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Research Methodology

Nature and Scope of Marketing Research

Submitted to:Prof.J.K.Sharma Abhishek Singh MBA (M&S) A0102211081 Batch 2013

Table of Content

CONTENTS Chapter-1: Research methodology 1.1. Principles of Good Research 1.2. Type of Research 1.3. Ethics of Business Research 1.4. The Research Process: An Overview Chapter-2: Case Study: Donatos : Finding the New Pizza 2.1 Solutions

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Learning Objectives
Define marketing research, understand the philosophy of science and understand how marketing research relates to marketing decision-making and planning; Learn how business research methods can be used as a decision making tool by the managers; To learn different type of research studies used in business; The role of ethical code of conduct in professional associations

What is Research Methodology?


The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management. Some important factors in research methodology include validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of your data. Formulating of research questions along with sampling weather probable or non probable is followed by measurement that includes surveys and scaling. This is followed by research design, which may be either experimental or quasi-experimental. The last two stages are data analysis and finally writing the research paper, which is organised carefully into graphs and tables so that only important relevant data is shown.

Information and Competitive advantage


Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled personnel human resources. New technologies such as robotics and information technology can provide competitive advantage, whether as a part of the product itself, as an advantage to the making of the product, or as a competitive aid in the business process.

Competitive Strategy Advantages

Cost Leadership Strategy


The goal of Cost Leadership Strategy is to offer products or services at the lowest cost in the industry. The challenge of this strategy is to earn a suitable profit for the company, rather than operating at a loss and draining profitability from all market players. Companies such as Walmart succeed with this strategy by featuring low prices on key items on which customers are price-aware, while selling other merchandise at less aggressive discounts. Differentiation Strategy The goal of Differentiation Strategy is to provide products that stand out from competitive offerings. An example is Southwest Airlines, which promotes its no-fee baggage handling as unique from other airlines. Innovation Strategy The goal of Innovation Strategy is to leapfrog other market players via the introduction of completely new or notably better products or services. This strategy is typical of technology start-up companies, who often intend to "disrupt" the existing marketplace, obsolescing the current market entries with a breakthrough product offering. It is harder for more established companies to pursue this strategy, once their product offering has achieved market acceptance. Apple has been a notable example of this strategy, for example, with its introduction of iPod personal music players, and iPad tablet computers.

Operational Effectiveness Strategy The goal of Operational Effectiveness as a strategy is to perform internal business activities better than competitors, making the company easier or more pleasurable to do business with than other market choices. State Farm Insurance pursues this strategy by promoting their agents as "good neighbors" who actively help customers. Technology-based competitive Strategy (Project Socrates) A team of experts led by Michael Sekora was brought together to 1) determine why US industries were losing their ability to compete in the world marketplace and 2) develop a solution to restore US industry's ability to compete. As a result, Project Socrates was initiated. The Socrates team launched one of the most in-depth research undertakings ever conducted in the US intelligence community, producing ten key findings that became the basis for the "Socrates technology-based competitive strategy" system, and support tools for developing and executing competitive strategies. The Research Process Defining the Problem or Need- The starting phase is always identifying the reason or problem for which research is to be conducted. This includes collecting of relevant initial information and how this information will affect decision making process. It also includes defining problems after discussing with decision makers of the organization. Once the problem is defined precisely and the need of research is discussed, the further process could be conducted in an efficient manner. Determining who will do the research- Once the initial stage of defining the problem and the need of research is done, it is important to determine who will do the research and what will be the approaches to resolve these problems. This involves creating a problem solving framework and analytical models after discussing it organization experts. In this sample case studies are created according to the defined framework by enforcing the relevant information and secondary data. Picking out the appropriate methodology- A specific methodology is entailed by the research professional after identifying the specific needs and exploring the case studies. It may include a combination of specific approaches like telephone survey, web or email survey, one-to-one interviews, secondary research etc. This methodology acts as a blueprint of research process and following basic steps:

Methods for collecting and preparing quantitative information. Determining the need of this information. Scaling and measuring procedures. Designing sample Questionnaire. Formulating case studies and sampling process. Planning information analysis.

Data Collection Process- This process includes field work and desk work for collecting all relevant data and information. Field work includes interviewing the personals by interacting them face to face by visiting them in home or offices or arranging group meetings at any preferred place. Desk work includes contacting personals over telephone or via series of emails and web meetings. This could take comparatively more time as compared to the field work. Involving experienced and trained executive for this helps in reducing data collection errors. 5

Data Preparation, tabulation and analysis of results- After the data collecting stage the collected data is edited, corrected if required and validated. This process is the most important process in the research as the results are generated on the basis of data preparation. So it is required for an organization to verify the authenticity of the collected data and edit or correct it if needed. The final data is then segmented according to the business standards and inserted into the CRM database in a more tabulated form so that search or combination could be made easily. Presentation and report generation- The entire process is properly documented with respect to organizational standards so that it can be referred in future for decision making process or to change or modify any specific process or module. This document contains overall architecture of the project depicting all the processes with the help of tables, graphs and figures to provoke impact and clarity. Market Research undeniably plays a vital role in exploring the business. The above process if conducted in an efficient manner could help predicting and correlating customer needs and then modeling or modifying the business strategies accordingly.

What is Good Research?

Principles of Good Research All research is different but the following factors are common to all good pieces of research involving social care service users, their families and carers and staff working in this area.

There is a clear statement of research aims, which defines the research question.
There is an information sheet for participants, which sets out clearly what the research is about, what it will involve and consent is obtained in writing on a consent form prior to research beginning.

The methodology is appropriate to the research question. So, if the research is into peoples perceptions, a more qualitative, unstructured interview may be appropriate. If the research aims to identify the scale of a problem or need, a more quantitative, randomised, statistical sample survey may be more appropriate. Good research can often use a combination of methodologies, which complement one another. The research should be carried out in an unbiased fashion. As far as possible the researcher should not influence the results of the research in any way. If this is likely, it needs to be addressed explicitly and systematically. From the beginning, the research should have appropriate and sufficient resources in terms of people, time, transport, money etc. allocated to it. The people conducting the research should be trained in research and research methods and this training should provide: Knowledge around appropriate information gathering techniques, An understanding of research issues, An understanding of the research area,

An understanding of the issues around dealing with vulnerable social care clients and housing clients, especially regarding risk, privacy and sensitivity and the possible need for support.

Those involved in designing, conducting, analysing and supervising the research should have a full understanding of the subject area.

In some instances, it helps if the researcher has experience of working in the area. However, this can also be a negative factor, as sometimes research benefits from the fresh eyes and ears of an outsider, which may lead to less bias. If applicable, the information generated from the research will inform the policy-making process. All research should be ethical and not harmful in any way to the participants.

Type of Research Qualitative and Quantitative Research Primary research is basically divided into these two categories. In essence, qualitative research addresses emotional issues, while quantitative is based more on reason or logic. Qualitative research methods strive to understand how people feel or to tap their creative juices. Quantitative techniques are applied to generate meaningful metrics that clearly define the magnitude of a response. For example, qualitative research would uncover how people feel about an issue, whereas quantitative research would measure how strongly they feel about it. When planning a study or defining its objectives, the consultant must first determine which approach is best suited qualitative or quantitative. Sometimes only one will suffice, and other times, both are needed. Once determined, the most appropriate methodology needs to be chosen. The most commonly used methods are summarized below. Qualitative Methods Focus groups (ideal size 4-6 people) Mini groups (fewer people or shorter duration) One-on-one in-depth personal interviews Paired in-depth interviews Advisory panels Quantitative Methods Telephone interviews Self administered mail surveys Online sources via email or websites Electronic surveys compliled on diskette Real time moment-to-moment (primarily for media research)

The Design of Business Research Before examining types of research designs it is important to be clear about the role and purpose of research design. We need to understand what research design is and what it is not. We need to know where design its into the whole research process from framing a question to finally analysing and reporting data. This is the purpose of this chapter. Description and explanation Social researchers ask two fundamental types of research questions: 1 What is going on (descriptive research)? 2 Why is it going on (explanatory research)? Descriptive research Although some people dismiss descriptive research as `mere description', good description is fundamental to the research enterprise and it has added immeasurably to our knowledge of the shape and nature of our society. Descriptive research encompasses much government sponsored research including the population census, the collection of a wide range of social indicators and economic information such as household expenditure patterns, time use studies, employment and crime statistics and the like. Descriptions can be concrete or abstract. A relatively concrete description might describe the ethnic mix of a community, the changing age problem of a population or the gender mix of a workplace. Alternatively the description might ask more abstract questions such as `Is the level of social inequality increasing or declining?', `How secular is society?' or How much poverty is there in this community?'Accurate descriptions of the level of unemployment or poverty have historically played a key role in social policy reforms (Marsh, 1982). By demonstrating the existence of social problems, competent description can challenge accepted assumptions about the way things are and can provoke action. Good description provokes the `why' questions of explanatory research. If we detect greater social polarization over the last 20 years (i.e. the rich are getting richer and the poor are getting poorer) we are forced to ask `Why is this happening?' But before asking `why?' we must be sure about the fact and dimensions of the phenomenon of increasing polarization. It is all very well to develop elaborate theories as to why society might be more polarized now than in the recent past, but if the basic premise is wrong (i.e. society is not becoming more polarized) then attempts to explain a non-existent phenomenon are silly. Of course description can degenerate to mindless fact gathering or what C.W. Mills (1959) called `abstracted empiricism'. There are plenty of examples of unfocused surveys and case studies that report trivial information and fail to provoke any `why' questions or provide any basis for generalization. However, this is a function of inconsequential descriptions rather than an indictment of descriptive research itself.

Explanatory research Explanatory research focuses on why questions. For example, it is one thing to describe the crime rate in a country, to examine trends over time or to compare the rates in different countries. It is quite a different thing to develop explanations about why the crime rate is as high as it is, why some types of crime are increasing or why the rate is higher in some countries than in others. The way in which researchers develop research designs is fundamentally affected by whether the research question is descriptive or explanatory. It affects what information is collected. For example, if we want to explain why some people are more likely to be apprehended and convicted of crimes we need to have hunches about why this is so. We may have many possibly incompatible hunches and will need to collect information that enables us to see which hunches work best empirically. Answering the `why' questions involves developing causal explanations. Causal explanations argue that phenomenon Y (e.g. income level) is affected by factor X (e.g. gender). Some causal explanations will be simple while others will be more complex. For example, we might argue that there is a direct effect of gender on income (i.e. simple gender discrimination) (Figure 1.1a). We might argue for a causal chain, such as that gender affects choice of field of training which in turn affects

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Ethics of Business Research Ethics are moral principles or values generally governing the conduct of an individual or group. Ethics behavior is not, however, a one-way relationship clients, suppliers, as well as field services, must also act in an ethical manner. Ethical questions range from practical, narrowly defined issues, such as a researcher's obligation to be honest with its customers, to broader social and philosophical questions, such as a company's responsibility to preserve the environment and protect employee rights. Unethical practices by some suppliers include abusing respondents, selling unnecessary research, and violating client include requesting bids when a supplier has been predetermined, requesting bids gain to free advice methodology, marketing false promises, and issuing unauthorized requests for proposals. Marketing research field services have used professional respondents, which I unethical. Respondents have certain rights, including the rights to choose whether to participate in a marketing research project, the right to safety from physical and psychological harm, and the right to be informed of all aspects of the research task. They should know what is involved, how long it will take, and what will be done with the data. Respondents also have the right to privacy.
Data-Collection Code of Ethics The Marketing Research Association (MRA) is an association to which may field services belong. The organization is dedicated to promoting excellence in data collection. To this end, it recently enacted the following code of ethics:

Companies Engaged in Data Collection 1. Will treat the respondent with respect and not influencing a respondent's opinion or attitude on any issue through direct or indirect attempts, including the framing of questions. 2. Will conduct them in a professional manner and ensure privacy and confidentiality. 3. Will ensure that all formulas used during bidding and reporting during the data collection conforms to the MRA guidelines. process

4. Will make factually correct statement to secure cooperation and will honor promises made during the interview to respondents, whether verbal or written. 5. Will give respondents the opportunity to refuse to participate in the research when there is a possibility they may be identifiable even without the use of their mane or address (e.g., because of the size of the population being sampled). 6. Will not use information to identify respondents without the permission of the respondent except to those who check the data or are involved in processing the data. If such permission is give, the interviewer must record it, or a respondent must do so, during all internet studies, at the time the permission is secured. 7. Will adhere to and follow these principles when conducting online research: respondent's rights to anonymity must be safeguarded. Unsolicited e-mail must not be sent to those requesting not to receive any furtherer-mail. Researchers interviewing minors must adhere to the Children's Online Privacy Protection Act(COPPA). Before collecting, using, or disclosing personal information from a child, the 11

researcher must obtain verifiable parental consent from the child's parent. 8. Will respect the respondent's right to withdraw or refuse to cooperate at any stage of the study and will to use any procedure or technique to coerce or imply that cooperation is obligatory. 9. For internet research, will not use any data in any way contrary to the provider's published privacy statement without permission from the respondent. 10. Will obtain and document respondent consent when it is known that the personally identifiable information of the respondent may be passed by audio, video, or interactive voice response to a third party for legal or other purposes.

Thinking Like a Researcher


The purpose of research is to inform action. Thus, your study should seek to contextualize its findings within the larger body of research. Research must always be high quality in order to produce knowledge that is applicable outside of the research setting with implications that go beyond the group that has participated in the research. Furthermore, the results of your study should have implications for policy and project implementation. Thus, as researchers, it is imperative to take steps to overcome this barrier. Publishing your study may be one initial step to make your research known to the global community. Other proactive measures can be taken to encourage the uptake of evidence-based interventions. For example, you can present your research findings at various venues such as the Unite for Sight sponsored Global Health and Innovation Conference. Furthermore, you can send the results of your study to local officials, policy-makers, and community leaders.
Research is not restricted only to medical and science fields but is an important aspect of any organisation big or small. A company consists of people and it is this team that steers the course of the business. Businesses succeed or fail based on the decisions taken by these people in the organisation. At the same time, most managers also need access to facts and figures about the organisations performance, markets, financial aspects to continually enhance the business and the quality of their products. Many organisations in industries like pharmaceuticals have a full fledged research and development division with quality control to ensure quality of product and invention of new products. But what happens in SMEs and other service sectors like NGOs and business consultancy? In such a scenario, research is an all time must for continuous upgrading of skills and knowledge of employees for quality deliverables. Besides this, the deliverables by itself would need a vast amount of research to satisfy the requirements of clients.

In-house research is needed in areas of professional and self development of the employees through training and mentoring. Organisational research and analysis would also be required for assessment of performance management, process reengineering, departmental assessment and well-being of employees.

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All the above mentioned research areas would involve the people directly as they are the ones who initiate all processes. Research in each of these areas can bring about meaningful and relevant implementation of policies and procedures for positive change within the organisation. Performance management would require the managers to play a crucial role as facilitator and mentor to achieve excellent results. Besides motivating and encouraging the team, a manager needs to lead from the front. A proper understanding of the employees and healthy interaction would be crucial factors for a manager to enhance performance of the individuals in the team. A good approach, right attitude and behaviour of the manager with proper systems in place would require sound research to understand and improve the system. Process reengineering involves a detailed study of the existing processes and systems of the departments, inter-departments and also between units. A careful study would reveal the gaps existing in the system and suitable remedial or innovative solutions can be arrived at through analysis. It would eliminate repetitive and waste activities with introduction of better and enhanced processes. Departmental assessment would involve understanding the purpose and processes of the department. If done by the department team, it provides a feeling of ownership and brings about a sense of responsibility. The team would be able to identify what works well for them and what are the exercises that can be eliminated. With regard to the staff, a properly conducted research can reveal crucial information on their satisfaction quotient, the difficulties encountered by them and how the issues pertaining to relationships at the workplace can be tackled. An analysis of the results would enable the management to bring about changes for the overall effective functioning of the organisation and its employees. The employees can be mentored and trained based on the needs. This would facilitate personal as well as professional development enhancing overall organisational performance. Besides research on the systems, an organisation requires research to improve their marketing and sales performance. The facts and figures of operations through proper accounting and financial systems would help in taking decisions on the feasibility and growth of the organisation. Ultimately, it is research that helps sustain a company. It would enable the management in decision making through careful analysis of the research output for the benefit of the organisation. Many organisations have been unable to sustain themselves and have fallen simply because of neglecting research and not keeping abreast of market trends and innovations. Research is important to survive in business.

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The Research Process: An Overview


Stage 1: Formulating the Marketing Research Problem Formulating a problem is the first step in the research process. In many ways, research starts with a problem that management is facing. This problem needs to be understood, the cause diagnosed, and solutions developed. However, most management problems are not always easy to research. A management problem must first be translated into a research problem. Once you approach the problem from a research angle, you can find a solution. For example, sales are not growing is a management problem. Translated into a research problem, we may examine the expectations and experiences of several groups: potential customers, first-time buyers, and repeat purchasers. We will determine if the lack of sales is due to: What then is the difference between a management problem and a research problem? Management problems focus on an action. Do we advertise more? Do we change our advertising message? Do we change an under-performing product configuration? Stage 2: Method of Inquiry The scientific method is the standard pattern for investigation. It provides an opportunity for you to use existing knowledge as a starting point and proceed impartially. The scientific method includes the following steps: Formulate a problem Develop a hypothesis Make predictions based on the hypothesis Devise a test of the hypothesis Conduct the test Analyze the results The terminology is similar to the stages in the research process. However, there are subtle differences in the way the steps are performed. For example, the scientific method is objective while the research process can be subjective. Objective-based research (quantitative research) relies on impartial analysis. The facts are the priority in objective research. On the other hand, subjective-based research (qualitative research) emphasizes personal judgment as you collect and analyze data.

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Stage 3: Research Method In addition to selecting a method of inquiry (objective or subjective), you must select a research method. There are two primary methodologies that can be used to answer any research question: experimental research and non-experimental research. Experimental research gives you the advantage of controlling extraneous variables and manipulating one or more variables that influences the process being implemented. Non-experimental research allows observation but not intervention. You simply observe and report on your findings. Stage 4: Research Design The research design is a plan or framework for conducting the study and collecting data. It is defined as the specific methods and procedures you use to acquire the information you need. Stage 5: Data Collection Techniques Your research design will develop as you select techniques to use. There are many ways to collect data. Two important methods to consider are interviews and observation. Interviews require you to ask questions and receive responses. Common modes of research communication include interviews conducted face-to-face, by mail, by telephone, by email, or over the Internet. This broad category of research techniques is known as survey research. These techniques are used in both non-experimental research and experimental research. Another way to collect data is by observation. Observing a persons or companys past or present behavior can predict future purchasing decisions. Data collection techniques for past behavior can include analyzing company records and reviewing studies published by external sources. In order to analyze information from interview or observation techniques, you must record your results. Because the recorded results are vital, measurement and development are closely linked to which data collection techniques you decide on. The way you record the data changes depends on which method you use. Stage 6: Sample Design Marketing research project will rarely examine an entire population. Its more practical to use a sample a smaller but accurate representation of the greater population. In order to design your sample, you must find answers to these questions: From which base population is the sample to be selected? What is the method (process) for sample selection? 15

What is the size of the sample? Once youve established who the relevant population is (completed in the problem formulation stage), you have a base for your sample. This will allow you to make inferences about a larger population. There are two methods of selecting a sample from a population: probability or non-probability sampling. The probability method relies on a random sampling of everyone within the larger population. Non- probability is based in part on the judgment of the investigator, and often employs convenience samples, or by other sampling methods that do not rely on probability. The final stage of the sample design involves determining the appropriate sample size. This important step involves cost and accuracy decisions. Larger samples generally reduce sampling error and increase accuracy, but also increase costs. Stage 7: Data Collection Once youve established the first six stages, you can move on to data collection. Depending on the mode of data collection, this part of the process can require large amounts of personnel and a significant portion of your budget. Personal (face-to-face) and telephone interviews may require you to use a data collection agency (field service). Internet surveys require fewer personnel, are lower cost, and can be completed in days rather than weeks or months. Regardless of the mode of data collection, the data collection process introduces another essential element to your research project: the importance of clear and constant communication. Stage 8: Analysis and Interpretation In order for data to be useful, you must analyze it. Analysis techniques vary and their effectiveness depends on the types of information you are collecting, and the type of measurements you are using. Because they are dependent on the data collection, analysis techniques should be decided before this step. Stage 9: The Marketing Research Report The marketing research process culminates with the research report. This report will include all of your information, including an accurate description of your research process, the results, conclusions, and recommended courses of action. The report should provide all the information the decision maker needs to understand the project. It should also be written in language that is easy to understand. Its important to find a balance between completeness and conciseness. You dont want to leave any information out; however, you cant let the information get so technical that it overwhelms the reading audience.

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One approach to resolving this conflict is to prepare two reports: the technical report and the summary report. The technical report discusses the methods and the underlying assumptions. In this document, you discuss the detailed findings of the research project. Another way to keep your findings clear is to prepare several different representations of your findings. PowerPoint presentations, graphs, and face-to-face reports are all common methods for presenting your information. Along with the written report for reference, these alternative presentations will allow the decision maker to understand all aspects of the project.

Research Design: An Overview


Quantitative research is all about quantifying relationships between variables. Variables are things like weight, performance, time, and treatment. You measure variables on a sample of subjects, which can be tissues, cells, animals, or humans. You express the relationship between variable using effect statistics, such as correlations, relative frequencies, or differences between means. I deal with these statistics and other aspects of analysis elsewhere at this site. In this article I focus on the design of quantitative research. First I describe the types of study you can use. Next I discuss how the nature of the sample affects your ability to make statements about the relationship in the population. I then deal with various ways to work out the size of the sample. Finally I give advice about the kinds of variable you need to measure. TYPES OF STUDY Studies aimed at quantifying relationships are of two types: descriptive and experimental. In a descriptive study, no attempt is made to change behavior or conditions--you measure things as they are. In an experimental study you take measurements, try some sort of intervention, then take measurements again to see what happened. Table 1: Types of research design Descriptive or observational

case case series cross-sectional cohort or prospective or longitudinal case-control or retrospective without a time crossover with a control group control group series

Experimental or longitudinal or repeated-measures

Descriptive Studies
Descriptive studies are also called observational, because you observe the subjects without otherwise intervening. The simplest descriptive study is a case, which reports data on only one subject; examples are 17

a study of an outstanding athlete or of a dysfunctional institution. Descriptive studies of a few cases are called case series. In cross-sectional studies variables of interest in a sample of subjects are assayed once and the relationships between them are determined. In prospective or cohort studies, some variables are assayed at the start of a study (e.g., dietary habits), then after a period of time the outcomes are determined (e.g., incidence of heart disease). Another label for this kind of study is longitudinal, although this term also applies to experiments. Case-control studies compare cases (subjects with a particular attribute, such as an injury or ability) with controls (subjects without the attribute); comparison is made of the exposure to something suspected of causing the cases, for example volume of high intensity training, or number of alcoholic drinks consumed per day. Case-control studies are also called retrospective, because they focus on conditions in the past that might have caused subjects to become cases rather than controls. A common case-control design in the exercise science literature is a comparison of the behavioral, psychological or anthropometric characteristics of elite and sub-elite athletes: you are interested in what the elite athletes have been exposed to that makes them better than the sub-elites. Another type of study compares athletes with sedentary people on some outcome such as an injury, disease, or disease risk factor. Here you know the difference in exposure (training vs no training), so these studies are really cohort or prospective, even though the exposure data are gathered retrospectively at only one time point. The technical name for these studies is historical cohort. Experimental Studies Experimental studies are also known as longitudinal or repeated-measuresstudies, for obvious reasons. They are also referred to as interventions, because you do more than just observe the subjects. In the simplest experiment, a time series, one or more measurements are taken on all subjects before and after a treatment. A special case of the time series is the so-called single-subject design, in which measurements are taken repeatedly before and after an intervention on one or a few subjects. Time series suffer from a major problem: any change you see could be due to something other than the treatment. For example, subjects might do better on the second test because of their experience of the first test, or they might change their diet between tests because of a change in weather, and diet could affect their performance of the test. The crossover design is one solution to this problem. Normally the subjects are given two treatments, one being the real treatment, the other a control or reference treatment. Half the subjects receive the real treatment first, the other half the control first. After a period of time sufficient to allow any treatment effect to wash out, the treatments are crossed over. Any effect of retesting or of anything that happened between the tests can then be subtracted out by an appropriate analysis. Multiple crossover designs involving several treatments are also possible. Typical of the population. If the subjects are blind (or masked) to the identity of the treatment, the design is a single-blind controlled trial. The control or reference treatment in such a study is called a placebo: the name physicians use for inactive pills or treatments that are given to patients in the guise of effective treatments. Blinding of subjects eliminates the placebo effect, whereby people react differently to a treatment if they think it is in some way special. In a double-blind study, the experimenter also does not know which treatment the subjects receive until all measurements are taken. Blinding of the experimenter is important to stop him or her treating subjects in one group differently from those in another. In the best studies even the data are analyzed blind, to prevent conscious or unconscious fudging or prejudiced interpretation.

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Quality of Designs The various designs differ in the quality of evidence they provide for a cause-and-effect relationship between variables. Cases and case series are the weakest. A well-designed cross-sectional or case-control study can provide good evidence for the absence of a relationship. But if such a study does reveal a relationship, it generally represents only suggestive evidence of a causal connection. A cross-sectional or case-control study is therefore a good starting point to decide whether it is worth proceeding to better designs. Prospective studies are more difficult and time-consuming to perform, but they produce more convincing conclusions about cause and effect. Experimental studies provide the best evidence about how something affects something else, and double-blind randomized controlled trials are the best experiments.

SAMPLES
You almost always have to work with a sample of subjects rather than the full population. But people are interested in the population, not your sample. To generalize from the sample to the population, the sample has to be representative of the population. The safest way to ensure that it is representative is to use a random selection procedure. You can also use a stratified random sampling procedure, to make sure that you have proportional representation of population subgroups (e.g., sexes, races, regions).

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Donatos: Finding the New Pizza


Case Study Solution
Q1.Map the research design used by Donatos for new product development. Solution 1. Idea development 2. Developing the product prototype : Donatos used employee taste testing to know what customers preferences are and develops the new product 3. Taste testing(by employee) : Is done with the organization 4. Displaying Photographs of food products: Displaying sample pictures of the recent developed food 5. Uniqueness: Developing a unique product which reaches the customers attention 6. Brand fit and price are the next key points 7. Feedback from the customers are important for new product development.

Q2.Evaluate the Wassup meetings as an exploratory methodology to help define the research question. Solution Wassup donatos meeting conducted by the monthly routine, where each employee brings knowledge of popular culture and explain its effect on donatos. It is this which makes donatos will have a lot of information about diet and feeling that exist within a culture within the employee's information can be used by donatos, to become an opportunity to develop a new product. For example, according to 2003 health focus trend reports, 26% of consumers of food are "carb conscious". This suggests that they are eating low-carb diet into their diet habits. This methodology can be used to establish the research question of product development. For example: Q1.Whether consumers go on a diet? What kind of diet? Q2.Whether the product can be consumed by the participants diet? How can it be? Q3.If in the form of pizza, what kind of diet if it is a pizza? What formulations to be used? Q4. 26% of consumers of food are "carb conscious", what food can be called "carb conscious"? Q5.Does require new technology to make it serve targeted?
Q3.Evaluate the test market Donatos used. What were its advantages and

disadvantages? Solution It was testing the new product in two stores in Columbus. Ads proclaiming the new No Dough pizza were featured in restaurant windows of the test stores. Starting January 2, we usually see a 25% increase in salad sales, described Krouse. Not surprising, given that for years losing weight has been one of Americans top-three New Years resolutions. And we wanted to own the idea 20

of a crust-free pizza; we saw it as a significant marketing advantage. So a new product development process that routinely takes 12 to 14 months took just 6 monthsto take advantage of what Donatos saw as a very important strategic window. On January 19, Donatos rolled its No Dough pizza into all its 184 stores. We like to think of ourselves as a smart speed organization, explained Krouse. We have the discipline to make fact-based decisions A Cincinnati-based marketing research firm, in January 2004 about 28 percent of all Americans59 million peoplewere watching their intake of carbohydrates and how has that market segment responded? Disadvantage When you order a Donatos pizza, No Dough is one of three crust options, so people wanting to eat lowcarb can do so without changing their pizza topping preference.\ The gluten-free market segment, a segment Donatos had not identified. Q4.What measurement scales would you have used on the survey that was part of the in-restaurant product tests? Solution Ordinal Scale Quality Price Product Ambience Service Delivery Hygiene Variants Space Constant Sum Scale Average Responses of Three Segments Segment I Segment II

Attribute 1. Quality 2. Price 3. Product 4. Ambience 5. Service Delivery 6. Hygiene 7. Variants 8. Space

Segment III

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