CHAPTER 3 RESEARCH DESIGN OPENING QUESTIONS 1. 2. 3. 4. 5. . !. #.

What is a research design and what are the kinds of basic research designs? How can the basic research designs be compared and contrasted? What are the major sources of errors in a research design? How does the researcher coordinate the budgeting and scheduling aspects of a research project? What elements make up the marketing research proposal? What factors should the researcher consider while formulating a research design in international marketing research? How can technolog" facilitate the research design process? What ethical issues arise when selecting a research design?

AUTHORS NOTES: CHAPTER FOCUS $his chapter pro%ides an o%er%iew of research design. & definition and a classification of research designs are presented. $he differences between e'plorator" and conclusi%e research designs are discussed. $he three basic t"pes of research designs( namel" e'plorator"( descripti%e( and causal( are described and a comparati%e anal"sis of these designs is presented. $he potential sources of errors in research designs are co%ered in some detail. $he budgeting and scheduling of a marketing research project( as well as the preparation of a marketing research proposal( are co%ered. $his chapter is similar to competing te'ts with regard to the material on the basic t"pes of research designs. )t is different in that it presents a comparati%e anal"sis of these designs and also gi%es a unified treatment of errors associated with research designs. $his chapter could be taught b" focusing on the opening *uestions se*uentiall". +reater emphasis could be placed on the differences between e'plorator" and conclusi%e research ,-pening .uestion 2/ and on the material on e'plorator"( descripti%e( and causal research ,-pening .uestion 3/. $he potential sources of errors in a research design should be discussed ,-pening .uestion 4/. 0aterial on international marketing research ,-pening .uestion !/ and ethics in marketing research ,-pening .uestion 1/ should also be co%ered. $he )nternet and software( such as the programs described in the book( or an" similar programs( could be demonstrated in the class. CHAPTER OUTLINE 1. 2. 3. 4. 5. -%er%iew What is a 2esearch 3esign? 4asic 2esearch 3esigns 5'plorator" 2esearch 3escripti%e 2esearch 34

. !. #. 1. 1<. 11. 12. 13. 14. 15. 1 . 1!. 1#. 11.

i. 6ross78ectional 3esign ii. 9ongitudinal 3esign iii. 6ross78ectional :ersus 9ongitudinal 3esigns 6ausal 2esearch 2elationships &mong 5'plorator"( 3escripti%e( and 6ausal 2esearch $asks )n%ol%ed in ;ormulating a 2esearch 3esign 2esearch 3esign and the :alue of 0arketing 2esearch 4udgeting and 8cheduling the =roject 0arketing 2esearch =roposal 8ummar" )llustration >sing the -pening :ignette )nternational 0arketing 2esearch $echnolog" and 0arketing 2esearch 5thics in 0arketing 2esearch )nternet &pplications i. 5'plorator" 2esearch ii. 6onclusi%e 2esearch 8ummar" ?e" $erms and 6oncepts &cron"ms

TEACHING SUGGESTIONS -pening .uestion 1 @ 3efine and discuss the importance of a good research design. 3efine the research design as a framework or blueprint for conducting the marketing research project. )t specifies the precise details of the procedures necessar" for obtaining the re*uired information. ;inall"( stress that it is important to ha%e a good research design in order to ensure that the marketing research project is conducted effecti%el" and efficientl". @ 3iscuss the appropriate uses of e'plorator" and conclusi%e research designs.

3istinguish the two b" noting that e'plorator" research is used in situations where the problem ma" ha%e to be defined more precisel"( rele%ant courses of action identified( h"potheses formulated( or additional insights gained before an approach can be de%eloped. 6onclusi%e research would be used to test specific h"potheses( e'amine specific relationships( or make predictions. ;igure 3.4 pro%ides a framework for organiAing marketing research designs and $able 3.1 lists the differences between e'plorator" and conclusi%e designs in a comparati%e reference table. -pening .uestion 2 @ 5'plain the differences between descripti%e and causal research . 5mphasiAe that while both descripti%e and causal research are classified as conclusi%e research( the" differ in terms of their objecti%es. 3escripti%e research is used to describe 35

something( usuall" market characteristics or functions. 6ausal research is used to obtain e%idence regarding cause7and7effect relationships. 5'plain the distinction between e'plorator"( descripti%e( and causal research. 5'amples ma" pro%e instructi%e. 4egin with e'plorator" research b" informing students that it is t"picall" used to pro%ide structure and insight into the research problem( for e'ample( b" using focus groups to determine ke" factors related to the use of "our product. -ther e'amples can be constructed. ;or descripti%e research( mention that it begins with the structure alread" defined and proceeds to actual data collection in order to describe some market %ariable( for e'ample( determining the a%erage age of purchasers of "our product. 6ausal research also proceeds from a pre7established structure but attempts to infer causal relationships between %ariables as opposed to describing %ariables( for e'ample( determining if increased ad%ertising spending has led to an increase in sales. $able 3.2 pro%ides a table( which compares the three basic research designs along dimensions of objecti%es( characteristics( and methods. @ 3escribe the si' WBs of descripti%e research.

&n interesting introduction to this topic is noting that the si' WBs are used b" journalists when tr"ing to gather facts for a stor". )n like manner( because descripti%e research is marked b" the prior formulation of specific h"potheses( the design re*uires a clear specification of the si' WBs of the researchC 1. 2. 3. 4. 5. . WhoC who should be considered? WhereC where should the respondents be contacted to obtain the re*uired information? WhenC when should the information be obtained from the respondents? WhatC what information should be obtained from the respondents? Wh"C wh" are we obtaining information from the respondents? Wa"C the wa" in which we are going to obtain information from the respondents. $hese *uestions form the basis for describing the research to be conducted. 6onsider an airline passenger e'ample. Ha%e the class go through the WBs with air tra%el as the product and with the issue as e'panding "our compan"Bs international air tra%el flights. @ 9ist situations where descripti%e research should be used.

4riefl" re%iew the elements of descripti%e research( i.e.( it is characteriAed b" a clear statement of the problem( specific h"potheses( and detailed information needs. 5'amples of descripti%e studies areC 1. 0arket studies that describe the siAe of the market( bu"ing power of the consumers( a%ailabilit" of distributors( and consumer profiles. 36

2. 3. 4. 5. . !. #.

0arket share studies that determine the proportion of total sales recei%ed b" a compan" and its competitors. 8ales anal"sis studies that describe sales b" geographic region( product line( t"pe and siAe of the account. )mage studies that determine consumer perceptions of the firm and its products. =roduct usage studies that describe consumption patterns. 3istribution studies which determine traffic flow patterns and the number and location of distributors. =ricing studies that describe the range and fre*uenc" of price changes and probable consumer response to proposed price changes. &d%ertising studies that describe media consumption habits and audience profiles for specific tele%ision programs and magaAines.

@ 3escribe situations where causal research could be used. 8tart with the basis for causal research. 6ausal research is appropriate to use when the purposes are to understand which %ariables are the cause and which %ariables are the effect( and to determine the nature of the functional relationship between the causal %ariables and the effect to be predicted. -nce the underl"ing theor" is understood b" students( use the e'ample in the te't on business7to7business ad%ertising as an e'ample of causal research. @ 6lassif" descripti%e research into cross7sectional and longitudinal designs.

6lassif" the two designs b" the time frame each uses. 6ross7sectional designs in%ol%e the collection of information from a sample population at a single point in time( whereas in a longitudinal design a fi'ed sample population is measured repeatedl" o%er se%eral points in time. 9ongitudinal data tend to be more informati%e than cross7sectional data because the" measure changes in beha%ior( large amounts of data can be collected( and the" are more accurate. Det( the" suffer from potential bias and nonrepresentati%eness. $able 3.3 pro%ides a table for comparing cross7sectional and longitudinal designs along 5 criteria( detecting change( amount of data collected( accurac"( representati%e sampling( and response bias. -pening .uestion 3 @ 5'plain how poor research design leads to sources of error in anal"sis.

;irst( mention the sources of error in anal"sis. 2andom sampling error and nonsampling error are the two main sources of error. 2andom sampling error is the error where the particular sample selected is an imperfect representation of the population of interest. )t is defined as the %ariation between the true mean %alue for the sample and the true mean %alue of the population. )t is usuall" negligible pro%ided a sample of sufficient siAe from the rele%ant population has been taken. -nce random sampling error is understood b" the students( discuss nonsampling error. Eonsampling errors occur due to a %ariet" of reasons( including errors in the problem definition( approach( scales( *uestionnaire design( inter%iewing methods( and data preparation and anal"sis. ;igure 3.2 outlines the sources of error( especiall" the t"pes of nonsampling error( for discussion. 37

Eonsampling error is more likel" than sampling error to def" estimation and is problematic because it is the major contributor to total error( while sampling error is minimal. Eonsampling error can cause man" different problems including sol%ing the wrong problem( missing aspects pertinent to the solution( and biasing data through improper collection techni*ues and improper use of anal"tical techni*ues. -pening .uestion 4 @ )ntroduce methods of budgeting and scheduling projects. $hree commonl" used methods of budgeting and scheduling marketing research projects include the 6ritical =ath 0ethod ,6=0/( =rogram 5%aluation and 2e%iew $echni*ue ,=52$/( and the +raphical 5%aluation and 2e%iew $echni*ue ,+52$/. 6=0 in%ol%es di%iding the project into component acti%ities( determining the se*uence of these acti%ities( and estimating the time re*uired for each acti%it". $hese acti%ities and time estimates for them are diagrammed in the form of a network flow chart. $he critical path is identified as the series of acti%ities whose dela" will hold up the completion of the project. =52$ is an ad%anced %ersion of 6=0 that includes probabilities for completion of each stage of the project. $hus( probabilistic estimates of the completion time are deri%ed. +52$ incorporates both completion probabilities and acti%it" costs so that an estimate of the total cost of the project is also determined. )t would be instructi%e to bring flow charts of each of these techni*ues to show to students. -pening .uestion 5 @ 3iscuss the importance of the marketing research proposal and list its main components. $he proposal is %ital to the research firm since it ser%es as the contract between the firm and the client. & well7drafted proposal is essential to secure the business and to guide the approach to the problem( the research design( and the subse*uent details of the stud". )ts main features include the e'ecuti%e summar"( background material( problem definition( approach to the problem( research design( field work and data collection( data anal"sis techni*ues( reporting method( cost of the project and time of completion( and appendices with additional information. -pening .uestion @ )llustrate the difficulties associated with en%ironmental differences in international research. 5F&0=95C 6onsider the problem of determining household attitudes toward major appliances in the >nited 8tates and in 8audi &rabia. While conducting e'plorator" research in the >8( it is appropriate to conduct focus groups jointl" with male and female heads of households. Howe%er( it would be inappropriate to conduct such focus groups in 8audi &rabia. +i%en the traditional culture( the wi%es are unlikel" to participate freel" in the presence of their husbands. )t would be more useful to conduct one7on7one depth inter%iews separatel" with both male and female heads of households being included in the sample. 38

G G G

)n man" countries( particularl" de%eloping countries( consumer panels ha%e not been de%eloped( thus making it difficult to conduct descripti%e longitudinal research. )n man" countries the marketing support infrastructure( i.e.( retailing( wholesaling( ad%ertising( and the promotional infrastructure is lacking( which makes it infeasible to implement a causal design( such as a field e'periment. )n formulating a research design( considerable effort is re*uired to ensure the e*ui%alence and comparabilit" of secondar" and primar" data obtained from different countries.

-pening .uestion ! @ designs. 3iscuss how technolog" can facilitate the implementation of the %arious research

8mart products could be used to collect not onl" e'plorator" data but also cross7sectional or longitudinal descripti%e data. $hese subs"stems could pro%e %er" useful to companies( including software de%elopers such as 0icrosoft. When added to a software application like 0icrosoft -ffice( the" could be programmed to acti%ate when the user encounters an error message. &fter con%ersing with the user( the subs"stem would store all the rele%ant data. $henH de%eloper could then determine what happened and what could be done to pre%ent that error from recurring. &n" user obser%ations or opinions could also be stored for anal"sis. $his information would assist 0icrosoft when producing new products or upgrading %ersions of 0icrosoft -ffice. -pening .uestion # @ 3iscuss the ethical concerns of the researcher( the client( and the respondents. $he t"pe of research design that should be adopted ,i.e.( descripti%e or causal( cross7 sectional or longitudinal/ should be suited to the clientBs needs rather than be limited b" the e'pertise of the researcher. $he researchers must ensure that the research design utiliAed will pro%ide the information needed to address the marketing research problem( which has been identified. $he client should ha%e the integrit" not to misrepresent the project and should describe the constraints under which the researcher must operate and not make unreasonable demands. &lso( the client should not take undue ad%antage of the research firm to solicit unfair concessions for the current project b" making false promises of future research contracts b" holding out the carrot. 5*uall" important( responsibilities to respondents must not be o%erlooked. $he researcher should design the stud" so as not to %iolate the respondentsB right to safet"( pri%ac"( or choice. ;urthermore( the client must not %iolate the anon"mit" of the respondents. )nternet 5mphasis @ 5'plain how the )nternet can facilitate the implementation of different t"pes of research designs. 3uring the e'plorator" phase of the research( forums( chat rooms( or newsgroups can be used to generall" discuss a topic with an"one who %isits the chat room. 9ist ser%ers could also be used to obtain the initial information needed to begin research design. 9ist ser%ers make 39

interacti%e discussion possible for special interest groups( user groups( customer ser%ice forums( etc. using )nternet e7mail. 0an" descripti%e studies utiliAe secondar" data( the methodolog" of which we describe in 6hapters 4 and 5I sur%e"s( which are discussed in 6hapter !I and panels( which are discussed in 6hapters 5 and !. $he use of )nternet for causal research designs is discussed in 6hapter #. $he )nternet( in its capacit" as a source of information( can be useful in unco%ering secondar" data and collecting primar" data needed in conclusi%e research. )llustrate this b" %isiting +reenfield -n7 line 2esearch 6enter( )nc. at httpCJJwww.greenfieldonline.com. @ 3escribe the use of computers in controlling potential sources of error.

6omputers can also help control total error. 4" using computers( it is possible to understand how the %arious sources of error will affect the results and what le%els of errors might be acceptable. 8imulation can be conducted to determine how the distributions and le%els of %arious nonsampling errors will affect final results. 8oftware like 0onte 6arlo 8imulations ,068/ b" &ctuarial 0icro 8oftware is useful for these purposes. BE AN MR! AND BE A DM! )t should be noted that a %ariet" of answers are appropriate. $he ones gi%en here are merel" illustrati%e. Be an MR!: Holida InnK 7 ;amil" of brandsC 6rowne =laAaK 7 Hotel )ndigoK( 7 Holida" )nnK 7 Holida" )nn 5'pressK 7 5'press b" Holida" )nnK 7 8ta"bridge 8uitesK 7 6andlewood 8uitesK We need to conduct e'plorator" research followed b" conclusi%e research to formulate a coherent marketing strateg". )t might be beneficial to retain brand differentiation through brand specific marketing. 6onsumer perception anal"sis might helpful. 0arket research should unco%er the following informationC 7 What t"pes of customers prefer which brands? 7 3o customers %alue )6 label or indi%idual brands? 7 What percentage of customers use the brands interchangeabl"? Be a DM!: Holida Inn 5'planator" 2esearch can look at *uestions likeC 7 How do business and nonbusiness customers select a hotel? 7 What attributes are considered in selecting a hotel? 7 Wh" is some other hotel group doing a better job at coherentl" marketing its brands? 7 Wh" certain marketing campaigns were more successful than others? 6onclusi%e research can look answersC 7 Which brand should target which customers? 7 What marketing programs are the most effecti%e? 40

Be an MR!: Haa!en"Da#$ =roductsJ;la%ors )ce 6ream 4&)95D8K )rish 6ream 4ananas ;oster 4lack Walnut 4utter =ecan 6afL 0ocha ;rappL 6herr" :anilla ;roAen DogurtC 6hocolate ;udge 4rownie 6offee 3ulce de 9eche 8trawberr" 8trawberr" 4anana :anilla 8orbetC 6hocolate 0ango -range -rchard =each 2aspberr" 8trawberr" 4arsC 6hocolate 8orbet 6hocolate M 3ark 6hocolate 6offee M &lmond 6runch 3ulce de 9eche 2aspberr" 8orbet M :anilla Dogurt 0arketing 8trateg"C 7 4rand name marketing 7 House of 4rands approach 7 5mphasis on *ualit" 7 8easonal marketing ,8ummer for )ce cream/ 7 Haagen73aAs is aiming for "oung adults and opinion leaders who are interested in new e'periences and Nha%e disposable income and are not afraid to spend itN.

41

6onsumer =referencesC 5'plorator" research would be %er" useful to understand consumer perceptions and preferences for high *ualit" ice creams. 8econdar" data should be anal"Aed and focus groups should be conducted to understand the underl"ing perceptions and preferences. Be a DM!: Haa!en"Da#$ =roducts should be designed to reflect these *ualities sought b" the high income households. 5mphasis on these *ualities in all ad%ertising efforts 0ake use of the appropriate channels to reach out to higher income households. Be a DM!: A%e&i'an Ai&line$ Which attributes are most %alued b" customers? 3o a 8W-$ anal"sis based on consumer perceptions? 6oncentrate more on attributes which are important to customers( especiall" weaknesses.

Be an MR!: A%e&i'an Ai&line$ 6ompetiti%e positionC .ualit"C $he &.2 ranked the 14 largest airlines for 2<<3 as followsC 1/ Oet 4lue( 2/ &laska( 3/ 8outhwest( 4/ &merica West( 5/ >8 &irwa"s( / Eorthwest( !/ 6ontinental( #/ &ir$ran( 1/ >nited( 1</ &$&( 11/ &merican( 12/ 3elta( 13/ &merican 5agle( and 14/ &tlantic 8outheast. 5'plorator" research can answer specific *uestions( such as wh" the re%enues of && are declining or wh" a particular airline has done better than && in a particular segment. 3escripti%e research re%eals facts such asC What are the attributes that are considered important to *ualit" b" customers? What are the delighters? What are the necessities from customer point of %iew etc.? 5'plorator" should anal"Ae a%ailable secondar" data and make use of focus groups. 3escripti%e research would consist of a cross7sectional sur%e". Be a DM!: Ta'o Bell 3etermine the ad%ertising goals for ne't "ear and then determine the budget that would be needed to accomplish those goals. 6ompare ne't "earBs budget to that for the current "ear. &lso look at the industr" trends and relationship between market share and ad%ertising e'penses. Be an MR!: Ta'o Bell: 8earch the )nternet for P$aco 4ell &d%ertisingQ for rele%ant details regarding their ad contracts( budgets( ad agenc" etc. 5'perimentC :ariable ad. 8pending for different regions. )ndependent :ariableC R change in ad spending 3ependent :ariableC R change in sales re%enue 6ontrol %ariablesC &ll the other possible factors that could affect change in sales such as other marketing %ariables( eating habits( change in disposable incomes etc. 42

Be an MR!: (ell$ Fa&!o 6onsumer attitude to online banking is becoming increasingl" positi%e. $he most popular online banking ser%ices are the followingC 1. &ccessing a sa%ings or checking account 2. &ppl"ing for a loan or mortgage 3. 2e%iewing account status 4. =a"ing bills 5. +athering information on rates and terms . $ransferring funds between accounts. & combination of 5'plorator"( descripti%e and casual research can be used to determine consumer attitudes towards online banking. 5'plorator" 2esearchC Wh" are man" customers not confident to do online banking? 3escripti%e researchC What are the ser%ices that customers look for in online banking? 6asual researchC What is the relation between customerBs education and probabilit" to use online banking? Be a DM!: (ell$ Fa&!o 65- of Wells ;argoC &lla" customers concerns 3esign =2 programs to educate customers 2epackage online ser%ices to fit customer e'pectations Be an MR!: Unile)e& 8tudents should search the )nternet. $he research design implemented in each countr" should be sensiti%e to the culture of that countr". ;or e'ample( while focus groups could be conducted in all the three countries( husband7wife or mi'ed focus groups would not work well in )ndia. &lso( the rural populations of )ndia are not that educated and literac" is low. $hus( personal methods should be used in obtaining information from the respondents. Be a DM!: Unile)e& 0arketing 8trateg"7 >nile%er What products and brands need to be launched in each market? 4readth and depth of offering How should the product be priced? =ackaging and design &d%ertising and promotion should be localiAed to each market. E*PERIENTIAL LEARNING E+,lo&a-o& and De$'&i,-i)e Re$ea&'. $his e'ercise is designed to gi%e the students a feel of research designs encountered in practice. $he answers will %ar" with the project selected but should demonstrate an understanding of the concepts discussed in 6hapter 3. 8tudents should also take into account practical considerations while e%aluating the appropriateness of the research designs.

43

C&a/-in! a Re$ea&'. P&o,o$al An$0e&: -%erall( the 0eteor proposal is %er" effecti%e. $his proposal is %er" similar to one used to win and conduct a field research project for an actual motorc"cle compan". $he proposal is effecti%e because it cr"stalliAes the issues for the client and the researcher without using e'traneous words( paragraphs( or sections. )n short( it is elegant in that it accomplishes much with a minimum of words. )n onl" ! pages( the project can be understood. 4oth client and researcher now ha%e a tool ,the proposal document/ with which to manage the project as it is conducted. 8ome notes to point out to students followC 1. 5ach of the 1< sections of the proposal is included. Howe%er( sections # and 1 in this proposal are flipped in order of presentation. $his is a minor point( but e'pect some students to mention this in discussion. 2. =roblem 3efinitionC $he first and third elements of the three7le%el conceptual map are transposed ,$he third should be first( and %ice7%ersa./. $he client would likel" be able to follow the thinking here. 3. 3ata anal"sis section. 0ore detail could be pro%ided here on what actuall" will be done and presented for the client. $he more thought the better here. =resenting actual mock7 ups of possible results using the e'act formatting that will be used in the presentation can reall" engage the client and result in the clientBs commitment to project success. When the client actuall" can %isualiAe what will be returned from the research project( real e'citement can ensue. 8ome ;iner =oints about =roposals followC 6rafting a winning proposal is a %aluable skill for an" researcher. )n man" wa"s( it results from a research process matching the clientBs needs with the capabilities of the research team and its contracting research agencies. ;or a research agenc"( these proposals fre*uentl" are re%iewed b" client firms in a competiti%e re%erse auction where a client research project is announced to selected research agencies and then a winning proposal ,or bid/ is selected b" the client firm. $he preparation of such a proposal can be %er" in%ol%ed and intense. $he final document must compete with those submitted b" other research agencies with talented and %eteran researchers schooled at some of the top colleges and uni%ersities. )n short( preparation of the proposal must be painstakingl" crafted( much like an architect would labor o%er the designs for a building. )f the proposal is accepted( then it becomes the PblueprintQ for the work that will follow. )n this wa"( the proposal becomes a management tool as the research process unfolds to ensure timelines are kept and costs contained. (HAT (OULD 1OU DO2 )t should be noted that a %ariet" of answers are appropriate. $he ones gi%en here are merel" illustrati%e. T.e Ma&3e-in! Re$ea&'. De'i$ion 1. $he research conducted b" E&86&2 was e'plorator" research. $his was appropriate since E&86&2 knew e'actl" what the problem was but did not know the reasons for such an image. 5'plorator" research suited the situation. 2. 6 44

3. )nitiall" E&86&2 knew the problem e'isted but did not know the reasons for such an image problem( so the e'plorator" research could be used to find out the reasons. $his could be done b" focus groups or depth inter%iews( but the subjects of e'plorator" research form onl" a small sample of the populations and the findings might not be conclusi%e( so the h"pothesis formed has to be followed up b" a descripti%e sur%e" to confirm its %alidit". T.e Ma&3e-in! Mana!e%en- De'i$ion 1. 5 2. $he image problem is one that results from perceptions77media co%erage as well as from the base realities about the fan base. 8uch an image can potentiall" restrict the fan base and deter the growth of the sport( so he has to rectif" the image of a stereot"pe fan base through %arious measures. ) would suggest ad campaigns targeting a non7stereot"pical audience( tr"ing new tracks in different parts of the countr"( =2 attempts e'plaining changing fan base of E&86&2 etc. RE4IE( QUESTIONS 1. 2. 3. 2esearch design is defined as a framework or blueprint for conducting the marketing research project( where it specifies the details of the procedures necessar" for obtaining the re*uired information to structure and sol%e the problem. $he formulation of a research design differs from de%eloping an approach to the problem in that a research design specifies the details of implementing the approach. $hus( a research design follows the approach and la"s the foundation for conducting the research. $he differences between e'plorator" and conclusi%e research can be distinguished b" their objecti%es( characteristics( findings from the research( and outcomes of the research. ;irst( the objecti%e of e'plorator" research is to pro%ide insights and understandings( whereas the objecti%e of conclusi%e research is to test h"potheses and e'amine relationships. 8econd( in e'plorator" research the information needed is onl" loosel" defined. $he research process that is adopted is fle'ible and unstructured. $he sample( selected to generate ma'imum insights( is small and nonrepresentati%e. $he primar" data that are collected are *ualitati%e in nature and are anal"Aed as such. )n conclusi%e research( the information needed is clearl" specified. 8uch research is t"picall" more formal and structured than e'plorator" research. )t is based on large and representati%e samples and the data obtained are subjected to *uantitati%e anal"sis. $hird( gi%en these characteristics of the research process( the findings of e'plorator" research should be regarded as tentati%e or used as input to further research( whereas the findings from conclusi%e research are considered to be conclusi%e in nature. 9astl"( e'plorator" research is followed b" further e'plorator" or conclusi%e research but conclusi%e research is used as input into managerial decision making. $he major purposes for which descripti%e research is conducted includeC i. $o describe the characteristics of rele%ant groups of units such as consumers( salespeople( organiAations( and market areas. ii. $o estimate the percentage of units in a specified population e'hibiting a certain beha%ior. iii. $o determine the perceptions of product characteristics. i%. $o determine the degree to which marketing %ariables are associated. 45

4.

5.

!. #.

1.

%. $o make specific predictions. & cross7sectional design in%ol%es the collection of data from a sample at a single point in time. ;or e'ample( if a researcher obser%es the bu"er beha%ior of randoml" picked people in a mall and then anal"Aes the data gathered( then such a stud" will be called a cross7 sectional stud". -n the other hand( longitudinal design in%ol%es collecting data periodicall" from a fi'ed sample of respondents. $hus( a longitudinal stud" pro%ides a series of pictures which( when %iewed together( portra" a %i%id illustration of the situation and the changes that are taking place. 6ompared to cross7sectional design( longitudinal design is more effecti%e in detecting change( more accurate( and pro%ides a larger amount of data. 6ross7sectional design has an ad%antage in representati%e sampling and response bias. $he ad%antages and disad%antages of panels includeC &d%antagesC i. =anel data( o%er multiple periods( enable us to e'amine changes in the beha%ior of indi%idual units. ii. 2elati%el" large amounts of data can be gathered. iii. $he researcher can collect more detailed data regarding the primar" %ariables of interest. i%. $he data collected is more accurate because of support between the panel members and the sponsoring organiAation. 3isad%antagesC i. $he panels are not representati%e. Eon7representati%eness arises mainl" because of refusal to cooperate( mortalit" due to lost interest( mo%ing out( etc.( and pa"ment that ma" attract a certain t"pe of people to panels. ii. Eew panel members are often biased in their initial responses and seasoned panel members ma" also pro%ide biased responses. & causal research design allows "ou to understand cause7and7effect relationships. )t is intended to answer specific marketing research *uestions to assist management decision making. $he relationship between e'plorator"( descripti%e( and causal research is if not much is known about the problem situation( it might be desirable to begin with e'plorator" research. Howe%er( e'plorator" research should not be used b" itselfI rather( e'plorator" research should be followed b" descripti%e andJor causal research. 3epending upon the precision with which the problem has been defined and the degree of understanding the researcher has with respect to de%eloping an approach to the problem( a research design could well begin with descripti%e or causal research and possibl" be followed b" e'plorator" research. $he si' components of a research design areC i. 3efine the information needed. ii. 3esign the e'plorator"( descripti%e andJor causal phases of the research. iii. 8pecif" the measurement and scaling procedures. i%. 6onstruct and pretest a *uestionnaire or an appropriate form for data collection. %. 8pecif" the sampling process and sample siAe. %i. 3e%elop a plan of data anal"sis.

APPLIED PROBLEMS 46

1.

5'plorator" research should be conducted first when followed b" descripti%e research. $he si' Ws of a descripti%e research design might beC i. Who 77 Who should be considered a consumer of mi'ed chocolate pineapple cookies? 8ome possibilities areC &n"one who bu"s cookies &n"one who bu"s premium priced cookies &n"one who bu"s chocolate cookies &n"one who has bought 8weet 4rand cookies ii. Where 77 Where should the respondents be contacted to obtain the re*uired information? 8ome possibilities areC )n the grocer" store &t home )n the parking lot iii. When 77 When should the information be obtained from the respondents? 8ome possibilities areC 4efore purchasing their groceries While purchasing their groceries )mmediatel" after purchasing their groceries Within 2 weeks of purchasing their groceries i%. What 77 What information should be obtained from the respondents? 8ome possibilities areC 3emographics =s"chographics and 9ifest"les &ttitude toward the chocolate pineapple cookies &ttitude toward the premium price %. Wh" 77 Wh" are we obtaining information from the respondents? 8ome possibilities areC 3etermine consumer attitudinal reaction to the new cookie 3etermine the market siAe %i Wa" 77 $he possible wa"s in which we are going to obtain information from the respondents. 8ome possibilities areC -bser%ational techni*ues 8canner 3ata =ersonal inter%iew 0ail inter%iew $elephone inter%iew 5lectronic inter%iew a. $his *uestion lends itself to a %ariet" of possible answers. $wo are gi%en belowC H"pothesis 1 7 6ustomers are seeking new menu items not found at Welcome. H"pothesis 2 7 &dding new menu items to WelcomeBs menu will increase patronage. b. 3esigns will %ar" but should be appropriate to the h"potheses listed in part a. 5'plorator" research should be conducted when first followed b" descripti%e research consisting of a cross7sectional sur%e". 8ince )nternet users wishing to take part in sur%e"s and other projects begin b" registering on7line at the compan"Bs Web site( the population as defined b" the researcher is different than the target population. Hence( population definition error is present. 8ampling frame 47

2.

3.

4.

error is present since the )nternet users constituting those who %olunteer are not generall" representati%e of all )nternet users. 2espondent selection error is present due to self7 selection. $he >29s of se%eral marketing research firms are gi%en on the web site for this book ,httpCJJwww.prenhall.comJphbusiness or httpCJJwww.dupree.gatech.edu/. $he students should be encouraged to report a %ariet" of research designs. ;rom the anal"sis of %arious messages from the newsgroup rec.tra%el.cruises we see that some of the factors considered b" the consumers areC ;ares or price 6on%enience of bookings 8er%ice on the cruise liners 2edress of consumer complaints 2udeness of emplo"ees or emplo"ee beha%ior or courtes" on the part of the emplo"ees ;airness on the part of the cruise line compan"

5.

GROUP DISCUSSIONS .1. &1. Q)f the research budget is limited( e'plorator" research can be dispensed with.Q 3iscuss. )n discussing this statement( students should note that projects are alwa"s subject to a budget and often a theoreticall" complete stud" is infeasible. $hus( those areas that must be cut should be anal"Aed in terms of the tradeoffs that are being made. & ke" issue in this case is the degree of understanding of the researcher in the problem en%ironment. & high le%el of e'perience in the industr" and with similar problems ma" allow the researcher to dispense with e'plorator" research under a tight budget. Howe%er( the tradeoff is that some salient factors ma" not be consideredI thus( the results ma" be seriousl" biased. &s a small group discuss the following statementC P$he researcher should alwa"s attempt to de%elop an optimal design for e%er" marketing research project.Q $here are no optimal designs( onl" good research designs can be formulated. 0an" different research designs can be designed for an" problem and each design offers ad%antages and disad%antages. $he choice is the researcherBs as to which tradeoffs sJhe will accept. P$here are man" potential sources of error in a research project. )t is impossible to control all of them. Hence( marketing research contains man" errors and we cannot be confident of the findings.Q 3iscuss these statements as a small group. 3id "our group arri%e at a consensus? )ssues that should be addressed include the potential sources of error themsel%es. What effect does each source of error ha%e on the outcomes of research? How significant is the effect on the results obtained? 2elated to this issue is there are methods to reduce error which can be incorporated in the design. ;inall"( understanding the nature of the bias in 48

.2. &2.

.3.

&3.

results enables researchers and managers to be aware of the biasB influence on the data and adjust their conclusions accordingl". )t is true that error cannot be totall" remo%ed( but the issue is what le%el of error is tolerable in order to gain information that assists decision makers in making decisions.

49