Download Descriptive Research Observational Research

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Marketing Research Process
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Research Design Definition
•
The research design is the master plan specifying the methods and
procedures for collecting and analyzing the needed information.
•
A choice of research design reflects decisions about the priority
being given to a range of dimensions of the research process.
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A Classification of Market Research Designs
Research
Design
Exploratory
Research
Secondary
Data
Conclusive
Research
Experience
Surveys
Pilot Studies
Case Studies
See next slide
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A Classification of Market Research Designs
Research
Design
Exploratory
Research
Cross-sectional
Study
Longitudinal
Study
Secondary
Data Study
Conclusive
Research
Descriptive
Design
Causal
Design
Experiment
Survey
Observation
Portfolio
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Which is the “Best” Research Design & Method?
 It depends on the
 Problem of interest,
 Level of information needed,
 Resources,
 Researcher’s experience, etc.
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Research Design: Some Observations
•
The overall research design for a project may include one or more
of these three designs as part(s) of it.
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Further, if more than one design is to be used, typically we
progress from Exploratory toward Causal.
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Exploratory Research
 Usually conducted during the initial stage of the research process
 Exploratory research to gain ideas and insights
 Purposes
 To narrow the scope of the research topic, and
 To transform ambiguous problems into well-defined ones
 Example:
 Newspaper facing & decreasing sales to generate possible explanation.
 Malls/hypermarkets/supermarkets having weekly sales trend &
opportunity as heavy Friday sales.
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Exploratory Research Techniques
 Secondary Data Analysis
 Secondary data are data previously collected & assembled for some
project other than the one at hand
 Pilot Studies
 A collective term for any small-scale exploratory research technique
that uses sampling but does not apply rigorous standards
 Includes
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Focus Group Interviews
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Unstructured, free-flowing interview with a small group of people
Projective Techniques
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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
 Case Studies
 Intensively investigate one or a few situations similar to the problem
situation
 Experience Surveys
 Individuals who are knowledgeable about a particular research problem
are questioned
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Conclusive Research
 More structured & formal than exploratory data
 Provide specific information that aids the decision maker in
evaluating alternative courses of action.
 Sound statistical methods & formal research methodologies are used
to increase the reliability of the information.
 Data sought tends to be specific & decisive
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Types of Conclusive Research
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Descriptive Research
Research objectives are clearly defined
Obtain summary measures to address research questions .
Examines who, what, when, where, why, & how questions
Describes attitudes, perceptions, characteristics, activities and
situations.
 Trends in lifestyle with respect to age, sex, etc.
 Causal Research
 Provides evidence that a cause-and-effect relationship exists or does
not exist.
 For cause-and-effect connection between managerial decisions and
market outcome.
 Example-how people react to a newspaper’s topic selection and space
allocation.
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Common Characteristics of Descriptive Studies
 Build on previous information
 Show relationships between variables
 Representative samples required
 Structured research plans
 Require substantial resources
 Conclusive findings
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Major Types of Descriptive Studies
Descriptive
Studies
Sales Studies
• Market
Potential
• Market
Share
• Sales
Analysis
Consumer
Perception
& Behavior Studies
Market Characteristic
Studies
•Distribution
• Image
• Product Usage
• Advertising
• Pricing
•Competitive
Analysis
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Cross Sectional vs. Longitudinal Designs
Cross
Sectional
Design
Longitudinal
Design
Time
Sample
Surveyed at
T1
Sample
Surveyed at
T1
T1
Same Sample
also
Surveyed at
T2
T2
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Common Characteristics of Causal Studies
 Logical Time Sequence
 For causality to exist, the cause must either precede or occur
simultaneously with the effect.
 Concomitant Variation
 Extent to which the cause and effect vary together as hypothesized.
 Control for Other Possible Causal Factors
 Environment, psychological factors.
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Questions Addressed by Causal Research
* Marketing director of local beer company,
“Will replacing TV commercial A with commercial B lead to increase
in consumer preference on our brand?”
* Chairman of a charity organization. “Will it be worthwhile to mail to
previous donors an attractive and expensive brochure to solicit higher
contributions this year?”
* The sales manager of a local life insurance company.
“Will training in the use of computers for client management
increase agents’ sales?”
* Marketing VP of fashion chain, “Can we improve profitability of our
fashion clothing line by increasing its price by 10%?”
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How Descriptive & Causal Designs Differ
 Relationship between the variables
 Descriptive designs determine degree of association
 Causal designs infer whether one or more variables influence another
variable
 Degree of environmental control
 Descriptive designs enjoy lesser degrees of control
 Order of the variables
 In descriptive designs, variables are not logically ordered
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Comparison of Research Designs
Exploratory
Descriptive
Causal
Purpose
ID problems, gain
insights
Describe things
Determine causeand-effect
relationships
Assumed
background
knowledge
Minimal
Considerable
Considerable
Degree of
structure
Very little
High
High
Flexibility
High
Some
Little
Sample
Non-representative
Representative
Representative
Research
environment
Relaxed
Formal
Highly controlled
Cost
Low
Medium
High
Findings
Preliminary
Conclusive
Conclusive
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Descriptive Research Data Collection Methods
Surveys
Interviews
Observations
Portfolios
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Descriptive Research
1. Surveys
 May be used to reveal summary statistics by showing responses to all
possible questionnaire items.
 May be used to explore relationships between 2 or more variables.
 Often provide leads in identifying needed changes
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Descriptive Research
Characteristics of a Good Survey
 Good questioning techniques
 Use complete sentences
 Offer a limited set of answers
 Interesting
 Worded so that questions mean the same to all
 Provide definitions for confusing terms
 Uses the “I don’t know” answer very carefully
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Descriptive Research
Survey Forms
 Personal interviews
 Telephone interviews
 Mailed Questionnaire
Factors to be considered
 Sampling
 Type of population
 Question Form
 Question Content
 Response rates
 Costs
 Available facilities
 Length of data collection
 Computer assisted techniques
for data collection
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Descriptive Research
Survey Form – Personal Interviews
Advantages
 Interviewer’s ability to observe the respondent and obtain visual cues
 Detail introspection possible
Disadvantages
 Require more staff time
 Require more travel time
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Descriptive Research
Survey Form – Telephone Interview
Advantages
 Less expensive
 Less time-consuming
Disadvantages
 Limited telephone access.
 Interviewer less interested to
respond.
 Lack of interviewer’s ability to
observe the respondent and
obtain visual cues
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Descriptive Research
Survey Form – Mailed Questionnaires
 A letter of transmittal should accompany mailed questionnaires.
 Should state purpose and importance of research
 Should state importance of responding
 Should give a time frame to respond
 Should include a confidentiality statement
 Should include an offer to share results
 Should include a thank-you note to the respondent
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Descriptive Research
Survey Form – Mailed Questionnaires
Advantages
 Ability to reach large number of
people across a wide geographic
area
 Ease and low cost of distribution
 Minimal amount of staff required
 Allows respondents to respond in
their time frame
Disadvantages
 Lower response rate
 Need to design a survey
instrument with a simple
format
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Descriptive Research
2-Interviews
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More time efficient
Allow the researcher to establish a rapport with the respondent
Allow the acquisition of more in-depth information
Allow for interviewer observation
Allow the interviewer to obtain visual cues
May be personal or telephone interviews
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Descriptive Research
3. Observational Research Methods
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Naturally occurring behaviors observed in natural contexts
Contexts that are contrived to be realistic
Require direct observation of behavior
Data gathered without intermediary instruments
Can yield a wealth of invaluable information
Can be a complicated process
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Descriptive Research
3. Observational Research Methods
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In marketing and the social sciences, observational research (or
field research) is a social research technique that involves the direct
observation of phenomena in their natural setting.
This differentiates it from experimental research in which a quasiartificial environment is created to control for spurious factors, and
where at least one of the variables is manipulated as part of the
experiment.
Generally, there are three types of observational research:
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Covert observational research
Overt observational research
Researcher Participation
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Descriptive Research
Observational Research Methods
 Compared with quantitative research and experimental research,
observational research tends to be less reliable but often more valid.
 The main advantage of observational research is flexibility. The
researchers can change their approach as needed. Also it measures
behavior directly, not reports of behavior or intentions.
 The main disadvantage is it is limited to behavioral variables. It
cannot be used to study cognitive or affective variables.
 Another disadvantage is that observational data is not usually general
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Descriptive Research
3. Observational Research Methods
 Covert observational research - The researchers do not identify themselves.
 Either they mix in with the subjects undetected, or they observe from a
distance.
 The advantages of this approach are:
 (1) It is not necessary to get the subjects’ cooperation, and
 (2) The subjects’ behaviour will not be contaminated by the presence of the
researcher.
 Some researchers have ethical misgivings with the deceit involved in this
approach.
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Descriptive Research
3. Observational Research Methods
 Overt observational research - The researchers identify themselves as
researchers and explain the purpose of their observations.
 The problem with this approach is subjects may modify their behaviour when
they know they are being watched.
 They portray their “ideal self” rather than their true self in what is called
the Hawthorne Effect.
 The advantage that the overt approach has over the covert approach is that
there is no deception
 Researcher Participation - The researcher participates in what they are
observing so as to get a finer appreciation of the phenomena.
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Descriptive Research
Observational Research Methods
 In marketing research, the most frequently used types of observational
techniques are:
 Personal observation
 Observing products in use to detect usage patterns and problems
 Observing license plates in store parking lots
 Determining the socio-economic status of shoppers
 Determining the level of package scrutiny
 Determining the time it takes to make a purchase decision
 Mechanical observation
 Eye-tracking analysis while subjects watch advertisements
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Ocumeters-what the subject is looking at
Pupilometers - how interested is the viewer
Electronic checkout scanners - records purchase behaviour
On-site cameras in stores
Nielsen box for tracking television station watching
Voice pitch meters - measures emotional reactions
Psychogalvanometer-measures galvanic skin response
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Descriptive Research
Observational Research Methods
 Audits
 Retail audits to determine the quality of service in stores
 Inventory audits to determine product acceptance
 Shelf space audits
 Trace Analysis
 Credit card records
 Computer cookie records
 Garbology-looking for traces of purchase patterns in garbage
 Detecting store traffic patterns by observing the wear in the floor (long term) or
the dirt on the floor (short term)
 Exposure to advertisements
 Content analysis
 Observe the content of magazines, television broadcasts, radio broadcasts, or
newspapers, either articles, programs, or advertisements
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Descriptive Research
4. Portfolios
 Provide a descriptive measure of client work based on actual
performance
 Consist of learner-created products that reflect the processes of
learning and development over time
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Casual Design-Experiments
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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.
• Independent variables: those over which the researcher has
control and wishes to manipulate i.e. package size, ad copy,
price.
• 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.
• Extraneous variables: those that may effect a dependent
variable but are not independent variables.
• 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.
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How Valid Are Experiments?
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An experiment is valid if:
• The observed change in the dependent variable is, in fact, due
to the independent variable (internal validity)
• If the results of the experiment apply to the “real world”
outside the experimental setting (external validity)
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Types of Experiments
Laboratory experiment
Experiment
Scientific investigation in which an
investigator manipulates and controls
one or more independent variables and
observes the dependent variable for
variation concomitant to the manipulation
of the independent variables
Research investigation in which investigator
creates a situation with exact conditions so
as to control some, and manipulate other,
variables
Field experiment
Research study in a realistic situation in
which one or more independent variables
are manipulated by the experimenter under
as carefully controlled conditions as the
situation will permit
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Test Marketing
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Test marketing is the phrase commonly used to indicate an
experiment, study, or test that is conducted in a field setting.
Two broad classes:
• To test the sales potential for a new product or service
• To test variations in the marketing mix for a product or service
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Types of Test Markets
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Standard test market: one in which the firm tests the product and/or
marketing mix variables through the companies normal distribution
channels.
Advantage
• Good reflection of how the product will perform.
Disadvantage
Competition automatically known product/packaging and can sabotage
you.
Controlled test markets: ones that are conducted by outside research
firms that guarantee distribution of the product through prespecified
types and numbers of distributors.
Advantage
• It gets the product out faster most of the time.
• Can also be used in places that are harder to get into.
Disadvantage
• May not represent firms actual distribution system
• Competition can still sabotage you
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Types of Test Markets
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Simulated test markets: subjects are selected based on target market of
test product.
Advantages
• Much harder for competition to sabotage you
• Faster to do
• Good if you want to spot a clearly weak product quickly.
• Save yourself money.
Disadvantages
• Equation they throw it into is based on assumptions and assumptions
may not always be accurate.
• No indication of how willing retailers/ distributers are to cooperate.
Electronic test markets: those in which a panel of consumers has agreed
to carry identification cards that each consumer presents when buying
goods and services.
Advantage
• Easy to track
Disadvantage
• Customers or retailers may not co-operate
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Test Markets
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Test marketing is used in both consumer markets and industrial or
B2B markets as well.
Lead country test market: test marketing conducted in specific
foreign countries that seem good predictors for an entire continent
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Criteria for Selecting Test Market Cities
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Representativeness: Do demographics match the total market?
Degree of isolation: Delhi and Mumbai are isolated markets;
Ghaziabad & Noida is not isolated.
Ability to control distribution and promotion:
Are there preexisting arrangements to distribute the new product
in selected channels of distribution?
Are local media designed to test variations/effects in promotional
messages?
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Test Marketing
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Pros:
• Allows most accurate method of forecasting future sales
• Allows firms the opportunity to pretest marketing mix
variables
Cons:
• Does not yield infallible results
• Are expensive
• Exposes the new product or service to competitors
• Takes time to conduct
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Questions
4.
5.
6.
7.
What do you understand by Research Design.
Discuss the Exploratory Research Design in detail?
Discuss Descriptive Research Design in detail?
Discuss various data collection methods?
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Thanks