research design formulation mktg 3350: marketing research yacheng sun leeds school of business 1

Research Design Formulation

MKTG 3350:MARKETING RESEARCH

Yacheng SunLeeds School of Business

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Application to Contemporary IssuesTechnology EthicsInternational

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Research Design Definition

Types of Basic Research Designs

Exploratory Research

Table 3.2

Table 3.1Fig 3.4

Fig 3.3

Figure 3.2 Research Design: An Overview

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Application to Contemporary Issues Technology EthicsInternational

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Descriptive Research

Causal Research

Tasks Involved in Research Design Formulation

Figs 3.5 & 3.6Cross-Sectional Longitudinal

Table 3.3

Relationship Among Exploratory, Descriptive, and Causal Research

Fig 3.7

Fig 3.8

Figure 3.2 Research Design: An Overview (Cont.)

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Application to Contemporary Issues (Fig. 3.9)Technology EthicsInternational

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Figure 3.2 Research Design: An Overview (continued)

Informational Value and the Cost ofMarketing Research

Budgeting and Scheduling the Project

Marketing Research Proposal

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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,and Causal Research

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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.

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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.


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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.


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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?


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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.


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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.


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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.


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Define the Marketing Research Problem

Develop an Approach to the Problem

Formulate the Research Design

Figure 3.3. Steps Leading to the Formulation of a Research Design

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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.

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Research Design: Some Observations

• The overall research design for a project may include one or more of these three designs as part(s) of it.

• Further, if more than one design is to be used, typically we progress from Exploratory toward Causal.

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Components of a Research Design• Define the information needed (Chapter 2)

• Design the exploratory, descriptive, and/or causal phases of the research (Chapters 3 - 8)

• Specify the measurement and scaling procedures (Chapters 9 and 10)

• Construct and pretest a questionnaire (interviewing form) or an appropriate form for data collection (Chapter 11)

• Specify the sampling process and sample size (Chapters 12 and 13)

• Develop a plan of data analysis (Chapter 15)

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Research Design

Exploratory ResearchDesign

Causal Research

Conclusive ResearchDesign

Cross-SectionalDesign

Descriptive Research

LongitudinalDesign

Figure 3.4. A Classification of Market Research Designs

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Exploratory ConclusiveObjective: To provide insights

and understanding.To test specifichypotheses andexamine relationships.

Characteristics: Information needed is defined only loosely.

Information neededis clearly defined.

Research process is flexible andunstructured.

Research processis formal and structured.

Sample is small andnonrepresentative

Sample is large andrepresentative.

Data analysis is qualitative.

Data analysis isquantitative.

Table 3.1Differences Between Exploratory and Conclusive Research

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Table 3.1 (Cont.)Differences Between Exploratory and Conclusive Research

Exploratory ConclusiveFindings: Tentative. Conclusive.

Outcome: Generally followed byfurther exploratory orconclusive research.

Findings used as input into decision making.

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Exploratory Descriptive CausalObjective: Discovery of

ideas andinsights.

Describe marketcharacteristicsor functions.

Determinecause and effectrelationships.

Character-istics:

Flexible.

Versatile.

Often thefront end oftotal researchdesign.

Marked by theprior formulation of specifichypotheses.

Preplanned andstructureddesign.

Manipulation of one or moreindependentvariables.

Control of othermediatingvariables.

Table 3.2A Comparison of Basic Research Designs

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Table 3.2 (Cont.)A Comparison of Basic Research Designs

Exploratory Descriptive CausalMethod: Expert surveys.

Pilot surveys.

Case studies.

Secondary data(qualitative).

QualitativeResearch.

Secondary data(quantitative).

Surveys.

Panels.

Observationaland other data.

Experiments.

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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 research23

Methods of Exploratory Research

• Survey of experts (discussed in Chapter 2)

• Pilot surveys (discussed in Chapter 2)

• Secondary data analyzed in a qualitative way (discussed in Chapter 4)

• Qualitative research (discussed in Chapter 5)

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“If you wish to know the road up themountain, you must ask the man who goes back and forth on it.”

-- Zenrinkusi

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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Descriptive Research Example

Weight Watchers average customer• Woman about 40 years old• Household income of about $50,000• At least some college education• Trying to juggle children and a job

• Bestbuy focuses on catering to high profit customers – sometimes by firing customers that costs it money.

• “Devils” are customers who “buy products, apply for rebates, return the purchases, then buy them back at returned-merchandise discounts”.

• Analysis also revealed highly profitable customer segments, such as upper income men, suburban women and technology lovers.

• Bestbuy are also motivated to renovate many of its business practices

Are customers born equal?

Methods of Descriptive Research

• Secondary data analyzed in a quantitative as opposed to a qualitative manner (discussed in Chapters 4 and 5)

• Surveys (Chapter 7)

• Panels (Chapters 5 and 7)

• Observational and other data (Chapter 7)

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Figure 3.5. Major Types of Descriptive Studies

Descriptive Studies

Consumer PerceptionAnd Behavior Studies

• Image

• Product Usage

• Advertising

• Pricing

MarketCharacteristicStudies

• Distribution

• Competitive Analysis

• Market Potential

• Market Share

• Sales Analysis

Sales Studies

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Cross-sectional and Longitudinal Designs

• A cross-sectional design involves the collection of information from any given sample of population elements only once.

• In a longitudinal design, 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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Sample Surveyed

at T1

Sample Surveyed

at T1

Same Sample

also Surveyed

at T2

T1 T2

Cross- Sectional Design

Longitudinal Design

Time

Figure 3.6. Cross-Sectional vs. Longitudinal Designs

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Evaluation Criteria Cross-SectionalDesign

LongitudinalDesign

Detecting change - +

Large amount of data collection - +

Accuracy - +

Representative sampling+ -

Response bias + -

Table 3.3Relative Advantages and Disadvantages of Longitudinal and

Cross-Sectional Designs

Note: A + indicates a relative advantage over the other design whereas a - indicates a relative disadvantage.

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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.

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Consumption of Various Soft Drinksby Various Age Cohorts

8-1920-2930-3940-4950+

Age 1960 1969 19791950

52.945.233.923.218.1

62.660.746.640.828.8C1

73.276.067.758.650.0C2

81.075.871.467.851.9C3

C8C7C6C5C4

C1: cohort born prior to 1900C2: cohort born 1901-10C3: cohort born 1911-20C4: cohort born 1921-30

C5: cohort born 1931-40C6: cohort born 1940-49C7: cohort born 1950-59C8: cohort born 1960-69

Percentage consuming on a typical day

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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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Cross-Sectional Data May Not Show Change

Brand Purchased Time Period

Period 1 Period 2Survey Survey

Brand A 200 200Brand B 300 300Brand C 500 500Total 1000 1000

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Longitudinal Data May ShowSubstantial Change

Brand Purchased in Period 1

Brand Purchased in Period 2

Brand A Brand B Brand C Total

Brand ABrand BBrand CTotal

100 25 75200

50100150300

50175275500

200 300 5001000

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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

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Types of Experiments

• Two broad classes:• Laboratory experiments: 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

• Field experiments: those in which the independent variables are manipulated and measurements of the dependent variable are made on test units in their natural setting

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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.

• Two broad classes:• To test the sales potential for a new product or

service• To test variations in the marketing mix for a

product or service

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Types of Test Markets

• Standard test market: one in which the firm tests the product and/or marketing mix variables through the companies normal distribution channels

• Controlled test markets: ones that are conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors

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Criteria for Selecting Test Market Cities

• Representativeness: Do demographics match the total market?

• Degree of isolation: Phoenix and Tulsa are isolated markets; Los Angeles is not isolated.

• Ability to control distribution and promotion: Are there preexisting arrangements to distribute the new product in selected channels of distribution? Are local media designed to test variations in promotional messages?

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Test Marketing

• Pros:• Allows most accurate method of forecasting

future sales• Allows firms the opportunity to pretest

marketing mix variables• Cons:

• Does not yield infallible results• Are expensive• Exposes the new product or service to

competitors• Takes time to conduct

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Exploratory Research•Secondary Data Analysis

•Focus Groups

Conclusive Research•Descriptive/Causal


Exploratory Research

•Secondary Data Analysis

•Focus Groups


Figure 3.7. Some Alternative Research Designs

(a)

(b)

(c)

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Define the Information Needed

Design the Exploratory, Descriptive, and/or Causal Phases of the Research

Specify the Measurement and Scaling Procedures

Construct a Questionnaire

Specify the Sampling Process and the Sample Size

Develop a Plan of Data Analysis

Figure 3.8. Tasks Involved In a Research Design

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research design formulation mktg 3350: marketing research yacheng sun leeds school of business 1

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