A research design is a framework or blueprint or plan for conducting the business research project.

It details the procedures necessary for obtaining the information needed to structure or To solve business research problems.

Exploratory Research Design (The direction)

Descriptive Research Design (what, where, when, how and who of a decision problem, i.e., the description of market characteristics) Causal Research Design or diagnostic or experimental (why)

ABSOLUTE AMBIGUITY

COMPLETELY CERTAIN

EXPLORATORY

CAUSAL OR DESCRIPTIVE

Exploratory Research (Unaware of Problem)

Descriptive Research (Aware of Problem)

Causal Research (Problem Clearly Defined)

Possible Situation

What new product should be developed for school lunches? What product appeal will be effective in advertising?

How should the new product be distributed?

Will an increase in the service staff be profitable?

What should be the target segment?

Should a new budget or no frills class of airfare be introduced?

Exploratory Research (Unaware of Problem)

Chocolate manufacturer wanting to identify the ten most important Possible variables his Situation consumers use to decide on whether to buy a chocolate brand

Descriptive Research (Aware of Problem) What kind of people are buying our product? who buys out competitors products

Causal Research (Problem Clearly Defined) Will buyers purchase more of our products in a new package?

Debate among the working women executives the future of

What features do Which of two buyers prefer in our advertising product? campaigns is more effective?

Research Design Classification

Exploratory Research Design Descriptive Research CrossSectional Design Single CrossSectional Design Conclusive Research Design

Causal Research

Longitudinal Design Multiple CrossSectional Design

Experiments

Acme Pharma, a well known multinational pharmaceutical company, was known for its nutritional supplements, especially Calmin, its multivitamin syrup. Calmin had always been the No 2 brand in the marketplace. When its volume of sales began to rise beyond the ambitious target in 1995, everyone was pleased. However, Ajay Bose, the marketing manager, was perplexed. The brand had always been supported well by the company, but no exceptional effort had been put in during the year. After two months, during which Calmin continued to exceed the sales target, he decided to call in the marketing research agency. The MR agency recommended some exploratory research to begin with.

Initial research conducted to clarify and define the nature of a problem Does not provide conclusive evidence Subsequent research expected

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

Another common reason for conducting exploratory research is to test concepts before they are put in the marketplace, always a very costly endeavour. In concept testing, consumers are provided with either a written concept or a prototype for new, revised or repositioned product, service or strategy.

1.

Secondary data analyzed in a qualitative way retail audit reports or Literature Reviews or Qualitative research
Survey of experts for calmin - doctors would be experts (doctors one to one basis or Focus groups analysis) Examination of analogous studies or simulation situation (case

2.

3.

How is the market growing? How are the major competitors faring? Have there been any significant changes in the marketing mix of any of the competitors? Is Calmins growth keeping pace with or outstripping the growth rate of the market?

1.

2. 3. 4.

Some marketing problems may lend themselves completely to solutions through secondary information Saves time and cost: partial answers Provides direction and framework for the investigation Provide pointers to some aspects of the issue under investigation that had not been considered earlier.

In-company information External information

doctors would be experts (doctors one to one basis or Focus groups analysis) Experts are the people who are likely to be knowledge about the subject.

This may be helpful to define the nature of the problem and provide indications of relevant variables, as well as their interrelationships. May be helpful in defining hypotheses. Examining other brand of the company that had faced a similar situation of sudden growth, with no major changes in the marketing environment.

Study three of a companys best salespeople with three of the worst, to try and figure out what drives the sales of the products and their motivations

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.

Examining the sales or market share of the calmin Demographic profile of its users (Might examine the variation in sales by age group) or (aimed at determining the patients age and the duration of the use of Calmin on the patients state of health)

Involve the collection of information from any given sample of population elements only once. 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.

A fixed sample (or samples) of population elements is measured repeatedly on the same variables A longitudinal design differs from a crosssectional design in that the sample or samples remain the same over time

Conducted to identify cause and effect relationships These studies are concerned with finding answers to the why aspect of a problem. These studies are more complex than exploratory or descriptive research

 To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon To determine the nature of the relationship between the causal variables and the effect to be predicted METHOD: Experiments

Experimentation in marketing aim at determining the impact of varying the levels of independent variables upon the dependent variable under controlled conditions.

Let us assume that the price of Calmin is reduced by 10% during a month. If sales at the end of the ensuing quarter rise by a percentage significantly higher than in the corresponding quarter the previous year, could the change be attributed to a reduction in price? What could the cause be for the increase in sale?

P.Green and T.Tull (1978) have discussed two kinds of causation Deterministic and Probabilistic

1. 2.

This defines the necessary and sufficient condition(s) for any change in an observed variable. Let us consider the case of a change in the price of Calmin. Suppose that the only change in the marketing-mix of calmin has been this change in price. If Calmin is the only brand in its category to have reduced prices and there has been no other major change, the change in the price of Calmin can safely be identified as the variable causing the change in the sales of the brand.

A probabilistic cause is a necessary but not a sufficient cause of the events occurrence. For example, let us once again consider the case of a change in the price of Calmin. Suppose that in addition to a reduction in the price of Calmin, the brands major competitor is in short supply during the same period. Since the two are independent events, the influence of one on the other is nil.

A change in the price of Calmin, although occurring at the same time as the shortage in the supply of the competing product, X, neither influences the shortage nor is influenced by it. It is, therefore, not possible to predict one from the other. At the same time, both influence and rise in sales (Rc )of calmin. In other words, the rise in sales Rc is function F of Pc, and Sx, This may be expressed as Rc = F (Pc, Sx) where Pc is the change in the price of Calmin and Sx is the non-supply of competitor X. Both these independent variable influence the sales of Calmin separately.

Research Design Classificatio n

Exploratory Research Design Descriptive Research CrossSectional Design Single CrossSectional Design Conclusive Research Design

Causal Research

Longitudinal Design Multiple CrossSectional Design

Experiments