3. RESEARCH PROCESS AND RESEARCH DESIGN

3.1 The Nature of Marketing Research

Design

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The research process

involves1.identifying a management problem or opportunity;2.translating that problem/opportunity into a research problem;3.and collecting, analyzing, and reporting the information specified in the research problem.

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A

mangement problem

deals with decisions

managers must make.

A

research problem deals with providing information

that will help management make better decisions.

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Marketing research designis the specification of proceedures for collecting and analyzing the data necessary to help identify or react to a problem or opportunity, such that the difference between the cost of obtaining various levels of accuracy and the expected value of the information associsated with each level of accuracy is maximized.

The

specification of proceedures involve decisions on i) what information to generate, ii) the data collection method,iii) the measurement approach,iv) the object to be measured, v) and the way in which the data are to be analyzed.

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The

data are to be collected to help

identify or react to a problem or opportunity.

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All

data should relate to decisions

faced by management.

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The

efficient collection of data

relevant to a decision requires a clear definition of the problem/opportunity.

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Information has value.

Information acquires value as it helps improve decisions.

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Varying levels of accuracy

of information can be generated in response to the same problem.

Infromation accuracy is affected by the occurence of a

number of potential errors.

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Thegoal of

applied research design is not to generate the most accurate information possible. Rather, the objective is to generate the most valuable information in relation to the cost of generating the information.

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Research design

for purposes other than solving applied business problems

will have different characteristics.

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3.2

Steps in the Research Design Process

1.The steps in the design process interact and often occur simultaneously.

2.However we begin with a general order of procedures/steps.

3.These steps involve decisions in designing a research project.

4.Furthermore, there is a constant reconsiderations of earlier decisions in light of the later decisions.

1: Define the Research Problem

• Research problem definition involves specifying the information needed by management.

• Research problem definition involves four interrelated steps:

Interrelated steps

1. Management problem/opportunity clarification.

2. Situation analysis3. Model development4. Specification of information

requirements

Management Problem/Opportunity Clarification

• The basic goal of roblem/opportunity clarification is to ensure that it is the appropriate area of concern for research.

Situation Analysis

• It involves reviewing company records, appropriate secondary sources such as census data, sales figure, economic indicators, and so on;

• And interviews with knowledgeable individuals

Model Development

• A model is a description of the outcomes that are desired, the relevant variables, and the relationships of the variables to the outcomes.

Specification of Information Requirements

• Research provides information relevant to the decisions faced by the executives.

• The best approach for ensuring that any data collected is indeed relevant is to ask questions concerning the ultimate use of the data.

• Given this finding, what would the firm do?

Categories of Research

• Type of information determines the type of research.

1. Exploratory2. Descriptive3. Causal

Exploratory Research

• Discovers the general nature of the problem and the variables that relate to it. It practices a high degree of flexibility, and it tends to rely on secondary data, convenience and judgment samples.

Descriptive Research

• It focuses on the accurate description of the variables in the problem model. Consumer profile studies, market potential studies, product usage studies, attitude surveys, sales analyses, media research, and price surveys are examples of descriptive research.

• Secondary data and survey.

Causal Research

• It attempts to specify the nature of the functional relationship between two or more variables in the problem model. For example, studies on the effectiveness of advertising generally attempt to discover the extent to which advertising causes sales or attitude change.

2: Estimate the Value of Information

• Research should be conducted only when it is expected that the value of the information to be obtained will be greater than the cost of obtaining it.

3: Select the Data Collection Approach

• There are three basic data collection approaches in marketing research:

1. Secondary data 2. Survey data3. Experimental data

Secondary Research

• Utilization of data that were developed for other purposes.

• Internal secondary data: data generated within the organization itself.

• External Secondary data: data generated by the external sources

Survey Research

• Systematic collection of information directly from respondents.

1. Telephone interviews2. Mail interviews3. Personal interviews: home/intercept4. Computer interviews

Experimental Research

• The researcher manipulates one or more variables in such a way that its effect on one or more other variables can be measured.

• Laboratory experiments:–basic designs: impact of 1 variable–statistical design

Field experiments:

manipulation of independent variables in a natural situation.

Basic designs

Statistical designs

4: Select the Measurement Technique

• There are four basic measurement techniques used in marketing research:

1. Questionnaires2. Attitude scales3. Observation4. Depth interview

Questionnaire

• It is a formalized instrument for asking information directly from respondents concerning behavior, demographic characteristics, level of knowledge, and/or attitudes, beliefs, and feelings.

Attitude Scales

• It is a formalized instrument for eliciting self reports of beliefs and feelings concerning an object(s).

Observation

• The direct examination of behavior, the results of behavior, or physiological changes.

Projective Techniques and Depth Interviews

• These are designed to gather information that respondents are either unable or unwilling to provide in response to direct questioning.

• Projective techniques: express feelings• Depth interview: express with freedom

Which Method to Select

• Selection is influenced primarily by the nature of the information required and secondarily by the value of the information.

• Characteristics of the research design also determine the selection of data collection technique.

5. Select the Sample.

1. Population: who can provide the information2. Sample Frame: lsit of population members3. Sampling unit: decide the basis (ind. Blocks)4. Sampling Method: how to select sample4.1 Probability and 4.2 Non-probaility5. Smple Size: how many members to be included6. Sample Plan: method for selecting and contacting7. Execution: carry out the sampling plan

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6. Select the Method(s) of Analysis

• Data is useful only after analysis.• Data analysis involves converting a series

of recorded informations into descriptive statements and/or inference about relatioships.

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7. Evaluate the Ethics of the Research

• Individual’s right to privacy• Individual’s right to seek knowledge.• Incomplete reporting• Misleading reporting• Nonobjective research• See Chapter 23

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8. Estimate Time and Financial Requirement

• Estimate the resource requirements: T & F• The program evaluation review techinque

(PERT): involves dividing the totla research project into its smallest component activities, determining the sequence in which these activities must be performed, and attaching a time estimate for each activity. Estimates of finance must include the direct and indirect manpower cost, materials, transportation, etc.

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9. Prepare the Research Proposal

• The research design process provides the researcher with a guide for conducting and controlling the research project. This design is written in the form of a research proposal. The research proposal helps ensure that the decision maker and the researcher are still in agreement on the basic management problem, the information required, and the research approach.

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Elements of the Research Proposal

1. Excuitive Summary: a brief statement of all points

2. Background: a statement of the management problem and factors that influence it.

3. Objectives: a description of the types of the data the research project will

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generate and how these data are relevant to management problem. A statement of the value of information should generally be included.4. Research Approach: a non-technical description of data-collection method, measurement instrument, sample and analytical techniques.

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5. Time and Cost Requirements: an explanation of the time and cost s required by the planned methodology accompanied by a PERT chart.6. Technical Appendixes: any statistical or detailed information in which only one or few of the potential readers may be interested.