1. Chapter Three
Research Design

2. Chapter Outline
1) Research Design: Definition and components
2) Research Design: Classification
Alternative Research Design: Relationships Among Exploratory, Descriptive and Causal Research
Potential Sources of Error in research design
Marketing Research Proposal
Online Research
Summary
Case of Citicorp Banks

3. Marketing Research Process
Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report

4. Research Design: Definition
Research design (step 3) formulated after the problem has been defined (step 1) and the approach developed (step 2).
A research design is a framework or blueprint (plan) for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems.

5. Components of a Research Design
Design the exploratory, descriptive, and/or causal phases of the research (Chapters 3 - 7)
Specify the measurement and scaling procedures (Chapters 8 and 9)
Construct and pretest a questionnaire (interviewing form) or an appropriate form for data collection (Chapter 10)
Specify the sampling process and sample size (Chapters 11 and 12)
Develop a plan of data analysis (Chapter 14)

6. A Classification of Marketing 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

7. 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 (unsure, uncertain)
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

8. A Comparison of Basic Research Designs
Objective:
Characteristics:
Methods:
Discovery of ideas and insights
Flexible, versatile
Often the front end of total research design
Expert surveys
Pilot surveys
Case studies
Secondary data:
qualitative analysis
qualitative research
Describe market characteristics or functions
Marked by the prior formulation of specific hypotheses
Preplanned and structured design
quantitative analysis
Surveys
Panels
Observation and other data
Determine cause and effect relationships
Manipulation of independent variables, measure the effect on dependent variables,
Control mediating variables
Experiments
Exploratory
Descriptive
Causal
Front end = comes first
Manipulate = control
Front end = start

9. 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

10. Uses 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
e.g. Predicting the sales of a product

11. Descriptive research design: 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 drawn of the target population, 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 type of special interest analysis of this design is Cohort Analysis.
Cohort analysis consists of a series of surveys conducted at appropriate time intervals, where the cohort serves as the basic unit of analysis.

12. Consumption of Various Soft Drinks by Various Age Cohorts
8-19
20-29
30-39
40-49
50+
Age
1960
1969
1979
1950
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
Table 3.3
Percentage consuming on a typical day
In single cross-sectional analysis, we take only one sample. If we take the sample in 1950 for instance, then the analysis comes as: consumers whose age between 8-19 consume (52.9), whose age between consume (45.2), whose age between consume (33.9), whose age between consume (23.2), and whose age 50+ consume (18.1). This type of analysis leads to infer a negative relationship between age and consumption.
In multiple cross-section analysis: in 1950 when take a sample of 8-19 years old and record their consuming in soft drinks 52.9, in 1960 we take a sample of the same age and record their consuming in 1969, we take a third sample of the same age are record their soft drinks consuming of soft drinks (73.2) and son on. We find that the consumption of the 8-19 age consumers increases with the passage of time. This type of analysis leads to infer an increment of consumption for each of age group with the passage of time.
In cohort cross-sectional analysis. In 1950 we take the sample whose age 8-19 and record their consumption to be (52.9). In 1960, the age of these consumers increased by 10 years, so, we take a sample of the consumers whose age limits became and record their consumption as (60.7). In 1969, the age of those consumers increased by 10 years, we the a sample of the consumers whose age limits became and record their consumption as (67.7). This type of analysis leads to infer an increment of consumption for the age cohort (C6) with the passage of time.
Note: the longitudinal analysis is done in the same way as cohort analysis, except the sample participants. The sample participants in the longitudinal analysis are the same members (panel), but in the cohort analysis each sample has different members. The longitudinal analysis leads to infer the change that happened on the same sample respondents with the passage of time.

13. Descriptive Research Design Longitudinal Designs
A fixed sample (or samples) of population elements is measured repeatedly on the same variables. (the same people are studied over time and the same variables are measured).
A longitudinal design differs from a cross-sectional design in that the sample or samples participants remain the same over time.
Longitudinal design study provides changes that take place over time.

14. Multiple Cross-Sectional vs. Longitudinal
Figure 3.6 Cross Sectional vs. Longitudinal Designs
Different Sample Surveyed at T2
Sample Surveyed at T1
Same Sample also Surveyed at T2 T1 T2
Multi Cross- Sectional Design
Longitudinal Design
Time
In T2, different sample means different respondents, and same sample means same respondents.

15. Cross-Sectional Design Longitudinal Design
Relative Advantages and Disadvantages of Longitudinal and Cross-Sectional Designs
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.
Table 3.4
Detecting changes= + for longitudinal because the same sample (people) are studied overtime.
Large amount of data = (+) for longitudinal because panel members (sample units) are compensated for their participation.
Accuracy = (+) for longitudinal because panels rely on continuous recording of data in a diary, place less reliance on the respondents’ memory.
Representing sampling = (-) for longitudinal because it depends on small samples and only persons who agree to participate including in the panel, often because of money.
Response bias = (-) for longitudinal because panel members tend to increase the measured behavior such as food purchasing.

16. Cross-Sectional Data May Not Show Change
Brand Purchased Time Period
Period 1 Period 2
Survey Survey
Brand A
Brand B
Brand C
Total
Table 3.5
The cross-sectional data reported reveal that purchases of brands A, B, and C remain the same in the time periods 1 and 2.

17. 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 200
Brand B 300
Brand C 500
Total
100 25 75
200 50
150
300
175
275
500
1000
Because the sample in both periods became same, so we can see the distribution is different in period 2 compared to period one. For instance, the people who bought 200 units of brand A in period 1 have distributed their purchase on the three brands A, B, and C. as 100, 50, and 50 units respectively, and so on regarding the other brands. This analysis shows the switching that has been happened among the brands in the second period, whereas multiple-cross sectional analysis does not show the switching because in the second period it deals with different sampling unit.

18. 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.

19. Alternative Research Designs
Exploratory Research
Secondary Data Analysis
Focus Groups
Conclusive Research
Descriptive/Causal
(a)
(b)
(c)
(a) begin with exploratory when little is known about the problem situation and the problem needs to be defined more precisely.
(b) Conclusive research could be done without prior exploratory research when the problem and the approach are well know. Example. A consumer satisfaction survey that is conducted quarterly need not to begin with an exploratory phase each quarter.
(c) Exploratory research may follow descriptive or causal research. Example: descriptive or causal research findings are hard for managers to interpret. Exploratory research may provide more insights to help understand theses findings.

20. 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
Total Error
Non-sampling Error
Random Sampling Error
Non-response Error
Response Error
Interviewer Error
Respondent Error
Researcher Error
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, meaning the sample is not representative.
Non-sampling errors can be attributed to sources other than sampling, 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.
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 misreported or misanalysed.
Surrogate information error means collected data other than the planned ones.

21. 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

23. Example: Research design The case of Citicorp Banks

24. 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:

25. 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.

26. Citicorp Banks on Exploratory, Descriptive, and Causal Research
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.

27. Citicorp Banks on Exploratory, Descriptive, and Causal Research
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.

28. Citicorp Banks on Exploratory, Descriptive, and Causal Research
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

29. Citicorp Banks on Exploratory, Descriptive, and Causal Research
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 passed all the listed hurdles to step 5.

30. Citicorp Banks on Exploratory, Descriptive, and Causal Research
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 (describe) 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.

31. Citicorp Banks on Exploratory, Descriptive, and Causal Research
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.

32. Questions for Revision
discuss three differences between exploratory research and conclusive research (slide 7)
Compare between multi-cross sectional and longitudinal designs in: a. detecting change and b. survey samples and sampling representation. (slide 14-15)
What is the relationship among exploratory, descriptive, and causal research. (slide 19)
What potential sources of non-sampling errors can affect a research design. (slide 20)
List the major components of the research design. (slide 22)