1. Research Design

2. 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 business research problems.

3. 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

4. A Classification of Business Research Designs
Conclusive Research Design
Exploratory Research Design
Descriptive Research
Causal Research
Cross-Sectional Design
Longitudinal Design
Single Cross-Sectional Design
Multiple Cross-Sectional Design

5. 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.

6. A Comparison of Basic Research Designs
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

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

9. 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

10. Methods of Descriptive Research
Secondary data analyzed in a quantitative as opposed to a qualitative manner
Surveys
Panels
Observational and other data

11. 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.
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.

12. Consumption of Various Soft Drinks by Various Age Cohorts
Percentage consuming on a typical day
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

13. 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

14. 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.

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

16. 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
Brand B
Brand C
Total
100 25 75
200 50
100
150
300 50
175
275
500
200
300
500
1000

17. Uses of Casual 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

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

19. 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 business research project
I. Random sampling error is the variation between the true mean value in the population and the true mean value in the original sample.
II. Nonsampling error (can be attributed to sources other than sampling)
1) Nonresponse error: when some respondents included in the sample do not respond (refusals or not-at-homes)

20. Errors in Business Research
2) Response error:
Researcher errors
a) Surrogate information error: the variation between the info needed and sought by the researcher (e.g., instead of info on consumer choices, the researcher obtains info on consumer preferences because the choice process cannot be easily observed)
b) Measurement error: the variation between the info sought and info generated (e.g., measuring perceptions rather than preferences)

21. Errors in Business Research
c) Population definition error: the variation between the actual population relevant to the problem at hand and the pop. as defined by the researcher (e.g., how to define a population of affluent households?)
a) income of $50K or more?
b) the top 20% of households as measured by income?
c) with net worth over $250,000?

22. Errors in Business Research
d) Sampling frame error: the variation between the population defined by the researcher and the population as implied by the sampling frame (e.g., the telephone directory used to generate a list of telephone numbers does not accurately represent the pop. of potential consumers due to unlisted, disconnected, and new numbers in service)
e) Data analysis error: e.g., when an inappropriate statistical procedure is used

23. Errors in Business Research
Interviewer errors
a) Respondent selection error: respondents are selected other than those specified by the sampling design (e.g., a non-reader of a journal is selected rather than a reader to meet a difficult quota requirement)
b) Questioning error: e.g., interviewer does not use the exact wording given in a questionn.
c) Recording error: errors in hearing, interpreting, and recording the answers
d) Cheating error: the interviewer fabricates the answers (e.g., does not ask about income, but then fills in the answer based on personal assessment)

24. Errors in Business Research
Respondent errors
a) Inability error: because of unfamiliarity, fatigue, boredom, faulty recall, question format, question content, etc. (e.g., a respondent cannot recall the brand of yogurt purchased four weeks ago)
b) Unwillingness error:
No answer
Intentionally wrong answer (e.g., declares himself as a reader of a prestigious magazine rather than a tabloid)

25. Citicorp Banks on Exploratory, Descriptive, and Causal Research
Business 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 business research to help in the design.

26. 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.

27. 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.

28. 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.

29. 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?

30. 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.

31. 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.

32. 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.

33. Business 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

34. The Greenfield of Online Research
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.

35. The Greenfield of Online Research
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.