1. Chapter III
Research Design

2. Chapter Outline 1) Overview 2) Research Design: Definition
3) Research Design: Classification
4) Exploratory Research
5) Descriptive Research
i. Cross-Sectional Design
ii. Longitudinal Design
iii. Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs
6) Causal Research
7) Relationships Among Exploratory, Descriptive, and Causal Research

3. Chapter Outline (cont.)
8) Potential Sources of Error
i. Random Sampling Error
ii. Non-sampling Error
a. Non-response Error
b. Response Error
9) Budgeting and Scheduling
10) Marketing Research Proposal
11) International Marketing Research

4. Chapter Outline (cont.)
12) Ethics in Marketing Research
13) Internet and Computer Applications
15) Focus on Burke
14) Summary
15) Key terms and Concepts
16) Acronyms

5. definition Framework or blueprint
Details the procdure discussed in prv step
“nuts and bolts ” of implementing that approach.

6. A Classification of Marketing Research Designs
Fig. 3.1
Research Design
Conclusive Research Design
Exploratory Research Design
Descriptive Research
Casual Research
Cross-Sectional Design
Longitudinal Design
Single Cross-Sectional Design
Multiple Cross-Sectional Design 12

7. Tasks Describe the exploratory phase of research. Define info needed
Specify measurement and scaling procedure
Construct questionaries
Sampling process and size.

8. Difference between Exploratory and
Conclusive Research
Table 3.1
Exploratory
Conclusive
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.

9. A Comparison of Basic Research Designs
Table 3.2
Exploratory
Descriptive
Causal
Objective:
Characteristics:
Methods:
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

10. Consumption of Soft Drinks by Various Age Cohorts
Table 3.3
Age
1950
1960
1969
1979
8-19
20-29
30-39
40-49
50+
52.9
45.2
33.9
23.2
18.1
62.6
60.7
46.6
40.8
28.8 C1
73.2
76.0
67.7
58.6
50.0 C2
81.0
75.8
71.4
67.8
51.9 C3 C8 C7 C6 C5 C4
C1: cohort born prior to 1900
C2: cohort born
C3: cohort born
C4: cohort born
C5: cohort born
C6: cohort born
C7: cohort born
C8: cohort born

11. Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Table 3.4
Evaluation Criteria
Cross-Sectional Design
Longitudinal Design
Detecting Change
Large amount of data collection
Accuracy
Representative Sampling
Response bias - + + -
Note: A “+” indicates a relative advantage over the other design, whereas a “-” indicates a relative disadvantage.

12. Cross-Sectional Data May
Not Show Change
Table 3.5
Brand Purchased Time Period
Period 1 Period 2
Survey Survey
Brand A
Brand B
Brand C
Total

13. Show Substantial Change
Longitudinal Data May
Show Substantial Change
Table 3.6
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

14. NASCAR Tries to Shed Redneck Image
RIP 3.1
The National Association of Stock Car Auto Racing (NASCAR) in the past has appealed to Southerners with lower incomes that work in laborer-type jobs. NASCAR, in an attempt to increase its audience, chose to make-over its stereotyped image and used exploratory and descriptive research to generate ideas for reaching a more affluent market.

15. NASCAR conducted exploratory research to identify ways to penetrate the non-race market, reach younger fans, and build its brand image across the nation.
Extensive focus groups revealed that:
(1) NASCAR had a rural sports image,
(2) that this image was not necessarily negative, and
(3) companies that supported sports were viewed positively.

16. Market Characteristics
RIP 3.1 Contd.
Market Characteristics
Survey research showed that:
29% of fans had income over $50,000
27% worked as professionals or managers
73% had a positive rural sports image of NASCAR
71% of fans purchased products of companies that support the sport

17. NASCAR, of course, sought to increase these percentages and developed marketing plans that would build on the image of NASCAR as a rural sport by emphasizing that most of America is suburbs and small towns.
NASCAR moved to reach all of America, not just the traditional Southern market.

18. Potential Sources of Error in
Research Designs
Fig. 3.2
Total Error
Random Sampling Error
Non-sampling Error
Response Error
Non-response Error
Researcher Error
Interviewer Errors
Respondent Error
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 13

19. Citicorp Banks on Exploratory, Descriptive, and Causal Research
Marketing Research at Citicorp is typical in that it is used to measure consumer awareness of products, monitor their satisfaction and attitudes associated with the product, track product usage and diagnose problems as they occur. To accomplish these tasks Citicorp makes extensive use of exploratory, descriptive, and causal research. Often it is advantageous to offer special financial packages to specific groups of customers. In this case, a financial package is being designed for senior citizens.
The following seven step process was taken by marketing research to help in the design.

20. RIP 3.2 Contd.
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.

21. 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.

22. RIP 3.2 Contd.
3) The next stage of research was brainstorming. This involved the formation of many different financial packages aimed for the target market. In this case, a total of 10 ideas were generated.

23. 4) The feasibility of the 10 ideas generated in step 3 was then tested
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 it?
• Does the idea fit into the overall strategy of
Citicorp?

24. • Is there an available description of a specific target
RIP 3.2 Contd.
• 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.

25. 5) A creative work-plan was then generated
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.
RIP 3.2 Contd.

26. 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.

27. The Greenfield of Online Research
RIP 3.3
Greenfield Online Research Center, Inc. ( based in Westport, Connecticut, is a subsidiary of the Greenfield Consulting Group. The Online Research Center conducts focus groups, surveys, and polls over the Internet. The company has built up a “panel” of close to 200,000 Internet users, from which it draws survey samples. The samples may be used for descriptive research designs like single or multiple cross sectional designs, as well as longitudinal designs. Causal designs can also be implemented. Respondents may also be chosen from the registered Internet users.

28. RIP 3.3 Contd.
Internet users wishing to take part in surveys and other projects begin by registering online at the company’s Web site. The registration consists of a “sign-up survey” that asks for address, type of computer used, personal interests and information about the respondent’s household. Once an Internet user is registered, Greenfield Online matches the user with research studies that are well-suited to his or her interests.
Incentives to take part in focus groups or special surveys are offered by the companies whose products or services are being researched. This incentive is cash or valuable prizes. Incentives are also offered to Internet users to encourage them to register with Greenfield’s Internet panel. New registrants automatically qualify for prizes that are awarded in monthly drawings.