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 problem.

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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

Research Objective To gain background information, to define terms, to clarify problems and hypotheses, to establish research priorities To describe and measure marketing phenomena at a point in time To determine causality, to make if-then statements Appropriate Design Exploratory

Descriptive

Causal

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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 projects use only one design. Ch 5 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.
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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 projects.

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Exploratory Research

Uses Gain Background Information Define Terms Clarify Problems and Hypothesis (refine research objectives) Establish Research Priorities
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Many questions; many sources Defining the problem; getting a feel

Exploratory Research
A variety of methods are available to conduct exploratory research. Secondary Data Analysis Experience Surveys Case Analysis Focus Groups Projective Techniques
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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 studys findings to a larger population, if the studys sample is representative.

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Research Design: Descriptive Research

Two basic classifications: Cross-sectional studies Longitudinal studies

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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 crosssectional 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.

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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
Panel Results
70% 60% Market Share 50% 40% 40% 50%

Many questions; one or few sources Formal sample and questionnaire

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60%

60%

A Marketing Survey 30% 30% 25% Questionnaire 20% 20% 20% 20% 15% 10% Sample method and size 0% S S Data collectionWmethod 2005 Data analysis (quantitative) Ch 5 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 next. 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 research. Discontinuous panels represent sources of information that may be quickly accessed for a wide variety of purposes.
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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 studies track some variable of interest Ch 5 over time. 20

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Changes From Two CrossSectional Studies

Pooch Plus dropped from 100 to 75 families. Beggars 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 back market share. Ch 5

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Longitudinal Data Analysis

Pooch Plus kept 50 families and lost 50 families to Beggars Bits. Pooch Plus gained 25 former Beggars Bits families. Milk Bones gained 25 former Beggars Bits families. Conclusion: Beggars Bits is the competitionNot 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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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.

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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.

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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 variable.

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Symbols of Experimental Design

O= X= R= measurement of a dependent variable manipulation, or change, of an independent variable random assignment of subjects to experimental and control groups experimental effect
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E=
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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 variables.

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Not True Experimental Design

After-Only Design: One-Group, Before-After Design: X O1 O1 X O2

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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.

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A True Experimental Design

Before-After with Control Group: Experimental group: O1 X O2 Control group: O3 O4 here 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 companys 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.
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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 volume.

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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 Markets

Representativeness: Do demographics match the total market? Degree of isolation: Phoenix and Tulsa are isolated markets; Los Angeles is not.

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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?

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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 competitors Takes time to conduct

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