1. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Research Design
Chapter 3
Basic Marketing Research
Using Microsoft® Excel
Data Analysis
Canadian Edition
Burns, Bush & Nash
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2. Professor Steven Litt steven.litt@senecac.on.ca
MRK455
Keep your eyes open!
Market Research:
Each Rsch method has its strengths. You must choose best method for a situation. Eg Folgers sssspop was from a diary panel; Pfizer advertising Viagra to spouses was from Focus Groups.
Lots of good ideas validated via Quant & bad ideas stopped. But data deceive eg items for Fad, Frivolous, Impulse, Celeb, EcoConscious, Socially Resp

3. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Learning Objectives
Describe the role of research design in the marketing research process.
Characterize exploratory research design.
Characterize descriptive research design.
Characterize causal research design.
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4. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Research Design
Research design is the master plan
Specifies methods, procedures
How you will collect & analyze data
Many different methods possible
Must consider problem & research objectives
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5. Significance of Research Design
“First rule of good research” (David Singleton)
Every research problem is unique
Need an appropriate approach
Several basic approaches workable
Select based on the problem, objectives
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6. Types of Research Design
Research usually has one of three objectives:
Gain background information for hypotheses
Measure the state of a variable of interest
Test hypotheses about relationships
Key factor: how much is already known
Less you know, more likely exploratory
Much known, lean to causal
May need multiple designs
Forget Blackberry hype- but remember BackVaryHype
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7. Exploratory Research Unstructured, informal to get background
No formalized objectives, or questions
Often done first in a project
May involve simply reading or observing
Very flexible method
To get the lay of the land
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8. Uses of Exploratory Research
Gain Background Information:
Helps formulate the problem
Gain current, relevant information
Define Terms: concepts, terms can be clarified
Clarify Problems and Hypotheses:
Generate hypotheses to test quantitatively
Establish Research Priorities:
Prioritize important topics
Exploratory brings you closer to consumers- how they use product, smiles & irks, etc
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9. Exploratory Research Methods
Secondary data analysis
Experience surveys
Insightful, not always representative
Case analysis: similar previous situations
Focus groups: unstructured, spontaneous
Guided by a moderator, gain insights
Limited sample, but many ideas
Many other techniques also included
Focus Groups FEEL unstructured, but BIG planning & discipline is involved
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10. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Descriptive Research
Answers to:
Who (buys)
What (brands)
Where (they shop)
How (they discover)
When (they buy)
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11. Types of Descriptive Research
Cross-sectional studies
Sample at one point in time; snapshot
Very common in marketing research
Sample surveys
Cross-sectional, and representative of Canada, e.g.
Often used to test ad concepts
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12. Types of Descriptive Research [cont’d]
Longitudinal studies
Measure a population over time
Often research panel is used
Continuous panel: same questions over time
Track grocery purchases, TV viewing
Discontinuous panels: different questions
Broad range of topics
Longitudinal not only alerts you fast to big changes, it’s good for noting small shifts, subtle cues too gradual to see w infrequent rsch
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13. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Causal Research
If X occurs, Y will follow
Seeking cause-and-effect relationships
Run ad in black-and-white, then color
Different results?
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14. Experiments in Causal Research
Change independent variable
Expect change in dependent variable
Increase advertising ( independent)
Result: greater sales (dependent)
Extraneous variables can affect this
Change in weather, other activities
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15. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Experimental Design
Procedure for creating an experiment
Change must only be due to independent variable
Means you’re sure what caused this change
That is a “true” experimental design
Let’s explore several designs
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16. Quasi-Experimental Designs
Do not control for extraneous variables
After-only design
Change the independent variable
After period of time measure dependent variable
One-group, before-after design
Measure dependent variable before and after
Change independent variable after first measured
Also called ‘test vs base’
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17. True Experimental Design
Before-After with Control Group
Randomly divide subjects into two groups
Control group and experimental group
Independent variable only for experimental
Can identify “experimental effect”
Important to use valid experimental designs
Aka ‘Test vs Control’
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18. Validity of Experiments
An experiment is valid if:
Change in dependent variable due to change in the independent variable
Results apply to the “real world”
Internal validity checks experimental design
External validity looks at generalizability
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19. Have you ever been in one of these?
Types of Experiments
Have you ever been in one of these?
Broadly, laboratory or field
Laboratory experiment in artificial setting
Controls extraneous variables
View ads in theatre setting
Field experiment in natural setting
Tests in a supermarket
Run ads in test city, evaluate results
Test market
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20. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Test Marketing
Test market for product and natural setting
Test sales potential, marketing mix variations
Costly, but not compared to national rollout
Use different outlets in different cities
Data for decision on national outlet choice
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21. Copyright © 2012 Pearson Canada Inc., Toronto, Ontario
Types of Test Markets
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22. Types of Test Markets (cont’d)
Standard test market uses normal channels
Tips hand to competitors
Controlled test market by outside firm
Guaranteed shelf space, fast access
Electronic test markets use scannable cards
Consumer presents card when purchasing
Simulated test markets use computer model
Relatively fast, confidential, but less accurate
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23. “Lead Country” Test Markets
Test in a specific country
Results good predictors for continent
Many products global, can work well
South Korea a favourite country for this
Why South Korea?
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24. Selecting Test-Market cities
Must consider several factors
Representativeness: must represent whole territory of plant market
Degree of isolation: removed from external influences, e.g. media
Distribution & promotion can be managed
Need local cooperation
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25. Pros & Cons of Test Marketing
Advantages:
Best information possible before rollout
Good forecast, can pre-test marketing mix
Disadvantages:
May not give correct information
Competitors may sabotage test market
Costly to do, ethical issues
Sabotage is far more common than you may think
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