Chapter Three

Research Design

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 Research Design: Definition

• A research design is a framework or

blueprint for conducting the marketing
research project.
• It details the procedures necessary for
obtaining the information needed to
structure or solve marketing research
problems.

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 Components of a Research Design

• Define the information needed (Chapter 2)

• Design the exploratory, descriptive, and/or causal
phases of the research (Chapters 3 - 7)
• Specify the measurement and scaling procedures
(Chapters 8 and 9)
• Construct and pretest a questionnaire
(interviewing form) or an appropriate form for
data collection (Chapter 10)
• Specify the sampling process and sample size
(Chapters 11 and 12)
• Develop a plan of data analysis (Chapter 14)

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 A Classification of Marketing Research
Designs
Fig. 3.1
Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
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 Exploratory and Conclusive research designs

• Exploratory research is used in situations where

the problem may have to be defined more
precisely, relevant courses of action
identified, hypotheses formulated, or
additional insights gained before an
approach can be developed.

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 Exploratory and Conclusive research designs

• The owner of The Cupcake King has many, many

ideas for improving the bakery's sales, but isn't
sure which will work.
• They think increasing the flavors of cupcakes the
bakery sells will bring in more customers, but
know they need more information.
• They intend to conduct ER to investigate
whether expanding their cupcake selection
will lead to an increase in sales, or if there is
a better idea.

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 Methods of Exploratory Research

• Survey of experts (discussed in Chapter 2)

• Pilot surveys (discussed in Chapter 2)
• Secondary data analyzed in a qualitative way
(discussed in Chapter 4)
• Qualitative research (discussed in Chapter 5)

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 Uses of Exploratory Research

• Formulate a problem or define a problem

more precisely
• Identify alternative courses of action
• Develop hypotheses
• Isolate key variables and relationships for
further examination
• Gain insights for developing an approach
to the problem
• Establish priorities for further research

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 Exploratory and Conclusive research designs

• Conclusive research would be used to test specific

hypotheses, examine specific relationships, or
make predictions.
• Conclusive research is typically more formal and
structured than exploratory research.
• It is based on large and representative samples
and the data obtained are subjected to
quantitative analysis.
• Conclusive research may either describe or
uncover causal relationships that may be
generalised to large populations

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 Descriptive and Causal research

• Descriptive research is used to describe

something, usually market characteristics or
functions.
For example, determining the average age of
purchasers of your product.
• Causal research is used to obtain evidence
regarding cause-and-effect relationships.
For example, determining if increased advertising
spending has led to an increase in sales.

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 Six W’s of descriptive research

• Descriptive research design requires a clear

specification of the six W’s of the research:
1.Who: who should be considered?
2.Where: where should the respondents be contacted to obtain
the required information?
3.When: when should the information be obtained from the
respondents?
4.What: what information should be obtained from the
respondents?
5.Why: why are we obtaining information from the respondents?
6.Way: the way in which we are going to obtain information
from the respondents.

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 Use of Descriptive Research

• To describe the characteristics of relevant

groups, such as consumers, salespeople,
organizations, or market areas
• To estimate the percentage of units in a
specified population exhibiting a certain
behavior
• To determine the perceptions of product
characteristics
• To determine the degree to which marketing
variables are associated
• To make specific predictions

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 Methods of Descriptive Research

• Secondary data analyzed in a quantitative, as

opposed to a qualitative, manner (discussed in
Chapter 4)
• Surveys (Chapter 6)
• Panels (Chapters 4 and 6)
• Observational (Chapter 6)

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 Situations where causal research could be
used
• Causal research is appropriate to use when the
purposes are to understand which variables are
the cause and which variables are the effect,
and to determine the nature of the functional
relationship between the causal variables and
the effect to be predicted.
• Once you understand the underlying theory,
business-to-business advertising as an example
of causal research.

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 Exploratory & Conclusive Research
Differences
Table 3.1 Exploratory Conclusive
Objective: To provide insights and To test specific hypotheses and
understanding examine relationships

Character- Information needed is defined Information needed is clearly

istics: only loosely. Research process is defined. Research process is formal
flexible and unstructured. and structured. Sample is large and
Sample is small and non- representative. Data analysis is
representative. Analysis of quantitative
primary data is qualitative

Findings/ Tentative Conclusive

Results:

Outcome: Generally followed by further Findings used as input into decision

exploratory or conclusive making
research
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 A Comparison of Basic Research Designs
Table 3.2
Exploratory Descriptive Causal
Objective: Discovery of ideas Describe market Determine cause
and insights characteristics or and effect
functions relationships

Characteristics: Flexible, versatile Marked by the prior Manipulation of

formulation of specific independent
hypotheses variables, effect
on dependent
Often the front end Preplanned and variables
of total research structured design
design Control mediating
variables
Expert surveys Secondary data:
Methods: Pilot surveys quantitative analysis Experiments
Case studies Surveys
Secondary data: Panels
qualitative analysis Observation and other
qualitative research data
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 Causal research design and its purpose

• understand which variables are the cause

(independent variables) and which variables
are the effect (dependent variables) of
marketing phenomena;
• determine the nature of the relationship between
the causal variables and the effect to be
predicted;
• test hypotheses.

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 Cross-Sectional Designs

• In single cross-sectional designs, there is only one sample

of respondents and information is obtained from this sample
only once.

• In multiple cross-sectional designs, there are two or more

samples of respondents, and information from each sample is
obtained only once. Often, information from different
samples is obtained at different times.

• Cohort analysis consists of a series of surveys conducted at

appropriate time intervals, where the cohort serves as the
basic unit of analysis. A cohort is a group of respondents who
experience the same event within the same time interval.

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 Cohort analysis

• For example, a birth (or age) cohort is a group of

people who were born during the same time
interval, such as 1951–1960.
• The term cohort analysis refers to any study in
which there are measures of some
characteristics of one or more cohorts at
two or more points in time.
• Cohort analysis is of special interest because it is
used to predict changes in consumers'
behaviour or attitudes over a period of time.
It reveals the shared history and subtle effects of
the ageing of consumers upon their behaviour
and attitudes.
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 Longitudinal Designs

• A fixed sample (or samples) of population

elements is measured repeatedly on the
same variables

• A longitudinal design differs from a cross-

sectional design in that the sample or
samples remain the same over time

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 Cross-Sectional vs. Longitudinal

Cross- Sample
Sectional Surveyed
Design at T1

Same
Sample Sample also
Longitudinal Surveyed at
Design Surveyed at
T1 T2

Time T1 T2
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 Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Table 3.4

Evaluation Cross-Sectional Longitudinal

Criteria 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.

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 Alternative Research Designs

Exploratory Research
(a) • Secondary Data Conclusive Research
Analysis •Descriptive/Causal
• Focus Groups

(b) Conclusive Research

•Descriptive/Causal

Exploratory
Conclusive Research Research
(c) • Secondary Data
•Descriptive/Causal
Analysis
• Focus Groups
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 Potential sources of error can affect a
research design

• The total error is the variation between the

true mean value in the population of the
variable of interest and the observed mean
value obtained in the marketing research
project.

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 Potential sources of error can affect a
research design

The potential sources of error can be broadly

categorised into two classes:
Random Sampling errors. Sampling error arises
when the selected sample is not perfectly
representative of the population it represents.
In this case the mean value for the sample differs
from the actual population mean, because
particular types of participant have been over- or
under-represented.
Non-sampling errors. Non-sampling error can be
classified as non-response error and response
error. Non-response error occurs when some of
the participants do not respond.
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 Potential sources of error can affect a
research design

Response errors are those that arise due to errors

made by the researchers, interviewers and
participants, such as the wrong formulation of
the questionnaire, mis-recording of answers,
hesitancy or unwillingness to provide
answers.

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 Potential Sources of Error in Research Designs

Fig. 3.2
Total Error

Random Non-sampling
Sampling Error Error

Response Non-response
Error Error

Researcher Interviewer Respondent

Error Error Error
Surrogate Information Error Respondent Selection Error Inability Error
Measurement Error Questioning Error Unwillingness Error
Population Definition Error Recording Error
Sampling Frame Error Cheating Error
Data Analysis Error
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 Minimise total error

• It is usually negligible provided a sample of

sufficient size from the relevant population has
been taken.

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 Internet in different types of research
designs.

• During the exploratory phase of the research,

forums, chat rooms, or newsgroups can be
used to generally discuss a topic with anyone who
visits the chat room.

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 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.
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 Citicorp Banks on Exploratory,
Descriptive, and Causal Research

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.
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 Citicorp Banks on Exploratory,
Descriptive, and Causal Research

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.

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 Citicorp Banks on Exploratory,
Descriptive, and Causal Research

3) The next stage of research was brainstorming. This

involved the formation of many different financial
packages aimed at the target market. In this case, a
total of 10 ideas were generated.
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 Citicorp Banks on Exploratory,
Descriptive, and Causal Research
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 about 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?
• Does the idea fit into the overall strategy of Citicorp?

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 Citicorp Banks on Exploratory,
Descriptive, and Causal Research

 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.

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 Citicorp Banks on Exploratory,
Descriptive, and Causal Research

5) A creative work-plan 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.

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 Citicorp Banks on Exploratory,
Descriptive, and Causal Research

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.

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 Group Exercise

• “If the research budget is limited, exploratory

research can be dispensed with.” Discuss this
quote.
• As a small group, discuss the following
statement: “The researcher should always
attempt to develop an optimal design for every
marketing research project.”
• “There are many potential sources of error in a
research project. It is impossible to control all of
them. Hence, marketing research contains many
errors and we cannot be confident of the
findings.” Discuss these statements as a small
group. Did your group arrive at a consensus?
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publishing as Prentice Hall
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