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Marketing Research: An Applied Orientation

Seventh Edition

Chapter 3
Research Design

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Chapter Outline (1 of 3)
1) Overview
2) Research Design: Definition
3) Research Design: Classification
4) Exploratory Research
5) Descriptive Research
I. Cross-Sectional Design
II. Longitudinal Design
III. Advantages and Disadvantages of Longitudinal and
Cross-Sectional Designs

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Chapter Outline (2 of 3)
6) Causal Research
7) Relationships Among Exploratory, Descriptive, and
Causal Research
8) Potential Sources of Error
I. Random Sampling Error
II. Non-sampling Error
a. Non-response Error
b. Response Error
9) Budgeting and Scheduling

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Chapter Outline (3 of 3)
10) Marketing Research Proposal
11) International Marketing Research
12) Marketing Research & Social Media
13) Mobile Marketing Research
14) Ethics in Marketing Research
15) Summary

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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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Components of a Research Design
• Define the information needed (Chapter 2)
• Design the exploratory, descriptive, and/or causal phases
of the research (Chapters 3 – 7)
• Specify the measurement and scaling procedures
(Chapters 8 and 9)
• Construct and pretest a questionnaire (interviewing form)
or an appropriate form for data collection (Chapter 10)
• Specify the sampling process and sample size (Chapters
11 and 12)
• Develop a plan of data analysis (Chapter 14)
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A Classification of Marketing Research
Designs
Figure 3.1 A
Classification of
Marketing
Research
Designs

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Exploratory & Conclusive Research
Differences
Table 3.1 Differences Between Exploratory and Conclusive
Research
Blank Exploratory Conclusive
Objective: To provide insights and To test specific hypotheses and
understanding examine relationships
Characteristics: Information needed is defined only Information needed is clearly
loosely. Research process is defined. Research process is
flexible and unstructured. Sample formal and structured. Sample
is small and nonrepresentative. is large and representative.
Analysis of primary data is Data analysis is quantitative.
qualitative.
Findings/Results: Tentative Conclusive
Outcome: Generally followed by further Findings used as input into
exploratory or conclusive research decision making

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A Comparison of Basic Research Designs
Table 3.2 A Comparison of Basic Research Designs
Blank Exploratory Descriptive Causal
Objective: Discovery of ideas and Describe market Determine cause-and-
insights characteristics or functions effect relationships
Characteristics: Flexible, versatile Marked by the prior Manipulation of one or
formulation of specific more independent
hypotheses variables
Often the front end of total Preplanned and structured Measure the effect on
research design design dependent variable(s)
Control of other
mediating variables
Methods: Expert surveys Secondary data: quantitative Experiments
Pilot surveys analysis
Case studies Surveys
Secondary data: qualitative Panels
analysis Observation and other data
Qualitative research

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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
• 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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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 (discussed in Chapter 4)
• Surveys (Chapter 6)
• Panels (Chapters 4 and 6)
• Observational and other data (Chapter 6)

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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 Drinks by
Various Age Cohorts
Percentage consuming on a typical day
Age 1950 1960 1969 1979 Blank

8-19 52.9 62.6 73.2 81.0 Blank


20-29 45.2 60.7 76.0 75.8 C8
30-39 33.9 46.6 67.7 71.4 C7
40-49 23.2 40.8 58.6 67.8 C6
50+ 18.1 28.8 50.0 51.9 C5
Blank Blank  C1 C2 C3 C4
C1: cohort born prior to 1900 C5: cohort born 1931-40
C2: cohort born 1901-10 C6: cohort born 1940-49
C3: cohort born 1911-20 C7: cohort born 1950-59
C4: cohort born 1921-30 C8: cohort born 1960-69
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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 vs. Longitudinal

Cross- Sample
Sectional Surveyed
Design at T1

Same
Sample
Longitudin Sample also
Surveyed
al Design Surveyed at
at T1
T2

Time → T1 T2

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Relative Advantages and Disadvantages of
Longitudinal and Cross-Sectional Designs
Table 3.3 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.

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Cross-Sectional Data May Not Show Change
Table 3.4 Cross-Sectional Data May Not Show Change

Blank Time Period Blank


Brand Purchased Period 1 Survey Period 2 Survey
Brand A 200 200
Brand B 300 300
Brand C 500 500
Total 1,000 1,000

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Longitudinal Data May Show Substantial
Change
Table 3.5 Longitudinal Data May Show Substantial Change

Brand Purchased in Brand Purchased in Blank Blank Blank


Period 1 Period 2
Blank 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 1,000

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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

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Potential Sources of Error in Research
Designs
Figure 3.2 Potential
Sources of Error in
Research Designs

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Errors in Marketing Research (1 of 2)
• 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.
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Errors in Marketing Research (2 of 2)
• 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.

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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (1 of 8)
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.

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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (2 of 8)
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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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (3 of 8)
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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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (4 of 8)
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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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (5 of 8)
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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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (6 of 8)
 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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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (7 of 8)
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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Citicorp Banks on Exploratory, Descriptive,
and Causal Research (8 of 8)
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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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

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International Marketing Research (1 of 2)
• Given environmental and
cultural differences, a
research design
appropriate for one country
might not be suitable for
another.
• In developing countries,
consumer panels often are
not available, which makes
it difficult to conduct
descriptive longitudinal
research.
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International Marketing Research (2 of 2)
• In many countries, the marketing support infrastructure –
retailing, wholesaling, advertising, and promotion
development – is often lacking, which makes it difficult to
implement a causal design involving a field experiment.
• In formulating a research design, considerable effort is
required to ensure the equivalence and comparability of
secondary and primary data obtained from different
countries.

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Marketing Research & Social Media (1 of 3)
• One reason why social networks can be suitable for
conducting marketing research is that they eliminate the
onerous cost of building and maintaining traditional panels.
• The key is to analyze the characteristics of each social
network and choose the network that most closely
matches your research objectives.

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Marketing Research & Social Media (2 of 3)
• These network communities can be used to recruit
marketing research panels and are distinguished by some
key characteristics. Membership is voluntary and
reputations are earned by winning the trust of other
members. The community’s mission and governance is
defined by the community’s members themselves.
• These communities are in contrast to traditional marketing
research panels in which users’ roles are determined by
the researcher and governed by well-defined regulations.

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Marketing Research & Social Media (3 of 3)
• Online communities range from being open to the public -
Facebook, MySpace - to completely private, closed, by
invitation-only.
• Private communities are primarily built for discovery and
insight purposes and are called MROCs (Marketing
Research Online Communities).
• Unlike public communities with no limit on the number of
members, MROCs generally restrict membership.
• Disney set up the Walt Disney Moms Panel featuring
moms who answer questions about the company’s theme
parks and vacation resorts from prospective visitors.
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Mobile Marketing Research
• Mobile marketing research (MMR) can be conducted to
implement any of the basic research designs.
• The use of MMR to implement exploratory research is
discussed in Chapters 4 and 5.
• The use of MMR to implement surveys and observation
research, the major methodologies of descriptive research,
is covered in Chapter 6.
• Finally, the use of MMR for conducting causal research, is
presented in Chapter 7.

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Ethics in Marketing Research (1 of 2)
• The choice of a research design has ethical overtones for
both the client and the research firm.
• Researchers must ensure that the research design will
provide the information needed to address the marketing
research problem.
• The client should have the integrity not to misrepresent the
project, should describe the constraints under which the
researcher must operate, and should not make
unreasonable demands.

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Ethics in Marketing Research (2 of 2)
• It would be unethical for a client to extract details from a
proposal submitted by one research firm and pass them to
another who actually would do the project for the client.
• The client should not take advantage of the research firm
by making false promises of future research contracts in
order to solicit concessions for the current project.

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Toluna: A Leading Digital Insights
Company (1 of 2)
Toluna (http://www.toluna-group.com/) is a leading digital
insights company. The Online Research Center conducts
focus groups, surveys, and polls over the Internet. The
company has built up a “panel” of several million 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.

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Toluna: A Leading Digital Insights
Company (2 of 2)
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 e-mail address, type of
computer used, personal interests, and information about the
respondent’s household. Once an Internet user is registered, Toluna
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 Toluna´s Internet
panel. New registrants automatically qualify for prizes that are awarded
periodically.

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