unit-II.ppt

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Lecture Unit Contents Slide no.

11-12 II Research Design-Various Methods 3-1513-14 II Experimental Research design 16-29

15 II Primary And Secondary Data 30-32

16 Advantages and Disadvantages 33-34

17 II Basic methods of Collecting data-Questionnaire/Observation

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17 II Advantages & Disadvantages

18 II Precautions in preparation of Questionnaire and collecting data

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UNIT IIResearch Design

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Research Design

• Research design is a set of advanced decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information.

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The Significance of Research Design

• Although every problem and research objective may be unique there are enough similarities that allow us to make some decisions in advance about the best plan to resolve the problem.

• There are basic marketing research designs that can be successfully matched to given problems and research objectives, and they serve the researcher much like the blueprint serves the builder.

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Types of Research Design

• Three traditional categories:– Exploratory– Descriptive– Causal

• The choice of the most appropriate design depends largely on the objectives of the research and how much is known about the problem and research objectives.

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Basic Research Objectives and Research Design

Research Objective Appropriate Design

To gain background information, Exploratoryto define terms, to clarify problems and hypotheses, to establish research priorities

To describe and measure marketing Descriptivephenomena at a point in time

To determine causality, Causalto make “if-then” statements

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Exploratory Research

• Exploratory research is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem.

• By unstructured, we mean there is no formal set of objectives, sample plan, or questionnaire.

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Exploratory Research

• It is usually conducted when the researcher does not know much about the problems.

• Exploratory research is usually conducted at the outset of research projects.

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Exploratory Research

• Uses– Gain Background Information– Define Terms– Clarify Problems and Hypothesis

(refine research objectives)– Establish Research Priorities

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Exploratory Research

• A variety of methods are available to conduct exploratory research.– Secondary Data Analysis– Experience Surveys– Case Analysis– Focus Groups– Projective Techniques

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Descriptive Research

• Descriptive research is undertaken to describe answers to questions of who, what, where, when, and how.

• Descriptive research is desirable when we wish to project a study’s findings to a larger population, if the study’s sample is representative.

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Descriptive Research

• Two basic classifications:–Cross-sectional studies– Longitudinal studies

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Classification of Descriptive Research Studies

• Cross-sectional studies measure units from a sample of the population at only one point in time.– Sample surveys: are cross-sectional studies

whose samples are drawn in such a way as to be representative of a specific population.• These studies are usually presented with

a margin of error.

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Classification of Descriptive Research Studies

• Longitudinal studies repeatedly measure the same sample units of a population over time.

• Longitudinal studies often make use of a panel which represents sample units who have agreed to answer questions at periodic intervals.

• Many large research firms maintain panels of consumers.

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Causal Research

• Causality may be thought of as understanding a phenomenon in terms of conditional statements of the form “If x, then y.”

• Causal studies are conducted through the use of experiments.

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Experiments

• An experiment is defined as manipulating an independent variable to see how it affects a dependent variable, while also controlling the effects of additional extraneous variables.

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Independent Variable

• Independent variables are those variables which the researcher has control over and wishes to manipulate.– For example: level of ad expenditure; type

of ad appeal; price; product features, etc.

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Dependent Variables

• Dependent variables are those variables that we have little or no direct control over, yet we have a strong interest in.– Examples would be return on investment,

net profits, market share, customer satisfaction.

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Extraneous Variables

• Extraneous variables are those variables that may have some effect on a dependent variable yet are not independent variables.

• Extraneous variables must be controlled through proper experimental design.

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Experimental Design

• Experimental design is a procedure for devising an experimental setting such that a change in a dependent variable may be attributed solely to the change in an independent variable.

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Types of Experiments

Laboratory• Laboratory experiments are those in which the

independent variable is manipulated and measures of the dependent variable are taken in a contrived, artificial setting for the purpose of controlling the many possible extraneous variables that may affect the dependent variable.

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Types of Experiments

Field• Field experiments are those in which the

independent variables are manipulated and the measurements of the dependent variable are made on test units in their natural setting.

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Test Marketing

• Test marketing is the phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting.

• Uses of test markets– To test 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

• Standard Test Market: one in which the firm tests the product and/or marketing mix variables through the company’s normal distribution channels.

• Controlled Test Markets: ones that are conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

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Types of Test Markets

• Electronic Test Markets: those in which a panel of customers have agreed to carry identification cards that each consumer presents when buying goods and services.

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Types of Test Markets

• Simulated Test Markets: those in which a limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generate likely sales volume.

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Test Markets

• Test marketing is used in both consumer markets and industrial 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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Test Marketing

• Pros:– Allows most accurate method of forecasting

future sales– Allows firms the opportunity to pretest marketing

mix variables

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Test Marketing

• Cons:– Does not yield infallible results– Are expensive– Exposes the new product to competitors– Takes time to conduct

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Primary and Secondary data

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Primary Versus Secondary Data

• Primary data: information that is developed or gathered by the researcher specifically for the research project at hand.

Questionnaire and observation

• Secondary data: information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand.

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Uses of Secondary Data

• Secondary data has many uses in marketing research and sometimes the entire research project may depend on the use of secondary data.

• Applications include economic-trend forecasting, corporate intelligence, international data, public opinion, and historical data.

• See www.secondarydata.com.

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Advantages of Secondary Data

• Obtained quickly• Inexpensive• Usually available• Enhances existing primary data• May achieve research objective

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Disadvantages of Secondary Data

• Incompatible reporting units…need zip code data and only have County data.

• Measurement units do not match…need per capita income and only have household income.

• Data are outdated.

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Essential characterstics for selecting secondary data

Following questions should be answered before choosing secondary data

• What was the purpose of the study?• Who collected the information?• What information was collected?• How was the information attained?• How consistent is the information with other

information?

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Locating Secondary Data Sources

• Step 1:Identify what you wish to know and what you already know about your topic.

• Step 2:Develop a list of key words and names.• Step 3:Begin your search using several library

sources.

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Locating Secondary Data Sources

• Step 4:Compile the literature you have found and evaluate your findings.

• Step 5:If you are unhappy with what you have found or are otherwise having trouble and the reference librarian has not been able to identify sources,use an authority.

• Step 6:Report results.

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Collecting Data : Observation

/Questionnaire

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Observation Techniques

• Observation methods: techniques in which the researcher relies on his or her powers of observation rather than communicating with a person in order to obtain information

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Observation Techniques

• Types of observation: – Direct versus indirect– Disguised versus undisguised– Structured versus unstructured– Human versus mechanical

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Observation TechniquesDirect versus Indirect

• Direct observation: observing behavior as it occurs

• Indirect observation: observing the effects or results of the behavior rather than the behavior itself– Archives– Physical traces– Structured versus unstructured– Human versus mechanical

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Observation TechniquesDisguised versus Undisguised

• Disguised observation: subject is unaware that he or she is being observed

• Undisguised observation: respondent is aware of observation

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Observation TechniquesStructured versus Unstructured

• Structured observation: researcher identifies beforehand which behaviors are to be observed and recorded

• Unstructured observation: no restriction is placed on what the observer would note: all behavior in the episode under study is monitored

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Observation TechniquesHuman versus Mechanical

• Human observation: observer is a person hired by the researcher, or, perhaps the observer is the researcher

• Mechanical observation: human observer is replaced with some form of static observing device

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Observation TechniquesAppropriate Conditions for Use

• Short duration• Public• Faulty recall conditions

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Observation TechniquesAdvantages of Observational Data

• Insight into actual, not reported, behaviors• No chance for recall error• Better accuracy• Less cost

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Observation TechniquesLimitations of Observational Data

• Small number of subjects• Subjective interpretations• Inability to pry beneath the behavior observed• Motivations, attitudes, and other internal

conditions are unobserved…we don’t know why?

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Designing the Questionnaire

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What is a Questionnaire?

• A questionnaire is the vehicle used to pose the questions that the researcher wants respondents to answer.

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Questionnaire Design

• Questionnaire design is a systematic process in which the researcher contemplates various question formats, considers a number of factors characterizing the survey at hand, ultimately words the various questions very carefully, and organizes the questionnaire’s layout.

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The Functions of a Questionnaire

• Translates the research objectives into specific questions

• Standardizes those questions and the response categories

• Fosters cooperation and motivation• Serves as permanent records of the research

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The Functions of a Questionnaire

• Can speed up the process of data analysis• Can serve as the basis for reliability and

validity measures

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Steps in the Questionnaire Development Process

53Marketing Research : Burns & Bush

Developing Questions

• Question development is the practice of selecting appropriate response formats and wording questions so that they are understandable, unambiguous, and unbiased.

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Developing Questions

• Marketing research questions measure – Attitudes– Beliefs– Behaviors– Demographics

To achieve these objectives following precaution should be taken

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Precautions in Questionnaire Development

Words to Avoid in Questionnaire• All• Always• Any• Anybody• Ever• Every• Never

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Why Avoid These Words?

• These words: all, any, anybody, best, ever, every, never, etc. are all EXTREME ABSOLUTES…

• They place respondents in a situation where they must either fully agree or they must completely disagree with the extreme position in the question.– Do you always observe traffic signs?– Would you say all cats have four legs?

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Essentials in Questionnaire• Question evaluation refers to scrutinizing the

wording of a question to ensure the question is not biased and is worded such that respondents understand it and can respond to it with relative ease.

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1. The question should be focused on a single issue or topic. “What type of hotel do you stay in on a trip?” Pleasure or business trip? En route or final destination?

2. The question should be brief.3. The question should be grammatically simple, if

possible.4. The question should be crystal clear.

Essentials in Questionnaire

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1. The question should not “lead” the respondent to a particular answer. “Don’t you see any problem with using credit cards for online purchases?”

2. The question should not have “loaded” wording or phrasing. Use universal beliefs…Since our Founding Fathers gave us the right to bear arms…

Essentials in Questionnaire

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3. The question should not be “double-barreled.”4. The question should not use words that overstate

the condition…do not use “dramatics.” “Would you buy sunglasses that protect your eyes from harmful ultraviolent rays that cause blindness?”

Essentials in Questionnaire

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Individual Question Wording

• “Do’s” for all questions– Keep it focused on a single topic

– Keep it brief

– Keep it grammatically simple

– Keep it crystal clear

How do you feel about Sears?

When some gasoline or electric-powered product in your house breaks, do you call the Sears repair service?

If the Sears repair service schedule was not convenient for you, would you consider of not consider calling a competing repair organization to fix the problem you have?

How much do you think you would have to pay to have Sears fix something that needs to be repaired?

Please rate each aspect of Sears…

When you need it, do you call Sears repair service?

If you did not use Sears repair service, would you use another repair service?

How much do you think Sears charges for a repair service call?

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Do you believe infant car sears can protect riders from being maimed?

Examples

• ““Do not’s” for all questions– Don’t ask leading questions

– Don’t ask loaded questions

– Don’t ask double-barreled questions

– Don’t use overstated questions Do you think children’s car seats are useful?

Should car seats be used for our loved ones?

Shouldn’t concerned parents use car seats?

Do good parents and responsible citizens use car seats?

Do you think infant car seats are useful?

Do you think car seats are useful for family members?

Do you think parents who use car seats are responsible?

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1.Advance decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information is a(n) ________. • research design • blueprint • master plan • set of research objectives • research plan • 2._____ research is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. • Causal • Descriptive • Preliminary • Exploratory • Basic 3.Which of the following types of research is typically conducted at the beginning of a research project? • Causal • Descriptive • Preliminary • Exploratory • Basic

4.All of the following are sources of secondary data EXCEPT: the Internet directories databases libraries surveys conducted after primary research 5. All of the following are characteristics of focus groups EXCEPT: small groups of people discussion focused on anything the group wants to talk about a moderator unstructured discussion spontaneous, freewheeling 64

Questions

6.What is it called when you manipulate one thing so as to see how it affects something else? • a demonstration • an experiment • a control • causation • exploration

7.Variables over which we have little or no direct control and yet have a strong interest in are called ________. • independent variables • dependent variables • control variables • extraneous variables • experimental variables 8.Variables that may have some effect on something we are interested in yet do not directly control are called ________. • independent variables • dependent variables • uncontrollable forces • extraneous variables • experimental variables 9. If the observed change in something that we cannot control is due to the manipulation of something we can control, and the results of the experiment apply to the

"real world",that experiment has ________. • validity • applicability • relevancy • science • externality 10 There are usually enough similarities among problems and objectives to allow us to make some decisions in advance about the best plan to use to resolve the problem. • True• False

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Questions

11.To determine the reliability of secondary information, marketing researchers must evaluate it by answering the following questions EXCEPT: • What was the purpose of the study? • Who collected the information? • What information was collected? • What research problem are you trying to address? • How was the information obtained?

12.Which of the following publications is not a source of secondary information? survey questionnaires bibliographies encyclopedias almanacs dictionaries

13.Locating secondary data sources involves the following EXCEPT: identify what you wish to know about your topic identify what you already know about your topic conduct related primary data searches first develop a list of key terms and names consider related terms or synonyms for a topic

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Questions

14.Collecting secondary data is expensive when compared with collecting primary data. • True• False 15. Researchers must always decide whether or not they should use out-dated secondary data. • True• False16. Researchers can comfortably rely on Internet sources because of the high quality standards

that are applied to most Internet sites. • True• False17. Secondary data is information that was gathered as primary data by some organization. • True• False

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Questions

18Small firms tend to have their own formal marketing research departments.

• True• False19 External market research suppliers are firms hired to provide research

information to both large and small firms, and for-profit and not-for-profit institutions.

• True• False20. Online research is rarely used because of the inability to observe

expressions, gestures and body language of potential customers. • True• False

References

• Marketing Research : Byod • Marketing Research : GC Beri• Marketing Research: Bush & Burns