From, Chaithra .N Chaitra K.

 Causal Research Suggests a relationship between

cause and effect

Causal Research explores the effect of one thing on

another and more specifically, the effect of one variable on another

Example If a clothing company currently sells blue denim jeans, causal research can measure the impact of the company changing the product design to the colour white.

company bosses will be able to decide whether

changing the colour of the jeans to white would be profitable.

 causal research is a way of seeing how actions now will

affect a business in the future.

METHOD: Experiments

 Decrease in Price

Increase in Sales

This assumption might not hold good in certain competitive environments

Experiments
An experiment is defined as manipulating (changing values/situations) one or more independent variables (price ) to see how the dependent variable(s) (sales) is/are affected, while also controlling the affects of additional extraneous variables. Independent variables: those over which the researcher has control and wishes to manipulate i.e. package size, ad copy, price. Dependent variables: those over which the researcher has little to no direct control, but has a strong interest in testing i.e. sales, profit, market share. Extraneous variables: those that may effect a dependent variable but are not independent variables.

A Comparison of Basic Research Designs

Exploratory
Objective:

Descriptive

Causal
Determine cause and effect relationships

Discovery of ideas Describe market and insights characteristics or functions Flexible, versatile

Characteristics:

Often the front end of total research design Expert surveys Pilot surveys Secondary data Qualitative research

Marked by the prior Manipulation of formulation of one or more specific hypotheses independent variables Preplanned and structured design

Methods:

Secondary data Surveys Panels Observation and other data

Experiments

Experimental Design
attempts to outline the way in which experiments

should be carried out so the data gathered will have statistical value.
An experiment is valid if:
the observed change in the dependent variable is,

in fact, due to the independent variable (internal validity) if the results of the experiment apply to the real world outside the experimental setting (external validity

Experimental Designs :
Purely Post Design
Before After Design Factorial Design Latin Square Design Ex Post Facto Design

Purely Post Design

Dependent Variable is measured after exposing the

test units to the experiment variable

Example Hindustan Lever Limited Impact of Free Sample on the sale of Toilet Soaps

 Mailing of free samples to selected customers

1 month 25 p Discount
Equal number of coupons to people in another locality The coupons are coded to keep an account of number

of coupons redeemed groups 400 redeemed Coupons Experimental group 250 redeemed Coupons control Group 150 is the effect of free samples Conclusion can be drawn only after conducting Experiment

Before After Design

Measurements are made before as well as after the

experiment Example Experiment is conducted to test an advertisement which is aimed at reducing alcoholism Attitudes and Perception towards consuming alcohol are measured before exposure to advertisement Consequences and Attitudes are measured after several days

The difference if any shows the effectiveness of that advertisement

Factorial Design
Permits the researcher to test two or more variables

at same time Example Departmental store study of price reduction for a product Promotion in stores (POP) a Entrance b Price A1 Assume price levels Price A2

 Three types of POP

B1

B2

B3

6 Combinations are possible B1A1 , B1A2 , B2A1 , B2A2 , B3A1 , B3A2 - Best Combinations is selected by the researcher

Combinations B1A1 B1A2 B2A1 B2A2 B3A1 B3A2 S1 S2 S3 S4 S5

Sales

S6

Latin Square Design

Researcher chooses three shelf arrangement in three

stores Sales generated at different periods One type of Shelf arrangement is used in each store only once Here one variable is tested Example : Supermarket 3 promotions

As Follows 1. No Promotion 2. Free Sample with promotion 3.Window Display Which of these is Effective ? Outcome affected by Size of the Stores Time period 3 stores and 3 time periods = 9 Combinations

STORE

Time period 1
2 3

1 B
C A

2 C
A B

3 A
b c

Ex Post Facto Design

Experiment and Control are Identified only after they

are exposed to Experiment Example Magazine Impact of advertisement on knitting in Womens Era Periodical People read and not read were asked about Price and Design of the product The difference indicates Effectiveness of the advertisement

Types of Errors Affecting Research Design

The total error is made up of sampling error and non-sampling error. The total error is the variation between the true mean value of the population and the observed mean value obtained in the market research. E.g. If the average age of the population is 28 as per census and the market research figure indicates 23, this variation (five) is the error.

Total Error

Non Sampling error

Sampling error

Research error

Interview error

Respondents error

Surrogate information error error Measurement error Sampling frame error Data Analysis error Population definition error

Questioning error Recording error Respondent Selection error Cheating error

Inability to answer Unwillingness error

1. Non-sampling error: This is an error occuring for

reasons other than sampling.

2. Non-response error: This happens when chosen

respondents do not respond.

3. Response error: This error occurs due to

i)Misrecording ii)Inaccurate answer iii)Wrong analysis errors made by the researcher

4. Surrogate Information: It is defined as a variation

between the information needed and that sought by the researcher. 5. Measurement error: This happens due to the use of a wrong scale. 6. Population Definition error: This is the difference between the actual population and defined by the researcher. 7. Sampling Frame error: Assume that a telephone directory is used as a sampling frame.

8. Data Analysis error: This occurs when the data is transferred from the questionnaire.

9. Respondent Selection error: This occurs when the interviewer selects a respondent other than the individual is specified as a sample.
10. Questioning error: This occurs during the process of interviewing a respondent. 11. Recording error: Error in interpreting or failing to concentrate when the respondent replies.

12. Cheating error: This is because the interviewer fills the questionnaire without interviewing anybody.

13. Inability error: Inability of respondents to find exact answers 14. Unwillingness error: This may be due to the fact that the respondent wants to avoid embarrassment for the interviewer or alternatively, impress the interviewer.