Research Design

Research Design: Definition

A research design is a framework or blueprint

for conducting the business research project.

It details the procedures necessary for obtaining

the information needed to structure or solve
marketing research problems.
 Components of a Research Design
• Define the information needed
• Design the exploratory, descriptive, and/or
causal phases of the research
• Specify the measurement and scaling procedures
• Construct and pretest a questionnaire
(interviewing form) or an appropriate form for
data collection
• Specify the sampling process and sample size
• Develop a plan of data analysis
 A Classification of Marketing
Research Designs
Research Design

Exploratory Conclusive
Research Research
Design Design
Descriptive Causal
Research Research
 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 Information needed is clearly

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

Findings/ Conclusive
Results: Tentative

Outcome: Findings used as input into

Generally followed by further decision making
exploratory or conclusive
research
A Comparison of Basic Research Designs
Exploratory Descriptive Causal
Objective: Discovery of Describe Determine
ideas and characteristics or cause and
insights functions effect
relationships
Characteristics: Marked by the prior
Flexible, versatile formulation of Manipulation of
specific hypotheses independent
variables,
Preplanned and effect on
Often the front structured design dependent
end of total variables
research design
Secondary data:
Methods: Expert surveys quantitative analysis
Pilot surveys Surveys Control
Case studies Panels mediating
Secondary data: Observation and variables
qualitative other data
 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
 Methods of Exploratory Research

• Survey of experts
• Pilot surveys
• Secondary data analyzed in a qualitative
way
• Qualitative research
 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
 Methods of Descriptive Research

• Secondary data analyzed in a quantitative, as

opposed to a qualitative, manner
• Surveys
• Panels
• Observational and other data
 Cross-Sectional Designs

• 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.
 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
 Cross-Sectional vs. Longitudinal
Cross- Sample
Sectiona Surveye
l Design d at T1

Same
Sample Sample
Longitudina Surveyed also
l Design at T1 Surveyed
at T2

Time T1 T2
 Uses of Causal 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
 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
 Potential Sources of Error in Research Designs

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
 Errors in Business 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.
 Errors in Business 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.
 Research Design
Exploratory and Qualitative
Why Conduct Exploratory Research?

• Diagnose a situation

• Screening of alternatives

• Discover new ideas

Methods of Exploratory Research

• Experience surveys
• Secondary data analysis
• Case studies
• Pilot studies
Experience Surveys
• Ask knowledgeable individuals about a
particular research problem
– most are quite willing

Secondary Data Analysis

• Data collected for a purpose other than the
project at hand
• Economical
• Quick source for background information
Case Study Method
• Intensely investigates one or a few
situations similar to the problem
• Investigate in depth
• Careful study
• May require cooperation
Pilot Study
• A collective term
• Any small scale exploratory study that uses
sampling
• But does not apply rigorous standards
Pilot Studies

• Focus Group Interviews

• Projective Techniques
• In-Depth Interviews
A Classification of Business Research Data
Business Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Causal

Survey Observational Experiment

Data and Other al Data
Data
 Qualitative Vs. Quantitative Research
Qualitative Research Quantitative Research

Objective To gain a qualitative To quantify the data and

understanding of the generalize the results
underlying reasons and from the sample to the
motivations population of interest

Sample Small number of non- Large number of

representative cases representative cases

Data Unstructured Structured

Collection
Non-statistical Statistical
Data Analysis
Develop an initial Recommend a final
Outcome understanding course of action
 A Classification of Qualitative
Research Procedures
Qualitative Research
Procedures

Direct (Non- Indirect

disguised) (Disguised)

Projective
Depth Interviews Techniques
Focus Groups
 Characteristics of Focus Groups

Group Size 8-12

Group Composition Homogeneous,

respondents,
prescreened

Physical Setting Relaxed, informal atmosphere

Time Duration 1-3 hours

Recording Use of audiocassettes and

videotapes

Moderator Observational, interpersonal,

and communication skills of the
moderator
Procedure for Planning and Conducting Focus Groups

Determine the Objectives and Define the Problem

Specify the Objectives of Qualitative

Research
State the Objectives/Questions to be Answered by Focus
Groups
Write a Screening Questionnaire

Develop a Moderator’s Outline

Conduct the Focus Group Interviews

Review Tapes and Analyze the Data

Summarize the Findings and Plan Follow-Up Research or

Action
 Moderator’s Presentation
PREAMBLE (5 minutes)
• Thanks and welcome
• Nature of a focus group (informal, multiway, all views acceptable,
disagree)
• There are no right or wrong answers – all about finding out what
people think
• Audio and video recording
• Help self to refreshments
• Going to be talking about Product
• Questions or concerns?
INTROS and WARM-UP (5 minutes)
USAGE (15 minutes)
• I’d like to understand a bit about how you typically use your Product
• How many times a day do you drink it?
• What are some of the most common types of occasions you drink it?
• BRIEFLY EXPLORE:
If we were to take away your Product from you, what difference
would that make to your life?
BRIEFLY EXPLORE PAST PURCHASE (15 minutes)
• PAST SELECTION PROCESS
• PAST CRITERIA
• USAGE OF Product FEATURES (20 minutes)
DESIRED FEATURES (10 minutes)
• MOTIVATIONS FOR (20 minutes)
EXPLORE
• What were ALL the factors involved in that decision?
• What was the single biggest reason?
CLOSING EXERCISE (10 minutes)
• Finally, I’d like your creativity for a few minutes – to come up with
ideas…
• Don’t worry about whether it’s a good idea or a bad idea.
• The only word I’m going to ban is ‘free’!
• Supposing a manufacturer wanted to encourage you to buy tomorrow…
• What could they do?
• Just call out anything at all that occurs to you – obvious, profound,
serious, silly, whatever …

• EXPLORE and REFINE

Thank the respondents and close the session
Depth Interview : Hidden Issue Questioning
In hidden issue questioning, the focus is not on
socially shared values but rather on personal “sore
spots;” not on general lifestyles but on deeply felt
personal concerns.

fantasies, work lives, and social lives

historic, elite, competitive activities

 Depth Interview Techniques: Symbolic
Analysis

Symbolic analysis attempts to analyze the symbolic meaning of

objects by comparing them with their opposites. The logical
opposites of a product that are investigated are: non-usage of the
product, attributes of an imaginary “non-product,” and opposite
types of products.

“What would it be like if you could no longer use airplanes?”

“Without planes, I would have to rely on e-mails, letters and long-

distance calls.”
Hidden Issue Questioning

• What does the student dislike about his/her

food?
• What does the student dislike about his/her
car?
Symbolic Analysis

• What is the opposite of Coca-Cola?

• What would you do without car ?
 Depth interview is conducted on a one-on-one basis and the
interviewer tries to uncover the respondent’s underlying
motivations, beliefs, attitudes, and feelings on a topic.

In addition, mention that depth interviews can be effectively

employed in special problem situations, such as those
requiring:

1. Detailed probing of the individual.

2. Discussions on topics considered confidential, sensitive, or
embarrassing.
3. Situations where strong social norms exist and the individual
may be easily swayed by group response.
4. Detailed understanding of complicated behavior.
5. Interviews with professional people.
6. Interviews with competitors who are unlikely to reveal the
information in a group setting.
7. Situations where the product consumption experience is
sensory in nature affecting mood states and emotions.
Advantages:
• 1. Great depths of insights can be uncovered.
• 2. It associates the responses directly with the
respondent.
• 3. There is no social pressure to conform to group
response.
Disadvantages:
1. Skilled interviewers capable of conducting depth
interviews are expensive and difficult to find.
• 2. The lack of structure makes the results very
susceptible to the influence of the interviewer.
• 3. The quality and completeness of the results
depends very heavily on the skills of the interviewer.
• 4. The data obtained is problematic to analyze and
interpret.
 Definition of Projective Techniques

• An unstructured, indirect form of questioning

that encourages respondents to project their
underlying motivations, beliefs, attitudes or
feelings regarding the issues of concern.
• In projective techniques, respondents are asked
to interpret the behavior of others.

• In interpreting the behavior of others,

respondents indirectly project their own
motivations, beliefs, attitudes, or feelings into
the situation.
 Word Association
In word association, respondents are presented with a list
of words, one at a time, and asked to respond to each with
the first word that comes to mind. The words of interest,
called test words, are interspersed throughout the list
which also contains some neutral, or filler words to
disguise the purpose of the study. Responses are analyzed
by calculating:
(1) the frequency with which any word is given as a
response;
(2) the amount of time that elapses before a response is
given; and
(3) the number of respondents who do not respond at all
to a test word within a reasonable period of time.
 Word Association
EXAMPLE : For Departmental Store Study

STIMULUS MRS. A MRS. B

Location

Parking

Shopping

Quality

Price
 Word Association
EXAMPLE: Study woman attitude towards detergent

STIMULUS MRS. M MRS. C

washday everyday ironing
fresh and sweet clean
pure air soiled
scrub don't; husband does clean
filth this neighborhood dirt
bubbles bath soap and water
family squabbles children
towels dirty wash
Mrs. M association suggests that she is
resigned to dirt. She sees dirt as inevitable
and doesn't want to do much about it. She
doesn't do hard cleaning, nor does get
pleasure from her family.

Mrs. C sees dirt too, but is energetic, factual

minded, and less emotional. She is actively
ready to combat dirt and uses soap and
water as her weapon
 Completion Techniques
In sentence completion, respondents are given incomplete
sentences and asked to complete them. Generally, they are asked
to use the first word or phrase that comes to mind.

A person who shops at Big Bazar is ______________________

J. C. Penney is most liked by _________________________

When I think of shopping in a departmental store, I ________

A variation of sentence completion is paragraph completion, in

which the respondent completes a paragraph beginning with the
stimulus phrase.
 Completion Techniques

In story completion, respondents are given

part of a story – enough to direct attention to
a particular topic but not to hint at the ending.
They are required to give the conclusion in
their own words.
 A Classification of Survey Methods
Survey
Methods

Telephone Personal Mail Electronic

In-Home Mall Computer- E-mail Internet

Intercept Assisted Personal
Interviewing

Traditional Computer-
Mail Mail
Telephone Assisted
Interview Panel
Telephone
Interviewing
Criteria for Evaluating Survey Methods
TASK FACTORS
Diversity of Questions and Flexibility of Data Collection
• The flexibility of data collection is determined primarily by
the extent to which the respondent can interact with the
interviewer and the survey questionnaire. The diversity of
questions that can be asked in a survey depends upon the
degree of interaction the respondent has with the interviewer
and the questionnaire, as well as the ability to actually see the
questions.

Use of Physical Stimuli

• The ability to use physical stimuli such as the product, a
product prototype, commercials, or promotional displays
during the interview.
 Criteria for Evaluating Survey Methods

Sample Control
• Sample control is the ability of the survey mode to reach the units
specified in the sample effectively and efficiently.

Quantity of Data
• The ability to collect large amounts of data.

Response Rate
• Survey response rate is broadly defined as the percentage of the
total attempted interviews that are completed.
 Criteria for Evaluating Survey Methods

SITUATIONAL FACTORS

Control of the Data Collection Environment

• The degree of control a researcher has over the
environment in which the respondent answers the
questionnaire.

Control of Field Force

• The ability to control the interviewers and supervisors
involved in data collection.
Criteria for Evaluating Survey Methods
Potential for Interviewer Bias
• The extent of the interviewer's role determines the
potential for bias.

Speed
• The total time taken for administering the survey to
the entire sample.

Cost
• The total cost of administering the survey and
collecting the data.
 Criteria for Evaluating Survey Methods

RESPONDENT FACTORS
Perceived Anonymity
• Perceived anonymity refers to the respondents' perceptions
that their identities will not be discerned by the interviewer
or the researcher.

Social Desirability/Sensitive Information

• Social desirability is the tendency of the respondents to give
answers that are socially acceptable, whether or not they are
true. With some exceptions, obtaining sensitive information
is inversely related to social desirability.
Criteria for Evaluating Survey Methods

Low Incidence Rate

• Incidence rate refers to rate of occurrence of
persons eligible to participate in the study.

Respondent Control
• Methods that allow respondents control over the
interviewing process will solicit greater
cooperation and are therefore desirable.
 A Comparative Evaluation of Survey Methods
Criteria Telephone/ In-Home Mall CAPI Mail Mail E-Mail Internet
Intercept Surveys Panels
Table CATI Interviews Interviews
6.2
TASK
FACTORS
Diversity of questions Low High High Moderate Moderate Moderate Moderate Moderate
and flexibility

to to high to high
moderate

Use of physical stimuli Low Moderate High High Moderate Moderate Low Moderate

to high
Sample Moderate Potentially Moderate Moderate Low Moderate Low Low to
Control to to
high high high moderate

Quantity of data Low High Moderate Moderate Moderate High Moderate Moderate

Response Moderate High High High Low High Low Very low
rate
 A Comparative Evaluation of Survey Methods
Criteria Telephone In-Home Group- CAPI Mail Mail E-Mail Internet
Intercep Surveys Panels
t

SITUATIONAL    
CATI  
Interview  
Interviews          
FACTORS s
Control of data collection   Moderate Moderate High High Low Low Low Low
environment
  to high

Control of field force   Moderate Low Moderate Moderate High High High High

Potential for interviewer bias   Moderate High High Low None None None None

Speed   High Moderate Moderate Moderate Low Low High Very

  to high to high to high

moderate

Cost   Moderate High Moderate Moderate Low Low Low Low

    to high to high to
 A Comparative Evaluation of Survey Methods
Criteria Telephone In-Home Mall- CAPI Mail Mail E-Mail Internet
/ Intercept Surveys Panels

RESPONDENT    
CATI  
Interview  
Interviews          
FACTORS s
Perceived anonymity of the   Moderate Low Low Low High High Moderate High
respondent
Social desirability   Moderate High High Moderate Low Low Moderate Low

to High

Obtaining sensitive High Low Low Low High Moderate Moderate High
information

to to high
moderate

Low incidence rate High Low Low Low Moderate Moderate Moderate High

Respondent control Low Low Low Low High High High Moderate

      to to high
moderate
 Concept of Causality
A statement such as "X causes Y" will have the
following meaning to an ordinary person and to a
scientist.
____________________________________________________
Ordinary Meaning Scientific Meaning
____________________________________________________
X is the only cause of Y. X is only one of a number of
possible causes of Y.
X must always lead to Y The occurrence of X makes the
(X is a deterministic occurrence of Y more probable
cause of Y). (X is a probabilistic cause of Y).

It is possible to prove We can never prove that X is a

that X is a cause of Y. cause of Y. At best, we can
infer that X is a cause of Y.
 Conditions for Causality

• Concomitant variation is the extent to which a cause, X,

and an effect, Y, occur together or vary together in the way
predicted by the hypothesis under consideration.
• The time order of occurrence condition states that the
causing event must occur either before or simultaneously
with the effect; it cannot occur afterwards.
• The absence of other possible causal factors means that the
factor or variable being investigated should be the only
possible causal explanation.
Evidence of Concomitant Variation between:
Purchase of Fashion Clothing and Education

Purchase of Fashion Clothing, Y

High Low
Education, X

High 363 (73%) 137 (27%) 500 (100%)

Low 322 (64%) 178 (36%) 500 (100%)

 Purchase of Fashion Clothing By
Income and Education

Low Income High Income

Purchase Purchase
High Low High Low
Education

Education
High 122 (61%) 78 (39%) 200 (100%) High 241 (80%) 59 (20%) 300

171 (57%) 129 (43%) 300 (100%) Low 151 (76%) 49 (24%) 200
Low
 Definitions and Concepts
• Independent variables are variables or alternatives that are
manipulated and whose effects are measured and compared,
e.g., price levels.
• Test units are individuals, organizations, or other entities
whose response to the independent variables or treatments is
being examined, e.g., consumers or stores.
• Dependent variables are the variables which measure the
effect of the independent variables on the test units, e.g.,
sales, profits, and market shares.
• Extraneous variables are all variables other than the
independent variables that affect the response of the test
units, e.g., store size, store location, and competitive effort.
 Secondary Data
Data gathered and recorded by someone
else prior to and for a purpose other than the
current project
Is often:
• Historical
• Already assembled
• Needs no access to subjects
 Advantages of Secondary Data
• Inexpensive
• Obtained Rapidly
• Information is not Otherwise Accessible
Disadvantages of Secondary Data
• Uncertain Accuracy
• Data Not Consistent with Needs
• Inappropriate Units of Measurement
• Time Period Inappropriate (Dated)
Criteria for Evaluating Secondary Data

Criteria Issues
Remarks
Specifications Data collection method, Data should be
& response rate, quality & reliable, valid, &
Methodology analysis of data, sampling generalizable to the
technique & size, questionnaire problem.
design, fieldwork.
Error & Examine errors in approach, Assess accuracy by
Accuracy research design, sampling, data comparing data from
collection & analysis, & different sources.
reporting.
Currency Census data are
Time lag between collection & updated by syndicated
Objective publication, frequency of firms.
updates. The objective
Nature Why were the data collected? determines the
relevance of data.
Definition of key variables, units Reconfigure the data
Dependability of to increase their
measurement, categories used, usefulness.
relationships examined.
Expertise, credibility, Data should be
Objectives for Secondary Data Studies

• Fact Finding
• Model Building
• Data Based Marketing
Common Research Objectives
for Secondary Data Studies
Fact Finding - Identifying consumption patterns
- Tracking trends

Model building - Estimating market potential

- Forecasting sales
- Selecting trade areas and sites

Data Base Marketing - Development of Prospect Lists

- Enhancement of Customer Lists
 Fact Finding
• Identify consumer
behavior
• Trend analysis
• Environmental
scanning
 Model Building
• Market potential
• Forecasting sales
• Analysis of trade areas
 Data Based Marketing
• Practice of maintaining a customer data
base
• Names
• Addresses
• Past purchases
• Responses to past efforts
• Data from numerous sources
 Traditional Distribution
Indirect Channel Using Intermediary

Information Producer
(Government)

Library
(Storage
documents
and books)

Company User
 Traditional
Distribution
Direct Channel

Information Producer
(Government)

Company User
 Modern Distribution of Secondary Data

Information producer A Information producer B Information producer C

(government- (Grocery store-retail (Audience research company-
census data) scanner data) television viewing data)

Vendor/external
distributor
(Computerized database
integrating all three data
sources for any
geographic area)

Information producer A
(government-
census data)
 External Data
• Created, recorded, or generated by an entity
other than the researcher’s organization
• Government
• Trade associations
• Newspapers and journals
 External Data
• Libraries
• The Internet
• Vendors
• Producers
• Books and periodicals
 External Data
• Government sources
• Media sources
• Commercial sources
 Commercial Sources
• Market share data companies like A.C.
Nielsen provide information about sales
volume and brand share over time
• Demographic and census updates—many
organizations supply census updates, in
easy-to-use or custom formats
 Commercial Sources
• Attitude and public opinion research—
syndicated services report the findings of
opinion polls
• Consumption and purchase behavior data
• Advertising research—readership and
audience data
 Single Source Data
• Diverse types of data offered from a single
source
- e.g., television viewing and scanner
purchase data
 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