Research Design_1_

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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.

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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

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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
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       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
 • 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

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       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
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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
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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 study’s
   findings to a larger population, if the
   study’s sample is representative.

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        Research Design:
       Descriptive Research
 • Two basic classifications:
   – Cross-sectional
   – Longitudinal

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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
         • These studies are usually
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           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.

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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
    – 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
 • Discontinuous panels represent
   sources of information that may be
   quickly accessed for a wide variety of

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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
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   Changes From Two Cross-
       Sectional Studies
• Pooch Plus dropped from 100 to 75
• Beggar’s Bits remained the same at
• 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
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     back market share.                  22
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       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!
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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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 • 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

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       Independent Variable
 • Independent variables are those
   variables which the researcher has
   control over and wishes to
    – 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

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       Symbols of Experimental
 • 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

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

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       Control of Extraneous
 • A control group is a group whose
   subjects have not been exposed to
   the change in the independent
 • 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
   company’s normal distribution
 • 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

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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
 • Representativeness: Do demographics
   match the total market?
 • Degree of isolation: Phoenix and Tulsa
   are isolated markets; Los Angeles is

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       Criteria for Selecting Test
 • 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

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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
   – Takes time to conduct

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