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					Research Design
         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.



Ch 5                                  2
        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.



Ch 5                                  3
        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.



Ch 5                                     4
       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.
Ch 5                                    5
  Basic Research Objectives and
         Research Design




Ch 5                              6
   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
Ch 5
       projects use only one design.       7
       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.

Ch 5                                    8
       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.




Ch 5                                     9
       Exploratory Research


              •Many questions; many sources
              •Defining the problem; getting a “feel”
  • Uses
    – Gain Background Information
    – Define Terms
    – Clarify Problems and Hypothesis
      (refine research objectives)
    – Establish Research Priorities
Ch 5                                                    10
       Exploratory Research
 • A variety of methods are available to
   conduct exploratory research.
    – Secondary Data Analysis
    – Experience Surveys
    – Case Analysis
    – Focus Groups
    – Projective
      Techniques
Ch 5                                       11
       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 study’s
   findings to a larger population, if the
   study’s sample is representative.


Ch 5                                     12
        Research Design:
       Descriptive Research
 • Two basic classifications:
   – Cross-sectional
     studies
   – Longitudinal
     studies




Ch 5                            13
  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
Ch 5
           presented with a margin of error.14
       Classification of Descriptive
            Research Studies
 • Cross-sectional studies take
   “snapshots” of the population at a
   point in time.




Ch 5                                    15
       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.
Ch 5                                     16
      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
Ch 5                                                    17
       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”).
Ch 5                                  18
       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.

Ch 5                                    19
  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
Ch 5 studies track some variable of interest
                                           20
Ch 5   21
   Changes From Two Cross-
       Sectional Studies
• Pooch Plus dropped from 100 to 75
  families.
• Beggar’s 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
Ch 5
     back market share.                  22
Ch 5   23
       Longitudinal Data Analysis
 • Pooch Plus kept 50 families and lost
   50 families to Beggar’s Bits.
 • Pooch Plus gained 25 former
   Beggar’s Bits families.
 • Milk Bones gained 25 former
   Beggar’s Bits families.

 • Conclusion: Beggar’s Bits is the
   competition…Not Milk Bone!
Ch 5                                      24
          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.



Ch 5                                    25
            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.




Ch 5                                  26
       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.


Ch 5                                    27
       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.


Ch 5                                     28
       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.


Ch 5                                     29
       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.




Ch 5                                      30
       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
Ch 5                                 31
        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.



Ch 5                                   32
 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.




Ch 5                                        33
       Not “True” Experimental
               Design
 • After-Only Design:     X O1
 • One-Group,
   Before-After Design:   O1 X O2




Ch 5                             34
       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.


Ch 5                                   35
 A “True” Experimental Design
 • Before-After with Control Group:
   – Experimental group: O1 X O2
   – Control group:       O3 O4
   – Where E = (O2 – O1) – (O4 – O3)




Ch 5                                   36
       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.



Ch 5                                      37
       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.”


Ch 5                                  38
       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.


Ch 5                                       39
       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.




Ch 5                                     40
           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
Ch 5                                        41
       Types of Test Markets
 • Standard Test Market: one in which
   the firm tests the product and/or
   marketing mix variables through the
   company’s 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.
Ch 5                                      42
       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.




Ch 5                                   43
       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.


Ch 5                                   44
           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.


Ch 5                                 45
       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.




Ch 5                                  46
       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?


Ch 5                                   47
          Test Marketing
 • Pros:
   – Allows most accurate method of
     forecasting future sales
   – Allows firms the opportunity to
     pretest marketing mix variables




Ch 5                                   48
           Test Marketing
 • Cons:
   – Does not yield infallible results
   – Are expensive
   – Exposes the new product to
     competitors
   – Takes time to conduct


Ch 5                                     49

				
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