CHAPTER 5
RESEARCH DESIGN
Important Topics of this
Chapter
Types of research designs.
Methods of conducting different
research designs.
Experimental research process.
Test marketing and types of test
markets.
Classifications of
Research Designs
Research Design
Conclusive
Research Design
Exploratory
Research Design
Descriptive
Research
Cross-Sectional
Design
Single CrossSectional Design
Casual
Research
Longitudinal
Design
Multiple CrossSectional Design
Difference between Exploratory and
Conclusive Research
Objective:
Exploratory
Conclusive
To provide insights and
understanding.
To test specific hypotheses
and examine relationships.
Character- Information needed is
istics:
defined only loosely.
Research process is flexible
and unstructured. Sample
is small and nonrepresentative. Analysis of
primary data is qualitative.
Information needed is clearly
defined. Research process is
formal and structured. Sample
is large and representative.
Data analysis is quantitative.
Tentative.
Findings
/Results:
Generally followed by
Outcome: further exploratory or
conclusive research.
Conclusive.
Findings used as input into
decision making.
T
A Comparison of Basic Research Designs
Exploratory
Objective:
Discovery of
ideas and
insights
Causal
Describe market
characteristics or
functions
Determine cause
and effect
relationships
Marked by the prior
formulation of
specific
hypotheses
Manipulation of
one or more
independent
variables
Often the front
end of total
research design
Preplanned and
structured design
Control of other
mediating
variables
Expert surveys
Pilot surveys
Secondary data
Qualitative
research
Secondary data
Surveys
Panels
Observation and
other data
Experiments
Characteristics: Flexible,
versatile
Methods:
Descriptive
Uses of Exploratory
Research
Gain background information
Define terms:

Identify causes of the problem.
Clarify problems and formulation of
hypotheses.
Establish research priorities.
Methods Conducting
Exploratory Research
Secondary data analysis:


Library.
Internet.
Experience surveys.
Case analysis.
Focus group interviews.
Projective techniques:

Hidden consumer motives for buying goods/services:



Sentence completion test.
Cartoon tests.
Story telling.
Descriptive Research
Who are the customers?
What did they buy?
When did they buy it?
How did they buy it?
Why did they buy it?
Applications of
Descriptive Research
Cross sectional studies:



Sample surveys
One time measurement.
Outnumbered the longitudinal studies.
Longitudinal studies:

Repeated measurements on the same sample.


Traditional panels:
 Ask same questions to same panel each time.
Omnibus panels:
 Different questions from one panel measurement to
the next.
Casual Research
Experiments:
Independent variables-X
 Dependent variable-Y
Y
X
 Extraneous variables:


Variables that have some effects on dependent
variable.
Casual Research (cont.)
Experimental design:
O=The measurement of dependent variable.
X=Change of an independent variable.
R=Random assignment of subjects.
E=Experimental effect-change in dependent
due to changes in independent variable
Casual Research (cont.)
Experimental design (Cont.):

Measurement process:

Pretest:


Posttest:


Measurement of the dependent variable is taken place
prior to changing the independent variable.
Measurement of dependent variable is taken after the
changing the independent variable.
True experimental design:

Truly isolates the effects of the independent variable on the
dependent variable.
Casual Research (cont.)
Experimental design (cont.):

After-only design:


One-group, before-after design:


X O1 where O1 represents the measurement of post test.
O1 X O2 where E= O2 – O1
Before-after with control group:


Experimental group (R) O1 X O2
Control group (R)
O3 O4
Where E=(O2 - O1) – (O4 – O3)
Casual Research (cont.)
Experimental design (cont.):

Validity of experiments:
Internal
 External


Types of experiments:

Laboratory experiments:


Artificial environment
Field experiment:

Natural setting
Test Marketing
Type of test markets:

Standard test market:



Controlled test market:



Time consuming.
Competition may hear about it.
Guaranteed shelf space.
Fastest distribution;however, it may not be the same in
actual distribution network.
Electronic test markets:




Panel of consumers.
Small number of cities will participate.
Offers speed, confidentiality and low cost.
However, it is not a real market.
Test Marketing (cont.)
Simulated test market:





Respondent are selected based upon predetermined
demographic characteristics.
Consumers are shown commercials.
Consumers are given opportunity to purchase.
Consumer re-contacted after the opportunity to use it.
Information is fed into data file to use for marketing mix
decision.

Advantages:



Faster than standard test market.
Less costly
However, it may not be accurate.
Consumer Test markets.
Industrial test markets.
Pros and Cons of Test
Marketing
Provides first hand information about product
quality, features and satisfaction level.
It may help to discover the defects.
It may give wrong information because
consumer’s preferences may change
overtime.
Competitors may sabotage it.
Competitors may gather product information.
It is time consuming and costly
Potential Sources of Error in
Research Designs
Total Error
Non-sampling
Error
Random Sampling
Error
Response
Error
Researcher
Error
•Surrogate Information Error
•Measurement Error
•Population Definition Error
•Sampling Frame Error
•Data Analysis Error
Interviewer
Errors
•Respondent Selection Error
•Questioning Error
•Recording Error
•Cheating Error
Non-response
Error
Respondent
Error
•Inability Error
•Unwillingness Error