Step 3: Research Design Formulation

A research design is a framework or blueprint for conducting the marketing research program. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems. This ensures the effectiveness and efficiency of the research project.

Research Design
Exploratory Conclusive

Secondary Data

Qualitative Research

Descriptive

Causal

Cross-Sectional Design

Longitudinal Design

Single Cross-Sectional Design

Multiple Cross-Sectional Design

Differences between Exploratory and Conclusive Research

Objective: Exploratory To provide insights and understanding Conclusive To test specific hypotheses and examine relationships Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative.

Characteristics: Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and non-representative. Analysis of primary data is qualitative.

Findings: Outcome:

Exploratory Tentative Generally followed by further exploratory or conclusive research.

Conclusive Conclusive Findings used as input into decision making.

Exploratory Research
Formulate a problem  Identify alternative courses of action  Develop hypotheses  Isolate key variables and relationships for further examination  Gain insights for approach development to the problem  Establish priorities for further research


Descriptive Research
    

Describe the characteristics of relevant groups Estimate the %age of units in a specified population exhibiting a certain behavior Determine the perceptions of product characteristics Determine the degree to which marketing variables are associated Make specific predictions

Examples of D.R.
       

Market studies Market share studies Sales analysis studies Image studies Product usage studies Distribution studies Pricing studies Advertising studies

Potential Sources of Errors

Total Error

Random Sampling Response

Non- Sampling Non-Response

Researcher
Surrogate information Measurement Population Definition Sampling Frame Data Analysis

Interviewer
Respondent Selection Questioning Recording Cheating

Respondent

Inability Willingness

Total Error The variation between the true mean value in the population of the variable of interest and the observed mean value obtained in the marketing research project. Ex: annual income of target population based on latest census records against the figures as obtained from a marketing research project based on a sample survey.

Random Sampling Error The error due to the particular sample selected being an imperfect representation of the population of interest. It may be defined as the variation between the true mean value for the sample and the true mean value of the population. Non-Sampling Error This can be attributed to sources other than sampling and they may be random or nonrandom.

Non-response Error A type of non-sampling error that occurs when some of the respondents included in the sample do not respond. This will cause the net or resulting sample to be different in size or composition from the original sample. Response Error This arises from respondents who do respond but give inaccurate answers or their answers are misrecorded or misanalyzed.

Surrogate Information Error Variation between the information needed for the marketing research problem and the information sought by the researcher. Example: information on consumer choice of a new brand against information on consumer preferences. Measurement Error While seeking to measure consumer preferences, the researcher employs a scale that measures perceptions than preferenccs.

Population Definition Error

The variation between the actual population relevant to the problem at hand and the population as defined by the researcher. Example: population of the affluent households

Sampling Frame Error

The variation between the population defined by the researcher and the population as implied by the sampling frame used. Example: the telephone directory used to generate a list of numbers doesnt accurately represent the population of the potential customers because of unlisted, disconnected and new numbers in service.

Data Analysis Error Errors that occur while raw data from questionnaires are transformed into research findings. Respondent Selection Error This occurs when interviewers select respondents other than those specified by the sampling design. Example: in a readership survey, a non-reader is selected for the interview classified as a reader of The Wall Street Journal in the 15-19 years category in order to meet a difficult quota requirement.

Questioning Error Denotes error made when more information is needed to be probed. Also, when asking questions the interviewer does not use the exact wording as required. Recording Error This arises due to errors in hearing, interpreting, and recording the answers given by the respondent.

Cheating Error Answers are fabricated to a part or all of the interview. Inability Error Respondents may provide inaccurate answers because of unfamiliarity, fatigue, boredom, faulty recall, question format, question content and others Unwillingness Error Respondents misreport their answers because of a desire to provide socially accepted answers, avoid embarrassment, or please the interviewer.

Elements of Marketing Research Proposal  Executive Summary  Background  Problem Definition/Objectives of the Research  Approach to the Problem  Research Design  Fieldwork/Data Collection  Data Analysis  Reporting  Cost and Time  Appendices

Exploratory

Secondary Data

Qualitative Research

Primary data Collection purpose Collection process Collection cost Collection time For the problem at hand Very involved High Long

Secondary data For other problems Rapid and easy Relatively low Short

Advantages of secondary data

Identify the problem  Better define the problem  Develop an approach to the problem  Formulate an appropriate research design  Answer certain research questions and test some hypotheses  Interpret primary data more insightfully


Disadvantages of secondary data

Usefulness to current problem is limited  Relevance  Not current  Accuracy  Dependability


Internal secondary data

       

Sales by product line Sales by major departments Sales by specific stores Sales by geographic regions Sales by cash versus credit purchases Sales in specific time periods Sales by size of purchase Sales trends

External secondary data



Published materials guides, directories, indexes, statistical data, census data, govt publications Computerized databases online, internet, offline Syndicated Services psychographic and lifestyles, advertising evaluation, electronic scanner services, corporate reports, media panels, wholesalers and retailers audit, direct inquiries

Qualitative research
Objective: to gain an understanding of the underlying reasons and motivations. Sample: small number of non-representative cases Data collection: unstructured Data analysis: non-statistical Outcome: develop an initial understanding

Quantitative research
Objective: to gather data and generalize the results from the sample to the population of interest Sample: large number of representative cases Data collection: structured Data analysis: statistical Outcome: recommend a final course of action

Qualitative Research Non-disguised

fgd Depth interviews

Disguised
Projective Techniques

Association Techniques

Completion Techniques

Construction Techniques

Expressive Techniques

Analysis of Qualitative Data



Data reductionresearcher chooses which aspects of the data are emphasized or to be set aside Data display researcher develops a visual interpretation of the data through graphs, diagrams, charts, or matrix Conclusion drawing and verification researcher considers the meaning of analyzed data and assesses its implications for the research question.

The Descriptive Research Design: Survey and Observation

Survey method of obtaining information is based on the questioning of respondents. Questions are based on: 1. Behavior 2. Intentions 3. Attitudes 4. Awareness 5. Motivations 6. Demographics 7. Lifestyles

Survey methods
Telephone interviewing  Personal interviewing: in-home, mall intercept, computer-assisted (capi)  Mail interviewing  Electronic interviewing: e-mail, internet


Factors to consider for survey methods

           

Flexibility of data collection Diversity of questions Use of physical stimuli Sample control Control of data collection environment Quantity of data Response rate Perceived anonymity Social desirability Potential for bias Speed cost

Observation methods are the second type of methodology used in descriptive research. Observation involves recording the behavioral patterns of people, objects, and events in a systematic matter to obtain information about the phenomenon of interest. This can either be structured or unstructured, direct or indirect, natural or contrived environment.

Classifications of observation methods

Personal observation  Mechanical observation  Audit  Content analysis  Trace analysis


Personal Observation A researcher observes actual behavior as it occurs. The observer merely records what takes place. Ex: traffic counts and traffic flows Mechanical Observation Mechanical devices, rather than human observers, record the phenomenon observed. Ex: turnstiles, audimeters

Audit The researcher collects data by examining physical records or performing inventory analysis. Ex: pantry audits Content Analysis This is the objective, systematic, and quantitative description of the manifest content of a communication. Ex: analysis of messages of advertisements, newspaper articles, television and radio programs (frequency of appearance of blacks, women, and members of other minority groups in mass media)

Trace Analysis An approach in which data collection is based on physical traces, or evidence of past behavior. Ex: Charge card slips

Questionnaire and Form Design

Objectives
It must translate the information needed into a set of specific questions that the respondents can and will answer  It must uplift, motivate, and encourage the respondent to become involved in the interview, to cooperate, and to complete the interview  It should minimize the response error


Questionnaire Design Process

Specify the information needed Specify the type of interviewing method Determine the content of individual questions Design the questions to overcome inability and unwillingness to answer Decide on the question structure

Determine the question wording Arrange the questions in proper order Identify the forms and layout Reproduce the questionnaire Eliminate bugs by pre-testing

Specify the information needed

It is important to have a clear idea of the target population. The characteristics of the respondent group have a great influence on questionnaire design. The more diversified the respondent group, the more difficult it is to design a single questionnaire that is appropriate for the entire group.

Type of interviewing method

An appreciation of how the type of interviewing method influences questionnaire design can be obtained by considering how the questionnaire is administered under each method. In personal interviews, respondents see the questionnaire and interact face to face with the interviewer. For others, there are its advantages and disadvantages as well.

Type of interviewing method

Mail Questionnaire
Store Jollibee Chowking Mcdonalds Greenwich Pizza Hut Burger King Inasal Binalot KFC Rank Order ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________

Telephone Questionnaire
Store not so preferred greatly preferred

Jollibee Chowking Mcdonalds Greenwich Pizza Hut Burger King Inasal Binalot KFC

1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

Personal Questionnaire
Name of the store 1. 2. 3. 4. 5. 6. 7. 8. 9. 10

Individual Question Content

Is the question necessary? At times, certain questions may be duplicated for the purpose of assessing reliability or validity.  Are several questions needed instead of one? Do you think Coca-Cola is a tasty and refreshing soft drink? Why do you shop at Rustans?

These are examples of incorrect questions because Q1 is a doublebarreled question while Q2 is an example of multiple questions embedded in a single question.

Overcoming inability to answer

 

Is the respondent informed? Can the respondent remember? What were you doing a month ago at noon? What did you have for lunch last Monday? Can the respondent articulate? Ex: Describe the ambience of a department store that you will most likely patronize.

Overcoming unwillingness to answer

Effort required of the respondents Context Legitimate Purpose Sensitive Information

Choosing Question Structure

Unstructured Questions- open-ended questions that respondents answer in their own words. Ex: What is your occupation? What do you think of people who patronize discount dept stores? Structured Questions- specify the response alternatives and response format. Ex: Multiple Choice Questions Do you intend to buy a new car within the year? ___ definitely will not buy ___ probably will not buy ___ undecided ___ probably will buy ___ definitely will buy ___ other (please specify) Dichotomous Questions Do you intend to buy a new car within the year? ___yes ___no ___dont know

Scales Do you intend to buy a new car within the year? Definitely will not buy 1 Probably will not buy 2 Undecided 3 Probably will buy 4 Definitely will buy 5

Choosing question wording

This is the translation of the desired question content and structure into words that respondents can clearly and easily understand. Define the Issue in terms of the 6ws (who, what, when, where, why, and way) Which brand of shampoo do you use? (incorrect)

On the surface, this may sound well-defined. Who in this question refers to the respondent. It is not clear, however, whether the researcher is referring to the brand that the respondent uses personally or the brand used by the household. What is the brand of shampoo. However, what if more than one brand of shampoo is being used? When is not clear; does the researcher mean last time, last week, last month or ever? Where is implied that it is used at home.

(correct) Which brand or brands of shampoo have you personally used at home during the last month? In case of more than one brand, please list all the brands that apply.

6Ws
Who: purchasers, males, females, parents with children, children alone, browsers What: products/brands, size, price of package, influence of children When: day, hour, date of observation Where: inside the store, checkout counter Why: influence of price, brand name, promotion Way: observer disguised as sales clerk, undisguised personal observer, hidden camera

Use Ordinary Words the vocabulary should match the level of the respondents. Do you think the distribution of soft drinks is adequate? (incorrect) Do you think soft drinks are readily available when you want to buy them? (correct)

Use Unambiguous Words words used should have a single meaning. Avoid terms like frequently, usually, often, regularly, sometimes, and occasionally. In a month, how often do you watch movies? ___Never ___Sometimes ___Often ___Regularly ___Occasionally (incorrect) In a month, how often do you watch movies? ___Less than once ___1 or 2 times ___3 or 4 times ___More than 4 times (correct)

Avoid Leading or Biasing Questions Do you think a patriotic Filipino should bet on the opponent of Manny Pacquiao even if he was sick on a fight night? (incorrect) Do you think that a Filipino should bet on the opponent of Manny Pacquiao even if his opponent is stronger? (correct)

Avoid Implicit Alternatives Do you like to fly when traveling short distances? (incorrect) Do you like to fly when traveling short distances, or would you rather drive? (correct)

Avoid Implicit Assumptions Are you in favor of a balanced diet? (incorrect) Are you in favor of a balanced diet if it would result to your weight increase? (correct)

Avoid Generalizations and Estimates What is the annual per capita expenditure on groceries in your household? (incorrect) .break the question into two What is the monthly (or weekly) expenditure in your household? and How many members are there in your household? (correct)

Determining the Order of Questions

Opening Questions The opening question can be crucial in gaining the confidence, attention and cooperation of the respondents. It should be nonthreatening in nature. Questions soliciting opinions will be very good examples of opening questions. Type of Information (3) Basic information- relates directly to the problem. Classification information- consist of socioeconomic and demographic characteristics, used to classify the respondents and understand the results. Identification information- includes name, address and telephone numbers. This is used to verify if interview was really done.

Effect on Subsequent Questions As a rule of thumb, general questions should precede specific questions to avoid influences and biases. Going from general to specific is called the funnel approach. Q1: What considerations are important to you in selecting a department store? Q2: In selecting a department store, how important is convenience of location?

Logical Order All questions that deal with a particular topic should be asked before beginning a new topic

Form and Layout

It is important to subdivide questionnaire into several parts. These parts will include, but not limiting to: qualifying questions, information on familiarity, frequency of occurrence, choice criteria, preference, relative importance of the choice criteria, preference rankings, information on lifestyles, standard demographic and identification information. Division by parts provides natural transitions. It also alerts the interviewer and respondents that, as each part begins, a different kind of information is being solicited.

Reproduction of the Questionnaire

    

Good quality paper and professional appearance When it runs to several pages, a booklet form is needed Sideways splitting and formatting to conserve space should be avoided Overcrowded questions with little blank space between can lead to errors in data collection Space for respondents to answer should not be tight

Pretesting
This refers to the testing of the questionnaire on a small sample of respondents to eliminate and identify potential problems. Pretests are best done by personal interviews because the attitudes and behaviors of the respondents can be observed. A pretest should involve administering the questionnaire in an environment and context similar to that of the actual survery

Step 5: Data Preparation and Analysis

DataData-Preparation Process
Preparing Preliminary Plan of Data Analysis formulated in the research design phase

Questionnaire Checking made for checking completeness and quality

Editing review to increase accuracy and precision

Coding assignment of number to each response

Transcribing transfer of coded data to computers

Data Cleaning thorough check for consistency

Statistically Adjusting the Data Assignment of weights for respondents; scale transformations Selection of Data Analysis Strategy Based on market research process, known characteristics of data, properties of statistical techniques and the background and philosophy of the researcher.

Step 6: Report Preparation and Presentation

Importance
   

They are tangible products of the research effort Management decisions are guided by these reports and presentations Involvement of marketing managers in the project is limited to these reports and presentations Managements decision to undertake marketing research in the future or to use the particular research provider again will be influenced by the perceived usefulness of it.

Report Format
I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII.

Title page Letter of Transmittal Letter of Authorization Table of Contents List of Tables List of Graphs List of Appendices List of Exhibits Executive Summary Problem Definition Approach to the Problem Research Design Data Analysis Results Limitation and Caveats Conclusions and Recommendations Exhibits