1. Chapter Three
Research Design

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

3. A Classification of Marketing Research Designs
Single Cross-Sectional Design
Multiple Cross-Sectional Design
Fig. 3.1
Research Design
Conclusive Research Design
Exploratory Research Design
Descriptive Research
Causal Research
Cross-Sectional Design
Longitudinal Design

4. Exploratory and Conclusive research designs
Exploratory research is used in situations where the problem may have to be defined more precisely, relevant courses of action identified, hypotheses formulated, or additional insights gained before an approach can be developed.

5. Exploratory and Conclusive research designs
The owner of The Cupcake King has many, many ideas for improving the bakery's sales, but isn't sure which will work.
They think increasing the flavours of cupcakes the bakery sells will bring in more customers, but know they need more information.
They intend to conduct ER to investigate whether expanding their cupcake selection will lead to an increase in sales, or if there is a better idea.

6. Methods of Exploratory Research
Survey of experts (discussed in Chapter 2)
Pilot surveys (discussed in Chapter 2)
Secondary data analyzed in a qualitative way (discussed in Chapter 4)
Qualitative research (discussed in Chapter 5)

7. 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

8. Conclusive research designs
Conclusive research would be used to test specific hypotheses, examine specific relationships, or make predictions.
Conclusive research is typically more formal and structured than exploratory research.
It is based on large and representative samples and the data obtained are subjected to quantitative analysis.
Conclusive research may either describe or uncover causal relationships that may be generalised to large populations

9. Causal research
Descriptive research is used to describe something, usually market characteristics or functions.
For example, determining the average age of purchasers of your product.
Causal research is used to obtain evidence regarding cause-and-effect relationships.
For example, determining if increased advertising spending has led to an increase in sales.

10. Six W’s of descriptive research
Descriptive research design requires a clear specification of the six W’s of the research:
1.Who: who should be considered?
2.Where: where should the respondents be contacted to obtain the required information?
3.When: when should the information be obtained from the respondents?
4.What: what information should be obtained from the respondents?
5.Why: why are we obtaining information from the respondents?
6.Way: the way in which we are going to obtain information from the respondents.

11. 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

12. Methods of Descriptive Research
Secondary data analyzed in a quantitative, as opposed to a qualitative, manner (discussed in Chapter 4)
Surveys (Chapter 6)
Panels (Chapters 4 and 6)
Observational (Chapter 6)

13. Situations where causal research could be used
Causal research is appropriate to use when the purposes are to understand which variables are the cause and which variables are the effect, and to determine the nature of the functional relationship between the causal variables and the effect to be predicted.
Once you understand the underlying theory, business-to-business advertising as an example of causal research.

14. 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
Table 3.1

15. 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, effect on dependent variables
Control mediating variables
Experiments
Exploratory
Descriptive
Causal
Table 3.2

16. Causal research design and its purpose
understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of marketing phenomena;
determine the nature of the relationship between the causal variables and the effect to be predicted;
test hypotheses.

17. Cross-Sectional Designs
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.
Cohort analysis consists of a series of surveys conducted at appropriate time intervals, where the cohort serves as the basic unit of analysis. A cohort is a group of respondents who experience the same event within the same time interval.

18. Cohort analysis
For example, a birth (or age) cohort is a group of people who were born during the same time interval, such as 1951–1960.
The term cohort analysis refers to any study in which there are measures of some characteristics of one or more cohorts at two or more points in time.
Cohort analysis is of special interest because it is used to predict changes in consumers' behaviour or attitudes over a period of time. It reveals the shared history and subtle effects of the ageing of consumers upon their behaviour and attitudes.

19. 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

20. Alternative Research Designs
Exploratory Research
Secondary Data Analysis
Focus Groups
Conclusive Research
Descriptive/Causal
(a)
(b)
(c)

21. Potential sources of error can affect a research design
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.
like “all the people average age living in the United States” or “all dog owners in Georgia”. A characteristic is just an item of interest.

22. Potential sources of error can affect a research design
The potential sources of error can be broadly categorised into two classes: Random Sampling errors. Sampling error arises when the selected sample is not perfectly representative of the population it represents. In this case the mean value for the sample differs from the actual population mean, because particular types of participant have been over- or under-represented. Non-sampling errors. Non-sampling error can be classified as non-response error and response error. Non-response error occurs when some of the participants do not respond.

23. Potential sources of error can affect a research design
Response errors are those that arise due to errors made by the researchers, interviewers and participants, such as the wrong formulation of the questionnaire, mis-recording of answers, hesitancy or unwillingness to provide answers.

24. 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

25. Minimise total error
It is usually negligible provided a sample of sufficient size from the relevant population has been taken.

26. Internet in different types of research designs.
During the exploratory phase of the research, forums, chat rooms, or newsgroups can be used to generally discuss a topic with anyone who visits the chat room.

27. 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.

28. 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.

29. 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.

30. 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.

31. 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 about 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

32. 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 past all the listed hurdles and on to step 5.

33. 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 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.

34. 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.

35. Group Exercise
“If the research budget is limited, exploratory research can be dispensed with.” Discuss this quote.
As a small group, discuss the following statement: “The researcher should always attempt to develop an optimal design for every marketing research project.”
“There are many potential sources of error in a research project. It is impossible to control all of them. Hence, marketing research contains many errors and we cannot be confident of the findings.” Discuss these statements as a small group. Did your group arrive at a consensus?