Lecture 3 400

(1)

MKT 400 Marketing Research

Lecture 3

Dr. Anjala Krishen

Dept. of Marketing

(2)

2 2

Research Design:

Delineating What Data to

Collect and How to Collect It



the type of information to be collected

(consistent with the project objectives)



possible data sources



the data collection procedure

(accurate, economical and timely)

A research design is the basic plan

that guides data collection and

analysis. It must specify:

(3)

A Classification of Marketing

Research Designs

Single Single Cross-Sectional Sectional Design Design Multiple Multiple Cross-Sectional Sectional Design Design Research Design Research Design Conclusive Conclusive Research Research Design Design Exploratory Exploratory Research Research Design Design Descriptive Descriptive Research Research Causal Causal Research Research Cross-Sectional Sectional Design Design Longitudinal Longitudinal Design Design

(4)

4 4

Exploratory & Conclusive Research

Differences

Objective: Objective: Character-istics: istics: Findings/ Findings/ Results: Results: Outcome: 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 representative. Analysis of primary data is of primary data is qualitative. qualitative. Tentative. Tentative. Generally followed by Generally followed by further exploratory or further exploratory or

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.

E

(5)

3-1c Conclusive Research: Narrowing

Down Strategic Alternatives



Descriptive research

characterizes

marketing phenomena without testing for

cause-and-effect relationships. It is used for:



 determining the frequency of certain marketingdetermining the frequency of certain marketing

phenomena



 _{determining the degree of association between}_{determining the degree of association between}

marketing variables



 making predictions regarding marketingmaking predictions regarding marketing

phenomena



Causal research

gathers evidence on cause-

gathers evidence on

cause-Conclusive research aims to narrow the field

Conclusive research aims to narrow the field

of strategic alternatives down to one.

Two

types:

(6)

6 6

Designs

Objective: Objective: Characteristics Characteristics : : Methods: Methods: Discovery of Discovery of ideas and ideas and insights insights Flexible, Flexible, versatile versatile

Often the front

end of total end of total research design research design Expert surveys Expert surveys Pilot surveys Pilot surveys Secondary Secondary data: data: Describe market Describe market characteristics or characteristics or functions functions Marked by the Marked by the prior formulation prior formulation of specific of specific hypotheses hypotheses Preplanned and Preplanned and structured design structured design Secondary data: Secondary data: quantitative quantitative analysis analysis Surveys Surveys Panels Panels Determine cause Determine cause and effect and effect relationships relationships Manipulation of Manipulation of one or more one or more independent independent variables variables Control of other Control of other mediating mediating variables variables Experiments Experiments E Exxpplloorraattoorryy DDeessccrriippttiivvee CausalCausal

(7)

Uses of Exploratory Research



 Formulate a problem or define a problemFormulate a problem or define a problem

more precisely



 Identify alternative courses of actionIdentify alternative courses of action 

 Develop hypothesesDevelop hypotheses 

 Isolate key variables and relationships forIsolate key variables and relationships for

further examination



 Gain insights for developing an approachGain insights for developing an approach

to the problem



(8)

8 8

Use of Descriptive

Research



 To describe the characteristics of To describe the characteristics of relevantrelevant

groups, such as

groups, such as consumers, salespeople,consumers, salespeople,

organizations, or market areas.



 To estimate the percentage of units in a To estimate the percentage of units in a

specified population exhibiting a certain

behavior.



 To determine the perceptions of product To determine the perceptions of product

characteristics.



 To determine the degree to which marketing To determine the degree to which marketing

variables are associated.



(9)

Research

1.

1. Market sMarket studietudies that dess that describe tcribe the size ohe size of the markef the market,t,

buying power of the consumers, availability of

distributors, and consumer profiles.

2.

2. Market shMarket share studare studies that deties that determiermine the propne the proportioortionn

of total sales received by a company and its

competitors.

3.

3. Sales anSales analysialysis studs studies that dies that descriescribe sales bbe sales byy

geographic region, product line, type, and size of

the account.

4.

4. Image stuImage studies that detdies that determinermine consume consumer perceer perceptionptionss

of the firm and its

of the firm and its products.products.

5.

5. ProduProduct usage stct usage studieudies that descs that describe conribe consumpsumptiontion

patterns.

6.

6. DistrDistributiibution studon studies that deies that determitermine traffne traffic flowic flow

patterns, and the number and location of

distributors.

7.

7. PricinPricing studg studies thies that desat describe tcribe the ranghe range ande and

frequency of price changes and

(10)

10 10

When is Causal Research

Appropriate?



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.



What is a good example of causal

research?

(11)

Cross-sectional

Designs



 Involve the collection of information from anyInvolve the collection of information from any

given sample of population elements only once.



 InIn single cross-sectional designs,single cross-sectional designs, there is onlythere is only

one sample of respondents and information is

obtained from this sample only once.



 InIn multiple cross-sectional designsmultiple cross-sectional designs,, there arethere are

two or more samples of respondents, and

information from each sample is obtained only

once.

once. Often, Often, information information from from different different samples samples isis

obtained at different times.



 Cohort analysisCohort analysis consists of a series of surveysconsists of a series of surveys

conducted at appropriate time intervals, where

the c

the cohort sohort serves erves as the as the basic ubasic unit of nit of analysis. analysis. AA

cohort is a group of respondents who experience

the same event within the same time interval.

(12)

12 12

Longitudinal

Designs



 A fixed sample (or samples) of A fixed sample (or samples) of

population elements is measured

repeatedly on the same variables



 A longitudinal design differs from aA longitudinal design differs from a

cross-sectional design in that the

sample or samples remain the same

over time

(13)

-

.

Longitudinal

Sample Sample Surveye Surveye d at T d at T₁₁ Sample Sample Surveyed Surveyed at T at T₁₁ Same Same Sample Sample also also Surveyed Surveyed at T at T₂₂ T T₁₁ _T_T 2 2 Cross-Sectiona Sectiona l Design l Design Longitudina Longitudina l Design l Design Time Time

(14)

14 14

Uses of Casual

Research



 To understand which variables are the cause To understand which variables are the cause

(independent variables) and which variables

are the effect (dependent variables) of a

phenomenon



 To determine the nature of the relationship To determine the nature of the relationship

between the causal variables and the effect

to be predicted



(15)

Designs

Exploratory Exploratory Research Research ••Secondary DataSecondary Data

Analysis Analysis

•• Focus Groups Focus Groups

Conclusive Research Conclusive Research • • Descriptive/Causal Descriptive/Causal Conclusive Research Conclusive Research •• Descriptive/Causal Descriptive/Causal Exploratory Exploratory Research Research •

•Secondary DataSecondary Data

Analysis

•

• Focus Groups Focus Groups

Conclusive Research Conclusive Research •• Descriptive/Causal Descriptive/Causal (a) (a) (b) (b) (c) (c)

(16)

16 16

Secondary Data



internal secondary data generated

within the organization



 _{lower cost}_{lower cost}



 accurateaccurate



 more availablemore available 



external secondary data – generated by

government or syndicated sources



 _{government publications}_{government publications}



 trade association datatrade association data

  booksbooks   _bulletins_bulletins   reportsreports   periodicalsperiodicals

(17)

Role of Secondary Data



first step in data collection: determine

whether the data have already been

collected



advantages of secondary data



 less expensive and time-consuming to collectless expensive and time-consuming to collect



 aid formulation of decision problemaid formulation of decision problem



 _{suggest methods for meeting information needs}_{suggest methods for meeting information needs}



 source of comparative data for primary datasource of comparative data for primary data 



disadvantages of secondary data



 don't exactly fit the information needs of thedon't exactly fit the information needs of the

project



 aggregated without the breakdown or cross-aggregated without the breakdown or