Research Design

Ravi Shankar Rai

3-2
Research Design: Definition
A research design is a framework or
blueprint for conducting the research
project. It details the procedures
necessary for obtaining the information
needed to structure or solve research
problems.

3-3
A Classification of Research Designs
Single Cross-
Sectional Design
Multiple Cross-
Sectional Design
Research Design
Conclusive
Research Design
Exploratory
Research Design
Descriptive
Research
Causal
Research
Cross-Sectional
Design
Longitudinal
Design
3-4
Exploratory & Conclusive Research Differences
Objective:


Character-
istics:






Findings
/Results:

Outcome:

To provide insights and
understanding.

Information needed is defined
only loosely. Research process
is flexible and unstructured.
Sample is small and non-
representative. Analysis of
primary data is qualitative.


Tentative.


Generally followed by further
exploratory or conclusive
research.
To test specific hypotheses and
examine relationships.

Information needed is clearly
defined. Research process is
formal and structured. Sample is
large and representative. Data
analysis is quantitative.



Conclusive.


Findings used as input into
decision making.
Exploratory Conclusive
3-5
Objective:



Characteristics:








Methods:
A Comparison of Basic Research Designs
Discovery of ideas
and insights


Flexible, versatile



Often the front
end of total
research design

Expert surveys
Pilot surveys
Secondary data
Qualitative
research
Describe market
characteristics or
functions

Marked by the prior
formulation of
specific hypotheses

Preplanned and
structured design


Secondary data
Surveys
Panels
Observation and
other data
Determine cause
and effect
relationships

Manipulation of
one or more
independent
variables

Control of other
mediating
variables

Experiments
Exploratory Descriptive Causal
3-6
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
3-7
Methods of Exploratory Research

Pilot surveys.
Secondary data analyzed in a qualitative
way
Qualitative research
3-8
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
3-9
Methods of Descriptive Research
Secondary data analyzed in a quantitative as
opposed to a qualitative manner Surveys
3-10
Cross-sectional Designs
Involve the collection of information from any given
sample of population elements only once. An example of a
cross sectional survey would be a questionnaire that
collects data on how parents feel about Internet filtering,
as of March of 1999. A different cross-sectional survey
questionnaire might try to determine the relationship
between two factors, like religiousness of parents and
views on Internet filtering.
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.
3-11
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
The three main types of longitudinal surveys
are trend studies, cohort studies, and panel
studies.
3-12
Trend studies
Trend studies focus on a particular population, which
is sampled and scrutinized repeatedly. While samples
are of the same population, they are typically not
composed of the same people.
Trend studies, since they may be conducted over a
long period of time, do not have to be conducted by
just one researcher or research project. A researcher
may combine data from several studies of the same
population in order to show a trend. An example of a
trend study would be a yearly survey of librarians
asking about the percentage of reference questions
answered using the Internet.
3-13
Cohort studies
Cohort studies also focus on a particular population,
sampled and studied more than once. But cohort
studies have a different focus. For example, a sample
of 1999 graduates of GSLIS at the University of
Texas could be questioned regarding their attitudes
toward paraprofessionals in libraries. Five years later,
the researcher could question another sample of
1999 graduates, and study any changes in attitude. A
cohort study would sample the same class, every
time. If the researcher studied the class of 2004 five
years later, it would be a trend study, not a cohort
study
3-14
Panel studies
Panel studies allow the researcher to find out why
changes in the population are occurring, since they
use the same sample of people every time. That
sample is called a panel. A researcher could, for
example, select a sample of UT graduate students,
and ask them questions on their library usage. Every
year thereafter, the researcher would contact the
same people, and ask them similar questions, and
ask them the reasons for any changes in their habits.
Panel studies, while they can yield extremely specific
and useful explanations, can be difficult to conduct.
They tend to be expensive, they take a lot of time,
and they suffer from high attrition rates. Attrition is
what occurs when people drop out of the study.
3-15
Cross-Sectional Data May Not Show Change
Brand Purchased Time Period
Period 1 Period 2
Survey Survey
Brand A 200 200
Brand B 300 300
Brand C 500 500
Total 1000 1000
Table 3.5
3-16
Longitudinal Data May Show
Substantial Change
Brand
Purchased
in Period 1
Brand Purchased in Period 2
Brand A Brand B Brand C Total
Brand A
Brand B
Brand C
Total
100
25
75
200
50
100
150
300
50
175
275
500
200
300
500
1000
Table 3.6
3-17
Uses of Casual 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
3-18
Potential Sources of Error in
Research Designs
Surrogate Information Error
Measurement Error
Population Definition Error
Sampling Frame Error
Data Analysis Error
Respondent Selection Error
Questioning Error
Recording Error
Cheating Error
Inability Error
Unwillingness Error
Fig. 3.2
Total Error
Non-sampling
Error
Random
Sampling Error
Non-response
Error
Response
Error
Interviewer
Error
Respondent
Error
Researcher
Error
3-19
Errors in Marketing Research
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.
Random sampling error is the variation between
the true mean value for the population and the true
mean value for the original sample.
Non-sampling errors can be attributed to sources
other than sampling, and they may be random or
nonrandom: including errors in problem definition,
approach, scales, questionnaire design, interviewing
methods, and data preparation and analysis. Non-
sampling errors consist of non-response errors and
response errors.

3-20
Errors in Marketing Research
Non-response error arises when some of the
respondents included in the sample do not respond.
Response error arises when respondents give
inaccurate answers or their answers are misrecorded
or misanalyzed.
3-21
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.
Citicorp Banks on Exploratory, Descriptive,
and Causal Research
3-22
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.
3-23
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.
Citicorp Banks on Exploratory, Descriptive,
and Causal Research
3-24
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.
Citicorp Banks on Exploratory, Descriptive,
and Causal Research
3-25
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 as
a series of hurdles that 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?
Citicorp Banks on Exploratory, Descriptive,
and Causal Research
3-26
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.
Citicorp Banks on Exploratory, Descriptive,
and Causal Research
3-27
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.
Citicorp Banks on Exploratory, Descriptive,
and Causal Research
3-28
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.
Citicorp Banks on Exploratory, Descriptive,
and Causal Research
3-29
Marketing Research Proposal
Executive Summary
Background
Problem Definition/Objectives of the Research
Approach to the Problem
Research Design
Fieldwork/Data Collection
Data Analysis
Reporting
Cost and Time
Appendices
Exploratory Research Design:
Secondary Data
3-31
Primary vs. Secondary Data
Primary data are originated by a
researcher for the specific purpose of
addressing the problem at hand.
Secondary data are data which have
already been collected for purposes
other than the problem at hand. These
data can be located quickly and
inexpensively.
3-32
A Comparison of Primary & Secondary Data
Primary Data Secondary Data
Collection purpose For the problem at hand For other problems
Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
3-33
Uses of Secondary Data
Identify the problem
Better define the problem
Develop an approach to the problem
Formulate an appropriate research
design (for example, by identifying the
key variables)
Answer certain research questions and
test some hypotheses
Interpret primary data more insightfully
3-34
Criteria for Evaluating Secondary Data
Specifications: Methodology Used to
Collect the Data
Error: Accuracy of the Data
Currency: When the Data Were Collected
Objective(s): The Purpose for Which the
Data Were Collected
Nature: The Content of the Data
Dependability: Overall, How Dependable
Are the Data
3-35
Criteria for Evaluating Secondary Data
Criteria Issues Remarks
Specifications
& Methodology


Error &
Accuracy


Currency

Objective

Nature


Dependability
Data collection method, response
rate, quality & analysis of data,
sampling technique & size,
questionnaire design, fieldwork.
Examine errors in approach,
research design, sampling, data
collection & analysis, & reporting.

Time lag between collection &
publication, frequency of updates.
Why were the data collected?

Definition of key variables, units of
measurement, categories used,
relationships examined.
Expertise, credibility, reputation, &
trustworthiness of the source.
Data should be reliable,
valid, & generalizable to
the problem.

Assess accuracy by
comparing data from
different sources.

Census data are updated
by syndicated firms.
The objective determines
the relevance of data.
Reconfigure the data to
increase their usefulness.

Data should be obtained
from an original source.

3-36
A Classification of Secondary Data
Secondary Data
Ready to
Use
Requires
Further
Processing
Published
Materials
Computerized
Databases
Syndicated
Services
Internal External
3-37
Internal Secondary Data
Department Store Project
Sales were analyzed to obtain:
Sales by product line
Sales by major department (e.g., men's wear, house
wares)
Sales by specific stores
Sales by geographical region
Sales by cash versus credit purchases
Sales in specific time periods
Sales by size of purchase
Sales trends in many of these classifications were
also examined.
3-38
Type of Individual/Household Level Data
Available from Syndicated Firms
I. Demographic Data
- Identification (name, address, telephone)
- Sex
- Marital status
- Names of family members
- Age (including ages of family members)
- Income
- Occupation
- Number of children present
- Home ownership
- Length of residence
- Number and make of cars owned
3-39
Type of Individual/Household Level Data
Available from Syndicated Firms
II. Psychographic Lifestyle Data
- Interest in golf
- Interest in snow skiing
- Interest in book reading
- Interest in running
- Interest in bicycling
- Interest in pets
- Interest in fishing
- Interest in electronics
- Interest in cable television
There are also firms such as Dun & Bradstreet and American
Business Information which collect demographic data on businesses.
3-40
A Classification of Published Secondary Sources
Statistical
Data
Guides Directories
Indexes
Census
Data
Other
Government
Publications
Published Secondary
Data
General Business
Sources
Government
Sources
3-41
A Classification of Computerized Databases
Bibliographic
Databases
Numeric
Databases
Full-Text
Databases
Directory
Databases
Special-
Purpose
Databases
Computerized
Databases
Online Off-Line
Internet
3-42
Published External Secondary Sources
Guides
An excellent source of standard or recurring information
Helpful in identifying other important sources of directories,
trade associations, and trade publications
One of the first sources a researcher should consult

Directories
Helpful for identifying individuals or organizations that collect
specific data
Examples: Consultants and Consulting Organizations Directory,
Encyclopedia of Associations, FINDEX: The Directory of Market
Research Reports, Studies and Surveys, and Research Services
Directory

Indices
Helpful in locating information on a particular topic in several
different publications
3-43
Classification of Computerized Databases
Bibliographic databases are composed of
citations to articles.
Numeric databases contain numerical and
statistical information.
Full-text databases contain the complete
text of the source documents comprising the
database.
Directory databases provide information
on individuals, organizations, and services.
Special-purpose databases provide
specialized information.
3-44
Syndicated Services
Companies that collect and sell common
pools of data of known commercial value
designed to serve a number of clients.
Syndicated sources can be classified based on
the unit of measurement
(households/consumers or institutions).
Household/consumer data may be obtained
from surveys, diary panels, or electronic
scanner services.
Institutional data may be obtained from
retailers, wholesalers, or industrial firms.
3-45
A Classification of Syndicated Services
Unit of
Measurement
Households/
Consumers
Institutions
3-46
Syndicated Services: Consumers
Psychographic
& Lifestyles
General
Advertising
Evaluation
Households /
Consumers
Scanner Diary
Panels with
Cable TV
Surveys
Volume
Tracking Data
Scanner Diary
Panels
Electronic scanner
services
Purchase Media
Panels
3-47
Syndicated Services: Institutions
Audits
Direct
Inquiries
Clipping
Services
Corporate
Reports
Institutions
Retailers
Wholesalers Industrial firms
3-48
Single-Source Data
Single-source data provide integrated information on
household variables, including media consumption and
purchases, and marketing variables, such as product
sales, price, advertising, promotion, and in-store
marketing effort.

Recruit a test panel of households and meter each
home's TV sets.
Survey households periodically on what they read.
Grocery purchases are tracked by UPC scanners.
Track retail data, such as sales, advertising, and
promotion.
3-49
The NYT on the Web: A New Way
To Target Customers
To handle alternate forms of interaction and updates, The
New York Times created a separate unit, The New York
Times Electronic Media Co. The New York Times on the
Web (www.nytimes.com) has drawn over 10 million
registrants as of 2003. The database contains demographic
information, such as age, gender, income, and zip code,
that ties to an e-mail address for each of the members.
This new database marketing system can identify and
customize user groups, target Web messages to specific
segments of the population, and adjust the message based
on audience reaction. It can also increase targeting
opportunities through third-party data or additional
information supplied by the user.
3-50
For example, the database enables an automobile firm to
emphasize safety to older customers, luxury to affluent
ones, and roominess to families. The system is set up so
that near real-time data can be received from the Web that
indicates how well ads are performing relative to age,
gender, and income characteristics. Thus, this system
allows a firm to maintain up-to-date information on
audiences in order to position its products effectively.
The NYT on the Web: A New Way
To Target Customers
Exploratory Research Design:
Qualitative Research
3-52
A Classification of Business Research Data
Survey
Data
Observational
and Other Data
Experimental
Data
Qualitative Data Quantitative Data
Descriptive Causal
Business Research Data
Secondary Data Primary Data
3-53
Qualitative vs. Quantitative Research
Qualitative Research

To gain a qualitative
understanding of the
underlying reasons and
motivations

Small number of non-
representative cases

Unstructured

Non-statistical

Develop an initial
understanding
Objective




Sample


Data Collection

Data Analysis

Outcome

Quantitative Research

To quantify the data and
generalize the results from
the sample to the population
of interest

Large number of
representative cases

Structured

Statistical

Recommend a final course of
action
Table 5.1