Research Design

• 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.
• It is the arrangement of conditions for collection
and analysis of data in a manner that aims to
combine relevance of research purpose with
economy in procedure.
 Components of a Research
Design
• Define the information needed
• Design the exploratory, descriptive, and/or
causal phases of the research
• Specify the measurement and scaling
procedures Construct and pretest a
questionnaire (interviewing form) or an
appropriate form for data collection
• Specify the sampling process and sample size
• Develop a plan of data analysis
 Parts of research design:
• the sampling design- deals with the methods of
selecting items to be observed for the given study.
• Observational design- relates to conditions under which
observations are to be made.
• Statistical design- it concern with the question of how
many items are to be observed and how the information
and data gathered are to be analyzed.
• Operational design- deals with techniques by which the
procedures specified in the sampling, statistical and
observational designs can be carried out.
 Features of good design
• Flexible
• Appropriate
• Efficient
• Economical
• Minimize bias
• Maximize the reliability.
 Important Concepts

• Confounded relationship
• Experimental and non experimental hypothesis testing research.
Independent variables are variables or alternatives that are manipulated
and whose effects are measured and compared, e.g., price levels.
• Test units are individuals, organizations, or other entities whose response
to the independent variables or treatments is being examined, e.g.,
consumers or stores.
• Dependent variables are the variables which measure the effect of the
independent variables on the test units, e.g., sales, profits, and market
shares.
• Extraneous variables IV that are not related to the purpose of the
study but may affect the dependent variable (experimental error)are
all variables other than the independent variables that affect the response of
the test units, e.g., store size, store location, and competitive effort.
A Classification of Marketing
Research Designs
Research Design

Exploratory Conclusive
Research Design Research Design

Descriptive Causal
Research Research

Cross-Sectional Longitudinal
Design Design

Single Cross- Multiple Cross-

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

Findings/ Tentative Conclusive

Results:

Outcome: Generally followed by further Findings used as input into decision

exploratory or conclusive making
research
 A Comparison of Basic Research Designs
Table 3.2
Exploratory Descriptive Causal
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 specific independent
hypotheses variables, effect
on dependent
Often the front end Preplanned and variables
of total research structured design
design Control mediating
variables
Expert surveys Secondary data:
Methods: Pilot surveys quantitative analysis Experiments
Case studies Surveys
Secondary data: Panels
qualitative analysis Observation and other
qualitative research data
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
 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
 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.
 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
 Cross-Sectional vs. Longitudinal
Cross- Sample
Sectional Surveyed
Design at T1

Same
Sample Sample also
Longitudinal Surveyed at
Design Surveyed at
T1 T2

Time T1 T2
 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
 Alternative Research Designs
Exploratory Research
(a) • Secondary Data Conclusive Research
Analysis •Descriptive/Causal
• Focus Groups

(b) Conclusive Research

•Descriptive/Causal

Exploratory
Conclusive Research Research
(c) • Secondary Data
•Descriptive/Causal
Analysis
• Focus Groups
 Potential Sources of Error in Research Designs

Fig. 3.2
Total Error

Random Non-sampling
Sampling Error Error

Response Non-response
Error Error

Researcher Interviewer Respondent

Error Error Error
Surrogate Information Error Respondent Selection Error Inability Error
Measurement Error Questioning Error Unwillingness Error
Population Definition Error Recording Error
Sampling Frame Error Cheating Error
Data Analysis Error
• 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.
• 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 mis-recorded or mis-analyzed.
 Research design in case of exploratory
research or formulative research studies
• Deals with discovery of idea or insight
• Design must be flexible
• Sampling design- non probability (purposive or
judgmental)
• Statistical design- not pre planned
• Observational design- unstructured instruments
• Three methods are included-
• Survey of concerning literature
• Experience survey
• Analysis of insight stimulating examples.
 Research design in case of descriptive or
diagnostic research
• Rigid not flexible
• Well examined
• Unambiguous
• Sampling design- probability (random)
• Statistical design- pre planned
• Observational design-Structured instruments are used
• Also known as survey design
• Procedures used should be such which- reduces
bias and increases reliability.
 Research design in case of hypothesis
testing research or causal research
• Procedures used should be such which
not only- reduces bias and increases
reliability but also permit drawing
inferences about causality.
• Experimental designs are used for testing
hypothesis concerning scientific
investigations.
• Meaning of Experimentation
• Experiments are studies involving
intervention by the research beyond
measurement. The usual intervention is to
manipulate some variable in a setting and
observe how it affects the subject being
studied.
 Basic Principles of experimental
designs
• 1. Principles of Replication-
• 2. Principles of Randomization
• 3. Principles of Local Control
 Experimental Design
• Informal Types of Experiments
• Before- and after without control group
• After only with control design
• Before and after with control design

• Formal Type of Experiments

• Completely Randomized Design
• Randomized Block Design
• Latin Square Design
• Factorial Design
• Informal Experimental Designs
– Before- and after without control group: the
dependent variable is measured before the treatment
is given and after the treatment is given in a single
test group or area.
– Treatment Effect = Y-X
– Where Y is the magnitude after treatment
– X is the magnitude before the treatment is
given
– SHORTCOMING- with the passage of time
considerable extraneous variations may be there in its
treatment effect.
• After only control design:
Two comparable groups are selected (control
group and experimental group) and treatment is given
only in experimental group. The dependent variable
is measured in both the group at the same time.
– Treatment Effect = Y-Z
– Where Y is level of phenomenon after treatment and
Z is level of phenomenon without treatment.
– Basic assumption is that two areas are identical with
respect to their behavior towards phenomenon
considered.
• Before and after with control:- in this design
two area are selected and the dependent
variable is measured in both the areas for an
identical time period before the treatment.
• The treatment is then introduced into the test
area only.
• Dependent variable is measured in both for an
identical time-period after introduction of
treatment.
 Time period I Time Period II

Test Area level of phenomenon level of

before treatment (X) phenomenon after
Treatment
Introduced treatment (Y)

Control area level of phenomenon level of phenomenon

without treatment (A) without treatment (Z)

Treatment Effect= (Y-X)- (Z-A)

 Formal experimental design
• Completely randomized design: (CR Design)
 Randomized Block Design
• Is useful when there is only one major external variable, such as
store size, that might influence the dependent variable.

• The test units are blocked, or grouped, on the basis of the external
variable.

• By blocking, the researcher ensures that the various experimental

and control groups are matched closely on the external variable

• The major limitation of this method is that the researcher can control
only one external variable. When more than one variable need to be
controlled – latin square or factorial designs are used.
Example: three test commercial A,Band C
have been made for a store they have no
humor, some humor and high level of humor
respectively .
Which of these will be the most effective?
Management feels that the respondents
evaluation of the commercial will be
influenced by the extent of their store
patronage
• so store patronage is identified as the
blocking variable .
• Randomly selected respondents are
classified into four blocks (heavy, medium,
low, none)
• respondents from each block are
randomly assigned to the treatment
groups (test commercial A,B and C)
• Treatment Groups
Block Store Commercial
CommercialCommercial
• Number Patronage A B C
•
• 1 Heavy A B C
• 2 Medium A B C
• 3 Low A B C
• 4 None A B C
 Latin Square Design
• Allows the researcher to statistically control two non interacting external
variables as well as to manipulate the independent variable.
• Each external or blocking variable is divided into an equal
number of blocks, or levels.
• The independent variable is also divided into the same
number of levels.
• A Latin square is conceptualized as a table, with the rows and
columns representing the blocks in the two external variables.
• The levels of the independent variable are assigned to the
cells in the table.
• The assignment rule is that each level of the independent
variable should appear only once in each row and each
column.
 Interest in the Store
Store Patronage High Medium Low

Heavy B A C
Medium C B A
Low and none A C B

In this example in addition to the control for store patronage, the

researcher also wanted to control interest in store.
Such design requires equal no of rows and columns
A,B,C appears only once in each row and each column.
 Factorial Design
• LS Design do not allow researcher to examine
interactions of external variables with each other or with
independent variables. To examine interactions, factorial
designs are used.
• Is used to measure the effects of two or more
independent variables at various levels.
• A factorial design may also be conceptualized as a table.
• In a two-factor design, each level of one variable
represents a row and each level of another variable
represents a column.
• Amount of Humor
• Amount of Store No Medium High
• Information Humor Humor Humor
• Low A B C

• Medium D E F

• High G H I
• Factorial designs involve a cell for every
possible combination of treatment variables.
• Suppose that in previous example , in
addition to examining the effect of humor, the
researcher was also interested in
simultaneously examining the effect of amt.
of store information.
• Further the amt. of store information also
varied at three levels – high,medium and low
• This would require 3*3=9 cells
• Thus 9 different commercials would be produced,
each having a specific level of store information and
amt. of humor
• The respondents will be randomly selected and
assigned to the nine cells.
• Respondents in each cell will receive a specific
treatment combination
• The results reveled a significant interaction between
two variables.