CHAPTER 5

1. CHAPTER 5 RESEARCH DESIGN

2. 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.

3. Research Design Classifications of Research Designs Conclusive Research Design Exploratory Research Design Descriptive Research Casual Research Cross-Sectional Design Longitudinal Design Single Cross-Sectional Design Multiple Cross-Sectional Design

4. Difference between Exploratory and Conclusive Research Exploratory Conclusive Objective: Character-istics: Findings /Results: Outcome: To provide insights and understanding. Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and non-representative. Analysis of primary data is qualitative. Tentative. Generally followed by further exploratory or conclusive research. To test specific hypotheses and examine relationships. Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative. Conclusive. Findings used as input into decision making.

5. A Comparison of Basic Research Designs T Exploratory Descriptive Causal Discovery of ideas and insights Flexible, versatile Often the front end of total research design Expert surveys Pilot surveys Secondary data Qualitative research Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Secondary data Surveys Panels Observation and other data Determine cause and effect relationships Manipulation of one or more independent variables Control of other mediating variables Experiments Objective: Characteristics: Methods:

6. Uses of Exploratory Research • Gain background information • Define terms: • Identify causes of the problem. • Clarify problems and formulation of hypotheses. • Establish research priorities.

7. 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.

8. 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?

9. 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.

10. Casual Research • Experiments: • Independent variables-X • Dependent variable-Y Y X • Extraneous variables: • Variables that have some effects on dependent variable.

11. Casual Research (cont.) • Experimental design: O=Themeasurementofdependent variable. X=Change of an independent variable. R=Random assignment of subjects. E=Experimental effect-change in dependent due to changes in independent variable

12. Casual Research (cont.) • Experimental design (Cont.): • Measurement process: • Pretest: • Measurement of the dependent variable is taken place prior to changing the independent variable. • Posttest: • 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.

13. Casual Research (cont.) • Experimental design (cont.): • After-only design: • X O1 where O1 represents the measurement of post test. • One-group, before-after design: • 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)

14. Casual Research (cont.) • Experimental design (cont.): • Validity of experiments: • Internal • External • Types of experiments: • Laboratory experiments: • Artificial environment • Field experiment: • Natural setting

15. Test Marketing • Type of test markets: • Standard test market: • Time consuming. • Competition may hear about it. • Controlled test market: • 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.

16. 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.

17. 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

18. Potential Sources of Error in Research Designs Total Error Non-sampling Error Random Sampling Error Response Error Non-response Error Researcher Error Interviewer Errors Respondent Error • Surrogate Information Error • Measurement Error • Population Definition Error • Sampling Frame Error • Data Analysis Error • Respondent Selection Error • Questioning Error • Recording Error • Cheating Error • Inability Error • Unwillingness Error