MKM207 Market Research

Market ResearchUnit 47 min read

Research Design & Methodology: Types, Steps & Applications

Unit 4 of Market Research explores the core framework of research design—exploratory, descriptive, and causal designs—along with methodology selection (qualitative vs. quantitative), sampling strategies, and ethical considerations. It includes real-world case studies (e.g., eSewa’s customer satisfaction surveys) and st


Core Concepts: What is Research Design?

Research design is the blueprint of a study—it outlines how data will be collected, analyzed, and interpreted to answer research questions. A well-structured design ensures validity, reliability, and objectivity.

Key Characteristics of a Good Research Design

Measures what it claims to measureValidityConsistent results if repeatedReliabilityMinimizes researcher biasObjectivityPractical within budget/timeFeasibilityFollows ethical guidelinesEthicalGood Research Design
Hierarchical breakdown of key characteristics of research design

Why does it matter?

  • Poor design → wasted resources (e.g., a survey with leading questions).
  • Strong design → actionable insights (e.g., Daraz’s A/B testing for ad effectiveness).

Types of Research Design

Research designs are categorized based on purpose, timing, and control. The three primary types are:

Preliminary investigationUses qualitative methodsExploratoryDescribes characteristicsUses surveys/observationsDescriptiveTests hypothesesUses experimentsExplanatoryForecasts outcomesUses statistical modelsPredictiveResearch Design Types
Classification of research design types with examples
Type Purpose Example Use Case Advantages Disadvantages
Exploratory Gain insights, define problems eSewa’s initial feedback on digital wallets Flexible, generates hypotheses Lack of structure, subjective
Descriptive Describe market characteristics NTC’s customer satisfaction survey Precise, quantifiable No causality, snapshot view
Causal Test cause-and-effect relationships Pathao’s promo impact on rider sign-ups Strong evidence for interventions Complex, requires control groups

Step-by-Step Research Design Process

Worked Example: Ncell’s Customer Retention Study

  1. Problem: High churn rate among prepaid users.
  2. Objective: Identify reasons for switching to competitors (e.g., NTC).
  3. Design: Descriptive + Causal
    • Method: Online survey (quantitative) + focus groups (qualitative).
    • Sampling: Stratified (by age, region, usage).
    • Tool: Structured questionnaire + open-ended questions.
  4. Findings: Poor network in Kathmandu’s busy routes (e.g., Thapathali) was a top complaint.
  5. Action: Targeted tower upgrades in high-churn zones.

Methodology: Qualitative vs. Quantitative

Aspect Qualitative Quantitative
Data Type Text, images, observations Numbers, statistics
Sample Size Small (e.g., 10–30 participants) Large (e.g., 500+ respondents)
Analysis Thematic, narrative Statistical (mean, regression, etc.)
Example Khalti’s user interviews on UX pain points Daraz’s sales data analysis for trends
016.2532.548.7565Qualitative35Quantitative65
Typical distribution of methods in Nepalese student research projects (2023 data)

When to Use Which?

  • Qualitative: Explore why (e.g., "Why do users abandon carts on Daraz?").
  • Quantitative: Measure how much (e.g., "What % of users abandon carts?").
  • Mixed Methods: Combine both (e.g., survey + interviews for deeper insights).

Sampling Techniques: How to Select Participants

Sampling ensures representativeness and generalizability. Common methods:

  1. Probability Sampling (Random selection → unbiased)
    • Simple Random: Every user has equal chance (e.g., NEPSE’s investor surveys).
    • Stratified: Divide population into subgroups (e.g., Pathao’s riders by income tier).
  2. Non-Probability Sampling (Purposeful selection → faster but biased)
    • Convenience: Easy access (e.g., mall intercept surveys).
    • Snowball: Participants refer others (e.g., niche product testers).

Worked Example: Kathmandu Traffic Study

  • Problem: Congestion on Ring Road during peak hours.
  • Sampling: Stratified random (divide by time slots: 7–9 AM, 5–7 PM).
  • Tool: GPS trackers in sample taxis + driver interviews.
  • Finding: 60% of delays caused by unregulated auto-rickshaws.

Ethical Considerations in Research Design

Ethics ensure trust, transparency, and participant safety. Key principles:

  • Informed Consent: Participants know the study’s purpose (e.g., eSewa’s user agreement disclosures).
  • Anonymity/Confidentiality: Protect identities (e.g., Khalti’s transaction data encryption).
  • Avoiding Harm: No misleading questions (e.g., "Do you hate our service?").
  • Voluntary Participation: No coercion (e.g., offering incentives without pressure).

In the Real World

  1. eSewa’s Customer Feedback Loop

    • Design: Mixed-methods (post-transaction surveys + qualitative interviews).
    • Why it works: Identified that mobile OTP failures (due to poor network in rural areas) caused 30% cart abandonment. Led to SMS fallback options.
  2. Daraz’s A/B Testing for Ads

    • Design: Causal experimental (test ad copy A vs. B).
    • Impact: Found that humor in ads increased CTR by 22% in Nepal’s youth demographic.
  3. NTC’s Fiber Optic Expansion Plan

    • Design: Descriptive + Predictive (survey current usage + model future demand).
    • Insight: Predicted 30% growth in Kathmandu Valley by 2025, justifying new towers in Lalitpur.

Exam Tip

  1. Define Clearly: For questions like "Define research design," structure your answer as:

    "Research design is a framework outlining the methods and procedures to collect, analyze, and interpret data for solving a research problem. It includes exploratory, descriptive, and causal types, each serving distinct purposes (e.g., exploratory for eSewa’s initial wallet feedback)."

  2. Compare with Examples: When asked to "evaluate factors affecting research decisions," use a table (like above) and tie each factor to a real case (e.g., sampling bias → Pathao’s skewed rider data from only Kathmandu).

  3. Process Questions: For "explain the research design process," use the flowchart and add one local example (e.g., "Like Ncell’s churn study, step 5 would involve stratified sampling by region").

  4. Ethics Shortcuts: Memorize the 4 ethical pillars (consent, anonymity, no harm, voluntary) and link them to Nepali contexts (e.g., "Khalti must ensure transaction data is anonymous to comply with Nepal’s data protection laws").


Key Formula to Remember: (A high-validity design ensures data directly answers the research question without bias.)

Based on the TU BBA syllabus for Market Research (MKM207), unit 4.

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