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Research DesignResearch Design
1. Design exploratory, descriptive and/ or causal phases of the
research
2. Specify information needs
3. Specify the measures and scales
4. Questionnaire design & pretest
5. Specify samp ling process & sample size
6. Data Analysis Plan
All of the above six steps must be completed p rior to any d ata collection
Framework or bluepr int for condu cting the marketing research p roject
Details the procedures necessary for solving the Marketing
Research Problem
Componen ts of a research design
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FIGURE 4.1 A Classification of Marketin g Research DesignsFIGURE 4.1 A Classification of Marketin g Research Designs
Research DesignResearch Design
ExploratoryExploratory
Research DesignResearch Design
ConclusiveConclusive
Research DesignResearch Design
Descriptive ResearchDescriptive ResearchCausalCausal
ResearchResearch
Cross-SectionalCross-Sectional
DesignDesign
LongitudinalLongitudinal
DesignDesign
SingleSingle
Cross-SectionalCross-Sectional
MultipleMultiple
Cross-SectionalCross-Sectional
Important Note: The Typical MR Project
MR Project uses 2 of the 3 Research designs in
conjunction
11
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Recognizing and definingRecognizing and defining
decision problemdecision problem
Exploratory researchExploratory research
Identifying coursesIdentifying courses
of actionof action
Evaluating coursesEvaluating courses
of actionof action
Conclusive researchConclusive research
Selecting a courseSelecting a course
of actionof action
Performance-monitoringPerformance-monitoring
researchresearchImplementingImplementing
1. Descriptive1. Descriptive
2. Causal2. Causal
FeedbackFeedback
MKTG. DECISION-
MAKING PROCESS
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Table 4.2 A Comparison of Basic Research D esignsTable 4.2 A Comparison of Basic Research Designs
Exploratory
Objective:
Characteristics:
Methods:
Discovery of ideas an d insights
Flexible
Versatile
Often the front end of total
research design
Expert surveys
Pilot surveys
Case studies
Secondary d ata
Qualitative research
Describe market char acteristics
or functions
Marked by th e prior formulation
of specific hypoth eses
Preplanned and structured
design
Secondary d ata
Surveys
Panels
Observational and other d ata
Determine cause an d effect
relationships
Manipu lation of one or more
independent variables
Control of other m ediating
variables
Experiments
IMPORTANT CONCEPT: The Marketing Managers Causal Mod el based on Judgm ent &Experience
MKTG. = M.R. + MKTG.. Mgr.'s
DECISION INFO CAUSAL MODEL
Descrip tive Causal
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Three Research Ap proaches
Research Purpose Research Question Hypothesis
Exploratory research1. What new product should be
developed?
2. What product appeal will be
effective in adv ertising?
3. How can our service be
improved?
What alternative ways are there to
provide lunches for school children?
What benefits do people seek from the
product?
What is the nature of any customer
dissatisfaction?
------------------
Constructs unknown
Susp ect that an image of
impersonalization is a problem
EXP
L
Descript iv e research
4. How should a new product be
distributed?
5. What should be the target
segment?
6. How should our product be
changed?
Where do people now bu y similar
products?
What kinds of people now bu y the
product, and w ho buys our brand?
What is our current image?
Upper-class buyers use specialty stores
and midd le-class buyers usedepartm ent stores.
Older people buy our brand , whereas
the young m arrieds are heavy users of
competitors.
We are regarded as being
conservatives and behind the times.
Causal research
7. Will an increase in the service
staff be pro fitable?
8. Which advertising program for
pu blic transit should be run?
9. Should a new budget or no
frills class of airfare be
introduced?
What is the relationsh ip of size of
service staff and revenu e?
What wou ld get people out of cars and
into p ublic transit?
Will the no frills airfare generate
sufficient new p assengers to offset the
loss of revenue from existing
passengers switching from economyclass?
For small organizations an increase
of 50% or less will generate marg inal
revenu e in excess of marginal costs.
Advertising program A g enerates
more new riders than p rogram B.
The new airfare will attract su fficient
revenue from new passengers.
C
O
N
C
L
U
S
I
V
E
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The Uncertainty Associated With the ResearchThe Uncertainty Associated With the Research
Problem D etermines the Research MethodologyProblem D etermines the Research Methodology
Exploratory research Descrip tive research Causal research
Decreasing certain ty Increasing certain ty
Unaware of problem Aware of problem Problem clearly defined
Our sales are
declining and w e
dont know why
What kinds of
people buy our
product? Who buys
our competitors
products?
Would buyers
prefer this new
package design?
Degree of
problem
definition
Possible
situation
faced
Would buyers be
interested in this
new produ ct
idea?
What features do
buyers prefer in our
product?
Which of these
two ad campaigns
is more effective?
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Relationsh ip Amon g the Research D esignsRelationship Amon g the Research D esigns
Descriptive
Research
Exploratory
Research
Causal
Research
1
2
1R
3R
3
2R
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DESCRIPTIVE RESEARCHDESCRIPTIVE RESEARCH
Table 4.4 Cross-Sectional Data May Not Show ChangeTable 4.4 Cross-Sectional Data May Not Show Change
TIME PERIOD
Brand Purchased
Period 1
Survey
Period 2
Survey
Brand A
Brand B
Brand C
200
300
500
1000
200
300
500
1000
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DESCRIPTIVE RESEARCHDESCRIPTIVE RESEARCH
Table 4.5 Longitud inal Data May Show Substantial Chan geTable 4.5 Longitud inal Data May Show Substantial Chan ge
BRAND PURCHASED IN PERIOD 2
Brand A
Brand A
Brand B
Brand C
100
25
75
200
50
100
150
300
Brand B Brand C
Brand
purchased
in Period 1
50
175
275
500
200
300
500
1000
DIAGONAL ENTRIES REPEAT PURCHASERS
OFF-DIAGONAL ENTRIES SWITCHERS
(BOXED)
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Table 4.3Table 4.3 Relative Advantages and Disadvan tages ofRelative Advantages and Disadvan tages of
Longitud inal an d Cross-Sectional D esignsLongitud inal an d Cross-Sectional D esigns
Evaluation
Criteria
Cross-Sectional
Design
Longitudinal
Design
Detecting change
Large amount of
data collection
Accuracy
Representative
sampling
Response bias
-
-
-
+
+
+
+
+
-
-
Note: A + ind icates a relative advantage over the other design
whereas a - indicates a relative disadvantage.
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The Best Marketin g Researchers Use:
The Concept of Backward M arketin g ResearchThe Concept of Backward M arketin g Research
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TYPES OF DATA IN MARKETING RESEARCHTYPES OF DATA IN MARKETING RESEARCH
Table 5.1 A Comparison of Primary and Second ary DataTable 5.1 A Comparison of Primary and Second ary Data
PRIMARY Data collected by the researcher for the specific
pu rpose of addressing the research problem at
hand
SECONDARY Data previously collected for other purposes
PRIMARY DATA SECONDARY DATA
Collection pu rpose
Collection process
Collection cost
Collection time
For the problem at hand
Very involved
High
Long
For other problems
Rapid and easy
Relatively low
Short
RELATE TO SCOPE OF MARKETING RESEARCH PROJECT
IMPORTANT NO TE: Second ary data requ ires more interp retation & analysis
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Second ary DataSecondary Data
AdvantagesAdvantages
* May provide a better un derstandin g of research
problem
* May provide a solution
* May aid in d esigning method for primary research
* May alert researcher to unforeseen p roblems
* May provide necessary backgroun d information and
build creativity for the research rep ort
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Advantages of Secondary DataAdvan tages of Secondary Data
Readily available
Inexpensive to find
Alternative to p rimary data collection
Alert researcher to p otential prob lem areas
Clarify research p roblems and hypoth eses
Provide p ossible solution to marketing p roblems
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Second ary DataSecondary Data
* Lack of availability
* Lack of relevance
* Inaccurate data
* Insufficient data
BIAS?
OLD
DATA
ACCURACY
UNKNOWN
UNITS OF MEASUREMENT
DEFINITION OF CLASSES
Q: To use or not to use?
A: Trade-off limitations with advantages
AT A MINIMUM Use secondary data for STEP 2STEP 2 of the Mktg..
Research Process (Developing an Approach to
the Problem, pg. 25)
LimitationsLimitations
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Disadvantages of Second ary DataDisadvantages of Secondary Data
Units of measuremen t may be d ifferent
un its instead of dollars
Statistical procedu res may be misleadin g
ind ices on very large bases
Class or category definitions m ay d iffer
categories of $10,000 when
$20,000 is n eed ed
Ou tdated pub lications1990 Census data no longer valid
Reliability, validity, accuracy problems
key segments n ot represented
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Figure 5.1 A Classification of Secondary DataFigure 5.1 A Classification of Secondary Data
Secondary
Data
In ternal External
Ready to
Use
Require
Further
Processing
Published
Materials
Computerized
Databases
Syndicated
Services
Sales and Cost Data
by
Product
Geography
Customers
Time
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Figure 5.2 A Classification of Published Secondary SourcesFigure 5.2 A Classification of Published Secondary Sources
PublishedSecondary
Data
General
BusinessSources
Government
Sources
Published
MaterialsCensus
Data
Other
Government
PublicationsGuides Directories Indexes
Statistical
Data
Findex Business
Periodicals
Index
Predicasts
F&S Ind ex
Sales & Mktg.
Mgmt. Survey
of Buying
Power
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CENSUS DATACENSUS DATA
Easy access
Reasonable price Accurate
Machine readable
1990 census of
population and housing
tabulation &
pu blication program
CENSUS OF POPULATION
CENSUS O F HOUSING
MANUFACTURING
RETAIL TRADE
WHOLESALE TRADETRANSPORTATION
AGRICULTURE
BUSINESS
{
SOME CENSUS DATA IS ESTIMATED RATHER THAN BASED ON A
COUNT
(Note: The H omer Babb idge Library is the official repository for censu s information )
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SUBJECTS IN THE 1990 CENSUS CLASSIFIED AS CO MPLETE-COUNT OR SAMPLE ITEMS
Population Housing
Items collected at every household (complete-count items)
Household type
SexRaceAgeMarital statusSpanish/Hispanic origin or descent
Number of units at address
Complete plumbing facilitiesNumber of roomsTenure (whether the unit is owned or rented)Condominium identification 1
Value of home (for owner-occupied units and condominiums)Rent (for renter-occupied units)Vacant for rent, for sale, and so forth; and period of vacancy
Additional items collected at sample households*
School enrollment
Educational attainmentState or foreign country of birthCitizenship and year of immigrationCurrent language and English proficiencyAncestryPlace of residence 5 years agoActivity 5 years agoVeteran status and period of service
Presence of disability or handicapChildren ever bornMarital history
Employment status last weekHours worked last weekPlace of workTravel time to workMeans of transportation to workPersons in carpoolYear last worked
IndustryOccupationClass of worker
Work in 1989 and weeks looking for work in 1989Amount of income by source1 and total income in 1989
Type of unit
Stories in building and presence of elevatorYear builtYear moved into this house1Acreage and crop salesSource of waterSewage disposalHeating equipmentFuels used for house heating, water heating, and cookingPresence of solar heatCosts of utilities and fuelsComplete kitchen facilitiesNumber of bedrooms
Number of bathroomsTelephone
Number of automobilesNumber of light trucks and vansHomeowner shelter costs for mortgage, real-estate taxes, andhazard insurance
NOTE: Census definitions change fromtime to time
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1 Changed relative to 1980.
* For most areas of the country in 1990, one out of every six housing units or households received the sample form. Areas estimated to contain 2500 or fewer persons in 1980 had a 3-out-of-every-6
sampling rate, which is required in order to obtain reliable statistics needed for participation in certain federal programs.
Source:The 1990 Census Questionnaire (American Demographics, 1989).
SUBJECTS IN THE 1990 CENSUS CLASSIFIED AS CO MPLETE-COUNT OR SAMPLE ITEMS
(continued)
Population Housing
FamiliesFamily type and sizePoverty statusPopulation densitySize of place
Persons per room (crowding)Household sizePlumbing facilitiesInstitutions and other group quartersGross rentFarm residence
Derived variables (illustrative examples)
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Resellers of Censu s In formationResellers of Census In formation
MERGE census & other data
Private comp anies have formed a grow th
industry
Fast, efficient, means of accessing censusinformation
New p rodu cts such as computer graphics
and geographic information systems
(Man y of th ese com pan ies adver t ise inAm erican Dem ograp hics
m agazine ) available in t h e Library
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Figure 5.3 A Classification of Comp uterized DatabasesFigure 5.3 A Classification of Computerized Databases
Computerized
Databases
On-line Off-line
Bibliographic
Databases
Numeric
Databases
Full-Text
Databases
Directory
Databases
Special
Purpose
Databases
LEXIS
NEXIS
CONNECTICUT
DATA MANAGER
ABI/ INFORM
WILSON
BUSINESS
ABSTRACTS the best source of info. on CT?
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TABLE 5.2 Selected Offerings of the Popu lar On-Line Vend orsTABLE 5.2 Selected Offerings of the Popu lar On-Line Vendors
DOW JONES DIALOG COMPUSERVE
Disclosure II
Dow Jones New s
Current Quotes
Wall Street Jour nal
Academic Am erican
Encyclopedia
Cineman Movie Reviews
AP News
Comp*U*StoreOA G
Disclosure II (busin ess
database)
Management Contents
Stand ard & Poors Corporate
Description
Books in Print
Electron ic Yellow Pages
Magazine Index
AP NewsOA G
Stand ard & Poors General
Information File
Washington Post
World Book Encyclopedia
Microquote (stock
information)
Business Informa tion Wire
AP News
Comp*U*StoreOA G
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Figure 6.1 A Classification of Mark eting Research D ataFigure 6.1 A Classification of Mark eting Research Data
MarketingResearch Data
Secondary
Data
Primary
Data
Qualitative
Data
Quantitative
Data
Descrip tive Causal
Survey Data Observational
& Other Data
Experimental
Data
Exploratory
Exploratory