CHAPTER 1 CHAPTER SUMMARY The major points found in this chapter include: 1.

Research is any organized inquiry carried out to provide information for solving problems. Marketing research is a systematic inquiry that provides information to guide marketing decisions. More specifically, it is a process of determining, acquiring, analyzing and synthesizing, and disseminating relevant marketing data, information, and insights to decision makers in ways that mobilize the organization to take appropriate marketing actions that, in turn, maximize business performance. Marketing research includes reporting, descriptive, explanatory, and predictive studies. These last three areas are emphasized in this book. 2. Not all marketers have established research as a priority in their process of decisionmaking. Thus a hierarchy of marketing decision makers is emerging: The top tier contains those marketers who use research as a fundamental key step in all decisions and who use creative vision to establish proprietary methodologies; the middle tier is those marketers who occasionally turn to research but only rely on the tried-and-true methods; the bottom tier is those marketers who by choice or economic circumstance choose to rely on intuition and judgment rather than marketing research. 3. The marketing managers of tomorrow will need to know more than any managers in history. Marketing research will be a major contributor to that knowledge. Marketing managers will find knowledge of research methods to be of value in many situations. They may need to conduct research either for themselves or for others. As buyers of research services marketers will need to be able to judge research quality. Finally, they may become marketing research specialists themselves. 4. What characterizes good research? Generally, one expects good research to be purposeful, with a clearly defined focus and plausible goals, with defensible, ethical, and repeatable procedures, and with evidence of objectivity. The reporting procedurestheir strengths and weaknessesshould be complete and honest. Appropriate analytical techniques should be used; conclusions drawn should be limited to those clearly justified by the findings; and reports of findings and conclusions should be clearly presented and professional in tone, language, and appearance. Marketers should always choose a researcher who has an established reputation for quality work. The research objective and its benefits should be weighted against potentially adverse effects. CHAPTER OUTLINE 1. WHY STUDY MARKETING RESEARCH?

A. Marketing research is the systematic inquiry that provides information to guide marketing decisions. 1). The expanded American Marketing Association definitiona process of determining, acquiring, analyzing and synthesizing, and disseminating relevant marketing data, information, and insights to decision makers in ways that mobilize the organization to take appropriate marketing actions, that, in turn, maximize business performance. 2). The American Marketing Association (AMA) defines marketing as an organizational function and a set of processes for creating communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (source: Marketing Redefined, Marketing News, American Marketing Association: September 15, 2004, pp 1, 16-18). 3). Decision makers rely on information to make more efficient and effective use of their marketing budgets. 4). At no other time in our history has so much attention been placed on measuring and enhancing return on marketing investment (ROMI). a. When we measure ROMI we calculate the financial return for all marketing expenditures. b. Several factors (e.g., the number of qualified prospects, the rate of conversion of prospects to customers, etc.) are factored into the ROMI equation. c. Increasingly, organizational managers want to know what marketing strategies and tactics capture the most revenue. 5). Marketing research plays an important part in the new technological environment faced by businesses. 6). Marketing research expenditures are increasingly scrutinized for their contribution to ROMI. 7). A management dilemmathe problem or opportunity that requires a marketing decision. 8). Several factors stimulate interest in studying marketing research: a. Explosive growth and influence of the Internet. b. Stakeholders demanding greater influence. 1]. Stakeholders could be customers, workers, shareholders, or the general public. c. More vigorous competition. 1]. Competition is now global and domestic. d. More government intervention. e. More complex marketing decisions. f. Maturing of marketing as a discipline. g. Greater computing power and speed. 1]. More data, faster. 2]. More integration of data.

a). Computer advances permit businesses to create and manage a data warehousean electronic storehouse where vast arrays of collected, integrated data are ready for mining. 3]. More meaningful knowledge from data. a). Organizations increasingly practice data miningapplying mathematical models to extract meaningful knowledge from volumes of data contained within internal databases. 3]. Better visualization tools. 4]. Powerful computations. h. New perspectives on established research methodologies. 2. MARKETING PLANNING DRIVES MARKETING RESEARCH A. Marketing Goals 1). All marketers have different goals; however, each is likely to have goals that address or are related to sales, market share, return on investment, profitability, customer acquisition, customer satisfaction, customer retention, or some combination of these. 2). To assist in making increasingly complex decisions on marketing goals, strategies, and tactics, marketers turn first to information drawn from the marketing decision support system, combined with that generated by marketing intelligence on competitive and environmental activity. B. Marketing Decision Support 1). Every marketer is driven by the need to complete one or many exchanges with its prospective customers. 2). The exchange process generates numerous elements of data. 3). If organized for retrieval, collectively these data elements constitute a marketing decision support system (DSS). a. This is often done via an intranet or extranet. b. An intranet is a private network that is contained within an enterprise (not available to the public at large). 1]. The main purpose of an intranet is to share company information and computing resources among internal audiences. 2]. An intranet can be used to facilitate working in groups and for teleconferences. c. An extranet is a private network that uses the Internet protocols and the public telecommunication system to share an organizations information, data, or operations with external suppliers, vendors, or customers. 1]. An extranet can be viewed as the external portion of a companys intranet. 2]. Through both intranets and extranets parties can access proprietary relational databases containing marketing-related information. C. Marketing Intelligence 1). As no marketing decision exists in a vacuum, the marketing decision maker

must have a broad knowledge of the firms environment. 2). A marketing intelligence system (MkIS) is designed to provide the marketer with ongoing information about events and trends in the technological, economic, political and legal, demographic, cultural, social, and most critically, competitive arenas. a. It is often data from a DSS or MkIS that stimulate the question: Should we do marketing research? D. Marketing Strategy 1). The marketing concept is a philosophy of marketing that assumes that the primary strategy for achieving an organizations marketing goals is to continually satisfy its customers and, thus, establish lifetime customerorganization relationships. a. Strong interest in the marketing concept by organizations explains why customer satisfaction, customer loyalty, and customer assessment studies represent a significant portion of marketing research studies. 2). A marketing strategy is defined as the general approach an organization will follow to achieve its marketing goals. a. Most modern-day marketers have found it valuable to develop a targeting strategy. 1]. This strategy defines what market segment(s) would be best served by the organization that plans on using its resources to gain a distinctive competence or differential advantage against its competition. b. Most marketers have a strategy for product development. c. Strategies can also be constructed on how an organization can best position its particular goods and services to fulfill customer needs. 3). The discovery of marketing opportunities and problems and the resulting strategies is often the task of MkIS in combination with marketing research. E. Marketing Tactics 1). Marketing tactics are specific, timed activities that execute a strategy. 2). Marketing research is often used to help a marketer decide which of several tactics is likely to successfully execute the desired marketing strategy. 3). Marketing research for the marketing of goods, services, ideas, places, events, and people has the following purposes: a. To identify and define marketing opportunities and problems. b. To define, monitor, and refine marketing strategies. c. To define, monitor, and refine marketing actions (tactics). d. To improve our understanding of marketing as a process. F. Emerging Hierarchy of Marketing Decision Makers 1). While not all organizations use marketing research to help make marketing planning decisions, increasingly the successful ones do. 2). A hierarchy of marketing decision makers is characterized by a three-tier pyramid (see Exhibit 1-3). a. In the top tier (visionaries), organizations see research as the fundamental first step in any marketing venture. Characteristics include:

1]. Every decision is guided by marketing research. 2]. Firms develop proprietary methodologies and are innovative in their combination of methodologies. 3]. Enterprisewide access to research data and findings is available. b. In the second tier (standardized decision makers), marketing decision makers rely periodically on research information. Characteristics include: 1]. Some decisions based on marketing research. 2]. Firms use tried-and-true methodologies, excluding others that might be appropriate. 3]. Limited enterprisewide data and findings. c. In the base tier (intuitive decision makers), marketers who primarily use instinct and intuition rather than formal marketing research to facilitate their decisions are found. Characteristics include: 1]. Most decisions are based on past experience or instincts. 2]. Decisions are supported with secondary data searches. 3. WHEN IS RESEARCH UNNECESSARY? A. Value versus no value 1). Marketing research has an inherent value only to the extent that it helps make better decisions that help achieve organizational goals. 2). Information for informations sake is not associated with professional marketing research. a. If a study does not help management select more effective, more efficient, less risky, or more profitable alternatives than would otherwise be the case, its use should be questioned. 3). Management may have insufficient resources (time, money, or skill) to conduct an appropriate study or may face a low level of risk associated with the decision at hand. 4). In the situation above, it is valid to avoid marketing research and its associated costs in time and money. 5). Marketing research finds its justification in the contribution it makes to the decision makers task and to the bottom line. 4. WHEN IS RESEARCH ESSENTIAL? A. Introduction 1). When considering or answering the following four examples (mini-cases), please answer the following questions: a. What is the marketing decision-making dilemma facing the manager? b. What must the researcher accomplish? G. What Types of Research Should be Considered?

1). The different types of marketing research can be categorized as being: a. Reporting. b. Descriptive. c. Explanatory. d. Predictive. 2). Reporting a. A reporting study may be made only to provide an account or summation of some data or to generate some statistics. b. This task might be quite simple and the data readily available. c. A reporting study calls for knowledge of and skill with information sources and gatekeepers of information sources. d. Purists claim that reporting studies do not qualify as research. e. Others believe that investigative reporting does qualify as research. 3). Descriptive a. A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. b. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. c. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event, act, or characteristic (known as a research variable), or they may involve relating the interaction of two or more variables. d. Descriptive studies may or may not have the potential for drawing powerful inferences. e. The descriptive study is popular in marketing research because of its versatility in numerous management dilemmas. f. Descriptive studies assist management in planning, monitoring, and evaluating. . 4). Explanatory a. An explanatory study goes beyond description and attempts to explain the reasons for the phenomenon that the descriptive study only observed. b. Research that studies the relationship between two or more variables is also referred to as a correlational study. c. In an explanatory study, the researcher uses theories or at least hypotheses to account for the forces that caused a certain phenomenon to occur. d. A hypothesis can be thought of as one plausible explanation that explains a result.

5). Predictive a. It is desirable in marketing to be able to predict when and in what situations an event will occurthis is the predictive study. b. Managers would like to be able to control a phenomenon once we can explain and predict it. c. Being able to replicate a scenario and dictate a particular outcome is the objective of control. d. Control is the logical outcome of prediction. e. The complexity of the phenomenon and the adequacy of the prediction theory largely decide the success in a control study. 5. IS MARKETING RESEARCH ALWAYS PROBLEM-SOLVING-BASED? A. Applied research has a practical problem-solving emphasis, although the problem solving is not always generated by a negative circumstance. 1). The problem-solving nature of applied research means it is conducted to reveal answers to specific questions related to action, performance, or policy needs. B. Pure research or basic research aims to solve perplexing questions of a theoretical nature that have little impact on strategic or tactical decisions. 1). Both applied research and pure research are problem-solving based, but applied research is directed much more to making immediate marketing decisions. C. The classical concept of basic research calls for a hypothesisan explanation that is advanced for the purpose of testing its truth or falsity. 1). In applied research such a narrow definition omits at least two types of investigation that are highly valued. a. Exploratory Studythe investigator knows so little about the area of study that hypotheses have not yet emerged and the final research problem has not yet emerged. b. Descriptive Studythe very essence of description is to name the properties of things. 1]. Example: segmentation study. 2). The four types of studiesreporting, descriptive, explanatory, or predictive can properly be called marketing research, as each provides information to solve a marketing problem or capitalize on an opportunity. 6. WHAT IS GOOD RESEARCH? A. Good marketing research generates dependable data, being derived by practices that are conducted professionally and that can be used reliably for marketing decision making. 1). Good research follows the standards of the scientific methodsystematic, empirically based procedures for generating replicable research.

B. Defining characteristics of the scientific method: 1). Purpose clearly defined. 2). Research process detailed. 3). Research design thoroughly planned. 4). High ethical standards applied. 5). Limitations frankly revealed. 6). Adequate analysis for decision makers needs. 7). Findings presented unambiguously. 8). Conclusions justified. 9). Researchers experience reflected. CHAPTER II The Marketing Research Industry 1. INTRODUCTION A. The chapter begins with a summary of events that influenced how the marketing research field developed and then describes the structure of the marketing research industry. B. The history of marketing research can be divided into four periods: 1). Early history. a. It is apparent that early marketing research occurred before the twentieth century. b. Marketing research was grounded in personal relationships between business owners and their customers as the information source for understanding needs and demand. 2). Emergence of the field from the Industrial Revolution to 1925. a. The producer was distanced from the individual consumer, and marketing research was primarily market analysis and distribution research. b. This period had notable academic pioneers and the creation of commercial research departments. 3). Improvement in poll and survey methodology (1925-1960). a. Survey research expanded. b. Sampling improved. c. Specifications for fieldwork were written. d. The polling industry was born. e. Progress was made in methodology and systematic data analysis. 1]. Mechanisms for mass marketing were established. f. Marketing research expenditures increased significantly. g. Interest grew in advertising and consumer (motivational) research. h. The period ended with the advent of the first high-speed computers.

4). The Information Revolution (1960-present). 2. INFORMATION REVOLUTIONIZES THE INDUSTRY A. The Information Revolution (1960present). 1). Peter Drucker believes that the real impact of the Information Revolution has yet to be felt. 2). In business and government the way decision making occurs has changed little. 3). The amount of information available to make decisions, conduct research, and create strategy has benefited vastly from technology. 4). The Internet has emerged as a major global channel for goods and services. a. To really be workable as a solution to business problems, the Internet technology must become workable for the average user. b. During the next 10-20 years, missing components of the technologys use structure will be put in place. 5). Note that in the last 40 years we have shifted to a technology-based society. a. PDA technology has enabled the average consumer or businessperson to have a mobile technology for solving problems and accessing information. 6). Information technology transforms itself about every 10 years. a. Therefore, the Information Revolution will likely be replaced by something new. B. Data Collection Accelerates. 1). During the technology-rich era, marketing researchers have profited from new ways of speeding up data entry. a. Keyboarding was the original means for researchers to create a data file and store it in a minimal space on a variety of media. b. Today, statistical packages like Minitab, SAS, and SPSS now include fullscreen editors where an entire data file can be edited or browsed. c. For large projects, database programs serve as valuable data entry devices. d. Scanners can be used to transfer print text into files. e. Optical mark recognition (OMR) uses a spreadsheet-style interface to read and process user-created forms. 2). Other advances include direct-response entry (such as touch screens). a. Field researchers use portable computers or electronic notebooks with a build-in communications modem or cellular link. b. Bar code technology is also expanding its applications. 1]. In the large-scale processing project Census 2000, the Census Data Capture Center used bar codes to identify residents. 3). The novelty and convenience of communicating by computer led researchers to cyberspace in search of abundant sources of data. Forms include: a. Computer-assisted telephone interviewing (CATI). b. Computer-administered telephone survey. c. Computer-delivered self-administered questionnaires use organizational

intranets, the Internet, or online services to reach their participants. d. The computer-delivered surveys are crafted conventionally or developed with computer-aided research design (CARD) software that enables the user to design the questionnaire interactively. e. Computer technology also makes color and visually appealing designs possible within a survey. 4). Online focus groups make it possible to do live voice chats online, reducing or eliminating the cost associated with telephone focus groups. a. Videoconferencing may also be used as a way of reducing costs. b. In traditional focus groups, recorded results can be summarized using software programs that analyze the content of the written response. 5). Geographic information systems (GISs), systems of hardware and software for spatially referenced data, is an outgrowth of technological advances. C. Marketing Information Management. 1). At one time companies used four methods to obtain marketing information: a. Marketing research projects. b. Marketing intelligence. c. Marketing information systems. d. Decision support systems. 2). Major users of the above methods believe that the competitive advantage belongs to the marketing organization best able to exploit these technologies and bring value to their customers. 3). Characteristics of the information value chain are: a. Data collection and transmissioncosts have been lowered. b. Data managementthe challenge is to remove barriers to usage and overcome resistance. c. Decision support systema DSS integrates data management techniques, models, and analytical tools to support decision-making. d. Modelsenormous quantities of marketing research data are reduced to relatively straightforward equations with statistical models. 1]. Expert systems. 2]. Advanced analytical models. e. Data interpretationdata must be more than timely and standardized. 1]. Data must be meaningful to the user. 2]. Common features now recognizable in data interpretation include menu-driven interfaces, accommodation of real-time requests, ability to model ill-defined problems, graphic representation tools and displays, and the means to adapt to different market environments. D. How the Industry Works. 1). There are a variety of suppliers of marketing research services. 2). The trend in the industry is clearly not to staff large internal research departments. a. Because of economic conditions, some firms have eliminated their internal

research operations altogether. b. In some companies, the role of the information technology manager has forced marketing researchers into a more subordinate staff role. E. Internal Research Suppliers. 1). Not all marketers rely on research to make decisions. 2). If firms use marketing research to make decisions, they are likely to have an internal research department or an individual who coordinates marketing research initiatives. 3). All types of research-based decision makers have internal research operations, but the structure and scope of these operations is diverse. 4). In the 1960s, as marketing research entered into an new era, more firms began to add internal research departments. 5). However, by the 1980s, executives were beginning to question the role of marketing research in strategic decision-making. 6). During the 1990s, industry executives felt that the accuracy and actionability of the information provided by research was thought to be low. 7). In the early 21st century, marketing research began to make substantial strides in expanding the scope of the field. a. When polled many senior executives generally gave marketing research a positive rating. b. This boosted marketing researchs prestige and led to an expanding role. c. As costs rose, accountability was emphasized in organizations. F. External Research Suppliers. 1). Marketing Research Companies. a. Full-service Firms. 1]. Full-Service marketing researchera firm with both quantitative and qualitative methodology expertise that conducts all phases of research from planning to insight development. b. Custom Researchers. 1]. A custom researcher crafts a research design unique to the marketing decision makers dilemma. 2]. Each project begins with a blank page. c. Proprietary Methodology Researchers. 1]. A proprietary methodology is a research program or technique that is owned by a single firm. 2]. An example would be ACNielsens Homescan syndicated panel. 3]. These methodologies often grow from significant expertise in a given methodology or a given industry. d. Specialty Marketing Research Firms. 1]. This form represents the largest number of research firms. 2]. Dominates small research firms.

3]. Specialty marketing researcher establishes expertise in one or a few research methodologies. Examples of arenas of expertise include: a). Methodology. b). Process. c). Industry. d). Participant group. e). Geographic region. e. Methodology Specialists. 1]. A methodology specialist focuses its services on a particular research methodology. 2]. Examples would be a specialization in conducting focus groups or specialization in conducting observational research. 3]. Ethnography is a type of study that uses both observation and communication methodologies. 4]. Firms providing Web page optimization research and Web performance metrics are an emerging group of methodology specialists. f. Other Specialty Research Suppliers. 1]. Specialty research suppliers assist other research firms to complete projects. 2]. These firms provide screening and recruiting of probability samples for a wide range of survey studies, as well as studies employing in-depth interviews, laboratory and in-home product testing, laboratory experiments, home ethnographics, etc. 3]. Specialty research suppliers may also specialize in a subset of a methodology specialty (e.g., focus group moderators but not the focus group preparation process). g. Syndicated Data Providers. 1]. Syndicated data providers track the change of one or more measures over time, usually in a given industry. 2]. Such firms may track product movement through various retail outlets and wholesale environments. 3]. These firms provide decision makers with measures of price elasticity. 4]. Each syndicated data provider determines the frequency of data collection and reporting based on the needs of the members in the syndicate. 5]. An example of such services is Nielsen Media Researchs People Meter research that mechanically records and then reveals the viewing habits of a panel of television watchers. 6]. Typically the firm subscribing to the syndicate has full access to its data and the composite data, but not to an individual competitors data. h. Omnibus Researchers. 1]. Omnibus researchers field research studies, often by survey, at regular,

predetermined intervals. 2]. An omnibus study combines one or a few questions from several marketing decision makers who need information from the same population. 3]. It is not uncommon for these researchers to turnaround research results in one or two days. 4]. Marketers pays for this research based on the number of questions, usually $700 to $1,500 per question. 2). Communication Agencies. a. Advertising, public relations, sales promotion, and direct marketing agencies are heavy users of syndicated research data, especially from media industry suppliers. b. Some agencies are known for the extensive research they do on such subjects as ad recall and ad wear-out. c. All agencies do extensive copy testing as a development tool in building a campaign and effectiveness testing with postplacement recall, knowledge, and behavior measures. 1]. Such measures combine custom research with syndicated research to explain why a campaign was a success. 3). Consultants. a. Both business and marketing consultants offer a wide range of services at the strategic and tactical levels. b. All consultants are involved in doing extensive secondary data research for their clients. c. Consultants are able to conduct both quantitative and qualitative research for their clients. 4). Trade Associations. a. Generally, trade associations have as their purpose to promote, educate, and lobby for their members. b. Types include: 1]. General Marketing. a). The American Marketing Association and the Marketing Science Institute are two organizations that conduct or sponsor and publish basic research on topics which affect marketing decision-making. 2]. Marketing Specialties. a). Marketing research as a specialty has several trade associations that serve it: 1}. American Association of Public Opinion Researchers. 2}. Council of American Survey Research Organizations (CASRO). 3}. Marketing Research Association (MRA). 4}. World Association of Opinion and Marketing Research Professionals (ESOMAR).

b). Communication Specialties have trade associations concerned with research: 1}. Advertising Research Foundation (ARF). 2}. Association of National Advertisers (ANA. 3}. Sales Research Trust (SRT). c). Media trade associations include: 1}. Magazine Publishers of America (MPA). 2}. National Association of Broadcasters (NAB). 3}. Newspaper Association of America (NAA). 4}. Point of Purchase Advertising International (POPAI). 5}. Radio Advertising Bureau (RAB). CHAPTER 3 Thinking Like a Researcher CHAPTER SUMMARY 1. Scientific inquiry is grounded in the inference process. This process is used for the development and testing of various propositions largely through the double movement of reflective thinking. Reflective thinking consists of sequencing induction and deduction in order to explain inductively (by hypothesis) a puzzling condition. In turn, the hypothesis is used in a deduction of further facts that can be sought to confirm or deny the truth of the hypothesis. Researchers think of the doing of science as an orderly process that combines induction, deduction, observation, and hypothesis testing into a set of reflective thinking activities. Although the scientific method consists of neither sequential nor independent stages, the problem-solving process that it reveals provides insight into the way research is conducted. 2. Scientific methods and scientific thinking are based on concepts, the symbols we attach to bundles of meaning that we hold and share with others. We invent concepts to think about and communicate abstractions. We also use higher level concepts constructsfor specialized scientific explanatory purposes that are not directly observable. Concepts, constructs, and variables may be defined descriptively or operationally. Operational definitions must specify adequately the empirical information needed and how it will be collected. In addition, they must have the proper scope or fit for the research problem at hand. Concepts and constructs are used at the theoretical levels; variables are used at the empirical level. Variables accept numerals or values for the purpose of testing and measurement. They may be classified as explanatory, independent, dependent, moderating, extraneous, and intervening.

3. Propositions are of great interest in research because they may be used to assess the truth or falsity of relationships among observable phenomena. When we advance a proposition for testing, we are hypothesizing. A hypothesis describes the relationships between or among variables. A good hypothesis is one that can explain what it claims to explain, is testable, and has greater range, probability, and simplicity than its rivals. Sets of interrelated concepts, definitions, and propositions that are advanced to explain and predict phenomena are called theories. Models differ from theories in that models are analogies or representations of some aspect of a system or of the system as a whole. Models are used for description, prediction, and control. CHAPTER OUTLINE 1. MARKETING RESEARCH AND THE SCIENTIFIC METHOD A. Good marketing research is based on sound reasoning. 1). Sound reasoning is based on finding correct premises, testing connections between facts and assumptions, and making claims based on adequate evidence. 2). In the reasoning process, induction and deduction, observation, and hypothesis testing can be combined in a systematic way. 3). The scientific method guides our approach to problem solving. The essential tenets of the scientific method are: a. Direct observation of phenomena. b. Clearly defined variables, methods, and procedures. c. Empirically testable hypotheses. d. The ability to rule out rival hypotheses. e. Statistical rather than linguistic justification of conclusions. f. The self-correcting process. 4). Empirical testing or empiricism is said to denote observations and propositions based on sensory experience and/or derived from such experience by methods of inductive logic, including mathematics and statistics. a. Researchers using this approach attempt to describe, explain, and make predictions by relying on information gained through observation. 5). The scientific method, and scientific inquiry generally, is described as a puzzle-solving activity. 6). A summary of steps that might be followed in a scientific inquiry include: a. A problem is encountered. b. There are struggles to state the problem. c. Hypotheses are proposed to explain the facts that are logically related to

the problem. d. Outcomes or consequences of the hypotheses are deduced. e. Several rival hypotheses are formulated. f. The researcher devises and conducts a crucial empirical test with various possible outcomes. g. A conclusion (an inductive inference) is drawn based on acceptance or rejection of the hypotheses. h. Information is fed back into the original problem, modifying it according to the strength of the evidence. B. Sound Reasoning for Useful Answers. 1). Our communication meanings are conveyed through one of two types of discourse: a. Expositiona statement that describes without attempting to explain. b. Argumenta statement that explains, interprets, defends, challenges, or explores meaning. 2). Deduction. a. Deduction is a form of argument in which the conclusion must necessarily follow from the premises given. 1]. There is a much stronger and different bond between reasons and conclusions than is found with induction. b. For a deduction to be correct, it must be both true and valid: 1]. Premises (reasons) given for the conclusion must agree with the real world (true). 2]. The conclusion must necessarily follow from the premises (valid). c. A deduction is valid if it is impossible for the conclusion to be false if the premises are true. 1]. Conclusions are not logically justified if one or more premises are untrue or the argument form is valid. 2]. A conclusion may still be a true statement, but for reasons other than those given. 3). Induction. a. Induction is a form of reasoning that draws a conclusion from one or more particular facts or pieces of evidence. b. The conclusion explains the facts, and the facts support the conclusion. c. The inductive conclusion is an inferential jump beyond the evidence presented. d. Confirmation comes with more evidence. e. The task of research is largely to: 1]. Determine the nature of the evidence needed to confirm or reject hypotheses. 2]. Design methods by which to discover and measure this other evidence. 4). Combining Induction and Deduction.

a. Induction and deduction are used together in research reasoning. 1]. Dewey describes this process as the double movement of reflective thought. b. Induction occurs when we observe a fact and ask, Why is this? 1]. In answer to this question, we advance a tentative explanation (hypothesis). 2]. The hypothesis is plausible if it explains the event or condition (fact) that prompted the question. c. Deduction is the process by which we test whether the hypothesis is capable of explaining the fact. d. Critical points include: 1]. Circular reasoning points out that one must be able to deduce the initiating fact from the hypothesis advanced to explain that fact. 2]. To test a hypothesis, one must be able to deduce from it other specific facts or events from the hypothesis and then gather information to see if the deductions are true. e. In most research, the process may be more complicated than these examples suggest. 1]. We often develop multiple hypotheses by which to explain the problem in question. 2]. Then we design a study to test all the hypotheses at once. 3]. This is a good way to reduce the attachment (and potential bias) of the researcher for any given hypothesis. 2. THE LANGUAGE OF RESEARCH A. When we do research, we seek to know what is in order to understand, explain, and predict phenomenon. 1). The questions developed require the use of concepts, constructs, and definitions. B. Concepts. 1). A concept is a bundle of meanings or characteristics associated with certain concrete, unambiguous events, objects, conditions, or situations. 2). Classifying and categorizing objects or events that have common characteristics beyond any single observation create concepts. 3). We abstract meanings from our experiences and use words as labels to designate them. 4). Sources of Concepts. a. We acquire concepts through personal experience. b. We have problems with an uncommon concept or a newly advanced idea. c. We try to solve this problem by borrowing from other languages (for example, gestalt) or to borrow from other fields (for example, from art, impressionism).

d. Sometimes we need to adopt new meanings for words or develop new labels for concepts. 5). Importance to Research. a. Special problems grow out of the need for concept precision and inventiveness. b. The success of research hinges on: 1]. How clearly we conceptualize. 2]. How well others understand the concepts we use. C. Constructs. 1). Concepts have progressive levels of abstraction. a. Abstract concepts are often called constructs. b. A construct is a definition specifically invented to represent an abstract phenomena for a given research project. 2). Concepts and constructs are easily confused. 3). Hypothetical constructs are constructs inferred only from data; its presumption must be tested. 4). A conceptual scheme is the interrelationships between concepts and constructs. D. Definitions. 1). Confusion about the meaning of concepts can destroy a research studys value without the researcher or client even knowing it. a. Definitions are one way to reduce this danger. 2). Researchers struggle with two types of definitions: a. Dictionary definitions. b. Operational definitions. 3). To be of value, definitions need to be rigorous. 4). Operational Definitions. a. Operational definition defines a variable in terms of specific measurement and testing criteria. b. Operational definitions may vary, depending on your purpose and the way you choose to measure them. c. Whether you use a definitional or operational definition, its purpose in research is basically the sameto provide an understanding and measurement of concepts. E. Variables. 1). The term variable is used as a synonym for construct or the property being studied. 2). A variable is an event, act, characteristic, trait, or attitude that can be measured and to which we assign categorical values. a. For purposes of data entry and analysis, we assign numerical value to a variable based on the variables properties. b. Some variables may be dichotomous and have two values. c. Other variables may be described as being discrete since they have only

certain values. d. Income, temperature, age, or a test score are examples of continuous variables as these values may take on values within a given range or, in some cases, an infinite set. 3). Independent and Dependent Variables. a. Researchers are most interested in relationships among variables. b. Independent variable (IV) or predictor variable is a variable manipulated by the researcher, thereby causing an effect on the dependent variable. c. Dependent variable (DV) or criterion variable is a measured, predicted, or otherwise monitored variable expected to be affected by manipulation of an independent variable. 4). Moderating Variables. a. In each relationship, there is at least one independent variable and a dependent variable. b. A moderating variable (MV) is a second independent variable, believed to have a significant contributory or contingent effect on the originally stated IV-DV relationship. c. Whether a given variable is treated as an independent or as a moderating variable depends on the hypothesis. 5). Extraneous Variables. a. An almost infinite number of extraneous variables (EVs) exist that might conceivably affect a given relationship. 1]. An extraneous variable (EV) is a variable to assume or exclude from a research study. 2]. Fortunately, these variables have little or no effect on a given situation. b. However, there may be some extraneous variables to consider as possible confounding variables to hypothesized IV-DV relationships. c. A control variable is a variable introduced to help interpret the relationship between variables. 6). Intervening Variables. a. An intervening variable (IVV) is a factor that affects the observed phenomenon but cannot be measured or manipulated. b. Its effect must be inferred from the effects of the independent and moderator variables on the observed phenomenon. F. Propositions and Hypotheses. 1). A proposition is a statement about observable phenomena that may be judged as true or false. 2). When a proposition is formulated for empirical testing, it is called a hypothesis. a. As a declarative statement, a hypothesis is of a tentative and

conjectural nature. b. Hypotheses have been described as statements in which we assign variables to cases. 1]. A case is the entity or thing the hypothesis talks about. 2]. The variable is the characteristic, trait, or attribute that, in the hypothesis, is imputed to the case. 3). Descriptive Hypotheses. a. Descriptive hypotheses are statements about the existence, size, form, or distribution of a variable. b. Researchers often use a research question rather than a descriptive hypothesis. c. Descriptive hypotheses have the following advantages over the research question format (or other formats): 1]. It encourages researchers to crystallize their thinking about the likely relationships to be found. 2]. It encourages them to think about the implications of a supported or rejected finding. 3]. It is useful for testing statistical significance. 4). Relational Hypotheses. a. The research question format is less used with a situation calling for relational hypotheses. b. A relational hypothesis is a statement about the relationship between two variables with respect to some case. c. Relationships can be: 1]. Correlationalan unspecified relationship. 2]. Explanatory (causal)predictable relationship. d. Correlational hypotheses are statements indicating that variables occur together in some specified manner without implying that one causes the other. e. Explanatory (causal) hypotheses are statements that describe a relationship between two variables in which one variable leads to a specified effect on the other variable. 1]. In proposing or interpreting causal hypotheses, the researcher must consider the direction of the influence. a). Sometimes the ability to identify the direction of influence depends on the research design. 5). The Role of Hypotheses. a. In research, a hypothesis serves several important functions: 1]. It guides the direction of the study. 2]. It identifies facts that are relevant and those that are not. 3]. It suggests which form of research design is likely to be most appropriate.

4]. It provides a framework for organizing the conclusions that result. b. What is a strong hypothesis? 1]. A strong hypothesis should fulfill three conditions: a). Adequate for its purpose. b). Testable. c). Better than its rivals. G. Theory. 1). The difference between theory and hypothesis is one of degree of complexity and abstraction. a. Theories tend to be complex, abstract, and involve multiple variables. b. Hypotheses tend to be more simple, limited-variable statements involving concrete instances. 2). Our ability to make rational decisions, as well as develop scientific knowledge, is measured by the degree to which we combine fact and theory. 3). A theory is a set of systematically interrelated concepts, definitions, and propositions that are advanced to explain or predict phenomena. H. Models. 1). The term model is used in marketing research and other fields of business to represent phenomena through the use of analogy. 2). A model is a representation of a system constructed to study some aspect of that system or the system as a whole. 3). Models differ from theories in that a theorys role is explanation whereas a models role is representation. 4). Marketing models allow researchers and marketing managers to characterize present or future conditions. a. A models purpose is to increase our understanding, prediction, and control of the complexities of the marketing environment. 5). Types of models: a. Descriptive models are used frequently for more complex systems; they allow visualization of numerous variables and relationships. b. Predictive models forecast future events and thereby facilitate marketing planning. c. Normative models are used chiefly for control, informing us about what actions should be taken. 6). Models may also be static, representing a system at one point in time, or dynamic, representing the evolution of a system over time. 7). Models are developed through the use of inductive and deductive reasoning.

CHAPTER 4 The Marketing Research Process: An Overview CHAPTER SUMMARY The major points found in this chapter include: 1. Research originates in the decision process. A manager needs specific information for setting objectives, defining tasks, finding the best strategy by which to carry out the tasks, or judging how well the strategy is being implemented. A dilemma-centered emphasisthe problems origin, selection, statement, exploration, and refinementdominates the sequence of the research process. A decision to do research can be inappropriately driven by the availability of coveted tools and databases. To be researchable, a problem must be subject to observation or other forms of empirical data collection. 2. How one structures the research question sets the direction for the project. A management problem or opportunity can be formulated as a hierarchical sequence of questions. At the most general level is the management dilemma. This is translated into a management question and then into a research questionthe major objective of the study. In turn, the research question is further expanded into investigative questions. These questions represent the various facets of the problem to be solved, and they influence research design, including design strategy, data collection planning, and sampling. At the most specific levels are measurement questions that are answered by respondents in a survey or answered about each subject in an observational study. Exploration of the problem is accomplished through familiarization with the available literature, interviews with experts, focus groups, or some combination. Revision of the management or research questions is a desirable outcome of exploration and enhances the researchers understanding of the options available for developing a successful design. 3. Budgets and value assessments determine whether most projects receive necessary funding. Their thorough documentation is an integral part of the research proposal. Proposals are required for many research projects and should, at a minimum, describe the research question and the specific task the research will undertake. 4. Decisions concerning the type of study, the means of data collection, measurement, and sampling plans must be made when planning the design. Most researchers undertake sampling studies because of an interest in estimating population values or testing a statistical hypothesis. Carefully constructed delimitations are essential for specifying an appropriate probability sample. Nonprobability samples are also used.

Pilot tests are conducted to detect weaknesses in the studys design, data collection instruments, and procedures. Once the researcher is satisfied that the plan is sound, data collection begins. Data are collected, edited, coded, and prepared for analysis. Data analysis involves reduction, summarization, pattern examination, and the statistical evaluation of hypotheses. A written report describing the studys findings is used to transmit the results and recommendations to the intended decision maker. By cycling the conclusions back into the original problem, a new research iteration may begin, and findings may be applied. 5. Several research process problems can diminish the value of research. Included in these are using a technique that is inappropriate for the information needed, just because it is familiar or the researcher has experience with it; attempting to substitute data mining for marketing research; focusing on an unreasonable question; failing to correctly define the management problem; and conducting politically motivated rather than management dilemma-motivated research. CHAPTER OUTLINE 1. THE MARKETING RESEARCH PROCESS. A. Writers usually treat the research task as a sequential process involving several clearly defined steps. 1). The research process includes the various decision stages involved in a research project and the relationship between those stages. 2). According to the authors, with respect to the research process, the management questionits origin, selection, statement, exploration, and refinementis the critical activity in the sequence. 3). According to Albert Einstein, The formulation of a problem is far more essential than its solution, which may be merely a matter of mathematical or experimental skill. To raise new questions, new possibilities, to regard old problems from a new angle requires creative imagination and marks real advance in science. 2. STAGE 1: CLARIFYING THE RESEARCH QUESTION A. The management-research question hierarchy. 1). The management-research question hierarchy process of sequential question formulation that leads a manager or researcher from management dilemma to investigative questions. 2). The process begins with the management dilemmathe problem or opportunity that requires a marketing decision. 3). The management dilemma is usually a symptom of an actual problem, such as:

a. Rising costs. b. The discovery of an expensive chemical compound that would increase the efficacy of a drug. c. Increasing tenant move-outs from an apartment complex. d. Declining sales. e. A larger number of product defects during the manufacture of an automobile. f. An increasing number of letters and phone complaints about postpurchase service 4). The management dilemma can also be triggered by an early signal of an opportunity or growing evidence that a fad may be gaining staying power. a. Identifying management dilemmas is rarely difficult. b. Choosing one dilemma on which to focus may be difficult. c. Choosing incorrectly may result in a waste of time and resources. d. Experienced managers claim that practice makes perfect in this area. e. New managers may wish to develop several management-research question hierarchies, each starting with a different management dilemma. 5). Subsequent stages of the hierarchy take the marketer and his or her research collaborator through various brainstorming and exploratory research exercises to define the following: a. Management questionthe management dilemma restated in question format. b. Research question(s)the hypothesis that best states the objective of the research; the question(s) that focuses the researchers attention. c. Investigative questionsquestions the researcher must answer to satisfactorily answer the research question; what the marketer feels he or she needs to know to arrive at a conclusion about the management dilemma. d. Management questionsthe questions asked of the participants or the observations that must be recorded. 6). The definition of the management question sets the research task. 3. STAGE 2: PROPOSING RESEARCH. A. Resource Allocation and Budgets. 1). Once the research question is defined, the manager must propose research in order to allocate resources to the project. 2). A guide might be that (a) project planning, (b) data gathering, and (c) analysis, interpretation, and reporting each share about equally in the budget. 3). Without budgetary approval, many research efforts are rejected for lack of resources. 4). Types of budgets in organizations where research is purchased and cost containment is crucial include: a. Rule-of-thumb budgetingtaking a fixed percentage of some criterion. b. Departmental or functional-area budgetingallocates a portion of total expenditures in the unit to research activities. c. Task budgetingselects specific research projects to support on an ad hoc

basis. B. Valuing Research Information. 1). There is a great deal of interplay between budgeting and value assessment in any management decision to conduct research. 2). In profit-making concerns, marketing managers are increasingly faced with proving that the research they initiate or purchase meets return-on-investment (ROI) objectives. 3). Conceptually, the value of marketing research is not difficult to determine. 4). Whether research is conducted by for-profit or not-for-profit organizations, the value of the research decision with researchhowever it is measuredmust exceed the value of the decision without research. C. Evaluation Methods. 1). Option Analysis. a. Managers can conduct a formal analysis with each alternative research project judged in terms of estimated costs and associated benefits and with managerial judgment playing a major role. b. The critical task is to quantify the benefits from the research. 1]. Estimates of benefits are crude and largely reflect an orderly way to estimate outcomes under uncertain conditions. 2). Decision Theory. a. When there are alternatives from which to choose, a rational way to approach the decision is to try to assess the outcomes of each action. b. Consider two possible actions (alternatives) as A1 and A2. 1]. The manager chooses the action that affords the best outcomethe action choice that meets or exceeds whatever criteria are established for judging alternatives. c. Each criterion is a combination of a decision rule (criterion for judging the attractiveness of two or more alternatives when using a decision variable) and a decision variable (a quantifiable characteristic, attribute, or outcome on which a choice decision will be made). d. The alternative selected (A1 and A2) depends on the decision variable chosen and the decision rule used. e. The evaluation of alternatives requires that: 1]. Each alternative is explicitly stated. 2]. A decision variable is defined by an outcome that may be measured. 3]. A decision rule is determined by which outcomes may be compared. 3). Prior or Interim Evaluation. a. Some research projects are sufficiently unique that managerial experience provides little aid in evaluating the research proposal. 4). Ex Post Facto Evaluation. a. If there is any measurement of the value of research, it is usually an afterthe-fact event. b. While the postresearch effort at cost-benefit comes too late to guide a

current research decision, such analysis may sharpen the managers ability to make judgments about future research proposals. D. The Research Proposal. 1). A written proposal is often required when a study is being suggested. a. This is especially true if an outside research supplier will be contracted to conduct the research. b. A research proposal may be oral. 4. STAGE 3: DESIGNING THE RESEARCH PROJECT. A. Research Design. 1). The research design is the blueprint for fulfilling objectives and providing the insight to answer managements dilemma. a. The field of marketing research offers a large variety of methods, techniques, procedures, and protocols. b. The numerous alternatives and combinations spawned by the abundance of tools may be used to construct alternative perspectives on the same problem. B. Sampling Design. 1). Another step in planning the research project is to identify the target population (those people, events, or records that have the desired information and can answer the measurement questions) and then determine whether a sample or a census is desired. 2). A census is a count of all elements in a population. 3). A sample is a group of cases, participants, events, or records constituting a portion of the target population, carefully selected to represent that population. 1]. Probability sampling (every person within the target population get a nonzero chance of selection) and nonprobability sampling may be used to construct the sample. C. Pilot testing. 1). The last step in a research design is often a pilot test. a. To condense the project time frame, this step can be skipped. 2). A pilot test is conducted to detect weaknesses in research methodology and the data collection instrument, as well as provide proxy data for selection of a probability sample. a. The pilot test should approximate the anticipated actual research situation (test) as closely as possible. b. A pilot test may have from 25 to 100 subjects and these subjects do not have to be statistically selected. 3). Pilot testing has saved countless survey studies from disaster by using the suggestions of the participants to identify and change confusing, awkward, or offensive questions and techniques.

5. STAGE 4: DATA COLLECTION AND PREPARATION. A. The gathering of data includes a variety of data gathering alternatives. 1). Questionnaires, standardized tests, and observational forms (called checklists) are among the devices used to record raw data. 2). What are data? a. Data can be the facts presented to the researcher from the studys environment. b. Data can be characterized by their abstractness, verifiability, elusiveness, and closeness to phenomenon. 3). Data, as abstractions, are more metaphorical than real. 4). Data are processed by our senses. 5). Capturing data is elusive. 6). Data reflect their truthfulness by closeness to the phenomena. a. Secondary data are data originally collected to address a problem other than the one which requires the managers attention at the moment. b. Primary data are data the researcher collects to address the specific problem at handthe research question. c. Data are the information collected from participants, by observation, or from secondary sources. 7). Data are edited to ensure consistency across respondents and to locate omissions. a. In the case of a survey, editing reduces errors in the recording, improves legibility, and clarifies unclear and inappropriate responses. b. Coding is used to reduce the responses to a more manageable system for processing and storage. 6. STAGE 5: DATA ANALYSIS AND INTERPRETATION. A. Managers need information and insights, not raw data, to make appropriate marketing decisions. 1). Researchers generate information and insights by analyzing data after its collection. 2). Data analysis is the editing, reducing, summarizing, looking for patterns, and applying statistical techniques to data. 3). Increasingly, managers are asking research specialists to make recommendations based on their interpretation of the data. 7. STAGE 6: REPORTING THE RESULTS. A. As the marketing research process draws to a close it is necessary to prepare a report and transmit the findings, insights, and recommendations to the manager for the intended purpose of decision making. 1). The researcher adjusts the style and organization of the report according to the target audience, the occasion, and the purpose of the research.

2). 3).

4). 5).

a. The report should be manager-friendly and avoid technical jargon. b. Reports should be developed from the managers or information users perspective. The researcher must accurately assess the managers needs throughout the research process and incorporate this understanding into the final product, the research report. To avoid having the research report shelved with no action taken, the researcher should strive for: a. Insightful adaptation of the information to the clients needs. b. Careful choice of words in crafting interpretations, conclusions, and recommendations. When research is contracted to an outside supplier, managers and researchers increasingly collaborate to develop appropriate reporting of project results and information. At a minimum, a research report should contain: a. An executive summary consisting of a synopsis of the problem, findings, and recommendations. b. An overview of the research: the problems background, a summary of exploratory findings drawn from secondary data sources, the actual research design and procedures, and conclusions. c. A section on implementation strategies for the recommendations. d. A technical appendix with all the materials necessary to replicate the project.

8. RESEARCH PROCESS PROBLEMS. A. The Favored-Technique Syndrome. 1). Some researchers are method-bound. a. These researchers recast the management question so it is amenable to their favorite methodology (e.g., a survey for example). 2). Persons knowledgeable about and skilled in some techniques but not in others may be blinded by their special competencies. a. The availability of technique is an important factor in determining how research will be done or whether a given study can be done. B. Company Database Strip-Mining. 1). The existence of a pool of information or a database can distract a manager, seemingly reducing the need for other research. 2). Each field in a database was originally created for a specific reason, a reason that may or may not be compatible with the management question facing the organization. 3). While data mining is often a starting point in decision-based research, rarely will this activity answer all management questions related to a particular management dilemma.

C. Unresearchable Questions. 1). Not all management questions are researchable, and not all research questions are answerable. a. To be researchable, a question must be one for which observation or other data collection can provide the answer. b. Many questions cannot be answered on the basis of information alone. 2). Unresearchable questions include those for which past experience of the researcher or experience of the greater research industry has revealed that the information does not exist or cannot be gathered. a. When we seek motivations from participants, we may run into unresearchable questions. b. Questions of value and policy often must be weighed in management decisions. 1]. The multiple facets of the deliberations make many such questions unresearchable. 2]. Even if a question can be answered by facts alone, it might not be researchable because currently accepted and tested procedures or techniques are inadequate. D. Ill-Defined Management Problems. 1). Some categories of problems are so complex, value-laden, and bound by constraints that they prove to be intractable to traditional forms of analysis. 2). Solving well-defined problems involves navigating from a starting point to the solution using natural transitions in the problem sequence to shift from one problem state to another. 3). An ill-defined problem is one that addresses complex issues and cannot be expressed easily or completely. a. Ill-defined problems pose a dilemma for researchers because a solution sequence cannot be plotted if little is understood about the path or the final outcome. E. Politically Motivated Research. 1). The basis of a research request may be because it is a managers pet project. 2). Research could be authorized by a manager to protect that managers case should he or she be criticized later. CHAPTER 5 Clarifying the Research Question through Secondary Data and Exploration CHAPTER OUTLINE 1. A SEARCH STRATEGY FOR EXPLORATION A. Exploration is particularly useful when researchers lack a clear idea of the problems they will meet during the study.

1). Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions, and improve the final research design. a. Exploration may save time and money. b. Exploration is needed when studying new phenomena or situations. c. Exploration is often, however, given less attention than it deserves. 2). The exploratory phase search strategy usually comprises one or more of the following: a. Discovery analysis of secondary sources such as published studies, document analysis, and retrieval of information from organizations' databases. b. Interviews with those knowledgeable about the problem or its possible solutions (called expert interviews). c. Interviews with individuals involved with the problem (called individual depth interviews (IDIs)a type of interview that encourages the participant to talk extensively, sharing as much information as possible). d. Group discussion with individuals involved with the problem or its possible solutions (including informal groups, as well as formal techniques such as focus groups or brainstorming). 3). Most researchers find a review of secondary sources critical to moving from management question to research question. 4). In the exploratory research (e.g., research to expand understanding of an issue, problem, or topic) phase of a project, the objective might be to accomplish the following: a. Expand your understanding of the management dilemma by looking for ways others have addressed and/or solved problems similar to your management dilemma or management question. b. Gather background information on your topic to refine the research question. c. Identify information that should be gathered to formulate investigative questions. d. Identify sources for and actual questions that might be used as measurement questions. e. Identify sources for and actual sample frames (lists of potential participants) that might be used in sample design. 5). In most cases, the exploration phase will begin with a literature searcha review of books, articles, research studies, or Web-published materials related to the proposed study. 6). In general, a literature search has five steps: a. Define your management dilemma or management question. b. Consult encyclopedias, dictionaries, handbooks, and textbooks to identify key terms, people, or events relevant to the management dilemma or management question. c. Apply these key terms, names of people, or events in searching indexes,

bibliographies, and the Web to identify specific secondary sources. d. Locate and review specific secondary sources for relevance to your management dilemma. e. Evaluate the value of each source and its content. 7). Often the literature search leads to the research proposal. a. This proposal covers at minimum a statement of the research question and a brief description of the proposed research methodology. b. The proposal summarizes the findings of the exploratory phase of the research, usually with a bibliography of secondary sources that have led to the decision to propose a formal research study. B. Levels of Information. 1). Information sources are generally categorized into three levels: a. Primary sources. b. Secondary sources. c. Tertiary sources. 2). Primary sources are original works of research or raw data without interpretation or pronouncements that represent an official opinion or position. a. Primary sources are always the most authoritative because the information has not bee filtered or interpreted by a second party. 3). Secondary sources are interpretations of primary data. a. Nearly all reference materials fall into this category. b. A firm searching for secondary sources can search either internally or externally. 4). Tertiary sources are aids to discover primary or secondary sources or an interpretation of a secondary source. a. These sources are generally represented by indexes, bibliographies, or Internet search engines. 5). It is important to remember that all information is not of equal value. a. Primary sources are the most valuable. C. Types of Information Sources. 1). Indexes and Bibliographies. a. An index is a secondary data source that helps identify and locate a single book, journal article, author, et cetera, from among a large set. b. A bibliography is an information source that helps locate a single book, article, photograph, et cetera. c. Today, the most important bibliography in any library is its online catalog. d. Skill in searching bibliographic databases is essential for any marketing researcher. 2). Dictionaries. a. Dictionaries are secondary sources that define works, terms or jargon unique to a discipline; may include information on people, events, or

organizations that shape the discipline; an excellent source of acronyms. b. There are many specialized dictionaries that are field specific (e.g., medical dictionaries). c. A growing number of dictionaries are found on the Web. 3). Encyclopedias. a. An encyclopedia is a secondary source that provides background or historical information on a topic. b. In addition to finding facts, encyclopedias are useful in identifying experts in a field or in finding key writings on any topic. 4). Handbooks. a. A handbook is a secondary source used to identify key terms, people, or events relevant to the management dilemma or management question. b. Handbooks often include statistics, directory information, a glossary of terms, and other data such as laws and regulations essential to a field. c. The best handbooks include source references for the facts they present. d. One of the most important handbooks for business-to-business marketing is the North American Industry Classification System, United States (NAICS). 5). Directories. a. A directory is a reference source used to identify contact information. b. Today, many directories are available at no charge via the Internet. c. Most comprehensive directories are proprietary. D. Evaluating Information Sources. 1). A researcher using secondary sources will want to conduct a source evaluationthe five factor process for evaluating a secondary source. 2). Marketers should evaluate and select information sources based on five factors that can be applied to any type of source, whether printed or electronic. These are: a. Purposethe explicit or hidden agenda of the information source. b. Scopethe breadth and depth of topic coverage, including time period, geographic limitations, and the criteria for information inclusion. c. Authoritythe level of the data (primary, secondary, tertiary) and the credentials of the source author(s). d. Audiencethe characteristics and background of the people or groups for whom the source was created. e. Formathow the information is presented and the degree of ease of locating specific information within the source. 3). The purpose of early exploration is to help the researcher understand the management dilemma and develop the management question. a. Later stages of exploration are designed to develop the research question and ultimately the investigative and measurement questions. 2. THE QUESTION HIERARCHY: HOW AMBIGUOUS QUESTIONS BECOME

ACTIONABLE RESEARCH A. The process we call the management-research question hierarchy is designed to move the researcher through various levels of questions, each with a specific function within the overall marketing research process. B. The Management Question. 1). The management question is seen as the management dilemma restated in question format. a. The management questions that evolve from the management dilemma are too numerous to list; however, they are categorized in Exhibit 5-7. 2). Exploration. a. Note that the exploration stage is exemplified with an illustration that describes how BankChoice goes through the exploration process. b. BankChoice ultimately decides to conduct a survey of local residents. 1). The process would most likely begin with an exploration of books periodicals. 2). Once researchers become familiar with literature, interviews with experts in the field would occur. c. An unstructured exploration allows the researcher to develop and revise the management question and determine what is needed to secure answers to the proposed question. C. The Research Question. 1). A research question(s) is the objective of the research study. a. It is a more specific management question that must be answered. b. Incorrectly defining the research question is the fundamental weakness in the marketing research process. c. As stated by Peter Drucker, The most serious mistakes are not being made as a result of wrong answers. The truly dangerous thing is asking the wrong questions. 2). Fine-Tuning the Research Question. a. Fine-tuning the question is precisely what a skillful practitioner must do after the exploration is complete. b. At this point the research project begins to crystallize in one of two ways: 1). It is apparent the question has been answered and the process is finished. 2). A question different from the one originally addressed has appeared. c. Other research-related activities that should be addressed at this stage are: 1). Examine the variables to be studied. 2). Review the research questions with the intent of breaking them down into specific second-and third-level questions. 3). If hypotheses (tentative explanations) are used, be certain they meet the quality test mentioned in Chapter 3. 4). Determine what evidence must be collected to answer the various questions and hypotheses. 5). Set the scope of the study by stating what is not a part of the research

question. a). This will establish a boundary to separate contiguous problems from the primary objective. D. Investigative Questions. 1). Investigative questions are questions the researcher must answer to satisfactorily arrive at a conclusion about the research question. 2). Typical investigative question areas include: a. Performance considerations. b. Attitudinal issues (like perceived quality). c. Behavioral issues. E. Measurement Questions. 1). Measurement questions are the questions asked of participants or the observations that must be recorded. 2). Measurement questions should be outlined by the completion of the project planning activities but usually await pilot testing for refinement. 3). Two types of measurement questions are common in marketing research: a. Predesigned, pretested questions. b. Custom-designed questions. 4). Predesigned measurement questions are questions that have been formulated and tested previously by other researchers. a. Such questions provide enhancement validity and can reduce the cost of the project. 5). Custom-designed measurement questions are questions formulated specifically for the project at hand. a. These questions are collective insights from all the activities in the marketing research process completed to this point, particularly insights from exploration. CHAPTER 6 The Marketing Research Request and Proposal Process CHAPTER OUTLINE 1. PROPOSING RESEARCH A. The more inexperienced a researcher is, the more important it is to have a well-planned and adequately documented proposal. B. Marketing research uses two primary documents: 1). Request for proposal (RFP). 2). Research proposal.

C. Companies are often faced by research situations or tasks that cannot be accomplished internally. 1). Research suppliers are used to supplement internal research components. 2). Research suppliers include such entities as: a. Marketing and business research specialists. b. Universities. c. Research centers. d. Consulting firms. 2. THE REQUEST FOR PROPOSAL (RFP) A. The request for proposal (RFP) is the formal bid request for research to be done by an outside supplier of research services. 1). Developing a well-written RFP takes time and planning. 2). In addition to providing the formal documentation process for research, RFPs provide a chance to evaluate different solutions and offer the means of establishing, monitoring, and controlling the performance of the winning supplier. 3). The marketing researcher invites a qualified supplier to submit a proposal in accordance with a specific, detailed formatdelivered by a deadline. 4). Market researchers consider the RFPs an important source of future business. a. Companies sometimes avoid the formal RFP as a means of contacting suppliers and prefer to do so directly. b. Not all projects are conducive to the RFP process. B. Creating the RFP. 1). The first step is to define and understand fully the problem being addressed. a. In formal RFP processes, internal experts define the problem. b. Experts can be retained to assist in this process. c). Once the problem is defined, the technical section of the RFP can be written. d). Besides defining the technical requirements of the desired research, critical components of the RFP include project management, pricing, and contract administration. 1]. Most companies add a proposal administration section that includes important dates. e). An important activity that precedes this is qualifying the potential suppliers. f). Sponsors must determine which vendors have the capability to complete the project on time. g). The general components of a RFP are: 1]. Proposal administration information. 2]. Summary statement of the problem. 3]. Technical section. 4]. Management section. 5]. Contracts and license section. 6]. Pricing section.

2). Proposal Administration. a. This section is an overview of important information on the administration of the project itself. b. It establishes the dates of the RFP processwhen the RFP is released, when the RFP team is available for questions, the date the proposal is expected, and the dates of the evaluation and supplier selections. 1]. It includes all requirements for preparing the proposal and describes how proposals will be evaluated. 3). Summary Statement of the Problem. a. A summary statement can be an abstract of the technical section, or it can be included as the first page of the technical section. b. It often takes the form of a letter introducing the organization that issued the RFP and explaining its needs. 4). Technical Section. a. Technical information needed by the supplier to create the proposal is presented in this section. b. It begins by describing the problem(s) to be addressed and the technical details of each requirement. c. It loosely describes the services to be performed and the equipment, software, and documentation required. d. To allow for flexibility and creativity, it should be somewhat loose. e. Typically, the technical section includes: 1]. Problem statement. 2]. Description of functional requirements (what actual phases will be included in the research). 3]. Identification of constraints (what might limit research design creativity). f. Strategies for dealing with constraints include specifying what is anticipated. 5). Management Section. a. Each project requires some level of management. b. The sponsors timing on schedules, plans, and reports are included in this section. c. The management section lists the requirements for implementation schedules, training and reporting schedules, quality control, and other documentation. 1]. Some companies now provide detailed documentation Web sites to provide additional information for those that submit proposals. 6). Contracts and License Section. a. The types of contracts the supplier is expected to sign and any nondisclosure agreements are included in this section. b. Safeguarding intellectual property rights and copyrights are discussed. c. Terms of payment and benchmarks are set forth.

d. Contracts should be simple to interpret and not open to question. 7). Pricing Section. a. To cost the proposal, all information needed by the supplier must be provided. b. Ethical standards are integral to designing the pricing section. 8). Format. a. The format requirements for RFPs differ widely. b. Use a checklist to qualify suppliers. c. Most sponsors have a bidding preparation period of eight to ten weeks before the submission deadline. d. A well-written RFP allows an organization to request high-quality proposals for dealing with complex problems. e. Other request information forms include: 1]. Request for information (RFI)lets a supplier know you are gathering information but are not prepared to purchase a good or service. 2]. Request for recommendation (RFR)an alternative that many firms prefer (it asks for recommendations only). 3]. Request for application (RFA)provides organizational context so that the supplier can address the problem with more insight and propose solutions that will be compatible with the organizations culture and business strategy. 3. THE RESEARCH PROPOSAL A. A proposal is a work plan, prospectus, outline, statement of intent, or draft plan for a research project, including a proposed budget. 1). The purpose of the research proposal is: a. To present the management question to be researched and relate its importance. b. To discuss the research efforts of others who have worked on related questions. c. To suggest the data necessary for solving the managements question and suggest how the data will be gathered, treated, and interpreted. 2). In addition, the research proposal must present the researchers plan, services, and credentials in the best possible way to encourage the proposals selection over competitors. 3). The research proposal is essentially a road map that leads to a successful completion of the project. B. Sponsor Uses. 1). All research has a sponsor in one form or another. 2). A research proposal allows the sponsor to assess the sincerity of the researchers purpose, the clarity of his or her design, the extent of his or her relevant background material, and the researchers fitness for undertaking

the project. 3). Comparison of the research project results with the proposal is a first step in the process of evaluating the overall research. a. Another benefit of the proposal is the discipline it brings to the sponsor. 4). For an outside research contract, proposals are usually submitted in response to an RFP. C. Researcher Benefits. 1). A proposal is even more beneficial for the researcher than the sponsor. 2). The process of writing a proposal encourages the researcher to plan and review the projects logical steps. a. Flaws in logic can be spotted. 3). The in-house or contract researcher uses the approved research proposal as a guide throughout the investigation. a. To make a profit the researcher must correctly estimate costs and price the project appropriately being mindful of the bidding process in which the competition is held. b. In-house researchers must also live within a budget. 4). Having a schedule assists the organization in moving forward toward its research objective(s). D. Types of Research Proposals. 1). In general, research proposals are: a. Internal proposalsdone by staff specialists or by the research department within the firm. b. External proposalssponsored by external entities and can be solicited or unsolicited. 2). Public sector proposals are usually more complex than private sector proposals. 3). There are three general levels of complexity: a. Exploratory studies. b. Small-scale studies. c. Large-scale studies. 4). The chapter presents a series of modules for building a research proposal. 5). Internal Proposals. a. Internal proposals are more succinct than external ones. 1]. Internal proposals can be as simple as a three-page memo outlining a research project. 2]. Literature review and bibliography are not stressed in the internal proposal. 3]. Schedules and budgets are necessary for funds to be committed. 6). External Proposals. a. An external proposal is either solicited or unsolicited. 1]. A solicited proposal is often in response to an RFP. 2]. An unsolicited proposal is a suggestion by a contract researcher for

research that might be done. a). These proposals are often time sensitive. b). The most important sections of the external proposal are the objectives, design, qualifications, schedule, and budget. 1]. As complexity of the project increases, so does the information necessary for the proposal. 2]. To ignore or not meet any specification is to automatically disqualify your proposal as nonresponsive. E. Structuring the Research Proposal. 1). Executive Summary. a. The executive summary (proposal) is an informative abstract providing the essentials of the proposal without the details. 1]. The summary allows executives the chance to grasp the essentials of the proposal without having to read the details. 2]. The goal of the summary (proposal) is to secure a positive evaluation by the executive who will pass the proposal on to the staff for a full evaluation. 2). Problem Statement. a. This section needs to convince the sponsor to continue reading the proposal. b. This section should state the management dilemma, its background, its consequences, and the resulting management question. c. Any restrictions or areas of the management question that will not be addressed should be stated. 3). Research Objectives. a. This module addresses the purpose of the investigation. b. Lay out exactly what is being planned by the proposed research. c. The objectives module flows naturally from the problem statement, giving the sponsor specific, concrete, and achievable goals. d. The research question(s) (or hypotheses) should be separated from the flow of the text for quick identification. 4). Literature Review. a. The literature review is an examination of recent or historically significant research studies, company data, or industry reports that act as the basis for the proposed study. b. Do a brief review of the information, not a comprehensive report. c. Gaps or shortcomings in secondary literature should be stated and perhaps addressed if it is germane to the research effort. d. Close the literature review section by summarizing the important aspects of the literature and interpreting them in terms of the research problem. 5). Importance/Benefits of the Study. a. The importance of doing the study now should be emphasized. b. This section is normally only a few paragraphs. c. This section requires that the researcher understand what is most troubling to the sponsor of the research effort.

d. This section is particularly important to the unsolicited external proposal. 6). Research Design. a. The design module describes what the researcher is going to do in technical terms. b. Phases of the project should be shown. c. Some of the areas included in this section would be the proposed design for tasks such as sample selection and size, data collection method, instrumentation, procedures, and ethical requirements. 7). Data Analysis. a. A brief section on the methods used for analyzing the data is appropriate for large-scale contract research projects and doctoral theses. b. With smaller projects, the proposed data analysis would be included within the research design section. c. This is often a difficult and time-consuming section to write. 1]. The job will be made easier if sample tables and charts are included for review. d. This section is so important that the sponsor may wish to consult experts when evaluating this section. 8). Nature and Form of Results. a. Upon finishing this section, the sponsor should be able to go back to the statement of the management question and research objectives and discover that each goal of the study has been covered. b. Each type of data to be obtained and the interpretations that will be made in the analysis should be specified in this section. c. This section also contains the contractual statement telling the sponsor exactly what types of information will be received. 9). Qualifications of Researchers. a. This section should begin with information on the principal investigator and then provide similar information on all individuals involved with the project. b. Two elements are critical: 1]. Professional research competence. 2]. Relevant management experience. c. If subcontractors are used, specifications must detail the qualifications of these entities as well. 10). Budget. a. The budget should be presented in the form the sponsor requests. b. Typically, the budget should be no more than one or two pages. c. The budget statement for an internal research proposal is based on employee and overhead costs. d. The budget section of an external research contractors proposal states the total fee payable for the assignment. 1]. Retain all information used to generate the budget for future reference. 11). Schedule. a. The schedule should include major phases of the project, their timetables, and the milestones that signify completion of a phase.

b. Examples of major phases include: 1]. Exploratory interviews. 2]. Final research proposal. 3]. Questionnaire revision. 4]. Field interviews. 5]. Editing and coding. 6]. Data analysis. 7]. Report generation. c. Charting the schedule can be of assistance in accurate planning. d. Critical path method (CPM) is a scheduling tool for complex or large research proposals that cites milestones and time involved between milestones. e. Software programs designed for project management simplify scheduling and charting the schedule. 12). Facilities and Special Resources. a. Often, projects will require special facilities or resources that should be described in detail. b. The costs for such facilities use should be detailed in the budget. 13). Project Management. a. Project management is the process of planning and managing a detailed project, through tables and charts that detail responsibilities and deadlines. b. The plan generally includes: 1]. The research teams organization. 2]. Management procedures and controls for executing the research plan. 3]. Examples of management and technical reports. 4]. The research teams relationship with the sponsor. 5]. Financial and legal responsibility. 6]. Management competence. c. Tables and charts are most helpful in presenting the master plan. d. Progress reports should be made periodically. e. Proof of financial responsibility and overall management competence is provided in this section. 14). Bibliography. 15). Appendices. a. Glossary. b. Measurement Instrument. 1]. Include samples of measurement instruments. c. Other. F. Evaluating the Research Proposal. 1). Proposals are subject to formal or informal reviews a. Formal reviews typically include: 1]. Development of review criteria, using RFP guidelines. 2]. Assignment of points to each criterion, using a universal scale.

3]. Assignment of a weight for each criterion, based on importance of each criterion. 4]. Generation of a score for each proposal, representing the sum of all weighted criterion scores. 2). Several people may be involved in the review process. 3). Factors that improve the sponsors reception of the proposal are: a. Neatness. b. Organization. c. Completeness. d. Appropriateness of writing style. e. Submission within the RFPs timeline. CHAPTER 7 Ethics in Marketing Research CHAPTER OUTLINE 1. WHAT ARE RESEARCH ETHICS? A. Ethics are norms or standards of behavior that guide moral choices about research behavior. 1). The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences from research activities. 2). Legal constraints are the minimum standard for ethical behavior in research, not the ideal standard. 3). There is no single approach to ethics. a. One approach, deontology, advocates that ethical behavior should be directed by duties regardless of the positive consequences that might result from behavior that is in contradiction to the duty. 1]. Advocating strict adherence to a set of laws or duties is difficult because of the unforeseen constraint put on researchers. b. Another approach is ethical relativism (relying on each individuals sense of morality). c. A middle ground is advocated for marketing researchers. 4). The Marketing Research Association has a 48-page Code of Marketing Research Standards. a. Other standards are presented by the Council for American Survey Research (CASRO) and the American Marketing Association (AMA). 2. ETHICAL TREATMENT OF PARTICIPANTS A. When ethics are discussed in research design, we often think first about protecting the rights of the participant, respondent, or subject.

1). In general, research must be designed so that a participant does not suffer physical harm, discomfort, pain, embarrassment, or loss of privacy. 2). As safeguards, the researcher should follow these three guidelines: a. Explain the study benefits. b. Explain participant rights and protections. c. Obtain informed consent. B. Benefits. 1). Whenever direct contact is made with a participant, the researcher should discuss the studys benefits, being careful to neither overstate nor understate the benefits. 2). In short, knowing why one is being asked questions improves cooperation through honest disclosure of purpose. 3). It is sometimes necessary to conceal the benefits or actual purpose of the study to avoid introducing bias. a. The need for concealing objectives leads directly to the problem of deception. C. Deception. 1). Deception occurs when truth is compromised to prevent biasing participants or protect sponsor confidentiality. 2). One form of deception is disguising nonresearch activities as opinion or marketing research. a. Researchers abhor this type of deception as it undermines the professionalism of the industry and increases research refusal rates. 3). Another type of deception is considered appropriately research designbased by many in the industry. a. It involves camouflaging true research objectives or the identity of the sponsor. b. Reasons for this type of deception are: 1]. To prevent biasing the respondents before the survey, observation exercise, or experiment. 2]. To protect the confidentiality of a third party (e.g., the sponsor). 4). It is generally accepted in the industry that research design-based deception should not occur. a. Deception used only to improve participation rates should not be used. D. Informed Consent. 1). Informed consent means that each participant gives full consent to participation after receiving full disclosure of the procedures of the proposed study. a. Some argue that a signed consent form is preferable and is the correct method to use when dealing with children. 2). Federal, state, and local governments have laws, policies, and procedures in place to regulate research on human beings. 3). Many government agencies have Institutional Review Boards (IRBs) to review

the use of or questioning of human subjects (when government funds are used). 4). IRBs concentrate on two areas: a. The guarantee of obtaining complete, informed consent from participants. Informed consent has four characteristics: 1]. The participant must be competent to give consent. 2]. Consent must be voluntary, free from coercion, force, requirements, and so forth. 3]. Participants must be adequately informed to make a decision. 4]. Participants should know the possible risks or outcomes associated with the research. b. Risk assessment and benefit analysis review. 1]. Risks are considered when they add to the normal risk of daily life. E. Debriefing Participants. 1). In situations where participants are intentionally or accidentally deceived, they should be debriefed once the research is complete. 2). Debriefing involves several activities following the collection of data: a. Explanation of any deception. b. Description of the hypothesis, goal, or purpose of the study. c. Poststudy sharing of results. d. Poststudy follow-up medical or psychological attention. 3). The researcher shares the truth of any deception with the participants and the reasons for using deception in the context of the studys goals. 4). Even when research does not deceive the participants, it is a good practice to offer them follow-up information: a. For surveys and interviews, participants can be offered a brief report of the findings. b. For experiments, all participants should be debriefed in order to put the experiment into context. 5). Research suggests that participants do not resent temporary deception and may have more positive feelings about the value of research after debriefing. F. Right to Privacy. 1). All individuals have a right to privacy, and researchers must respect that right. 2). U.S. federal legislation that governs or influences the ways in which research is carried out are the Right to Privacy laws. 3). These laws focus on privacy and protection for children (especially online) as research subjects. 4). A privacy guarantee is important not only to retain validity of the research but also to protect participants. 5). Some unethical marketers still think research is a legitimate avenue to build a list of sales leads (e.g., called suggingsales under the guise of research). 6). Once the guarantee of confidentiality (a privacy guarantee to retain validity of the research and protect participants) is given, protecting that confidentiality is essential. 7). The researcher protects participant confidentiality in several ways:

a. b. c. d. e.

Obtaining signed nondisclosure documents. Restricting access to participant identification. Revealing participant information only with written consent. Restricting access to data instruments where the participant is identified. Nondisclosure of data subsets.

8). Researchers should restrict access to information that reveals names, telephone numbers, addresses, or other identifying features. 9). Privacy is more than confidentiality. a. A right to privacy means the participant has the right to refuse to be interviewed or answer specific questions in an interview. b. They have the right to privacy in their own homes. c. They have the right to engage in private behavior in private places without fear of observation. 10). To address the above rights, ethical researchers do the following: a. Inform participants of their right to refuse to answer any question or participate in the study, to give the participants control of their levels of privacy. b. Obtain prior permission to interview or observe participants. c. Limit the time required for participation, to limit the amount of information collected to only that which is deemed critical. G. Data Collection in Cyberspace. 1). Some ethicists argue that the very conduct that results in resistance from participants has encouraged researchers to investigate topics online that have long been the principal commodity of offline investigation. 2). The growth of cyberstudies causes us to question how we gather data online, deal with participants, and present results. 3). Issues relating to cyberspace in research also relate to data mining. 4). Data Mining Ethics. a. The primary ethical data mining issues in cyberspace are privacy-related: 1]. Consent to information collection. 2]. Control of information dissemination. b. Smart cards offer the researcher implied consent to participant surveillance. c. Whether consent is willingly or hesitantly given, most participants want assurances that the information provided will be used by the organization for the purposes specified and not given or sold to other firms for entirely different purposes. 5). European Union. a. General privacy laws may not be sufficient to protect the unsuspecting in the cyberspace realm of data collection. b. The European Union (EU) countries started the new century by passing the European Commissions data protection directive. 1]. Under this directive, commissioners can prosecute companies and

block Web sites that fail to live up to its strict privacy standards. c. The EU insists that it is the right of every citizen to find out what information about them is in a database and correct any mistakes. 3. ETHICS AND THE SPONSOR A. Whether undertaking product, market, or other marketing research, a sponsor has the right to receive ethically conducted research. B. Confidentiality. 1). Some sponsors wish to undertake research without revealing themselves. 2). Several types of confidentiality are available for sponsors: a. Sponsor nondisclosurewhen the sponsor of the research restricts revealing of its sponsorship (often done when testing new products where image issues may be of importance). b. Purpose nondisclosurewhen the sponsor camouflages the true research objective of the study (such as investigating customer complaints without wishing to have legal mechanisms activated). c. Findings nondisclosurewhen the sponsor restricts the researcher from discussing the findings of the research project (unapproved parties are restricted from information gathered by the project). C. Right to Quality Research. 1). An important ethical consideration for the researcher and the sponsor is the sponsors right to quality research. This right equals: a. Providing a research design appropriate for the research question. b. Maximizing the sponsors value for the resources expended. c. Providing data handling and reporting techniques appropriate for the data collected. 2). From the proposal through the design to data analysis and final reporting, the researcher guides the sponsor on the proper techniques and interpretations. 3). It is the researchers responsibility to prevent statistically distorted information. D. Design-Based Ethical Issues. 1). Occasionally, research specialists may be asked by sponsors to participate in unethical behavior. 2). Examples of such behavior would include: a. Violating participant confidentiality. b. Changing data or creating false data to meet a desired objective. c. Changing data presentations or interpretations. d. Interpreting data from a biased perspective. e. Omitting sections of data analysis and conclusions. f. Making recommendations beyond the scope of the data collected. 3). Sponsors may coerce through: a. Promise of punishment. b. Promise of reward.

c. Promise of future business. 4). Researcher recourse when confronting a sponsors demand for taking the unethical path: a. Educate the sponsor to the purpose of research. b. Explain the researchers role in fact finding versus the sponsors role in decision making. c. Explain how distorting the truth or breaking faith with participants leads to future problems. d. Failing moral suasion, terminate the relationship with the sponsor. E. Deception. 1). A sponsor behaves unethically when: a. It issues an RFP after it has already determined a research supplier. b. When it intends to conduct the research itself and issues a request only to obtain free research advice. 4. RESEARCHERS AND TEAM MEMBERS A. Safety. 1). The right to safety is the right of interviewers, surveyors, experimenters, observers, and participants to be protected from any threat of physical or psychological harm. a. Certain urban areas are unsafe for conducting research. 2). Researchers who are insensitive to safety concerns face both research and legal risksthe least of which involves interviewers falsifying data. B. Ethical Behavior of Assistants or Subcontractors. 1). Researchers should require ethical compliance from team members just as sponsors expect ethical behavior from researchers. 2). The behavior of the assistants is under the direct control of the responsible researcher or field supervisor. C. Protection of Anonymity. 1). Each researcher handling data should be required to sign a confidentiality and nondisclosure statement. 5. PROFESSIONAL STANDARDS A. Many corporations, professional associations, and universities have a code of ethicsan organizations codified set of norms or standards of behavior that guide moral choices about research behavior. 1). The impetus for these policies and standards can be traced to: a. The Belmont Report of 1979. b. The Federal Register of 1991. 2). There are currently some 51 official codes of ethics issued by 45 associations in business, health, and law.

3). Other professional association codes have detailed research sections. 4). Effective codes are: a. Regulative. b. Protect the public interest and the interests of the profession served. c. Behavior-specific. d. Enforceable. 6. RESOURCES FOR ETHICAL AWARENESS A. There is optimism that ethical behavior is embraced by corporate and private America. 1). One-third of the Fortune 500 companies have ethics officers. 2). 90 percent of business schools have ethics programs. CHAPTER 8 Research Design: An Overview 1. A research design is the strategy for a study and the path by which the strategy is to be carried out. It specifies the methods and procedures for the collection, measurement, and analysis of data. Some major descriptors of designs are: Exploratory versus formalized. Observational versus interrogation/communication. Experimental versus ex post facto. Descriptive versus causal. Cross-sectional versus longitudinal. Case versus statistical. Field versus laboratory versus simulation. Subjects perceptions: no deviation, some deviations, or researcher-induced deviations. 2. Exploratory research is appropriate for the total study in topic areas where the developed data are limited. In most other studies, exploration is the first stage of a project and is used to orient the researcher and the study. The objective of exploration is the development of hypotheses, not testing. Formalized studies, including descriptive and causal, are those with substantial structure, specific hypotheses to be tested, or research structure, specific hypotheses to be tested, or research questions to be answered. Descriptive studies are those used to describe phenomena associated with a subject population or to estimate proportions of the population that have certain characteristics. Causal studies seek to discover the effect that a variable(s) has on another (or others) or why certain outcomes are obtained.

3. The relationships that occur between two variables may be symmetrical, reciprocal, or asymmetrical. Of greatest interest to the research analyst are asymmetrical relationships, which may be classified as any of the following types: Stimulus-response. Property-disposition. Disposition-behavior. Property-behavior. We test causal hypotheses by (1) measuring the covariation among variables, (2) determining the time order relationships among variables, and (3) ensuring that other factors do not confound the explanatory relationships. Where possible, we try to achieve the ideal of experimental design with random assignment of subjects, matching of subject characteristics, and manipulation and control of variables. Using these methods and techniques, we measure relationships as accurately and objectively as possible. CHAPTER OUTLINE 1. WHAT IS RESEARCH DESIGN? A. The topics covered by the term research design are wide-ranging as are the definitions of research design. 1). Research design (definition used in this text) is the blueprint for fulfilling research objectives and answering questions. 2). Components of the definition include: a. An activity and time-based plan. b. A plan always based on the research question. c. A guide for selecting sources and types of information. d. A framework for specifying the relationships among the studys variables. e. A procedural outline for every research activity. 2. CLASSIFICATION OF DESIGNS A. Early in any research study, one faces the task of selecting the specific design to use. B. Degree of Research Question Crystallization. 1). A study may be viewed as exploratory or formal. a. The essential distinctions between these two options are the degree of structure and the immediate objective of the study. b. Exploratory study (exploration) is a loosely structured study or a phase in a research project designed to expand understanding of a topic, provide insights and possible explanations, or discover future research

tasks. 1]. The immediate purpose is usually to develop hypotheses or questions for further research. c. A formal study is a research-question driven process involving precise procedures for data collection and interpretation. 1]. The formal study begins where the exploration leaves off. 2]. The goal of a formal research design is to test the hypotheses or answer the research questions posed. 2). The exploratory-formal study dichotomy recognizes that all studies have elements of exploration in them and few studies are completely uncharted. C. The Topical Scope. 1). A statistical study attempts to capture a populations characteristics by making inferences from a samples characteristics and then testing resulting hypotheses. a. Hypotheses are tested quantitatively. b. Generalizations about findings are presented based on the representativeness of the sample and the validity of the design. 2). A case study is a full contextual analysis of a few events or conditions and their interrelations. a. Although hypotheses are often used, the reliance on qualitative data makes support or rejection more difficult. b. An emphasis on detail provides valuable insight for problem solving, evaluation, and strategy. c. Case studies have been maligned as scientifically worthless because they do not meet minimal design requirements for comparison. d. Marketers do find case studies useful in explaining or debunking phenomena. D. The Purpose of the Study. 1). The essential difference between descriptive and causal studies lies in their objectives. 2). A descriptive study discovers answers to the questions who, what, when, where, or how much. 3). If the study is concerned with learning why, it is concerned with a causal studyattempts to reveal a causal relationship between variables. E. Researcher Control of Variables. 1). The researchers ability to manipulate variables is divided typically between experimental and ex post facto designs. 2). In an experiment the study involves manipulation of one or more variables to determine the effect on another variable. a. An example would be a split test wherein split mailings allow direct marketers to test different approaches to transmitting their messages to consumers. 3). With an ex post facto study (design), investigators have no control over the

variables in the sense of being able to manipulate them. a. This design is an after-the-fact report on what happened to the measured variable. b. Researchers can only report what has happened or what is happening. c. An example would be a study on retail store design. F. Method of Data Collection. 1). This classification distinguishes between monitoring and the communication process. 2). Monitoring is a study in which the researcher inspects the activities of a participant or the nature of some material without eliciting responses from the participant. a. An example would be traffic counts at an intersection. 3). In the communication study, the researcher questions the participants and collects their responses by personal or impersonal means. 4). Data from a communication study may result from: a. Interviews or telephone conversations. b. Self-administered or self-reported instruments sent through the mail, left in convenient locations, or transmitted electronically or by other means. c. Instruments presented before and/or after a treatment or stimulus condition in an experiment. G. The Time Dimension. 1). Cross-sectional studythe study is conducted only once and reveals a Snapshot of one point in time. 2). Longitudinal studya study that includes repeated measures over an extended period of time. 3). Some types of information once collected cannot be collected a second time from the same person without risk of bias. 4). While longitudinal research is important, the constraints of budget and time impose the need for cross-sectional analysis. H. The Research Environment. 1). Field conditionsthe actual environmental conditions where the dependent variable occurs. 2). Laboratory conditionsstudies that occur under conditions that do not simulate actual environmental conditions. 3). Simulationsa study in which the conditions of a system or process are replicated. I. Participants Perceptions. 1). The usefulness of a research design is reduced when people in a disguised study perceive that research is being conducted. 2). Participants perceptions influence the outcomes of the research in subtle ways. 3). There are three levels of perception to consider:

a. Participants perceive no deviations from everyday routines. b. Participants perceive deviations but see them as unrelated to the researcher. c. Participants perceive deviations as researcher-induced. 1]. An example of this approach is mystery shopping. 2]. Mystery shopping involves individuals who pose as customers and visit retail or service organizations to observe and measure specific behaviors or circumstances. a). An employee who knows that he or she is being observed is likely to alter his or her behavior accordingly.

3. EXPLORATORY STUDIES A. Exploration is particularly useful when researchers lack a clear idea of the problems they will meet during the study. 1). Through exploration researchers develop concepts more clearly, establish priorities, develop operational definitions, and improve the final research design. 2). Other reasons for exploration include: a. New areas of problems that might be previously unknown. b. To help in formulating hypotheses. 3). Exploration receives less attention than it deserves. B. Exploratory Techniques. 1). The objectives of exploration may be accomplished with qualitative and quantitative techniques. 2). Qualitative techniques (nonquantitative data collection used to increase understanding of a topic) are relied on heavily. 3). A variety of approaches are adaptable for exploratory investigations of management questions: a. Interviewing. b. Participant observing. c. Films, photographs, and videotape. d. Projective techniques and psychological testing. e. Case studies. f. Street ethnography. g. Elite or expert interviewing. h. Document analysis. i. Proxemics and kinesics. 4). An exploratory study is finished when the researchers have achieved the following: a. Established the range and scope of possible management decisions. b. Established the major dimensions of the research task. c. Defined a set of subsidiary investigative questions that can be used as

guides to a detailed research design. d. Developed several hypotheses about possible causes of a management dilemma. e. Learned that certain other hypotheses are such remote possibilities that they can be safely ignored in any subsequent study. f. Concluded additional research is not needed or is not feasible. 5). Secondary Data Analysis. a. The first step in an exploratory study is a search of secondary sources sometimes called a literature search. b. Secondary data are studies done by others and for different purposes than the one for which the data are being reviewed. c. Primary data are original research where the data being collected are designed specifically to answer the research question. d. Within secondary data exploration, a researcher should start first with an organizations own data archives. e. A second source of secondary data is published documents prepared by authors outside the sponsor organization. 6). Experience Survey. a. The experience survey is semistructured or unstructured interviews with experts on a topic or dimension of a topic. b. This may also be called the expert interview or key informant survey. c. The product of the experience survey may be a new hypothesis, the discarding of old notions, or information about the practicality of doing the study. 7). Focus Groups. a. A focus group is a discussion on a topic involving a small group of participants led by a trained moderator. b. A focus group usually contains 6-10 participants. c. One topical objective of a focus group is a new product or product concept. d. The most common application of focus group research continues to be in the consumer area. 4. DESCRIPTIVE STUDIES A. Formal studies serve a variety of research objectives: 1). Descriptions of phenomena or characteristics associated with a subject population (the who, what, when, where, and how of a topic). 2). Estimates of the frequency of appearance and the population that has these characteristics. 3). Discovery of associations among different variables. B. Correlation is the relationship by which two or more variables change together, such that systematic changes in one accompany systematic changes in the other.

1). The relationship is measured statistically with an index that represents how closely two variables covaryin unison or opposition. 2). A descriptive study may be simple or complex. 3). The simplest descriptive study concerns a question or hypothesis in which we ask or state something about the size, form, distribution, or existence of a variable. 5. CAUSAL STUDIES A. What is causation? 1). The essential element of causation (e.g., a situation where one variable leads to a specified effect on the other variable) is that some external factor produces a change in the dependent variable. 2). Since causation is difficult to prove conclusively, we create inferences and these probability statements assist in predicting what will likely happen. 3). If we consider the possible relationships that can occur between two variables, we can conclude there are three possibilities: a. Symmetrical relationshipwhen two variables vary together but without causation. b. Reciprocal relationshipwhen two variables mutually influence or reinforce each other. c. Asymmetrical relationshipwhen a change in one variable (IV) is responsible for a change in another variable (DV). 4). Independence and dependence of variables is assessed by: a. The degree to which each variable may be altered. b. The time order between the variables. 5). Four types of asymmetrical relationships are shown in Exhibit 8-3 to be: a. Stimulus-response. b. Property-Disposition. c. Disposition-Behavior. d. Property-Behavior. B. Testing Causal Hypotheses. 1). When testing causal hypotheses, we seek three types of evidence: a. Covariation between A and B. b. Time order of events moving in the hypothesized direction. c. No other possible causes of B. 2). Causation and Experimental Design. a. To be convincing, inferences from experimental designs must meet two other requirements: 1]. Controlwhen all factors but the IV are held constant and not confounded with another variable that is not part of the study.

2]. Random assignmentuses a randomized list of participants for assigning participants to test groups. b. To balance what is being studied, control groups (a group of participants that is measured but not exposed to the independent variable being studied) are used. c. Another control mechanism is matching (an equalizing process for assigning participants to experimental and control groups). d. Still other possibilities exist for confounding variables. 3). Causation and Ex Post Facto Design. a. Many research studies cannot be carried out experimentally by manipulating variables; however, we are still interested in causation. b. The ex post facto design is widely used in marketing research and often is the only approach feasible. 1). In particular, one seeks causal explanations between variables that are impossible to manipulate and subjects that usually cannot be assigned to treatment and control groups. CHAPTER 9 Qualitative Research 1. WHAT IS QUALITATIVE RESEARCH? A. Qualitative research is designed to tell the marketer how (process) and why (meaning) things happen as they do. 1). Qualitative research is interpretive techniques which seek to describe, decode, translate, and otherwise come to terms with the meaning, not the frequency, of certain phenomena. 2). Qualitative techniques are used at both the data collection and data analysis stages of a research project. 3). Qualitative research draws data from a variety of sources, including the following: a. People (individuals or groups) b. Organizations or institutions c. Texts (published, including virtual ones) d. Settings and environments (visual/sensory and virtual material) e. Objects, artifacts, media products (textual/visual/sensory and virtual material) f. Events and happenings (textual/visual/sensory and virtual material) 2. QUALITATIVE VERSUS QUANTITATIVE RESEARCH A. The Controversy 1). Qualitative tools and methodologies have historically been around longer than

quantitative tools and methodologies. 2). Many senior managers do not endorse qualitative techniques and prefer the now more popular quantitative techniques to solve business problems. a. One of the primary reasons for their preference is the inability of qualitatively collected data to be generalized to a larger population. b. However, marketers are returning to these techniques as quantitative techniques fall short of providing the insights needed to make those evermore-expensive marketing decisions. c. Marketers have found mechanisms to deal with the trustworthiness of qualitative data by means of exacting methodology. B. The Distinction 1). Quantitative research is the precise count of some behavior, knowledge, opinion or attitude. a. In marketing research, quantitative methodologies usually measure consumer behavior, opinions, and attitudes. b. Surveys are the dominant form of this research method. 2). The purpose of quantitative research is based on "researcher immersion in the phenomenon to be studied, gathering data which provide a detailed description of events, situations and interaction between people and things, [thus] providing depth and detail." a. Quantitative research is often used for theory testing. b. Qualitative research often builds theory but rarely tests it. 3). See Exhibit 9-2 for a listing of differences between qualitative and quantitative research. 4). Research sponsors are often more involved in qualitative research efforts. 5). One objective of quantitative research is the quantitative tally of participant responses (called frequency of response). a. Qualitative data is all about texts where detailed descriptions of events, situations, and interactions constitute the data. b. Though computers are useful, at the heart of a qualitative research effort is the researcher who frames and interprets the data. 6). Qualitative research uses smaller sample sizes. a. Data can also be gathered and processed quickly. 7). Quantitative research has an additional difficulty in that competitors often know and can even observe what is going on. 3. THE PROCESS OF QUALITATIVE RESEARCH A. The process of developing a qualitative project is similar to the research process used for quantitative research. 1). Distinctions are: a. The level of question development in the management-research question hierarchy prior to the commencing of qualitative research.

b. The preparation of the participant prior to the research experience. c. The nature and level of data that come from the debriefing of interviewers or observers. 2). The qualitative researcher starts with an understanding of the marketers problem, but the management-research question hierarchy is rarely developed prior to the design of research methodology. a. Rather, the research is guided by a broader question more similar in structure to the management question. 3). Much of qualitative research involves the deliberate preparation of the participant, called preexercises or pretasking (e.g., exercises to prepare participants for individual or group interviews on a topic). a. This step is important due the desire to extract detail and meaning from the participant. b. Illustrations include: 1]. Placing the product or medium for in-home use. 2]. Having participants bring visual stimuli. 3]. Having the participants prepare a visual collage. 4]. Having participants keep detailed diaries of behavior or perceptions. 5]. Having the participants draw a picture of an experience. 6]. Having the participants write a dialog of a hypothetical experience. c. Pretasking is rarely used in observation studies and is considered a major source of error in quantitative studies. d. Data from researchers themselves is often used in qualitative studies; the opposite is true in the case of quantitative studies. 4. QUALITATIVE RESEARCH METHODOLOGIES A. The researcher chooses a qualitative methodology based on: 1). The projects purpose. 2). The projects schedule, including the speed with which insights are needed. 3). The projects budget. 4). The projects issue(s) or topic(s) being studied. 5). The types of participants needed. 6). The researchers skill, personality, and preferences. B. Sampling. 1). Sample sizes for qualitative research vary by technique but are generally small. 2). Qualitative research involves nonprobability sampling (e.g., selection of research participants where no attempt is made to generate a statistically representative sample). Types include: a. Purposive samplingresearchers choose participants arbitrarily for their unique characteristics or their experiences, attitudes, or perceptions; as conceptual or theoretical categories of participants develop during the interviewing process, researchers seek new participants to challenge emerging patterns. b. Snowball samplingparticipants refer researchers to others who have

characteristics, experiences, or attitudes similar to or different from their own. c. Convenience samplingresearchers select any readily available individuals as participants. C. Interviews. 1). The interview is the primary data collection technique for gathering data in qualitative methodologies. 2). Interviews vary based on: a. The number of people involved during the interview. b. The proximity of the interviewer to the participant. c. The number of interviews conducted during the research. 3). The unstructured interview is a customized IDI that starts with a participant narrative, with no specific questions or order of topics. 4). The semistructured interview is where participants are asked specific questions as well as probes of tangents revealed by their answers. 5). The structured interview is with IDI using a detailed interview guide for question order but using open-ended questions. a. This form of interview permits more direct comparability of responses. b. Question variability has been eliminated and thus answer variability is assumed to be real. c. The interviewers neutrality has been maintained. 6). Unstructured or semistructured interviewing is distinct from structured interviewing in the following ways: a. Rely on developing a dialog between interviewer and participant. b. Require more interviewer creativity. c. Use the skill of the interviewer to extract more and a greater variety of data. d. Use interviewer experience and skill to achieve greater clarity and elaboration of answers. 7). Projective Techniques. a. Projective techniques are qualitative methods that encourage the participant to reveal hidden or suppressed attitudes, ideas, emotions, and motives. b. Projective techniques include: 1]. Word or picture association. 2]. Sentence completion. 3]. Cartoons or empty balloons. 4]. Thematic Appreciation Test. 5]. Imagination exercises. 6]. Imaginary Universe. 7]. Visitor from another planet. 8]. Personification. 9]. Authority figure. 10]. Ambiguities and paradoxes.

11]. Component sorts. 12]. Sensory sorts. 13]. Semantic mapping. 14]. Brand mapping. 15]. Laddering or benefit chains. c. Projective techniques can dissipate tension caused by sensitive topics or can be useful when a change of focus in the interview in imminent. 8). Interviewer Qualifications. a. Interviewing requires a trained interviewer (often called a moderatora trained interviewer used for group interviews such as focus groups) or the skills gained from experience. b. In qualitative research the interviewer need a fuller understanding of the marketers dilemma and how the insights will be used. c. The actual interviewer is usually responsible for generating the interviewer or discussion guidethe list of topics to be discussed (unstructured interview) or the questions to be asked (semistructured) and in what order (structured). d. Recruitment screenersemistructured or structured interview guide designed to assure the interviewer that the prospect will be a good participant for the planned qualitative research. e. The interviewer is a consultant with wide-ranging responsibilities. 1]. Recommends the topics and questions. 2]. Controls the interview and plans. 3]. Proposes the criteria for drawing the sample participants. 4]. Writes the recruitment screener and may recruit participants. 5]. Develops the various pretasking exercises. 6]. Prepares any research tools to be used during the interview. 7]. Supervises the transcription process. 8]. Helps analyze the data and draw insights. 9]. Writes or directs the writing of the client report, including extracting video clips for the oral report. D. Individual Depth Interviews. 1). Individual depth interviews (IDI) are an exercise, one-on-one, objectivedriven, orchestrated conversation between researcher and participant. a. Usually take between 20 minutes to 2 hours to complete. b. Computer-assisted personal interviews (CAPIs) are IDIs using detailed computer-generated visual and auditory aids. 2). Managing the Individual Depth Interview. a. Participants for individual depth interviews are usually chosen because their experiences and attitudes will reflect the full scope of the issue under study. b. An illustration is Primary Insights, Inc.s CUE that helps researchers understand the performance cues that consumers use to judge a product.

c. Individual depth interviews are usually recorded and transcribed to provide the researcher with the rich detail that the methodology is used for. 1]. Interviewers themselves are debriefed. E. Group Interviews. 1). In a group interview a single interviewer simultaneously interviews more than one research participant. a. Group interviews can be described by the groups size or its composition. Types can be classed as: 1]. Dyads (2 people). 2]. Triads (3 people). 3]. Mini-groups (2-6 people). 4]. Small groups (e.g., focus groups6-10 people). 5]. Super groups (up to 20 people). 2). In terms of composition, groups can be: a. Heterogeneous groupparticipant group consisting of individuals with a variety of opinions, backgrounds, and actions relative to a topic. b. Homogeneous groupparticipant group consisting of individuals with similar opinions, backgrounds, and actions relative to a topic. c. Expert groupgroup consisting of individuals exceptionally knowledgeable on a particular topic or issue. d. Nonexpert groupparticipants in a group interview with some unknown level of information about a topic. 3). Driven by the belief that the data extracted will be richer because of the interaction, group interviews are one of the few research techniques in which the participants are encouraged to interact. 4). Technique drawbacks are: a. Limited time to extract detail from each participant. b. Difficulty in recruiting, arranging, and coordinating group sessions. c. Difficulty in keeping the interviewer separate from the interaction process to avoid bias while still using the interviewer to maintain control. 5). The skilled researcher helps the sponsor determine an appropriate number of group interviews to conduct. The number of groups is determined by: a. The scope of the issue being studied. b. The number of distinct market segments of interest. c. The number of new ideas or insights desired. d. The level of detail information. e. The level of geographic or ethnic distinctions in attitudes or behavior. f. The homogeneity of the groups. 6). A general rule is to keep conducting group interviews until no new insights are gained. 7). Regardless of group composition, it is the moderator who sets the tone of the group. 8). Focus Groups. a. The focus group is a discussion on a topic involving a small group of

participants led by a trained moderator. 1]. The focus group normally consists of 6-10 participants, led by a trained moderator, who meet for 90 minutes to 2 hours. 2]. Focus groups are often unique in research due to the research sponsors involvement in the process. b. Fewer and lengthier focus groups are becoming common. c. Common focus group activities include: 1]. Projective techniques (see Chapter 8). 2]. Free association. 3]. Picture sort. 4]. Photo sort. 5]. Role play. d. Focus groups are especially invaluable in the following scenarios: 1]. Obtaining general background about a topic or issue. 2]. Generating research questions to be explored via quantitative methodologies. 3]. Interpreting previously obtained quantitative results. 4]. Stimulating new ideas for products and programs. 5]. Highlighting areas of opportunity for specific marketers to pursue. 6]. Diagnosing problems that marketers need to address. 7]. Generating impressions and perceptions of brands and product ideas. 8]. Generating a level of understanding about influences in the participants world. 9). Other Venues for Focus Group Interviews. a. Telephone focus groupsgroup participants are connected to the moderator and each other by teleconferencing equipment. b. Telephone focus groups are effective in the following situations: 1]. When it is difficult to recruit desired participants. 2]. When target group members are rare, low incidence, or widely dispersed geographically. 3]. When issues are so sensitive that anonymity is needed but respondents must be from a wide geographic area. 4]. When you want to conduct only a couple of focus groups but want nationwide representation. c. Telephone focus groups are less effective: 1]. When participants need to handle a product. 2]. When an object of discussion cannot be sent through the mail in advance. 3]. When sessions will run long. 4]. When the participants are groups of young children. d. Online focus groupsparticipants use the technology of the Internet to approximate the interaction of a face-to-face focus group. 1]. These groups are especially useful when a computer-based

application is the focus of the discussion. e. Videoconferencing Focus Groups. 1]. Expected to increase in popularity in the future because of the significant savings offered. 10). Recording, Analyzing, and Reporting Group Interviews. a. Events that transpire during a group interview can be recoded in a variety of ways. b. Feedback is analyzed across several focus group sessions using content analysisprocess for measuring semantic content of a communication. c. Software is often used to assist in this analysis process. 5. COMBINING QUALITATIVE METHODOLOGIES A. Case Study. 1). The case study, also referred to as the case history, is a powerful research methodology that combines individual and (sometimes) group interviews with record analysis and observation. 2). Researchers extract information from such devices as company brochures or annual reports (just to name a few) and combine it with interview data from participants. a. The objective is to give multiple perspectives of a single organization, situation, event, or process in time or over a period of time. b. Case study or analysis can be used to understand particular marketing processes. 3). Researchers select specific organizations or situations to profile because these examples or subjects offer critical, extreme, or unusual cases. 4). The flexibility of the case study approach is valuable. B. Action Research. 1). Marketers conduct research in order to gain insights to make decisions in specific scenarios. 2). Action research is brainstorming, followed by sequential trial-and-error attempts, until desired results are achieved. 3). When no known heuristics exist, action research may be called for. a. A scenario can be studied to gain valuable insights. 6. MERGING QUALITATIVE AND QUANTITATIVE METHODOLOGIES A. Triangulation. 1). Triangulation is a research design which combines several qualitative methods or quantitative with qualitative methods. 2). Since combining qualitative and quantitative research methods can reduce some of the objections held toward qualitative research, several strategies for combining methodologies are common:

a. Qualitative and quantitative studies can be conducted simultaneously. b. A qualitative study can be ongoing while multiple waves of quantitative studies are done, measuring changes in behavior and attitudes over time. c. A qualitative study can precede a quantitative study, and a second qualitative study then might follow the quantitative study, seeking more clarification. d. A quantitative study can precede a qualitative study. CHAPTER 10 Observation Studies 1. THE USES OF OBSERVATION A. Much of what we know comes from observation. 1). Marketing managers often use observation as part of the exploratory phase of a research project. a. Simple observation is the unstructured and exploratory observation of participants or objects. 2). Observation may be used as the primary methodology to answer a research question. 3). If the study is to be something other than exploratory, systematic observation (e.g., structured study using standardized procedures to observe participants or objects) is used. a. Systematic observation studies vary in the emphasis placed on recording and encoding observational information. b. Besides collecting data visually, observation includes listening, reading, smelling, and touching. B. Observational studies can be: 1). Behavioral observation. a. Nonverbal behavior. b. Linguistic behavior. c. Extralinguistic behavior. d. Spatial behavior. 2). Nonbehavioral observation. a. Physical condition observation. b. Process or activity observation. c. Record observation. 2. BEHAVIORAL OBSERVATION A. Types of Behavioral Observation. 1). An observation study of persons can be classified into four major categories:

a. Nonverbal. b. Linguistic. c. Extralinguistic. d. Spatial. 2). Nonverbal observation (recording of physical actions or movements of participants) is the most prevalent of the categories. a. Both people and machines can perform the initial stage of a nonverbal observation study, the recording of behavior. 3). Mechanical/Digital Observation. a. Researchers use machines for recording behaviors for various reasons. 1]. Events and details of behavior often happen in such rapid sequence that the human eye doesnt prove as adequate as the recording device. 2]. Human researchers must stop observing while they record previously seen behavior, missing unknown behaviors in the process. 3]. The research design may require extremely detailed observation or the observation of more than one participant at a time. 4]. Trained human observers are expensive. b. The most common used mechanical/digital devices are the video camera and the audio recorder. 1]. These devices can be used to generate actual counts and descriptions of behaviors. c. Other devices that can be used include: 1]. The galvanometermeasures excitement, arousal, fear, or heightened physiological response to stimuli. 2]. The eye camera and pupilometera device is attached to a persons forehead; when the person is exposed to stimuli, the researcher can measure the movement of the eye and the dilation of the pupil in the eye, respectively. 3]. The tachistoscopea timed shutter device that exposes a participant to some stimulus for a controlled period of time. a). Associated with the study of the effectiveness of subliminal advertising (the communication of promotional messages at a level below conscious recognition). B. Other Behavioral Observation. 1). Linguistic observationthe observation of human verbal behavior during conversation, presentation, or interaction. 2). Extralinguistic observationthe recording of vocal, temporal, interaction, and verbal stylistic behaviors of human participants. 3). Spatial observationthe recording of how humans physically relate to one another. a. Proximics records how people organize the territory about them and how they maintain discrete distances between themselves and others. 3. EVALUATION OF THE OBSERVATIONAL METHOD

A. The strengths and limitations of observation as a data collection method include: 1). Strengths: a. Securing information about people or activities that cannot be derived from experiments or surveys. b. Avoiding participant filtering and forgetting. c. Securing environmental context information. d. Optimizing the naturalness of the research setting, to avoid influencing behavior. e. Reducing obtrusiveness (uninvited intrusion into a participants life). 2). Weaknesses: a. Enduring long periods to capture the relevant phenomena. b. Incurring higher expense of trained observers and specialized equipment. c. Having lower reliability of inferences from surface indicators. d. Quantifying data. e. Keeping disproportionately large records. f. Being limited on presenting activities and inferences about cognitive processes. B. Factual and inferential content of observation. 1). The observation environment is more suited to subjective assessment and recording of data than to controls and quantification of events. 2). Control is exercised through significant observer training and by use of a structured observation checklist (e.g., the measurement instrument for recording data in an observation study). 4. THE OBSERVER-PARTICIPANT RELATIONSHIP A. Communication with a participant presents a clear opportunity for interviewer bias. 1). The relationship between observer and participant may be viewed from three perspectives: a. Whether the observation is direct or indirect. b. Whether the observers presence is known or unknown to the participant (concealment). c. What role the observer plays in the events or effects of events recorded. B. Directness of Observation. 1). Direct observation occurs when the observer is physically present and personally monitors and records the behavior of the participant. a. This approach is very flexible in that it allows the observer to react to and report subtle aspects of events and behaviors as they occur. b. A weakness of this approach is that observers perception circuits may become overloaded as events move quickly. 1]. Observer boredom could also become a factor. 2). Indirect observation occurs when the recording is done by mechanical,

photographic, or electronic means. a. Electronic recording devices are being used with more frequency in observation research. C. Concealment. 1). A second factor affecting the observer-participant relationship concerns whether the participant should know of the observers presence or not. 2). The initial entry of the observer in a situation often upsets the activity patterns of the participants. a. The potential bias from participant awareness of observers is always a matter of concern. 3). Observers use concealment (where the observer is shielded from the participant to avoid error caused by the observers presence). a. Technical means, such as mirrored windows, are often used to assist with concealment. b. Debriefing of participants can be used to ensure that any concealment on the part of the observer caused no harm. 4). Partial concealment occurs when the observer is not concealed, but the objectives and participant of interest are. D. Participation. 1). The third observer-participant issue is whether the observer should participate in the situation while observing. 2). Participant observation occurs when the observer is physically involved in the research situation and interacts with the participant to influence some observational measures. 3). Mystery shoppers can be used to evaluate sales personnel in retail settings. a. Ethical issues arise in that the sales personnel not only have their privacy invaded but they are also deceived as to the intentions of the shopper. 5. CONDUCTING AN OBSERVATION STUDY A. The Type of Study. 1). Observation studies can be divided into four classifications: a. Unstructured/natural. b. Unstructured/laboratory. c. Structured/natural. d. Structured/laboratory. 2). The first three are generally used to generate a hypothesis, while the fourth is is used to test a hypothesis.

3). Meanings: a. Structuredvery specific behaviors and effects are recorded, the same for every participant. b. Unstructuredthe researcher attempts to record all effects and behavior that occur with a specific participant in the context of a specific event. c. Natural studyoccurs where the behavior or effect naturally takes place. d. Laboratory studyattempts to simulate a natural environment but allows the researcher to manipulate and control variables being studied, actions not often possible in a natural setting. B. Content Specification. 1). Specific conditions, events, or activities that we want to observe determine the observation reporting system (and correspond to measurement questions). 2). To specify the observation content, we should include both the major variables of interest and any other variables that may affect them. C. Observer Training. 1). There are a few general guidelines for the qualification and selection of observers: a. Concentrationability to function in a setting full of distractions. b. Detail-orientedability to remember details of an experience. c. Unobtrusiveability to blend with the setting and not be distinctive. d. Experience levelability to extract the most from an observation study. 2). Sometimes, however, inexperience may actually be preferred over experience when the following occur: a. Halo effecterror caused when prior observations influence perceptions of current observations. b. Observer drifterror caused by decay in consistency and accuracy on recorded observations over time, affecting categorization. D. Research Design. 1). The data collection plan specifies the details of the task; it answers questions who, what when, how, and where. 2). Who? a. Who qualifies to participate? 3). What? a. Event samplingselection of certain behavioral acts or conditions that represent the event population to record. b. Time samplingselection of certain time points or time intervals to observe and record elements, acts, or conditions from a population of observable behaviors or conditions. c. Acts that might be observed and are worthy of study: 1]. A single expressed thought. 2]. A physical movement. 3]. A facial expression.

4]. A motor skill. 4). When? a. Is the time of the study important, or can any time be used? 5). How? a. How is the study to be conducted (e.g., will data be directly observed? et cetera)? 6). Where? a. Where does the study take place? 6. NONBEHAVIORAL OBSERVATION A. Some observation can be done without following the behavioral observation path. 1). Participant observation occurs when the observer is physically involved in the research situation and interacts with the participant to influence some observational measures. a. This contributes to reactivity responseerror introduced when participants alter their true behavior due to the presence of the observer. 2). There are three types of nonbehavioral observation (as shown below): a. Physical condition analysis. b. Process or activity analysis. c. Record analysis. B. Physical Condition Analysis. 1). Physical condition analysis is the recording of observations of current conditions resulting from prior decisions. a. Examplestore audits of merchandise availability or analysis of inventory conditions. 2). Unobtrusive measures are creative and imaginative forms of indirect observation, archival searches, and simple and contrived observation. a. Of particular interest in this area is observation based on physical traces (indirect observation that collects measures of erosion and measures of deposit). 1]. Examplehow often does a vinyl floor have to be replaced in a shopping area or customer trafficking zone. 2]. Other illustrations include listening to radio stations (accretion) and consumer habit determination via garbage analysis (garbology). C. Process or Activity Analysis. 1). Process (or activity) analysis is observation by a time study of stages in a process, evaluated on both effectiveness and efficiency. a. Examples: a sales transaction, traffic flows in a distribution system, order fulfillment. D. Record Analysis. 1). Record analysis is the extraction of data from current or historical records.

a. Exampleinternal company records. b. The researcher using record analysis is basically a detective guided by a research question. 2). Data Mining. a. Data mining is applying mathematical models to extract meaningful knowledge from integrated databases. b. Data mining tools perform exploratory and confirmatory statistical analysis to discover and validate relationships. c. Data extraction in this form is not necessarily new, but its importance and attention is growing. d. In the past, marketing databases maintained only the most current data necessary for decision support. This was short-sighted. e. The new trend is toward maintaining a data warehouseelectronic storehouse where vast arrays of collected, integrated data are ready for mining. 1]. A data mart is an intermediate storage facility that compiles locally required information. f. The purpose of data mining is to identify valid, novel, useful, and ultimately understandable patterns in data. g. Pattern Discovery. 1]. Data mining tools can be programmed to sweep regularly through databases and identify previously hidden patterns. h. Predicting Trends and Behaviors. 1]. Often associated with targeted marketing. i. The Data Mining Process. a. Sampledecide between census data and sample data. b. Exploreidentify relationships within the data. c. Modifymodify or transform data. d. Modeldevelop a model that explains the data relationships. e. Assesstest the models accuracy. 1. CHARACTERISTICS OF THE COMMUNICATION APPROACH A. Research designs can be classified by the approach used to gather primary data. 1). Primary methods include: a. Observation. b. Communication with participants. 2). The researcher determines the appropriate data collection approach largely by identifying the types of information neededinvestigative questions the researcher must answer. a. Additionally, the characteristics of the sample unit have a bearing on the choice of research designs. 3). A researchers choice of a communication approach affects the following: a. The creation and selection of the measurement questions. b. Instrument design, which incorporates attempts to reduce error and

create participant-screening procedures. c. Sampling issues, which drive contact and callback procedures. d. Data collection processes, which create the need for follow-up procedures (when self-administered instruments are used) and possible interviewer training (when personal or telephone surveying methods are used). 4). The communication approach is a design involving surveying or interviewing people. a. A survey is a measurement process using a highly structured interview. b. The goal of the survey is to derive comparable data across subsets of the chosen sample so similarities and differences can be found. 1]. When combined with statistical probability sampling for selecting participants, survey findings and conclusions are projectable to large and diverse populations. 2]. The great strength of the survey as a primary data collecting approach is its versatility. 3]. Abstract information of all types can be gathered by questioning others. c. The bad news for communication research is all communication research has some error. 1]. Understanding the various sources of error helps researchers avoid or diminish such error. B. Error in Communication Research. 1). There are three major sources of error in communication research: a. Measurement questions and survey instruments. b. Interviewers. c. Participants. 2). Researchers cannot help a marketing decision maker answer a research question if they: a. Select or craft inappropriate questions. b. Ask them in an inappropriate order. c. Use inappropriate transitions and instructions to elicit information. 3). Interviewer Error. a. Interviewer error is error that results from interviewer influence of the participant. b. Interviewer error is caused by: 1]. Failure to secure full participant cooperation (sampling error). 2]. Failure to record answers accurately and completely (data entry error). 3]. Failure to consistently execute interview procedures. 4]. Failure to establish appropriate interview environment. 5]. Falsification of individual answers or whole interviews. 6]. Inappropriate influencing behavior. 7]. Physical presence bias.

4). Participant Error. a. Three broad conditions must be met by participants to have a successful survey: 1]. The participant must possess the information being targeted by the investigative questions. 2]. The participant must understand his or her role in the interview as the provider of accurate information. 3]. The participant must have adequate motivation to cooperate. b. Participant-based Errors. Three factors influence participation: 1]. The participant must believe that the experience will be pleasing and satisfying. 2]. The participant must believe that answering the survey is an important and worthwhile use of his or her time. 3]. The participant must dismiss any mental reservations that he or she might have about participation. c. Whether the experience will be pleasant and satisfying depends heavily on the interviewer. d. The quality and quantity of information secured depends heavily on the ability and willingness of participants to cooperate. 1]. At the core of a survey or interview is an interaction between two people or between a person and a questionnaire. e. Nonresponse error is error that develops when an interviewer cannot locate or involve the targeted participant. 1]. This occurs when the researcher: a). Cannot locate the person (the predesignated sample element) to be studied. b). Is unsuccessful in encouraging that person to participate. 2]. Despite its challenges, communicating with research participantsand the use of the surveyis the principal method of marketing research. f. Response-based Errors. 1]. Response error occurs when the participant fails to give a correct or complete answer. 2]. Screening can be done to ensure that a participant has an adequate information level to be a participant. 3]. Participants can cause error by responding in such a way as to unconsciously or consciously misrepresent their actual behavior, attitudes, preferences, motivations, or intentions (response bias). 4]. Participants can create response bias when they modify their responses to be socially acceptable or to save face or reputation with the interviewer (social desirability bias), and sometimes even in an attempt to appear to be rational and logical. a). One major cause of response bias is acquiescencethe tendency to be agreeable.

b). If participants choose dont know as a response, be forewarned that surveys show that most who answer in this way really have an opinion but dont expressed it. 5]. Participants may interpret a question or concept differently from what was intended by the researcher. C. Choosing a Communication Method. 1). There are various options for researchers to choose from when they begin data collection. 2). There is a new trend toward computer-assisted data collection or survey information collection. 2. SELF-ADMINISTERED SURVEYS A. The self-administered questionnaire is an instrument completed by the participant without additional contact with an interviewer beyond delivery. 1). Mail surveys are self-administered studies both delivered and returned by mail. a. Other delivery modalities include computer-delivered and intercept studies. B. Evaluation of the Self-Administered Surveys. 1). Nowhere has the computer revolution been felt more strongly than in the area of the self-administered survey. a. Computer-assisted self-interview (CASI) is a computer-delivered questionnaire that is self-administered by the participant. b. Disk-by-mail (DBM) survey is a type of computer-assisted self-interview where the survey and its management software, on computer disk, are delivered by mail to participant. 2). Intercept surveys may use a traditional paper-and-pencil questionnaire or a computer-delivered survey via a kiosk. 3). Costs. a. Self-administered surveys of all types typically cost less than surveys via personal interviews. b. Computer-delivered surveys lower costs in the pre- and postnotification of participants. 4). Sample Accessibility. a. One asset of using mail self-administered surveys is that researchers can contact participants who might otherwise be inaccessible. b. The computer-delivered survey can often reach samples that are identified in no way other than their computer and Internet use. 5). Time Constraints. a. In a mail survey, the participant can take more time to collect facts, talk with others, or consider replies at length than is possible in a survey employing the telephone or in a personal interview. 6). Anonymity. a. Most of the forms of surveys that are self-administered are considered to provide anonymity.

7). Topic coverage. a. A major limitation of self-administered surveys concerns the type and amount of information that can be secured (how much information can be collected). b. A general rule of thumb is that participants should be able to answer the survey or questionnaire in less than 10 minutes. C. Maximizing Participation in the Self-Administered Survey. 1). To maximize the overall probability of response, attention must be given to each point of the survey process where the response may break down. a. For example, the wrong address might be written or the envelop might look like junk mail. 2). The Total Design Method (TDM) suggests minimizing the burden on participants by designing questionnaires that: a. Are easy to read. b. Offer clear response directions. c. Include personalized communication. d. Provide information about the survey via advance notification. e. Encourage participants to respond. 3). Hints from the pros and contemporary research suggest conclusions: a. Preliminary or advance notification of the delivery of a self-administered questionnaire increases response rates. b. Follow-ups or reminders after the delivery of a self-administered questionnaire increase response rates. c. Clearly specified return directions and devices improve response rates. d. Monetary incentives for participation increase response rates. e. Deadline dates do not increase response rates but do encourage participants to respond sooner. f. A promise of anonymity, while important to those who do respond, does not increase response rates. g. An appeal for participation is essential. D. Self-Administered Survey Trends. 1). Web-based questionnairea measurement both delivered and collected via the Internet. a. This form has the power of computer-assisted telephone interview systems, but without the expense of network administrators, specialized software, or additional hardware. b. Most products are browser-driven with design features that allow custom survey creation and modification. c. Users can choose proprietary solutions through research firms and off-theshelf software designed for researchers. d. The computer-delivered survey has made it possible to use many of the suggestions for increasing participation. 3. SURVEY VIA TELEPHONE INTERVIEW

A. The survey via telephone interview is still the workhorse of survey research. 1). Telephone interviewa study conducted wholly by telephone contact between participant and interviewer. a. This is a popular method for many reasons one of those being the high level of telephone penetration in the United States and Europe. B. Evaluation of the Telephone Interview. 1). Of the advantages that telephone interviewing offers, probably none ranks higher than its moderate cost. a. Costs are often 45 to 64 percent lower than comparable personal interviewing costs. b. Interviews can be done nationally at a reasonable cost. 2). Computer-assisted telephone interviewing (CATI) is a telephone survey with computer sequenced questions and real-time data entry. a. A software program prompts the interviewer with introductory statements, qualifying questions, and prerecorded questionnaire items that drive the survey. 3). Computer-administered telephone surveya telephone survey via voicesynthesized computer questions. a. There is no human interviewer. b. Modes include: 1]. Touch-tone data entry (TDE). 2]. Voice recognition (VR). 3]. Automated speech recognition (ASR). 4). Noncontact rate is the ratio of noncontacts to all potential contacts. a. The refusal rate is the ratio of participants who decline the interview to all eligible contacts. b. The industry has found a growing negative perception of telephone interviewing among potential participants. c. Telephone interviewing, however, brings a faster conclusion to the study. d. Behavioral norms work to the advantage of telephone interviewing. 5). Disadvantages of telephone interviewing include: a. Inaccessible households (no telephone service or no/low contact rate). b. Inaccurate or nonfunctioning numbers. c. Limitation on interview length (fewer measurement questions). d. Limitations on use of visual or complex questions. e. Ease of interview termination. f. Less participant involvement. g. Distracting physical environment. 6). Inaccessible Households. a. Approximately 94 percent of all U.S. households have access to telephone service. b. However, not all that have access to phone service are adequately represented in telephone studies. Examples are: 1]. Rural customers.

2]. Unlisted numbers. 3]. Those that have filtering services. 4]. Secondary phone lines. 5]. Those who use cellular as the primary phone service. c. Random dialing (e.g., computerized process that chooses phone exchanges or exchange blocks and generates random numbers within these blocks for telephone surveys) helps to reduce bias caused by the above. 7). Inaccurate or Nonfunctioning Numbers. a. The highest incidence of unlisted numbers is in the West. b. Random dialing can help to reduce this bias. 8). Limitation on Interview Length. a. A limit on interview length is one of the disadvantages of the telephone survey, but the degree of this limitation depends on the participants interest in the topic. b. 10 minute interviews are ideal; some last up to 20 minutes. 9). Limitations on Use of Visual or Complex Questions. a. The telephone survey limits the complexity of the survey and use of complex scales or measurement techniques that is possible with personal interviewing or other methods. b. In telephone interviewing it is difficult to use maps, illustrations, and other visual aids. 10). Ease of Interview Termination. a. Some studies find that the response rate in telephone studies is lower than that for comparable face-to-face interviews. b. One reason is that participants find it easier to terminate a phone interview. c. Bogus telephone research: 1]. Suggingsales under the guise of research. 2]. Fruggingfund-raising under the guise of research. 11). Less Participation Involvement. a. Telephone surveys can result in less thorough responses, and persons interviewed by phone find the experience to be less rewarding than a personal interview. 12). Changes in the Physical Environment. a. Replacement of home or office phones with cellular and wireless phones also raises concerns. C. Telephone Survey Trends. 1). Future trends to be watched include: a. The growing use of answering machines or voice-mail services could cause response rate problems. b. However, it was discovered that individuals with answering machines: 1]. Were more likely to participate in telephone surveys. 2]. Machine use was more prevalent on weekends than on weekday evenings. 3]. Machines were more commonplace in urban areas than in rural areas.

4. SURVEY VIA PERSONAL INTERVIEW A. The personal interview is a two-way communication initiated by an interviewer to obtain information from a participant. B. Evaluation of the Personal Interview. 1). The greatest value of the personal interview lies in the depth of information and detail that can be secured. a. The quality of the information can also be improved using this method. b. Interviewers can note conditions of the interview, probe with additional questions, and gather supplemental information through observation. c. Human interviewers can have more control than in other kinds of communication studies. 1]. Computer-assisted personal interviewing (CAPI)a personal interview with computer-sequenced questions capable of employing visualization techniques. 2). A chief disadvantage of the personal interviewing technique is its cost. a. Costs are particularly high if the study covers a wide geographic area. b. An exception is the intercept interviewa face-to-face communication that targets participants in a centralized location. 1]. Intercept interviews reduce costs associated with the need for several interviewers, training, and travel. 3). Costs have also risen because of the growing negative social climate against personal interviewing. 4). Results of surveys via personal interviews can be affected adversely by interviewers who alter the questions asked or in other ways bias the results. a. Interviewer bias is one of the three major sources of error. 5. SELECTING AN OPTIMAL SURVEY METHOD A. The choice of a communication method is not as complicated as it might first appear. 1). When your investigative questions call for information from hard-to-reach or inaccessible participants, the telephone interview, mail survey, or computerdelivered survey should be considered. 2). If data needs to be collected quickly, the mail survey would likely be ruled out because of lack of control over the returns. 3). If extensive questioning and probing is required, the survey via personal interview should be considered. 4). In some instances, methods can be combined to capitalize on strengths or diminish weaknesses. 5). Ultimately, all researchers are confronted by the practical realities of cost and deadlines. 6). Note Exhibit 11-5 for a summary of the advantages and disadvantages of each communication study alternative.

B. Outsourcing Survey Services. 1). Commercial suppliers of research services vary from full-service operations to specialty consultants. 2). Most organizations use a request for proposal (RFP) to describe their requirements and seek competitive bids. 3). Research firms also offer special advantages that their clients do not typically maintain in-house. a. Centralized-location interviewing or computer-assisted telephone facilities may be particularly desirable for certain research needs. 4). A panel is a group of potential participants who have indicated a willingness to participate in research studies. a. The panel can be used to track trends in attitudes toward issues or products, product adoption or consumption behavior, and a myriad of other research interests. CHAPTER 12 Experiments and Test Markets 1. WHAT IS EXPERIMENTATION? A. Why do events occur under some conditions and not under others? 1). Research methods that answer such questions are called causal methods. 2). The difference between ex post facto research designs (which can be used for discovering causality) and experimentation is that experimentation does not have to accept the world as is. a. An experiment allows a researcher to alter systematically the variables of interest and observe the changes that follow. 3). An experiment is a study involving manipulation of one or more variables to determine the effect on another variable. a. The usual intervention is to manipulate some variable in a setting and observe how it affects the participants or subjects being studied. b. The researcher manipulates the independent or explanatory variable and then observes whether the hypothesized dependent variable is affected by the intervention. 4). There is at least one independent variable (IV) (e.g., the variable manipulated by the researcher, thereby causing an effect on the dependent variable) and one dependent variable (DI) (e.g., a measured, predicted, or otherwise monitored variable expected to be affected by manipulation of an IV) in a causal relationship. a. The independent variable is also called the predictor variable. b. The dependent variable is also called the criterion variable. 2. AN EVALUATION OF EXPERIMENTS

A. Advantages. 1). The foremost advantage of experimentation is the researchers ability to manipulate the independent variable. a. The probability that changes in the dependent variable are a function of that manipulation increases. b. A control group is used for comparison. 2). The next advantage of the experiment is that contamination from extraneous variables can be controlled more effectively than in other designs. 3). The third advantage is that the convenience and cost of experimentation are superior to those of other methods. 4). Fourth, replicationthe process of repeating an experiment with different participant groups and conditions to determine the average effect of the IV across people, situations, and timesleads to discovery of an average effect of the independent variable across people, situations, and times. 5). Fifth, researchers can use naturally occurring events and, to some extent, field experiments (e.g., a study of the dependent variable in actual environmental conditions) to reduce participants' perceptions of the researcher as a source of intervention or deviation in their everyday lives. B. Disadvantages. 1). The artificiality of the laboratory is arguably the primary disadvantage of the experimental method. 2). We generalize the results from a sample that is not representative of its population. 3). Despite the low costs of experimentation, many applications of experimentation far outrun the budgets for other primary data collection methods. 4). Experimentation is most effectively targeted at problems of the present or immediate future. 5). Marketing research is often concerned with the study of peoplethere are limits to the types of manipulation and controls that are ethical. 3. CONDUCTING AN EXPERIMENT A. In a well-executed experiment, researchers complete a series of activities to carry out their craft successfully. 1). The seven activities used by researchers to make their endeavor successful are: a. Select relevant variables. b. Specify the level(s) of the treatment. c. Control the experimental environment. d. Choose the experimental design. e. Select and assign the participants. f. Pilot-test, revise, and test. g. Analyze the data.

B. Selecting Relevant Variables. 1). The researchers task is to translate an ambiguous problem into the question or hypothesis that best states the objectives of the research. a. Hypothesisa tentative descriptive statement of the relationship between variables. b. The hypothesis must be operationalizedthe process of transforming concepts and constructs into measurable variables suitable for testing. 2). Researchers are challenged to: a. Select variables that are the best operational definitions of the original concepts. b. Determine how many variables to test. c. Select or design appropriate measures for the chosen variable(s). C. Specifying Treatment Levels. 1). Experimental treatmentthe manipulated independent variable(s). 2). Treatment levelsthe arbitrary or natural groupings within the independent variable in an experiment. a. Treatment levels assigned to an independent variable should be based on simplicity and common sense. 3). A control group is a group of participants that is measured but not exposed to the independent variable being studied. D. Controlling the Experimental Environment. 1). Environmental control is holding constant the physical environment of the experiment. 2). Other forms of control involve participants and experimenters. a. Blindwhen participants do not know if they are being exposed to the experimental treatment. b. Double-blindwhen neither the researcher nor the participant knows when a participant is exposed to the experimental treatment. 3). Both approaches control unwanted complications such as participants reactions to expected conditions or experimenter influence. E. Choosing the Experimental Design. 1). Experimental designs are unique to the experimental method. 2). Though many designs will always be available, the judicious selection of the design improves the probability that the observed change in the dependent variable was caused by the manipulation of the independent variable and not by another factor. F. Selecting and Assigning Participants. 1). The participants selected for the experiment should be representative of the population to which the researcher wishes to generalize the studys results. a. Using student surrogates is overused and frowned on by many in the research community. 2). The procedure for random sampling of experimental participants is similar in

principle to the selection of respondents for a survey. 3). Random assignment uses a randomized sample frame for assigning participants to experimental control groups. a. This assists in making groups comparable. 4). When it is not possible to randomly assign participants to groups, matching may be used. a. Matching is an equalizing process for assigning participants to experimental and control groups. b. Matching employs a nonprobability quota sampling approach. 5). Some authorities suggest a quota matrix as the most efficient means of visualizing the matching process. G. Pilot Testing, Revising, and Testing. 1). Pilot testing is intended to reveal errors in the design and improper control of extraneous or environmental conditions. a. Pretesting the instruments permits refinement before the final test. b. In field experiments, researchers can sometimes be caught off guard by events that have a dramatic impact on participants. H. Analyzing the Data. 1). Data from experiments is not necessarily easier to analyze than other forms; however, it is simply more conveniently arranged because of the levels of the treatment condition, pretests and posttests, and the group structure. 2). Researchers have several measurement and instrument options with experiments: a. Observation techniques and coding schemes. b. Paper-and-pencil tests. c. Self-administered instruments with open-ended or closed questions. d. Scaling techniques (e.g., Likert scales, semantic differential, Q-sort). e. Physiological measures (e.g., galvanic skin response, EKG, voice pitch analysis, eye dilation). 4. VALIDITY IN EXPERIMENTATION A. One of the problems with any experimental research design is whether or not the results are true. 1). Validity is whether or not a measure accomplishes its claims. 2). Internal validity occurs when the conclusion(s) drawn about a demonstrated experimental relationship truly implies cause. 3). External validity occurs when an observed causal relationship can be generalized across persons, settings, and times. B. Internal Validity. 1). Among the many threats to internal validity are the following: a. History. b. Maturation. c. Testing.

d. e. f. g.

Instrumentation. Selection. Statistical regression. Experimental mortality.

2). History. a. In many experimental designs, we take a control measurement (O1) of the dependent variable before introducing the manipulation (X). 1]. After the manipulation, we take an after-measurement (O2) of the dependent variable. 2]. The difference between O1 and O2 is the change that the manipulation has caused. 3). Maturation. a. Changes may occur within the participant that are a function of the passage of time and are not specific to any particular event. 4). Testing. a. The process of taking a test can affect the scores of a second test. 5). Instrumentation. a. This threat occurs as a result of changes between observations in either the measuring instrument or the observer. 6). Selection. a. The selection of participants for experimental and control groups can be a threat to internal validity. b. Randomization can help to diminish this threat. 7). Statistical Regression. a. This occurs when groups have been selected by their extreme scores. 8). Experimental Mortality. a. This occurs when the composition of the study groups changes during the test. b. Attrition is likely in an experimental group. 9). The threats above are most likely dealt with by random assignment. 10). Five additional threats to internal validity are independent of whether or not one randomizes: a. Diffusion or imitation of treatmentpeople talk among themselves. b. Compensatory equalizationactions to compensate the control groups may confound the experiment. c. Compensatory rivalrycontrol group members may try harder if they know they are in the control group. d. Resentful demoralization of the disadvantagedcontrol group members may be resentful if they perceive that they have been deprived. e. Local historyan event can confound the experiment. C. External Validity. 1). External validity is concerned with the interaction of the experimental treatment with other factors and the resulting impact on the ability to generalize to (and across) times, settings, or persons.

2). Among the major threats to external validity are the following interactive possibilities: a. Reactivity of testing on X. b. Interaction of selection and X. c. Other reactive factors. 3). Reactivity of Testing on X. a. The reactive effect refers to sensitizing participants via a pretest so that they respond to the experimental stimulus (X) in a different way. b. This before-measurement effect can be particularly significant in experiments where the IV is a change in attitude or knowledge. 4). Interaction of Selection and X. a. The process by which test participants are selected for an experiment may be a threat to external validity. b. Test populations should be similar to study populations. 5). Other Reactive Factors. a. The experimental settings themselves may have a biasing effect on a participants response to X. b. If participants know they are participating in an experiment, there may be a tendency to role-play in a way that distorts the effects of X. 5. EXPERIMENTAL RESEARCH DESIGNS A. The many experimental designs vary widely in their power to control contamination of the relationship between independent and dependent variables. 1). The most widely accepted designs are based on this characteristic of control: a. Preexperiments. b. True experiments. c. Field experiments. B. Preexperimental Designs. 1). All three preexperimental designs are weak in their scientific measurement powerthey fail to control adequately the various threats to internal validity. a. This is especially true of the after-only case study. 2). After-Only Case Study. a. The lack of a pretest and control group makes this design inadequate for establishing causality. 3). One-Group Pretest-Posttest Design. a. Though this design improves on the after-only case study, it is still a weak design. 4). Static Group Comparison. a. This design provides for two groups, one of which receives the experimental stimulus while the other serves as a control. b. The addition of a comparison group creates substantial improvement over the other two designs. c. Its chief weaknesses are that there is no way to be certain that the two groups are equivalent or that the individuals assigned to experimental and control groups are representative.

C. True Experimental Designs. 1). The major deficiency of the preexperimental designs is that they fail to provide comparison groups that are truly equivalent. 2). The way to achieve equivalence is through random assignment and, supplementally, through matching. 3). With randomly assigned groups, we can employ tests of statistical significance to assess the observed differences. 4). Pretest-Posttest Control Group Design. a. This design consists of adding a control group to the one-group pretestposttest design and assigning the participants to either of the groups by a random procedure (R). b. The seven major interval validity problems are handled fairly well. c. The record on this design is not as good on external validity because there is a chance for a reactive effect from testing. 5). Posttest-Only Control Group Design. a. In this design, the pretest measurements are omitted. 1]. Pretests are not really necessary when it is possible to randomize. b. This simple design reduces the external validity problem of testing interaction effect. 6. FIELD EXPERIMENTS: QUASI- OR SEMI-EXPERIMENTS. A. Most marketers cannot control enough of the extraneous variables or experimental treatment under field conditions to use a true experimental design. 1). Because the stimulus occurs in a natural environment, a field quasi- or semiexperiment is required. 2). A quasi-experiment is inferior to a true experimental design but is usually superior to preexperimental designs. B. Nonequivalent Control Group Design. 1). The test and control groups are not randomly assigned. a. Intact equivalent designsmembership in the experimental and control groups is naturally assigned. b. Self-selected experimental group designweaker because volunteers are recruited to form the experimental group, while nonvolunteer participants are used for control. 2). Separate Sample Pretest-Posttest Design. a. This design is most useful when we cannot know when and to whom to introduce the treatment but we can decide when and whom to measure. b. This is not a strong design as several of the threats to internal validity are not handled well. 3). Group Time Series Design. a. A time series design introduces observations before and after the treatment and allows participants to act as their own controls. b. The time series format is especially useful where regularly kept records

are a natural part of the environment and are unlikely to be reactive. c. The internal validity problem for this design is history. 7. TEST MARKETING A. A test market is a controlled experiment conducted in a carefully chosen marketplace to measure and predict sales or profitability of a product. 1). The objective of the test market is to: a. Assist marketing managers introduce new products or services. b. Add products to existing lines. c. Identify concepts with potential. d. Relaunch enhanced versions of established brands. 2). Product failure may be attributed to many factors including inadequate marketing research. a. Test marketed products usually have a higher success rate than those that are not tested before introduction. B. Test Market Selection. 1). There are several criteria to consider when selecting test market locations. a. Representativeness of the location and characteristics of the participants. b. Multiple locations are often required for optimal demographic balance. c. Media coverage and isolation are critical criteria for locating the test. d. The control of distribution affects the test locations and types of test markets. C. Types of Test Markets. 1). Standard Test Markets. a. The standard test market is a real-time test of a product through existing distribution channels. b. Geographic scope may be limited. c. Standard test markets benefit from using actual distribution channels and discovering the amount of trade support necessary to launch and sustain the product. 2). Controlled Test Markets. a. The controlled test market is one where there is a real-time test of a product through arbitrarily selected distribution partners. b. The test locations represent a proportion of the marketers total store sales volume. c. Controlled test markets cost less than traditional ones. 3). Electronic Test Markets. a. An electronic test market is a test that combines store distribution, consumer scanner panel data, and household-level media delivery. b. The advantages of electronic test markets are apparent from the quality of

strategic information provided but suffer from an artifact of their identification card data collection strategy: participants may not be representative. 4). Simulated Test Markets. a. A simulated test market (STM) is a test of a product conducted in a laboratory setting designed to simulate a traditional shopping environment. b. STM examine shopping habits, purchase behavior, and trial behavior among other research interests. c. STMs are popular in todays world but expected to diminish in importance as one-to-one marketing grows. d. Benefits include: 1]. Costs. 2]. Minimization of competitor exposure. 3]. Time is reduced. 4]. Modeling allows for evaluation of the marketing mix for the product. e. Drawbacks include: 1]. Inability to measure trade acceptance. 2]. Lack of broad-based consumer response. 5). Virtual Test Markets. a. A virtual test market is a test of a product using a computer simulation of an interactive shopping experience. b. This method can explore and manipulate content in real time. c. An advantage of this method is that it can use a virtual prototype of a new product without having to actually produce a working model. 6). Web-Enabled Test Markets. a. Web-enabled test markets are a test of a product using online distribution. b. This form offers less control than other methods. c. Speed and time are advantages of the method. d. This method has become popular with Proctor & Gamble and General Mills. The advantages of experiments with the advantages of survey and observational methods.
Survey Observation Experiment

Advantageous for discovering a person's opinions, attitudes, motivations. Interviewer may observe nonverbal behavior (though not with mail, and limited to voice inflections with telephone). Structure of schedule or guide focuses attention on study purpose. Instruments may restrict study to previously chosen questions. Relationship between interviewer and participant is of short duration (and promotes comparative objectivity). Results may be product of method rather than objective reality. Good quantification potential; data are organized by the instrument and easily systematized. Anonymity/Confidentiality safeguards. Largest sample sizes possible.

Observation and recording (notes, videotapes) is superior to depending on someone's recollections. Primary method for nonverbal behavior analysis; has wide application for behavioral and nonbehavioral analysis. First hand observation of phenomenon. Ethical questions about consent, anonymity, etc. Observation instruments often lack structure (but unstructured observation offers flexibility). Observation may be used as exploratory front-end stage to survey or experiment. Relationship between observer and participant is often extended and provides more detail (but may reduce objectivity). Natural environmental setting lessens reactivity of participants; results are more realistic because method is less restrictive (but there is loss of control over variables). Difficulties with quantification: large amounts of data, coding problems, and lower power in statistical analysis. Smaller sample sizes than survey.

Superior method for establishing causality; surveys (except panels and other longitudinal designs) do not have experimental pre-post or multiple measurement advantage; observation may be longitudinal but there is little environmental control or ability to measure change in dependent variable. Ultimate method for control of variables: smaller samples and management of extraneous factors. Better opportunity to study change than cross-sectional surveys. Reactive effects may be caused by experimenter (also caused by survey interviewer). Laboratory settings are required for high levels of control: natural behavior is often altered or disappears. Change to natural settings reduces control options. Ethical considerations heavily influence manipulation and control of variables. Smallest sample sizes.

CHAPTER 16 Basic Sampling Concepts The major points found in this chapter include: 1. Sampling is based on two premises. One is that there is enough similarity among the elements in a population that a few of these elements will adequately represent the characteristics of the total population. The second premise is that while some elements in a sample underestimate a population value, others overestimate this value. The result of these tendencies is that a sample statistic such as the arithmetic mean is generally a good estimate of the population mean.

2. A good sample has both accuracy and precision. An accurate sample is one in which there is little or no bias or systematic variance. A sample with adequate precision is one that has a sampling error that is within acceptable limits for the studys purpose. 3. In developing a sample, five procedural questions need to be answered: a. What is the target population? b. What are the parameters of interest? c. What is the sampling frame? d. What is the appropriate sampling method? e. What size sample is needed? 4. A variety of sampling techniques are available. They may be classified by their representation basis and element selection techniques as shown in the accompanying table. Element Selection Unrestricted Restricted Representation Basis Probability Nonprobability Simple random Convenience Complex random Purposive Systematic Judgment Cluster Quota Snowball Stratified Double

Probability sampling is based on random selectiona controlled procedure that ensures that each population element is given a known nonzero chance of selection. The simplest type of probability approach is simple random sampling. In this design, each member of the population has an equal chance of being included in a sample. In contrast, nonprobability selection is not random. When each sample element is drawn individually from the population at large, this is unrestricted sampling. Restricted sampling covers those forms of sampling in which the selection process follows more complex rules. 5. Complex sampling is used when conditions make simple random samples impractical or uneconomical. The four major types of complex random sampling discussed in this chapter are systematic, stratified, cluster, and double sampling. Systematic sampling involves the selection of every kth element in the population, beginning with a random start between elements from 1 to k. Its simplicity in certain cases is its greatest value. Stratified sampling is based on dividing a population into subpopulations and then randomly sampling from each of these strata. This method usually results in a smaller total sample size than would a simple random design. Stratified samples may be proportionate or disproportionate.

In cluster sampling, we divide the population into convenient groups then randomly choose the groups to study. It is typically less efficient from a statistical viewpoint than the simple random because of the high degree of homogeneity within clusters. Its great advantage is its savings in costif the population is dispersed geographicallyor in time. The most widely used form of clustering is area sampling, in which geographic areas are the selection elements. At times it may be more convenient or economical to collect some information by sample and then use it as a basis for selecting a subsample for further study. This procedure is called double sampling. Nonprobability sampling also has some compelling practical advantages that account for its widespread use. Often probability sampling is not feasible because the population is not available. Then, too, frequent breakdowns in the application of probability sampling discount its technical advantages. You may find also that a true cross section is often not the aim of the researcher. Here the goal may be the discovery of the range or extent of conditions. Finally, nonprobability sampling is usually less expensive to conduct than is probability sampling. Convenience samples are the simplest and least reliable forms of nonprobability sampling. Their primary virtue is the low cost. One purposive sample is the judgmental sample, in which one is interested in studying only selected types of subjects. The other purposive sample is the quota sample. Subjects are selected to conform to certain predesigned control measures that secure a representative cross section of the population. Snowball sampling uses a referral approach to reach particularly hard-to-find respondents. CHAPTER OUTLINE 1. THE NATURE OF SAMPLING A. Most people intuitively understand the idea of sampling. 1). Sampling is the process of selecting some elements from a population to represent that population. 2). A population element is the individual participant or object on which the measurement is taken. 3). A population is all elements about which we wish to make some inferences. 4). A census is a count of all the elements in a population. 5). A sampling frame is a list of elements in the population from which the sample is actually drawn. B. Why Sample?

1). Compelling reasons for sampling include: a. Lower Cost. b. Greater Accuracy of Results c. Greater Speed of Data Collection. d. Availability of Population Elements. e. Sample versus Census. C. What Is a Good Sample? 1). The ultimate test of a good sample design is how well it represents the characteristics of the population it purports to represent. a. In measurement terms, the sample must be valid. b. Validity depends on two considerations: accuracy and precision. 2). Accuracy. a. Accuracy is the degree to which bias is absent from the sample. b. For the desired effect (just as many above as there are below the measured variable) to occur, there must be enough elements in the sample. c. An accurate (unbiased) sample is one in which the underestimators offset the overestimators. d. Systematic variance is a variation that causes measurements to skew in one direction or another. 1]. Increasing the sample size can reduce systematic variance as a cause of error. 3). Precision. a. The numerical descriptors that describe samples may be expected to differ from those that describe populations because of random fluctuations inherent in the sampling process. b. This is called sampling error (or random sampling error) and reflects the influence of chance in drawing the sample members. In short, it is the error caused by the sampling process. c. Sampling error is what is left after all known sources of systematic variance have been accounted for. d. Precision is measured by the standard error of estimate, a type of standard deviation measurement; the smaller the standard error of estimate, the higher is the precision of the sample. D. Types of Sample Design. 1). The researcher makes several decisions when designing a sample. 2). Sampling decisions flow from two decisions made in the formation of the management-research question hierarchy: a. The nature of the management question. b. The specific investigative questions that evolve from the research question. 3). These decisions are influenced by requirements of the project and its objectives, level of risk the marketer can tolerate, budget, time, available resources, and culture.

4). Representation. a. The members of a sample are selected using probability or nonprobability procedures. b. Nonprobability sampling is an arbitrary and subjective sampling procedure where each population element does not have a known, nonzero chance of being included. 1]. Early Internet samples had all the drawbacks of nonprobability samples. c. The key difference between nonprobability and probability samples is the term random. d. Probability sampling is a controlled, randomized procedure that assures that each population element is given a known, nonzero chance of selection. 1]. This procedure is never haphazard. 2]. Only probability samples provide estimates of precision. 5). Element Selection. a. If each sample element is drawn individually from the population at large, it is an unrestricted sample. b. Restricted samples covers all other forms of sampling. 2. STEPS IN SAMPLING DESIGN A. Questions to answer in securing a sample include: 1). What is the target population? 2). What are the parameters of interest? 3). What is the sampling frame? 4). What is the appropriate sampling method? 5). What size sample is needed? B. What is the Target Population? 1). The definition of the population may be apparent from the management problem or the research question(s), but often it is not. a. Does the population consist of individuals, households, or families or a combination of these? C. What Are the Parameters of Interest? 1). Population parameters are summary descriptors of variables of interest in the population. 2). Sample statistics are descriptors of the relevant variables computed from sample data. a. Sample statistics are used as estimators of population parameters. b. Sample statistics are the basis of our inferences about the population. 3). When the variables of interest in the study are measured on interval or ratio scales, we use the sample mean to estimate the population mean and the sample standard deviation to estimate the population standard deviation.

4). The population proportion of incidence is the number of category elements divided by number of elements in the population. a. Proportion measures are necessary for nominal data. D. What Is the Sampling Frame? 1). The sampling frame is closely related to the population. a. It is the list of elements from which the sample is actually drawn. b. Ideally, it is a complete and correct list of population members only. c. As a practical matter, however, the sampling frame often differs from the theoretical population. 1]. A screening procedure can reduce this problem. E. What Is the Appropriate Sampling Method? 1). The researcher faces a basic choice: a probability or nonprobability sample. 2). In choosing a probability sample, the researcher must follow appropriate procedures, so that: a. Interviewers and others cannot modify the selections made. b. Only the selected elements from the original sampling frame are included. c. Substitutions are excluded except as clearly specified and controlled according to predetermined decision rules. 3). Despite all the care, the actual sample achieved will not match perfectly the sample that is originally drawn. F. What Size Sample is Needed? 1). In probability sampling, how large a sample should be is a function of the variation in the population parameters under study and the estimating precision needed by the researcher. 2). Cost considerations influence decisions about the size and type of sample and the data collection methods. 3. PROBABILITY SAMPLING A. Simple Random Sampling. 1). The unrestricted, simple random sample is the purest form of probability sampling. 2). The simple random sample is a probability sample in which each element has a known and equal chance of selection. a. Formula: Probability of Selection = Sample Size/Population Size. B. Complex Probability Sampling. 1). Simple random sampling is often impractical. 2). A more efficient sample in a statistical sense is one that provides a given precision with a smaller sample size. 3). Four methods are: a. Systematic sampling.

b. Stratified sampling. c. Cluster sampling. d. Double sampling. 4). Systematic Sampling. a. Systematic samplingprobability sample drawn by applying a calculated skip interval to a sample frame. b. Skip intervalinterval between sample elements drawn from a sample frame in systematic sampling. c. The major advantage of systematic sampling is its simplicity and flexibility. d. Systematic sampling can introduce subtle biasesperiodicity or monotonic trend. e. While systematic sampling has some theoretical problems, from a practical point of view it is usually treated as a simple random sample. 5). Stratified Sampling. a. Most populations can be segregated into several mutually exclusive subpopulations, or strata. b. Stratified random samplinga probability sample that includes elements from each of the mutually exclusive strata within a population. c. This method is chosen: 1]. To increase a samples statistical efficiency. 2]. To provide adequate data for analyzing the various subpopulations or strata. 3]. To enable different research methods and procedures to be used in different strata. d. The more strata used, the closer you come to maximizing interstrata differences and minimizing intrastratum variances. e. The size of the strata samples is calculated with two pieces of information: 1]. How large the total sample should be. 2]. How the total sample should be allocated among strata. f. Proportionate versus Disproportionate Sampling. 1]. Proportionate stratified samplingeach stratums size is proportionate to the stratums share of the population. a). This approach is more popular than any of the other stratified sampling procedures.

2]. Any stratification that departs from the proportionate relationship is disproportionate stratified samplingeach stratums size is not proportionate to the stratums share of the population. 3]. A researcher makes decisions regarding disproportionate sampling by considering how a sample will be allocated among strata. 6). Cluster Sampling. a. Cluster samplingdivides the population into subgroups, then draws a sample from each subgroup. b. Two conditions foster the use of cluster sampling: 1]. The need for more economic efficiency than can be provided by simple random sampling. 2]. The frequent unavailability of a practical sampling frame for individual elements. c. Area Sampling. 1]. Area samplingcluster sampling technique applied to a population with well-defined political or geographic boundaries. 2]. This method overcomes the problems of both high sampling cost and the unavailability of a practical sampling frame for individual elements. d. Design. 1]. In designing clusters samples, including area samples, we must answer several questions: a. How homogenous are the resulting clusters? b. Shall we seek equal-sized or unequal-sized clusters? c. How large a cluster shall we take? d. Shall we use a single-stage or multistage cluster? e. How large a sample is needed? 7). Double Sampling. a. Double sampling (sequential sampling, multiphase sampling)a procedure for selecting a subsample from a sample. b. Cost is a factor in using this method.

4. NONPROBABILITY SAMPLING A. Probability sampling is technically superior to nonprobability sampling. 1). With a subjective approach like nonprobability sampling, the probability of selecting population elements is unknown. 2). Even with its disadvantages, nonprobability sampling does have reasons for usage that should be considered by researchers. B. Practical Considerations. 1). We may use nonprobability sampling procedures because they satisfactorily meet the sampling objectives. 2). Additional reasons for choosing nonprobability over probability sampling are cost and time. 3). Sometimes because of breakdowns in probability sampling application, nonprobability sampling may be the only feasible option. C. Methods. 1). Convenience. a. Convenience samplesnonprobability sample where element selection is based on ease of accessibility. 1]. Examplespools of friends and neighbors or a man in the street interview. b. While a convenience sample has no controls to ensure precision, it may still be a useful procedure. 2). Purposive Sampling. a. A nonprobability sample that conforms to certain criteria is called purposive sampling. Types are: 1]. Judgment sampling. 2]. Quota sampling. b. Judgment samplingpurposive sampling where the researcher arbitrarily selects sample units to conform to some criterion. 1]. When used in the early stages of an exploratory study, a judgment sample is appropriate. c. Quota samplingpurposive sampling in which relevant characteristics are used to stratify the sample. 1]. We use it to improve representativeness. 2]. In most quota samples, researchers specify more than one control dimension. 3]. Illustrations of types of controls: a). Precision control. b). Frequency control.

4]. Weaknesses: a). The idea that quotas on some variables assume a representativeness on others is argument by analogy. b). Controls might be outdated. c). There is a practical limit to the number of controls operating simultaneously to ensure precision. d). The choice of subjects is left to field workers to make on a judgmental basis. 5]. Despite the problems with quota sampling, it is widely used by opinion pollsters and marketing and other researchers. 6]. Advocates of quota sampling argue that while there is some danger of systematic bias, the risks are usually not that great. a). Where predictive validity has been checked (e.g., in election polls), quota sampling has been generally satisfactory. d. Snowball. 1]. Snowball samplingsubsequent participants are referred by current sample elements. 2]. The snowball gathers subjects as it rolls along. 3]. Variations on snowball sampling have been used to study drug cultures, teenage gang activities, power elites, et cetera where respondents are difficult to identify and contact. 2. HYPOTHESIS TESTING A. Having detailed your hypotheses in your preliminary analysis planning, the purpose of hypothesis testing is to determine the accuracy of your hypotheses due to the fact that you have collected sample data, not a census. 1). We evaluate the accuracy of hypotheses by determining the statistical likelihood that the data reveal true differencesnot random sampling error. 2). We evaluate the importance of a statistically significant difference by weighing the practical significance of any change that we measure. 3). Approaches: a. Classical statisticsan objective view of probability in which the hypothesis is rejected, or not, based solely on the sample data collected. 1]. The most widely used and accepted method for testing hypotheses. b. Bayesian statisticsuses subjective probability estimates based on general experience rather than on collected data. 1]. This method uses statistics and considers all other available information. a). Subjective probability estimates stated in terms of degrees of belief. b). Generally based on experience rather than on specific collected data. C. Statistical Significance. 1). Following classical statistical approaches, we accept or reject a hypothesis on the basis of sampling information alone. a. Since any sample will almost surely vary somewhat from its population, we

must judge whether the differences are statistically significant or insignificant. b. Statistical significancean index of how meaningful the results of a statistical comparison are. c. Practical significancewhen a statistically significant difference has real importance to the decision maker. D. The Logic of Hypothesis Testing. 1). In classical tests of significance, two kinds of hypotheses are used: a. Null hypothesis. b. Alternative hypothesis. 2). The null hypothesis (Ho) assumes that no difference exists between the sample parameter and the population statistic. a. Analysts usually test to determine whether there has been no change in the population of interest or whether a real difference exists. b. Why not state the hypothesis in a positive form? 1]. This type of hypothesis cannot be tested definitively. 3). The alternative hypothesis (HA) states that difference exists between the sample parameter and the population statistic to which it is compared. a. The alternative hypothesis is the logical opposite of the null hypothesis. 4). Alternative hypotheses correspond with one- and two-tailed tests. a. A two-tailed test is a nondirectional test to reject the hypothesis that the sample statistic is either greater than or less than the population parameter. b. A one-tailed test is a directional test of a null hypothesis that assumes the sample parameter is not the same as the population statistic, but that the difference can be in only one direction. 5). In testing the hypotheses described in the chapter example, adopt this decision rule: Take no corrective action if the analysis shows that one cannot reject the null hypothesis. a. It is argued that a null hypothesis can never be proved and therefore cannot be accepted. b. Statistical testing gives only a chance to: 1]. Disprove (reject). 2]. Fail to reject the hypothesis. c. If we reject a null hypothesis, then we are accepting the alternative hypothesis. d. Incorrect decisions can come from this action. 6). Type I error () is error that occurs when one rejects a true null hypothesis. a. The value is called the level of significance and is the probability of rejecting the true null. 7). Type II error () is error that occurs when one fails to reject a false null hypothesis. 8). Hypothesis testing places a greater emphasis on Type I errors than on Type II errors.

9). Type I Error. a. See chapter examples and illustrations. b. Region of rejectionarea beyond the region of acceptance set by the level of significance. c. Region of acceptancearea between the two regions of rejection or above/ below the region of acceptance at the chosen level of significance. d. Critical valuethe dividing point(s) between the region of acceptance and the region of rejection. e. If the probability of a Type I error is 5 percent ( = .05), the probability of a correct decision if the null hypothesis is true is 95 percent. 1]. By changing the probability of a Type I error, you move critical values either closer or farther away from the assumed parameter. 2]. You can also change the Type I error and the regions of acceptance by changing the size of the sample. 10). Type II Error. a. This kind of error is difficult to detect. b. The probability of committing a error depends on five factors: 1]. The true value of the parameter. 2]. The level we have selected. 3]. Whether one- or two-tailed test was used to evaluate the hypothesis. 4]. The sample standard deviation. 5]. The size of the sample. c. The power of the test is 1 minus the probability of committing a Type II error (e.g., 1 ). d. There are several ways to reduce a Type II error: 1]. We can shift the critical value closer to the original (in the example was 50); but to do this, we must accept a bigger . 2]. Increase sample size. 3]. A third method seeks to improve both and errors simultaneously and is difficult to accomplish.