MARKETING RESEARCH RESEARCH DESIGNS GURDEEP GILL ITM EEC

Marketing Research Process

Research Design
y Definition  A framework or blueprint for conducting the marketing research project y Components  Information needed  Data collection methods  Measurement and scaling procedures  Sampling process and sample size  Data analysis procedures

Validity and Reliability.

VALIDITY
y Main question: Is the

RELIABILITY
y 3 main questions:
y Will the measures yield the same

relationship between two variables causal?

y Threats to validity:
     

results on other occasions?

y Will similar observations be

History Testing Instrumentation Mortality Maturation Ambiguity over causal direction

reached by other observers?

y Is there transparency in how

sense was made of the raw data?

Unit of Analysis
y The unit of analysis refers to the level of

aggregation of the data collected during the subsequent data analysis.  Individual  Dyads  Groups  Organizations  Cultures

Classification of Marketing Research Designs

RESEARCH DESIGN

EXPLORATORY RESEARCH DESIGN

CONCLUSIVE RESEARCH DESIGN

Descriptive Research Cross-Sectional Design

Causal Research

Longitudinal Design Traditional Panel Omnibus Panel

Single Cross-Sectional
6

Multiple Cross-Sectional

Types of Research Designs

y EXPLORATORY RESEARCH (tell me?)

Designed to generate basic knowledge, gain insights, clarify relevant issues uncover variables associated with a problem, uncover information needs, and/or define alternatives for addressing research objectives.  A very flexible, open-ended process. y DESCRIPTIVE RESEARCH (who, what, where, how)  Designed to provide further insight into the research problem by describing the variables of interest.  Can be used for profiling, defining, segmentation, estimating, predicting, and examining associative relationships. y CAUSAL RESEARCH (If-then)  Designed to provide information on potential cause-and-effect relationships.  Most practical in marketing to talk about associations or impact of one variable on another.


Exploratory Research Techniques

y SECONDARY DATA ANALYSIS

Secondary data are data previously collected & assembled for some project other than the one at hand y PILOT STUDIES  A collective term for any small-scale exploratory research technique that uses sampling but does not apply rigorous standards FOCUS GROUP INTERVIEWS Unstructured, free-flowing interview with a small group of people PROJECTIVE TECHNIQUES Indirect means of questioning that enables a respondent to project beliefs and feelings onto a third party or an inanimate object Word association tests, sentence completion tests, role playing


Exploratory Research Techniques

y CASE STUDIES  Intensively investigate one or a few situations similar to the problem situation y EXPERIENCE SURVEYS  Individuals who are knowledge about a particular research problem are questioned
 TEST

MARKETING

Test marketing is the phrase commonly used to indicate an

experiment, study, or test that is conducted in a field setting.

Types and Characteristics of Exploratory Studies

y Experience Surveys (depth interviews)

Knowledgeable people with varying points of view  Unstructured and informal interviews  Respondent free to choose issues to be discussed y Focus Groups  8 to 10 people at one time  Relatively homogeneous groups  Multiple, heterogeneous groups  Group dynamics  Moderator is key  Relies on general topical guide with plenty of time for interaction


The Growing Role of Focus Groups

y Goal of focus group research: learn and understand

what people have to say and why.

Find out

how participants feel about a product, concept, idea, organization, etc.; How it fit into their lives; Their emotional involvement with it

y May be conducted alone or as part of a broader project y May be use to define issues or to confirm findings

from survey research.

Requirements for Focus Groups

y Good group of information-rich participants

How many people?  How many groups?  Characteristics of participants y Discussion guide and outline  Ground rules  Agenda  Guiding questions y Qualified Moderator  Controls flow  Stimulates discussion y Analysis and Report


Facilitating Group Dynamics

y Use a introductions to set the tone

y y y y y

Use only first names in introductions  Avoid job titles and positions, unless necessary  State your purpose and establish position as an objective, unbiased party  Encourage everyone to participate; no right or wrong answers Use an ice breaker to get everyone comfortable State ground rules, procedural details Ask for permission to tape if possible Ensure confidentiality/anonymity  Report to contain summary of group, not individuals Use write-down method to allow for both introverts and extroverts to have input, and to lock people into their own opinions (avoids too much group think)


Handling Problems in the Focus Group

y Confusing Concept or Discussion Topic

Break the concept into components that are easier to understand  Use the confusion as a discussion point (ask for their interpretation, then attempt to resolve) y Dead Subject (no discussion initiative)  Play one person off the other.  Use projective techniques


What color do you most closely associate with . ? Why? What animal does ______ remind you of? Why? What type of people might use? Why?

y Lively Subject (everyone talking, often at once)

   

Assert leadership role and take charge Promise more discussion time later Suggest that everyone wants to hear all opinions, which is easier done one at a time Use write-down techniques to quiet the group down

Handling Problems in the Focus Group (contd)

y The Talkative Member

Leverage his/her energy to you benefit  Ask the rest of the group to respond to (agree/disagree with) what the talkative member said  Call on someone else specifically when asking questions  Say, Dont let Ed do all the talking, Id like to hear from someone else. y Silent Members  Call on them by name (John, how do you feel about)  Reinforce the value of their responses  Do this several times in a row and they will open up voluntarily  Probe their short answers for more detailed ones


Tell me more about That is interesting, why do you feel that way/

Depth Interviews
y One-on-one interviews that probe and elicit detailed answers to

questions, often using nondirective techniques to uncover hidden motivations. y Advantages  No group pressure  Respondent is focus of attention and feels important  Respondent is highly aware and active  Long time period encourages revealing new information  Can probe to reveal feelings and motivations  Discussion is flexible and can explore tangential issues y Disadvantages  Much more expensive than focus groups  Do not get the same degree of client involvement; clients do not want to observe single interviews  Are physically exhausting for the moderatorreduces the number of people that can be interviewed in a given time period.  Moderators do not have other group members to help obtain reactions and to stimulate discussion

Experiments
An experiment is defined as manipulating (changing values/situations) one or more independent variables to see how the dependent variable(s) is/are affected, while also controlling the affects of additional extraneous variables.
y Independent variables: those over which the researcher

has control and wishes to manipulate i.e. package size, ad copy, price. y Dependent variables: those over which the researcher has little to no direct control, but has a strong interest in testing i.e. sales, profit, market share. y Extraneous variables: those that may effect a dependent variable but are not independent variables.

Experimental Design
An experimental

design is a procedure for devising an

experimental setting such that a change in the dependent variable may be solely attributed to a change in an independent variable. Symbols of an experimental design: O = measurement of a dependent variable X = manipulation, or change, of an independent variable R = random assignment of subjects to experimental and control groups E = experimental effect

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

Conclusive Research
y Provide specific information that aids the decision maker in y

y y y

evaluating alternative courses of action Sound statistical methods & formal structured research methodologies are used to increase the reliability of the information Data sought tends to be specific & decisive Also more structured & formal than exploratory data Results conclusive

Types of Conclusive Research

y Descriptive Research  Describes attitudes, perceptions, characteristics, activities and situations.  Examines who, what, when, where, why, & how questions y Causal Research  Provides evidence that a cause-and-effect relationship exists or does not exist.  Premise is that something (and independent variable) directly influences the behavior of something else (the dependent variable).

Descriptive Research?
y Can involve collecting quantitative information y Can describe categories of qualitative information

such as patterns of interaction when using technology in the classroom. y Involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data. y Uses description as a tool to organize data into patterns that emerge during analysis. y Often uses visual aids such as graphs and charts to aid the reader

I keep six honest serving men, (they taught me all I knew), their names are what and why, and when, and how, and where and who --Rudyard Kipling

Common Characteristics of Descriptive Studies

 Build on previous information  Show relationships between variables  Representative samples required  Structured research plans  Require substantial resources  Conclusive findings  More rigid than exploratory  Problem well understood  Tests specific hypotheses  Formal and structured  Large representative samples  Provides a snapshot of the market environment

Descriptive Research - Uses

Market segmentation studies, i.e., describe characteristics of various groups, size of market, buying power of consumers.  Determining perceptions of company brand or product characteristics  Price and promotion elasticity studies  Product usage studies that describe consumption patterns  Sales potential studies for particular geographic region or population segment,  Advertising studies that describe media consumption habits and audience profiles for specific television programs and magazines


Major Types of Descriptive Studies

Descriptive Studies

Sales Studies

Market

Consumer Perception And Behavior Studies Image

Market Characteristic Studies

potential Market Share Sales Analysis

Distribution Competitive Analysis

Product Usage Advertising Pricing

Descriptive Research Designs CROSS-SECTIONAL DESIGNS Involves collection of information from sample of respondents only once Could have a single cross-sectional design (only one sample) or multiple cross-sectional design (many samples of respondents) Most popular design in marketing research Example: Sample surveys  Relative disadvantages compared with longitudinal design - Can not detecting change, large amount of data collection, accuracy, data soon outdated  Relative advantages over longitudinal design Representative sampling, low response bias, low cost, fast data collection Quick Snapshot

Descriptive Research Designs LONGITUDINAL DESIGNS

A fixed sample of population elements is measured repeatedly during predetermined time intervals. Also called panel study. The sample remains the same over time. Large amounts of data can be collected but can be expensive Useful for tracking changes in consumer attitudes / behavior over time Example: Diary panel data Useful for conducting trend analysis, tracking changes in behavior over time (e.g., brand switching, levels of awareness, turnover) and monitoring long-term effects of marketing activities (e.g., market share, pricing effects) y Relative advantages over cross-sectional design - Detecting change, higher reliability, large amount of data collection, and accuracy y Relative disadvantages compared with cross-sectional design Representative sampling, response bias, high cost, data collection takes a long time and requires a lot of cooperation

Cross Sectional vs. Longitudinal Designs

Cross Sectional Design

Sample Surveyed at T1

Longitudinal Design

Sample Surveyed at T1

Same Sample also Surveyed at T2

Time

T1

T2

Marketing Research Panels

y Continuous panels ask panel members the same

questions on each panel measurement. y 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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Causal Research
y Objective: Used to understand which variables are

causes (independent variables), and which variables are the effects (dependent variables) y Causality may be thought of as understanding a phenomenon in terms of conditional statements of the form If x, then y. y Causal studies are conducted through the use of experiments.
 Independent variable manipulated in a relatively

controlled environment

Causal Research Designs

y Evidence to Support Causation


Concomitant variation Extent to which the cause and effect vary together as hypothesized If X is supposed to cause Y, then the two variables must move together. Time order of occurrence / Logical Time Sequence For causality to exist, the cause must either precede or occur simultaneously with the effect If X is supposed to cause Y, then changes in X must precede changes in Y. Elimination of other possible causes If X causes Y, no other factor could have reasonably caused the change in Y at that moment. Must hold all other variables constant.

Causal Research Designs

y Experiments are the best way to satisfy elements of causation. y May be Field Experiment or Laboratory Experiment y Tradeoff between realism versus control y Examples of experimentation in marketing
  

  

Market test (test marketing) Advertising response (recall, affect, attitude toward ad elements) Promotional design (consumer response to promotional deals, incentives, tie-ins Store layout and design Product positioning Color tracking and package design

Experiments
y An experiment is defined as manipulating an independent variable to

y y

see how it affects a dependent variable, while also controlling the effects of additional extraneous variables. 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.
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Experimental design Types of Experiments

y 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. y 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. (Contrived Setting) y 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. (Non Contrived Setting)
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Test Marketing
y TEST MARKETING is the phrase commonly used to indicate an

experiment, study, or test that is conducted in a field setting. y 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 y Standard Test Market: the firm tests the product and/or marketing mix variables through the companys normal distribution channels. y Controlled Test Markets: conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors. y Electronic Test Markets: a panel of customers have agreed to carry identification cards that each consumer presents when buying y Simulated Test Markets: 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.

How Descriptive & Causal Designs Differ

y Relationship between the variables  Descriptive designs determine degree of association  Causal designs infer whether one or more variables influence another variable y Degree of environmental control


Descriptive designs enjoy lesser degrees of control

y Order of the variables  In descriptive designs, variables are not logically ordered

Uncertainty Influences The Type Of Research

CAUSAL OR DESCRIPTIVE EXPLORATORY

COMPLETELY CERTAIN

ABSOLUTE AMBIGUITY

Exploratory Research (Unaware of Problem) Our sales are declining and we dont know why. Would people be interested in our new product idea?

Descriptive Research (Aware of Problem) What kind of people are buying our product? Who buys our competitors product? What features do buyers prefer in our product?

Causal Research (Problem Clearly Defined) Will buyers purchase more of our products in a new package? Which of two advertising campaigns is more effective?

EXPLORATORY

DESCRIPTIVE

CAUSAL

PURPOSE

ID PROBLEMS, GAIN INSIGHTS, DISCOVER IDEAS FLEXIBLE, VERSATILE, NON STRUCTURED, FRONT END RESEARCH SECONDARY DATA HIGH SMALL. NONREPRESENTATIVE RELAXED LOW PRELIMINARY/ TENTATIVE

DESCRIBE THINGS / MKT CHARACTERISTICS PRIOR STRUCTURED FORMULATION OF HYPOTHESIS SURVEYS SOME LARGE. REPRESENTATIVE FORMAL MEDIUM CONCLUSIVE

DETERMINE CAUSE-ANDEFFECT RELATIONSHIPS

CHARACTERIST ICS

MANIPULATIVE. INDEPENDENT VARIABLES EXPERIMENTS LITTLE REPRESENTATIVE HIGHLY CONTROLLED HIGH CONCLUSIVE. HELP DECISIONS

METHODS FLEXIBILITY SAMPLE RESEARCH ENVIRONMENT COST FINDINGS