Chapter VI

Descriptive Research Design

Survey and Observation
 Chapter Outline
1) Overview
2) Survey Methods
3) Survey Methods Classified by Mode of Administration
i. Telephone Methods
a. Traditional Telephone Interviews
b. Computer-Assisted Telephone Interviewing (CATI)
ii. Personal Methods
a. Personal In-home Interviews
b. Mall-Intercept Personal Interviews
c. Computer-Assisted Personal Interviewing (CAPI)
iii. Mail Methods
a. Mail Interviews b. Mail Panels
iv. Electronic Methods
a. E-mail Surveys b. Internet Surveys
4) A Comparative Evaluation of Survey Methods
i. Flexibility of Data Collection
ii. Diversity of Questions
iii. Use of Physical Stimuli
iv. Sample Control
v. Control of the Data Collection Environment
vi. Control of Field Force
vii. Quantity of Data
viii. Response Rate
ix. Perceived Anonymity
x. Social Desirability/ Sensitive Information
xi. Potential for Interviewer Bias
xii. Speed
xiii. Cost
5) Selection of Survey Method(s)
6) Observation Methods
i. Structured vs. Unstructured Observation
ii. Disguised vs. Undisguised Observation
iii. Natural vs. Contrived Observation
7) Observational Methods Classified by Mode of
Administration
i. Personal Observation
ii. Mechanical Observation
iii. Audit
iv. Content Analysis
v. Trace Analysis
8) A Comparative Evaluation of Observational Methods
i. Degree of Structure
ii. Degree of Disguise
iii. Ability to Observe in Natural Setting
iv. Analysis Bias
v. General Remarks
9) A Comparison of Survey and Observational Methods
i. Relative Advantages of Observation
ii. Relative Disadvantages of Observation
10) International Marketing Research
11) Ethics in Marketing Research
12) Internet and Computer Applications
13) Focus on Burke
14) Summary
15) Key Terms and Concepts
16) Acronyms
RIP 6.1 Survey Research is in the Cards
for DEC
Digital Equipment Corporation (DEC) has made a conscious
effort in the past years to shift from a product-driven focus to
a more market-and consumer-driven focus. The product focus
is not unusual in companies manufacturing hi-tech products.
There is a serious need for market research in these hi-tech
companies as they direct their products to the market. Still,
market research in this arena is difficult. It is complicated by
the rapid change of technology as well as the sheer size of the
application market. Often the technology will be employed in
many different industries.
RIP 6.1 Contd.

This holds true for the computer market where DEC is a key
player. Computers are bought by individuals in every walk of
life as well as by businesses in every market imaginable. The
breadth of the market makes useful market research a
formidable task. This task is being undertaken at DEC in their
Corporate Marketing Services (CMS) Division.
6.1 contd..
“Digital’s Corporate Marketing Services
Division has been a core element in the
company’s transition to a market-driven
strategy.”

CMS is coordinating the company’s strategy to

redefine their product from simply computers to a
broader view of the business solutions. The CMS has
employed many research techniques to gain a better
understanding of the “business solutions” market.
Both primary and secondary data are collected.
RIP 6.1 Contd.

Primary data are obtained through the use of phone and

mail surveys as well as seminars and focus groups. Phone
surveys have been used to define customer needs better and
to direct products to the customers better. Mail surveys
have been used to study customer purchasing habits as well
as future purchasing plans. Seminars are held to gain
feedback on the long-term production plans at DEC.
Finally, focus groups are used to determine whether the
chosen strategy is good and one that will effectively
manage and use the market’s potential. Without CMS and
marketing research, DEC would be facing the unknowns of
their technology as well as the market. This combination of
obstacles would have made the transition from a product-
focused to a market- and consumer-focused company an
impossibility.
 Fig. 6.1 A Classification of Survey Methods

Survey
Methods

Telephone Personal Mail Electronic

In-Home Mall Computer-Assisted Internet

E-mail
Intercept Personal
Interviewing

Traditional Computer-Assisted Mail Mail

Telephone Telephone Interview Panel
Interviewing
 Table 6.1 Some Decisions Related to the
Mail Interview Package
Outgoing Envelope
Outgoing envelope: size, color, return address
Postage Method of addressing
Cover Letter
Sponsorship Type of appeal Postscript
Personalization Signature
Questionnaire
Length Size Layout Format
Content Reproduction Color Respondent anonymity
Return Envelope
Type of envelope Postage
Incentives
Monetary versus non-monetary. Prepaid versus promised amount.
Table 6.2 A Comparative Evaluation of Survey Methods
Mall-
Criteria Phone/C In-Home Mail Mail
Intercept CAPI E-Mail Internet
ATI Interviews Interviews Surveys Panels

Flexibility of data Moderate High High Moderate Low Low Low Moderate
collection to high to high to high
Diversity of questions Low High High High Moderate Moderate Moderate Moderate
to high
Use of physical stimuli Low Moderate High High Moderate Moderate Low Moderate
to high
Sample control Moderate Potentiall Moderate Moderate Low Moderate Low Low to
to high y high to high moderate
Control of data collection Moderate Moderate High High Low Low Low Low
environment to high
Control of field force Moderate Low Moderate Moderate High High High High
Quantity of data Low High Moderate Moderate Moderate High Moderate Moderate
Response rate Moderate High High High Low Moderate Low Very
Low
Perceived anonymity of Moderate Low Low Low High High Moderate High
the respondent
Social desirability Moderate High High High Low Low Moderate Low
Obtaining sensitive High Low Low Low to High High Moderate High
information moderate
Potential for interviewer Moderate High High Low None None None None
bias
Speed High Moderate Moderate Moderate Low Low to High Very
to high to high moderate high
Cost Moderate High Moderate Moderate Low Low to Low Low
to high to high moderate
Fig. 6.2 Random Digit Directory Designs
Adding a Constant to the Last Digit
An integer between 1 and 9 is added to the telephone
number selected from the directory. In plus-one sampling
the number added to the last digit is 1.
Number selected from directory: 953-3004 (exchange-
block). Add one to the last digit to form 953-3005. This is
the number to be included in the sample.

Randomizing the r Last Digits

Replace the r (r = 2, 3, or 4) last digits with an equal number
of randomly selected digits.
Number selected from directory: 881-1124. Replace the last
four digits of the block with randomly selected numbers 5,
2, 8, and 6 to form 881-5286.
Two-Stage Procedure
The first stage consists of selecting an exchange and
telephone number from the directory. In the second stage, the
last three digits of the selected number are replaced with a
three-digit random number between 000 and 999.

Cluster 1
Selected exchange: 636
Selected number: 636-3230
Replace the last three digits (230) with randomly selected 389
to form 636-3389.
Repeat this process until the desired number of telephone
numbers from this cluster is obtained.
RIP 6.2 Sample Mailing Lists
List Title Number on List Price

Advertising agencies 3892 $45/M

Banks, branches 11089 $85/M
Boat owners 4289601 $50/M
Chambers of Commerce 6559 $45/M
Personal computer owners 2218672 Inquire
Families 76000000 Inquire
Hardware wholesalers 7378 $45/M
Magazines, consumers 4119 $45/M
Photographic, portrait 33742 $45/M
Sales executives 190002 $55/M
Wives of professional men 1663614 $60/M
YMCA’s 1036 $85

* Price shown is per 1000 names (/M), except where noted.

 A Classification of Observation
Methods
Classifying
Fig. 6.3

Observation
Methods

Observation Methods

Personal Mechanical Content Trace

Audit
Observation Observation Analysis Analysis
RIP 6.3 Building Accord According to Personal
Observation
Honda Motor Co. had a lot of complaints on their sporty, restyled
Accord (not big enough for U.S. drivers, not stylish enough for the
Japanese drivers). Being afraid to lose its market, Honda sent
teams to visit U.S. families and observe how the Americans used
their Honda Accords. By personal observation, the teams found
out that the Americans like lots of compartments for storing maps
and change. The teams also actually took U.S. road trips in
Accord and in Ford Taurus and Toyota Camry as its rivals in
midsize cars. The results of this observation study were used to
design a new 1998 Accord for U.S. drivers which has 101.7 cubic
feet for passenger space compared to 101.5 cubic feet for Ford
Taurus and 97.9 cubic feet for Toyota Camry. Moreover, Accord
also delivered higher customer value by cutting the price. With
these changes, Honda executives are expecting to increase U.S.
sales to a total of 1 million units by the year 2000.
Using the results of personal observation studies, Honda customizes
the Accord to world markets. U.S. Accord is designed as a family car
by providing extra headroom and a roomy interior to keep up with the
demands of its aging baby-boomers customers, while Japanese
Accord is designed as a compact, sporty car loaded with high-tech
gizmos aimed at young professionals. It is also smaller to adjust to
narrower roads in Japan. Honda also paid attention to its European
market. The 1998 Accord for European version was a short, narrow
body customized to tiny streets in Europe but not losing its stiff and
sporty ride aimed at the Old World drivers.
 Table 6.3 A Comparative Evaluation
of Observation Methods
Criteria Personal Mechanical Audit Content Trace
Observation Observation Analysis Analysis Analysis

Degree of structure Low Low to high High High Medium

Degree of disguise Medium Low to high Low High High
Ability to observe High Low to high High Medium Low
in natural setting
Observation bias High Low Low Medium Medium
Analysis Bias High Low to Low Low Medium
Medium
General remarks Most flexible Can be Expensive Limited to Method of
intrusive communications last resort
 A Comparative Evaluation of Survey Methods
Table 6.4 for International Marketing Research
Criteria Telephone Personal Mail Electronic
High sample control + + - -
Difficulty in locating + - + +
respondents at home
Inaccessibility of homes + - + +
Unavailability of a large + - + +
pool of trained interviewers
Large population in rural areas - + - -
Unavailability of maps + - + +
Unavailability of current - + - +
telephone directory
Unavailability of mailing lists + + - +
Low penetration of telephones - + + -
Lack of an efficient postal system + + - +
Low level of literacy - + - -
Face-to-face communication culture - + - -
Poor access to comps. & Internet + + ? -
Note: A (+) denotes an advantage, and a (–) denotes a disadvantage.