Chapter3.ppt 1231KB Mar 01 2005 05:23:50 PM
Chapter III
Research Design
Chapter Outline
1) Overview
2) Research Design: Definition
3) Research Design: Classification
4) Exploratory Research
5) Descriptive Research
i. CrossSectional Design
ii. Longitudinal Design
iii. Advantages and Disadvantages of Longitudinal
and CrossSectional Designs
6) Causal Research
7) Relationships Among Exploratory, Descriptive, and
Causal Research
8) Potential Sources of Error
i. Random Sampling Error
ii. Nonsampling Error
a. Nonresponse Error
b. Response Error
9) Budgeting and Scheduling
10) Marketing Research Proposal
11) International Marketing Research
12) Ethics in Marketing Research
13) Internet and Computer Applications
15) Focus on Burke
14) Summary
15) Key terms and Concepts
16) Acronyms
Fig. 3.1
A Classification of Marketing
Research Designs
Research Design
Conclusive
Research Design
Exploratory
Research Design
Descriptive
Research
CrossSectional
Design
Single Cross
Sectional Design
Casual
Research
Longitudinal
Design
Multiple Cross
Sectional Design
Table 3.1
Objective:
Difference between Exploratory and
Conclusive Research
Exploratory
Conclusive
To provide insights and
understanding.
To test specific hypotheses
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. Sample
and unstructured. Sample is large and representative.
is small and non
Data analysis is quantitative.
representative. Analysis of
primary data is qualitative.
Findings
/Results:
Tentative.
Generally followed by
Outcome: further exploratory or
conclusive research.
Conclusive.
Findings used as input into
decision making.
Table 3.2
A Comparison of Basic Research Designs
Exploratory
Objective:
Discovery of
ideas and
insights
Characteristics: Flexible,
versatile
Methods:
Descriptive
Describe market
characteristics or
functions
Causal
Determine cause
and effect
relationships
Marked by the prior Manipulation of
formulation of
one or more
specific
independent
hypotheses
variables
Often the front
end of total
research design
Preplanned and
structured design
Control of other
mediating
variables
Expert surveys
Pilot surveys
Secondary data
Qualitative
research
Secondary data
Surveys
Panels
Observation and
other data
Experiments
Table 3.3
Consumption of Soft Drinks by
Various Age Cohorts
Age
1950
1960
1969
1979
819
2029
3039
4049
50+
52.9
45.2
33.9
23.2
18.1
62.6
60.7
46.6
40.8
28.8
C1
73.2
76.0
67.7
58.6
50.0
C2
81.0
75.8
71.4
67.8
51.9
C3
C1: cohort born prior to 1900
C2: cohort born 190110
C3: cohort born 191120
C4: cohort born 192130
C8
C7
C6
C5
C4
C5: cohort born 193140
C6: cohort born 194049
C7: cohort born 195059
C8: cohort born 196069
Table 3.4
Relative Advantages and Disadvantages of
Longitudinal and CrossSectional Designs
Evaluation
Criteria
CrossSectional Longitudinal
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.
Table 3.5
CrossSectional Data May
Not Show Change
Brand Purchased
Time Period
Period 1
Survey
Brand A
Brand B
Brand C
Total
200
300
500
1000
Period 2
Survey
200
300
500
1000
Table 3.6
Brand
Purchased
in Period 1
Brand A
Brand B
Brand C
Total
Longitudinal Data May
Show Substantial Change
Brand Purchased in Period 2
Brand A
Brand B
Brand C
100
25
75
200
50
100
150
300
50
175
275
500
Total
200
300
500
1000
RIP 3.1
NASCAR Tries to Shed Redneck Image
The National Association of Stock Car Auto Racing
(NASCAR) in the past has appealed to Southerners
with lower incomes that work in laborertype jobs.
NASCAR, in an attempt to increase its audience,
chose to makeover its stereotyped image and used
exploratory and descriptive research to generate
ideas for reaching a more affluent market.
NASCAR conducted exploratory
research to identify ways to penetrate
the nonrace market, reach younger
fans, and build its brand image
across the nation.
Extensive focus groups revealed that:
(1) NASCAR had a rural sports image,
(2) that this image was not necessarily
negative, and
(3) companies that supported sports were
viewed positively.
RIP 3.1 Contd.
Survey research showed that
29% of fans had income over
$50,000
27% worked as professionals or
managers.
73% had a positive rural sports
image of NASCAR ,
71% of fans purchased products of
companies that support the sport
NASCAR, of course, sought to increase these
percentages and developed marketing plans
that would build on the image of NASCAR as a
rural sport by emphasizing that most of America
is suburbs and small towns.
NASCAR moved to
reach all of America,
not just the traditional
Southern market.
Fig. 3.2
Potential Sources of Error in
Research Designs
Total Error
Nonsampling
Error
Random Sampling
Error
Response
Error
Researcher
Error
•Surrogate Information Error
•Measurement Error
•Population Definition Error
•Sampling Frame Error
•Data Analysis Error
Interviewer
Errors
•Respondent Selection Error
•Questioning Error
•Recording Error
•Cheating Error
Nonresponse
Error
Respondent
Error
•Inability Error
•Unwillingness Error
RIP 3.2
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.
RIP 3.2 Contd.
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.
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.
RIP 3.2 Contd.
3) The next stage of research was brainstorming. This
involved the formation of many different financial
packages aimed for the target market. In this case, a
total of 10 ideas were generated.
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 it?
• Does the idea fit into the overall strategy of
Citicorp?
RIP 3.2 Contd.
• 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.
5) A creative workplan 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.
RIP 3.2 Contd.
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.
RIP 3.3
The Green Field of Online Research
Greenfield Online Research Center, Inc.
(http://www.greenfieldonline.com), 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 built up a “panel” of close to
200,000 Internet users, from which it draws
survey samples. The 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.
RIP 3.3 Contd.
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
“signup survey” that asks for email 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 wellsuited 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.
Research Design
Chapter Outline
1) Overview
2) Research Design: Definition
3) Research Design: Classification
4) Exploratory Research
5) Descriptive Research
i. CrossSectional Design
ii. Longitudinal Design
iii. Advantages and Disadvantages of Longitudinal
and CrossSectional Designs
6) Causal Research
7) Relationships Among Exploratory, Descriptive, and
Causal Research
8) Potential Sources of Error
i. Random Sampling Error
ii. Nonsampling Error
a. Nonresponse Error
b. Response Error
9) Budgeting and Scheduling
10) Marketing Research Proposal
11) International Marketing Research
12) Ethics in Marketing Research
13) Internet and Computer Applications
15) Focus on Burke
14) Summary
15) Key terms and Concepts
16) Acronyms
Fig. 3.1
A Classification of Marketing
Research Designs
Research Design
Conclusive
Research Design
Exploratory
Research Design
Descriptive
Research
CrossSectional
Design
Single Cross
Sectional Design
Casual
Research
Longitudinal
Design
Multiple Cross
Sectional Design
Table 3.1
Objective:
Difference between Exploratory and
Conclusive Research
Exploratory
Conclusive
To provide insights and
understanding.
To test specific hypotheses
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. Sample
and unstructured. Sample is large and representative.
is small and non
Data analysis is quantitative.
representative. Analysis of
primary data is qualitative.
Findings
/Results:
Tentative.
Generally followed by
Outcome: further exploratory or
conclusive research.
Conclusive.
Findings used as input into
decision making.
Table 3.2
A Comparison of Basic Research Designs
Exploratory
Objective:
Discovery of
ideas and
insights
Characteristics: Flexible,
versatile
Methods:
Descriptive
Describe market
characteristics or
functions
Causal
Determine cause
and effect
relationships
Marked by the prior Manipulation of
formulation of
one or more
specific
independent
hypotheses
variables
Often the front
end of total
research design
Preplanned and
structured design
Control of other
mediating
variables
Expert surveys
Pilot surveys
Secondary data
Qualitative
research
Secondary data
Surveys
Panels
Observation and
other data
Experiments
Table 3.3
Consumption of Soft Drinks by
Various Age Cohorts
Age
1950
1960
1969
1979
819
2029
3039
4049
50+
52.9
45.2
33.9
23.2
18.1
62.6
60.7
46.6
40.8
28.8
C1
73.2
76.0
67.7
58.6
50.0
C2
81.0
75.8
71.4
67.8
51.9
C3
C1: cohort born prior to 1900
C2: cohort born 190110
C3: cohort born 191120
C4: cohort born 192130
C8
C7
C6
C5
C4
C5: cohort born 193140
C6: cohort born 194049
C7: cohort born 195059
C8: cohort born 196069
Table 3.4
Relative Advantages and Disadvantages of
Longitudinal and CrossSectional Designs
Evaluation
Criteria
CrossSectional Longitudinal
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.
Table 3.5
CrossSectional Data May
Not Show Change
Brand Purchased
Time Period
Period 1
Survey
Brand A
Brand B
Brand C
Total
200
300
500
1000
Period 2
Survey
200
300
500
1000
Table 3.6
Brand
Purchased
in Period 1
Brand A
Brand B
Brand C
Total
Longitudinal Data May
Show Substantial Change
Brand Purchased in Period 2
Brand A
Brand B
Brand C
100
25
75
200
50
100
150
300
50
175
275
500
Total
200
300
500
1000
RIP 3.1
NASCAR Tries to Shed Redneck Image
The National Association of Stock Car Auto Racing
(NASCAR) in the past has appealed to Southerners
with lower incomes that work in laborertype jobs.
NASCAR, in an attempt to increase its audience,
chose to makeover its stereotyped image and used
exploratory and descriptive research to generate
ideas for reaching a more affluent market.
NASCAR conducted exploratory
research to identify ways to penetrate
the nonrace market, reach younger
fans, and build its brand image
across the nation.
Extensive focus groups revealed that:
(1) NASCAR had a rural sports image,
(2) that this image was not necessarily
negative, and
(3) companies that supported sports were
viewed positively.
RIP 3.1 Contd.
Survey research showed that
29% of fans had income over
$50,000
27% worked as professionals or
managers.
73% had a positive rural sports
image of NASCAR ,
71% of fans purchased products of
companies that support the sport
NASCAR, of course, sought to increase these
percentages and developed marketing plans
that would build on the image of NASCAR as a
rural sport by emphasizing that most of America
is suburbs and small towns.
NASCAR moved to
reach all of America,
not just the traditional
Southern market.
Fig. 3.2
Potential Sources of Error in
Research Designs
Total Error
Nonsampling
Error
Random Sampling
Error
Response
Error
Researcher
Error
•Surrogate Information Error
•Measurement Error
•Population Definition Error
•Sampling Frame Error
•Data Analysis Error
Interviewer
Errors
•Respondent Selection Error
•Questioning Error
•Recording Error
•Cheating Error
Nonresponse
Error
Respondent
Error
•Inability Error
•Unwillingness Error
RIP 3.2
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.
RIP 3.2 Contd.
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.
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.
RIP 3.2 Contd.
3) The next stage of research was brainstorming. This
involved the formation of many different financial
packages aimed for the target market. In this case, a
total of 10 ideas were generated.
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 it?
• Does the idea fit into the overall strategy of
Citicorp?
RIP 3.2 Contd.
• 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.
5) A creative workplan 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.
RIP 3.2 Contd.
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.
RIP 3.3
The Green Field of Online Research
Greenfield Online Research Center, Inc.
(http://www.greenfieldonline.com), 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 built up a “panel” of close to
200,000 Internet users, from which it draws
survey samples. The 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.
RIP 3.3 Contd.
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
“signup survey” that asks for email 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 wellsuited 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.