Slide 3.1

Near East UniversityNear East University

MARKETING RESEARCHMARKETING RESEARCH

MARK 401MARK 401

Understanding TheUnderstanding The Marketing ResearchMarketing Research ProcessProcessDefining the marketing research problem and developing a research approachDefining the marketing research problem and developing a research approach

SESSIONSESSION 33

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Near East UniversityNear East University

MARKETING RESEARCHMARKETING RESEARCH

MARK 401MARK 401

Understanding TheUnderstanding The Marketing ResearchMarketing Research ProcessProcessDefining the marketing research problem and developing a research approachDefining the marketing research problem and developing a research approach

SESSIONSESSION 33

Rana SerdarogluSource:Malhotra and Birks, et al. Chp 2

Dr Eric Shiu lecture notes

Slide 3.2

Chapter outlineChapter outline

1) Marketing research process2) Research design classification3) Descriptive Research

a) Cross-sectional designb) Longitudinal designc) Relative advantages and disadvantages of longitudinal and cross-sectional

designs4) Causal research5) Relationships between exploratory, descriptive, and causal research6) Potential sources of error in research designs

a) Random sampling errorb) Non-sampling error

i. Non-response errorii. Response error

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

1) Marketing research process2) Research design classification3) Descriptive Research

a) Cross-sectional designb) Longitudinal designc) Relative advantages and disadvantages of longitudinal and cross-sectional

designs4) Causal research5) Relationships between exploratory, descriptive, and causal research6) Potential sources of error in research designs

a) Random sampling errorb) Non-sampling error

i. Non-response errorii. Response error

Steps in marketing researchprocess

1.Define marketing research problem2.Develop research approach3.Develop research design4.Carry out fieldwork5.Prepare and analyze data6.Prepare report and present

Steps in marketing researchprocess

1.Define marketing research problem2.Develop research approach3.Develop research design4.Carry out fieldwork5.Prepare and analyze data6.Prepare report and present

Step 1: Define the marketing researchproblem

If you want to design and conduct the marketingresearch properly you should define marketingresearch problem properly

THINK: You have a toothache; If dentist do not definewhich tooth has bruise, the treatment will not end yourpain.

CONS;Preoccupied with the symptomsDefining too broadly or too narrowlyUnfamiliarity with the environment in whichmarketing research problem is to be defined

Step 1: Define the marketing researchproblem

If you want to design and conduct the marketingresearch properly you should define marketingresearch problem properly

THINK: You have a toothache; If dentist do not definewhich tooth has bruise, the treatment will not end yourpain.

CONS;Preoccupied with the symptomsDefining too broadly or too narrowlyUnfamiliarity with the environment in whichmarketing research problem is to be defined

HOW TO DEFINE A MARKETING RESEARCHPROPLEM

WHAT IS THE CAUSE?GENERAL TERMS OF THE CAUSES? WHAT ARETHE COMPONENETS?UNDERSTAND THE ENVIRONMENT

COMMUNICATION, COMMUNICATION,COMMUNICATION HOW…?

RESEARCH BRIEFQUALITATIVE INTERVIEWS

ANAYSIS OF REDILY AVAILABLE SECONDARY DATA

HOW TO DEFINE A MARKETING RESEARCHPROPLEM

WHAT IS THE CAUSE?GENERAL TERMS OF THE CAUSES? WHAT ARETHE COMPONENETS?UNDERSTAND THE ENVIRONMENT

COMMUNICATION, COMMUNICATION,COMMUNICATION HOW…?

RESEARCH BRIEFQUALITATIVE INTERVIEWS

ANAYSIS OF REDILY AVAILABLE SECONDARY DATA

Step 2: Define Research Approach

Results of the research approach developmentprocess should comprise any of the four component:

1.Objective/Theoretical framework2.Analytical model3.Research question4.Hypothesis

Ex: Rolex is considering advertising its products on flyers make itto be considered as a ‘down market’ for its high status brand.Three hypothesis:Rolex is perceived to be an expensive brandUsers of Rolex have high-than-avarage incomesUsers of Rolex see the products as presence of their status.

Step 2: Define Research Approach

Results of the research approach developmentprocess should comprise any of the four component:

1.Objective/Theoretical framework2.Analytical model3.Research question4.Hypothesis

Ex: Rolex is considering advertising its products on flyers make itto be considered as a ‘down market’ for its high status brand.Three hypothesis:Rolex is perceived to be an expensive brandUsers of Rolex have high-than-avarage incomesUsers of Rolex see the products as presence of their status.

Step 3: Research design

There are a huge array of alternativeresearch designs that can satisfy researchobjectives. The key is to create a designthat enhances the value of the informationobtained, whilst reducing the cost ofobtaining it.

Slide 3.7

There are a huge array of alternativeresearch designs that can satisfy researchobjectives. The key is to create a designthat enhances the value of the informationobtained, whilst reducing the cost ofobtaining it.

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Slide 3.8

Research design definitionResearch design definition

A research design is a framework or blueprint for

conducting the marketing research project. It details

the procedures necessary for obtaining the

information needed to structure or solve marketing

research problems.

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

A research design is a framework or blueprint for

conducting the marketing research project. It details

the procedures necessary for obtaining the

information needed to structure or solve marketing

research problems.

Research design from the marketer’sperspective

• Accurate• Current• Sufficient• Available• Relevant

• Accurate• Current• Sufficient• Available• Relevant

Figure 3.1 Responses to interviewing

Figure 3.2 Understanding respondents – to help choose optimum research techniques

Figure 3.3 A classification of marketing research designs

Summary of the uses of exploratoryresearch designs

• Background information• Formulate hypotheses• Concept identification• Screening• Salient behaviour and attitude patterns• Belief and attitude structures• Explore statistical differences• Sensitive issues• Difficult to articulate• Data mine

• Background information• Formulate hypotheses• Concept identification• Screening• Salient behaviour and attitude patterns• Belief and attitude structures• Explore statistical differences• Sensitive issues• Difficult to articulate• Data mine

Summary of the uses of conclusiveresearch designs

• Describe relevant groups• Percentage exhibiting behaviour• Counting frequencies• Representing larger populations• Integrate findings from different sources• Perceptions of products and services• Compare findings over time• Measure in a consistent manner• Determine association among variables• To make specific predictions

• Describe relevant groups• Percentage exhibiting behaviour• Counting frequencies• Representing larger populations• Integrate findings from different sources• Perceptions of products and services• Compare findings over time• Measure in a consistent manner• Determine association among variables• To make specific predictions

Slide 3.15

•Information needed may beloosely defined•Research process is flexible,unstructured and may evolve•Samples are small•Data analysis can be qualitativeor quantitative

Table 3.1Table 3.1 Differences between exploratory and conclusive researchDifferences between exploratory and conclusive research

• Information needed is clearly defined• Research process is formal and

structured• Sample is large and aims to be

representative• Sample is large and aims to be

representative• Data analysis is quantitative

Characteristics

To test specific hypotheses and examinerelationships

To measure

To provide insights andunderstanding of the nature ofmarketing phenomena

To understand

Objectives

ConclusiveExploratory

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Can be used in their own rightMay feed into conclusive researchMay illuminate specific conclusive

findings

•Information needed may beloosely defined•Research process is flexible,unstructured and may evolve•Samples are small•Data analysis can be qualitativeor quantitative

•Expert surveys•Pilot surveys•Secondary data•Qualitative interviews•Unstructured observations•Quantitative exploratorymultivariate methods

• Surveys• Secondary data• Databases• Panels• Structured observations• Experiments

Methods

Can be used in their own rightMay feed into exploratory researchMay set a context to exploratory findings

Findings/results

• Information needed is clearly defined• Research process is formal and

structured• Sample is large and aims to be

representative• Sample is large and aims to be

representative• Data analysis is quantitative

Slide 3.16

CrossCross--sectional designssectional designs

Involve the collection of information from any given sample ofpopulation elements only once.

In single cross-sectional designs, only one sample ofrespondents and information is obtained from this sample onlyonce.

In multiple cross-sectional designs, there are two or moresamples of respondents, and information from each sample isobtained only once. Often, information from different samples isobtained at different times.

Cohort analysis consists of a series of surveys conducted atappropriate time intervals, where the cohort serves as the basic unitof analysis. A cohort is a group of respondents who experience thesame event within the same time interval.

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Involve the collection of information from any given sample ofpopulation elements only once.

In single cross-sectional designs, only one sample ofrespondents and information is obtained from this sample onlyonce.

In multiple cross-sectional designs, there are two or moresamples of respondents, and information from each sample isobtained only once. Often, information from different samples isobtained at different times.

Cohort analysis consists of a series of surveys conducted atappropriate time intervals, where the cohort serves as the basic unitof analysis. A cohort is a group of respondents who experience thesame event within the same time interval.

Slide 3.17

Longitudinal designsLongitudinal designs

A fixed sample (or samples) of population elements ismeasured repeatedly on the same variables.

A longitudinal design differs from a cross-sectional design inthat the sample or samples remain the same over time.

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

A fixed sample (or samples) of population elements ismeasured repeatedly on the same variables.

A longitudinal design differs from a cross-sectional design inthat the sample or samples remain the same over time.

Slide 3.18

Uses of casual researchUses of casual research

To understand which variables are the cause (independentvariables) and which variables are the effect (dependentvariables) of a phenomenon.

To determine the nature of the relationship between thecausal variables and the effect to be predicted.

Method: experiments

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

To understand which variables are the cause (independentvariables) and which variables are the effect (dependentvariables) of a phenomenon.

To determine the nature of the relationship between thecausal variables and the effect to be predicted.

Method: experiments

Slide 3.19

CrossCross--sectional vs. Longitudinalsectional vs. Longitudinal

Samplesurveyed

at T1

Samesample

alsosurveyed

at T2

Cross-sectionaldesign

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Samplesurveyed

at T1

Samesample

alsosurveyed

at T2

T1 T2

Longitudinaldesign

Time

Slide 3.20

Relative advantages and disadvantages ofRelative advantages and disadvantages oflongitudinal and crosslongitudinal and cross--sectional designssectional designs

Evaluationcriteria

Cross-sectionaldesign

Longitudinaldesign

Detecting changeLarge amount of data collectionAccuracy

---

+++

Evaluation Cross-sectionaldesign

Longitudinaldesign

Detecting changeLarge amount of data collectionAccuracy

---

+++

Evaluationcriteria

Cross-sectionaldesign

Longitudinaldesign

Detecting changeLarge amount of data collectionAccuracy

---

+++

Evaluation Cross-sectionaldesign

Longitudinaldesign

Detecting changeLarge amount of data collectionAccuracy

---

+++

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Large amount of data collectionAccuracyRepresentative samplingResponse bias

--++

++--

Note: A ‘+’ indicates a relative advantage over the otherdesign, whereas a ‘-’ indicates a relative disadvantage.

Large amount of data collectionAccuracyRepresentative samplingResponse bias

--++

++--

Note: A ‘+’ indicates a relative advantage over the otherdesign, whereas a ‘-’ indicates a relative disadvantage.

Large amount of data collectionAccuracyRepresentative samplingResponse bias

--++

++--

Note: A ‘+’ indicates a relative advantage over the otherdesign, whereas a ‘-’ indicates a relative disadvantage.

Large amount of data collectionAccuracyRepresentative samplingResponse bias

--++

++--

Note: A ‘+’ indicates a relative advantage over the otherdesign, whereas a ‘-’ indicates a relative disadvantage.

Slide 3.21

CrossCross--sectional data may notsectional data may notshow changeshow change

Brand purchased Time periodPeriod 1 Period 2survey survey

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Brand A 200 200Brand B 300 300Brand C 500 500Total 1000 1000

Slide 3.22

Longitudinal data may showLongitudinal data may showsubstantial changesubstantial change

Brandpurchasedin period 1

Brand purchased in period 2

Brand A Brand B Brand C Total

Naresh Malhotra and David Birks, Marketing Research, 3rd Edition, © Pearson Education Limited 2007

Brandpurchasedin period 1Brand ABrand BBrand CTotal

1002575

200

50100150300

50175275500

2003005001000

Table 3.4 Consumption of soft drinks by various age cohorts (Percentage consuming on a typical day)

Figure 3.5 Potential sources of error in research designs

3. Carry out fieldwork4. Prepare and analyze data5. Prepare report and present

HOW IS YOUR GROUP PROJECTPROCESS????

3. Carry out fieldwork4. Prepare and analyze data5. Prepare report and present

HOW IS YOUR GROUP PROJECTPROCESS????