RESEARCH DESIGN

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CHAPTER 5

• RESEARCH DESIGN

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Important Topics of this Chapter

• Types of research designs.
• Methods of conducting different research designs.
• Experimental research process.
• Test marketing and types of test markets.

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Classifications of Research Designs
Conclusive Research Design
Exploratory Research Design
Descriptive Research
Casual Research
Cross-Sectional Design
Longitudinal Design
Single Cross-Sectional Design
Multiple Cross-Sectional Design
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Difference between Exploratory and Conclusive
Research
Exploratory
Conclusive
Objective Character-istics Findings
/Results Outcome
To provide insights and understanding. Informatio
n needed is defined only loosely. Research
process is flexible and unstructured. Sample is
small and non-representative. Analysis of
primary data is qualitative. Tentative. General
ly 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. F
indings used as input into decision making.
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A Comparison of Basic Research Designs
T
Exploratory
Descriptive
Causal
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 Manipula
tion of one or more independent
variables Control of other mediating
variables Experiments
Objective Characteristics Methods
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Uses of Exploratory Research

• Gain background information
• Define terms
• Identify causes of the problem.
• Clarify problems and formulation of hypotheses.
• Establish research priorities.

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Methods Conducting Exploratory Research

• Secondary data analysis
• Library.
• Internet.
• Experience surveys.
• Case analysis.
• Focus group interviews.
• Projective techniques
• Hidden consumer motives for buying
  goods/services
• Sentence completion test.
• Cartoon tests.
• Story telling.

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Descriptive Research

• Who are the customers?
• What did they buy?
• When did they buy it?
• How did they buy it?
• Why did they buy it?

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Applications of Descriptive Research

• Cross sectional studies
• Sample surveys
• One time measurement.
• Outnumbered the longitudinal studies.
• Longitudinal studies
• Repeated measurements on the same sample.
• Traditional panels
• Ask same questions to same panel each time.
• Omnibus panels
• Different questions from one panel measurement to
  the next.

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Casual Research

• Experiments
• Independent variables-X
• Dependent variable-Y
• Y X
• Extraneous variables
• Variables that have some effects on dependent
  variable.

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Casual Research (cont.)

• Experimental design
• OThe measurement of dependent variable.
• XChange of an independent variable.
• RRandom assignment of subjects.
• EExperimental effect-change in dependent due
  to changes in independent variable

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Casual Research (cont.)

• Experimental design (Cont.)
• Measurement process
• Pretest
• Measurement of the dependent variable is taken
  place prior to changing the independent variable.
• Posttest
• Measurement of dependent variable is taken after
  the changing the independent variable.
• True experimental design
• Truly isolates the effects of the independent
  variable on the dependent variable.

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Casual Research (cont.)

• Experimental design (cont.)
• After-only design
• X O1 where O1 represents the measurement of post
  test.
• One-group, before-after design
• O1 X O2 where E O2 O1
• Before-after with control group
• Experimental group (R) O1 X O2
• Control group (R) O3 O4
• Where E(O2 - O1) (O4 O3)

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Casual Research (cont.)

• Experimental design (cont.)
• Validity of experiments
• Internal
• External
• Types of experiments
• Laboratory experiments
• Artificial environment
• Field experiment
• Natural setting

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Test Marketing

• Type of test markets
• Standard test market
• Time consuming.
• Competition may hear about it.
• Controlled test market
• Guaranteed shelf space.
• Fastest distributionhowever, it may not be the
  same in actual distribution network.
• Electronic test markets
• Panel of consumers.
• Small number of cities will participate.
• Offers speed, confidentiality and low cost.
• However, it is not a real market.

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Test Marketing (cont.)

• Simulated test market
• Respondent are selected based upon predetermined
  demographic characteristics.
• Consumers are shown commercials.
• Consumers are given opportunity to purchase.
• Consumer re-contacted after the opportunity to
  use it.
• Information is fed into data file to use for
  marketing mix decision.
• Advantages
• Faster than standard test market.
• Less costly
• However, it may not be accurate.
• Consumer Test markets.
• Industrial test markets.

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Pros and Cons of Test Marketing

• Provides first hand information about product
  quality, features and satisfaction level.
• It may help to discover the defects.
• It may give wrong information because consumers
  preferences may change overtime.
• Competitors may sabotage it.
• Competitors may gather product information.
• It is time consuming and costly

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Potential Sources of Error in Research Designs
Total Error
Non-sampling Error
Random Sampling Error
Non-response Error
Response Error
Interviewer Errors
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