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Research Design

Research Design. Chapter 3. Research Design: Definition. A framework or blueprint for conducting the marketing research project. It Specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problems.

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Research Design

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  1. Research Design Chapter 3

  2. Research Design: Definition • A framework or blueprint for conducting the marketing research project. It Specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problems

  3. Research Design: Classification • Research design is broadly classified as exploratory or conclusive • The differences between exploratory and conclusive research are summarized in the following table

  4. A Comparison of Basic Research Designs

  5. Exploratory Research Design • Exploratory research could be used for any of the following purposes: • 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

  6. Methods useful for Exploratory Research • Survey of Experts • Pilot Surveys • Secondary Data Analysis • Qualitative Research

  7. Exploratory Research • Exploratory research, as the name suggests, leads to insights into research problem • Exploratory research is, by nature inconclusive and is often followed by conclusive research • However, when exploratory research is the only research to be conducted, we should exercise caution in sample selecting and interpretation of results

  8. Descriptive Research • A type of research that has as its major objective the description of something – usually market characteristics of functions

  9. Descriptive Research • Descriptive research is conducted for following reasons: • To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas • For example we could develop a profile of heavy users of Ufone prepaid cards • To estimate the percentage of units in a specified population exhibiting a certain behavior • For example we might be interested in the proportion of Ufone heavy users in the population

  10. Descriptive Research • Descriptive research is conducted for following reasons: • To determine perceptions of product characteristics • For example, how do customers perceive various cell phone operators in terms of hidden charges criteria • To determine the degree to which marketing variables are associated • For example, to what extent visit to a children playland is related to shopping • To make specific predictions. For example, what will be the retail sales of LG KG 275 in Feb in the N. Nazimabad area?

  11. Descriptive Research • The descriptive research assumes that researcher has much prior knowledge about the problem situation • Descriptive research is characterized by the prior formulation of research hypotheses • Information needed is clearly defined

  12. Descriptive Research • The research is planned and structured • It is based on large representative samples • A formal research design specifies methods specifies the methods for selecting the sources of information and for collecting data from those sources

  13. Examples of descriptive research • Market studies, which describe the size of the market, buying power of the consumers, availability of distributors, and consumer profiles • Market share studies, which determine proportion of total sales received by a company and its competitors

  14. Examples of descriptive research • Sales analysis studies, which describe sales by geographic region, product line, type and size of the account • Image studies, which determine consumer perceptions of the firm and its products • Product usage studies, which describe consumption patterns

  15. Examples of descriptive research • Distribution studies, which determine traffic flow patterns and the number and location of distributors • Pricing studies, which the range and frequency of price changes and probable consumer response to proposed price changes • Advertising studies, which describe media consumption habits and audience profiles for specific television programs and magazines

  16. Descriptive Research Design • A descriptive research design requires a clear specification of the who, what, when, where, why and way (the six Ws) of the research

  17. The six Ws of a research design • Who – who should be considered a respondent • What – what information should be obtained from the respondents • When - when should the information be obtained from the respondents • Where – where should the respondents be contacted to obtain the requried information

  18. The six Ws of a research design • Why – why are we obtaining information from the respondents. Why is the marketing research project being conducted • Way – In what way are we going to obtain information from the respondents

  19. Major methods for descriptive research • Secondary data analysis in a quantitative way • Surveys • Panels • Observational and other data

  20. Cross-Sectional designs • A type of research design involving the collection of information from any given sample of population elements only once. These are also called surveys • Single cross-sectional design • Only one sample of respondents is drawn from the target population, and information is obtained from this ample only once

  21. Cross-Sectional designs • Multiple cross-sectional design • A cross-sectional design in which there are two or more samples of respondents and information is obtained only once • Cohort analysis • A multiple cross-sectional design consisting of a series of surveys conducted at appropriate time intervals. The cohort refers to the group of respondents who experience the same event within the same time interval

  22. Longitudinal Designs • A type of research design involving a fixed sample of population elements that is measured repeatedly. The sample remains the same over time, thus providing a series of pictures, which when viewed together, portray a vivid illustration of the situation and the changes that are taking place over time

  23. Longitudinal Design • In longitudinal design, the same people are studied over and time and the same variables are measured • Longitudinal designs are also called panels • Panel is a sample of respondents who have agreed to provide information at specified time intervals over an extended period

  24. Relative Advantages and Disadvantages of surveys and panels A + indicates a relative advantage over other design, whereas a – indicates a relative disadvantage

  25. Causal Research • A type of conclusive research where the major objective is to obtain evidence regarding cause-and-effect (causal) relationship • Causal research is appropriate for following purposes: • To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) • To determine the nature of relationship between the causal variables and the effect to be predicted

  26. Relationship among Exploratory, Descriptive and Causal Research • When little is known about the problem situation, it is desirable to begin with exploratory research • Exploratory research is the initial step in the overall research design framework. It should, in most instances, be followed by descriptive or causal research

  27. Relationship among Exploratory, Descriptive and Causal Research • It is not necessary to begin every research design with exploratory research. It depends upon the precision with which the problem is defined • Although exploratory research is generally the initial step, it need not be. Exploratory research may follow descriptive or causal research

  28. Potential sources of error • Several potential sources of error can affect a research design

  29. The difference between an Error and a Bias • Bias is systematic favoring of some outcomes of over others • Bias is “intentional” • The major difference between bias and error is that an error tends to diminish in the long run whereas bias keeps increasing in the long run

  30. Potential Sources of Errors in Research Design

  31. Total Error • The variation between the true mean value of the population parameter and observed value of the sample statistic obtained in the market research project

  32. Random Sampling Error • Random sampling error occurs due to the particular sample selected is an imperfect representation of the population of interest • Random sampling error is the difference between the population parameter and the observed sample statistic for the original sample

  33. Nonsampling Error • Nonsampling errors are errors that can e attributed to sources other than sampling, and they can be random or nonrandom • Nonsampling errors consists of nonresponse and response errors

  34. Nonresponse Error • A type of nonsampling error that occurs when some of the respondents included in the sample do not respond. This error may be defined as the variation between the true mean value of variable in the original sample and the true mean value in the net sample

  35. Response Error • A type of nonsampling error arising from respondents who do respond but given inaccurate answers, or their answers are misrecorded or misnalayzed. It may defined as the variation between the true mean value of the variable in the net sample and the observed mean value in the marketing research project

  36. Response Errors • Response errors can e made by researchers, interviewers, or respondents

  37. Response Errors by Researchers • Errors made by researcher include surrogate information, measurement, population definition, sampling frame, and data analysis errors

  38. Surrogate Information Error • This error is the variation between the information needed for marketing research problem and the information sought by the researcher • For example, instead of obtaining information on consumer choice of a new brand (needed for the marketing research problem), the researcher obtains information on consumer preferences because the choice process cannot e easily observed

  39. Measurement Error • This error may be defined as the variation between the information sought and the information generated by the measurement process • For example, seeking to measure consumer preferences, the consumer employs a scale that measures perceptions rather than preferences

  40. Population Definition Error • The variation between the actual population relevant to the problem at hand and the population as defined by the researcher

  41. Data Analysis Error • Data analysis error encompasses errors that occur when raw data from questionnaires are transformed into research findings • For example, an inappropriate statistical procedure is used resulting in incorrect interpretation and findings

  42. Response Errors by Interviewer • Response errors made by interviewers include • Respondent selection error • Selection of a respondent other than specified by the sampling design or in a manner inconsistent with the sampling design • Questioning error • Errors made in asking questions of the respondents or in not probing where more information is required

  43. Response Errors by Interviewer • Recording error • Arises due to errors in hearing, interpreting, and recording the answers given by the respondents • Cheating error • Arises when interviewer fabricates answers to a part or all of the interview

  44. Response Errors by Respondents • Inability error • Results from the inability of respondent to provide accurate answers • Reasons for inability may be unfamiliarity, fatigue, boredom, faulty recall, question format, question content, and other factors • Unwillingness error • Arises from the respondent’s unwillingness to provide accurate information • Reasons could be to provide socially desirable answers, avoid embarrassment, or to please the interviewer

  45. Controlling total error • In formulating research design, researcher should try to minimize total error not just any one component of the total error

  46. Components of a research design • Research design may also include a Research Brief from the client and a Research Proposal or Return on Brief from the researcher

  47. Research Brief: Contents • Why do this market research? – what action will be taken when the research is completed? • What has caused this problem or led to this opportunity? • What is known about the area of research already?

  48. Research Brief: Contents • Why do this market research? – what action will be taken when the research is completed? • What has caused this problem or led to this opportunity? • What is known about the area of research already?

  49. Research Brief: Contents • Target groups for the research • What specific information is needed from the research (for example, market size, trends, buying behavior, customer needs, segmentation) What is known about the area of research already?

  50. Research Brief: Contents • What is the proposed budget? • Are there any initial ideas for the research method? • Are there any reporting requirements? • When are the findings required?

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