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
Business research problems.
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A Classification of Research Designs

Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal/Experimental
Research Research

Cross-Sectional Longitudinal
Design Design
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Exploratory & Conclusive Research Differences

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

Character- Information needed is defined Information needed is clearly

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

Findings Tentative. Conclusive.

/Results:

Outcome: Generally followed by further Findings used as input into

exploratory or conclusive decision making.
research.
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A Comparison of Basic Research Designs

Exploratory Descriptive Causal/Experimental

Objective: Discovery of ideas Describe market Determine cause
and insights characteristics or and effect
functions relationships

Characteristics: Flexible, versatile Marked by the prior Manipulation of

formulation of one or more
specific hypotheses independent
variables
Often the front Preplanned and
end of total structured design Control of other
research design mediating
variables
Secondary data Secondary data
Methods: Expert surveys Surveys Experiments
Focus Group Panels
Selected Cases Observation and
other data
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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
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Methods of Exploratory Research

 Secondary data analyzed in a qualitative
way
 Survey of experts
 Focus Groups
 Selected Case
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Literature/ secondary data Search

Secondary Data Analysis is the process of searching for and
interpreting existing information relevant to research
problem. Secondary data is data that has been collected for
some other purpose . Like data available in library relating
to business journal, books, magazine, special report and
newsletter etc.
Eg: To know industry sales , one can find it from literature
search, from trade and business journals
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Experience survey
Experience surveys refer to gathering information from those thought to
be knowledgeable on the issues relevant to the research problem.
Experience surveys differ from survey conducted as a part of descriptive
research in that there is usually no formal attempt to ensure that the
survey results are representative of any defined group of subjects. It is
also called the key. Informant Survey, “the experience survey
attempts to tap the knowledge and experience of those
familiar with the general subject being investigated.” The aim
of the experience survey is to obtain insight into the
relationships between variable rather then to get an accurate
picture of current practices.
Eg: asking the views of the people who have used head & shoulder. For
knowing either it works for dandruff or not.
 3-10

Focus group

A qualitative research technique involving a discussion

among 08 to 12 respondents, led by a moderator. Also
called focus groups, group discussions, panels, and group
depth interviews.
An interview conducted by a trained moderator among a
small group of respondents in an unstructured and natural
manner. They are guided by a moderator through an
unstructured spontaneous discussion about some topic.
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Criteria for selecting the Moderator:

1. Genuine interest in people

2. Acceptance and appreciation for the differences in
people
3. Good listening skills
4. Good observation skills
5. Interest in a wide range of topics
6. Good oral and written skills
7. Objectivity
8. Knowledge of research and business
9. Flexibility
10. Attention to detail
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EXAMPLES----- HYPOTHESIS
FORMULATION

TO BE CONTINUED……………………..
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CLASS WORKSHOP
Assume that your client in cement industry is
encountering a decline in sales in the month
of Ramadan but a review of internal sales
record showed that it never happened in the
past. Which sub research design you would
recommend. Justify your choice?
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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
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Methods of Descriptive Research

 Secondary data analyzed in a quantitative as
opposed to a qualitative manner
 Surveys- Cross Sectional
 Panels- Longitudinal
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Cross-sectional Designs
 Involve the collection of information from any given
sample of population elements only once.
 In cross-sectional designs, there is only one
sample of respondents and information is obtained
from this sample only once.
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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
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Uses of Casual Research (Experiments)

 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
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EXPERIMENTS

Scientific investigation in
which an investigator
manipulates and controls
one or more independent
variables and observes
the effects on dependent
variable.
EXPERIMENTS
Laboratory
Types of Experiment
Experiments
In Causal Field
Research Experiment
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Types of Experiments
Laboratory Experiment
A laboratory experiment is one in which an
investigator creates a situation with the desired
conditions and then manipulates some variables
while controlling others.
For Example
If the researchers want to see the effect of price
on demand for cola then under laboratory
experiment they would ask a group of people to
make trial purchase and not actual purchases.
And every time they would make a trip to
purchase the cola the price of the cola would be
changed in order to see the effect on demand.
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Field Experiment
Research study in a realistic situation in
which one or more independent
variables are manipulated by the
experiment.
For Example
Taking the same previous example of laboratory
experiment where the subjects were asked to
behave as if they were actively shopping for the
product is not the same for this experiment
because in field experiment no attempt is made to
set up special conditions.
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Test Marketing
A controlled experiment done in a
limited but carefully selected sector of
the marketplace, its aim is to predict
the sales or profit consequences, either
in absolute or relative terms.
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Types Of Test Markets

Simulated
Standard Controlled Electronic
Test Market
Test Market Test Market Test Market
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Standard Test Marketing

A test market in which the company
sells the product through its normal
distribution channels.

Controlled Test Marketing

An entire test program controlled by an
outside service in a market in which it
can guarantee distribution.
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Electronic Test Marketing

 A market test done in a limited geographic

area in which a supplier maintains a panel of
households from which it collects
demographic information.
 They are given an identification card, whose
purchases are scanned and whose television
viewing behavior is electronically monitored.
 This allows the supplier to link demographic
information with television-viewing and
purchase behavior.
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Simulated Test Marketing

A study in which interviews are conducted
to determine consumer ratings of
products.
 The consumers are then given the
opportunity to purchase the product in
a simulated store environment.
 Citicorp Banks on Exploratory, Descriptive,
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and Causal Research

Business 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 Business

research to help in the design.
 Citicorp Banks on Exploratory, Descriptive,
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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 45 years
of age or older, retired, and in the upper half of the
financial strata of that market.
 Citicorp Banks on Exploratory, Descriptive,
3-31

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,
3-32

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,
3-33

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,
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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 pass all the listed hurdles and on to step 5.
 Citicorp Banks on Exploratory, Descriptive,
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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,
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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.