Marketing Research - Chapter 4 - Research Design (PDF)

Marketing Research Ninth Edition, Global Edition Chapter 4 Research Design Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objectives In t...

Marketing Research Ninth Edition, Global Edition Chapter 4 Research Design Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objectives In this chapter you will learn 4.1 What research design is and why it is important 4.2 The three major types of research design: exploratory, descriptive, and causal 4.3 How exploratory research design helps the researcher gain understanding of a problem 4.4 The fundamental questions addressed by descriptive research and the different types of descriptive research 4.5 What is meant by causal research and the different types of experimental research design 4.6 The different types of test marketing and how to select test-market regions Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Where We Are 1. Establish the need for marketing research. 2. Define the problem. 3. Establish research objectives. 4. Determine research design. 5. Identify information types and sources. 6. Determine methods of accessing data. 7. Design data collection forms. 8. Determine the sample plan and size. 9. Collect data. 10. Analyze data. 11. Communicate insights. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Research Design Research design is a master plan specifying the methods and for collecting and analyzing the needed information. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Why Is Research Design Important? Good research design is the “first rule of good research”. Knowledge of the needed research design allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Objectives of Research Design To gain background information and to develop hypotheses To measure the state of a variable of interest To test hypotheses that specify the relationships between two or more variables Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Research Design: A Caution In many cases research is an iterative process. By conducting one research project, we learn that we may need additional research, which may result in using multiple research designs. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Three Types of Research Designs Exploratory Descriptive Causal Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Exploratory Research Exploratory research is unstructured, informal research usually conducted at the outset of research projects. It is usually conducted when the researcher does not know much about the problem. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Uses of Exploratory Research Gain background information Define terms Clarify problems and hypothesis Establish research priorities Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Exploratory Research Methods (1 of 2) Secondary Data Analysis: the process of searching for interpreting existing information relevant to the research topic Experience Surveys: refers to gathering information from those knowledgeable on the issues relevant to the research problem – Key-informant technique: gathering information from those thought to be knowledgeable on the issues relevant to the problem – Lead-user survey: used to acquire information from lead users of a new technology Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Exploratory Research Methods (2 of 2) Case Analysis: a review of available information about a former situation(s) that has some similarities to the current research problem Focus Groups: small groups brought together and guided by a moderator through an unstructured, spontaneous discussion for the purpose of gaining information relevant to the research problem Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Descriptive Research Descriptive research is undertaken to describe answers to questions of who, what, where, when, and how. It is undertaken to collect data to examine characteristics of consumer and/or markets. It is desirable when we wish to project a study’s findings to a larger population, if the study’s sample is representative. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Descriptive Research Classifications Cross-sectional studies Longitudinal studies Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Descriptive Research Studies (1 of 3) Cross-sectional studies measure units from a sample of the population at only one point in time (or “snapshot”). – 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. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Descriptive Research Studies (2 of 3) Longitudinal studies repeatedly measure the same sample units of a population over time. Since they involve multiple measurements over time, they are often described as “movies” of the population. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Descriptive Research Studies (3 of 3) Continuous panels ask panel members the same questions on each panel measurement. Discontinuous panels vary questions from one panel measurement to the next. – These are sometimes referred to as omnibus panels (omnibus meaning “including or covering many things or classes”). Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Discontinuous Panels Discontinuous panels are demographically matched to some larger entity, implying representativeness. Discontinuous panels represent sources of information that may be quickly accessed for a wide variety of purposes. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Continuous Panels Brand-switching studies: studies examining how many consumers switched brands. Market-tracking studies are those that measure some variable(s) of interest — such as market share or unit sales — over time. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Table 4.1 and Table 4.2 Table 4.1 Results of Two Cross-Sectional Studies “Which Brand of Peanut Butter Did You Most Recently Purchase?” Brand Cross-Sectional Survey 1 Cross-Sectional Survey 2 Jif 300 250 Skippy 100 150 Peter Pan 100 100 Total Families 500 500 Table 4.2 Results of Two Waves of a Longitudinal Study “Which Brand of Peanut Butter Did You Most Recently Purchase?” Wave 1 Brand Wave 2 Brand Wave 2 Brand Wave 2 Brand Wave 2 Brand Blank Jif Skippy Peter Pan Totals, Wave 1 Jif 200 100 0 300 Skippy 50 50 0 100 Peter Pan 0 0 100 100 Totals, Wave 2 250 150 100 Blank Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Causal Research Causality may be thought of as understanding a phenomenon in terms of conditional statements of the form “If x, then y.” Causal relationships are often determined by the use of experiments. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Experiments An experiment is a type of study in which one or more independent variables are manipulated to see how they affect a dependent variable, while also controlling the effects of additional extraneous variables. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 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; display location; method of compensating salespersons; price; type of product. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Dependent Variables Dependent variables are those variables that are measured in response to changes in independent variable. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Extraneous Variables Extraneous variables are those variables other than the independent variables that may have some effect on a dependent variable. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Experimental Design (1 of 4) 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. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Symbols of Experimental Design O = measurement, or observation, of a dependent variable X = manipulation, or change, of an independent variable R = random assignment of subjects to experimental and control groups E = experimental effect (change in the dependent variable due to independent variable) Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Pretest and Posttest Pretest refers to the measurement of the dependent variable taken prior to changing the independent variable. Posttest refers to measuring the dependent variable after changing the independent variable. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Experimental Design (2 of 4) Control group: control of extraneous variables is typically achieved by the use of a second group of subjects Experimental group: the group that has been exposed to a change in the independent variable Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Experimental Design (3 of 4) Before-after testing is an experimental design in which the dependent variable is measured before and after an independent variable is changed. Pretest: a measurement of the independent variable prior to changing the independent variable Posttest: a measurement of the independent variable after changing the independent variable Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Experimental Design (4 of 4) Before-After with Control Group design may be achieved by randomly dividing subjects of the experiment in two groups: Experimental group (R ) O1 X O2 Control group (R ) O3 O4 E = (O2 − O1 ) − (O4 − O3 ). Copyright © 2020 Pearson Education Ltd. All Rights Reserved. A/B Testing Tests two alternatives (A/B) simultaneously to see which is better. Commonly done as online experimentation. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. How Valid Are Experiments? (1 of 2) An experiment is valid if: The observed change in the dependent variable is due to the independent variable. The results of the experiment apply to the “real world” outside the experimental setting. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. How Valid Are Experiments? (2 of 2) Two forms of validity are used to assess the validity of an experiment: Internal validity is concerned with the extent to which the change in the dependent variable is actually due to the change in the independent variable. External validity refers to the extent that the relationship observed between the independent and dependent variables during the experiment is generalizable to the “real world.” Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Types of Experiments (1 of 2) 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. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Types of Experiments (2 of 2) 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. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Test Marketing Test marketing is the phrase commonly used to indicate an experiment, study, or test that is conducted in a field setting. Main 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 Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Types of Test Markets The standard test market is one in which the firm tests the product or marketing mix variables through the company’s normal distribution channels. Controlled test markets are conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors. Simulated test markets (STMs) are 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 generates likely product sales volume. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Selecting Test-Market Cities Three main criteria: Representativeness Degree of isolation Ability to control distribution and promotion Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Pros and Cons of Test Marketing (1 of 2) Advantages: Test marketing allows for the most accurate method of forecasting future sales, and it allows firms the opportunity to pretest marketing-mix variables. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Pros and Cons of Test Marketing (2 of 2) Disadvantages: Test markets do not yield infallible results Competitors may intentionally try to sabotage test markets Test markets bring about exposure of the product to the competition Test markets may create ethical problems Copyright © 2020 Pearson Education Ltd. All Rights Reserved.