research – a type of conclusive research which has its
major objective the description of something – usually market
characteristics or functions.
 The major objectives – is to describe something – usually market
characteristics or functions.
 Descriptive research is conducted for the following reasons:
1. To describe the characteristics of relevant groups, such as consumers,
salespeople, organizations, or market areas. For example, we could
develop a profile of the “heavy users” (frequent shoppers) or
prestigious department stores such as Mark & Spencer etc.
2. To estimate the percentage of units in a specified population
exhibiting a certain behavior: for example, the percentage of heavy
users of prestigious department stores who also patronize discount
department stores
DESCRIPTIVE RESEARCH

3. To determine the perceptions of product characteristics. For example,

how do households perceive the various department stores in terms of
salient (outstanding) factors of the choice criteria?
4. To determine the degree to which marketing variables are associated. For
example, to what extent is shopping at department stores related to
eating out?
5. To make specific predictions. For example, what will be the retail sales of
Marks & Spencer (specific store) for fashion clothing (specific product
category) in the Dallas area (specific region)?
Descriptive research;
- Is characterized by the prior formulation of specific hypotheses. Thus,
the information needed is clearly defined.
- Is preplanned and structured and base on large representative samples.
- Requires a clear specification of the who, what, when, where, why, and
way (six Ws) of the research
- Is marked by a clear statement of the problem, specific hypotheses, and
detailed information needs.
DESCRIPTIVE RESEARCH

 Although the methods in table (refer text book pg 104) are typical, it
should be noted that the researcher is not limited to these methods.
Descriptive research using the methods as shown in table below can be
further classified into cross-sectional and longitudinal research.
 Cross-sectional designs
- A type of research design involving the collection of information from
any given sample of population elements only once. They may be single
cross-sectional or multiple cross-sectional.
- In single cross-sectional designs only one sample of respondents it
drawn from the target population, and information is obtained from
this sample only once. Also called sample survey research designs.
- In multiple cross-sectional designs, there two or more samples of
respondents, and information from each sample is obtained only once.
Information from different samples is obtained at different times.
Cont…
 Example,
imagine you are the manager of Parkson, the leading department store
in Kelantan. Due to the poor sales performance in the past three years,
you wanted to identify Parkson shoppers and their (the shoppers)
merchandise mix preferences. In doing so you could undertake a cross-
sectional study whereby you interview 600 shoppers within a period of
two weeks. Once you have keyed-in the results (using software SPSS),
you will cross-tabulate these results to find out the merchandise
preferences of each type of shoppers. Cross-tabulate refers to the
activity of comparing two or more variables at one point. For instance,
through cross-tabulating the “demographic variable” (income)with
“merchandise bought”, you will be able to identify the merchandise
preferences of each income group. This kind of data is meaningful to
companies that appeal too many segments of the market such as
department stores.
DESCRIPTIVE RESEARCH
 Longitudinal Designs
- In longitudinal designs, a fixed sample (or samples) of population
elements is measured repeatedly.
- A longitudinal design, the sample or samples remain the same over time
means that the same respondents are studied over time. Example, under
longitudinal study, select a sample of Parkson’s Preferred Card customers
and interviewed them every six months. The results from these interviews
will be compared to identify any major change in their shopping behavior.
Disadvantages;
- Data from longitudinal studies are able to provide a greater
understanding of a particular problem since they are being measured
repeatedly, but take a longer time to complete.
- A sample is smaller compared to cross-sectional studies, and large
amount of money is required because it is conducted over time.
- In getting the participation of past respondents, they might not be
willing to co-operate any longer.
- changes in times - fashion
CAUSAL RESEARCH
 Causal Research – a type of conclusive research in which the major
objective is to obtain evidence regarding cause-and-effect (causal)
relationships. Example, that a decrease in price will lead to increased
sales and market share does not hold in certain competitive
environments.
 Causal research is appropriate for the following purposes:
 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.
A COMPARISON OF BASIC RESEARCH DESIGNS
Exploratory Descriptive Causal
Objective: Discovery of ideas Describe market characteristic Determine cause
and insight s. or functions.
and effect
relationships.

Characteristics: Flexible, versatile. Marked by the prior Manipulation of

formulation of specific one or more
hypotheses. independent
variables.
Often the front end Preplanned and structured Control of other
of total research design. mediating variables
design.

Methods: Expert surveys Secondary data Experiments

Pilot surveys Surveys.
Secondary data Panels.
Qualitative research Observational and other data
RELATIVE ADVANTAGES AND DISADVANTAGES OF LONGITUDINAL AND CROSS-
SECTIONAL DESIGNS
Evaluation Criteria Cross-sectional Longitudinal
Design Design

Detecting change - +

Large amount of data collection - +

Accuracy - +

Representative sampling + -

Response bias + -
Cont….

 Advantages (longitudinal design)

 Longitudinal data enable researchers to examine changes in the

behavior of individual and to link behavioral changes to marketing
variables, such as changes in advertising, packaging, pricing, and
distribution. Because same units are measured repeatedly.
 Relatively large amounts of data can be collected- that panel members
usually compensated for their participation, so they are willing to
participate in lengthy and demanding interviews.
 A typical cross-sectional survey requires the respondent to recall past
purchases and behavior; these data can be inaccurate because of
memory lapses. Panel data, relies on a continuous recording of
purchase in a diary.
Cont….
 Disadvantages (longitudinal design)
 Main disadvantages of panels is that they may not be representative.
Non-representativeness may arise because of;
1. Refusal to cooperate.
2. Mortality. Move away or lose interest.
3. Payment. – cause certain people to be attracted.

 Response bias – new panel members are often biased in their initial
responses. Bias also results from boredom, fatigue (tiredness),and
incomplete diary entries.
RELATIONSHIPS AMONG EXPLORATORY, DESCRIPTIVE, AND CAUSAL
RESEARCH
 A given marketing research project may involve more than one type of
research design and thus serve several purposes. Which combination of
research designs to employ depends on the nature of the problem. We
offer the following general guidelines for choosing research designs:

1. When little is known about the problem situation, it is desirable to

begin with exploratory research. Exploratory research is appropriate
when the problem needs to be defined more precisely, alternative
courses of action identified, research questions or hypotheses
developed, and key variables isolated and classified as dependent or
independent.
2. Exploratory research is the initial step in the overall research design
framework. It should, in most instances, be followed by descriptive or
causal research. For example, hypotheses developed via exploratory
research should be statistically tested using descriptive or causal
research.
Cont…
3. It is not necessary to begin every research design with exploratory
research. It depends on the precision with which the problem has
been defined and the researcher’s degree of certainty about the
approach to the problem. A research design could well begin with
descriptive or causal research. To illustrate, a consumer satisfaction
survey conducted annually need not begin with nor include an
exploratory phase.

4. Although exploratory research is generally the initial step, it need not

be. Exploratory research may follow descriptive or causal research.
For example, descriptive or causal research results in findings that are
hard for managers to interpret. Exploratory research may provide
more insights to help understand these findings.
Marketing Research Proposal
1. Executive summary: the proposal should begin with a summary of the
major points from each of the other sections, presenting an overview of
the entire proposal.
2. Background: the background to the problem, including the
environmental context.
3. Problem definition/objectives of the research: normally, a statement
of the problem including the specific components, should be presented.
If this statement has not been developed, the objectives of the marketing
research project should be clearly specified.
4. Approach to the problem: at a minimum, a review of the relevant
academic and trade literature should be presented, along with some kind
of an analytical model. If research questions and hypotheses have been
identified, then these should be included in the proposal.
5. Research Design: the research design adopted, whether exploratory,
descriptive, or causal, should be specified. Information should be
provided on the following components: (1) kind of information to be
obtained, (2) method of administering the questionnaire (mail,
telephone, personal or interviews), (3) scaling techniques, (4) nature of
questionnaire, and (5) sampling plan and sample size.
Marketing Research Proposal
6. Fieldwork/Data Collection: the proposal should discuss how the
data will be collected and who will collect it. If the fieldwork is to be
subcontracted to another supplier, this should be state. Control
mechanisms to ensure the quality of data collected should be
described.
7. Data analysis: the kind of data analysis that will be conducted
(simple cross-tabulations, univariate analysis, multivariate analysis)
and how the results will be interpreted should be described.
8. Reporting: the proposal should specify whether intermediate
reposts will be presented and at what stages, what will be the form of
the final report, and whether a formal presentation of the results will
be made.
9. Cost and time: the cost of the project and a time schedule, broken
down by phases, should be presented
10. Appendices: any statistical or other information that is of interest
only to a few people should contained in appendices.