Essentials of Marketing Research Kumar, Aaker, Day Chapter Four Research Design and Implementation

Essentials of Marketing Research Essentials of Marketing Research Kumar, Aaker, Day Kumar, Aaker, Day

Chapter FourChapter Four

Research Design and Research Design and ImplementationImplementation


Marketing Research Process – Part 2Marketing Research Process – Part 2

Some time ago, IBM sold of their PC division to a Some time ago, IBM sold of their PC division to a Chinese firm called Lenovo. The Chinese Chinese firm called Lenovo. The Chinese company is now offers laptop computers to the company is now offers laptop computers to the US market (originally sold by IBM under the US market (originally sold by IBM under the ThinkPad name). Lenovo has a choice:ThinkPad name). Lenovo has a choice:

1.1. Using the original Think Pad logo or Using the original Think Pad logo or

2.2. Using a newly designed logo. Using a newly designed logo.

As a market research firm, please create a As a market research firm, please create a research design for helping the company take a research design for helping the company take a decision.decision.


Background QuestionsBackground Questions

Problem:Problem: Which logo should Lenovo use?Which logo should Lenovo use? Decision alternatives:Decision alternatives: Should Lenovo go ahead with a new logo or use Should Lenovo go ahead with a new logo or use

the Think Pad logothe Think Pad logo Research ObjectiveResearch Objective To determine which logo enjoys the most positive To determine which logo enjoys the most positive

associationsassociations To determine which logo causes the greatest To determine which logo causes the greatest

willingness to buywillingness to buy


Research designResearch design

Detailed blueprint used to guide the Detailed blueprint used to guide the research study to its objectivesresearch study to its objectives

Defines research approach to be used for Defines research approach to be used for obtaining informationobtaining information


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RESEARCH DESIGN PROCESS

Research Approach

Exploratory Descriptive Causal

Choice of data collection methodSecondary, standardized, qualitative,Surveys, experimentsRole of research supplierProject designRaw data collection

Research Tactics

Develop measures, Questionnaire,Design experiments, design samplingplan, anticipate analysis


Categories of Research ApproachesCategories of Research Approaches

Causal

Exploratory

DescriptiveEach element plays a distinct and complementary role!


Exploratory ResearchExploratory Research

Used when seeking insights Used when seeking insights – Into the general nature of the problemInto the general nature of the problem– The decision alternativesThe decision alternatives– The variables to be included The variables to be included

The questions – “why” and “how” are The questions – “why” and “how” are importantimportant

The probeThe probe


Lenovo caseLenovo case

Research Objective:Research Objective: How do consumers perceive the Think Pad logo How do consumers perceive the Think Pad logo

and the new logo?and the new logo? Research Approach:Research Approach: Exploratory research to understand all Exploratory research to understand all

associations the two logos throw upassociations the two logos throw up Choice of data collection method:Choice of data collection method: Qualitative: Focus groups, in-depth interviewsQualitative: Focus groups, in-depth interviews


Exploratory Research – Another Exploratory Research – Another ExampleExample

Case 2: Levis is considered by many to be a Case 2: Levis is considered by many to be a fading brand. The company wants to fading brand. The company wants to revitalize it and would like to understand revitalize it and would like to understand why Levis does not appeal to its target why Levis does not appeal to its target demographicdemographic


Limitations of Exploratory ResearchLimitations of Exploratory Research

No hypothesis or vague or ill-defined hypothesisNo hypothesis or vague or ill-defined hypothesis– Not possible to confirm / disconfirmNot possible to confirm / disconfirm

No firm preconceptions of what will be foundNo firm preconceptions of what will be found Biased – relies too much on the interpretation of Biased – relies too much on the interpretation of

the researcherthe researcher Inaccurate recording and reportingInaccurate recording and reporting

– Technology overcomes this to a large extentTechnology overcomes this to a large extent

Limited generalizability (external invalidity)Limited generalizability (external invalidity)


Descriptive ResearchDescriptive Research

Most marketing research falls in this Most marketing research falls in this categorycategory

Greatest application: describe a marketing Greatest application: describe a marketing situationsituation

Hypothesis exist but may be tentative and Hypothesis exist but may be tentative and speculativespeculative

Can only show if two variables are Can only show if two variables are associatedassociated

May precede causal researchMay precede causal research


Limitations of Descriptive ResearchLimitations of Descriptive Research

Does not focus on the ‘why’ – understanding Does not focus on the ‘why’ – understanding phenomenaphenomena

Cannot be used for prediction and controlCannot be used for prediction and control


Lenovo CaseLenovo Case

Now that we know what associations do the two Now that we know what associations do the two logos throw up, what is our next step?logos throw up, what is our next step?

Research ObjectivesResearch Objectives:: Find out the degree of closeness of these Find out the degree of closeness of these

associations with the logosassociations with the logos Find out how favorably each association is Find out how favorably each association is

perceivedperceived Find out which logo do consumers preferFind out which logo do consumers prefer Find out if their preferences are related to their Find out if their preferences are related to their

willingness to buywillingness to buy



Why not collect this data during exploratory Why not collect this data during exploratory research?research?

What would this information be useful for?What would this information be useful for?



Research Approach:Research Approach: Descriptive ResearchDescriptive Research Choice of data collection methodChoice of data collection method:: SurveysSurveys Which variables do we measure?Which variables do we measure? Closeness of association with logoCloseness of association with logo Favorability of associationFavorability of association Preferences for logoPreferences for logo Willingness to buyWillingness to buy


Descriptive Research examplesDescriptive Research examples

Owners who like SUVs are the most vocal Owners who like SUVs are the most vocal about high gas pricesabout high gas prices

Americans who frequently travel abroad are Americans who frequently travel abroad are more accepting of higher gas pricesmore accepting of higher gas prices

What is the market size of regular coffee What is the market size of regular coffee drinkers?drinkers?

What are the preference levels for coffee What are the preference levels for coffee and tea?and tea?



Now that we know the preferences for each logo, Now that we know the preferences for each logo, and their willingness to buy, what should our next and their willingness to buy, what should our next step be?step be?

Research Objective:Research Objective: Confirm that it is the preference for the brand logo Confirm that it is the preference for the brand logo

ONLYONLY that causes the willingness to buy that causes the willingness to buy Hypothesis:Hypothesis: Consumer preference for the Think Pad logo is Consumer preference for the Think Pad logo is

positively related to their willingness to buy the positively related to their willingness to buy the productproduct


Some more causal research Some more causal research HypothesesHypotheses

Attitude to SUVs is negatively related to high Attitude to SUVs is negatively related to high gas price acceptabilitygas price acceptability

Greater frequency of travel abroad is Greater frequency of travel abroad is positively related to acceptability of high gas positively related to acceptability of high gas pricesprices

Greater awareness of American culture is Greater awareness of American culture is positively related to Starbucks acceptabilitypositively related to Starbucks acceptability


Causal ResearchCausal Research

Shows that one variable causes or determines the Shows that one variable causes or determines the value of another variablevalue of another variable

Hence controlling one variable can help control the Hence controlling one variable can help control the otherother

Causality can be inferred only if:Causality can be inferred only if:1. Evidence of a strong association between the predictor 1. Evidence of a strong association between the predictor

and dependent variablesand dependent variables2. The predictor variable precedes the dependent variable 2. The predictor variable precedes the dependent variable

in timein time3. Other rival explanations are ruled out3. Other rival explanations are ruled out Hypothesis stated very specifically in terms of Hypothesis stated very specifically in terms of

variables and quantity or directionvariables and quantity or direction


Exploratory / Descriptive / CausalExploratory / Descriptive / Causal

ExploratoryExploratory DescriptiveDescriptive CausalCausal

Seek InsightsSeek Insights Describe a marketing Describe a marketing situationsituation

Establish predictive Establish predictive relationshipsrelationships

Broad research Broad research questionsquestions

Specific research Specific research questionsquestions

No research No research questionsquestions

No hypothesesNo hypotheses Hypotheses with 1 / 2 Hypotheses with 1 / 2 variables and variables and direction specifieddirection specified

Only hypotheses with Only hypotheses with 2 variables and 2 variables and direction specifieddirection specified

Hypotheses with 2 Hypotheses with 2 variables can only variables can only confirm associationsconfirm associations

Hypotheses with 2 Hypotheses with 2 variables can confirm variables can confirm predictive powerpredictive power

Results feed into Results feed into descriptive / causaldescriptive / causal

Results may feed into Results may feed into causal researchcausal research


Experimental DesignsExperimental Designs

Designs to infer causalityDesigns to infer causality Aid understanding (“why”) of phenomenaAid understanding (“why”) of phenomena Allows prediction and controlAllows prediction and control The observation – “O”; and exposure or The observation – “O”; and exposure or

manipulation – “X”manipulation – “X”– If “X” really does cause “O” then the experiment If “X” really does cause “O” then the experiment

has internal validityhas internal validity– If there is a question then we may have If there is a question then we may have

Plausible Rival Explanations (PRE)Plausible Rival Explanations (PRE)


Some PRE for the Lenovo caseSome PRE for the Lenovo case

Pre-existing knowledge of company and its Pre-existing knowledge of company and its country of origin may influence willingness to buycountry of origin may influence willingness to buy

The product design (looks/feel) may influence The product design (looks/feel) may influence willingness to buywillingness to buy

Consumers knowledge of computers / computing Consumers knowledge of computers / computing may influence willingness to buymay influence willingness to buy

Consumers attitude to computers may influence Consumers attitude to computers may influence willingness to buywillingness to buy

Consumers ease with computers may influence Consumers ease with computers may influence willingness to buywillingness to buy


Example – Exp. DesignsExample – Exp. Designs

Carnival Cruise Lines known for its “party” Carnival Cruise Lines known for its “party” image wants to attract the family crowd and image wants to attract the family crowd and makes a new commercial showing good, makes a new commercial showing good, clean fun for families.clean fun for families.

Assume we want to measure the impact of Assume we want to measure the impact of the commercial on a subject’s attitude to the commercial on a subject’s attitude to Carnival Cruise linesCarnival Cruise lines

Basic experimental design: X OBasic experimental design: X O


Some problems with the X O designSome problems with the X O design

Subject’s pre-existing attitude towards Subject’s pre-existing attitude towards Carnival CL may have influenced the Carnival CL may have influenced the subject (History effects)subject (History effects)

The subject may have matured since the The subject may have matured since the manipulation (Maturation effects) – manipulation (Maturation effects) – especially important for quasi-experimentsespecially important for quasi-experiments

Some subjects may be afraid of sailing and Some subjects may be afraid of sailing and water (Selection effects)water (Selection effects)


An improvement over the X O designAn improvement over the X O design

O X O O X O Which effects have been controlled?Which effects have been controlled? History effectsHistory effects Continued ProblemsContinued Problems The subject may have matured between the two The subject may have matured between the two

observations (Maturation Effects) – important in observations (Maturation Effects) – important in quasi experimentsquasi experiments

Some subjects still afraid of water (selection Some subjects still afraid of water (selection effects)effects)


An improvement over the OXO An improvement over the OXO designdesign

O X OO X O

O OO O Which additional effects have been controlled Which additional effects have been controlled

here?here? Maturation effectsMaturation effects Continued ProblemsContinued Problems Selection effects: the subjects in one group may Selection effects: the subjects in one group may

be more afraid of water than the other groupbe more afraid of water than the other group


More improvement…More improvement…

Further improvementFurther improvementO X OO X O

RARAO OO O

Random Assignment (RA) neutralizes selection Random Assignment (RA) neutralizes selection effectseffects

The design now controls history, maturation and The design now controls history, maturation and selection effectsselection effects



What experimental design best controls for What experimental design best controls for the PRE’s?the PRE’s?

RARA

Design now controls for History, Maturation Design now controls for History, Maturation and selection effectsand selection effects

O1 X O1

O2 X O2

Oc Oc

Laptop with Think Pad logo

Laptop with new logo

Laptop with no logo


Exploratory/Descriptive/Causal? Exploratory/Descriptive/Causal? Choice of data collection method?Choice of data collection method?

Case 1: To understand what do consumers Case 1: To understand what do consumers think about BMW the brandthink about BMW the brand

Case 2: To understand if Vioxx really Case 2: To understand if Vioxx really increases the risk of heart attacksincreases the risk of heart attacks

Case 3: To understand if consumers read Case 3: To understand if consumers read nutrition labels on foodstuffsnutrition labels on foodstuffs


Exploratory/Descriptive/Causal? Exploratory/Descriptive/Causal? Choice of data collection method?Choice of data collection method?

Case 4: To understand if an ad has the Case 4: To understand if an ad has the desired effectdesired effect

Case 5: To know what is the size of the Case 5: To know what is the size of the coffee market in the UScoffee market in the US

Case 6: To know if the drop in prices has Case 6: To know if the drop in prices has increased salesincreased sales

Case 7: To know what people understand Case 7: To know what people understand by “convergence of technologies”by “convergence of technologies”

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Essentials of Marketing Research Kumar, Aaker, Day Chapter Four Research Design and Implementation