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Research Design
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Research Design

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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.

The Significance of Research Design

Although every problem and research objective may be unique there are enough similarities that allow us to make some decisions in advance about the best plan to resolve the problem. 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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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 Designs

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

Exploratory Research

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Exploratory research is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. By unstructured, we mean there is no formal set of objectives, sample plan, or questionnaire. 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.

Exploratory Research

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Many questions; many sources Defining the problem; getting a feel

Uses
Gain Background Information Define Terms Clarify Problems and Hypothesis (refine research objectives) Establish Research Priorities

Exploratory Research

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A variety of methods are available to conduct exploratory research.

Secondary Data Analysis Experience Surveys Case Analysis Focus Groups Projective Techniques

Descriptive Research

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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 studys findings to a larger population, if the studys sample is representative.

Descriptive Research

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Two basic classifications:

Cross-sectional
Longitudinal

studies
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.

Cross-sectional studies take snapshots of the population at a point in time.

Classification of Descriptive Research Studies

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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.

Descriptive Research
Panel Results
70% 60%

Marketing Survey
40% 40%

Market Share

50%

50%

Many questions; one or few sources Formal sample and questionnaire

Cory's Illegal American

60%

60%

20% 10% 0%
30%

Snapshot versus Panel Design

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30% Questionnaire 25% 20% 20% 20% 15% Sample method and size Data collection method Summer Fall Winter Spring Data analysis (quantitative) 2005

Marketing Research Panels

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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

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.
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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Changes From Two Cross-Sectional Studies

Pooch Plus dropped from 100 to 75 families. Beggars 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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Longitudinal Data Analysis

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Pooch Plus kept 50 families and lost 50 families to Beggars Bits. Pooch Plus gained 25 former Beggars Bits families. Milk Bones gained 25 former Beggars Bits families.

Conclusion: Beggars Bits is the competitionNot Milk Bone!

Causal Research

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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. 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.

Variables

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Independent variables are those variables which the researcher has

control over and wishes to manipulate. For example: level of ad expenditure; type of ad appeal; price; product features, etc.

Dependent variables are those variables that we have little or no

direct control over, yet we have a strong interest in. Examples would be return on investment, net profits, market share, customer satisfaction.

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.

Experimental Design
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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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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.

A True Experimental Design

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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.

Control of Extraneous Variables

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A control group is a group whose subjects have not been exposed to the change in the independent variable. An experimental group is a group that has been exposed to a change in the experimental variable.

How Valid are Experiments?

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An experiment is valid if it has:

Internal validity: which measures the extent to which the change in the dependent variable is actually due to the change in the independent variable. External validity: which refers to the extent that the relationship observed between the independent and dependent variables during the experiment is generalizable to the real world.

Types of Experiments

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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.
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.

Test Marketing

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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

Types of Test Markets

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Standard Test Market: one in which the firm tests the product
and/or marketing mix variables through the companys 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.

Electronic Test Markets: those in which a panel of customers have

agreed to carry identification cards that each consumer presents when buying goods and services.

Simulated Test Markets: those in which a limited amount of data on

consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generate likely sales volume.

Test Markets

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Test marketing is used in both consumer markets and industrial B2B markets as well. Lead country test market: test marketing conducted in specific foreign countries that seem good predictors for an entire continent.

Criteria for selecting test markets Representativeness: Do demographics match the total market? Degree of isolation: Phoenix and Tulsa are isolated markets; Los Angeles is not. 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 of promotional messages?

Test Marketing
Pros:

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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 to competitors Takes time to conduct