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Copyright © 2010 Pearson Education, Inc.

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Research Design

• Research design is a set of advanced


decisions that make up the master plan
specifying the methods and procedures
for collecting and analyzing the
needed information.

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The Significance of
Research Design
• There are basic marketing research
designs that can be successfully
matched to given problems and
research objectives, and they serve
the researcher much like the blueprint
serves the builder.

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Types of Research Design

• Three traditional categories:


– Exploratory
– Descriptive
– Causal

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Types of Research Design

• The choice of the most appropriate


design depends largely on the
objectives of the research and how
much is known about the problem and
research objectives.

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Basic Research Objectives and
Research Design

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Types of Research Design:
A Caution
• Exploratory
• Descriptive
• Causal
A Caution
– It should not be implied that
research design is a step-by-step
process in terms of the order in
which design should be carried out.
Many research projects use only one
design.
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Exploratory Research

• It is usually conducted when the


researcher does not know much about
the problems.
• Exploratory research is usually
conducted at the outset of research
projects.

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Exploratory Research

•Many questions; many sources


•Defining the problem; getting a “feel”
• Uses
– Gain Background Information
– What is a bank image study?
– Define Terms
– What terms are used?
– Clarify Problems and Hypothesis
– What type of bank customers? Retail?
Commercial? Correspondent Banks?
– Establish Research Priorities
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Exploratory Research
• A variety of methods are available to
conduct exploratory research.
– Secondary Data Analysis: What has been
written?
– Experience Surveys: Talk to those who have
experience…those who adopted Vista early; those who
make biodiesel; those who have taken an online course,
etc.
– Case Analysis: Similar situation in past? Windows XP?
– Focus Groups: Talk to a few persons in the
population
– Projective Techniques: For topics that are
sensitive or difficult to articulate (personal hygiene; status-
seeking!)

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Focus Groups

• Very useful for generating information


about how consumers think, their
attitudes, terminology they use,
liking/disliking of proposed new
product
• Not useful for predicting a sales
number!
• Is BIG business!
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Descriptive Research

• Descriptive research is undertaken to


describe answers to questions of who,
what, where, when, and how.
• Descriptive research is desirable when
we wish to project a study’s findings to
a larger population, if the study’s
sample is representative.

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Research Design:
Descriptive Research
• Two basic classifications:
– Cross-sectional studies
– Longitudinal studies

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Classification of Descriptive Research
Studies
• Cross-sectional studies measure units
from a sample of the population at
only one point in time.
– Sample surveys are cross-sectional
studies whose samples are drawn in
such a way as to be representative
of a specific population.
• These studies are usually
presented with a margin of error.
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Classification of Descriptive Research
Studies
• Cross-sectional studies take
“snapshots” of the population at a
point in time.

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Classification of Descriptive Research
Studies
• Longitudinal studies repeatedly
measure the same sample units of a
population over time.
• Longitudinal studies often make use of
a panel which represents sample units
who have agreed to answer questions
at periodic intervals.
• Many large research firms maintain
panels of consumers.
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Descriptive Research

Panel Results

70%
•Many questions; one or few sources
60% •Formal sample and 60% 60%
questionnaire
50% 50%
• Marketing Survey
Market Share

Cory's
40% 40%

30% – Questionnaire
30%
American
Illegal

–20%Sample
25%
20% 20%method 20% and size
15%
10%
– Data collection method
– DataFallanalysis
0%
Summer (quantitative)
Winter Spring

• “Snapshot”2005 versus Panel Design


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Marketing Research Panels

• Continuous panels ask panel members


the same questions on each panel
measurement.
• Discontinuous panels vary questions
from one panel measurement to the
next.
– They are sometimes referred to as
omnibus (“including or covering
many things or classes”).
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Marketing Research Panels

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Marketing Research Panels –
Discontinuous Panels
• Discontinuous panels have the
advantage of being able to access
large groups of people who have made
themselves available for research.
• Discontinuous panels represent sources
of information that may be quickly
accessed for a wide variety of
purposes.

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Marketing Research Panels –
Continuous Panels
• Continuous panels are used quite
differently from discontinuous panels
in that one may use data from
continuous panels to gain insights into
changes in consumers’ purchases,
attitudes, etc.

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Marketing Research Panels –
Continuous Panels
• For example, brand switching studies
are used to illustrate how consumers
change brands, and market-tracking
studies track some variable of interest
over time.

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Descriptive Research Studies

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Changes From Two
Cross-Sectional Studies
• Pooch Plus dropped from 100 to 75
families.
• Beggar’s Bits remained the same at
200.
• Milk Bone increased from 200 to 225.

• Conclusion: Pooch Plus is losing market


share to Milk Bone. Target Milk Bones
with a strategy to win back market
share.
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Descriptive Research Studies

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Longitudinal Data Analysis

• Pooch Plus kept 50 families and lost 50


families to Beggar’s Bits.
• Pooch Plus gained 25 former Beggar’s
Bits families.
• Milk Bones gained 25 former Beggar’s
Bits families.

• Conclusion: Beggar’s Bits is the


competition…Not Milk Bone!
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Causal Research

• Causality may be thought of as


understanding a phenomenon in terms
of conditional statements of the form
“If x, then y.”
• Causal studies are conducted through
the use of experiments.

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Experiments

• An experiment is defined as
manipulating an independent variable
to see how it affects a dependent
variable, while also controlling the
effects of additional extraneous
variables.

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Independent Variable

• Independent variables are those


variables which the researcher has
control over and wishes to
manipulate… the 4 P’s
– For example: level of ad
expenditure; type of ad appeal;
price; product features, etc.

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Dependent Variables

• Dependent variables are those


variables that we have little or no
direct control over, yet we have a
strong interest.
– Examples would be return on
investment, net profits, market
share, customer satisfaction.

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Extraneous Variables

• Extraneous variables are those


variables that may have some effect on
a dependent variable yet are not
independent variables.
• Extraneous variables must be
controlled through proper
experimental design.

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Experimental Design

• Experimental design is a procedure for


devising an experimental setting such
that a change in a dependent variable
may be attributed solely to the change
in an independent variable.

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Symbols of Experimental Design

• O= measurement of a dependent
variable
• X= manipulation, or change, of
an independent variable
• R= random assignment of
subjects to experimental and
control groups
• E= experimental effect
• Time is on the horizontal axis
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Pretest and Posttest

• Pretest refers to the measurement of


the dependent variable taken prior to
changing the independent variable.
• Posttest refers to measuring the
dependent variable after changing the
independent variable.

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A “True” Experimental Design

• A “true” experimental design is one


that truly isolates the effects of the
independent variable on the
dependent variable while controlling
for the effects of any extraneous
variables.

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Not “True” Experimental Design
Example: An Experiment to Assess the Effects of
Display Position on Sales of Apples

• After-Only Design: X O1
Did apple sales increase or decrease? We don’t know the
“effect” the change in the independent variable (display
position) has on the dependent variable (apple$).

• One-Group,
Before-After Design: O1 X O2
We know how much apple$ changed but was the change due
SOLELY to the change in display position? Could other
(extraneous) variables have accounted for the change?

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Remember What a
“True” Experiment is…
• Experimental design is a procedure for
devising an experimental setting such
that a change in a dependent variable
may be attributed solely to the change
in an independent variable.

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A “True” Experimental Design
• Before-After with Control Group:
Experimental group: O1 X O2
Control group: O3 O4
Where E = (O2 – O1) – (O4 – O3)
• Explain how this equation confirms that this design is a
“true” experiment:
Change from O1 - O2 = independent var + extraneous var
- Change from O4 - O3 = extraneous var
Then E = independent var!!!
Where E=change in the dependent variable due SOLELY to
the change in the independent variable: A True Experiment!

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How valid are experiments?

• An experiment is valid if it has:


– Internal validity: measures the
extent to which the change in the
dependent variable is actually due to
the change in the independent
variable.

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How valid are experiments?

• An experiment is valid if it has:


– External validity: refers to the
extent that the relationship
observed between the independent
and dependent variables during the
experiment is generalizable to the
“real world.”

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Types of Experiments

• Laboratory experiments are those in


which the independent variable is
manipulated and measures of the
dependent variable are taken in a
contrived, artificial setting for the
purpose of controlling the many
possible extraneous variables that may
affect the dependent variable.
• Good at establishing internal validity

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Types of Experiments

• Field experiments are those in which


the independent variables are
manipulated and the measurements of
the dependent variable are made on
test units in their natural setting.
• Good at establishing external validity

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Test Marketing

• Test marketing is the phrase commonly


used to indicate an experiment, study,
or test that is conducted in a field
setting.
• Uses of test markets
– To test sales potential for a new
product or service
– To test variations in the marketing
mix for a product or service
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permission of the publisher. Printed in the United States of America.

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