Chapter 4: Research Design

A. Research Design
Research design a set of advance decisions that make up the
master plan specifying the methods and procedures for collecting
and analyzing the needed information
There are enough similarities among problems and objectives
that we can group seemingly diverse research projects well
enough to predetermine the most appropriate research design
Identifying the most appropriate basic research design and
characteristics of the design serve the researcher in the same
way a blueprint serves a builder
B. Three Types of Research Designs
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
Three common objectives are:
o To gain background information and to develop hypotheses
o To measure the state of a variable of interest (for example,
level of brand loyalty)
o To test hypotheses that specify the relationships between
two or more variables (for example level of advertising and
brand loyalty)
Research designs are classified into three traditional categories:
o Exploratory
o Descriptive
o Causal
The choice of the most appropriate design depends on the
research objectives
The less we know, the more likely it is that we should use
exploratory research
Causal research should only be used when we know a fair
amount about the problem and we are looking for causal
relationships among variables associated with the problem or
research objectives
1. Research Design
The order in which the designs are presented in this chapter
exploratory, descriptive and causal is not the order in which
these designs should be carried out
It may be perfectly legitimate to begin with any one of the three
designs and to use only that one design

2. Exploratory Research
Exploratory research most commonly unstructured, informal
research that is undertaken to gain background information
about the general nature of the research problem
Usually conducted when the researcher does not know much
about the problem and needs additional information or desires
new or more recent information
Uses of exploratory research:
o Gain background information
o Define terms
o Clarify problems and hypotheses
o Establish research priorities
Methods of conducting exploratory research:
o Secondary data analysis the process of searching for
and interpreting existing information relevant to the
research topic
o Experience surveys refer to gathering information from
those thought to be knowledgeable on the issues relevant
to the research problem
Key informant technique in the technology field
Lead-user survey- used to acquire information from
lead users of a new technology
o Case analysis a review of available information about a
former situation that has some similarities to the current
research problem; researchers must be cautious in using
former case examples for current problems because
situations change
o Focus group 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
Some form of exploratory research should be used in every
research project, why?
o Secondary data analysis is fast
o Exploratory research can be conducted online and can be
done very quickly and cheap
o Sometimes exploratory research either provides
information to meet the research objective or assists in
gathering current information necessary to conduct either
a descriptive or causal research design
3. Descriptive Research
Descriptive research undertaken to describe answers to
questions of who, what, where, when and how

Desirable when we wish to project a studys findings to a larger

population
Two basic descriptive research studies are:
o Cross-sectional studies one time measurements from a
sample of the population, called snapshots; normally
employ fairly large sample sizes, so many cross sectional
studies are referred to as sample surveys
o Longitudinal studies repeatedly measure the same
sample unit of a population over a period of time. Panels
represent sample units who have agreed to answer
questions at periodic intervals. Maintaining a
representative panel of respondents is a major undertaking
Sample surveys- cross-sectional studies whose samples are
drawn so that they are representative of a specific population
Continuous panels ask panel members the same questions on
each panel measurement
o Firms are interested in using data here because they can
gain insight into changes in consumers purchases,
attitudes, and so on
o Studies examining how many consumers switched brands
are known as brand-switching studies
Discontinuous panels vary questions from one panel
measurement to the next; sometimes referred to as omnibus
panels, which means including or covering many things or
classes
o Like continuous panels are demographically matched to
some larger entity
o They represent existing sources of information that may be
quickly accessed for a wide variety of purposes
The value of longitudinal information using continuous panels
we can see where the consumers are changing from and to
Marketing tracking studies those that measure some variable of
interest market share or unit sales over time
4. Causal Research
Causality may be thought of as understanding a phenomenon
in terms of conditional statements of the form if x, then y
Experiment manipulating an independent variable to see how it
affects a dependent variable, while also controlling effects of
additional extraneous variables
Independent variables variables over which the researcher has
control and wishes to manipulate (the 4 Ps, level of advertising
spending, type of advertising appeal, display location, method of
compensating salespersons, price, type of product)

Dependent variables those variables over which we have little

or no direct control but a strong interest in changing (sales,
market share, consumer satisfaction, sales force turnover, net
profits)
Extraneous variables those that may have some effect on a
dependent variable but yet are not independent variables
Experimental design a procedure for devising an experimental
setting so that a change in a dependent variable may be
attributed solely to the change in an independent variable
Symbols of experimental design:
o O = the measurement of a dependent variable
o X = the manipulation, or change, of an independent
variable
o R = Random assignment of subjects to experimental and
control groups
o E = Experimental effect the change in the dependent
variable due to the independent variable
Experimental group (R) O1X O2
Control group (R)
O3 O4
E = (O2-O1)-(O4-O3)
Pretest when a measurement of the dependent variable is
taken prior to changing the independent variable
Posttest when a measurement of the dependent variable is
taken after changing the independent variable
A true experimental design isolates the effects of the
independent variable on the dependent variable while controlling
for effects of any extraneous variables
Quasi-experimental design designs that do not properly control
for the effects of extraneous variables on our dependent variable
Control group a group whose subjects have not been exposed
to the change in the independent variable
Experimental group- the group that has been exposed to a
change in the independent variable
Before-after with control group design may be achieved by
randomly dividing subjects of the experiment into two groups:
control group and experimental group
An experiment is valid if:
o The observed change in the dependent variable is due to
the independent variable
o The results of the experiment apply to the real world
outside of the experimental setting

Internal validity concerned with the extent to which the change

in the dependent variable was actually due to 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
Laboratory experiments 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
Pros and cons of laboratory experiments:
o Pros
Allow the researcher to control for the effects of
extraneous variables
Compared to field experiments, lab experiments may
be conducted quickly and with less expense
o Cons
Lack of a natural setting
Field experiments the independent variables are manipulated
and the measurements of the dependent variable are made on
test units in their natural setting
Pros and cons of field experiments:
o Pros
Natural setting increasing the likelihood that the
studys findings will also hold true in the real world
o Cons
Expensive
Time consuming
Experimenter must always be alert to the impact of
extraneous variables which are difficult to control

C. Test Marketing
Test marketing the phrase commonly used to indicate an
experiment, study, or test that is conducted in a field setting
There are two broad classes of uses of test markets:
o To test the sales potential for a new product or service
o To test variations in the marketing mix for a product or
service
Test markets are classified into four types:
o Standard the firm tests the product or marketing mix
variables through the companys normal distribution
channels

Con competitors are immediately aware of the

new product or service
Pro good indicators as to how the product will
actually perform because conducted in real setting
o Controlled conducted by outside research firms that
guarantee distribution of the product through pre-specified
types and numbers of distributors
Con distribution network may or may not properly
represent the firms actual distribution system
Pro offer an alternative to the company that
wishes to gain fast access to a distribution system
set up for test market purposes
o Electronic a panel of consumers has agreed to carry
identification cards that each consumer presents when
buying goods and serves
Con test market is one more step removed from
the real market
Pros as consumers buy (or dont) the test product,
demographic information is automatically recorded,
we also know how the different elements of the
promotional mix affect purchases, offers speed,
greater confidentiality, and less cost
o Simulated 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
Cons not as accurate as full-scale test markets as
they are dependent on the assumption built into the
models
Pros much faster and only cost 5%-10% of the cost
of a standard test market, they are also confidential,
and competitors are less likely to know about the test
Three criteria for selecting test-market cities:
o Representativeness the city whose demographic
characteristics most closely match the desired total market
o Degree of isolation
o Ability to control distribution and promotion
Pros and cons of test marketing:
o Pros:
Provides the best information possible to the decision
maker prior to actually going into full-scale marketing
of the product
Most accurate method of forecasting future sales

 Can pretest marketing-mix variables

o Cons:
Do not yield infallible results
Competitors may intentionally try to sabotage test
markets
Costs involving several test cities and various forms
of promotion can easily run in millions
Can bring about exposure of product to competition
May create ethical problems