Chapter Three

Research Design
 3-2

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.
 3-3

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
 Develop a plan of data analysis
 3-4

A Classification of Marketing Research Designs

Fig. 3.1

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

Sectional Design Sectional Design
 3-5

Exploratory & Conclusive Research Differences

Table 3.1

Exploratory Conclusive
Objective: To provide insights and To test specific hypotheses and
understanding. examine relationships.

Character- Information needed is defined only Information needed is clearly defined.

istics: loosely. Research process is Research process is formal and
flexible and unstructured. Sample structured. Sample is large and
is small and non-representative. representative. Data analysis is
Analysis of primary data is quantitative.
qualitative.

Findings Conclusive.
/Results: Tentative.

Outcome: Findings used as input into decision

Generally followed by further making.
exploratory or conclusive
 3-6

A Comparison of Basic Research Designs

Table 3.2

Exploratory Descriptive Causal

Objective: Discovery of ideas Describe market Determine cause and
and insights characteristics or effect relationships
functions
Manipulation of one
Characteristics: Flexible, versatile Marked by the prior or more independent
formulation of specific variables
hypotheses
Control of other
Often the front end Preplanned and mediating variables
of total research structured design
design

Expert surveys Secondary data Experiments

Methods: Pilot surveys Surveys
Secondary data Panels
Qualitative research Observation and other
data
 3-7

Exploratory Research
The objective is to explore or search
through a problem or situation to provide
insights and understanding.
 3-8

Steps 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
 3-9
Waterpik Picks a Winning Product

Water pik Technologies  leading developer. manufacturer, and marketer of health

care products for the entire family. Water pik wants to retain its market position
by introducing innovative products that satisfy the needs of its customers. In 2003.
based on initial research and evaluation of trends, Waterpik made the decision to
concentrate on developing new showerhead product platform concepts that provide
the best showering experience and value.

The company hired Innovation Feces an internationally recognized consulting firm

driven to help clients develop and implement profitable ideas for growth. By using a
unique mix of creative and analytical merketing research. Innovation Focus helped
Waterpik to find the right answers to their questions and finally come up witha
successful product.
 3-10

The exploratory research phase was kicked off with a trends meeting with Waterpik
marketing professionals to list and prioritize key consumer wants and needs. This
was followed by a technology session with Waterpik engineers to uncover applicable
technologies and the company’s internal competencies. These meetings set the
foundation for conducting detailed marketing research. To get a variety of
perspectives and to speed up the process, Innovation Focus decided to conduct
what was named an
innovation session. The session had 21 participants, including consumers, external
designers and marketers and Waterpik specialists. More than 140 concepts were
generated. This was followed by validation and concept refinement sessions with
more consumers using a descriptive survey. And the winner (the final product)
emerged through this process.
 3-11

Two years after the first session. Waterpik was ready to introduce its new product.
The showerhead had seven unique and adjustable settings that addressed
consumers’ interest in being able to adjust the coverage, force and shape of the
shower spray. Mist and pressure control features were also incorporated to allow the
users to “turn their shower into a spa’ Powered by marketing research. Waterpik
was able to hit the ground running with its new product.
Note that Waterpik did not rely exclusively on exploratory research. Once new
product concepts were identified, they were further tested by descriptive research in
the form of consumer surveys. This example points to the importance of descriptive
research in obtaining more conclusive findings.
 3-12

Methods of Exploratory Research

 Survey of experts
 Pilot surveys
 Secondary data analyzed in a qualitative way
 Qualitative research
 3-13

 Exploratory research is useful where the researcher does not have the
enough understanding to proceed with the research.
 It is characterized by flexibilities and versatility with respect to methods
because formal research protocols and procedures are not employed.
 It rarely involves large samples, structured questionnaire and
probability sample plans. Rather researchers are alert to new ideas and
insights as they proceed. Once a new idea or insight is discovered ,
they may redirect their exploration in that direction. The new direction
is pursued until its possibilities are exhausted or new direction is found.
 Thus the focus of investigation may shift continuously as new insights
are discovered. Then the creativity and ingenuity of researcher plays a
major role in exploratory research . Yet the abilities of researcher are
not the sole determinants of good exploratory research.
 3-14

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
 It requires clear specification of 6 Ws – Who, What, When, Where,
Why and Way.
 3-15

A descriptive design requires a clear specification of the who, what, when, where, why, and
way (the six Ws) of the research. This example is in the context of the department store
patronage project
The Six Ws
1. Who-Who should be considered a patron of a particular department store? Some
of the possibilities are:
a. Anyone who enters the department store, whether or not she or he purchases anything
b. Anyone who purchases anything from the store
c. Anyone who makes purchases at the department store at least once a month
d. The person in the household most responsible for department store shopping
2. What-What information should be obtained from the respondents? A wide variety
of information could he obtained. including:
a. Frequency with which different department stores are patronized for specific
product categories
b. Evaluation of the various department stores in terms of the salient choice criteria
c. Information pertaining to specific hypotheses to be tested
d. Psycho graphics and lifestyles, media consumption habits, and demographics
 3-16

3. When – When should the information be obtained from the respondents? The
available options include:
a. Before shopping
b. While shopping
c. Immediately after shopping
d. Some time after shopping to allow time for evaluation of their shopping experience
4. Where-Where should the respondents he contacted to obhin the required
information? Possibilities include contacting the respondents:
a. In the store
b. Outside the store but in the shopping mall
c. In the parking lot
d. At home
 3-17

5. Why-Why are we obtaining information from the respondents? Why is the

marketing research project being conducted? Possible reasons could be to:
•a. Improve the image of the sponsoring store

b. Improve patronage and market share

c. Change the product mix
d. Develop a suitable promotional campaign
e. Decide on the location of a new store
6. Way-In what way are we going to obtain information from the respondents? The
possible ways could be:
•a. Observation of respondents’ behavior

b. Personal interviews
c. Telephone interviews
d. Mail interviews
e. Electronic (e-mail or Internet) interviews
 3-18

Methods of Descriptive Research

 Secondary data analyzed in a quantitative as opposed to a
qualitative manner
 Surveys
 Panels Observational and
 other data
 3-19

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.
 3-20

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
 Cross – sectional design gives a snap shot of the variables
of interest at single point in time, a longitudinal study
provides a series of picture that give an in-depth view of
the situation and the changes that take place overtime.
 Relative Advantages and Disadvantages of
3-21

Longitudinal and Cross-Sectional Designs

Table 3.4

Evaluation Cross-Sectional Longitudinal

Criteria Design 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.
 3-22

Cross-Sectional Data May Not Show Change

Table 3.5

Brand Purchased Time Period

Period 1 Period 2
Survey Survey
Brand A 200 200
Brand B 300 300
Brand C 500 500
Total 1000 1000
 Longitudinal Data May Show
3-23

Substantial Change
Table 3.6

Brand Brand Purchased in Period 2

Purchased in
Period 1 Brand A Brand B Brand C Total
Brand A 100 50 50 200
Brand B 25 100 175 300
Brand C 75 150 275 500
Total 200 300 500 1000
 3-24

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
 Potential Sources of Error in
3-25

Research Designs
Fig. 3.2
Total Error

Random Non-sampling
Sampling Error Error

Response Non-response
Error Error

Researcher Interviewer Respondent

Error Error Error

Surrogate Information Error Respondent Selection Error Inability Error

Measurement Error Questioning Error Unwillingness Error
Population Definition Error Recording Error
Sampling Frame Error Cheating Error
Data Analysis Error
 3-26

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. Non-sampling errors consist of non-response
errors and response errors.
 3-27

Errors in Marketing Research

 Non-response error arises when some of the respondents included in
the sample do not respond.
 It is the variation between the true mean value of the variable in the
original sample and the true mean value in the net sample.
 Response error arises when respondents give inaccurate answers or
their answers are misrecorded or misanalyzed.
 It is defined as the variation between the true mean value of the
variable in the net sample and the observed mean value obtained in the
marketing research project.
 Citicorp Banks on Exploratory, Descriptive,
3-28

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.
 Citicorp Banks on Exploratory, Descriptive,
3-29

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.
 Citicorp Banks on Exploratory, Descriptive,
3-30

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.
 Citicorp Banks on Exploratory, Descriptive,
3-31

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.
 Citicorp Banks on Exploratory, Descriptive,
3-32

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?
 Citicorp Banks on Exploratory, Descriptive,
3-33

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.
 Citicorp Banks on Exploratory, Descriptive,
3-34

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.
Citicorp Banks on Exploratory, Descriptive,
3-35

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.
 3-36

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