Class-2
2nd Stage – Research Design
Research Design
· Primary Data
§ Classification-1
§ Descriptive
§ Diagnostic
§ Experimental
§ Causal
§ Exploratory
§ Classification-2
§ Qualitative
§ Quantitative
· Secondary Data
§ Internal Data Source
§ External Data Source
How should one design the research effectively to achieve the objective set forth for the research exercise?
In research design, there are 2 sources of data – Primary and Secondary source of data.
Primary Data is available off the shelf in western countries (unlike Middle-East) and needs to be collected for the purpose of research in general. Secondary data on the other hand is collected for some other purpose but can be used for current research.
Secondary Data – Already available, collected for some other purpose and can be used by other teams. It may or may not be collected for client’s specific purpose. Syndicated data is NOT secondary data. Syndicated data is where 2 or more clients are using the same data and knowing that other is using the same with both paying to the researcher. Secondary data is available for everyone who has access to it to be used.
In US, the secondary data is readily available. Hence, the primary research is done only to validate the secondary data. Ex – Instead of asking – “What is the market size”, researcher asks – “Whether the size is ZZZ” as he / she has information from secondary data about it (good close approximation). Secondary data hence is limitation is Middle-East market but good for outside market (like US).
A research project may need one or both (Internal and External sources of data) of these. Example: In Dubai, the EIU (Economic Intelligence unit), Ministry of planning and Department of Economic Development gives different inflation rate (various sources of secondary data), but finally, the data of EIU is considered finally for the determining the rate of inflation.
Rate of Inflation in UAE as per the following –
· EIU (Economic Intelligence Unit) – 8% - 9% (Most reliable source for UAE market)
· IMF – 17%
· Ministry of planning – 5%
· Department of economic development – 11%
· Banks in UAE – 15% - 19%
Saudi Arabia’s population (largest market in Middle East) – Range is from 20 to 35 million. There is no census done there. Hence, could not find out per capita income for Pepsi.
Above example shows the importance of availability of secondary data.
Secondary sources of data classification –
Internal sources of data (Internal to Researcher / client) – It is within the boundaries of the organization. Example – College library data for student. Most of the time, the data is freely accessible (fees is not applicable or is taken upfront).The researcher is not paying for the data.
External sources of data – It is available outside the premises of the organization. It is chargeable. The charge can either be borne by the consultant, but mostly it is passed on to the client. Example – Public library data for which college has not paid. Client hence should be charged accordingly.
A research project may need one or both of these.
Industry Fact - “This costs so much, but for you we will absorb the cost” – What researcher says to big clients when not billing them for the external source of data used during the research. Demographic information is expected to be contained by the agency, else client will also say – “Why should I go with you?”
In year 1, client is the boss; but from Year 2 onwards, agency is the boss as now client is dependent on the agency (else it has to again re-invest the same amount of money to start research afresh). Agency uses the word black box to hide all the calculations / methods they use to arrive at the figure / analysis. Hence, Client tries to avoid use of proprietary tools of agency right from day 1.
Whatever is not black-box, please do it on this study – Request from Client to agency from beginning. In case agency says they can’t do it, the client may reject their proposal in the 1st year itself.
Primary Data Source -
1) Descriptive Research – Question asked related to Who / What / When / Where / How. All these questions are describing the behavior of the respondent towards something and hence called descriptive in nature. It is used to describe characteristics of a population or phenomenon (questions related to who, what, when, where, how). It is describing the behavior of persons / respondents towards something. Unlike exploratory research, descriptive studies are based on some previous understanding of the nature of the research problem. Descriptive research often helps segment and target markets.
2) Diagnostic Research – It aims to answer the question ‘why’ to drill down to the root cause of the problem. Example: Why you buy this shampoo.
3) Experimental Research – It is carried out prior to the launch of concept / product / advertisement to understand the effectiveness of the same and to take a decision whether to go ahead with the launch or not. Example: Emaar properties ‘Rent to own’ initiative where a person living on rent can actually own the property by paying the balance amount (Principle – Rent paid till date).
Detail explanation - Research carried out prior to the product / concept / advertising launch. Only for advertisements, it could be done after also. Why it is done – to know the effectiveness of the concept / idea & to find out whether the team should go ahead with the launch of the product / idea or not.
Example (Service Concept) – EMAAR properties had the concept of ‘Rent to own’. But no one understood it despite huge hoardings present. People thought that after renting, people are literally owners of the house till the period lasts – so they didn’t understand the concept. Original concept – Till 3 years, one pays the rent. After that rent paid will go towards the installment of the principle outstanding (which is the price of the house). The initial 3 years rent paid is considered as one time down payment towards the property. Ultimately, when people understood it, the demand for the same increased exponentially and EMAAR had to stop this.
4) Causal Research – This research is used to understand the cause and effect relationship of something / variable (Cause and effect relationship between 2 variables). Exploratory and descriptive research normally precedes cause-and-effect relationship studies.
Example – If company has done a promotion, whether it has build the brand or not – to understand it requires causal research. Diagnostic research is answering generic Why question (Why one buys ice-cream), whereas causal answers very specific Why question related to the effect (Because one eats Ice cream, whether he / she is health conscious or not – Checking relationship between eating ice-cream and health).
a. Causal research attempts to establish that when we do one thing, another thing will follow. A typical causal study has management change one variable (e.g., training) and then observe the effect on another variable (e.g., productivity).
b. If an organization behavior theorist wishes to show attitude change causes behavior change, one criterion that must be established is that attitude change precedes behavior change.
Example – Life Boy brand (India) – What it meant 20 years ago – Life Boy was used by lower income class (Meant for servants at home). Unilever decided to re-position the brand to be used by teens or young adults to be used as a facial soap – a complete change of what it was and what it is now. People won’t use it if soap is still called Life Boy and has same old red color. Hence, name test went ahead for searching a premium name. 2 options came up – Life Boy Gold or Life Boy Green. Green sounded very earthy & had nothing fancy about it, but Gold word had the premium affect among the target audience. After Life Boy Gold, Life Boy Plus came.
In the above case, company wanted to shift the target market. Similarly Emirates also introduced low cost airline called – Fly by Dubai without distorting their original brand which symbolized affluent class (Aircraft / service / corporate entity is different from parent).
Surf – It changed the name to Surf Excel. 90% of respondents thought Surf excel is a premium brand. Company wanted to keep both the brands initially but in future had to discontinue with Surf brand, as they perceived that they can’t differentiate between common and premium brand. The word excel though further increased the market share of Surf.
1) Exploratory Research – Already explained.
When are above research conducted:
Exploratory research is conducted during the early stages of decision making when the decision is ambiguous and management is uncertain about the nature of the problem.
When management is aware of the problem, but not completely knowledgeable about the situation, descriptive research is usually conducted.
Causal studies can only be conducted when a problem is sharply defined.
Examples of Business Problems:
| Exploratory Research (Ambiguous Problem) | Descriptive Research (Aware of partially defined problem) | Causal Research (Clearly defined problem) |
| Absenteeism is increasing and we do not know why | What kind of people favor trade protectionism | Which of the two training programs is more effective |
| Would people be interested in our new product idea | Did last year’s product recall have an impact on our company’s stock price | Can I predict the value of energy stocks if I know the current dividends and growth rates and dividends |
| What task conditions influence the leadership process in our organization | Has the average merger rate for savings and loans increased in the past decade | Will buyers purchase more of our product in a new package |
Primary Data research (collection) method - Within Primary, there are 2 kinds / methods of doing research – Quantitative Research and Qualitative Research.
| Quantitative Research | Qualitative Research |
| Answers the question – How Many (How many laptops you have?) | Answers the question – Why (Example: Why do you have a laptop?) |
| It is descriptive in nature | It is diagnostic in nature |
| It is measurable (gives statistically significant data) | It is not measurable (does not give statistically measurable data) |
| The data / result can be extrapolated to the universe | The data / result can’t be extrapolated to the universe |
| It is Interviewer driven | It is respondent driven (moderator manages) |
| The instrument used here is a questionnaire | The instrument used here is a discussion guide |
| It performs data analysis | It performs content analysis |
| It is structured (It has definite sequence of question for all respondents as it is interviewer driven) | It is unstructured (the question can be asked in any order as it is respondent driven) |
| Less complex | More complex (to frame question and continue with interview) |
| Less expensive | More expensive |
| Representative of Universe | Not a true representative of universe |
| The sample size is always greater than (or equal to) 30 | The Sample size is always less than 30 |
| The interviewing techniques used here are Personal interview (Door to Door, Mall Intercept, Street Intercept), Telephonic Interview (Internet & mail surveys), Self administered questionnaire | The interviewing techniques used here are In-depth interview (to discuss sensitive issues in private) and focus group discussion (for groups) |
Differences in detail –
Quantitative research in number driven whereas qualitative research is not number driven.
Quantitative research answers the question How many, Qualitative research answers the question Why.
Quantitative research is more descriptive in nature, whereas qualitative research is more diagnostic (Why questions) in nature.
Quantitative research is measurable, whereas qualitative research is not measurable.
Quantitative research gives statistically significant data whereas qualitative research does not give.
Quantitative research can be extrapolated as the sample is representative of the universe whereas qualitative can’t be extrapolated as sample is not representative of universe.
Quantitative research uses a interviewer, whereas qualitative research uses a moderator.
Instrument used in quantitative research is questionnaire whereas in qualitative research is discussion guide.
In quantitative research, one carries out data analysis, whereas in qualitative research one carries out content analysis.
Quantitative research is structured / Interviewer driven (Interviewer has to ask the question in the same sequence as given in the questionnaire – No creativity by interviewer; all instruction has to be hence, given on the questionnaire) whereas qualitative research is unstructured (discussion guide which more or less works like a stimulus; guide has different areas to be covered while questioning; respondent might chose to answer any question irrespective of question being asked. It Is hence, unstructured as it is respondent driven (Go with the flow created by the respondent).
Qualitative research is more complex – requires more skills, research, aptitude, moderator has to adapt to the flow of the respondent. Quantitative research is comparatively less complex. Quantitative research is hence less expensive than qualitative research.
1 focus group will cost approx 2.5 to 3 thousand USD (contains max 10 people, average is 4-6 people). 1 interview will cost approx 75-80 USD.
Both techniques are equally analytical. Quantitative is dependent on qualitative (9 out of 10 cases). On a project, one could use both, either but can’t use neither.
Sample size in qualitative is less than that of quantitative (Statistically correct minimum sample size is 30)
· What suggestions company can get from respondents to improve the product - Qualitative
· What is the decision making process followed by people when they decide to buy a car – Qualitative
· What car are they buying – Quantitative
A focus group discussion lasts for an hour or 2 depending on the respondent, a quantitative survey lasts for 20 – 35 minutes.
Questions asked – What cream are you using, how often to you use them, where do you buy it from. Why do you use that cream, when you use that cream are you fine about the packaging.
Open ended questions are quantitative
Qualitative research is very rich, helps one to deep dive, whereas quantitative research helps one to float.
Close-up – FRESHNESS – Why do you use a toothpaste – Because I Suffer from bad breath, What happens if you have bad breath ………..Many why questions were asked & social acceptance was the last why where the questions stopped.
Both Qualitative and Quantitative are randomly sampled. Qualitative is mostly preferred by the audience as people prefer numbers to take decisions.
The techniques followed under quantitative research are –
· Personal Interviews / Face to Face Interviews – Most popular (at home, office or a place convenient to client – whenever it is convenient to client). Very specific, respondent can be easily explained the questionnaire in case of any confusion. Most expensive method. Questionnaire is held and filled by the interviewer and not by respondent. Best response rate as respondent can see the interviewer in front of them and can easily check the ids also.
ü Door to door interview
ü Mall Intercepts (Street Intercept – Singapore, Western countries)
Research is Saudi Arabia is illegal (One has to call the respondent, take permission for personal visit at a suitable time convenient to the client)
· Telephonic interviews – They are beginning to become popular, but still there are few hurdles (like disclosing income over telephone) to be crossed before being accepted by mass .
· Self administered questionnaires - Email &/or Internet survey – One fill it on their own like end term / course feedback
Self Administered questionnaires
· Paper questionnaires
ü Mail
ü In-person drop-off
ü Inserts
ü Fax
· Electronic questionnaires
ü E-Mail
ü Internet website
ü Kiosk
Response rate in male is 1% only without force.
Qualitative research can be done via in-depth interview or discussion guide. Interviewing doctors is Indepth interview as it is very difficult to meet all of them at the same time (extremely busy target audience). Indepth interviews last for 1-2 hours.
Indepth Interview – What are the factors people take into account while buying a car, who is the decision maker, when does the process start & end, who is the influencer – outcome will be rich data out of this exercise. The same will help in product offerings, communication to customer, strategy of offering – like in bundles or solo.
I want to interview people to find out about their investment habits – In-depth interview (Can’t discuss personal finance in groups). The topic is very sensitive to be discussed in public or interview is being done for HNI.
Quantitative method is related to measurement, hence one need scale. (Scale – Some tool to capture response)
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