Marketing Research. Lecture 4 Research Design

Transcription

1 Marketing Research Lecture 4 Research Design

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

3 Tasks Involved in a Research Design 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 Marketing Research Designs Research Design Exploratory Research Design Conclusive 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: Characteristics: Exploratory To provide insights and understanding Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and nonrepresentative. Analysis of primary data is qualitative Conclusive 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 Findings/ Results: Outcome: Tentative Generally followed by further exploratory or conclusive research Conclusive Findings used as input into decision making

6 A Comparison of Basic Research Designs Objective: Exploratory Descriptive Causal Discovery of ideas and insights Describe market characteristics or functions Determine cause and effect relationships Characteristics: Flexible, versatile Often the front end of total research design Marked by the prior formulation of specific hypotheses Preplanned and structured design Manipulation of independent variables Measure the effect on dependent variables Control of other mediating variables Methods: Expert surveys Pilot surveys Case studies Secondary data: qualitative analysis qualitative research Secondary data: quantitative analysis Surveys Panels Observation and other data 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 Age Cohorts Percentage consuming on a typical day Age C1 C1: cohort born prior to 1900 C2: cohort born C3: cohort born C4: cohort born C C3 C8 C7 C6 C5 C4 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 crosssectional design in that the sample or samples remain the same over time

14 Cross-Sectional vs. Longitudinal Cross- Sectional Design Sample Surveyed at T 1 Longitudinal Design Sample Surveyed at T 1 Same Sample also Surveyed at T 2 Time T 1 T 2

15 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.

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

17 Longitudinal Data May Show Substantial Change Brand Purchased in Period 1 Brand A Brand B Brand C Total Brand Purchased in Period 2 Brand A Brand B Brand C Total

18 Uses of Causal 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

19 Conditions for Causality Concomitant variation is the extent to which a cause, X, and an effect, Y, occur together or vary together in the way predicted by the hypothesis under consideration. The time order of occurrence condition states that the causing event must occur either before or simultaneously with the effect; it cannot occur afterwards. Plausible explanation of case-and-effect mechanism based on previous studies, theory, qualitative research and common sense The absence of other possible causal factors means that the factor or variable being investigated should be the only possible causal explanation.

20 Evidence of Concomitant Variation between Purchase of Fashion Clothing and Education Purchase of Fashion Clothing, Y High Low Education, X High Low 363 (73%) 137 (27%) 322 (64%) 178 (36%) 500 (100%) 500 (100%)

21 Purchase of Fashion Clothing By Income and Education Low Income Purchase High Income Purchase High Low High Low Education High Low 122 (61%) 171 (57%) 78 (39%) 129 (43%) 200 (100%) 300 (100%) Education High Low 241 (80%) 151 (76%) 59 (20%) 49 (24%)

22 Definitions and Concepts Independent variables are variables or alternatives that are manipulated and whose effects are measured and compared, e.g., price levels. Test units are individuals, organizations, or other entities whose response to the independent variables or treatments is being examined, e.g., consumers or stores. Dependent variables are the variables which measure the effect of the independent variables on the test units, e.g., sales, profits, and market shares. Extraneous variables are all variables other than the independent variables that affect the response of the test units, e.g., store size, store location, and competitive effort.

23 Experimental Design An experimental design is a set of procedures specifying: the test units and how these units are to be divided into homogeneous subsamples, what independent variables or treatments are to be manipulated, what dependent variables are to be measured; and how the extraneous variables are to be controlled.

24 Validity in Experimentation Internal validity refers to whether the manipulation of the independent variables or treatments actually caused the observed effects on the dependent variables. Control of extraneous variables is a necessary condition for establishing internal validity. External validity refers to whether the causeand-effect relationships found in the experiment can be generalized. To what populations, settings, times, independent variables, and dependent variables can the results be projected?

25 Extraneous Variables History refers to specific events that are external to the experiment but occur at the same time as the experiment. Maturation (MA) refers to changes in the test units themselves that occur with the passage of time. Testing effects are caused by the process of experimentation. Typically, these are the effects on the experiment of taking a measure on the dependent variable before and after the presentation of the treatment. The main testing effect (MT) occurs when a prior observation affects a latter observation.

26 Extraneous Variables In the interactive testing effect (IT), a prior measurement affects the test unit's response to the independent variable. Instrumentation (I) refers to changes in the measuring instrument, in the observers, or in the scores themselves. Statistical regression effects (SR) occur when test units with extreme scores move closer to the average score during the course of the experiment. Selection bias (SB) refers to the improper assignment of test units to treatment conditions. Mortality (MO) refers to the loss of test units while the experiment is in progress.

27 Controlling Extraneous Variables Randomization refers to the random assignment of test units to experimental groups by using random numbers. Treatment conditions are also randomly assigned to experimental groups. Matching involves comparing test units on a set of key background variables before assigning them to the treatment conditions. Statistical control involves measuring the extraneous variables and adjusting for their effects through statistical analysis. Design control involves the use of experiments designed to control specific extraneous variables.

28 A Classification of Experimental Designs Pre-experimental designs do not employ randomization procedures to control for extraneous factors: the one-shot case study, the one-group pretest-posttest design, and the static-group. In true experimental designs, the researcher can randomly assign test units to experimental groups and treatments to experimental groups: the pretest-posttest control group design, the posttest-only control group design, and the Solomon four-group design.

29 A Classification of Experimental Designs Quasi-experimental designs result when the researcher is unable to achieve full manipulation of scheduling or allocation of treatments to test units but can still apply part of the apparatus of true experimentation: time series and multiple time series designs. A statistical design is a series of basic experiments that allows for statistical control and analysis of external variables: randomized block design, Latin square design, and factorial designs.

30 Laboratory Versus Field Experiments Factor Laboratory Field Environment Artificial Realistic Control High Low Reactive Error High Low Demand Artifacts High Low Internal Validity High Low External Validity Low High Time Short Long Number of Units Small Large Ease of Implementation High Low Cost Low High

31 Limitations of Experimentation Experiments can be time consuming, particularly if the researcher is interested in measuring the longterm effects. Experiments are often expensive. The requirements of experimental group, control group, and multiple measurements significantly add to the cost of research. Experiments can be difficult to administer. It may be impossible to control for the effects of the extraneous variables, particularly in a field environment. Competitors may deliberately contaminate the results of a field experiment.

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

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

34 Errors in Marketing 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 marketing research project. Random sampling error is the variation between the true mean value for the population and the true mean value for the original sample. Non-sampling errors can be attributed to sources other than sampling, and they may be random or nonrandom: including errors in problem definition, approach, scales, questionnaire design, interviewing methods, and data preparation and analysis. Nonsampling errors consist of non-response errors and response errors.

35 Errors in Marketing Research Non-response error arises when some of the respondents included in the sample do not respond. Response error arises when respondents give inaccurate answers or their answers are misrecorded or misanalyzed.

36 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.

37 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.

38 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.

39 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.

40 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 be easily understand? Does the idea fit into the overall strategy of Citicorp?

41 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.

42 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.

43 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.

44 Marketing 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

45 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 several thousand 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.

46 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.

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