CONCLUSIVE

RESEARCH

Desrciptive Research

Help make a rational decision.

Specifies the alternative to be chosen.

Clarifies the situation.

Before World War II, the American beer market was

dominated by dark, German style beers.

The

Miller Brewing co. decided to make its product

distinctive by offering a light-colored, light-weight
beer as a premium beer with higher price.

The

premium beer was designed for the affluent,

the occasional drinkers and womensold in
bottlesdrunk at homesbubbly beer.

Over

next years, the whole industry went to beer

comparable with Millers.

 Estimates

told that top 20% of the drinkers

consume 90% of the beer.

Miller

fell from fifth to eighth place in market share..

Taste

is not the only important factor in choosing

beer for American beer drinkers

Miller

investigated the American beer drinker and

discovered that the heavy users were males, and
highly concentrated in blue collar occupations,
drank at bar with friends.

Miller paid attention to the market research

and developed a new concept.

They created Miller High Life and

aggressively went after the heavy user
market..

Gradually, Miller moved up to third and then

second place to challenge Budweiser for
market leadership.

Descriptive Studies
Designed

to describe something

Characteristics of a given product

Product usage and demographics
Customers who viewed a specific television

commercial
Data

collected for a specific purpose

Finding the most potential market segment

Testing the hypothesis derived in exploratory

research

Designing Descriptive
Studies
Objective-

to obtain a complete and accurate

description of the situation.

Formal

design

To ensure extensive coverage.

To forestall collection of unnecessary data.

Precise

statement of the problem reflecting

information required
Sources of information
Data collection procedures

Types of Descriptive
Studies

Case method

Formalized

procedure as compared
to exploratory research.
Points to be investigated are definitely

known.
Analysis can approach the quantitative
analysis used with the statistical
method.

Statistical Method
Statistical

techniques used in analyzing the

data collected.

Form

simple means to percentages to

sophisticated techniques.

Study

of few factors in a large number of

cases.
Data

collected by observation or
interviewing.

Sears Discover

In early 1980s, sears entered the credit

card market with its Discover card
competition with Visa and MasterCard.
Sears goal was to have 10-12 million
Discover card accounts by the end of
1987.

Statistical studies to track the cards

progress in 1986 showed that..

 More than 7 million families carried the

Discover card.
45% of card holders had used their cards in
the previous 30 days.
One year earlier, 565 of the card holders had
used their cards in the previous 30 days.
Two third of the card holders planned to
renew their cards.
In Atlanta, 25% of the merchants that
accepted credit cards accepted the discover
card.

Statistical method
design
Present

the situation existing at a

particular point of time
Collection of data form a sample of

population of interest.
Hope

to gain ideas and plan marketing

programs
Designing a system of classifications

and cross-classification.

Ownership of personal
computers
Number

Percent

Own personal
computer
Do not own
personal
Computer

100

10

900

90

Total

1000

100

Ownership of personal
computers and presence of
teenage children

Own
personal
compute
r
Do not
own
personal
compute

Presence of Teenage
children
No teenagers
Teenagers
Total
present
Numbe percen numbe percen numbe percen
r
t
r
t
r
t
12
2
88
29
100
10

688

98

212

71

900

90

Evaluating Statistical
Method
Each

individual item tend to lose its identity

- objectivity.

Permits

researcher to make more accurate

generalizations.

Reliability

of generalizations can be
measured.

Inability

to prove cause and effect

relationships.

Seven natural Fruit Juices in

Hawaiian Punch
Hawaiian

Punch, made by RJR Foods at the

time, has been a strong brand name for some
years.

In

1971, the FTC(Federal trade Commission)

investigated possible deception in brands
advertising, which featured the catchy jingle
together with colourful photos of natural fruits.

In

reality, the brand contained only11-15% fruit

juice.

 After

extensive negotiation with FTC, RJR agreed to

place on the package and all future advertising, a
disclosure of the amount of fruit juice in the drink.

Researchers

conducted a 17 wave series of

semiannual telephone surveys, asking consumers
in Michigan about the brand.

Over

the 1974-1982 period, the proportion of

consumers who believed that the brand had 20%
or less fruit juice increased from 29%(1974) to
40% (1975) to 50%(1979), to 70%(1982).

Experimentation

Research process in which one or more

variables are manipulated under
conditions that permit the collection of
data that shows the effects, if any, of such
variables in unconfused fashion.

Laboratory v/s Field

Experiments
Laboratory-

consumers are brought to a

theater or conference room and
exposed to an a experimental variable.

Field-

the experimental variable is

taken to the field.

Famous example of Experimental Research Hawthorne Effect

In the Hawthorne experiment, researchers were studying the effect

of lighting on worker productivity. As the intensity of the factory
lights increased, so did the worker productivity.

Experimental Studies

After Only Design -One

Experimental Group
Experimental
group
Experimental
variable
introduced
After
measurement

Yes

Effect of
experimental
variable

O1 implicit
before measure

Yes (O1)

After Only Design -Two

Experimental Groups
Its

structure is like A:
B:

X 1 O1
X 2 O2

And, the effect of such a design could

be studied asYx = O2 O1

Before-After Design

Before
Measurement
Experimental
variable
introduced
After
Measurement
Effect of
experimental
variable

Experimental
Group
Yes (O1)
Yes

Yes (O2)
O2 - O1

Lab experiment- testing the

effect of television commercials
A

group of consumers in a theater

told that a lucky draw will be held;
the winner will receive Rs 10,000
worth of shampoo.

The

consumers are asked to check

on a card containing a list of major
brands they would like if they would
win.

Experimental variable
introduced
Next,

consumers are shown a 30

minute movie in which three
different commercials are
interspersed.

After

the movie, another drawing is

held.
Consumers

indicate the brand that

they want if they win this second

Analysis
The

researcher counts the number

requesting the brand promoted by
the shampoo commercial.

The

difference between the

percentage of consumers wanting
the brand in the two drawings is
used as the measure of effectiveness
of commercial.

Uncontrolled variables

History
Days,

months between the two

measurements.

The

longer the time, the greater the

danger of history confounding the
results.

Maturation
Biological/

psychological changes
that take place with the passage of
time.

Experiments

requiring elaborate
contrivances of an artificial nature.

Experiments

requiring willing
cooperation of test subjects over a
significant period of time.

Pretest
The

more artificial and the more

obvious the measurement process,
the more effect it may be expected
to have on later results.

Measurement variation
Where

interviewers are used.

Respondents

are in different
circumstances before and after
measurements.

Control group
To

improve the validity of

conclusions in a before-after design.

Similar

to experimental group.

Measured

at the same time as the

experimental group.

Before and After: Two Group

Design
Its

structure is like A:
B:

O1
O2

X O3
O4

And, the effect of such a design could

be studied asYx = (O3 - O1)- (O4 - O2)

Before measurement
(% purchasing in past
four weeks)
Experimental variable
(exposed to advertising
of products)

Experimental
group
(exposed to
advertising)
19.4%

Control
group (not
exposed to
advertising)
19.4%

Yes

No

After measurement (%
20.5%
16.9%
purchasing in past four
weeks at time of second
interview)
Effect of experimental
= (20.5% - 19.4%) (16.9%variable
19.4%)

Mortality
Loss

of some test subjects between

the before and after
measurements.

Experimental

group to keep a diary

of certain activities, many may
become disinterested, may drop out
and cause variation.

Interaction effect
Consumers

may become more aware of

the product and be more influenced by
advertising.

Before

test may crystallize the opinions

of people interviewed and reduce the
influence of advertising.

Four Group Design/Solomon

Four Group Design
To

overcome the difficulties of before

measurement, where there is
interaction between the respondent
and questioning process.

Four group- Six study design

It is a combination of Posttest and Pre Test-Post Test

Designs and its structure is like

A:
O1 X O3
B: O2
O4
C:
X O5
D:
O6
And, the effect of such a design could be studied
asYx = (O3 - O1)- (O4 - O2)
But, interpretations should be adjusted to (O 5 O3) for test and (O6 - O4) for control.

After only with control

group
Before
measureme
nt
Experiment
al variable
After
measureme
nt
Effect of
experiment
al variable

Experimen Control
tal group
group
No
No

Yes

No

Yes (O1)

Yes (O2)

O1-O2

Before
measurement

Experimental
group

Control group

No

No

Experimental
Promoted brand
Variable (shopping
list)

Other brand

After
measurement

Lazy 48%
Thrifty 4%
Spendthrift 12%
Good wife 4

Lazy 4%
Thrifty 16%
Spendthrift 0%
Good wife 16%

Effect of
experimental
variable

Lazy (48%- 4%) = 44%

Thrifty (4%- 16%) = -12%
Spendthrift (12%- 0%) = 12%
Good wife (4%- 16%) = -12%

Ex post Facto Design

Experimental

and control groups are selected

after the experimental variable is introduced
instead of before.

Test

subjects are not influenced before being

selected for the sample.

Experimental
Useful

variable is introduced realistically.

in advertising tests which use

commercial media.

large grocery product

manufacturer ran an advertising
campaign.
It selected an experimental group of
consumers who reported they had
seen the ad and a control group who
had not.
The two groups were asked
questions about the product.
The ad emphasized that the product

 Hypothesis:

those who had seen ad

would report product as non
fattening to a greater degree than
those who had not seen the
campaign.

The

results supported this

hypothesis.

Continuous diary panel

design
A

sample is recruited, and information is obtained

from the members continuously or at intervals
over a period of time.

permanent or fixed sample of this type is called

a panel.

Measurements

are taken at intervals and

experimental variables are introduced when
desired.

Similar

to a series of before-after experiments.

Experimental group
First measurement

Yes (X1)

Second measurement

Yes (X2)

First experimental variable

Third measurement

Yes
Yes(X3)

Second experimental
variable
Fourth measurement

Yes(X4)

Fifth measurement

Yes(X5)

Third experimental vraiable

Yes

Yes

INTERRUPTED TIME-SERIES
DESIGN
INTERRUPTED

TIME-SERIES DESIGN is
similar to the one-group pre-test/posttest design, but in it, repeated
measurements are taken both before
and after the experimental treatment.

Such

a design is useful when it is

believed that the time series data is
subject to seasonal or trend effects or
when the impact of an experiment takes
Experimental Group: O1 O2 O3 O4 X O5 O6 O7 O8
place gradually over a period of time.

INTERRUPTED TIME-SERIES
DESIGN
(continued)

Instead

of going for one time series, one

can also go for Multiple Time Series
Design.

In

it, one can test the treatment effect

twice: one for the experimental group
and second for the control group.

In

Multiple Time Series Design, one can

easily control the effect of extraneous
variables on the dependent variable.
Experimental Group: O O O O X O O O O
1

It has
Control
Group:
O2 O 3 O 4
followingO1design:

O 5 O6 O7 O8

Lack of control of
history
Data

looked at as a time series

Numerous measurements are made both

before and after the introduction of

experimental variable.
Trends established as a base from which
to measure to measure the effect of the
experimental variable.

 Conclusive

research
Descriptive research
E.g Millers High Life. Sears
Discover Card
Case and statistical method
Hawaiin Punch.
Experimental Studies

 Internal

Validity

History
Maturation
Pretesting effect
Instrumentation
Mortality

External

validity

Surrogates
Field experiments

Quasi- experimental
designs
After-only

design
Before-After design (one group)

Improved experimental
designs
Before-After

with control group

After only with control group
Solomon four group design

Time-series experimental
designs
Continuous

diary panel design

Interrupted time series design
Multiple time series design

Before
Experiment
measurements al variable
S
a
l
e
s

After
measurements
A

Time

RANDOMIZED SWITCHINGREPLICATIONS DESIGN

Its

structure is like A: O1
B: O2

In

X O3 O5
O4 X O6

it, both the groups are subject to

treatment, one group is subjected
earlier and the other group later.
One of the objective is to study
whether the impact of the treatment
remains over a period of time.

RANDOMIZED SWITCHINGREPLICATIONS DESIGN

And, the effect of such a design

could be studied asYx = (O3 - O1)- (O4 - O2)
YT = (O3 O5)- (O4 O6)

 Simultaneous

manipulation of two or
more variables.
At various levels

Factorial Design
To

test several levels of independent

variable, e.g, several ads could be
tested.

To

test two or more variables at the

same time to determine the main
effects of each of the variables but
also to measure the interaction
effects of the variables.

 Determining

proper
concentration of sugar and
flavor

Flavor
intensit
y

Sugar Content

Workers
FACTORIAL
DESIGN

Productivity
Another Example

= f (Gender,
Shift)

G
E
N
D
E
R

SHIFTS

II

SUBJECTS

SUBJECTS

FEMALE SUBJECTS

SUBJECTS

MALE

Price

Package Design
Red

Rs. 600
Rs. 780
Rs. 950

Gold

LATIN-SQUARE DESIGN

The purpose of Latin Square Design is to

control or eliminate the effect of two
extraneous variables having same number
of levels.

Such a design attempts to systematically

block in two directions by grouping test units
according to two extraneous variables.

Manipulation of one independent variable

and controls for two extraneous variables by
restricting randomization with respect to the
row and column effects.

LATIN-SQUARE DESIGN
Example

Experimental Groups

Showroom

#1

Showroom

#2

Showroom

#3

Period
1

Rs.1.20 Rs.1.30 Rs.1.40

Rs.1.30 Rs.1.40 Rs.1.20

Rs.1.40 Rs.1.20 Rs.1.30

LATIN-SQUARE DESIGN
Example

- The three treatments are

identified by 1, 2 and 3 respectively
to treat people with different age and
Age
Level 1
Level 2
Level 3
different level of illness.
< 20

20-44

>=45