Chapter 3 Research Design

Chapter Three
Research Design
Copyright © 2010 Pearson Education, Inc. 3-1

Chapter Outline
1) Research Design Classification
2) Exploratory Research
3) Descriptive Research
4) Causal Research
5) Potential Sources of Error
6) Marketing Research Proposal

The Problem Definition Process (again)
Tasks Involved
Fig. 2.1
Discussion Interviews Secondary Qualitative
with with Data Research
Decision Maker(s) Experts Analysis
Environmental Context of the Problem
Step I: Problem Definition

Management Decision Problem
Marketing Research Problem
Step II: Approach to the Problem
Analytical Specification
Objective/ Research of
Theoretical Model: Verbal, Hypotheses
Questions
Foundations Graphical, Information
Mathematical Needed
Step III: Research Design

1) Research Design: Definition
• A research design is a framework or

blueprint for conducting the marketing
research project. It details the procedures
necessary for obtaining the information
needed to structure or solve marketing
research problems.

1) Components of a Research Design
1. Define the information needed

2. Design the exploratory, descriptive, and/or causal
phases of the research
3. Specify the measurement and scaling procedures
Construct and pretest a questionnaire (interviewing form)
or an appropriate form for data collection
4. Specify the sampling process and sample size
5. Develop a plan of data analysis

1) A Classification of Marketing Research Designs
Fig. 3.1
Research Design
Exploratory Conclusive
Research Design Research Design
Descriptive Causal
Research Research
Cross-Sectional Longitudinal
Design Design
Single Cross- Multiple Cross-

Sectional Design Sectional Design
Exploratory Research Designs
• Exploratory research is used in situations where

the problem may have to be defined more
precisely, relevant courses of action
identified, hypotheses formulated, or
additional insights gained before an
approach can be developed.

Exploratory Research Designs
• The owner of The Cupcake King has many, many

ideas for improving the bakery's sales, but isn't
sure which will work.
• They think increasing the flavors of cupcakes the
bakery sells will bring in more customers, but
know they need more information.
• They intend to conduct Exploratory Research to
investigate whether expanding their
cupcake selection will lead to an increase in
sales, or if there is a better idea.

Methods of Exploratory Research
• Survey of experts (discussed in Chapter 2)

• Pilot surveys (discussed in Chapter 2)
• Secondary data analyzed in a qualitative way
(discussed in Chapter 4)
• Qualitative research (discussed in Chapter 5)

Uses of Exploratory Research
Exploratory research can be used to:

• Formulate a problem or define a problem more
precisely
• Identify alternative courses of action
• Develop hypotheses
• Isolate key variables and relationships for further
examination
• Gain insights for developing an approach to the
problem
• Establish approach and priorities for further research
Exploratory methods discussed in chapters 2-5.

(Repeated)
Fig. 3.1
Research Design
Descriptive Causal
Research Research
Design Design

Conclusive Research Designs
• Conclusive research would be used to test

specific hypotheses, examine specific
relationships, or make predictions.
• Conclusive research is typically more formal and
structured than exploratory research.
• It is based on large and representative samples
and the data obtained are subjected to
quantitative analysis.
• Conclusive research may either describe or
uncover causal relationships that may be
generalised to large populations

Money
House
IV DP
House Money
IV DP

A Direct B
increases/decreases increases/decreases
A Inverse B
increases/decreases Decreases/increases
A
B
increases/decreases No Relation
No effect

• Magnitude
• Frequency

• Quantitative
• Qualitative

(Repeated)
Fig. 3.1
Research Design
Descriptive Causal
Research Research
Design Design

Descriptive and Causal research
• Descriptive research is used to describe

something, usually market characteristics or
functions.
For example, determining the average age of
purchasers of your product.
• Causal research is used to obtain evidence

regarding cause-and-effect relationships.
For example, determining if increased advertising

spending has led to an increase in sales.

Descriptive Research
• Market Mapping
• Market Sizing
• Census (Mardam Shumari)

Six W’s of descriptive research
• Descriptive research design requires a clear specification of

the six W’s of the research:
1.Who: who should be considered?

2.Where: where should the respondents be contacted to obtain the
required information?
3.When: when should the information be obtained from the
respondents?
4.What: what information should be obtained from the respondents?
5.Why: why are we obtaining information from the respondents?
6.Way: the way in which we are going to obtain information from
the respondents.

Use of Descriptive Research
• To describe the characteristics of relevant

groups, such as consumers, salespeople,
organizations, or market areas
• To estimate the percentage of units in a
specified population exhibiting a certain
behavior
• To determine the perceptions of product
characteristics
• To determine the degree to which marketing
variables are associated
• To make specific predictions

Methods of Descriptive Research
• Secondary data analyzed in a quantitative, as

opposed to a qualitative, manner (discussed in
Chapter 4)
• Surveys (Chapter 6)
• Panels (Chapters 4 and 6)
• Observational (Chapter 6)

Causal Research
• Causal research: a type of conclusive

research where the major objective is to
obtain evidence regarding cause-and-effect
(causal) relationships.
• Cause = independent variable(s)
• Effect = dependent variable(s)
• METHOD: Experiments

• variable(s) = variable / variables

Situations where causal research could be used
• Causal research is appropriate to use when the

purposes are to understand which variables are
the cause and which variables are the effect,
and to determine the nature of the functional
relationship between the causal variables and
the effect to be predicted.
• Once you understand the underlying theory,

business-to-business advertising as an example
of causal research.

Causal research design and its purpose
• understand which variables are the cause

(independent variables) and which variables
are the effect (dependent variables) of
marketing phenomena;
• determine the nature of the relationship between
the causal variables and the effect to be
predicted;
• test hypotheses.

A B
increases/decreases No Relation No effect
Independent variable Dependent Variable
B Direct A
increases/decreases Decreases/increases
Independent variable Dependent Variable

1) Exploratory & Conclusive Research
Differences
Table 3.1 Exploratory Conclusive
Objective: To provide insights and To test specific hypotheses and
understanding examine relationships
• Information needed is defined only • Information needed is clearly defined.

Character-
loosely. • Research process is formal and
istics: • Research process is flexible and structured.
unstructured. • Sample is large and representative.
• Sample is small and non- • Data analysis is quantitative
representative.
• Analysis of primary data is
qualitative.
• Hypotheses may not exist.
Findings/
Conclusive
Results: Tentative
Outcome: Findings used as input into decision

Generally followed by further making
exploratory or conclusive research
1) A Comparison of Basic Research Designs
Table 3.2
Exploratory Descriptive Causal
Objective: Discovery of ideas Describe market Determine cause
and insights characteristics or and effect
functions relationships
Characteristics: • Flexible, versatile • Marked by the prior • Manipulation of

• Often the front formulation of independent
end of total specific hypotheses variables, effect
research design • Preplanned and on dependent
structured design variables
• Control
mediating
variables
Methods: • Expert surveys • Quantitative
• Pilot surveys secondary data • Experiments
• Case studies • Surveys
• Qualitative & • Panels
quantitative • Observation and
secondary data other data
Economics =
Ceteris Paribus = If all others variables are held constant
Work output low
Favourisitm towards others, demotivation, not peaceful work

environment, no bonus, no reward,

(Repeated)
Fig. 3.1
Research Design
Descriptive Causal
Research Research
Design Design

3) Cross-Sectional Designs
Cross-sectional designs involve the collection of information

from any given sample of population elements only once
• Single cross-sectional designs

• one sample of respondents
• information is obtained from this sample only once
• Multiple cross-sectional designs

• two or more samples of respondents
• information from each sample is obtained only once
• Often, information from different samples is obtained at different times
• Cohort analysis consists of a series of surveys conducted at

appropriate time intervals, where the cohort serves as the
basic unit of analysis. A cohort is a group of respondents who
experience the same event within the same time interval.

3) Example of Cohort Analysis
Cohorts (in this example) = income level groups

3) Longitudinal Designs
A longitudinal design involves a fixed

sample (or samples) of population elements
that is measured repeatedly on the same
variables.
• A longitudinal design differs from a multiple
cross-sectional design in that the sample or
samples remain the same over time.
• A panel is a sample of respondents who
have agreed to provide information at
specified intervals over an extended period.

3) Cross-Sectional vs. Longitudinal
Cross- Sample(s)
Sectional Surveyed
Design at T1
Same
Sample Sample also
Longitudinal Surveyed at
Design Surveyed at
T1 T2
Time T1 T2
3) Advantages and Disadvantages of Longitudinal
and Cross-Sectional Designs
Table 3.4
Evaluation Cross-Sectional Longitudinal

Criteria Design Design
Detecting Change - +
Large amount of data collection - +
Accuracy - +
*Representative Sampling + -
Avoid response bias + -
Note: A “+” indicates a relative advantage over the other design,

whereas a “-” indicates a relative disadvantage.
*Panels (in longitudinal designs) may not be representative as they
may refuse to cooperate or drop out.
3) Cross-Sectional Data May Not Show Change
Table 3.5
Brand Purchased Time Period

Period 1 Period 2
Survey Survey
Brand A 200 200

Brand B 300 300
Brand C 500 500
Total 1000 1000

3) Longitudinal Data May Show Drastic Change
Table 3.6
Brand Brand Purchased in Period 2

Purchased
in Period 1 Brand A Brand B Brand C Total
Brand A 100 50 50 200
Brand B 25 100 175 300
Brand C 75 150 275 500
Total 200 300 500 1000

5) Potential Sources of Error in Research Designs
Fig. 3.2
Total Error
Random Non-sampling
Sampling Error Error
Response Non-response
Error Error
Researcher Interviewer Error Respondent

Error Error
Surrogate Information Error Respondent Selection Error Inability Error
Measurement Error Questioning Error Unwillingness Error
Population Definition Error Recording Error
Sampling Frame Error Cheating Error
Data Analysis Error
Errors in Marketing Research
• The total error is the difference between the true mean value
in the population of the variable of interest and the observed
mean value obtained in the marketing research project.
• Random sampling error is the difference between the true
mean value for the population and the true mean value for the
original sample.
• Non-sampling errors can be attributed to sources other than
sampling, and they may be random or nonrandom:
• Non-response/response error,
• Poor problem definition,
• Wrong research approach,
• Unbalanced scales, and so on…

Errors in Marketing Research
• Non-response error arises when some

of the respondents included in the
sample do not respond.
• Response error arises when
respondents give inaccurate answers or
their answers are misrecorded or
misanalyzed.

6) Marketing Research Proposal
• Executive Summary
• Background
• Problem Definition/Objectives of the
Research
• Approach to the Problem
• Research Design
• Fieldwork/Data Collection
• Data Analysis
• Reporting
• Cost and Time
• Appendices

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Chapter Three

Copyright © 2010 Pearson Education, Inc. 3-1

1) Research Design Classification

5) Potential Sources of Error

6) Marketing Research Proposal

Copyright © 2010 Pearson Education, Inc. 3-2

Environmental Context of the Problem

Step I: Problem Definition

Marketing Research Problem

Step II: Approach to the Problem

Step III: Research Design

Copyright © 2010 Pearson Education, Inc. 3-3

• A research design is a framework or

Copyright © 2010 Pearson Education, Inc. 3-4

1. Define the information needed

Copyright © 2010 Pearson Education, Inc. 3-5

Single Cross- Multiple Cross-

• Exploratory research is used in situations where

Copyright © 2010 Pearson Education, Inc. 3-7

• The owner of The Cupcake King has many, many

Copyright © 2010 Pearson Education, Inc. 3-8

• Survey of experts (discussed in Chapter 2)

Copyright © 2010 Pearson Education, Inc. 3-9

Exploratory research can be used to:

Exploratory methods discussed in chapters 2-5.

Copyright © 2010 Pearson Education, Inc. 3-10

Single Cross- Multiple Cross-

• Conclusive research would be used to test

Copyright © 2010 Pearson Education, Inc. 3-12

Copyright © 2010 Pearson Education, Inc. 3-13

Copyright © 2010 Pearson Education, Inc. 3-14

Copyright © 2010 Pearson Education, Inc. 3-15

Copyright © 2010 Pearson Education, Inc. 3-16

Single Cross- Multiple Cross-

• Descriptive research is used to describe

• Causal research is used to obtain evidence

For example, determining if increased advertising

Copyright © 2010 Pearson Education, Inc. 3-18

• Census (Mardam Shumari)

Copyright © 2010 Pearson Education, Inc. 3-19

• Descriptive research design requires a clear specification of

1.Who: who should be considered?

Copyright © 2010 Pearson Education, Inc. 3-20

• To describe the characteristics of relevant

Copyright © 2010 Pearson Education, Inc. 3-21

• Secondary data analyzed in a quantitative, as

Copyright © 2010 Pearson Education, Inc. 3-22

• Causal research: a type of conclusive

Copyright © 2010 Pearson Education, Inc. 3-23

Copyright © 2010 Pearson Education, Inc. 3-24

• Causal research is appropriate to use when the

• Once you understand the underlying theory,

Copyright © 2010 Pearson Education, Inc. 3-25

• understand which variables are the cause

Copyright © 2010 Pearson Education, Inc. 3-26

Independent variable Dependent Variable

Independent variable Dependent Variable

Copyright © 2010 Pearson Education, Inc. 3-27

• Information needed is defined only • Information needed is clearly defined.