Chapter Three

Research Design
 3-2

Chapter Outline
1) Overview
2) Research Design: Definition
3) Research Design: Classification
4) Exploratory Research
5) Descriptive Research
i. Cross-Sectional Design
ii. Longitudinal Design
iii. Advantages and Disadvantages of Longitudinal
and Cross-Sectional Designs
6) Causal Research
7) Relationships Among Exploratory, Descriptive,
and Causal Research
 3-3

Chapter Outline
8) Potential Sources of Error
i.
Random Sampling Error
ii. Non-sampling Error
a. Non-response Error
b. Response Error
9) Budgeting and Scheduling
10) Marketing Research Proposal
11) International Marketing Research
 3-4

Chapter Outline
12) Ethics in Marketing Research
13) Internet and Computer Applications
15) Focus on Burke
14) Summary
15) Key Terms and Concepts
 3-5

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.
 3-6

Components of a Research Design

 Define 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)
 3-7

A Classification of Marketing Research Designs

Fig. 3.1

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
 3-8

Exploratory & Conclusive Research Differences

Table 3.1

Exploratory Conclusive
Objective: To provide insights To test specific hypotheses
and understanding. and examine relationships.

Character- Information needed is Information needed is clearly

istics: defined only loosely. defined. Research process is
Research process is flexible formal and structured.
and unstructured. Sample Sample is large and
is small and non- representative.
representative. Analysis of Data analysis is quantitative.
primary data is qualitative.

Findings Conclusive.
/ Tentative.
Results:
Outcome: Findings used as input into
Generally followed by decision making.
further exploratory or
 3-9

A Comparison of Basic Research Designs

Table 3.2

Exploratory Descriptive Causal

Objective: Discovery of Describe market Determine
ideas and characteristics or cause and effect
insights functions relationships

Characteristics: Marked by the prior Manipulation

Flexible, of formulation of one or more
versatile specific hypotheses independent
variables
Preplanned and
structured design Control of other
Often the mediating
front end of variables
total Secondary data
research Surveys Experiments
design Panels
Methods: Observation and
E other data
xpert surveys
 3-10

Uses of Exploratory Research

 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
 3-11

Methods of Exploratory Research

 Survey 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).
 3-12

Use of Descriptive Research

 To 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
 3-13

Methods of Descriptive Research

 Secondary 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)
 3-14

Cross-sectional Designs
 Involve 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.
 3-15
Consumption of Various Soft Drinks
by Various Age Cohorts
Table 3.3

Percentage consuming on a typical day

Age 1950 1960 1969 1979
8-19 52.9 62.6 73.2 81.0
20-29 45.2 60.7 76.0 75.8 C8
30-39 33.9 46.6 67.7 71.4 C7
40-49 23.2 40.8 58.6 67.8 C6
50+ 18.1 28.8 50.0 51.9 C5
C1 C2 C3 C4

C1: cohort born prior to 1900 C5: cohort born 1931-40

C2: cohort born 1901-10 C6: cohort born 1940-49
C3: cohort born 1911-20 C7: cohort born 1950-59
C4: cohort born 1921-30 C8: cohort born 1960-69
 3-16

Longitudinal Designs
 A fixed sample (or samples) of population
elements is measured repeatedly on the
same variables
 A longitudinal design differs from a cross-
sectional design in that the sample or
samples remain the same over time
 3-17
Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Table 3.4

Evaluation Cross-Sectional Longitudinal

Criteria Design Design

Detecting Change - +
Large amount of data collection - +
Accuracy - +
Representative Sampling + -
Response bias + -

Note: A “+” indicates a relative advantage over the other

design, whereas a “-” indicates a relative disadvantage.
 Cross-Sectional Data May Not Show
3-18

Change
Table 3.5

rand Purchased Time Period

Perio Period 2
d1 Survey
Brand A Survey
200 200
Brand B 300 300
Brand C 500 500
Total 1000 1000
 3-19
Longitudinal Data May Show
Substantial Change
Table 3.6

Brand
Purchased Brand Purchased in Period 2
in Period 1 Total
Brand A Brand B Brand C
Brand A 100 50 50 200
Brand B 25 100 175 300
Brand C 75 150 275 500
Total 200 300 500 1000
 3-20

Uses of Casual Research

 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
 METHOD: Experiments
 3-21
Potential Sources of Error in
Research Designs
Fig. 3.2
Total Error

Random Non-sampling
Sampling Error Error

Non-response
Response
Error
Error

Researcher Interviewer Respondent

Error Error Error

Surrogate Information Error Respondent Selection Error Inability Error

Measurement Error Questioning Error Unwillingness Error
Population Definition Error Recording Error
Sampling Frame Error Cheating Error
Data Analysis Error
 3-22

Errors in Marketing Research

 The 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.
 3-23

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.
 3-24
Citicorp Banks on Exploratory, Descriptive,
and Causal Research

Marketing 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.
 3-25
Citicorp Banks on Exploratory, Descriptive,
and Causal Research

1) 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.
 3-26
Citicorp Banks on Exploratory, Descriptive,
and Causal Research

2) 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.
 3-27
Citicorp Banks on Exploratory, Descriptive,
and Causal Research

3) 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.
 3-28
Citicorp Banks on Exploratory, Descriptive,
and Causal Research

4) 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?
 3-29
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.
 3-30
Citicorp Banks on Exploratory, Descriptive,
and Causal Research

5)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.
 3-31
Citicorp Banks on Exploratory, Descriptive,
and Causal Research

7) 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.
 3-32

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
 3-33

The Greenfield of Online Research

Greenfield Online Center, Inc.

(http://www.greenfieldonline.com),
Research 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 up a “panel” of close to
Internet
built users, from which it draws survey samples. The
200,000
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.
 3-34

The Greenfield of Online Research

Internet users wishing to take part in surveys and other projects

begin by registering online at the company’s 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 respondent’s 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 Greenfield’s Internet panel. New
registrants automatically qualify for prizes that are awarded
in monthly
drawings.